The Strategy of Managing Quality - Essay Example

Part A. Critically analyze the strategy of managing quality through the use of a system of documented procedures such as that described by international standard ISO 9000. A number of companies, which have received a refusal in certification, have been not able to receive it due to the improper documentation of their activity. The is an opinion through some companies that if the employees do know, what exactly they are to do, there is no sense to make extra documents, and all the more so to work out time-consuming and complicated systems of documentation support in actual state and combined with following of all changes. In this case the objective to get a certificate of ISO standards becomes almost unsolvable. It should be stated that in order for and organization to demonstrate the effective implementation of its quality management system it must develop more documents than just documented procedures1. Despite the fact that ISO standards are developed with the government support, certification on ISO 9000 is a completely voluntary matter. Pressure, constraining enterprise to carry out a certification, occur by users, but not legislative organs. Almost the most important fact, which is concerned this standard, is the fact that many companies, especially in Europe, require registration on ISO 9000 from their suppliers of goods and services. To cut the long story short we should say if there is no registration on ISO 9000 there is no concluded contract. In the USA, for example, NASA and Ministry of Defense now require certification on ISO 9000 from its suppliers. Let us consider the example of corporation DuPont, which is an example of enterprise, which corresponds to ISO. The activity of corporation is connected with world sales to the production of chemical industry. DuPont is one of the biggest chemical companies in the world. It was established in 1802 as manufacture for the production of powder. Nowadays DuPont produces a wide range of chemical products and conducts great innovational researches in this area. The company is an inventor of variety unique polymeric and other materials, such as neoprene, nylon, teflon, kevlar and other. The company was also developer and basic producer of the freon, utilized in the production of refrigerator devices. According to version of Fortune 500, the company occupies 66th place among the largest corporations of the USA. At present time DuPont is a multinational corporation that has 18 major businesses, operations in 70 countries and more than 60,000 employees. The gain of company in 2005 composed $26,6 billion. After the DuPont's certification in accordance with the requirements of the standards ISO 9000 it has began the stage of its implementation. Standards' implementation have not been so easy, since in comparison with the previous version (1994) serious changes underwent these standards, they now requires the reconsideration of approaches of management of quality and mastery of the new requirements, which are based on TQM philosophy and principles of the quality rewards models. Together with the unconditional progressiveness of the standards ISO 9000, especially new version, there is a potential danger of standards formal implementation. In the process of ISO standards implementation in DuPont there have appeared a range of complex problems, caused by the need of the systematic guarantee of realization of positions and requirements of these renovated standards, training of specialists and experts, and also by the lack of preparation of many certification organs for the work regarding correspondence of the systems of quality to new requirements. The main task, which have stood before the management of company was to avoid formal implementation into of ISO 9000 standards, since formal approach to this matter can bring only loss of time and expenses, and disappointment in standards themselves. Actually, under specific conditions ISO 9000 standards can not only prove to be useless, but also bring the harm: with the formal approach to their introduction they will only distract specialists from the essence of work in the quality. The real possibility of the appearance of this danger is testified the negative experience of many companies. The main advantage of introduction ISO 9000 in DuPont company is orientation to the user and the active involvement of personnel in all aspects of the activity of enterprise, which undoubtedly increased the effectiveness of the work of enterprises as a whole. Robert Paine, DuPont specialist for the automation of document turnover, stated that there was definitely efficial step for DuPont to be registered in correspondence ISO 9000 standards. The point is that there are so many DuPont components that go in temper of production, manufactured by European enterprises, that correspondence to ISO 9000 is simply necessary for this business. Some day the management of company have decided that each DuPont plant must separately pass the process of registration of correspondence to ISO 9000. Paine on using the documented procedures issues has helped them to put into use the computer systems, on which will be placed the descriptions of processes of ISO 9000. Initially in different enterprises of DuPont they used ISO 9000 methods, which can be implemented by hand, or developed their own applications. Later on DuPont management found out that ISO 9000 and other procedural documentation would be conducted in the best way, if to use systems of client-server type on basis of PC. For creating the final version of system ISO 9000 the company used the program products PC DOCS. Robert Paine stated that products of PC DOCS are the most suitable for DuPont needs. He added that purchasing PC DOCS cost for the company much cheaper than the development of own applications for ISO 9000. Very often the enterprises pack on 100 thousand dollars for the development of its own system ISO 9000 for its each plant, instead of purchasing the license to products PC DOCS in all for several hundred dollars. Some time ago in the process of organization a company's controlling system the main attention have been paid to company' structural units, but not the procedures. DuPont management has come to idea that the attention should be paid to the necessity of institution a procedure oriented controlling as well as necessity to provide all company's managers with the information, which characterize this processes. According to ISO 9000 the quality of all DuPont's procedures supposes to be answerable to the standards. Therefore the system of documented procedures gives to management an opportunity to register all aberrances with a view to take immediately measures in order to remove the causes of theses aberrances. Examples of quantitative improvements are evident with DuPont. DuPont used ISO 9000 to 'increase on-time delivery from 70 percent to 90 percent, decreasing cycle time from 15 days to 1.5 days, increasing first-pass yields from 72 percent to 92 percent, and reducing the number of test procedures to one third'2. Dupont, a pioneer in quality improvement and in ISO 9000 implementation, measured improvements under ISO 9000 in several different categories. Computer Science Corporation provides DuPont with a range of services that span the entire information-technology (IT) lifecycle. For CSC's DuPont account team, its ISO 9001 certification applies to the implementation, integration, operation and support of mainframe, midrange, client-server, telecommunications and desktop-based information systems located at 57 DuPont sites in North America3. "This certification demonstrates that our entire organization is focused on delivering repeatable solutions and services of the highest quality," said Chris Helme, vice president of global service delivery management for CSC's DuPont account. "Everything we do for our DuPont client is process driven. Implementation of an ISO 9001 certified quality system provides us with a firm, objective basis for continually assessing and improving our processes. We are proud to have earned this globally-recognized certification." Brad Savage, KRQ Inc. lead assessor commended CSC's DuPont account team for "its well documented quality system, strong problem management process, highly-motivated employees and overall strong dedication to satisfying the DuPont client." Documented procedures - is a central issue of ISO 9000 standards. It is a kind of external side of standardization that sometimes creates an illusive impression of simplicity of certificate getting. But correct examination and conducting of a company's documented procedures by the nature of fact disclose company's problems. These problems sometimes may be so deep that demand total changeover in this company's activity. It is surely to easy way to go. Notwithstanding the managers should realize that in case this changeover is conducted properly the results would be magnificent. Part B. Contrast the strengths and weakness of the above with a TQM strategy. Almost half a century ago Joseph Juran tried to direct western managers to the point that the quality should be regarded as congruence not that much to determined requirement but to the needs of customers. This conception of quality has been properly taken by managers not from western but from eastern countries. In the middle of 1970es the quality has become the main factor of competitive ability of Japanese products. This particular fact has given Japanese companies a possibility to advance increasingly through the markets. As a result many branches of industry of different western countries has been badly crippled, especially US companies. Notably efficient and perspective answer to Japan economical 'aggression' has become a foundation in 1987 Malcolm Baldridge National Quality Award, and what is even more important a working out of Total Quality Management (TQM) principles, on the basis of which it has been constructed and used various model of quality management. In 1991 it has been originated European Quality Award, which has been a more advanced sample of TQM model, and now is known as EFQM model. Under the contemporary market conditions, with a dynamic change in the market environment, before the producers of goods sharply stands the task of development and conclusion for the market for new it is specific production. New product, first released for the market, possesses enormous competitive advantages, but it is possible to lead also to the significant financial losses. The solution of this type of tasks Dupont consists of the continuous development and the perfection of technologies, and of the skill to also forecast the direction of consumer requirements. Basic at present is the following algorithm of pre-production of the new goods: the determination of the demands of users, the prognostication of the development of demand, the determination of the concrete parameters of future production. This method requires collection, working and analysis of the enormous volume of information, and also use of large volume of resources. In Dupont the effective solution of these tasks the significant role can play the use of a system of Six Sigma, by represented by itself the highly organized process, which makes it possible to be concentrated on development and production and assignment of the services, close to the ideal. The system of Six Sigma - this is the contemporary system of management, directed toward a constant increase in the effectiveness in the work of organization, obtaining profit due to the decrease of expenses and satisfaction of the demands of user. As the initiative, directed toward the minimization of possible defects in the produced articles, subsequently it became independent discipline in control. This procedure, created on the base of initiatives, expanded in of the 80th years for the purpose of an improvement in the quality of production, at the given moment proposes methods and analytical tools, which make it possible to define the demands of user and that, as should be improved processes, in order to in the best way satisfy these requirements. It should be stated that though ISO 9000 standards and TQM are two substantially discriminate models, they nevertheless are mutually complementary and perform the basis of systematic of quality management. In the point of fact on applying of ISO 9000 standards the special attention is paid to provision of accordance of quality management systems with requirements of these standards, that facilitates rationalization of contract relations and constitution of a number of technical preconditions for market globalization. At the same time on applying TQM models the attention is concentrated on provision of customers satisfaction and constant improvement of quality management and its outcomes. Owing to Malcolm Baldridge Award and EFQM model it has been created the new, customer oriented view on quality. The quality has become considered as some factor of competitive ability of products and their producers. According to Maromonte, documented systems covering the company's critical procedures must be comprehensive, and strictly complied with by personnel on a company-wide basis4. Unfortunately like in each sphere there are some negative aspects in TQM and ISO 9000 models. Nowadays there have appeared the grounds for assuming that if the approach to the certification of the quality systems remains without any changes, then certificate to the system of quality finally will lose its value in the eyes not only of users, but also producers. As for the user, from his/her point of view, the supplier's certificate for the quality of system does not for sure guarantee the obtaining of production of the necessary quality and acceptable with the price. At best the user can be confident in the fact that in the enterprise, in which there is the certified system of quality, are created the conditions, necessary for the effective work. As has already been spoken, with the certification of the system of quality is checked, in essence, the presence of the necessary procedures and documents. For example, in p. 7.2.3 of standard ISO 9001:2000 it is discussed the fact that the feedback with the user must be established. For fulfilling of this requirement is developed the documentary procedure, realization of which is checked with the certification. Indeed in accordance with this model on the basis of data in three-five years is conducted the quantitative assessment of the satisfactoriness of users both by the production and by the activity of enterprise. But this estimation is not conducted with the certification, since it is not provided by the requirements of standard ISO 9001:2000, besides an enterprise up to the moment of the certification of the system of quality may not have necessary data. The certification of the system of quality conducted just for the solution of an important, but particular problem (such as conclusion of a contract, participation in the tender, obtaining of advantageous order, etc.), can lead to its formal implementation. In this case in order to pass certification, management of a company pay primary attention to the documentation and to the control of its fulfillment in accordance with the requirements of procedures, but not to the essence of the matter. All abovementioned indicates the need for change in the approach to the certification. Let us examine the possible versions of the solution of this problem. The first version is such. After conducting of checking the system of quality a company get the evidence about the fact that all its elements, provided by standards, are put into operation. However, certificate to the system of quality can be entrusted only if organ for certification will be convinced of the positive dynamics of the quality coefficients of the work of company and its results, especially in the actual satisfactoriness of the users of its production (services). The second version it presupposes that the center in the work on the estimation of the result of the system of quality is transferred to the stage of inspection control, and the process of its certification remains without the changes. Its advantage consists in the fact that before the inspection control the company will be able to accumulate actual data, which will allow those checking to give the estimation of its work taking into account information about the satisfactoriness of users, influence on the society and environment and so forth. Since with each subsequent inspection control there will be gathered more and more data, then the objectivity of the estimation of the result of system will grow. In this case those who check get the possibility to objectively evaluate the situation, which is established in the company. If the results are positive - system works, if there are no results - it is implemented formally and the certificate should not confirm the capability of such system. It is also necessary to increase requirements for the organs for the certification of the systems of quality and to ensure the independence of their activity from the checked companies, to organize the special training of experts and to conduct re-accreditation of organs for certification taking into account their ability to certify the systems of quality on the standards ISO of series 9000:2000. With this approach to the certification of the systems of quality are created objective conditions for larger confidence in a company from the side of the wide circle of users, industrial groups, associations, etc., and also the state. All this will make the introduction of the standards ISO of series 9000:2000 more attractive for many companies. It is obvious that the putting in practice of the necessary change in the approach to the certification it is not a simple problem. Anyway it must be discussed and it is necessary to search for the acceptable solutions. Otherwise the introduction of the standards ISO of series 9000:2000 can come to the formal reports of its certification, which will not be useful neither for users nor for producers. Notwithstanding these two models are supplement to each other, in the first half of 1990es there has been a confrontation between followers of these models. And it is obvious that such opposition has not forwarded the further needful improvement of quality in industry and other sectors of economics. As the other factor that has slowed down the further improvement one may consider the problems, which have appeared on applying conceptions of quality based both on TQM and ISO 9000. The notably serious problem for the majority of companies has been determined by the fact that TQM models have not reckoned for integration of quality in business conceptions of products and services producers, and in their practical working. As a result a lot of leaders and managers have continued to regard quality as an attribute of only products and services, but not of system of management in general. Therefore managers of numerous western companies, in which TQM models have been widely used starting from 1980es, have lost their adherence to these models. As for the ISO 9000 it should be mentioned that the vision on quality, which have be stated be the standards, has appeared not insufficient for provision of constant quality improvement, as it has been mostly oriented on certification of quality management systems. Bibliography: 1. Bergenhenegouwen, Louise, Annemarie de Jong, Henk J. de Vries. 100 Frequently Asked Questions on the ISO 9000: 2000 Series. American Society for Quality. 2002. 2. CSC Business Unit Earns Valuable Quality Certification: ISO 9001 Certification Underscores CSC's Commitment to Delivering Superior Value to DuPont. Retrieved 10 Feb, 2007 from < http://www.csc.com/newsandevents/news/140.shtml> 3. Evans, James R., William M. Lindsay, The Management and Control of Quality, Sixth 4. Edition. Thompson Southwestern, 2005, p 132 5. Hoyle D. ISO 9000: 2000; An A -Z Guide. Elsevier.2002. 6. Hoyle, D. ISO 9000 Quality Systems Handbook. Elsevier. 2005. 7. Maromonte, Kevin. R. Building the Invisible Quality Corporation: The Executive Guide to Transcending Tqm. Quorum/Greenwood. 1996. 8. Nee Paul A.. ISO 9000 in Construction. Wiley-IEEE. 1996. 9. Hutchins, Gregory B. The ISO 9000 Workbook: A Comprehensive Guide to Developing Quality Manuals and Procedures. John Wiley and Sons. 1995. Read More