A small service sector company management essay

Quality ProjectContents

Introduction

In the today’s modern world competition is very tough, companies are coming in a bunch hence quality has become an essential factor for achieving competitive success in the market, delivering good product and services are the necessity for an organization to retain their customers. International management and Construction Corporation is dominantly a sustainability consultancy firm, commercial management and a construction company which is dedicated to a highly qualified team of professional who always aim to minimize the gap between availability of available resources to the number of development projects running in the country. The group has a build reputation as being a single door step shop for receiving quality product which are safe and as well as environment friendly. IIMC is a committed group with the implementation of clear integrated safety, quality, health and environmental policies in the region. Manager continuously setting effects which could help to meet the above requirement and only because of their tireless efforts and commitment to the company, the safety performance is being accredited by OHSAS 18001-2007, ISO standard 14001-2004 and ISO 9001-2000.

Company background

Company history

IIMC establish in the year 1981 in Abu Dhabi as a small service sector company to meet the people demand for rig fabrication and other associated services both in UAE and all over the Gulf region and now because of the group continuous commitment they have expanded their area compromising of six enterprises which includes Gulf piping company, Gulf specialized mechanical and engineering service company limited, Bin Saleh travel agency, Abu Dhabi coating enterprise, International metal and construction company limited and Trans Gulf Port Cranes and has become one of the largest service sector company in the Middle East region. (Publishing, 2010)SWOT analysis

Strength –

The company has a good strength of employees. There are about 6000 worker working daily for 12 hours in a day. The company has aligned with largest service organization present in Middle East. The company includes its service in the area of fabrication, construction, maintenance and engineering related services. The entire group is committed towards bringing international quality standard into the working procedure. Availability of low cost workers throughout the country.

Weakness –

There are chances for natural losses may be machines are not working properly. Regular changing requirement of skills put the company in a difficult situation to find correct employee for the job.

Opportunities –

Developing of new supply chain through getting involved in new projects which enhances the chances to expand business. Continuous improvement in the technology is creating more opportunities for the company to expand. Undertaking projects enhances the skills and market coverage area.

Threat –

Current economic instability in the country may be put an adverse effect onto the company performance level. Natural calamities are always a threat and can reverse the company performance.(IMCC operations, Abu Dhabi, 2012)Objective – the company emphasis on putting their customer preference and satisfaction at top, they target to deliver product which could meet to their requirement both in terms of reliability and quality. The company always acts in accordance to their customers and within legal boundaries to set the required standard. The company is improvising to adapt measures like reduce, reusing and recycling type methods as an initiative to prevent pollution in the region. Competitive strategy – company has targeted to implement integrated quality system into the system and to achieve the desired target the company plans to emphasis on the following points: Continuously accessing their operational activities, reviewing them for any scope of improvement. Providing training and educational facilities for the employees to enhance their skills. Performs internal auditing inside the company for promoting customer satisfaction. The company has adapted to Zero tolerance policy and with the implementation of the policy they target appreciating good performance and actions while suggesting the employee who is not performing as per the task given. Promoting team working spirit inside the company rather than individual performance.(IMCC operations, Abu Dhabi, 2012)

Competitive strategy alignment with the company’s TQM strategy –

IMCC group is committed towards achieving health, safety and quality standard in their organization and even expects other organization with whom the company is doing business to show the same level of commitment. The company plans to: Meet all the requirements of his client with proper legislation application. Set of the quality target for his employees to achieve them and identify its significance. Review and monitor the daily working activities and periodically viewing the effectiveness of QHSE managing system on to the company performance. Ensuring response from employees for the availability of resources and information required to them for the betterment of policy. Educating, training and motivating employees for carrying out the required task in a proper manner. Working in accordance with the suppliers, customers to achieve the target aim as being desired. Assessing to all potential changes and operational activities which are required to be modified for preventing environmental hazard and in place implementing measures which are practically less risker. Competitive advantage – the IMCC group has collaboration with Abu Dhabi six most equipped fabrication companies, they all together represents the largest service organization in the entire Gulf-Middle East providing clients with a single doorstep shopping for oil and gas offshore/onshore industries and other desalination/power plant. IMCC project management is a trusted name in the region; many big business men and government institution join the company to seek advice. They provide their client with the required information and help them to easily handle their strategic decisions. IMCC green is another trusted name when it comes talking about sustainable development discipline, they provide their client with high standard of service ensuring them with economic benefits along with maintaining environment friendship and integrating cultural and social interaction in the business flow. IMCC general contracting and Maintenance Company target at construction projects ranging from medium to high level work, providing their client with the complete real estate solution at a single doorstep. Mission – the company is focused at introducing new ways for the betterment of their clients and for the industry, regularly challenging their own existing quality and try to provide their customer with a more superior quality product for their use which even the customers are not expecting. The company is targeting to meet the requirement through effective implementation of their quality management system and maintaining a competitive price range in the market. The group is dedicated in not brining motivation within their employees but to excel in their field of working. (IMCC group, 2010)Vision – the company target to provide their clients with a world class service and become the regional leader for commercial and project management, thus setting a proper standard which is economically sustainable to have a sustainable future development in the region. (IMCC group, 2010)

Overview of Current TQM System

The current TQM System which is operating in ” International Management and Construction Corporation (IMCC) Operations, Abu Dhabi” is a continuous process of management philosophy which is optimized by the company to improve the overall performance of the company by focusing on the departments as per the requirements i. e. optimal focus on each department. The name of the company IMCC operations only suggests that the company works on the services level which can determine the presence of the company only when they can provide their customers with better quality and at cheaper rates to gain the maximum satisfaction level of the customers and make them feel lucky to enjoy the services provided by the company to them. The main aim of introducing TQM in the company is to make the employees work together as a group to achieve the goals and objectives of the company and get focused on the overall company’s performance by not involving the criteria for the judgement of individual performance. The vision of the company behind introducing TQM in the company is to judge the level of services or the ability of the company to provide maximum satisfaction to the customers. The company is aiming towards to become the world class company in the sector they are in and no one could match them in the level of logistics services the company is providing though presently the company is working hard to improve their engineering sector at its maximum extent by adding more calculative and innovative designs which can add value detaining in the structural and mechanical department of the company, targeting to maintain the quality standards to their customers by making the employees aware of their individual importance for the growth of the company co-relating their own individual growth as the measurement of the projects being completed by the company depends on interest shown by the employees towards there working procedure and motivational spirit provided in the company. However, increase in the efficiency in their working force for completing the business processes’ implies that TQM not only performs managerial requirements of the company but also helps to identify the flow of processes’ being performed.(IMCC operations, Abu Dhabi , 2012)

TQM principles and Quality Philosophies adopted

Benefits from the TQM practices to the company – the company’s prime target is to make their customer satisfied with the product and service they are providing to them is per their requirement. Basically the factors which determine customer satisfaction are: Quality of supplyProduct installationPerformance of the product, ease in the use and controllabilityService provided by the companyMaintainabilityReliabilityIMCC Operations is mainly comprised of the factors such as consistency in the level of services, perfection in the job work performed, reduction in the time consumed to complete the project, matched up the rules and regulations of the company with the procedures and practises followed by them, reduction in the abnormal waste or the controllable waste of the company, promoting customer satisfaction at the maximum level and the customers and employees to feel easy and pleasant by being an important part of the company. The benefits from TQM can be processed as improvement in the quality with less mistakes i. e. improvement in the productivity by well-maintained cost and time management. This helps in capturing the market of all-round the country and regularity in business processes’ for earning short-term super profit and long-term strength to compete in the market. However, TQM provides a continuous never-ending improvement for the company to allow it to focus completely on the customers and even customers are satisfied, thus create empowerment for the employees to work actively in the company. Though, TQM needs to be corrected on regular interval with the help of Process Management which helps in managing the quality of supplier and designing in their work process terms, to use the quality tools in best utilization form for training and development of the employees to meet the requirements of their customers. IMCC has been very successful with the implementation of quality management in the work force and it can be judge by the fact it is one of the biggest service organization in the Middle East involving in the both upstream and downstream development projects, the managing system is being recognized with the ISO 9001, ISO 14001 and OHSAS 18001 certificate for quality.

Barriers to implementing TQM

The company is founding is difficult to overcome the barriers such as existing culture which is not allowing it to effectively implement quality management technique into practice and even the managers are not supportive in the processing but they identified the inconsistently in the working which was losing the market grip from the company hand thus allowing open communication in the group, communicating company vision, mission and target which is needed to be achieve and giving them regular training and education support to make the employees identify the ways and needs as to why quality maintenance is important for the customer retention and satisfaction. (ENOC, 2006)

Evaluate the company on its use of the Deming philosophy and PDCA Cycle

The company’s usage of Deming philosophy and its application is as follows: –

The IMCC Operations is a part of an industry which is very much complex diversifying and unique in its nature, it allows TQM to adopt a similar kind of technical design for all companies coming under this industry and for the Deming philosophy was commonly used to maintain the laws and procedure of the companies at its initial stages but as the technology and innovativeness in the ideas for understanding new alternative depths of the philosophies improved Deming philosophy served as a major contributor to the principles used for implementing TQM and thus was termed as the major applicant provider for TQM. Deming philosophy was created to remove the mistakes which were generally carried out by the companies over implementing the Total Quality management since the technology was very outdated as compare to the present generation technology at the time of applicability of Deming philosophy. The major things or points covered by using Deming Philosophy’s apply on IMCC Operations are as follows: -Keeping a consistency in the improvement process for the company. Proper planning process held to gain stability in business. Believe in change i. e. stoppage in resistance to change. Maintenance of good long – relationship with both the customers and the suppliers of the company along with considering the employees suggestion whenever it is required. Presenting new innovative training and development techniques to improve the condition of employment i. e. reduced turnover ratio. Build up understandable working relation with the employees so that they can exchange their own views with the higher authority of the company. Reduction in the paper work of the company by promoting online or desktop work. Removal of the barriers to TQM. Promote motivational spirit with enhancement in the psychology with which the employees are working in the company.

The company’s usage of PDCA cycle philosophy and its application is as follows: –

At IMCC, managers understand that to succeed they had to plan their task according to their client’s choices along with providing sustainable solution to retain a quality environment. Hence company has formulated certain guidelines to follow to meet up the challenges and concentrate upon developing, planning a standard output to meet the demand. The planning process of the company includes the targeting of task to be completed with proper schedule to provide reasons and commitment in taking the project. The project for the which the company has provided their commitment to do the work on time should be followed up by proper training methods and applications which could match up with procedures and practices to be followed for the project and complete it in time. The final check or evaluation for the project should be done for analyzing that same mistake or error is not being repeated while the performance of service is been consistent as per the client requirement. The activities performed also includes the feedback from all the individuals attached to the company either internally or on external basis basically including the employees, customers and the suppliers through which the top management can do analyses and decide for their future appropriate actions and perform their planning process accordingly. (IMCC group, 2010)

Leadership status

Describe and evaluate the overall leadership style in the companyThe leadership style followed in IMCC operations is somewhat participative type with a tinge effect of autocratic leadership style as required by the top and middle level of the organization. The company makes use of the style as per their project requirement. Generally, autocratic style is used only when the organization is required to take certain decisions without consulting to the managers. However, the participative style is used to transfer the roles and responsibilities from one person to another as per the requirement of the organization. Evaluate the leadership principles that are adopted by the company’s leaders. Are they consistent with the principles adopted by quality leaders? How? The leadership principles which are applied by the leaders in IMCC Operations are as follows: -Complete knowledge for the needs and desire of the customer to maintain the ethicality of the company. Acquire of the philosophies of great leaders to provide full support to the sub-ordinates for completing the task aligned to them. Set an example to the sub-ordinates to maintain sound flexibility in technicality and supervision methods led down by the leader for his group members. The above principles are in consistent with the TQM applied inside the company because these principles helps in integrating of the business process for getting the output in most efficient way helps the leaders to control the employees for completing their desired task and helps in generalization of the goals and objectives for the individuals to make them focus on the desired task. (Hedley, 2010)

Employee involvement status

What concepts does the company follow to achieve a motivated workforce? The concept used by the company to achieve a motivated workforce is to provide the workforce with clarity in the goals and objectives they have to achieve on accounting their own needs with the job and provide them with certain fringe benefits such as travelling allowances, extra pay for the work completed in addition i. e. more than desired. However, caring working environment provided by the top level to their working force with regular praise and recognition for the task completed by them helps the employees to get motivated. How does the company find out what its employees’ needs and requirements are? The company usually conducts small get – together for the employees to express their views on the working condition of the company where they can provide their suggestions for the improvement in the working environment, the company provides the employees with the feedback boxes where they can come and write over the lacking sound working environment to get maximum results or output. However, at the lower level the supervisors are provided to have cumulative feedback of the lower level of the company to reach to the top level. How does the company act upon the findings? The company analyses the feedbacks provided by the working force of the company at all the levels and then figure outs the common factor which is pushing the working force behind their actual efficiency and effectiveness for the task provided to them, managers provide their view point over the feedbacks given by the employees. Finally the company reaches to the conclusion and tries to provide the employees a healthier working environment at their maximum level by the consent of all the members present at the top level.

Customer satisfaction status

Some of the main customers of the company are: EtisalatADWEAADGASGASCOSIEMENSABSThe company emphasis upon their customer feedback as a tool for regular improvement, believes in taking initiative and they communicate with their customers directly about the concerning elements to make sure their quality standard is up to the required mark. According to the feedback obtained the management department try to meet the specified requirements, identifies non-conformities present, performing internal auditing process to investigate the issues which are being raised up by the clients in order to improve them and promote the customer satisfaction level. Company has adopted to a ‘ Zero Tolerance Policy’ for reporting what are the misses and good practice which are appreciated by the customer in the current financial year and according to the needs they change their processing level with including best industrial practices which are being appreciated by the customers and eliminating the bad errors encounter in the financial year. (IMCC operations, Abu Dhabi, 2012)

ISO certification

Yes, the company is ISO certified with ISO 9001, 2000 for quality and 14001 for environment.

Steps needed to get an ISO certification are as follow:

Highly visible top level managementIt is essential that the senior managers promote environment managing system inside the organizationInclusive initial assessmentDetailing gaps present in the existing system which are putting an impact on the environment. Site base champions at functional levels leading to the program execution. Showing enthusiasm and can do attitude in the program. Detailed reviewing of conformance and complianceChecking environment policies with the legislative requirements are satisfying. Integrated system documentationIntegrate the system to meet the required standard. Awareness and educationTraining is needed to educate employees on environmental issues. Internal auditingFor ensuring the required elements needed for the certificate are completed or not. (EnviroRisk Management, 1996)

Benefit gained because of certification

It is a very powerful marketing toolCustomer chose the product with the mark, they feel assured of quality. Long term quality assurance in product and services thus providing a better environment for the customer.

Benefit of getting the certification

Consistency in day to day operationEnsuring the products and services are set to a quality standard along with meeting to the customer demand. Operational cost gets reduced while efficiency increases.(Nurre & Gunaman, 2000)

Continuous Process improvement

TQM tools applied by the company are: Matrix diagramThis shows the relationship between two or more information with illustrating the role of each and every individual in strengthening the required target to get complete. PDCAThis model is use when undertaking any new projects then going step by step to implement the process. Firstly planning, checking the changes needed, reviewing the effects and then taking the required action. Check pointsRegular monitoring the process to be sure it is being going smooth and easy. Yes the company is very successful with the implementation of the following tool into organization practice. Matrix diagram –A matrix is formed based upon what are the client’s requirements to the choice of material needed for the specification and base upon specification layout a list is prepared to check the materials which are hazardous for the environment and which are harmless. D: projectsovember 2012Capture. PNGPDCA – company’s environmental manager passes down the guidelines and measures to be undertaken for the project execution, he takes the initiative for any corrective measure and checks for the effectiveness that whether the quality related activities are proceeding in accordance with the requirements. D: projectsovember 2012quality projectCapture1. PNGCheck points – the environment mangers coordinates with the process department and the supply department for ensuring that the selection and utilization of the personal has meet with the client requirement both in terms of cost and quality.

Quality measurement tool undertaken: Six Sigma

Yes the following implementation is effective because the group is committed to change, focused at implying tools which could reduce the cost and other key metric. The group emphasis on improvement and hence provides education and training solution to their employees and though the group target quality but also ensures expected return for their made investment.

Barriers faced by the company

The employees tends to sometime resists changes, sometimes they think even taking new responsibilities might be result in failure to them and they might lose their job therefore to overcome the barrier it is essential to have a right communication and their views must be taken into consideration while making decisions.

Recommendation

To improve the TQM practice inside the organization some recommendation needed to be follow are: Promote team work involve clients, suppliers and employees together to have a clear communication for achieving the required target. Failure shouldn’t be just isolated but should be taken as a learning tool to create a better model. The company must satisfy their suppliers with providing them clear instruction and requirements they are needed with the material. Praising employee for their work helps as a motivational tool to keep them work consistently. Providing employees with training and educational facilities for continual improvement and enhancing their skills. Considering employees point of view like sharing information, offering alternative path to follow to perform task, directing them to the path they needed to follow for better result. Focusing on brain storming activities serve as a good method to improve quality, this encourages employees to share their ideas, encourages participation and can provide with the direction which could lead to better quality system with cost reduction. Commitment of top management is very essential to direct and implement policies and take corrective measure to ensure HSE activities are working in accordance. Adapting to measures such as reuse, reduce and recycle technique to prevent emission of harmful material in atmosphere. To continuous monitor the procedure and try to prevent accidents or damage causing harm to the environment and to the employees as will help in keeping consistent performance.(business knowledge source website, 2010)