Discuss the essentials of Total Quality management…………..

 

Table of Contents

1.0 Introduction………………………………………………………………………………….4
1.1 About TQM…………………………………………………………………………..4
1.2 Rolls Royce Company………………………………………………………………………5
1.2.1 Targeted Customers, Products and Services Offered………………………..5
1.2.2 Order Qualifiers and Order Winners……………………………………………6
1.2.3 Order Qualifiers in Rolls Royce…………………………………………………6
1.2.4 Order Winners in Rolls Royce…………………………………………………..6 1.3 Operational Processes in Rolls Royce……………………………………………………7
1.3.1 Raw Materials Processing……………………………………………………….7
1.3.2 Assembling Process……………………………………………………………..8
1.3.3 Transporting Process…………………………………………………………….9
1.4 Literature Review on TQM……………………………………………………………….10
1.4.1 Process and Prevention……………………………………………………….11
1.4.2 Training and Education…………………………………………………………12
1.4.3 Leadership and Commitment………………………………………………….14
1.5 Three TQM Concepts……………………………………………………………………..14
1.5.1 Process and Prevention………………………………………………………..14
1.5.2 Training and Education…………………………………………………………15
1.5.3 Leadership and Commitment…………………………………………………15
1.6 Implementation of the three TQM Principles in Rolls Royce…………………………15
1.6.1 Training and Education………………………………………………………..15
1.6.2 Process and Prevention………………………………………………………..16
1.6.3 Leadership and Commitment…………………………………………………16

1.7 Conclusion…………………………………………………………………………………15

Reference………………………………………………………………………………………16

1.0 Introduction

1.1About TQM
Competition is the Main business language. Even before profit projections in a company are calculated, a company has got to identify what it is up against. That is to mean, it has to identify its main competitors in the field. Retrogressive minds will always view competition as a success inhibitor: on the contrary, competition is the fertilizer for immense success in all businesses. A successful company will have to sit down and ask itself how well it can use competition to maintain a firm grip and become a major player in the field. As companies keep re-strategizing, new business ideas and principles are born. Of all these business ideas, Total Quality Management (TQM) has appeared to be the most effective. So effective it is that it is being implemented by all businesses (size or market share of the business notwithstanding). It has become the darling of business organization in as far as ensuring that the products or services quality being offered is unquestionable.
Total Quality Management is spirited in its own letters. It is an embodiment of what is to be done to achieve immaculate results. TQM emphasizes on the overall participation of all sectors in business to achieve the best quality for customer satisfaction. It shoulders the responsibility of guaranteed positive customer feedback on everyone and should be done in the most cost-effective way with a guaranteed return on investment. QUALITY encourages precision. The main objective of any business should be to attain the highest level of quality in product and service delivery. Precision should include: price precision (in order to remain competitive and sustainable in the market) and delivery precision. Delivery precision should factor in on delivering the goods or services in time as well as delivering the requested goods or services in their correct forms. Management requires the input of the top management brass of the business. They must be competent and they should be able to trickle down the business philosophy, goals, visions and objectives to the employees. In addition, they should also inform their internal and external clients of the same and they should strive to continue promoting the quality improvement culture of the business.
1.2 Leyland Truck Ltd
Based in Leyland Lancashire, Leyland Trucks is UK’s leading manufacture of heavy duty truck (Leyland Trucks, 2012). The company has its origins as Leyland Motors Ltd but was nationalized British Leyland conglomerate. British Leyland successor Rover Group breakup resulted in the emergence of Leyland Trucks as an independent company.  It emerged from DAF NV bankruptcy in a management buy-out in 1993, and was bought by PACCAR in 1998 and has been a subsidiary of the company since then.  The plant currently employs more than a 1000 people.
1.2.1 Targeted Customers, Products and services offered.
Leyland Trucks is a narrow based company and it only offers Leyland trucks to over 44 countries in Europe and around the world. However, it is carving a niche for itself as a leading provider for trucks that are environmentally safe and trucks that are safe to drive.

1.2.2 Order Qualifiers and Order Winners
Order winners and order qualifiers are essential in any business. They determine the direction that a company should take to achieve its targeted goal.
Order winners are the competitive characteristics that make a customer prefer goods or services of one business to the other. Order winners can be explained as the competitive edge of a business. Price/cost, quality, delivery reliability, product design, flexibility, after-market service and image constitute order winners. On the order qualifiers are the competitive characteristics that a firm must have to be able to remain viable in the market.
1.2.3 Order Qualifiers in Leyland Trucks
Being an international company, Leyland Trucks has invested a lot in inclusion of the most current and up to date technology in their products. It has strived to produce the best and maintain high integrity and products. It ensures that it has got the most experienced manpower as well as the required machinery. Punctuality in their delivery system is always emphasized.
1.2.4 Order winners in Leyland Trucks
To remain viable in the market, rolls Leyland Trucks has established a well detailed distribution channel where the products are brought closer to the customer through dealerships. Clients just need to go to their local dealer and purchase a Leyland truck. Furthermore, through the dealerships, the company has been able to maintain communication with its clients which has helped it to improve its

1.3 Operational Processes

1.3.1Raw material processing

 

1.3.2 Assembling process

 

1.3.3 Transportation process

1.4 Literature review
In Britain, the automotive industry is the largest manufacturing industry. It represents a major sector that has got a large demand. The motor manufacturers are always much engrossed in the manufacture of their products. However, they should employ TQM to approach the motor market effectively (Automotive report, 2009). The automotive industry is a business in as much as it’s a science. Therefore business ideas should drive the profit oriented sector of the companies, and that means involving TQM (Automotive report, 2009). The motor industry is supported by the Society of Motors Manufactures and Traders Limited (SMMT) which helps in consumer affairs amongst other things. It also supports the ISO900/EN2900/BS5750 (International, European and British Identical Standards). It recommends that companies should accept only the standards in the ISO9000. This becomes fundamental since the motor industry has been dominated by quality standards specified by vehicle manufacturers (The UK automotive industry, 2001).

After its success in Japan, TQM in the UK and USA emerged in the 1980’s. Empowerment of employees, continued training and education, commitment of employees has been identified as essentials of TQM.
Quality Management implementation requires knowledge of various components. Being able to identify which components are useful to implement TQM is fundamental to any managers (Components of successful total quality management, 2005). Once managers know these components, they can successfully implement, and show the situation of 106 ISO 9000 certified firms concerning these components (Components of successful total quality management, 2005).
Quality management has been considered as a critical competitive tool by various firms around the world. During the past three decades, quality management has been considered as the fundamental factor in driving success towards implementation of total quality management in a firm. What comes out very clearly is that firms with high top management commitment implement most TQM factors vigorously than the firms with low top management. Moreover, employee involvement, and product innovation are the primary predictors of the product quality (Chowdhury, 2007).

1.4.1 Process and Prevention
Prevention of errors has always been seen as key in ensuring the survival of a company. Therefore investing resources in preventing errors has lead to transferring the costs of such prevention to the customer. Because, to make sure errors are prevented inspection services have to be relied upon and these services cost money. It would be very unfair for the customer to bear the brunt of this process. Quality is never sold (Slack, Chambers and Johnston, 2010). It is the assurance a customer gets from the company. Charging a customer for the quality of a product will just make them not buy a product from a company.

 

1.4.2 Training and Education
A company’s human resource department is well placed to help in the implementation of total quality management. Training the human resource continually and effectively on the company policies and philosophies is essential. Furthermore, it can demonstrate its attention to detail and quality in its daily operations. This is facilitated by the fact that this section of a company is always tasked with recruitment and training of a company’s human resource. It can help focus on the customer’s needs, it can focus on solving problems and refrain from correcting them, it can help in continuous improvements and train its employees in the different ways to improve quality. Furthermore, it can apply team approach to problem solving.  However, for this to succeed, it must enjoy the support and backing of the top management. It can be deduced that an active role by human resource department increases the success of TQM (Clinton, 1994).

A business firm is not a solo project. It is run by various people in different departments. An individual cannot make decisions on behalf of all the departments in a firm. Otherwise, the various departments may fail to work in unison. In addition, the decision making progress will slow if not absent in dome cases. This will affect a company’s progress no doubt. That is why for total quality management to thrive total involvement is required. Total involvement and team spirit has for long been a topic of interest to management scholars. They may be closely related but the former is redundant. It should be well understood that although the two seem similar, practically they fulfill different functions (Dimitriades, 2000).
TQM has been established as an important business aspect that helps in realization of a company’s goal. However, it application is not as smooth as has been misconceived. Implementation of TQM encounters some obstacles including:

a) A management which is not tied to achieving quality goals.

b) Shortage of resources to fully employ total quality management.

c) Employees resistance to change.

d) Lack of employee training in problem identification and problem solving techniques e) Employees lack of improvement skills training.

The effects of such problems to a business are very profound and for a business to succeed, then the above issues need proper attention (Hill, 2008).
With TQM exhibiting success in the private sector, it has become almost impossible to replicate the same success in the public sector. TQM has been had a troubled existence in the public sector. The negative factors behind this are that, the public sector has got a history of centralized authority and bureaucratic procedures. Furthermore, the concept of individual ownership is an alien concept which further makes it very hard to establish TQM. In the private sector, TQM has been used all round i.e. on products and services being provided. However in the public sector it just is applicable to performance (Moon, 1998).

1.4.3 Leadership and Commitment
Sometimes, TQM programs fail to achieve the desired change in an organization. According to Dimitriades, (2000), the capacity of one senior team to develop commitment to the new TQM direction and hence they fail to make decisions that are congruent with the TQM. TQM will only succeed if the top management lead changes in management quality or in adverse cases replace the managers (Beer, 2003).
1.5 Three TQM Concepts
1.5.1 Training and education
For employees to be highly productive, training is paramount. The role of the supervisor then becomes solely to implement the TQM within departments and disseminating knowledge to the employees about the philosophies of TQM (Chris, 1999). The employees should be trained on interpersonal skills, problem solving, and ability to function within teams, decision making, business economics and technical skills. In general the employees should be trained to become more effective employees for the company.
1.5.2 Process and preventions.
Employees should focus broad picture. They should ensure that they focus on the whole production process rather than what they are assigned to, so ensure high quality of products.

1.5.3 Leadership and Commitment
Commitment and leadership allows decision making process in the various level of organization. It goes hand in hand with trust, where encouragement of individuals (company leaders) to engage in the leadership process and make bold decisions is encouraged. Leadership and commitment go a long way to ensure customer satisfaction. It helps build an environment essential for TQM (Six Sigma, 2012).
1.6 Implementation of the three TQM Principles in Rolls Royce
1.6.1 Training
As a big player in the manufacturing industry in UK, the automotive industry must work to maintain a competitive edge. Prior before the downturn, the European Automotive Industry had been a major strategic player in the automotive industry (Bevis, 2011). To be able to maintain the number one spot, Leyland Trucks should invest in training manpower (enough manpower) to be able to produce enough quality products to satisfy the customers’ needs and demands.

 

1.6.2 Leadership and Commitment
Leyland Trucks should make sure that their leadership is committed to the companies philosophies and that they take part actively in the companies operations to ensure success and not replicate the happenings of the early 90’s and late 80’s that led t their bankruptcy.

1.6.3 Process Prevention.
To be able to convince new customers to buy their products, Leyland Trucks should first of all trust their products as the best in the market. They should not involve a lot of inspecting process that would later on get transferred to the customers.

1.7 Conclusion

It is evident from the above discussion that, TQM if applied well in an organizational context is a powerful tool. From Bankruptcy, Leyland Trucks has risen to be amongst the best producers of the best trucks. It goes to show that if TQM is applied properly, then success is guaranteed.

References

‘Automotive report’ 2009 Automotive Industry Report: UK, 2, pp. 8-19.

Beer, M. 2003, “Why Total Quality Management Programs Do Not Persist: The Role of Management Quality and Implications for Leading a TQM Transformation”, Decision Sciences, vol. 34, no. 4, pp. 623-642.

Bevis, K., 2011. The challenges for sustainable skills development in the UK automotive supply sector. Management Research Review, Vol. 34, Issue1, pp. 133-147.

Chris, H. 1999.Total quality management: the key to business improvement: A Pera International executive briefing. Springer.

Clinton, R.J., Williamson, S. & Bethke, A.L. 1994, “Implementing total quality management: The role of human resource management”, S.A.M.Advanced Management Journal, vol. 59, no. 2, pp. 10-10.

Dimitriades, Z.S. 2000, “Total involvement in quality management”, Team Performance Management, vol. 6, no. 7, pp. 117-121

Hill, D.A. 2008, What makes Total Quality Management work: A study of obstacles and outcomes, Capella University.

Moon, C. & Swaffin-Smith, C. 1998, “Total quality management and new patterns of work: Is there life beyond empowerment?” Total Quality Management & Business Excellence, vol. 9, no. 2, pp. 301-310.

Leyland Trucks (2012) Welcome to Leyland Trucks.[Online] Available from: http://www.leylandtrucksltd.co.uk/ [Accessed on 20^th March 2012].

Six Sigma (2012) The Eight Elements of TQM. [Online] Available from: http://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/ [Accessed on 8^th March 2012].

Slack, N., Chambers, S. and Johnston, R.  (2010)  Operations Management. Sixth Edition. Essex: Pearson Education Limited

The UK automotive industry: A long history of added value. 2001. Corporate Location, (17467284), pp. 27-27.

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