Quality Management Models Analysis: Philips

Quality Management Models Analysis: Philips Introduction: Technology in modern times has been one of the fastest growing industries, with its impact to overall life conditions to human being. Improvement of the existing automotives, discovery of new materials and features has leaded to introduction of different machines and electronics that is being widely used in daily basis, and life would seem to be miserable without them. Turning back to centuries ago, one may ask how the predecessors have lived and learned without the smart technique, now being part of our life. But one should not forget that it is human being who has created the luxury of having the technique being around to serve the requirements and make the life of us easier. Project has been assigned to review the Business Excellence model adopted by Philips Electronics, highlighting the role of the staff and management in achieving it, known as Business Excellence through Speed and Teamwork (BEST). The abovementioned matter will be reviewed in the first paragraph, being followed by an analysis of BEST as complementary to quality model in the next one. I will shed light on the success of the model and provide comparative application of the model to the case of bp Exploration (Caspian Sea) ltd., to discuss the possible outcomes in the third paragraph, followed by conclusion on the outcomes of analysis. Philips Electronics: Review of Quality Management System Background: The corporate slogan of Philips nowadays state we (Philips) aim to improve the quality of peoples lives through the timely delivery of meaningful innovations delivered with the promise of sense and simplicity (Annual report, 2009). The slogan has been strong attraction of the value company provide to its stakeholder as well as the process itself keeping the control of time and delivery. The commitment of the company has been displayed in the philosophy of 4 Ds: Delight customers through exceeding their expectation by product and services; Deliver great results raising the quality of provided product and services; Develop people continuous learning and development; Depend on each other work as One Philips (Annual report, 2009). Since 1891, the foundation period, Philips Electronics has developed from producer of carbon filament lamps into a worldwide company having business in three large sectors as Healthcare, Lighting and Consumer Lifestyle (Philips, Global Web page). Over the years company has enriched its capacity by 35,000 Registered trademarks, 56,000 design rights, 48,000 patent rights, 3 incubators, 7 research laboratories spread over Europe, North America and Asia, 127 Production sites, 100 countries with sales and service outlets (Annual report, 2009). Besides company has been active in life of communities through its Social sustainability programs devoted to reduction of energy consumption of products and facilities, greener products to protect the environment, support to dialog on climate change and energy efficiency and healthcare at the communities (Annual report, 2009; Philips, Global web page). Overall, company has shown commitment in support of economic growth, environmental protection and social equity in the areas of operation. Established Quality System We have already indicated the impact of the changing customer requirements and technology development on competitive environment, making organizations to adopt necessary steps and techniques to be able to fit into the real picture and be able to satisfy customers and gain business profit. One of the philosophies being adopted in organizations as an outcome of the new idea of management and instructive principle and means for continuous improvement is Total Quality Management (TQM) (Chung et al., 2008, p.369). Knights and McCabe (1999, p.198) indicate the role of TQM in pulling continuous improvement throughout the organization being customer and process oriented, where Dean and Bowen (1994, cited in Knights and McCabe, 1999, p.198) enrich the description by highlighting three main principles of TQM, practices and techniques, teamwork and customer focus. Philips Electronics, not being different to most of the market players, also has been struggling for the comfortable place under the Sun to be able to earn profits from the huge business being carried out. During the decade of 1990s, Philips has gone trough reorganization of business, shaping the orientation, selling out some of the assets, as well as employee cut backs to strengthen its position in the markets (Oakland, 2003, p.456). Understanding the role of quality in the life of company and its stakeholders management has moved up with certification of ISO 9000 for process management and application of EFQM excellence model across the organization (Oakland, 2003, p.458). The model been worked out has been named as BEST, standing for Business Excellence through Speed and Teamwork, summarizing the value and drive for continuous improvement through the alignment of goals and strategy, improvement of business processes by incremental steps and breakthroughs, achieving the excellence in performance though accelerated learning linked to the development of competence and knowledge of employees from best practices both internal and external, raising capabilities within teams and departments (Oakland, 2003, p.458). One may ask why stress has been put on speed and teamwork? The management in Philips Electronics had clear view on the importance of timely implementation of the business processes, taking the non value adding waste off, reducing the cycle time and delivering business value, as well as the efficient teamwork, through sharing the best practices and knowledge, providing support to each other being the key in competitiveness over the rivals (Oakland, 2003, p.459). Hsu and Shen (2005, p.358) indicate the important role of people in TQM as off by employee contribution and involvement, understanding of what and how in implementation of TQM initiative and feedback, individuals take the responsibility on quality of their own work, hence maximizing the outcome and business excellence. People, employees of an organization present wealthy resource with skills, knowledge and experience in certain areas and organizations cannot force them to share the knowledge until favorable conditions, where each individual is willing to do so are created (Hsu and Shen, 2005, p.358). But when people are brought together and united in the teams under relevant condition and environment for teamwork, then continuous improvement towards the set up goals is easier through sharing and proper communication among team members. The teamwork and team spirit is one of the core values that big companies, including Philips Electronics trying to achieve through knowledge management initiative, as different cultures, backgrounds, languages spoken are best eliminated in the joint healthy teams, where people have one common goal of achieving the targets put ahead. As can be seen the BEST model adopted in Philips Electronics covers all the areas of TQM implementation starting form stakeholder satisfaction, process and strategy alignment to performance audits and actions. 2 Comparison: BEST, Excellence Model and TQM Many researchers have concluded the existing quality systems should complement each other to bring the desired result for continuous improvement. The statement by Adebanjo (2001, p.40) as business excellence and quality can and need to complement each other to provide organizations with the operational and business success they aspire to and which is necessary for survival in todays market has been shared and accepted by many. The idea has been proved throughout of many witnesses as off Wade (2000, cited in Adebanjo, 2001, p.39) state Excellence model by EFQM has the same basis principles as off TQM. Looking deep into the essence of the thought one may see the roots being similar, as off thrive for business excellence, quality of management, stakeholder satisfaction, competitiveness through better resource and process management, hence proving the point raised. Coming to the matter of BEST model adopted in Philips Electronics and its role in complementing the excellence model and quality system, I would like to draw attention to the main principles of BEST to verify the point. Ho (1999, p.87) states as part of TQM initiative organizations developing corporate culture where employees are treated as the most valuable asset, grouped in teams to bring wealth of knowledge and skills and that culture helps to achieve excellence. In BEST people are being accepted as source of knowledge and skills as well to bring wealth of experience and managing quality in each of the work being carried out. Oakland (2005, p.1056) indicates that members of an organization should work together, as off cooperation among the employees is key for quality improvement. Attention to people / teamwork within the BEST model can be compared to enablers in the excellence model and internal stake holder in TQM, as off value being provided by those. Also another point could be the emphasis given to relevant tools to be able to monitor and control the processes, and performance, identifying the gaps and addressing those within applicable framework, within BEST model. As noted by Van Schalkwyk, (1998, p.124) the performance measurement system highlights the organizational commitment to the principles of TQM evaluating different aspects of stakeholder satisfaction, company responsiveness and process efficiency. Enforcement of four step cycle PDCA (plan, do, check, act) to review the strategic and operational development; Balanced Business Scorecards (BBS) to monitor the result drivers and facilitate faster decision making; Process survey tools (PST) allow teams to asses the business processes and implement improvements; PBE assessment for evaluation against the EFQM excellence model to improve process enablers and results; where headquarter audit is used for peer evaluation of business management team in achievement of excellence (Oakland, 2003, p.460-62). Considering the abovementioned facts, I would agree that BEST is complementary to the excellence model and TQM. 3 bp Exploration (Caspian Sea) ltd: Business Excellence Model Background bp is worldwide oil and gas company operating in Exploration, Midstream and Downstream. In Caspian basin it represented by bp Exploration (Caspian Sea) ltd, operating in ACG and SD oil and gas fields as per Production Sharing Agreement signed back in 1994 (bp Caspian, web page). bp Exploration (Caspian Sea) ltd has hierarchical organizational structure, with adopted quality system coordinating the collaboration. Operating Management System (OMS) is the bible of quality system of the company, presenting the BP Way, with all the relevant ISO 9001, ISO 14000 standards and process descriptions. Above-mentioned standards provide both process and environmental safety management framework, and applicable tools and techniques been established to be able to asses the performance of the company against the standards. Coming to the matter of people management, company has got staff handbook and Code of Conduct summary of behavioural culture managing the relations, staff development and problem solution. Over the years of operating in the Caspian basin the company has established good relations with stakeholders, communities and government institutions. bp Exploration (Caspian Sea) ltd, has been keen on the continuous improvement and has gained new contracts and project in the area. BEST and quality system of  BP Exploration ltd As stated above bp as global oil and gas company has a history of operating 100 years dated back in 1909. Throughout the period the company has established, reengineered and re structured its organization and quality standards as well to come up with existing model. In this paragraph, BEST model by Philips Electronics and quality system by bp Exploration (Caspian Sea) ltd., will be compared to identify the advantages and disadvantages of its adoption within bp Exploration (Caspian Sea) ltd. Speaking on advantages of the Adoption of BEST model I may indicate EFQM excellence model for self assessment, which bp Exploration (Caspian Sea) lack of. Process survey Tools being utilised in Philips at the team level are being used in the mid managerial level, causing more bureaucracy to bring up the issues on to the desk. PBE assessment can be regarded as evaluation towards the BP Way of accepted standards to verify the deviations and put actions to correct. Other aspect being regarded as advantage can be the speed of decision making or process implementation, which sometimes takes longer in bp due to natural bureaucracy and internal procedures to be followed. However, this option can also be regarded as disadvantage taking the industries the companies operate the effect of wrong decisions will be far more disastrous in exploration industry, which has been witnessed in recent Gulf of Mexico incident (BBC News). The advantages shown above from application of BEST model into the existing quality system of bp Exploration (Caspian Sea) ltd, can also be accepted as complementing factor for business excellence, model for better results and success of a company, contributing to the thought by Adebanjo (2001, p.40). The knowledge management in bp Exploration (Caspian Sea) ltd., can be accepted as more developed than in Philips Electronics. The reason behind is oil and gas field has more specifics requirements and knowledge databases to be shared across the players with lessons learned and peer review on each of the subject area. The knowledge management provided in the industry covers all the players worldwide, which allows to capture and learn more and increases the quality of sharing. In this case the knowledge management suggested by BEST model can be considered as disadvantage. The rest of the model aspects are almost generic or similar to the internal process and procedures employed in bp Exploration, as off scorecard utilisation and data usage, benchmarking, auditing etc., so those have been dismissed from comparison. Conclusion In the project we have reviewed two different quality models been adopted in Philips Electronics and bp Exploration (Caspian Sea) ltd., identified their contribution to the preposition stated by Adebanjo (2001, p.40) and compared those mutually for identification of advantages and disadvantages if adopted in oil and gas industry. Overall TQM is considered to be a framework for organizations, being customized by all the adopters to fit their specific purposes, having the key idea of customer satisfaction and continuous improvement to be kept on top. How Are Laws Made In England And Wales? How Are Laws Made In England And Wales? Parliament of England and Wales is responsible for creation of law. Parliament has three parts House of Common, House of Lords and Monarch, who plays an essential role in law making process. Legislation or statutes passed by Parliament take the form of Acts of Parliament. Parliament can also delegate some power to ministers of crown, local authorities, semipublic organizations, court rule committees, and the Privy Council (Mary Charman, Bobby Vanstone 2008). Bill first transferred to the House of Common then it will go to the House of Lords for implementation of changes if required. Before making it a law, it is necessary that both houses should agree on bill. The formal process of law creation is divided into six parts. First reading (Reading means bill first read out in parliamentary chamber); it is the introduction stage of bill into the parliament so that MP should prepare for further discussion. Second reading, in this stage, Minister in charge of the bill should explain the aim and objective of bill then he gives the answers to the MP’s question regarding bill, if MP is satisfied with the bill then vote will be taken at the end. After sufficient approval bill can be forwarded to committee stage. In the Committee stage, bill can be explained in detail and examined by MP’s standing committee, who can also add amendments to the bill. Next at stage four i.e. the Report stage, MPs can suggest amendments and then votes are taken for amendments. Third reading, it is the last stage where bill can be studied as a whole and then forwarded to the other house for amendments. In the final stage i.e. Royal assent, bill has completed itsparliamentary process and ready to become a law. In old times, it was necessary to get signed consent by Queen but nowadays Queen merely signs her general consent (Mary Charman, Bobby Vanstone 2008). A new law should be clear and understandable, Statutory interpretation is the parliament’s responsibility to make a new law clear and easy to understand (Chynoweth 2002). Thus parliament has developed rules to assist them. These rules help people to understand the laws. Primary rules for statutory interpretation can be classified into three rules, first are Literal rule; in this rule courts should interpret the meaning of statute so that people can understand what message parliament want to convey. Second rule is Golden rule; which means when law has changed according to the literal rule and it gives an absurd result it means judge should change it and make it more clearly to people. Third rule is Mischief rule; this is the rule where court asked questions to the parliament about the law like what the intension of making this law, what mistake was held while explaining the law and what would be the solution for removing this error (Eskridge 1994). This is the last stage of whole law process. Case law is refers to the judicial decision of the court. When a case is published it is known as Law Report. Law reports comprise the statement of facts, legal arguments, judgment and judicial reasoning. Only a small percentage of ‘legally significant’ cases, usually from the superior courts, are ever reported. When case law is not published (unreported), it may be available as a transcript of the judgment, or as a newspaper article. Task Two Defining Contract Contract is an agreement,created by two or more than two parties having intention to create a legal relation, which has two elements; offer and acceptance made by competent person who have the capacity to change considerations(MacMillan Stone, 2012). In England and Wales, contract is a set of terms and conditions about the selling good for example terms of sale, price, item of good, and the date of completion. When an agreement is completed and monies paid, any issue related the agreement between two parties can be raised according to the contract law. Elements within the contract law are explained below: Offer A contract begins with an offer; offer can be defined as the intension to sell something or being in contract with someone, who can accept or reject offer, on particular terms and (MacMillan Stone 2012). An offer is a proposal to sell or buy goods and services under specific terms and conditions. It is a necessary element of a contract. Offer has different forms like, television, newspaper, radio, fax, email etc. For example, a shopkeeper is offering a watch worth 3,000 it means he want to sell that watch, it is an offer created by shopkeeper to people. People can accept that offer or negotiate for the amount or reject. Negotiation process has its own elements like, statement of intention, invitation to treat and request for information. Statement of intention is the instance when a person intends to do something but it is not necessary that he will do.For example,when business people use them for proposals and college applicants use them for acceptance into a college. Request for an information means when one party requested to the other party for information, it was not an offer for example, when one party wanted to know that what would be the lowest price that he would accept, then party telegraphed to second party. Invitation to treat is an invitation to make an offer but not an offer. For example, when shopkeepers offers buy one get one free deal then it was invitation to treat. If people visit the shop, they must give people two goods in the price of one. A counter offer is the offer where one party can reject original offer and makes new terms and condition which can be accepted or not by second party (Gerald and Kathleen Hill n.d.). In other words when a person is not satisfied with original offer then he can create counter offer in which he placed new terms and conditions which can another person accept or reject. For example, a seller is selling a vehicle. A buyer arrives and offers $10,000 for the car and to get a higher price, seller counteroffer, and asking for $11,000. Communication of offer An offer must be communicated. If there is lack of communication, agreement cannot be done because a contract is an agreed bargain, and therefore, without knowledge ofoffer agreement cannot be done. For example,A and B are sitting together.An offers his scooter for 5,000 to B. reach the ears of B, the offer of A is complete. Acceptance Acceptance is the second important element of contract where one party accepts the offer and get into the contract with specific terms and conditions created by first party (MacMillan Stone 2012). In other words when a person accepted all terms and conditions of offer given by person who created an offer, then it may consider as acceptance. The act of accepting the terms of offeror is called Acceptance. For example, when shopkeeper offers a watch worth 3,000 and buyer accepts the offer and purchase that watch at 3,000 it is called acceptance. Consideration A consideration can be defined as the responsibility of both the parties participated in contract, one who created an offer or second who is going to accept that offer (MacMillan Stone 2012). For example, if one party offers a watch worth $3,000 and second party accepted that offer then first party’s consideration is watch and second party’s consideration is $3000. Task Three Equal Pay Equal Pay Act 1970 is the act which is created due to the increasing discrimination between men and women in respect to their pay, output and other incentives. After coming into force this act decreases the discrimination between men and women. It has different scenarios:- Like work, is the scenario where men and women both are working similar nature of work, but women getting low pay as compare to the men. For example: a company employs male and female both for cleaning jobs and employer also gives some additional duties to man on occasionally basis like in rainy season etc., then female has the right to claim for equal pay if employer offers higher pay to male. Equivalent work, means giving equal importance to the jobs given to man and woman both. Employer cannot consider man’s work more important than woman if both are performing similar jobs. For example: Both man and woman is doing equal jobs in an organization but after job evaluation of both management gives 6 points to men and 4 points to woman. If woman found her job rated less than a man, then women have right to claim for equivalent work. Equal value of work means where woman’s skills and efforts valued less than man’s skills. For example, an employer creates a job description about skills, and qualification for a specific job. But for the same skills and qualification woman considered less than man by employer. In this situation woman has the right to claim for equal value of work. This act gives right to everyone to get equal pay but it cannot apply for the same sex. Man cannot claim for equal pay as compare to other man. He can claim when his skills considered less as compare to woman or vice versa. Conclusion Equal pay act1970has a significant effect on the pay of women in UK. There are many changes that one can see in the states of women employees.This equal pay act has increased the overall image of women at workplaceafter eliminating all the discriminations like lower pay unequal job evaluation etc. Task Four Equality Act 2010 Equality Act 2010 is the combination of different discrimination acts like equal pay, race, disability and sex discrimination and equality on the basis of religion. After combining all these acts a new act is created named Equality Act 2010 (Britain 2010). This act protects the rights of equality of people who are of different sex, race and age. This act also provides facilities to people who are suffering from disability and of different religion or belief. This law came into force in 2010 thus it is new for everyone. Researcher want to convey all the necessary information regarding this law as it has importance for every person (young, old, men, women, gay, lesbian, or bisexual) of England and Wales therefore researcher choose Equality Act 2010. Implications for employers and employees Equality act of 2010 replaces all previous acts from last 30 years. This act has many implications on employers as well as employees. After coming into force this act has helped employees and ordered employers to add different equality policies into their organization. For example, Dual discrimination: Dual discrimination means when a person is getting treated differentlyat workplace on the basis of two different features.This provision helps employees to avoid discrimination on the basis of dual characteristics, for example a black woman can claim for equality if she is discriminated on the basis of sex and race. Discrimination on the basis of disability: Disable people, who can be treated unfavorably at workplace, can claim for equality. Employer should use occupational health provider for these people. For example, employers now providing facility to those who are unable to walk or using wheelchair by installing a ramp. Equal pay or Sex discrimination: Employer should provide equal pay to everyone (man or woman) who is doing similar jobs. For example, employer now motivating women employers as well by providing them equal pay for similar jobs. Discrimination on the basis of religion or belief: Employers now providing different facility to different cultures employees for example, offering their traditional food, cloths, resident and allow them to follow their customs. Discrimination on the basis of age: Now employers offering equal pay to different age’s people for example, oil employee getting equal pay as compared to young employee. According to the news dated, May 23, 2014 in CIPD, an employee named Anderson who was working as the mayor of Liverpool was covered by discrimination law. In the Andersen V Chesterfield High School Case, in order to fulfill his public duties in local politics, Anderson extended his leave arrangements but when he became mayor his employer ended his leave arrangement and terminated his duties. Then Anderson claimed that his dismissal constituteddirect discrimination because of his belief, which was a philosophical commitment to public service for the common good. The employment tribunal examined whole situation and found that dismissal was unfair, because Anderson was neither consulted before termination nor was he given the right to appeal This case reflects the application of Equality Act 2010 for the protection of employees (Javaid, 2014). Conclusion Equality act 2010 has helped many people in England and Wales who sometimes feel discriminated against within the organization. This act included all the provisions of previous acts like act for discrimination on the basis of age, sex, disability, race, and region or belief. Employers after the introduction of Act have introduced policies to decrease discrimination in their organization. The policies are aimed at offering equal pay to those who are performing same job, providing facilities to disable employees, hiring employees from different religion or belief. This act makes UK fair and equal for all people. References Britain, G., 2010. Equality Act 2010, Part 15, Stationery Office. Available at: http://books.google.com/books?id=5yMQHVRN-loCpgis=1 [Accessed May 29, 2014]. Chynoweth, P., 2002. Statutory Interpretation. Matthew Adshead, p.1 to 10. Available at: http://www.lawlectures.co.uk/law1/Documents-Law1/Statutory-Interpretation(Study-Paper).pdf [Accessed May 23, 2014]. Eskridge, W.N., 1994. Dynamic Statutory Interpretation, Harvard University Press. Available at: http://books.google.com/books?id=Rl2BWejLa_ECpgis=1 [Accessed May 29, 2014]. Gerald and Kathleen Hill, Legal Dictionary | Law.com. Law.com. Available at: http://dictionary.law.com/Default.aspx?selected=376 [Accessed May 26, 2014]. MacMillan, C. Stone, R., 2012. Elements of the law of contract. Stewart House, p.1 to 245. Available at: http://www.londoninternational.ac.uk/sites/default/files/programme_resources/laws/ug_subject_guides/elements_law_contract-subjectguide4chapters.pdf [Accessed May 23, 2014]. Makbool Javaid, 2014. Belief in public service protected by Equality Act. Available at: http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2014/05/23/belief-in-public-service-protected-by-equality-act.aspx [Accessed May 29, 2014]. Mary Charman, Bobby Vanstone, L.S., 2008. The British constitution, law reform and the parliamentary legislative process. In As law. p. 1 to 106. Available at: books.google.co.in/books?isbn=184392417X [Accessed May 23, 2014].