Dubai Cable Manufacturing Company - Quality Management Principles and Impact of Quality Processes - Case Study Example

Quality Management Report Name: Tutor: Course: Date: Executive summary Quality management is a critical concept in the current business environment evidenced by increasing competition and desire to claim a larger market share. Dubai Cables Company (DUCAB) is one firm in the United Arab Emirates that has implemented quality systems to the level of Six Sigma. The firm produces lead-sheathed cables, Low and high voltage transmission cables and PVC coated wires. It is in the process of producing aluminum rods in a newly constructed factory in Dubai. Through a SWOT analysis, the company’s 20% of its staff including engineers and IT professionals have embraced the Six Sigma for quality management under a partnership with Motorola University. However, the firm is constrained by limited product portfolio under instrument cable solutions which requires new quality management standards. DUCAB can achieve quality through TQM and other quality procedures using Pareto charts, ISO quality procedures and empowerment of teams. On customer focus, the company builds long-term relationship with its customers by timely delivering the products and focusing on quality without fail. The ideal choice of DUCAB by most customers is because it uses prompt delivery schedules and edges on quality assurance. Regarding, continuous improvement, it has adopted the Six Sigma methodology and is recommended to adopt control charts to reduce wastage and errors in its process. The report begins with quality management overview on different quality approaches, basic principles of TQM and its importance to the organization. The scope of the project briefly describes DUCAB, analyzes using SWOT analysis and provides key findings The third section highlights quality management principles and their impact on quality processes Finally, it develops an optimal implementation plan to achieve organizational excellence. Table of Contents Executive summary 1 1.1 Organizational description 4 Figure 1: Ducab cable manufacturing facility 5 1.1.1DUCAB: SWOT Analysis 5 1.1.2 Summary of Key findings 7 2.0 Quality management principles and impact of quality processes 7 2.1 Quality management principles at DUCAB 8 2.1.1 Customer focus 8 2.1.2 Continuous improvement 9 3.0 Optimal implementation plan 10 3.1 Proposed quality management approach 10 3.2 Maintaining quality performance 11 3.3 Key performance measures 12 Figure 2: Statistical control chart for cable manufacture process 13 4.0 Conclusion 13 References list 15 List of Figures Executive summary 1 1.1 Organizational description 4 Figure 1: Ducab cable manufacturing facility 5 1.1.1DUCAB: SWOT Analysis 5 1.1.2 Summary of Key findings 7 2.0 Quality management principles and impact of quality processes 7 2.1 Quality management principles at DUCAB 8 2.1.1 Customer focus 8 2.1.2 Continuous improvement 9 3.0 Optimal implementation plan 10 3.1 Proposed quality management approach 10 3.2 Maintaining quality performance 11 3.3 Key performance measures 12 Figure 2: Statistical control chart for cable manufacture process 13 4.0 Conclusion 13 References list 15 1.0 Quality management overview Quality is conforming to the requirements establishes within the organization or the ability of services or products to satisfy implied and stated needs (Jones, 2014). The common approaches to quality are Total Quality Management (TQM), Continuous Quality Improvement (CQI) and Six Sigma. While TQM emphasizes on quality to every aspect of the organization and the business, CQI reiterates on quality improvement process through deployment of groups or teams with a reward for attainment of quality levels and goals (Rawlins, 2008). On the other hand, Six Sigma is a statistical measure intended to improve processes in high volume production by eliminating waste and providing perfect results. The five principles of TQM are; Encourage teamwork and mutual respect Continuous improvement Strategic approach to improvement Focus on the customer Produce quality work the first time Every organization needs to satisfy the needs of its stakeholders. These organizations are increasingly under pressure to meet the challenges of maintaining market share, competitive advantage and satisfying the needs of customers (Mukherjee, 2006). By complying with certain quality standards, the organization is able to eliminate errors, wastage, and reduce production and running costs. 1.1 Organizational description Dubai Cable Manufacturing Company (DUCAB) is a firm based in Dubai, United Arab Emirates. The company established in 1979 by the Government of Dubai manufactures a range of cables, accessories and its components. Some of the products are low voltage cables used in powering large motors. Its manufacturing capability is above 110,000 tonnes of copper rod and 115,000 tonnes annually of medium and high voltage cables (DUCAB, 2014). The company is leading in quality power and one of the largest cables manufactures in the Middle East. In 2015, the company is spending $60 million to build an aluminium plant in Abu Dhabi. At present is has PVC factories, Copper Rod Plant and three cable manufacturing factories. (Source: Industry Leaders Magazine, 2011) Figure 1: Ducab cable manufacturing facility The company’s mission is to produce electric cables and other products with highest level of customer service and quality unparalled around the world (DUCAB, 2014). The long-term route to success is pursuit of continuous improvement and quality. 1.1.1 DUCAB: SWOT Analysis The table below shows SWOT analysis for Dubai cable manufacturing company Strengths: DUCAB engineers are certified and trained on Six Sigma and 20% of staff is trained on Six Sigma methodology. Partnered with Motorola University to attain new standards of quality management Successfully implemented 5‘S’ and Kaizen system for greater efficiency, innovation and productivity Powerful brand name as world class company for quality cables and founding member of Dubai Quality Group Upgraded to the latest ISO 9001 version for Quality Management Systems and ISO 9000: 2000 (DUCAB, 2004) Major customers approve and audit the factory’s management and operations system Good cooperation between IT professionals and technical engineers at DUCAB for correct cable sizes, fume zero and low smoke halogen cables Solid financial base to implement quality management systems Strategic location, timely delivery of products and uncompromising quality focus for projects such as KOC and Dewa projects Weaknesses: High turnover among specialized workers and experienced in quality management systems Limited customer base with possibility of ease of switch threatens customer loyalty DUCAB ethical standards with regard to compliance to labor laws dampens its business ethics Overreliance of expatriate labor lowers local capabilities Huge and insufficient finances required to advertising and delivering high quality cables Meeting all cable specifications under one single solution source (DUCAB, 2014) Limited product portfolio under instrument cable solutions Opportunities: Use of online access among electrical professionals during the cable selection program Allowed BASEC UK (cable industry certification specialist) to certify products and management systems Increased demand for cables with growth in real estate development in the Middle East Powering prestigious palaces an opportunity to showcase quality, great customer service and elegance (Charantimath, 2003) Emergence of nuclear plants and 8-month long-term test independently conducted in Toronto, Canada lends credibility to the quality process Threats: Piracy of cable technology and presence of cheaper cables from Asian countries affects the prices and demand of DUCAB cables. Some customers no longer associate premium prices of cables for high quality Specific projects require individual innovative cable system which demands high quality standards (Gastech, 2013) 1.1.2 Summary of Key findings DUCAB is a Dubai based government firm specialized in high quality cable manufacture. The firm was the first in the region to embrace quality management systems ISO 9001 and become certified under the UK BRASEC certification system for cables. The technology and manufacturing processes apply the six sigma methodologies adopted from Japanese Kaizen methods. About 20% staff including engineers and IT professionals has also embraced the Six Sigma for quality management under a partnership with Motorola University (DUCAB, 2014). Moreover, DUCAB has great brand reputation for quality and excellence after adopting quality management methods involving customers and suppliers when the methods were least known in the Middle East. Although the Quality management philosophy adopted by the company has guaranteed success, the turnover by staff and meeting cable performance specification for projects remains a challenge to DUCAB (Gulf Industry Report, 2004). In addition, extra financing is required in importation of new technologies that are compliant with environmental systems and energy saving. The company prides in online access to cable selection programs as well as increased demand to power palaces. However, cheaper cables from Asian countries are creating intense competition for cables to primary customers. In the nustshell, DUCAB is positioned as a company strategically located, offering timely product delivery and uncompromising quality focus for projects worldwide. 2.0 Quality management principles and impact of quality processes Total Quality Management is aimed at long-term quality development of quality services and products in an organization. Every process or activities are broken down in a way they contribute to the productivity or quality of the organization in entirety (Jones, 2014). The quality strategy is aligned to the objectives of the business and it is based on stakeholder and customer needs. Employees become motivated once the strategy is defined because they are empowered in their cross-functional and departmental teams. They are also encouraged to make suggestions for improvement and develop ways of solving quality problems. Besides, individual contribution is given attention while rewards are given to cooperative efforts of employees and self-improvement (Basu & Wright, 2012). Achieving quality through TQM and other quality procedures involves use of Pareto charts, ISO quality procedures and empowerment of teams. Empowering teams involve constant education and training on better use of equipment and process to increase efficiency. Pareto charts are intended to monitor and identify deviations or errors within a system, presentation of service or manufacture (Charantimath, 2003). ISO quality procedures are intended to meet the specific needs or customers and focus efforts on reducing costs and eliminating wastage. 2.1 Quality management principles at DUCAB There are several quality management principles that can be adopted by an organization. Customer focus and continuous improvement are some of the principles used by DUCAB. 2.1.1 Customer focus The organization depends on its customers to buy its cables, wires and PVC materials. Some of the big customers of the company are ALDAR, AREVA, ADWEA, SIEMENS, ABB, EMAL and DEWA (Gulf Industry Report, 2004). Therefore, the firm requires some understanding of their needs and expectations. For example, DUCAB won the contract to design, manufacture and supply cables to Jebel Ali power station at $14.1 million under DEWA project. The company was able to fulfill the cable system contract all the time from Station E to Station K by focusing on the specifications laid out by the engineers of the project. The focus was on timely delivery of high-quality products and also meeting cable performance specification under high standards. Moreover, DUCAB was able to meet the needs of KOC project by focusing on immaculate cable components and implementing the projects with extreme care. Most customers require fume zero and low smoke halogen cables (DUCAB, 2014). To meet this requirement, the company has certified under ISO 9000: 2000 to supply connect cable accessories, lead-sheathed cables, control and auxiliary cables and low voltage power cables. The company builds long-term relationship with its customers by timely delivering the products and focusing on quality without fail. The ideal choice of DUCAB by most customers is because it uses prompt delivery schedules and edges on quality assurance. 2.1.2 Continuous improvement DUCAB was the first company in the Middle East to embrace ISO 9000 standards and Quality Management Systems. The objective of continuous improvement is met through adopting the Six Sigma methodology (Mukherjee, 2006). To date, the company has been able to train and certify 20 percent of its Engineers and staff based on Six Sigma. The company has been able to not only to perform and improve cable quality but also improve on all functional areas of the business. This came to fruition upon adopting the continuous improvement philosophy from Japan (5 ‘S’ and KAIZEN) which have brought in more benefits to the company. The firm has been able to improve the work environment to increase efficiency, innovation and productivity. The advantages of Six Sigma on DUCAB are improved product quality cycle time and process, and increased customer satisfaction (Mukherjee, 2006). Since 2000, the company has conducted several Six Sigma schemes in two phases; control and maintenance of improvement levels for the first 5 project, and training employees to work on selected projects. More than 900 employees from 20 nationalities are working at DUCAB and the company is evidenced by cultural readiness to learn and be committed to the organization (DUCAB, 2014). The organization begun the process of improving quality by; Forming groups of 5-7 employees Training teams on continuous development, information gathering, problem-solving and methods and tools for analysis Gathering information and identifying opportunity for improvement Study and analysis as well as brainstorming Identifying a number of solutions and choosing the best option Determining and implementing mechanisms and applying a solution after involving them through training Installation of the solution and documentation after which a follow-up was done to ensure sustainable solution Since then, the company has been able to maximize efficiency especially in the production of quality PVC in-house. Despite facing resistance from older employees, the training supported the Six Sigma implementation process and created a sense of ownership in the organization. The training programs also covered different systems and processes under functional divisions in the company. The aim was to teach and enrich employees with knowledge and implementation of Six Sigma. Regarding its manufacturing process, the company invested early in energy efficiency and cable design to ensure minimal loss and energy wastage during transmission (Gurau, 2015). 3.0 Optimal implementation plan 3.1 Proposed quality management approach The most preferred approach for DUCAB is to implement Total Quality Management (TQM). This is because the company has provided more focus on high quality processes and systems at the expense of other functional areas of the organization. Since it has already implemented Six Sigma successfully, it has a challenge of meeting the requirements of clients without satisfaction among internal customers. TQM will be necessary because it encourages teamwork and mutual respect, emphasizes on continuous improvement, preferential on strategic approach to improvement, focuses on the customer and produces quality work the first time (Basu & Wright, 2012). 3.2 Maintaining quality performance The company will need to maintain quality performance consistent with the goals and objectives of DUCAB, exploit quality measures within resource reach and having measurable and clear goals. The following are suggestions on how DUCAB can maintain quality performance; a) Build pilot projects to include small quality projects within the organization to test process, systems, materials and people. The management will be able to understand the quality system well, have greater confidence and learn from mistakes. b) Provide flexibility for employee empowerment where all workers at every level of output can take pride and ownership of successful quality systems. c) Communicate higher quality by opening communication lines between stakeholders, customers, employees and management. Communication lines should allow for employee feedback, formally or informally, through feedback round-table meetings or feedback slips. This will also foster a culture of communication between employees and senior management. d) Acknowledge and reward achievements in quality. This can be team or individual rewards for meeting goals and objectives of the organization. The reward program will motivate the managers who in turn motivate employees. e) Design a quality system that maps and understand business processes and structures. Support stakeholder requirements by developing business performance priorities. DUCAB management should understand current performance measurement system and develop performance indicators especially on the upcoming aluminium production plant. f) Collect and present required data using statistical process charts and then test and adjust measurement systems on performance. Implement the performance measurement system such as DMAIC (Define, Measure, Analyze, Improve and Control) by demonstrating the system, training employees and managing user access. g) Focus on customer satisfaction by requesting satisfaction data on a regular basis. This can be collected and analyzed in form of surveys. h) Supplier relationship is very critical. Mold the purchase system to incorporate incoming materials, routine processes or activities, procedures and standards. Educate all the engineers and staff on process flow of the organization, communicating and measuring required standards. For example, a cross-training maybe necessary for the procurement personnel to understand the cabling materials required for specific projects. i) Educating and training is for the management to learn new quality development in cable manufacture and to understand changing customer requirements. This should include quality tools and brief overview on quality goals of the organization. j) Audit the quality management system by introducing PDCA models or customer surveys to obtain feedback from the process and people respectively. 3.3 Key performance measures Performance measures in a quality improvement processes are important in order to manage quality. The necessary management decisions can be made when statistical analyses have been undertaken (Jones, 2014). Control charts are common quality systems with specified limits (Lower Control Limit-LCL) and Upper Control Limit (UCL). For example, in the DUCAB cables, the lower limit can be set at 0.02nm while the upper limit at 0.18nm. Any readings falling outside this limits signals a process that is out of control and corrective action is required. The control chart will be able to show systematic errors as points outside the control limits as shown in the graph below. Figure 2: Statistical control chart for cable manufacture process From the figure above, special points appear outside the limits which show that action needs to be taken to control the thickness of the wire being produced in the factory line. The statistical measures are appropriate because they are achievable, benchmarked to the competition, reflect vision and values of DUCAB and are customer driven. 4.0 Conclusion Quality systems and improvement are critical for DUCAB to meet consumer expectations and increase its competitiveness. The company is already certified under ISO 9000 on quality standards and Six Sigma. To meet is goals and objectives; it must time and again adopt quality systems in all its parts of the organization through Total Quality Management (TQM). By doing so, it gain more benefits and increase its performance to customers and satisfaction to its employees. The company will also need to develop performance measures, control charts, to keep track of quality within the production line and meet the quality standards. References list Basu, R. & Wright, J.N. (2012). Quality beyond Six Sigma, Routledge. Charantimath, R. (2003). Total Quality Management, Pearson Education India. DUCAB (2004). Quality, http://www.DUCAB.com/en/quality-assurance/quality. Gastech, 2013, DUCAB company profile, http://www.gastechnews.com/gtn-members/ducab/. DUCAB (2014). DUCAB highlights energy-efficiency focus at WFES 2014. News. http://www.DUCAB.com/en/media-centre/news/111069. Gulf Industry Report (2004). DUCAB cables for Dewa, KOC projects, Al-Hilal Group. http://www.gulfindustryworldwide.com/news/2714_DUCAB-cables-for-Dewa-KOC-projects.html. Gurau, A. (2015). Why is quality important to an organization? Retrieved from: http://www.icmci.org/?page=17673085. Industry Leaders Magazine, 2011, Ducab, http://www.industryleadersmagazine.com/ducab/ Jones, E. (2014). Quality management for organizations using Lean Six Sigma Techniques, CRC Press. Mukherjee, P.N. (2006). Total Quality Management, PHI Learning Pvt Ltd. Rawlins, R.A. (2008). Total Quality Management (TQM), AuthorHouse. Read More