Total Quality Management

Dr Deming held that by adopting appropriate principles of management organizations can increase quality as cost decreases. Total Quality Management (TQM) implementation process as encapsulated in the Deming model or PDSA cycle are therefore: â€Å"plan†, â€Å"do†, â€Å"study (check)† and â€Å"act† (Robinson 45). Advertising We will write a custom essay sample on Total Quality Management specifically for you for only $16.05 $11/page Learn More This is a problem solving process that has been adopted successfully, by many organizations in most leading economies of the world. The model is a means to an end of improving quality of success at the lowest cost possible, while the process itself is continuously applied for continuous improvement in quality management. The ‘plan’ step is where both long-term and short-term objectives are set and evaluated. An existing plan has to be reviewed and improvement planned. The organization situation is kept in mind as its goals, objectives, requirement and vision as well as its mission. In the step ‘do’, the new plan is introduced and taught to concerned stakeholders. There is transformation from the former order to the new order thus reviewing of policies, procedures as well as the organizational structures, is indispensable. One needs to be careful enough for effective and successful adoption of the plan. Then this leads to the ‘study’ step where the new situation is checked, scrutinized, evaluated and analyzed. Any need for re-organization and improvement is noted in order to be addressed in the next step. In the ‘act’ step issues that arose in execution stage are addressed. The main aim is to maintain or improve the newly executed plan. Improvement is a continuous process and one has to keep on refining the plan to end up with a continuous improvement process. Total quality management implementation within a heal thcare organization should be an open-ended scheme. Deming model can be effectively applied to save time, life, and foster patient’s confidence and loyalty at the least effort and cost possible. In the case of a healthcare organization, you start by evaluating an existing plan that a patient follows from the emergency room to the admission ward. The process conventionally involves reception and enquiry where possible, registration, treatment or first aid and admission. Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The shorter and effective the process is, the better. While all the components of the process are important, the stakeholders are supposed to carry it as a system. The plan for improvement is made on the personnel at each stage while incorporating time saving mechanisms. The new plan should be based on observation, interviews and information from the former plan. In the ‘do’ step the new plan is applied. The new plan is studied in practical real situation then those involved are trained so that they incorporate it in their daily routine. Deming model implementation is anchored in the fact that experience increases with effectiveness. So decline in performance is expected in the initial stages of implementation. Afterwards, as the staff gets used to the new plan, performance will improve. In the ‘study’ stage, the new situation is checked to determine whether improvements can be done to maximize the effectiveness of the plan. This will include incorporating some stages or doing away with others. This leads to the ‘Act’ stage where all issues needing improvement are addressed. Most challenges arising in execution stage will be addressed in a bid to decide whether to maintain the newly executed plan as it is or improve it further. The end of the process in many cases poses many formative anomalies so that re- v isiting the whole cycle is inevitable. The process must at least: reduce time and space, provide quality services, foster patients’ loyalty and confidence and motivate staff. Deming based PDSA model on the belief that Knowledge and skills are limited but are always in a state of becoming or making (Robinson 48). His model therefore is a cyclic search of effectiveness and improvement. If a patient from an accident were brought, the plan’s process used in receiving, treating or administering the first aid procedures as per his or her and then admit the patient. In the process all difficulties will be noted, new effective steps incorporated and others abandoned. Advertising We will write a custom essay sample on Total Quality Management specifically for you for only $16.05 $11/page Learn More The plan will be flexible enough to cater for special needs or apply differently to patients with regard to severity of the case. Finally the process ev aluation with the stakeholders (Healthcare providers) and the patients will be done to find out whether changes can be made. The key to total quality management in this case would be to achieve a â€Å"continual improvement† that sees a health care provision not as separate steps but as a system as Dr. Deming envisioned (Robinson 48). Work Cited Robinson, Paula. â€Å"Master the steps to performance improvement.† Nursing Management 35.5 (2004): 45-48. Print. This essay on Total Quality Management was written and submitted by user Adrianna Jimenez to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Total Quality Management The paper attempts to describe the components of supply chain that has been applied in Wal-Mart and identifies problems with each component. The paper further discusses the importance of quality management in a global context and provides information on global operations system for Wal-Mart.Advertising We will write a custom essay sample on Total Quality Management specifically for you for only $16.05 $11/page Learn More Background Wal-Mart is an American based retail chain department stores which offer huge discounts to their customers. It has been ranked as the largest retailer and is listed as the third biggest public corporation in the world. The company operates different part of Europe and North America, and employs over two million employees in its company. The company has over 8,500 retail chains and operating with different names in different companies. The company is headquartered in Bentonville, Arkansas (Roberts Berg, 2012). Components of su pply chain Radio Frequency Identification Technology (RFID) This technology is a wireless based tag which is used for the purpose of automation and tracking a consignment. Wal-Mart has been a frequent user of new technologies and forces its supplier to do the same which supersedes the bar code technology. Due to current RFID technology, Wal-Mart could be able to follow the inventory from its release by suppliers until a customer purchases the product (Leeman, 2010). Problems An increase in burden and extra cost for supplier to use particular technology as it works as retrofit to their inventory. However, there is no confirmation that Wal-Mart will make future deals with the particular supplier. Therefore, suppliers are hesitant to fulfill company’s requirements (Roberts Berg, 2012). Solution Wal-Mart has made contracts with suppliers and has shared the cost for the new technology adopted by these suppliers to enhance better relationship. Inventory Management Wal-Mart has an aim to reduce its inventory which can help the company in many ways by lowering its total cost. The total costs include carrying cost, handling cost, and excess inventory cost. The company also aims to increase accounts payable and to decrease its operating expenses (Wisner, 2012). Problems The problems that can be faced by the company regarding particular strategy is stock out inventory. This also increases cost for suppliers because they often do not get paid on time.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Solution The company applies RDIF system which notifies both the company and the supplier about the inventory in company’s stocks or if purchased by customer. Therefore, if the company is nearing an end of its inventory the signal is reached to its supplier (Wisner, 2012). Supplier Collaboration Wal-Mart tends to improve relations with supplier by sharing certain informa tion and offering them advice about their products. Even though the suppliers have low bargaining power against Wal-Mart but the company aims to achieve higher mutual collaboration for long term relationship (Wisner, 2012). Problem The problem arises when certain suppliers are not able to meet the standards that are set by Wal-Mart which forces them huge inventory losses. The reason that Wal-Mart had to quit competing in Germany is because suppliers were not reducing their cost for a product and were not providing concessions (Wisner, 2012). Solution The company now has set different standards in different countries according to their capabilities so that Wal-Mart does not enforce too much burden on suppliers. Logistics and Distribution The company establishes a distribution center in a country when it targets to set its base (Sadler Craig, 1993). The company’s growth is then monitored through these distribution centers. The aim of stores is to support these centers to make enough profits to sustain in the preferred environment (Wisner, 2012). Problem The only one problem associated with the current strategy is that Wal-Mart focuses on managing its inventory based on its distribution centers instead of consumers demand. Therefore, if consumer demand lowers the required inventory that has been stocked in Distribution center then it will increase the inventory of Wal-Mart (Wisner, 2012). Solution A regular survey is being conducted to measure the consumer demand annually so that the company has a fair idea about managing its inventory (Leeman, 2010).Advertising We will write a custom essay sample on Total Quality Management specifically for you for only $16.05 $11/page Learn More Outsourcing The suppliers that are being collaborating with Wal-Mart outsource their manufacturing from the third world country to reduce their cost. The cheap labors of under developed countries are being exploited by these suppliers, which benefit s them in lower manufacturing cost and higher profits (Roberts Berg, 2012). Problems This type of outsourcing can create human rights problem for suppliers, which in turn can greatly impact the goodwill of Wal-Mart as well because they are collaborating with these suppliers (Wisner, 2012). Solutions Wal-Mart has made contracts with suppliers for their ethical behavior in subcontinent and other areas where cheap labor exists. Wal-Mart has the right to cancel contracts if any supplier is found to have exploited human rights norms (Roberts Berg, 2012). Importance of quality management globally In the 21st century, the customer advocacy has been set as a higher priority for multinational organizations to remain in the competition. Therefore, companies have to constantly come up with a product that satisfies the needs of customers and that can lead them to repurchase their items and avail their services (Hill Jones, 2012). Companies make higher standards for their product because a cu stomer can purchase the product from a different country and it has to be of the same quality as in another country. The concept of total quality management reduces the chances of defects and errors within the company which then provides less reason for customers to blame the company about its product or services. It is necessary for a company that operates globally to maintain their standards through their operations around the world (Leeman, 2010). Currently, Wal-Mart has managed to build a best enterprise resource planning system and it tries to make enhance in its current ERP system to make it more efficient. The system has made better collaborations with suppliers and has enforced in reducing the cost, increasing its profits and satisfying customers to greater extent by providing them huge discounts. Wal-Mart also applies the Lean manufacturing model which helps a company in reducing its waste and to utilize the space efficiently. The space utilization is an effective part for retailers because they use to sell their space to companies in displaying their product (Leeman, 2010).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The major concerns that need to be addressed are the bargaining power of suppliers which has been reduced to a greater extent since Wal-Mart has risen with power. Wal-Mart dictates the price for their products and offers its own profit margin ratio which leaves the supplier with less profit to earn and more cost to invest. The other concerned area is the enforcement of Wal-Mart to their suppliers in becoming efficient with their technology and maintain standards in order to meet requirements of Wal-Mart. This has raised concerns for many suppliers across countries that do not tend to display their products at Wal-Mart (Wisner, 2012). Reference List Hill, C. W., Jones, G. R. (2012). Strategic Management Theory: An Integrated Approach. Mason, OH: Cengage Learning. Leeman, J. (2010). Supply Chain Management. Dusseldorf: BoD – Books on Demand. Roberts, B., Berg, N. (2012). Walmart: Key Insights and Practical Lessons from the World’s Largest Retailer. New York: Kogan Page Publishers. Sadler, P., Craig, J. C. (1993). Strategic Management. London: Kogan Page Publishers. Wisner, J. (2012). Principles of Supply Chain Management: A Balanced Approach. Mason: Cengage Learning This essay on Total Quality Management was written and submitted by user Harmony Day to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Total Quality Management Total Quality Management