Management is the way most businesses act in order to accomplish goals and objectives making use of their resources more efficiently. According to Henri Fayol the five functions of management are: planning, organising, commanding which has been replaced by forecasting nowadays, co-ordinating and controlling.
Quality Management is therefore important once it is concerned with the continuous improvement of quality of products/services, taking into consideration all aspects involved from the input of raw materials to customer service, assuring quality consistency to customers.
Many are the approaches to Quality Management and the nature of the business can determine the best suitable approaches in specific situations. Knowing that the organisation Sarah works for is within the manufacturing industry other approaches could have been used by her towards quality management such as: lean production, KAIZEN, acquirement of quality standards, EFQM model and TQM.
Lean production is an approach that aims to achieve competitive prices and high quality by making use of organisational resources more efficiently. Within this approach time, space, people, materials and capital waste are minimised. Nissan and BMW are two examples of big companies that applied this approach within their businesses. Within lean production tools such as JIT (just-in-time) and RFT (right-first-time) can be applied to maximize resources usage. Lean production approach could have also been successfully applied to Sarah’s organisation.
KAIZEN is a Japanese word that means the process of constantly seeking improvement. Within this approach wastage is reduced, inconsistency of machinery and employees are overcome and excessive demands are reduced.
Quality standards are accepted standards which control the quality of products/services either nationally and/or internationally. They are: B.S 5750 (in Britain), E.N 029000 (in Europe), ISO 9001, ISO 1400 (internationally), amongst others. These awards have been acquired by many organisations around the world such as Kimber Wetsuit Company, Philips, Motorola, Nissan, Colgate, KPMG, amongst others.
Organisations that have these quality standards are better recognised, seen as trustful and consistent and are, therefore, more likely to acquire market share, increase their profits and conquer loyal customers. The world has been seeing an increase of these certificates since 1990. ISO 9000 certificates issued until 2000 are illustrated below.
Source: www.qualitywaves.com
The EFQM excellence model could also have been used by Sarah with the organisations she works for. It has been used as a management framework by over 30.000 companies in Europe and beyond. It helps organisations to identify their strengths, gaps within their mission and vision, facilitates an effective internal and external communication, integrates activities and provides a structure for a management system within the organisation. Its diagram is illustrated on the next page.
Source: www.blog.capablepeople.co.uk
The efficient use of the 5 enablers will result in high performance and quality, constant innovation and learning within the organisation.
TQM (Total Quality Management) is an approach that aims to manage all the aspects of a business in order to satisfy customers completely. It involves all employees and constant improvement of quality; it links marketing and business activities within the quality chains; it aims to reduce wastage by eliminating its causes; it assesses core activities, support activities and discretionary activities so that conformance of quality is promoted and achieved. TQM could have also been used by Sarah whereby all aspects of her organisation would be integrated by a management system that establishes an acceptable level of quality based on customers’ requirements.
4. The benefits of Quality Circles for Sarah’s organisation.
The first signs of benefits of quality circles implemented by Sarah in her organisation have already taken place. The use of the fishbone tool assisted Sarah’s quality group during the process of brainstorming and development of new ideas.
Other departments of the company, the production department more specifically, have shown signs of resistance towards Sarah’s approach. People are usually afraid of changes and resistant to support new ideas. However Sarah’s initiative culminated with the improvement in the hedge trimmer which impressed the Board of Directors and Chairman.
Sarah’s organisation already operates with nearly faulty-free products and the quality group can bring even more improvements to the company’s products. Sarah’s voluntary group has 8 skilled and truly interested individuals that meet after working hours. They work together identifying problems and its causes in order to suggest alternatives to improve organisational processes.
The first benefit of Quality Circle group for Sarah’s organisation is the self-development of the group: they went on a weekend management training and brainstorm on a regular basis improving their confidence, commitment, positive approach to change, enhancement of managerial skills and capabilities amongst others. These individuals become leaders that can successfully guide the organisation towards further development and achievement of targets and objectives.
Another benefit to Sarah’s organisation is the integration amongst departments and activities. Quality Circles emphasises the importance of a positive relationship and cooperation within the company. A cooperative work environment will then lead to a team atmosphere where individuals perform at their best and help each other.
Therefore, performance will improve and efficiency will increase within Sarah’s organisation. All of these benefits will result in a friendly work environment, less wastage, higher productivity and improved quality of products.
Individuals who were resistant at the beginning may see Sarah’s initiative with different eyes after feeling more motivated and committed by being part of a team that shares common objectives. Individuals will feel responsible towards the quality improvement of the products they produce, will express their ideas and opinions and in exchange will be taken into consideration and informed of any changes and success.
Quality Circles will motivate synergy within the workplace and regular meetings and analysis of employees’ ideas and opinions will lead to new ideas, innovation and problem-solving. In the long run improvement after improvement will confer a competitive advantage to the organisation Sarah works for. Her organisation can achieve quality standards certificates, become more profitable, be well recognised regionally and may also expand internationally.
Hence, Sarah’s organisation can explore many benefits from Quality Circles and differentiate itself within the industry it operates in.
5. Other benefits of Quality Management.
Quality Management is beneficial for both business and services. The service sector is different from the products one and so are the benefits of Quality Management to companies that operate in the service sector.
Service is intangible, perishable, its quality levels are determined by customer’s personal impressions. Loyalty to a service can be harmed easier than loyalty to a product. There are gaps in perceived quality to a service. Once people are involved in the process of servicing it can easily be inconsistent; one employee may have more knowledge of a service than others or act differently to customers according to his/her mood for example.
If one part of the service was not satisfactory to the customer it may ruin his entire perception of the servicing process which may lead to dissatisfaction and the customer may never return. It is much easier to think of bad quality service examples than good quality ones, therefore, quality management within a service context is more complicated.
According to ServQual model there are 5 gaps during the service process that may lead to customer disappointment. The model is shown on the next page.
The ServQual model (Gaps of the service process)
Source: www.g-cem.org
A product can be tested prior to the sales, it can be tested against requirements, and it can be compared against standards. However a service can be unpredictable and many are the gaps that can cause customer dissatisfaction. It is difficult to manage its quality. No matter how well trained and knowledgeable an employee is, he might provide a bad service to customers if he is not motivated, unhappy or facing a bad day – the organisation will then be seen as inconsistent and low quality service provider. Plus customers have different expectations which make it harder to monitor the service.
Hence, services need rigorously continuous quality improvements in order to delight customers through:
- Inspection (e.g. Mystery guests)
- Quality Assurance
- Prevention
- Perfection (aim of delighting customer’s expectations)
Appropriate Quality Management of a service where employees receive adequate training and career development programs, the service is monitored, and controlling actions take place customers are more likely to be delighted which can lead the organisation to obtain a competitive advantage within the industry.
A current example of quality service is the one provided by Apple. Its products are the leading ones in innovation and to delight customers the company also offers high quality service. If the customer has any problem with a device they can go to any Apple store and request assistance (which can be free if within the guarantee or payable if the guarantee has already expired). Apple gives the choice of fixing the device at a certain price and also provides contacts of other companies that can do the job and the customer can make his decision. Apple have identified that customer service highly affects customer loyalty and recognition and therefore has applied Quality Management to both sides of its business: products and services.
The main benefits of Quality Management for both business and service are better illustrated in the table below:
Created by Carolina Campanholi, 2011.
6. The benefits of a range of Quality Controls to “FLOC”.
Floc Company is facing many problems. Each and every issue is quality-related. The company has been disappointing its main contractor: Skoda car manufacture.
Quality controls towards production and delivery times are the core aspects that need attention from Floc management group. As support controls, staff responsibilities and daily activities should be re-evaluated, internal and external communication issues should also be addressed and systems and procedures must be established and constantly improved in order to improve Floc’s product and service quality standards.
A variety of initiatives and quality controls must take place once they complement each other and assist Floc to improve the quality of its products and services and better satisfy its customers.
The company would benefit from the establishment of Quality Circles where regular meetings and brainstorming would generate new ideas and possible alternatives to problem-solving. The establishment of Right-First-Time procedure from the lean production approach would reduce products defects, wastage and improve performance and productivity.
Just-in-Time initiative towards deliveries would reduce warehousing expenses, time and space wastage. However, prior to the establishment of quality systems and procedures which will facilitate the implementation of lean production, employee’s roles should be re-evaluated and re-developed.
Cross-functional, capable, motivated and committed staff should be the core objectives of Floc’s HR Department. Clear job descriptions, effective payment systems and the idea of mutual responsibility towards quality should be motivated.
Management tools such as: regular meetings, internal audits, network diagrams and Gantt Chart would facilitate Floc’s internal and external communications, improve the understanding of customer’s requirements, develop the management ability of organising activities according to their complexity in a logical sequence, establish quality controls, maximise Resources management, improve delivery times and quality of products.
Quality Systems and Procedures based on Skoda’s expectations and requirements should be established so that processes and responsibilities are better understood by employees. KAIZEN philosophy of continuous improvement must be promoted from top-bottom within Floc Company. The idea of co-operation, teamwork and quality prevention should become management and employees shared values.
7. Ways to improve FLOC’s customer service.
Floc’s customer service is very poor in quality. Even though Floc agrees to replace any defective parts produced without objection many are the problems that surround the company’s customer service.
The main issues are the late deliveries and the unreliable quality standards of its products. Skoda, one of Floc’s main customers, has been complaining about quality standards in both Floc’s products and deliveries and is likely to end the contract if the supplier does not guarantee quality improvements within four months.
The first thing to be done by Floc Company is to set regular meetings with Skoda. Sadiq’s report observed the lack of interaction between the companies. Floc cannot simply rely upon guesses of what Skoda expects from them. That is the driving force of most complaints.
Skoda’s requirements must be well understood by Floc so that quality standards can be set according to the customer’s expectations. Expectations regarding leading and delivery times must also be agreed beforehand. By knowing the customer’s requirements Floc’s management group can create and establish quality specifications, systems and procedures which will regulate production and delivery processes according to their needs and prevent defective items. The translation of customer’s perceptions into quality systems closes the second gap that exists during the service process. (Please see ServQual model in page 8 for better visualization of the service gaps).
Hence, synergy between both organisations is the starting point for Floc’s customer service improvement process and would close the first gap during the service process. (Please refer to ServQual model in page 8).
Employees should receive specific training in order to be able to operate within the quality systems effectively and efficiently. Floc employees should be motivated so that absenteeism levels decrease after time. Constant training, job rotation and career development are the best alternatives to increase staff morale and commitment. Individuals need to feel secure, responsible and part of a team in order to co-operate amongst themselves.
Human Resource managers should create clear job descriptions, responsibilities and expectations. A more effective payment system should also be implemented. The payment according to the quantity and complexity of the pieces produced encourage rivalry amongst employees, poorer quality and therefore customer dissatisfaction. Alternative payment systems such as payment per shift/hours, position-related or performance-related payments would eliminate the competition amongst employees to which piece they would like to produce and also remove the need of getting pieces done in a hurry.
Floc should also keep regular meetings with it employees so that they have up-to-date information, would be aware of any future changes, would be able to express their ideas and opinions, would feel as part of a bigger team. An internal relationship based on trust would promote motivation, commitment, responsibility towards quality and a shared culture of co-operation.
Skilled, motivated and committed employees guided by quality systems and procedures which are based on customer’s expectations would close the third gap during the service process. (Please refer to the third gap in the model on page 8).
Constant systems and procedures reviews and updates must take place so that Skoda’s quality requirements are constantly met. Delivery times, which are a current issue within Floc Company, must be within Skoda’s expectations. Logistics, warehousing and delivery systems should be regularly improved in order to prevent late deliveries and customer dissatisfaction.
Confident and knowledgeable employees would be able to efficiently communicate with the company’s customers after deliveries and solve any issue that may emerge. The fourth gap of the service process would then be closed. (Please refer to the model on page 8).
Finally Skoda would receive products from Floc Company and compare the actual perception they have of the service against what they expected (Filth gap of service process). By addressing the first four gaps of the service process Floc is most likely to provide products that satisfy Skoda’s requirements and expectations. However if these perceptions are still not the same Floc should re-evaluate their understanding of what is required, promote an update of its systems, trying to close all the gaps of its service delivery.
By acting proactively; maintaining a trustful relationship with its employees and its customers; and promoting prevention rather than inspection Floc will not only improve its service performance but also conquer more contracts, recognition, trust, potential to quality standards certificates acquirement and potential future expansion.
8. Quality management and its benefits to organisation’s performance.
According to business dictionary performance is the level of effectiveness and efficiency of an accomplished task against pre-established standards of speed, cost and accuracy. (, 2011).
Quality Management is vital within any business once it is concerned with the continuous improvement of quality of products/services, taking into consideration all aspects involved from the input of raw materials to customer service, assuring quality consistency to customers. It assists organisations to maximise their resources efficiency, reduce any type of wastage, and most importantly provide quality products and services to customers.
Each employee is different from others and may act in your own way while carrying out a task. That is why most organisations observe different levels of performance amongst their employees and teams.
Taking into consideration the higher expectations of better educated customers of current times inconsistency will lead to a poor quality perception of a product and therefore of a company. Quality Management is the way some organisations have been seeking for consistency and continuous improvement.
Through the establishment and regular improvement of quality systems and procedures will determine processes specifications, standards and required skills. An efficient Human Resource Management will forecast demands, provide specific training and career development programs, and promote motivation and a clear understanding of quality responsibilities within job descriptions. With the integration of both products and services consistency can be achieved and the company overall performance can be constantly improved.
9. Conclusion
The various sections of this report detailed discussed Quality Management characteristics, applications and relevant and current examples were also mentioned. Both case studies served as a guide towards the main areas that were covered along the report.
Individuals nowadays are seeking for quality in every aspect of their lives: a good place to live; healthy food; recognised diplomas; satisfactory career; good partner and friends; good quality of life. The same applies when customers are choosing between products/services. They have their own perception of quality, their own requirements and expectations.
These expectations must be addressed by organisations which aim to maintain themselves in business. If a company does not offer good value, high quality and is not able to delight customers it will not survive for a long period within the contemporary fast-paced and extremely competitive market environment.
That is when Quality Management in Business has been proving to be one of the key managerial approaches of current times. Continuous improvement, prevention, seek of perfection and enhanced quality standards, systems and procedures should be part of organisations corporate strategies and the responsibility towards quality should be shared amongst employees and intrinsic within organisational values and culture.
The path towards organisational differentiation, innovation and competitive advantage has its base on Quality Management in Business.
Quality Management in Business has benefited many Japanese, American and European companies so far and it has the potential of also benefiting south-American, African and other emerging continents and countries if national awareness, interest and internal initiatives start to take place.
10. References
Hoyle D., 2007. Quality Management Essentials. Oxford: Butterworth-Heinemann Ltd.
Kemp S., 2006. Quality Management Demystified. New York: McGraw-Hill.
Oakland J., 1993. Total Quality Management: The route to improving performance. Oxford: Butterworth-Heinemann Ltd.
Business Dictionary, 2011. Performance. [online] Available at: . [Accessed on 02 June 2011].
Robson M., 1989. Quality Circles: A Practical Guide. 2nd ed. Hants: Gower Publishing Company Limited.
Swanson R., 2000. The Quality Improvement Handbook. Florida: CRC Press LLC.
SQMC. Quality Management Systems. [online] Available at: [Accessed on 05 June 2011].
