Traditional Quality Management Essay

Question:

Using Benchmarking and a tool of your choice from the list below, critically evaluate how an organisation can successfully implement the TQM tool that you have chosen.
Six Sigma

Quality Circles

Jidoka

JIT (Just in Time)

TPC (Total Product Concept)

Kaizen

Answer:

Introduction

The report discusses the different tools of total quality management in a business organization. The author in this report discusses one of the most important tools of quality management in a business organization that is benchmarking. There are some other tools that manage the total quality in the business. Some of them that are discussed in this report are Quality Circles, Six Sigma and Total Product Concept to name a few (Goetsch and Davis 2014). Firstly it has been discussed briefly about the concept of total quality management in a business organization. The total quality Management (TQM) denotes the steps that the management of the business organization takes to bring about long term success in the business by providing immense satisfaction to the customers through their services (Oakland 2014).

All members in the business organisation work for improvement in the process, services and products of the company. The members also work hard for the betterment of the work culture in the business organization. All these forms a part of the total quality management in the business organization (Golder et al. 2012). Some of the marketing experts call total quality management to be total productive maintenance. Total quality management is the system of the management of an organization that is mainly customer focused (Rigby and Bilodeau 2015). The total quality management techniques utilize data, strategies and effective and significant communications to establish better discipline and work flow into the business organization. An important successor to the total quality management, the modern quality systems, consists of most of these concepts that the author discussed above (Asq.org 2016).

Organization That Needs To Be Benchmarked

Capgemini is the organization that needs to be benchmarked. The main step in the continuous improvement of the company is termed as benchmarking. The benchmarking of Capgemini can be used in the following ways:

The benchmarking is mainly used to obtain a set of performance measures which is used to assess the level of competence as well as the effectiveness of the company.

It is used in order to increase an understanding of the key cost drivers.

It is used to set the target for the improvement of the performance.

It is used to obtain the external viewpoint on performance.

Capgemini will be able to track the development of the initiatives of improvement.

Capgemini will be able to identify the trends in the industry and it will also be able to improve the standard of the performance.

With the benchmarking, Capgemini will be able to obtain empirical comparison with its competitors (Susha et al. 2014).

(Source: Created by the author)

The five essential phases in the case of Capgemini includes the following:

(Source: Created by the author)

Where is it now

Capgemini, one of the foremost providers of consulting, outsourcing services as well as technology in the world is located across Europe, Asia Pacific and North America.

What area needs improvement

Capgemini is generally a Centre of Excellence of Oil and Gas which in turn provides a full spectrum of consulting as well as the services of outsourcing to the oil and gas industry. The company has been conducting the benchmarking studies in order to identify the area of improvement since the year 1992. With the help of benchmarking, the area of strength and opportunities for improvement was analyzed.

With the help of benchmarking, the manufacturers will be able to understand the individual performance against the competition as well as they will be able to identify the performance gaps. It also helps Capgemini to improve the overall decision making regarding the investments related to IT as well as outsourcing. The areas of improvement will include the metrics that consists of the sales growth as well as the improvement in the net income growth.

The Organization You Will Benchmark Against

The organization that will be benchmarked against Capgemini is Accenture which is a global management consulting as well as a technology services and outsourcing company and is also one of the biggest competitor of Capgemini.

What do they do

Accenture mainly operates in more than 200 cities over 56 countries and it consists of a labor force of more than 336,000 people. The main benchmarking process that is followed by Accenture is a five-step benchmarking process.

The first step involves the process of planning with the help of which the company gathers data, defines the main person and milestone and it also execute the formal kick off and communication. As a result, this specific planning avoids the mistakes in benchmarking.

The second part involves the collection of the data gathering the consolidated data and validating data as per the organizational unit.

The third step includes the allocating of the consolidated data and validating data as per the organizational unit.

The fourth step involves the analyzing of the results and also explaining the results qualitatively.

How do they achieve it

The critical benefits of Accenture are delivered with the help of benchmarking which helps to improve the operation of the organization. The benchmarking process helps the organization to discover, deliver and to maintain the enhanced value of the trade. In the first stage, Accenture launches the initiatives and devises the policies to gather the required data. As a part of this effort, the company identifies and trains the individuals who are responsible for gathering the data.

In the second phase, Accenture gathers the data that needs to be evaluated. They generally do this by the collection of the standard data and formatting the template. After the collection of the data is completed, the company produces an opening benchmark in comparison with its competitor (Wu et al. 2013).

Analyze Benchmarking For This Process

The Type of Partner

Benefits

Weaknesses

Internal

? Common culture and knowledge

? Low threat

? Channels of communication

? comparatively quick return

? Only sufficient return

? Fostering of complacency

External

? Similar Constraints

? Comparatively low threat

? Consideration which are legal

What are the strengths of benchmarking for this organization

In order to understand the output of the competitor, it is very important to deal with the competitive analysis of benchmarking. The strengths of benchmarking in the case of Accenture are as follows:

  1. Benchmarking will be able to help the company to set the base of the improvement of the performance which will in turn help Accenture to enhance among its competitors. As a result, if Accenture can live up to the benchmark it will be able to survive in the business. Benchmarking will be able to identify the best practices of Accenture and as a result, they will help to determine what constitute the main procedure of business.
  2. Strength of benchmarking in the case of Accenture is that, it will help the company to focus mainly on the change and it will also provide the direction for the process of the change.
  3. Lowering of the cost of the labor – Benchmarking will also help to lower the cost of the labor.
  4. Increase of the sales and the profits of the organization – With the help of benchmarking, Accenture will be able to increase the sale of the company and in turn it will increase the profits of the organization (Zwetsloot and Bezemer 2014).
  5. The tool of job satisfaction – The culture of the organization can change with the help of benchmarking. The benchmarking process will help to produce a high degree of job satisfaction (Ealias and George 2012)

What are the weaknesses of benchmarking for this organization

The weaknesses of benchmarking in the case of Accenture are as follows:

Benchmarking in turn increases the variety of information that is mainly monitored by the management that increases the probable for the information surplus.

Benchmarking can also reduce the managerial motivation if Accenture gets compared with its rival namely Capgemini (Zhu 2014).

What factors will impact the use of benchmarking

The factors that will impact the use of benchmarking are as follows:

The policies of the management

Correct data entry as well as the setup of the system

Staffa and driver morale

Shop organization (Camp 2013).

Solution

Another Tool

Another tool is required in this case because there are various weaknesses that are associated with benchmarking and this can be solved with the use of another tool of the total quality management. In this case, another tool that is used is the Six Sigma (Basu and Wright 2012).

What other tool do you suggest as part of a TQM system

Six Sigma is suggested in this case because the top managements like Capgemini and Accenture not only initiates the development of Six Sigma, but it also plays an important role in the development cycle. Six Sigma also eradicates the prospects of defects and thus the organization establishes a close relation with both the internal as well as the external customers. Six Sigma also mainly focuses on the strategic development of the organization that is it helps the companies to focus on the correct resources that includes the right workers, the right project as well as the right tools (Furterer 2016).

New Tool

Recommended Tool

Six Sigma helps to measure the quality and it is a data-driven approach that helps to eliminate the defects of the company. The statistical representation of Six Sigma helps to describe how the process in an organization is performing (Pyzdek and Keller 2014).

Reasons for using your new tool

The Six Sigma services helps Capgemini to offer a broad range of solution that will help to undertake the challenges and also helps in designing as well as adopting the innovative trade models in order to outpace the competitors (Evans and Lindsay 2014).

The Six Sigma service helps Accenture to integrate and make the business of Accenture powerful.

Conclusion

The report summarizes the concept of benchmarking an organization as part of the total quality management. Strength of benchmarking in the case of Accenture is that, it will help the company to focus mainly on the change and it will also provide the direction for the process of the change. The company, Capgemini has been conducting the benchmarking studies in order to identify the area of improvement since the year 1992. With the help of benchmarking, the area of strength and opportunities for improvement was analyzed. Benchmarking increases the variety of information that is mainly monitored by the management that increases the probable for the information surplus. The benchmarking process helps the organization to discover, deliver and to maintain the enhanced value of the trade. In the first stage, Accenture launches the initiatives and devises the policies to gather the required data.

References

Basu, R. and Wright, J.N. eds., 2012. Quality beyond six sigma. Routledge.

Camp, R.C., 2013. Benchmarking: the search for industry best practices that lead to superior performance. Milwaukee, Wis.: Quality Press; Quality Resources, 1989..

Ealias, A. and George, J., 2012. Emotional intelligence and job satisfaction: a correlational study. Research journal of commerce and behavioral science,1(4).

Evans, J.R. and Lindsay, W.M., 2014. An introduction to Six Sigma and process improvement. Cengage Learning.

Furterer, S.L. ed., 2016. Lean Six Sigma in service: applications and case studies. CRC Press.

Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. pearson.

Golder, P.N., Mitra, D. and Moorman, C., 2012. What is quality? An integrative framework of processes and states. Journal of Marketing, 76(4), pp.1-23.

Oakland, J.S., 2014. Total quality management and operational excellence: text with cases. Routledge.

Pyzdek, T. and Keller, P.A., 2014. The six sigma handbook (p. 25). McGraw-Hill Education.

Rigby, D. and Bilodeau, B., 2015. Management tools & trends 2015. London, Bain & Company.

Susha, I., Zuiderwijk, A., Janssen, M. and Gr?nlund, ?., 2014. Benchmarks for Evaluating the Progress of Open Data Adoption Usage, Limitations, and Lessons Learned. Social Science Computer Review, p.0894439314560852.

Wu, Y., Lim, J. and Yang, M.H., 2013. Online object tracking: A benchmark. In Proceedings of the IEEE conference on computer vision and pattern recognition (pp. 2411-2418).

Zhu, J., 2014. Quantitative models for performance evaluation and benchmarking: data envelopment analysis with spreadsheets (Vol. 213). Springer.

Zwetsloot, G.I.J.M. and Bezemer, R.A., 2014. Benchmarking safety culture in major hazards industries in the Rotterdam area (The Netherlands). In 16th Process Plant Safety Symposium 2014, PPSS 2014-Topical Conference at the 2014 AIChE Spring Meeting and 10th Global Congress on Process Safety, 755-768. AIChE.

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