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
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…
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