Module: Quality Assurance – Total Quality Management – Case Study

Quality at RWDi

1.0 – Introduction

RWDi (Rown Williams Davies & Irwin Inc.) is a Canada-based wind engineering-cum-environmental engineering firm established in 1972. The organization has presence in the United Kingdom, Canada, USA, the Middle East and India. The company provides a range of products and services in wind engineering, motion engineering, microclimate, environmental air quality, as well as noise and risk services to a multitude of clients across the world (Goldberg, 1999).

RWDi is faced with quality management issues that have resulted in loss of major customers to competitors together with significant decline in sales (Spencer & Loomba, 2001, 690). They include mobile and stationary exhaust dispersion, pedestrian discomfort, sun and shadow effects, noise and vibrations, ventilation, accidental releases and spills, dust, odor, wind loading, glazing, cladding, and structural systems.

The management of RWDi has undertaken a series of interventions targeted at reducing defects, achieving product specifications at all times and reducing customer complaints. However, the interventions have not been successful because of two main reasons: first, the organization lacks clear marketing orientation which translates that it has little understanding of its customer’s preferences. Secondly, the company’s main competitors have adopted Total Quality Management (TQM) approaches to realize significant improvements in quality, productivity, as well as financial returns (Spencer & Loomba, 2001). A management consultant that was appointed to investigate the source of the company’s poor performance suggested a change in culture so as to fully adopt the marketing concept together with immediate implementation of Total Quality Management concept in the firm

2.0 – Quality and Total Quality Management

            The concept of quality is indeed subjective and difficult to attach a universal definition. The difficulty in definition of quality applies to all products and it is the case in both manufacturing and service organizations (Spencer & Loomba 2001, 690). In addition, the meaning of quality evolves with time. Achieving quality is a continuous process that requires an elaborate plan by an organization. At present, quality is no longer a technical issue rather a business element whose successful achievement demands involvement and commitment of top management. The quality concept transcends many aspects of business such as planning, product processing and their ultimate performance in the marketplace (Gitman & McDaniel 2008, 227). Improvement of quality at RWDi would depend on the company’s ability to effectively control and manage systems as well as processes, together with the role of top management to foster change.

Total Quality Management (TQM) refers to overall management process that strive to create an organizational system that supports cooperation and learning to facilitate successful implementation of varied process management activities, which in turn result in continuous improvement of the processes, products/services and continuity of the firm (Spencer & Loomba 2001, 692). The approach is characteristic with organizations that have streamlined their culture and attitudes to providing the clients with satisfactory products and services. Such culture informs the quality agenda in all operations of the organization, in which defects and waste are eliminated using interventions that aim to get it do it right first time. In this regard, RWDi would adopt TQM concept to achieve customer-defined quality across its management, production, packaging, merchandising, and customer-service departments. The leadership takes an active role in bringing about significant change in both processes and systems in the organization. Top management is in charge of quality management methods and continuous improvement such as identifying and measuring customers needs, creating positive supplier relationships, enhancing employee skills, and encouraging employee participation (Goldberg 1999, 82).

The objectives of adopting TQM are: creating constancy of purpose in achieving product/service improvement to gain competitiveness and business continuity; continuous improvement of quality and productivity resulting in consistent decreased costs; creating team work across departments; and involving everyone in creating value for the organization (Goldberg 1999, 89).

3.0 – Problem Definition

RWDi, as a large manufacturing company, is faced with quality management issues that have resulted in loss of major customers to competitors together with significant decline in sales (Peratec Ltd, 1994). The company faces a multiplicity of issues ranging from mobile and stationary exhaust dispersion, pedestrian discomfort, sun and shadow effects, noise and vibrations, ventilation, accidental releases and spills, dust, odor, wind loading, glazing, cladding, and structural systems.

The management of RWDi has undertaken a series of interventions targeted at reducing defects, achieving product specifications at all times and reducing customer complaints. However, the interventions have not been successful because of two main reasons: first, the organization lacks clear marketing orientation which translates that it has little understanding of its customer’s preferences (Peratec Ltd, 1994). Secondly, the company’s main competitors have adopted Total Quality Management (TQM) approaches to realize significant improvements in quality, productivity, as well as financial returns. A management consultant that was appointed to investigate the source of the company’s poor performance suggested a change in culture so as to fully adopt the marketing concept together with immediate implementation of Total Quality Management concept in the firm

4.0 – Solutions

The first stage in achieving quality is conducting appropriate market research to discover the real requirements for the product or service being offered together with the true needs of the customer (Spencer & Loomba 2001, 695). Full knowledge of customer needs would enable RWDi to design their products and services into meeting the customer needs and expectations. In order for a firm to be fully effective, the quality concept must be embraced at levels and across all departments by involving all people. Quality needs to be the common language for improvement throughout the organization.

RWDi need to embrace TQM and marketing in order to solve both its short-term and longer-term problems. Both concepts entail a longer term philosophy. There is the general need to anticipate customer needs in the long term, which results in long-term retention of customers. TQM is by no means a one-off, short-term remedy because it is a continuing process with real beneficial results taking as much as two decades to be realized. Much time is required to embed both TQM and marketing (Goldberg 1999, 92).

The recommendation of the management consultant’s report was to the effect that there is need for culture change so as to fully adopt the marketing philosophy and embrace a quality concept. While this is spot-on, implementing culture change is more of medium as opposed to short-term objective considering the scenario at hand. Both TQM and marketing must be accommodated by the organizational culture and clearly reflect in the attitudes and actions of RWDi’s workforce (Gitman, & McDaniel, 2008). As such, there is need for customer orientation and quality to be seamlessly natural, culturally shared and spontaneous.

Both TQM and marketing are characteristically customer-first oriented, in which the organization’s priority is customer satisfaction. For implementation of TQM to be successful, customer’s needs must be satisfied following organization’s sensitivity to customer needs and rapid precise response to them (Peratec Ltd, 1994). Similarly, marketing is a customer centered activity, where satisfaction of customer needs is achieved through an exchange process.

It was identified in the management consultant’s report that RWDi is yet to fully incorporate a clear marketing approach, unlike its main rivals, leaving it unaware of its customer’s preferences. This implies that RWDi remains a sales-oriented firm because it has concentrated on persuading customers to purchase products offered in its portfolio, instead of discovering what the customer desire. Selling is not equivalent to marketing because the latter strikes to supply precisely what the customer wants as opposed to making them take what the firm supplies (Gitman & McDaniel 2008, 230).

Evidently, RWDi needs to embrace the marketing concept to become customer-oriented. This would require a number of major adjustments to the current way of doing business at the organization. Firstly, RWDi needs to develop a more intense focus on the customer needs by modifying the manner in which it does market research, product pricing and communication with customers (Gitman & McDaniel, 2008). The firm needs to surpass its basic requirements for product specifications, reducing defects and reducing customer complaints. Furthermore, RWDi must diversify its product offerings.

Implementing TQM requires the commitment of the entire organization, including management (Peratec Ltd 1994, 92). Consequently, product designers at RWDi need to employ market research result to respond to customer needs. Such customer-oriented focus should be consistently reflected in all RWDi’s department, which ought to strive to get products right first time with continuous improvement.

RWDi’s front line staff needs to be sufficiently trained to adequately respond to customers, providing top-notch service and improving brand image (Gitman, & McDaniel, 2008). The front line staff would be involved in TQM the firm’s quality committee along with the activities of quality circles.

Continual improvement has close relationship with TQM in the sense that it promotes minor improvements which significantly result in momentum for change. It is also consistent with a marketing-oriented firm striving to exceed customer satisfaction and gain competitive advantage (Peratec Ltd 1994, 54). RWDi needs to benchmark its customer satisfaction indicators against its competitors and undertake quality improvements in such areas as product design, manufacturing, customer service, product presentation, etc.

 

 

 

 

 

 

 

 

 

 

 

 

References:

Goldberg, H, L, 1999. Green Electronics/Green Bottom Line: Environmentally Responsible Engineering. Oxford: Newnes. Gitman, J. L. & McDaniel, C., 2008. The Future of Business: The Essentials. Connecticut: Cengage Learning. Peratec Ltd, 1994. Total Quality Management: The Key to Business Improvement, New Mexico: Springer. Spencer, M., & Loomba, A., 2001. ‘Total Quality Management Programmes at Smaller Manufacturers: Benchmarking Techniques and Results’, Total Quality Management, 12(5) p. 689-695.