Assignment

F&M Business School

Extended Diploma Jupiter Group

Subject Strategic Quality System Unit 11 (referral submission)

Submitted To Paul Bhangal

Submitted By Muhammad Asad

Table of contents

Contents Page No introduction 2

1.1 Explain the importance of effective operations management in achieving organizations objectives

3

1.2 Evaluate the success of existing operation management processes in meeting an organization’s overall strategic management objectives

4,5

2.1 Explain the importance of effective quality management in achieving organizational objectives.

6

2.2 Evaluate the success of existing quality management process

in meeting an organizations overall strategic management

objectives.

7

3.1 Plan a strategic quality change to improve organizational performance.

8,9

3.2 Define resources, tools and systems to support business processes in a strategic quality change.

10,11,12

3.3 Evaluate the wider implications of planed strategic quality change in an organization.

13

Reference 14

Introduction

Guinnes Ghana Ltd is a beverages industry of Africa they produce alcoholic products wisky, vine and beer according to the customer need and demand. Guinnes Ghana Ltd is also doing business in UK, Australia, Canada and India etc. total assets of Guinnes Ghana Ltd is round about 3 billion US dollars in Africa according to the current report in 2010. average profit is 1.23 billion every year. The organization is producing the alcoholic products according to customer demand and health and safety. Guinnes Ghana Ltd produce the alcoholic product after checking the pre quality standards.

1.1 Explain the importance of effective operations management in achieving organizations

objectives.

“Operations Management deals with the design and management of products, processes,

services and supply chains. It considers the acquisition, development, and utilization of

resources that firms need to deliver the goods and services their clients want”

Operation management is a process of converting input to out put by adding the different

values of quality with in right time on right place. All this can be design for customer

satisfaction.

Objectives & Importance.

Guinnes Ghana Ltd Operations management process has great influence on production as well

as the performance of products i.e. , about cost, quality, delivery, speed and flexibility etc.

Guinnes Ghana Ltd is producing the goods and services according to customer need and want.

Customer satisfaction is the objective of the organization through

providing quality goods and services to its customer for obtaining

customer loyalty.

Maximization of out put according to the demand of goods and also save

the resources by following the Economic Order Quantity. (EOQ)

Ensuring that goods and services produced conform to pre-set quality standards.

produce the goods according to the demand on right time.

Provide the assurance to customer that the product is according to their

need and want.

Maximum utilization of resources human resource and finance resource.

Minimizing cost of producing goods or rendering a service.

1.2 Evaluate the success of existing operation management processes in meeting an

organization’s overall strategic management objectives.

The operations management of Guinnes Ghana Ltd playing a vital role in the progress and

prosperity of overall objectives.

Operations in progress at Guinnes Ghana Ltd customer satisfaction

Guinnes Ghana Ltd is operating in all over the world in order to be a world leader. The efficiency of its operations management fulfilling the following objectives.

Target customers. The targeted customer is the characteristic of Guinnes Ghana Ltd operations management, that’s why they are fulfilling the customer’s need.

Corporate social responsibility. Another objective is to fulfill the corporate social responsibility by producing alcohol according to standard of health and safety.

Low cost product. The objective of Guinnes Ghana Ltd is produce to product with low cost and this benefit also provide to customer in shape of low price according to competitors.

Quality product Guinnes Ghana Ltd is producing flexible products to ensure its long run survival and competitiveness over the market.

Quality check system Guinnes Ghana Ltd quality product to ensure its market worth forever that’s why they have a keen eye on their operations.

2.1 Explain the importance of effective quality management in achieving organizational objectives.

A Quality Management System (QMS) such as ISO 9001 provides a management

framework that gives you the necessary controls to address risks and monitor and measure

performance in your business. It can also help you to enhance your image and reputation and

enable you to look for improvements through internal and external communications.

Quality measurement according to standard

One major objective of Guinnes Ghana Ltd is to meat the standard of quality with better

performace of product. Due to this . Guinnes Ghana Ltd Tata is fulfilling it by producing

according to health and safty standards.

Internal and External stakeholder’s satisfaction.

Another objective of Guinnes Ghana Ltd is to satisfy its customers to ensure the long run

relations with them. It requires its best quality of products that is possible only when quality

department is up to standard.

Reliability of products.

Guinnes Ghana Ltd is engaged in the production of reliable products which will describe

their loyalty with the customers. They can make their products reliable only when their quality

management is up to standard.

2.2 Evaluate the success of existing quality management process in meeting an

organizations overall strategic management objectives.

Performance management in operation.

As the Learning Organization leaps from infancy to maturity, organizations across the globe are

eager to employ “cutting-edge” tools for improving organizational efficiency and performance.

The drink business unit of Guinnes Ghana Ltd was among the first Asian organizations to

be inducted into the prestigious Balanced Scorecard Hall of Fame, in recognition of its

exemplary success with the model. The company is one of the Asian top alcohol producer. The

focus was on achieving a turnaround, and then progressing to sustainable growth. Within 0ne

years of implementation, the company began to show tangible improvement in performance

including a 25% growth in revenue.

Customization process is followd by the company and giving preference to individual customer

by providing the good quality product due to this according to recent research their customer

increased by 20% in one year. Through maintaining the good quality Guinnes Ghana

Ltd is registered under ISO.

Quality Management Process helps Guinnes Ghana Ltd to:

Set Quality Targets to be met by your team

Define how those quality targets will be measured

Take the actions needed to measure quality

Identify quality issues and improvements

Report on the overall level of quality achieved

.

3.1 Plan a strategic quality change to improve organizational performance.

Guinnes Ghana Ltd organizations update their goals and identify new capabilities they may

need on board, tying strategic goals to a strategic management plan and goal setting.

To convert the vision into an achievable plan, it must be broken into key strategies. To

determine what the strategies should be, five areas must be assessed:

• Customer loyalty and satisfaction • Costs related to poor quality of products or processes • Organization’s culture • Business processes• Competitive benchmarking

Suppose if we are going to improve the service quality of Guinnes Ghana Ltd , so we

must consider the steps before implementing the plan.

Service Quality.

First of all we have to disclose the services quality that they are already giving to their customers

then describe the alternative strategy that we can give to the customers.

Analyze Service Process.

Then we have to describe the service process that we are going to chose. Analyze that process

and define all quality measures.

Establish a system.

Then establish a system through which we will control the quality system. For instance if there

are customer complaints regarding services so we can use CSS the customer support system to

record and analyze the quality efficiency.

Investigate the process.

Then investigate the ongoing process continuously, if there is any area still required change or

development, change it and process it again to meet the standards.

Monitoring and controlling.

Then monitor the accessed area for quality change through balance score card or benchmarking.

Control the activities by continuous check.

3.2 Define resources, tools and systems to support business processes in a strategic quality

change.

Resources

The resources used in Guinnes Ghana Ltd to support the business processes in a strategic quality change are:

Financial Resources.

Guinnes Ghana Ltd is financially strong with its assets, capital reserves, shares and chain

of products to chase the strategic quality changes. Moreover, the investment portfolio of

Guinnes Ghana Ltd depict its financial strength. Company is planning to sell about 10-

15% equity stake in its subsidiary. India's largest producer of alcohol said it would sell equity

stakes in various subsidiaries as part of a plan to reduce the company's Rs 24,000-crore debt.

Human Resources.

Management comprises planning, organizing, resourcing, leading or directing, and controlling an

organization (a group of one or more people or entities) or effort for the purpose of

accomplishing a goal. Resourcing encompasses the deployment and manipulation of human

resources. Management focuses on the entire organization from both a short and a long-term

perspective. Management is the managerial process of forming a strategic vision, setting

objectives, crafting a strategy and then implementing and executing the strategy.

Tools

The tools that can support the quality management, business process of Guinnes Ghana

Ltd areas below:

1. Total Quality management.

The main purpose of Total Quality Management in organization is to:

Customer Focus (customer driven standards, high quality, partnership with vendors,

channel partners etc).

Continuous improvement (systematic measurement and focus on non conformance,

cross functional process management and continuous effort to improve standards).

Facts based decision making (statistical process control, design

of experiments etc).

Employee orientation (Training, suggestion scheme, reward Quality circles).

2. Value Engineering.

Continuous efforts are made to reduce the cost of product in Guinnes Ghana Ltd .

Rejection of input parts received from vendors is very closely monitored in all the

departments. The vendors are penalized if rejection exceeds beyond the defined limits.

Apart from rejection of regular drink some stations are identified as CTQ (Critical to

Quality) Stage

Customer support system

Our Customer Assistance Centre provides a wide range of customer services 24 hours a day, 7

days a week.

Our Services

Product sales information like alcohol is prohibited to sold under 18.

Complaint handling with possible solution .

Product and Sales information.

Information about usage of products.

Provide customer assistance with in no time.

Organizing ancillary suppliers support.

Taking advice and suggestion from customer.

Perception vs expectations

The Customer Assistance Center’s biggest asset is its highly motivated team. Our Customer

Service Representatives are available 24 hours a day, 7 days a week. We have developed a

culture of customer focus that has ensured that we are close to our customer’s expectations.

3.3 Evaluate the wider implications of planed strategic quality change in an organization.

The implication of proposed plan for services department has a wider implication apart from the

services department.

Operations Department.

The above mentioned plan is suitable for service as well as operations department to increase the

efficiency of operations in Guinnes Ghana Ltd .

Value engineering.

If there is a need to bring changes in product so by following the steps of this plan we can easily

add value in the products. The plan provides a complete range of changes required in any

department.

Quality Control.

The proposed plan may be implemented on quality control because the complaints will be

received will thoroughly checked and will also be transferred to quality department. It will

decrease the ratio of complaints and will provide an atmosphere of trust from the side of

customers.

3.4 Design systems to monitor the implementation of a strategic quality change in an organizationDesign refers to the process of originating and developing a plan for a product, structure, system, or component. It is used for either the final planner the result of implementing that plan. There are four types of designs namely product design, process design, layout design and network design. Product design is the idea generation, concept development, testing and implementation of a product which

can be physical, object or a service. Whereas process design is a design of processes for desired physical or chemical transformation of a materials into a product. Process design can be the design of new facilities or it can be the modification or expansion of existing facilities. The design starts at a conceptual level and ultimately ends in the form of fabrication and construction plans. The interrelationship between the product/service design and process design has implications for the cost of production or operation. The product and process design can overlap and in the cases of services this can be to a greater extent because of the service characteristics of intangibility, inseparability, and simultaneity. The layout design is physical location and the arrangement of transforming resources. There are four basic types of layout design i.e., fixed position layout, process layout, cell layout and product layout. It should reflect the volume and variety. Technology is considered very important in product/process design. Technology gives the idea to the designer about the present concept of product in the market. Technologies are a broad concept of transforming the material and design it in a manner of present market need. Product/process technology is used to convert the resources into final product which is core product. It helps to develop more advance products in such a way with improved quality. It also helps to maintain the consistency of supply. Argos is a process layout, where transformed resources are put together for sale. Process design is very important in this type of business. If the process design fails the whole business is going to fail as well. For this Argos has got separate team for that which is process improvement team.Be able to implement a strategic quality change in an organization4.1 implement a strategic quality change in an organizationThe strategic quality change implemented at Argos will be the introduction of benchmarking. Benchmarking is the process of identifying "best practice" in relation to both products and the processes by which those products are created and delivered. The search for "best practice" can take place both inside a particular industry, and also in other industries. The objective of benchmarking is to understand and evaluate the current position of a business or organization in relation to "best practice" and to identify areas and means of performance improvement. Benchmarking involves looking outward to examine how others achieve their performance levels and to understand the processes they use. In this way benchmarking helps explain the processes behind excellent performance. When the lessons learnt from a benchmarking exercise are applied appropriately, they facilitate improved performance in critical functions within an organization or in key areas of the business environment. Application of benchmarking involves four key steps:(1) Understand in detail existing business processes(2) Analyze the business processes of others(3) Compare own business performance with that of

others analyzed (4) Implement the steps necessary to close the performance gap. Quality maintenance is a method for ensuring that implements a product or service is effective and efficient with respect to the system and its performance. Quality management is focused not only on product quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality. Quality Management is all activities of the overall management function that determine the quality policy, objectives and responsibilities and implement them by means such as quality control and quality improvements within a quality system. The issues related to quality management in Argos are inconsistency in maintaining the quality of the product.4.2 Embed a quality culture in an organization to ensure continuous monitoring and developmentContinuous improvement culture helps organizations to develop committed employees, delighted customers and build value added products and services. Building a continuous improvement requires a quality culture. Culture is defined as ‘the way we do things around here. The way employees actually behave, think and believe determines the culture. Culture is the personality of the organization. Culture is what employees do when no one is watching. It is a ‘walk the talk’. Consistent talking and actions matters much. Culture is the basic pattern of shared beliefs, behaviors, attitudes and assumptions acquired over time by members of an organization. Attitude shows the outlook and thoughts from which the work habits emerge. It reflects attitudes and practices related to quality systems application. Formal policies, procedures, behaviors and habits operate as the ground rules and guidelines. Vision, mission, values, goals and strategy are the guiding principles of a corporation and culture culminates from them. Corporate culture is changing fast. Everyone is expected to move at much faster speed. Operational principles for the corporations are ‘Slim, Speed and Simple’. Corporate culture is people in action. Quality culture refers to the degree of awareness, commitment, collective attitude, and behavior of the organization with respect to quality. As the culture of Argos offers plenty of products and services. The products their offer it’s almost covers all the section of daily and entertainment needs of present life. Argos sells varieties of product from garden, diy & leisure, sports and fitness, personal care and bathroom, kitchen and laundry, furniture and furnishings, baby and nursery, office, pc & phones, sound & vision, photography, video games, toys& games, jewelers& watches, gifts etc. There is a good communication between Argos management and its customers. .Its operational strength lies in its strong workforce and a very strong operating team.

4.3 Monitor the implementation of a strategic quality change in an organizationin addition to putting into practice various plans, policies, structures, new developments and the like, the implementation phase of the quality system involves regular monitoring and reporting on that implementation.Monitoring of implementation may lead to revision, amendment or adjustment of a program, course, policy, procedure, organizational approach or a plan from time to time, complementing major evaluative and other reviews within the quality system.

For each program, course, plan, policy or procedure, one member of the University staff is identified as having overall responsibility and being accountable for its implementation and for monitoring and reporting on progress.

The Vice-Chancellor and President Overview’s implementation of the Strategic Plan while specified senior staff overview implementation of tier 2 and operational plans.

The Council and committees within the University also monitor progress in implementation of plans at tiers one and two. Corporate performance reports are provided regularly to Council and these are also available to the University community,

Responsibility is assigned to specific senior staff for implementation, monitoring and reporting in relation to individual goals and actions within each plan at tiers one to three.

For policies and procedures, specific senior staff is assigned responsibility for implementation, monitoring and reporting.

Program leaders and course coordinators have responsibility for over viewing the implementation of specific programs and courses consistent with the current accreditation and approval specifications.Be able to evaluate the outcomes of a strategic quality change in an organization5.1 Evaluate the outcomes of a strategic quality change in an organizationStrategic quality change aligns the goals of the organization with the need to improve quality and customer satisfaction. The processes of the organization are re-defined to include efficiency and effectiveness at each step so as to ensure that quality is maintained throughout all the processes of the organization before the final product is produced. Strategic quality change assists in increasing efficiency within an organization and eliminating wasteful tasks. It helps an organization

better manage its resources by implementing a system of quality control that ensures cost effectiveness and expects that each of its products meet or exceed customer requirements. Overall, this helps make an organization competitive and implementation of such a system will help sustain this competitive advantage as the organization satisfies the customer while efficiently managing its resources in order to eliminate tasks which either don’t add value or are not cost effective.“Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.”

5.2 Recommend areas for improvement to a strategic quality change that align with organizational objectivesAn organization can implement a balanced scorecard in order to ensure that areas requiring improvement are dealt with. The balanced scorecard is a strategic planning and management System that aligns business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. The balances scorecard provides a framework that not only provides performance measurements, but helps planners identify what should be done and measured. It enables executives to truly execute their strategies. As Argos presently is not very well equipped with such facilities that can change the way the company replenishes the stock which can be one of the biggest problems in its operating system in the near future. Now as the world is running fast and it’s getting very hard to forecast the future of any business, the business and its operating system need to employ good technology to create a unique market position and successfully compete against the other competitors.

SummaryTo achieve quality organizations need to follow some strategies and the main objective of strategies is to achieve operational effectiveness and competitive advantage. In order to achieve strategic quality management, organizations need to get familiar with the methodology for the same and the different stages of strategic management. . As Argos is such a big company dealing with plenty of products, it is very much essential to maintain and replenish stock properly. If the stock is not

maintained systematically the organization will lose its control over business. At the end of we can say that Argos is part of Home Retail Group, the UK’s leading home and general merchandise retailer. Argos is being the only one of its kind of retailer which is very well known for variety of choice, best value and convenience.

Reference:

http://en.wikipedia.org/wiki/Guinness_Brewery

http://www.guinness.com/

http://www.mbaknol.com/operations-management/operations-management-and-its-objectives/

http://www.reportlinker.com/ci02014/Alcoholic-Drink.html/coverage/Africa:Ghana/mode/public

http://ezinearticles.com/?Operations-Management-and-Its-Importance-in-Business-

Today&id=3635617

http://www.national.com/en/quality/changemgmt.html

http://thethrivingsmallbusiness.com/articles/seven-management-tools-for-quality-control/

http://www.information-management-architect.com/change-management-process.html