Implementing Quality Management System in Emmar As a UAE Based Company - Term Paper Example

?Implementing Quality Management System in Emmar As a UAE Based Company Table of Contents 0 Introduction 3 2.0 Quality Management Frameworks Contribute To Business or Organization’s Success 4 3.0 Management and Technical Systems Analysis of Quality Management Frameworks As Applied By an Organization 7 4.0 Six Sigma Quality Management- Benefits and Problems 11 5.0 Conclusion 14 References 15 Bibliography 18 1.0 Introduction A quality management framework is an important part of modern management system. In the present era, organizations are developing such strategy of quality management in order to build a competitive edge over their competitors. The paper will explain the significance of quality management in business organizations in the present situation. The quality management system with the perspective of management and technical principles will be clearly defined. The paper will also cover the benefits and problems of six sigma strategy in the business organization. Furthermore, the paper will also relate each of these topics with Emaar which is a UAE based company. The company in order to maintain their quality standards has to take various steps of quality management in its operations. 2.0 Quality Management Frameworks Contribute To Business or Organization’s Success Quality management framework is basically a wide concept of management which comprises of structure of an organization, methods, processes, resources that are needed to provide quality management in an organization. It encompasses all processes in an operational life cycle of a service in an organization. These processes affect the quality from identification of the needs of clients to final satisfaction of their requirements. By this framework, quality services are rendered to clients and stakeholders (Haule, 2007). It is considered as a strategic activity undertaken by a business organization in the competitive global market. In various types of organizations, Total Quality Management (TQM) has turned out to be a paradigm of management. TQM has facilitated organizations to make significant development and achievement in their businesses. There is a great difference between the success variable of TQM related to manufacturing and service companies (University of Nebraska Lincoln, n.d.). Quality management plays a significant role in modern business organizations. TQM is a technique to maintain consistency in production process in organizations so as to uphold reliability, efficiency along with quality. The success and achievement of an organization is based upon the loyalty of customers and through this technique, an organization can achieve satisfaction of the customers. The value of TQM is a management based approach which is characterized by three aspects: principles, practices and techniques. These three principles are focused upon continuous improvement, customer orientation along with teamwork (Hoag & Et. Al., 2010). In 1999, Dow & Et. Al. developed the model of TQM in order to examine the effect of TQM practices on the performance of a firm and its effect on the quality of an organization. There are nine dimensions of quality practices in a firm which include commitment of workforce, joint vision, customer orientation, team building, personal training, mutual relation of supplier, high-tech manufacturing methods and use of bench-marking along with principles of just-in-time (Hoag & Et. Al., 2010). The quality management system encourages an organization to examine the requirements of customers. It also assists to define the processes that add towards the attainment of product which is suitable to the customers and maintains these processes under control. The quality management also caters the framework for incessant improvement of increasing the probability of customer satisfaction as well as the satisfaction of interested parties. Due to these facts of quality management, customers along with organizations become satisfied with the products and processes (International Standard, 2000). Emaar was established in 1997, as a Dubai based ‘public joint stock company’. The company has been recorded on Dubai Financial Market due to its maintenance of quality management. Due to the global growth, the company is being ranked among Global 500 on the Financial Times. The quality management system was maintained much effectively by the company and thus Emaar pursued certification of ISO 9001:2000. In addition to the quality management, the company also concentrates on the performance of the each project and maintains its speed. The certification scope of Emaar covers various areas such as ‘property development’, ‘project management’, ‘operation of customer service along with sales and marketing functions and purchasing as well as human resource operations’ (ISO Management Systems, 2008). Due to its focus on quality management, the company opted for Lloyd’s Register Quality Assurance. The decision was due to the global presence of LRQA along with its good reputation and pioneering experience in the field of ISO 9001 certification. It is not only related to quality management of the organization but is also related to other fields of management such as information security, environment along with health and safety. The company undergoes surveillance audit by LRQA twice a year in order to ensure that the system of quality management is effectively implemented in the operational process and is maintained efficiently (ISO Management Systems, 2008). For constant measurements in order to ensure the QMS (Quality Management System), regular in-house audits on all departments was conducted by Emaar in order to assess the implementation of the system, customer satisfaction methods as well as continuous improvement plans. These audits are generally performed by ISO 9001 trained Internal Auditors or Lead Auditors and are further reviewed by senior management (Emaar, 2011). The quality management is also reviewed by senior management after the audit. The company is more concerned on quality and speed of execution that helps it to develop a positive impact on the market in which it operates. The company from each perspective of development strives to be the most valuable company in the world with the support of its quality management system as per certification of ISO 9001:2000 (ISO Management Systems, 2008). 3.0 Management and Technical Systems Analysis of Quality Management Frameworks As Applied By an Organization TQM must include an amalgamation of both people, i.e. soft element and technical systems, i.e. hard element. Mechanistic elements comprise of customer focus along with process management and others that may be considered as the hard aspect of TQM; and the organic elements such as leadership along with people management characterize the soft aspect (Hoag & Et. Al., 2010). The hard part of TQM comprises of ‘Pareto analysis’, ‘statistical process control’, ‘histograms’, ‘ISO 9000’, ‘tree decision diagram’, ‘matrix diagram’, ‘critical path analysis’ and ‘fishbone’ or ‘Ishakawa diagram’. Statistical process control is a statistical method with the help of which managers can control the service delivery or the production with a view to improve it. ISO 9000 series is a well known quality management system. This set of standard ensures that company has a policy of quality improvement which makes it more competitive in the market (Psychogios & Priporas, 2007). Pareto Analysis facilitates managers to eliminate any problem that may arise in the operational process within the organization. This tool assists the managers to identify, analyze as well as rate the association between two or more variables. Histogram is used to demonstrate the number of occurrence of broad range of events. The tree diagram facilitates the managers to organize problems, targets and needs of customers in a specific manner. Critical path analysis is related to the projects of management because these are related to the implementation of qualitative program inside an organization. Fishbone is another technique of total quality management which is used to recognize the basis of a problem without the use of statistical methods (Psychogios & Priporas, 2007). There are nine principles in the soft side of the quality management. The huge involvement of employees in the strategy of an organization brings increased flow of knowledge as well as information. It also contributes in the ‘distribution of intelligence’ to the base of an organization in order to resolve the disputes. The second principle is the continuous improvement which signifies that the output of an organization can be increased by continuously recovering the performance in an organization. The quality can be improved if managers are dedicated to maintain the endless improvement while meeting both external as well as internal needs of customers. It is possible to achieve the quality management when a management of an organization develops continuous values of improvement (Psychogios & Priporas, 2007). The management also provides essential practices of an organization. ‘Teamwork’ is essential for constant improvement because it is considered as effective and strong work entities than individuals. In every organization, team formation is essential as it develops trust among the organizational members and makes the work flexible. Empowerment is one of the principles of TQM. Empowerment is referred to an environment in which individuals possess ability, confidence as well as dedication to take responsibility. These factors improve the process and adopt the necessary steps in order to satisfy the requirements of customers with a view to achieve the values and goals of an organization (Psychogios & Priporas, 2007). Continuous training is another principle of TQM which is required to enhance the quality of an organization. Effective quality training is essential in order to reach the technological changes as well as the changes of the environment in which an organization operates its structure. Customer satisfaction is the prime importance in quality management principles with the aim to improve its performance. The two types of customers are associated with the satisfaction need. The external customers encompass clients, governments, public who define the delivery of quality service and the internal customers are employees along with different departments that describe the quality procedure related to the service delivery. The top management commitment and support enable a firm to develop high quality products. The top managers need to make the quality objectives of an organization in order to maintain the impetus. The democratic or participative management style in TQM may facilitate an organization to entail soliciting input from empowered employees. Organizational culture is also the principle of total quality management, which is involved to change the employees’ actions and perception of the work so as to incorporate quality (Psychogios & Priporas, 2007). Emaar, the UAE based company develops innovative ideas from the expert employees. The quality employees are created and the employees work in team with an intention of providing effective ideas related to customer satisfaction. Emaar also ensures that high quality standards for each of its products and services are maintained while working under pressure and sustain efficiency along with speed. This is maintained by an exclusive Performance Management system in the organization (Emaar, 2011). Excellent customer service and high quality products are supplied by the company. In order to achieve the goals, the necessary knowledge through formal trainings or hands-on day-to-day experiences is provided by Emaar to its employees. The company in order to make career advancement is committed to provide all its employees necessary assistance, support and sufficient opportunities in order that they work with satisfaction and pride in the workplace. As a result of this systems and techniques taken by the company, it helps them to maintain the quality management system in the organization. The company provides prior focus to the performance as and qualities of the organization as well (Emaar, 2011). 4.0 Six Sigma Quality Management- Benefits and Problems Six sigma can be referred to as a ‘project-driven management approach’ with a aim to develop quality of products, services as well as processes of an organization by continuously removing the defects with a view to maintain the standard of an organization. It is a strategy adopted in an organization for understanding the requirements of customers and also analyzes business system, financial performance of an organization and productivity as well. Six sigma methods facilitate an organization to gain competitive advantage with knowledge of statistics, project management and engineering (Kwak & Anbari, 2006). This strategy has been implemented in various sectors and has brought tremendous success in quite a few companies. The manufacturing companies that have implemented this strategy have gained huge success. For example, the first organization to implement this strategy was Motorola and following it, other companies such as GE, Toshiba, Kodak, Texas, Sony and others had also applied and thereby achieved success in their operational process as well (Kwak & Anbari, 2006). The financial sector in order to maintain competition in the competitive environment develops six sigma methods for reducing cash collection time cycle along with difference in collection performance. In financial companies, the aim of Six Sigma project is to improve the accuracy of cash allocation so as to make reduction in the bank charges. The other intentions of implementing this strategy are as follows: accuracy for reporting needs to be improved, documentation regarding the credit defects and mishandling of collection of check should be reduced. In addition to these the performance of the collector needs to be maintained. Various financial companies such as Bank of America, JP Morgan Chase, GE Capital Corp and others have used six sigma in their operation and improved the customer satisfaction and built competitive advantage over credit unions. In research and development sector, Six Sigma is implemented with an intention to reduce cost, improve the process of R&D and extend the speed in order to enter the market. They attain huge success while handling the research process. The engineering and construction companies implement this strategy to recognize and prevent the prevailing defects from design to construction and maintain the payrolls of the employees. For example, one of the leading companies named as Bechtel Corporation has gained huge success from this strategy (Kwak & Anbari, 2006). Though the implementation of ‘Six Sigma’ has facilitated various organizations to gain success, in certain organizations, it fails to provide effective services to the operation of organizations. The process of ‘Six Sigma’ comprises of traditional principles of business which are then modified and implemented at the time of urgency. This strategy may not be the long term sustainability from the perspective of organization. The problems and issue in an organization may not be solved correctly with the help of ‘Six Sigma’ if it gets implemented in an inefficient manner (Kwak & Anbari, 2006). The company faced challenges and recorded loses in their operations the year 2009. The annual revenue in 2009 was registered at AED 8,413 as compared to the year 2008 in which the revenue was AED 10,717 million. But with its quality management principles of six sigma strategy Emaar achieved various international level projects. The significant growth prospects through this strategy facilitate the company to maintain quality standard and reputation of the company. In spite of the downturn in 2009, the company developed several segmentation strategies in their business. Thus, six sigma strategies brought a failure in certain case in the company but if implemented effectively, it will help to maintain quality standard (Emaar, n.d.). The failure will not arise if the strategy is maintained period. The time period of cash collection can be reduced to a greater extent. The accuracy and correctness of cash allocation can be made more properly that may facilitate them to reduce their charges. The documentation handling can be made further appropriate, which may help the company to bring extensive improvement and sustain the quality standard in their services. The strategy may not provide long term sustainability in their operation. Thus, the company in order to get long term success from such strategy needs to implement it by analyzing the overall need of the organization, which may otherwise cause failure in their operations. 5.0 Conclusion With reference to the above report, it can be cited that quality management system is essential in order to maintain the quality standard of an organization. An organization adopts various techniques so as to fulfill the need of customers. Quality management system is an essential part in modern management system. This strategy is developed by an organization in order to maintain the effectiveness of their operation of services as well as balance the quality of performance level in an organization. Six Sigma is adopted by an organization in order to uphold the quality of products as well as services and at the same time remove the defects that are developed in the operations with an intention to maintain the standard of an organization. References Emaar, 2011. Innovation, Speed & Execution. About Emaar. [Online] Available at: http://www.emaar.com/index.aspx?page=about-mission-innovation [Accessed March 30, 2011]. Emaar, 2011. Employee Development & Positive Work Environment. About Emaar. [Online] Available at: http://www.emaar.com/index.aspx?page=about-mission-employee [Accessed March 30, 2011]. Emaar, No Date. Business Review, Emaar Annual Report 2009, [Online] Available at: http://www.emaar.com/Emaar.Upload/EMR-SINGAPORE-EN-US/CMS/PDF/ANNUAL%20REPORT%20FINAL%205MAY2010.pdf [Accessed March 30, 2011]. Emaar, 2011. About Emaar. Emaar Properties Is Awarded ISO 9001:2008 Quality Recertification. [Online] Available at: http://www.emaar.com/index.aspx?page=press-release-details&id=942 [Accessed March 30, 2011]. Hoag, T. G. & Et. Al., 2010. Literature Review. Total Quality Management (TQM) Strategy and Organisational Characteristics: Evidence from a Recent WTO Member. [Online] Available at: http://wweb.uta.edu/management/Dr.Casper/Fall10/BSAD6314/BSAD%206314-Student%20Articles/MANOVA/Al-Laymoun%20-%20MANOVA%20Article.pdf [Accessed March 30, 2011]. Haule, C. G., 2007. Executive Summary. Implementation of Quality management Framework and Development of Performance Audit manual. [Online] Available at: http://www.ccaf-fcvi.com/index.php?option=com_k2&view=item&task=download&id=47 [Accessed March 30, 2011]. ISO Management Systems, 2008. Drive for Quality. Sky High ISO 9001. [Online] Available at: http://bartridge.org/files/iso/2_pdf.pdf [Accessed March 30, 2011]. International Standard, 2000. Rationale for Quality Management Systems. Quality management systems — Fundamentals and vocabulary. [Online] Available at: http://www.iso.org/iso/watermarksample.pdf [Accessed March 30, 2011]. Kwak, H. Y. & Anbari, T. F., 2006. Introduction. Bene?ts, Obstacles, and Future of Six Sigma Approach. [Online] Available at: http://home.gwu.edu/~kwak/Six_Sigma_Kwak_Anbari.pdf [Accessed March 30, 2011]. Psychogios, G. A. & Priporas, V. C., 2007. The “Hard” Side of TQM. Understanding Total Quality Management in Context: Qualitative Research on Managers’ Awareness of TQM Aspects in the Greek Service Industry. [Online] Available at: http://www.nova.edu/ssss/QR/QR12-1/psychogios.pdf [Accessed March 30, 2011]. University of Nebraska Lincoln, No Date. Abstract. Home. [Online] Available at: http://digitalcommons.unl.edu/dissertations/AAI9425277/ [Accessed March 30, 2011]. Bibliography Pfeifer, T., 2002. Quality Management. Hanser Verlag. Read More