Quality Management PRESENTATION

Quality Management - Presentation MAPLE GROUP Vương Thị Quỳnh Anh - Lynn Ngô Thị Huyền Trang - Jess Nguyễn Phương Thảo - Key Nguyễn Thị Kiều Anh - Snow Lecturer: Mrs Doti Chee Outcome 3.1: Explain how quality management can be measured In order to exist in competitive market, any business need apply some methods to measure quality for identifying what need to improve in their products For Mattel, they can apply methods as follows: 3.1.1 BENMARKING By using benchmarking, Mattel can identify and evaluate the current position of organization through measurement and comparison of their performances in both inside and outside industry for identifying areas and means of performance improvement By using benchmarking, Mattel can compare their products with products of strong competitors such as Hasbro According to rank of Climate Counts about “Safety toys and children’s equipment”, Mattel’s points (32 points) only lower than that of Hasbro (73 points) while higher than many companies in the same industry (climatecounts, 2013) It shows that quality of Mattel is not the best  Mattel can realize the good practices of Hasbro It requires Mattel need to find out why Hasbro is assess the best in toy industry to find the ways of closing the gaps in products Therefore, Mattel can improve the quality of their products 3.1.2 EMPHASIS OF APPROACHES - Statistical Process Control Statistical process control (SPC) is used to evaluate process output to decide if a process is “in control” or if corrective action is needed There are many tools of SPC such as Pareto Analysis, Scatter Diagram, and Statistical Control Charts (Stevenson, n.d.) Mattel may use Statistical Control Charts to monitor number of defects in each manufacturing group Assuming that Mattel have manufacturing groups and Mattel allowed only 10 defective points in each manufacturing group, by using control chart Mattel may receive the results as follows:   30 25 25 24 23 20 17 15 13 10 Group Group Group Group Group Group Figure 1: Control chart about numbers of defect in Mattel product  See the chart above, Mattel can easily see that the defects inside each group is almost higher than standard Therefore, it requires Mattel find out the reason why the number of defects is over the control such as bad training, stress of employees or machine breakdown  Mattel will have solution to solve it such as upgrade technology, training employee, create good environment during working time for employee 3.1.3 COMPARISON WITH PAST PERFORMANCE Based on evaluating past performance, the managers can assess current performance whether are good or not for establishing plans, innovative strategy to improve it better in the future Figure 2: Statistics of Mattel’s sales in 2012 (Mattel, 2012) The chart shows that sales of Mattel decreased significantly in 2008 Decreasing sales in 2008 derived from product recall in 2007 Mattel toys not meet requirement about quality In that period, Mattel tried to gain customer trust back by providing information about what toys are being recalled, where to bring recalled toys, and what Mattel’s three-point check system on the first page of their websites for insuring that all their toys are safe for children …Therefore, sales in 2009 started increasing back  From identifying past performance, Mattel can easy to recognize that safety is an important element which they need to focus more to meet customer requirement and create higher performance in the future Outcome 3.2: Evaluate the benefit of user and non-user survey in determining customer needs 3.2.1 Users survey Users are people who use products or services of the company Thus, a user survey “looks at a sample of the population of actual users of a product, system, or services” (JcFlowers, 2013) Mattel can use CRM tools such as telephone, email survey, internet survey, directly interaction to take survey and gather survey result from users Collecting information from user survey brings many benefits for Mattel: • Obtain information about users to identify current and potential market, identify consumer preferences and habits to customize products and services • Continuous improving products quality based on understanding actual strength and weaknesses of their products • Enhance the relationship with customers for building beautiful corporate image The information of users is gathered as follows: Types of information Profile of users Purchase regularly Questions Benefits to Mattel - What’s your gender? Divide customers into different groups - What’s your job? (demographic segmentation)  make a plan - What’s your monthly income? to adjust products for satisfy different needs - How many children you have? of different groups - How often you buy Mattel’s Mattel will know purchasing habits and products? purchasing power of customers and kinds of - What types of product have you products which attract customers the most ever/never purchased in Mattel?  Identify the most potential customers and best products to focus more Suggestion - Are you satisfied with Mattel’s Identify level of satisfaction about products Respondents assess products? actual strength and weaknesses of products about Mattel’s product - Give some suggestion about to continuous develop strength and correct features and give some what you want to change in Mattel’s defects of Mattel toys for meeting customer suggestion products requirements 3.2.2 Non - user survey Non-user survey is “a considered as a test of the expectations of those community members who haven’t used the service” (Anon, 2012) There are kinds of non-users: • Person who has never used products/ services of company before: Doing survey is to identify why respondents not choose Mattel products  Mattel can know their weaknesses to overcome and create innovative products, new strategies to attract their attention based on their needs • Person who has been a user but has discontinued using company products and services: Objectives of non-user surveys is to understand why the respondents stop using Mattel toys for finding out the way to get them back The information of non-users is gathered as follows: Types of information Profile of non-users Questions Benefits to Mattel - What’s your gender? - Identify ability to buy Mattel products for - What’s your job? communicating with non-user to deliver valuable - What’s your monthly income? information (strengths compared with competitors) - Do you have children? about products for them - What’s your contact information? - Indentify potential people to create good relationship with non-users for attracting them Barrier to access - Have you ever heard information about Finding out the reasons why they not use Mattel Mattel toys? toys anymore or never used it to give solution: - Have you ever bought Mattel’s products? - Give the suggestion and help non-users have - Why don’t you choose Mattel toys? It opportunities to interact directly or use trial derived from product’s features or price? products of Mattel - Correct mistakes, defect what derived from Mattel toys to satisfy these people for attracting them Expectation - What’s your expectation from Mattel’s Identify respondents’ demand about Mattel products products/services? or services (features, customer hotline services )  - What’s your recommendation for Mattel Mattel can meet their requirement to attract them in order to attract you? Outcome 3.3: The methods of consultation employed in one quality scheme to encourage participation by under-represented groups 3.3.1 Definition of Underrepresented group Under-represented groups are groups that “are typically underrepresented and underserved and whose voices are often not included in planning or heard on issues” (blueprint, n.d.) Mattel consist of two type under-represented group: Internal under-represented groups: Workers from factories in China: China provides abundant labor resources for Mattel, so Mattel placed most of their production factories in China However, Mattel use English for almost business transactions which lead to language barriers  It is difficult for Chinese worker can voice up, understand and receive information from the management In addition, they almost have low education background, therefore their ideas is often underestimated, and easy to be rejected by managers who have higher education level  They are afraid to express their ideas External under-represented groups: Disable customer: They are people who absence of legal capability to perform an act  Difficult for them to purchase Mattel’s products and lack of effective communication channel, tool for disable people to communicate directly with Mattel 3.3.2 Methods of consultation employed to encourage the participation for underrepresented group a) Consultant method for internal groups Principles of ISO Consultation methods Application to Mattel satisfaction Disadvantage Workers can discuss in the small group • Members feel with similar people (the same education, confident to voice up discussion usually Exchange opinions, limited the Customer Advantages same position)  Worker feel • ideas among many comfortable to speak out Focus groups • • The time for Few people can people can generate speak out their new innovative ideas voice • Member is affected by others Involvement of Questionnair people e/Survey All the survey questions about Mattel's • Cheap and save time • Low response rates product, efficiency of process and system • Quick to implement • Information quality management are translated into Chinese might be low and  It is easily for worker to the survey not reliable and give their opinions Continual Public improvement meeting All the information of the meeting such as • Many people can information attend of Mattel company was translated into Chinese so it breaks the • Give publicity to the language issue barrier, makes them understanding each other  Worker feel more confident to speak out their opinions • Require skill chairing • Activities to public speaking may dominate discussion b) Consultant method for external groups Principles of Consultation ISO methods Customer Telephone focus Survey Application to Mattel people Website Disadvantage Mattel can use telephone survey for • Quickly customers who are blind because they • The area is not limited • cannot ability to response Mattel in • Respondents feel free writing • Annoy people High cost to voice up • Saving time • Collect useful Link can be information about Mattel products or feedback directly disconnected because have any ideas, comments or want to from customers many people access Quickly website at the same When disable customers need any Involve of Advantages buy Mattel toys, they can easy • implement it through forum, online time ordering of Mattel website For customers who difficult in walking, improvement Survey Postal Collect feedback • Limited time for Mattel sent direct survey through postal directly from answering to help them can receive the information customers survey Many people can join • Low respond and feedbacks for Mattel easily Continual • • so can collect the feedback from the large numbers of people Outcome 3.4: Identify the value of complaint procedures and analyses how they may used to improve quality 3.4.1 Definition Complaint procedure is a prescribed method of lodging a complaint to an institution (Collin, n.d.) In the case of Mattel, it is the process that Mattel receive feedbacks/ complaints from their customers 3.4.2 Mattel customers complaint procedures flow chart Customer fills all the blanks in complaint letter form Letter complaint received from customer Complaint put into the electronic records system and forwarded to appropriate manager Manager ensures that the email/letter is acknowledged within days Manager conducts the investigation & provides a report with recommendations to their general manager The general manager provides a response to the customer Yes No If the customer is not satisfied they may request the issue be referred to the Chief Executive Officer for reviewing Flow chart 1: Customers’ complaint procedures Customer satisfied Yes 3.4.3 The value of Mattel customers complaint procedures In general, complaint procedure brings many values for Mattel Corporation and it is very important with Mattel Below are some specific values that complaint procedure brings for Mattel Corporation Increase customer satisfaction and customer loyalty: Customer complaint procedure helps company response for customer in the only days so customer more satisfied with Mattel In addition, the way customers’ complaint was handled will influence customers’ satisfaction with company If handling customers’ problem makes them satisfy, customer will come back and buy product or services of company Evaluate the quality of product and services: Based on the complaint of customer, Mattel can find out the mistake and the gap in their product and services so they know their product and services are good, normal or not good in customers’ perception Understanding about the ability of staff based on the way that staffs give to deal the problem of customers, Mattel’s directors can evaluate the strengths and weaknesses of managers and employees in company so it helps Mattel can use right person for each part of work to bring the best performance for Mattel Corporation 3.4.4 Mattel use complaint procedure to improve quality Steps How it to improve quality Customers complete the complaint form Understanding what part of product or services that make customer not satisfy  and send it for Mattel fix and improve in correct part Mattel’s customer support centre received letter complaint from customers Customer support centre put complaint into Recording helps Mattel keeps and update information about need and want of the electronic records system and forwarded customer  have plan to change or improve product such as develop product, add to appropriate manager new features in product that suitable with customers’ expectation Manager ensures that the email/letter is Limited time for manager to help customer will have response in short time  acknowledged within days improve customers services so increase the Mattel’s performance and customers’ satisfaction Manager conducts the investigation & More way to handle customers’ complaint, Mattel can find the best way to deal provides a report with recommendations to customers’ problem  improve the customer service quality and increase the level of deal customers’ complaint to their general customers’ satisfaction manager The general manager provides a response Show the important of customer with company  build the good relationship to the customer between Mattel and customer so improve the performance of company and gain more satisfaction and loyalty customer If the customer is not satisfied they may Ensure customer will receive the best way to dealing their problems  show the request the issue be referred to the Chief respect of Mattel with customer so can improve the quality of customer services and Executive Officer for reviewing reputation of Mattel under customers’ perception Table 5: Way steps of complaint procedures improve quality Outcome 4.1: The role of self-assessment in order to determine an organizations’ current state of health 4.1.1 Definition According to McKay, by comprehensively reviewing the activities and performance of an organization, Self-assessment helps organization can measure itself, identify and examine any gap There are some methods to review an organization’s activities namely: Benchmarking, Baldrige Framework, Total Quality Management 4.1.2 Role of self-assessment There are main roles of self-assessment in Mattel: Determine strengths and weaknesses find out opportunities for improvement, monitor and measure the process • Determine strengths and weaknesses Mattel has assessed the level of success they achieve as well as the failures and their mistakes, thereby determining the strengths and weaknesses The method Mattel use for this role is Baldrige Framework; this method develop the strengths and eliminate the weaknesses; after that it help company launched the new strategic plan which has more effective in the future to improve the state of health of company  For example, Mattel use Baldrige Framework on process management In 2009, in order to design the process that can meet all the key requirements Mattel creates a new science department which can identify the strength of new raw material Besides, to eliminate the weaknesses, Mattel order new cost control technology from Japan to increase the productivity of process By using this method of self-assessment, Mattel successes in reduce their cost 4% in the 2009 (Mattel, 2009) • Find opportunities for improvement Mattel can identify the areas for improvement when they compare its current condition of business activities with model criteria The method which Mattel use is Benchmarking, by compare with the same process in the past; Benchmarking not only helps Mattel identify the opportunities for improvement but also through improvement, contribute to optimizing business performance  For instance, from 2009 to 2013, the stock price of Mattel rise dramatically from $20 to $45 million, the reason of this good performance come from self-assessment when Mattel benchmark the time to test sample product in 2013 with in 2009 (Big Charts, 2013) By applying a new technique, the testing-time reduced more than hours per week To benchmark with the same process in the past, Mattel could know how they can find new opportunity in improve in the future • Monitor and measure the process The method of self-assessment which Mattel use for this role is Total Quality Management Mattel implemented this method to monitor and measure the progress of its improvement initiatives Besides, according to the 2012 annual report, they also measure its fragmented attempts to introduce various quality initiatives and to identify the link with the company’s business results  For example, because of the good monitor and measure the process, Mattel already achieved many international awards: ISO 9000 certificate for their products in 2008 and Toy Safety Certification Mattel apply is Process management of TQM in Inspection and assurance process All process of Mattel must through quality inspection phases: material checks, sample test checks, after production checks After that, Mattel record each sample which needs to be measured and tested Summarize and evaluate each issue in process, and compare the feature with the agreed specifications Outcome 4.2: Evaluate the important of communication and record keeping 4.2.1 Communication Communication is the transfer of a message (information, idea, emotion, intent, feeling…) that is both received and understood (Umoh, 2000) Types of information External Internal Formal channel Vertical Horizontal Downward Informal channel Diagonal Govt Agencies Customers Clients, Public, etc Grapevine Upward Figure 1: Types of information employed in business organization Information types Ve Downward Communication tools Important roles of communication Verbal: Face-to-face conversation Leadership: rti communication: Nonverbal: Facial expressions, cal exchange information gestures, body poses management of Mattel can transmit Electronic: telephones, fax objectives, activities of organization and from a superior to a • subordinate Useful for management: Upper assign responsibility clearly and easily • Useful for employees: Mattel’s employees can obtain necessary information from supervisors quickly to accelerate their work Upward Verbal: face to face conversation Leadership: communication: is the Written: letter, report • process of transmitting Electronic: email, telephones Useful for management: Mattel’s upper management can receive specific information from the information related to production, bottom levels of an financial situation for making decision organization to the top easier and quick levels • Useful for employees: Mattel’s employees have opportunities to express their requirements, ideas, feeling, and expectation Information types Horizontal: face to face Communication tools Verbal: face to face communication between Written: project report, various departments  create friendly atmosphere, department or people on the letter close relationship to have better performance and bring same level in the managerial Electronic: Telephone, high work efficiency hierarchy of an organization Email • • Important roles of communication Teamwork: Mattel can promote coordination among Conflict resolution: By promoting understanding one another  Mattel can reduce unnecessary conflict between employees • Diagonal: Refers to Break the barrier between the different departments communication between for open communication and encourage the managers and workers located communication directly • in different functional divisions Save time: Mattel can save time by reducing the intermediary steps between upper management and lower workers • External: Exchange Verbal: Face-to-face information through message conversation, press with their stakeholders to give necessary information transmitted between business conferences, public address into public for built good image and create long term and its major audiences, such Written: Report, catalogues, relationship with them as: customers, suppliers… brochures • Strengthen relationship: Mattel can interact regularly Customer focus: information about products and Electronic: Telephone, direct services is transmitted directly towards customers  mail, websites build trust and attract customers 4.2.2 Record keeping Record keeping is “the activity of organizing and storing all the documents, files…relating to the daily business transactions or organization’s activities” (dictionary, n.d.) The reasons leading to important role of record keeping is derived from their benefits bring for the company in aspects as follows:  Quality of record keeping: By taking notes and storing detail about quality inspection and assurance procedure as well as condition of equipment through inspection report, quality assurance record keeping, equipment report, Mattel can control whether Mattel toys meet requirements or not and identify when equipment need to repair or procure new equipment for improving the quality Thus, recordkeeping is considered as key to Quality Management System  Sale record keeping: Mattel can find out actual consumption performance over time to indentify reasons lead to fluctuation in sales to develop plans to overcome the shortcomings and promote innovative strategies in selling Mattel products  Database record keeping: By tracking and storing customer database efficiency, Mattel can provide personalized services; collect customers’ feedbacks if necessary through email address, telephone number for retaining existing customers and building loyalty  If Mattel not have good record keeping, Mattel can face many difficulties in operating business Therefore, in order to run business effectively and want to exist in competitive advantages, it is necessary Outcome 4.3: Follow guideline on the stages of staff consultation necessary for effective implementation of quality scheme 4.3.1 Definition: Staff consultation is the process by which management and employees or their representatives jointly examine and discuss issues of mutual concern (Acas, n.d.) 4.3.2 A scene situation in Mattel The situation in Mattel: “Improving and changing weak management team of company.” Due to the poor of management team, Mattel had problems in product quality and some product was recalled It is influences of Mattel’s reputation under customers’ perception As a result, Mattel should improve and change the quality of management team in order to increase the performance of company Staff consultation is one of the most important to help Mattel achieve their objectives in improving and changing management team Investors In People (IIP) is quality scheme that Mattel will use it to increase the performance of management team in company 4.3.3 Staff consultation flow chart Improving and changing management team plan (Pre-consultation) Staff consultation Give decision in improving and changing management team No Review about the decision Accepted by staff Yes End Flow chart 2: Staff consultation flow chart 4.3.4 Explain the detail of each stage in staff consultation There are four main steps in staff consultation about improving and changing management team in Mattel Below is a table about the detail of each step in staff consultation process Steps Improving Detail of steps Apply IIP quality scheme and - Give benefits of staff consultation to help These two steps connect with the Plan step in IIP changing management employees team plan consultation) aware the important of their Through steps, Mattel can develop their strategies (Pre- consultation for increase performance of company improving and changing performance of management team - Provide the real situation about quality of based on their staff idea and response about this situation management team Mattel will gave more understanding about ability of each staff, - Give the goals and objectives of management about strengths and weaknesses so Mattel will have right plan team performance in the future in using human resources in company - Provide some plans for this situation Staff consultation - Staffs give their agreement and disagreement of some plans that were provided in previous step - If they disagree, they provide for Mattel other plan that they think it is suitable with company situation and strategies of company in management team and explain benefits of their plan Give decision about - Based on the opinion of staff, Mattel director will Links with step Do in IIP quality scheme Mattel will predict improving and decide the way (plan) to increase the performance the performance and effective of management team in the changing management of management team in company team in Mattel Review decision about future (after they change) base on their decision - Evaluate the benefits of plan that was decided the - Measure the agreement of staff with the decision The last step connects with Review step in IIP that Mattel decided in previous step - Review again about the effective plan of company through - If staff not agree, come back step and evaluates strengths of improving and changing management again team plan Table 7: The detail of each step in staff consultation process in Mattel 4.3.5 Benefit of staff consultation guideline for Mattel Staff consultation is very important with every company especially with a large company as Mattel It will bring many benefits for company if company follows this staff consultation process Firstly, staff consultation helps company increase employee satisfaction Through consultation, staff can talk out their idea and show the respect of company with company’s employee It makes employees feels comfortable when working for company so the staff satisfaction is increased and keeps talent for company Secondly, based on the opinion of each staff in staff consultation, director of Mattel can understand about the ability of each staff, the strengths and weaknesses of them so he can have plan in using staff to helps increase the result of project and the performance of company Thirdly, staff can take part in the Mattel changing plan and it make them fell comfortable and freedom in working in company so it helps create the comfortable working environment attract talent people for company Finally, staff consultation helps Mattel increase the relationship between managers and employees in company so company can maintain more trust from their employees Through consultation, managers take time to listen and discuss about the idea of employees so it can make the good relationship between managers and employees As a result, it can bring more employees’ trust for company [...]... change the quality of management team in order to increase the performance of company Staff consultation is one of the most important to help Mattel achieve their objectives in improving and changing management team Investors In People (IIP) is quality scheme that Mattel will use it to increase the performance of management team in company 4.3.3 Staff consultation flow chart Improving and changing management. .. implementation of quality scheme 4.3.1 Definition: Staff consultation is the process by which management and employees or their representatives jointly examine and discuss issues of mutual concern (Acas, n.d.) 4.3.2 A scene situation in Mattel The situation in Mattel: “Improving and changing weak management team of company.” Due to the poor of management team, Mattel had problems in product quality and some... situation and strategies of company in management team and explain benefits of their plan Give decision about - Based on the opinion of staff, Mattel director will Links with step Do in IIP quality scheme Mattel will predict improving and decide the way (plan) to increase the performance the performance and effective of management team in the changing management of management team in company team in Mattel... the Plan step in IIP changing management employees team plan consultation) aware the important of their Through 2 steps, Mattel can develop their strategies (Pre- consultation for increase performance of company improving and changing performance of management team - Provide the real situation about quality of based on their staff idea and response about this situation management team Mattel will gave... as follows:  Quality of record keeping: By taking notes and storing detail about quality inspection and assurance procedure as well as condition of equipment through inspection report, quality assurance record keeping, equipment report, Mattel can control whether Mattel toys meet requirements or not and identify when equipment need to repair or procure new equipment for improving the quality Thus,... measure the process The method of self-assessment which Mattel use for this role is Total Quality Management Mattel implemented this method to monitor and measure the progress of its improvement initiatives Besides, according to the 2012 annual report, they also measure its fragmented attempts to introduce various quality initiatives and to identify the link with the company’s business results  For example,... changing management team No Review about the decision Accepted by staff Yes End Flow chart 2: Staff consultation flow chart 4.3.4 Explain the detail of each stage in staff consultation There are four main steps in staff consultation about improving and changing management team in Mattel Below is a table about the detail of each step in staff consultation process Steps Improving Detail of steps Apply IIP quality. .. their problems  show the request the issue be referred to the Chief respect of Mattel with customer so can improve the quality of customer services and Executive Officer for reviewing reputation of Mattel under customers’ perception Table 5: Way steps of complaint procedures improve quality Outcome 4.1: The role of self-assessment in order to determine an organizations’ current state of health 4.1.1... Mattel can control whether Mattel toys meet requirements or not and identify when equipment need to repair or procure new equipment for improving the quality Thus, recordkeeping is considered as key to Quality Management System  Sale record keeping: Mattel can find out actual consumption performance over time to indentify reasons lead to fluctuation in sales to develop plans to overcome the shortcomings... organization, Self-assessment helps organization can measure itself, identify and examine any gap There are some methods to review an organization’s activities namely: Benchmarking, Baldrige Framework, Total Quality Management 4.1.2 Role of self-assessment There are 3 main roles of self-assessment in Mattel: Determine strengths and weaknesses find out opportunities for improvement, monitor and measure the process