Quality management assignment 2

Contents Introduction Enterprises are born for the purpose of profit, which is the highest goal In addition, a goal is no less important and lasting development Whether the purpose is to maximize profits by reducing costs, increasing efficiency of the use of resources and developing policies to attract and develop human resources in order to create competitive advantage is the important business need to to achieve this goal A quality management system is the best tool helps enterprises continuous improvement and archives their targets In this BTEC semester, we research Quality Management Subject and apply it for Mozilla Foundation This report includes: identifying key performance to measure the quality and analyzing statistical process control to improve the quality by main schemes is: Total Quality Management (TQM), Lean, Six Sigma and ISO standard 2 Examine the concept of quality management in a business and services context (1a) Define quality in terms of businesses and services provision There are many ways to define what quality means When a company creates products or services they need many processes to perform this And the quality of each process influence on the final products of services The important thing of a company is making more and more profits and customers are the candidate who decides how much benefit a company receives The customer decides to buy a product or using a services depend on their qualities Therefore “quality” must be defined by customer In simply way we can understand “quality” as “doing the right thing right the first time, always striving for improvement, and always satisfying the customer” (QM, BPP Professional Education, 2004) In term of business, a company can evaluate quality by the customer’ satisfaction There are many factors involve to evaluation such as: customer’s expectation, perceived quality, perceived value, complaint and loyalty Complaint Expectations Perceived Perceived quality value SI Loyalty (American Customer Satisfaction Index – ACSI) In fact, when customer’s expectation is high, the perceived quality is high too Therefore the quality of products and services provide for customer must be ensure the customer satisfaction When perceived value and perceived quality is higher than customer’s expectation, it can make the loyalty of customer In the other hand, there is complaint if these value and quality not reach the customer’s satisfaction In case study, Mozilla is a developsoftware company and their customer paid for using Mozilla’s software This company has many strategies to measure and improve the quality to meet customer’s demand For example: when develop a new version of Firefox (a software that was used for website browsers), they doing many tests to control every processes of updating software and take feedback from their customer to complete the improvement of this product In business, the company needs to measure their product/service’s qualities to ensure they are satisfying the customer’s demand There are several of measurements the company can use The variation is a factor of quality’s measurement The main purpose in business is making more profit and less variation the company has, it means more profit they can get The company have to identify the quality of each version for each products while make enough variation to attract the customer Moreover, the company can measure the quality by the KPI’s (Key Performance Indicators) and using Statistical process control (SPC) “Using objective measurements over subjective feelings to continually improve processes in order to improve quality and eliminated waste” (QM, BPP Professional Education, 2004) Key Indicators for Physical Products • Reliability • Aesthetics • Adaptability • Usability • Functionality • Appropriateness Key Indicators for Services • Friendliness/courteousness of employees • Safety/risk of service • Billing/invoicing procedure • Responsiveness to requests • Appearance of physical facilities • Approachability of the service provider • Willingness to listen to customer • Honesty and an ability to communicate in clear language (Wordpress.com, n.d.) This is clearly that the way how customers see and measure quality is different with the company see and measure quality While the company use figure about turnovers, profit and the number of customer and take analysis to measure the quality, customers it simpler Customer can access the quality of a product during the process of using: the product is durable enough, this product is good design or not, the product price is cheap or expensive, is it deserve for the money they paid (1b) Define quality in terms of customer satisfaction For customer, quality was defined in terms of their overall experience with the company During a period of time to use a product or service from the company, the customer takes the experience and has decisions to continue use this product/service or not The customer can see the quality of product or services by many factors If they use a product they focus on design, durable, price, using value and advantage competition of this product with other firm’s product In case study, Mozilla release Firefox software and it take competition with two strong competitors like Internet Explorer (default browser in Microsoft Windows) and Chrome (from Google Corporation).If the customer uses a service, they focus on trust, communication, availability, office environment and employee’s attitude toward customer A popular measuring scheme quality was use in 1990s is SERVQUAL was developed by Zeithaml, Parasuraman & Berry In general follow them who created this model, the quality of service was determined by factors including: the tangible, reliability, ability to react, assurance and empathy The customer measures the quality of product or services by measure these factors above If they satisfy them, it means the quality of the product/ service is good enough and deserves to pay The company and the customer have different in see quality of a product or a service The company depends on the customer feedback about their satisfaction and take improve process The QA (Quality Assurance) process was performed appropriately by Mozilla when they want to release new version of Firefox They have many tests to control the process, improve them and release follow business plan They have writing test case which reused in the following versions of the product to save time and salvage the old features but good They also maintain test cases to keep track of those tests and find the defect of the new version All processes need the volunteer from customer to use and feedback And then they fix it and improve (1c) Explain how the organization should measure its quality management Both the customer and the manager interested in quality Corporate culture focuses on quality because quality speaks the value of the company So they are indispensable tools which measure quality because the new company's products want to have quality must be controlled by these tools However, currently quality control tools based on data analysis is divided into two groups: i Group 1: Includes seven traditional tools, also known as seven quality control tools (7 QC tools) They have also known as ISHIKAWAS 7QC tools which revolutionized the Japanese & the World in Sixties & Seventies (www.isixsigma.com, n.d.) The basis of these tools is the theory of statistics The tools include: • Check sheet: This is the first step in the process based on data analysis Data obtained from the test instrument is input to the other data analysis tools • Pareto chart: use of columns to illustrate the phenomena and causes, grouped as types of defects, reproduce, repair, complaints, accidents and breakdowns The straight line segments are added to indicate the cumulative probabilities • Cause-effect diagram: only the relationship between objective characteristics and other factors, these factors seem to affect the characteristics, represented by drawings like fish bones • Histogram: is a type of bar chart in which the volatile elements or specific data are divided into classes or into sections and expressed as the column is expressed with the distance class market through the bottom and the frequency indicated by the height • Statistical Process Control Charts: is a graph of straight line segments represents the average value of the properties, the rate of disability or disabilities They are used to check for abnormalities of the process based on the change of the properties • Scatter diagram: dispersion diagram shows the relationship between two variables in numerical analysis To solve the problem and determine the optimal conditions by quantitative analysis of cause and effect relationship between the variables • Stratified diagram: The partition common to find the cause of the disability ii Group 2: These tools are very effective support for the analysis to find the cause of poor quality as well as find solutions to improve quality (Tague, 2004) • Affinity diagram: Analysis of the problem based on the feeling • Relation diagram: Analysis based on logic problems • Matrix diagram: Detection of the relationship between objectives and strategies, the proposed solution and the ability to perform • Prioritization Matrix: Find out priorities for the proposed solution • Tree diagram: split a goal into smaller goals or a plan into detailed plans can be implemented in practice This chart can also be used to analyze the causes similar causal diagram • Arrow diagram: Used to determine the facts, the causes of the problem to increase the • effective planning solution Process Decision Program Chart (PDPC): Tools to plan and predict random uncertainty by combining information at all stages of the process Chart of a week in the lives of Firefox users (Smith, 2011) Mozilla has excellent performance even when there are contests for their products to the users; they even brought the topic of quality management as the topic for the competition The winner is who used Statistical Process Control Charts tool to assess the quality of Firefox users in a week for ages Mozilla publics information of product with customer, it not only help people understand company; also make them feeling about Firefox as a friendly product With Statistical Process Control Charts, Mozilla Firefox can know the interest of customer groups in each time period in the day and week Since then the group will have developed strategies to attract and improve the product to entice customers remaining participants using the same product in that period Investigate four different quality management schemes appropriate to commercial operations When Mozilla have data collection from Statistical Process Control Charts, supplier’s group will have planned to attract more people using Firefox at the same time Such as, they supply more flash game, sale off Mozilla’s product to attract young people use Firefox on Thursday (2a) Describe the rationale underpinning four quality schemes commonly adopted by commercial operations Quality management is an important sector of developing a company There are many ways to managing quality; the company wants to increase the quality of product/services In this report, there are common schemes which were recommended to managing quality for manager They are Total Quality Management (TQM), Lean, Six Sigma and ISO 9000 Then I talk about them and their benefit of company Total Quality Management (TQM): TQM is a system of managing quality depends on the attendance of all members in an organization, always increase the customer’s satisfaction with improve quality, find out solution to avoid defect and eliminate overlapping Lean is an improvement approach to improve flow and eliminate waste Lean is basically about getting the right things to the right place, at the right time, in the right quantities, while minimizing waste and being flexible and open to change (institute.nhs.uk, n.d.) Six Sigma is a method of rigorous and science conducting, focusing on the implementation of effective techniques and principles of quality management has been recognized By combining elements of many different areas of work, Sigma focuses on how to the job without error or defect (hotrodoanhnghiep.gov.vn, n.d.) ISO 9000 is a series of standards, developed and published by the International Organization for Standardization (ISO), that define, establish, and maintain an effective quality assurance system for manufacturing and service industries (techtarget.com, n.d.) Commonly noted benefits of Lean are Improving productivity, quality and flexibility Likewise, the commonly noted benefits of Six Sigma are customer satisfaction and improving operational efficiency TQM benefits are improving customer satisfaction and producing better product quality Commonly observed benefits of ISO are better documentation, Quality awareness and help to take more market advantage Finally from a critic's standpoint, statistical analysis is not valued in Lean Six sigma approaches and the DMAIC principle work well only if the variations are normal TQM focuses on long term results instead of short term results Of late, organizations give high priority to the projects which yield results within a short span of time Financial improvements of implementing ISO were not proved well and it is the biggest criticism of using ISO to improve the quality of products and services Besides the standard of product and service‘s quality changes day by day Because the customer more demanding when choosing a product or service Besides that the number of competitors is increasing that make the market shares divided to many small parts and the existence company must share the total market shares Therefore the good quality makes the advantage competition of a company to deal with these problems By using common schemes: Lean, Six Sigma, TQM and ISO 9000 make the manager control the process of product manufacturing or providing services with improve the quality of each product When the process is improved, the quality of final product also increases It can attract more customers They can see and measure the quality of product/ services and decide to use It means the sales of product also increase and the company makes more profits It shows the main purpose of using schemes to managing quality (2b)Identify the main similarities and differences between four quality management systems Similarities There are four similarities between TQM, Lean, Six Sigma and ISO 9000 Firstly, all schemes principle is “focus on customers” All of them support the manager control process in manufacturing product or providing services to meet the customers’ satisfaction In details: TQM: focus on reducing product defects, by improving your manufacturing process, and therefore customers are happier (businessknowledgesource.com, n.d.) Lean: Lean Manufacturing Guide: "flowing the product at the demand of the customer" (ehow.com, n.d.) Six Sigma: Understanding what customers really care about is fundamental to Six Sigma, because our processes have to perform at a measurable level that consistently meets the customer’s needs (improvementandinnovation.com, n.d.) ISO 9000: the ISO 9001 requirement is inclined towards the underlying concept of customer responsiveness, which is defined as giving customers what they have contracted to receive (isorequirements.com, n.d.) In general, we recognized that all quality schemes concentrate on how to satisfy the customer Because if the customers are satisfied, the company will gets more profit and invests to improve the quality Customer becomes the main subject with many quality schemes Secondly, continuous improvement is the second similarity principle among the four schemes All process has existed problem and always need to improve step by step If the quality schemes were applied without continuous improvement, the company cannot develop the business Continuous improvement increases the rate of successful with applying the quality schemes Thirdly, leadership from the top is similar among schemes All requirements from manager will be transfer to employees to complete their own work It is Differences TQM Lean ISO 9000 Six-sigma TQM focuses on using SPC to reduce the variation while Therefore, the cost production was reduced and the period of making product can meet the rate of progress Statistical Process Control (SPC) is a technique used within the TQM framework for reducing variation in processes (qualityamerica.com, n.d.) TQM was invented well The focus of TQM is general improvement using collaborative and cultural approach to a proble TQM emphasizes increased performance levels; (Differentbetween.co m, n.d.) Lean differs from other improvement methods in several ways, but two of the differences are particularly noteworthy First, lean focuses on improving entire value streams, while most of the other improvement methods tend to focus on individual processes In lean terminology, a "value stream" is all of the activities that a company must perform in order to produce and deliver a product or service to a customer So, a value stream is really a system that is composed of numerous individual processes Lean organizations work on improving individual processes, but lean practitioners always remember that the real goal is to improve the whole value creation/delivery system and that improving one process won't necessary ISO 9000 focuses on process management through the use of rigorous international manufacturing benchmarks and requirements ISO 9000 defines the most basic processes an organization must have in place to control quality, and builds on that ISO uses a methodology system, known as the ISO Quality Management System It consists of systematic methods, documented processes and identified responsibilities The company must have a quality-control system that explains how it meets the requirements for each process within a given standard or benchmark The policies and procedures must be welldocumented and the company must abide by them The company must maintain good statistical records on quality It must also be regularly audited Six Sigma is a business management strategy that strives to improve the quality of process outputs It identifies and eliminates causes of errors and reduces variability in business processes and manufacturing Six Sigma uses two methodologies, known as DMAIC and DMADV Six Sigma DMAIC focuses on defining, measuring, analyzing, improving and controlling existing processes, within Six Sigma specifications Six Sigma DMADV, on the other hand, concentrates on defining, measuring, necessary if the manager use any quality schemes Leadership from top helps all stages work perfectly in a united process and avoid the misunderstanding among sectors in an organization’s system Finally similarity among these schemes is focus on quality Quality effect to the profit the company can take therefore every scheme focus on this to find the solution to improve TQM, Six Sigma, ISO and Lean can support the company improve their quality The quality is the main principle with every scheme and they need focus on this improve performance value the of the stream Another important difference is that most process improvement methods tend to focus on improving the productivity or efficiency of major value-adding processes, while lean emphasizes reducing or eliminating non-value-adding activities (waste) When a lean practitioner looks at an activity or process, he/she will ask a series of questions: Does this activity/process add value for a customer? If not, can we change the way we work to eliminate the need for the activity/process? If not, can we change the activity/process so that it will consume less resources In order for a company to adhere to ISO 9000 standards, it must be certified An outside assessor examines the company The assessor questions the staff, confirming that each member knows his or her role in complying with these standards The assessor also scrutinizes the company’s documentation, verifying that it complies with set standards The assessor then produces a report, identifying any areas in which the company has not met the standards The company has a period of time to resolve these issues After the problems are corrected, the assessor will make the company ISO 9000-certified analyzing, designing, and verifying new processes or products so that they may meet Six Sigma standards Six Sigma, on the other hand, has several certifications a company can obtain, including Black Belt and Green Belt A Black Belt certification focuses on team leadership, such as allocating roles and responsibilities to team members A Green Belt certification focuses only on the company's ability to analyze and solve quality problems (2c) Explain the importance of communication and record keeping in quality schemes Communication is a process that helps manager and control the distribution of work for each employee in the company when they communicate and discuss together When manager communicate with employees, staffs will feel that they are respected This will be easier to run the company In addition staffs also give conditions for their ideas about work When employees talk to each other they will be able to help each done a better way Record keeping is the storing of information that has been systematically and carefully collected and stored for intended use To run any economic enterprise successfully, carefully thought out, properly collected and kept records are a must for the purpose of keeping track and decision making (dictionary.reference.com, n.d.) Record keeping can help the manager to: • • Prepare your financial statements Identify source of receipts (irs.gov, n.d.) Financial statements is one of the record keeping, it is the best way which help company control finance and profit of Mozilla Based on data collection, manager will find out profit and loss account of their company each month, quarter and year They also know the expense that they help to pay each month through income statement Moreover, according to the balance sheet the manager of Mozilla knows the liability and asset they own The determination of the origin receipts will help the company to thoroughly manage money or property From there they can calculate the exact profit There is also help the company does not have any problems with the law If the company not has a good keeping record or the manager and employees not have a good communication it will lead to the lack of information about the company situation and also lead to the misunderstand about working so that the employees can still finish their work less well Conclusion This helps the company improve the quality of Mozilla services Increased competition with rivals and optimized management system From that strategic planning is the development company for 10 and 20 years 4 References 'BPP Professional Education' dictionary.reference.com, [Online], Available: http://dictionary.reference.com/browse/recordkeeping [2012] Henning, J (2009) vovici.com, 24 Mar, [Online], Available: http://blog.vovici.com/blog/bid/18165/ACSIAmerican-Customer-Satisfaction-Index-Model-Strengths-and-Weaknesses [2012] irs.gov, [Online], Available: http://www.irs.gov/businesses/small/article/0,id=98557,00.html [2012] isixsigma.com, [Online], Available: http://www.isixsigma.com/new-to-six-sigma/getting-started/what-sixsigma/ [2012] iso.org, [Online], Available: http://www.iso.org/iso/iso_9000/ [2012] Kotler, P (2011) arpitsrivastava.wordpress.com, [Online], Available: http://arpitsrivastava.wordpress.com/2011/10/17/building-customer-satisfaction-philip-kotler-summary/ [2012] lean.org, [Online], Available: http://www.lean.org/whatslean/ [2012] sixsigmatraining.org, [Online], Available: http://www.sixsigmatraining.org/six_sigma_vs_tqm [2012] Smith, D (2011) r-bloggers.com, [Online], Available: http://www.r-bloggers.com/winners-of-mozillaopen-data-competition-announced/ [2012] Tague, N.R (2004) asq.org, [Online], Available: http://asq.org/learn-about-quality/new-managementplanning-tools/overview/overview.html [2012] www.isixsigma.com, [Online], Available: http://www.isixsigma.com/dictionary/7-qc-tools/ [2012] www.six-sigma-material.com, [Online], Available: http://www.six-sigma-material.com/AffinityDiagram.html [2012] [...]... [20 12] lean.org, [Online], Available: http://www.lean.org/whatslean/ [20 12] sixsigmatraining.org, [Online], Available: http://www.sixsigmatraining.org/six_sigma_vs_tqm [20 12] Smith, D (20 11) r-bloggers.com, [Online], Available: http://www.r-bloggers.com/winners-of-mozillaopen-data-competition-announced/ [20 12] Tague, N.R (20 04) asq.org, [Online], Available: http://asq.org/learn-about -quality/ new-managementplanning-tools/overview/overview.html... [20 12] irs.gov, [Online], Available: http://www.irs.gov/businesses/small/article/0,id=98557,00.html [20 12] isixsigma.com, [Online], Available: http://www.isixsigma.com/new-to-six-sigma/getting-started/what-sixsigma/ [20 12] iso.org, [Online], Available: http://www.iso.org/iso/iso_9000/ [20 12] Kotler, P (20 11) arpitsrivastava.wordpress.com, [Online], Available: http://arpitsrivastava.wordpress.com /20 11/10/17/building-customer-satisfaction-philip-kotler-summary/... helps the company improve the quality of Mozilla services Increased competition with rivals and optimized management system From that strategic planning is the development company for 10 and 20 years 4 References 'BPP Professional Education' dictionary.reference.com, [Online], Available: http://dictionary.reference.com/browse/recordkeeping [20 12] Henning, J (20 09) vovici.com, 24 Mar, [Online], Available:... Available: http://asq.org/learn-about -quality/ new-managementplanning-tools/overview/overview.html [20 12] www.isixsigma.com, [Online], Available: http://www.isixsigma.com/dictionary/7-qc-tools/ [20 12] www.six-sigma-material.com, [Online], Available: http://www.six-sigma-material.com/AffinityDiagram.html [20 12] ... process management through the use of rigorous international manufacturing benchmarks and requirements ISO 9000 defines the most basic processes an organization must have in place to control quality, and builds on that ISO uses a methodology system, known as the ISO Quality Management System It consists of systematic methods, documented processes and identified responsibilities The company must have a quality- control... all quality schemes concentrate on how to satisfy the customer Because if the customers are satisfied, the company will gets more profit and invests to improve the quality Customer becomes the main subject with many quality schemes Secondly, continuous improvement is the second similarity principle among the four schemes All process has existed problem and always need to improve step by step If the quality. ..(2b)Identify the main similarities and differences between four quality management systems Similarities There are four similarities between TQM, Lean, Six Sigma and ISO 9000 Firstly, all schemes principle is “focus on customers” All of them... benchmark The policies and procedures must be welldocumented and the company must abide by them The company must maintain good statistical records on quality It must also be regularly audited Six Sigma is a business management strategy that strives to improve the quality of process outputs It identifies and eliminates causes of errors and reduces variability in business processes and manufacturing Six Sigma... DMADV, on the other hand, concentrates on defining, measuring, necessary if the manager use any quality schemes Leadership from top helps all stages work perfectly in a united process and avoid the misunderstanding among sectors in an organization’s system Finally similarity among these schemes is focus on quality Quality effect to the profit the company can take therefore every scheme focus on this to find... leadership, such as allocating roles and responsibilities to team members A Green Belt certification focuses only on the company's ability to analyze and solve quality problems (2c) Explain the importance of communication and record keeping in quality schemes Communication is a process that helps manager and control the distribution of work for each employee in the company when they communicate and