Quality Management Assignment 2

Unit OutcomesAssessor’ s decision Internal Verification Examine the concept of quality management in a business and services context 1 Define quality in terms of businesses and services

BANKING ACADEMY, HANOI

BTEC HND IN BUSINESS (FINANCE)

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:

Unit Outcomes

Assessor’

s decision

Internal Verification

Examine the

concept of

quality

management

in a

business

and services

context

(1)

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

Investigate

four different

quality

management

schemes

appropriate

to

commercial

operations

(2)

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

Outcome Evidence for

Assessor’

s decision

Internal Verification Comments by Assessor - Common Skills

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 D MANAGING TASKS & SOLVING

1 Managing own roles & responsibilities 12 Use information sources X

2 Manage own time in achieving objectives 13 Deal with a combination of routine &

3 Undertakes personal and career development 14 Identify & solve routine & non-routine

problems

4 Transfer skills gained to new/changing

situations & contexts

B WORKING WITH & RELATING TO

5 Treat others beliefs and opinions with respect 15 Applying numerical skills and techniques

6 Relate & interact effectively with individuals

& groups

and systems

8 Receive and respond to a variety of

G APPLYING DESIGN AND CREATIVITY

9 Present information in a variety of visual

to develop a variety of ideas in the creation of new / modified products, services or situations

11 Participate in oral & no-verbal

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

9th May 2012

Table of contents

Title Page 4

Table of contents 5

Introduction 6

Main body 7

1 Examine the concept of quality management in a business and services context 7

1.1 Define quality in terms of businesses and services provision (1a) 7

1.2 Define quality in terms of customer satisfaction (1b) 8

1.3 Explain how the organization should measure its quality management (1c) 9

2 Investigate four different quality management schemes appropriate to commercial operations 11

2.1 Describe the rationale underpinning four quality schemes commonly adopted by commercial operations (2a) 11

2.2 Identify the main similarities and differences between four quality management systems (2b) 12

2.3 Explain the importance of communication and record keeping in quality schemes (2c) 13

Conclusion 14

References 16

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 4 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 6 outcomes have to complete

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 ( 2 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

1 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.[ CITATION kio12 \l 1033 ] 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, 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” [ CITATION QMB04 \l 1033 ] 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 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.[ CITATION wor12 \l 1033 ]

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 3 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 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

[ CITATION Hun12 \l 1033 ] 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

[ CITATION eho \l 1033 ]

[ CITATION gen121 \l 1033 ] From 2008 to 2012, Mozilla Firefox always in top 3 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 do 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

2 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 parties involved in the production process as accountable for the overall quality of the final product or service.[ CITATION inv12 \l 1033 ]

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.[ CITATION tec12 \l 1033 ]

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 [ CITATION Mar121 \l 1033 ]

Lean is a systematic approach to the identification and elimination of waste and non-value added activities through employee development and continuous improvement in all

products and services.[ CITATION lea12 \l 1033 ]

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