This paper discusses the Total Quality Management program of Procter & Gamble, including its current quality strategies and objectives, elements of quality program, maturity of quality program, and issues with leadership and organizational culture. It also provides recommendations for improving the existing quality journey.
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Running head: TOTAL QUALITY MANAGEMENT TOTAL QUALITY MANAGEMENT Name of the Student Name of the University Author Note
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1TOTAL QUALITY MANAGEMENT Table of Contents Introduction................................................................................................................................2 Discussion..................................................................................................................................3 Overview of the company:.....................................................................................................3 Current Quality strategies and objectives:.............................................................................3 Elements of Quality program:................................................................................................4 Maturity of Quality Program:.................................................................................................5 Issues with leadership and organizational culture:.................................................................5 Recommendations for improving the existing quality journey:.................................................7 Conclusion:..............................................................................................................................10 References................................................................................................................................12
2TOTAL QUALITY MANAGEMENT Introduction The continual process of detecting and eliminating inaccuracies in the process of manufacturing, supply chain management, ensuring employee improvement as well as enhancing customer experiences is known as Total Quality Management (Sallis 2014). It can be described as the management system, which is customer, focused approach and involves thecontinualimprovementprocessofemployeesbyutilizingthestrategy,effective communication as well as the data to be integrated for the quality discipline in activities and culture of organizations. The principles of Total Quality Management comprise of the focus on customer, the involvement of employees, the concentration on process, a well-planned integrated system, a systematic and strategic approach, continual improvement plan (Ross 2017). The principles also includes the decision making process based on facts as well as the structured communication plan. The purpose of this paper is to understand the Total Quality Management programs for assessing the effectiveness with current objectives of quality management (Oakland 2014). The paper will be presenting the quality management scenario of an organization for developing the understanding of a real business scenario. The selected organization for this paper is Procter & Gamble. In this paper, the issues regarding leadership and culture will be depicted which influences the productivity of Procter & Gamble. The paper will be concluded by presenting a summary of the issues as well as the current state followed with the series of recommendations. The paper will present the recommendation for the purpose of improving the quality journey of the multinational company Procter and Gamble. The recommendations will be based on the framework of PDCA, which was formulated by Joseph M. Juran and W. Edwards Deming, and depicts the phases involved in the development of quality management plan. It consists of four steps, plan, do, check and act, used for the process of continual improvement as well as the control management of manufacturing and launching products.
3TOTAL QUALITY MANAGEMENT Discussion Overview of the company: The multi-national company Procter and Gamble is an American based company specializes on consumer goods (P&G 2019). An English American William Procter and Irish American James Gamble founded the corporation in the year 1837. Headquarter of the company is located in Ohio. The product ranges comprises of personal care, hygiene products, consumer health products and the segments like grooming, beauty, home care, family care and health care. The net sales of Procter and Gamble for the year 2018 was reported as 16.5 billion dollars, which marked an increase of 3 percent increase in the shipment value as compared to 2017. The diluted net earnings per share were 0.72 dollars, which marked a decrease of 12 percent from the year 2017 (P&G 2019). Few of the popular products of Procter and Gamble include Ariel, Vicks, Olay, Whisper, Tide and Gillette. Current Quality strategies and objectives: ThecurrentgoalsandobjectivesofProcterandGambleincludethepeakof sustainability for creating a positive impact on society and environment by the creation of positive impact on consumers and company (Davenport, Iansiti and Serels 2013). The goal is to respond to the most persistent environmental challenges, which are limited resources with growingrateofconsumption.Theprocessofqualitymanagementwillensurethe incorporation of collaboration and partnership for the progress towards the set objectives. The goal of sustainability can be ensured by the strategy of tracking every step of supply chain process. In regards with the quality management of employee engagement, sustainability is includes in the business plans (Davenport, Iansiti and Serels 2013). Leaders are restructuring the strategies for aligning the operational processes with the strategic goals. The company has the goal of collaboration as well as the customer awareness programs for implementing the strategies in the business. The theme for this year is directing towards a specific goal of
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4TOTAL QUALITY MANAGEMENT ‘Redesigning the Good Life’. On the basis of one of the principles of quality management, the company built an aim of enhancing the customer experience by building a sustainable brand (Goetsch and Davis 2014). The customer base allows the company to respond to the opportunity of promoting conservations, helping people to use the products of Procter and Gamble as well as influencing the attitude of sustainable society (Davenport, Iansiti and Serels 2013). The company, Procter and Gamble aims at earning improved returns on marketing investments for ensuring the involvement of stakeholder’s satisfaction. The aim of Total Shareholder Return can be achieved by the measure of creating values, which requires sales growth, strong cash flow productivity and operating and gross margin (Queen 2015). The company is aiming at building environmental leadership. Elements of Quality program: Brands- The leadership brands of P&G includes Ariel, Fairy, Dawn, Pantene, Head and Shoulders, Tide and Pampers will be directed towards inspiring the responsible use by the help of cent percent reusable or recyclable packaging. The company is planning to implement innovative brand designs for building trust and transparency regarding the safety considerations of environment and society (Rosenbaum-Elliot, Percy and Pervan 2015). Supply chain- The future plan of sustainability aims at transforming the supply chain process of manufacturing sites by cutting the emission of greenhouse gases into half (Uluskan, Joines and Godfrey 2016). Society/consumers- The Company aims at achieving a transformed solution regarding dumping plastic in the water and by expanding recycling solutions. The quality of the employee improvement can be ensure by engaging, equipping and rewarding efforts and practices towards sustainability (Leos-Urbel 2015).
5TOTAL QUALITY MANAGEMENT Maturity of Quality Program: The company’s approach to the environment quality program is directed towards ensuring the safety association of products, operations and packaging for the environment, consumers and employees. It also involves reducing and preventing environmental impact with the process of incorporating innovation in the supply chain process. The company attempts the transformation of the manufacturing, distribution and the process of disposal for the purpose of reducing carbon footprint. The maturity of the quality program can be depicted by the efforts of the company in regards with following the environmental regulations and laws (Shewfelt 2014). The company abides by environmental friendly practices even without the presence of government standards. Procter and Gamble cooperates with the governmental support for assessing the issues of environment and involve in developing cost effective standards and solution (Uluskan, Joines and Godfrey 2016). The multinational company has reflected significant progress in energy usage and manufacturing process for aligning with the set goals and objectives of quality management. The company has converted around 20 percent of the transportation demand in the regions of North America from the application of diesel to the benefits of natural gas. For instance, in China, Procter and Gamble built solar panels in the plant, which marked a reduction of around six hundred tons of carbon dioxide yearly (Domingues, Sampaio and Arezes 2016). The multinational company, Procter and Gamble launched a source of renewable energy in China. With the help of these initiatives, the maturity of the quality program can be depicted. Issues with leadership and organizational culture: The brand is known for improving the lives of around 70 percent of globe by moving forward than the competitors in regards with reducing carbon footprint. Even though the company has improved its manufacturing and supply chain process, but has majorly failed to communicate the significant improvements to the consumers through the use of effective advertisingmediaorbythelaunchofmeaningfulenvironmentalfriendlyproducts
6TOTAL QUALITY MANAGEMENT (Christopher 2016). The issues of leadership and management can be reflected by the unawareness of the consumers in regards with the innovative changes. If the leadership decisions do not involve communicating the improved changes in the supply chain to its employeesandcustomers,itcanfailinbuildingpositiveconsumerbuyingbehavior (Goleman, Boyatzis and McKee 2013). The company is incorporating sustainability plan behind the scene. Procter and Gamble outlined a comprehensive strategic plan, which includes reducing the Green House Gas emissions during the functioning of operational activities by 30 percent by the year 2020 (Goleman, Boyatzis and McKee 2013). The strategic plan also includes transforming the sources of energy to a renewable form. The materials used for packaging and product manufacturing needs to be 100 percent renewable. The product design was part of the strategic plan which needs to be a value addition for the consumers and at the same time maximize the protection of resources Goleman, Boyatzis and McKee 2013). However,theconsumerperceptionabouttheenvironmentalconsciousnessis unacknowledged because of lack in efficient and effective marketing. In spite of the fact that Procter and Gamble is one of the biggest brand with numerous media campaigns but the multinational company failed at communicating or portraying the environment consciousness through its brand image. The reason of this failure is the gap in leadership practices (Goleman,BoyatzisandMcKee2013).Theemployeecontributioninaligningthe organizational practices with the goals and objectives can be facilitated by building a cohesiveandpositiveculture.Leadershiprolesplayacrucialroleinregardswith synchronizing the organizational sustainability practices (Antonakis and Day 2017). Various functional areas of the company is not linked with thefocused goal of delivering quality program strategies. The issues can be identified in the organizational culture of the company as the organizational structure is divided on the basis of departmentalized products (Goleman, Boyatzis and McKee 2013). The leadership council of the company is structured based on the
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7TOTAL QUALITY MANAGEMENT different categories of the product like health care and home care. The departmentalized structures was created for simplifying the operation of sub-brands but have marked the possibilityofadministrativedifficulties.Theorganizationalculturehasnotevolved completely with the changing demand and innovative strategies of quality program as it is structured on a bureaucratic and traditional management style (Cadden, Marshall and Cao, 2013). The leaders of the organization have directed the focus of product development towards Information Technology instead of understanding the involvement of consumers and employees (Cadden, Marshall and Cao, 2013). The code of conduct of Procter and Gamble is considered to be strict, which restricts the interdepartmental interaction. Quality program can only be aligned in the presence of flexible organizational culture and improved leadership practices/style (Elsmore 2017). Recommendations for improving the existing quality journey: The recommendation for improving the quality journey can be presented based on the quality plan of Joseph M. Juran and W. Edwards Deming. It consists of four steps, plan, do, check and act, used for the process of continual improvement as well as the control management of manufacturing and launching products. It depicts the various stages of quality management, planning of the criteria, resourcing and allocation as well as the limitation or guidelines associated with the ‘Plan’ of the quality program. The next step of the quality journey plan can be ‘Do, which involves observing and collecting data. The following step of ‘do’ can be ‘Checking’ in which the company will have to process the evaluation plan for the proposed actions (Shove and Spurling 2013). The last phase of the quality journey plan can be acting upon the plan by integrating strategies for future development. One of the effective and efficient strategic plan of improving the quality journey is involving employees and customers in the process of innovating and conserving with the manufacturing of ideas for environmental friendly process and products (Shove and Spurling 2013).
8TOTAL QUALITY MANAGEMENT Co-creation is one of the basic ways of implementing a quality program in an organizational setting. Procter and Gamble can implement the strategic goals and objective of the company by communicating the shared values and benefits of the proposed ideas as well as Procter and Gamble should incorporate the process of co-creation, which can align the objectives with organizational practices. The environmental practices of the company should also be focused on responding to the major concerns of environment like climate change. The company can involve two approaches. Firstly, the multinational company Procter and Gamble should engage the consumers for educating about the ‘behind the scene’ conservation and activities that is being adopted by the company (Omotayo 2015). The consumers should be aware of the improvement in supply chain and manufacturing processes, which are transforming as a purpose of quality program (Shove and Spurling 2013). On the other hand, the multi-national company, Procter and Gamble should be involved in the process of minimizing the existing use of Green House Gases in the production process as well as the company should focus on the manufacturing of products, which are dedicated towards the manufacturing of products which will have the potential of empowering and/or encouraging the consumers for reducing carbon footprint in the homes of individual consumer (Watson 2013). Researches have reflected that only 10 percent of the consumers have the perception orwillingnesstopreferhighpricedorminimumvaluedproductandservices.The strategizing or planning phase of the company, Procter and Gamble should be focused on creating a range of products, which is concentrated in benefiting consumers and targeting the minimization of environmental impacts. On the basis of the theory depicted by Joseph M. Juran and W. Edwards Deming, Plan, Do, Check and Act, the quality plan for improving the quality journey of the multinational company Procter and Gamble can be depicted as: Plan- This phase will strategize the process of sourcing and allocating resources as well as plan the criteria, which will determine the implementation plan. In this case, the planning phase will cover the identification of problems, which leads to adverse
9TOTAL QUALITY MANAGEMENT environmental impacts. After the identification of the issues and concerns, the resources like media selection, customer and employee involvement as well as the need for financial support for forming an efficient and effective supply chain process (Wetherill 2013). Do- Collecting data in the case of reshaping the quality plan of Procter and Gamble will be the requirement for responding to the environmental concerns. Another set of data can be about the knowledge regarding the customer’s and employee’s knowledge for activities involved in the protection of negative environmental impacts from the operationalactivitiesofthemultinationalcompanyProcterandGamble.The company has to identify the areas with highest level of energy consumption for addressingtheopportunitiesofresolvingenvironmentalimpacts.Thebrandis strategizing for launching the new feature of the detergent Tide, which can be washed in cold water, thereby saving the energy needed for heating the water. Tide pods are another strategy which will change the customer perception about detergents as it will be manufactured with comparatively lower amount of ingredient and with the similar feature as well as the product design will encourage the optimum utilization of detergent, thereby reducing wastage. The implementation process should also be equipped with the selection of specific media platform for communicating/informing the process of sustainable development. The customers, employees, consumers, public interest groups and communities should be informed about the factual data in regards with quality program and sustainable practices in the process of manufacturing, packaging and operational procedure. Timely and honest communication will lead the positive implementation of quality plan. Check- The Checking stage needsto ensure the efficiencyand impactof the implementation of the quality program. The process of continual assessment of the implementedenvironmenttechnologyandsustainableapproachaswellasthe
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10TOTAL QUALITY MANAGEMENT monitoring of the progress in respect of the strategic quality goals and objectives can respond to the gap in the implementation plan(Hietschold, Reinhardt and Gurtner 2014). The company should be involved in developing the strategy of product life cycle analysis and state-of-art science in the process from raw material sourcing to the disposal of used products. Act- This stage will involve the procedure of strategizing the improvement plan for the next quality plan in regards with sustainable practices for the multinational company, Procter and Gamble (Hackman and Johnson 2013). The continual process ofinnovatingproductsandprocesseswillcontributetowardstheobjectiveof strengtheningtheimageofProcterandGamble.Leadershippracticesfor implementing sustainable practices are crucial as it can respond to the increasing concern of customers regarding the use of consumer goods brand (Hackman and Johnson 2013). Conclusion: Therefore, it can be concluded from the paper that a company may be actively improving the operational or supply chain process but will lack the impact in the absence of negative environmental impact. The multinational company, Procter and Gamble specializes in the process of creating a sustainable system for minimizing the impact of adverse environmental impact. However, the company failed in creating an intensive impact because of the lack of customer knowledge, which led to non-recognition as well as the company lacked in the process of creating a positive perception in regards with the impact of consumer goods on environment. The main recommendation, which can ensure the redesigning of the quality plan, is the process of co-creation; involving/engaging customers and employees facilitate the incorporation of innovative ideas in improving the operational or supply chain process. Involvement of customers and employees will also contribute towards increasing the sense of values and satisfaction. The paper reflected significant issues in regards with the
11TOTAL QUALITY MANAGEMENT leadership style and organizational culture of Procter and Gamble like the lack of flexibility and employee engagement for the purpose of achieving the desired strategic goals and objective. The issues can be addressed by the restructuring of the leadership style and organizational culture. Improved leadership style can ensure the alignment of the objectives of quality plan and the employees’ individual objectives. The attainment of the strategic objectives for the quality program can be ensured in the case of Procter and Gamble by the incorporation of communication and resource planning strategy. The resource planning strategy will comprise of the selective media for increasing the awareness of ‘behind the scene’ sustainable practices and continual innovation plan can help in designing products withsignificantlevelofpositiveimpact.Theimplementationprocessshouldalso be equipped with the selection of specific media platform for communicating/informing the process of sustainable development. The customers, employees, consumers, public interest groups and communities should be informed about the factual data in regards with quality program and sustainable practices in the process of manufacturing, packaging and operational procedure. The positive impact will in return contribute towards the restructuring of an efficient and effective quality program. The multinational company, Procter and Gamble should incorporate measures, which can justify and implement the positive strategy of sustainability.
12TOTAL QUALITY MANAGEMENT References Antonakis, J. and Day, D.V. eds., 2017.The nature of leadership. Sage publications. Cadden, T., Marshall, D. and Cao, G., 2013. Opposites attract: organisational culture and supply chain performance.Supply Chain Management: an international journal,18(1), pp.86-103. Christopher, M., 2016.Logistics & supply chain management. Pearson UK. Davenport, T.H., Iansiti, M. and Serels, A., 2013. Managing with Analytics at Procter & Gamble. Domingues, P., Sampaio, P. and Arezes, P.M., 2016. Integrated management systems assessment: a maturity model proposal.Journal of Cleaner Production,124, pp.164-174. Elsmore,P.,2017.OrganisationalCulture:OrganisationalChange?:Organisational Change?. Routledge. Goetsch, D.L. and Davis, S.B., 2014.Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Goleman, D., Boyatzis, R.E. and McKee, A., 2013.Primal leadership: Unleashing the power of emotional intelligence. Harvard Business Press. Hackman,M.Z.andJohnson,C.E.,2013.Leadership:Acommunicationperspective. Waveland Press. Hietschold, N., Reinhardt, R. and Gurtner, S., 2014. Measuring critical success factors of TQM implementation successfully–a systematic literature review.International Journal of Production Research,52(21), pp.6254-6272.
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13TOTAL QUALITY MANAGEMENT Leos-Urbel, J., 2015. What works after school? The relationship between after-school program quality, program attendance, and academic outcomes.Youth & Society,47(5), pp.684-706. Oakland, J.S., 2014.Total quality management and operational excellence: text with cases. Routledge. Omotayo, F.O., 2015. Knowledge Management as an important tool in Organisational Management: A Review of Literature.Library Philosophy and Practice,1(2015), pp.1-23. P&G (2019).P&G History. [online] Us.pg.com. Available at: https://us.pg.com/pg-history/ [Accessed 9 May 2019]. P&G (2019).Who we are | P&G principles and values. [online] Us.pg.com. Available at: https://us.pg.com/who-we-are/ [Accessed 9 May 2019]. Queen, P.E., 2015. Enlightened shareholder maximization: is this strategy achievable?. Journal of Business Ethics,127(3), pp.683-694. Rosenbaum-Elliott, R., Percy, L. and Pervan, S., 2015.Strategic brand management. Oxford University Press, USA. Ross, J.E., 2017.Total quality management: Text, cases, and readings. Routledge. Sallis, E., 2014.Total quality management in education. Routledge. Shewfelt, R.L., 2014. Measuring quality and maturity. InPostharvest Handling(pp. 387- 410). Academic Press. Shove, E. and Spurling, N. eds., 2013.Sustainable practices: Social theory and climate change. Routledge.
14TOTAL QUALITY MANAGEMENT Uluskan, M., Joines, J.A. and Godfrey, A.B., 2016. Comprehensive insight into supplier quality and the impact of quality strategies of suppliers on outsourcing decisions.Supply Chain Management: An International Journal,21(1), pp.92-102. Watson,T.,2013.ManagementOrganizationandEmploymentStrategy(RLE: Organizations): New Directions in Theory and Practice. Routledge. Wetherill, G.B., 2013.Sampling inspection and quality control(Vol. 129). Springer.