How does decreasing oil prices afftect OPEC creatoer states (saudi arabia kuwait, iran and venzuela)

urces should be clearly state at the end of the research

Here is a research to have a clear idea about this task and the requirments:



Introduction

Today s global market place is governed by turbulent change, which deeply affects organizations operating in today s business environment, and represents one of the major causes for business failure. Customers are better informed and more discriminating. In response to this situation, TQM (Total Quality Management) has been adopted. TQM aims at achieving product quality throughout the production process starting from suppliers and ending with customer service. Quality is in fact intended not as a defect-free feature to be achieved in the production of all sorts of products or services, instead the extent to which the product or service produced meets customers needs (Groth, 1995).

Therefore quality has arguably become a primary source of competitive advantage to be achieved by companies (either manufacturing or service companies) through the continuous and effective implementation of TQM.

Although a clear need for an effective business tool to manage quality has arisen in the ever-competitive business environment, the implementation of TQM has resulted in major failures for companies which have consequently experienced significant losses in competitiveness and efficiency.

Such major failures in implementing TQM as a larger company-wise philosophy for quality management could be traced back to the enormous number of models for TQM that have led management of today s multinational companies to the deepest confusion.

The below research proposal aims at studying TQM existing philosophies based on the definition of quality as the extent to which the firms produce a service or a product that meets customer needs and fulfill customer satisfaction. Having analyzed the existing literature on TQM, the research will then move onto a critical and objective analysis of the different methods currently in use for the implementation of TQM in multinational service firms.















Aims and Objectives of research:

The aim of this research is to find out the extent to which TQM practices are effective managerial tools for the management of quality and how they can be implemented efficiently in order to establish a continuous improvement process within the firm.











Literature Review on Total Quality Management

Total Quality Management practices have become utterly important to the management of an increasing number of organizations in the last decade. Quality has in fact become the crucial strategic tool for those businesses that want to achieve a greater competitive advantage. However, different schools of thought and different major authors have contributed to the discussion on TQM by proposing diverse models for an effective implementation of TQM practices.

Deming (1982) proposed fourteen principles that should serve as guidelines to the management of all companies willing to adopt an organization-wide philosophy for the management of quality as the firm s management style. The fourteen points proposed by Deming (1982) focused mainly on four core activities carried out in all organizations, regardless of their size, structure and market positioning. These are as follows:

” Objectives setting and corporate philosophy and culture.

” Business processes.

” Management role within the organization.

” Organizational design and structure.



The aim of these fourteen points was to improve quality in all firms by focusing on: accurate objectives setting, developing an improvement philosophy, effective leadership, continuous process improvement and control, ongoing training for managers and employees, and a greater focus on internal communication aimed at improving the cooperation among the departments for the achievement of quality.

Alongside these guidelines suggested by Deming for the implementation of TQM, standardized quality models have been developed which are to be used in practice by firms that are either seeking to implement TQM or willing to carry out self-evaluations of their quality practices. The most known quality models are the European Foundation for Quality Management (EFQM) mainly used in Europe, the Malcom Baldrige National Quality Award model (MBNQA) in the USA, and the Deming Application Prize model in Japan. The latter will not be discussed in this paper as it is not strictly related to our research.

The MBNQA model gathers the main concepts and values of an effective TQM approach to leadership under seven main titles which are: leadership, strategic planning, human resources orientation, process management, information and analysis, customer and market focus, and business results. The EFQM, on the other hand, is mainly made of the following principles: leadership, employee management, policy and strategy, alliances and resources, process management, people results, customer results, society results and key results (EFQM, 2000).

The two models of TQM described above tend to give some practical advice in order to effectively implement the critical factors of total quality philosophies, which were originally described by Deming in his fourteen points (Hellsten and Klefsjo, 2000). Therefore, it could be claimed that EFQM and MBNQA represent just two models of how critical factors of TQM could be implemented in practice.

However, it has been argued that TQM consists of two elements: critical factors, being the theoretical principles which management needs to have a sound knowledge of, and methods, which are a set of business tools, techniques and practices deriving from the critical factors. Methods represent the practical elements to be employed in order to implement those total quality critical factors (Tari, 2005).

Some have noticed that in practice, firms will tend to employ only methods. As a result an ineffective total quality management philosophy will occur in the organization, which will eventually result in major losses for the firm and its corporate culture. Such a phenomenon has led most managers to confusion about what actually needs to be done in order to develop an effective total quality culture in their firms.

Lozano (1997) pointed out the main differences between different TQM models such as EFQM and MBNQA. While doing this, he also suggested at what stage in the implementation of those models total quality management methods, like the ISO 9000 standards, are applied or should be applied. In the European model, both outcomes, such as customer satisfaction and business outputs, and all the processes and leadership practices that have led to those outputs are considered of similar importance to the management. On the other hand, in the American model, the last two activities, namely business results and customer focus and satisfaction, are given a far greater importance than the first five ones, which are the processes that led to those outcomes.



Lozano underlined this tendency in both models on stressing the business outputs more than the processes that brought the firm to those outputs. Furthermore, he observed how the ISO 9000 standards focused mainly on achieving quality standards in the production processes. He finally suggested that methods such as the ISO 9000 standards should be applied at the  processes stage in th