Managing Quality and Business Improvement

This assignment explores the concept of managing quality and business improvement. It covers topics such as performance management, business performance improvement, quality management, ISO 9000, TQM, Six Sigma, and more. The assignment focuses on the case of Foodstuff South Island, a manufacturing company in New Zealand. It discusses the importance of performance management, the key elements of the performance management process cycle, the significance of business performance improvement in a manufacturing business, the phases of business performance improvement, the categories that transform the element of quality management, the approach of KAIZEN in terms of business performance, the key drivers and importance of TQM, ISO 9000 and its importance in global business, the Baldrige Award and ISO certification, the Six Sigma program and how it improves business processes, and the integration of lean operation and Six Sigma technique with continuous program on business operation. The assignment also includes a scenario where complaints are categorized and basic quality tools are analyzed for improvement.

Running head: MANAGING QUALITY AND BUSINESS IMPROVEMENT
MANAGING QUALITY AND BUSINESS IMPROVEMENT

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Table of contents
significance of BPI in manufacturing business
Charts

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Introduction
Quality management is the process through which a company keeps it quality consistency and to
hold excellence in terms of quality operations. This incorporates the assurance of a quality
approach, making and executing quality arranging and affirmation, and quality control and
quality improvement. A rule quality administration centres around long haul objectives through
the usage of momentary activities. In this assignment Foodstuff South Island has been selected
which is situated in New Zealand and a detailed study has been done on it. This assignment
provides information regarding the Total Quality Management in regards of the company.
Part A
Question 1. Performance Management
1.1 Critical evaluation of the concept of performance management and discussing how
performance management enhances organization’s effectiveness and efficiency
Performance management itself means management of performance either of an individual or of
an organization. It is important to consider that there are some key fundamental dimensions of
performance such as Quality of work and Use of resources. These two fundamental aspect are
core drivers of performance management based on which performance is better and the
following is monitored. The concept of performance management is to establish an conventional
and regular process of betterment in the organization’s performance through continuous
evaluations and improvement of performance. The cycle of performance management concept
includes planning, implementation and evaluation. Foodstuffs South Island will also have to
implement performance management in order to better Quality of work and to optimize the
resources use to increase their efficiency (Sallis, 2014).

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1.2 Illustrating and accounting each key element steps of performance management process
cycle
The key steps and elements of performance management process cycle are as follows:
Planning: In this phase there is planning which is made in accordance to the performance goals
and objectives of the firm. The plan is set to achieve the objectives through effective action
plans.
Implementing: In this phase the plan that has been set is implemented to ensure that there
performance development and management of the company’s performance is being initiated.
Monitoring: The implemented plan is monitored to evaluate the performance development
which is being done through the current plan this is done by setting milestones and KPI.
Evaluation: The performance is then evaluated to look at the company achievements after which
the evaluated results is the bedrock based on which future plan is made for performance
management and development (Goetsch & Davis, 2014).
1.3 Briefly analysing the importance of performance improvement in the overall process of
performance management and evaluating two models of performance management
There is immense importance of performance improvements in the process of performance
management. Performance improvement is considered to be an ultimate objective which a
company has and which it wants to achieve through performance management. Performance
improvement in terms of effectiveness and efficiency is a key element which a company has to
achieve while performance management process. It can be said that through performance
improvement a company is able to increase its efficacy and effectiveness which ultimately
benefits the company both operational and financial and the same applies to Foodstuffs South
Island. There are some models of performance management such as Goal setting Theory and

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Expectancy Theory which can be applied to Foodstuffs South Island in order to enhance their
performance. Goal setting theory has been proposed by Edwin Locke in which employees are to
be motivated in an effective way to derive superior performance in order to ensure high
performance within an organization’s performance. Expectancy Theory was proposed by Victor
Vroom in which the author has proposed behavioral aspect of employee being major driver for
performance enhancement to achieve goals and objectives within an organization (Oakland,
2014).
Question 2 Business Performance improvement
2.1 Critically evaluating and discussing the Concept of BPI
The concept of Business Performance improvement is to improve the performance of the
business in all aspect be it operational or financial. For a manufacturing company like Foodstuff
South Island it is important to improve business performance and for this purpose concept of BPI
is used to increase the effectiveness of the company's operation and to increase the operational
efficiency of the firm.
2.2 Discussing the key significance of BPI in manufacturing business
The key significance of BPI in Foodstuff South Island are as follows:
1. It will help the company in increasing the quality of operation which means the quality of
manufacture and products will increase significantly.
2. It will help the company in better and optimized usage of there manufacturing resources
which will significantly increase the operational efficiency of the firm (Ross, 2017).
2.3 Discussing the different phases of BPI
The steps and different phases of BPI are as follows:

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1. Map processes
2. Analyze the process
3. Redesign the process
4. Acquire resources
5. Implement and communicate change
6. Review the process
In the first phase the shortcomings are mapped which is then analyzed. After this the
shortcomings and process is designed for which resources are acquired the change is then
implemented and communicated to better the process. At the end the overall process is reviewed
and evaluated for further references.
Question 3 Quality management
3.1 Evaluating two categories which transform the element of Quality management
The two quality which are to be seen as most important ones are Quality and Cost. In accordance
to the Total Quality control system in Japan there are 6 categories but these two will be the most
evident elements which transform quality features within a quality management process. Quality
is directly related to the quality of product rendered by the company whereas cost is a evident
factor which also determines the amount of resources needed to develop and manufacture a
product. The higher the cost the higher amount of resources employed in the process where as
the better the quality of manufacture the better the quality of the product (Kwon, Lee & Shin,
2014).

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3.2 Analyzing KAIZEN on what approaches this focuses in terms of business performance
KAIZEN is a Japanese term that is a representation of small positive changes can reap large and
major improvements within a company. The policy focuses on how there can be small and
positive changes be made within the current system to reap major benefits. In terms of business
performance this system look on to small improvements which can be done in an continuous
manner to enhance business performance of a company. In this way there will be no major
requirements of changes but conventional and continuous positive changes which will benefit the
performance of the company.
Part B ISO 9000 and TQM
Question 1
1.1 Discussing the key drivers and importance of TQM
In order to implement the Total Quality Management the Foodstuffs South Island Company
focuses on the eight key drivers which enhance the performance quality of the company. The
eight key drivers of the company are Ethics, Integrity, Teamwork, Trust, Leadership, Training,
Communication and Recognition. These eight key drivers in Total Quality Management is used
by the Foodstuff South Island Company of New Zealand. The use of Total Quality Management
is important in terms of company. By using the TQM method in Foodstuff South Island
Company the productivity of the company can be higher in terms of quality which will increase
the importance of both the shareholders and stakeholders of the company. By using TQM the
company also increases its profitability as they maintain a superior quality in terms of their
products. The use of Total Quality Management by the Foodstuff South Island Company,
improved the focus of their consumers and the satisfaction of their consumers. The Total Quality

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Management also helps the company to identify their errors and removal of the waste and
defected products. The use of Total Quality Management is beneficial for the company because
it helps the company to strengthen its position consistently and to create a proper image in front
of the other competitors (Dale & Plunkett, 2017).
1.2 Discussing about ISO 9000 and its importance in global business
ISO 9000 is a standout amongst the most generally perceived awards for quality certification.
The ISO 9000 is a quality administration standard that presents standards to build business
productivity and consumer loyalty through quality work. The objective of ISO 9000 is to install a
quality administration framework inside an association, expanding efficiency, lessening
superfluous expenses and assuring the nature of procedures and the items. The ISO 9000 is
material to organisation and associations from each part. The procedure arranged methodology
makes the standard relevant to support associations also. Its general rules take into account the
adaptability which is required for the present differing business world.
The significance of ISO 9000 is the significance of value. Like Foodstuff South Island Company
there are other companies which offers items and administrations yet it is those particular
companies including the Foodstuff South Island Company who put out the best items and
administrations proficiently that succeed. With the ISO 9000 the Foodstuff South Island
Company Recognises the foundation of the issue and in this way the company finds solution
regarding problems. In addition to the fact that business recognize the significance of the ISO
9000 yet additionally the client understands the significance of value (Noe, Hollenbeck, Gerhart
& Wright, 2017).

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Question 2
2.1 Briefly discussing the overall points of each three awards of distinction
The Baldrige Award perceives U.S. associations in the business, social insurance, training, and
charitable divisions for execution brilliance. The Baldrige Award is the main formal
acknowledgment of the execution perfection of both open and private U.S. associations given by
the President of the United States. The European Quality Award is given to organizations that
can exhibit brilliance in their administration of value and that their way to deal with all out
quality administration has added as per the general inclination of clients, representatives, and
different partners. The Deming Prize is considered as longest-running and one of the most
noteworthy honours on TQM. It perceives the two people for their commitments to the field of
Total Quality Management and organizations that have effectively executed TQM.
2.2 Analysing and comparing Baldrige Award and ISO certification
The purpose behind the Baldrige Award is to remember US organizations that exceed
expectations in quality administration. The honour advances the consciousness of value as an
indispensable aggressive component, the comprehension of value necessities, and the sharing of
effective quality techniques. The essential accentuation of Baldrige is on consumer loyalty.
The primary reason for ISO 9000 is to guarantee that essential quality framework is in legitimate
spot. The European Union requires ISO 9000 accreditation in huge numbers of its ventures.
Subsequently US organizations working together in the EU are progressively required to consent
to the ISO 9000 prerequisites. The essential accentuation of ISO is on documentation, execution
of value strategies and the making of value records that report the usage. The organisation which
will adopt both of the strategies first they will adopt the strategy of ISO 9000 as it ensures and
keeps value records (Gulia, Nagendra, Khare & Khanna, 2015).

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Question 3
3.1 Discussing about Six Sigma Program and evaluating how business process improve
approach works
Six Sigma is a procedure improvement strategy intended to improve forms by diminishing
changeability and deformities. The term Sigma is utilized to depict the nature of a procedure.
The objective is to improve each procedure to the Six Sigma level importance 3.4 deformities for
each one million open doors by taking out waste to create steady and unsurprising outcomes. In a
business work environment, Six Sigma centres around improving one piece of an association at
any given moment, basically recognizing broken pieces and fixing them to improve quality and
productivity. Six Sigma is important when attempting to improve departmental procedures, yet it
might battle when faced with adjusting huge scale issues.
3.2 Analysing how lean operation and six sigma technique integrate with continuous
program on business operation
Lean and six sigma are industry-perceived methods of insight for business improvement. At the
point when connected to production network, they can drive significant outcomes. While six
sigma is profoundly process-centered, inventory network is centred on the whole esteem stream,
from procedure to process. Lean and six sigma join both lean and six sigma philosophies
together, so as to dispense with waste and enhance forms. This should be possible through
lessening waste brought about by transportation, stock, movement, pausing, overproduction and
over-preparing, just as limiting imperfections in fabricated items. It gives the upper hand and
separation that such huge numbers of organizations require (Zeng, Phan & Matsui, 2015).

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Part C
Question 1 Scenario
1.1 Categorizing complaints
The given complaints are on the basis of the company’s administrative and organisational
loopholes that are creating the faults in their services during the year. Most of the complaints
such as store too warm, eggs cracked, expired fish and milks are the indication of poor
management operations and administrative works.
1.2 Choosing and analyzing basic quality tools for improvement
It is to be mentioned that that quality management tools are very unimportant for a company to
mitigate quality issues.. IN this context it can be said that the quality checking and administrative
operations and observations are to b improved and to be checked with regular observations
(Khudia, Zamirai, Samadi & Mahlke, 2015).
1.3 Cause and effect diagram
Cause and effect diagram shows the causes of events and the impact it has on the company’s
operational activities:

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1.4 Analysis
According to the above discussion it is observed that the improvisation of the management
operations and administrative works are important for the coamy as the complaints from the
customers mostly includes the lack of administrative operations of the company.
Question 2 Charts
2.1 Computations
Number of Proportion
Sample Defectives Defective
p
UCL
LCL
1 10 0.020 0.01 0.0670 0.0000

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2 8 0.016 0.01 0.0670 0.0000
3 4 0.008 0.01 0.0670 0.0000
4 2 0.004 0.01 0.0670 0.0000
5 2 0.004 0.01 0.0670 0.0000
6 0 0.000 0.01 0.0670 0.0000
7 0 0.000 0.01 0.0670 0.0000
8 0 0.000 0.01 0.0670 0.0000
9 15 0.030 0.01 0.0670 0.0000
10 8 0.016 0.01 0.0670 0.0000
11 6 0.012 0.01 0.0670 0.0000
12 8 0.016 0.01 0.0670 0.0000
13 9 0.018 0.01 0.0670 0.0000
14 10 0.020 0.01 0.0670 0.0000
15 11 0.022 0.01 0.0670 0.0000
16 6 0.012 0.01 0.0670 0.0000
17 5 0.010 0.01 0.0670 0.0000
18 4 0.008 0.01 0.0670 0.0000

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19 2 0.004 0.01 0.0670 0.0000
20 0 0.000 0.01 0.0670 0.0000
Total 110
p = 0.01
UCL = 0.07
LCL =
0.00
SP 0.01
2.2 Creating p-chart

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2.3 Commenting
It is to be said that commenting of the above computations it can be said that standard errors
within the sample are low and should be decreased further. Although it can be seen that P is
lower than UCL which is a positive sign for the company and it shows that the technical
department has quality control over here products (Gulia, Nagendra, Khare & Khanna, 2015).

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Conclusion
Reading and after analysing the entire assignment it has been concluded that Foodstuff South
Island Company which is present in New Zealand use the method of Total Quality Management.
The TQM helps the company to keep a proper consistency and to maintain a proper quality of
their products. It has also been concluded that ISO 9000 is very much important in global
business. With ISO 9000 and Total Quality Management, Six Sigma Program has also been
mentioned. It has been concluded that the Six Sigma Program is a kind of process through which
any defects on products can be removed.

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References
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