CAGUILLO, CHRISTINE JOY V.

| LEARNING AND INSIGHTS FOR TOPIC 6

As Total Quality Management promotes customer-focused process

improvements and total participation of the management processes, it has a big
contribution to a success of an organization. Considering all of its principals such as
continual growth, fact-based decision making, integrated systems, leadership and
engagement of people shall have a positive impact in achieving the goals and
objectives of an organization. Adaptability to changing and emerging market and
environmental conditions, higher productivity, higher profitability and better cost
management are just some of the benefits of an effective total quality
management. However, if the concepts have not been applied properly on the
industry, it may lead to failure.

There are many reasons to cite as to why Total Quality Management efforts
fails, which includes:

o Lack of a genuine quality culture

o Lack of top management support and commitment
o Over- and under-reliance on statistical process control (SPC)
methods
o Lack of proper training
o Lack of communication
o Lack of planning, time and resources

TQM is a long term process that will only show better results if has been
implemented consistently associated with dedication and patience from the top
management. While some of the companies are just focusing on the profit and are
not willing to invest on quality management, many established companies were
able to work out and reach their success on the industry. Indeed, as total quality
management requires a lot of training, development and improvement cost, it is
expensive to accomplish.

Nevertheless, there are other ways to achieve quality such as innovation,

proper planning and proper execution of the development that wants to be
attained. One of the best practices to be applied is the Theory of Inventive Problem
Solving (TRIZ) with proper tool techniques such as (1) ARIZ-Algorithm for Inventive
Problem Solving, (2) Su-Field Analysis, (3) Anticipatory Failure Determination, and
(4) Directed Product Evolution. These are the techniques which will enable the
organizations to prevent problems by identifying the possible risks that can be
encountered and getting all of the solutions out of it.

According to the principles of TRIZ, problems and solutions repeat across

industries and sciences and patterns of technical evolution repeat across industries
and sciences. Hence, innovations can be discovered by analyzing it properly and by
having an effective operational plan which will not cost a lot but will increase the
competitiveness and productivity of an organization.

DOWNFALL OF NOKIA (CASE STUDY)

In 1865, NOKIA was established as wood company and covers paper, power,
cable, radio, and television until it turned out to focus on telecommunications in
1990s. Through its strategy, product, services and innovations, NOKIA became the
most popular telecommunication brand in the world.

But in 2000s, NOKIA encountered sets of challenges. New software were

developed. Wireless and internet technologies were converging. Nokia’s one of the
biggest competitor in 2007 was Apple after they introduced IPhone, the world's
most popular phone today. NOKIA failed to compete with Apple because of the
advancement of technology and operating system software. The quality of their
products declines so fast by 2013.

After these challenges arises, Nokia failed to adapt changing environment:

the new technology era. They failed to innovate their products and services and still
stuck on the traditional strategies and decision making. This factor may be the
result of decision making of the top management of NOKIA. Top management is
responsible for controlling and overseeing the entire operation of the company. In
the case of NOKIA, its management changed frequently when the CEO has been
replaced twice.
 Due to changes in environment through management of NOKIA, it had an
effect on the morale of the employees to achieve their goals and visions as well as
their products in which they did not foresee since they are the leading company for
telecommunication during that time. On the other hand, their competitors are
working out on which trend will get the attention of the consumers.

CONLUSION

Internal factor that influenced the downfall of NOKIA is their failure on total quality
management while the external factor is the lack of innovation/ lack of direct
product evolution on their products and services.