Outcome and Effectiveness - Case Study Example

Student’s Name: TQM Instructor’s Name: Course Code & Name: Date of Submission: Table of Contents Table of Contents 2 Executive summary 3 1.0 Introduction 4 2.0 Indicators of Successful TQM Implementation 5 2.1 Increased customer focus 5 2.2 Improved Operational Performance 5 2.3 Improved Financial Performance 6 2.4 Increased Competitiveness 6 2.5 Quality culture 6 3.0 Steps in Implementing TQM in ABC Motor World 7 3.1 Summary of the steps 11 4.0 Conclusion 12 5.0 Recommendations 13 References 14 Executive summary This report tries to explore the way through which ABC Motor world will effectively implement total quality management (TQM) so as to increase the quality of its products and services. In addition, the report identifies a number of indicators that will confirm whether TQM was successfully implemented in the firm. The paper begins by identifying improvements in customer focus, increased competitiveness, development of a culture of quality and improved financial performance as indicators of successful TQM implementation. The paper then goes ahead and recommends the adoption of Crosby 14 steps in order to effectively implement TQM in ABC Motor World. Finally, the paper recommends some changes in the firm so as to ensure effective implementation of TQM. 1.0 Introduction Total quality management plays a very significant role in helping companies to gain competitive advantage in the market (Scheuermann, Zhu and Scheuermann 1997, p.264). An organization can improve the reliability of its products by lying down and implementing quality standards. Sunganthi and Samuel (2004, p.365) state that a firm must come with an implementation strategy in order to provide guidance during the process. The strategy should lay down the phases that the firm will go through in order to successfully implement quality. For successful implementation of the TQM strategy, the firm must set up a steering committee, develop the goals to be achieved in relation to quality management, implement the strategy and continuously asses and review the progress of the strategy (Jackson 2001, p. 158). Therefore, it is evident that TQM implementation plays an important role towards making a firm to be successful. This has motivated ABC Motor World to come up with a strategy that will ensure effective implementation of TQM in the firms operations. This is due to the significant decline in the number of customers and increased customer complains which has been attributed to the firm’s poor quality of products and services. This report will identify the process to be used to implement TQM in the firm as well as the indicators that will prove TQM was successfully implemented. 2.0 Indicators of Successful TQM Implementation 2.1 Increased customer focus According to Jackson (2001, p.157) successful implementation of TQM is characterized by an increased firm focus to both the internal and external customers. This means that the firm will be able to offer greater customer satisfaction by meeting the customers’ needs and expectations. This will be proven by new customer referrals, high customer retention levels and a reduction in the number of complaints from the customers (Vallabhaneni 2008, p.190). On the other hand successful implementation of TQM will lead to improved and better employee relations. This will be evidenced by a reduction in employees’ absenteeism, reduction in employees’ turnover and increased employees satisfaction as well as improvement in teamwork and trust among the employees. To further prove this, the firm can undertake customer research in order to determine whether customer needs are being met hence provide information on whether TQM was successfully implemented (Scheuermann, Zhu and Scheuermann 1997, p. 265). 2.2 Improved Operational Performance Vallabhaneni (2008, p.190) states that operational performance is used to measure and indicate the cost and quality of a firms products and services. Successful implementation of TQM will lead to improved performance in the firms operations. This will be verified by timely delivery of the motor vehicles and spare parts to ABC customers, improvement in the time taken to process customers’ orders, increased customer reliability with our products and a reduction in operational costs. 2.3 Improved Financial Performance Yasin at el (2011, p. 387) reports that successful implementation of TQM has a positive impact on the market price of the shares of a firm. Therefore, an increase in the market price of the firm’s shares and an increase in return on investment will prove that TQM was successfully implemented. Successful implementation of TQM will also be verified by an increase in the number of cars sold, increase in returns on sales and increase in the firm’s profits (Druckman, Singer and Cott 1997, p. 46). 2.4 Increased Competitiveness Druckman, Singer and Cott (1997, p. 47) note that with successful implementation of TQM a firm becomes more competitive. The increase in the firm’s competitiveness is closely associated with its ability to produce quality and reliable products. Therefore, increase in the firm’s competitiveness as a result of successful TQM implementation will be verified by improved firm reputation in the market. In addition the firm competitiveness will be ascertained in case it increases the price of its motor vehicles without losing its customers. 2.5 Quality culture Successful implementation of TQM can create a culture of quality in the firm. According to Druckman, Singer and Cott (1997, p. 48) quality culture refers to a firm adopting quality as its point of reference. Successful implementation of TQM creates an environment whereby the employees adopt value systems that lead to continuous improvement in quality hence this enables the firm to become effective in its operations (Lam, Poon and Chin 2011, p. 197). Implementing TQM enables a firm to merge its formal and informal values and this creates a productive quality culture that benefits the employees and the organization. Successful Implementation of TQM requires a firm to train its employees and at the same time build cross functional teams that enhance the culture of quality. The firm will prove when the employees will display increased error detection rate, increased error prevention and continuous quality innovations after implementing TQM. 3.0 Steps in Implementing TQM in ABC Motor World Pike and Barnes (1995, p. 73) advocate the use of Philip Crosby approach to TQM implementation as it is the most widely method utilized by many firms. Crosby 14 steps for implementing quality in an organization include; 1. Establishing Management Commitment The purpose of this step is to gain commitment from the management (Pike and Barnes 1995, p. 73). In this step discussions will be held with the management in order identify the need for quality improvement. Moreover, a quality statement will be prepared so as to show what individual members of the management will be expected to do. This step will be done so as to help the management to recognize the need for their commitments hence ensure cooperation during the process. The step will be performed by the top executive. 2. Forming quality improvement team All the representatives of each department will be brought together at this stage (Crosby 1979, p. 62). The representatives will be assumed to have the capability of speaking on behalf of their departments in order to execute decisions to actions. The representatives will then be oriented on the content and reason of the process and also explain their roles in the process. The step will be performed in order to create a team from different departments. The step will be performed by the top executives (Chin and Pun 2002, p. 281). 3. Establishing Quality Measures This step will be used to determine the status of quality in the firm. Quality measurement standard for each activity will be established at this point. Furthermore, quality status will be recorded so as to identify areas that need improvement. The step is essential as it will facilitate formalization of the company measurement systems (Crosby 1979, p. 62). The step will be performed by the quality improvement team. 4. Evaluating the Cost of Quality The quality improvement team will then search for detailed information on the constituents of cost of quality. The cost of quality will enable the team to identify where corrective actions would need to be undertaken. This step will eliminate any alleged bias in calculating the cost of quality (Crosby 1979, p. 63). The step will be executed by the quality improvement team. 5. Raising quality awareness At this stage the firm’s employees will be informed on the cost incurred by the firm for producing non-quality products. To do this, the supervisors will be trained in order to inform the employees the cost associated with low quality products. This step will aim at changing the employee’s altitudes towards quality (Crosby 1979, p. 63). It will be performed by the supervisors. 6. Taking actions to correct problems At this stage meetings will be held to identify the obvious problems as well as those problems that are not so obvious (Kathawala 1989, p. 10). This step will be critical as it will enable the firm to identify problems that need to be eliminated. The activity will be undertaken by the quality improvement team. 7. Establishing an Ad Hoc Committee for Zero Defects Planning Three or more members of the team will be then selected to investigate the zero defects concepts and the ways to implement it into action (Crosby 1979, p. 63). The team will then be required to communicate to the employees the meaning of zero defects. The ad hoc committee will be required to identify the means of matching the zero defects program into the company operations. The step will enable the firm to improve on its products by eliminating defects. The step will be undertaken by the quality team. 8. Training the supervisors and the managers Managers and supervisors will be oriented on the steps of the program in order for them to inform the employees (Kathawala 1989, p. 9). The step will enhance the managers and the supervisors understanding of the process hence this will facilitate their realization on the value of the program to the firm. The activity will be undertaken by the quality improvement team. 9. Zero Defects day This step will involve establishing zero defects as the performance indicator for the firm (Crosby 1979, p. 63). The step will be imperative as it will build and emphasize the need employees to adopt a culture of zero defects. The quality improvement team will carry out the process. 10. Encourage the setting of goals for improvement The supervisors will meet the employees and encourage them to establish measurable and specific goals while working for the firm. The step will enable the employees to undertake their tasks with an aim of pursuing their goals. The activity will be undertaken by the supervisors and the managers (Chin and Pun 2002, p. 281). 11. Encourage employees to report obstacles they may meet in the work place This step will involve eliminating work standards that call for numerical quotas (Kathawala 1989, p. 9). It will also involve asking the employees to describe the problems that make them to perform their work erroneously. The step is important as it shows the employees that their problems can be acted upon and hence this will improve communication in the company. The activity will be carried out by the quality improvement team. 12. Recognizing the contributors Awards will be established in this step for the employees who meet their goals or perform beyond expectations (Crosby 1979, p.64). Establishing rewards will indicate that the firm appreciates good performance from its employees. This activity will be carried out by the quality improvement team. 13. Establishing quality councils The quality professionals and the team chairpersons will be required to regularly communicate with each other in order to identify areas that need improvements (Crosby 1979, p.65). This will be essential because the council will bring in the best source of information on the position of the program. The activity will be carried out by the quality improvement team. 14. Do it all over again Due to the change s in environmental situations new team of representatives will be set up to begin the process again. This is important as it will enable the program to be continuously improved through repetition (Crosby 1979, p.65). The activity will be undertaken by the quality improvement team. 3.1 Summary of the steps Establishing Management Commitment. Forming quality improvement team. Establishing Quality Measures. Evaluating the Cost of Quality. Raising quality awareness. Taking actions to correct problems. Establishing an Ad Hoc Committee for Zero Defects Planning. Training the supervisors and the managers. Zero Defects day. Encourage the setting of goals for improvement. Encourage employees to report obstacles they may meet in the work place. Recognizing the contributors. Establishing quality councils. Doing it all over again. 4.0 Conclusion In conclusion, the firm successful implementation of TQM will be indicated by improved financial performance and the development of a culture of quality. In addition, successful TQM implementation will be ascertained by an increase in the firm’s competitiveness, increased customer focus and improvement in its financial performance. The firm will implement TQM Using Crosby 14 steps of managing quality. 5.0 Recommendations Cieri, Samson and Sohal (1991, p. 57) have mentioned that effective TQM implementation will require a firm to commit itself in training and developing its workforce. Employees are better utilized through effective training and development programs. Therefore, there is inherent need for the firm to undertake its employees through extensive training in order to assist them in setting their goals as well as to fully utilize their talents in implementing TQM. In addition, there is need to change the existing remuneration packages in order to boost the employees morale in implementing TQM. Currently the firm has poor remuneration packages which are not well aligned with requirements of TQM. ABC Motor world should increase its remuneration and bonuses in order to match with the extra effort that will be required in order to effectively implement TQM. References Chin, K &Pun, K 2002, ‘A Proposed Framework for Implementing TQM in Chinese Organizations, International Journal of Quality and Reliability Management, vol. 19, no.3, pp. 272-294. Cieri, H, Samson, D & Sohal, A 1991, ‘Implementation of TQM in an Australian Manufacturing’, International Journal of Quality and Reliability, vol. 8, no. 5, pp. 55-65. Crosby, P 1979, Quality is Free: The Art of Making Quality Certain, McGraw Hill, New York. Druckman, D, Singer, J & Cott, P 1997, Enhancing Organizational Performance, National Academy Press, Washington. Hill, D 2008, What Makes Total Quality Management Work, ProQuest Information and Learning Company, Miami. Jackson, S 2001, ‘Successfully Implementing Total Quality Management Tools Within Healthcare: What are the Key Actions, International Journal of Health Care Quality Assurance, Vol. 14, no. 4, pp. 157-16 Kathawala, Y 1989, ‘A Comparative Analysis of Selected Approaches to Quality, International Journal of Quality & Reliability Management, vol. 6, no. 5, pp. 7-17. Lam, V, Poom, G & Chin, K 2011, ‘The Link between Organizational Learning Capability and Quality Culture for Total Quality Management, Asian Journal on Quality, vol.7, no. 1, pp. 195-205. Pike, J & Barnes, R 1995, TQM in Action, Chapman & Hall, London. Scheuermann, L, Zhu, Z & Scheuermann, S 1997, ‘TQM Success Efforts: Use More Quantitative or Qualitative Tools? Industrial Management & Data systems, vol. 97, no. 7, pp. 264-270. Suganthi, L & Samuel, A, Total Quality Management, Prentice-Hall, New Delhi. Vallabhaneni, S 2008, Corporate Management, Governance, and Ethics Best Practices, John Wiley & Sons, New Jersey. Yasin, M, Alavi, J, Kunt, M & Zimmerer, T 2004, ‘TQM Practices in Service Organizations: An Exploratory Study into the Implementation, Outcome and Effectiveness, Managing Service Quality, vol. 14, no. 5, pp. 377-389. Read More