Research Topics: Quality Assurance Strategies

HONGKONG DEVELOPMENT OF U2 CLOTHING WITH THE AID OF TQM PRACTICES

Impacts of TQM Practices to the Development of U2 Clothing in Hong Kong   Introduction             The paper intends to find the impacts of TQM practices in the effort of U2 Clothing to increase its market presence in Hong Kong knowing that this may lead to market saturation as the company already established market leadership in the country and a competitive contender within the Asian region.  By using internal and market scanning, TQM practices will be emphasized on how it can improve the position of U2 to expand operations.  The opportunity to grow in the Asian market could impose minimal gains to U2 that reconsidering its development decision could be a way out of trouble.  Will TQM practices save such investment decision or they will ultimately put an end to it?  Books, journals and helpful websites will be used in this study.           Analysis of the Current Situation The mission of the company is to provide publicly-accepted fashionable and quality merchandise ( 2007).  Pursuing to be the market leader in the apparel industry, it also intends to give ultimate shopping experience.  U2 is the second chain created in 1986 after the Group became a full service and vertically-integrated business.  U2 is classified as a store chain that offers superior value to customers especially in men’s and women’s casual wear.  The initial stages of U2 started in Hong Kong and from there it has established over 800 chains in other Asian and Middle East countries.  Basically, U2 is one of the three labels of the Group with G2000 catering the career wear while UWoman on upscale women’s wear.   Its fashion leadership in the Asian region stemmed from the ability of its expatriate and local designers to innovate upcoming new trends and their effective communication to the public ( 2007).  This is supported by a merchandising information system that aids in analyzing customer preferences on a regional and store basis.  U2 is able to offer value-for-money products because of its corporate resources such as having its own pattern-making and sampling studio, application of global standards in assessing quality and outsourcing fabrics directly on the mills.  With these, there is an assurance to achieve successful product introductions and workmanship/ fabric quality at lower costs.   Human resources also receive substantial investment from the company assuring a multi-level and continuous training ( 2007).  Store lay-outs and interior environment are managed by specialized interior designers to secure latest approach in retail environments are highlighted.  In its regional expansion, U2 generally enters partnership with already established local retailing companies and assures enough capitalization by contracting under franchise agreement.  However, regional stores carry the identical concept and image of the company by using the same shop lay-out, decorations display and advertising campaign.  The growth strategy of U2 is considered as gradual/ evolving type and the company does not intend to pursue a one-time and big-time approach to decision-making.  Its line of products as well as store outlets is genuinely classified for easy retention and recognition of different customer clusters.  The company is totally Asian and prevents direct competition with European and American brands by concentrating in the region.  The company also caters to high-end market and perhaps career people and uses focus differentiation strategy.  In such strategy, U2 is seen as a company that uses its core competency to serve the needs of a particular market niche in the provision of goods and services that can be perceived by customers in ways that are important to them ( 2003 ).                   In the aspect of corporate-level strategy, U2 is applying transnational strategy where the firm achieves regional efficiency and local responsiveness ( 2003 ).  Although this combination of efforts is hard to maintain, the firm uses flexible communication with the support of its merchandising information system.  With regards to total quality management (TQM) issues, U2 is on top of the key TQM assumption that “the costs of port quality are far greater than the costs of developing processes that produce high-quality products” ( 2003 ).  It has resources and adaptive mechanisms that are customer-oriented while its mission and corporate values continuously strive to exceed customer expectation.   Analysis of High-End Asian Apparel Industry             Scale advantages in the industry are low because private labels became one of the most effective marketing tools among garment retailers ( 2006).  As customized products are also not manufactured in volumes, scale advantages are overtaken by new flexible manufacturing systems like mass customization.  However, for big clothing companies such as U2, scale economies will be an effective platform in marketing, research and purchasing activities but small players have their own niche that will not prevent them from catering to their specific needs.  The industry has high product differentiation because players are vying for quality rather than cost features of their products.  As a result, new entrants must overcome customer loyalties by developing long-term strategies as lower prices will not substantially affect high-end customer preferences.               Capital requirements are medium to high due to resources required in acquiring customer trust against global competitors.  The huge investment will be most likely allocated in research, marketing and manufacturing operations where they serve as critical business functions.  On the other hand, Asian countries also provide least-cost labor inputs that entails establishment of local offices of Asian players ( 2007).  Switching costs are high because high-end products create customer loyalty though quality perception and status representation.  This means that a new entrant must surpass the features of the existing brand not only on pricing but more importantly formation of much better product.  As players such as U2 builds customer relationships reflected on their products and store environments, the psychic costs of customers in switching products is also far greater.               The importance of the access to distribution channels is also high as online shopping does not replaced in-store shopping ( 2006).  Strong regional brands will have a better chance to be carried by regional distributors.  Although clothing companies can establish both their retail and manufacturing offices in different Asian locations, the loss of strategic markets in a particular country would adversely affect the cost-and-benefit evaluation of the undertaking where a distributor can suffice.  As scale advantages are earlier deemed to be low, cost disadvantages independent of sale tend to be high where players can develop their product to any willing buyer across countries.  Government policy is low evidenced by the elimination of textile quotas among WTO members as well as the liberalization of Hong Kong and Mainland industries under CEPA ( 2006).               Industry prominent manufacturing retailers include Baleno, Bossini, Crocodile, Episode, Esprit, U2, Giordano and many others ( 2006).  But most of them do not cater for value-for-money products like Esprit who has 11 product lines that cater to women, men and kids that favor youthful stylish lifestyle at affordable prices.  The same market belongs to the interest of Giordano.  As a result, players like U2 who caters on the high-end market will have to face European and American brands in Asia as immediate competitors.  With players having major stake in the industry, placed substantial resources and industry growth is constrained, they would face a medium expected retaliation.  This condition is possible because fashion trends will have different meanings to customers that competitive action would face an indefinite competitive retaliation.               As clothing industry has reputable manufacturers and considered as major manufacturing sector in Hong Kong ( 2006), the bargaining power of suppliers is low.  The primary supplier which is the textile industry in Hong Kong alone has 90% of its output sold in Asian countries.  This will show that there are many reputed textile suppliers in the country especially the isolation of sophisticated and high-value added fabrics in Hong Kong and dispersion to other Asian countries of the low-cost type ( 2006).  On the other hand, the bargaining power of customers is high because the supply of high-end market in Asia is relatively small compared to Western counterparts.  This is flamed by the fact that industry products tend to fight for value and service which enables customers to have the incentive in backward integration (e.g. franchise retail).                  Threat of substitute products can come from imitated and Western products; however, their impact is medium.  Although loyal customers are familiar to the quality of their brands and prevent them to buy imitation to save status, Western clothing will be an Asian trend especially as the global economy continuously integrate business and culture (e.g. corporate outsourcing companies scattered all over Asia).  However, this is hedged by the large market base in the Mainland and as they also become fashionable the demand for the industry products will be maintained ( 2006).  The cultural knowledge of Asian players will be the advantage of the industry in competing against Western products.                               As there are quite numerous industry players and they are also equally balanced, a competitive action from one player will cause vigorous response from the other especially when the latter target market is at stake.  The industry is characterized as slow growth as “poor becomes poorer and rich becomes richer” principle.  Wealthy people or 20% of the global population have control to the 80% of global resources that makes the customer base static stiffening the available market in which industry players would be competing.  There are also high fixed costs when these firms are investing in both start-up, operational and sustaining the customer relationship.    This is the situation in relation to having a very conservative and stiff market base which imposts aggressive marketing campaigns to recoup the investment.  The industry has also high differentiation exemplified by its players as they want to sustain and attract customers and prove that their product service is valuable.  Companies also have high strategic stakes especially when investments are located in metropolitan centers such as HK.  Lastly, there is the presence of high exit barriers arising also from high strategic investments required to maintain customer loyalty, improve manufacturing and search regional distributors.        Table 1: Rating Industry Forces General Forces Specific Forces Rating                 Threat of new entrants Barriers to entry   ·   Economies of scale Medium ·   Product differentiation High ·   Capital requirements Medium ·   Switching costs High ·   Access to distribution channels High ·   Cost of disadvantages independent of scale High Governing policy Low  Expected Retaliation Medium Bargaining power of suppliers   Low Bargaining power of buyers   High Threat of substitute products   Medium     Intensity of rivalry among competitors         ·   Numerous or equally balanced competitors High ·   Slow industry growth High  ·   High fixed costs or high storage costs High   ·   Level of differentiation or switching costs High ·   High strategic stakes High ·   High exit barriers High   An attractive industry is one that can provide the platform for a firm to earn above average returns from its invested capital ( 2003, ).  An attractive industry has high entry barriers, low bargaining power of suppliers and buyers, low threats of substitute products, and not-so-fierce rivalry among competitors.  In relation to an existing player developing in Asian industry particularly in Hong Kong, the company will be confronted by medium-to-high barriers to entry, low bargaining power of suppliers, high bargaining power of customers, medium threat from substitute products, and high intensity of rivalry among competitors.  Overall, the endeavor is attractive but it should be noted that “customer is the king” mindset is largely important to have an even return.   SWOT Analysis of U2 in relation to Industry Strengths <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Long-term relationships with suppliers </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Ability to implore economies of scale in advertising and operations</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Highly differentiated products </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Can create customer loyalty</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Clear market niche boundaries (e.g. Focus on adult, career people needs and focus on Asian market to minimize Western competitors) </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Franchising agreement to avoid substantial loss</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Valuable resources such as highly-trained manpower and presence of information systems </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Adaptive mechanisms and economies of scale in strategies </li> </ul>   Weaknesses <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Depletion of strategic manufacturing location and store sites especially in Hong Kong area</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Limited customer base</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Design and innovation efforts are costly</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Customers can be very demanding and meticulous (e.g. presence of Western customers)</li> </ul> Opportunities <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Presence of industry standards on quality</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Western quota elimination and CEPA</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Avoidance of expatriate regulations in case of war unlike offices in other Asian countries </li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Free market with minimal political intervention </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Destination of global FDI</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Low corporate income taxes   </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Mitigated problem on double taxation </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Prosperous economy</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> More active trading and financial relations with the Mainland</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Stable currency back-up with US dollar reserves</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Quality banks</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> High earnings mobility of the labor force</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Having large labor supply from the Mainland</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Continued increasing tourist arrivals </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Support of theoretical frameworks in tourism analysis with regards to HK</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Modern infrastructure, sufficient transportation, environment-friendly and culturally-dedicated  </li> </ul>   Threats <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Inability to maximize Internet capabilities and online shopping </li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Tarnished media reputation that can undermine fashion news</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Absence of military and self-defense as a region</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Pressing need to raise taxes as a source of government revenues</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Quite unpredictable HK people culture and preference</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Difficulty in analyzing different cultural preferences</li> </ul>   Facts and Findings about Total Quality Management (TQM)             In Deming’s approach, statistical methods are applied that necessitates continuous improvements of the production process to conform in specifications and reduce variability ( 2002 ).  The two primary sources of process improvement are the elimination of common quality problems (e.g. poor product design) and special causes (e.g. machine or employee).  There is a need to undermine final product inspection to achieve quality rather to educate and train employees and managers to minimize its variability from the standards.  His 14-points can be summarized as follows; namely, create long-term goals to quality; elimination of acceptable levels of poor quality, inspection, productivity quotas and numerical targets to focus on process rather end results; empowerment of employees; and instilling leadership to managers ( &  2003 ).  The Deming Wheel or plan-do-check-act (PDCA) cycle is also extracted in the 14-points.  In this wheel, the importance of step-by-step process in adopting a process improvement proposal is emphasized.               Suggested by , an annual quality program should be made separately from other more obvious corporate goals like revenue ceilings and cost control policies ( &  1995 ).  Coordination of goals is crucial in the undertaking.  He highlighted a focused approach in solving chronic quality problems and implementing a breakthrough solution to deal them which may require hundreds and even thousands of quality improvements projects corporate-wide.  On the other hand,  advised that the cost of poor quality will exceed the cost of preventing poor quality that rework and inefficiency should be avoided ( &  2003 ).  When it comes to defects, he emphasized the importance of top-down approach In order to achieve a quality improvement that is not only free of additional costs but can increase profits without increasing sales and investing in new people and other machineries.                            The top-down approach in implementing total quality control implied by  is echoed by  that strong leadership from top management is necessary to make quality improvement a continual process ( &  1998 ).  Further, Ishikawa promoted quality circles in his attempt to show the key role of containing internal customer within the organization ( &  2003 ).  This will ultimately lead to quality organization that can achieve the basic tenet that an organization can create a quality product if its internal components know and commits to quality.  As quality circles would monitor performance and propose improvements, quality initiatives are required to be employed in every level of the organization.  With the admonition of quality gurus, TQM is considered a company-wide strategic effort and the most important company issue where the organization is responsible in deciding what customer wants in terms of quality and make plans to address it.               In achieving TQM, there are various functions that make-up the productive process ( &  2003 ).  The marketing, sales and research have direct contact with customers that they have the ability to know their needs/ wants, provide feedback information and exploration of new ideas that can result to innovation.  Engineering decode these customer information as well as other inputs from top management into product design, specifications and resource requirements.  Since it is far costly to change the processes in the production stage, engineering must determine an efficient level of serving customer expectations early in the design process.  Purchasing functions should only select high quality materials and parts to attain the efficient design goals of the engineering team.    Human resources are responsible in hiring highly competent employees and also instilling quality culture in them ( &  2003 ).  Management will approve the product design to align resources to the expected output.  At the end of the production process, packing, storing and shipping unit is responsible to assure that products will maintain their quality (e.g. zero damage) as designed and manufactured.  Lastly, the after-sales support represents the marketing and sales mechanism after the product has been made to assure that quality is according to customer expectations or is there any fall-backs.  With such structure, the vertically-integrated emphasis on quality will not be supported without the commitment of each functional areas and initiation of top management to embrace quality.                         Many TQM companies have reduced the number of their supplier options in a level that they can influence quality and delivery of performance through the adoption of single-sourcing (,  &  1998 ).  This business model necessarily creates partnering where the supplier will agree in achieving customer requirements in return of long-term purchasing agreement.  Such relationship may include stable customer order and delivery schedule that can dissolve outsourcing flexibility.  When it comes to customer satisfaction, TQM requires feedback on how customers view the corporate products where the widely used measuring method is customer survey (,  &  1998 ).  With the adoption of surveys, companies will be provided with invaluable information necessary to rationalize TQM policies.  Due to the presence of information technology, surveying has obtained economies of scale and efficiency and is a breakthrough in getting valuable customer information.    Customization, a once forgotten integral part of customer relationship marketing (CRM) in mass-level manufacturing, can be addressed by e-marketing in distribution level of value chain.  Dell is one who uses e-marketing to implement its customer-configured computers ( 2003); however, the impression is less because this is a hi-tech firm.  In business to consumers industry, the producer of all-time favorite Barbie, Mattel, launched in 1998 Barbie.com wherein customers can choose the doll’s skin, hair and clothes including its name using an online questionnaire.  The firm also made delivery more sensational as the packaging bears the name of the doll including its determined personality that relates with that of the customer   With these examples, it is clear that database and internet marketing can positively impact not only advertising costs, sales revenues and manufacturing costs making the firm price competitive, but more importantly, adhere to CRM principles like customization and satisfaction (i.e. a result of fast resolution of complaints/ queries, ultimately, less trouble to consumers) making the firm sustain its competitive position in the long-run.  However, the limited household ownership of computers and internet connectivity in some areas could impede, if not lessen, the fruits of e-marketing.  As a result, there is a need to resort using other unidirectional media and enhance TQM policies through additional communication and research costs.    Human contact is an important aspect of producing products and services ( &  2003  ).  A vertically integrated manufacturing company is in advantage because it can directly affect production processes as soon as the company’s selling efforts accumulated negative feedbacks.  This is concretized as manufactured products are easily observed (e.g. held, felt, stored and used again) unlike purely service-oriented ones that determining defect can be measured with relative ease.  As with hybrid businesses like a vertically-integrated organization, there are intangible and difficult-to-measure quality dimensions such as employee performance that can be embodied in TQM policies.  In this way, their reliability and attitude in serving customers is within the quality framework of the company even though personal characteristics is hard to integrate to corporate goals.   In several studies, it is proven that long-run quality improvement and profitability are closely related (,  &  1998 ).  As quality improves, the costs associated with poor quality decline, productivity is increased, competitiveness of company’s products is achieved and ultimately its market share increases.  Moreover, indirect productivity gains like enhancement of workplace, removal of congestion and smooth production stages should be strongly monitored.  Otherwise, the gains from TQM will not be fully-appreciated.  Perhaps, it can be a useful guide for TQM decision-makers that process improvement has both explicit (e.g. quantitative) and implicit (e.g. qualitative) benefits as well as costs.  In effect, all stakeholders (e.g. shareholders, managers, employees, customers, suppliers) should feedback on how to evaluate current TQM policy in continuous and participative manner.                        Implications and Discussions             By applying Deming’s approach, U2 can protect its limited customer base and bring down design and innovation costs through elimination of quality problems and inspection on final products.  Undermining quality standards and maximizing the potential of processes, the expectations of meticulous (e.g. new customers) clients can be served.  The Deming Wheel can be used for U2 to organize its Hong Kong operations and optimize its market presence because the country has already its biggest share of production locations and store outlets over other Asian countries.  With regards to , U2 can use annual quality plan to bring timeline to the Deming Wheel as well as making a breakthrough solution on how to maximize the chronic problem of underutilization of internet capabilities in the industry.  Further, the awareness that quality improvements are company-wide will leap the isolation of quality standards in the production process of U2 to different functional areas like human resources, finance, etc.               ’s “prevention is better than cure” policy on poor quality can enhance the ability of U2 to implore economies of scale especially on store advertising where one mistake can have maintenance and customer costs.  A number of store designs in Hong Kong can be used as a primary pattern to avoid design problems.  In addition, the emphasis on zero defects and top-down approach in implementing the strategy can augment the ability to create customer loyalty and positive franchising impression.  In this regard, U2 can have effectiveness on both B2B and B2C relationships which can bring to the front economic opportunities such as prosperous economy, quality banks, large labor supply, Western quota liberalization and CEPA to aid U2 expansion and maintenance of market leadership especially in Asia.  It should be noted that as market base expands the economic opportunities can be utilized profitably and ’s continuous quality improvement assertion will act as an agent for sustainable growth and development.               Quality circles within U2 can further strengthen relationship with suppliers, the already differentiated product line, clear market boundaries and valuable resources because rank-in-file employees are collaborating with the management towards quality improvement and maintenance.  The reputation of U2 when it comes in fashion trends will increase as company-wide appreciation to quality will be recognized by the market.  Due to this, its reputation can replace the tarnished media status and will be a great edge in mitigating ambiguous cultural differences of Hong Kong and Asian customers.  This mindset can also improve the framework U2 uses in analyzing the real needs of its customers in order to execute its mission of exceeding their expectations.               The vertically-integrated structure of U2 can use the schema TQM employs in seeing a quality organization.  Departmental policies will be reconciled with another to come-up with incorporated quality system that each component of organization can manage and inserted in each job description.  With this, responsibility and accountability in each product process from market study, product process, manufacturing and after-sales support will be applied to easily detect problems areas.  Supplier partnering will be compatible in efficiency sourcing of raw materials but U2 must select a supplier that can operate within its quality standards and policies on a long-term basis.  As alternative, U2 can consider acquiring key suppliers to minimize the need to dissolve outsourcing flexibility which can be a source of inefficiency.                  Database, internet marketing and e-marketing can be used to simplify customer survey endeavors and to have an efficient platform in getting quality feedbacks.  However, as internet will not replace store shopping, U2 can utilize database that views the complaints and compliments of its customers through the inputs provided by store personnel.  U2’s vertically-integrated manufacturing and distribution processes can maximize the use of the database in injecting customer feedbacks directly in the design and production process.  U2 produces tangible products but its store operations include intangible features that employee performance should be included in quality policies (e.g. smiling).  Lastly, quality audit should have qualitative and quantitative aspects as well as application of systems thinking in order to recognize obvious and non-obvious quality drivers and potential quality problems.    Conclusion             By studying the internal and industry aspects of U2, SWOT analysis is made.  Its SWOT is then applied with TQM findings and associate TQM aspects that can enhance benefits and mitigate problems within and without the company.  With this methodology, it is found that TQM practices can positively impact the development of U2 Clothing in its home base Hong Kong.  Generally, U2 can rationalize the plan through the use of TQM practices as well as insert TQM practices in the implementation process to manage impending market saturation.  Through TQM, Hong Kong operations can increase the differentiation and efficiency of U2 that can hedge the threat of both cost-effective China products and quality-bound Western products not to mention the needed improvement in U2’s current offerings.   Recommendations <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Implement a company-wide TQM practice</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Eliminate inspection on the final outputs and impose global standards on processes</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Make annual quality plans</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Create a database of historic, current and forecast quality characteristics of the company</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Select a visionary corporate leader</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Exploit economic features of Hong Kong in implementing TQM practices</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Develop and maintain quality reputation in individual-, managerial- and corporate-levels </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Maintain a flexible partnering contract or have a strong bargaining power</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Create a database on customer survey</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Quantify both implicit and explicit quality drivers during quality audits  </li> </ul>     References Books     Journals     Electronic Sources   Credit:ivythesis.typepad.com

HONGKONG DEVELOPMENT OF U2 CLOTHING WITH THE AID OF TQM PRACTICES

Impacts of TQM Practices to the Development of U2 Clothing in Hong Kong Introduction The paper intends to find the impa...

Production Management Objectives, Performance, Priorities, and Training and Development Plans

Production Management Objectives, Performance, Priorities, and Training and Development Plans   It is common knowledge that every one of the successful companies today sought and found a precise understanding of how it could create advantage in the operations system and delivery options of the business organization in order to address detailed customer specifications. Every business person is determined to know what kind of work they would and would not do for their customers and, in turn, they carefully learn how to fulfill the needs of each kind of customer in their target markets. In today’s fast and technological modern world, the challenge that the Information Man faces is time’s nature of putting things in order and in place in the best and most effective way. Life has changed since the invention of the computer which dictated man to deal with things in the most efficient way possible. In the world of big international business industries where transactions and other business operations are governed by law, cultural differences and mutual trust, efficiency counts largely as a common entrepreneurial aim.   Performance Goals Performance management is an important process for influencing both the extrinsic and intrinsic motivations of employees, that is, increasing employees’ perceptions and understanding of job tasks and subsequently their job satisfaction. For example, elements of performance management may provide the employee with a more accurate understanding of job tasks (task identity and task significance) through objective setting, leading to a clear sense of direction. Performance management also serves to focus employee efforts and attention on critical tasks through the use of performance feedback, which therefore assists employees in reducing job errors and minimizing the risks of learning through trial and error. In addition, where employees desire jobs that allow them to make good use of their skills and talents, performance management increases job task “fit” (skill variety) through the identification of training and development needs that are consistent with individual and organizational goals. This can be attributed to human resource specialists, academics, and consultants who proclaim that performance management is a critically needed tool for effective human resource management (1984). This, in turn, is based on the belief that an effectively designed, implemented, and administered performance management system can provide the organization, the manager, and the employee a myriad of benefits (1987). The literature on performance management generally suggests that the management process can increase employee motivation and productivity, provide a solid basis for wage and salary administration, facilitate discussions concerning employee growth and development, provide data for human resource decisions, and provide managers with a useful communication tool for employee goal setting and performance planning (1989). More often than not, leaders plunge into a long-term strategic planning process without first deliberating on certain fundamental questions related to beliefs and values.  These questions are often about the core ideology, values, purpose, envisioned future, vision statement and vivid description of what the business would look like.  Reaching a common understanding about the inherent beliefs in the organization provides a platform for further explorations on the norms of behavior that help define the organization’s culture.  This exploration can also help reveal the impact that the organization’s structure (system) has on behaviors.  By the nature of systems, structure involves how people make decisions—the operating values whereby people translate perceptions, goals rules and norms into actions.  People often focus only on their own decisions and ignore how their decisions affect others.  Frequently, when an organization is faced with moderate threat or opportunity, people began to replace old behavioral patterns with new ways of thinking and behaving. There are several enduring issues relative to performance management system implementation. They include the controversy over combining developmental and administrative purposes, the absence of rater training, the lack of organizational commitment and top-level support, ubiquitous rating errors, employee dissatisfaction with the amount of performance feedback received, and the absence of specific performance documentation, among others. Included are several emerging implementation issues related to the need for increasing the sources of performance information and problems raised by inadequate literacy levels. Along with the considerations discussed above, the following are the general process I normally utilize in the organization in order to establish my personal goals within a month. 1.                   Identification of monthly production target in terms of product volume, product testing, and product quality assurance, 2.                   Coordinating the volume of orders into the specified deadline of clients and customers, 3.                   Communicating product volume and specifics to the members of the production teams, 4.                   Assessment and evaluation of inherent and inevitable shortcomings in the production process (product, technology, and people), and 5.                   Stocking, warehousing, inventory and delivery options and other supply management considerations of finished goods Generally, these monthly goals and processes ensure that the organization, particularly the production arm of the company can readily attend to the commitments of the organization in order to maintain the satisfaction and loyalty of our customers. Moreover, these production goals and objectives serve as motivation to every individual staff and employee in the production department of the organization.   Work Plans Organizations are neither the rational, harmonious entities celebrated in managerial theory nor the arenas of apocalyptic class conflict projected by Marxists (1980).  (1996) believe that modern organizations passed by the guild structures and as organizations grew larger, skills become increasingly fragmented and specialized and positions become more functionally differentiated. Leavitt had defined three approaches to organization, which includes structure, technology and people (1964). New formal guidelines and procedures like organization chart, budgeting methods, rules and regulations can also be structural approaches on inducing change. On the other hand, rearrangements in work flow through new physical layouts, work methods, job descriptions and work standards can be done as technological approaches. Some organizations stress on people approaches which includes alterations in attitudes, motivation and behavioral skills. This can be done through new training programs, selection procedures, and performance appraisal schemes. Planning is commonly known as the process of formulating in advance as organized behaviour action. While it is true that people do not always plan their actions, it is inherent for any organizations to plan. However, whether dealing with the context by which planning is occurring, whether on the individual or organizational level, the process takes shape according to the prevailing attitudes, beliefs and goals involved. Planning also bears different meaning to different social groups. Any commercial, entrepreneurial, private as well as public organizations and institutions who has a financial arm to manage the funds of the group, is faced with the objective of maximizing the shareholder wealth and not the profit as was stated in the theory of financial management. The business, in order to effectively execute any business strategy or plan, should be able to determine first and identify the resources that are available in the company. Studying and examining the opportunities of the available resources will help in constructing a business plan which will be profitable. The characteristics of the business should be clearly laid out and the ideas that will be made available should be thoroughly researched. This will provide relevant information that the general management can utilize so as to be able to allocate the funds of the company in the most effective way. In an area of my work where the focus is of managing the integrity of the business, business control should be its very objective. Business control is crucial to maintaining business integrity especially when the business is developing and growing. Thus, its needs and demands equal efficiency and effectiveness on managing the business. In addition, to maintain business’ efficiency and effectiveness, it is important to develop and implement appropriate business controls through an assurance process based on a publish statement of compliance with relevant laws and business principles. Implementation of statement compliance will help to develop and manage key business risks. My duties under the control systems operation involves lowering the company’s stock level, minimizing purchase of goods from other agents, ensuring that the purchased products will be sold, making accurate forecasts of demands, and maximizing the profit of the company. These are made possible by categorizing the purchased products into three classifications: (a) regular forecast demands, (b) additional allocation or back to back order, and (c) orders to other agents or suppliers. All, these are executed while keeping in mind the available selling plans that were constructed and stock status of each item.   Management and sales reports are prepared daily, weekly, monthly, quarterly and annually in order to keep track on the flow of goods and services rendered by the company. Such reports are utilized to analyze and investigate on the demand of the products that should tally with the records provided by the other company departments so as to decide and make necessary actions on the needs and conditions of the business industry particularly the demands of the clients. These reports likewise present the performance of the people housed by the company. Adjustments of stocks are made using the computer system to coordinate the products available for resale and that of the forecasted volume of goods that needs to be ordered to supply the customers. Other responsibilities include updates of records, cancellation of P/O balance, evaluation of the distributors system, selling and purchasing deals with agents as well as cost adjustments.    For effective and efficient monitoring and control system of the business operations and transactions, sales exp report are provided regularly along with the staff’s discrepancy report and analysis which presents the difference between the forecast report and the actual record. This process enables the management to device plans of how to lower the stock level by selling the surplus in which the recommendations and suggestions from the Sales Administration Department. In line with this need, I prepare reports that will provide solutions on liquidating and managing the surplus available. The sales representatives are then required to act accordingly in order to clear the stock of surplus. In cases of negative profit, I am tasked to prepare reports that will explain and support the reasons that led to such incidents which are approved and signed by the General Manager.  The regular reports and sales analysis are constantly examined so as to adjust the business strategies for the succeeding business transactions. Along with the duties and responsibilities assigned to me, I have been able to put up with the expected performance of my position in the business organization. In line with these tasks, I was able to meet the performance standards set by the company through the following evidences: ü  I was able to design as well as modify the existing report format of our computer system which made it possible for us to utilize the functions more effectively and efficiently. ü  I have been able to rearrange some job specifications to adapt to the needs of the complicated business environment, evaluating the job of each employee and redesigning his or her responsibilities to fit the changes. ü  I have likewise contributed to the creation of new operations system as well as the improvements made on the rules that govern the system for more efficient work output. ü  I suggested ways which helped the company optimizer the function of the departments in order to minimize the cost and expenses of the operations.     Management of Competing Demands and Priorities An information system is indispensable in every organization as reflected in its role, purpose, and sources of information. Information system plays a crucial role and is a contributory factor in the success of an organization for the modification of present plans and strategies of an organization and the formulation of future goals, approaches, and steps the organization will undertake are based on the data obtained in the past and converted to information organized in the system. Furthermore, it could be noticed that in such modification and formulation, decision-making is essential. Hence, information system influences decisions thereby affecting the status of the organization at the present and in the future. With the ever-increasing demands by the clients and customers, raw materials suppliers, as well as the pressure from the upper management of the organization for increased efficiency and profit, collaborating and effective management of priorities in the production constantly pose challenges and beset the operations management of the company. As such, it is inevitable that the organization implement programs and production systems that will best suit the needs of the company and its clients. The discussion below presents the IT system and techniques used in the company along with the lean management initiative to add value to the production process and overall operations of the business organization. Generating manual and IT systems in the workplace provides a more advantage in terms of receiving, recording, processing, storing and transferring information. Manual system ü  With manual system of work, information processing is more meticulous and requires a lot of effort but produces good end results. Nowadays with the advent of information technology, using manual system perceive as slow as compare to IT systems. Here, record processing takes different stages before going to final stage. Although efficiency and effectiveness is proven and accuracy and validity is tested, using manual system generates limited information for processing. ü  Using manual system for storing relevant information is still considered as a safe procedure. Especially when the information requires confidentiality. Here, information and records are kept for future use. ü  With the use of manual system, transferring information and records requires more time. On the other hand, there are still activities in the workplace that practice manual system to secure information or confidentiality. IT system             Through the advent of information technology, business transactions are more on the advantage position. In just one click, information is sent through up to date and powerful technology. ü  With the use of Information technology, information processing improves with several benefits such as lower costs capital management, fastest time, reduces pressure and hassles in the workplace among others. As we all know, information processing is not an easy job because it entails processing of vast amount of information that is usually needed immediate attention. With the rise of globalization, businesses rely on information technology to get the work over and done. ü  It is not a problem in the workplace to store information using IT system. In just a click, information can be saved or retrieved. However, confidential information and records are not too safe using the IT system because somebody may access it. ü  Information Technology system benefited the transferring of information, no matter how far the business area or the country. In just a click, all the information can be viewed through computers. However, IT system has disadvantages also because information that will be transferred can be access by someone if it is not secure enough. The development of Lean Quality Management System is one of the quality management approaches that address the business setting at present. It was developed to (1) save thousands of dollars each year by avoiding the waste associated with a paper quality system, (2) harness the creativity of employees while maintaining control of their projects, (3) perform tasks that are clearly assigned, defined, communicated and focused, (4) spend less time managing the quality system and more time improving the value stream, (5) reduce training costs by integrating procedures with training, (6) provide a management system that provides the who, what and when, and (7) provide the metrics to drive your organization to ever-higher levels of performance and success which works just as well for small as large companies (Lean Software Quality Management). The Lean Value Chain of Production System Model below illustrates how companies at present gain competitive advantage by adding value to the overall operation of the organization through efficient production system ( 2006). Business firms that utilize the value chain management strategy also consider increasing the companies’ relationship with its shareholders by separating the business system into a series of value-generating activities, namely: (a) inbound logistics, (b) operations, (c) outbound logistics, (d) marketing and sales, and (e) customer service. In effect, from the receiving and warehousing of raw material from the suppliers, all through out the manufacturing and production process, as well as in the entire the distribution and sales of finished goods, the value-generating activities are supported by the infrastructure of the firm, its human resources management, and the technology it uses (2005). The lean machine is known in the ease of its use and installation as well as its cost effectiveness in dealing with wastes in most quality systems thereby saving time and money for the software. It can integrate information, reports, graphs, and other tools that work together to simplify and deliver information for improved business operations which minimize the time spent on other software programs (The Lean Machine).   Training and Development Plan Business organizations nowadays offer two-way learning experience within the company between the employers and the employees. Employers benefit largely from trainings that they offer to staff and members of the firm given that the expected knowledge and skills were learned through the organizations venture on their human resources. At the best possible results, the organization will gain competitive attitude in the business world by housing in competitive and qualified workers. Employees on the other hand, are given the opportunity to improve on their work capabilities as qualified and productive members of the modern and information age work force. Ensuring employee performance requires establishing a level of competence which the employee should be aware of as a target to be achieved. This is the measure to be used by managers in determining compliance with the standard and in identifying problems met by the employees in meeting the standard. In developing a training program to enhance the productivity of employees the manager will look at the competency problems of the employees and fashion the program to enable the employees to reach and even exceed the competency standard established for their work. This requires a great amount of perceptiveness on the part of the manager in determining what method of training will be most effective in improving employee competence. Some of the training includes computer software training, internet-based training and self teaching by encouraging innovativeness in the workplace (1998). Employers need to enroll their staff in annual or quarterly training courses to upgrade their skills and enrich their knowledge so as to foster individual and personal development and improvement. Possibilities of promotion through their acquired knowledge and improved skills as competitive employees should always be reminded to the staff as a form of motivation to encourage productive outputs. Incentives in the form of financial aids like bonuses and other material compensations as well as intrapersonal rewards such as positive critical feedbacks and recognition should be endorse by the company to boost confidence and motivate the employees. This in turn will also be profitable to the organization itself due to increased output of the work force. It is also apparent that equal relations between the employer and the employees should be practiced to encourage productivity in the business organization. Enhancing good working relations among all the employees and preserving a good working environment and atmosphere ideally, will provide harmonious relationship inside the business organization. Maintaining such condition within the office will elicit productivity from the employees as they enjoy their duties of accomplishing their tasks and will help in reducing stress and eventual burnout in the workplace. Encouragement of wider work responsibility of basic skills such as development and learning courses should be given to employees on specified times of the year. This will restore fresh knowledge to old employees. In the case of newly hired staff, more comprehensive and rigorous training exercises should be applied to better prepare them of the workloads they will be responsible of in the actual business transaction and work process. Promoting individual competence and competitiveness among the staff and other members of the organization will be of benefit to the company since this will uphold and advance the initiative work attitude. Team building exercises wherein work peers as well as the supervisors will be participating should be regularly held. Bonding activities like out of town trips can be psychologically helpful to all the employees that will elicit bond among the people inside the company as well as for the employers to know their work team.      Since workplace learning and training programs in business organizations is a common practice nowadays, more trust should be given to the work team of the company. Entertaining and respecting solicited opinions and ideas of ordinary employees will be of help in setting the corporate goals of the company since the staff is encouraged to think as owners of the business enterprise.   Credit:ivythesis.typepad.com

Production Management Objectives, Performance, Priorities, and Training and Development Plans

Production Management Objectives, Performance, Priorities, and Training and Development Plans It is common knowledge that every one of...

SOCIAL CARE PROVISION IN UK

Social Care Provisions in UK   Poverty is one of the major causes of the uprising of health problems especially in poor nations and countries worldwide. Government and other people are burdened by the fact that the promotion of health is one of the most important responsibilities of every individual. However, the effect of poverty in the population cannot be denied if we look at the health of the people experiencing it. Recent studies have shown that wealthier nations are healthier as compared to economically challenged nations and countries (, 2005). It was held by  and  (2002) that in meeting the specific needs of the vulnerable populations and groups worldwide, there must be a balance between accessible, high quality universal services, and targeted programs. With this, the World Health Organization have acknowledged the help of non-government organizations to the poor people who are not able to access on proper health care system, sewage disposal, clean water, food safety.   A second influence on the development of a new policy agenda for health promotion has been the rediscovery of the determinants or ‘root causes’ of excess morbidity and premature mortality which are external to individuals and provide the context for their behaviour and actions. Several widely used models of health ( & , 1991, , 1998,  & , 1994) illustrate the range of contextual factors, including the economic, psychosocial, cultural and physical environments that shape overall population health and inequalities in health relating to socio-economic status, gender, age and other social positions.   Health promotion is increasingly characterized by working with key stakeholders or agents in decision making processes that affect outcomes ( 2001), although the means of achieving collaborative practice are still not fully understood. Working with people and communities, ‘people-centered health promotion’ ( &  1998) requires an ecological and holistic approach to health, one that can capture complex social phenomena ( 2001). Within health promotion, key principles of sustainability and community development are focused on. Health promotion approaches to justify the effectiveness of their practice and to demonstrate measurable outcomes. Internationally it has resulted in a number of initiatives, particularly in Europe, which aim to build an ‘evidence base’ for health promotion. Although in the process of the development of these initiatives, there have been debates on what constitutes evidence in health promotion (, 2000;  & , 2001) and the criteria by which evidence is defined have been subject to philosophical and theoretical scrutiny ( & , 1998), there remains a danger that initiatives will encourage the very value systems they seek to challenge by buying into the notion of the existence of objective evidence.   Public health is the promotion of health at a community level by the government. It includes prevention of disease through supplying clean water, proper waste disposal, and legislation for clean air, health education programs, and medical care for the whole community through doctors, nurses, and hospitals (). Government acceptance of responsibility for public health began in UK with the Public Health Act in 1848. Now, the welfare state, National Health Service, and health education and protection measures are government responsibility. In early 19th century, concerned social reformers tried to improve the living conditions of the poor. In 1842,  recommended that investing in public health would improve the health and reduce the death rates among the poor. He contended that the expense of basic public health measures would be less than the cost of having to support a poor and unhealthy population ().               With the government taking over the responsibility, developments in public health included the introduction of environmental health officers to investigate potential hazards such as hygiene in shops and restaurants, the launching of health education campaigns, such as anti-smoking campaigns to reduce cancer and heart disease, and road safety campaigns to encourage drivers to slow down and pedestrians to take care when crossing the road. Food safety became one of the biggest issues of public health in UK. The government implemented laws on food safety, such as the  (1990). In 2000, the British government established the Food Standards Agency to coordinate action on food safety and the protection of public health ().               Since 1997, the Government has set out a major program to improve public health and address health inequalities. The program includes action to eradicate child poverty, improve poor housing, raise employment, and strengthen communities, in order to address the deep-rooted causes of ill-health. It also includes major programs to prevent cancer and heart disease, and modernizing public health. The department’s approach is to create an environment where people are encouraged and supported to adapt healthy lifestyles. This may be done by providing clear information to enable people to make their own decisions about choices that may have some impact on their health, offering tailored support, personalized services and equal access, and by partnership working across communities (). The Department of Health in 2004 also issued the following standards, the minimum level of service that patients and service users have a right to expect, that health care organizations, including the NHS Foundation Trusts, and private and voluntary providers of NHS care are expected to meet in terms of safety; clinical and cost effectiveness; patient focus; accessible and responsive care; care environment and amenities; and, public health. The standards were divided into two categories – core and developmental. These standards are part of National standards, local action, the NHS three year planning framework, and are in line with actions set out in the NHS improvement plan (, 2004).   In UK, the Independent Inquiry into Inequalities in Health ( 1998) was guided by a socio-economic model of health. This model emphasized the impact of over-arching general, societal, living and working conditions, which themselves influence the quantity and quality of social and community networks, which in turn condition health lifestyle attitudes and behaviors. The Report notes the evidence of long-standing and widening gradients in mortality between the higher and lower socio-economic groups in UK and prioritizes the implementation of policies which will reduce income inequalities and lead to the redistribution of resources to those who find themselves, unavoidably, outside the labor market. The authors of the Report are adamant that the policy emphasis must move ‘upstream’, from the de-contextualized individual to the social and economic structure: ‘We consider that without a shift of resources to the less well off, both in and out of work, little will be accomplished in terms of a reduction of health inequalities by interventions addressing particular “downstream” influences’ (, 1998, ).   This view is reinforced by the growing evidence of a strong relationship between income inequality and premature mortality within developed societies (see, especially,  1996). One plausible explanation for this relationship is the relative strength or weakness of the psychosocial fabric, in particular, features of everyday life which engenders and promotes social cohesion. ‘Social capital’, which has been defined by  (1995) as ‘the features of social organization such as networks, norms and social trust that facilitate co-ordination and collaboration for mutual benefit’, is the concept now widely employed to capture this societal attribute. It is hypothesized that more egalitarian societies generate higher levels of social capital which in turn reduce health inequalities and increase life expectancy.  (1998) argues that the notion of social capital revitalizes social approaches to public health and health promotion, since it permits examination of the processes whereby social connections operating through different networks can act as a buffer against the negative health impact of relative (as well as absolute) deprivation.   Recognizing the multi-faceted nature of health, its production and maintenance, the tendency has been to assume that health promotion practice should encompass a similarly broad sweep.  (1997) have argued that this tendency is unhelpful because it masks tensions between competing paradigms and agendas. Specifically, they warn that ‘the creation of …“global” health promotion models could inhibit constructive debate around alternative perspectives on health’ (). They conclude by noting that ‘permanent tensions’ exist that need not necessarily be resolved. They identify three initial areas for attention: professional and political matters, technical and methodological dilemmas, and research questions. The challenge for practitioners is how they manage these tensions in order to deliver action that addresses contemporaneous policy agendas (, 1997, ).   The effectiveness and cost-effectiveness of health promotion interventions are under increasing scrutiny in the new evidence-based cultural climate within the health sector in UK. While there is some concern about the extent to which expectations relating to the success of health promotion practice are more pronounced than those relating to clinical practice, the problem most commonly identified by researchers is the unwillingness of funding and commissioning agencies to accept the validity and viability of non-experimental evaluation strategies.   As such, this will divert limited resources from knowledge development in collecting evidence to satisfy a managerial agenda driven by searches for efficiency, cost effectiveness and quality assurance in public expenditure, which, in the UK at least, has led to an obsession with targets and indicators. Much better that those resources are invested in the development of approaches which address the complex holistic nature of the social change processes that constitute health promotion. It is also important that the methods and criteria of effectiveness used are consistent with the fundamental principles of health promotion, empowerment, participation, collaboration and equity.                       References:   Credit:ivythesis.typepad.com

SOCIAL CARE PROVISION IN UK

Social Care Provisions in UK Poverty is one of the major causes of the uprising of health problems especially in poor nations and coun...