Who is Executive Holloware?
Executive Holloware Ltd is a well established company which specialises in silverware; eventually becoming one of the world's leading manufacturers aiming their products at the top end of the market with top end prices which people were willing to pay. However requirements in sales and quality have been a serious issue with management.
Established Problems at Executive Holloware
It appears that the company is suffering from poor quality management. There is a process which the product needs to go through, however it is not operating in the most efficient way. There is not enough inspection taking place during production, and defects are only being picked up at the end of the process where costs have already been incurred. They can no longer be sold on costing the company unnecessary finances.
It seems that the importance of quality seems to be lacking within the production team. Within this specific industry, quality is probably the most important factor. It was quality which people were purchasing, however if the consumer realises that they are not getting the best possible value, they will begin to find alternatives. By creating a Bonus scheme, this gives the employees an incentive to work harder and to perform to their best to produce good quality work.
There is a communication problem between the various departments as products are going through different stages without being at the correct standard needed to give to consumers. They work without integrating the process, with a lack of well defined quality standards. There might be an underlying problem with the material or equipment in the press shop; however nothing is being done to look into it. There is a problem and it is not being solved, just leading it to be costly for the company.
Benefits of Total Quality Management
The benefits of Total Quality Management are that higher quality products manufactured can be sold for the top end price. The company will begin to focus on creating the highest level products, without losing money.
By the QM testing the products, this assures the right quality is achieved, it helps minimise the defects as the employees are more aware of the work which they are doing. It would be a way of making sure the employees work harder to achieve better products. If random spot checks are done with the products made for example, the problems will be eliminated quickly and the employees will be corrected on where they went wrong. This will in the long run minimise the faults made.
By examining statistics and specific failures within the company, it will be visible where redesigning the product could take place, and there may be less-expensive fixes that can be done. This then leads to continuous improvements being made to the product at minimal cost and also keeps on track of the quality to make sure it is being maintained. Furthermore, evaluation of the materials and designs of the products is also very important as it continually leads to the most economical option for the company, and the highest quality option for your consumers. It is important that the management team communicate with the suppliers and retailers about the products and negotiate the price at which they are receiving their products and if they can find a competititor who will be able to offer them a competitive rate without compromising the quality.
It is the responsibility of the senior management team of the company to create a clear quality policy. This gives everybody in the company something to follow and a plan which they themselves will follow to ensure quality. Executive Holloware should focus on TQM and adopt the method of constant development the company. This then ensures that the reputation, which they have built up over these many years, is still maintained. If consumers assume that standards have fallen, they will be no longer interested.
Training - Training is very important for employees. Supervisors are responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. (www.pharmainfo.net 2005-2010)
Teamwork - Teams consist of small groups of skilled workers who share tasks and responsibilities. This will lead to the business receiving quicker and better solutions to problems. Teams should provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. (www.pharmainfo.net 2005-2010)
One of the biggest such benefits of TQM is the change in culture. The way people think, speak, and conduct day-to-day business in the organization. Because of their awareness of how important quality is, the skill level has also increased. In the organisation, the employees who received TQM training are better prepared to capitalize on opportunities for improvement. (http://www.devicelink.com, 1996-2009)
Costs of TQM
The money that the company invests in TQM can be spent in one of two ways: either as part of the initial costs of implementing TQM, such as training, education, materials, people's time away from work or as part of the ongoing expenses required to maintain the program without significant changes. (http://www.devicelink.com 2006-2009)
Benefits of implementing ISO 9001
ISO 9000is a standardforquality management systems. ISO 9000 is maintained by ISO, theInternational Organisation for Standardisationand is administered by accreditation and certification bodies. The rules are updated, as the requirements motivate changes over time.
Certification to an ISO 9001 standard does not guarantee any quality of end products and services; it makes sure that formalised business processes are being applied. Implementing a Quality Management System will motivate staff by defining their key roles and responsibilities. Cost savings can be made through improved efficiency and productivity, as product or service deficiencies will be highlighted. Improvements can be developed, leading to less waste, inappropriate or rejected work and fewer complaints. Customers will notice that orders are met consistently, on time and to the correct specification. This can open up the market place to increased opportunities. (http://www.isoqar.com, 2009)
References
* Approachable ISOQAR. 2009. The International Standard for Quality Management. Available at: http://www.isoqar.com/iso9001/qualintro.htm
[Accessed on 5 January 2010]
* Medical Device & Diagnostic Industry. 1996. Conducting Cost/Benefit Analyses of Implementing Total Quality Management. Available at http://www.devicelink.com/mddi/archive/96/05/024.html
[Accessed on 5 January 2010]
ยท Pharmininfo 2007 TQM : The key elements for its successful implementation in the business organization. Available at: http://www.pharmainfo.net/reviews/tqm-key-elements-its-successful-implementation-business-organization
