Quality Management and Frameworks - Assignment Example

Quality Management and Frameworks Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecture Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 24th April 2012 Part A Quality management framework A quality management framework (QMF) is structure or outline that is used as the basic tool used by organizations when addressing complex issues in regard to organizational management systems and sustainability while providing products and services (Burge, Jackson & Tannock 1996, Pp 9). Each organization is consequently required to structure good quality management frameworks since they add force to the organizational success in the context of building and sustaining a high performance organization. Remarkably, effective quality management in an organization results to a profitable organization with increased competitive advantage. According to ADFCA 2012, Abu Dhabi Food Control Authority (ADFCA) is an authority board established in the emirates of Abu Dhabi for the purpose of monitoring food safety in the Emirates. However, under the expanded authorization by the state, the authority has included agriculture and animal farming. Besides the function of ensuring public health, the authority establishes policies and standards in regard to food safety and quality thus specializing on food safety and food inspection. From its services and operation in the emirates, it is evident that the authority has been effective in its operation. Inherent of its successful operation, the company must be using an effective quality management framework. In reference to the British Standard QMF PAS99 and Integrated Management System, ADFCA has been remarkably obtained its success through applying the QM principles. Notably, the ADFCA must have been sensitive to the QMF bearing in mind that it deals with food safety and food quality through production and inspection (ADFCA, 2012). Generally, the QMF principles application in ADFCA has contributed to the authority’s successful operation. The QMF application has provided the authority with tools for assessing the current health of its environment. The authority is aimed at food safety for the public welfare in regard to health. It would have been tedious if the authority had not adopted a QMF since its main role would not have been accomplished. The QMF principles additionally help an organization to understand its scope and identify its major areas of operation eventually identifying areas that need stress and emphasis (Burge, Jackson & Tannock 1996, Pp 6). ADFCA is a public based organization. Thus, the authority need understand its scope and the expectations of the public in its operation. The QMF helps identify the major roles also known as the primary roles or the organizational goal. Consequently, the other substantive but essential roles are identified. Identification of scope, role and functions is one of the major key factors to the success of an organization. It is only until a business or an organization has been able to identify its major and minor functions that it can be able to perfectly pursue them. Following the identification of roles and functions, the authority through the principles of QMF is able to allocate the resources effectively. The resources are in reference to financial, physical and human resources. Priorities in the same are also valued and directed to the centralized organization goal. Resource allocation is a major area of concern faced by all businesses or organization. The success of such an organization is consequently in a major way dependent to the allocation of resources such that they are distributed in the best interest of the organizational goal in reference to the priorities. Quality management frameworks give an organization the basis of continuous improvement (Burge, Jackson & Tannock 1996, Pp 7). It is evident that the continued improvement of the ADFCA has been reaped from the use of the QMF principles. Principally, ADFCA was established on the basis of food inspection on safety and quality. However, the authority has expanded its scope to the extent of production rather than inspection only. The authority has become prominent in the agriculture sector of plants cultivation as well as animal husbandry. Moreover, the authority is responsible for policies and legislation of laws in regard to public health as well as livestock health. Apart from the administration of policies, the authority has continued to set up veterinary hospital and clinics through the expansion of its sectors (ADFCA, 2012). However, the authority would have been bound to failure if it failed to overlook on the effective QMF principles. The continuous improvement must however go alongside planning and control as some of the managerial roles and functions. The QMF principles can therefore be based on the coordinating role of management which links the planning and controlling which must consequently abide to the set standards. Organizational success is inherent of the managerial success in the roles of planning and controlling being the core feature of management. However, leadership is also essential. QMF provides leadership guarantees to the organization while coordination in planning and controlling has been effected in the continuous expansion of an entity. ADFCA has been able to become an international organization in areas of agriculture, public health and quality and safe productions based on the QMF principles (ADFCA, 2012). Risk management is the other essential key factor to the definition of an organizations success. QMF lays the outline for such instances when risks in regard to food quality and safety inspection as well as production in the case of ADFCA. The stakeholders are comfortable with an organization if there is perfect risk management which can only be managed through effective QMF application (Burge, Jackson & Tannock 1996, Pp 8). Generally, ADFCA among other international authorities and organizations rely on QMF application for their success. Part B Quality Management and Frameworks As previously discussed in the introduction section that quality management frameworks refer to the tools that the organization puts into use in attaining its objectives for instance successfully delivery of the products and the services of the organization. ADFCA as an international organization is recognized in implementing management systems that are geared towards improving its performance. For instance, ADFCA is known to comply with ISO9001: 2008, ISO14001: 2004, OHSAS18001: 2007, Integration Compliance Certificate and the BSI Specification PAS99: 2006 (ADFCA 2012). In addition to making the organization, internationally recognized, there are other benefits which are achieved when an organization makes use of management frameworks. Among the benefits achieved when management frameworks are put into use includes the quality assurance of the products of the organization, continuity of the business achieved through achievement of the organization’s objectives and corporate strategies among other benefits which are integrated into the organization’s management frameworks. Use of PAS99 Risk Assessment The PAS99 is a risk assessment used by ADFCA in providing an assessment of the risk of fire in buildings and through this assessment, the company makes recommendations which are based on the compliance of the organization with the regulations that are in line with ensuring that safety is maintained. ADFCA is a complex organization with complex operations in the Emirates and this necessitates the need for the organization to have operational elements for instance the PAS99 in assuring quality and control of the organization. In as much as the quality assurance in PAS99 appears as policies laid down by the organization for risks assessments, the framework helps in instituting standards which are to be followed through out when the operations of ADFCA are carried out and this further aids staff in achieving the objectives which are set forth in the departments. PAS99 outlining the policies to be followed in a document shows that there is organization in ADFCA and coherency is gained through integration of strategies geared towards quality. BSC (Balanced Scorecard) Management Framework One of the management frameworks that ADFCA uses, is the BSC framework whereby this is a framework that is used by the organization’s strategic management in providing clear prescriptions on what the organization is supposed to measure in order to have a balanced financial perspective. The BSC enables ADFCA to develop strategies, execute the strategies and control performance management in the organization over the years. The company in implementing the BSC framework considered factors for instance future vision of the organization, strategic aspirations of the organization, its employee performance system and how this system was going to be aligned with the human resource of the company (Cobbold, & Lawrie 2002). The BSC as a management framework works in supporting the management to link both the short term strategic objectives and goals of the organization with the short term goals and objectives of the organization as illustrated in the Figure 1. Below; Figure 1: Figure illustrating how the BSC is used by ADFCA to help the organization in the attaining of both short term and long term objectives Owing to the fact that the organization IT department is paramount in the day to day operations of the organization, the performance and the contribution of the IT department can no longer be measured through financial performance, the BSC model or approach helps in understanding the contribution of IT in the organization since IT is an integral part of the organization and which measuring it in monetary terms is close to impossible and hence the BSC framework. Overall Quality Control of the Organization’s Products Through ADFCA quality control frameworks, the process guarantees that the quality of the products supplied all over the Emirates are predetermined by set standards and this is done through ADFCA regulating food establishments in the food industry which are over 3000 and an additional 2500 farms making up the agriculture industry where Abu Dhabi distributes its products in the Emirates making it certain that there are no assumptions about the quality of the products supplied in the Emirates. Therefore, the establishment of the BSC model helps ADFCA to be accountable in achieving government’s outcomes and coordination across all the Adu Dhabi outlets, links the operational plan of the company with the organization’s corporate strategies, and also meets the expectations of Abu Dhabi stakeholders. Integration and externality of the Organization For instance, through the BSC, the quality of the products produced by the company is reliant on the integration of the entire department for quality. The compliance of the organization in the above mentioned management frameworks allows the organization to have organization in the achievement of goals, corporate strategic plans and objectives in such a way that can be considered seamless for the organization. Part C Six Sigma is a business strategy which was developed back in the 1980s by Motorola. It is a training program that is applied by most organizations to come up with ways to reduce wastage and at the same time increase profits. Though it is widely accepted it has various weaknesses and they mainly occur if business applies them incorrectly. Upon the application of the Six Sigma ADFCA will be faced by a number of weaknesses as well as problems when they implement Six Sigma in their organization. This includes complexity upon application, applicability, expensive, distractive and training problems. Weaknesses Complexity Six sigma mainly applies various metrics and forms of investigation so as to analyze business practices. When all these aspects are applied the process becomes more complex and it seems to be even more difficult for individuals with no training on how to apply Six Sigma (Basu 2004, p. 50). Cost The process of Six Sigma seems to be a costly process. The materials as well as seminars conducted in regard Six Sigma training tend to be expensive and mostly in regard to large companies. At time, the costs greatly outweigh the efficiency that the organization may gain if the process is implemented correctly. Also implementation on its own has other associated costs thus making the whole process costly. Distraction The Six Sigma is a very linking process in an organization and in most instances it causes a lot of excitement to the management and to the employees who are eager to reap the benefits that area associated with the system. In some instances it acts as destruction since some companies tend to pay a lot of attention to Six Sigma hence they end put losing their focus on their core business. Therefore it ought to be used in moderation. Training problem Since Six Sigma is a costly process most organizations are not able to train all their employees and so they tend to select a smaller group of employees. The aspect of selecting of certain number of employees may lead to problems within the organization since some employees may feel that they should have been selected. Also employees who have been trained may not stay long in the organization since they seem to be more attractive to the organizations competitors and the competitors may be more than willing to pay more than their current employers (Bhote 2002). Applicability While Six Sigma has proved to be successful to some businesses it is not successful in some businesses. Most service industries face a lot of difficulties in applying Six Sigma which had been initially developed for factories as well as for supply inputs. Thus in instance when Six Sigma cannot be effectively used, most businesses tend to loss profits that would have been generated by its use. Benefits of Using Six-Sigma Model Proven success The six sigma approach where well utilized has been seen to produce statistically better results in terms of a business performance including increased annual revenue, higher value of a listed company stock and more satisfied employees. IBM is one of the examples of the companies that have successfully applied the approach to enable use of innovation in faster value creation and delivery (Breyfogle, Cupello, and Meadows 2001, pp. 9). ADFCA can also apply Six Sigma quality management approaches to ensure its success just like IBM and Motorola (their earnings per share went up by $1 after its application). Improved Customer Value Satisfaction of customers for companies using the six sigma model is higher as people delivering the services (employees) are satisfied with their employer. Job gratification among employees means that they will serve the company excellently and deliver services to the best possible quality. This satisfaction of the employees is derived by better communication and team effort in the organization. Cycle Time Reduction Six sigma focuses on measurable performance criteria, thus processes that produce input have to enhance their efficiency to make sure their inputs are delivered on or before their deadlines. Motorola used process mapping to produce new pagers in less than a day down from 40 days that were taken earlier. Combined with better communication and co-operation of employees ADFCA can be able to deliver services to its clientele much faster. Cutting Costs If ADFCA invests in instruction of employees, reorganizes its infrastructure and cultural evolution of the organizational culture, ADFCA can reduce its costs through Six Sigma. To evolve the organizational culture to a level where each individual in the organization understands the impact of their deeds on the organization, ADFCA needs to invest a sizable amount of money in shifting the organizational culture. General electronics were able to reduce their costs by over $10 billion over a period of ten year; Honeywell also saw its costs go down by $800 million. At Motorola Six Sigma has seen costs of creating new devices go down by more than $1 billion between 1987 and 1994. Long-term performance solution Six Sigma avails the organization with solutions that they can apply for decades and not just short-term remedies that drive sales up for a while then fade. The changes brought about from implementing the Six Sigma model can ensure ADFCA continue maintaining quality for a long time at all the levels of the organization (Eckes 2003, pp 4) Employees are better motivated and engaged Six Sigma analyzes each workers job establishing the cause of trouble and coming up with long-term solutions to these problems. Six Sigma makes sure that employees involved in a certain problematic task are engaged in the solving of the problem and that they understand the impacts of the solution on their work (Snee 2004, pp 16). Six Sigma also requires that employees be retrained to have the best fit in the organization. Competent workers who fit perfectly in their roles in the organization will be more confident and faster in performing their tasks and their final outputs will be of high quality. References Snee, R.D. 2004, Six Sigma: the evolution of 100 years of business improvement methodology, International Journal of Six Sigma and Competitive Advantage, Volume 1, Issue 1, pp.4–20. Breyfogle III, F.W., Cupello, J.M. and Meadows, B. 2001, Managing Six Sigma, John Wiley & Sons, New York. Eckes, G. 2003, Making Six Sigma last (and work), Ivey Management Services, November–December, pp.1–5. Cobbold, I. & Lawrie, G. 2002, “The Development of the Balanced Scorecard as a Strategic Management Tool”. Performance Measurement Association. ADFCA, 2012, Abu Dhabi Food Control Authority, retrieved from http://www.adfca.ae/english/aboutADFCA/Pages/default.aspx on 24th April, 2012. Burge S, Jackson N & Tannock J, 1996, Specification for a Quality Management Framework at Departmental Level, Engineering Professors’ Council, retrieved from http://www.epc.ac.uk/uploads/occasional_papers/op09.pdf on 24th April, 2012. No.9 Basu, R. 2004, Six Sigma to operational excellence: role of tools and techniques, International Journal of Six Sigma and Competitive Advantage, Volume 1, No. 1, pp.44–64. Bhote, K. 2002, The Ultimate Six Sigma. Beyond Quality Excellence to Total Business Excellence, AMACOM, New York. Read More