Strategic Quality and System Management Analysis: Jones FACTORY Report

This report analyzes the strategic quality and system management practices within Jones FACTORY, a fashion apparel manufacturer. It explores the importance of effective operations management in achieving organizational objectives, evaluating the success of existing processes, and highlighting the benefits of innovation, product quality, and risk reduction. The report delves into the significance of effective quality management, emphasizing customer satisfaction and the use of tools like Pareto analysis and flowcharts. It proposes a strategic quality plan for improving performance, including defining tools and resources for strategic change, and discusses the implications and monitoring of such a plan. Furthermore, it covers the implementation of strategic quality changes, fostering a quality culture, and assessing the outcomes and areas for improvement. The report concludes with a critical evaluation of the current processes, emphasizing the need for strategic frameworks and employee training to enhance quality and profitability within Jones FACTORY.

Strategic Quality and System Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
TASK 1...........................................................................................................................................2
1.1 Importance of effective operation management in achieving organisational objectives.....2
1.2 Evaluation of success of existing operations management processes..................................3
TASK 2 ..........................................................................................................................................4
2.1 Importance of effective quality management.......................................................................4
2.2 Evaluating success of existing quality management processes............................................5
TASK 3...........................................................................................................................................6
3.1 A strategic quality plan to improve the quality of the performance of the organization......6
3.2 Defining tools, resources and systems in the processes of the business in strategic quality
....................................................................................................................................................7
change.........................................................................................................................................7
3.3 Implications of a strategic plan.............................................................................................8
3.4 Monitoring the implementation of a strategic plan..............................................................8
TASK 4...........................................................................................................................................9
4.1 Implementation of strategic quality change in an organisation............................................9
4.2 A quality culture embedded in an organisation.................................................................10
4.3 Monitoring implementation of a strategic quality change..................................................10
TASK 5.........................................................................................................................................11
5.1 Outcomes of a strategic quality change for organisation...................................................11
5.2 Areas requiring improvement for a strategic quality change.............................................11
CONCLUSION.............................................................................................................................12
REFERENCES..............................................................................................................................13
1

INTRODUCTION
Strategic Quality management is a term which focuses on formulating strategies as well
as developing business strategies and plans which in turn best suited for business organisation.
With the help of proper strategic quality planning an organisation can easily achieve and meet its
total quality procedures as required for attaining customer satisfaction thereby improving the
performance of business organisation too. For this project, Jones FACTORY has been selected
which manufactures fashion apparels and accessories for women including jackets, coats, down
coats etc. This report will focus on the importance of adoption of effective operation and quality
management for successful attainment of Jones FACTORY goals and objectives. Further, in
this, role of managing quality will be explained in the report as required for improving the
performance as well as for meeting the criteria & expectation level of customers effectively. It
also depicts aspects related to strategic quality change and its importance in the context of
business organisation. Along with this, report will also shed light on the process involved in the
implementation of strategic quality change in Jones FACTORY for better development and
growth of organisation as well as to attain maximum customer satisfaction level.
MAIN BODY
TASK 1
1.1 Importance of effective operation management in achieving organisational objectives.
Operation management is a term which is concern with the process of designing,
managing and improving the operational functions of the business system which enables the
organization in achieving effective production of goods and services by utilizing the resource
procured in sustainable manner thereby converting these resources into outputs (Takagi and
Tamura, Fujitsu, 2019). Importance of effective operation management in achieving Jones
FACTORY objectives includes as follows:
1. Improves productivity - Operation management in Jones FACTORY helps in
handling the areas related to designing, manufacturing, production, operations and
system maintenance for ensuring better production of goods and services. By
adopting sound business policies and strategies, the overall productivity of business
operations can be improved further and profitability can be increased.
2

2. Boosting innovation – Jones FACTORY should adopt new & better improved
technologies and methods in its business processes related to production and
manufacturing function for more growth and business development (Patyal and
Maddulety, 2015). However, it is to be critically evaluated that by boosting innovation it
will increase the cost of operations as well. By making use of latest and advance
technological aspect, innovating ideas and concepts related to the business operations
such as production and manufacturing functions can be performed in a better manner,
3. Enhancing product quality – Operation management team of Jones FACTORY always
emphasizes on improving the quality, reliability of the product produce and ensures that
production function is carried out in a cost effective manner which results in
maximization of profit levels (Papp, 2018). However, it is to be critically evaluated that
by enhancing quality of product, the cost of production will also increase resulting in
improvement in performance level.4. Reducing risk of failure – Operation management helps in identifying the emerging
opportunities and threats to Jones FACTORY and makes the best suitable business
strategies and plans for grabbing the advantage from opportunity arises and for
minimizing the risk of failure. Timely identification of risk and threats to business
operations can help company in mitigating business losses.5. Identifying customer needs – One of most important role of operation management is to
identify the taste and preference of Jones FACTORY's customer and their needs and thus
producing those goods and services which leads to satisfaction among them.
6. Prioritizing the challenge – Role of operation management includes monitoring the
functioning of areas (like marketing, finance, production, manufacturing etc.) for better
and smooth functioning of Jones FACTORY. It emphasizes on development of these
areas by making strong and sound business strategies and plans and taking challenges of
these areas on priority basis for seeking advantage from it (Takagi and Tamura, Fujitsu,
2019). Considering market opportunities and making use of it can help Jones in
minimizing its business challenges.
3

1.2 Evaluation of success of existing operations management processes.
By adopting effective operation management process in the business organization, it can
lead to successful achievement of business goals in following ways:
1. Strengthening customer relationships – By delivering quality products and services to
customer as per their taste and preferences, needs t Jones FACTORY is able to achieving
high level of customer satisfaction which strengthens the relationship between company
and customers (Takagi and Tamura, Fujitsu, 2019).
2. Customer satisfaction – By adopting new, innovative and better improved technologies
and production methods, Jones FACTORY can improves its production capacities,
quality as well as the performance. This will help in meeting customer satisfaction as the
company is able to deliver quality products and services after conducting of market
survey related to customer taste & preferences, needs (Takagi and Tamura, Fujitsu,
2019).
3. Enhancing transparency – Transparency brings growth in the business as it provides the
facility to customers to review how the product is being produced i.e. can have
knowledge of product development cycle which is used by organization for carrying on
production function. It helps employees of Jones FACTORY in identifying mistakes,
opportunities which are missed and also focuses on areas that requires improvement
(Takagi and Tamura, 2019).
4. Increase profit margin – With successful implementation of business strategies and
plans in Jones FACTORY, the company can achieve its goals and business objectives in
4

a cost effective manner which results in maximization of profit level (Takagi and
Tamura, Fujitsu, 2019).
However, it is to critically evaluate that for attaining success business unit requires to make
high level of investment in research & development. This in turn creates financial burden for the
company. Further, for ensuring smooth functioning of production process business unit has to
conduct training session for personnel which in turn also imposes high cost and thereby places
adverse impact on company’s profitability. As per DMAIC model, it can be presented that
quality process undertaken by Jones Factory is informal. This in turn resulted into several faulty
product which places direct and adverse impact on company’s profitability. Hence, business unit
needs to undertake effectual measures operation management for ensuring quality. Thus, for
making improvement in the existing position firm needs to focus on developing strategic
framework.
Tools use for evaluating the success of business operations are as follows:
1. Cost benefit analysis – With the help of this tool, Jones can assess the total amount of
cost expenditure incurred in carrying on the whole business processes in comparison
with the profit or revenue made for a particular time period.
2. Market research – By conducting market research and survey, Jones can identify the
success level of its products and services among its customers and in the marketplace. It
also helps in ascertaining the level of changes as required for making business more
profitable.
3. SWOT Analysis – By conducting SWOT analysis, Jones will be able to determine al its
strengthens, weaknesses, opportunities and threats. This further help in taking requisite
measures for gaining competitive advantages as well.
TASK 2
2.1 Importance of effective quality management.
Quality management is a process which involves activities related to management of
quality procedures within a business organization. This process emphasizes on determination of
policy adopted related to quality, formulation and implementation of strategies and planning
related to quality improvement and its control i.e. Total Quality Management (Morden, 2016).
The effective Quality management comes with proper strategic quality planning which is
5

considered as a process of identifying the best quality measures and procedures to manage
quality for current as well as future business growth and development. Importance of effective
quality management for Jones FACTORY are as follows:
1. Quality management team in Jones FACTORY emphasizes on customer satisfaction by
improving the quality of its products & services which builds customer loyalty.
2. This tool of quality management helps Jones FACTORY in evolving customer wants and
then produce product accordingly. By implementing effective quality management
system, Jones FACTORY can increase its productivity thereby maximization of profit
margin.
4. It helps Jones FACTORY in minimizing waste and inventory.
5. It helps Jones FACTORY in improving the business processes, products & service
quality and the working culture itself.
Quality of Jones FACTORY can be managed with the help of Total quality
management tools such as:
1. Pie charts & Bar graphs – helps in evaluating and comparing data such as budgets.
2. Histogram – helps in illustrating and examination of various elements of data for
making decision related to them such as market survey.
3. Pareto Analysis – helps in analyzing data related to the frequency of problems or
causes occurring in the process. And also helps in identifying most significant
problem (Nanda, 2016).
4. Flow charts – It shows solution in form of diagram I.e. by step to solve a problem and
identify area which is having problem.
2.2 Evaluating success of existing quality management processes.
Quality management is a process which involves activities related to management of
quality procedures within a business organization. In Jones FACTORY, the quality of its
product is decreasing resulting in low profit margins. As the case specify that there is an increase
in returns number of faulty products because of informal production process used by company
(Ruokonen and Temmes, 2019). This has led to increase in import of quality product for
satisfying customer needs which has led to decline in the profit margins and turnover of the
6

company. For overcoming from this situation, Jones FACTORY should focus on improving its
quality by:
1. Define quality clearly – Quality can only be known when the end user of product or
customer uses the product & services of company and provide feedback. After
consumption, if customer is satisfied then no changes is required in quality otherwise
quality control measures has to made.
2. Track mistakes using Pareto rule – By using Parento Analysis, company can track the
major mistake or error coming in quality procedure. On the critical note, it is time
intensive exercise which in turn requires efficient and talented personnel.
3. Choose a quality tool – Adopt a quality tool for monitoring quality of the product
produced, it will help in quicker analysis of any fault in the quality and performance and
thus company can change it by implementing business strategies and plans accordingly.
4. Invest in training – To improve quality of products produced or manufactured, the
company should organize training session, workshops for making employees of business
organization aware about new and better ways of production, using technologies for
making quality products as per customer needs (Fooladvand, Yarmohammadian and
Shahtalebi, 2015). However, it is to be critically evaluated that not only training is
enough for ensuring effectual quality management within the firm. Hence, firm also
needs to lay focus on taking feedback from personnel on periodical basis. This in turn
helps in assessing deficiency and thereby gives indication for improvement.
5. Organize quality circles – Company can solve its quality problem by organizing a team
who will access the business processes & operational areas facing quality problem.
Preventive measures can help in improving quality and performance.
Tools that can help Jones in assessing the success of its quality management are as follows:
1. Customer review – By understanding the level of customer satisfaction, every business
organization can achieve high customer base. This can help Jones in making strong
customer relationship and profits as well.
2. Feedback – By seeking feedback, suggestions and reviews from the customer and other
business stakeholders regarding the quality, standard can help Jones in improving its
performance level.
7

3. Brand Loyalty – If the company is delivering quality product and services at affordable
prices, it will attract more customers. Satisfied customers will always prefer repurchasing
the same product and service of the company at any price level.
TASK 3
3.1 A strategic quality plan to improve the quality of the performance of the organization.
Planning a quality change is an essential aspect of every organization to improve the
organization's performance in relation to its processes and operations. Furthermore, planning a
strategic quality change wisely and execution of the appropriate changes in the present situation
enables the firm in improving the quality of its productivity (Androniceanu, 2017).
Change is important for Jones FACTORY, to meet the expectations of the customers, to
enhance sustainability of the business and to create a competitive edge against its rivalry. The
market is inevitable and changes frequently, due to the influence of the social network and huge
advertising campaigns. Jones FACTORY could not stick to the same marketing strategy,
existing customers and process of production (Cho, Jung and Linderman, 2017). Therefore,
Jones FACTORY has to take necessary strategic action to improve profitability, business
performance and for running its business with stability and growth in the long run. For example
– by implementing new and better improved business technology and process related to the
production function as used by the profit making rivalry company, can help Jones in improving
its business operational efficiency thereby making production operations more cost effective.
The company emphasizes on improving and maintaining the quality of the product in the
plan. Recently, it viewed that the product quality of the Jones FACTORY is very poor and the
importing is becoming more costly for it. However, the organization is now using total quality
management and training as a strategic quality change so that it could overcome and resolve the
quality problem faced by the customers. The main objective of such organization is to
maximize profitability by delivering quality products and services to the customers. Hence,
referring all the above depicted aspects it can be entailed that company’s plan in relation to
making improvement in production process and thereby quality is highly aligned with
organizational goal or objective. Moreover, through improving quality level business
organization would become able to gain competitive advantage and maximize profitability as
well.
8

Strategic quality plan in the context of Jones FACTORY-
 For making improvement in quality training session for personnel will be organized.
 Furthermore, TQM strategy will be applied for managing and enhancing quality level.
 Focus will be placed on improving quality via input given by R&D department.
3.2 Defining tools, resources and systems in the processes of the business in strategic quality
change.
The processes of the entity includes the no. of activities that determines the requirement
of the resources, systems and tools to function the tasks effectively and efficiently. The key
resources of the business are human, financial and physical that supports majorly to the quality
management and change. Physical resources- For improving the quality of the product and to increase the sales,
Jones FACTORY has upgraded its inventory management system, IT system and e-
commerce so that quick processing of the stock can be ascertained (Engert, Rauter, and
Baumgartner, 2016). The new system for better quality of the fabric has been
implemented so that organic cloth can be delivered to the customers. Physical resources
9
Strategic quality plan

include the quality of material, machine, land, system and the infrastructure which
considered as the useful resources because it relates with the effective and efficient
achievement of the goals. Using the quality material helps the organization in gaining the
sustainability and sound position in the market for the enterprise. Human resources- Management team and employees plays a vital role in the quality
improvement because all important tasks are operated by them. Jones FACTORY is
facilitating necessary training to the workers and building better supply chain so that
good relationship building can be achieved between the customers and the suppliers
(McAdam, Miller and McSorley, 2019). This leads to economies of scale and delivering
the product at right time, making customer delight. The system of the HR also acts as the
most important aspect of the human resources as they are the life blood of the business.
Effective implementation of the system brings the change in the strategic quality with
excellence. By imparting regular and updated training session, workshops human
resource of the company will be able to acquire knowledge about new, innovative,
creative and effective means of business operations, concepts, processes and procedures.
This can help them in performing at better level and results in enhancement of business
productivity and profitability level as well. Financial resources- Bonds and the internal cash-flows issued by Jones FACTORY
create sufficient funds for reinvesting into the business so that more returns and be
generated. Allocation of funds should be done in the right way so that company could
achieve a growing returns in the future. Innovation and technology should be adopted for
promoting the sales.
 Technology- Social media marketing and e-commerce acts as the effective tool to
communicate appropriate information for the customers in relation to the quality, style
and offers. By using Instagram, Facebook Jones FACTORY can directly connect to its
customers in order to get feedback and reviews related to the quality of the product and
its design (Gutierrez-Gutierrez, Barrales-Molina and Kaynak, 2018). By this way, the
enterprise can product quality products and can improve the design, style, pricing etc of
the product according to the specifications of the customers.
10

3.3 Implications of a strategic plan.
Mission statement states the overall purpose and objectives of the organization. The key
stakeholders of the Jones FACTORY are investors, suppliers, creditors, government and the tax
authorities whose decision making is greatly influenced by the strategic change in the quality of
products and services of the entity. Execution of the change strategies is counted as more
successful for focusing on all the stakeholders of enterprise. The objectives in the mission
statement contribute towards the loyalty of the customers on whom the business success is
dependent. Functioning as per the expectation of the business creates the value of the corporate
worldwide.
A good strategic planned quality change reflects the positive impact in the Jones
FACTORY. The changes introduce competitive power and wide opportunities for the entity to
create a healthy competition with its rivals. The organic material of the cloth and innovating
stylish and comfort wear designs enables the Jones FACTORY to create positioning in the
market share. Heavy expenditure on advertisement and sales promotion technique helps the firm
in gaining brand loyalty (Ruokonen and Temmes, 2019). Availability of the right proportion of
stock leads to increased sales and revenue. Jones FACTORY sales its product in its own brand
name, so high standard of quality and value can be deliver to the customers through a strategic
planned change. The quality change strategy executed in the enterprise builds a stronger brand
position and a large customer base has achieved by the company. By providing attractive
designs and a good color combination designs helps the entity in producing eye catching product
so that more and more people get attracted towards the item (Martin and et.al., 2019). Moreover,
this initiative develops the efficiency and morale of their human resources to work with
excellence and technological improvement enhanced the functioning of Jones FACTORY.
3.4 Monitoring the implementation of a strategic plan.
Various systems are available for monitoring and revising the implementation of the
strategic plan such as Total quality management, Bench marking, quality circles etc. Jones
FACTORY uses total quality management and Bench-marking to monitor the quality change
(Shahmi, 2019).
11