Considering Different Theories of Total Quality Management - Research Paper Example

Table of Contents Table of Contents 0 1.Introduction 0 2.Theories of Quality Gurus 1 2.1Deming’s Theory of Quality 1 2.2Juran’s Theory of Quality (140) 3 2.3Crosby’s Theory of Quality 4 2.4Ishikawa or Fishbone Theory of Quality 5 3.Analysis 6 3.1Explanation of Quality Theory: 6 3.2Enhanced Quality Management Outcomes 7 4.Application 8 4.1Crosby’s Theory and Al Ain Municipality 8 4.2Expected Outcome: 9 5.Summary and Conclusion 9 Bibliography 12 1. Introduction “Quality management is an organisation-wide approach to understanding precisely what customers need and consistently delivering accurate solutions within budget, on time and with the minimum loss to society” (CQI, 2009). Quality is one of the most essential elements of any business. Stakeholder satisfaction and the success of any business are completely based on the quality of the products and services provided by companies. As explained by Willa A. Foster, and as has been followed over the years by various companies across the world, it is clear that “Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction, and skilful execution; it presents the wise choice of many alternatives” (Willa A. Foster). This report aims at dealing with the various theories that have been set down by the famous authors and the quality gurus. This report also focuses on the analysis and real time applications of the theories that have been set down over the past. An attempt will be made to discuss how the Quality theory set down by Crosby will prove to be beneficial for a Municipality, based on this summary and conclusions will be drawn out to understand and highlight the pitfalls of the theory and possible mode to avoid them. 2. Theories of Quality Gurus Over the years there have been several authors and experts who have provided numerous theories for the quality management within businesses. This section will deal with the theories that have been provided by the pioneers and the guru’s of quality. Following are the various theories that have been set down: 2.1 Deming’s Theory of Quality ‘The Deming System of Profound Knowledge’ was a philosophy of W. Edward Deming. He suggested that the quality can be increased if the appropriate principles are adopted and this will also allow for reduction of costs, by reduction of the other factors like wastes, rework, litigations and also staff attrition. He also explains that the effects are seen on the customer loyalty which sees a cleat rise. The most essential element as explained by him was the need for continual improvements and the need for a combined effort. His philosophy however was based on two main factors: a) There is a clear increase in the quality and decrease in costs when efforts and focus is completely on quality. This he explained with the following formula: Quality = Results of work efforts / Total Costs. b) He also points, that is the prime focus is cost and cost cutting, then the quality clearly declined over time. Deming advocated four main steps needed by all managers and this was regarded as the ‘Profound Knowledge’ and it included: a) Appreciation of a System / Theory of Optimisation: He explained that the main objective of an organisation is to ensure appreciation of the entire system and not just a single subsystem. He explains that the total system consists of all stakeholders like, employees, customers, suppliers, shareholders, community and even the environment. b) Theory of Variation: Deming has highlighted one of the major reasons for the instability in systems is due to various variations that are present throughout the systems. He highlights the need to be able to recognise these variations and bring about a little stability to the systems. c) Theory of Knowledge: The need for knowledge is as important and essential as the need for experience. Deming ha highlighted this need and explains that theories provide a cause – and – effect relationship within the organisations. d) Knowledge of Psychology: The need to be able to manage people is one of the most essential aspects and requires a high knowledge of psychology. It is essential to be able to note the need for extrinsic and intrinsic factors and factors that help motivate the employees as well. 2.2 Juran’s Theory of Quality (140) Juran, J.M., in 1986 presented his theory of quality management. He suggested that there are three main aspects of a business that are extremely important and which require to be taken into account to help improve the quality of the products and services. These include: a) Quality Planning: This is the process where the companies understand the needs of the customers and plan their quality processes based on the needs and requirements. Here all the guidelines are set down which need to be followed. b) Quality Control: The process involves checking to ensure that all process are in line with the set qualities and the guideline that have been set down in the previous step. c) Quality Improvements: the quality improvement process is where the company constantly works on making improvements to the processes and also works on constant improvements to be made to the guidelines based on the needs of the customers. The diagram below provides a better understanding of the relationship of these three aspects of a business and the cost management within the business. Figure 1: The Quality Trilogy It would be impossible to rule out which one of these is not as important as the other and each of these create a balance and complement each other. In an explanation provided for the Quality trilogy, it has been explained, “Questioning which of the quality trilogy is most important is similar to asking which leg of a stool is most important. Without all three, the stool (and the quality system) cannot function effectively” (SHSU, 2009). 2.3 Crosby’s Theory of Quality Philip Crosby was one of the ‘easiest to understand’ Quality Guru. He was referred to as the Fun Uncle of Quality Revolution and he gave a theory on quality which was simple and clear for even lay men (SkyMark, 2009). His philosophy was: “Do it Right the First Time”. He emphasised on the fact that the specifications are not arbitrary and that they need to be set down based on the needs and desires of the customers. He main philosophies included: “a) Quality is defined as conformance to requirements, not as 'goodness' or 'elegance'. b) The system for causing quality is prevention, not appraisal. c) The performance standard must be Zero Defects, not "that's close enough". d) The measurement of quality is the Price of Nonconformance, not indices.” (SkyMark, 2009) 2.4 Ishikawa or Fishbone Theory of Quality Kaoru Ishikawa went one step forward and used a ‘cause and effect diagram’ to find a solution to quality. He brought out a diagram which helped the user see all possible causes of a result and also the root of the imperfection in the process. He went further on to use Deming’s theory as a base and to expand on the same. He converted the four step process to a six step to help provide an improvement to quality. The diagram below highlights his changes to the Plan – Do – Check – Act model. Figure 2: Ishikawa’s Plan – Do – Check – Act Model (Ishikawa, 1985) The theory provided by Ishikawa has been like a break through in the quality industry and it has made it simpler to make root cause analysis for companies and to assist the companies find the issue and bring out newer training and education processes to help improve the quality. 3. Analysis 3.1 Explanation of Quality Theory: Of all the theories that have been discussed the most interesting theory is that suggested by Phillip Crosby. As discussed earlier, the theory that has been set down by him is one where the management tries to ensure ‘Zero defects’, i.e. doing it right the first time. This is theory suggested by him makes practical sense and also highlights how it is essential to ensure that the process is done right the first time. As explained by Crosby, it costs money to be able to achieve quality, however he also says that its costs much more money when quality is not met. This is simply because the companies require to redo the work, and also scrap the items that do not meet up to quality standards, it is then that the amount spent is much higher and much more expensive. As explained earlier, he focuses on the need to do things right in the first time, without errors to help reduce the wastage of time, energy, funds and also resources. 3.2 Enhanced Quality Management Outcomes Crosby’s Theory can help lead to enhanced quality management outcomes very simply and easily. If a company is able to do it right the first time, the company saves up on redoing the work unnecessarily. However, quality also means continued improvements, hence, as explained by Crosby, there are fourteen steps that a company can undertake for the Absolute Quality Improvements: “Step 1: Management Commitment, Step 2: Quality Improvement Teams, Step 3: Quality Measurement, Step 4: Cost of Quality Evaluation, Step 5: Quality Awareness, Step 6: Corrective Action, Step 7: Zero-Defects Planning, Step 8: Supervisory Training, Step 9: Zero Defects, Step 10: Goal Setting, Step 11: Error Cause Removal, Step 12: Recognition, Step 13: Quality Councils, Step 14: Do It All Over Again” (Crosby, 1984). Hence following these steps will help ensure complete and ‘absolute Quality Improvements’. Crosby’s theories will allow the companies / organisations to bring about a sense of quality within itself and will be able to improve the quality of services to a great extent each day. 4. Application 4.1 Crosby’s Theory and Al Ain Municipality Taking the example of Al Ain Municipality and using Crosby’s theory of quality management can help improve the quality of working very well. A municipality as known is different from city to city and it generally deals with the administrative aspects of a clearly defined territory. This involves being a local government for a specific population of the particular area. Using Crosby’s theory here will prove to be very beneficial. It is essential to understand that the costs involved and the number of people involved in any function of a municipality is very high. Hence if Al Ain Municipality makes any errors in the first time, and does not meet the quality requirements, the issues that it can create can be quite devastating for the entire city. As suggested in the theory of the absolutes of quality management, the first point aims at explaining that quality is not goodness, it is the conformance with the requirements. Hence if Al Ain Municipality try to aim at this, the chances are that the needs of the general public will be reached and will be considered to be high quality. Also, if the municipality is able to ensure that all the processes completed right in the first try itself, the money of the public will not be wasted also the overall effectiveness and the time period for the processes will be lesser and the processes will prove to be much more effective. 4.2 Expected Outcome: Successful implementation of Crosby’s theory will lead the processes of Al Ain Municipality to be very effective. The expected outcome of using this theory in the Municipality is excellent responsiveness and services from the municipalities, more customer / citizen satisfaction, better and much more improved overall functioning of Al Ain city. This will also lead to an improved city in terms of overall performance and will lead to the citizens of the city to be much happier and more content with the services and the facilities provided by the city. This will also confirm with the citizens and all citizens and that their money is being utilised for the improvements of the facilities to Al Ain city rather than just being drained out into the corruption of the city or country. The overall effectiveness will be seen in more cooperative citizens, bettered facilities, and safer and much more public friendly city and cities. 5. Summary and Conclusion The contributions of the various Quality Gurus like Dr. W. Edwards Deming, Dr. Joseph Juran, Philip Crosby and also Dr. Kaoru Ishikawa have been very significant and have impacted the world to a great extent. These theories have not only helped the businesses and organisation but have helped a number of city and national government organisations as well. There are however a few pitfalls that need to be addressed for each of the theories that have been presented over the years. Firstly considering Deming’s theories and philosophy, it is seen that Deming has taken into account all the factors of the traditional management process while dealing with the quality management of a company. However, he has not taken into account the need of the company to keep in line with the budgets and the costs that are involved. Also it is true that quality will only allow the companies to grow further but the excessive costs on training the employees can lead the company to be faced with lesser productive hours as well as amounts that could otherwise be spent on processes and the raw materials. In terms of Juran’s Theory, Juran has taken into account only aspects of the quality processes of the company. There is a clear lack of other aspects of the organisation which definitely need to be taken into account while trying to improve any process for the production of products or even improvements of the services. Hence this needs to be considered by companies while making decisions of the company, even if quality management, it is essential to take into account all the aspects of the business to ensure complete rounded off decisions and well planned decisions for the company. Finally considering Crosby’s theory, the theory states that the companies need to do the right thing in the first attempt. This might be the best and optimum solution for reduction of costs however in the practical world it would be very difficult to actually perfect the processes in the first attempt. Hence it is seen that despite all the positives of the theories each of them do have pitfalls that need to be considered and looked out for. Dr. Kaoru Ishikawa has been able to contribute to the subject to a great extent. The theories that are provided by him as an extension to the Plan – do – check – Act model is very useful as it takes into account aspects of business that had been missed out earlier. It helps for overall improvements of the business in a more well presented and well planned manner. In conclusion it is safe to say, that each of the theories that have been developed over the past have in some way a strong connection to be able to help businesses and organisations improve their overall performance by ensuring better and improve quality. Also with the continuous improvements like that suggested by all authors, the companies will be able to have much better, effective and efficient quality management programs in the workplaces. Bibliography CQI, 2009, ‘What is quality?’, Accessed on 11th September 2009, Retrieved from http://www.thecqi.org/Knowledge-Hub/What-is-quality-new/ Crosby, P., 1984, ‘Quality without Tears’, New York, NY: McGraw Hill Publications Deming, W. E., 2000, 'The New Economics for Industry, Government, Education’, 2nd edition, MIT Press Dharma – Haven, 1998, ‘Dr Deming’s Management Training’, Accessed on 10th September 2009, Retrieved from http://www.dharma-haven.org/five-havens/deming.htm Haller, H. S., 1993, ‘Managing with profound knowledge: A management process based on the Deming management theory’, Harold S. Haller & Company Ishikawa. K., (Translated by Lu, D. J.), 1985, ‘What is Total Quality Control?’, Prentice-Hall Inc., Englewood Cliffs, NJ SHSU, 2009, ‘Juran’s Quality Trilogy’, Accessed on 13th September 2009, Retrieved from http://www.shsu.edu/~mgt_ves/mgt481/lesson13/sld012.htm SkyMark, 2009, ‘Philip Crosby: The Fun Uncle of the Quality Revolution’, Accessed on 11th September 2009, Retrieved from http://www.skymark.com/resources/leaders/crosby.asp Read More