Eldon Tool: Quality Management and Business Performance Analysis

This report provides an in-depth analysis of quality management and organizational excellence, focusing on Eldon Tool and Engineering Limited. It begins with an introduction to quality management, its importance, and its impact on revenue and customer satisfaction. The report then explores underpinning theories, including Deming's and Crosby's theories, detailing their principles and application. It highlights the importance of good practices, such as dedicated employees, CRM maintenance, and strategic resource planning, for achieving sustainable business performance. The report also discusses various approaches to measure organizational status, including the system resource and goal approaches, and offers recommendations for improvement based on an "Excellence" assessment. The analysis covers aspects such as quality planning, assurance, and control, emphasizing customer satisfaction and long-term success. The report concludes with recommendations for enhancing quality management and business performance within the organization.

Individual analysis of the
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
K1.Appropriate underpinning theories and concepts of quality management for organisational
Excellence...............................................................................................................................1
K2 Importance of developing and applying good practices as a route to achieving sustainable
business performance.............................................................................................................4
S1 Various approaches to measure organization status, and recommendations for organization
improvement based on an “Excellence” assessment..............................................................5
S2 Critical assess any organisation using the “Excellence” framework and areas for
improvement...........................................................................................................................6
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Quality management is the act of managing all activities and tasks required to maintain a
desired level of excellence. This includes the determination of a quality policy , creating and
implementing quality planning and assurance, quality control and quality improvement. Quality
management tools help an organization to design and produce a product which the customer
wants according to their needs. This help an organization to increase companies revenues and
productivity. This process makes an organization a better place to work. Quality is important for
an organization to differentiates them with their competitors. The product quality is measured in
terms of performance, durability and reliability of an organization. The main aim of quality
management is to meet customers and enhancing their requirements and satisfy them by
fulfilling their needs. The quality of a product makes an important contribution to long term
revenue and profitability. The quality management reduce waste and inventory of an
organization. The expectations of a customer must be fulfilled as quality management is essential
for customer satisfaction which eventually leads to customer loyalty. Every organization must
have loyal custom er who would come back to the organization , whatever happens. Eldon Tool

and Engineering limited is an organization which was established on 19 September, 1975 in
Europe, to provide a sub-contract machining service to local and national industries. This report
demonstrates about the quality management for organizational excellence along with their
theories and concepts. In addition to this describes about the approaches to measure organization
status and performance, along with this describes, how to achieve sustainable business
performance.
TASK
K1.Appropriate underpinning theories and concepts of quality management for organisational
Excellence.
Quality management certify that an organization, product and service is consonant. This
concept includes quality planning, quality assurance, quality control and quality management.
Quality management focused on both product and services and also means to achieve it. The
purpose of quality policy involved management functions and activities (Beare, Caldwell, and
Millikan, 2018) . To achieve more consistent quality of a product, quality management uses
quality assurance and control of activity. The concept of quality management describes a
approach of management to long term success by customer satisfaction. Quality management is
crucial for an organization for the growth and performance of a company like Eldon Tool and
Engineering Limited. It is the key source in the competition of customer relationship. For
achieving more success in business, quality must be maintained at each level (Boulter, Bendell,
and Dahlgaard, 2013) . There are some underpinning theories of quality management for
organizational excellence :
1. Deming's Theory – This theory of deep knowledge is a management philosophy found in
system's theory. This theory is based on those 14 principles which were proposed to the
managers for modifying business effectiveness. This theory was described by W.
Edwards Deming. Deming also uses deming cycle which consists of Plan, Do, Check and
act. The main aim of using this cycle is to be stable and on going improvement. Deming's
system of fundamental knowledge consists of following four points :
 System appreciation – To understand the processing and working of Eldon Tool
and Engineering Limited company.
 Variation Knowledge – To understand the variation occurring in a company and
the causes of those variation.

 Knowledge Theory – The understanding of what can be known.
 Psychology Knowledge – The understanding of human nature.
The quality introduce as a topic, by being aware of the various types of knowledge
associated with an organization (Chiarini, 2012) . Quality involves modifying processes using
knowledge. The fourteen principles of Deming's theory of quality management are outlined
below :
1. Create Purpose for improvement
2. Adopt the new philosophy
3. Stop addiction on mass inspections
4. Stop awarding business based upon the price
5. Aim for continuous production and service betterment
6. Development on the job training
7. Implement cutting-edge methods for leadership
8. Abolish fear from the company
9. Break down barriers between departments
10. Eliminate exhortations, slogans and targets for the work force
11. Get rid of quotes and standards
12. Remove barriers preventing pride of technique
13. Ensure that everyone is trained and educated14. Make sure the top management structure supports the previous thirteen points.
2. Crosby's Theory - Another person who credited with starting the quality management
movement is Philip Crosby (Dahlgaard-Park, and et. al., 2013) . This is the one who
made the point that if people spend money on quality then that money is well spent. This
theory supports four absolutes of quality management and has the own list of fourteen
principles for the improvement of quality management. Crosby's four absolutes are :
 Quality is conformance to requirements
 Quality prevention is preferable to quality review
 Zero defects is the performance standard for quality
 Quality is measured in monetary terms- the price of disagreement
Philip Crosby also supports fourteen steps to continuous quality improvement, these are
given below:

1. Accomplish total commitment from management
2. Form a quality development team
3. Produce metrics for each quality improvement activity
4. Ascertain cost of quality and show how enhancement will contribute to gains
5. Train the supervisors properly
6. Motivate and inspire the employees to fix fault and keep issues logs
7. Generate a zero-defects committee
8. Ensure that employees and supervisors understand the steps to quality
9. Establish your company's commitment by holding a zero defects day
10. Goals are set on 30, 60, or 90 day schedule
11. Ascertain root causes of errors, get rid of them from processes
12. Organize incentives programs for employees
13. Create a quality meeting and hold regular meetings
14. Restate from step one.
K2 Importance of developing and applying good practices as a route to achieving sustainable
business performance.
The processes and methodologies of working in best way to get desired goal are known
as good practices. This help an organization to sustain for long term and also to achieve
remarkable milestones (Dahlgaard, and et. al., 2013) . Eldon Tool and Engineering Ltd. is one of
UK's leading organization which deals with engineering micro and macro tools like Engine
timing tools, Automotive hand tools, Couplings, etc. They can introduce good habits like
communication, equality, motivational and many other good practices in their organization
(Zink, 2012) . These all can help them to reduces their cost, saves time, makes learning culture,
increases knowledge in employees, and many other also. Some of good practices which can help
this organization are:- Employ dedicated person - This practice states that an organization must have a habit to
heir those people which are dedicated to work and have keen for working. This help
Eldon Tool and Engineering Ltd. to select only those employees who can give their best
to the organization. This also helps them to create a staff which is honest and dedicated to
work (Delić, and et. al., 2014). This also help them in making focused team, which have

ability to work in difficult situations and also have ability to implement innovation to
their working. SLA between marketing and business development – Here an agreement between
marketing and production team take place which states service level expected by service
provider. Eldon Tool and Engineering Ltd. is an organization which have a huge chain of
marketing to sales. This habit of interaction between sales and production team help them
to maintain the quality of product and also help to understand the trending demand in
market. Along with this, it help them in providing appropriate information that what is
trend in market and what changes can help them in fulfilling the changing needs of
customers. Identify ideal clients – Here agency identifies their ideal clients which are best and most
profitable for the organization. Eldon Tool and Engineering Ltd. has many clients all over
Europe and out side it, but they have to make a list of most trustable clients and have to
make strategies by which they can attract more clients like them. This help them to
increase organizational profit and also help to increase the business globally (Doeleman,
Ten Have, and Ahaus, 2014). This also help them in making improvement in the
relationship between organisation and ideal customers by which number of loyal
customers get increased. Maintain CRM – Team of sales and management have to maintain a CRM of their
clients, so that they can maintain the relationship status between client and company.
This help Eldon Tool and Engineering Ltd. to make more organised system, by which
they can supervise and improve their relation with clients. This also help to monitor the
reviews given by clients to their sales person either they are positive or negative. This
will make their firm to know about relations ans problems with clients which can be
solved for further good experience (Ebrahimi, and Sadeghi, 2013). Along with this, CRM
use to maintain customer relationship with organisation, so that organisation can make
changes in their policies according to that. Brief about resource – Here organization list the resources needed by them in future to
achieve goals and out of them what they have as their assets, also what they have to
introduce to system. Eldon Tool and Engineering Ltd. have a long list of resources which
are useful assets for them in terms of present as well as future. But technology is

changing very faster and to win the race they to invest in some resources which can make
them one step forward of their competitors (Oakland, 2012). Therefore, it is very much
important for them to make strategies which will help them in studying the technologies
which are good for them and also which are not going to old in very few time period. Test plans – Making and implementing plan direct on a large platform can cost them a
huge amount. Eldon Tool and Engineering Ltd. have a large source of investment, but
failure of any plan can cause them a big loss of economy. To avoid this, before
implementing plan on large scale they can make the plan go through a testing phase. In
testing phase they can implement that plan on very small so that any error in plan get
rectified.
 Know when to move – This is one of the best and important habit for an organization.
Here an organization have knowledge about when they to put some process on hold or
when they have to move on. Eldon Tool and Engineering Ltd. have large projects and
invest in millions and also get succeeds, but some time it goes in opposite direction and
some situations occurs like no response from investment or it meet to failure. In these
types of cases company have to know when they have to put it on rest or when they have
to move on (Gimenez-Espin, Jiménez-Jiménez, and Martínez-Costa, 2013).
S1 Various approaches to measure organization status, and recommendations for organization
improvement based on an “Excellence” assessment.
It is very necessary for an organization to check the status regarding to profits, resources,
goals, strategies, and functioning as internally as well as externally to organization. For this some
approaches which Eldon Tool and Engineering Ltd. can use are:- System resource approach – This approach focuses on input of an organization. In this
they identifies the resources owned by organization and also which they will need in
future to extend their business. This will help Eldon Tool and Engineering Ltd. to avoid
the problem of low productivity and performance. Goal Approach – This approach focuses on output of an organization. Here the degree of
goal achieved by them get identified. Eldon Tool and Engineering Ltd. use this approach
to verify that how much the goal have achieved. This will help them to modify their
strategies according to degree of goal achieved (Hoque, 2013) .

 Strategic constituencies approach – Main focus of this is on the groups have a stack in
organization such as suppliers, lenders, participants, customers, and others. Eldon Tool
and Engineering Ltd. can make some strategies related to all these groups which directly
or indirectly affect their organization. This will help them to improve efficiency of
working and also help to improve outputs of organization.
Eldon Tool and Engineering Ltd. has covered a large area of market in Europe and all
over the world also. They long list of resources as well as have a great financial condition. In
future persistence, it is recommended to company that, they can make some strategies to deal and
improve relations with ideal clients. They also can invest to make some plants for production
where the investment will be low but the graph of production always goes on hike. They are also
capable to improve current resources which are implemented in their plants and this will help
them to increase production. Change in technology is very frequent, so they can invest in
technologies which do not get obsolete frequently (Lee, and Lee, 2014) .
S2 Critical assess any organisation using the “Excellence” framework and areas for
improvement.
Eldon Tool and Engineering Ltd. is a big organization of Europe, which use to
manufacture tool of engineering. They uses an excellent framework in organization to maintain
their sales, production and marketing. Company have a great set of tools for producing quality
products and also have a good management system which help them to make coordination
between their available resources. They provide work shops and training sessions on regular time
interval which help the employees to improve their skills and perform well. They have many
ideal clients through all over the Europe as well as world also. Many of technologies they are
using are latest and up-to date, which help them to increase in production and also to produce
new and useful tools. They have a well maintained CRM ( Customer Review Management )
which help them to know and maintain their relations with clients, by this they can make changes
in their policies according to customer reviews and can make more effective policy to attract
ideal clients. They can make some changes in their organization and policies in favour to
employees and customers, like they can make some policies to attract ideal clients from all over
the world rather then they have. They can make some policies by which their employees get
benefit and they feel secure with organization. They can introduce some new technologies in
order to improve their production and quality of goods (Loch, and et. al., 2013) . They also can

take their production house and their marketing and sales department to those countries who can
provide more facilities and relaxation in tax policies. They can make some changes with their
recruitment policies like they can recruit only those who have ability to work and who is keen to
work (Mok, Sparks, and Kadampully, 2013) . This help them to make their force responsible,
hard-working and give their best to organization.
CONCLUSION
It is observed that quality management plays crucial role in an organization as this
enhances the quality of all the functions of an organization. This process affect everyone in the
organization and preparing quality awareness among all employees of an organization and
making a way of life. This is the continuous journey towards organizational excellence. Quality
management is people's process and for the success of an organization the involvement of
superiors/ top management is essential. Employee training is main for many quality management
programs such as set-up and practices of customer satisfaction systems, and acceptance of new
quality concepts. The report concluded that the quality management principles are getting
appreciation in Indian industries but still few industries view quality management as internal
approach to their manufacturing and servicing style. Thus, in a quality environment , the
employees need to understand the aim of customer satisfaction. The quality assurance for the
commitment is compulsory for the quality management execution to begin. Finally, this is to
conclude that the organizations who want to achieve customer satisfaction, ROI and constant
improvement in firm then they have to focus on the evolution/development of their human
resources. Quality management is the theory which changes the working environment of a firm
totally to follow this concept, and the technique involved is extensive as well as intensive
education and training and this is must to make the quality management group work. Even the
quality management system authorize constant development at all levels thereby demanding a
system constant up-gradation of skill level of all the employees which can happen only by
continuous training and education.
RECOMMENDATIONS
Quality management is a wide philosophy for an organization with its core values centred
on improving the product quality and processes quality to enhance customers expectations. This
mean that everyone in the organization, from superiors to subordinates plays a role to provide

product quality and services to the customers. Even when suppliers and customers are related to
quality management. Therefore to achieve excellence performance of an organizations, the firm
need to insert collaboration of employees. The success and goals achievement of an organization
is totally based on employee involvement. All the high-grade management practices can be
grounded unless the employees are with the organizations goals and objectives. These are the
employees who differentiates a top-most organization and an average organization with both
working in the similar marketplace with the similar resources. Hence, basic of any good
management practices is based upon employee participation and this can achieved by giving
them training and development programme. This training should be start from the superiors of
the organization as their involvement is mandatory in the implementation of quality
management. The superiors have to include themselves in the companies mission and vision. The
report suggests the following points to be followed by the organization who want to gain
excellence performance and want to implement the quality management in their organization, the
points are outlined below:
1. Organization should focus on big 'Q'.
2. Organization should adopt PDCA cycle
3. Absorb quality management system
4. Involvement of Top management is necessary for an organization success
5. Training and development session for employees
6. Employee welfare and quality of work life
7. Reward and recognition for employees
8. Empowerment of employees to result in continuous improvement in the organization
9. The performance appraisal and provide promotions to employees
10. Suggestions System for the employees, so that they can suggest improvement for the
organization.
11. Employee satisfaction system must be followed, because it is as important as customer
satisfaction.

REFERENCES
Books and Journals
Beare, H., Caldwell, B. J. and Millikan, R. H., 2018. Creating an excellent school: Some new
management techniques. Routledge.
Boulter, L., Bendell, T. and Dahlgaard, J., 2013. Total quality beyond North America: A
comparative analysis of the performance of European Excellence Award winners.
International Journal of Operations & Production Management. 33(2). pp.197-215.