Supply Chain Management - Emirates Aluminum Company - Research Proposal Example

RUNNING HEAD: EMAL Total Quality Management Name Course Institution Date Table of Contents Name 1 Course 1 Table of Contents 2 1.0 Introduction 2 3.0 Assumption of the study 4 4.0 Origin of TQM 4 5.0 General objective 5 6.0 Qualified Human Power 5 6.1 Employee training and development 5 6.2 Rewarding system 7 6.3 Employee Empowerment 7 7.0 Qualitative customer focus 8 8.0 Quaintly Avoidance 9 9.0 Quantifiable TQM Process 10 10.0 Quantitative TQM Measures 11 10.0 Conclusion 13 11.0 References 14 1.0 Introduction Emirates Aluminum Company (EMAL) is a strategic joint venture between two main companies namely Mubadala Development Company (MUBADALA) And Dubai Aluminum Company (DUBAL). The company was established in 2007, where it highly holds operation in new and hi-tech aluminum smelter making it the largest Greenfield aluminum company ever built in United Arabs Emirates (UAE). Today, this six USD billion development project is considered to be the flag ship of Abu Dhabi diversification and industrialization strategy. The construction process it is mainly built in two phases. The first phase is perceived to have a capacity of seven hundred and fifty tons of aluminum once completed making it double it total production in the completion of the second phase (EMAL, 2011). It is quite evidence that EMAL construction signals a continuing global shift especially in the aluminum production within the middle east. Further, the state of art embedded within the company signifies a raising concern in various industrial projects across the globe. It is an indication that this new and hi tech initiative is more likely able to generate various long term benefits not only to UAE but also across the globe (EMAL, 2011). Further, an expatriate will be created which will establish various chances that will lead to the development of careers within wide range of disciplines. The project will act as a catalyst whereby there will be wide down streaming processes thus creation of a more significant economic value for both the current and future generations. 2.0 Assignment Scope As the world is constantly transforming into a global village, it is quite evident that EMAL Company need to widely focus on establishing a good Total Quality Management (TQM) into their systems. Total Quality management is defined as the way organizations manages its staffs and operation so that customer is satisfied at every stage whether internal and external (Cavinato, 2004). Therefore, this definition defines our research question as how EMAL Company can use the 5Qs of TQM namely; qualified human power, quantitative customer focus, quaintly avoidance, quantifiable TQM process and quantitative TQM measures to plan for an effective supply chain management for its operations. 3.0 Assumption of the study The study assumes that data collected from past researches is effective and that personal attributes are not reflected in this data. It further assumes that data gathered was representative to create space for generalization to wider demographic. Accuracy and precision in data collection and recording is an important factor to be place into consideration. This research goes ahead to assume that researchers who collected data recorded it with outmost accuracy and respondents gave correct information. It is also important to assume that there was uniformity in recording the data so as to make it more scientific (Cavinato, 2004). 4.0 Origin of TQM TQM is known to evolve from quality assurance methods that were developed during the First World War. This was a result of big manufacturing often producing goods of poor quality and there was need to correct this by ensuring that levels of poor quality were greatly minimized (Psychogios and Priporas 2007). After quality inspection became common it led to the introduction of Statistical Quality Control which measured quality standards by use of statistical methods mainly sampling. The theory that revolved around this theory was that of variation in production processes which usually lead to variation in the end product. The notions of total quality came to being in the year 1970, which was seen as an organization quality control involving each employee in the quality control process. Companies such as Canon, Sony and Toyota started their operation before TQM came into being. Research indicates that after these companies incorporated TQM into their systems, there were great impact in the form of customer relation and volume of sales (Psychogios and Priporas, 2007). This field of management assisted them in describing various quality focused techniques and strategies as a way of creating a center of focus on quality improvement and customer satisfaction. 5.0 General objective The general objective of this proposal is to use EMAL as our case study in determining how Total Quality Management practices should be handled to ensure organizational efficacy. This general objective is accompanied by a view whereby ways of improving various operations within EMAL should widely focus on the five Q’s of quality management to ensure profitability and future success (Devadasan, 2009). 6.0 Qualified Human Power 6.1 Employee training and development TQM consists of a continuous process of improving activities within the organization by involving everyone-managers and workers. The management of EMAL will therefore be obligated with the responsibility of integrating a policy that will ensure improved performance of human resources. A training and development policy will be an appropriate device to incorporate into the organization in order to achieve this goal. The importance of the policy is to set out purposes and guidelines for training and development of workers who need extra skills or upgrading of their carriers. The emphasis of the policy is to create and maintain a learning program that is continuous. It is aimed at developing fully trained individuals whose performance will enhance the company’s ability to operate at levels of high excellence in terms of profitability objectives and production of quality products and services that meets customers’ needs (Bratton and Gold, 2007). The company will attempt to adopt a learning environment whereby all employees will have the chance to develop new skills by whatsoever means they can afford for effective contribution to the achievement of both company and personal goals. The company will have an annual appraisal system for all the job descriptions in the organization whereby the management will assess the performance of each employee at the end of each year. New employees will go through an induction plan to have skills in health and safety, quality management systems, fire safety and details of his job and place of work. They will be required to undertake a three months probation period whereby they must demonstrate high levels of quality workmanship and productivity. Assessment for skills will be conducted on defined intervals and relevant action plans implemented. The managing director will arrange for the training which will be fully funded by the company. External training programs for individual employees will be allowed for a maximum of two years where he/she may request the company for a loan to be to be deducted from their salaries when they resume. The success of the company will depend on the skills, professionalism and commitment of each worker (Torrington et al, 2005). 6.2 Rewarding system It is important that the company realizes that employees do not work for free and it is therefore important that they get rewarded for their work and efforts. On top of monetary rewards, employees also need psychological rewards for effective performance. In meeting its TQM strategy the company will need to apply two basic types of rewards; Extrinsic and intrinsic rewards. Extrinsic rewards incorporates coverage of the basic income needs to survive, the feeling of consistency and stability as well as recognition of one’s skills in the workplace. On the other hand, intrinsic or psychological rewards include social interactions at the workplace, the feeling of overcoming challenges competently and basically job satisfaction (Joseph, 1999). The main objectives of a reward system are to create a sense of commitment to the organization, attract new employees and retain them and finally to improve and maintain performance. In addition to the ordinary end month pay that employees receive, other benefits can be offered to ensure high quality performance. Such benefits include pension plans, health and life insurance cover, health club memberships, company cars, subsidized meals and entertainment (Thomas, 2001). 6.3 Employee Empowerment Changing the attitude and activities of employees is a direct means of ensuring implementation of TQM. To begin with, management should empower teams and not individuals. The team will define a course of action in achieving its goals set by the management. Empowerment will be planned and structured to meet the goals in TQM. Empowering employees entails accepting recommendations from team, investing money and time into the teams, preparing teams to produce good results and avoiding pressurizing them, rewarding high performance to motivate teams, creating time to listen to team problems and providing a communication system that is technology based (Hills and Huq, 2004). 7.0 Qualitative customer focus Customers are the most important factor of the success of EMAL Company. Internal customers are people inside the company who deliver products to those outside the company while external customers are individuals or organizations that purchases products or services from another company in exchange of money. EMAL must consider its product in terms of quality, price, delivery and flexibility to determine its customers. Utilizing the employee’ talent will provide satisfaction to customers in terms of goods and services and a positive financial status to the company. Defining and executing very specific, proactive customer service strategies will help EMAL to exceed customer expectations. (Kazanjian, 2007) The focus in achieving the company’s goals enables a response to customer requirements. The services provided to customers determine their loyalty and revenue to the EMAL Company. The employees should pay full attention to the customers and give them quick service. EMAL Company is expected to design its product according to what the customer expects from it. A designing team is more important to design the required product (Goodman, 2009). The prices of the products should favor both the customers and EMAL shareholders. In case of price changes the EMAL is required to take a step to inform the customers. This can be done through the internet since it is worldwide. EMAL Company’s effort to improve its product will exceed the customers’ expectations. ( Bruegman, 2003) 8.0 Quaintly Avoidance In the past, quality management was based on inspection of the end product to assess if the products met specifications. With gradual evolution, statistical sampling techniques were applied in evaluation of quality whereas quality control charts used to monitor the process of production. However, in the recent past, quality has been viewed as a wholesome activity involving participation of the entire organization. Toyota and Honda had lost the market due to the use of a management method that relied on inspection in the 1970s and 1980s. On the contrary, Sony and Toshiba had realized the importance of the new TQM and were making major progress due to production of high quality products at reduced prices (Wilkinson and Dale, 2001). Deming, in the 1940s stressed the role of management in quality production. Although it was believed that poor quality was majorly contributed by the laziness, negligence and lack of competence of the workers, Deming argues out that the problem is actually caused by poor processes and systems. He believes that it is everyone’s responsibility to ensure maintenance of high quality by eliminating elements that might lead to poor quality. Other quality experts have given their opinions on quality controls and in particular, Genichi Taguchi points out that lack of quality products is as a result of defective product design. Unlike the old perceptions and believes about quality, TQM is focused on satisfying consumer expectations and needs (Kurtus, 2001). According to TQM, quality is customer driven. Unlike traditional methods whereby no further improvements were needed once a company had reached a high level of quality, TQM emphasizes that continuous improvement is important regardless of such achievements. As opposed to the old concept of quality where employees were not involved in decision making, TQM embraces the fact that employees are the key players in identification of quality problems hence should be involved in the process of decision making to correct such problems. TQM further stresses that quality is the effort of all the members in an organization. It uses a team approach where the success of the company is dependent on the performance of each of the teams (Soltani et al, 2004). 9.0 Quantifiable TQM Process For EMAL to develop a sustainable and strong supply management chain, it is quite essential it understand how it will establish a quality assurance to its customers. The company needs to realize that quality assurance entail developing a systematic monitoring and evaluation on its TQM plan, project and services so as to increase the probability that maximum standards of quality will be achieved in their production of aluminum (Hendricks, 2003). To achieve this sustainable quality assurance, EMAL need to carry out a quality control procedure in which it will greatly be involved reviewing all factors within production process. This can be achieved if EMAL; Clearly defines and manages its processes through proper performance and integrity integration Increases its competency in its diversified knowledge, experience, skills and work force qualification Establishing a good working environment in term of proper organizational culture, quality relationships and team building (Hendricks, 2003). Further, it is quite essential for EMAL to understand that quality assurance does not only focus on satisfying customer but rather, satisfying suppliers, retailers and wholesalers as way of establishing an effective and strong supply chain management. EMAL should realize that the main step towards a standard TQM is that of realizing a problem and immediately coming up with ways in which it can be controlled or eliminated in order to improve on quality (Medori & Steeple, 2000). 10.0 Quantitative TQM Measures EMAL should highly ensure that it uses TQM measures since these measures are growing and in the recent future it may dominate various quantitative measures. The management of EMAL should ensure that it gives greater importance to performance measures by way of encouraging their employees to acquire better training so as to be at the forefront of rendering consistent TQM observations (Samaranayake, 2005). With globalization and improved technology, EMAL should focus on being ISO 9000 in quality management. Being ISO 9000 certified implies that EMAL will address quality standards issues as part of fulfilling; All customers quality requirements All designated regulatory requirements in the aim of; Enhancing up to standards customer satisfaction Achieving continuous quality improvement especially when pursuing EMAL goals and objectives By engaging in measures that will be recognized through certification of ISO 9000, EMAL will have not only presented itself within UAE but across the globe since it will be a clear representation of international consensus basing it on good quality management practices (Kitazawa & Sarkis, 2000). It is quite evidence that without satisfaction from customers, EMAL will be in peril. ISO 9000 will provide the company with a framework in which a systematic approach in managing organizational processes will be established. It is easy for EMAL to engage in ISO 9000 since it will enable the company in laying down its quality requirements. This assists the organization in establishing a greater objective scope thus creating flexibility for the implementation of different global business sectors and organizational cultures (Kitazawa & Sarkis, 2000). Further, quantitative TQM measures can be achieved through closer examining of Quality Observation Feedback (QOF) system, Continuous Quality Improvement (CQI) and defining EMAL action plans (Zimmerman, 1996). As part to have a deeper meaning of quantitative TQM measures, EMAL should work to define it’s Specific, Measurable, Attainable, Related and Timed SMART goals. By being specific, EMAL should focus on being précised on its desired goals that they want to achieve. Measurable call for this company to quantify all its objective in accordance to their stipulated goals, this can further be linked to achievable whereby the company should work on conducting a research on whether the designed goals are achievable (Pearson, 1999). EMAL should focus on ensuring that it has the required resources so as to make sure that organizational objectives are attained. Timing is a very essential factor that the company needs to focus on. EMAL should state on the actual time that it expects to have achieved its stipulated goals and objectives. The following Deming’s are considered to be very essential in these Q; End the practice of presenting business on price alone; as a replacement for, minimize total cost by working with a single supplier. Improve continuously and forever every development for planning, production and service Do away with numerical quotas for the labor force and numerical goals for management. Get rid of barriers that rob people of conceit of workmanship, and do away with the yearly rating or merit system (Sherer, 2005). 10.0 Conclusion With the application of the 5Qs discussed above, it is possible for EMAL to achieve a successful supply chain management plan that will see the company realize its long term as well as short term goals. In addition to these, it is important that the management of EMAL realizes that quality can and must be managed if the approach of TQM is to be effective. Quality products come from quality processes hence it is vital that the production process is monitored closely at each stage. It is also proper to employ a quality controls manager to oversee the process of quality production process (Molina et al, 2004). The management of EMAL should also take note of the fact that processes and not people are the problem. Managers will have the responsibility of evaluating the production process at regular basis and find out solution to any problems that might be identified. They will implement the plan and evaluate if it is able to achieve the company goals. If the processes are good then it is easy to train the employees on skills that yield quality products. ‘Don’t treat the symptoms, look for the cure.’ This statement basically emphasizes on the importance of management to identify sources of quality problems before they affect company productivity. Management of EMAL will have to adopt strategies for uncovering problems and means of correcting them to avoid wastage of items of poor quality products after production.As earlier described, the success of EMAL is dependent on the contribution of every employee. Teamwork cannot be overemphasized as it is a key step towards attainment of the company’s goals to have a successful supply chain system. Everyone in the company must realize that they play a vital role in ensuring maximum production of quality goods that meet customer needs. The management must also device methods of measuring quality (Harter et al, 2002) 11.0 References Bratton, J. and Gold, J. (2007).Human resource management: Theory and practice. New York: Palgrave Macmillan. Bruegman. R. & Walter. A. (1998). Exceeding customer expectations: quality concepts for the fire service. New York: CFAI. Bruegman. R. (2003). Exceeding customer expectations: quality concepts for the fire. Upper Saddle River: NJ Prentice Hall Cavinato, J. (2004). An analysis of supply risk assessment technique. International Journal of Physical Distribution and Logistics Management, 34(5), 383–387. Devadasan, S. (2009). Total agile design system model via literature exploration. Industrial management and data system, 109: 4, pp. 570-588 EMAL, (2011). Emirates aluminum. 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