Вы находитесь на странице: 1из 4

HKU312

t
os
rP
SIMON LAM

MANFIELD COATINGS CO. LTD.: QUALITY


MANAGEMENT AS THE WINNING FORMULA

yo
Teaching Note

Summary of the Case


Founded by Mr. Yuen Shu-Wah in 1982, Manfield Coatings Company Limited (Manfield)
op
was a niche player producing customised industrial coatings for various industrial products.
While the quality culture saw Manfield through in the 1980s and the early 1990s, the pressure
from its customers to shorten production lead-times was constantly rising. After attending a
training course in the US in 1996, Yuen brought the idea of implementing a quality
management system back and started implementing it. By 1997, Manfield was certified for
ISO 9001:1994. In the following years, Yuen continually pitched the Company against audits
and examinations through award applications, and Manfield continued to receive quality
tC

awards or certificates. Meanwhile, Manfield’s quality management system took shape,


revolving around five key areas: leadership, human resources, information and analysis,
continuous improvement and process management.

Teaching Objectives
The Case is designed to explore the key factors in the successful implementation of a quality
No

management system. Students will learn how quality can be a source of competitive
advantage, develop an appreciation for the efforts and prerequisites required, and understand
the associated considerations.

Study Questions
1. How does quality enable Manfield to be a niche player?
Do

Vincent Mak prepared this Teaching Note under the supervision of Dr. Chi Kin (Bennett) Yim as a guideline to teaching:
“Manfield Coatings Co. Ltd.: Quality Management as the Winning Formula”.
© 2003 by The Asia Case Research Centre, The University of Hong Kong. No part of this publication may be reproduced or
transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise (including the Internet)
- without the permission of The University of Hong Kong.
Ref. 04/189TN

This Teaching Note is authorized for use only by Sharif Ullah Jan, Other (University not listed) until Oct 2019. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860.
04/189TN Manfield Coatings Co. Ltd.: Quality Management as the Winning Formula

a. Why is quality an important building block of Manfield’s niche-player

t
strategy?
b. What benefits does quality management bring to Manfield?

os
c. What effects do these benefits have on Manfield’s development?
d. What calculated cost must be considered as well?
2. What makes the implementation of Manfield’s quality management system so
successful?
a. What appear to be the critical success factors of Manfield’s quality
management system?

rP
b. Is ISO 9001 certification a guarantee of quality?

Analysis

1. How does quality enable Manfield to be a niche player?

yo
a. Why is quality an important building block of Manfield’s niche-player
strategy?
b. What benefits does quality management bring to Manfield?
c. What effects do these benefits have on Manfield’s development?
d. What calculated cost must be considered as well?

The centrepiece of Manfield’s strategy is “prompt and reliable”. In Manfield’s business, the
ability to produce and deliver within a very short period of time is an important competitive
op
advantage. However, simply being prompt is not enough. Manfield’s products have to be
reliable as well. This means that its products have to meet all the customer and regulatory
requirements. In today’s highly competitive environment, “prompt and reliable” is a
powerful value proposition. This is especially true since Manfield competes on quality rather
than price.

The benefits that a good quality management system brings to Manfield are again two-fold.
tC

First, with continuous improvement initiatives and streamlined processes, Manfield is better
able to shorten its production lead-time, which also implies that Manfield can produce more
with the same level of manpower and time. Second, the rate of complaints and defects will
also fall. This not only improves customer satisfaction but also reduces production costs. A
high complaints rate/defects rate means that a lot time, material and resources are wasted.
The lower such rates are, the lower the wastage.
No

From a longer-term perspective, these benefits help Manfield secure its position as a niche
player, and strengthen and further expand its customer base. In addition, Manfield’s ability
to produce quality products made the JV with Weilburger and Cashew possible. Had
Manfield been a mediocre manufacturer, Weilburger and Cashew would not have been
interested in co-operating with Manfield.

Nonetheless, quality management does come with some cost. The Case alludes to the fact
that shortened production lead-times will require some degree of resource increase, be it
investment technology or extra human resources, although in the long run the benefits may
outweigh the added costs. Furthermore, investment in time and resources is inevitable to plan
Do

and provide the continuous training required, and set up and run the various tracking and
monitoring systems.

2. What makes the implementation of Manfield’s quality management


system so successful?

This Teaching Note is authorized for use only by Sharif Ullah Jan, Other (University not listed) until Oct 2019. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860.
04/189TN Manfield Coatings Co. Ltd.: Quality Management as the Winning Formula

a. What appear to be the critical success factors of Manfield’s quality

t
management system?
b. Is ISO 9001 certification a guarantee of quality?

os
The success of Manfield’s quality management systems can be attributed to four main factors.
First, there is a genuine quest for quality from the top. As with any major initiative in any
company, genuine support from the top makes a huge difference. In Manfield’s case, the
founder and Managing Director Mr. Yuen was the person who brought the idea back to the
Company, and who still champions it within the Company. This top-down drive sends a very

rP
strong message to the rest of the Company that it means business and that quality issues
should not be taken lightly.

Second, quality has always been an important value of Manfield since day one. Although it
did not have a quality management system, quality products were Manfield’s strengths. A
quality management system merely reinforces such a mindset.

yo
Third, a quality management system cannot be complete without the complimenting
information systems that process, share and publicise data and information for effective
reporting, tracking and monitoring. The fact that Manfield has fairly comprehensive
management information systems facilitates the implementation of a quality management
system.

Yuen comments, “Unless the mindset improves, we can never make real achievements.”
Thus, the fourth key factor is human resources. In this regard, Manfield invests a lot in
op
training, both for managerial staff and for the rest of the workforce, with the content ranging
from technical and job-related areas to soft skills and value systems for changing mindsets.
There is no separate training budget at Manfield; any training, so long as it is deemed
beneficial to the Company, will be approved. Knowing that staff involvement is essential to
the success of any quality management initiatives, Manfield has also put in place various
quality circles, suggestion schemes and reward schemes to motivate its staff to become more
proactive.
tC

As for Manfield’s financial performance [Exhibit 4], over the period shown, its return on
equity mostly stays above 20 per cent, its turnover doubles and its profit quadruples. Even
during the economic downturn in 1998, Manfield managed to record a 19.6 per cent return on
equity and its profit fell only 7.5 per cent compared with 1997. These are solid indicators of
financial performance, and proof of the value of a good quality management system.
No

It is perhaps worth noting here that ISO9001 merely certifies that the Company’s process or
processes conform with the ISO9001 requirements. It is not a guarantee of product or service
quality, as it does not detail specific product or service requirements.

Conclusion
What Manfield has demonstrated is that quality management is not a white elephant. If it is
properly implemented, it translates into sources of competitive advantage through
improvements such as wastage reduction and efficiency gains, and by adding value that
Do

customers treasure through better product quality and shorter production lead-times.
Manfield also showcases how to successfully implement a quality management system. From
Manfield’s experience, we learn that there are four critical success factors: support from the
very top, a genuine quest for quality, a complimenting information infrastructure, and human

This Teaching Note is authorized for use only by Sharif Ullah Jan, Other (University not listed) until Oct 2019. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860.
04/189TN Manfield Coatings Co. Ltd.: Quality Management as the Winning Formula

resources management initiatives that help forge a quality mindset and reward proactive

t
involvement.

os
There are certainly some companies that claim to have quality management systems and
promote the fact that they are ISO-certified. But how many can truly produce quality
products and/or services and truly reap the benefits of quality management? Meanwhile,
others may try to cut corners and compete purely on price. But history shows that poorly run
companies succumb easily to economic downturns (such as those that went out of business
during and in the aftermath of the SARS outbreak in Hong Kong in 2003). Although formal

rP
quality management systems such as ISO 9001, ISO 14001 or Six Sigma may not be for
everyone, companies that are truly interested in getting results from a quality management
system must realise that the commitment needs to be wholehearted and continuous.

yo
op
tC
No
Do

This Teaching Note is authorized for use only by Sharif Ullah Jan, Other (University not listed) until Oct 2019. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860.

Оценить