Total Quality Management Issues - Vinci Company - Case Study Example

Business Transformation Name Institution Business Transformation Introduction Total Quality Management (TQM) is a management procedure of an institution focused on quality founded upon the participation of every member focusing at long-run success via consumer satisfaction as well as remuneration to every member of the institution and the society as a whole (Prajogo, Daniel and Sohal, 2006). In addition, TQM is considered a method used to consistently enhance the quality of every organization, operations, products as well as their services. TQM is grounded on a set of rationales that looks at increasing the satisfaction of their stakeholders via better utilization of organizational resources. Then again, the level of impact of each quality management precept on institutional effectiveness is still under debate. Various studies have been conducted to investigate the effects of applying TQM principles on the general effectiveness as well as performances of an organization (Prajogo, Daniel and Sohal, 2006). Also, the success implementation of TQM in the construction industry has encouraged leaders to analyze whether it can be employed in the construction industry (Oakland and Marosszeky, 2006). For instance, Vinci is French concession and construction firm and is considered one of the largest construction companies in the world. They utilize TQM in their operations to improve their customer satisfaction, increase efficiency as well as improved construction organizational performance. This paper will highlight the current TQM of Vinci Company. It will also highlight the implementation of TQM and how it can be enhanced to improve their organizational performance. Furthermore, it will address the hard and soft issues affecting TQM. Total Quality Management The implementation TQM is identical to that of decentralized control techniques (Abdullah, 2010). The development of the Total Quality Management requires organizations to understand the customers’ definition of quality in terms of goods and services. When an organization focuses more on the quality of its production procedure, fewer quality challenges occur when the products reach the customer (Smart Investors, 2012). Leadership and management of any organization should therefore commit to measuring the performance of a commodity or a service in relation to its quality through customer surveys. This assists managers to establish design, practice and other processes that affect quality of a product or service. This would provide an organization with a room for continuous improvement. Total Quality Management Issues Soft Issues Leadership Lack of effective leadership may have a negative impact on the implementation of the Total Quality Management (Jaafari, 2001). For instance, excess layers of management may result to duplication of roles and responsibilities. As a result, subordinate employees leave the total quality implementation to the management. Total quality has been regarded as the responsibility of both the employees and the management (Jaafari, 2001). Due to the perception that management decision is always right, subordinate employees are thus forced to assume a peripheral responsibility inequality implementation. Owing to this, employees involved in product manufacturing and service delivery are not motivated to be effective in total quality issues upstretched by customers. This may be due to the fact that they do not feel as part of the team involved in quality management (Jaafari, 2001). In addition, leaders may not be committed to total quality management in several companies. In order to address leadership challenges that hinder TQM implementation, top management should encourage employee engagement in decision making which will motivate them into carrying out effective work (Jaafari, 2001). In addition, a cross functional systems that link activities together in the organization and break down blockades between employees and the management should be instituted (Jaafari, 2001). This would encourage cooperation between employees and management that would ignite a chain reaction leading to effective TQM implementation. Culture Every organization has a unique way of operation which is expressed in the context of culture. The process, practices, traditions and values entail factors that define how the management as well as the employees imparts the success of an organization through the achievement of organizational goals and objectives (Sebastinelli and Tamimi, 2003). Observing organization culture is very essential in the delivery of the vision and mission of an organization. Nevertheless, it is important to review and readjust the culture in order to be in line with the economic, social and technological changes in order to improve efficiency (Sebastinelli and Tamimi, 2003). Ineffective culture of an organization has made it very hard to implement total quality since the management of an organization may be rigid in terms of the ways they do things. An organization should build a culture that is supportive of Total Quality implementation (Mosadeghrad, 2014). Organization’s culture links with TQM fundamentals and enable an organization’s energies to focus on achieving total quality. Lack of management commitment A total quality management implementation is effective only when the management is committed beyond mere declarations (Sebastinelli and Tamimi, 2003). The success of the implementation requires devotion and articulate and resilient individuals. Lack of management can result from a number of reasons. Some hindrances may include the limited experience and focus on short-term goals (Sebastinelli and Tamimi, 2003). Top management are therefore required to embrace quality improvement initiatives regardless of the monetary requirements and time constraints. Competition alone should not be the only reason why management is committed to quality initiatives. In order to address management commitment issue, top managers should undergo training and education on TQM fundamentals (Mosadeghrad, 2014). This would enhance their attitudes and would encourage their engagement in QTM implementation. Overall, it would foster their creativity and create productive and healthy attitudes towards QTM. Hard Issues Abdication of responsibility Research conducted by Mosadeghrad (2014) have illustrated that very high failure of the implementation of the total quality management is brought about by lack of defined roles of the management and the employees. Sometimes in many organizations, the responsibilities of different groups of people involved in the implementation of total quality are not clearly defined due to poor communication and coordination (Sebastinelli and Tamimi, 2003). In addition, employees may abandon their responsibility in the implementation of TQM due to lack of interest of employees and their resistance to change. Poor delegation at every hierarchy level is another reason for the abandonment of responsibility in TQM implementation (Mosadeghrad, 2014). In addition, in order for the implementation of Total Quality to be effective, employees need to be educated and trained. Lack of education and training may bring about responsibility challenges. In order to address the responsibility challenges that may hinder effective implementation of Total Quality Management, the roles and responsibility of every employee in the organization should be clearly defined in advance to avoid any overlapping (Jacobsen, 2008). In addition, an organization should encourage effective and open communication between the employees and the management and among employees. This will enable clear sharing of information and interrelationship in the workplace will be enhanced. Employees should be engaged in TQM implementation in order for them to feel valued (Jacobsen, 2008). This will increase their morale which will increase their productivity. Structural issues Structures are important since ideas become fruition and organizations can be able to coordinate its operations and functions. The structure is central and is interconnected with every aspect of its organizational functionality (Jacobsen, 2008). Organizational structure in any organization determines how people communicate in the workplace, the managerial hierarchy, geographical operations and designs a strategic plan for effective organizational growth and development. Inappropriate organizational structure that does not encourage organizational flexibility may be a challenge in implementing TQM (Jacobsen, 2008). Structural barriers may be in form of the lack of physical resources and information system. A structure that does not encourage technology use may hinder TQM implementation. In order to overcome this challenge, the structure of an organization should encourage motivation and effective leadership that form the basis of organizational success (Mosadeghrad, 2014). An organizational structure should emphasize on empowerment, motivation and teamwork. This would enable very individual in an organization to be involved in the implementation of the Total Quality Management and ensures management commitment (Mosadeghrad, 2014). Total Quality Management in Vinci Company The development of TQM started to be applied in the manufacturing industry. Various literature addresses that TQM cannot be used in any other industry other than the manufacturing industry (Love et al., 2000). The fundamental precept of TQM is to attain customer satisfaction and this has been vividly demonstrated by Vinci Company. The introduction of TQM to Vinci Company started off as a very challenging task since the construction industry is considered a one-time process. Therefore, Vinci Company is deemed unique in the following ways: mobility of staff; geographical dispersion; recurrent prototyping of projects and contractual relationships to name a few. There are a number of elements of TQ that has been utilized by Vinci Company. They are as follows: Leadership and Management Commitment All implementation decisions in the company commenced with leadership as well as management commitment. This element is substantial in the success of a TQM program. Management in Vinci have a complete understanding of TQM therefore, they couple it with commitment so as to ensure effective running of their TQM (Sha'Ri & Elaine, 2000). The advisory committee within the company is responsible of initiating and creating policies as well as procedures that are required to run the TQM process. The committee members ought to have the capability of ascertaining the needs of the institution, improvement opportunities as well as goals for improvement go-aheads. Furthermore, TQM needs staff member’s participation at all times (Love et al., 2000). Therefore, Vinci Company continuously encourages the change of workplace environment so as to change the behavior of their employees encouraging improvement. Therefore, for Vinci Company to continue offering quality work and show improvement, their management ought to learn how to effectively deal with challenges, cause change and they shouldn’t cope with existing organizational practices (Love et al., 2000). Training Training is a key component of any successful TQM program. Vinci Company appreciates the importance of training (Mathews et al., 2001b). Training should target every individual within the organization ranging from the top management all the way to the casual laborers. Training programs in Vinci Company equips their employees with basic knowledge with assists them to connect to various advanced topics. Team training programs are very significant since they equip employees with values such as team problem solving, interaction, cause-and-effect analysis, interpersonal skills and collection as well as evaluation of quantifiable information to name a few. This improves the coordination of operations amongst employees within the company increasing their performance and productivity (Mathews et al., 2001b). Communication Proper communication is fundamental in attaining TQM levels of performance. Vinci Company encourages their employees to practice their communication skills. This practice helps the employees get rid of fear thus encouraging their participation in the company’s works (Sha'Ri & Elaine, 2000). TQM is a cognizant process of improvement therefore, good communication and feedback system are significant to deliver ideas to the management and integrate necessary changes within an organization. Customer Satisfaction The most important objective of TQM is attaining customer satisfaction. Vinci Company has been able to meet their customer’s demands simply by identifying the needs and wants of their customers and delivering them to their standards (Sha'Ri & Elaine, 2000). Customer satisfaction ought to be limited to acquiring customer expectation, although the company should try and surpass them through continuous improvement (Love et al., 2000). Such activities will assist the company recognize sectors of dissatisfaction and hence device methods to curb the sources of dissatisfaction. Implementation of TQM in Vinci Company Implementation of TQM especially within the construction industry is a very challenging undertaking. There is not procedure that can be used to implement TQM. In order to implement TQM within the company, it first has to decide where they can start from (Pheng and Teo, 2004). This has been proven to be very effective yet a very difficult step to undertake. So as to come up with a successful TQM implementation, a systematic, and pragmatic as well as a structured approach is required (Sha'Ri & Elaine, 2000). The managers within the company ought to assess the existing operations and hence, make plans on the basis of any emerging problems that they find. They are then required to document every present procedure, collect data and recognize problems. They should then study this information and use them to come up with plans for improvement together with ad hoc measures to estimate their performances (Pheng and Teo, 2004). The next step to implementing TQM is instituting the plan. During these operations, managers ought to document every change that are made and then collect data for assessment. After collecting the data, they conduct studies which will give them a guideline on whether their plans of implementing TQM will achieve the goals and objectives of the company (Motwani, 2001). Finally, the last step of implementing TQM is to act on the ground of results obtained. The most effective way of attaining this is by communicating the results various members of the in the company thereafter, implementing the new method and checking if it will be successful (Motwani, 2001). Effectiveness of Total Quality Management Total Quality Management has constantly improved the operations of organizations as evident from Vinci case (Johnson and Kleiner, 2013). TQM has assisted in identifying the needs of the customers. In doing so, organizations are able to redesign their products in order to meet these needs. Adverse attitudes of top management and the employees may hinder the success of an organization (Rumane, 2010). TQM bring about attitudinal changes that improve the performance of teams and offer an excellence opportunity for self-development. Organizations strive to improve productivity in order to increase profitability and reduce expenditure. TQM implementation has enabled the reduction of waste and inefficiency by establishing systematic approach (Johnson and Kleiner, 2013). This has enabled organizations achieve cost-effectiveness. TQM has enabled Vinci understand its customers and this has provided opportunity for the company to gain a competitive edge over the competitors. Vinci can also continuously review its performance progress through its TQM program. This enable them made necessary changes that can improve their performance (Johnson and Kleiner, 2013). Conclusion Total Quality Management is the management initiatives utilized to improve the quality, performance as well as the productivity in an organization. TQM is an essential part of an organization that establishes quality required by the customers. An example of a company that has developed Total Quality Management program in its operations is Vinci Company. In the company, customer satisfaction is very important. The company endeavor to produce quality products and services to employees in order to satisfy their needs. Vinci has an advisory committee responsible for initiating and creating policies and procedure needed in TQM process. Vinci has implemented TQM program in its operations that has contributed to its success over the years. However, there are many challenges that may hinder ineffective TQM implementation. For instance, lack of leadership commitment, structural barriers, poor leadership and abdication of responsibilities may bring about many implementation challenges. References Abdullah, A. (2010). Measuring TQM Implementation: A Case Study, Measuring Business Excellence, 14(3), 3-15. DOI http://dx.doi.org/10.1108/13683041011074173 C. Jacobsen, J. (2008). Avoiding mistakes of the past: lessons learned on what makes or breaks quality initiatives. The Journal for Quality and Participation, 31(2), 4-9. Jaafari, A. (2001). “Management of risks, uncertainties and opportunities on projects: time for a fundamental shift”. International Journal of Project Management, 19(2), 89-101. doi:10.1016/S0263-7863(99)00047-2 Johnson, S. & Kleiner, B., (2013). TQM can encompass success. Industrial Management, 55(2), 27-30. Love, P.E.D., Li, H., Irani, Z. and Faniran, O.O. (2000). “Total quality management and the learning organization: a dialogue for change in construction”, Construction Management and Economics, 18(3), 321-32. DOI: 10.1080/014461900370681 Mathews, B., A. Ueno, Z. Periera, G. Silva, T. Kekale and M. Repka, (2001b). Quality training: findings from a European survey, The TQM Magazine, 13(1), 61-68. DOI: 10.1080/09544120120066082 Mosadeghrad, A. (2014). Why TQM programmes fail? A pathology approach, The TQM Journal, 26(2), 160-187. DOI http://dx.doi.org/10.1108/TQM-12-2010-0041 Motwani, J. (2001). Critical factors and performance measures of total quality management. The TQM Magazine, 13(4), 292-300. DOI http://dx.doi.org/10.1108/13683040010362300 Oakland, J. and M. Marosszeky, (2006). Total quality in the construction supply chain. Jordan Hill, Oxford: Elsevier ltd. (https://books.google.com/books?isbn=1136354336) Pheng, L.S. and A.J. Teo, (2004). Implementing Total Quality Management in Construction Firms. J. Management in Engineering ASCE, 20(1), 8-15. http://dx.doi.org/10.1061/(ASCE)0742-597X(2004)20:1(8) Prajogo, I., Daniel and Sohal S. A. (2006). The relationship between organization strategy, total (TQM) and organization performance-the mediating role of TQM. Operational Res., 168(1), 35-50. doi:10.1016/j.ejor.2004.03.033 Rumane, A.R. (2010). Quality Management in Construction Projects. CRC/St. Lucie Press, Boca Raton, FL. (https://books.google.com/books?isbn=1439838720) Sebastianelli, R., Tamimi N. (2003). Understanding the obstacles to TQM success, The Quality Management Journal, 10(3), 45-47. Sha'Ri, M. & Elaine, A. (2000). Total quality management implementation frameworks: Comparison and review, Total Quality Management, 11(3), 281-294 DOI: http://dx.doi.org/10.1080/0954412006801 Smart Investors, (2012). Barriers to Total Quality Management Implementation, Online Article, Retrieved from http://smartinvestorsreports.blogspot.co.ke/2012/03/barriers-to-total-quality-management.html Read More