13, October, 2010Executive SummaryThis paper was to critically review the various differences and similarities within the manufacturing as well as service organizations in terms of ISO 9000, Six Sigma and Baldrige theoretical approaches. A literature review to identify the best practices for each of the three theoretical approaches has also been given with an inclusion of case studies for each of the identified theoretical positions within the manufacturing and service industries. The paper also gives a critical review of management and leadership practices effective in maximizing continuous as well breakthrough in quality improvements for the two industries.
All data was obtained from both primary as well as secondary sources. Major similarities have been identified in for example the various aims as well as objectives that each standards seeks to achieve like for example the enhancement of customer satisfaction in both sectors. A major difference is however noticeable in the process of registration costs as well as time and in the process of assessment and the assessment criteria. Obtained results from this research provide an important insight into the various ways through which these two groups of industries engage as well as perceive each of the three theoretical approaches, an insight into the occurrence of diffusion as well as the reality of the various claim made in relation to the applicability of these approaches.
According to the findings obtained it is clear that the two sectors can always learn from each other and that the various theoretical approaches are definitely not applicable in all sectorsBack Ground of the StudyEnsuring effective practices of quality management is one key way through which competitive advantage in both services and manufacturing organizations can be obtained.
Quality can be defined as the degree to which services, products, relationships as well as processes are free from any kind constraints, defects and even any kind of items which do not enhance customer satisfaction (Pryor, White, and Toombs, 1998). To ensure quality, manufacturing and services organizations have implemented a number of quality initiatives that include six sigma and Quality Award Criteria such as ISO14000, ISO 9000 and the Malcolm Baldrige National quality Award Criteria. According to the International Organization for Standardization, the standard ISO 9000 seeks to quality management in terms of what a particular organization is doing to ensure customer satisfaction, quality requirements of the customers, applicable regulatory- requirements as well as the achievement of continuous improvement of the organizations performance as it works towards achieving its set objectives and goals (ISOb, n.d. ).
ISO 9000 is based on 8 basic principles that include customer focus, leadership, active participation of people, process approach, management through systematic approach, continual improvement, factual approach in terms of decision making as well as ensuring supplier relationships that are mutually beneficial. The Malcolm Baldrige National quality Award abbreviated as MBNQA came into being in the year 1988 as a management system or model through which people operate and assess their businesses or companies and expect to excel as a result.
This criterion strengthens competitiveness in three major ways which include; ensuring improvement in the capabilities, practices as well as results of organizational performance, facilitation of communication and information sharing among all organizations and providing a tool to promote understanding as well as managing performances and act as a guide to organizational planning and learning opportunities.