To prepare for this essay please read the required articles that is attached then answer the
following questions:
How important is the concept of ‘goal translation’ in the methodology of continuous improvement used at
STM?
Could this approach be applied effectively in your own company or another organisation you know well?
Explain your answers with examples.
TQM W8 Replys
Quality of products that a company produces in terms of quantity, price, and delivery
time is very important to the customer. Any entity which is determined in maintaining its
competitive position in terms of quality products should ensure that it integrates all levels of
management in its organization in quality management so as to achieve total quality management
at all levels. Most entities have realized that quality can only be achieved if all operations of the
organization were involved. An organization is expected to improve quality and performance in
all its aspects to exceed customer expectations. In order for an organization to know whether
their products are of quality, a survey should be carried on customers because they are able to
define quality better. Organization’s management has the duty to improve on its products’
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quality all the time. Improvement of organizations’ operations and continuous examination lead
to increased and improved quality (Murray, 2015, para2).
Continuous improvement is whereby an organization puts never-ending efforts to expose
problems and do away with them. It involves small innovations rather than huge innovations.
Japanese view continuous improvement as the root of their business culture (de Jager, et al,
2004, pg. 320). The goal of this philosophy is to improve change operations in the organization
in consistent manner. All members of the organization are involved in the process of reducing
waste in labour materials, machinery and production methods. The organization needs to have a
culture which promotes the process to ensure continuous improvement. All its goals, objectives,
mission and vision statement need to be in line with continuous improvement. In addition, all
firms’ activities, functions, and employees are supposed to be ready and adapt to the culture (de
Jager, et al, 2004, pg 320).
Setting firm’s goals in line with continuous improvement makes it easy for the
organization to be able to achieve its set goals. This because organization goals and objectives
give direction to the organization and are used to predict its future. With the increasing
competition in the business world today, most companies are adopting continuous improvement
concept to maintain competitive position. Applying the concept of continuous improvement in an
organization leads to cost saving which a major goal for all industries. Also, an organization is
able to have motivated employees which lead to increased productivity and reduced employee
turnover Evans, 2010, pg.179). Through the concept, organizations have the capability to
produce quality services and products at reduced prices improving customer satisfaction. Finally,
organizations are able to enjoy long-term benefits whereby their product becomes reliable, of
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higher quality, advanced, cheaper and attractive to customers (Jorgensen, Boer, & Gertsen. 2004,
pg 345).
STM microelectronics tried several strategies to be able to maintain its competitive
position in its industry, given that electronics industry is very competitive all over the world.
Factors such as economic forces greatly influence the industry and to be able to maintain their
competitive position all the time forced them to adopt a strategy that will enable them produce
quality products and sell them at cheap prices to maintain their market share. To deal with these
issues in 1987, the company decided to merge the two bodies into creating a company which
could compete globally. This did not work out properly the company still had financial problems.
This led to the company launching a TQM initiative in 1991 which was based on European
foundation for quality management model.
First, the company expects commitment from management as well as staffs to ensure that
they achieve success in their implementation of TQM. Company has as well has made some
changes such as revising its strategic guidelines, mission statement and new objective ,
guidelines principles, Total quality management principles of the future were set to all
employees all over the world. A team was formed to implement TQM strategy in the
organization and the company set a common culture, ways of working and vision of the culture
to all its branches all over the world. It also fixed long-term policies, which were to enable the
STM monitor the progress of its TQM strategy and improve, were necessary.
One of the method that STM used in its policy deployment to enhance its total quality
management in their management. To make its deployment policy effective it made the approach
simple by combining many existing initiatives as possible. STM defined its deployment policy in
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different styles which made it easy for employees to understand it better. To manage and achieve
its objectives, the company set goals and clear performance targets to attain by the end of the
year. The company is committed to ensuring that it achieves total quality as espoused in its
philosophy, goals, values and strategy as they are spread down the organization. This has
enabled the company to provide clarity and focus of direction and alignment. STM ensured
effectiveness of its deployment policy by setting its goals and actions in line with its quality
strategy and ensuring that they were clear to all employees at all levels.
STM’S approach could be applied in any company all over the world to achieve
competitive advantage over competitors and company’s success too. In my company, the
approach would help us improve on our customer relationship because the process will enable
production of quality products, at lower prices which would lead to customer satisfaction. In
addition, we will be able to gain a wider market share, and our reputation will also improve. This
process will also lead to improved teamwork in my company because people will have to work
together.
In addition, our company will have motivated employee more than ever because the
process will involve all the employees at all levels hence, making them feel as part of the
organization which is very important in employee motivation. Finally, my company will be able
to reap great profits due to reduced costs of production and material costs too. Total quality
management is very important to all organizations it leads to many advantages, but it is hard to
achieve it if the company does not set its goals and objectives in line with it. It is therefore very
important to ensure that whenever an organization is adapting TQM in its organization all its
functions and operations are geared towards quality (Bhuiyan & Baghel, 2005).
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.
Reference list
Bhuiyan, N., & Baghel, A. 2005. An overview of continuous improvement: from the past to the
present. Management Decision, 43(5), 761-771.
de Jager, B., et al., 2004. “Enabling Continuous Improvement: A Case Study of
Implementation.” Journal of Manufacturing Technology Management, 15(4) 315–324.
Evans, R. 2010. Managing For Total Quality and Performance Excellence. South- western.
Cengage learning
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Jorgensen, F., Boer, H., & Gertsen, F. 2004. “Development of a Team-Based Framework for
Conducting Self-Assessment of Continuous Improvement.” Journal of Manufacturing
Technology Management. 15 (4) 343–349.
Murray. M. 2015. Total Quality Management (TQM).
