Enn515 Total Quality Management - Assessment Answers

Answer:

Introduction

Total quality management is a concept that originated in 1950s and started gaining popularity in the early 1980s. A company is required to maintain total quality in terms of attitudes and culture that aims at providing the best quality products and services to the customers in order to satisfy their needs (Moccia, 2016). All aspects of the quality is required in the culture of the company’s operations. This involves correct performance of the processes from very first time along with eradication of the waste and defects from the operations. Total Quality Management or TQM assist the employees and the management in making active participation in the process of bringing continuous improvement in the products and services of the company. TQM comprise of the combination of quality and management tools that aims at reducing losses due to wasteful practices and increasing business.

TQM can be defined as the management philosophy that aims at integrating all the functions of the organization (finance, marketing, engineering, design, customer service, production, etc.) for the purpose of focusing on meeting organizational objectives and customer needs.  Ford Motor Company, Toyota Motor Company and Motorola are the examples of the company which have successfully implemented TQM in their business (Goetsch & Davis, 2014). This report focuses on TQM rationale, outcomes and implementation plan.

TQM Rationale

The rationale behind implementing TQM in the business is the minimization of dysfunction and errors in the production cycle i.e. planning, production, maintenance, etc. When a business implements total quality management in the organization, its focus shifts from detection of defects in the product to the evaluation of all the production phases. The adoption of TQM approach also has a positive impact on the competition (Garza- Reyes, Rocha- Lona & Kumar, 2015). The main concept hidden behind total quality is that control over the final product does not add quality rather quality is to be developed at every step through the entire product cycle. The modern concept of quality provides that only tangible things are not covered under the heading product and it also includes intangible things such as delivery of a service. A variety of elements are embraced by the total quality of goods, services and products. Other evaluations and controls related to traditional quality control are not overshadowed by these controls related to whole production cycle. The product shortcomings that arise from default in the design will not be compensated by careful quality control. Moreover, there will be no efficiency in the design if it is carried out by staff that is poorly trained and makes the use of unsuitable tools (Valmohammadi & Roshanzamir, 2015).

A quality management system is introduced in the organization for the purpose of improving organizational effectiveness, customer satisfaction, compliance, organizational culture and documentation. In other words, real value and benefits are delivered by such total quality management system to the organization. However, it is often assumed by some organizations that the use of quality management systems for total quality management will become a never ending expense for the business for ensuring that the products are meeting the customer expectations and are not defective (Akgun, Ince, Imamoglu, Keskin & Kocoglu, 2014).

In other words, a fundamental approach is represented by quality for the purpose of satisfying the clients and making justification for the market presence. This, in turn, provides a new way for managing the organizations. Underpinning quality is described as the global efficiency principle which is based on getting things done correctly at the first time itself. Therefore, this is a new and broader way of achieving the best quality which also affects every process and aspect of the organization. This philosophy has some basic elements which are:

Total customer priority- this provides that the customer is the central focus for the companies. The companies cannot imagine their survival without its customers, therefore, it aims at satisfying their requirements at the highest priority (Saad & Asaad, 2015).

Ongoing improvement of every activity- the expectations of the customers keeps on growth. As soon as they get satisfied with one of their needs, another need emerge. Therefore, the quality is required to be improved on constant basis.

Constant and Direct effort from Top Management- total quality can attain successful results only when continuous leadership is provided by top or upper management.

Staff Involvement- all the resources of the organization are required to be entailed in the Total quality management therefore, it needs involvement of every member of the organization to sow active participation in the improvement process.

Regard for Processes- This can be regarded as mastering every process and gaining knowledge regarding how to govern it which, in turn, demands transparency and communication (Honarpour, Jusoh & Md Nor, 2018).

Internal Customer Focus- the satisfaction of the external customers can be guaranteed only when the internal customers are made happy with their roles in the organization.

Prevention rather than Cure- this requires the careful analysis of the root cause of the problems in order to deal with them effectively (Teh, Yong & Lin, 2014).

Scientific Approach for Problem Solving- cause and effect relationship can be effectively studied only with the help of adopting scientific approach to problems. PDCA (Plan, DO, Check, Act) can be utilized as a useful tool for this purpose.

Continuous training- since training is an open ended and an ongoing process, it will play an important role enabling and motivating the employees to show active participation in the activity.

Improvement can be used as the synonym of total quality management, however, it is impossible to launch h process of improvement without addressing the issue associated with the needed know- how, in terms of processes and products (Huo, Han & Prajogo, 2014).

The managers face difficulties in competing on these selected dimensions namely performance, features, reliability, conformance, durability, serviceability, aesthetics and perceived quality (Garvin, 1987). The capability maturity model can be used as a set of tools involving a maturity questionnaire which can play an important role in the software process improvement. It will involve number of small evolutionary steps instead of   revolutionary innovations. The framework provided by the model can be used for the purpose of organizing these steps into maturity levels for constant process improvement. The theories of TQM are related to customer focus, continuous improvement, team involvement, etc. Moreover, the principles of TQM are process centered, employee involvement, customer focus, integrated system, systematic and strategic approach and communication (Appendix 1).

TQM Outcomes

The adoption of total quality management in an organization results in a number of positive outcomes for the business. First of all, TQM assists a business in strengthening the competitive position in the marketplace by way of improving its operations. Moreover, it also develops adaptability in the organization to deal with the changes taking place in the market and in government regulations on constant basis. The defects and waste is eliminated in the organization. The enhanced competitive position of the organization also improves its market image. This further leads higher profitability of the business, better cost management and reduced costs. Slowly and gradually, the customer satisfaction and focus also improves along with increased retention and loyalty of the customers (Oakland, 2014).

Other advantages of the implementation of TQM in the organization includes improved employee morale, increased job security, innovative and improved process and enhanced stakeholder and shareholder value. The goal or target of a firm behind the adoption of TQM includes process and knowledge management which ensures that employees obtain consistent, reliable, timely, and accurate information and data which if required for the effective and efficient performance of the tasks. This helps in achieving the benefits expected from TQM. It will further maintain the data on quality for the effective management of the processes. Control of the processes leads to its improvement on periodic basis. There is a positive relationship between process and knowledge management and performance (Talib & Rahman, 2015).

Furthermore, if TQM is implemented, the supply chain management is enhanced and results in streamlining and reducing the supplier base for the purpose of facilitating the effective management of supplier relationship, development of strategic alliances with the suppliers, ensuring the meeting of expectation by working with the suppliers and involving the suppliers in the early stages of the process of product development for taking the benefit of expertise and capabilities. There is also a positive relationship of supplier quality management with the operational performance of the business, inventory management performance, overall firm performance and innovation performance (Chuang, Chen & Tsai, 2015).

The most important target of a business is to focus on serving its customers in a proper manner. For this, the first requirement is knowing the expectations of the customers along with their demands from the products of the company in order to satisfy their needs. When a company makes customer focus efforts, needed arrangements can be made in the production for the purpose of meeting the expectations, needs and complaints of the customers. This, in turn, encourages the businesses to make the production of reliable and high quality products on timely basis with increased productivity and efficiency. Meeting of customer expectations increases their satisfaction level and therefore increases the sales and market share of the business. In other words, customer focus is also positively linked with performance (Ross, 2017).

TQM Implementation Plan

However, the goals and targets set by the company only with the help of implementation plan.  The implementation process of ISO 9000 depends on the size of the business, sophistication of current quality programs, and complexity of the processes. The Quality system that is based on ISO 9000 guidelines can play an important role in supporting the business of the organization. The compliance of ISO 9000 formally means   that a set of activities are carried out by an enterprise which are based on proper planning, documentation and monitoring and is in accordance with precise standard methodologies (Hoyle, 2017). This, in turn, plays a significant role in ensuring the quality of the products and services that are going to be supplied by the organization. Proper standards are necessary for the purpose of bringing continuous improvements in the organization and to avoid risk that changes and innovative processes remain confined to specific people and stops when the organization is left by these individuals.  A way is represented by the standard methodologies for the purpose of sharing the best practices with their employees and provides a proper definition for ‘minimum guaranteed quality level for the service or the product while promoting effectiveness and transparency. Therefore, compliance principle forms the basis for ISO 9000 guidelines and aims at ensuring the quality of the processes undertaken by the organization and focuses on the satisfaction of the customers. A mark of conformity is borne by the ISO 9000 guidelines that can also be referred o as the sign of quality to the world outside the organization. A number of requirements are prescribed by it which, in turn, allows better and efficient service to be provided by the supplier (Al- Dhaafri, Al- Swidi & Yusoff, 2016). 14 steps are required to be followed for the implementation of ISO 9000 quality management system.

In the first step, the commitment of the top management is needed. The top management should further consider actions like ensuring participation in the improvement practices, leadership by example and creation of an environment which facilitates the involvement of people. In the next step, the implementation team is required to be established. This will also require the appointment of Management Representative for the purpose of acting as the coordinator to the plan and overseeing the process of implementation. A professional training organization should also train the members of the implementation team in accordance with the ISO 9000 quality management systems (Chatzoglou,  Chatzoudes & Kipraios, 2015).

 The next step is to initiate the ISO 9000 awareness programs which are conducted with the basic purpose of communicating the aims of ISO 9000 quality management system to the employees. The aim of this program is also to communicate the advantage offered by it to the organization, customers and the employees, the manner of its working along with their roles within the system. Moreover, training should be provided regarding the basic concepts of quality management systems and their impact on the organization’s strategic goals.  After this, initial status survey should be conducted such that there is no duplication of work. This, in turn, ensures the conformity with the standards. The next requirement is the creation of a documented implementation plan for the purpose of addressing all the non- conformities (Heras- Saizarbitoria & Boiral, 2015). Then, the quality management system documentation is developed which includes documented statements of quality objectives and quality policy. It further aims to ensure effective operation, planning and control of the processes. After generating the documentation, it can be controlled with the help of a documented system. Such systems are easy to operate and simple. Its implementation can be ensured all at once in the organization or in different phases so that its monitoring can be done effectively. Regular internal quality audits can be used for checking the effectiveness of the systems installed. It will also make sure that the system is conforming to the planned arrangements (Fu, Chou, Chen & Wang, 2015).

The use of management review at the later stage will ensure the adequacy, suitability and effectiveness of the quality management system. When no deficiencies are visible, certification can be obtained, however, before that, pre- assessment audit should be conducted with the help of a qualified and independent auditor. At the end, certification to ISO 9000 should be obtained and continuous improvement should be ensured (Kartha, 2016).

Conclusion 

Therefore, it can be included that TQM is a management philosophy that aims at integrating all the functions of the organization (finance, marketing, engineering, design, customer service, production, etc.) for the purpose of focusing on meeting organizational objectives and customer needs. The basic elements of the philosophy includes customer priority, ongoing improvement of every activity, constant and direct effort from top management, staff involvement, regard for processes, internal customer focus, prevention rather than cure, scientific approach for problem solving and continuous training.  The rationale behind implementing TQM in the business is the minimization of dysfunction and errors in the production cycle i.e. planning, production, maintenance, etc. The adoption of total quality management in an organization results in a number of positive outcomes for the business. The implementation process of ISO 9000 depends on the size of the business, sophistication of current quality programs, and complexity of the processes. At the end, certification to ISO 9000 should be obtained and continuous improvement should be ensured.

References

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Al-Dhaafri, H. S., Al-Swidi, A. K., & Yusoff, R. Z. B. (2016). The mediating role of total quality management between the entrepreneurial orientation and the organizational performance. The TQM Journal, 28(1), 89-111.

Chatzoglou, P., Chatzoudes, D., & Kipraios, N. (2015). The impact of ISO 9000 certification on firms’ financial performance. International Journal of Operations & Production Management, 35(1), 145-174.

Chuang, S. S., Chen, K. S., & Tsai, M. T. (2015). Exploring the antecedents that influence middle management employees' knowledge-sharing intentions in the context of total quality management implementations. Total Quality Management & Business Excellence, 26(1-2), 108-122.

Fu, S. L., Chou, S. Y., Chen, C. K., & Wang, C. W. (2015). Assessment and cultivation of total quality management organisational culture–an empirical investigation. Total Quality Management & Business Excellence, 26(1-2), 123-139.

Garvin, D. (1987). Competing on the eight dimensions of quality. Harv. Bus. Rev., vol 65(6) pp. 101-109.

Garza-Reyes, J. A., Rocha-Lona, L., & Kumar, V. (2015). A conceptual framework for the implementation of quality management systems. Total Quality Management & Business Excellence, 26(11-12), 1298-1310.

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.

Heras-Saizarbitoria, I., & Boiral, O. (2015). Symbolic adoption of ISO 9000 in small and medium-sized enterprises: The role of internal contingencies. International Small Business Journal, 33(3), 299-320.

Honarpour, A., Jusoh, A., & Md Nor, K. (2018). Total quality management, knowledge management, and innovation: an empirical study in R&D units. Total Quality Management & Business Excellence, 29(7-8), 798-816.

Hoyle, D. (2017). ISO 9000 Quality Systems Handbook-updated for the ISO 9001: 2015 standard: Increasing the Quality of an Organization’s Outputs. Routledge.

Huo, B., Han, Z., & Prajogo, D. (2014). The effect of ISO 9000 implementation on flow management. International Journal of Production Research, 52(21), 6467-6481.

Kartha, C. P. (2016). On the impact of ISO 9000 certification on organisations: a comparative study. Journal for Global Business Advancement, 9(4), 402-411.

Moccia, S. (2016). The role of value and virtues in TQM: an overview of literature. The TQM Journal, 28(2), 216-234.

Oakland, J. S. (2014). Total quality management and operational excellence: text with cases. Routledge.

Ross, J. E. (2017). Total quality management: Text, cases, and readings. Routledge.

Saad, R., & Asaad, M. N. M. (2015). Does organizational culture moderate the relationship between ISO 9000 soft factors and organizational performance?. The Journal of Developing Areas, 49(3), 379-394.

Talib, F., & Rahman, Z. (2015). Identification and prioritization of barriers to total quality management implementation in service industry: an analytic hierarchy process approach. The TQM Journal, 27(5), 591-615.

Teh, P. L., Yong, C. C., & Lin, B. (2014). Multidimensional and mediating relationships between TQM, role conflict and role ambiguity: A role theory perspective. Total Quality Management & Business Excellence, 25(12), 1365-1381.

Valmohammadi, C., & Roshanzamir, S. (2015). The guidelines of improvement: Relations among organizational culture, TQM and performance. International Journal of Production Economics, 164, 167-178.