Central Engineering and Research Group (CERG) Essay

Central Engineering and Research Group (CERG) - Essay Example This approach means a move from a traditional 'control' type approach which accepts, implicitly, that defects will occur. Joseph M. Juran proposes the tools of control including the Bell system of sampling, the Shewhart control charts and inspection plans. These models could be successfully applied to CERG, but they will be replaced by modern theories of quality and cost control. The human dimension (training, education, cultural diversity management) proposed by Juran helps to motivate and inspire employees. For CERG, Juran's human approach help to create continuous motivation to achieve quality improvements, supported by appropriate education and training. Place emphasis on education will affect attitudes and motivation to achieving quality improvements. Also, Juran identified such threats as resistance to change and cultural resistance as important areas of concern. If staff are informed of changes, are encouraged to adopt a positive attitude and have personal involvement in the implementation of the change, there is a greater likelihood of their acceptance of the change (Beckford, 2002). Juran applied the Japanese philosophy on quality into Western management practices emphasizing the role of human resources and control. New quality programs should comprise a quality plan which offers a structured, disciplined approach to quality and incorporates a numbe r of tools and techniques. Particular emphasis is given to the collection and analysis of information and to employee training. It is culturally based with involvement as a core philosophy. W. Edwards Deming identifies '14 Points' which have a great impact on productivity and profitability of the company. His theory is based on process orientation which means a product quality throughout production. "It is not enough to just do your best or work hard. You must know what to work on" (Beckford, 2002). Deming creates a four step approach to quality and productivity which can be applied to CERG: plan-do-check-act. Also, he introduced Statistical Quality Control. This theory cannot be applied to CERG, bit it can be used by other departments in order to support CERG activity and increase output. Customer orientation is important for CERG, so the quality program should apply quality control principles to design/specification activities to formalize the mechanism for ensuring that customer requirements are incorporated (Arogyaswamy, Simmons, 1993). Philip Crosby marked a new era in quality management and control. His concept, "doing it right the first time" (DIRTFT), is successfully used by different industries and companies. The main principles of quality include: (1) quality is conformance to requirements; (2) the management system is prevention; (3) the performance standard is zero defects; (4) the measurement system is the cost of quality. CERG can use these principles as a core of quality philosophy. Following Crosby, quality is based on goals, measurements, and cash incentives for employees and management. It also has some aspects of quality circles. In order to make the program work, CERG should introduce: a motivational package, a prevention package (reducing management controlled defects), procedures to provide for feedback. Within CERG, low motivation results in high level of mistakes and 'defects'. For this reason, these elements of zero defects and the cost of qualit

The Oil Industry Essay Example | Topics and Well Written Essays - 1000 words

The Oil Industry - Essay Example This research will begin with the statement that the oil industry is not a modern development. It traces back its history to ancient ages. The only problem that has necessitated changes pertains to refinery and exploitation of oil. The modern oil industry emanated from an invention by Colonel Edwin Drake. It involved a steam-driven rig for drilling. This set up an expensive machine that most individuals could not be acquired. The only strategy was to harness resources for acquiring such machines. The machines became more expensive to acquire as time progressed since the demand for oil necessitated very quality product. The first companies progressed to attain revenues that offset their high costs. In this sense, they became monopolies. The main reason of monopoly pertained to the fact that it was becoming difficult to attain the minimum efficient scale.   The established companies were experiencing economies of scale. However, this trend stalled on the formation of unions such as o ligopoly.   The OPEC was composed of Middle East Asia countries and Venezuela. They emerged to form a substantial influence on the market. In spite of the fact, oil was a unique product, it could be refined to several products. These products helped create companies such as shell and BP who later influenced entry of other companies. In spite of the domineering presence of unions such as OPEC, prices usually shift in response to notable factors... There are notable factors that affect the demand of oil. To begin with, there is the concept of the cyclical demand of oil. This pertains to demand of oil that swings according to growth of economies. As economy grows, the demand of oil rises to the same. This is because oil is an essential input of many industries. It is vital to note that oil forms a core part of the production chain. The growth of economies is proportionate to growth of industries. In turn, the industries are triggered to increase production in order that the same meets the increasing demand out of surging income. A relevant example concerns with the case of China. Its demand of oil has substantially increased because of the growth in its economy. In addition, the price of substitutes is a core determination of oil’s demands. This pertains to produc5ts such as gas and coal. In the long-term strategies of many countries, they seek possible alternatives for oil. In this sense, the demand of oil would reduce. For instance, there was a demand of oil in 2004 to 2006 that led to substantial research into its possible alternatives. Additionally, change of climate serves to affect the demand of oil in the countries that experience the four seasons. This is eminent in European countries, USA and Russia. In this sense, there is high demand of oil during winter. This is because individuals require substantial energy in heating systems. For instance, there is increased demand of oil, for heating houses and work places, during fierce winters. In addition, speculative forces influences demand in distinct ways. Due to its imitable qualities, there are always speculations of rise in prices of oil. In one of the most recent instances, individuals rushed to attain