Quality Management Assignment 2

BANKING ACADEMY, HANOI BTEC HND IN BUSINESS (FINANCE) ASSIGNMENT COVER SHEET NAME OF STUDENT REGISTRATION NO UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE Trần Vân Anh - Anh F04-022 Unit 42: Quality Management Mozilla Evaluation of (Individual Report) Mr John Andre 9th May 2012 I, Trần Vân Anh - Anh _ hereby confirm that this assignment is my own work and not copied or plagiarized from any source I have referenced the sources from which information is obtained by me for this assignment Signature Date FOR OFFICIAL USE Assignment Received By: Date: 1|Page Unit Outcomes Outcome Examine the concept of quality management in a business and services context (1) Investigate four different quality management schemes appropriate to commercial operations (2) Evidence for the criteria Feedback Assessor’ s decision Define quality in terms of businesses and services provision a Define quality in terms of customer satisfaction b Explain how quality management can be measured c Describe the rationale underpinning four quality schemes commonly adopted by commercial operations a Identify the main similarities and differences between four quality management systems b Explain the importance of communication and record keeping in quality schemes c Merit grades awarded M1 M2 Internal Verification M3 2|Page Outcome Evidence for the criteria Assessor’ s decision Feedback Distinction grades awarded D1 D2 Internal Verification D3 Comments by Assessor - Common Skills A B C D E F G Assignment ( ) Well-structured; Reference is done properly / should be done (if any) Overall, you’ve Areas for improvement: ASSESSOR SIGNATURE DATE / / NAME: (Oral feedback was also provided) STUDENT SIGNATURE DATE / / NAME : FOR INTERNAL USE ONLY VERIFIED YES NO DATE : VERIFIED BY : NAME : COMMON SKILLS & COMPETENCIES ASSESSED (indicated by X) A MANAGING & DEVELOPING SELF Managing own roles & responsibilities Manage own time in achieving objectives Undertakes personal and career development Transfer skills gained to new/changing situations & contexts B WORKING WITH & RELATING TO OTHERS Treat others beliefs and opinions with respect Relate & interact effectively with individuals & groups Work effectively as a team member C COMMUNICATING Receive and respond to a variety of information Present information in a variety of visual forms D MANAGING TASKS & SOLVING 12 Use information sources 13 Deal with a combination of routine & nonroutine tasks& solve routine & non-routine 14 Identify problems E APPLYING NUMERACY 15 Applying numerical skills and techniques X F APPLYING TECHNOLOGY 16 Use a range of technological equipment and systems G APPLYING DESIGN AND CREATIVITY 3|Page X X 10 Communicate in writing X 11 Participate in oral & no-verbal communication 18 Use a range of thought processes Title Page QUALITY MANAGEMENT Mozilla Case Study Transmitted to: Mr John Andre Prepared for: Mr John Andre (Lecturer) Unit 42: Quality Management Banking Academy, Hanoi BTEC HND in Business (Finance) Prepared by: Trần Vân Anh – Anh F04-022 4|Page 9th May 2012 Table of contents Introduction This report was written about Quality Management subject in BTEC In this subject, the researcher learn about how to define quality in term of organization and customer’s satisfaction, how to measure the quality and improve them Depend on quality schemes: TQM, ISO 9000, Six Sigma, the researcher find the way to manage quality and improve the product by analysis applies for Mozilla case study The researcher is a new appointed Quality Director of Mozilla Foundation and the CEO claims a report pertaining to quality systems and give options as to which systems the company might choose to implement (Scenario) This report includes outcomes have to complete 5|Page • Define quality in terms of the business, services provision, and customer satisfaction in the context of industry relating to the businesses of Mozilla.( 1a, 1b ) • Explain how the organization should measure its quality management (1 c) • Describe the rationale underpinning four quality schemes commonly adopted by commercial operations appropriate for Mozilla ( a) • Identify the main similarities and differences between four quality management systems (2 b) • Explain the importance of communication and record keeping in quality schemes for Mozilla (2c) Main body Examine the concept of quality management in a business and services context 1.1 Define quality in terms of businesses and services provision (1a) Quality can be defined by many ways In terms of businesses and services provision, a company or organization start the business, firstly they care about the profit they can take, money they can make from business operation One principle to make the company to develop and make more money is quality The organization with high quality products/ services always creates the stable position in the market Quality can be defined as the ability to achieve target operational goals (kioskea.net, n.d.) The main target of a company in business is satisfying their customer Because the customer feels more satisfy with the company’s products/ services, it means more profits they can get Therefore, 6|Page during the process of creating new products or services, the company always concentrates on improve quality to satisfy their customer In other ways, quality can be measured by customer’s satisfaction For example: customer feels comfortable when using their company products it means the quality of these product is good enough If they are not satisfied, it proves that the quality of the product is bad and really need to improve The quality of products meet customer demand or over customer’s satisfaction, the company can gain amount of loyalty customers and take a stable benefit for company while attract more new potential customer Apply in Mozilla case study, this company produce software using Internet (Firefox, Thunderbird) Their customer who uses Mozilla Firefox has a comparison among Firefox and other competitors like Google Chrome or Microsoft Internet Explorer Mozilla must shows the advantage of product’ quality to attract customer and extend the market share Mozilla can take many strategies and plan to achieve the target in business More targets they achieve it means higher product’s quality they possess Every company need measure quality of their product/ services frequently to satisfy their customer They will have many measurements with their product’s quality In case scenario, Mozilla use some methods to measure their product’s quality This company has various update versions for Firefox and to make sure every update release suitable with Firefox, Mozilla uses Bugzilla to find the errors and keep records Moreover, the company can measure the quality by using Statistical process control (SPC) “Using objective measurements over subjective feelings to continually improve processes in order to improve quality and eliminated waste” (BPP Professional Education, 2004) This tool helps Mozilla to measure and improve the quality of their product Or they can use benchmarking to compare and improve their quality There are many points show that the customers see and measure quality is different with the company see and measure quality The company measure quality with main purpose: increase the profits; make more money by gain more customers Therefore the quality must satisfy customer Customer sees the quality of a company by the process of using products from this company and compare with other competitors and make their choice The quality can measured by customer follow the trend, advantage and disadvantage of products 1.2 Define quality in terms of customer satisfaction (1b) Many companies approach customer satisfaction in a narrow way by confining quality considerations to the product alone Whereas, service connected with the product are 7|Page frequently over looked, such as packaging, timely and accurate shipping and ability to meet deadline matters Customer defines quality in terms of their overall experience with the company (wordpress.com, n.d.) The quality was defined by customer during the process they use the products or services of a company At the beginning, they were attracted by the products and services After that, they make decision to buy or use this products or services The quality of products/ services decides how long the customer uses these products Moreover, it helps company gains more customer when loyalty customer present their products for them The quality of products is good can make customer trust and keep using these Their customer’s experience is an important factor when a company has strategy to attract them Customer use the product and then they compare with other products from other company and take the comment what is better The company need impress their customer by marketing strategy and the most important is their product’s quality They need improve the quality of product The customer can measure the quality of product/ services by many factors The main purpose of a company is satisfying their customer Quality, price, company’s image are the factors effected to the decision of customer and influence directly with the development of a company They compare factors with other company The quality need satisfy the customer, the product must be good in design, durable using and has enough features which appropriate with many kind of customer The price of product need suitable with the market and appraise right with real value The price war among competitor are usually beneficial for customers Company always makes the lowest price as much as possible For example: with the same product and the quality is in the same level The factor customer care the most is the price They make decision to choose the best product with the comfortable price The next factor is Company’ image: it influence that customer think about the company and their trust with company make them can buy product or use service of this company Big company usually has more advantage competitive than small companies Customer sees and measures quality of a product or a service by the way different with a company sees and measures it The customer sees and measures by their experience when they use product of company During the process of using these, customer find the errors, mistakes or weak point of these products/services and feedback to the company They measure quality by compare with other products from other company and feel about the products they use at the moment was satisfy them or not, these product can make them deserve to pay or not While company see and measure quality by the amount of customer 8|Page using their products/ services More customers mean more profit they can get It also means their product’s quality is satisfy the customer 1.3 Explain how the organization should measure its quality management (1c) Quality is something customers crave and businesses pursue The true challenge is defining what quality means to the organization Once quality is defined, managers must work to identify those processes that need to be improved, improve them and then monitor the progress There is several tools managers use to measure quality (Taylor, n.d.) They include many tools such as Statistical Process Control Charts (SPC); Flowchart; Pareto Charts; Balanced Score Card and Employees In this case scenario, I used SPC to analyze data and measure quality of Mozilla Firefox Statistical Process Control Charts: Statistical process control (SPC) charts are a tool used in Six Sigma Six Sigma is a quality program that seeks to minimize defects in a product or process Process control charts allow for variations within a process Then, use process flow charts to understand where the special cause occurs in the process (ehow.com, n.d.) (genk.vn, n.d.) 9|Page From 2008 to 2012, Mozilla Firefox always in top most popular browsers in the world But while Microsoft Internet Explorer still keep the main market share because there are many computer in the world use Microsoft Window Operation System integrate Internet Explorer as default browser And another main competitor: Google Chrome develops everyday and overcome Firefox in the market Obviously, the business strategy of Mozilla did not effectively and makes Firefox lose their position in the market By analyze chart above The manager can recognize the time Mozilla Firefox begin decrease the market share It is the beginning of the year 2011 Therefore they must concentrate on this and analyze what make Firefox decrease And they will find out that Firefox update many update versions Variation is evil and it make customer difficult to approach Firefox Other potential customers did not notice Firefox anymore Moreover, at that time, Google Chrome has an independent browser and cut down the contract with Mozilla Firefox Because Firefox is free browser and the main profit come from Google search bar so the market share of Firefox loss and Chrome increase if Firefox not have permission of Google They need another strategy to operation These tool scan help the manager of a company measure the improvement of quality product With case study Mozilla collect data, figure about the annual revenue, the market share, liability compare with other competitors to measure the efforts in managing quality They can find out the situation of the company by: If the benefit gains and the position in market maintain or level up, it means Mozilla in effectively way of managing quality and their business strategy is suitable with the trend nowadays If they lose the market share, the manager should provide new plans, projects and strategy to develop the company Investigate four different quality management schemes appropriate to commercial operations 2.1 Describe the rationale underpinning four quality schemes commonly adopted by commercial operations (2a) TQM is the continuous process of reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience and ensuring that employees are up-to-speed with their training Total quality management aims to hold all 10 | P a g e parties involved in the production process as accountable for the overall quality of the final product or service (investopedia.com, n.d.) Six Sigma is a management philosophy developed by Motorola that emphasizes setting extremely high objectives, collecting data, and analyzing results to a fine degree as a way to reduce defects in products and services (techtarget.com, n.d.) ISO, founded in 1947, is a worldwide federation of national standards bodies from some 100 countries, with one standards body representing each member country The American National Standards Institute (ANSI), for example, represents the United States Member organizations collaborate in the development and promotion of international standards Among the standards the ISO fosters is Open Systems Interconnection (OSI), a universal reference model for communication protocols (Rouse, n.d.) Lean is a systematic approach to the identification and elimination of waste and nonvalue added activities through employee development and continuous improvement in all products and services (leansystemsinc.com, n.d.) If the company applies these four schemes effectively, it will help the company to improve their profit Because it based on the number and data in the fact, so that the company can based on that to improve their product quality to meet the customer satisfaction Customer demand nowadays is very important with the company because it effect directly with the profit In fact, customer at the present has many options when they want to buy a type of product because there are many companies sale the same type of the product They will buy the products have higher quality and lower price So that’s, if the company use these four quality schemes effectively, it will help the company increase the product quality Based on that’s the company can have the advantage with other companies 2.2 Identify the main similarities and differences between four quality management systems (2b)  Similarities among quality management systems: There are four main similarities among TQM, Lean, Six Sigma and ISO 9000 They are: Focus on customers Continuous improvement Leadership from the top 11 | P a g e Focus on quality First of all, “focus on customers” is the main principle of quality schemes Customers decide the success of a company More customers it means more profits the company can get Each quality schemes was used for measure and improve the quality Depend on the customer’s satisfaction, their demand, quality schemes can be applied and focus on satisfy the customer by eliminates wastes, define errors and fix these Secondly, continuous improvement is one of the processes with every scheme TQM, Lean, Six Sigma and ISO were created to help organizations improve quality and they keep continuous improvement to make the company continue develop Every scheme can take mistakes during the process of development Therefore, continuous improvement also helps the company immediately find the errors and solve Thirdly, leadership from the top is similar among schemes All of them need one direction from the leader to ensure that every steps under control and the ideas has united for example: mission, vision, and objectives need approval by the leader from top After that, every sector can work in the right way (avoid misunderstanding, overlapping) Finally all of them focus on quality Definitely, quality schemes focus on quality By concentrate on improving the quality, quality schemes help manager control the business, expand the market share and make more money Differences  among quality management systems Six-sigma vs Lean: Lean, itself, focuses on speed It emphasizes reducing the amount of time between activities, events, and cycles The Six Sigma methodology is a quality tool that emphasizes reducing the number of errors in a process It focuses on identifying variation in the types of data inputs (ultimus.com, n.d.) If the six-sigma has quickly completed the process of analysis data to reduce the number of errors, it may be taking another mistake While Lean just does this fast with the purpose: eliminate wastes  Six-sigma vs TQM: TQM was invented well before Six Sigma, and as such, Six Sigma broadly inherited many of TQM’s principles The focus of TQM is general improvement using collaborative and cultural approach to a problem, while Six Sigma is more statistical and data driven TQM emphasizes increased performance levels; Six Sigma stresses acceptance requirements and minimum standards (Differentbetween.com, n.d.)  Six-sigma vs ISO 9000: ISO 9000 focuses on process management through the use of rigorous international manufacturing benchmarks and requirements Six Sigma is a business management strategy that strives to improve the quality of process outputs 12 | P a g e (ehow.com, n.d.) They difference from objectives, methodology and certificate To sum up, ISO 9000 care much about documentation and standard to measure and improve the quality while six-sigma use data analysis to compare and find the way to improve  TQM vs Lean: While Lean focuses speed, upon, metrics, and reducing variation, wastes, TQM focuses on the long haul of quality improvement (brighthubpm.com, n.d.) We recognize that TQM care about all the process of improve quality and need a plan to this Lean takes every steps short to eliminate waste, reduce time  TQM / ISO 9000: There are many differences between TQM and ISO 9000 But in general, TQM has effort to improve quality and care less about the standard or documentation ISO 9000 set up the standard of quality to make every products follow and maintain it ISO also focus on documentation and usually enforce by the leadership In case study of Mozilla, they should use Six-Sigma Six-sigma gather various tools to measure quality and quickly improve the quality It helps company to fix the problems at the moment For example: Mozilla Firefox has many update release every months It makes an amount of customer feel uncomfortable with update without any improvement between update versions Six-sigma can reduce variation (variation is evil) and make Firefox up to date but decrease update packs One feature of six-sigma is predict the realizable of a projects by analyzing data and measurement tools with DMPO (Defect Per Million Opportunities), SPC 2.3 Explain the importance of communication and record keeping in quality schemes (2c) Communication is a process of transferring information from one entity to another (people-communicating.com, n.d.) Record keeping is a systematic procedure by which the records of an organization are created, captured, maintained, and disposed of This system also ensures their preservation for evidential purposes, accurate and efficient updating, timely availability, and control of access to them only by authorized personnel (businessdictionary.com, n.d.) Communication and record keeping is very important for the company, it’s a key to help the company to get successful Record keeping has an importance role in the company Good record keeping will help the manager of the company to monitor the progress of your business, prepare your financial statements, identify source of receipts, keep track of deductible expenses, prepare your tax returns, and support items reported on tax returns Record can show the 13 | P a g e improvement of the company, the manager can based on the record to known what have to change or improve In the financial, the record keeping can also help the manager of the company to know the incomes, liabilities and the asset of the company each month, quarter or year Based on the real data and number, the company can make their financial statement to help in dealing with the bank and also manage in the company system Furthermore, by record all the number and data which are related to the income, expense and credit, the record also support item reported on tax returns The record keeping also reminds the manager if they forget something such as expense or revenue of the company each month (iris.gov, n.d.) Communication has an importance role in the company In the company, the manager can communicate with their employee to express thoughts, ideas and feelings Communicate with other is not just face to face, there are many way to help the manager to communicate with their employees such as phone, fax, email, letter, website, instant message software’s, social networking websites (face book, twitter, MySpace) and etc… These techniques will help the company communicate with their representation office around the world in the short period of time It ensures entire of the organization can understand the new goal or vision and each representation office can join to communicate to help the company to improve their brands (marketingdeviant.com, n.d.) If the manager of the company not communicate with their employees or communicate not done properly, it will make a consequent The manager can’t understand their employees and the employees can understand their manager So that, they can complete their work but less well 14 | P a g e Conclusion The main purpose of quality management in business is making more profit by improve the quality Assignment applied many theories, instructions of using tools in quality schemes and find out the way to improve the quality of product and management 15 | P a g e References BPP Professional Education(2004) , Unit 42 Alexa, [Online], Available: http://www.alexa.com/siteinfo/mozilla.org BBP, T (2004) Taxation ' BPP Professional Education', in QM brighthubpm.com, [Online], Available: http://www.brighthubpm.com/six-sigma/46733-looking-at-lean-sixsigma-vs-tqm/ [2012] Bugzilla, [Online], Available: http://www.bugzilla.org/about/ businessdictionary.com, [Online], Available: 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Education... main purpose of quality management in business is making more profit by improve the quality Assignment 1 applied many theories, instructions of using tools in quality schemes and find out the way to improve the quality of product and management 15 | P a g e References BPP Professional Education (20 04) , Unit 42 Alexa, [Online], Available: http://www.alexa.com/siteinfo/mozilla.org BBP, T (20 04) Taxation... http://www.leansystemsinc.com/lean_defined.html [20 12] marketingdeviant.com, [Online], Available: http://marketingdeviant.com/the-importance-of-communication/ [20 12] Mozilla Calendar Project Blog (20 10), [Online], Available: http://blog.mozilla.org/calendar /20 10/03/reducing_the_calendar_bug_coun/ 16 | P a g e people-communicating.com, [Online], Available: http://www.people-communicating.com/what-iscommunication.html [20 12] Rapoza, J (20 04)... quality and lower price So that’s, if the company use these four quality schemes effectively, it will help the company increase the product quality Based on that’s the company can have the advantage with other companies 2. 2 Identify the main similarities and differences between four quality management systems (2b)  Similarities among 4 quality management systems: There are four main similarities among TQM,... p 43 Rouse, M., [Online], Available: http://searchdatacenter.techtarget.com/definition/ISO [20 12] Shankland, S (20 09) C|net, [Online], Available: http://news.cnet.com/8301-1001_3-10301013- 92. html Taylor, H., [Online], Available: http://www.ehow.com/about_5341144 _management- tools-used-measurequality.html [20 12] Taylor, H ehow.com, [Online] techtarget.com, [Online], Available: http://searchdatacenter.techtarget.com/definition/ISO-9000... http://genk.vn/c188n20 120 521 11403 522 5/chrome-vuot-ie-de-tro-thanh-trinhduyet-pho-bien-nhat.chn [20 12] genk.vn (20 12) , [Online], Available: http://genk.vn/c188n20 120 41409101781/ie-tang-thi-phan-cuoc-chientr236nh-duyet-d 227 -den-hoi-ket.chn Goetsch and Davis (20 06) Total Quality Management, Shahzad Ahmed Memon hotrodoanhnghiep.gov.vn, [Online], Available: http://www.hotrodoanhnghiep.gov.vn/Default.asp? mod=News&action=list&NewsID=3480&temp=HTDN_vn&Object=1&ItemID=89&Language=vn... can work in the right way (avoid misunderstanding, overlapping) Finally all of them focus on quality Definitely, quality schemes focus on quality By concentrate on improving the quality, quality schemes help manager control the business, expand the market share and make more money Differences  among 4 quality management systems Six-sigma vs Lean: Lean, itself, focuses on speed It emphasizes reducing