Free «Integrating EFQM, Six Sigma and Other TQM Approaches with ISO 90012008» Essay Sample

Introduction

The surrounding world of business is a complicated structure of companies, which are willing to meet requirements of contemporary the most demanding customers striving to achieve high-quality products and services. Customers aim at increasing their requirements regarding costs and quality the products offered by companies. Therefore, the society represents a natural booster motivating companies to work on the continuous upgrade of products’ quality due to the diversity of techniques. ISO 9001:2008 is a series of international standards, which aim to measure the level of quality. Many companies performing in various areas of the market comply with it. These standards stream from Technical Committee of the International Organization of Standardization and have a direct relation to the principles of Total Quality Management (TQM). In general, ISO 9001:2008 is a guarantee that the product obtains high-quality characteristics. The standard cannot control each product’s level of quality. However, it is an appropriate tool which controls the stages of the manufacturing process. Essentially, companies must follow this standardization in order to perform on the daily basis with an outstanding quality.

The contemporary world has a variety of quality assurance models, which businesses may actively integrate in the performance to lead it to excellence. The list of these models is not broad; it includes European Foundation for Quality Management (EFQM) Excellence model, Six sigma, Benchmarking, and DGEP. The mentioned models have a connection to ISO 9001:2008 and help the companies regulate the products’ level of quality offered to customers. In addition, the models include peculiarities and characteristics of the approaches streaming from TQM. For example, ISO 9001 considers that the company focuses on TQM methods in order to enhance its performance and urge it to the appropriate level of quality, thus including the requirements of one of the models. “TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives” (Padhi, n.d.). The following discussion is a reflection of each model’s essence and principle elements of each model’s implementation in the company’s performance.

Implementation of EFQM Excellence Model

One of the most remarkable and respected models in quality assurance is EFQM Excellence Model. Its roots come from the European Foundation for Quality Management. The model’s philosophy and principles include the values accepted by Europe which first arose in the European Convention on human rights more than 50 years ago. Around 30 000 enterprises successfully use these values in order to enhance the products’ quality (Richter, 2012). It is obvious to every employer that EFQM is an effective quality regulation tool, which contributes to the establishment of the diversity of competitive benefits. Helping to play a role of the booster, it speeds up the efficiency of every process. EFQM model is an approach used by companies to improve business performance using nine criteria. The latter include society results (6%), strategy and politics (8%), partnerships (9%), people (9%), leadership (10%), processes (14%), customers’ results (20%), and key performance results (20%) (Richter, 2012). “EFQM Excellence Model is used as a basis for (self) evaluation, an exercise in which an organization is classified with a detailed set of nine criteria” (Fechete, Nedelcu, & Popescu, 2014). In general, the idea of the model aims to enhance the level of quality and improve the company’s productivity according to the value of human rights.

EFQM Excellence model becomes a consulting tool for the employer willing to reduce the gap between the company’s vision and the mission statement. It includes various techniques, which help to evaluate the areas in the company’s activity requiring transformation in order to provide the company with competitive benefits. Apart from this aspect, another segment of the model connects the facts of the company’s internal environment and its external business conditions dictated by macro environment. The model considers business as a complex organism, including the diversity of tools, elements, and objects aiming to accomplish the same goal. EFQM Excellence model contributes to changes and transformation of the main processes in the company’s structure oriented to increase profits, productivity and an overall quality. It expands the boundaries for the further evolution and growth due to the improvement in the sphere of quality management. EFQM Excellence model focuses on the quality of all processes, products and services streaming from the company. One of the distinguishing features of the model is its unique ability to mix the elements contributing to the evolution of the company at all levels of its performance.

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Regarding ISO 90012008, it is possible to consider the model’s integration as an additional element, which helps to meet quality standards by mentioned nine criteria. EFQM Excellence Model is an approach, which interrelates with the mandatory concepts of ISO 90012008 by pushing the company towards performance criteria to meet the requirements of customers on the international level. It means that EFQM comprises the aims of ISO 90012008 in leading business on the way to high-quality performance.

The EFQM Excellence Model holds annual awards aiming to praise the most successful companies which managed to make a breakthrough in the business sphere due to implementation of the new quality management strategies. The companies of the awards include BMW Regensburg Plant, St. Mary’s College, Sanitas Hospitales, Nilufer Municipality, and others. It is important to remember that the list of the companies extends on an annual basis by the number of new companies that means to be a positive tendency for business. The discussed model helps every company to meet all requirements of high-quality development. The companies that received the reward and recognition prove that EFQM is a significant management tool capable of improving each segment of the company’s performance.

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Implementation of Six Sigma Approach

Six Sigma is another famous TQM approach that companies are capable of applying in order to contribute to the business growth. Motorolla was the first company that managed to succeed in the implementation of the approach in its performance in the 1980s (Fechete, Nedelcu, & Popescu, 2014). “Most organizations that run quality initiatives within a company now choose to use Lean Six Sigma rather than just one or the other methodology to gain a greater impact on the business” (Intrieri, 2013). In general, four elements build up Six Sigma and create the significance of every step. The elements are key processes necessary for meeting customer’s requirements, data analysis, customer’s requirements, and the rapid improvement of the company’s performance. In addition, Six Sigma streams from the DMAIC model (Franchetti & Yanik, 2011). Every letter means the following: defining opportunity, measure performance of the company, analysis of existing opportunities, improvement of performance, and control performance which formulate the core of the model. It is important to strengthen the combination of the elements by organizational behavior. Six Sigma is one of the most effective approaches, which is capable to urge the company to excellence and overall upgrade.

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The companies that gained success by implementing Six Sigma approach are Canon, IBM, Amazon.com, Ernst & Young, Ericsson, Nokia, Honda, and Kodak (Roth & Franchetti, 2010). They can guarantee that Six Sigma will provide success and improvement of the performance at the same time.

Regarding ISO 90012008, Six Sigma is an element, which teaches the company to optimize its performance in order to achieve recognition and respect of the shareholders concerning international standards. ISO 90012008 uses Six Sigma as an engine, which is conductive to provide the appropriate level of quality.

Implementation of Benchmarking

TQM approaches include all the techniques important for the evaluation of quality improvement sources. Benchmarking became a widespread and easy method aiming to change the level of company’s development due to the various methods. The main principle of benchmarking is the implementation of standards and rules of the performance of the respectable business object into the company. First, the company should outline the target criteria of comparison. Further, it is important to choose the company which will become the goal of the implementation of all management peculiarities.

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Regarding ISO 90012008, benchmarking is a technique that can help the company to take a global corporation manufacturing products according to the terms of international standardization as an example. This example should become a path providing the achievement of excellence according to ISO 90012008. For example, benchmarking of processes can help to see the technology of meeting the highest criteria of products.

Benchmarking has six stages of implementation, which a company should take in order to make its performance effective and appropriate for the evaluation of Six Sigma principles. The first step is detailed evaluation of problematic areas which contribute to the low quality of products. This stage includes feedback from customers, partners, suppliers, personnel, marketing and quantitative research, surveys, financial analysis, and quality control research. Another important element in the company’s performance is the evaluation of the processes used to apply appropriate benchmarking techniques. A company should know everything about its customer’s, stakeholder’s and partner’s needs, requirements, and expectations. Moreover, another technique to make the process of benchmarking as fast as possible is to find a leading company willing to share information on mutual basis.

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Meanwhile, benchmarking is the process with some pros and cons. On the one hand, it is the center of company’s evolution and development. It expands the boundaries of the company’s activity and proposes the diversity of the improvement methods. Benchmarking helps to enrich the minds of entrepreneurs with new ideas and methods of management. On the other hand, companies may acquire wrong techniques and tools of management due to a lack of experience in effective benchmarking. High-performance standards of competitors can result in low standards of a company in respect of inappropriate analysis and perception of information. Despite the fact that such cases are rare, there is a need to be careful and accurate in the process of benchmarking and all processes of implementation.

Dubai Government Excellence Program (DGEP)

The aforementioned program is one of the examples to reach business excellence in the segment of the government services. In the government, employees and departments are the target audience of this program, and they formulate the basics of high-quality initiatives in the area of government regulation. The program can become one of the effective tools appropriate for the updated management of the company’s performance. Companies may implement the following terms and conditions within high-quality regulation of the government sector in order to see its benefits. It means that the company can use this system as a supportive element.

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ISO 90012008 may become an effective platform for using DGEP as an element in the overall improvement of the company. Whereas standardization has a complex character, it is possible to emphasize that DGEP is a pushing element for the company willing to follow high-quality standards. Regarding ISO 90012008, DGEP has the role of a regulator succeeding in balance in every process applied according to international standardization.

In general, all elements of DGEP motivate companies to have transparent performance ensuring that high-quality standards penetrate all levels of company’s activity. Moreover, it will describe the reasons the customers should turn to the services of the company applying the model. In the aspect of DGEP, a benchmarking technique promotes companies applying templates of success to their performance. It ensures continuous evolution and regulation of the company’s expansion strategies. Finally, DGEP is twists the company’s performance to a new level of improvement which will enhance both the trust of the government and the target audience of consumers.

Conclusion

ISO 9001:2008 is an international standard that considers the main indicators of quality, which should take its place in every company. Therewith, the standard is a source of inspiration and motivation for the companies aiming to achieve the benefits of excellence, evolution and constant improvement. In addition, companies are the most likely to create a wide range of competitive benefits due to the active usage of the diversity of techniques offered by TQM. It is important to mention that the business world does not allow the companies to make mistakes without using them as experience promoting excellent performance. Customers are willing to receive high-quality products and services without paying attention to the company’s performance. It is a fact that entrepreneurs striving to achieve success and take action in order to obtain the new stage of evolution will find a way to improve quality and meet requirements of the most demanding customers. ISO 9001:2008 helps companies to include various high-quality criteria in the performance which extend the company’s opportunities. High-quality services and products benefit to both companies and consumers. Companies become capable of receiving respect, success and appreciation from consumers, and consumers, in their turn, gain a reliable source of products. Relations between consumers and entrepreneurs depend on trust, confidence, and reliability. Once balance between the quality and price is lost, the company will significantly reduce its audience.

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