Management: Six Sigma Deployment - Report Example

Quality Management Name Institution Date Table of Contents Table of Contents 2 QUALITY MANAGEMENT 17 2 Introduction 3 Part A 3 The Malcolm Baldrige National Quality Award 3 The Deming Prize 4 European Quality Award 5 Australian business excellence award 6 Part B 10 DEWA’s (Dubai electricity and water authority) ISO standard 10 Why DEWA uses ISO as a quality standard 11 Implementation of ISO standard 11 Part C 12 Six Sigma 12 Implementation of Six Sigma in DEWA 13 Conclusion 15 References 16 Introduction Quality management refers to an organization’s wide approach to precisely understanding what consumers need and consistently delivering precise solutions on time, within budget and with minimal loss to the society. Quality managements ensures efficient design of processes that validate needs of customers, plan product design and life cycle, produce and deliver the service or product. It integrates measurement of process elements, analysis of performance and continual improvement of services, products and procedures that deliver them to customers. Quality management is focused upon the quality of service or product and also the means to attain it. Quality management thus utilizes control of processes and products and quality assurance to attain a highly consistent quality. Organizations in the process of implementing a quality scheme usually require a standard against which progress is measured. Prestigious awards and prizes have be designed in several nations acknowledge as quality world leaders. The awards enhance quality companies to be identified and more significantly offer corporations with a standard to gauge the way they are progressing towards world class. These prizes and awards include the Japanese Deming prize, the American Malcolm Baldrige award, the European quality award, Canadian awards for business excellence and the Australian business excellence award. Part A The Malcolm Baldrige National Quality Award The Malcolm Baldrige National Quality Award (MBNQA) was established by the Congress to promote quality awareness, to recognize business and quality achievement of the United States corporations, and to publicize the successful performance strategies of these organizations. The six categories of eligibility are service businesses, small businesses, manufacturing businesses, health care organizations, education organizations and non-profit organizations. Now regarded America’s greatest honor for excellence, Baldrige Award is presented yearly to United States organizations by the US president. In conjunction with private sector, the national institute of standards and technology established and manages the Baldrige Award and Baldrige national quality program (Link & Scott, 2001). To apply for the Baldrige award, organizations are required to submit details demonstrating their improvements and achievements in seven major areas: strategic planning, leadership, market and customer focus, process management, human resource focus, measurement analysis and knowledge management and organizational and business performance results. Cherkasky, (2010) notes that since the initial awards were given in 1988, Baldrige national quality program has grown in impact and stature. Nowadays, the program, award’s criterion for performance excellence and Baldrige award recipients are admired and imitated worldwide. MBNQA helps organizations to attain sustainable outcomes in modern day challenging environment, assists corporations to think strategically, and helps organizations to align people, resources, processes and consumer’s needs. The Deming Prize The Deming prize was launched in December 1950 and was initially designed to reward Japanese organizations for key advances in quality improvement. Categories of Deming Prize are the Deming application prize, Deming prize for individuals and quality control award for operations of business units. The Deming prize, especially the Deming application prize that is offered to companies has exerted an immense influence indirectly or directly on development of quality management and quality control in Japan. Through Deming prize, applicant organizations and divisions of organizations have so have sought after novel models to quality management that meets the requirements of their business environment. Because its original aim was to encourage development of activities of quality control in Japan, Deming prize was initially restricted to Japanese organizations but in recent years, strong interest in Deming application prize by companies outside Japan has emerged (Business Standard, 1998). European Quality Award The European Quality Award, now known as EFQM Excellence Award was established by European foundation for quality management (EFQM). According to Issac and Davies (2002) the prize recognizes companies with sustainable and excellent results across every area of EFQM excellence model. The EFQM excellence model was launched as the key framework for both evaluating performance and improving companies so that they could attain a sustainable advantage. The objective of EFQM excellence award is to identify Europe’s best performing companies, whether public, private or non- profit. Hendricks and Singhal, (1996) state that in order to win this award, applicants should be capable of demonstrating that their performance surpasses that of their peers and also demonstrate that will sustain this advantage into the future. Prize winners are companies which display role model conduct in one of the following eight criteria: Managing processes, leading with integrity, vision and inspiration, adding value for consumers, succeeding through people, building partnerships, nurturing innovation and creativity, attaining balanced outcomes and taking liability for a sustainable future (Hendricks, & Singhal, 1996) Canada awards for business excellence The Canada Awards for excellence is a yearly awards program that recognizes business excellence in workplace health, quality and customer service. Since 1984, rewards have been given to public and private sector companies of all magnitudes that are world class. This prominent award acts as a tangible proof of a company’s degree of excellence. According to National Quality Institute (2011), Canada award for excellence is based upon the framework for organizational excellence of the national quality institute, which is utilized by several companies as a management model for consistent improvement and attainment of considerable operational results. Companies don’t compete against one another, rather, they are directly judged against the excellence criterion that constitutes the national quality institute’s framework. As a consequence, all companies, irrespective of sector or size, compete on an identical footage. The framework comprises of seven categories which are planning, leadership, process management, people focus, customer focus, business performance and supplier partner focus. Award applicants are assessed by a pre-selection committed consisting of professionals who have a background in practices and principles of quality management, as well as workplace health issues (National Quality Institute, 2011). Australian business excellence award The Australian business excellence framework is the leading framework for business excellence in Australian organizations and offers the criterion for Australian business excellence awards. These awards provide a distinctive opportunity to connect with industry leaders in Australia. The awards are open to every company operating within Australia, both public and private companies, governmental and non-governmental organizations and multinational subsidiaries. In order to participate in the awards, companies are needed to register through completing a registration form. The Australian business awards program challenges the entire spectrum of public, non-profit and private sector companies in Australia via its comprehensive product and business award categories. The Australian business excellence framework comprises of seven categories which include people, strategy and planning, leadership, market and customer focus, knowledge and information, success and sustainability and process management, innovation and improvement (Hendricks, & Singhal, 1996). Malcolm Bridge Award Deming Prize European Quality Award Australian Quality Award Canadian Quality Award Objectives To promote sharing and communication of best practices amid American corporations. To assist improvement of performance capabilities and practices. To act as a working device for the understanding and management of planning, assessment, training and performance. To assess and identify schemes of organization wide quality control for Japanese companies To support managers of European organizations to introduce total quality management and attain internal competitive advantage. To stimulate and help European corporations in improving employee and customer satisfaction, impact on business and society outcomes. To offer Australian companies the knowledge and drive for attaining the best quality practices of the world. To develop countrywide wealth To secure the Quality Council of Australia as the principal quality organization of commonwealth. To bring improved standard of living to Canadian people. To promote the efficiency, reponsiveness and profitability of corporations via continuous improvement. To encourage adoption of quality practices, processes and principles in Canada. Criteria Strategic planning. Leadership. Information and analysis. Market and customer focus. Process management. Human resource focus. Business results. Policies. Quality assurance. Human resources. Standardization and quality assurance. Maintenance and improvement. Future Plans. Policy and strategy. Leadership. Processes and resources. People management. People and customer satisfaction. Business results. Impact on society. Leadership, Policy, strategy and planning. People and customer focus. Information and analysis. Quality of service, product and process. Organizational performance. Leadership and planning. People and customer focus. Supplier focus. Process management. Organizational performance. Quality principles Organizations should have direction as well as customer focus. Personal and organizational learning are needed. Partners and employees are crucial to the success of the organization. Making important change needs innovation. Success needs flexibility and capability for change. Measurement of performance must focus on results. Creation of a vision and demonstration of commitment. Encouragement of education and self improvement. Institution of leadership and training. Optimization of team’s efforts. Constant improvement. Supplier partnerships. Customer focus. People involvement and development.Continous innovation and improvement. Results orientation. Public responsibility. Direction and reliability of purpose. Customers define quality. Decision should be based on facts. Improvement must be planned. Continuous improvement needs continuous learning. Improved processes should lead to improved outputs. Encouragement and respect of employee potential. Strategies must be process oriented. Decisions must be made on basis of factual information and data. Organizations must consistently improve outcomes and methods. Organizations are obliged to stakeholders and the general society. Customers should be the primary focus of organizations. Part B DEWA’s (Dubai electricity and water authority) ISO standard The main objective of Dubai electricity and water authority (DEWA) is to be a world class utility, to supply water and electricity and offer related customer services. The company follows a quality model adopted by the Dubai government in establishing its excellence criterion and it effectively apply environmental management system, occupational health and safety management system and ISO quality management. The company has obtained the greatest ISO certification (ISO 27001: 2005) in information security, which is ranked as the greatest standard of quality information protection and security. For the 3rd time in a row, the information technology of DEWA has passed procedures of auditing, monitoring and assessment performed by the Lloyd’s register quality assurance limited (Ammari, 2011). According to Lloyd's Register, (2010), the ISO 27001 certification is one of the numerous recognitions attained by DEWA since its establishment in 1992. The company has also been awarded with global acclaimed certifications such as OHSAS 18000, ISO 9001, British Safety Council Five Star award, Social Accountability (SA-8000), and Sword of Honour and Hall of Fame. The selection system adopted by the delegated committee of the Lloyd’s register, that offered the ISO (27001: 2005) depended upon precise criteria, which entailed reviewing the acquired skills of employees, workshops and training courses offered to the employees, and a detailed review of mechanisms and policies of applied processes in order to know how far needs of standard levels of information security have been implemented (Ammari, 2011). Why DEWA uses ISO as a quality standard ISO certification (270001: 2005) is a quality standard for DEWA because it enables the company to assure consumers that their information residing with the company is completely safe and protected. The ISO 27001 standard implies that the company has attained the greatest recognizable degree of data security management presently achievable. The project took the company less than three months to be completed and ready for certification, a time frame which was shorter than the aimed time frame. The company decided that it was essential to focus upon the implementation of practical information security measures though attaining an acknowledged level of hazard to information security, embed a security culture in the company and integrate best practices of information security in compliance with the standards of ISO 27001. Through certification, the company is able to raise trust of partners and customers, thus increasing its utilization of information technology services which would make sure that there is a consistent improvement of the company’s security posture (Lloyd's Register, 2010). Implementation of ISO standard Dubai electricity and water authority is committed to the implementation of ISO standard through combined efforts of all departments in order to attain Dubai’s strategic plan of sustainable development via attracting the utmost state of the art solutions and technologies and merging them into the organization’s numerous electronic operations. Ammari, (2011), notes that to pursue its vision as the recognized world class utility and to promote the electronic incorporation in all its services, Dubai electricity and water authority relies on the implementation of the most updated criteria essential in keeping abreast of developments in the arena of e-services, particularly information security. This global approved scheme manages information security connected with risk management and information technology in connection with procedures of protecting data and assets, which constitutes the primary drive of the company’s persistent pursuit of ensuring its standing and keeping pace with the most recent developments in the criterion of ISO27001. This in turn demonstrates the company’s compliance with implementing quality in order to attain the greatest criterion in its numerous operations. The information technology of Dubai electricity and water authority uses the most updated technologies in the management and operation of all systems and services of information technology and infrastructure, which serve the needs of the company (Ammari, 2011). Part C Six Sigma Six Stigma is a quality management scheme that seeks to improve quality of process outputs through identifying and eliminating the causes of errors and reducing variability in business and manufacturing processes. It is a methodology designed to advance projects and also to deal with complicated difficulties taking all areas and all levels in the company into account. It’s a organization’s esteem dedicated to encouraging improvement and enhancing quality. Methodologies and concepts of Six Sigma stress the utilization of statistical techniques and tools for reducing defects and improving quality. The statistical representation of the Six Sigma quantitatively defines the performance of a process (Stamatis, 2004). According to (Thomas & Keller, 2009), the primary objective of a Six Sigma methodology is the execution of a measurement based strategy that focuses upon process improvement and variation reduction via the utilization of Six Sigma improvement projects, which is achieved through the utilization of two sub- methodologies of Six Sigma; DMAIC( define, measure, analyze, improve, control) and DMADV(define, measure, analyze, design, verify).DMAIC process is the improvement scheme for subsisting processes which are below specifications and are searching for incremental improvements. The DMADV process is an improvement scheme utilized in the development of new product or processes at the Six Sigma quality level and is applied when the present process needs more than a mere incremental improvement. The dependence on figures and hard facts involuntarily ensures that whatever decisions are made will have the aspired influence on the quality of services and goods and the effectiveness of business processes. In order to beat competition in the modern day competitive business world, organizations are required to provide better quality services and products to the consumers at competitive rates. Six sigma, together with quality management offer employee with a personal pursuing of successful path and create further motivation in colleagues (Montgomery, 2009). Implementation of Six Sigma in DEWA An effective Six Sigma implementation will depend on the organization’s culture, and the conviction and commitment of its leadership. One of the largest determinants of the success of Six Sigma is the organizational culture. Because Six Sigma program will be new to the company, overcoming resistance by organizational employees will be significant management issue. Even though individuals are generally resistant to change, establishment of a long lasting process will be possible through changing the mindset of people making up the company, beginning at the top. Organizational leaders immensely influence organizational culture and if they do not buy in and make commitments on the Six Sigma, then the rest of the staff will not commit themselves to this new initiative (Keller, 2001) To make Six Sigma functional, the management of Dubai electricity and water authority will be required to commit devoted personnel to manage projects and guide other people working to mane improvement in processes. Thomas and Keller (2009) note that as a rule, supervisors and managers should recognize that immediate business requirements come before long term remedies and thus Six Sigma needs a devotion to focusing upon process improvement so that daily problems are resolved once and for all. With the assumption that there is support from the organizational leadership, there is the need to establish a scheme that will make sure that employees are engaged in the Six Sigma program. The management of Dubai electricity and water authority shouldn’t expect to merely introduce a novel initiative to their employees and have it readily acknowledged. Therefore, the management should design incentives and reinforcement policies to motivate employees to embrace the new Six Sigma concept (Thomas, & Keller, 2009). According to Keller, ( 2010), training is an essential part in the deployment of Six Sigma and numerous aspects of training should be considered. The company should establish training objectives, the order in which individual employees will be trained, how training will be structured and methods, format, and training aids that will be utilized during training sessions. Before instigating Six Sigma, it is significant for the company to evaluate how projects are chosen and projects must be tied directly into the major business metrics and indicators. The management must be able to agree upon the significance of every project, in spite of whether it really grasps the tools and concepts of Six Sigma. A committee should be created to the interior processes to communicate the advancement of Six Sigma projects and also the lesson learned and outcomes. Efficient internal communication lines will promote Six Sigma and also speed up improvements via benchmarking and best practice sharing (Cary et al, 2003). Conclusion Quality management is an important concept in today’s business world because ensures quality in an organization’s services and products. There are several forms of quality management programs such as total quality management and Six Sigma. The major objective of quality management is the creation of a high performing, high quality service or product that meets the expectations of customers. Due to the need for organizations implementing quality management schemes to utilize a standard against which their quality managent progress is measured, several countries have come up with awards that are offered to organizations that proof to be quality world class leaders. The five most prominent awards are the Malcolm Baldrige National Award, the Deming Prize, The European Quality Award, The Canada Award for Business excellence and the Australian Award for Business Excellence. These prizes promote quality awareness and offer a framework to evaluate quality approach of organizations. Dubai Electricity and Water Authority has used ISO standard as a scheme of quality management to ensure that it meets the needs of customers as well as other stakeholders. References Link, A., & Scott, J., (2001). Economic Evaluation of the Baldrige National Quality Program, NIST Planning Report 01-3, October 2001. Hendricks, K., & Singhal, V., (1996) Quality Awards and the Market Value of the Firm: An Empirical Investigation, Georgia Tech, Management Science, 42, (3), 415-436. Ammari, S., (2011). Dubai Electricity and Water Authority garners highest ISO certification in information security. Retrieve on November 9, 2011 from www.ameinfo.com/274857.html Lloyd's Register. (2010). Dubai Electricity and Water Authority awarded ISO 27001 certification National Quality Institute, (2011). The Canada Awards for excellence. Retrieved on November 9, 2011 from www.nqi.ca/caeawards/  Business Standard, (1998). Sundaram Clayton bags Deming prize, 23 October 1998. Retrieved on November 9, 2011 from http://www.business- standard.com/india/storypage.php?autono=28517. Issac A. & Davies E., (2002). The European Quality Award. Engineering Management Journal, 8(1), 11-16. National Quality Institute, 2011, Canadian Business Excellence Awards. Retrieved on November 9, 2011 form www.nqi.ca/caeawards/ss Cherkasky, S., (2010) . The Balridge National quality program criteria have been improved. Thriving in Turbulent Times. Retrieved on November 9, 2011 from www.cmcchangemanagement.com Stamatis, H. (2004). Six Sigma Fundamentals: A Complete Guide to the System, Methods, and Tools. New York, New York: Productivity Press. Montgomery, C. (2009). Statistical Quality Control: A Modern Introduction. Hoboken, New Jersey: John Wiley & Sons. Keller, A., ( 2010). Six Sigma Demystified. New Jersey: McGraw-Hill Professional. Cary, W., Praveen, G., & Wilson C., (2003). Six Sigma Deployment. Burlington, MA: Butterworth- Heinemann. Thomas, P., & Keller, P., (2009). The Six Sigma Handbook. New York, NY: McGraw-Hill. Keller, A. (2001). Six Sigma Deployment: A Guide for Implementing Six Sigma in Your Organization. Tucson, AZ: Quality Publishing. Read More