Characteristic of Total Quality Management

Characteristic of Total Quality Management

In total quality management the quality is maintained through a structure system and every process is performance with a perfection to achieve an overall objective i.e. to produce quality product as per the expectation of the customers.

1. Customer is important: In Total quality management customer satisfaction is considered to be the most important aspect of for a successful business and therefore customer is provided with the best possible product at reasonable price. It is essentials for Organization to meet the customer expectation /demand in best way due to high competitive markets.

2. Internal control: A proper internal control system is operating to ensure that each department is performing the work with perfection and transferring the quality goods to other departments for further processing.

3. Prevention approach:  defect is the product are prevented rather than detected and corrected. it is proven that defect correction involve many cost and it is also damaging for the image of organization, therefore defect must be prevented rather than corrected.

4. Roles and responsibility: Roles and responsibility for quality management are defined at all level and everyone within organization knows its role for the quality insurance. Clarity of roles is helpful to establish the responsibility for poor quality.

5. Zero Defects Policy: Policy of zero defects is in place within organization and defects are not tolerated. In other word there must be a zero tolerance level for defects. This policy is an effective controlling tool for poor performance or irresponsible behavior during the process of production.

6. Wastage Elimination: total quality management believes in effective utilization of resources without any wastage. It is to be noted that an allowance of expected or normal loss is made but there is no provision for any loss above that normal or expected loss.

7. Right thing First time: Total quality management ensures that goods are manufacture without defect at at first place and there is no feeling within organization that fault may be corrected later. Relevant procedures and policies must be in place to ensure the right product at first time.

8. Emphases on costs: There must be cost emphases within organization that there are number of cost attached with poor quality and therefore quality must be ensured to save those costs. Costs emphases are required to establish a control environment within organization.

Why Quality Management is required

Why Quality Management is required

The world has moved from quantity to quality and customer is more quality conscience in the modern world. The customer is interested in high quality products and therefore organizations are required to maintain a high quality standard.

What is the meaning of quality?

Quality means that to do a job excellently. It is important to note that quality is quiet a subjective thing and therefore are number of factor involved while deciding the quality.

What is quality management process?

The quality management involves the following processes

1. Establish Standard

The first step is to establish the quality standard that is required to be met. A care must be exercised while establishing the standard because unrealistic standard not only will not be met but also de motivation factor within organization.

2. Methods and procedures

The second step to establish required methods and procedures to ensure that established standard are met. In first step we decided what to achieve and in this step we look that how to achieve. It is impossible to achieve the required standard without popper methods and procedures.

3. Monitoring

The third step is the monitoring of actual performance as per required standards. Organization must also step a proper structure of monitoring the performance in context of set standards. The results of performance must be appropriately recorded and analyzed. A proper report must be prepared for management use.

4. Control

The final stage is to control action .the control action is based on the on the monitoring reports. It must be noted that control is a continuous process and

Example of Quality process

1. Set Standard

ABC company has established a standard that customer complains will be sorted out within 24 hours.

2. Establishing Standard

Company may be set the following methods and procedures to met the standard

·         Timely complains are recorded

·         Complaints are communicated to technical teams

·         Appropriate resources are available. human resource, etc

·         Technical team reporting procedure from the fault site

3. Monitoring

The organization must monitor the actual problem solving be the technical team. This can be observed by

·         Preparing the problem solving reports

·         Direct inquiry from the customer who lodged the complaints.

4. Control

The management will take appropriate control action to improve the performance. The control action is based on the monitoring results produced during the monitoring of the actual performance and comparison thereof with the standards.

Advantages of Strategic Management

Advantages of Strategic Management

1. More profitable Operations: It has been observed that those businesses which have a structure strategic management process are more profitable and successful. Profitable operation is one of the fundamental reasons for every business in the world and strategic management helps in achieving that objective.

2. Explore Opportunities: Strategic management identifies the possible opportunities for the organization and thus management is in a better position to explore those opportunities. Similarly the organization can identify the possible threats with the help of strategic management process.

3. Improve Control: The business is being management at highest level which improves the overall control and creates a control environment within in the organization. In Strategic management roles and responsibilities are well defined that facilitate better control environment within organization.

4. Informed Decisions: Strategic management ensures the informed decision within the organization. Strategic management a lot of information is flowing to and from manager and thus manager uses those information in making medium term and short term decisions.

5. Improve understanding of business:  Strategic management requires a deep understand of the business and its environment. Business understanding is beneficial for the management in many ways and especially it facilitates the informed decision making.

6. Competition Information:  Strategic management enables management to study and understand the existing competition in the market. Better understanding of competition enables management to form appropriate counter strategy to tackle the competition. In highly competitive market strategic management has more roles because it is question of existence.

7. Problem identification: Strategic management identifies the expected problems which organization may face in the future. Timely identification of expected problem provide management a chance to adopt proactive approach to resolve the expected problems.

9. Allocation of Resources: with the help of strategic management the resource can be allocated in right place. Resource allocation is one of the important aspects of controlling costs. Strategic management we answer two important question what and how much resources are required

10. Improve Communication: Strategic management improves the communication within the organization. Lot of information is flowing upward and downward, this information is not only used for effective decision making but also improves the coordination level within organization.

11. Integration of entity: Strategic management set a direction for the organization and all individual and department try to achieve the common goals that are set by the key management. Therefore strategic management has inherent advantage of integration.

12. No ambiguity of Roles: Strategic management clearly defines the roles and responsibilities at different level and there is a structure hierarchy in the organization. Every individual in the organization has clarity of its role.

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Labour Problems in Pakistan

Labour Problems in Pakistan

The following are the major problems that labour class faces in Pakistan

1. Low Wages:  labor wage rate is very low in Pakistan. This rate is not sufficient to meet the monthly budget requirement of the labor and therefore labor class faces many difficulties to meet domestic expenditure. Labor class takes regular loan from the relatives and also takes essential items on credit.

The Government has introduced the minimum wage rate for labor class i.e 12,000 per month. No financial expert in the country can set a monthly budget for a family with this amount. Furthermore even this rate is not being paid in many cases because Government has no mechanism to implement this wage rate.

2. Poor Working Environment: The labor class works in a dangerous work environment which poses great threat to their health and lives.  Labour class has no option but to accept this environment as the labor class has little knowledge about labour rights. The laws and regulation also not implemented in true spirit in Pakistan. Therefore the labor class has accepted the condition as written in his fate.

3. No Job Security: Labour class is not offered with any job security and can be terminated from the job at any time. The labor class feels insecure all the time and this creates many social and psychological problems in the personality of labor. The labor court provides little relief in this regards. In many cases where thousands of labor are terminated with one stoke of pin could not get any relief from the court.

4. No Training Opportunity: labour is not provided for any job training this put intense pressure on labour class to learn the job by him and perform it accurately. There is no career growth opportunity for labor class in Pakistan. He is hired as labor works as labor and retire as labour. There is also no on job training facility offered to labor class.

5. No additional benefit: labor class in Pakistan is not provided with any other benefit and the wage is the only single benefit for the labour.   Labour class is not provided with any allowance like travelling facility or accommodation facility or accommodation allowance. There are also no recreational facilities for the labor .The only objective of employer to get maximum work from the labor class at lowest rate.

6. No Social Security: labour class in Pakistan is not provided any social security. They find themselves helpless in case of disease, accident or death.

7. Low Overtime Rate: The overtime rate is very low in Pakistan, and if anyone refuses to work at such rate the refuse to work at lower rate, then he is terminated straightaway. In developed world the overtime is paid at higher than wage rate but in Pakistan it is paid lower than wage rate and owner consider that this is the right of employer to ask the labor to work on overtime. The owner deem it provide an opportunity to earn more and labor class also think on same lines.

8. Illiterate: The majority of labor class in Pakistan is illiterate therefore they cannot raise their voices for their rights and there are very few forum available for labor rights, even those forums rarely provides any relief to labour class, so effectively labor has no place to raise his voice for justice.

 Due to illiteracy there is no coordination among the labor they don’t believe in unity and they don’t understand each other point of view. They take the difference of opinion as rivalry and start a cold war against each other. This situation is really favorable for the employer.

9. Manipulated by labor leaders: The labor class in Pakistan is also used by labor leader for the personal advantage from the industrialist. This is the reason that the condition of labor union is improves in days and labor condition further deteriorates.

10. No Profit Sharing: There is no such concept of sharing a profit. The employer enjoys the full profit.

Characteristics of Vision Statement

Characteristics of Vision statement

There are number of purposes that a vision can serve i.e. reason of existence , core objective , core values etc. normally vision statement is too short to incorporate many aspect of the organization and therefore only one aspect is targeted in the vision statement.

1. Real:-The vision statement must reflect the reality about the organization. Therefore Vision statement must be a combination of artistic value in its design and reflection of entity’s the reality.

2. One liner:-There is no rule for the length of the vision statement, but normally vision statement consists of one line and that line briefly reflects the concept behind the visions statement. For example a vision statement may be “we care the customer”.

3. Unique:-The vision statement must be unique in its idea and must be able to produce the brand image whenever customer reads or watch the vision statement. The purpose of the vision statement is lost if it is copies from somewhere with slight change in wording.

 5. Impact:-The vision statement must be able to create an impact in the customer mind.

6. Easy:-Vision statement must be easy to read and remember. Vision statement must not use the difficult words and phrases and only common vocabulary be used and those words which are difficult to pronounce and spell must be avoided.

7. Relevance:-Vision statement must be relevant to industry and business activities. We care the customer is not a relevant for a professional body provides training. This vision statement is more relevant to industry which provides a comfort level to the customer.

Stages of Strategic Management

Stages of Strategic Management

Strategic management is considered to be a crucial management activity for all level of organizations because it try to ensure the future existence of the entity. Strategic management has a structural process which can be broadly divide into three stages i.e. Formulation Stage, Implementation and Evolution.

1. Formulation Stage

In formulation stage long policies are formulated based on the internal and external assessment carried out by the management. The organization deeply studies the organization strengths and opportunities and also takes into account its weakness. At this level a broad direction is set and major decision related to direction is taken.

The major policy decision may include the organization capital structure, organizational entry in new market, decision related expansion and diversification, decision of vertical and horizontal integration etc.

2. Implementation Stage

In implementation stages decision and short term policies and procedure adopted in the light of the overall direction set in the formulation stage. Normally at this level tactical level of management have more extensive work.Strategic implementation basically focuses to answer the two question how to do it and how to do it efficiently and effectively.

The major decision and procedures are required are budgets preparation, resource allocation, organization and responsibility structure, communication and information need assessment and procedure to fulfill those needs.

3. Evaluation Stage

In evaluation stages the strategy implementation are evaluated and problems related to implementation are sort out, policies are plans are revised in the light of operation results obtained from the implementation of strategies.

Evaluation serves more like a control stage of the strategic management. This is not sufficient to prepare the ideal strategy. Evaluation also recognizes the importance of the control and flexibility of the strategic management process.Evaluation can be further classified into two stages i.e. performance analyses and corrective actions.

Reasons for Discount offer

Reasons for Discount offer

There are number of reasons for discount offer on the goods. Some important reason discussed below

1. Stock Clearance

Discount offer is very effective tool to clear off season stock. For example if the summer season is at end then company supplier would not want to ties up its funds into the off season stock.

2. Liquidity Problem

Business needs hard cash for the operations and if business is finding difficult to generate funds from the operation then business may opt for some discount to improve the liquidity.

3. Contribution

Discount offer can also improve the total contribution to cover the fixed asset. In businesses with low fixed cost the high turnover may improve the profitability. Therefore discount can play an important role to improve the profit of the organization.

4. Competition

Discount offer is some time is offered to compete in the market. If the competitor is offering discount in the market then entity has no option but to offer the discount to compete in the market.

5. Bulk Order

Discount is also offered to get bulk order. There are number of advantages attached to the bulk orders therefore entity prefer to get the bulk order instead of chasing too many customers.

6. Short Term Boost

Discount may be offered as promotional activity and to improve the market availability. The short term boost is required for many reasons i.e to counter competitor new launch, improve liquidity etc.

7. Low Quality

Discount is also offered on low quality product or faulty product. This type of discount is very famous in the garments and shoe industry.

8. Save Cost

Discount directly and indirectly saves many costs. For example it reduces the cost related to stock storage due to low quantity of stock is expected after discount offer in the market.