Quality Management and Communication Management - Essay Example

Management of the of the Contents Contents 2 8.0 Quality Management 3 8 Methodology 3 8.2 Processes, procedures, and measurements 4 9.0 Communication Management 6 9.1 Methodology 6 9.2 Processes and Plan 8 References 11 8.0 Quality Management 8.1 Methodology Quality management is one of the most important aspects for any company in order to retain competitiveness in the market. Quality management comprises three main parameters, which are quality control, quality assurance and quality improvement (Das, 2009). It has already been established that Azariah works on traditional management, which is encountering certain problems like, that of accounting, inventory control and staff management. Total Quality Management (TQM) practices can be introduced to improve efficiency of production for the firm. Lean must be incorporated in the manufacturing process for better control of production process. The overall effectiveness of lean manufacturing process can be presented in the following diagram. Figure 1: Schematic representation of Lean Production (Source: Pyzdek, 2000) The lean production process has the capability of reducing waste in the production process and improves value added of the products. This process reduces cost of overproduction, facilitates effective management of inventory, minimizes wastage of time and defects and lowers processing time (ISO, 2012). In order to improve performance of the staff, it is very important to involve employees in the decision making process. Empowerment of people within the organization helps in better understanding of their roles. This in turn is helpful in motivating employees and increasing their commitment towards work. Better coordination between people enhances attitude of ownership among the employees and they are able to set their own goals and objectives. Involvement of employees is expected to solve the current set of problem faced by employees. Finally, it has been observed that most of the attempts made by a company for improving its quality management are likely to be unsuccessful if the management accountant is unable to take appropriate leadership responsibilities, when TQM is implemented (Cockrell, 2000). The accountant managers are expected to have a thorough knowledge about cost accounting techniques as well as operations of the company. A number of specialized approaches need to be adopted by managers to accomplish the goal of effective implementation of TQM. 8.2 Processes, procedures, and measurements In order to implement quality management effectively, the following process should be adopted. Figure 2: Steps of implementation (Source: Soković, Pavletić & Krulčić, 2006) Currently, the production system is facing difficulties because inventory management of the company is proving to be costly. In order to solve this issue, lean production techniques are to be implemented. The primary goal is to reduce the cost of assembly division and welding division. The aim is also to lower the cost by 20% and minimize defects in the manufacturing process within end of the year by 7%. It has been analyzed that labor cost of the company is the one, which needs to be curtailed. The current scenario in the company requires reducing cycle time and control time. This can be done by implementing proper training for the employees involved in these tasks. Once these time periods are reduced, then it can be expected that inventory management process of the company will improve and the operating costs will fall. In order to successfully implement the process of quality management, proper training and educational programs must be developed for employees. This can be done with the help of following procedures (Matlhape & Lessing, 2001): Quality improvement teams to improve overall level of workforce quality. Employee education programs specifically targeted to help employees in reducing the product handling time and cycle time. Goal setting and quality management teams to assist in assessment of the employees in long run. Any procedure that is adapted by Azariah will not be fruitful if the outcomes are not specifically measured. In order to measure the outcomes, monitoring will play an important role. The goals set by the company will not be achieved if proper measurement standards are not set by the company. Measurement of quality improvement and management can be done with the help of certain variables like, company revenue, key performance indicators for employees as well as the organization and reduction of error rates. In order to make sure that results are being reached by the company, performance must be monitored on a regular basis so as to note deviations from the set process. Monitoring at an interval of two months will present a clear idea whether the results are being achieved or not. A deviation of 10% from the set objective is acceptable; in current case, this implies cost reduction of assembling and welding departments, lowering of cycle time and process time of labor and minimization of the production of defective parts. However, a deviation of more than 50% from the set objective indicates that TQM system adopted by the company is not working effectively and needs to be rectified. 9.0 Communication Management 9.1 Methodology The existing literature points out that establishing good relationship with the stakeholders is one of the most important attributes, which provide businesses with competitive advantage. The first step of developing a good relationship with suppliers involves identifying appropriate suppliers in the first place (Jay, 2012). In case of Azariah, it can be stated that stakeholders are divided into five broad groups, namely customers, suppliers, investors, employees and the government. Establishing effective communication with the stakeholders by listening to them in a phased manner is crucial for building reputation and trust for the company. The list of stakeholders and the communication requirements are explained below: Employees and Shareholders: Employees comprise a major portion of shareholders in the company. Employees should be able to fully comprehend management practices of the top management as transparency is valued in employer-employee relationship. Involving employees in important decisions of the management is the key to improve relationship. Customers: Customers are the most important assets for any organization and satisfying them is necessary for progression of Azariah. In order to ensure fair dealing with customers, they should be notified with all the information regarding transactions conducted. Vehicle recalls and other issues relating to customer satisfaction must be highlighted by the company. This information can be published in company annual reports in order to make customers aware of any such discrepancies. Investors: Investors are key individuals of the company that are responsible for financial health of the organization. Investors must have a vivid idea regarding financial health of the company and transparency that is involved in the operational process. In order to accomplish this aim, Azariah must provide all information relating to its financial and sustainable health. Suppliers and dealers: Suppliers and dealers play an important role in developing overall competitiveness of the business. Suppliers provide certain key parts required in manufacturing of the final product. Even so, it must be notified to suppliers that the company has a strict policy regarding its quality management. Similarly, dealers should also be aware of the environmental risk audit programs to help Azariah meet its goals of sustainability. The government: The government regulations regarding taxes and environmental concerns are pivotal for determining overall profitability of the automobile business. Setting regulations regarding issues of human right and green practices in the supply chain are also imperative for the government. Regular meetings with the government are crucial for establishing a healthy relationship and anticipating polices to be adopted. In order to develop an effective communication with individual stakeholders, it is necessary to engage them. The following table shows the process of engagement of the various stakeholders. 9.2 Processes and Plan Stakeholders Engagement Employees This can be done by conducting employee management programs aimed at reduction of waste in production process and reduction of cycle time. Investors Communicating with investors in a timely manner and notifying them about the sustainable practices. Supplier and Dealers Informing the suppliers and dealers regarding sustainable practices followed by the company. Supplier and dealers support programs can be adopted to improve the relationships. Government Regular meeting with the government to inform about practices adopted by Azarih for anticipating both favorable and unfavorable policies of the government. Customers Practices like, voice of customers and customer clinic, in order to understand customers’ expectations. Additionally, sustainability report can also become a sound medium to interact with customers. The communication matrix for Azariah can be explained below: Stakeholder Objective Communication Communication Frequency Investors To inform about financial health of the company, broad goals that are set and resolve issues raised by investors. Meeting with investors or road shows that are organized. Annual General Meetings, quarterly meet and as per requirement. Government To access the industry constraints and build relationship. Industry forum meetings arranged for the whole industry and one-to-one meetings. Based on requirements Dealers and Suppliers To build capacity and improve the system of delivery as both of these are determinants of customer satisfaction. Analysis of data of competitors and kaizen events and training programs. Daily, quarterly or as per requirement. Employees In order to seek employees’ feedback regarding critical management decisions. Communication to understand problems of customers. Regular meetings and horizontal flow of information among the employees. Regular, weekly and annual. Customers Suggestions on product development and obtaining feedback from customers on certain issues. Survey and feedback calls. One-to-one meets. Based on the requirement. Escalation may arise due to issues like, inter-group conflicts, disagreement in scope of project and ambiguous role and responsibility of the employees. It is the duty of project manager of Azariah to escalate the issues if there is blockage in smooth development of the project. Following are the ways that can deal with the issue of escalation in an effective manner: Clearly defining the escalation matrix with escalation paths, areas of escalation and levels of escalation. This will help the manager to note any deviation from expected line of work and act accordingly; in this case, the time management in production and recording percentage of defects. Involving stakeholders in the escalation process. This requires stakeholders to know about the escalation contact points and defining the time frame for each such issue to be resolved. Perfect targeting of stakeholders according to issues that are raised. This implies avoiding all stakeholders in the process. All the issues and escalation should be properly documented in order to prioritize the action that is required in the process. Use of data points can be treated as a good practice in this regard. Finally, if the initial escalation fails, then a higher level of escalation must be considered. This process increases effectiveness in resolution of the issue and facilitates solution. In case the project manager is unable to receive any credible action from the senior management, a meeting with senior management is suggested (Rosenau & Githens, 2011). References Cockrell, S. R. (2000). The role of the management accountant in TQM. Austin Peay State University. Retrieved from http://www.apsu.edu/sites/apsu.edu/files/business/The_Role_of_the_Management_Accountant_in_Total_Quality_Management_-_Cockrell__D__Meyer.pdf. Das, B. (2009). Business communication. New Delhi: PHI Learning Pvt. Ltd. ISO. (2012). Quality management principles. ISO. Retrieved from http://www.iso.org/iso/qmp_2012.pdf. Jay, J. K., 2012. Communicate well: Five strategies to enhance your managerial communication skills. Retrieved from http://careers.pda.org/2012/08/communicate-well-five-strategies-to-enhance-your-managerial-communication-skills/. Matlhape, M. G. & Lessing, N. (2001). Employees in Total Quality Management. Retrieved from http://www.tatamotors.com/sustainability/CSR-11/pdf/defining-priorities.pdf. Pyzdek, T. (2000). Six Sigma and Lean Production. Quality Digest. Retrieved from http://www.sixsigmatraining.org/PDF/2000-01.pdf. Rosenau, M. D. & Githens, G. D. (2011). Successful project management: a step-by-step approach with practical examples. New York: Wiley. Soković, M., Pavletić, D. & Krulčić, E. (2006). Six Sigma process improvements in automotive parts production. Jamme. Retrieved from http://www.journalamme.org/papers_vol19_1/1836.pdf. Read More