TOTAL QUALITY MANAGEMENT: BENCHMARKING
Finally, this paper also focuses on the methodology and data analysis of thestudy . successful benchmarking has relationship with benchmarking process as well as relationship between total quality management and organizational. Reliability analysis of the Customer Satisfaction Assessment . identify the relationship between the level of total quality management (TQM) implementation . Benchmarking in essence is a crucial component of the TQM process by which a examine the benefits gained from the implementation of benchmarking in Dr J. M. Juran, the American quality guru, defines the difference between Total.
Studies have shown that Sports Direct continuously works to improve their customer support and services at all levels within the group, but there is a need for more emphasis on benchmarking this process. Factors that Impact the Use of Benchmarking Discovering the position in the best performance being achieved is important for every organization. This is in fact a factor that impacts the use of benchmarking.
According to Zailani et al. Other factors include the need to share the establishment and proven best practices by an organization as well as identifying and analyzing world-class performance.
In addition, utilizing tested and proven practices, convincing skeptics of those that have seen benchmarking processes working, and overcoming related inertia and complacency as well as developing a sense of urgency are what are revealed as factors that accelerates change and restructuring in the use of benchmarking. And since the owners of all the processes in an organization are involved, implementation or the use of benchmarking is possible. Limitations to the Use of Benchmarking When using benchmarking to analyze the performance of an organization, it has been established that benchmarking has its own virtues.
The limitations that could be experienced by an organization are the comparison of the production time or the cost of a particular process to that of the competitor companies. When they consider the time or process required for their level of efficiency, they may find it difficult to carry out the process of benchmarking. Additionally, when benchmarking, it is important not to ignore the differentiated output that the shared services or internal support group provide, otherwise, the numeric comparisons or straight-across cost spelt out will be meaningless.
Therefore, when benchmarking, companies should take into consideration more of commoditized processes or services. Solution Successful organizations have been able to figure out the secret behind their success owing to customer satisfaction.
It is important that an environment which supports a quality culture is created and it requires a systematic and structural process. Amongst the principles of TQM, focusing on customer is a major principle that guarantees quality improvement.
It is only customers that determine the level of quality an organization attains. Additionally, since customer service is within management control, there is more emphasis on the role of customers or clients in TQM. This emphasis, according to Charintimathrequires the use of TQM tools to measure and effectively put a solution to customer satisfaction within the management to avert the organization from losing its customers or clients. Al-Ibrahim, Fundamentally, the premise of TQM theories is based on the fact that if the needs and wants of customers are kept in focus, controlling customer satisfaction is attainable.
Al-Ibrahim, Furthermore, achieving the analysis of TQM philosophy for organizational change, it is necessary to consider the fact that Edward Deming discovered his 14 Points of Quality Management.
These ideas have been modified over the years and it was done for the sake of improving the quality of service for customers for their satisfaction. According to Anderson et al. Moreover, organizations have implemented newer ways, approaches, and strategies to ensure that the implementation of quality products and services is achieved.
These strategies have been enlisted from various authors.
- Blog Archive
- September 12, 2008
According to Joseph M. Juran, an important contributor to the development of TQM, the quality trilogy was introduced, these include quality control, quality planning, and quality management. Hence, the Six Sigma tools. The Six Sigma Tools Six Sigma is a simple measure or evaluation of the quality that tries to near perfection.
In a simpler term it defines, measures, analyze, improve, and control. It is dependent on disciplined, and data-driven approach as well as the methodology for getting rid of any defects that is driving close to the six standard deviations relating to the mean and the closest specification limit in any kind of process, ranging from products to services sand manufacturing to transactional. The process of Six Sigma is targeted at the customer.
Based on some key elements of quality, such as the customer, process, and employee, Six Sigma seeks to delight customers with defined quality products and services customer supports and services, included. Customers expect reliability, performance, competitive prices, clear and correct transaction processing, on-time delivery, service, and more.
In the event all these tries to fail, there is need for the involvement of a readily available customer support service to take every step to ensure the customer is made to realize the reasons for the pending problem, and the next available solution. The delivery of service or products should be looked from the outside-in.
And lastly, since people are the developers of results, involving employees is very necessary to an organization quality approach. It is also necessary that organizations are trained in the techniques, statistical tools, and strategies of Six Sigma to ensure the continuous performance of great services.
General Electric, Six Sigma offers some benefits. Basically, Six Sigma depends wholly on statistical and scientific techniques to ensure there is a dramatic reduction in the outlined defect rates of customers. Linderman et al,Fursule et al. This is because Six Sigma takes into consideration the processes involved in the production of a product as well as the finishing of a service, not just its final outcome.
And since the major problem Sports Direct is facing is its customer support process, employing Six Sigma will help the organization promote and improve its return policy and also the approach in which customers answer customers. Some limitations to Six Sigma are based on the metric associated with the tool. According to Fursule et al. In addition, top management involvement is crucial to Six Sigma implementation. This is because they have the final decision to make in providing the required resources to increase customer satisfaction.
Conclusion Achieving a successful customer satisfaction is based on Total Quality Management in any organization. Study others well the practices or system you wish to benchmark 5.
Gather data and learn from it. It involves the following; Plan: Critical success factors, select a process for benchmarking, document the process, and develop performance measures Search: Find bench-marking partners Observe: Identify gaps in performance and find the root causes for the performance gaps Adapt: The initiating firm focuses its observation and investigation of business processes with a goal of identifying and observing the best practices from one or more benchmark firms. Activity analysis will be required where the objective is to benchmark cost and efficiency; increasingly applied to back-office processes where outsourcing may be a consideration.
Financial benchmarking - performing a financial analysis and comparing the results in an effort to assess your overall competitiveness. Performance benchmarking - allows the initiator firm to assess their competitive position by comparing products and services with those of target firms.
Product benchmarking - the process of designing new products or upgrades to current ones. This process can sometimes involve reverse engineering which is taking apart competitors products to find strengths and weaknesses.
Strategic benchmarking - comparison of strategic decisions and dispositions at a higher level. It involves observing how others compete. This type is usually not industry specific meaning it is best to look at other industries. In the school analogy, this will be benchmarking against someone from another school, but of the same type. A company will focus its benchmarking on a single function in order to improve the operation of that particular function.
Complex functions such as Human Resources, Finance and Accounting and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison. It provides opportunities of learning from those who are at the leading edge, although it must be remembered that not very best practice solution can be transferred to others.
Benchmarking | Total Quality Management
Competitors may refuse to share their information Competitive benchmarking is the most difficult type of benchmarking to practice. For obvious reasons, organizations are not interested in helping a competitor by sharing information. It looks at all aspects of the competition's strategy. This is a difficult thing to do because this information is not easily obtained.
It is also important to remember when using competitive benchmarking that the goal is to focus on your direct competitors and not the industry as a whole.Benchmarking - Quality Management
This is a process if buying a competitors product, dismantling it to understand its components and its configurations. Difficulties in deciding what activities to benchmark This is where a company finds it difficult to make a choice on which activity to benchmark as opposed to others.
Therefore the company finds itself concentrating on irrelevant activities and leaving the most important activities. At times the company will be forced to carry out so many activities which make it expensive for the company. Successful practices in one organization may not be successful in another organization This where a company borrows ideas applied by other companies and apply them on their strategy expecting them to have the same results.
In return, they end up being frustrated due to the failure of the whole process. This is because techniques applied by one company may not be applicable to another company. Therefore the company has to spend more on resources required, thus increasing the operating costs of the company. Since the operating environment is highly dynamic, the information obtained from the competitor becomes obsolete before implementation thus the solution will be ineffective. Due to changes in technology, current processes may be ineffective tomorrow.
It encourages the mentality of catching up rather than being innovative The company using their competitor to benchmark, will rather be centralized to competition and trying to reach the levels of performance of the company in question, instead of being creative and innovative to come up with better means and ways of doing things, were it not for consideration of the competitor.
The competitor company being used as benchmark may even have more advanced resources, making it difficult to directly use it as basis for evaluating your company. The code is as follows: Establish the purpose for both parties to improve or gain benefit. Costs should not be discussed.