Brentwood trucking limited case study solution


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Brentwood trucking limited case study solution.
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Brentwood trucking limited case study solution

  1. 1. Brentwood Trucking Ltd Executive Summary Brentwood Trucking Ltd. is a holding company for the largest Canadian transportation group. It works on the simple philosophy that is providing the good services and being completely honest and to treat one another fairly and with respect. It was started in central Ontario with the first job of transportation of by- products from chemical valley to Toronto. Between early 1950’s and 1985’s, the firm as extended its services to other places and also subsidizes different transportation companies. The firm today operates modern terminal in all major Canadian cities, towns and remote areas. The firm operates over 1500 vehicles moving freight from shippers across Canada to the customers. It is also providing its subsidiary companies with the fundamental services such as, human resource, account receivables and payables, training and quality development, etc. Mr. John Moser who was the vice president of training and quality Development for the company was to give the presentation on Cost of Quality to Mr. G.K Alexander who was the President of Brentwood trucking Ltd. The executive of the company had given approval to Mr. John on instilling quality thinking throughout the organization. Mr. John has come up with three things that can b applied with in the activity of firms to have the concept of quality and that are meaning of quality defects, determination of cost associative with quality defects and development of strategy for addressing quality that will provide competitive and sustainable advantage for the firm. A Steering committee was formed for the purpose of deciding how to differentiate Brentwood Trucking Company from its competition. Mr. John was the member of the committee and he used Deming quality concepts. He also set up QMTs as a mean of introducing them to the “quality way of thinking.” John also asks the executives to provide the information regarding the three things he had come up with.
  2. 2. Terminals operations involved the loading and unloading of shipments at central locations. The cost and expense of these terminals is approximately $5.3 million per annum. The cost includes re-deliverance, cost associative with location and layout, extra travels, salaries, hire external cartage, etc. The transportation department handles the highway operations of Brentwood Trucking Company to carry shipments from customers to their destinations. Here John here found many facts. The cost occurred per annum is approximately $1 million and it includes accident costs and fines, drivers cost, cost of blocking dock, salaries, etc. The maintenance department was responsible for the repair and servicing of all equipments for the firm. It also deals with the spare part inventory. The cost associative with maintenance department is approximately $0.3 million. The cost includes packing slips and receipts cards, additional maintenance, etc. The quality department consists of one and half full time people. The task is to act as consultants for various units with in the firm. The cost associated with the Quality department is $0.27 million. The cost includes travel, manuals, salaries, etc. Training department consists of two and half people who were responsible for the development of training programs with in the firm. The cost is $0.14 million and it includes production cost, wages and benefits. The sales and marketing department was charged with the responsibility of quoting rates for services to customers, getting new business, retaining established accounts and etc. the total cost of this department is around $5.4 million. Claim department was responsible for settling all claims from customers that resulted from error made by the company in handling the customers’ shipments. The cost per year of this department is approximately $2.1 million. The cost includes cost of damages sustained, travel, salaries and etc. Administration department deals with the account receivables. The cost of this department is something like $0.86 million. The cost includes cost of reprocessing, fees, bad debts, salaries and wages.
  3. 3. Mr. John now had data about the errors and problems within the different operations of the firm and he can now use this information to asses the current situation and make strategy to guide the implementations of the quality development process.
  4. 4. Question/Answer 1- What do you think of the process that has been employed at Brentwood trucking company to introduce the “Quality Thinking” throughout the firm? What would you do differently? Why? Implementation: The process that has been in use at the Brentwood Trucking company to introduce the ‘quality thinking’ throughout the firm to incorporate, effectively measure and enhance the total quality management. There have been several errors and flaws currently running in and around the company and to eliminate them to maximum extent, Mr. John (vice president of training & quality development in Brentwood Company) is initially grooming employees, management and directors about this process and after that planning to apply the total quality management all over the firm. Terminal location: If I had to implement the quality thinking process strategy in the company by using a different way, the first step that I would be taking in order to minimize the maximum losses is to alter the location of terminals. The losses that has been incurred from the other heads that has been mentioned in the case are far lesser then the losses generating through the terminal because of their location. The cost of errors and flaws of terminal are in millions of dollar where as the other departments are not contributing such losses in the firm. The strategic location should be determined in order to minimize this risk and to cover the maximum cost and losses.
  5. 5. Introduce HRM department: Another strategy that is to be prioritized in my opinion is the implementation of proper human resource department. As I have gone through the case of Brentwood Company, another main issue I had figured out is that there is no proper channel for the grooming and training of all the employees. All the hiring firing issues are dealt under the sales and marketing department which is a major source of losses to be generated. If there would be HR department it will motivate the employees throughout their session. There is a need of proper collaboration between HR and quality department in order to keep employees pro-active and efficient all the time. 2- Examining the various examples of issues raised by various managers which ones should be classified as related to quality? Can we classify these items into some form that allows management to understand where their quality efforts are being placed and what is being achieved? The first issue that is related to quality is the tallying of the sheets by the dock men. If this could be reduced to maximum level the best quality of service could be achieved. The reason is that these are the errors which are taking so much time on checking that which shipment is for which destination or area. Secondly picking up the right shipment will also help in maintaining the quality of the service. Because this will save their time in handling the nest correct shipment and deliver it to the correct destination. Another issue to be handled is the tracing of orders and shipments within the system once they are entered in it. At the moment 12 people are deployed there for this purpose and still it is a problem. So if this issue would have been solved, it will defiantly help in providing the best quality.
  6. 6. Although each and every issue is of the same importance but the mentioned above are the key issue which must be addressed by the company management so that they could maintain their best image in the regions as ones who are providing the best quality to its valued customers. 3- What action plan or strategy do you suggest to John Moser to move Brentwood Trucking forward in its efforts to improve quality within the firm? Well according to my understanding they should make the strategy of Just-In- Time concept that every task must be processed on its own time so that the very next activity could not get disturbed. For this all the employees must know that what type of best effort their work is demanding from them. Secondly they must remove the communication gap within the firm. Every employee must be clearly communicated his particular task and the time required to execute it. With this they will be able to put their maximum efforts in the given time to complete it. Management strategy is also must for Brentwood to implement so that every shipment can be handled in an organized manner without any error. As they have to handle thousands of shipments, so there must be a very systematic and organized way to handle them and deliver them to their respective destinations. Brentwood Trucking Company is indeed a very successful business that is offering their services in different areas to their customers but even then they have to consider their problems very seriously and do investment on them to sort them out so that they could keep on giving their services to their customers.