Total quality management
Basing on Standex International Corporation, an organization which I have worked in the past, the purpose of this paper is to critically analyze the quality methodologies or practices that the firm uses or plans to use in order to align performance excellence with its business objectives. This paper also provides a critical analysis of the quality management system that focuses on meeting the needs and practices of the customers so as to help in building a customer-based culture along with techniques to enhance design of work processes, process control as well as process improvement. A critical analysis of techniques and tools which support Six Sigma philosophy is also provided. Finally, this paper also provides suggested improvement actions basing on what I have learned in this course to assist the firm attain performance excellence.
Standex International Corporation (SIC) is the parent company of Nor Lake in Hudson, Wi. It essentially produces various services and products for varied market segments. SIC is based in Salem, NH and is a diversified international manufacturing firm that operates in 5 segments: hydraulics, engineering technologies, food service equipment, electronics and engraving. The corporation has 11 operating units which are organized into the 5 segment gropus: Hydraulics Group; Engineering Technologies Group; Food Service Equipment Group; Electronics Group; and Engraving Group (Standex International Corporation, 2013). Through the strategy of the firm, the Company leverages the collective strengths of its businesses to better infiltrate existing markets and penetrate new vertical as well as geographic markets. The Company would also keep on acquiring businesses which are synergistic with its existing operating groups, and which could rapidly make contribution to profitability. Standex has about 3,810 employees across the United States and in many foreign locations such as Singapore, Europe, Australia, Mexico, Brazil, Turkey, South Africa, China, India and Canada. SIC was founded in 1955 and since then, it has become recognized for its capability of acquiring and effectively managing superior business organizations within varied markets. The Company’s diversification throughout several lines of business has allowed it to realize profits consistently across economic as well as market cycles (Standex International Corporation, 2013).
Critical Analysis: Quality Methodologies or Practices used by SIC
Quality is broadly recognized as an essential discipline or competitive priority for the development of the organization. Standex is well-known for lean production practices, product quality, on-time delivery and customer satisfaction. The key quality practices used by the company include the following: lean thinking; cycle time reduction; supply management; design for manufacturability and quality control. (i) Lean thinking: Essentially, SIC customers often demand services and products that are cheaper, better and of superior quality. This calls for harmony between the design of the product and the processes utilized in producing the product. At SIC, processes always accommodate the various products needed by the clients easily and in a cost effective manner (George, 2008). Lean thinking is employed to make sure that value is added in all steps of the process. Very high quality is usually put in place to avoid the wasted effort as well as time of reworking. Cycle time is reduced in order to achieve requirements of delivery and reduce inventory. With the concept of lean thinking at Standex, production management concentrates on the optimization of resource usage, that is, equipment and personnel.
Lean thinking at Standex entails first, organization, wherein orders flow through production in a manner that is as efficient as possible. Orders flow in a continuous manner and queues between work stations are maintained to be as small as possible. Second is pull system, whereby instead of being pushed, work is pulled throughout production, and the final operation is scheduled to achieve the delivery requirements of the customer. Third is waste elimination, whereby all steps in production add value. Autonomous defect control is employed to discontinue production whenever a defect is detected so that the problem could be fixed before more effort and materials are wasted (Price, 2004). (ii) Cycle time reduction: At Standex, fast cycle times allow the orders of customers to be shipped quickly, and less amount of finance has to be invested in inventory and in the warehouse. With low inventory, there is generally less opportunity for the company products becoming obsolete prior to their shipment. (iii) Supply management: Standex has obtained significant cost savings by out-sourcing. Just-in-time delivery of supplies is employed and suppliers are involved in developing new products resulting in cost savings as well as greater quality improvements. (iv) Design for manufacturability (DFM): product design and the processes utilized in producing are analyzed concurrently so as to optimize in-process inventory; process cycle times, reliability and quality, as well as usage of equipment and materials (Summers, 2009).
Critical Analysis: Quality Management System that focuses on meeting customers’ needs and practices
Standex uses a quality management system (QMS) that is based on the International Organization for Standardization (ISO) 9001 standard, or 1SO 9001 standard. It focuses on meeting the needs and practices of the customers. It is noteworthy that a QMS which is based on the ISO 9001 standard is not just an incidental focus on attaining requirements of the client; rather, it is a structured and deliberate approach used to exceed the requirements of the customers. It specifies the vital requirements for a successful and effective QMS, which essentially, is a system used to maximize opportunity and minimize risk. Without satisfied clientele, and without meeting their practices and needs, Standex International will basically be in peril (Standex International Corporation, 2013). The ISO 9001 standard of QMS used by Standex International offers an effective framework for undertaking a systematic approach to managing the processes of the Company so that they constantly turn out products that satisfy the expectations of clients.
The QMS used by Standex comprises 8 principles of quality management: (i) customer focus: this starts with a top-level management commitment of meeting and exceeding the customers’ requirements and acknowledging that customer is king. (ii) Leadership: this entails creating unity of purpose as well as providing a vision for the company, such that every employee strives in similar direction. (iii) Involvement of People: people are a key competency of Standex International, and involving them as well as their capabilities at every level to benefit the Company. The Company involves people in decision making and this serves to inspire creativity and innovation. (iv) Process approach: Managing resources as well as activities as a process offers lucid hints of what each input and output is, and therefore offers a clearer idea of how to attain the desired results (Summers, 2009). (v) System Approach to Management: The efficiency and effectiveness of Standex International relies on its capacity to recognize, understand and manage interconnected process as a system. At the company, understanding interdependencies is crucial. (vi) Continual Improvement: this entails the Company constantly improving its systems and processes and therefore improving the organizational general performance needs to a lasting goal of the Company. (vii) Factual Approach to Decision Making: Decisions have to be founded on the analysis of correct and dependable information and data. Intuition and experience mixed with analysis is a potent tool for decision making. (viii) Mutually Beneficial Supplier Relationships: the improvement of the capability of creating value relies on the relationships with suppliers. It is imperative to have a balance between long-term considerations and short-term gains which then leads to enhanced flexibility as well as optimization of both resources and costs (Standex International Corporation, 2013; Saxena, 2005).
Critical Analysis: Tools and Techniques that support the Six Sigma Philosophy
The main tools and techniques that support six sigma philosophy include the following: brainstorming; fishbone diagram; affinity diagram; benchmarking; and box plot. Brainstorming: this refers to a technique used in generating ideas in a systematic manner typically to manage a difficult situation, from a grouping of individuals by fostering free thinking. Many such opportunities exist in organizations, for instance increasing sales, defining new processes, enhancing productivity, launching new products or finding new areas for business development. Whereas there might be other processes or techniques for handling these situations, brainstorming is a vital activity in each of these processes (Saxena, 2005).
Fishbone diagram: this simply refers to a graphical method used to find the origin cause of an effect. It is of note that the effect could be positive, for instance a preferred process outcome; or a negative one, for instance an unnecessary process variation or a process flaw. The first step entails identifying the process effect for analysis. The effect is written inside a box on the right hand side and a horizontal arrow is drawn. The 2nd step entails identifying the major groups of causes that result in the effect being considered. Finally, the 3rd step involves identifying as many causes under each of the groups and then adding them to the corresponding group. Every cause is detailed further in a recursive way up to the lowest possible level (George, 2008). Affinity diagram: a collection of ideas that have been created following a brainstorming session, has to be prioritized and analyzed prior to executing them. A smaller pool of ideas are can be sifted through easily and evaluated devoid of employing any formal technique. Affinity diagramming is a vital technique for handling many ideas and is often utilized when: there is group participation and agreement; complexity because of varied opinions and viewpoints; and when large a big data set has to be traversed (Price, 2004). Benchmarking: this refers to a standard by which something could be judged or gauged. Within a business setting, benchmarking entails comparing the business with others so that one can make an objective evaluation of his/her business. Benchmarking helps (i) in identifying areas for breakthrough improvements; (ii) in establishing greater targets; and (iii) in establishing new priorities. The 3 types of benchmarking include: internal benchmarking, which compared products or processes throughout the company on vital critical-to-quality parameters like turn-around-time. Functional benchmarking compares the same processes or functions with leaders in the industry; and competitive benchmarking concentrates on direct business rivals in terms of their clients, services, products as well as processes (Saxena, 2005).
Chart 1: The flowchart below illustrates in summary the processes used in benchmarking (Saxena, 2005)
Common areas for benchmarking include value addition per worker, critical-to-business processes, profitability, customer satisfaction and products (Saxena, 2005).
Pareto Chart: this illustrates the frequency with which particular events take place. It is essentially a bar graph wherein every frequency is depicted in a descending order of data importance, and usually from right to left. It is based on the Pareto Principle, also referred to a the rule or vital few or the 80-20 rule. Pareto Chart is helpful in identifying and focusing on vital few in order to maximize the returns on investments (ROIs) on resources (Summers, 2009).
Suggestion on improvement steps/actions to help SIC attain performance excellence
To help Standex International Corporation attain performance excellence, some actions are essential. The managers of the company have to take the following action: (i) getting the processes optimized: Standex can enhance its capacity to attain its target costs ithrough optimizing 4 major areas; operations, supply, research and development efficiency and overheads. (ii) Getting the channels working: as the Company continues to grow in a globalized environment, it is imperative that supply chains get adapted accordingly. It is notable that supply chains could also open-up new channels in areas such as mass customization. (iii) Getting liquidity fixed: In order to flourish in uncertain periods, the Company has to maintain healthy liquidity and optimize asset utilization as well working capital (Summers, 2009).
(iv) People management: this entails releasing the full potential of individuals in order to constantly improve business as well as service. (v) Resources: they should be deployed in an effective manner in order to support strategy and policy. (vi) Processes: all processes should be identified, reviewed and revised in order to ensure improvement of the Company. (vii) Customer satisfaction: all external customers have to be satisfied. (viii) People satisfaction: every worker should be satisfied. (ix) Leadership: inspiring and driving Total Quality as the Company’s basic process for constant improvement. (x) Business results: attaining the planned goals and performance together with meeting the requirements and anticipations of everyone with an interest in the Company (Price, 2004).
Conclusion
In conclusion, Standex International Corporation (SIC) produces various services and products for varied market segments. The Company’s diversification throughout several lines of business has allowed it to realize profits consistently across economic as well as market cycles. The main quality practices used by the company include lean thinking; cycle time reduction; supply management; design for manufacturability and quality control. Standex uses a quality management system (QMS) that is based on the International Organization for Standardization (ISO) 9001 standard, or 1SO 9001 standard. It focuses on meeting the needs and practices of the customers. It is noteworthy that a QMS which is based on the ISO 9001 standard is not just an incidental focus on attaining requirements of the client; rather, it is a structured and deliberate approach used to exceed the requirements of the customers. The QMS used by Standex comprises 8 principles of quality management. The major tools and techniques that support six sigma philosophy include brainstorming; fishbone diagram; affinity diagram; benchmarking; Pareto chart and box plot. To help Standex International Corporation attain performance excellence, the following actions are necessary: people management, customer satisfaction, people satisfaction, efficient use of resources and getting the processes optimized.
References
George, M. L. (2008). What is Lean Sigma. Columbus, OH: AMACOM
Price, M. (2004). The Lean Sigma Pocket Toolbook. Boston, MA: Prentice Hall.
Saxena, S. K. (2005). Discover 6 Sigma: The Science Behind Breakthrough Improvements. Crescent City, CA: Springer Publishers.
Standex International Corporation. (2013). Standex International Corporation (NYSE:SXI), based in Salem, NH, Manufactures a Variety of Products and Services for Diverse Market Segments. http://www.standex.com/about/our-company
Summers, D. (2009). Total Quality Management. Austin, TX: Penguin Publishers.
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