Управление качеством в международных корпорациях. Практикум на английском языке

Practical training

the degree to which the needs of the customers are met, now and in the future. TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach focused on continuous improvement.

The purpose of practice – to learn the basic principles of quality management.

TQM is a way of thinking about goals, organizations, processes and people to ensure that the right things are done right first time. This thought process can change attitudes, behavior and hence results for the better.

TQM is not a system, a tool or even a process. Systems, tools and processes are employed to achieve the various principles of TQM.

The total in TQM applies to the whole organization. Therefore, unlike an ISO 9000 initiative which may be limited to the processes producing deliverable products, TQM applies to every activity in the organization.Also, unlike ISO 9000, TQM covers the soft issues such as ethics, attitude and culture.

There are several ways of expressing this philosophy. There are also several gurus whose influence on management thought in this area has been considerable, for example Deming, Juran, Crosby, Feigenbaum, Ishikawa and Imei. The wisdom of these gurus has been distilled into eight principles defined in ISO 9000:2000.

There are eight principles of quality management:

–customer-focused organization – organizations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations;

–leadership – leaders establish unity of purpose, direction and the internal environment of the organization. They create the environment in which people can become fully involved in achieving the organization’s objectives;

–involvement of people – people at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization’s benefit;

–process approach – a desired result is achieved more efficiently when related resources and activities are managed as a process;

–system approach to management – identifying, understanding and managing a system of interrelated processes for a given objective contributes to the effectiveness and efficiency of the organization;

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–continual improvement – continual improvement is a permanent objective of an organization;

–factual approach to decision making – effective decisions are based on the logical and intuitive analysis of data and information;

–mutually beneficial supplier relationships – mutually beneficial relationships between the organization and its suppliers enhance the ability of both organizations to create value.

Adopting the TQM philosophy will:

–make an organization more competitive;

–establish a new culture which will enable growth and longevity;

–provide a working environment in which everyone can succeed;

–reduce stress, waste and friction;

–build teams, partnerships and co-operation.

TQM can be adopted at any time after executive management has seen the error of its ways, opened its mind and embraced the philosophy. It cannot be attempted if management perceives it as a quick fix, or a tool to improve worker performance.

Case: TQM and Ford Motor Company

Ford Motor Company total quality management or TQM practices started in the 1980s when «Quality Is Job 1»was their slogan. How did TQM work at Ford and are they still standing behind this process? Jean Scheid, a Ford Dealer talks with Ford management along with some insights of her own.

Today at Ford Motor Company, their most popular slogan is «Ford Has a Better Idea». Back in the 1980s when Ford Motor Company total quality management practices were vast, the slogan of «Quality Is Job 1» made more sense.

In a conversation with Dan Dobbs, a Six Sigma Master Black Belt at Ford, it was noted that TQM may have worked in the 1980s, but Six Sigma is the project management methodology of choice these days.

When TQM, a process improvement methodology based on a customer satisfaction quality-driven process with guidelines set by management was first utilized, it started through a joint venture.

Through a partnership with ChemFil, a division of PPG Industries, Ford wanted to produce better quality products, a stable work environment for the workforce, effective management, and profitability; all by the 1990s, «Quality is Job 1» became «Quality People, Quality Products».

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Practical training

Through this partnership with paint supplier ChemFil, paint process were developed to ensure that a “quality product that meets customer’s needs translates into financial success,” according to an insider press release obtained from the Ford Media Room. TQM was forefront in their painting design as the process of preparation (based on customer quality standards) was implemented by ChemFil with Ford management and workers informed of all steps needed to follow the application of paint to a quality outcome.

Gone were the days of guessing, and TQM meant processes at all levels of production were strictly followed, constantly developed upon, and improved mostly through customer quality satisfaction surveys.

In 1999, Terry Chenault joined Ford, a risk management specialist who along with Phong Vu, helped to further the TQM methodology through a Consumer Driven Six Sigma Process. Says Dan Dobbs today of TQM and Ford, “It may have been newsworthy in the 1980s but Ford Motor Company Total Quality Management practices really began with Henry Ford.”

That’s true if you look at Toyota’s 5S Best Practices in the production of their vehicles, a methodology decided upon after visiting Henry Ford’s assembly lines. While TQM at the Ford assembly lines looked good to Toyota, they found too much waste and went on to develop their own quality process or 5S.

According to Dan Dobbs, the Six Sigma Master Black Belt who runs Six Sigma practices at Ford, Waste and lack of quality on many levels. This is true especially when you look at the far superior Ford Warranty claim system. As of 2008, the warranty repair rate for Ford by utilizing Six Sigma decreased by 60%.

Ford Chief Engineer Art Hyde takes the now implemented Six Sigma a step further saying, «The design and engineering analysis process makes it possible for problems, that previously may not have surfaced until (product) launch, to be caught and corrected in the virtual world through the DMAIC process».

The DMAIC process, or define, measure, analyze, improve, and control has «built an overall strategy for consistency in our teams», continues Hyde.

Of their Six Sigma implementation for 2010 product launches, Dobbs told, «The Company’s Quality Operating System or (QOS) is crucialforidentifyingandcorrectingproblemswithinthemanufacturing facilities». He goes on to say, «Six Sigma and QOS implemented in each plant include cross-functional groups of engineers, plant

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management, and production specialists – all skilled problem solvers who’ve been trained through Six Sigma».

Ford seems to be sticking with Six Sigma roles and has 60,000 Six Sigma Green Belts, over 7,000 Black Belts and 400 Master Black Belts worldwide. To make the process work even better, Ford is working with Wayne State University in Detroit to aid all UAW Ford reps in becoming Six Sigma Black Belts.

Perhaps the newest slogan, «Ford Has a Better Idea», is on its way according to Louise Goeser, VP of Quality, «In fact, one and a half points of customer satisfaction drives about one point more in loyalty and our data shows that customers who are highly satisfied remain loyal».

As «Quality is Job 1» fades to the background at Ford, don’t be fooled, they still want that as any automaker, but through Six Sigma practices, they feel they’ve got a grand hold on the industry’s market share.

Tasks

1.«Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service».

2.What Is Six Sigma? Explain in your own words.

3.Explain the key role in the development of Six Sigma at Ford Company.

Questions

1.What is the definition of total quality management in?

2.What is the philosophy of quality management?

3.What are the eight principles of quality management?

4.What is the principle of leadership?

References

1.Addey J. Quality management system design: a visionary approach. Total Quality Management. 2013.

2.Ackoff R. L. Beyond Total Quality Management. Lecture presented at Middleton Hall, University of Hull. 2014.

3.Riggs D. E. TQM: Quality Improvement in New Clothes. 2012.

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5. ISO STANDARDS 22000

The purpose of this practice – to discuss and fix bases of ISO standards 22000, its main principles.

This practice will allow creating competence OPK-2: ability to find organizational and administrative solutions and readiness to bear for them responsibility from positions of the social importance of the made decisions and also to acquire the following knowledge and abilities:

–knowledge of ISO standards 22000bases;

–understandingofanorderofitsimplementationinthecompanies’ activity;

–ability to define, what elements ISO standards 22000 consist in and how to use them to develop the company and economy.

RelevanceofpracticeconsistsinnecessitytoknowISOstandards 22000bases.

Theoretical part

ISO 22000 is a standard developed by the International Organization for Standardization dealing with food safety. It is a general derivative of ISO 9000.

Food safety is linked to the presence of food-borne chut in food at the point of consumption. Since food safety hazards can occur at any stage in the food chain it is essential that adequate control be in place. Therefore, a combined effort of all parties through the food chain is required.

The certification process:

1)defining the area of certification;

2)preparing for audit;

3)document review, a site visit, a meeting of the team of auditors;

4)prepare audit program;

5)maximize the benefits of exchange / separation information / interview;

6)certification auditing at the enterprise;

7)objective, independent analysis system;

8)drafting the report, including the strengths and weaknesses of the system, how to improve;

9)develop an action plan the audit;

10)certification decision – Issuance of certificate;

11)inspection Audit (yearly or every six months).

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The ISO 22000 international standard specifies the requirements for a food safety management system that involves the following elements:

–interactive communication;

–system management;

–prerequisite programs;

–HACCP principles.

Critical reviews of the above elements have been conducted by many scientists. Communication along the food chain is essential to ensure that all relevant food safety hazards are identified and adequately controlled at each step within the food chain. This implies communication between organizations both upstream and downstream in the food chain. Communication with customers and suppliers about identified hazards and control measures will assist in clarifying customer and supplier requirements.

Recognition of the organization’s role and position within the food chain is essential to ensure effective interactive communication throughout the chain in order to deliver safe food products to the final consumer.

The most effective food safety systems are established, operated and updated within the framework of a structured management system and incorporated into the overall management activities of the organization. This provides maximum benefit for the organization and interested parties. ISO 22000 has been aligned with ISO 9001 in order to enhance the compatibility of the two standards.

ISO 22000 can be applied independently of other management system standards or integrated with existing management system requirements.

ISO 22000 integrates the principles of the Hazard Analysis and Critical Control Point (HACCP) system and application steps developed by the Codex Alimentarius Commission. By means of auditable requirements, it combines the HACCP plan with prerequisite programmes. Hazard analysis is the key to an effective food safety management system, since conducting a hazard analysis assists in organizing the knowledge required to establish an effective combination of control measures. ISO 22000 requires that all hazards that may be reasonably expected to occur in the food chain, including hazards that may be associated with the type of process and facilities used, are identified and assessed. Thus it provides the means to determine and document why certain identified hazards need to be controlled by a particular organization and why others need not.

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During hazard analysis, the organization determines the strategy to be used to ensure hazard control by combining the prerequisite programs and the HACCP plan.

ISO is developing additional standards that are related to ISO 22000. These standards will be known as the ISO 22000 family of standards. At the present time, the following standards will make up the ISO 22000 family of standards:

1.ISO22000–Foodsafetymanagementsystems–Requirements for any organization in the food chain.

2.ISO 22001 – Guidelines on the application of ISO 9001:2000 for the food and drink industry.

3.ISO/TS 22002– Prerequisite programmers on food safety.

4.ISO TS 22003 – Food safety management systems for bodies providing audit and certification of food safety management systems.

5.ISO TS 22004 – Food safety management systems – Guidance on the application of ISO 22000:2005.

6.ISO 22005 – Traceability in the feed and food chain – General principles and basic requirements for system design and implementation.

7.ISO 22006 – Quality management systems – Guidance on the application of ISO 9002:2000 for crop production.

ISO 22000 is also used in the Food Safety Systems Certification (FSSC) Scheme FS22000. FS22000 is a Global Food Safety Initiative (GFSI) approved scheme.

In comparison with ISO 9001, the standard is a more procedural oriented guidance than a principle based one. Apart from that, ISO 22000 is an industrial-specific risk management system for any type of food processing and marketing, which can be closely incorporated with the quality management system of ISO 9001. The detailed similarities and differences of the two standards can be found elsewhere.

In 2004, European Office of Crafts, Trades and Small and Medium-sized Enterprises for Standardization addressed that the standard is only suitable for large sized companies and small food businesses will not be able to seek such a high standard due to the lack of resources to pursue the certification. The agency suggests to create an alternative for small food business to achieve the same objective. EFSA is now making their efforts on the food legislations that are adaptable for the SMEs in food supply chains. A few critics

also proposed that organizations which seek the standard certification

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should also do the same to the ISO 14001 along with the ISO 9001, as they consider that large amounts of risks are mainly from the primary production in the supply chains rather than the later stages of food processing.

Case: ISO standards 22000 in food industry

FoodsafetyhasalwaysbeenanessentialcomponentofDanone’s policy. Producing healthy foods and ensuring customer safety and satisfaction is constant concern. Food safety is rarely mentioned and yet it is self-evident to everybody.

Danone is the result of the consolidation of food activities which had their own history and their own management system. Prior to ISO 22000, Danone already had a food safety management system which had been implemented in every company of the Groupe Danone. Today, the group operates in some 60 countries which have varying levels of health and safety and environmental requirements.

A form of standardization of food safety management had to be achieved in order to be consistent internally and to promote dialogue withpublichealthauthorities,consumerorganizationsand,eventually, large-scale retailers.

Danone started to study ISO 22000 in 2003 through a benchmarking analysis with the standards that already existed on the market.

ISO 22000 clearly defines the steps: hazard analysis, risk assessment, definition of critical limits, and implementation of PRPs *(Prerequisite Programmers), implementation of the HACCP plans and also, management of associated elements that are essential to a food safety steering device. The third strong point of this standard lies in the fact that its implementation creates a common language throughout the food chain, both upstream and downstream, from farming activities to distribution, thereby facilitating food risk management.

Finally, ISO 22000 helps fulfill due diligence duty concerning food safety, i.e., obligation of Danone is to take all possible steps to guarantee, and be able to demonstrate, food safety.

Systemtoensurefoodsafetywasthemosteffective,itisadvisable to design, implement and update within a structured management system and integrated into the overall management activities of

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the enterprise. This approach provides the maximum benefit for the company and stakeholders in his product sides. Therefore, ISO 22000 when developing harmonized with ISO 9001, which increases the compatibility of these standards.

Confectionery factory ROSHEN Corporation developed and implemented a quality management system in accordance with the requirements of ISO 9001: 2008 and food safety management in accordance with the requirements of ISO 22000: 2005.

Georgian company producing mineral water Georgian Glass & Mineral Waters Co. N.V. received the international quality certificate ISO22000.Thiswasreportedinthecompany.Thehandoverceremony was held in Borjomi certificate on June 15. This ISO standard is the latest, as was introduced in 2005. Product quality control is carried out on the entire cycle – from production and bottling of products to its distribution in commerce, using the so-called system for identifying critical points and their management.

Obtaining a certificate of ISO 22000 is not a mandatory procedure and is carried out on a voluntary basis. Today, however, a growing number of organizations trying to get it, thus confirming the quality of its products and improve competitiveness.

Tasks

1.Explain: what are the strengths aspects of ISO 22000?

2.Find out: which other companies are using this standard?

Questions

1.What points are included in the certification process?

2.Which elements include ISO 22000?

3.Why ISO 22000 has been given in accordance with ISO standard 9001?

4.What is a HACCP?

5.What kinds of family of standards ISO 2000 do you know?

6.Why this standard is only suitable for large companies?

References

1.ISO 2005-Food safety management systems-Requirements for any organization in the food chain. 2015. Geneva: FDSI 22000.

2.ISO 9001:2000. Quality management system–Requirements.

2012.

3.http://www.iso.org

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6. DOMESTIC EXPERIENCE OF QUALITY MANAGEMENT

The purpose of this practice – to discuss and fix bases of domestic experience of quality management, its main principles.

This practice will allow creating competences PK-3: possession of skills of the strategic analysis, development and implementation of strategy of the organization aimed at providing competitiveness; and PK-5: ability to analyze interrelations between functional strategy of the companies for the purpose of preparation of the balanced administrative decisions and also to acquire the following knowledge and abilities:

–knowledge of domestic experience of quality management;

–understandingofanorderofitsimplementationinthecompanies’ activity;

–ability to define, what elements domestic experience of quality management consist in and how to use them to develop the company and economy.

Relevance of practice consists in necessity to know domestic experience of quality management.

Theoretical part

Evolutionary gap.

The struggle to satisfy clients in services and manufacturing within Russia has forced senior managers to search for new appropriate approaches to conduct business practices. Within Russia supply and demand has historically been the function of an administrative command system and was subject to state planning. The concept and application of competition between manufacturers and service providers was absent. Customers could not opt for purchasing one product or service as opposed to another or as noted in Russia «vote by rubles», as no choice existed.

This artificial market did not promote a positive attitude towards quality or its importance in a global competitive market place. A sea change has been necessary to move from this over-managed (by central government) system to a more westernized approach. Although this change has been evolutionary, Russia has been able to build upon the accumulated experience of eastern and western experiences. In short, Russia is now behind the west in its understanding and application of TQM. This gap is now being greatly

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