Six Sigma - Impact of Quality Processes and Quality Management Principles Used at Emirates Airline - Case Study Example

Quality Management Project Name: University: Date: Table of Contents Quality Management Project 1 Table of Contents 2 Executive Summary 3 1.0 Introduction 4 1.1 Approaches to Quality 4 1.1 Basic Principles of TQM 4 1.2 Why Quality is Important 5 2.0 Emirates Airline Overview 6 2.1.0 SWOT Analysis 6 2.1.1 Strengths 6 2.1.2 Weakness 7 2.1.3 Opportunity 8 2.1.4 Threats 8 2.2.0 Analysis Key Findings 8 3.0 Impact of Quality Processes and Quality Management Principles used at Emirates Airline 9 3.1 Employee Involvement 10 3.2 Leadership 10 4.0 Optimal Implementation Plan to achieve Organisational Excellence/Stated Strategic Goals 11 5.0 Conclusion 12 Appendices 13 References 15 Quality Management Project Executive Summary Quality management guarantees improved quality services and products. Basically, the product quality can be measured based on durability, reliability and performance. As it will be evidenced in the report, quality is a key factor that distinguishes a company from the competitors. The tools of quality management ensure processes and systems changes which ultimately lead to improved quality services and products. Methods of quality management like Six Sigma or Total Quality management (TQM) have a similar objective, delivering a product with superior quality. Imperatively, quality management is crucial for creating products of superior quality which exceedingly satisfy the customers. As it will be discussed in the report, TQM as a business approach intends to offer quality products so as to realise customer satisfaction. In view of this, TQM is a new management philosophy introduced in the Gulf region as well as United Arab Emirates. In this report, the success factors in implementing TQM in UAE organizations, especially Emirates Airline are discussed. Besides that, elements for continuous improvement after implementing TQM were identified; product quality, employee satisfaction, customer satisfaction as well as business process improvement. This report discusses the impact of quality processes as well as quality management principles used at Emirates Airline and suggests an optimal implementation plan to achieve organisational excellence/stated strategic goals. 1.0 Introduction 1.1 Approaches to Quality The approaches to quality include; TQM, Six Sigma, Continuous Quality Improvement, and Continuous Improvement Process (see Appendix one). The TQM management concept intends to improve quality by guaranteeing internal requirements conformance (Joiner, 2007). Imperatively, TQM improves customer satisfaction, lessens the inaccuracies generated during the process of service or manufacturing, makes supply chain management more efficient, and make sure the level of training of employees is high. Another approach is Six Sigma which intends to improve the process outputs’ quality by eliminating or reducing defective or defects processes. Basically, this is achieved by identifying as well as minimizing the causes of errors as well as reducing inconsistency in business and manufacturing processes. Continuous Quality Improvement (CQI) is a quality management approach that seeks to develop traditional methods for quality assurance through developing as well as strengthening the systems and organization of the company and concentrating on the ‘process’ instead of an entity. The Continuous Improvement Process (CIP) is where the processes of business are continually assessed and improved in view of their flexibility, effectiveness and efficiency. 1.1 Basic Principles of TQM The main principles of total quality management include; continuous improvements in quality, employee involvement and customer satisfaction (Omachonu & Ross, 2004). Continuous improvements in quality are a continuous process, wherein the manufacturer has to lay down product or service quality attributes cautiously and make sure such specifications are achieved. Besides that, quality must be made the responsibility of every person in the company. Besides that, employee involvement is exceedingly crucial in realizing and maintaining high quality levels (Gul et al., 2012). According to And and Sohal (2008), employees should be involved and encouraged to partake in the quality-management through utilization of control techniques and tools as well as seeking areas that require improvement. For this reason, motivation as well as training of workers is crucial for realizing and supporting high quality levels. On the other hand, the main TQM emphasis is on the customers as well as their satisfaction. Products that are of high quality always meet the expectations of the customers leading to higher customer satisfaction (see Appendix Two). 1.2 Why Quality is Important Without a doubt quality is important, considering that all organizations are facing challenges such as globalization, the economic crisis and stiff competitions in their market. Therefore, quality management is important for all businesses since quality products assist in maintaining loyalty and increasing customer satisfaction as well as reducing the cost and risk of replacing defective products. A company can gain a quality reputation by being accredited with quality standard that is recognised, like ISO 9001. Therefore, a company reputation is influenced by quality (Grunwald & Hempelmann, 2010). Besides that, a product failure or poor quality can damage the company reputation since customers always expect to be offered high quality products. Quality products results in a long-term profitability as well as revenue. 2.0 Emirates Airline Overview Emirates Airline is the Emirates group subsidiary. It made the first flight out of Dubai in 1985 with only two aircraft, an Airbus 300 B4 as well as a leased Boeing 737. The airline main goal was quality, and since 1985, the airline has evolved into an internationally influential tourism and travel conglomerate (Emirates, 2015). The airline is recognised across the globe for their commitment to highest quality standards in all aspects of their business. Even though Emirates Airline is owned wholly by the Government of Dubai, it has developed in stature and scale through competition. Emirates Airline considers competition as an important factor to sustaining its competitiveness as well as identity. Since 1990s, the airline has been recording an annual profit each year, and its determination to offer improved service in the airline industry has been crucial to the airline success. The Airline has more than 230 aircrafts, and operates in more than 140 destinations in over 80 countries (six continents) across the globe. An average of 1500 flights is made by Emirates Airline from Dubai every week, and the airline has continued to make a number of noteworthy announcements concerning the future of its ultramodern fleet. 2.1.0 SWOT Analysis 2.1.1 Strengths Emirates Airline key strength come for their independence considering that the company has successfully managed to resist the acquisitions and mergers temptation with other airlines. The airline believes that merging with other airlines can result in poor quality since it can suppress their flexibility. Currently, the airline can quickly change direction devoid of seeking agreement from outside partners. Emirates Airline promotes free competition, since they believe that by encouraging competition would result in increased quality. Furthermore, Emirates Airline is not worried of other airlines, but focus mainly on meeting the customer expectations. The airline ensures it serves quality food to the passengers and ensures cancellations and delays are kept as minimal as possible. Currently, every company needs to know their carbon footprint, and for this reason, Emirates have ensured their carbon footprint is as low as possible. Even though the fleet average age is just 6.5 years, Emirates Airline has invested heavily in the A380 Airbus (650 seat) which are considered as the most emission and fuel-efficient planes in the world. 2.1.2 Weakness Regrettably, not all diversification approaches have succeeded and this can be perceived as one Emirates airline weakness. Besides that, the airline has concentrated much on their diversification as well as high end acquisition's despite the uncertain impact of these decisions. Another possible weakness is that the company’s operating revenue is rooted in low salaries it pays to the general employees such as caterers, cleaners and baggage handlers. Furthermore, most of these general workers are recruited from developing countries like India and Philippines and are not unionized. Such migrant employees can be deported if they display if they rise against the current wage structure. Besides that, intense competition in the airline industry results in limited growth in market share and maintaining bench-mark standards is very expensive. The economic crisis in 2008 led to increase on oil prices, and Emirates find it changing to cope with the situation; in consequence, their profits were consumed. 2.1.3 Opportunity The China physical location offers it a huge growth opportunity and China being the world’s fastest growing economy offers more opportunity. China growth has increased the demand for air-freight as well as air travel movements. For this reason, Emirates Airline can capitalize on this growing demand using its air routes network and its flexibility. Emirates airline can seize the opportunity of business ventures in Dubai such as Disney land to fly tourists from various parts of the world to Dubai. 2.1.4 Threats The airline face a number of threats from other established airline companies such as Etihad, which are tirelessly trying to attract passengers from the competitors by reducing the price of the ticket. Besides that, the airline industry is extremely unpredictable and is always affected by the trade cyclical variations. For instance, Emirates Airline was extremely affected by the 2008 global recession. Another threat is the government policy considering that the airline is owned by the government of Dubai. Besides that, it has become hard to satisfy all the needs of the employees since the labor at Emirates airline deals with different aircrafts. 2.2.0 Analysis Key Findings The SWOT analysis for Emirates airline goes far in positively influencing its operations. However, it is evident that there are scores of quality barriers that Emirates experiences problems such as those associated with pilot and failure to deliver lounge facilities. Besides that, a lot of customers experience challenges in the airline’s online booking resulting in many complaints. For this reason, the airline has espoused quality culture so as to ensure the service quality meets the expectation of the customers. This culture has helped Emirates to focus on the customers with the intention of increasing satisfaction. Still, the quality culture has failed to satisfy a number of customers; thus, creating the need for more satisfaction. Therefore, the SWOT analysis provides a basis for Emirates to know where it is now and how it can overcome its weakness and reduce threats. 3.0 Impact of Quality Processes and Quality Management Principles used at Emirates Airline Basically, espousal of TQM approach has enabled Emirates Airline to effectively manage quality at every functional operation area. According to Ooi et al. (2011), TQM main goal is customer satisfaction; therefore, implementing TQM results in added value. To benefit from TQM implementation, the airline had to align the TQM basic principles with the organisational culture considering that they act as the basis wherein delivery of quality services are realised. The TQM principles used at Emirates Airline include; quality commitment from employees and management, organisational culture that allows everyone to take part, empowerment as well as training of workforces and emphasis on satisfying the demands of the customers. By espousing such principles, a number of added advantages have been brought to Emirates Airline, in terms of employee and customer satisfaction as well as improvements in their operational process. 3.1 Employee Involvement Employee involvement according to Amah and Ahiauzu (2013) connotes that all workers are considered to be unique, and not to be treated like a machine. Through employee involvement, all workers take part in assisting the organization to meet its goals. At Emirates Airline, all workers input are valued and solicited by the management, and both the employee and management are take part in running the business. Emirates Airline understands that a workforce that is highly engaged can not only improve productivity and innovation, but also the airline’s bottom-line performance. Besides that, employee involvement help in cutting costs associated with recruiting and retaining talent markets that are considered highly competitive (Sadikoglu & Olcay, 2014). The Airline place great value on employee involvement towards the lasting improvement and seeks to maintain its operation competitive edge within the global markets. Emirates Airline believe that the workers are their greatest asset and their contribution cannot be underestimated because without them could not have been as successful as it is now (see Appendix Three and Four). Therefore, the principle of employee involvement has helped Emirates to attract highly talented employees and has also become the biggest employer in the United Arab Emirates. 3.2 Leadership Leadership according to Baird (2013) needs a clear vision and is needed so as to make an organization successful. Undeniably, all businesses need leadership so as to be able to realize organisational goals. Emirates leadership has for decades played a crucial part in the company’s continuing success. Under the leadership of the talented Chairman as well as Chief Executive, Sheik Ahmed Bin Saeed Al-Maktoum, Emirates Airline has evolved from a mere local airline that operated only in three destinations to a global airline operating in more than 70 countries. Effective leadership has made Emirates the biggest airline not only in Middle East, but globally. Evidently, successful leadership has been made possible by outstanding techniques of management, diverse workforce that is highly skilled and quality customer service. Leaders of Emirates airline treat all employees equally, are very hardworking and honest and always engage their employees in decision making process. Moreover, the leadership teams have successfully made the airline business attractive to customers. The style of leadership at Emirates Airline is democratic wherein leadership skills and ability are used to influence and motivate the employees’ thoughts and activities. The leaders utilize the social influence to motivate employees in realizing common goal. Emirates airline leaders always motivate their employees with the goal of encouraging workers to focus in making the airline successful in the market. 4.0 Optimal Implementation Plan to achieve Organisational Excellence/Stated Strategic Goals Emirates airline can achieve organisational excellence if it reduces its operational cost, which currently is exceedingly high only because of the huge investments the airline has made on aircrafts, technologies as well as improved quality services. Imperatively, emirates must cut its cost by developing and improving operations activities. Furthermore, Emirates Airline must improve the process of maintenance and its flight schedule. Emirates airline should implement ISO 9000 because it is crucial for quality. Majority of airline companies are offering services similar to that of Emirate Airline, but Emirates can emerge to be more successful if it offers services and products efficiently capable of succeeding in the airline market. With ISO 9000, Emirates Airline will be able to find where the problem lies, and be able to find solution. Imperatively, ISO 9000 can help Emirates improve efficiency, and consequently, profit maximisation. By implementing the ISO 9000 standards, Emirates Airline will successfully create a supply chain with integrity. The keystone of ISO 9000 is incessant improvement. Therefore, Emirates Airline should not be comfortable with the current conditions the process; instead, they must continually search for ways that will make its processes more effective and efficient. Therefore, ISO 9000 can help the airline achieve organisational excellence. Organisations without TQM are less competitive both at domestic and global market. In view of this, Emirates Airline should espouse an integrated approach of TQM as well as quality control or quality assurance so as to be able to offer quality services and products in the airline industry. There is substantial evidence proving that implementing TQM result in substantial improvements in realisation of quality requirements amongst airline companies. 5.0 Conclusion In conclusion, the report has discussed the impact of quality processes as well as quality management principles used at Emirates Airline and has suggested the optimal implementation plan to achieve organisational excellence/stated strategic goals. As mentioned in the report, implementing TQM is crucial in the current competitive world where customers expect quality services and products. As evidenced in the report, TQM is a reliable tool that has been used by Emirates Airline to bring about success. The airline understands that failure to focus on delivering quality can result in business failure. Quality services and producers have helped Emirates Airline maintain customer loyalty as well as satisfaction. Still, the company can improve its quality reputation by espousing the ISO 9000 standards. Appendices Appendix One – The stages of Quality Management and Characteristics Appendix Two - Mean Performance for Customer satisfaction Appendix Three - Employee Involvement & Empowerment Appendix 4- Employee Involvement & Empowerment through TQM approach References Amah, E., & Ahiauzu, A. (2013). Employee involvement and organizational effectiveness. Journal of Management Development, 32(7), 661 - 674. And, D. W., & Sohal, A. S. (2008). Total Quality Management and employees' involvement: A case study of an Australian organisation. Total Quality Management & Business Excellence, 19(6), 627-642. Baird, K. (2013). Raising the Bar on Service Excellence. London: eBookIt.com. Emirates. (2015). The Emirates Story. Retrieved from http://www.emirates.com/english/about/the_emirates_story.aspx Grunwald, G., & Hempelmann, B. (2010). Impacts of Reputation for Quality on Perceptions of Company Responsibility and Product-related Dangers in times of Product-recall and Public Complaints Crises: Results from an Empirical Investigation. Corporate Reputation Review, 13, 264–283. Gul, A., Jafery, S. A., Rafiq, J., & Naeem, D. H. (2012). Improving performance through Total Quality Management. International Journal of Economics and Management Sciences, 1(8), 19-24. Joiner, T. A. (2007). Total quality management and performance: The role of organization support and co-worker support. International Journal of Quality & Reliability Management, 24(6), 617-627. Omachonu, V. K., & Ross, J. E. (2004). Principles of Total Quality (3rd ed.). New Jersey: CRC Press. Ooi, K.‐B., Lin, B., Tan, B.‐I., & Chong, A. Y.‐L. (2011). Are TQM practices supporting customer satisfaction and service. Journal of Services Marketing, 25(6), 410 - 419. Sadikoglu, E., & Olcay, H. (2014). The Effects of Total Quality Management Practices on Performance and the Reasons of and the Barriers to TQM Practices in Turkey. Advances in Decision Sciences, 2014, 1-17. Read More