Introduction
This report explores the concept of quality management by developing an understanding of quality philosophies for products and services through a continuous improvement approach. The report covers methods and techniques, which are commonly applied in monitoring and controlling of quality.
Quality management
Every definition of quality management has to incorporate certain components, which are considered to be its pillars. The four components are quality improvement, control, planning and assurance.
Importantly, quality management goes beyond the quality of goods and services by focusing on the means applied to achieve the desired results. In order to realize consistent results, quality management aims at utilizing quality assurance and control of all the processes involved in production (Evans & Lindsay 2008, p. 12).
As mentioned before, quality management puts a lot of emphasis on establishing the needs of customers and offering solutions that are cost-effective and do not impose negative threats to the society.
Notably, planning of the life cycle of products and services is equally essential in addressing the issue of timely production and supply. It is worth noting that quality management has a host of benefits especially in enabling an organization to realize competitive advantage in the business market (Evans & Lindsay 2008, p. 13). For better understanding of how this works, several quality management frameworks have been reviewed below.
The Malcolm Baldrige National Quality Award
Presented by the American President annually, MBNQA recognizes organizations in the United States, which attain excellent levels of quality and performance (Evans & Lindsay 2008, p. 114). Six categories of organizations are usually considered and the winning category may receive up to three awards from the foundation.
The categories are: education, service company, healthcare, manufacturing, small businesses and non-profit making organizations. The award was launched in the year 1987, to increase awareness about the need for maintaining quality management of companies and acknowledge organizations, which excellently adopt and implement quality management systems in the country (Sitch 2012).
Additionally, MBNQA offers assistance to companies, regarding delivery of services and products that demonstrate ever-improving quality in order to satisfy the needs of customers and stakeholders, effectiveness and organization.
The award was named in recognition of Malcolm Baldrige, Commerce Secretary and a firm supporter of quality management (Evans & Lindsay 2008, p. 120). For its effective functioning, the award uses a seven-point criterion that enhances the process. This is referred to as the Baldrige criteria for performance excellence, as discussed below.
Under leadership, MBNQA considers how the management exercises its authority and community control of the organization. The second point is strategic planning. This focuses on ways a company is determined to initiate its strategic directions through planning (Malcolm Baldrige National Quality Award 2012).
Thirdly, MBNQA values customer and market focus, a concept that examines how to establish and nurture a concrete link with its customers. On the other hand, measurement, analysis and management of knowledge, focuses on the use of data by organizations to enhance certain processes and overall control of performance.
The sixth point narrows to human resource, depicting the empowerment and involvement of the entire workforce. The second last point is the management process. This involves the designing and management of a given product or service by an organization (Malcolm Baldrige National Quality Award 2012).
The last point of the criteria is the analysis of performance outcome with regard to an array of factors, including but not limited to HR and customer satisfaction. MBNQA promotes the achievement of sustainable results in a competitive world, augments strategic thinking, and promotes alignment of processes, customer resources and people (Evans & Lindsay 2008, p. 123).
The European Quality Award
The award was first presented in 1992 and recognizes organizations that support total quality management in their daily activities, geared towards production of products and services to customers (Evans & Lindsay 2008, p. 125). Throughout its operations, the European Foundation for Quality Management helps organizations to appreciate their strengths and weaknesses using a nine-point criterion.
It also ensures that its members develop an effective mode of thinking within and outside the company in serving its customers. Lastly, it focuses on adapting a system that integrates initiatives in order to eliminate the possibility of duplication and identification of weaknesses within an organization (The EFQM Excellence Model 2012).
An important functional component of this award is its excellence model, applied during assessment of organizations. It is intertwined with approaches and processes that are aimed at helping organizations to improve how they operate to realize better results (The EFQM Excellence Model 2012).
The nine-point criterion adopted by the model further helps companies to describe themselves in terms of achievements. These are: leadership, people, policy and strategy, partnerships, processes, people results, customer results, society results and performance results.
Apart from promoting excellence, the award allows identification of role models, who serve as benchmarks in impacting organizations through quality management and improvement (Evans & Lindsay 2008, p. 125).
The ISO 9000:2000
This is a family of internationally recognized quality management practices, support standards and systems. These standards and practices are to be observed by any organization regardless of its production capacity, private or even public (ISO 9000 essentials 2011). It also allows certification of organizations, which have proved to observe the standards through their daily business activities (Evans & Lindsay 2008, p. 130).
Other standards include but not limited to documentation, financial aspects and performance improvement among others. The main advantage of ISO 9000:2000 is that it emphasizes customer satisfaction, through tried and tested framework, coupled with process improvement to satisfy the needs of customers.
This framework designs organizations quality standards but gives firms the opportunity to execute them. This allows flexibility of organizations to improve performance based on their cultures (Evans & Lindsay 2008, p. 133).
The Canadian Awards for Business Excellence Award
Excellence is a very important element of Canadian organizations, which is enhanced through awards. The award is given annually, in recognition of businesses that exhibit excellent performance in terms of customer services, quality and a healthy workplace. The award has been presented since 1984 to world class organizations, which are private and public (Evans & Lindsay 2008, p. 126).
According to the award organizers, recipients are believed to be business role models through effective leadership. As a result, the existence of the awards has been applauded for promoting the country’s economy.
The main advantage of this award is that it helps organizations to improve their performance by enhancing principle and criteria-based approach of implementing excellence performance (Canadian Award for Excellence, 2011). The impact of this is reflected in tools, products and services, thus promoting improved service delivery among business organizations.
The award’s criterion is based on a 7-point scheme aimed at promoting excellence. These are: leadership, planning, customer focus, people focus, process management, supplier focus and the overall business management (Evans & Lindsay 2008, p. 126).
The Australian Business Excellence Awards
These awards are recognized by the Australian government as leading business awards in the country, and have been presented for almost twenty years (Australian Business Excellence Awards 2012). Through their presentation, successful organizations are recognized for their outstanding performance based on a particular criterion (Evans & Lindsay 2008, p. 127).
They present opportunities for Australian business organizations to compete for their excellence, based on international business requirements. These awards have been applauded for their contribution in the country.
The Australian Business Excellence Awards allow participants to obtain comprehensive feedback from organizers for the purpose of improving their performance. This feedback is usually essential since it is considered to be independent of manipulation by the organization. In addition, the awards help Australian companies and organizations to gain international recognition.
As a result, new customers get interested to source their services and products for being acknowledged by the awarding agency (Evans & Lindsay 2008, p. 127). Besides these benefits, the Australian Business Excellence Awards enable an organization to be differentiated from others as a performing company that promotes quality management. This distinction gives organizations reputation, thus winning the confidence of customers.
Lastly, the awards guarantee recipients a chance of joining the list of other organizations that may have won before (Australian Business Excellence Awards 2012). This builds the reputation standards of a company.
The Quality Awards in China
Like other countries in the world, China has not been left behind with regard to quality management. Through China Association for Quality, the country has established an awarding system that recognizes quality performers in the country. This was reviewed in the year 2001 to allow the state to supervise the quality at which organizations and companies operate (Evans & Lindsay 2008, p. 128).
The purpose of this initiative was to meet the needs of the market, which was characterized by competiveness among business operators. Additionally, it was meant to promote excellent quality business performance at the local level and accelerate the level at which domestic enterprises were expanding with reference to international competitiveness.
From the year 2001 to 2009, seventy two organizations have won the China Quality Award. Among these are Zhengtai Electric Company, Wuhan Steel & Iron, Shanghai International Airport and Baosteel (China Quality Award 2007).
It is important to underscore the fact that China Quality Award is only presented to organizations, which pursue management in an effective way (China Quality Award 2007). In this approach, such companies identify important quality management tools and adopt a relevant approach.
Importantly, the award is meant to augment competitiveness through high quality products and services to customers (Evans & Lindsay 2008, p. 128). This is essential for the companies’ adaptability to the market economy and the entire population. China Quality Award is regarded as the most prestigious award that recognizes organizations with sound quality programs and strategies.
The Deming Prize
This prize is arguably the highest recognition award for excellence in total quality management in the world today. Established in 1951, the award was initiated to commemorate Dr. William Edwards Deming, who significantly contributed to the Japanese sense of quality control after the Second World War (Evans & Lindsay 2008, p. 124).
Through his teachings, Japan established its quality control foundation that transformed its product quality to incomparable standards. Through direct and indirect impact, the application of the teachings continues to exert performance pressure on Japanese organizations.
Consequently, countless companies in Japan get challenged and inspired to adopt quality management strategies in their daily activities (What is the Deming Prize 2012). As a result, the challenge of winning the prize allows managers and organizations at large to explore quality management methodologies that are vital in attaining sustainable competitive advantage.
It is important to note that the Deming Prize is awarded to organizations, which have attained outstanding excellence through incorporation of Total Quality Management in a given year (What is the Deming Prize 2012). The award is also presented to individuals who have exhibited outstanding contributions in the field of Total Quality Management or in the implementation of TQM principles (Evans & Lindsay 2008, p. 124).
Like other awards discussed above, the Deming Prize has a criterion that is applied in determining the application of Total Quality Management Strategies in the management of organizations and businesses. The first aspect is the implementation in which the quality of services and products is ascertained to determine how effectively the principles are implemented (What is the Deming Prize 2012).
Additionally, it is crucial for a firm to minimize its rules and embark on quality management thoroughness. This approach saves resources and time. Thirdly, the use of Total Quality Management is highly treasured by the Deming Prize committee for a firm to earn high points and stand a chance of winning.
This contrasts the approach of several organizations that invest in technological methods of production (Evans & Lindsay 2008, p. 124). Lastly, it focuses on the application of TQM principles on both production and non-production parts of an organization for the purpose of reducing time and resource wastage.
ISO 10002 (Customer Complaints)
Complaints are common in every organization, whether private or public. However, they need to be handled in an effective manner, since they have the potential to affect the performance of an organization, especially if they are made by customers. According to ISO 10002:2004, a complaint refers to an expression made by a customer to register dissatisfaction with products or the entire process of production (About ISO 10002 2012).
This expression may require an explicit or implicit response depending on its nature. In handling complaint matters, it is imperative to underscore the high cost of recruiting new customers as compared to maintaining existing ones. Additionally, organizations that lose customers spend a lot of time and resources rebuilding their reputation and public image.
Based on the significance of customers, there is every need to handle their complaints effectively and in the most acceptable way. In the current business environment, characterized by product and service innovations, customer expectations are bound to be high. As a result, an effective complaints management system is a compulsory requirement for any firm like organization Y, which wishes to thrive in the business world.
This is crucial in protecting the organization’s brand in UAE and managing customer needs. ISO 10002 gives a guideline standard that is necessary for executing a complaints management system within an organization (ISO 10002 2012). In its integration, organization Y would be able to identity, understand and manage ways of dealing with complaints registered by customers without harming the organization.
ISO 10002 deals with complaints that are related to the quality of products in a given organization. Common issues handled include but not limited to operation, planning, maintenance and improvement (ISO 10002 2012). The process described is therefore recommendable as one of the options in quality management systems.
Whilst ISO 10002 is recommended for any size of an organization, it is important to mention that it does not work for disputes outside the organization or those that are employee-employer related. Additionally, it does not alter statutory or regulations that govern the running of the organization.
Its major task is therefore to provide required guidance in the structuring of a compliant-resolution process for companies. This system is regarded as one the most updated in dealing with customer management service.
The reason why organization Y should adhere to ISO 10002 is that dissatisfaction of customers has detrimental effects on the performance and the future of an organization (ISO 10002 2012). It is important to understand customer service standards and attend to their complaints through a recognized system.
Although there is always no satisfactory response to complaints, successful organizations understand complaints and know how to handle them, especially when customers are not convinced with the proposed solution (About ISO 10002 2012).
Besides guarding against negative effects caused by customers’ dissatisfaction, there is a host of benefits that organization Y is likely to realize. For instance, ISO 10002 promotes customer confidence, a major element in winning the loyalty of customers.
It also promotes improved efficiency, through elimination of errors that may lower the quality of products and services (ISO 10002 2012). Lastly, organization Y would have a better relationship with its customers through a customer-focused approach.
For organization Y in UAE to comply with ISO 10002, there are certain requirements that it has to achieve to experience these internationally recognized standards of Total Quality Management (About ISO 10002 2012). First, it would be important for the organization to establish the existing gap between its operating standards and ISO 10002 specifications. T
his gap would determine the level of need and effort required to serve customer complaints in the most appropriate manner. Additionally, organization Y needs awareness training for the management to understand the significance of having a well defined dispute-handling process for its customers.
Documentation design and finalization of the process is also important for recording and future consultation (ISO 10002 2012). At this level, the organization can implement the framework to win the confidence of customers in resolving customer-management issues.
Six-sigma quality management
Six-sigma is another tool commonly discussed in the context of quality management of organizations in the world today. What is it? It is described as a management strategy that was developed in 1986 by Motorola Company in the United States. Its popularity significantly rose after it successfully worked for General Electric in 1995 (Evans & Lindsay 2008, p. 134).
Its operation principle focuses on improvement of the process by eliminating causes of failure, defects and lowering the degree of variability in processes like business and manufacturing (Pros and Cons of Six Sigma Methodology 2011).
Although the model has highly been applauded by a section of managers as the most appropriate management, the issue remains debatable based on its advantages and problems that organization Y is likely to face by adopting it. The first advantage of Six Sigma is that it focuses on customer satisfaction through minimization of defects within the system.
This has been augmented by globalization, which allows quick dissemination of information and products that are error-free (Evans & Lindsay 2008, p. 134). As a result, it wins the confidence of customers. Its application also allows managers to identify segments of the industry, which require urgent attention depending on existing errors.
Importantly, achievements realized through Six Sigma can be transformed into financial results with a lot of ease. Moreover, organization Y would easily obtain its sigma value in order to evaluate its performance. Nevertheless, change can only be implemented based on the willingness of the management.
Lastly, the management of organization Y will not have to research about the effectiveness of this management tool since it is known to work in almost every organization in the world (Pros and Cons of Six Sigma Methodology 2011).
Besides the organizational advantages discussed above, Six Sigma has several financial benefits, which have been proven by experts. Firstly, it leads to an overall reduction in production cost, which is healthy for any organization. For instance, when causes of errors are eliminated, it is possible for an organization to perform effectively, thus utilizing every input.
Additionally, fewer resources would be required to produce a given unit of products due to increased efficiency in the production process (Evans & Lindsay 2008, p. 134). This is intertwined with the concept of profit making, which is always the main driving force for a business organization. When the output increases at a low cost, more profit would be realized due to optimum production.
Another benefit, which organization Y is likely to experience during the application of Six Sigma quality management is improvement in cash flow. This is explained by the additional revenue, emanating from an effective production process that has minimum errors to hamper efficacy.
Lastly, Six Sigma lowers the cost of risk management (Evans & Lindsay 2008, p. 134). In other words, production processes are adjusted to attain productive and safe status. This eliminates accidents that occur during production.
Six Sigma also has operational benefits that organization Y will enjoy during future application of the model. For instance, this model reduces the workload of employees. Through elimination of errors, employees are exposed to simple duties that do not require straining. Additionally, tasks are performed faster, due to increased efficiency in the production process (Pros and Cons of Six Sigma Methodology 2011).
Moreover, Six Sigma has the potential of increasing the motivation level of employees, which is triggered by improved workflow in an organization. As a result of optimized production processes, employees produce encouraging results, which earn them rewards and recognition.
Although Six Sigma is a good tool to be adopted by organization Y, there are several disadvantages surrounding it. For instance, the organization’s management requires training in order to implement it since it is a new idea in some regions. In this line of thought, the organization may have to incur consultancy costs before realizing its benefits.
Conclusion
From the above analysis, it is evident that quality management is an important aspect towards organizational success. This is because quality is a compulsory requirement for any kind of business or organization. Consequently, there are quality management frameworks that have been developed to recognize individual and corporate efforts.
References
About ISO 10002, 2012. Web.
Australian Business Excellence Awards, 2012. Web.
Canadian Award for Excellence, 2011. Web.
China Quality Award, 2007. Web.
Evans, J. & Lindsay W. 2008, The Management and Control of Quality, Thomson Publishing Company, Stamford.
ISO 10002, 2012. Web.
ISO 9000 essentials 2011. Web.
Malcolm Baldrige National Quality Award 2012. Web.
Pfeifer, T. 2002, Quality management, Hanser Verlag, Munich.
Pros and Cons of Six Sigma Methodology, 2011. Web.
Sitch A. 2012, The Malcolm Baldrige National Quality Award. Web.
The EFQM Excellence Model 2012. Web.
What is the Deming Prize, 2012. Web.