sign in sign up
<<
Home , Evaluation

View metadata, citation and similar papers at core.ac.uk brought to you by CORE

provided by UGD Academic Repository

(JPMNT) Journal of Process – New Technologies, International Vol. 2, No.5, 2014.

EVALUATING THE SUCCESS OF THE COMPANY DESIGNING THE TQM

Elizabeta Mitreva (Corresponding author) Faculty of Tourism and Business Logistics, Goce Delcev University, Shtip PO box 201, „Krste Misirkov“No.10-A, Stip - 2000, R.Macedonia Tel: ++389 32 550914 E-mail: [email protected] Nako Tashkov Faculty of Tourism and Business Logistics, Goce Delcev University, Shtip Tel: ++389 32 550351 E-mail: [email protected]

Abstract • control of processes, products, This paper proposes a for evaluating resources, including corrective and the success of the designed and implemented preventive measures. So, the system for TQM (audit) and its application in some analysis of the measurements can Macedonian companies. identify opportunities for Successful application of this methodology can improvement and defect processes, only be achieved if business processes are designed products, resources; and implemented with optimal utilization of • improve processes and products. resources, in order to work out the best from the first time, no defects, no loss of time and to the Measurements can be used to satisfaction of all users. This methodology has predict the future behavior of found a practical application within same of the processes, products. Macedonian companies. The results displayed The assurance system is of universal possibility of application and visible fundamental significance, but to evaluate effects. what is to be measured you need to make a Keywords: methodology, evaluation, TQM strategy, techno - economic analysis based on quality system. comparing the cost of detecting defects and TQM and the outcomes assessment costs caused by these defects. movement To make a proper choice of measurement At the core of the "house of quality" in a properties, it is necessary that their company lies measuring of the collected performance in terms of accuracy, speed for business processes, in order to and scope of the examination, the type and understand, control, as well as to gather number of , is known. important information regarding products Both the intensity and scope of and services, and to improve their quality measurement and control of the properties and optimization business processes depend on their importance to the quality (Chepujnoska, 2009). and degree of accuracy. If the property is There are several reasons for introducing of special importance for the quality, then measurements (Dumke et al. 2006): 100% control is needed. Place of measurement and testing should be • understanding of process, products, determined by the control process. Some resources. It can serve as a basis for measurements are to be made on line future comparison; (online control), and others in the lab

44 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 2, No.5, 2014.

(offline control). The person who performs improvement process is the process of the measurement should be trained for that solving problems (Mitreva, 2010). kind of measurement, to know the character of that property measured The evaluation should be present at all (Mitreva, 2007). stages of the implementation of the business processes and the final result to Measurements in business metrology is give feedback on how well is done and done through examination what has been done as planned. The results that measure satisfaction / dissatisfaction are a powerful tool to further extend the of employees, and so on. Data cycle, i.e. to achieve the commitment of collection for satisfaction for the employees and the top management to quality of products / services should show continuous improvement. what measures companies should take to improve their satisfaction. Sources of Daily practice of each employee should not measurement can be objections, only be the control operations, but complaints, surveys, debates and so on employees must be trained to act (Mitreva, 2011). proactively, rather than be occupied with detection, you get the power and One of the key criteria for the Malcolm responsibility to correct their mistakes and Baldrige Award in the U.S. (McAdam et take out every problem about the quality al. 2002) and the European Quality Award that is discover. (EFQM, 2000), is the satisfaction of customers / users. In this paper a methodology for evaluating the success of the designed and For the enterprise to respond correctly, it is implemented system for TQM (audit) is important the objections or complaints of presented as part of the overall customers not to be interpreted incorrectly methodology for the design and and monitoring of their satisfaction should implementation of TQM system in be practiced continuously, thus creating a companies (Mitreva, 2010). valuable resource for strategic business analysis and management. Monitoring covers all subsystems of the "house of quality" in a company, as well as Top management is most responsible in the the criteria of the European Foundation for "house of quality" and it "holds" the four (EFQM, 1999) used pillars that are subsystems of the system of to assess the progress of the company in quality management (Mitreva, 2007). achieving business excellence. Verification Designing a system for measuring business of the TQM system must be part of the performance of a company and satisfaction daily care of . It of customers / users allows a systematic should be a function of time taking approach to the results or analysis and corrective measures. The results should detection of critical areas, determination of show what the company has achieved and losses, seeking for solutions to problems opportunities show how these results are and their successful implementation. In achieved. order to close the circle PDCA (Plan - Do - Control - Act) it is necessary to check the Proposed methodology for results and implement corrective measures evaluating the success of the in order to achieve spiral, continuous designed and implemented TQM improvement that will lead to new (AUDIT) system opportunities for improvement. The

45 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 2, No.5, 2014.

Self-assessment as a basic approach in the comparing the realized model with the application of integral methodology for the planned one. Monitoring should not only TQM system is of crucial importance for be for the quality products / services, but the proper application of the same. But also the adequacy of the TQM system in without sincere commitment of top the implementation of the quality management to apply this universal functions. The process of verification is integrated methodology, every other partial done through the following activities fig.1 attempt is condemned to failure. (Mitreva, 2010):

Self-assessment is accomplished through a multitude of documented procedures for

Fig.1: Success evaluation process

46 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 2, No.5, 2014.

successful domestic firms (Plan) Step 1: Plan for evaluating the compared with the practice of success of the designed and other successful companies that implemented TQM system. apply the TQM strategy.  The plan for evaluating the success Because it is an integrated methodology, it of TQM projected system is made should have a strategic character in order by the top management. to give the expected results.

Step 4: Preparation and study of the necessary standards and documents Step 2: Selection of evaluation team. necessary for the assessment. The evaluation team should consist of The team is necessary to make some people who have the following preparations before the start of the characteristics: evaluation, including:

• to understand the TQM  review of the quality , ; compared to the prepared • to communicate well with all ; levels in the company;  learning about the operations of the • have the power of observation; company; • possess rational thought and  choice of organizational units of the fact-finding; company to be reliable; • be thorough in research and  preparation of questionnaires with • conduct impartial assessment. different issues according to the The participation of experts in the request of the European quality evaluation process is necessary, especially award (EQA), because the checkup in providing expert advice on how needs to determine: companies continually improve the • how the behavioral measures existing model of TQM and create taken by top management and alternative programs for its application in other managers inspire, practice. support and promote the culture of TQM; Step 3: of evaluation team. • how the company formulates, In case if there are no qualified people to develops and reviews its evaluate, it is necessary to develop quality policy and strategy alternative training for application of and how it turns into plans integral methodology for designing and and actions; implementing TQM system as follows: • how the company provides employment potential; • course - training for self- • how the company effectively evaluation, users of the integrated and efficiently manages methodology will be provided resources; with extensive theoretical and • how the company identifies, practical of its use in manages and improves practice; processes; • Benchmarking workshops through • what the company undertakes examples of good practice, which in regard of meeting customer presents best practices and satisfaction;

47 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 2, No.5, 2014.

• what the company undertakes results); in regard of employees’  analysis of the company in relation satisfaction; to the environment • what the company is doing to (Benchmarking). meet the needs and The assessment is made by monitoring the expectations of local, national records as: and international community (voluntary and beyond legal • leaders publicly demonstrate obligations); personal responsibility towards the • what the company is doing in culture of TQM; terms of schedule to achieve • leaders support improvement (with the satisfaction of all those personal engagement), providing who have a financial interest the necessary resources; in the organization; • leaders engage in relationships with  discussion of the assessment plan customers, suppliers and other and obtain approval from the top external organizations; management; • leaders recognize and reward the  preparation of the plan review; efforts and results of staff.  submission of the plan for Records are required on whether the policy evaluation of the company; and strategy are based on information that  detailed introduction to the is: plan. a) relevant and complete;

(Do) Step 5: Evaluating the success of b) developed; the company designing the TQM system. c) means of communication and Monitoring covers all subsystems of the application; house of quality in a company, as well as d) regularly updated and improve the criteria of the European Foundation for them. Quality Management (EFQM) used to evaluate the progress of companies in Records are required for the treatment of achieving business excellence. Verification employees by: of the TQM system must be part of the daily care of strategic management. It a) planning and development of should be a function of timely taking employees as a business resource; corrective measures. b) supporting and developing the The evaluation concerns: capabilities of employees;

 analysis of the external c) continuously examining their environment (business trends, performance in meeting the legislation, sales, competition, objectives; customer satisfaction / customer, d) as employees turned on the satisfaction of providers, the business processes, as they are impact on the company); authorized to perform organizational  analysis of internal environment functions and how their results are (effectiveness, efficiency, structure recognized; and employee satisfaction, business

48 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 2, No.5, 2014.

e) how the organization accomplishes Required records to delight the effective dialogue with them; community:

f) how to take care of employees. a) how society sees and appreciates the company; Records are required for manages the: b) additional measures impact the a) financial resources; Company's undertaking.

b) informational resources; Required records for business results:

c) the relationship with suppliers and a) measurements of financial raw materials; performance of the company;

d) buildings, equipment and other b) additional measurements of the property, ie with technology and performance of the company. intellectual property of the organization. When checking every sector ( department) all the tools and Records are required for the: documentation needed should be made a) key processes to achieve success in available. the work; The check is done on all subsystems of the b) systematic management processes; TQM system in all sectors using specific questionnaires depending on the c) as processes are improved using subsystem. innovation and creativity; (Check) Step 6: Processing and analysis d) such processes are changing and of results. what are the effects of this change; In assessing the success of projected and e) as reviewed and completed to implemented system statistical methods improve the process. are used:

Records are required for the • assessment of the effects; satisfaction of customers / users: • preparation of the report; • presentation to top management or a) post the purchase of products / the national committee for business services and the company's excellence when the company relationship to them; would compete for the European Quality Award. b) additional measures for customer The results should show: what the satisfaction. company has achieved and opportunities Required records on employee satisfaction: show how these results are achieved. The report should state: a) the opinion of the company's employees; • purpose of the assessment;

b) additional measures for employee • summary of results; satisfaction. • methods of performing the monitoring;

49 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 2, No.5, 2014.

• detailed analysis of the results of This methodology found practical monitoring and applications in some companies (Mitreva et al. 2008; Lazarevska, 2007). The need • proposed corrective measures. for design and implementation of SOP for The fundamental concept of TQM system all business processes in order to achieve is to help companies build their own defined quality and to protect the approach to achieving business excellence. customers / users of defective products was emphasized. (Act) Step 7: Submitting assessment The top management of a car report to top management for taking reconstruction plant set out to perfect the corrective measures. system of quality management taking into All comments should be made in writing consideration the environment by reducing to the top management for taking waste, reducing pollution of air, water and corrective measures. soil, saving resources by monitoring the power consumption and material, and Notes and draft corrective measures adapting to all national and local laws and relating to: acts regarding the environment • difficulties arising during the (Mitreva et al. 2008). implementation of each of the This methodology is applied in the factory subsystems of TQM; for production of confectionary products, • clear picture portion of the which achieve defined quality, protect subsystem to be upgraded in the buyers / users of defective products, and next attempt; thereby increase the competitiveness of the • is there interest among teams and lant market, profitability, improve quality, employees to further enhance the and decreased the defects operating costs, TQM system; increase customer satisfaction and • do team members know and are employee participation in decision-making trained in the steps of the design (Lazarevska, 2007). This points to the fact methodology and implementation the universal application of this of each of the subsystems; methodology in practice, regardless of • rewards for success; which branch they belong to companies. • have you identified and understood results (achievements) and you see Conclusion the benefits of implementing TQM system; For this methodology to be effective • expansion of air for even greater application of information technology is a success. necessary. However, it should be noted Methodology for evaluating the success of that without education in these areas the designed and implemented system for application of this methodology is TQM (audit) as part of the overall impossible and therefore the following methodology for the design and benefits of the quality system could not be implementation of TQM system has assessed. The feedback as a result of the necessity of means greater participation of employees ongoing improvement of business in identifying and resolving problems processes (Mitreva, 2010). within the set of standards and the efforts made to continuously improve.

50 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 2, No.5, 2014.

It should be emphasized that the benefits EFQM, (2000). The EFQM Business Excellence of the introduction of this model is not Model, The European Foundation for Quality Management. (Available at: www.efqm.org.) seen immediately, but in the long run. That should not be a reason for canceling the Mitreva, E. (2010). Integral methodology for designing and implementing TQM system within initial initiative, because quality is a long the companies, Bigos, Skopje. term process. EFQM, (1999). Excellence Model Changes, pp. 6-29. References Mitreva, E., & Chepujnoska, V. (2008). Quality Chepujnoska, V. (2009). Management at the projection of the manufactural processes Quality - Theory, Science and Practice of regarding the environment protection, Seeu Technology - Metallurgical Engineering, Skopje, review, Vol.4, No. 1, Tetovo, 93-107. str.187-194. Lazarevska, V. (2007). Costs optimization in Dumke, R., et al. (2006). in Software production of confectionary, Master thesis, FTM, Process Measurement and Improvement, Skopje. International Conference on Software Process and Product Measurement, MENSURA, November. Winser, J., & Corney, W. (2001). Comparing practices for capturing bank customer feedback: Mitreva, E., & Cepujnoska, V. (2007). Internet versus traditional banking? Implementation of TQM Quality Concept in Benchmarking An International Journal, Vol. 8, Managing Information in Enterprise, Economic No.3, 240-250. Development, vol. 9, no.3 pg. 297, Skopje, 129- 143. National Institute of Standards & Technology. (1999). National Quality Award criteria. U.S. Mitreva, E., & Prodanoska, V. (2011). Department of Commerce, National Institute of Competitiveness among Macedonian companies. Standards and Technology. In: International conference - Process Technology and Environmental Protection (PTEP 2011), Nakata, Ch. (2002). Activating the marketing Zrenjanin, Serbia. concept in a global context: An MNC country managers’ perspective, International Marketing McAdam, R., & Kelly, M. (2002). A business Review, Vol. 19 No. 1, 39-64. excellence approach to generic benchmarking in SMEs, Benchmarking: An International Journal, Vol. 9, No. 1, 7-27.

51 www.japmnt.com