Quality Management

Quality Management
Argument for Using the Principles of Quality Management
The concept of quality management relates to measures and initiatives taken by organizations to ensure delivery of products and services that meet highest standards and expectations of those receiving them. Quality management is accepted as a critical aspect of strategic decisions in both the public and private sector (Antony, Leung, Knowles & Gosh, 2002). It enables organizations to satisfy the needs of their customers and in the process maintain their competitiveness in the industry. Underlying the notion of quality are the principles of quality management. These principles give guidelines for improving quality and performance in organizations.
One of the principles of quality management is customer focus. This principle recognizes that businesses depend on their customers for existence, and thus should strive to understand customer needs and exceed their expectations (Paton, 2002). In this regard, organizations are expected to implement strategies for systematically managing customer relationships. This includes being able to communicate customer expectations throughout the organization, measuring customer satisfaction and ensuring that business objectives are linked to the expectations of customers. Using the principle of customer focus ensures a balanced approach between the need to satisfy customers and other stakeholders such as business owners, financiers, and employees. It also leads to improved customer loyalty as well as increased sales revenue and market share.

Another important principle of quality management is leadership. This principle is concerned with the setting of strategic direction for the organization and motivation of employees. As noted by Evans and Lindsay (2012), leadership plays a fundamental role in setting organizational goals and objectives. A key advantage of using the leadership principle is that it leads to unity of purpose for an organization. Leaders help in creating a harmonious internal environment in which employees are motivated to dedicate their energies towards achieving an organization’s objectives. A closely related principle in employee involvement. Employees are an integral component of an organization’s strategic assets and resources (Arumugam, Chang, Ooi & Teh, 2009). Naturally, it is imperative that employees are involved in setting the strategic agenda and in achieving the set organizational targets. The most important benefit of using this principle is that it leads to highly motivated and involved workforces. In addition, the principle fosters high levels of creativity and innovation leading to the rapid and efficient realization of goals.
The process approach is another major principle of quality management. This principle states that the desired goals are achieved with efficiency when an organization’s resources and activities are managed as a process. As such, the principle entails systematic definition of key activities and processes necessary to achieve specific results and the establishment of clear accountability and responsibility for managing the activities (Antony et al., 2002). Using this principle contributes to quality management through reduced costs and shorter cycle times, predictable and consistent results, and focused improvement opportunities. The process approach is closely related to the principle of systems approach. This principle requires that organizations identify, understand and manage interrelated activities and processes as a system so as to enhance efficiency and effectiveness in achieving organizational objectives (Arumugam et al., 2009). Among other things, the systems approach principle requires alignment and integration of business processes. Using this principle leads to better understanding of the interdependence between the various processes and activities involved in an organization.
The next principle is continual improvement. According to Evans and Lindsay (2012), continual improvement of an organization’s quality and overall performance should be a critical objective. The benefits of continual improvement include improved product quality, increased organizational flexibility, and ability to embrace new technologies for improving performance. Innovation and creativity are central to the realization of continual improvement objectives. In this regard, it is important for organizations to encourage a culture of creativity and innovation by providing employees with the necessary training and tools to enable them to recognize the significance of continual improvement.
An equally important principle of quality management is the factual approach to decision making. This principle is premised on the fact that decisions are critical in the implementation of organization strategies and realization of objectives. In this regard, decision-making processes should be based on rigorous analysis of data (Dick, Gallimore & Brown, 2002). The data should be factual in order to derive meaningful information upon which strategic decisions should be based. Application of this principle ensures that decision-making is approached as a logical process based on analysis of past data and that it can lead to information that is sufficiently reliable and accurate. Antony et al. (2002) have noted that factual decision making leads to enhanced understanding of an organization’s external and internal environments. For example, it enables organizations to analyze changes in market conditions and determine how these changes will impact quality standards.
The last major principle of quality management involves the establishment of mutual relationships with suppliers. This principle recognizes that suppliers are indispensable business partners for any organization and that its application helps in enhancing the ability of both parties to create value. Fostering mutual relationships with suppliers encourages improved working practices and encourages quality improvement (Arumugam et al., 2009). This consideration is important in today’s competition-paced world where suppliers are expected to play a key role in quality management. Organizations can establish mutual relationships with suppliers by establishing clear and open communication channels, sharing crucial information, keeping each other updated about future plans and establishing joint improvement plans.
How the fundamental principles of total quality impacts high-performance management practices identified by the authors
Evans and Lindsay have given examples of leading organizations that used high-performance management practices to improve quality. One of these organizations is Baxter Health International, which used a combination of Baldrige and Six Sigma to improve its quality management practices. Baldrige is a performance management framework that can be used y organization to innovate and improve their business processes (Dick et al., 2002; Paton, 2002). The framework is related to the six sigma methodology, which is a data-driven approach to improving quality. The two approaches are based on the fundamental principles of total quality management. By combining the two approaches, Baxter Health International was able to enhance quality management, lower costs, improve customer experience and nurture beneficial relations with industry leaders. Other organizations that effectively leveraged Baldrige for quality improvement include Atlantic Care and Branch-Smith Printing Division.
Semco S/A also used the principles of total quality to plan and implement a successful organizational improvement process. The company’s approach was focused on all aspects of quality improvements including customer service, supplier relationship management, problem identification, and promotion of open decision-making process among workers (Evans & Lindsay, 2012). The process led to higher levels of employee commitment and entrenchment of the quality improvement culture. As explained in the case study, adoption of the principles of total quality helped Semco S/A to achieve continuous improvement in processes and effective control of operations. The company also benefitted from long-term commitment and understanding of key supplier relations.
Mercy Health Systems used the fundamental principles of total quality to achieve key competencies in its businesses processes. Aware of the intense competition in the health care industry and the rapidly changing customer needs, the organization embarked on a series of quality and performance improvement initiatives. Through these initiatives, the company was able to achieve its long-term objective of creating and maintaining an integrated health care system (Evans & Lindsay, 2012). The company was also able to involve employees and physicians in promoting the culture of excellence, which led to a more balanced approach to patient-focused care. Today, the company’s integrated delivery system is compatible with different quality improvement standards and supports coordinated transitions between stakeholders and functional units for more efficient patient care.
Cigna Corp also used a similar quality management process as that used by Mercy Health Systems to enhance business process and performance. The former organization premised its quality management initiatives on two important imperatives: improvement of cost advantages and strengthening of key stakeholder relationships. With these imperatives, the company focused on continuous improvement, the involvement of stakeholders in decision-making, ongoing assessment of outcomes and motivation of employees. These initiatives led to a dramatic shift from cost-based systems to value-based models of health care, which gave the company stronger competitive advantages in the industry.

References
Antony, J., Leung, K., Knowles, G., & Gosh, S. (2002). Critical success factors of TQM implementation in Hong Kong industries. International Journal of Quality and Reliability Management, 19(5), 551–566.
Arumugam, V., Chang, H.W., Ooi, K.B., & Teh, P. (2009). Self-assessment of TQM practices: a case analysis. The TQM Journal, 21(1), 46-58.
Dick, G., Gallimore, K., & Brown, J. (2002). Does ISO 9000 accreditation make a profound difference to the way service quality is perceived and measured? Managing Service Quality, 12(1), 30-42.
Evans, J., & Lindsay, W. (2012). Managing for Quality and Performance Excellence, 9th ed. NEW YORK: South-Western College Pub.
Paton, S. M. (2002). Juran: A Lifetime of Quality. Quality Digest, 22(8), 19–23.