Quality Management and Its Significance in Highly Effective Performance - Assignment Example

Name : xxxxxxxxxxxxxxxxxxxxxxxx Registration Number : xxxxxxxxxxxxxxxxxxxxxxxx Course : xxxxxxxxxxxxxxxxxxxxxxxx Institution : xxxxxxxxxxxxxxxxxxxxxxxx Tutor : xxxxxxxxxxxxxxxxxxxxxxx ©2010 QUALITY MANAGEMENT AND ITS SIGNIFICANCE IN HIGHLY EFFECTIVE PERFORMANCE EXECUTIVE SUMMARY Quality management techniques are essential in the growth and performance of a manufacturing and service business firms. It is a field that is relatively new and growing market as it developed from the 1920s gradually to the contemporary society. Originating from principles of quality control that were the initial stages of the growth of the business, the idea has given growth to the standards of estimation of management standards like the ISO certification that most organizations pursue. The major areas that have stimulated quality management concern the satisfaction of the final consumer, continuous improvement of the processes, and the participation of the employees in the management. Various scholars formulated models that aid in the implementation of quality management techniques in the companies that are highly productive and desire highly effective and efficient performance in its operations. They include Six Sigma, Quality Improvement Techniques (QIT), Management by Objectives (MBO) among others. These have been modified into the ISO Certification models that continue to improve after almost every year. The concept of Total Quality Management has come as an advanced style of quality management that still lays emphasis on the fundamental principles of continuous improvement, focus on the consumer, teamwork and communication and has seen great successes in reputable companies which have had their own way of implementing them. Abstract Quality management is a concept that is needful to organizations of all kinds in order to sustain an exceptional performance in the competitive market. Large or small, public or private, manufacturing or service organizations can apply quality management techniques to particular departments or the whole company as it yields desirable returns suitable to meet the organizational goals and objectives. Since most organizations have given credible emphasis on high performance, a lot of resources have been invested in the various efforts to ensure the improvement in the quality management thus has become a major concern of these organizations. The high rates of globalization has caused a rise in expectations of the customers due to access to information, improvement of technology as well as increase in standards of service delivery and the spring of many organizations. Therefore businesses and companies can only survive on commitment to great service delivery. The world has availed systems that help organizations to analyze the performance of a firm while putting the necessary checks and balances as well as mechanisms on how to deal with the risks that might be encountered. When they are put in place, the company secures a good reputation and competes favorably in the market. The central focus of current economic trends in relation to quality management has been on there areas namely; the final consumer, the empowerment of the employees, the sustainability of growth patterns in the organizations and the impact that every decision has on the environment (Harrington, 1995, pp. 34-56). Background Evolution of Quality Management Quality management has been in existence an area of interest since the 1920’s when the emphasis was on production quality control concepts. The idea developed through the 1940’s and 50’s after the World wars mainly in Japan and America respectively. The Americans that were behind the inception of the concept were Feigenbum, Juran and Deming which continued the focus on product quality control (Andrews, 1994, pp. 46-54). These were hinged from the ideas of Henri Fayol who formulated the principles of management as well as executive management that were being used at the time. These practiced the ideas while in Japan in the 1950’s. The Japanese quality proponents that furthered the American concept were Kaoru Ishikawa, Genichi Taguchi, and Shigeo Shingo as well as the Philip Crosby and Tom Peters from America who continued it after the Japanese in the 1970’s. In the 80’s, the introduction of the quality standardization for management in organizations called the ISO 9000 series, encouraged businesses and organizations to adopt quality in their management skills ( ISO 9001, 2000, pp. 114-23). In today’s era it is the mark that institutions ranging from government sector to private and Non governmental organizations aim to attain to fairly compete in the market This is evidence that quality management has had an evolution that has enabled the business firms, service delivery and manufacturing industries to integrate quality in their operations to ensure that the desirable outcomes are attained. The professionalism that is needed in organization has found its way through the effective management techniques (Barry, 1991, pp. 117-26). The people whose ideas are attributed to the development of the concept have formulated various theoretical perspectives that regulate the propagation of the concept which explain the management models. They attempt to capture the concepts of Plan, Do, Check, Act (PDCA) cycle, the Quality Improvement Teams (QIT), Management by Objectives (MBO), Just In Time (JIT), Pareto Analysis, cause effect diagrams, stratification, check sheets, process control charts, tolerance design, systems design among others. These have been used to emphasize the need for total quality management (Andrews, 1994, pp. 46-9). This captures customer and supplier relationships and the procedures that enhance the same in the operation. The major concept that it integrates is the significance of communication, working together as an organizational culture as contributing to the effectiveness in management. It also incorporates procedures that engage more modern aspects of quality and process improvement using models such as Six Sigma (Kim, 1997, pp.142-7). The tools and techniques involved in integration of total quality management include the identification, measurement, prioritizing, and improvement that are significant to the quality. The equipment that are mostly used to implement the process may include among others Define, Review, Identify, Verify, Execute (DRIVE),field force analysis, cause and effect, Statistical Process Control (SPC), process mapping, Pareto Analysis, Control Charts, frequency distributions, graphs and matrix analysis (Bowen & Lawler, 1994, pp. 148-54). Kaizen formulated a methodology that is used to implement the quality management systems that focuses on the empowerment of individuals for the success of the organization. He laid an emphasis on the need for motivation, the commitment to work together in organized groups and teams (Kantor, 1989). The organization should encourage people to use creativity in their performance the quality management attempts. He proposes a variety of models that are used in selecting, evaluation, coaching and improving the undertaking of tasks which include, Performing’s model, Forming, Norming, Type Indicator, Action Centered Leadership model among many others (Reynolds, 2005, pp. 46-56). A system of coordinated activities that companies use to lead and control an organization in order ensure gradual improvement of the effectiveness and success of its performance is described as quality management systems. These are determined more by the customer expectations (Reynolds, 2005, pp. 175-9). Performance is managed and measured by looking at the essential activities and the resources available rather than the profits and final outputs that are usually utilized by most companies which include balanced scorecard, self assessment techniques and awards (Reynolds, 2005, pp. 147-51). The various self assessment methods that are mostly employed include benchmarking and questionnaire readings. The total quality management is implemented based on an improvement and excellence initiatives and the planned outline for the same is based on research, advisory and educational studies done in European Centre for Business Excellence as well as the research department of Oakland Consultancy firm (Bowen & Lawler, 1994, pp. 132-54). Total Quality Management The Total Quality Management has been implemented in various modern age organizations which reveal the effectiveness and the practicability of various techniques, concepts and mechanism that feature in quality management and process improvement theory. They include Airedale Springs Ltd, Appor Ltd, BAE Systems/Waer Systems Ltd, British Telecom Plc, GSM Group, Hydropower Dynamics Ltd, Lakeside Engineered Systems Division, Aeroquip Group, Mortgage Express, Spembly Medical Ltd, Spring farm Architectural Mouldings Ltd, Vista Optics Ltd. The various concepts that are attributed to the success include the skill identification, team work, supply chain improvement, supplier partnerships, quality frameworks, systems, balanced scorecard, self assessment, strategy planning, excellence, measurement, quality awards, process control, benchmarking, design for manufacture projects and creativity among others. Kaizen Framework Kaizen model has been used to imply continuous improvement. It is the major system that is used in quality management and was developed in Japan in industry and manufacturing in the 1960s and still continues to be instrumental in the operations of most successful corporations in the world. It is a way of thinking, working and acting that is based on the principles and the values of an organization (Mangelsdorf, 1999, pp. 37-53). . It was formulated to attain certain goals that relates to eradication of all forms of wastage in time, resources and efforts to raise the output, enhance harmony and flexibility in organizations, facilitate improvement of procedures and events as well as giving room for sustainability, profitability, stability and innovation and high employee participation. In spite of the fact that it promotes systematic and consistent patterns of improvement in the organization, it also accommodates gradual change on the organization as a whole rather than specializing in certain areas. It encourages the involvement of people in the work in contribution of ideas, analysis, responding and giving suggestions in the work. The aspects of management that gives people responsibility and coordination which requires commitment and interest in the work also comes out clearly. The framework succeeds in corporations where members take part in the management of the company with the goal of transforming the system to an easier form through motivation and empowerment. They use analytical systems in auditing the processes to facilitate improvement. When not implemented appropriately, it may cost the organization highly especially if the methodology is added to the existing failing systems that have not been fixed. It can result to negative impacts in case it is poorly integrated in the system and in people’s mindset. Inadequate enough training as well as lack of support from the leadership towards this concept is also a disadvantage. In addition, the leadership may not appreciate its value and hinder its progress. Having originated in Japan, it has great emphasis on the individual and employee empowerment in companies and has had great effects on the ideas of motivation and management as explained in the Needs Hierarch Theory by Abraham Maslow, Motivational Theory, Equity Theory, Y- Theory by Douglas McGregor among others. The connection between basic principles of quality management and motivation and management of people is quite clear in this framework. In summary, the effectiveness of management in organization is hinged on the balance of systems, processes, equipment, output, and profit with people, encouragement, and teamwork, flow of information, identification and awards. These aspects are therefore put in the right perspective. Quality Tools The tools or techniques that are employed in favor of the framework based on statistical and production procedures are used at all levels of the organization. These may include the 5 Why questions that look at the causes of a problem, the Flow Charts, Pareto Charts, Control Charts, Frequency Distributions, Checklists, Histograms, Fishbone Diagrams and Run Charts among others. Some of the above listed methods have been in use in the mainstream management while others like Fishbone Diagrams have been used widely in engineering and manufacturing industries (Kohlhorst & Barbara, 2003, pp. 47-61). Quality Circles. The framework also incorporates the use of quality circles, which refer to people in groups who gather to assess, review working practices with a view to making proposals for improvement. This is more employed in manufacturing, engineering companies and technical departments (Wellins, 1995, pp. 146-78). The circles operate in empowered, collaboration majoring in problem solving as well, as changes in the processes with observance of total quality management procedures. Six Sigma Framework This is a methodology that is used by corporation to consider long-term initiatives that can be instrumental in the much needed change. It is a forecast thinking that acts as a basis of planning in an organization. It is a process that enables businesses to raise their profit margins by directing their operations, improve the quality of service delivery and reducing the shortfalls and the mistakes that the organization does (Barry, 1991, pp. 158-62). As opposed to conventional programs which concentrate on identifying and rectifying the defaults, Six Sigma gives specific methods to rejuvenate the procedure to limit the rise of the defaults again. Companies that have faced stiff competition in Japan like Motorola have used Six Sigma in corporate as well, as institutionalization. Six Sigma is intended to produce long term but should produce immediate increase in profit margins. It aims to achieve financial targets in twelve month increments (Pett & Miller, 1994, pp. 98-111). The methodology’s breakthrough strategy, a method of using effective data collection and statistical analysis, was useful in identifying the sources of mistakes and how to eliminate them. The success that Six Sigma attained in the companies that employed them significantly improved the quality of the job of every employee. It was carried out as training on that was the basis of promotion. It therefore had great impact than all other methods (Pasmore, 1994, pp. 115-65). Six Sigma and Business Process Management Six Sigma is constantly employed on conventional departments without dependency on business thinking and thus has limited opportunities to apply its techniques making them so redundant. The applicant should inquire to identify the businesses that need improvement and in what ways in order to realize their objectives. Then organizing the improvement initiative with respect to the various business processes to avoid overlapping and redundancy of the initiatives and increased collaboration. It also enables the organizations to conduct and monitor projects with the help of steering teams that will limit the failure of the method due to tribal conflicts in traditional; settings (Stokes & Stewart, 1991, 146-76). In addition, leadership has the discretion to bridge the performance gap and the company’s ability to adapt to change when employing six sigma techniques. It also improves greater sensitivity to the human effects of the methodology when applied using business process thinking. The process improvement methods stand to gain when six sigma measurement techniques are employed and its rigorous training programme (Madonna & Drew, 1992, pp. 45). The ISO Quality Standards. These quality management criteria as the documented agreements that carry technical specifications or any other criteria that is to be used consistently as rules, guidelines, and definition of characteristics to ensure that materials, processes, and services fit for their purposes. They have been in operations since the 1980’s and were designed to achieve certain objectives which include attaining, maintaining and continuously seek to improve the product quality, improve quality of operations to continually meet the consumers as well as stakeholder’s requirements. Consequently, they were to provide confidence to internal management, employees, consumers, shareholders and that quality system requirement will be fulfilled (Spanbauer, 1990, 67-9). There have been five major standards which include ISO 9000, ISO 9001.ISO 9002.ISO 9003 and ISO 9004. These were designed with certain purposes that they should meet. ISO 9000 is advisory and is a basis for choice and use of the other standards. ISO 9001 is a quality assurance standard that is a framework for companies involved in design, development, production, installation and servicing of a product or service. ISO 9002 is also a quality assurance standard that acts as a model for organizations engaging in procedures similar to those in 9001 but no specialized in design and development of products or services (McKee, 1992, pp. 45-8). The ISO 9003, a quality assurance standard that models assurance for companies, is involved in the final inspection and tests of a given product. ISO 9004 is an advisory guide for the application of various elements of quality management system (Muir, J., 2004, pp. 21-5). Controversies however surrounded the ISO 9000:2000 since the original standards and the 1994 version concentrated on the quality of the process involved in the production of the goods as opposed to what is produced (Dean & Evans, 1994, 43-52). The ISO Certification is structured in a way that enables them to assess quality management systems’ fundamentals and vocabulary, requirements, guidance for performance improvement and guidance on quality environmental auditing. Organizations that pursue it are required to outline the scope, definition, estimations, assessments and improvements, product realizations, management responsibility and the quality systems that are already in place (Macher, 1988, pp. 46-76). The remodeled systems place focus on the management’s commitment to satisfying the needs of the consumer, constant improvement and organizational processes. They must have a quality policy; enforce corrective action processes to monitor and control nonconformance, write and document control processes, conduct internal audits, train workers on the quality and audit procedures, complete quality manual that consolidate all procedures among others (Stein, 1994, pp. 43-8). Once the company has acquired the certification, it is recommended that renewal of certification after every 3years. The demands of the consumers have increases resulted in the design of ISO 9000:2008 which was found to be easier to use, have a clearer language, was compatible with the environmental standards ISO 14001:2004 and was translatable into other languages (Brucker, 1995, pp. 57-64). Analysis The objectives of the work were to look into the various aspects of quality management in its contribution to the sustenance of high level performance. The project has covered the significance of quality management and the various frameworks that are involved in the same. The work has also looked into the various ways in which the frameworks can be implemented in the various organizations. The work has also covered case studies of companies that have implemented some of the frameworks and the successes that they have attained in the process. The evolution and the modification of various total quality management techniques have also been assessed (Giordan & Ahem, 1994, pp. 58-64). The procedures that are involved in the implementation of the quality checks in companies involve practical measures that are needed to be implemented by organizations. This is based on the emphasis that the quality management skills have placed on employee development, process improvement, team work and the resultant customer satisfaction. They require adequate information that is provided to the employees on the process if it’s different from the usual. This has great significance as it determines their attitude and receptiveness to the measures (Holpp, 1994, pp. 57-87). Teamwork has become of a great emphasis in organizations of the contemporary society. The working together of employees can contribute greatly to the success of quality management as mutual understanding is enhanced in the process. The process improvement which acts to bring great results in the consumer satisfaction is the goal of every organization. However, this can be compromised once there has been some for of monopoly in the market (Brucker, 1995, pp. 86-9). Most organizations have not succeeded in the satisfaction of the consumer since there has been a duplication of roles in the market since a number of organizations offer similar services and there is no distinction between quality and substandard. The consumers have come to doubt the credibility of the organizations since there is a proliferation of fake products that compete with the certified and reputable companies that have been trusted to deliver quality. This is a challenge leaves the consumer to suffer and the corporations to run at huge losses. There is need for the standards to be raised to further level since a majority of the companies afford the ISO Certification which makes quality levels to reduce to a level where the basic standards are compromise. There needs to be harmonization of roles of companies to avoid the wastage of resources in duplication and unhealthy competition. The quality management systems in manufacturing and service organizations should be standardized and adjusted to meet the rising consumer needs in the current market. It is similarly imperative for the group to appraise their goals and objectives to suit the competitive market and meet their goals. The traditional systems are ceasing to have significance in the operation of organizations as advancements in the technology in the contemporary society. The companies should invest in training, communication and the networking with the related organizations to ensure steady improvement in the individual organizations. Conclusion The high quality management techniques are continually being embraced by companies in the contemporary world since it is a growing standard that governs the performance of the organizational processes. They have conducted trainings, seminars and workshops that are targeted for improvement in the standards and quality management. The sustainability of the standards has become a concern that the companies are keen to maintain in their operations. When effectively employed, it results in the upbringing of the employees since their talents are improved and they transfer the skill to many others. 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