Lady Jane M.

Giango IEng 159- Quality Management

System
BSIE- III

Learning Task 2.1

1. A . The Coca Cola Company
The Coca Cola Company implement the Total Quality Management System that help
contribute to its success in the global beverage industry. It offers several positive effects
to the Company, such as :

 The implementation of Total Quality Management (TQM) has had an impact, on the
high quality of Coca Cola products. As a result consumers have developed trust and
loyalty towards the brand. They rely on the taste and quality of Coca Cola beverages,
which has contributed to the brand’s standing success.
 Additionally, Total Quality Management helps company enhanced customer
satisfaction, by prioritizing customer needs and preferences Coca Cola has
successfully tailored its products to meet consumer expectations.
 Coca-Cola’s commitment to TQM has helped minimize defects in its production
processes, leading to less waste and higher operational efficiency. Through
improvement initiatives Coca Cola has optimized its manufacturing processes
leading to cost reductions, this enhanced efficiency which ultimately contributed to
profitability.
 The principles of TQM also extend to supplier relationships at Coca Cola. The
company’s commitment to quality has fostered partnerships with suppliers ensuring
standards, for ingredients and materials used in their products.
 Moreover, the use of data and analytics in TQM has allowed Coca-Cola to make
informed decisions about product formulations, packaging, and distribution.
 TQM encourages a culture of innovation and continuous learning at Coca Cola. Over
the years this mindset has allowed the company to introduce product lines and
packaging innovations that keep their offerings fresh and appealing to a range of
consumers.
 Lastly, TQM also emphasizes sustainability and environmental responsibility, which's
something Coca Cola actively incorporates into its practices. They have taken steps
to reduce their impact like using eco packaging materials and minimizing water
usage during production.
B. The Ford Motor Company
Another organization that implement Total Quality Management approach is the Ford
Motor Company. The total Quality Management has had a profound positive impact on
Ford Motor Company. Ford’s commitment to TQM principles has been instrumental in its
enduring success. Total Quality Management (TQM) has had several positive effects on
Ford Motor Company:

 TQM emphasizes a commitment to producing high-quality vehicles. Ford’s

implementation of TQM has led to improvements in manufacturing processes and
product design, resulting in more reliable and durable cars.
  TQM focuses on meeting customer needs and expectations. Ford’s dedication to
quality has led to greater customer satisfaction, increased brand loyalty, and a
positive reputation for producing dependable vehicles.
 TQM concepts frequently result in more productive operations. Ford has profited from
less waste, better production methods, and cost reductions, all of which help the
business be more profitable.
 Promotes a culture of continuous improvement. Ford regularly reviews its processes,
collects feedback from customers and employees, and makes necessary
adjustments to stay competitive and innovative.
 TQM encourages a focus on safety and innovation. Ford has incorporated safety
features and cutting-edge technologies into its vehicles, enhancing both driver and
passenger safety.

Assessment 2.1
1. Explain the relevance of each of the six basic concepts of TQM to the organization’s
success. Write your explanation in each concept in five (5) sentences.
Answer:
I. Leadership: Effective leadership is a vital management function that
helps to direct an organization’s resources for improved efficiency and the
achievement of goals, fostering a culture of quality, accountability, and
continuous improvement. When leaders prioritize quality and provide clear
direction, employees are more motivated to follow order, ultimately
leading to improved products or services and higher customer
satisfaction. Leadership provides direction, encouragement and
inspiration to motivate a team to achieve organizational success.
Leadership in TQM requires the manager to provide an inspiring vision,
make strategic directions that are understood by all and to instill values
that guide subordinates. Without strong leadership, TQM initiatives can
falter and lose direction, hindering the organization’s success.
II. Customer Satisfaction: An organization’s main focus must be to satisfy
its customers. Customer satisfaction is also closely linked to loyalty the
higher a customers satisfaction with your brand, the more likely they are
to come back for future purchases. As such, measuring and improving
customer satisfaction should be part of any business overall strategy for
success. When an organization consistently meets or exceeds customer
expectations, it builds trust, loyalty, and positive feedbacks, which can
lead to increased sales and long-term, Satisfied customers are more likely
to purchase additional products or services from the business. When
customers are pleased with their experience with a company, they will be
more likely to continue working with them, or even to increase their
spending with them. This can have a positive impact on the bottom line of
a business as well as its overall performance. Positive reviews and
referrals from satisfied customers can go a long way in boosting a
business reputation, increasing visibility, and ultimately helping it to attract
more customers .
III. Employee Involvement: Employee involvement gives employees a
sense of belonging to the organization. As a result, they become more
 dependable. They accept greater responsibility for their work and
achieve better results. This increases the possibilities for creative
thinking and problem-solving in the workplace. More motivated and
trained employees mean better performance; especially when you
have total employee involvement in terms of staff management.
IV. Continuous Process Improvement: Continuous process
improvement enables businesses to identify customer values,
minimize waste in the value delivery process, and align their products
and services with customer values. This allows businesses to
anticipate the needs of customers and deliver products and services
they want – often ahead of competitors. Continuous process
improvement aims to identify inefficiencies and bottlenecks and
remove them to streamline workflows, which result to reduction of
costs, faster processing, fewer errors, improved stakeholders and
supplier relationship, better quality products and more productive
employees.
V. Supplier Partnership: A positive supplier relationship leads to the
sharing of ideas and feedback which can be used to improve
operations and go-to-market times. In time, this will lead to lowered
costs. Good relationships with suppliers will not only deliver cost
savings, but they will also reduce availability problems, delays, and
quality issues , which means a better service for the consumer. As the
relationship with an organization’s supplier develops, the
communication improves. As with any relationship, as it develops the
supplier gets to know more about the organization and that enables
them to increase the efficiency of their service. Order issues will be
reduced, and in the event order issues do arise the strong relationship
between organization and supplier will make it simpler to solve the
issues. Thus, this will allow for the improvement of operations,
streamlining the supply chain and reducing costs in addition to
improving customer service.
VI. Performance Measurement: Measuring performance is a
vital part of monitoring the growth and progress of any
business. It entails measuring the actual performance of a
business against intended goals. Regularly checking your
business performance protects your business against any
financial or organizational problems. Performance
measurement helps organization assess their proposed
solutions if it contribute or meet the organizational goal.
Without the ability to measure performance, an organization
cannot effectively track its progress toward quality goals or
identify areas for improvement. Performance metrics provide
valuable data for decision-making and allow the organization
to adjust its strategies as needed. Regular measurement and
analysis are essential for ensuring that TQM initiatives are on
track and contributing to the organization’s overall success.
2. If given a chance to manage a company in the future, would you use TQM for your
organization? Why? Or Why not?

Given a chance to manage a company in the future, I would use the Total Quality
Management approach for my organization. Total Quality Management is the best
approach to fulfill organizational goals. Total Quality Management aims to optimize the
performance of an organization via continual improvement in the products and services
provided, the operation of the internal and external processes, equipment, utilities and
most of all the people involved in an organization.
The main goal is to maximize profit and minimize cost, in that case TQM approach is
way helpful to attain that certain goal. TQM helps in reducing total quality costs. It is
based on the principle of preventing defective products/services rather than being at the
expense of quality failure cost. So basically, it aims to manufacture zero-defect
products/services. Consequently, this brings in cost reduction and thus increased
profitability. On the side of customer satisfaction, TQM offers idea on how to produce
high-quality products that meet customers’ needs result in higher customer satisfaction.
High customer satisfaction, in turn, can lead to increased market share, revenue growth
through marketing and feedbacks initiated by customers. TQM can have a beneficial
effect on employee and organizational development. By having all employees focus on
quality management and continuous improvement, companies can establish and uphold
cultural values that create long-term success for both customers and the organization.
Overall, Total Quality Management is a great approach to any organization, it can bring
profound positive impacts to the organization. It will help the organization maintain its
reputation for high-quality products/ services, foster strong customer loyalty, improve
operational efficiency, and stay competitive in the industry.
Lady Jane M. Giango IEng 159- Quality Management
System
BSIE- III

Learning Task 2.2

Reaction Paper : Ford’s Six sigma effort

Ford’s journey towards implementing Six Sigma as a quality improvement methodology
is an inspiring example of how a historic automaker can reinvent itself. This paper discusses
the case of Ford in an effort to demonstrate how the company fostered the lean six-sigma
culture as a tool for improving performance through elimination of costs of variations (six
sigma) and wastes (lean manufacturing).
The company has established a strong position in the automobiles industry in the US. It
is the second largest automobile company operating in the US. The US is also the second
largest market for automobiles across the globe. In this market, the company has managed
to build a good reputation for its products. Ford focused on output management to ensure
compliance with total quality. Management of outputs implies the measurement of outputs
such as sales and profitability, dominance in markets, and growth as measures of the extent
of performance of an organization. In 1990s, this approach failed to deliver substantial
results. Ford Motor Company had to think differently. There was a huge accumulation of
wastes in the form of work in progress, re-works, and scrapped materials. To ensure
customer value, Ford considered altering its concerns on performance from basing it on
outputs to focus on inputs in late 1990s. The major problem that required solution was
wastes reduction. This issue led to the establishment of control systems such as operation
control, development of programs for enhancing human resource management, programs
for assessing customer satisfaction, reviewing compensation and pension schemes for
employees, and even deployment of various problem-solving techniques. These aspects
encompassed the lean six-sigma methodology for resolution of the challenges experienced
by Ford.
The lean six-sigma methodology adopted by Ford has five important phases. These
phases include define, measure, analyze, improve, and control. Changing people’s work
culture to ensure strict compliance with the efforts of reduction of wastes in every process
and work unit that people are in charge of was a major obstacle. The overall goal of the Lean
Six Sigma methodology was to ensure 99.99% DPMO (defects per million opportunities).
Ford Motors Company endeavored to improve its business performance by implementing
Lean Six Sigma methodology. Some of the desired future states include the streamlined
production and manufacturing processes. Upon considering the desired Ford’s future state,
implementation of Lean Six Sigma culture is the best approach in achieving the goals.
Through Lean Six Sigma, Ford was able to reduce wastes significantly such as re-works
and defects. This strategy led to efficiency improvements, improved quality, and streamlined
production processes. Between 2000 and 2002, the organization was able to save 1 billion
US dollars through defects and wastes reduction. This outcome made the company focus on
building its production culture around Lean Six Sigma production philosophy.

Assessment 2.2

I. Choose the most appropriate answer. Encircle the letter of your answer.

1. Six sigma does not call for

a. Top management commitment

b. Quality Department
c. Employee Involvement
d. None of the above
2. DMAIC includes
a. Define
b. Improve
c. Control
d. All of the above
3. Six sigma process improvement models include
a. DMAIC
b. DFSS
c. DMADV
d. All of the above
4. Achievement of 6 sigma means
a. Less process variation
b. Improved customer satisfaction
c. More profit
d. All of the above
II. Compare and contrast DMAIC and DMADV.
DMAIC Model
One of the things that set Six Sigma apart from some other quality improvement and
management methodologies is a structured approach to every project. Projects that are
meant to improve an existing process follow a road-map for success known as the DMAIC
process; DMAIC is broken into five phases: Define, Measure, Analyze, Improve, and Control.
The DMAIC methodology is designed to be fairly inclusive – the vast majority of teams who
are seeking to improve a project will be able to fit their activities into the DMAIC steps
because those steps are designed to allow some flexibility.
DMADV Model
It is used for improving existing processes, whereas the DMADV is applied for the design of
new products, which aim at achieving 6𝜎 quality. DMADV refers to Define, Measure,
Analyze, Design, and Verify.
Similarities:
Both DMAIC and DMADV:

 Use structured methods to reduce variation and solve problems

 Collect and analyze data to make informed decisions
 Use teams to solve problems
 Have a customer focus
 Use many of the same tools (brainstorming, FMEA, DOE)
Differences:

 DMAIC addresses the current process; DMADV addresses the design process.
 DMAIC reduces/eliminates defects (reactive); DMADV prevents defects (proactive).
 DMAIC includes specific solutions; DMADV is part of the solution design process.
 DMAIC includes controls to sustain the gains; DMADV includes verification and
validation of the finished design.
DMAIC and DMADV provide a structured process for improvement. When applied properly
with the applicable improvement tools, they can help ensure the success of your lean six
sigma projects, which can reduce costs and increase customer satisfaction.