Quality management is a crucial process in which firms usually undertake different methods and strategies so as to maintain the interest of customers in the company. The present study has been made on Nestle which provides range of food products to the customers and this makes the company largest food provider in the world measured by revenue ratio (All About NESTLÉ, n.d). Thus the present study has been describing different approaches to quality management along with the benefits it provides to the business. A range of quality control methods are discussed in the study which Nestle has undertaken for improving the level of services.
The ways through which Nestle conducts continuous improvement in quality aspects is also mentioned in the subsequent research report. Furthermore, the study is also describing benefit of user and non user surveys and it aids Nestle in improving the quality of service provision. Despite the entire discussion, importance of communication and record keeping has been studied. Moreover apart from that, the processes inspection and quality assurance and its role in quality management have been stated. The key objective of every business is to derive customer satisfaction so as to maintain quality aspects; hence all such objectives are presented in the subsequent research report.
Task 1 Understand the different approaches to quality management appropriate to commercial operations
1.1 Discuss definition of quality and service provision and bring out its importance in quality control
Quality is the aspect through which company analyzes how much it is able to meet the needs and demands of the customers. In contemporary scenario, quality management becomes the major aim of the business since; customers are highly emphasized towards qualified products and services. As per the view of Sumner (2004), “Quality can be defined as a measure of excellence or a state of being free from all defects”. It is becoming the major objective of business since; it assists firms to get many benefits. Quality plays crucial role in organization development through this only, success opportunities can be encouraged (Brief History of Quality: how the concept of quality has evolved, 2014). Nowadays, organizations have been managing several quality aspects through different tools and methods which also aids in positioning the business valuable at market place. For instance- Nestle is populous in food products as the business is extremely concerned about quality facets and services. Another example is retail organizations of UK, which serves prominent food services to the customers (Fitzsimmons and Fitzsimmons, 2000). Quality control methods are essential for managing any sort of process and that could also assist Nestle to enhance the efficacy of the business products and services. In the process of quality control, it is vital for Nestle to have adequate amount of information about quality standards and provisions so that adequate changes can be executed in the work processes. Quality can only be controlled and improved if the business is able to manage all the service provision as per quality standards and benchmarks. When business finds any error and constraint in quality of products and services, then it can make accurate changes as per the determined quality standards.
1.2 Explain the process of inspection and assurance in quality management
The process of inspection is carried out with the purpose of analyzing defects and errors in production processes and this is also suitable in terms of assuring quality aspects. Nestle has taken appropriate approach for inspecting quality of service provision which is being mentioned here:
Pre-inspection activities: These are the activities conducted by the inspector in preparation for the inspection which include the review of - the facility's permits to operate, the facility's compliance history, and other applicable requirements (Gray, 2011).
Inspection: Here as per the approach, business managers of Nestle conducts direct inspection with other authorities so that, the level of service effectiveness can be ascertained. In order to inspect th3e service quality, Nestle eventually sets some standards so that quality processes can be measured respectively (Lagrosen, 2003).
Close conference: Afterwards, close conferencing is required as with this, findings can be presented about entire processes of Nestle. Business managers are required to submit proper documentations to the board members so that, the areas of improvement can also be identified.
Hence, the subsequent process is being conducted at Nestle for a long period which assures the employees to deliver better services to the customers and alongside this it is also vital in terms of acquiring more opportunities for growth and success (Elyse, 2006).
1.3 Discuss a range of approaches to quality management
The types of quality management approaches can be classified into various categories such as Crosby approach, Deming and Juran's approach.
Crosby: Crosby has been emphasizing on diversified principles which can be used for the purpose of augmenting the quality aspects in Nestlé’s business processes. Similarly, the manufacturing unit has been using this approach by defining several quality standards so as to meet industry standards (Approaches to Quality Improvement, n.d). There are four absolutes of quality management necessary for conformity which also aids in aligning customer needs.
Juran's approach for quality controlling: Juran's approach to quality management had Japanese roots in which he mainly emphasized on three aspects which are essential for Nestle to carry out into practice. Quality planning involves building awareness to improve the service provision and for that management commitment is required the most. After that quality control process needs to be carried out so as to test products and services as per their quality standards (McCollum, 2004). Another significant component is quality improvement which is a continuous pursuit towards perfection.
Deming's philosophy of TQM: As per the approach, Nestle should design quality products and services according to the needs and demands of customers so as to reduce waste attributes and simultaneously this can increase quality aspects with limited allocation of resources on processes (Sumner and Thorpe, 2004).
Compliance model: The model establishes different standards and criteria which could assist in enhancing the standard of services. It also develops processes for ensuring consistency of assessment both within and between service providers and users. The model is cost effective and it requires centralized systems for regular reviews and audits. It set standards for quality management as per TVET provision.
Evaluative model: The model is highly committed to quality assurance and continuous improvement within the subsequent sector. The main purpose of the model is to make the business entity realize the need of quality assurance for the customers. The model has sub standards similar to ISO 9001- 2008.
1.4 Explain the similarities and differences between different methods of quality management
All the mentioned approaches of quality management are contrary to each other; however all works for similar purposes that is to control quality facets. All the three experts have stated quality approaches which are quite beneficial from different grounds. Hence their work significantly impacted industries and as a result helped in deriving customer satisfaction, employee satisfaction and management of better relationships with suppliers. The approach given by Crosby is based on several principles which aids in managing quality aspects in effective manner and this is also useful in terms of enhancing customer base (Sichtmann, Selasinsky and Diamantopoulos, 2011). However the approach of Juran has been emphasizing on planning, controlling and quality improvement aspects which is quite contrary to Deming's approach of quality. Quality planning is required at each stage so that Nestle can augment the value of service provision and this is also crucial in terms of facilitating varied changes in the business. Nevertheless, Crosby was a contemporary leader of TQM and he made distinct layman to implement the system by breaking it down to a comprehensive ideology. Therefore Crosby re-defined quality to mean conformity to standards set by the industry or organization that must align with customer needs (Nanda, 2005).
All the above mentioned approaches are useful for diverse purposes which assists the business to enhance the standards of quality and also to deliver prominent services to the customers. It has been observed that Total Quality Management is one of method that helps business to produce zero defect products for optimum delivery of customer service. This also enhances service capability of the business and as a result, services of the business can be differentiated from other rivalries. All the mentioned approaches are helpful for diversified purposes and that mainly assists in redefining the processes of the organization. The developers of the approaches have stated that the process of quality management should be on the basis of services delivered by the business entity. In the present case, Crosby would be the useful technique for Nestle since that assists the business to acquire attention of customers from diverse grounds.
Task 2 Understand the benefits of quality management in a business and services context
2.1 Discuss what is meant by customer satisfaction and use quality management approaches in processes of B2B and B2C
Customer satisfaction is termed as the main motive for which every organization conducts its business in effective manner and this is also suitable in terms of acquiring long term sustainability at market place. Number of ways have been explored through which customer satisfaction can be acquired like wise– by improving the existing business processes, by serving extra and additional services to the customers, by protecting the interest of customers in business and by developing varied strategies for customer retention (Schutta, 2006). It is the process which is directly embodied with employee efficiency and ways of managing service provision; however some companies invest huge resources in making the employees capable to maximize degree of customer satisfaction. Customer satisfaction ratio may get impacted if Nestle is unable to focus on quality aspects and business is unable to meet the needs and demands of customers. In contemporary scenario, organizations are developing several strategies for satiating customers on higher extent. The aim of customer satisfaction is essential in both B2B and B2C systems since both are integrated to deliver direct services to the end users. In current scenario, customer satisfaction is most essential process as compared to profitability enhancement. Nestle is also emphasizing on considering customer feedback so that customer interest level can be boosted (Pyzdek and Keller, 2012).
2.2 Explain the meaning of continuous improvement in quality management while undergoing production
Continuous improvement is the aspect through which a firm manages its service quality in efficient manner. Most of the organizations in UK market have considered quality management as their aim for remaining at market place. Nestle has been emphasizing on continuous improvement so that customers can be provided with effective services (Orwig and Brennan, 2000). This is also useful in retaining them for longer period. In order to manage quality improvement process, it is essential for Nestle to conduct proper inspection processes so that the areas of improvements can be found out. Through continuous improvement, Nestle is able to survive in long term market place and as a result, the business has acquired huge market share. It has been seen that Nestle find out the needs of changes by analyzing the processes prevailing in production department of food company. Continuous improvement is the chief aspect about quality management so Nestle has undertaken Kaizen method in which the processes of business are measured with the help of level of defects. Thus in response to that, the employees of subsequent manufacturing unit are imparted with several sorts of training and coaching sessions so that the can deliver prominent services to the customers (Naylor, 2002).
2.3 Explain the term added values and explain its types
Value added is the process in which business adds several new elements in service provision so that customers can be retained and profitability aspects can be sustained. In order to add value in the business, employees have to play crucial role in managing organization's ability. It is the process of continuous improvement which helps Nestle to manage service provision in effectual manner and at the same time, this also adds value to the business. There are several processes through value of the business can be enhanced (Nanda, 2005). The business has been allocating resources in adequate manner so that additional cost of operations can be managed effectively. Apart from this, it is also essential for the business to monitor performance on regular basis so that resource wastage can be minimized. Employees and customers of Nestle both have the capability to increase value of the business by contributing more aspects of growth and success. Hence for that purpose, Nestle has added several systems for encouraging customer satisfaction and customer loyalty which in turn also encourages Nestle's position at market place.
The enhancement Nestle gives to its products and services before offering the product to the customers and it is used to describe instances where a firm takes a product that may be considered as homogeneous product because that is indeed concerned with several differences that also makes the product more innovative. The concept of value addition defines that company needs to give additional services to the potential customers with a feature or add on provision that gives it a greater sense of value. However, in terms of economic aspects, the sum of unit profit, the unit of depreciation cost and the labor cost is the unit value added amount. This helps the business to increase the ratio of sales and revenue because the term value added is a higher portion of revenue for the companies.
2.4 Describe the types of information made available to customers and the importance given to effective marketing
Marketing plays crucial role in managing customer attention as this is the only activity through which products can be promoted in various market places. Customers are provided with several types of information through various sources which aids them to become aware about the availability of products and services. While purchasing any of the product, customer go through with different substitutes and as a result this, changes their mindset. Hence it is essential for Nestle to provide all type of information to the customers related to price, place, beneficial aspects and so on. It has been observed that price is the major aspect that influences mindset of customer and they change their purchase decision (Muchemu, 2008). Nestle has been emphasizing on pricing aspects so as to persuade customers towards products and services and for that the business brings affordable products and services for the customers. Apparently customers seems to change their mind if they are provided with word of mouth publicity and other promotional aspects. Therefore from the discussion, it is clear that through marketing activities, Nestle can acquire competitive advantage and long term sustainability. Concluding it can be said that marketing is the activity which aids business to manage its position effectively at market place (Pyzdek and Keller, 2012).
Task 3 Understand a range of quality controls and how service to the customer can be improved
3.1 Apply the concept of how quality management can be measured and also explain how it is practiced
Various options are available with Nestle through which quality can be measured likewise direct observation, monitoring, controlling and observation through Total Quality Method. However apart from these aspects, the dimensions of ISO 9000 and 9001 can also be considered for the same process as it aids in conducting business processes in effective manner. Thus it has been seen that, Nestle is maintaining quality aspects by developing standards for service provision that further also aids the employees to deliver prominent services to the customers and despite that, it could also ensure management of legal and ethical work processes (McCollum, 2004). The norms of ISO 9001 have specified several aspects through which quality can be encouraged by considering legal facets. Therefore the concept is assisting Nestle to protect the employees from illegal activities. As a result of the scenario, performance of the business is increasing and alongside this also creates healthy competition among the organization. Quality can also be measured if the business is able to monitor the performance on regular basis which is essential in terms of ascertaining areas of improvement. There are various standards which have been determined by Total Quality Management and management of such thing could aid Nestle to acquire predefined aims and objectives (Sichtmann, Selasinsky and Diamantopoulos, 2011).
3.2 Evaluate the benefit of user and non-user surveys in determining customer needs
In contemporary scenario, non user surveys are more important as that aids business to find out its actual position in customer's mindset. User survey is highly beneficial in deriving information about needs and demands of potential customers (Lagrosen, 2003). It is necessary for all the businesses to acquire feedback from users as well as from non users so that changes can take place in existing processes. Several types companies are unable to give adequate responses to the company because they do not have appropriate information about availability of such products. However on the other side, non users usually do not prefer to give appropriate information so as to keep the process incomplete. Non user survey is essential so as to ascertain the aspects that could attract other customers towards business products and alongside the survey is also imperative in terms of acquiring information about competitors and other substitutes. On the contrary, user survey is essential for Nestle for the purpose of comprehending efficiency of staff members. Apart from this, user survey is vital so as to check up to what extent customers are loyal to the company along with the possibilities of their retention (Gitlow, 2000). Concluding, it can be said that non user and user both the surveys are important for determining the factors which influences customer's preferences.
3.3 List the methods of consultation employed in one quality scheme to encourage participation by underrepresented groups
Nestle has varied methods and strategies which it can apply in the business for the purpose of encouraging participation from under-represented groups. This is also useful in improving service quality if the business is able to derive suitable participation from all the employees exist in the business. Proper consideration should be given to feedbacks of all the employees as that could also aid them to contribute in organizational success and growth. Hence it is crucial for Nestle to invite all the workforces to actively participate in suggestion session whereby processes of business can be improved (Fitzsimmons and Fitzsimmons, 2000). All such efforts are optimally required for the sole purpose of enhancing quality standards. Apart from that the management of Nestle could also organize seminars and conferences and all the individuals there should be allowed to present their views. This can remove communication gap and at the same time changes can be executed within the existing processes.
In the present case, there are various methods of consultations that can be used like survey, questionnaire, interviews and open seminars. All the discussed methods are sufficient enough to get quality information about different aspects. Here by this approach, participation level can also be encouraged from several groups and efficiency of business regarding quality management can also be identified. Information collected from different sources can assist Nestle to improve quality schemes so that further under-represented groups can be encouraged. Hence, in the present case, management of Nestle can organize meetings and seminars so as to get views and advices from the employees regarding different aspects. As per the methods of consultation, several changes can be taken place in the Nestle's service provision.
3.4 Identify the value of complaints procedures and analyze how they may be used to improve quality in Nestle
Complaint procedures are imperative for Nestle so that to identify the actions that business has taken against customer complaints and problems. All the types of complaints should be properly recorded in the database management so that Nestle can reflect their concern about customer issues. In the present organization, suitable complaint procedure has been determined which is required to maintain in all sorts of issues (Dodds, 2003). Complaint processes plays crucial role in determining the areas where improvement and changes are required at Nestle and this is also essential strategies can be further developed for quality improvement. There should be proper management of compliant process so that all the entries can be recorded along with the solutions provided. This is indeed beneficial for Nestle since it contributes in managing customer base and profitability of business.
With the help of complaint processes, Nestle can identify the areas where prominent changes can be taken place. Complaint procedures are essential so that Nestle can identify business's capability and competencies towards delivery of service provision. Customer advice is required to collect as their response counts in business processes. This is valuable in terms of facilitating appropriate modifications in the service provisions and as a result, customer satisfaction ratio can be encouraged. Complaint procedure can be used as a source to improve quality aspects as through that several changes can be made to existing processes of the organization. With the help of such processes, the company can identify how much changes they have yet made in service provisions. This is useful in terms of increasing customer satisfaction ratio and at the same time it could assist the company to get monetary benefits. This also gives a idea to the customer regarding their importance in company's processes.
Task 4 Be able to apply the principles of quality management to improve the performance of Nestle
4.1 Report on the role of self-assessment in order to determine an organization's current ‘state of health’
It is mandatory for every employees of the staff to assess its own performance through self assessment process since through that their contribution in organizational processes can be identified. Employees of Nestle can also get the idea about the way they are performing and accordingly they can take essential actions for improving their performance level. Health aspects should also be maintained in the business so that each and every employee can get maximum benefit from organizational work processes (Chin, Yeung and Pun, 2006). Moreover, concept of self assessment is crucial because it gives probability to Nestle to overcome its drawback as well as make feasible decisions in future time period. Lastly it depends on the organization as how much time it wants to give to execute the same process in the organization. Thus for that purpose, all the employees at Nestle measures their own performance through comparing actual results with the expected results.
The process of self assessment is vital in terms of identifying business's own capabilities and competencies. Through this, the actual performance of Nestle can be compared to the desired standards and according to that, the degree of efficiency can be found out. The current state of health represents the standard of business which it follows to minimize issues and constraints. Thus, self assessment plays imperative role in identifying strengths and weaknesses of the business and accordingly, business can take measures in both the cases. At the same time, organizational resources can also be used in feasible manner as per the areas required.
4.2 Evaluate the importance of communication and record keeping in quality management
Communication is the most vital process in Nestle which helps the business to maintain direct contact with customers and this is also crucial in terms of building suitable coordination level at Nestle. Communication helps Nestle to find out the aspects which should be improved; hence the concept is extremely beneficial for the business. Direct communication with the customers can also assist the business to identify their needs and demands along with the factors that persuades them the most (Besterfield and et.al., 2011). Communication is the base through which better relationships with the clients can be made and as a result, business can get the opportunity to retain potential customer for longer span. Apart from communication, record keeping is also essential so that each and every transaction made with the customers and suppliers can be protected through suitable database. Through this, top management can also find out the actions employees have taken against queries of customers. It has been observed that record keeping is essential in quality management because through that Nestle can determine the changes the business has yet taken in entire processes (Elyse, 2006).
Communication is vital in quality management process because the process allows all the employees to present their views and suggestions in decision making process which further assists them to uphold the value of business processes. With the help of proper communication, Nestle is able to determine the needs and preferences of customers and according to that better services can be delivered to them. Better communication in the organization enhances motivation level of employees and as a result, the efforts helps them to perform better for sustainable outcomes. Quality management is the process where in each step should be taken by proper care and for that it is necessary to involve all the employees.
Apart from that, the process of record keeping is also vital because that helps Nestle to find out the contribution of employees in better customer service. On the basis of past records, Nestle can easily identify the aspects that should be avoided which failed due to several courses; hence unnecessary things could be avoided from organizations work processes. Record keeping process could assist Nestle to identify the processes that are highly valuable for business. Therefore, as per the process of record keeping, certain changes can be made to quality management process.
4.3 Explain the guidelines on the stages of staff consultation necessary for effective implementation of a quality scheme
Staff members of Nestle should be involved in decision making process when the business is about to implement quality scheme for service provision. There should be proper meetings and seminars where all the employees are required to show their presence so that they can also put forward necessary advices for quality management and development.
The mentioned conditions under quality scheme should be appropriately communicated to all the employees so that defined aims and objectives can be acquired (Berwick, Godfrey and Roessner, 1990). Proper communication is required in the same field so that employees can discuss the things which should be eliminated from existing work processes. Similarly, this could also assist them to boost the level of commitment for achieving organizational aims and objectives.
Prior executing the system, it is necessary for Nestle to get consent from all the employees so that they can also put forward their suitable suggestions for quality improvement.
Equal consideration should be given to the viewpoints of all employees so that the chance of misconception may not develop. Proper monitoring and controlling is also required at the same time because that is necessary prior executing any strategy in the business.
Staff members of Nestle should be invited in consultation processes with the aim of reducing all sorts of issues prevailing in the business. While implementing quality schemes, the above mentioned steps needs to be taken care of.
4.4 Propose new systems or modifications to existing systems that could improve service quality
The business performance can be improved if Nestle is able to develop direct communication in the business which could also minimize misconceptions and conflicts among employees. There should be prominent level of communication required in the business so that all the employees can discuss the things that can be undertaken in business for further processes.
Managers of Nestle are also suggested to involve all the employees in decision making process so that quality aspects can be included from diversified grounds. This could also assist Nestle to motivate employees for better productivity (Bell and et. al., 2005). Employee engagement is one of the essential tasks that is required in Nestle so that they can be encouraged to serve better services to the customers.
- There should be clear and concise directions to all the employees so that they can emphasize on delivering only legal and ethical services to the customers.
- Quality can be improved or augmented through adhering to all the quality standards and benchmarks. This could also enhance the capability of business from several grounds. The business here is also required to identify if all the organizational practices are integrated with quality facets.
- The proposed strategies or systems should be technologically integrated so that better results can be acquired by the same (Gray, 2011).
Articulating the entire case, it is revealed that quality management emphasizes on specific standards so that value of business can be enhanced in external market place. Quality is also significant in service provision as by which customers can be retained for longer time and this also helps business to differentiate the products with to its competitors. Apparently, the business which is less concerned about quality aspects are termed as offering cheaper products while businesses serves quality services offers products on higher prices. The study has used all relevant sources to reach towards the major objectives defined prior starting the research report.
- Bell, D. and et. al., 2005. Managing Quality. Butterworth-Heinemann.
- Berwick, D. M., Godfrey, A. B. and Roessner, J., 1990. Curing health care: new strategies for quality improvement San Francisco. CA: Jossey-Bass.
- Besterfield, D. H. and et.al., 2011. Total Quality Management. Pearson Education India.
- Chin, S. K, Yeung, K. and Pun, F. K., 2006. Development of an assessment system for supplier quality management. International Journal of Quality & Reliability Management.
- Dodds, B., 2003. Managing Customer Value: Essentials of product quality, customer service, and price decisions. University Press of America.
- Fitzsimmons, J. A. and Fitzsimmons, M. J., 2000. New Service Development: Creating Memorable Experiences. SAGE.
- Gitlow, S. H., 2000. Quality Management Systems: A Practical Guide. CRC Press.
- Lagrosen, S., 2003. Exploring the impact of culture on quality management. International Journal of Quality & Reliability Management.
- McCollum, R. W., 2004. Process Improvement in Quality Management Systems: A Case Study Analyzing Carnegie Mellon's Capability Maturity Model (CMM). Trafford Publishing.
- Muchemu, N. D., 2008. Designing A World-Class Quality Management System for FDA Regulated Industries: Quality System Requirements (QSR) for CGMP. AuthorHouse.
- Nanda, V., 2005. Quality Management System Handbook for Product Development Companies. CRC Press.
- Naylor, J., 2002. Introduction to Operations Management. 2nd ed. Harlow: Financial Times Prentice Hall.
- Orwig, A. R. and Brennan, L. L., 2000. An integrated view of project and quality management for project-based organizations. International Journal of Quality & Reliability Management.
- Pyzdek, T. and Keller, P., 2012. The Handbook for Quality Management: A Complete Guide to Operational Experience. 2nded. McGraw Hill Professional.
- Schutta, J. T., 2006. Business Performance Through Lean Six Sigma: Linking the Knowledge Worker, the Twelve Pillars, and Baldrige. ASQ Quality Press.
- Sichtmann, C, Selasinsky, M. and Diamantopoulos, A., 2011. Service Quality and Export Performance of Business-to-Business Service Providers: The Role of Service Employee – and Customer – Oriented Quality Control Initiatives. Journal of International Marketing.
- Sumner, P and Thorpe, B., 2004. Quality Management in Construction. Gower Publishing, Ltd.