Managers strive to deliver quality to consumers through subjective evaluation of outputs. Moreover, quality management involves communication, monitoring as well as improvement of all the aspects of product and service delivery. Therefore, an organization’s management seeks to deliver quality by improving the processes, services, products and organizational culture. To promote growth, most companies embark on total quality management, TQM to solicit for more funds from investors and banks to expand their operations (Talib, Rahman & Qureshi, 2012). Further, Total quality management has enabled businesses attain customer satisfaction and employee empowerment reflecting on management’s improved style.
Companies have also embraced TQM by changing client expectations to keep at pace with competition thus increases the business survival chances through improved business working environment. Businesses are also using TQM to overcome the internal problems, for instance quality related problems resulting from narrow functional approaches, poor delivery performance as well as poor financial returns. In TQM, all organizational members work towards a common goal for continual improvement using strategies, effective communication and data into the organizational culture and activities. To foster customer satisfaction, organizations should improve quality in the design process, upgrade their software and train employees about customer service (Sallis, 2014).
Deming’s 14 Points for Management.
The most important points for Smitheford pharmaceuticals include; constancy of purpose, continual seeking of problems, incorporating on-the-job training, breaking down barriers, eliminating targets, instituting education and leadership as well as top management commitment.
Constancy of Purpose
The management should build constancy of purpose to ensure continual improvement of drugs and manufacturing equipment as well as services. This entails allocation of resources for the provision of long-term needs instead of short-term profitability, thus ensuring competitiveness in operations and provision of jobs. Policy and core values should be established in addition to setting of a long-term strategic course (Gimenez-Espin, Jiménez-Jiménez & Martínez-Costa, 2013). Moreover, the management should ensure consistency and extensive push for continual improvement in the pharmaceutical’s business ventures. However, productive management can only be realized through understanding of the TQM approach, and then applying constancy of purpose constantly throughout the process of reducing the Ultamyacin transportation and facility building costs.
Continual Seeking of Problems
Smitheford management should continually search for problems so that it can improve the systems of production and service. Quality and productivity are improved by constantly decrease costs, such as design, incoming materials, maintenance, and improvement of machines, training, supervision, and retraining (Deming, 2013). This allows the management to spot potential problems even before they can occur thus engage expert opinions and redress. This also forms the difference between crisis management and good management. The management should never be content with the current state of affairs in the organization thus some improvement should be made based upon further problems.
On-the-job training should not only incorporate the junior employees but also the management, to make better use of all employees. However, training is seen as short-sighted and non-productive by many managers, and thus make it one of the first things to go when finances are tight. Conversely, training makes employees get better on their jobs for the benefit of the organization, thereby reducing the total costs that would be incurred if the employee had no idea how to approach work-based problems (Deming, 2013). Moreover, training improves employee satisfaction from doing a good job thereby having the employees want to continue improving further.
The Smitheford management should seek to instill leadership in all the departments thereby having the machines and employees do a better job to the best of their ability. Quality should be made the sole priority to of the supervisors instead of relying on sheer numbers. Deming (2013) asserts that improving quality automatically leads to improved productivity. Therefore, the pharmaceutical’s management should ensure that immediate action is taken on reports of inherited defects, maintenance requirements, poor tools, incoherent operational definitions, and other conditions that may adversely affect the quality production. Further, the employees should be given interest in the work assigned to them and be guided on how to do it well. Instituting leadership in the company would ensure that employees become productive eliminating the conditions that force them to do a bad job (Wang, Chen & Chen, 2012).
Break down barriers
Barriers should also be broken between departments, such as research, design, sales, administration, and production to allow them to work in teams to tackle problems that may be faced in the pharmaceutical’s products or services to avert sub-optimization (Kelly, 2013). Consequently, different organizational departments have their own interests, traditions, and values. This eliminates any in-fighting amongst employees during times of conflict thereby directing any fights towards competition rather than themselves. Additionally, any minor changes in one department would afford considerable assistance to another-often with the resulting desire to complement the other though that depends on the understandability of the departments’ difficulties (Talib et al., 2012).
Another Deming’s point that the pharmaceutical’s management needs to put into practice is elimination of targets, which are work standards that prescribe numerical quotas and goals. This would require the management to use statistical methods for continual improvement of quality and productivity (Deming, 2013). Targets have an adverse effect of never getting right, therefore if a target gets lower than the real outcome that is reasonably achieved, then employees automatically take a rest once that target has been reached. Conversely, if the target is arbitrary, then either it would not be attainable hence attracting criticism or loss of bonus to the workforce, or it will be attained through unscrupulous means thereby lowering the organizational standards and disregarding safety requirements. Elimination of targets will ensure improved productivity for Smitheford Pharmaceuticals and that employees do their work to optimal capacity.
The management should also Institute an ambitious education program involving re-training employees as well as top management staff (Deming, 2013). New skills are crucial in keeping up with changes in materials, methods, product design, machinery, techniques, as well as services. This would be instituted using elementary statistical methods throughout the pharmaceutical to yield optimal benefits by assisting both in identifying the solutions to the looming problems through prediction of the effects of any changes as well as by examining the impacts as soon as the changes have been made. This is done by generating individual interest, facilitating communication with other departments and top management (Wang et al., 2012). Training all the employees of the pharmaceutical on the methods of improving productivity would ensure that customer satisfaction is attained effectively.
Top management’s commitment
The pharmaceutical’s top management should drive toward commitment to continually improve quality and productivity to ensure competitiveness. Additionally it should involve its obligations to implementing all of the important management principles. This would be attained through creating a structure in the top management that will inspire the management and their teams to accomplish transformation in the organization. Management practitioners argue that without full top management belief, understanding and commitment, productivity is temporal and sporadic (Deming, 2013). Top management should take the lead in directing the whole organization to continually improve the quality of every organizational activity through encouraging and training employees to foster creativity.
The management should realize that it also has a lot to learn, and be prepared to learn in order to become more productive. All the organizational members should be trained in statistical charting techniques and process control so that they all can understand the reports, analyses as well as recommendations originating from the use of these methods. A positive and permanent structure within management should be set up with the sole task of encouraging and facilitating continuing and continual progress in the new direction. Commitment of the top management will ensure that the potential rewards, and degree of success, for Smitheford Pharmaceuticals are attained.
If the Smitheford’s management decides to implement one of Deming’s points each year, the methodology would prove effective if well applied and planned. The management should start by having a process in place. In most situations, the process is quite loose and not particularly well communicated or understood by most stakeholders to the business. Moreover, stakeholder acceptance of and observance of the process is limited. However, technological advancements that afford the company better, faster ways to effectively communicate and share knowledge should be embraced to ensure competitiveness (Sallis, 2014).
It is therefore important to ensure that each Deming’s point in the review process is considered, custom-made to existing needs, implemented, and assessed for effectiveness with the management open to change. Moreover, the management should work to improve leadership and knowledge, Identify and learn from errors made in the past that are making it hard for the company to effectively implement the Deming’s points in optimum. It should also set performance standards and expectations for safety of their products as well as employees, in addition to implementing safety systems in the organizations (Wang et al., 2012)
Leadership is crucial to improving the focus and performance in Smitheford Pharmaceuticals. The management should assist in shaping the agenda in the pharmaceutical industry by a single-minded focus on customer satisfaction that is shared among all participants and constituents in the healthcare system. An increased focus on customer satisfaction drives the evolution of policy and creates a culture that values the role quality and purpose of business (Talib et al., 2012).
By implementing one point each year, the management would show that it is in a continuous improvement process thereby working on the right path to achieving effectiveness. This would be done by maintaining constancy of purpose and continuously seeking problems to ensure since it is a never-ending process for streamlining processes, simplifying procedures, activating communications, enhancing employee skills, and improving customer satisfaction (Gimenez-Espin et al., 2013). The process would involve asking questions about the adoption of programs to reduce order-processing cycle in the pharmaceutical.
Further, it would involve additional effort geared toward minimizing manual paper work in the firm as well as adopting programs to develop effective communication between employees and management in a two-way format (Oakland, 2014). Additionally, the adoption Deming’s points would work in developing employee conflict resolution with time by breaking barriers and analyzing client requirements in the product development phase.
The methodology would also work effectively if the management give the employees the training and authority they require to manage their own jobs properly. This is possible through employee empowerment, which is measured by asking questions regarding the existence of an active employee suggestion system, and giving employees the power to maintain the machines they use in production. Moreover, if the management allow the employees the right to analyze data obtained in their job, the implementation of the Deming’s points would work to the advantage of the organization (Kelly, 2013).
Employee empowerment would also ensure that they release pressure for short-term results as well as allowing them to interact effectively with customers and suppliers. Moreover, implementing the points one at a time would allow the organization’s members gain education and training at the same time. Education and training would provide all employees with information, knowledge and skills in both TQM concepts and tools, and with job specific information to ensure that they are committed, innovative and productive (Oakland, 2014). Further, education and training are arrived at through adopting programs for training management and employee in quality-related matters and training and supporting teamwork skills at different managerial levels. The management should also try to educate and train mid-level supervisors in statistical improvement techniques and encourage the employees to accept continuous training.
Since every organization is a collection of processes, which are either technical or social in nature, the management should create a process map which ensures minimal waste of resources. The processes involve the typical business activities the pharmaceutical company will seek to perform to produce value, satisfy customer needs and generate income in return. The process will need proper management so that it can produce the optimal desired outcome (Talib et al., 2012). Therefore, a successful process management would require a continuous documentation, analysis and improvement efforts to streamline and redesign so that Smitheford Pharmaceuticals remains competitive in the dynamic environment it operates.
It will therefore involve first getting a thorough understanding of the basics, for instance process inputs, transactions, outputs and the interrelationships of each to ensure that the management comprehends how processes interact in the organization’s business process. This would be followed by locating the process flaws that may give rise to systemic problems, determining the technical process failures that may be caused by social system failures in the organization (Sila & Ebrahimpour, 2002).
Moreover, the management will also undertake an evaluation of the activities which add value for the organization’s clients. Streamlining and improving work flows would be done followed by an identification of the processes suitable for redesigning as well as areas that need restructuring (Oakland, 2014). In process mapping the management would also seek to improve efficiency and customer satisfaction.
The management will have to identify the gaps that may present themselves in the production process from the time raw materials are received at the Minnesota facility up to the time the finished product is inspected in Cologne, Germany. This would act to extinguish the flame that may be costing the pharmaceutical lots of money. The raw materials seem to pass a lot of processes before they are inspected and shipped to the final warehouse which adds to the cost of the finished product. The management should thus seek to cut chain at the Puerto Rican storage since no production seems to take place there. It should also find a way to store the finished product in Strasbourg, France instead of incurring the extra cost of shipping it to Cologne.
When the output attained fails to meet the management expectations, then gaps exist. Gaps, such as customer satisfaction failure escalate into large gaps in market share. System Mapping offers that possibility to tackle the problem holistically rather than in individual units. The process will entail the whole system through the combination of processes and supplier that together yield the customer desired outputs. It thus involves identifying the existing as well as potential performance gaps and determining their origin. This is followed by a prioritization of the potential risk or opportunity they offer and developing solutions that eliminate the gaps altogether (Wang et al., 2012). The management will then implement the solution and verify the successful gap closure.
Process Flow Charting
The management should seek to define the functionality of the process and spell out who does what and when. They should also realize that the processes will vary within the company due to a variety of factors, such as conflict of interest with regard to employee skills, management and suppliers, and the employees who should work under each. The process flow will involve a core activity that produces the output a customer purchases, the technical support activities that influence the core process performance and the social support activities that influence the workforce’s performance.
The support process, such as accounting, human resources, maintenance and information systems are crucial to the success of the pharmaceutical, though the clients do not identify them or their outputs as part of their specifications. Detailed analysis and comprehension of the flow charting process segments would assist the management to determine the company’s state, in terms of the actual process, its inefficiencies and non-value-added steps (Kelly, 2013). In working to close the existent gap the possible end-result of the process management activity involves selecting a successful strategy for the process. The management will thus seek to continuously improve the existing production operations, thereby shifting Smitheford Pharmaceuticals from the “As Is” to the “Should Be” process state.
After completing that step, the resulting question the management has to grapple with is whether the organization requires incremental improvement depending on customers and competition. In trying to satisfy the customers, competition is important so that management can ascertain the areas it is not doing right. The management should also work ensure both continuous improvement and business process redesigning at the same time. This would enable the company to innovate and jump to a totally new technology curve ahead of the competition, thus determining the measures by which customers measure performance gaps (Sila & Ebrahimpour, 2002).
The tools and techniques the company’s management should apply in the process mapping would depend on the customers, the intent and the gap, whereby in Smitheford, it is cost of production from the moment raw materials are received until the finished product is warehoused in Cologne. Further the area of concern, which entails decreasing the cycle time, optimizing resource utilization, determining activity-based costing and decision-making procedures. The management will thus make use of top down flowcharts, block diagrams, flow process charts, and work flow diagrams.
Therefore in the process mapping, the management will have to clearly appreciate the process and performance gaps existent in the production process. Once the gaps have been identified, they need to be prioritized based on the risk involved or the looming opportunity. The process mapping would remove all barriers to employee participation and teamwork. It would also stress effective communication between managers and employees, while at the same time eliminating the numerical goals and quotas for employees, and company-wide training and education (Wang et al., 2012).
It would also ensure innovation in the organization to generate new and improved services. The employees, supported by the top management, would then adopt a new work philosophy through cross-functional teams or quality circles to set priorities for staff training to ensure a continuous learning environment. Moreover, the process mapping would also ensure that the statistical control of the process provides the only way for the organization to produce quality drugs and service through uniformity, repeatable quality and cost of service (Gimenez-Espin et al., 2013).
The management should seek the best quality in a long-term relationship with the firm’s suppliers for the drugs. This would ensure longer lasting orders and greater quality service at no additional cost. The process mapping also seeks to continually reduce waste, lower cost and improve quality (Kelly, 2013). It should also increase the job skills of both main and support staff. Training must be totally reconstructed. Statistical methods must be used to learn when training is finished and when further training would be beneficial to ensure a thorough understanding of customer needs for the pharmaceutical products.
The process mapping is geared toward inspiring the management to assist the employees to do a better job and of using learning by objective methods for those employees in need of individual help. This should help the management introduce new best practices in the company services to satisfy customer needs (Oakland, 2014). The strategy would work to integrating the organizational departments to strongly promote the principle of getting it right on first attempt. Cutting the Puerto Rico and Cologne trips would ensure that numerical quotas cost is reduced thus increasing the competitiveness of the company thus continuous improvement
Managerial and Employee Goals and Communication Processes
The Managerial and employee goals and communication processes ensure total employee involvement. All the organization’s employees would be motivated to participate in working toward common goals. Total employee commitment is obtainable through a two-way communication process in the workplace, which leads to empowerment through provision of a proper environment by the management (Sallis, 2014). The communication process would ensure that the whole system is process-centered to transform the inputs into outputs for delivery to clients. The steps required to carry out the process should be defined, and performance measures continuously monitored so that problems can be detected in advance.
The communication process in TQM ensures that an integrated system is arrived at since the organization consists of different functional specialties which are horizontally structured. It would also ensure that quality is attained through strategic and systematic approach to achieve the pharmaceutical’s vision, mission, and goals. Further, it would ensure a continual improvement to drive the organization into both an analytical and a creative way to ensure competitiveness and effectiveness at meeting stakeholder expectations (Sila & Ebrahimpour, 2002).
In choosing to apply the Deming’s points in TQM process, the Smitheford’s management would reap a fact-based decision making process. In order to ascertain how well the organization is performing, the management will have to rely on performance measures data. TQM will therefore require the management to continually collect and analyze data so that it can improve decision making accuracy, accomplish consensus, and allow prediction based on previous data. Moreover, TQM will ensure communications to maintain the morale of the employees as well as motivating them at all levels. TQM would also allow quality and cost maintenance in the organization through quality waste and productivity thus leading to substantially lower costs.