IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT

IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT

INTRODUCTION

An ongoing process to detect and eliminate or reduce errors is called total quality management (TQM). A strong emphasis is placed by TQM on enhancing quality within a process (Pambreni et al. 2019). As a manager of BHP, the total quality management-related challenges faced by the company will be discussed in the report. The concept of total quality management will also be described. The changes in the business after TQM implementation will be discussed in the report. The 20-step implementation process will be explained in the last part of the report.

BHP is metals, mining, and petroleum dual-listed public company. In the mining town of Silverton, the Broken Hill Proprietary company was founded in 1885. Through the merge of Anglo-Dutch Billiton plc and the Broken Hill Proprietary Company Limited, BHP was formed in 2001. The company is headquartered in Melbourne, Australia. Based on market capitalization, the company was the world's largest mining company by 2017. The company has petroleum operations in the UK, the US, Algeria, Trinidad and Tobago, and Australia and mining operations in South America, Australia, and North America.

TOTAL QUALITY MANAGEMENT CHALLENGES FACED BY BHP

Some of the challenges faced by BHP in total quality management are:

• Resistance to technological innovation- For enhancing quality, adoption and creation of new technologies are very important (Hamid et al. 2019). Endless technological innovations implications are required at BHP which leads to radical changes in processes, systems, the requirement of machinery, and skill set. Barriers and challenges are created for effective quality management at BHP due to resistance to these changes (Brand, 2021).

• The unwillingness of upper management to provide additional time and resources- The concern of the manager is generally on daily operations rather than quality management, even though the importance of quality management is recognized by them. They opposed that time is taken for fixing flaws and errors. The urgency of allocating the resources is not seen by the upper management which is needed for optimum quality (Brand, 2021).

• Increasing supply chain complexity- Globalization has been a curse and a blessing for BHP company as the expansion can be done by the company production cost is low and exist greater supply of qualified workers and raw materials (Hamid et al. 2019). But another problem i.e., supply chain issues have been created due to expanding into different regions. All things which include partially finished materials, raw material flow and storage, the finished products, and related information should be moved from point A to point B. A higher level of expertise and oversight is required for the logistics to get these things from the origin place to the customer (Brand, 2021).

• The culture to manage by departments- It is very difficult to break the existing culture of the company that was made over the years. Quality management is regarded as the duty of the department that is tasked with applying it, such as the quality assurance department or quality control department. All the aspects of the organization should be including in the total quality management as it can’t work in a silo (Brand, 2021).

TQM PROPOSAL FOR BHP

Total quality management leads to a positive impact on the development of the employees at BHP and the organization. Cultural values that generate long-term success to both the organization itself and customers can be maintained and established by the BHP by having all staff's emphasis on continuous enhancement and quality management (Aquilani et al. 2017). The focus of TQM is on quality and skills deficiencies in staff can also be identified by the senior managers at BHP. For addressing those deficiencies, required mentoring, education, or training is also identified. Cross-functional teams can be created at the company as TQM focuses on teamwork which will lead to knowledge sharing. More flexibility is given to BHP in deploying personnel due to increased coordination and communication across dissimilar groups (Ismyrlis, 2017). Competitive advantage is gained by an organization through implementing TQM which leads to a positive effect on the performance of the organization in terms of profitability, quality, the satisfaction of customers, and productivity. All functions and levels of an organization are involved in frequently meeting and exceeding the expectations of customers through TQM. Involvement of employees in TQM leads to increased productivity and quality and also management friction is reduced as more effective communication and cooperation is encouraged (Singh et al. 2018).

KEY CONCEPT OF TOTAL QUALITY MANAGEMENT

An integrated approach to the quality of the product is total quality management. It deals with the entire production process and for enhancing the culture, processes, services, and products, organization members participate in a TQM effort (Pambreni et al. 2019). Total quality management leads to higher productivity and profitability. TQM also helps in the elimination of waste and defects which leads to better cost management and reduced costs. The key elements of TQM include a customer-focused approach, process-centered, involves all employees, integrated system, focuses on continual enhancement, and fact-based decision making (Alghamdi, 2018).

VISIBLE CHANGES IN THE BUSINESS AFTER THE IMPLEMENTATION OF TQM

The operations of a business are enhanced through total quality management. The process occurring in the BHP is prevented through the TQM process. In 4 phases, the cycle of TQM is divided which include the planning stage, the doing stage, the checking stage, and the acting stage. This is known as the 'PDCA Cycle' or 'Deming Cycle'. The visible changes at BHP after the implementation of TQM include:

• Increased profitability and cost reduction- The total quality costs are reduced after the implementation of TQM at BHP as defective services/products are prevented through TQM. Thus, the profitability seems to be increased (Alghamdi, 2018).

• Reduces redundant activities- Unessential tasks and resource waste are reduced through implementing TQM which also brings in effectiveness (Gupta and Arora, 2018).

• Enables productivity- There is increased productivity due to cost reduction. Maximum output with optimum resource consumption is there at BHP. Thus, productivity is enhanced due to competent employees, the superior quality of infrastructure and resources, and high-end technology (Anil and Satish, 2019).

• Customer satisfaction- fewer customer complaints always exist along with error-free interactions with customers and better services and products. Less use of resources is signified through TQM implementation and leads to increased satisfaction of customers. As the present customers of the company act as the representatives for attracting new customers, the market share of BHP also increases (Anil and Satish, 2019).

• Employee morale and effective communication- The implementation of total quality management leads to a noticeable enhancement in the morale of employees due to which employee turnover is also reduced. The cost to train and hire new employees at BHP is reduced. Effective communication is also facilitated through TQM implementation which leads to proper understanding, no wastage of efforts and time, and higher productivity (Alghamdi, 2018).

• Promotes continual enhancement- Implementation of total quality management at BHP leads to continual enhancement for the long-term success of the company.

• Commitment, cooperation, participation, and continuous enhancement within the company is promoted through total quality management. Every employee working at BHP is made responsible to meet external and internal expectations of customers. Effectiveness is achieved by the company as a dynamic approach for quality enhancement is encouraged. For adapting to constant changes and enhancing the effectiveness, TQM is used by the company which also leads to increased competitiveness (Alghamdi, 2018).

20-STEP IMPLEMENTATION PROCESS

Certain steps are required for every implementation which must be taken in a logical order. There are three phases through which the TQM initiative can be implemented in BHP which include preparation, planning, and execution. For BHP, the preparation phase is essential, and in the appropriate order, the steps are listed. The company can enter the planning phase, with the critical information developed and skills honed in the preparation phase (Dubey and Kumar, 2017). The next is the execution phase where total quality is fully implemented by the company.

Figure 1- 20-step implementation process

Source- (Goetsch and Davis, 2013)

The Preparation Phase

Steps 1 to 11 are included in this phase which should be carried out by the BHP company in sequence (Permana et al. 2021).

Step 1- Commitment to Total Quality

The commitment of resources and time should be made by the top executive at BHP. The company cannot move to the next step without committing (Goetsch and Davis, 2013).

Step 2- Total Quality Steering Committee formation

The top executive of BHP must form a steering committee in which staff is designated to be the committee. A member of the committee should senior union official if a union is involved. The steering committee formed will be permanent and the former executive staff organization will be replaced (Goetsch and Davis, 2013).

Step 3- Steering Group Team Building

Before starting any total quality work, a team-building session is a must for the steering committee at BHP in which an outside consultant is usually required. Usually, 1-3 days are required for this.

Step 4- Total Quality Training for Steering Committee

Before starting any total quality work at BHP, training will be required by the steering committee in total quality philosophy, tools, and techniques. An outside consultant is usually required for the training. For intensive training 2 or 3 days are required (Goetsch and Davis, 2013).

Step 5- Guiding Principles’ and Vision Statement Creation

The vision statement for the BHP should be created through the first total quality work effort and the guiding principles should be put on paper under which BHP is operating. The discussion should be initiated by the top executive at BHP by using "strawman" principles and vision.

Step 6- Broad (Strategic) Objectives Establishment

The vision statement is flowed by the steering committee into a set broad objective of the company. Broad or strategic objectives should be made by the company through which a set of supporting tactical objectives are also made. At least a full week is required for this. For doing this step, a proper time should be taken by BHP with deliberation and consideration (Goetsch and Davis, 2013).

Step 7- Publicity and Communication

Information should be communicated by the steering committee and top executive at BHP about steps 2 to 4. A communication blitz should be there at this point. The vision, the objectives, total quality, and the guiding principles of the BHP should be known to everyone in the organization (Goetsch and Davis, 2013).

Step 8- Organization’s Strengths and Weaknesses Identification

The weaknesses and strengths of the BHP must be objectively identified by the steering committee. Deficiencies might be highlighted through this information that can be corrected.

Step 9- Resisters’ and Advocates’ Identification

Those in key slots who are likely to struggle with total quality and those who are likely to be total quality supporters should be identified by the steering committee through which team members and project can be selected. No more than an hour or two is required if the assessments are prepared by the members independently before the meeting (Goetsch and Davis, 2013).

Step 10- Baseline Employee Attitudes/Satisfaction

The current state of employee attitudes and satisfaction should be gauged by the steering committee with the help of an outside consultant or the human resource department at BHP. Although to determine this information, there are sophisticated devices.

Step 11- Baseline Customer Satisfaction

For determining the satisfaction level of customers, objective feedback from customers should be obtained by the steering committee at BHP. The effectiveness of total quality efforts of BHP seen by the customers can be judge through this information (Goetsch and Davis, 2013).

The Planning Phase

Steps 12 to 15 are included in this phase which should be carried out by BHP company in sequence.

Step 12- The Implementation Approach Planning – and Plan-Do-Check-Adjust (PDCA Cycle) to be used

The planning to implement total quality should be started by the steering committee at BHP. This is a continuous step as for accommodating course adjustment, correction, and so on info will be fed back after initial projects are underway. This step efficiently shifts to function within the PDCA cycle, once total quality is in motion (Goetsch and Davis, 2013).

Step 13- Project’s Identification

Based on the objectives and vision of the BHP company, strengths and weaknesses, the success probability, and the involved personalities, the initial total quality projects should be selected by the steering committee. For projects, the committee should be open to ideas from all sources.

Step 14- Team Composition Establishment

The composition of the teams should be established by the steering committee at BHP after the selection of projects. Mostly there will be cross-functional teams that will have representation from mu7ltiple disciplines or departments (Goetsch and Davis, 2013).

Step 15- Providing Team Training

A new team should be trained before going to work. Basics of total quality and tools should be covered in training appropriate to the project. Steering committee members might do training. Until all employees are experienced and trained, the training need will continue as new teams are formed (Goetsch and Davis, 2013).

The Execution Phase

Steps 16 to 20 are included in this phase which should be carried out by BHP company in sequence.

Step 16- Team Direction and Activation (PDCA Cycle use)

Activates and direction should be given to each at BHP by the steering committee. On the assigned projects, teams work and the total quality techniques should be used which are learned. As their total quality process model, the plan-do-check-adjust cycle should be used by them (Goetsch and Davis, 2013).

Step 17- Team Feedback Loop to the Steering Committee

The loop is closed by the project team by providing feedback info on results and progress. In the presentation form, the feedback exists. Monthly feedback is appropriate as the projects get stabilized and on track. For determining if the changes in direction are required, this feedback should be used by the steering committee. The PDCA cycle should be used by both the steering committee and the team (Goetsch and Davis, 2013).

Step 18- Customer Satisfaction Feedback Ring

For obtaining information about customer feedback, special project teams should be deployed and both internal and external customers should be covered. The company should annually conduct formal external customer surveys and continually, other customer satisfaction data should be processed and collected.

Step 19- Worker Satisfaction Feedback Loop

The pulse of employee satisfaction and attitude should be taken periodically by another special project team at BHP. For developing accurate information on satisfaction and attitude, other managers and the steering committee at BHP should stay close to the employees (Goetsch and Davis, 2013).

Step 20- Infrastructure Modification as Necessary

The necessary changes in the corporate infrastructure can be addressed by the steering committee through the feedback from steps 17, 18, and 19. The steering committee itself needs to made changes. This goes on forever as it is a continual enhancement (Goetsch and Davis, 2013).

CONCLUSION

Thus, it can be concluded that total quality management is very important as it helps in enhancing quality competitiveness. Customer satisfaction is enhanced through TQM. TQM leads to a positive impact on operating procedures, service quality, productivity, process, and employee relations. The total quality management-related challenges faced by the company were discussed in the report. The concept of total quality management was also described. The changes in the business after TQM implementation was discussed in the report. The 20-step implementation process was explained in the last part of the report.

REFERENCES

Alghamdi, F. (2018). Total quality management and organizational performance: A possible role of organizational culture. International Journal of Business Administration, 9(4), pp.186-200.

Anil, A.P. & Satish, K.P. (2019). Enhancing customer satisfaction through total quality management practices–an empirical examination. Total Quality Management & Business Excellence, 30(13-14), pp.1528-1548.

Anil, A.P. & Satish, K.P. (2019). TQM practices and its performance effects–an integrated model. International Journal of Quality & Reliability Management.

Aquilani, B., Silvestri, C., Ruggieri, A. & Gatti, C. (2017). A systematic literature review on total quality management critical success factors and the identification of new avenues of research. The TQM Journal.

Brand, S. (2021). The 4 Quality Management Issues on Every Manufacturer's Mind (online available at https://www.cmtc.com/blog/the-4-quality-management-issues-on-every-manufacturers-mind) (Last accessed on February 9, 2021)

Dubey, S.S. & Kumar, A. (2017). Literature review on implementation of total quality management. International research journal of engineering and technology.

Goetsch, D. & Davis, S. (2013). Quality Management for Organizational Excellence Pearson New International Edition : Introduction to Total Quality (online available at https://ebookcentral.proquest.com/lib/cqu/reader.action?docID=5175516&ppg=440) (Last accessed on February 9, 2021)

Gupta, S. & Arora, N. (2018). Implementation of Total Quality Management: Parameters for Success. Mehr Chand Mahajan DAV College for Women, p.18.

Hamid, S.R., Isa, S., Chew, B.C. & Altun, A. (2019). Quality management evolution from the past to present: Challenges for tomorrow. Organizacija, 52(3), pp.157-186.

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Pambreni, Y., Khatibi, A., Azam, S. & Tham, J. (2019). The influence of total quality management toward organization performance. Management Science Letters, 9(9), pp.1397-1406.

Permana, A., Purba, H.H. & Rizkiyah, N.D. (2021). A systematic literature review of Total Quality Management (TQM) implementation in the organization. International Journal of Production Management and Engineering, 9(1), pp.25-36.

Singh, V., Kumar, A. & Singh, T. (2018). Impact of TQM on organisational performance: The case of Indian manufacturing and service industry. Operations Research Perspectives, 5, pp.199-217.