Daily Management Total Quality Management September 30, 2002 Team Volkswagen Daily Management Total Quality Management September 30, 2002

Engineering Graduates * National Center for Education Statistics

Auto Sales Trend * JD Powers & Associates

Vision To maintain our current and ensure a future position as America’s favorite European car company by increasing sales by 2% a year, for the next 5 years, while adhering to our commitment to drive continuous improvements, customer satisfaction, and quality.

Mission Design innovative vehicles for the next five years that improves models by upgrading its performance, safety and luxury appearance. Uphold customer satisfaction by manufacturing quality vehicles, offering comprehensive service plans, and trained sales associates that better satisfy our customer’s needs.

Guiding Principles Quality First Customers are the focus of everything we do Continuous improvements are essential to our success Employees are the foundation of this company

Reengineering a Process

Theme Marketing has confirmed that dealerships have been receiving accolades concerning the design of the Volkswagen Jetta. Overall, customers are responding to the quality and safety designs along with the affordable price that the Jetta offers. Therefore, in order to continue this competitive advantage we need to continue to reinvent the designs of the Volkswagen Jetta maintaining the trendy edge of design and affordable prices.

Current Situation

Goal To design and develop future cars or car improvements that implements the use of advance manufacturing while still meeting innovative design criterion and customer cost constraints thus capturing the attention of graduating customers market and increasing sale by 2% each year.

Maintain the Jetta’s competitive edge within the target market Root Cause Maintain the Jetta’s competitive edge within the target market Design Sales Service/Dealers Marketing too compact for family not fast enough small cargo space colors deals/discounts standard options didn’t see commercial high income /debt ratio options want to buy U.S. rebates don’t like sales associates extended warranty

Solution

Implement The solutions that we chose to implement was to offer a variety of engine types and market the Jetta options better.

Confirm

Prevent Recurrence VW will analyze sales to get feedback from target market. We need to focus on the size perception of our vehicle to eliminate the idea that bigger is better. VW will allocate more funds to engine research and development. Finally, we will conduct more surveys on target market to monitor changing trends.

Next Steps Marketing will continuously monitor target market and resulting trends due to various economical factors. All data will be disseminated through electronic e-mail and training sessions.

Business Function Statements Improve Quality Focus on Customers Innovate Design Standards Satisfy Employees

PDCA Tree Diagram