Total Quality Management - Case Study Example

? Total Quality Management of the Table of Contents Introduction 3 Total Quality Management: Concept & Importance 3 Total Quality Management at Xerox Corporation Ltd 5 Ten Elements of Total Quality Management Program at Xerox 7 Recommendations & Conclusions 8 Reference List 11 Introduction Intense competition and the trade barriers have posed a challenge for the companies to operate in diversified markets and also maintain their market share. Advancement in information technology and telecommunications has increased the chances of the companies to enter into diversified markets and have also been instrumental in breaking the traditional barriers of market entry (Cassidy, 2000). The existing market players are witnessing threats from new entrants which have the potentiality of gaining competitive advantage over its competitors. Apart from profitability, increase in market share the company needs to focus on adhering with protectionist, import restrictions, tariff, subsidies policies etc. These challenges have led to the emergence of Total Quality Management (TQM) concept which focuses on the timely and high quality production along with accurate supply of goods. The author of the study has highlighted the importance of TQM concept, applications, importance and limitations. The study will give an insight into the TQM practices of Xerox Corporation Ltd. Finally, it will conclude with recommendations that have the potentiality of improving the existing TQM practices of the chosen company. Total Quality Management: Concept & Importance TQM concept has become instrumental in improving productivity of the company since the last few years (Wiley College, n.d.). The origin of the TQM movement started in the year 1970 when several American corporations adopted approaches that were almost similar to the Japanese managements system and instrumental in improving the efficiency of the company (Chatfield, 1995). The Department of Defense adopted the TQM approach during the mid 1970’s and the sole focus of the department was to improve the productivity, timeliness and quality of government products and services (Chatfield, 1995). TQM ensures efficiency by encouraging companies to plan the development of products and systems that help in delivering products only as per the expectations of the customers. TQM helps in achieving profitability, productivity and markets share for both products and market situations (Feinberg, 2000). It has helped in achieving high degree of differentiation and reduction of costs. TQM helps in integration of activities, which constitutes of integrated system of various principles and is the prime determinants of sustainable competitive advantage for any other company (Gilchrist and Brockman, 2000). To retain customers and to create customer value the management needs to focus on providing employees a service, which is customer effective than its competitors. The customer satisfaction transforms into customer delight when the services and goods exceed customer expectations. TQM approach helps in improving the quality of services and goods on a continuous basis, which involves participation of individuals at every level and phase of organization. The Japanese organizations were the first to adopt the TQM approach during the early 1950’s. TQM includes methods like Just in Time and Jidoka, which means in station quality (Tari, 2005). Just in Time system is the most widely used TQM approach which involves the flow of materials in processed way where the right part is received at the right time and the right place (Radisic, n.d.).The Kanban or the instructions are received from customers and helps in the process of replenishment of the material parts. The results are the establishment of pull approach towards production activities followed in most of the companies. The concept of Jidoka is extremely complex in nature and is not popular amongst other companies. This relates to the types of intelligence machine, which has the potentiality of stopping the production process whenever any kind of error or deviation occurs. Total Quality Management at Xerox Corporation Ltd During the mid 1970’s the TQM approach was first adopted by Xerox; they wanted to achieve 100 percent quality and fulfill customer requirements. Xerox had lost 65 percent of their market share to their Japanese competitors. The copiers manufactured by Japanese competitors were less expensive and of supreme quality. Xerox followed the TQM concepts religiously and regained its lost market share and it won a Baldrige award in the 1990’s (Zook, n.d.). The Baldrige award is one of the most prestigious awards which encourage American corporations in delivering high quality products and services and also to remain competitive in the market (Zook, n.d.). The company opened its first research facility in the year 1970 also known as PARC (Palo Alto Research Center) and their main task was to invent new method and procedure to deliver products of high quality and conduct research in material science, electronics and computer science. Presently, the task of researchers at PARC is more focused on understanding the customer wants and needs and design services accordingly. The opening of research facility itself was a method of implementing the TQM approach and laying emphasis on introducing unique TQM approaches. Some of the main objectives of TQM approach would be benchmarking, reduced supplier base and developing leadership teams which focus on producing unique TQM methods (Blakeman, 2002). Benchmarking is considered method of referencing in measuring and judging value, quality etc. The management of Xerox looks at the methods of TQM enforced by the management of the competitors and sets a level of quality and value that all of its products are compared against. These approaches of TQM are also utilized by other companies because of its high quality standards. Once, the management of Xerox has set a new set of TQM standards, the research center strives to develop new standards for better quality products. One of the main objectives of the company is to reduce its supplier base. A supplier base is claimed to be the source of raw materials of the company. For example Xerox has a different supplier for each of its manufacturing facilities to a consolidated group of supplier for each of its facilities. The supplier base gives control in the decision making process and has drastically cut the amount of suppliers required to increase accountability. Further, these suppliers are reduced number of people required in overseeing the ordering process from the suppliers which allows a decrease in the positions and less of chance of error. The management of Xerox utilizes the concept of TQM approach to develop leadership approach. Development of new leadership teams are relatively new concept in the TQM approach and the name of this program is called Leadership through Quality Management (LTQM) and Quality Training Task Force (QTFF) for its company’s leadership teams. Presently, more than 100000 employees of Xerox have been trained in this process and lay emphasis on continuous quality improvement and define quality precisely in meeting requirements. This leadership training program imparted to the employees brought about positive change in the organizational culture and helped in enhancing the productivity of the organization. The cost of implementing program was around $125 million and required over 4 million hours of man work. The results of the program were positive; customer satisfaction increased by 40 percent and customer complaints decreased by 60 percent. The management increased the expenditure for training and development purposes by 3.0 percent. The management of Xerox claims to have learnt immensely while implementing the TQM approaches. TQM has helped in knowledge sharing among is departmental units which has led to the expansion of the company on a larger scale (OoCities, n.d.). Ten Elements of Total Quality Management Program at Xerox TQM is viewed as an important approach of managerial thinking, which can improve the organizational culture. There are ten elements while implementing the TQM approach. The definition of quality needs to be well-defined, which would require the employees in understanding the definition of quality in their job, department and throughout the company (OoCities, n.d.). Xerox allowed the active participation of the employees by empowering them with responsibility and implementing a suitable reward system. Xerox always believed in customer orientation by directly involving customers in sales process (OoCities, n.d.). TQM requires focus on company business process and Xerox continuously monitors the manufacturing process (OoCities, n.d.). It is required to lay emphasis on supplier relationships and by laying emphasis on the supplier relationship Xerox was able to increase its return on assets (OoCities, n.d.). The organization must be able to take a preventive approach and Xerox has been able to discard its non value added work (OoCities, n.d.). A company needs to adopt an error free attitude and Xerox has been able to fulfill this requirement by implementing a quality index. A company needs to implement a program which helps the management to perform the actions based on facts (OoCities, n.d.). Xerox fulfilled these criteria by turning into an information company, TQM should encourage customers and managers to actively participate in the employee programs. Xerox willingly allowed the participation of employees in most of their decision making (OoCities, n.d.). Line workers and other personnel was involved and were given the opportunity to provide input in finding ways of improving production and service through quality improvement teams. The ninth element is to create an atmosphere of total involvement. The benefits of TQM approach cannot be achieved until and unless the company applies the concepts effectively. Xerox was able to fulfill this requirement by applying the TQM concept effectively in its manufacturing process. Companies implementing the TQM approach should strive for continuous improvement. The research and development team of Xerox are focused on innovative methods and products Recommendations & Conclusions Although, TQM mechanisms followed by Xerox are very strong and facilitates the development of high quality products and services to customers it needs to implement certain programs for the betterment of the company. Quality Awareness Program: To implement TQM in an effective manner each and every employee of the company needs to be aware of the requirements of quality (Zairi, 2000). Management Leadership program : It signifies that for successful implementation of TQM approach the top level management in an organization should be committed towards quality improvement in a company and adopt leadership approaches to influence the other employees to make them follow the same. Organizing improvement in quality: The management of the company should be complying with the quality standards, which will help in taking an organizational transformation. Functional Improvement at all levels: Successful implementation of TQM approaches and tools at each and every level requires the active involvement of the employees in a collective way. Apart from CSR approaches the various tools implemented to enhance the productivity levels of Xerox will be as follows: Control Tools Management Tools Techniques Control Charts Affinity & Arrow Diagram Benchmarking Tools Departmental Performance Analysis Graphs Pareto Diagram Scatter Diagram Matrix Data Analysis Relation Diagram Scatter Diagram Failure Analysis at each and every level (Tari, 2005). Problem Solving Methodology and Quality Control (Tari, 2005). Thus, we can observe that implementation of TQM approaches have the potentiality of paving the path of success for any kind of organization. TQM approaches will help in customer retention and enhancing the customer delight by fulfilling their expectations (Khan, 2003). This approach will help Xerox to manufacture more unique high quality copiers which will serve as a benchmark for other photocopier companies. Reference List Blakeman, J. (2002). Benchmarking: Definitions and overview. Retrieved from http://www4.uwm.edu/cuts/bench/bm-desc.htm Cassidy, M.P. (2000). Streamlining TQM. The TQM Magazine, 8(4), 24-28. Chatfield, M. (1995). TQM: it really works. Public Roads, 59(2). Retrieved from http://www.fhwa.dot.gov/publications/publicroads/95fall/p95au24.cfm Feinberg, S. (2000). How managers defeat TQM. The TQM Magazine, 8(2), 24-28. Gilchrist, A., & Brockman, J. (2000). Where is the Xerox Corporation of the LIS Sector? Retrieved from https://www.ideals.illinois.edu/bitstream/handle/2142/8043/librarytrendsv44i3i_opt.pdf?sequence=1b Khan, J.H. (2003). Impact of total quality management on productivity. The TQM Magazine, 15(6), 374-380. OoCities. (n.d.). The Xerox corporation. Retrieved from http://www.oocities.org/timessquare/1848/xerox.html Radisic, M., (n.d.). Just in Time concept. Retrieved from http://smallb.in/sites/default/files/Just-In-Time%20Concept_0.pdf Tari, J.J. (2005). The eclipse of listening. The TQM Magazine, 17(2), 182-194. Wiley College. (n.d.). Total quality management. Retrieved from http://www.wiley.com/college/sc/reid/chap5.pdf Zairi, M. (2000). TQM: what is wrong with the terminology? The TQM Magazine, 6(4), 24-28. Zook, J. (n.d.). Total quality management in the Xerox Corporation. Retrieved from http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/tqmxerox.htm Read More