Total Quality Management - Case Study Example

Quality Management Total Quality Management (TQM) Prestige International, Inc. has implemented the approach of Total Quality Management to guaranteethe quality of our product. TQM rightly encompasses the culture, attitude and organization of our company and its goal is to continue to provide our customers with top quality products and services that meet their ongoing needs. The culture expects quality in all areas of the companys operations, and requires that tasks be done right the first time by eliminating any defects, mistakes, and waste from operations. Customer Satisfaction Prestige International, Inc. has executed TQM because it strives to uphold our company’s objective of a customer-first orientation. Customer satisfaction is seen as our companys top most priority. Our company responds and adapts quickly to customer requirements. Not only that, but our company goes beyond the expectation of defect and error reduction, merely meeting specifications, and minimizing customer complaints. Prestige International, Inc. works to constantly improve product and service attributes that meet basic requirements. This helps them to gain a competitive advantage. Continuous improvement Ongoing improvement of all operations, activities and tasks is highly valued by Prestige International, Inc. Once it is realized that a product’s top quality is demanded by a customer, continuous development is immediately put into effect to assure the highest level of customer satisfaction. We also recognize that the quality of our product is a direct result of the process involved. As a result, there is a strong focus on continuous improvement of our companys processes. Improvement cycles are encouraged and maintained for all the companys activities like, product development and the proper management of customer relationships. Eliminating waste is another component of the continuous improvement approach. The customer-driven approach helps to prevent errors, decrease mistakes, and achieve defect-free production. Top Management and Employee Training Prestige International, Inc. adopted TQM as a code of life for the company. It was introduced and directed by top management where commitment, dedication and personal involvement has always been a top priority of theirs. This has efficiently helped in creating and deploying clear quality values and goals consistent with the objectives of the company while at the same time ensuring and deploying well-defined systems, methods and performance measures for achieving those goals. These systems and methods put in place actively guide all quality activities and encourage employee participation. Prestige International, Inc. requires a devoted and well-trained work force that participates fully in quality improvement activities. Such participation is reinforced by reward and recognition systems aptly emphasizing the achievement of quality objectives. On-going education and training of all employees supports the drive for quality. Employees are also encouraged to take more responsibility, communicate more effectively, act creatively, and be innovative. Implementation In order to properly and effectively implement TQM, Prestige International, Inc. focuses on the following 7 principles: 1. Quality can and must be managed 2. Processes, not people, are the problem 3. Don’t treat symptoms, look for the cure 4. Every employee is responsible for quality 5. Quality must be measurable 6. Quality improvements must be continuous 7. Quality is a long-term investment ISO 9001 Prestige International, Inc. is an international company expanding its business worldwide. In order to gain quality recognition, we decided to implement the ISO 9001. The ISO 9001 is one of a series of three international standards for quality systems that the company has employed for external quality assurance purposes. ISO 9001 standard quality system requirements are outlined in the following sections: Management responsibility Quality system Contract review Design control Document control Purchasing Purchaser supplied product Product identification and traceability Process control Inspection and testing Inspection, measuring and test equipment Inspection and test status Control of nonconforming product Corrective action Handling, storage, packaging and delivery Quality records Internal quality audits Training Servicing Statistical techniques Cost Reduction Strategies To keep up with increasing demand, Prestige International, Inc. has to constantly adapt their methods to increase production without increasing costs. Our current strategies to reduce cost, involves our factory design (logistics) and outsourcing. Our operations management team has focused on applying and creating a lean production system in order to lower our costs, increase efficiency, and keep overhead at a minimum. A thorough and comprehensive MPR system has allowed Prestige International, Inc. to constantly evaluate our processes and integrate of all our departments. Outsourcing In order to maintain its well-known high quality image and still be able to retain a competitive product on the market, Prestige International, Inc. outsources the production of the Voice Recorder, a fundamental part of the Talking Business Cards. By outsourcing the production from China and Thailand, we are able to efficiently reduce the cost of raw materials and labor, allowing a lower cost on the Voice Recorder and consequently on our final product. If any problems or issues outside our control (e.g earthquakes, natural disasters) prevent us from importing from the above mentioned suppliers, we have a backup supplier in the United States. Although, it allows for faster shipping, the cost achieved is higher due to raw materials and labor. Factory Design Our company has been designed in such a way, that it maintains a high standard of manufacturing and flow of materials on the production floor. The implementation of a linear assembly line allows for better-standardized management and flow of materials to a final product. Materials immediately go through quality inspection upon arrival, stored in our warehouse, and then placed in bins where they are moved accordingly throughout the factory. Our warehouse/inventory of final product is strategically located next to the shipment office near the pick up doors so that trucks can directly load and unload quickly and in a timely manner. Standard Operating Process on Sales Orders Processing Purpose The standard operating procedure of sales order of Talking Business ensures that the operation process follows from forecasting sales to customers. This step in our production process takes place after the shipment of the products to our customers. Extent This SOP is intended to outline the correct procedures for our employees working in this specific production process on the floor. This procedure also affects our entire company by helping to create quality products and maintaining our high standards. Prerequisites Kanban is the method of production authorization and material movement in the lean production system. The purpose of Kanban system is to signal the need for more parts and ensure that they are readily available for assembly. Responsibilities Employees working in this production process have am important responsibility to ensure that the products are completed in the required amount of time, while adhering to strict quality principles. Procedure Step 1: Receive sales order from customers Step 2: Ensure enough materials are available to meet the production number for shift and that there are enough backup- inventories Step 3: Inspect quality on 10-second recorders (from our suppliers – China and Thailand) Step 4: Turn on the machines to cut business card information. Step 5: Turn on the machine to print the business cards and customize them the way different hotels require Step 6: All employees work strategically to glue the 10-second recorders to the business card Step 7: Quality control is ensured for the final product Step 8: Final packaging in boxes Step 9: Ship products to our customers around the globe. References Our training program includes instructions on how to correctly glue the 10-second recorder onto the business card. Read More