Quality Management in Business - Coursework Example

Quality Management in Business Introduction Quality management is an aspect which holds immense importance for every business despite its nature, type or size. There are several ways in which quality management plays an important role and should be applied. This paper will analyze the ways in which quality management affects the customers and staff members of the organization and how a business can flourish using quality management processes. The need and explanation of various standards and processes are also outlined which help in building an understanding of quality management, processes and controls. Guidelines, methods and recommendations for improved systems are also given. Section 1 Definitions of ‘quality’ in terms of business and services provision: Quality is an important factor for the business activities, but at many times it can be difficult to find a good definition. The simplest definition of quality which can apply to all businesses; whether small or large is that quality is how the expectations and needs of the customers are fulfilled. Customers are an important part of every business and the quality of the products and services depend on what the customers need, expect and price that they are paying. The value for money and quality of product is proportionally related as the customers demand products where price reflects quality. Under this principle, the business will adopt a pricing strategy that suits the quality of their product. Another definition of quality states that quality is the process of satisfying the customer’s implied and stated needs. This is where the business creates products in accordance to the needs and expectations of the customers. The business would carry out market researches and consider what kind of products and services are being expected by the customers, and then the quality of the products will be determined. The levels of quality and pricing strategies also depend on the needs of the customers. For example if the customer is ready to use a product of high quality and high price, the business will produce only high quality products, but if there are customers who want to spend less and compromise on quality, then the business will produce the same product with varying levels of quality (Black, 2011, p. 736). Another definition states that quality is the combination of process power and people power. It is linked to the efficiency in production and the improvement of processes. It may also include the technical processes, designs, engineering and management processes. The features and characteristics of the tools and materials provided by the suppliers also include in the quality of the product. In manufacturing businesses, quality can be regarded as the process which is free from defects, delays and deficiencies. Processes of inspection and assurance: The quality assurance processes include all activities that prevent, detect and remove all the defects that tend to occur in between the business processes. The processes include several steps to ensure that the delivery of products and services is being carried out efficiently. The steps include plan, do, check and act. In the plan stage, the business has to ensure that a plan is made in an order keeping in consideration all the processes, activities and methods to be used. The next step is doing, where the business will implement the processes just in the way that they have planned. The next stage is to check that all the processes are being carried out efficiently and no defects are detected. In the last stage, the actions to resolve the issues and make corrections will take place. The processes of inspection are that of quality which ensure that the processes are being monitored to correct any error as it occurs. Quality control standards are set and licenses are given to the inspectors who inspect the activities to ensure that they are being carried out efficiently. The inspector would not only identify the errors and correct them but will also identify the broader issues with the files, programs and documents being used. Quality control inspections can be unannounced and can be done by the owners or the licensed inspectors. This is so that the business can deal with the errors in accordance to the business quality control processes as well as the general standards set by the local government. The quality assurance processes are to prevent the errors and mistakes form happening during the processes and quality control processes ensure that the errors are identified and corrected. The quality management department in every business should work to manage the assurance and control on the activities. Quality control managers and inspectors are hired who keep records and prepare graphs to keep a check on the quality management over the time (Steyn, 2008, p. 336). Approaches to quality management: The approaches to quality management can include systems that are formal and informal. Formal systems include ISO9001 which is the quality management system that has to be followed by every business despite the size or type. It specifies that the business must produce and provide the products that fulfill the customer’s needs and expectations under the statutory regulations and that the business should aim to satisfy the customer to the most with continuous improvements. ISO14001 specifies that an organization must have an effective environmental management system which reduces waste, saves energy and materials and lowers the distribution costs. The BEM system ensures that the organization is achieving and sustaining good levels of performance. The model lets the business managers understand the causes and effects of the activities of the organization and the result which is achieved. PQASSO is the Practical Quality Assurance System for Small Organizations which evaluates their performance through various management indicators. The IIP standard enhances the business’s performance through its staff members. The objectives and activities of the business are managed through the employees. There are certain indicators and principles that the organization must follow to develop its workforce. A commitment needs to be made with all the employees including senior managers. These are the formal methods applied to businesses for quality management (Mitra, 2012, p. 16). There are certain informal methods too which mostly deal with the internal policies of the business. Self-assessment is a way to assess the activities and policies to identify where the business is going wrong in following its own plans and policies. The employees must carry out self-assessment tools to assess their own performances and judge where the mistakes are being committed. The Total Quality Management is a method which ensures that continuous growth is taking place in the business activities and errors are being corrected. The process eliminates the errors and improves the customer experience through improving the performance of the employees. This method focuses on all the parties that are involved in the production process and affect the quality of the overall performance (Nigam, 2005, p. 65). Similarities and differences between the methods: These methods include formal and informal methods. The formal methods are those which are set by the quality management standards and systems and have to be followed under law by every business despite its size or type. The informal methods are those which are set by the business for their own staff and activities. The IIP focuses on the people of the organization while the ISO14001 focuses on the environment management. The self-assessment methods focus on the performance of the employees’ own performances while the PQASSO is a system for the small organizations. These models and systems are specified for specific controls and activities and differ from one another in application. They target different aspects to focus on the quality management of the products, activities and customer satisfaction. The similarity in all these methods is that they have been set out to improve the quality management and enhance the quality control methods in the business. By focusing on different stakeholders and activities, the methods ensure that the quality is controlled and improved. The formal methods and systems are those that are mandatory for the businesses to follow no matter what their activity type is. The informal methods can be designed and built by the businesses according to their own convenience. They can choose their methods and apply them where necessary. The combination of all the standards and methods would collectively result in improvement in quality management and control. Section 2 What is customer satisfaction? Customer satisfaction is known as the level of satisfaction that is met by the company by providing its customers with the products and services that are demanded by them. Customer satisfaction is measured by taking a number of customers and their experiences about the products and services that they have recieved. This is measured and the percentage represents the customer satisfaction of the company. For many businesses, the definition of customer satisfaction may differ. This is because every business has a different nature, corporate culture and sense about its customers and their demands or expectations (Albert, 2002, p. 36). For a majority of businesses, customer satisfaction is the key aspect for their marketing. This is because they believe customer satisfaction is the most important factor because of which they experience increased sales and profits. Businesses usually set up satisfaction goals to fulfil the demands and expecations of their customers. When the measurement of the customer satisfaction exceed the planned goals, the business gains customer satisfaction. This means that the customers want to buy the product again and again as they feel satisfied with its performance and features. Customer satisfaction, in another perspective, means that the customers have recieved the set of standards that they had expected from the product. The business prepares its products in a way that it fulfils the customer’s expecations and demands. However, some businesses adopt a different strategy in which they create high quality products that are beyond the expectations of the customers, and hence the customers become fully satisfied. Customer satisfaction can also be the understanding that the business has with its customers. This makes the customers satisfied with the products that the business produces because of the brand loyalty and customer relationship. The business may not be fulfilling the exact demands of the customer through their product but through other aspects (Sureshchandar, 2002, p. 16). What is continuous improvement? Continuous improvement is a process which ensures that improvements are made in the organization. These improvements will be ongoing and will focus on several different aspects such as production techniques, quality management, motivated workforce, increased customer satisfaction etc. These processes are carried out over time but they have a single aim and that is to improve the organization. Continuous improvement helps the organization to manage its goals and activities according to the current trends. Trends in the business industry change frequently which is why it is important for the organizations to focus on continuous improvement plans and procedures. The continuous improvement processes are not constant, they change according to their efficiency, sustainability and effectiveness. This process is often known as the management process. The processes are not to be carried out by the managers alone but they are designed for all the members of the organization. Continuous improvement processes can also be those processes that include individual improvement. The process can simply be the positive attitude of the management, workforce and the customers towards the business showing a healthy and profitable environment. The ways this attitude will be implied to the members will be a continuous improvement process (Jones, 2008, p. 64). Continuous improvement is represented by the Japanese philosophy of Kaizen. Kaizen refers to a type of change which takes place in an organization for its betterment. It explains the change which is a gradual process and which improves the productivity and boosts all other activities taking place in the organization. Kaizen focuses on many ideas and processes. These ideas are creating an effective atmosphere for the whole team encouraging team work, taking everyday decisions as important for the overall improvement, ensuring customer and employee satisfaction. Other objectives include eliminating waste, management of quality, efficient use of resources and standardized work. Any organization that wants continuous improvement must fulfil its objectives and policies without limiting them to quality or any other single factor. Improving business strategies, results, stakeholder relationships also result in continuous improvement. Type of added values to be gained: There are many benefits to the business when it applies a positive approach to the management of quality. When a business plans to set up quality management systems, it has to invest a lot of money to add value to its products and services. These costs, however, overweigh the long term benefits that quality management causes to the business. Quality management has many internal and external benefits that the business experiences. The business can save its finances when it has an efficient staff with higher productivity rates. Some of the benefits may be hard to calculate but they add value to the business like employee motivation and improved team work. These aspects benefit the business through a strong panel of workers who build their experience and cause the business to save the employee turnover and recruitment costs (Rose, 2005, p. 55). Quality management is also beneficial in the sales and profits of the business. The quality of the products and services add up to the business performance against its competitors. The quality management gives the business a competitive edge over its rivals. This creates high levels of customer satisfaction as the customer relationship is improved. When the business is able to satisfy its customers, it can easily gain a good image and position in the market. This will attract the customers and they will want to purchase more goods and services thus increasing sales and profits. From the financial perspective, the business will have lower cost of production as it will have efficient and productive workforce. Thus the business can lower the prices of the products making them reasonable for the customers which will increase the sales. High quality products will gain the customer satisfaction who will recommend the products to others with a positive experience. Mismanagement of quality may lead to disappointed customers sharing their negative experience with others. Information about quality given to the customers and why it is important: When a business deals with its customers it is important to give them the adequate information about the products and services. Customers are the most important stakeholders for the business and it is essential for the business to develop good relations with them. Thus, the business should be honest and modest towards the customers by giving them the true information about the product. When it is about the quality management of the business, sharing the high quality aspects of the product with the customers may result in effective marketing. When the business lays down the quality standards of the products, it invites the customers and attracts them towards buying it. However, this information should be true and no exaggerations should be made (Hoyle, 2007, p. 154). Customers for every business can be different for example for a hospital its customer is the patient. Giving the patients information about the medicines and treatments that they are utilizing is important to avoid risks. Medical industry is one where high risks are involved. No matter what kind of quality equipments are being used, it is important to tell the patient and his relatives what he is going through and what can be consequences. The business should ensure its high quality services and total dedication towards the treatment but inspite of that the risks and consequences should be told to the patient. For other types of customers such as in retail businesses, the customers should be verbally told about the high quality of the product. Some businesses also print it down in bold and big letters on the pack about the high quality materials or ingredients used in the manufacturing (Kumar, 2006, p. 102). This is important for the business as it helps the business to market its strong points to the customers so that they are attracted by the product. Also, every customer has the legal right to know what they are using and how effective it is for them. This can keep the business away from all sorts of risks and help it spread its high quality products. Section 3 How quality management can be measured: There are many methods used for measuring quality but the most efficient one is the statistical process control as it uses statistical data and analyzes it to control and monitor the quality management in a business. This method allows the business to monitor and control the quality management which is essential to ensure that it is operating with full potential. When the quality management is operating at its full potential, it can produce high quality products with lessened waste. The statistical process control is applied to the business using some key tools that are to create control charts, continuous improvement processes and experiments. Statistical process control monitors the processes during their operations so that the quality is checked and controlled when the products are being produced rather than when they have been produced. Monitoring at an early stage helps the business to improve and control the quality before the product has been completed thus saving time and resources. The statistican process control can help the business with its quality management in some areas which are the product quality, reduction of scrap and rework, increase of manufacturing yield and customer satisfaction (Oakland, 2012, p. 59). Improving product quality can be done by reducing the variations in the process output. This means that the need for variation should be identified at an early stage using the statistical process control method. Before the product is manufactured, the problems, results and impact should be identified and rectified to fulfil quality goals. There is a lot of cost that is spent on the scrap and rework processes. Labor, materials and other resources are used up in the handling and managing of these scraps which cause unexpected costs to the organization. Using statistical process control, the business can take action and correct the processes before the scrap is generated. With lesser scrap, the manufacturing yield can be increased and a productive workforce can be achieved. Higher quality products and efficient performance can lead to higher customer satisfaction levels. Statistical process control helps in satisfying the customers through product improvement (Stapenhurst, 2013, p. 164). Benefits of user and non-user surveys: User surveys are different from market surveys as they assess the population that uses the product or service. The actual users of the products are analyzed as they can give their actual experience about using the product. These experiences might greatly differ from the other market surveys. User surveys have many benefits but they are effective only when they are carried out in a professional manner. User surveys can be very effective and useful for the business in many aspects while it can at times be a total waste of time. Thus, the business must ensure that these surveys are carried out professionally and are pretested. The surveys should be designed by experienced managers and should aim to be beneficial and effective. There are two types of user surveys: client surveys and beneficiary surveys. Client surveys are the ones which involve respondents who are actively involved in the organization. Beneficiary surveys are those in which the respondents are chosen through a sample to represent the total users of the product. User surveys provide the businesses an opportunity to gather the views of those people who use their products rather than large samples of general people. Businesses consider these user surveys as they discover information that helps them to improve their products and services according to the user’s demands and expectations. This information also helps the business to get aid in their forecasts and justify their products and jobs (Haraldsen, 2013, p. 283). Businesses may also customize their products for their users. The users would also be able to convey the current market trends to the business which can be helpful in marketing strategies and the four ‘p’s of marketing. User habits and preferences can also be identified enabling the business to become more customer loyal and increase their satisfaction. Furthermore, the information gained can be used to advertise, sell other products and services related or to improve the brand image. User surveys are highly beneficial and effective for future marketing strategies. Methods of consultation employed in one quality scheme to encourage participation by under-represented groups: As customer satisfaction is the biggest key factor in the businesses which ensure strategic growth as well as increased profits, it is important to analyze the methods of consultation and representation of the under-represented groups. In businesses, quality circles are those groups that are formed by workers for specific purposes. These purposes might be the participation in decision making, solving problems and sharing knowledge through giving ideas. Under-represented groups can be included in these groups by motivating them through incentives, appreciation and other techniques to make them feel important for the organization. However, methods of consultation in customers’ perspective is a different factor. When it is about knowing what the customer wants and expects from the business products, it is essential to include the under-represented groups. This can be done through conducting special surveys which include all the customers who buy the product. The business can carry out a questionnaire session in the biggest stores of the city, or even in some small stores in small towns. Every customer that comes to buy the product should be questioned. This would include a variety of people who come to buy the product. This can be the method for those customers who belong to a lower society or middle class neighborhood. Other under-represented groups may include gender, age, ethnic minorities or those who have language problems. Participation from these groups can be encouraged by using different languages on advertisements or feedback forms. This would eliminate the language problem that most people may have. Other ways are to start campaigns such as ‘everyone is equal’ or ‘every opinion matters’. These campaigns might motivate the under-represented groups to come forward and participate. Value of complaints procedures and how they are used: A business should have a great understanding of the customers’ complaints. This is the most important part of customer satisfaction. Only the product can never satisfy the customer, the business needs to build up a relationship of loyalty with the customer. This relationship is valued and treasured by the customer as they feel important and valued thus increasing their satisfaction level. There are many ways in which businesses deal with complaints. But first it is important to evaluate the complaints procedure that is given to the customers. Different businesses may have different procedures that the customers have to follow. Some of the traditional and common procedures are writing a letter to the company or visiting their customer care offices. The customer has to file their complaint and within a given time period such as 5 days or one week the company responds to the complaint and resolves it. The business which is successful in responding to the complaints of their customers usually builds customer loyalty and brand image while the ones that do not, leave a negative impact on their customer. There are many modern and more creative ways of filing complaints now. The organization that I work for uses modern methods to deal with customer complaints. These methods include social media such as networking websites, direct phone calls which allow automated complaints to be registered, complaint boxes that are available on many retail outlets and customer care centers opened in every small town and city. These methods enable the customers to file their complaints easily and they are given a registration code. This code is later used when the company contacts the customer back after resolving their complaint. The operators satisfy the customers to the fullest and build a positive relationship with them. Section 4 Role of self-assessment to determine the current state of health: Similar to an individual who needs to apply self-assessment in various stages of his life, a businesses shall also determine its state of health by several self-assessment methods. The role of self-assessment is essential in the business as it allows the business to systematically check its procedures, activities and outcomes according to the standards set. When a business assesses its own activities, it is able to ammend them and improve them as per the expectations of customers and strategies. The business would also be aware of the resources that it has and the productive force that is behind the processes. Thus, the self-assessment allows the business to alter the activities in regard of what is best for the business. The organization that I am working with is a multinational firm which produces homely items such as shampoos, soaps, shoe polishes, toothpaste etc. The organization’s quality management team has a check list which is assessed after every process. The check list consists of several questions and considerations that answer in yes or no. These questions do not take much time as they have short answers and at the same time are immensely effective as they carry out the self-assessment task. The check list is evaluated through computer programs and a percentage is given representing the quality level of the product. Every product is assessed to have a quality level of 100%, as there is no compromise on quality. The quality standards and values are already given to the computer according to which it judges the quality level (Porter, 2012, p. 9. Importance of communication and record keeping: Communication is the key to every problem in a business. It is immensely important as it helps to communicate, understand and evaluate the expectations and demands of the clients increasing customer satisfaction and loyalty. Effective business communication shows that there is professionalism in the business. It is important that all the members of the business are communicating effectively to convey messages to suppliers, vendors, customers and also internal members of the organization. Good communication can also boost the sales and profits of the company. Communication deals with exchanging information constantly which contributes in business expansion and growth. The marketing department needs proper communication with the customers as well as with the business managers to plan advertisements, marketing strategies and business policies. The organization can be severely affected if the communication is ineffective. Basic functions of the organization such as managing people and carrying out procedures can be affected when communication is inefficient. Oral and written both forms of communication should be effective and structured properly in a business (Means, 2009, p. 97). Record keeping is essential in a business as it helps at the time of research. Old records can help the business to keep a track of its taxes, expenses and other financial statements. Records can also be used to set forecasts and monitor the current position of the business. Record keeping may also be helpful for finding business solutions or recovering from losses by evaluating previous situations. The business can examine its position in the market, its growth and its performance against the competitors. Guidelines on the stages of staff consultation necessary for effective implementation of a quality scheme: It is essential to ensure that the staff members are motivated and involved in the important decision making processes of the business. Quality management is one of those areas where the participation and consultation of all members is essentially required. When the staff consultation is taken and appreciated, the quality schemes are applied successfully. However, when a new quality scheme is applied, the staff consultation and performance must be considered. When the experts plan a change, it should first be discussed with the staff members giving them a clear overview of what the causes, effects and consequences of this scheme would be along with their roles and responsibilities regarding that. The ideas and views of the staff members should also be taken and they should be motivated towards better quality schemes and their importance. Once the experts are sure that the staff members can handle the change or improvements, only then they should be applied. If the staff members have not accepted or understood the change, it can result in bad performances thus affecting the business performance too. Some staff members may also need training for the new schemes which may require time and money. Once the scheme is implemented, the experts can check and monitor the staff performances to ensure that the new quality scheme is not disrupting the staff performance. Thus the guidelines to implement a new quality scheme is to plan, then apply it in practical, then monitor the staff performance and how the business is responding to the scheme and then repeat the steps again. If the scheme is successful the steps should be repeated for a new scheme while if it is unsuccessful, another scheme which alters the current one should be planned and executed (Rose, 2005, p. 13). New systems or modifications to existing systems that could improve service quality: The organization that I am currently working for carries out many systems and techniques to improve the quality of their products. The organizaition focuses on the team work and thus has created teams with leaders and goals according to which they work. The organization also has a quality management department that carries out checks and balances to monitor the quality management of the teams. Other than that, the organization uses the statistical process control through which the products are ammended and improved during the process of production. The quality management department identifies mistakes and corrects them as soon as possible. The members of the organization are also able to participate in the quality control method by improving and assessing their own work. They can participate in giving ideas about the quality management and control. Some of the processes recommended to the organization to ensure quality management is to make use of the user surveys. These surveys would help the business to manufacture according to the demands and expectations of the customers. In this case the customers are companies and retail stores that buy products for their stores. The organization should create good relationships with these customers by providing them discounts, incentives, signing contracts or making offers for them. Other ways can be to motivate the employees by making their job interesting through rewards and bonuses. Quality circles can be created which enable the employees to share and present their ideas for high quality improvement. Conclusion This paper gives an insight to the meaning and understanding of quality, continuous improvement and customer satisfaction. It is important to understand that the quality management of the business is directly related to the customer satisfaction levels, employee performance levels and business growth rate. A business is said to be on the path of success when it carries out continuous improvement and satisfies its customers. Thus, a business should maintain its quality standards and should ensure effective communication amongst all members to gain a good growth and expansion rate. Quality management in a business, however, plays the most important role in establishing and developing policies and standards. References Albert C. 2002. Service Loyalty: The effects of service quality and the mediating role of customer satisfaction. NY: Emerald Black K. 2011. Business Statistics: For Contemporary Decision Making. USA: John Wiley & Sons Haraldsen G. 2013. Designing and Conducting Business Surveys. USA: John Wiley & Sons Hoyle D. 2007. Quality Management Essentials. UK: Routledge Jones R. 2008. 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