Analysis of Quality Management Practices at Nike Corporation

This report provides an in-depth analysis of Nike's quality management practices, emphasizing Total Quality Management (TQM) as a core strategy. It explores how Nike implements TQM to enhance product quality, improve processes, and ensure customer satisfaction. The report details the use of the PDCA cycle, flowcharts, and customer service surveys. It also highlights the significance of corrective actions, design verification, and the Pareto chart in identifying and addressing quality issues. Furthermore, the report examines Nike's target audience, anticipatory cost recovery methods, and key quality management terms. The analysis underscores Nike's commitment to continuous improvement, supplier certification, and the Six Sigma process, illustrating how these elements contribute to the company's success in the competitive apparel and equipment market.

Quality Management: Nike
Company
student’s Name
Institution Affiliation

Quality Management
 Total quality management (TQM) involves uninterrupted enhancement of
organizational products, services, or processes to heighten client fulfillment and
company performance (Sadikoglu & Olcay, 2014).
 Quality improvement influences parameters such as
 Productivity: an increase in output per employee-hour is experienced.
 Cycle time: the period needed to complete practices.
 Human safety: human wellbeing is improved through processes such as fail-safe designs and
error proofing.
 Environment is improved through toxic emission reduction (Kamonja, Liang, Sohail, & Khan,
2014).

Nike, Inc.
 Nike, Inc. is among the leading and reputable organizations in the U.S.
 It is involved in the manufacturing, development, design as well as marketing and
sales of apparel, footwear, and equipment.
 Nike Inc. is one of the company’s that implements TQM
 At Nike, quality is an essential aspect.
 The company emphasizes quality not only in its product but also in its processes with
the intention of fulfilling the expectations of clients and ensuring the quality of
products.
 This is achieved through application of TQM in the manufacturing of the sports
apparel, shoes, and equipment.
 Nike utilizes flow charts to illustrate step by step procedures when mapping ideas
out for affairs such as launch of new products
 Continuous improvements is utilized to guarantee continuous growth and
prosperities.
 Customer service surveys are used to gather opinions of customers as a way of
keeping the company aware of how to satisfy them.
 Quality of service is ensured through supplier certification and inspection.
 The company routinely implements the six sigma processes.

Nike’s Plan-Do-Study-Act Cycle
 Plan: Nike’s top tire management assesses and
examines the current operations and processes. This
allows the company to develop organizational plan
accordingly. Here, problems are identified, data are
gathered, and procedures and processes are
documented.
 Do: changes that have occurred within the operations
are documented with the aim of examining their
credibility as well as effectiveness.
 Study: the collected data are examined to determine
whether the pre-defined objectives are being met.
 Act: the results of the plan are then communicated to
the whole company and stakeholders. Suggestions
are highly encouraged to help in improvements.

Target Audience & Anticipatory
Cost Recovery
 Target Audience
 Both males and females
 People aged between 18 and 35 years
 Athletes
 Sports fan
 People in favor of sport equipment of
high quality
 Anticipatory Cost Recovery
 Costs are mainly recovered through sale
of the products.

Quality Management Terms
 Total quality management (TQM)
 A strategy of management of ensuring long-term success by satisfying clients.
 Organizational stakeholders collaborate to improve the processes, products, and services.
 It offers a unified vision for systematic transformation.
 Quality management system (QMS)
 A group of internal guidelines defined by a set of policies, recognized processes, records, and
procedures.
 It is an official system that records the processes for attaining quality goals and rules.
 QMS improves quality outcomes by ensuring that customer expectations are met. This
promotes confidence in the company, an aspect that leads to more customers, sales, and
repeat business.

Cont..
 Corrective action
 activity meant to correct a non-conformity by finding the root cause of the problem.
 Corrective action aims to do away with the cause of nonconformance (Sharonina, 2019).
 Corrective actions improve the processes of an organization by eliminating loopholes.
 It prevents occurrence as well as reoccurrence of nonconformities.
 Design verification and validation
 the act of comparing the design outputs and inputs to ensure all requirements are met.
 this process affects production process while defining functionality of the product and the
customer perception.
 It ensures the designed product is as intended.

Cont..
 PDCA cycle
 a framework for planning, doing, checking, or acting.
 It offers an effective strategy of solving problems as well as managing change.
 Organizations can use the cycle to improve and optimize management.
 This is made possible by the continuous production process and control of tasks.

Cont..
 Customer satisfaction
 the extent to which customers perceive that their requirements have been met by your
product or service.
 Customers with high satisfaction tend to be loyal. Loyal customers tend to repurchase a
product.
 Customer satisfaction has a strong effect on the competitiveness of products and
organizations (Suchanek & Klalova, 2017).
 Competitiveness of a product or company determines its long-term success in the market or
industry.

Pareto Diagram
 Pareto chart is an instrument that organizes items in
the order of the magnitude of their contribution
(Magar & Shinde, 2014).
 As a result, items exerting maximum effect are
identified.
 This instrument is used in quality improvement for
purposes such as:
 Prioritizing development of corrective action team to
solve problems.
 Prioritizing projects of improvement
 Recognizing products on which complaints are received
often,
 Recognizing the most frequent reasons for rejection, and
 Recognizing the most often nature of complaints

Cont..
 Pareto chart is based on a principle that outlines that approximately 80% of the
problems can be attributed to 20% of the causes.
 Pareto analysis thus focuses on identifying the few vital aspects from the many trivial
aspects.
 In quality controls, the Pareto chart can be used to:
 Analyze the frequency of defects in a particular process,
 Analyze broad causes of a phenomenon by examining their individual elements,
 To assist in communicating the significance of causes or hitches, and
 To assist in focusing efforts on the most significant parameters.

References
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 Magar, V.M. & Shinde, V.B. (2014). Applications of 7 quality control (7QC) tools for continuous improvement of
manufacturing process. International Journal of Engineering Research and General Science, 2(4), 364-371.
 Martini, A., Rahyuda, I., Sintaasih, D., & Piartrini, P. (2018). The Influence of Competency on Employee Performance
through Organizational Commitment Dimension. Journal of Business and Management (IOSR-JBM), 20(2), 29-37.
 Sadikoglu, E. & Olcay, H. (2014). The effects of total quality management practices on performance and the
reasons of and the barriers to TQM practices in Turkey. Advances in Decision Sciences. 2014, article id 537605.
 Sharonina, T.N. (2019). Corrective and preventive actions in quality management system. УНИВЕРСИТЕТ им. В.И.
ВЕРНАДСКОГО, 7-9(30), 283-289.
 Suchanek, P. & Kralova, M. (2017). Customer satisfaction, loyalty, knowledge and competitiveness in the food
industry. Economic Research, 32(1).