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Name: Le Ngoc Tuong Vi (Vicky)
Class: SUD 10
I. Continuous improvement and the type of added values to begained
A continual improvement process, also often called a continuous improvement process
(abbreviated as CIP or CI), is an ongoing effort to improve products, services, or processes.
These efforts can seek "incremental" improvement over time or "breakthrough" improvement all
at once.1
Quality based organization should strive to achieve perfection by continuously improving the
business and production process. And this improving is possible if Portakabin management
learns from the problems and identifies the opportunity from the problem. The process of
improvement achieves the greatest result when it operates with in the frame work of the problem
solving method.
It means that continuous improvement is the complete process of identifying, describing, and
analyzing strengths and problems and then testing, implementing, learning from, and revising
solutions. It relies on an organizational and system culture that is proactive and supports
continuous learning.An essential part of improving quality is to identify problems as and when
they occur. These can then be addressed and resolved immediately. This is what Portakabin
mean by zero tolerance to address any issues.
In the initial stages of Portakabin, quick results a frequently obtained because the solutions are
obvious or an individual has a brilliant idea. However in the long term a systematic approach
will yield the greatest benefits. There are the following phases in problem solving:
Identify the Opportunity. The objective of this phase is to identify and prioritize opportunities for
improvements. It consist of three parts: identify the problem, form the team and define the scope.
With zero tolerance, Portakabin deploys a 'commando team' as part of its Quality Team to
address any issues. This team scrutinizes products and processes from the customer's viewpoint.
1http://en.wikipedia.org/wiki/Continual_improvement_process
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Analyze the current Process. The objective of this phase is to understand the process and how it
is currently performed. Key activities are to define process boundaries, outputs and customers,
inputs and supplies, and process flow; gather data: and identify root causes. Throught zero
tolerance program, Portakabin has good result such as the company can management risks,
solve problem before it become the big problem and make customer more and more satisfaction.
For example, on one occasion the quality team found blistering on the walls of a particular
building.
Develop the optimal Solution: this phase has the objective of establishing and feasible solutions
and recommending the best solution to improve the process. Once all the information is available
the project team begins its search for possible solutions. When the quality team found blistering
on the walls of a particular building, the leader of the quality team collect the information about
this problem. After that, he listen and collect many ideas of his team member and decide the
solution. The solution is that a quick 'alert' to the manufacturing team led to the fault being
eliminated before it became a problem for the customer.
Implement the changes: Once the best solution is selected, it can be implemented this phase has
the objective of preparing the implementation plan, obtaining approval, and implementing the
process of improvement.
Study the result: This phase has the objective of monitoring and evaluating the change by
tracking and studying the effectiveness of the improvement efforts through data through data
collection and review of progress. It is in institutionalize meaningful change and ensure ongoing
measurement and evaluation effort to achieve continues improvement. After this problem, leader
of qualityteams complete quality reports with the purpose of:
Fixing the immediate problem;
Identifying its cause;
Making changes to prevent the problem reoccurring.
Standardize the solution: Once the team is satisfied with change it must be institutionalized by
positive control of the process, process certification, and operator certification. Positive change
assures that important variables are kept under control. It specifies the what, who, how, where
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and when of the process and is an updating of the monitoring activity. Standardizing the solution
prevents backsliding.
Other example of the type of added values to be gained is Portakabin continuous improvement
customer service. Providing customer service is another vital part of Quality Management. The
company believes that providing exceptional levels of customer service is as important as the
quality of the products it makes. To support this commitment, it has developed a number of
initiatives aimed at continuously improving service. Portakabin:
Guarantees to complete projects on time and on budget;
Operates a Customer Charter that sets out minimum standards that customers of its Hire
Division can expect to receive. This charter includes the pledge where Portakabin will
recompense the customer if it fails to deliver a building on time;
Offers a complete plan, design and build service, whereby a client can choose simply to
accept the keys and open the doors on completion;
Runs a comprehensive customer satisfaction survey every month.
II. Measured quality managementISO is the International organization for standardization. It is the largest developer and publisher
of international standards operating with a framework of 162 countries co-ordinated by a central
secretariat in Geneva, Switzerland.
Portakabin is approved to meet the International Standards ISO 9001 and ISO14001. In order to
gain these awards, the company must prove their achievements to International Standards
Organizations. Being accredited to International Standards tells customers that an organization
meets the tough guidelines set by awarding bodies.
The ISO9000 family focuses on what the organization does to fulfill the customers quality
requirements and applicable regulatory requirements while aiming to enhance customer
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satisfaction and achieve continual improvement of its performance in pursuit of these
objectives.2
ISO 9001 is the only standard in the family against which organizations can be certified. It is
based on eight principles from total quality management (TQM):
1. Customer Focus Understanding needs, meeting requirements and exceeding
expectations
2. LeadershipEstablish unity of purpose and organizational direction. Promote employee
involvement in achievement of objectives.
3. Involvement of People Take advantage of fully involved employees, utilise all their
abilities to the organizations advantage.
4. Process ApproachThings accomplished are a result of processes. Processes along with
related activities and resources must be managed.
5. System Approach to Management Multiple interrelated processes that contribute to an
organizations effectiveness are a system and should be managed as a system
6. Continual Improvement Should be a permanent objective applied to the organization
and to its people, processes, systems and products.
7. Factual Approach to Decision Making Decisions must be based on the analysis of
accurate, relevant and reliable data and information.
8. Mutually Beneficial Supplier Relationships Both organization and Supplier benefiting
from each others resources and knowledge result in value for all.
The relationship between TQM and ISO 9000 is that they work in conjunction with each other
but are not the same. The main point of difference being that TQM is concerned with
transforming every function and level of the organization from top to bottom to adopt and ISO
9000 is more specific being concentrated on quality management systems alone. ISO 9001 can
2http://www.iso.org/iso/iso_9000
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be part of a larger total quality management environment but it can also be implemented on its
own in organizations that have not adopted TQM.
Being registered as meeting the requirements of ISO 9001 is very important to Portakabin. This
is because many customers will deal only with organizations that can demonstrate they meet this
rigorous standard. All of Portakabin's products meet with modern standards and requirements,
and this enhances consumer confidence.
To reinforce this quality system, Portakabin has a 'zero tolerance' quality checking system in
place, so that no building may leave the production site until it has been checked against, and
complies with, demanding customer standards. Furthermore, because of their high quality
standards, Portakabin are the only modular building company to offer quality guarantees in the
form of 5 and 20 year warranties.
The standards required are wide ranging. For example, the recently ratified Kyoto Protocol
requires industrialised nations to limit their production of gases that are harmful to the
environment. Portakabin takes this requirement very seriously. As a result, all of its buildings are
thermally efficient to minimize energy use. Following Kyoto there are a range of new building
requirements and these are particularly important for Portakabin's public sector customers such
as hospitals and schools.
Portakabin's factory-based production process combines standardization with customization. The
modules to be assembled come in standardised sizes and shapes. However, the way they are put
together and their interior design depends on clients' individual specifications. For example,
modules that are assembled for Sainsbury's to train new checkout staff are different from those
designed for an easy Jet office. To ensure that all customers get what they want, Portakabin
deploys the Quality Systems approach referred to earlier. A Corporate Quality Team (comprising
senior managers) is responsible for ensuring that individual teams understand quality processes.
Communication takes place by means of process charts. These are clear illustrations that set out
the processes involved e.g. in creating a new set of school classrooms or laboratories.
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Meeting ISO 9001 shows that Portakabin has a Quality Management System which among other
things ensures that:
Portakabin has a documented set of procedures for all key processes in the business andthat these processes are checked for efficiency.
The group's Quality Systems Manager (QSM) is responsible for ensuring that Portakabin
has in place systems that guarantee quality throughout the Group. The QSM has created
an electronic system that all PCs throughout the whole company can access to manage
quality. One of the system's key features is the 1-page Quality Manual that defines the
requirements of the Quality Management System. This is easy to communicate both
within the organization and also to customers.
Portakabin outputs are checked for defects and put right where necessary.The company also offers key services such as Total Solutions - a planning and project
management service for customers wanting to hire modular buildings. Portakabin also
offers a wide range of support services to clients for whom a modular building is part of a
larger plan. If requested, Portakabin will take on the customer's project from start to
finish. This includes managing planning applications, project management and providing
health and safety advice, as well as providing access for the disabled.
ISO 14000 is worth mentioning as it is concerned with Environmental Management. Its aims
are to minimize harmful effects on the environment caused by its activities, and to achieve
continual improvement of its environmental performance.3
Meeting ISO 14001 shows that Portakabin also has a well-organized environmental management
system. An environmental management system helps an organization to reduce its impact on the
environment and minimize pollution.
The emphasis on quality can be illustrated by the Portakabin Lilliput products. Lilliput
Childrens Centres are designed to be child-focused.4They meet the tough safety and care
standards that have been created to protect children:
3http://en.wikipedia.org/wiki/ISO_14000
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The Childrens Centres provide a resource for the whole community. They can be built in half the time it takes to build using traditional methods. Multi-functional rooms can be used as kitchens, crche facilities, and training rooms as
well as nurseries.
This contrasts with the much slower process of traditional building with bricks and mortar. These
buildings take far longer to construct and building work may be delayed, for example, by poor
weather.
4http://www.portakabin.co.uk/lilliput.html