Quality management assignment 2

Examine the concept of quality management in a business and services context...3 1a Define quality in terms of businesses and services provision...3 1b Define quality in terms of custome

1 Introduction 2

2 Examine the concept of quality management in a business and services context 3

(1a) Define quality in terms of businesses and services provision 3

(1b) Define quality in terms of customer satisfaction 5

(1c) Explain how the organization should measure its quality management 8

(2a) Describe the rationale underpinning four quality schemes commonly adopted by commercial operations 10

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

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

3 Conclusion 13

4 References 14

1 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 do 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 4 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” [ CITATION QMB04 \l 1033 ]

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

Perceived value

SI

Complaint Expectations

(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 do not reach the customer’s satisfaction In case study, Mozilla is a develop-software company and their customer paid for using Mozilla’s develop-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” [ CITATION QMB04 \l 1033 ]

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

[ CITATION Wor \l 1033 ]

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 do 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 5 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 [ CITATION www12 \l 1033 ] 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 [ CITATION Nan04 \l 1033 ]

 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[ CITATION Dav11 \l 1033 ]

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 4 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, 6 Sigma focuses on how to do 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 4 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 4 schemes to managing quality