Background: Product Quality and Distribution Problems at the Denver facility: This facility has experienced slow physical growth since its beginning in the 1930s. Over the years, new production units (measuring 2 km x 1 km) have been added on the periphery of the facility, in a widely scattered manner. Unfortunately, your previous recommendations regarding customer service have not yet been implemented due to budgetary constraints; customers desiring to pickup multiple products must now drive from point to point within the plant to pick up each product. There are often waiting lines at each loading point. This is causing gridlock within the facility caused by the arrival pattern of trucks picking up products. In addition, there are product quality problems, primarily due to new rules that the automotive industry (ISO 9000) is imposing on all of their suppliers.
Scenario: Once a month, you meet with other quality analysts in your local area. This month topic is "getting back to basics". The speaker reminds the group that any quality management program includes people (managers, workers, executives, inspectors, and so on), systems (machines, procedures, processes, equipment, communications), inputs (raw materials, information, energy, and so on), and outputs (materials, information, reports, and services).
Problem: Discussion after the speech focuses on the importance of good managers and good systems. You participate by explaining why both are integral to an organization and the effects, if any, of an imbalance within any of these areas.