@2010Working titleEffective quality management practices can provide a competitive advantage for both services and manufacturing organisations. Executive summaryThe study on how the effective quality management practices can provide a competitive advantage for both services and manufacturing organisations entails the combination of many factors. The researchers considered the management of both the manufacturing and service providing organization and the contributions of the international standardization systems in boosting the practices of managing these organizations. The general aim of the whole study is to show the advantages of having a quality management practice in an organization so as to survive in the highly competing world. To collect enough data for the study, the researchers were required to consider both primary and secondary methods of collecting data.
They went out to gather information by interviewing various organizations as well as the representatives of management systems like ISO or Six Sigma and others dug hard the library shelves reading books, journals and other materials containing information relating to the field of study. There were some specific and general objectives which were set to be achieved as well as guide the researchers while collecting data. The analysed information was reported in full text and other simple figures like charts for easier understanding of the audiences.
The researchers targeted the managers of the organizations and the potential managers who might need to have good management skills and those that can enable them to survive in the stiff competing world. The report is structured into areas which were considered during the study, for example, the general and specific objectives, research design and methodology, challenges, findings and their analysis. Context/ backgroundThis research study was not the first of its kind but a continuation of what earlier researchers had done on the area of concern.
Much has been done in Australia as a nation to improve the management so as to provide competitive advantages to both services and manufacturing organizations. Various management systems have been set up to improve the practices of management as well as standardizing the management levels for example Six Sigma, ISO 9000 and Baldridge theoretical approaches (Mohanty, 2009). Seyedbagheri, (2003), states that Six Sigma is a strategy of business management which was developed by Motorola from USA and works to improve the management process of organizations.
It seeks to identify and minimize the causes of mistakes as well as reducing the variability in the manufacturing organizations. The strategy considers using a set of management qualities which includes the statistical methods to develop unique infrastructure of members of an organization. Any project in an organization which considers the use of Six Sigma has to be keen on the series of stages which does not only enhance the achievement of the financial target but also helps to control the operation of other business processes.
It is associated with the common most processes in a manufacturing organization such as manufacturing or mining. Motorola, the founder of this project set a goal for all the manufacturing operation and made it a byword for the practices of management and engineering in any organization. Australian Essential Oil is an example of a manufacturing company which has benefited from implementation of Six Stigma especially in the distribution of the commodity to various parts of the nation and other operations involved.
The management is able to plan and control the many activities involved in production and distribution of oil (Mikel & Schroeder, 2006). The success of this project is based on its focus to the customers; it generates their loyalty by concentrating on their feedback and making improvements of the projects geared towards fixing and getting rid of the personal concerns of the consumers. Data should be collected and analysed before making any other decision on behalf of the entire organization, this is because the strategy of Six Sigma operates in a crucial routine of decision making which is data based.
By teaching all the workers in an organization the tactics involved in effectively managing time, six sigma enhances the building of an organized base to prevent all the blocks or barriers of improvement. The workers easily complete their duties if they work as a group and plan their time well (Lomax, 2006). According to Ajit, (2005), this project of Six Sigma enables the organizations especially developing ones to survive the stiff competition in the market place. By applying the strategies of detailed data, the managers of the organization are able to discover what their opponents do better than them and how they do it.
This world class standardization method is of benefit to the members of the entire organization, it helps them acquire good management and presentation skills and be able to work faster than before. All the companies which implement this project realize a reduction in the turnover of the employee because all the workers produced to their best (Tennant, 2001). ISO 9000 is another quality standards for quality management systems and are maintained by International Organization for Standardization although administered by accreditation and certification bodies to show that the management of any organization is ISO certified.
These standards are considered to be essential in the improvement of the management of manufacturers and service organizations. The management considers them to improve their performance hence the quality of the final products so as to fit in the highly competing business environment. They are internationally based hence adapting them means that the practices are globally accepted. It emphasises on eight principals: leadership, focus of the customer, involvement of the employee approaches to the activities and resources used, approach of system to management, continuous improvement, reliable supply and partnership of the consumers.
ABC Learning as service providing organization especially to the Early Children Developers is an example of the ISO certified company whose operations are examined to fit the international standards of training instructors of Early Child Development. Other ISO certified companies include Australian Defence Industries which manufactures weapons has benefited from the system because the management is able to organize the operations of the busy company and improve the quality of their productions to fit in the international standards (Koontz, & Weihrich, 2006).
The body has some set rules which the organizations should achieve for its certification. These are: Management should keep adequate records of all the activities which take placeSet some procedures to cover all the processes which takes place in the businessMonitoring all the processes to ensure that they are effective to the performanceFacilitating continuous improvement Carefully checking the outputs compared to the activities that takes place so as to decide on whatever action to be considered. To ensure that the above mentioned standards are met, the concern companies are independently audited and certified to ensure that their activities are in conformance with the ISO 9001 thus they can be stated as "ISO 9001 registered” or "ISO 9001 certified".
This guarantees the public that the management of the organization applies some formalized business processes which are accepted globally. Although it begun with manufacturing based organizations, with the advancing technology and the formation of many service offering organizations, it has been adapted by the service providing organizations mostly in the world of IT (McDonough & Garrett, 2006). The inventors of these standards came up with two types of families ISO standardization: ISO 9000 and ISO 14000 and both are concern about the management in an organization.
The family of ISO 9000 is concern about quality management in an organization while ISO 14000 addresses the environmental management or the effects of the activities of an organization on the environment and the achievements of the continuing improvements in the performance of the environment.