Understanding quality management - Coursework Example

UNDERSTANDING QUALITY MANAGEMENT By: Presented of Submission] ‘Understanding Quality Management’ Robert Gately states, “People expect good service, but few are willing to give it” (American Psychological Association, 2011). It seems that Gately is talking about service dependant organisations only, but the statement also reflects on other organisations. Everyone expects brilliant services/products to be provided to them. What happens to the ones who are responsible for providing them?

The workforce of an organisation is arguably the most important resource. Employers at Porsche acknowledge that employees are the most essential potential behind the success of any company (Porsche AG - Dr.Ing. h.c. F. Porsche AG, 2015).When such a resource is at your disposal, giving its due regard is vital for efficient functioning. This is where the concept of quality workplace is born. Understanding the importance of quality management within the workplace Internal and external customers People who are not part of the organisation and use products/services are known as external customers.

Internal customers are members of the organisation who, in order to complete their tasks, rely on other members. Both are of importance. External customers run revenues and their satisfaction results in repeated purchases. Internal customers, however, are the key behind the contentment of external customers. For example, a salesman is responsible for sales whilst maintaining a healthy relationship with customers. If he fails, the customer is lost. This means, keeping the internal customers satisfied will lead to happy external customers (Joseph, 2015).

Providing agreeable services to employees is crucial. In firms like Porsche where along with manufacturing of high quality cars, customer service is a part of the business. The quality of the product as well as services is essential. To achieve this, a suitable workplace climate must be provided as it motivates employees to work efficiently. The quality delivered to customers is a reflection of what employees have received in turn from their workplace (American Psychological Association, 2011).

The importance of satisfied employees is due to the following: Delivery of quality products/services is assisted by improved relationships between internal and external customers. Motivated workers will waste less, reduce lead-times and increase quality. Cars at Porsche need to be manufactured with perfection and this requires care and timely production. Inefficiencies and wastages could lead to high costs. Motivated employees will result in better communication and happy external customers.

The quality of customer care at Porsche is a competitive advantage for the firm’s retail sector. Happy customers and higher quality products bring more sales. Overall profitability and growth in shareholder wealth results. (Swinton, 2009) Total Quality Management (TQM) Based on lean management, TQM is a quality system. Its purpose is to aid management in achieving the best. According to Dr. Shiba (Process-improvement-japan.com, 2015), TQM focuses on: Customers Instead of limiting quality to products/services, focus should be on transforming the company to provide comfort to workers.

This would lead to higher satisfaction of customers. Continuous improvement The Kaizen approach: employees with high morale, influenced by corporate culture, leading the company to prosperity. Total participation Employees striving to accomplish goals by participating in activities from the management, keeping in mind the strategy to improve workplace quality by influencing and encouraging workers to utilise their talents. Design and Process quality standards In order to secure its future, a business’ quality control system sets the foundations of customer satisfaction through design and process standards.

Design quality standards are the minimum needs for a product to sell. If specifications are missing, the product must be discarded or rectified prior to sale according to the International Organisation for Standardisation. Process Quality Standards deal with the procedure of making products or providing services to not lack design quality (Gosset, 2015).For instance, at Porsche there are strict guidelines for production and after-sale services that every department must comply with. These are process standards, which lead to achievement of design standards(Porsche Exclusive &Tequipment-Personalisation, 2009).

Cost of quality at the workplace Attracting new customers and employees is more expensive than retaining old ones. If customers are lost due to poor relationship with employees, they won’t return and future sales will be lost. Marketing might be needed to attract new buyers as well as employees. Unsatisfied employees resign or perform inefficiently. Dealing with resignation is directly proportional to dealing with high hiring costs and in the end, probably not being content with the replacement.

Inefficient performances lead to wastages/ruined relationships and financial loss for the company (Swinton, 2009). Wellness at the workplace is deemed important at Porsche as it saves their medical costs and results in higher productivity and positive surroundings (Porsche Home - Porsche Cars Great Britain Ltd., 2015). Understanding how quality is delivered within the workplace Quality system used at the workplace Porsche suggests that the key to improving quality of products is to handle jobs comprehensively.

A ‘tool box’ has been created by Porsche Consulting as a new strategy. Meeting increased demands and quality of complex products is a challenge. Quality organisation plays an important role. Porsche Consulting has been developing structures for Porsche that standardises quality management. This ensures responsibility and accountability to the Corporate Quality department (Scheffels and Prosch, 2014).To adapt quality management structures, planning as well as prevention is essential. In an interview, Oliver Blume from Porsche says that the company uses just-in-time and just-in-sequence and it is important that the production system is oriented in lean production style (Brooks, 2014).

Quality standards set for the workplace Wolfgang Leimgruber, Porsche AG Board of Management Member for Production and Logistics, says, “The degree of transparency of our customised lean production processes is one of the primary guarantors of our sporty vehicles’ extraordinary product quality.”(Scheffels and Prosch, 2014). Dr. Stefan Knirsch, Director of the Corporate Quality department, knits the company with uniformity of standards. He also believes that Porsche tailors cars to ‘extreme climatic differences in more than 110 markets around the world.

That too is quality’ (HOME: Porsche sets new quality standards - Dr.Ing. h.c. F. Porsche AG, 2015). Complete transparency is an essential standard in Porsche’s work. They break down a problem into pieces for easier examination and work in teams. Tools used to monitor quality at the workplace Outlining standards to adhere to isn’t sufficient. Quality must be monitored. The J.D Power market research institute, by Initial Quality Study, asks buyers their level of satisfaction after 90 days of purchase (Scheffels and Prosch, 2014).

Porsche conducts test drives on race tracks to ensure perfect running of the car. These test drives are carried out by professional engineers. Tests such as driving cars at high speed through tunnels to ensure stability are performed. Environmental audits are carried out to ensure all workshops are clean. “Porsche Improvement Program, a program designed to measure quality and efficiency and eliminate waste,” was created by Wiedeking, CEO (Cavqm, 2013). Records for maintaining quality at the workplace Numerous activities are translated to systems.

For efficient operations, a record should be maintained to keep track. They should include: verbal, written or graphical instructions, health and safety rules, regulatory requirements, quality assurance standards, signage and manufacturers’ specifications (Regional Australian Workforce Development, n.d.). These records will help ensure that all standards and policies are adhered to. In case of failure, management can use these against violators. Practical and positive steps to improve quality within the workplace A company’s commitment to quality will be seen and put to affect by workers if it comes from the top, argues W.

Edwards Deming (Inc.com, 2010). If it cannot be felt in the culture, quality will slip. Being a German company, Porsche has qualities Germans are known for; target-oriented, obedient, disciplined, professional and principled (Kilhefner, n.d.).Porsche implements the following steps to improve quality: Structural value. All rules are complied with and agreements are honoured. Dominant issue is the task. Precise time-planning. (Sylvia Schroll-Machl, 2014) Quality tracking. ISO’s benchmarks and other standards are monitored.

Porsche believes to invest in training to avoid future costs due to incompetence. (Inc.com, 2010) Error management. FMEA (analysis of probability and effects of errors): method to identify potential weaknesses. (Porscheengineering.com, 2015) Conclusion The workforce of an organisation is the most important resource for any organisation. Keeping them satisfied is the key behind success as technically, the business lies in their hands. Providing a suitable work climate should be the priority if customer satisfaction and quality of products/services is of primary important in the organisation.

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