Quality Improvement Is Essential For Maintaining Competitiveness.
Thesis statement
Improvement of both products and production processes is the key to through better understanding of customer requirements is the key to capturing world markets.
Introduction
Quality improvement can be termed as a formal approach which involves the analysis of organization performance and efforts considered to improve it. Quality improvement is associated with activities that are undertaken to minimize the gap between the current practices and expected practices. Through quality improvement, organizations are able to harmonize and systematize the provision of products to the customers. This happens by engaging providers of products at their point of delivery and assessing the performance of their programs. This is done for the purposes of developing methods which can enable such providers to offer better quality in their products. The key objective of quality improvement is, therefore, to ensure that an organization provides the expected and desired level of quality in its goods or services.
It is, for this reason that organizations engage in measurement in order to be in a position to evaluate quality and verify progress. The use of quality measures in organization is intended at evaluating the degree to which the set standards are being met. It is also aimed at establishing results that portray the extent to which an organization satisfies its customers. Quality measurement is conducted by the development of collection and analysis of data on a routine basis. This is made possible by implementation of staff self assessments as well as supervisory assessments. It is through the use of qualitative and quantitative information that such assessments are able to reflect on progress.
Strategies used in quality improvement
Quality improvement is usually based on three strategies that enable a company to improve quality across the whole institution. One of the areas that organizations have a focus on is product improvement. The rationale behind product improvement is that, the more an organization improves its products, the better they will sell. Product improvement is aimed at meeting the needs of customers so as to ensure customer satisfaction. An organization that is able to customize its products according to the tastes and preferences of customers is able to have a competitive advantage. This is because it is able to develop customer loyalty hence customer retention.
Process improvement is the other core issue when conducting quality improvement. Process improvement is associated with the daily processes that are used in conducting business operations. These processes vary depending on the type of organization. They can be manufacturing processes of various products, or processes implemented to ensure customer satisfaction. Proper attention is provided and every aspect of the business is analyzed to ensure success.
The third element that is considered while conducting quality improvement is people based improvement. Companies and institutions are managed and run by individuals. It is, therefore, considered to be essential to improve the individuals that run those organizations. This includes everybody from the top executives to the low level managers. Improvement of human resource in an organization is usually conducted through training and development.
The training of managers and their employees is aimed at ensuring that they have techniques that are effective in the provision of products. This is considered to be important as it forms part of customer satisfaction that is one of the determinants of competitiveness. For organizations to be in a position of providing latest features in the products that they offer, they must have well trained employees. Training and development is also considered to be paramount as it enables companies to address concerns and questions by customers. Mosser (1997).
Techniques used in quality improvement
Various techniques are used by institutions to implement quality improvement across all areas of an organization.
Six sigma
This is a business management tool that was developed by Motorola Company in the 1980s. The objective of this quality improvement tool is to improve quality output and efficiency of companies. This is made possible by spotting the likely defects in a certain process and minimizing the variability in output. This strategy uses two methodologies for improvement of organization process.
The first methodology is acronym of DMAIC. This represents the five phases in this methodology which include; Define, Measure, Analyze, Improve, and Control. This methodology is usually for the purposes of improving existing business processes. In order to do so, an organization should first specifically define the objectives and goals of the organization process. This should be followed by measuring major aspects of the existing process after which collection of relevant data should take place. After data relating to a particular process has been collected, it should be followed by an analysis of the data. This phase should seek to find out the source of the defect of the process. This is then trailed by the stage where the process is improved with a basis of the data that has been analyzed. This is done by use of techniques such as experiment design. The last phase of the methodology is controlling the process to ensure that any realized deviations are sorted out before occurrence of any defects.
The second methodology has the acronym of DMADV. This is meant for projects that have the purpose of developing new process designs. The acronym represent the five features; Define, Measure, Analyze, Design, Verify. The first feature involves designing goals that correspond to both company strategy and demands of customers. It is then followed by identifying and measuring aspects that are crucial to quality of the process. This is followed by an analysis of the design alternatives that have been created for the purposes of selecting the best. After analysis of the alternatives, it is then time to design the best process. At this stage there should be a plan on how to verify the design. The last phase is the verification of the process design which includes setting up pilot runs. Richard A. (2006).
Total quality management
Total quality management can be considered as an integrative management philosophy. It is aimed at improving the quality of products and processes on a continuous basis. TQM operates on the basis that the quality of products and processes is an organization responsibility. It should, therefore, incorporate everyone that is concerned in the manufacture of products that are offered by an organization. Everyone involved in meeting and exceeding customer expectations has a role to play in TQM. This includes; management, human resource, suppliers and also customers. Total quality management has its focus on identifying the origin of quality problems and correcting them at the source. This is considered as opposed to analyzing the product for defaults after it has been produced. Ahire (1997).
Quality Control Circle (QCC)
Another technique that is used in quality improvement is the use of quality control circle. This involves a group of employees who come together with the aim of identifying, analyzing, and solving work related issues. Such a group is usually made of eight to ten members and decisions are arrived upon through group consensus. The major concern and goal of quality control circle is to solve quality problems that exist in an organization.
International organization for standardization (ISO)
The use of universal standards also exists as organization try to portray that they adhere to international standards of quality. In the year 1987, the International Organization for Standardization produces its first set of standards for quality management. The purpose of International Organization for Standardization is to have an agreement on international quality standards. These standards are called ISO 9000. The standards consist of quality standards that are expected of companies. In the bid to meet these standards, organizations are involved in continuous quality improvement. It is by getting ISO 9000 certification that organizations portray that they have complied with the set standards. This, therefore, enables such organizations to demonstrate that they have gained global acceptance. It, therefore, means that such companies have an advantage of conducting global business over those that don’t have the certification.
Kaizen
This is a Japanese technique for improvement that involves a process that has its focus on rapid improvement. The major focus of the process is reducing the waste while at the same time increasing the output of goods and services. Organizations use this technique when they want to achieve a sustained improvement in specific activities and processes. While implementing Kaizen, methods that are used in improving quality in the production process have a common objective. They are all aimed at saving on the production costs and at the same time meeting the customer needs.
Why organizations fail in quality improvement
Implementation of quality management does not necessarily guarantee that an organization is going to have the desired results. Some of the institutions that practice quality improvement end up realizing that they have not had the expected outcomes. This is largely attributed to various issues that are not addressed when implementing quality improvement. One of the major issues that companies should address when implementing quality improvement is genuineness in the organization’s commitment.
Some of the companies are involved in quality improvement methods and procedures due to market pressures. Such organizations do not derive the initiative of quality improvement from within and hence do not change the ineffective values of the company. Organizations that implement quality management as a short term financial investment solution are not successful. Institutions are also not successful in quality improvement where the responsibility is left to employees and exclude the top management. Companies ought to realize that quality management should be a responsibility of all the stakeholders. Lack of input of solutions to quality problems in an organization from all involved becomes a recipe for failure. William (2008).
The over reliance on statistical processes control also leads to failure of achieving the expected results. While implementing quality control, some of the institutions substitute team work, change in organization belief system and continuous improvement with statistical process control. The lack of a quality culture in an organization can also lead to quality improvement not having the desired results. Companies must nature their human resource to have a culture where quality is considered as essential. Imposing quality improvement techniques and procedures to employees who do not have a culture of quality would not have the desired results.
Importance of quality improvement in maintaining competitiveness
One of the essentials of having quality improvement is having products that are of high quality. This is determined when the products of an organization are reliable, durable and highly performing. Through the use of quality improvement techniques, an organization is able to have products that meet stated promises. By providing products according to the expectation of customers, an organization is able to develop customer satisfaction in its products.
An organization is able to comprehend the level of customer satisfaction by conducting satisfaction surveys. This is conducted to both those who are existing customers as well as the potential customers. Satisfaction surveys that show customers are satisfied with the quality of the products are very significant. This is because it means that the business would be capable of retaining the exiting customers and attract potential customers.
Quality improvement enables an institution to gain a good reputation in the industry. A good reputation is a plus for an organization as it improves the competitive ability of the organization. This means that the organization is able to gain new customers and provide more goods or services to the existing customers. Through quality improvement, inefficient systems and procedures are eliminated and hence ensuring just in time production and delivery. It is a competitive advantage to an organization, as it is able to have employees who are producing more without necessarily increasing wages and salaries. The production and delivery of products in time ensures that there are no delays to customers. This could also be a competitive advantage to the company. This is because it would be able to deliver quality products faster than its competitors. Harrington (2006).
Quality improvement programs make it possible for a company to reduce inventory costs. This, therefore, means that such an organization is able to have a competitive advantage over its rivals. The competitive advantage of an organization that reduces inventory costs is attributed to the imposing of this cost into the prices of products. Organizations that do not use quality improvement to reduce inventory costs have products that are highly priced in the bid to cover for the costs. This leaves them with a competitive disadvantage as their rivals who use quality improvement have cheaper substitute products.
Quality improvement procedures also create cohesiveness in an organization as the different functioning teams rely on each other. The departments in an organization rely on each other for the development of products that meet customer requirements and expectations. The effective functioning of the sales, finance, marketing, operations and customer service departments develops a competitive advantage for the organization.
Conclusion
The globally competitive market provides an opportunity to consumers to purchase products that have both good quality and low cost. Organizations must, therefore, strive to meet the expectations of consumers with both high quality and affordable products. For companies to be able to achieve this, they must engage in continuous quality improvement procedures that are aimed at eliminating flaws in the products. It is those organizations that are bale to achieve this, that develop competitive advantages over their rivals.
Reference:
Richard A. (2006) Six Sigma: The Breakthrough Management Strategy Revolutionizing the World’s Top Corporations. Sydney.
Ahire, S. (1997) Management Science- Total Quality Management interfaces: An integrative framework. Interfaces 27 (6) 91-105.
Moser G, and McDonald S (1997), ‘The Three Faces of Performance Measurement: Improvement, Accountability and Research’, Joint Commission Journal of Quality Improvement, issue 23 (3), pages 135 to 147.
Harrington, H. James (2006)Total Improvement Management: The Next Generation in Performance Improvement, New York: McGraw-Hill.
William F. Houser (2008) Business Partnering for Continuous Improvement: How to Forge Enduring Alliances Among Employees, Suppliers and Customers, San Francisco: Berrett-Koehler Publishers
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