Cecsa

Abstract

The CECSA case describes the efforts of a Central American manufacturer of sanitary fixtures such as toilets and washbasins to improve quality and service through the application of just-in-time and total quality control (JIT/TQC) concepts. The company had been founded as part of a national policy of import substitution during the early years of the Central American common market, and its products, protected by high tariff barriers, dominated the regional market. However, its sales were affected seriously by the economic and political crises of the 1980s, forcing the company to search for markets outside the region. The case is set in 1987, at the height of the global conflicts that were being played out in Central America and at a time when opportunities for CECSA were opening in new export markets. With encouragement from its partner, an international ceramics corporation, CECSA embarked upon a plan to export to the United States. To meet the demanding quality specifications of the U.S. market, the company introduced the JIT/TQC approach. The implementation of this approach, with its emphasis on quality rather than quantity, required changes in the company culture and in traditional working habits that were difficult to make. The case demonstrates how continuous attention to quality throughout the entire value chain, including requirements made of suppliers, can pay off. CECSA was successful in entering the U.S. market. As new export projects materialized and pressure to meet deadlines mounted, however, many aspects that had been put in place to support the change process, such as the quality Involvement Groups, were abandoned. Other required changes, such as a new incentive system, were not introduced in a timely manner. As a consequence, momentum was lost. As the case closes, the general manager, Antonio Mendez, must decide how to regain the momentum. In a meeting with his key managers, a five-point implementation plan is produced, and the question that remains is whether this plan will be sufficient. The CECSA case illustrates how, in implementing the JIT/TQC approach, there is a continual danger of relapsing into old habits that paralyze the change effort. The loss of momentum, leading to work slowdowns, cannot be attributed to a single factor but to many. An important lesson is the importance of paying continuous attention to detail, to preserve the enthusiasm of personnel and managers alike.