Quality Management System - Etihad Airways - Case Study Example

Quality Management Name Institution Date Abstract In the recent years business planet has been dominated with the demand for quality products which has since generated the need for quality management systems. The aspect of enhancing quality production entails prioritizing the needs of the customers above all management issues. This implies that a quality management system enables organizations to meet or exceed the needs of the customers (Thorpe & Summer, 2004). In addition, organizations that ensure their customers’ demands are consistently met in the course of their product and service delivery can be defined as successful in obtaining quality management. In this instance, the term quality has been coined to describe the effort of designated to improve the quality of products and services across all levels of organizations. This can be attained by conforming to the set standards of production to ensure that the outputs satisfy the original specifications. Chapter 1: Introduction and Theory ii) Introduction Quality management system is one of the management techniques designed to effectively communicate to the employees the desired quality of the outcomes of production processes or service delivery to enable them execute their obligation in accordance to the set quality specification. Many consultation firms such as American Society for Quality and Sigma Six have sprouted in the recent decades to offer advisory services to organizations and help them sail through quality management issues so as to attain total quality management. Total quality management refers to the processes integrated within an organization to elevate the service experience of suppliers and customers both within and outside the organization. The aspect of quality management drives organization towards achievement of organization goals by setting standards and creating visions for the employees. This paper explores various theories that revolve around the concepts of quality management and examines if such theories are being implemented within organizations. ii) Theories of quality Theoretically, according Gitlow (2000), there are three types of quality which include quality of design or redesign, quality of conformance and quality of performance. Processes of quality of design are aimed at matching the quality of goods and services with demands of consumers. This implies that effective quality is achieved through developing product from customers’ point of view. Quality of conformance refers to the degree in which an organization and its suppliers are capable of developing products and services that are predictable, uniform and dependable at a cost that is in line with the quality of design. Ultimately, quality of performance aims at determining the performance of the quality products and services that are developed through quality of design and improved in the quality of conformance in the market place. Chapter 2: Quality Management Theories The concept of quality management has evolved over several years. The essence of enhancing quality management so as to reap the benefits of producing quality products and delivering quality services dates back as early as 1950s. During this period Edward Deming devised techniques such as statistical process control (SPC) and problem solving mechanisms which altered the mind frames of Japanese companies thus gearing them towards production of quality products. Subsequently, the contribution of industrial quality development to address the short comings and complexities of traditional assurance techniques were examined by Crosby, Deming and Juran in late 1980s and early 1990s (American College of Medical Quality ACMQ, 2010). Historically, the quality management techniques were marred by individual responsibility where professionals maintained autonomy, administrative and authority over quality management. According to ACQM (2010) the traditional quality assurance methods were generated through response to customer complains. In this case, the traditional quality assurance techniques were evidently driven by the failure to attain the organizational goals. On the other hand, quality management models provides collective team-based and management focused efforts aimed at elevating the qualities of products and services. Various quality management theorists have put forth principles and values which direct organizational cultures and structures as well as interaction subsystems that govern quality management. i) Deming’s Theory W. Edward Deming is one of the influential personalities who pioneered quality management techniques. Deming discovered that eighty five percent of quality management issues were as a result of shortcomings of organizational management. Rousel et al (2006) observe that Deming established fourteen key points that govern quality management within organizations. These key points include: Create consistency of purpose aimed at improving products and services. Embrace learning so as to adopt new philosophy to improve the management systems End dependencies on inspection to achieve quality. Cease awarding business just on the price tag alone. Instead the cost can be minimized by working with same suppliers. Ensure consistency through constant production of quality products and services. Introduce standardized training so as to impact to enable employees gain knowledge and skill necessary for effective work performance. Adopt leadership that will help the employees to do their work properly Stop fear of any nature such as fear of change, failure and of providing information. Eliminate interdepartmental barriers to promote cooperation among staffs. Avoid quality-based goals, targets, exhortations and slogans. Dispose numerical quotas for employees and laid down standards for management. Ensure that pride have a senses of pride in their workmanship. Make sure that all organizational members are trained and well educated. Integrate all organizational members in achieving the desired change. In addition, Deming established a system of profound knowledge which entails understanding the means through which organizational systems and processes work, comprehending the variations that arise during production and their causes, knowledge theory which encompasses understanding of what can known in the organization and finally understanding of cognitive behaviors. 1. Joseph Juran’s Theory According to TLF (2005) Joseph Juran’s pursuit for quality management made him to establish Juran Institute in 1979 to help organizations elevate the qualities of their services and products. Juran refers to quality as the fitness of a product for use. This implies that the consumers of the product should be fully satisfied from using the product or service without doubts of defects. Bowen (2013) argues that Juran became popular for inventing quality trilogy which consists of quality planning, quality improvement and quality control. In this case, Juran’s quality management theory encompasses quality of conformance and quality design and the quality must be consistently available, safe for use and must reach the final consumers with the intended degree of quality. Quality design implies that both products and services must be delivery in their predetermined state. Similarly, a product can be defined to have obtained quality of conformity if all aspects of the product or service reflect the quality levels of the intended design. According to TLF (2005), Juran’s theory views availability of quality as freedom from errors throughout the entire management process. This can be evaluated through the frequency of occurrence of flows in the management and production process. For instance, TLF (2005) notes that loss or shortage of energy during production processes causes defect parts and eliminates quality production. The safety of a product, based on Juran’s theory refers to the level of risk of injury posed by consumption of the product. This implies that the product or service may not be described as of high quality if it has probability of causing harm if it is not well used irrespective of whether it met or exceeded the quality expectations and standards. 2. Philip Crosby’s Theory Mukherjee (2006) observes that Crosby’s comprehensive work on quality management in the United States of America earned him honor globally. Similarly, he gained popularity as a quality management guru during the fourteen years he was working at International Telephone and Telegraph (ITT) in Japan. Crosby doctored quality management in famous companies such as IBM (Mukherjee 2006) and general motors. Crosby’s theory of quality management defines quality on four absolute requirements. The first absolute requirement states that the developed products must conform to the requirements. This implies that for an organization to achieve quality products and services they must clearly communicate the requirements of the desired output to the employees so that they can produce the right product the first time. The second absolute requirement according to Crosby’s theory is that quality management systems aim at prevention rather than appraisal. Mukherjee (2006) argues that appraisal is an end process which entails inspection testing to investigate if the product is conforming to the quality design. In the case it is noteworthy to observe that appraisal does not exist without conformance. The third absolute requirement is the performance standard of zero defects. This implies that policy of quality management should be that organizations should deliver products and services that do not have defects at an appropriate time. The final absolute requirement is that quality is measured through the price of non-conformance. According to Mukherjee (2006) the price of nonconformance constitutes cost incurred during loss of orders, delayed delivery, rework rejection and mishandling of customers’ enquiries. Chapter 3: Implementation of Quality Management Theories at Etihad Airways Etihad Airways, based in Abu Dhabi in United Arab Emirates aims at delivering their best modern class hospitality that exceeds the expectations of their of their guests. According to Delano (2014) the company has integrated management systems which ensure quality and safety of the services they offer to their customer. In this case the company has safety management systems (SMS) which contain which contain mandatory f-safety requirements that are implemented as integral components Etihad’s general, management procedures. The standards and constraints of SMS are outlined in the SMS manuals (SMSM) which the post CEOs imposes on all areas on behalf of the Etihad Airways Board. This is in conformance to regulatory bodies such UAE Civil Aviation Law, and UAE Environmental, Health and safety requirements. Additionally, the SMAM is subjected to regular amendments to ensure inclusion of the emerging safety requirements. To ensure that all the organization members are integrated into the systematic changes initiated by the management, the amendments are published electronically and distributed through Etihad Internet. According to the Etihad Airways Fact and figure Report (2009), Etihad has sought the skill and techniques world leading designers such as Poltoma Frau, an Italian company which designs the interior of Ferrari cars to design the cabin interiors to meet and surpass the need of its consumers. This initiative has seen the organization quality leather seats that improve the customer experience. Similarly, there are well designed luxury changing rooms that are fitted with room amenities such as full length changing mirrors, leather fold-down seats and luxurious soft finishing. The company also dedicates its resources to train its employees so as to equip them with necessary quality management skills. In this instance, Etihad Airways Fact and figure Report (2009) state that the company’s first Emirate graduate managers completed the airline’s graduate management development programs and were distributed across all Etihad networks globally. Summary and conclusion Quality management techniques were brought into limelight by prominent theorists such as W. Edward Deming, Joseph Juran and Philip Crosby who pioneered the subject since around mid ninetieth century. Quality can be attained in three distinct states within an organization. These include quality of design or redesign, quality of conformance and quality of performance. The quality management theories outlined in this paper provide a clear platform for addressing the shortcomings of management systems. For instance, Deming’s theory provide fourteen step-by-step key point which if properly followed will ensure production of quality products and services through integration of all organizational members. Juran’s and Crosby’s quality management theories also aim at aim at improving the quality standards of goods and services to suit the perception of end consumers. Obtaining quality management techniques help organizations to save on revenues and profits. For instance, through quality management policies, organizations produce quality products and services the first time thereby eliminating the need to rework on the same products. This aspect not only helps organizations to save on the costs that would have been incurred to purchase the raw materials for rework but also ensures that the products reach the end consumers at an appropriate time and in predetermined state. Furthermore, it is evident that quality management techniques ensures production of quality products and services which enables organizations to earn trusts and loyalty of customer hence they gain competitive advantage at the market place. Conclusion In conclusion, it is worth noting how the analysis of the implementation of quality management policies in Etihad Airways has unearthed a couple of quality management signs in the company. It is evident that organization has well laid down safety management procedures which are well communicated to the employees to ensure that the services offered are safe and fit for use. In addition, by seeking the world’s finest expertise to design the cabin interior, the airlines ensures that they provide their customers with the world class modern customer experience. Reference American College of Medical Quality (2010). Medical Quality Management: Theory and Practice, Jones & Bartlett Publishers, Canada. Bowen, R (2013). Theories in Total Quality Management (TQM). Retrieved on 25th November, 2014, from: Delano, B.L (2014).Safety Management System Manual. Retrieved on 25th November, 2014, from: http://www.etihadcargo.com/documentlibrary4/safety%20management%20system%20% 28sms%29%20rev%2003%20effective%2010%20apr%2014.pdf Etihad Airways Facts and figures (2009). Retrieved on 25th November, 2014, from:  Gitlow H.S (2000). Quality Management Systems: A Practical Guide, CRC Press, Florida. Mukherjee, P.N (2006). Total Quality Management, PHI Learning Pvt. Ltd, New Delhi. Rousel, L., Swansburg, R. C & Swansburg R.J (2006). Management and Leadership for Nurse Administrators, Jones & Bartlett Learning, USA. Thorpe, B & Summer, P (2004). Quality Management in Construction Gower Publishing, Ltd, USA. TFLeBOOK (2005). Quality Management Systems. Retrieved on 25th November, 2014, from:   Read More