The Implementation of Total Quality Management

Total Quality Management in Emirates Global Aluminum Company

Total Quality Management (TQM)

TQM is a method of enhancing the competitive advantage of the organization in pursuit of a significant market share to increase the profit margins of the organization. This is primarily done through effective leadership. It entails managerial functions such as; coordination, staffing, control, organizing, and planning. Furthermore, TQM requires proactive and strategic leadership in executing these quality control measures.

Every business entity or project comprises of internal and external customers. The internal customers are the workers of the organization while the external customers are the clients. Clients are of varied nature. There are those who are linked to the business directly. Others are linked indirectly. The indirect customers are the shareholders of the company.

As a management principle, TQM is geared towards improving the production process and also satisfying people. The primary goals of TQM are to ensure client satisfaction and to enhance the performance of the organization. Proper coordination of workflow is required if a business is to meet the needs of its customers satisfactorily. Quality in all aspects of the organization is the central concern of the TQM. This management principle aims to achieve quality by a reduction of wastages to cut costs and improve production efficiency (Charantimath, 2011).

The public sector today is adopting TQM principles to meet public demands. Everyone demands quality products and services whether they are provided by a public entity or a private business. Nevertheless, integrating this principle and the procedures therein is the greatest challenge for almost all organizations. Some entities, when trying to integrate TQM, expect it to run as software that operates on its own to meet the required standards, others only partially integrate it. Because of this, many organizations have failed in their endeavor to meet goals that can be achieved by TQM. Incorporation of total quality management should be a priority, more so in fast developing companies like Emirates Global Aluminum for the purpose of increasing efficiency in the production process (Charantimath, 2011). This company is a fine example of the failure to integrate TQM as corporations struggle to make a profit without considering quality. Competition is now stiff due to increase in ease of doing business and increasing globalization of markets. Both foreign and local investors have flooded different sectors in the market resulting in competition between organizations so as to attract investors. Many large corporations are now reorganizing their operational procedures to competitors by streamlining operations (Charantimath, 2011).

Emirates Global Aluminum (EGA)

The Mubadala Development Company in Abu Dhabi and Investment Corporation of Dubai jointly established the Emirates Global Aluminum PJSC ("EGA"). EGA is a combination of assets in the aluminum industry. There are two main sub-branches of EGA, that is, Dubai Aluminum PJSC ("DUBAL") and Emirates Aluminum Company Limited PJSC ("EMAL"). Their total production yield is 2.4 million tons per annum. This makes EGA one of the leading aluminum producers worldwide. The Guinea Aluminum Corporation ("GAC"), strategic bauxite mine and alumina refinery development project in West Africa are all owned by the UAE-based EGA. There are plans to expand locally and go global (Dhamija, 2008).

One of the long-term strategies of EGA is to establish a mutually beneficial relationship with its customers. To achieve this, EGA has been investing in the production of quality products combined with effective delivery to its clients in addition to customers-centered services, which have enabled the company to increase its market share. Some of the customer-centered services include:

• Customer-tailored technical support services that are readily available.

• Personalized goods.

• Customer care services for consultations.

• Specialized support services for technical problems.

• Metallurgist experts are organizing seminars in different places to help customers in their individual markets.

• A supply chain management website that assist customers in tracking the movement of their orders.

However, different stakeholders of EGA had been accusing each other of the poor administration of the company, from production to delivery. The company adopted the TQM principles, and this has improved their service delivery. However, there are still complaints being filed against the company by people using their products and services. This research comes at the right time to evaluate the quality standards of the Emirates Global Aluminum, assessing the integration process and effects of the total quality management on the company (Dhamija, 2008).

EXECUTIVE SUMMARY

The concept of quality, its varied definitions and principles of TQM in addition to its implementation in EGA are all covered in this paper. Besides, the effect of TQM on the quality of the services, this text also discusses service, service quality and the evaluation of service through company and customers perspectives. The stages and their characteristics in the adoption of TQM are discussed in its roadmap together with the benefits and challenges therein. An overview of the Dubai-based company and the benchmarking need are included in the research (Franceschini & Galetto, 2006).

OBJECTIVE AND AIM OF THE RESEARCH

The primary goal is to outline the importance of TQM adoption and its principles in EGA. This will be done through statistical measurement and comparison of the three added values of TQM in Aluminum and also TQM in non-Aluminum industries. The three combined values are-:

• Satisfaction of external customers

• Satisfaction of internal customers

• The efficiency of equipment

As researchers, it was our work to assess the reasons as to why there are negative results after comparing these values or, in the case of positive results, why these positive results appeared (Franceschini & Galetto, 2006).

THE BACKGROUND OF TOTAL QUALITY Management

TQM is a method of enhancing the competitive advantage of the organization for the purpose of gaining a significant market share to increase the profit margins of the organization. This approach entails everybody in the organization undergoing a continuous improvement process, and that all customers have to cooperate if the business is to succeed. As a management principle, TQM is geared towards improving the production process and also satisfying people. The primary goals of TQM are to ensure client satisfaction and to enhance the performance of the organization by cutting costs and maximizing profits and employees potential for continuous enhancement. Total Quality Management is a philosophy that entails the mutual collaboration of all individuals involved in the business processes of a company. This has led to the management philosophy being defined as a principle that deals with all activities carried out by a firm with the aim of meeting the expectations of the clients, members of the community and the company itself in the most effective way by maximizing of the potential of all workers in a constant quest for improvement.

TQM is effective in quality development, maintenance and improvement of the whole production system (In Tetteh & In Uzochukwu, 2015). Both external and internal customers should be satisfied in a sufficient manner. It amalgamates the managerial, mechanical and cultural aspects of the industry. It is argued that total quality management is a philosophy that aims to change not only the way we think but what we believe in, and its implementation at the Emirates Global Aluminum Company is based on the belief that culture is a determinant factor in the employees' behavior - a factor which in turn affects quality (In Tetteh & In Uzochukwu, 2015).

Globally, TQM has been adopted by many industries thereby concluding that it is paramount to implement it and thereby gain competitive abilities and strategic advantages in the competitive global market. Research has shown that the adoption of total quality management as a management philosophy can enable organizations to compete globally. However, different researchers have affirmed that implementation of total quality management brought about positive outcomes in competitiveness, productivity and quality in only 20 to 30% of organizations that implemented it. in contrast, TQM implementation in the Emirates Global Aluminum has seen over 90% improvements in customer satisfaction, internal employees' relations, financial management, and operational processes (In Tetteh & In Uzochukwu, 2015).

METHODOLOGY

The methodology of this research was broken down as follows:

• Research design

• Method of data collection

• Study population and sample

• Data analysis techniques

RESEARCH DESIGN

The study-implemented hypothesis testing in the Emirates Global Aluminum, to study the effect of total quality management on the performance of the organization. A method called a "logical model of proof" that allows the researcher to make deductions concerning causal associations among the variables under study was used (Matherly, Al, & Al, 2010). The purpose of the study was to investigate the Emirates Global Aluminum Company's integration of TQM. The sample type, the methods of data collection and the technique to be employed in data analysis are also discussed. The conclusion was drawn by both induction and deduction processes. Whereas, the induction process is whereby there will be an observation of a phenomenon and a conclusion will be drawn based on that observation, on the other hand, a deduction process is whereby a rational conclusion is reached through logical generalization of what is known. These two processes may have different outcomes in that data collected via observation (induction process) may then lead to the creation of a theory or a hypothesis while the data collected through logical reasoning (deduction process) may lead to the rejection or acceptance of hypotheses (Matherly, Al, & Al, 2010).

DATA COLLECTION

Sampling

The research applied both primary and secondary data collection techniques in Emirates Global Aluminum Company.

Secondary Data Collection Method

This is a synthesis of written and manuscript documents relating to the research on Emirates Global Aluminum Company and also on Total quality management concept. The secondary method of data collection was very essential, and it is of high quality, as it provided the coherent structure of the research. For the scope of this study, the collected secondary data included materials from: textbooks, academic articles, and journals related to the implementation of TQM. Also, many online resources were used to get information for the literature review, like www.asq.org, www.analytictech.com, www.qualityscotland.co.uk among others (Morfaw, 2006).

Primary Data

In this research, Questionnaires and interviews used as techniques for collecting primary data as there was the need to balance the diverse opinions of groups in Emirates Global Aluminum Company. Cronbach Alpha was also used for the reliability of the study questions. The result from the validity test showed Cronbach Alpha to be between the range of 0.743 and 0.82 on the average of all the variables considered which is above the required 0.7 mark. Moreover, in this research method the validity was determined by using the previous conclusions on the effects of TQM on organizational achievement served as the basis for selecting variables used for establishing the effects of TQM implementation in the Emirates Global Aluminum industry (Morfaw, 2006).

Interview

a) There was Easy conversational interrogation - this is where questions are drawn from the surrounding and natural context is used when asking them.

b) Guided Interview approach - this is where the sequence of questions are decided by the interviewer, but questions are given before the interview.

c) Closed fixed response interview - this type of interview is the one with fixed questions and require a choice of pre-ordained responses also determined before the interview.

d) Standard open-ended interviews - the words and the flow of questions are determined to ensure free flow of opinions and concerns, if any.

The following were the focus of outcomes of personal interviews conducted with the various Emirates Global Aluminum departmental heads:-

1 Their opinion concerning the TQM implementation.

2 The quality approach they use and its effectiveness in service delivery

3 The challenges they encounter when implementing TQM

Unstructured questions were used for clarity purposes about the variables that needed deeper research. Due to sensitivity of the issue, the informal interview was carried out to prevent inconsistent information by respondents (Mukhopadhyay, 2005).

The 15 set questions that were issued to the 15 respondents are as follows:

1. Do you have one of the TA? Systems within your company?

2. What are the principal changes that your organization needs to make to achieve its TQM aims?

3. Who has primary responsibility for quality in your organization?

4. Is there a TQM educational training program in the company for management, supervisory team, and member of staff?

5. Does the company have quality team or any other groups in which members of the management team and other staff meet to discuss operational problems etc.

6. Does the company have a manual with formal TQM procedures to be followed?

7. What is the perceived level of TQM implementation in the Company?

8. Is there any association between the implementation of TQM practices and business results?

9. Do you have an integrated procedure in implementing TQM?

10. How is total quality improvements measured in the company?

11. Is there any association between duration of ISO 2000 certification and implementation of TQM practices?

12. Is there any association between duration of ISO 14000 certification and achievement of business results?

13. How many employees do you have in the company?

14. Is there any association between the type of the company and implementation of TQM practices?

15. Which TQM practices are significant predictors of the overall perceived business results?

Out of the 15 respondents, one was selected for an interview to respond on the impact of TQM on that particular area of business- supplier, process, or client satisfaction.

DATA ANALYSIS

Qualitative Analysis

The implementation of TQM in any organization requires the participation of all stakeholders for such management endeavor to be a success. For the company under consideration, the Emirates Gold Aluminum Company, its direct and main stakeholders as a business entity are its Suppliers, the processing unit employees and the consumers of its products, the clients of EGA. For the sake of clarity and convenience of analysis, the researchers designed the questionnaire focusing the sectors independently. Hence, there are three sets of questions, one each for the Suppliers, the Transformation Process (Processing Unit), and the Clients. Further, keeping in line with the adopted methodology, the aim of the questions was to probe the inclination of the management towards TQM, the external clients' satisfaction value regarding the service and deliveries made by the company, the internal clients' satisfaction within different processes undertaken within the company and finally, the factors affecting the level of performance in its operations.

The language and intent of the interviews is sectored thus:1) interrogative and conversational, 2) Guided Interview approach, that seeks a preordained response, 3) and the Closed-fixed response approach, similar to the Guided type and the last type is the open ended approach where the response can be detailed with opinions, criticisms and personal suggestions.

The design of the questionnaire eases the respondent into the activity by seeking contextual information, followed by information about established norms followed through stricture by the company, and finally seeking a response about the impact of TQM on that particular area of business- supplier, process or client satisfaction.

SUMMARY OF RESULTS

The rationale of this study was to find out how effective and efficient the EGA Company is after the implementation of TQM principles. For this reason, a T-test hypothesis was conduction to measure the difference in TQM in Emirates Global Aluminum (EGA) Company and Non-TQM Aluminum Company about both internal and external employees' satisfaction and efficiency in their operational procedures. The participants were drawn from EGA company staff and a non-TQM organization bringing the total number of participants to 116 individuals from three different sections within the two companies (Nair & Mertova, 2010).

Three tests conducted reveal that total quality management had a positive outcome on the performance of the organization. This supports the argument that TQM corporations have a competitive edge in terms of meeting the needs of their staff and their clients while still being effective in their day-to-day operations. The results reveal the real scenario at the Emirates Global Aluminum Company, which has been able to increase the level of satisfaction for its customers by creating a work process with a great focus on quality management and one that enables all its staffs to participate in the decision-making process (Olson & Mendoza, 2015). TQM when properly adopted has a significant impact on the company's performance as shown by the results of the three tests. This is an affirmation of the TQM philosophy of competitive advantage in customer satisfaction and improved performance (Olson & Mendoza, 2015).

The chosen respondent, who was of managerial cadre, out of 15 was interviewed about the impact of TQM on that particular area of business- supplier, process, or client satisfaction based on the following parts.

Part1 -- Suppliers

1. Who are the suppliers?

2. How many suppliers?

3. Are they local/regional/international?

4. What are the selection criteria of suppliers?

5. What criteria are used to evaluate suppliers?

6. Do they consider their suppliers as partners?

7. Do their suppliers believe in Total Quality?

The first three questions in this section are of the contextual type and have fixed expected responses. The fourth, fifth and sixth questions are partly guided and partly interrogative in nature seeking the quality intent of the company regarding its suppliers. The last question attends to the importance management affixes to the TQM principle and is open ended.

Summary of responses to Part 1:

The corresponding responses are summarized as follows: EGA is open to any supplier, and though its main supplier is Guinea Aluminum Corporation, the company (EGA) has many suppliers, both local and international that offer quality. As regards the selection criterion that the company sets for its suppliers the response is: Meet specification requirements and they also have to meet standards. Other conditions in the selection criteria include complying with standards set for customer service and they have to be in possession of statutory certifications. The suppliers need to demonstrate past performance and capability to deliver products. Technology and experienced staff are some of the other factors considered. Next, at EGA, Suppliers are evaluated based on three main aspects: financial, legal and certifications. In terms of the financial aspect, the financial viability of the company is assessed. In other words, EGA evaluates whether the supplier can do business with them in the long-term without coming into any financial difficulties. In terms of the legal aspect, compliance with EGA's terms and conditions is assessed. The legal environment in the supplier's location is also evaluated. In terms of certifications, EGA looks into the credibility of the certifications presented by the supplier. EGA considers its suppliers as partners since they believe this kind of business relationship with their suppliers will be the best for their clients. Finally the responses revealed that some of the suppliers to EGA do not believe in TQM since the profess that they are in the raw material business and have one or two consumers for all their products to whom they sell most of their produce. Consequently, they do not think it is important to improve processes and outcomes, as theirs is a captive market.

Part 2- Transformation Process

1. What type of processes do they use?

2. What policies do they have in place?

3. People & Technology: is it labor intensive or technology intensive?

4. What kind of quality models/techniques/strategies do they implement? ISO, six sigma or TQM

5. People selection, training, development, empowerment and engagement

6. Technology i.e. automation

7. What is the level of management commitment towards TQM?

In this section, too, the first three questions seek predefined, contextual answers and ease the respondent into the exercise. The remaining questions require the interviewee to furnish details about the quality consciousness the company professes in its operations. They also seek response on the mode of processes in their core activity. The last question elicits response about its management's view towards TQM in its operations.

Summary of the responses received to Part 2:

The company engages chiefly in the following activities as a part of its operations: Rolling,

Foundry re-melt, Liquid metal production, Billets production, Ingot production, and water purification. Emirates Global Aluminum Company has several policies. One of the most important policies they have in place is a sustainable development policy whereby all its managers are expected to work towards zero harm to individuals and to the environment. Another policy is a corporate social responsibility policy through which the company gives back to the community. EGA is largely labor intensive though it also incorporates several automated processes and innovative technologies. The company uses Total Quality Management in its operations. For the company, TQM is a management model that streamlines their varied processes and improves quality that helps them realize increased profit margins. The company recruits its employees through a competitive process and it is an equal opportunity employer. EGA also provides career advancement and training opportunities for its employees. It can be said that there is mid-level commitment from the administrators of the company. Some of them see its importance while others think that it is a waste of valuable time and resources.