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The impact of globalization on organizations
The impact of globalization on organizations
Impact of globalization on the management of organizations
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Chapter 1.
Introduction
1.1. Background
Continuous Improvement (herein after referred to as CI) represents the management approach towards a high quality of products, services and processes on a sustained and continuous basis. Nowadays many organisations and companies strive to improve their services and reduce failures in order to remain competitive in the modern marketplace that has a tendency to change very fast due to the advanced technologies development and many other external factors. Originally CI has derived from the recently new management theory such as quality management. The latter term can be defined as a new way of thinking in organisational management, an alternative option to management by control, a broad-based way to improve entirely organisational performance by minimizing waste and resources and enhancement of financial profitability, and finally as a framework for competitive management (Foley, 2004)
Oakland (2003) stated that in those times back to 1988 when he published the first edition of his work on Total Quality Management (herein after referred to as TQM) there were not many other works published by academics on this subject. Nowadays in the twenty first century there are many texts and works have been published on TQM and its numerous aspects such as CI, business process re-engineering, Six Sigma, Lean manufacturing, Kaizen and Business Excellence.
At the beginning of the nineties the quality aspects have been considered basically as assuring product or service quality, nowadays quality is widely applied to the new way of managing organisations, a new breakthrough philosophy, which primary purpose is to enhance an every aspect of the organisational performance both internally and externally...
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...complex production operations and considering in what conditions the energy is being produced. Moreover production companies have to operate in some of the most sensitive, complex and severe environments within the globe that varies from deserts and mangrove forests, tropical rainforests in Africa, sea offshore areas and wetlands to frozen tundra in Siberia. It varies from rural areas inhabited by indigenous communities to densely populated urban terrains.
To get the energy from the depth of the oil wells a highly developed modern technology is strongly required. Therefore the oil and gas companies have been pioneers in developing and utilising new technologies and in implementing management systems to mitigate and minimize the environmental impact of production operations to local communities and terrains and maximise the value from an every singe oil well.
TQM is a company’s complete “culture of quality” approach which focuses on long-term success. It strives for continuous improvement, in all aspects of an organization, as a process and not as a short-term goal. TQM’s involves everyone in the organization to transform the organization into a forward-thinking entity by influencing attitudes, practices, structures, and systems of the entire organization (Business Dictionary, 2014). TQM was crafted by William Edwards Deming, a statistician who specialized in statistical process control after World War II. Deming outlined 14 points of TQM where all people of an organization can constantly search for ways to improve the process, product, and service. Deming developed the
Contained within the following paper is the evaluation of the author’s organization’s mission, vision goals, and objectives .The author will discuss the pre-determined questions as set forth by Jeffrey Trapp, a certified University of Phoenix instructor. This paper will discuss the differences that a rise between a company that has implemented TQM (Total Quality Management) with that of the authors own organization’s management style.
Continuous improvement (CI) refers to a philosophy consisting of improvement activities that increase successes and reduce failures in a production process (Bhuiyan & Baghel 2005, p. 761). It involves activities and processes that focus on continuous and incremental innovation (Bessant et al., 1994, p.17). CI is a new approach that enhances productivity, performance, and achieves competitive advantage needed in the highly competitive industries. It may also serve as a complementary approach to other quality improvement initiatives such as total quality management (TQM) (Pike, Barnes, & Barnes 1995, p. 23; Larson 2003; Lassen, Gertsen, & Riis 2006; Oakland 2007, p. 227). The purpose of this research is to explore the application of production systems engineering methods in the CI at manufacturing plants.
The oil & gas industry is among the largest industries in the world. The sector generates large revenues and employs a large number of people in order to meet the worldwide demand for energy.
On April 20, 2010, the Deepwater Horizon oil drill exploded; thirteen people were killed and many were injured. 206 million gallons of oil was dumped into the Gulf of Mexico. This event attracted many new supporters of alternative energy (Issitt & Warhol). Alternative energy refers to any energy source other than fossil fuels. Fossil fuels are materials including natural gas, coal, and oil; they are cheap to produce, easy to distribute, and provide most of the electricity used in the world’s technology. However, they are nonrenewable, cause many harmful environmental effects, and take millions of years to create. Thus, many modern energy companies are researching new ways to develop alternative fuel sources (Issitt
The Oil & Gas Industry within the Energy Sector includes Oil and Gas exploration and Production, Oil and Gas Refining, Storage and Transportation. The three major focus areas of the oil and gas industry is firstly; exploration and production of oil and natural gas known as the “upstream”, secondly; transportation, storage, and selling refined oil and gas products called the “midstream’, and thirdly; refining and promoting of crude oil or “downstream”. The major international oil and gas companies (Exxon Mobil, Conoco Phillips, Chevron, Royal Dutch Shell, British Petroleum and Total S.A.) also known as “supermajors” are vertically integrated which means they are involved in all aspects of the upstream, midstream, and downstream activities. All the “supermajors” have around a 6% of global oil and gas reserves and market capitalization of approximately $100 billion or greater (Supermajor Companies). Saudi Aramco is the largest Oil and Gas Company in the entire industry. As Oil and Gas being scarce non-renewable natural resources and massive demand on the planet, yielding profits for oil and gas companies.
Continuous Quality Improvement is a philosophy of care that encourages all health care team members to continuously ask: “How are we doing?” and “Can we do it better. Thus, a concept that grows in the minds of caregivers helps with optimizes the benefits of patient satisfaction. In other words, the philosophical elements are those aspects of Continuous Quality Improvement that, at a minimum, must be present in order to constitute a CQI effort. According to chapter one of the textbook, they include: Strategic focus; this is a plan that emphasis on having a mission, values, and objectives that the performance improvement processes are designed, prioritized, and implemented to support.
UNEP IE and The E & P Forum (Oil Industry International Exploration and Production Forum) Joint Publication Environmental Management in oil and gas exploration and production E&P Forum/UNEP IE 1997.
Continuous Quality Improvement is an approach to quality management that builds upon traditional quality assurance methods by emphasizing the organization and systems: focuses on “process” rather than the individual; recognizes both internal and external “customers”; promotes the need for objective data to analyze and improve processes.
Total Quality Management is a management philosophy driven by customer needs and expectations. TQM focuses on quality and builds a management method based on full employee involvement. Its aim is to achieve long-term successful management through long-term customer
TQM is essential to be used by all the companies especially the manufacturing companies who have the responsibility to ensure about the quality of the product. TQM is being viewed as the boon and it is an approach for improving the quality and customer satisfaction in the long run and also reduces the amount of waste (www.businessknowledgesource.com). There are various components which have to be addressed in implementing the TQM they are Ethics, integrity, training, trust, teamwork, communication and recognition (www.businessknowledgesource.com).
Joseph Juran was a Romanian-born American engineer and management consultant. He believed that it was most important to take the broad, organizational-level approach to quality. Total quality management begins from top management and trickles through the company all the way to the bottom. Like Dr. Deming, Dr, Juran was focused on the end product and its quality. Dr. Juran focused much on the human aspect of quality management and held that the root cause of quality issues was the struggle to change and human relations problems. He also stressed the importance of educating and training managers. Much like Dr. Crosby, Dr. Juran was much more strategic and structured in his approach to quality that Dr. Deming was. Dr Juran’s philosophyon quality are outlined in Five areas: (1) Spiral of progress in quality; (2) Breakthrough sequence; (3) Project-by-project approach; (4) The Juran trilogy; and (5) The principle of the Vital Few and the Trivial Many. Spiral of progress in quality concept puts together the importance of cross-functional teams in the production of quality. “Quality results from the interrelationships among the different spirals” (Juran and Gryna, 1988). The breakthrough sequence: According to Dr. Juran, “a breakthrough is a dynamic, decisive movement to new and higher level of performance”. The Project-by-project approach requires employees to have problem-solving skills to be able to find the signs, sources and remedies for quality problems that they come across and solve them. “He breaks the problem-solving process into two journeys: (1) Diagnostic journey (from symptom to cause), and (2) Remedial journey (from cause to remedy)” (Juran and Gryna, 1988). The Juran trilogy includes quality planning, quality control and quality improvement. Quality planning involves creating processes that will accomplish the clear goals. Quality is related to customers, so the customer’s needs, and expectations should be recognized. Quality control
Quality is a very important thing in an organization; therefore it is not possible to improve the quality of a product or service substantially without major changes in all aspects of the organization. Because quality is so important if changes aren’t made throughout the organization the output of the product will no be very successful. Everyone in the organization plays a major role in the out come of its products.
Quality is a word which has been used for a very long time, lots of books have been written about it, and many of the world's scientists have defined it in many different ways. In this research paper, I will emphasise the Quality Management System, why is it important? What is it used for? What is the importance of having a Quality Management System? Many people think implementing QMS costs a lot and all the benefit is a piece of paper which says that your company is certified in having QMS.
[Online]. Available: http://www.referenceforbusiness.com/encyclopedia/Thir-Val/Total-Quality-Management-TQM.html. [11] S. K. Chavan, "Benefits and Problems in TQM," 3 November 2010. [Online]. Available: http://www.managementparadise.com/forums/materials-management/207553-benefits-problems-tqm.html.