Quality in Management - Assignment Example

Quality in Management Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name 13, October, 2010 Executive Summary This 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 sectors Back Ground of the Study Ensuring 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. Six Sigma, a strategy of management established by Motorola in the year 1981, works towards improving the quality standards of process- outputs through the identification and removal of the various causes of errors or defects as well as reducing the variability in business and manufacturing processes. This strategy uses various methods of quality management such as statistical methods (Jarvis, Curran, Kitching, & Lightfoot, 2000). Though Six sigma was initially established for to be used by the manufacturing industries, its use has spread even to the service industries (Stamatis, 2004). The application of the above quality management strategies and standards tends to be both similar and different in different types of organizations. This paper seeks to critically review the various differences and similarities of these strategies within the manufacturing as well as service organizations. 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. Goals of the Study To critically review the various differences and similarities in services and manufacturing industries in relation to Baldrige, Sigma Six and ISO 9000 theoretical approaches. To identify the best practices for every theoretical position discussed, citing out case studies within the services and manufacturing industries. To critically review and identify management and leadership practices likely to maximize continuous as well as break through in quality improvements for the two industries (manufacturing and services). Methodology of Study Data and information for the research study was obtained from primary and secondary. Primary sources involved collecting data from both service and manufacturing industries with focus being on organizations’ CEO as well as other members of staff. Sources that included peer reviewed journals, reports from previous research findings as well as text books. Materials were obtained from the internet, the school libraries and other resource databases such as ERIC. The research was narrowed down to materials published between the years 1998 and 2010. Key Words: Six Sigma, ISO, ISO 9000, Baldrige, The Malcolm Baldrige National quality Award, Quality Management, Quality Management service industries, Quality Management in manufacturing industries. Research Findings Similarities and Differences in Manufacturing and Services Organizations Similarities The applications of Six Sigma in the manufacturing and service industries is similar in such a way that the unit of work for both industries is changed from inputs to outputs ready to satisfy the demands of the customers through a process. Working in both industries requires a process through which products and services are developed, brought into the market, produced, revenue obtained cashed as well as a process through which customers are taken care of while using these products and services. It is the establishment of such processes that will enhance the application of Six Sigma (Czinkota, Ronkainen & Moffat, 2005). Manufacturing and services organizations appreciate that the need to ensure quality translates through all the way to the bottom- line. The industries are also aware that for quality achievement to be successful there is need to have a higher level of employee participation. Baldrige award has been awarded to organizations both in the manufacturing and service sectors. In both of these organizations a similar criteria is used with emphasis been placed on the level of consumer satisfaction as well as clear evidence indicating that benchmarking makes up a major component of the quality system of all companies. The evaluators need to also to identify the passion to enhance quality is present in the entire organization or not. The approach calls for all employees to ensure commitment in the customer satisfaction. This therefore requires that all staff members get to actively take part in undertaken projects to improve quality. These projects are mainly based on the efforts of team members (Evans and Lindsay, 2007). The process of benchmarking performance and service standards is insightful both to the service provider as well as to the manufacturer. The discipline brought about by ISO 9000 is valuable to both the manufacturing and services industries. Researches undertaken have shown no significant differences between both industries in regards to cost as well as time taken to obtain registration for the standard (Carter and Mueller, 2005). Differences In relation to Six Sigma, a clear difference exists in the process of product generation- turnover between service and manufacturing industries. The normal life time for example for the generation f a car within the automotive industry is approximately four to six years while that of generating a communication- product is only a flew months with a maximum period of two years. This is to mean that there is a need for processes to be designed and implemented faster as there is very little time for optimization. It is therefore necessary for service industries to ensure that their processes as well as products are free from any possible defects before they are launched. In the case of manufacturing industries, raw materials as well as products that are unfinished can be seen transforming into finished products along the line of production. In the service sector, a paper flow can be followed though in most cases the service production history will need to be obtained from the computers (Montgomery, 2009). In the manufacturing industries one can physically assess the processes being undertaken or the work progress. Service industries on the other hand will require one to carefully study data like from the computers for example. Both attribute as well as continuous data can be obtained form both industries the difference however comes in the amounts of the data that can be obtained. Most data in the manufacturing industries is continuous while the service sector contains attribute data. Differences in the application of Six Sigma can also be explained in terms of tangibility whereby, in the service sectors the creation of a product takes place during production while in the manufacturing sectors a tangible piece of the product can be seen. Meaning that application difference related to Six Sigma tools is dictated by time. Service industries have been said to head in determining and even prioritizing the needs of their customers. In the manufacturing sectors, Quality Function Deployment approach has not been widely adopted though the objective is the same as that in the service industry. Identifying the needs of the customers is best obtained in the service industries where by the customers are able to speak out on their various needs through devices such as Customer Focus Groups. It is also in the service industries that customers are able to interact with service providers on a one on one basis. The identification of customer concerns and needs is one way of assessing as well as improving the level of customer satisfaction (Stamatis, 2004). In a research to identify the various similarities and differences that exist in the application of ISO 9000 in the manufacturing and service industries, a slight difference was identified on the motivation for the process of registration as well as in the level or number of difficulties obtained. Higher difference were obtained between the two groups of industries in terms of the various benefits obtained as well as the management practices that are related to the ISO 9000 standard ( Montgomery,2009). Manufacturing industries have been found to place more emphasis mainly on ISO as their primary quality management approach as a way of focusing on process speed as well as waste elimination. ISO has also been used in the service industries though the service sector has more likely been found to use a number of process- improvement systems such as Total Quality Management during the 1980s and later evolving into the use of Six Sigma during the 90s.Despite the fact every of these kind of methodologies was initially viewed as being different from all the others, companies are beginning to realize that thare exists a valuable synergies between these approaches. Many service industries have for example already started to blend ISO 9000 and Six Sigma. According to Dr. Paul Schyve, senior- vice president at JCAHO solutions to making medical errors is lies in changing the processes and systems within which individuals work with an aim of making it more difficult for errors to crop up. Dr. Paul also believes that that ISO 9000and accreditation can effectively work as one and complement one another. ISO 9000 has been identified as a proven methodology through which health care institutes can effectively be able to ensure better management and permanent quality improvement while at the same time enhancing synergy between regulatory processes and accreditation. It is through Six Sigma that health institutions have been able to reduce the number of deaths resulting from occurring medical errors and negligence. Many organizations who began with ISO 9000 have in turn added the practices and principals of Lean- Six Sigma to it.  The processes of documentation standardization, mapping, data collection, auditing as a way of assuring control as well as the goal relating to quality consumer experience are essential to both (Neil and O'Neill, 2000). One key principal premise of Six Sigma is that executive sponsorship results into success. Most organizations that have developed a Six Sigma approach of infrastructure have in turn placed individuals they have trained into positions of leadership. This means that these individuals use their extensive knowledge, tools and skills in business and in Six Sigma to become leaders as well as creators of change. This is the reason that makes leadership training a large phase of the process of Black Belt certification. Organizations like GE have made a requirement for an individual to be Six Sigma-certified as a qualification for promotion (Communal & Senior, 2001). In a research study aimed at investigating the application of Six Sigma within Indian software industries, it was found that the key factor in the application of this approach was management involvement and commitment. Documentation management and the involvement of suppliers were indicated as being the least important (Thawesaengskulthai & Tannock, 2008). Leadership and Management Practices That Can Maximize Continuous and Breakthrough Quality Improvements One of the critical examples of business process management is the use of accredited quality assurance systems. One of the chief advantages of using these systems is for the provision of a culture which is based on the management of business processes. The quality assurance systems have been widely used as the basis points of the most important process of total quality management. Systems such as EN ISO 9000 have been widely recognized by a number of companies. Some people have argued that the process of registering with ISO 9000 lays a formidable foundation for building a quality culture which has made companies work towards the development of a total quality process. Due to active involvement in this area by the company pushes a company to very high profiles. This has made the company to be in better positions to meet the requirements of their particular customers. In most of the recognized cases, registration to these systems has been met with international recognition. It has also occurred that in some cases, this registration process is not a choice matter but one of the customer’s minimum requirements. This shows that the quality assurance systems can help very much developing of approaches which are based on processes and some basic principles. Such a principle is doing the right thing without having to repeat it and repeating this process of doing the right thing first time over and over again. Another important aspect is the quality structure. This has been depicted to be one of the core elements of management in the modern days. This is a very important issue in the setting up of a business process management. It is however noticed that it cannot solely change how the organization is managed towards the achievement of its objectives as set in the blueprints. This brings along quite some controversy. It is mainly due to the proponents of the processes who view it as one of the best ways to bring about change in the organization. In the total quality management implementation, the role of the structure and also its type and usefulness in the organization is seen to vary from one organization to the other. The differences in this approach also bring along differences in culture according to Smith (2004). This strategy requires frequent revision and assessment in order for it to be in line with the objectives of the company. One key principal premise of Six Sigma is that executive sponsorship results into success. Most organizations that have developed a Six Sigma approach of infrastructure have in turn placed individuals they have trained into positions of leadership. This means that these individuals use their extensive knowledge, tools and skills in business and in Six Sigma to become leaders as well as creators of change. This is the reason that makes leadership training a large phase of the process of Black Belt certification. Organizations like GE have made a requirement for an individual to be Six Sigma-certified as a qualification for promotion (Communal & Senior, 2001). Another important practice is that of strategy. For the success of the business process management, there has to be an effective alignment to goals of the corporation. All employees should be in such a way that they are in line with the customer requirements and thus the satisfaction of the customers. The organization should always seek to link efforts in quality with the purpose of the organization. The organizational objectives in this case should follow a formal process in line with corporate purpose. The process of implementing the goals should go hand ion hand with what had been initially planned (McAdam, 1996). Problems during the Research The process of carrying out this research was successful though there were a few setbacks during the entire study. One major problem included difficulties obtained while conducting the interviews and especially from the members of staff from the various organizations. The employees were reluctant to give out information regarding the industries as they felt that they disclosing company information, a situation which could cause them problems with their employers. I also encountered difficulties in approaching a number of CEOs and especially in companies where there is a high level of bureaucracy. Some of the CEOs did not allow me to interview them or even their employees. Another major setback was the contradicting information I obtained from those that I interviewed. In some situations for example, information obtained from the employees did not match that obtained from the CEO hence creating a major problem during the process of analyzing this data. In other instances, employees from the same company could have totally different views on a specific issue. In a number of the organizations that I visited employees did not have enough knowledge on the company’s implementation of either or all of the three approaches and hence could not give any accurate information. Another problem was the lack of sufficient as well as recent or up to date materials from the libraries as well as the internet to be able to give me all the information that I required. The other problem was insufficiency in funds for carrying out the research as well as presenting the report. Major costs during the research included travelling costs and obtaining materials for data collection. Conclusion From the above findings, it is evident that the application of Six Sigma, Baldrige and ISO 9000 theoretical approaches within the manufacturing and the services industries are both similar but at the same time different in one way or another. 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. Working in both industries requires a process through which products and services are developed, brought into the market, produced, revenue obtained cashed as well as a process through which customers are taken care of while using these products and services. 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 sectors. If the leadership and management Practices that can maximize continuous and breakthrough quality improvements are effectively adhered to in a company, there will be an eventual customer satisfaction which will assist the company in increasing the returns. Quality is a process that has been seen to start from the management and trickles down to the employees all for the purpose of fulfilling the needs of the customers. References Carter C. and Mueller, F., (2005) The scripting of Total QM within its organizational biography. Organization Studies, 26 (2): 221-247. Communal, C., Senior, B. (2001), "National culture and management: messages conveyed by British, French and German advertisement for managerial appointments", Leadership & Organization Development Journal, 20 (4): 26-35. Czinkota, M., Ronkainen, A., & Moffat, H., (2005) International Business, 7th Edition, USA: Thomson South Western. Evans, J.R., and Lindsay W. M. (2007) Managing for Quality and Performance Excellence. Ohio: South Western Educational Publisher. International Standards Organization (ISOb). (n.d.) ISO 9000 and ISO 14000. Retrieved October 14, 2010 from http://www.iso.org/iso/iso_catalogue/management_standards/ iso_9000_ iso_14000.htm. Jarvis, R., Curran, J., Kitching, J., & Lightfoot, G. (2000). The use of quantitative and qualitative criteria in the measurement of performance in small firms. Journal of Small Business and Enterprise Development, 7(2), 123-134. McAdam, R. (1996), “An integrated business improvement methodology to refocus business improvement efforts”, Journal of Business Process Re-engineering and Management, 2 (1): 63-71. Montgomery, Douglas C. (2009). Statistical Quality Control: A Modern Introduction (6 ed.). Hoboken, New Jersey: John Wiley & Sons Neil, T. and O'Neill, M. (2000) "Preventing Death and Injury from Medical Errors Requires Dramatic, Systemwide Changes." press release, Institute of Medicine, Division of Health Care Services. Pryor, M. G., White, J. C., & Toombs, L. A. (1998). Strategic Quality Management: A Strategic, Systems Approach to Quality. Thomson Learning. Smith, S. (1994), The Quality Revolution, Management Books 2000 Ltd, London: Didcot. Stamatis, D. H. (2004). Six Sigma Fundamentals: A Complete Guide to the System, Methods, and Tools. New York, New York: Productivity Press. Thawesaengskulthai, N. & Tannock, J. (2008) Trends in QM and Continuous Improvement Initiatives, International Studies of Management and Organization, 38:2. Read More