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Total Quality Management: Dynamic Business Environment

  0 Downloads   |   13 Pages 3,183 Words   |   Published Date: 04/10/2017

Question:

Discuss about the Report for Total Quality Management of Dynamic Business Environment.

 

Answer:

Introduction

The report provides information related to the implementation of total quality management in Smart Pack Ltd so that it can become a subcontractor of LEGO. Total quality management is a continuous effort of employees and management for improving the quality of the products and services offered by the organization by integrating its functions in order to achieve loyalty and satisfaction of customers for long term. Every single employee of the organization works towards the improvement of processes, services, work culture and systems for the attainment of success in the long term (Talib, Rahman & Qureshi, 2010). In the following sections, there will be a discussion about the process through which Smart Pack Ltd has implemented total quality management in order to provide high quality products to LEGO for the purpose of achievement of high level of customer satisfaction and loyalty.

Implementation of Total Quality Management in Smart Pack Ltd

For the purpose of manufacturing LEGO sets in small production series, there is an implementation of a total quality management tool in Smart Pack Ltd. Total quality management tool facilitates in controlling the quality of the products and helps in maintaining the standard quality of the product. This tool is applicable at every stage of the production process due to which it is proactive in nature rather than reactive. This tool helps employees to take actions for making improvements before the detection of the defects and shortcomings in the process. This total quality management tool results in increasing the expectations of customers by increasing their satisfaction level and reducing the defects in the products (Bon & Mustafa, 2013).

In addition to this, provision of proper training to employees regarding the use of total quality management tool facilitates in increasing the productivity and efficiency of the organization. This in turn, helps in increasing the sales and profitability of Smart Pack Ltd. There is a use of statistics, measurements and data for the identification of inefficiencies of processes and implementation of different tools for the elimination of the defects through reducing process variations (Gutiérrez, Torres & Molina, 2010). Along with this, total quality management is successfully implemented in Smart Pack Ltd as it facilitates in identifying the needs and requirements of the customers of the organization in order to meet them in an effective manner.

Along with this, it also emphasizes on bringing changes and improvements in the performance of employees by the way of promotion of proper team work and work culture which provides different opportunities to them for self development an increases their commitment towards the organization. Implementation of total quality management in the company helps in supervising the non productive activities and reducing waste by applying systematic approach which in turn reduces the cost and ensures safety in the organization (Anvari, Ismail & Hojjati, 2011).

Besides this, execution of total quality management approach helps in understanding and fulfilling the needs of the customers which also helps in gaining competitive advantage over other players in the market. This also results in improving the communication system of the organization as it provides a proper communication platform for the members of the organization. This helps them to share their knowledge among them in order to reduce waste and inefficiencies existed in different processes for the purpose of achieving excellence. Implementation of total quality management helps in continuous review of the processes in order to ensure high quality of products to be delivered to customers (Anvari, Ismail & Hojjati, 2011).

 


Total quality management also helps in identification, elimination and prevention of the mistakes in work processes, duplicate efforts, unnecessary tasks and redundant processes. It also results in increasing the production, improvement in existing products and extends the range of products by eliminating repairs and reworks. Total quality management also helps in bringing change in the work culture by providing training to employees regarding the quality and ensures that there is a concern related to quality not only with the quality department but with all the employees of the organization. It helps in elimination of the mistakes and improvement in the productivity so as to achieve the targets in a faster manner. Implementation of total quality management also helps in identification of the deficiencies of skills in the employees and eliminates it by provision of training. This also allows cross functional teams to solve their issues by sharing their experiences and skill sets which results in reducing employee absenteeism (Gould, 2013).

Total quality management emphasizes on continuous improvement at all levels of the organization i.e. from strategic planning and decision making to detailed execution of work elements on the shop floor. It results in gaining continuous improvement in people, technology, machine capabilities, processes and technology. It also includes five major areas of improvement related to capability improvement i.e. supply generation, demand generation, people capability, operations and technology (Zehir, et. al. 2012). In addition to this, the total quality management also helps in prevention and elimination of the mistakes caused due to faulty systems and processes by changing the process. Implementation of total quality management helps in increasing customer or supplier satisfaction by addressing their queries within a specified time. It also results in improving the organizational development by making necessary changes in the business processes and encouraging knowledge sharing between departments (Ahmad & Yusof, 2010).

By implementation of total quality management in the organization, there is an occurrence of less number of errors by employees, processes and faulty systems. This is because; there is an involvement of employees in each and every aspect of the business in terms of quality. There is an emphasis on maintaining a high quality at every stage of the process which in turn saves time and cost of the organization (Talib, Rahman & Azam, 2011).

Implementation of total quality management helps the organization to provide quality products and services to fulfil the needs and achieve high level of satisfaction. Besides this, implementation of total quality management in a sequential manner helps in providing information to employees regarding the achievement of the goal of the business and facilitates in elimination of the wastes (Chase, 2007). This is because; implementation of total quality management,   at every stage emphasises upon on maintenance of high quality and prevents the occurrence of the deviation.

Quality Policy:

The quality being the main principle of company’s operations it is required that customer expectations are identified in order to totally satisfy them. The companies mission, the vision and strategies supporting along with the tactical plans are well defined. These suggest every company processes are controlled that directly affects product reliability and service standard. Quality happens to be not only a promise but also decisive factor that ensures customer satisfaction and success of the company (Goetsch, Davis and Goetsch, 2010). Hence, Smart Pack with better quality policy develops the products and the services that are based in the needs of satisfying customer requirements.

Quality Manual: This is an official document that the business produces detailing the way the system related quality management operates. This quality manual shall include the quality policies and the goals of the company along with describing the system related to quality control, which involves the roles, the relationships of the staff, the procedures, the systems and alternative various other resources relating with the production of services and goods of high quality. This manual therefore helps the Smart Pack Ltd. to provide highest customer satisfaction with the application of the proper quality manual.

Quality Objectives: According to the Chase (2007), The TQM happens to organisational process, which involves actively each function and all the employees work towards the area of fulfilling the needs of the customers. This can be related to both the external and the internal environment. Therefore, the objective of TQM works towards continuously improving every work aspect by structured control, planning and improvement activities that emphasises on quality.

Quality Procedures: In TQM the procedures that are laid down focussing on the methods in the process of the production that provides with understanding of the customer requirements and the practices towards development of the standards continuously to achieve cost maximisation along with value that it brings to the customer.

Forms, records: These forms, the records help to control the process of the quality that is required to be achieved maintain close watch on the assurance and the control of these records with the purpose to achieve the desired result.

Moreover, implementation of TQM strategies; ensure standard quality and thus help employees to get the direction to complete the work. On the other hand use of TQM the company in increasing their productivity and commitment towards the organisation. Thus it has been said that TQM helps the company in maintaining a high quality of the products and increasing the customer base of the company. 

Thereby from the above mentioned, it has been intended that the management of the company such as Smart Pack Ltd continuously improve its exiting procedures and operations by incorporating the experience and knowledge and this can be effectively and successfully achieved with help of implementation of Total quality management. The benefits associated with the TQM are meeting client’s needs and demands, system to facilities enhancement, improvement company operations, focused upon the enhancement plan and reducing services and products costs. Therefore it has been seen that with helps of implementation of TQM the company effectively use benefits of TQM and generate better benefits.

 

Action Plan of Total Quality Management in Smart Pack Ltd

The different steps that are involved in the implementation of total quality management is listed below in a sequential manner. In order to implement total quality management in an effective manner in Smart Pack Ltd, the necessary steps to be included in the implementation are as follows:

  • Clear definition of vision, mission and values
  • Identification of critical success factors
  • Development of measures and metrics to track data related to critical success factors
  • Identification of key customer group
  • Receive customer feedback
  • Development of survey tool
  • Gather information from each customer group
  • Development of improvement plan
  • Collection of the information from key customer group again
  • Monitoring of critical success factors
  • Incorporation of satisfaction data into marketing plans (Oakland, 2014).
 

Steps involved in Total Quality Management in Smart Pack Ltd

The process followed in implementing total quality management in Smart Pack Ltd is as follows:

Clear definition of vision, mission and values: it is important for the management to provide clear information regarding the vision, mission and values to employees. The information related to vision helps them to gain knowledge regarding the main purpose of establishing a business (vision) and expectations of achievement (mission) and operational activities that helps in achieving it (values). It is important to create a process by the vision, mission and values can be clearly communicated to the employees of the organization. This facilitates in providing a direction to employees to achieve the common goal of the business. Along with this, it also helps in improving their productivity and efficiency (Mohapatra, 2012).

Identification of critical success factors: It is the responsibility of the management to identify the critical success factors as it facilitates in achieving the mission of the company by fulfilling the specific objectives. It also helps in gaining information related to the effectiveness of the organization in achieving its objectives. Different critical success factors would be process improvement, market share, customer satisfaction and financial performance. In context to Smart Pack Ltd, the critical success factor will be customer satisfaction. It is necessary for the company to fulfil the needs of LEGO by providing high quality LEGO sets to them (Mohapatra, 2012).

Development of measures and metrics to track data related to critical success factors: After the identification of critical success factors, it is requisite for the managers to introduce an appropriate measures and metrics to collect specific information and communicate it with the seniors (Gould, 2013).

Identification of key customer group: It is requisite for the managers to identify their key customer groups as the products and services are developed on the basis of the customer requirements. The key customer group for Smart Pack Ltd will be customers, employees and suppliers (Gould, 2013).

Receive customer feedback: It is important for the organizations to receive feedback from its customers regarding their satisfaction level. Feedback from customers in terms of quality, features, price and other parameters of the products and services delivered helps to examine the satisfaction level of customers (Holland & Rohe, 2012).

Development of survey tool: It is requisite for the manager to create a survey tool for the purpose of gathering information related to their requirements, tastes and preferences (Langford & Retik, 2012).

Gather information from each customer group: Besides this, it is also requisite to develop survey tool in a customized manner for each customer group. The information should be collected related to the perception of the customer group on current practice (Holland & Rohe, 2012).

Development of improvement plan: Gathering of customized information from each customer group on current practice helps in gaining knowledge regarding the areas where there is a requirement of improvement. After identification of areas of improvement a plan will be created for the purpose of bringing required improvement in the identified areas. It is important to create improvement plan in SMART goals format (Gould, 2013).

Collection of the information from key customer group again: After the implementation of the improvement plan, it is essential for the managers to collect the information regarding the practices carried out by the organization which in turn helps in gaining information that any improvement has occurred in their feedback. In addition to this, it also facilitates in tracking any changes that have occurred in their tastes and preferences over time and aligned their products and services to them (Drinan & Spellman, 2012).

Monitoring of critical success factors: Along with this, it is also requisite for the managers to monitor the critical success factors to ensure that the consistency of the progress towards the goals of the business. This results in correcting and prioritizing the objectives as per the requirements of the customer groups over a period of time (Arumugam,  Mojtahedzadeh, & .Malarvizhi, 2011).

Incorporation of satisfaction data into marketing plans: After the achievement of positive results from the data collected from different customer groups, Smart Pack Ltd can use the statistics for marketing as it results in increasing its customer base and market share. Along with this, the stakeholders of the company also become aware about their internal processes that help in delivering high quality products and services to customers (Balding, 2013).

In order to collect the information in terms of the feedback from customers and suppliers, employees can gather the information wh ich can be reviewed by the senior management in order to device strategy to bring improvement in different processes and programs (Balding, 2013).

 

Conclusion

It can be concluded that due to existence of dynamic business environment, it is vital for every organization to implement total quality management. Total quality management facilitates in bringing continuous improvement in different business processes, programs and procedures in order to ensure high quality to be delivered to its customers. Execution of total quality management is pervasive in the organization as it involves each and every member or employee of the organization in maintaining high standard of quality. It emphasizes on eliminating and preventing of the errors caused due to presence of faulty systems and human errors.

At Smart Pack Ltd, the total quality management has been implemented in a successful manner as it facilitates in gaining competitive advantage over its rivals by providing high quality products with minimum wastage. At every stage, employees put emphasis on maintenance of the superior quality of the product which eliminates the occurrence of repairs and reworks. Along with this, it also results in increasing the productivity and efficiency of the organization. Besides this, this report also entails information related to the different steps involved in the implementation of total quality management in the organization in an effective manner.

 

References

Ahmad, MFB & Yusof, SRM 2010, ‘Comparative study of TQM practices between Japanese and non-Japanese electrical and electronics companies in Malaysia: Survey results’ Total Quality Management ,vol.21, no.1,  pp.11-20.

Anvari, A, Ismail, Y & Hojjati, SMH 2011, ‘A Study on Total Quality Management and Lean Manufacturing: Through Lean Thinking Approach’, World Applied Sciences Journal vol. 12, no. 9, pp. 1585-1596.

Arumugam, DVC, Mojtahedzadeh, R & .Malarvizhi, DCA 2011, ‘Critical Success Factors of Total Quality Management and their impact on Performance of Iranian Automotive

Industry’ 2011International Conference on Innovation, Management and Service vol 14, pp. 312-316.

Balding, C 2013, Create a Great Quality System In Six Months: A blueprint for building the foundations of a great consumer experience, Cathy Balding Qualityworks PL.

Bon, AT& Mustafa, EMA 2013, ‘Impact of Total Quality Management on Innovation in Service Organizations: Literature Review and New Conceptual Framework Impact of Total Quality Management on Innovation in Service Organizations: Literature Review and New Conceptual FrameworkImpact of Total Quality Management on Innovation in Service Organisations: Literature Review and Conceptual Framework’, Procedia Engineering vol. 53, pp. 516-529.

Drinan, JE & Spellman, F 2012, Water and Wastewater Treatment: A Guide for the Nonengineering Professional, CRC Press, New York.

Gould, WA 2013, Total Quality Management for the Food Industries, Elsevier, Baltimore.

Gutiérrez, LJG, Torres, IT and Molina, VB 2010, ‘Quality management initiatives in Europe: An empirical analysis according to their structural elements’, Total Quality Management vol. 21, no. 6, pp.577-601.

Holland, D & Rohe, D 2012, Successful Organizational Change: Completing Healthcare Projects on Target on Time and on Budget, Xlibris Corporation, USA.

Hyötyläinen, T 2014, Steps to Improved Firm Performance with Business Process Management: Adding Business Value with Business Process Management and its Systems,  Springer, Finland.

Kaynak,E, & Rogers, RE 2013, Implementation of Total Quality Management: A Comprehensive Training Program, Routledge, New York.

Kiritharan, G 2013, Total Quality Management - A System to Implement, Lulu.com, Canada.

Langford, D, & Retik, A 2012, The Organization and Management of Construction: Managing the construction enterprise, Routledge, New York

Mohapatra, S 2012, Business Process Reengineering: Automation Decision Points in Process Reengineering, Springer Science & Business Media, London.

Morfaw, JN 2011, Project Sustainability: A Comprehensive Guide to Sustaining Projects, Systems and Organizations in a Competitive Marketplace, iUniverse, Bloomington.

Oakland, JS  2012, Oakland on Quality Management, Routledge, New York.

Oakland, JS 2014,  Total Quality Management and Operational Excellence: Text with Cases, Routledge, New York.

Talib, F, Rahman, Z & Azam, M 2011,’ Best practices of total quality management implementation in health care setting’, Health Marketing Quarterly, vol. 28, no. 3, pp.232-252.

Talib, F, Rahman, Z & Qureshi, MN 2010, ‘The relationship between total quality management and quality performance in the service industry: a theoretical model’, International Journal of Business, Management and Social Sciences (IJBMSS), MultiCraft , vol. 1, no. 1, pp.113-128.

Zehir, C, et. al,  2012, ‘Total Quality Management Practices’ Effects on Quality Performance and Innovative Performance’, Procedia - Social and Behavioral Sciences, vol. 41, pp. 273-280.

Chase, R. (2007). Implementing TQM. 2nd ed. IFS.

Hodgetts, R. (2011). Implementing TQM in small & medium-sized organizations. 3rd ed. New York: Amacom.

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