Effective Quality Management Practices - Assignment Example

Name : xxxxxxxxxxx Institution : xxxxxxxxxxx Title : Effective quality management practices Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2010 Working title Effective quality management practices can provide a competitive advantage for both services and manufacturing organisations. Executive summary The 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/ background This 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 place Set some procedures to cover all the processes which takes place in the business Monitoring all the processes to ensure that they are effective to the performance Facilitating 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. Baldridge theoretical approaches argue that in a highly competing world, the management of the companies struggle hard to ensure that their brands will elevate them from the rest of the business organizations. They also explain that for any organization to be easily distinguished from the rest of the crowd, the management should concentrate on designing their logos and improve the quality of their products and services that they release to the consumers. For example, Australian Platinum Mines was made to change its identity to Aerosonde Limited Company after restructuring to improve its performance. This enabled the management of the organization to improve its performance so as to survive in the stiff competition. The negative reputation of the public changed to a positive one and it is now linked as top in the list of the best performing companies in the mining industry (Schoderbek, Charles & Kefalas, 2007). For proper achievement of the set goals, good leadership and management should be implicated. The leaders should be aware about all activities taking place in an organization as well as the capabilities and disability of the available workers. These will enable the leaders to determine the best leadership style or effective decisions on behave of the entire organization. Good leadership and management of any organization require some flexibility; that is the leaders should consider changes which can be of positive impacts on the performance of the entire organization. In the current business world, any good leadership and management is determined by the implementation of various management systems. The goals and objectives of the study The general objective of the study was to identify how effective quality management practices can provide a competitive advantage in both manufacturing and service providing organization. The specific objectives: To review the similarities and differences between manufacturing and services providing organizations in terms of Six Sigma, ISO 9000 and Baldridge theoretical approaches. After doing the research it should be possible to identify and critically review leadership and management practices which can maximise continuous and qualities which improve the performance of both industries. Research design and methodology The research design was in form of group survey and some organizations were used both selectively and randomly to represent the other organizations in Australia. Some were selected to ensure that they fit required qualities like either being a service providing or not or containing some systems of standardization for example, ISO 9000 or Six Sigma. Any of the representatives of the standardization systems were used to provide information on their operation and effects on the management of the organizations. The sampling design and procedure Although sometimes the samples were selected this study mostly used random sampling method whereby the organizations to provide the information were picked at random and voluntary with the specification of the respondents being managers of either manufacturing of service providing organization. The total sample was 100 organization both manufacturing and service providing while 50 samples represented the standardization systems. Data collecting method Data was collected through both primary and secondary methods. The primary source is whereby data was collected from field work through methods such as questionnaires, interviews and observation while from secondary source; the information was got from books, journals, magazines or periodicals containing the information relation to the research questions. The questionnaires and interview questions were formulated with questions based on the general and specific objectives of the study. The interview questions were used by the researchers as a guide in the process of getting information from the respondents, for example, they would be directed to the manager of an organization concerning the effects of the international standardization systems who would give the intended information by responding. This could either be through face to face or telephone calls provided the interviewer had a way of recording the information to be analysed later. The questionnaires consisted of written questions which the respondents were expected to write down the answers and give back to the researcher after complexion for analysis. The information could also be collected through observation whereby the researcher would identify an organization with conformance to the standardization system and another one which is not, then take time to observe the differences between their operations or performance. The respondents were required to give information concerning the management system which they have implemented in their operations and how they have benefited from the changes. The questionnaire was used on all companies whether service providing of manufacturing to provide the information by answering the questions listed. Data analysis The collected data was analysed depending on their validity and reliability. Validity relates to how accurately the data obtained from the study was represented the variable of the study. Reliability measures the degree to which a research instrument yields consisted results of data on repeated trials. The respond to the questionnaires and interview questions were well analysed by the council of researchers disqualifying those that seemed not related to the research area. Those valid were analysed to come up with a report either to support the hypothesis statement or oppose it. Situation Appraisal According to the analyses of the data collected through all the methods applied, all the effective quality management practices can provide a competitive advantage for both services and manufacturing organisations. This can be achieved by quality management systems are considered like ISO 9000, 9001 and 14000 to improve the performance of the activities of either manufacturing or service providing organizations. The management systems which were considered through the study are: Six Sigma, ISO 9000 and Baldridge theoretical approaches. These are mostly considered by the Management Systems Consulting Corporation to be having the most positive impacts on the management of the organizations in Australia by helping them understand the basics of the success of the organization and make the transition from one stage of development to another (Yolles, 2008). The researchers found that the organizations which had implemented the use of management systems are doing better than those without. This because their activities are targeted to boost the quality of the products and the services offered to meet the international standards. The companies which were considered to provide the necessary data includes: Austcorp, Austereo Radio Network, Australian air Express, Australian Agricultural Company, Australian Biodiesel, Australian Defence Industries, ABC Learning, Aerosonde Ltd and Australian Essential Oil Six Sigma seeks to identify and minimize the causes of mistakes as well as reducing the variability only in the manufacturing organizations. It brings together all the workers to think about the activities of improving the performance of the organization by mastering the skills of manufacturing and improving them to the international standards. It educated the managers on the ways of putting the general goals of the entire organization on the fore front of the minds of all the workers thus their thinking is only based on how they can work best to meet the standards of others a head of them. The managers find it easier to manage group work because everyone is focused to achieve the best. The system compares the management and performance of the related manufacturing organization and bases their judgements on the amount of production. Six Sigma projects are seen to be the most beneficial to most of the manufacturing processes especially the complex ones or which may require complex stages to be complicated (Lee, Shiba & Wood, 2007). The other management system that the researchers considered is ISO 9000 which is concern about management and operations of both manufacturing and service providing organizations like in the IT industry. This system has a set of standards which all its conforming organizations should achieve. All the organizations which are ISO certified are audited to ensure that their activities are equivalent to the international standards, for example Australian Defence Industries and ABC learning are some of the companies which were reserached on and explained some of the benefits that they enjoy by incoorporating with ISO. This is not based on the qualities of the end products or services but on the processes which are applied by the management or the other workers. The organizations are expected to keep a record of all their daily activities and these records are used by the system to gauge the operations of the organization. Its aim is to improve the management operations of any organization compared to their goals and objectives (Schweyer, 2010). According to the respond from one of the representative of the ISO, the project has some principles which guide its operations: focus of the customer, leadership, peoples’ involvement, approach of the process, approach of the system to management, continuity of the improvement. Realistic approaches to making of decisions and a friendly relationship between an organization and the suppliers. According to the analysis of the information from most of the organizations, Baldridge theoretical approaches enable the management of the organization to identify things which can enable their organization be distinguished from the rest of the crowd in the competing business world. It has enabled the management to change improve their public image by prefacing their brands with the intention of changing its public reputation in case it is negative (Maier, 2007). The managers choose the best managing practice which can maximise continuous and breakthrough quality improvements for both manufacturing and service providing organizations. These practices includes including the other workers to participate in the process of making decision. This encourages them to do their best in improving the performance of the organization as they develop some sense of belonging to it. It is also a good opportunity of sharing the individual working skills by giving ideas about some working situations. The Managers act as role models to the other workers, their way of doing things guides the others junior workers on what is expected of them for the achievement of the general goals and objectives of the entire organizations. This acts as a good way of implementing the regulations of the management systems like ISO and Six Sigma. The leaders do according to the expectations and influence the juniors to act after them (Baldridge & Tierney, 2008). Complications during the research process There are some limitations which were encountered while planning or carrying out the research study, these include: Time constraints, the time allocated was inadequate to undertake the numerous activities. For example moving from one organization to another and applying all the techniques of collecting data like observation, questionnaire and interviewing required more time tan was available. Some of the methods like observation did not provide sufficient data because for it to be effective, the observer has to take all the time observing the patterns of manager’s behaviour. However despite the inadequate time, the researchers cooperated to work extra hard and over the normal working hours to meet the deadline set for the completion of the study. Negative response in the field was also another constrain that the researchers had, some of the respondents in the field especially those in the private owned organizations were not willing to respond as they felt that some of the information entailing the management of their organizations were private and confidential to be disclosed to the public thus they gave wrong information. Others denied the information due to the fear of disclosing their uniqueness in the highly competing business world thus their opponents were likely to get it and copy. The researchers struggled hard to convince the respondents to cooperate. Financial consideration was another constraint that we encountered although the sponsors had tried to pump in some huge amounts it was not enough to cater for all the activities involved. Due to time factor more human resources and other resources like computers for the purpose of analyses was required to speed up the complexion of the activities as well as increasing the efficiency. To overcome these problems the researchers got funds from borrowings. Equipments limitations was also a challenge to the researchers especially to the equipments which were not included in the budget and later discovered to be necessary for the study. The data which would be got through the use of these equipments was in available or insufficient. Other like voice recorders were not enough so we were forced to find ways of getting them. Human resource limitation was also a challenge to the researchers because they were forced to overwork or hire others who did not have well developed working skills or were not conversant to the working terms and conditions. Some of the researchers did not turn up for the activities and other s lacked patient to persevere to the end of the contract that they resigned. Their responsibilities had to be delegated to the others for the success of the study and achievements of the set general and specific objectives. Analysis of the situation appraisal According to the analysis of the information collected from various organizations, the manufacturing and service providing organizations whose management conforms with management systems like Six Sigma, ISO 9000 and Baldridge theoretical approaches are better than those not (Truscott & William, 2003). The improvement of the management of these organizations to meet the international standards has improved their performance thus they not only survive the local markets but also the global. These systems are not concern about the quantity or quality of the final products of the organizations but on the processes that takes place or the relationships between the workers. The leaders should have good qualities of leadership to enable them relate well with other workers hence motivate them to work to the best. The activities of an organization are highly influenced by kind of leadership and the management practices adapted. The junior workers act as per expectation of their seniors. For the manufacturing organizations, the management should be keen to ensure that quality and quantity goods are produced to meet the desires of the consumers. The human resource manager in the service providing organizations should be enthusiastic to ensure that the workers are well attached to their various responsibilities especially those who directly handle the consumers. Good management practices are necessary to enable the workers create a rapport with their consumers hence it is easier to deliver the services (Gottschalk, P., 2007). Conclusion After researching and analysing the data collected from both primary and secondary sources, it is clear that effective quality management practices can provide a competitive advantage for both services and manufacturing organisations. Adapting the management systems enables the managers to easily undertake their roles and achieve the general goals and objectives of the entire organization. They are able to choose the best management practices which best suits their organizations and the products they offer. Bibliography Mohanty, R., 2009, Quality Management Practices, Delhi: Excel Books. Seyedbagheri A., 2003, Idaho Forestry Best Management Practices: Compilation of Research on Their Effectiveness, Philadelphia: DIANE Publishing. Lomax, P., 2006, Quality management in education: sustaining the vision through action research, Vatican: Taylor & Francis. Ajit, S., 2005, The Ten Commandments of Quality Management: Best Practices to Develop New Leaders and Create a Quality Environment, New York: PublisheriUniverse. Koontz, H. & Weihrich, H., 2006, Essentials Of Management, New York: Tata McGraw-Hill. Schoderbek, P., Charles, G. & Kefalas, G., 2007, Management systems: conceptual considerations, New York: BPI/Irwin. McDonough, M. & Garrett, J., 2006, Management systems: working concepts and practices, Michigan: R. D. Irwin. Lee, H., Shiba, S. & Wood, R., 2007, Integrated management systems: a practical approach to transforming organizations, New York: John Wiley and Sons. Yolles, M., 2008, Management systems: a viable approach, New York: Financial times/Pitman Publishing. Maier, R., 2007, Knowledge Management Systems: Information and Communication Technologies for Knowledge Management, New York: Springer. Schweyer, A., 2010, Talent Management Systems: Best Practices in Technology Solutions for Recruitment, Retention and Workforce Planning, New York: John Wiley and Sons. Gottschalk, P., 2007, Knowledge management systems: value shop creation, Grove: Idea Group Inc (IGI). Mikel, H. & Schroeder, R., 2006, Six Sigma: the breakthrough management strategy revolutionizing the world's top corporations, Greyhawk: Currency. Tennant, G., 2001, Six Sigma: SPC and TQM in manufacturing and services, Gower: Gower Publishing, Ltd. Truscott, W. & William, T., 2003, Six Sigma: continual improvement for business: a practical guide, Vatican: Butterworth-Heinemann. Baldridge, J. & Tierney, L., 2008, New approaches to management, Michigan: University of Michigan. Read More