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The case study discusses how Xerox successfully regained its market share after a significant decline in the 1980s by improving operational efficiency, quality, and innovation. Key strategies included reducing the number of suppliers, enhancing quality training, and fostering collaboration across functions through commodity teams and multinational product development teams. These changes allowed Xerox to lower production costs, minimize defects, and respond better to customer needs.

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7 views2 pages

Assignment

The case study discusses how Xerox successfully regained its market share after a significant decline in the 1980s by improving operational efficiency, quality, and innovation. Key strategies included reducing the number of suppliers, enhancing quality training, and fostering collaboration across functions through commodity teams and multinational product development teams. These changes allowed Xerox to lower production costs, minimize defects, and respond better to customer needs.

Uploaded by

ezanazekarias34
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Mekane Yesus Management and Leadership College

School of Post Graduate Study

PRODUCTION AND OPERATIONS MANAGEMENT (MBA 711)


INDIVIDUAL ASSIGNMENT (10%)

By: Selamawit Tenaye (MBA46/15)

Instructor: Zelalem Bayisa (PhD)

December 9, 2023

Addis Ababa, Ethiopia


1. What is the essence of the case? Describe (2 points)

The essence of the case study is about how Xerox, a leading photocopier producer, regained
its fallen market share. In the 1980’s Xerox’s market share fell by half, and its improved
quality, lower production costs, and shorter product development time enabled it to regain its
market share. Xerox critically analyzed its operations efficiency and effectiveness in line
with its competitors. In a competitive market, organizations need to continuously engage in
research and development in designing new products that meet customer needs with
decreased cost of production, reduced production time, and maintained quality within the
supply chain to gain competitive advantage over their competitors and be profitable.

2. Identify how the changes that Xerox undertook after 1980 helped the company to
improve its efficiency, quality, innovation, and customer responsiveness (5 points).

 Xerox thought quality was a cost but eventually understood that quality does not increase
cost but decreases cost by reducing defective products and service costs.
 Xerox produced and sold photocopiers and had 5000 suppliers. Xerox identified costs in
managing the procurement process and quality of service while working with a 5000
suppliers. Thus, Xerox minimized the number of suppliers to 325 and reduced the cost of
photocopiers through quality training for its suppliers. The quality training minimized the
defect rate for parts up to 98% per one million parts.
 Xerox also introduced its leadership through a quality program from top management
down to the factory floor.
 Xerox’s ability to focus on new product development through its multifunctional,
multinational new product development teams to develop globally standardized parts.
 The formation of multinational organization, central logistics and Assets Management,
reduced the need to hold excessive inventory to serve demand.

3. To what extent were the changes undertaken by Xerox after 1980 the result of
functions working together to achieve a common goal? Explain (3 points)

The changes undertaken after the 1980’s are the results of functions working together. Xerox
created “Commodity teams” which included buyers, engineers, costing experts, and quality
control personnel to reduce its supplier’s base and maintain the quality of the supply parts. In
addition, groups were formed throughout the company, from top management down to the
factory floor to maintain the quality of the products. Xerox also established multifunctional,
multinational new product development teams to reduce the time it took to design new
products and bring them to market.

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