Role of Quality in Modern Business

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Role of Quality in Modern Business

IntroductionRole of Quality in Modern Business

Quality has become the most important tool and the shortcut in the modern business market for an organization to survive. The customers are now become more quality conscious and demanding as they have many options for buying their preferred products and services. In all industries the term quality plays a vital role (Goetsch, & Davis, 2014,). In some potential markets like UK and US the customers are not even considered about the price of the product but they expect high quality and standard. Hence maintaining and providing good quality products and services has become very essential. For serving this purpose the management has introduced a separate section for quality termed as quality management. This management system is widely practiced by almost all industries. This system develops a systematic procedure through which the quality for the products can be achieved and through which customer satisfaction and competitive advantage can be achieved (OaklandS, 2014). This Unit 17 Quality Management Toyota Assignment speaks about the relevance of the quality and its management in the modern business organizations. An organization Toyota is taken into consideration for the purpose of the analysis and for highlighting various aspects of quality in business organizations. This report highlights how quality can support the organization like Toyota in achieving the customer satisfaction and competitive advantage.

Task 1

a) Discuss definitions of quality in terms of business and services provision

“According to ISO 8402-1986 the term Quality in business can be defined as the standardized features and characteristics of the particular products and services which can satisfy the target clients”.

As per this definition in business the organizations should develop and provide the products and services which can exhibit standardized characteristics that can make its customer happy. This standardization can develop trust within the customers and can make them more loyal towards the company. Hence quality can obtain and retain many customers which can lead the organization towards a long term success through developing a good brand image and reputation. The organization Toyota the automobile manufacturing company had to face many difficulties like reduction in the production, less profitability, legal actions, loss of company reputation etc as a result of the compromise in the quality. Even though this organization had a good reputation in the market, due to the recall of its automobiles the production as well as the profit was affected (Plsek, 2015).

The term quality can also be defined as “the perception of the customers about the product or service of a particular organization”

This definition highlights the importance of the quality for a business organization in the modern business world. Customer perception is very important while defining the quality of the product. The cost- quality perception of the customer is the appropriate example for this. The customer can be easily perceived for the quality of the product or service through its high price. Through providing high quality products to the customers the business organization can perceive the customers and can generate more income. Once the quality is lost through poor quality, it can generate negative perception and then the customer trust will be lost and they can jump to any other brands which can provide them with satisfaction. In the case of Toyota also the incident of vehicle recall they lost the customer trust and generated a negative perception which resulted in the loss of many loyal customers.

“Quality can also be defined as making the customers satisfied through providing the specifications and requirement specified by the customers”. From the scenario it is evident that the organization Toyota has a forward looking approach and very innovative who manufactures automobiles based on the modern trends and safety measures. Through this it is evident that the organization is following some quality principles which are customer oriented.

b) Explain and illustrate earlier processes of inspection and assurance

During early days the manufacturing and production unit conducts inspections on the performance of the workers and reports are produced based on the inspections. These inspections have contributed in the production of the quality products. At that time inspections were conducted periodically. But now the situations have changed, the business has grown which has resulted in the mass production and this prompted the need for full time quality inspections. The process of quality assurance includes providing assurance to the customers that they will receive quality products. Based on this assurance only the customers purchase the products (Okerekehe, 2014).

The evolution of the quality begins from the year 1950 through the quick adoption of the quality management practices. During this time mass inspections and quality control measures were taken by the management so that less defective parts are manufactured. During the year 1960s the concept of quality assurance came into existence and the manufacturing organization started attracting the customers through providing quality assurance. From the year 1969 the concept of total quality management is adopted by almost all manufacturing organization to ensure the production of quality products and the customer satisfaction.

During the year 1979 the British Standards Institutions has introduced BS5750, which is a quality assurance standard equivalent to the BS EN ISO 9000:2000. The manufactures are required to register with this standard so as to get the quality assurance certification. Another standard which has contributed a lot in the evolution of quality is the Charter mark which is an award provided to the organizations which provides high quality customer service. During the year 2008 this is replaced by the customer service excellence standard. These services and standards have acted as a support for the organizations while providing quality assurances. The regulations of these standards also implements quality control within the organization.

International organization for standardization had introduced a standard ISO 9002 which provides importance to the quality assurance in the production, installation and providing appropriate customer service. This provides the manufactures with a detailed statement and standards for the development and the maintenance of an effective quality management system.

c) Discuss a range of quality management approaches Organizations like Toyota can adopt, clearly highlighting the similarities and differences between the different methods.

According to the organization Toyota, quality is not achieved through inspecting it in the final stage. They believe that quality should be ensured at every stage from the production to the customer service. The organization has established a company wide quality control and each employee has the responsibility of quality assurance. There are many quality management approaches which can contribute to the effectiveness of the quality in such organizations. Some of the quality management approaches which can be adopted by the organization Toyota are mentioned below.

  • W. Edwards Deming: According to him the quality is determined by the system. Customer orientation and continuous improvement can lead to the achievement of the quality. This approach will be appropriate for Toyota as it is more systematic and can provide high degree of quality assurance.
  • Joseph M Juran: He implemented Pareto analysis for quality principles. According to this 80% of the issues are caused because of 20% of the causes. He provides importance to the human relations which are very important for the organizations like Toyota. This approach provides the organizations with the options like quality planning, Quality control and quality improvement (Evans & Lindsay, 2014).
  • Kaoru Ishikawa: This approach supports the organization like Toyota to introduce and implement total quality management which can lead to the success of the organization. This approach of company wide quality control is adopted by Toyota to achieve success.
  • Philip B Crosby: According to this approach the performance of a system or an organization can be termed as effective if it can achieve zero defects. This approach can benefit the organization like Toyota to achieve competitive advantage.

These quality gurus provide a systematic ways through which the organization can ensure quality in their products and services. The Kaoru Ishikawa approach specifies that quality should be checked and ensured in the early stages itself. Hence the problems can be rectified initially itself. These systematic ways can ensure quality control and will enable the organization to provide quality assurance to the clients. Through this total quality management and competitive advantage can be achieved.

Similarities and Differences

QM Approaches Similarities Differences
 

 

W. Edwards Deming

 

  • Statistical process of quality control is recommended in all approaches.

 

  • Quality is determined by the system
  • It focuses on continuous improvement and customer orientation
  • There is no optimum quality costs and its structure includes 14 quality management points
 

 

 

 

Joseph M Juran

 

  • All approaches provide importance to team work to achieve quality.
  • 80% of the quality issues are due to 20% of the causes.
  • It gives importance to human relations
  • Here quality is not considered as free but there are optimum quality costs. Its structure includes 10 steps of quality improvement.
 

 

 

Kaoru Ishikawa

  • All approaches provides quality assurance and quality control options which can gain the organizations competitive advantage
  • Its quality view point is companywide quality control.
  • Has introduced many quality tools like pareto histogram etc..
  • Give importance human aspects on quality.
 

 

 

 

Philip B Crosby

 

  • Quality is determined by the Conformance to the requirement and Zero defect.
  • Focuses on prevention of quality issues
  • Cost of quality is free and its structure includes 14 steps.

 

Course Syllabus