TOTAL QUALITY MANAGEMENT

Abstract

This paper examines critical factors of TQM Implementation in most popular electronics companies, Samsung and Apple. Various levels of researches have been made to evaluate the performance, predictions, workouts and requirements not only for company’s personal growth but also for customer’s satisfaction.

Table of Contents

1.  Introduction 1
2. What is TQM and why we need it?
3. TQM for Mobile Software 
4. Mobile Software Companies 
5. Giants of Mobile Generation 
6. TQM Overview of Apple and Samsung 
7. What Quality parameters both companies follow?
8. Latest Efforts by Apple and Samsung 
9. Conclusion 
10. References 

I.                   Introduction

This research paper covers Total Quality Management of two giant companies representing their quality control system against their software whether it’s mobile or relative product. Need of SQA is quite demanding today as it involves 100% end user’s satisfaction where there are most likely chances of deficiencies, bugs and problems in software area nowadays. So the objective of this research is “Working of SQA and Software Testing for Companies and their achievements in end user satisfaction”. It is also been mentioned in this report, where software are important for SQA, hardware cannot be ignored because both make A-A bond which means what hardware carries, software can control it else prospective software is useless. Proper use of reports and statistics are made to elaborate whole scenario.

TQM is the way of managing for the future, and is far wider in its application than just assuring product or service quality – it is a way of managing people and business processes to ensure complete customer satisfaction at every stage, internally and externally. TQM, combined with effective leadership, results in an organisation doing the right things right, first time. The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface lie a number of processes. This core must be surrounded by commitment to quality, communication of the quality message, and recognition of the need to change the culture of the organisation to create total quality. These are the foundations of TQM, and they are supported by the key management functions of people, processes and systems in the organisation.

II.                What is TQM and why we need it?

Total Quality Management is a field which maintains a check and balance over anything which comes in market. The total quality management (TQM) concept represents a fundamental change in the definition and treatment of quality in product development. Traditionally since the beginning of the industrial revolution, US industries had a product-focused mentality. The philosophy of “if I make it, someone will buy it” was prevalent among U.S. manufacturing companies. A noticeable follower of this philosophy was the U.S. auto industry during the oil crisis back in the late 1970's. Many US auto manufacturers were hit very hard because they continued to manufacture large inefficient cars that people could not afford to drive it. Smaller, more efficient foreign cars flooded the market, cutting in on US automakers who believed Americans would continue to buy American cars despite the rapidly rising gasoline price. Their unwillingness to satisfy customer needs had cost them billions of dollars.

Under this traditional philosophy, the view of quality is as follows [Strickland, 1988]:

1)   Productivity and quality are conflicting goals. Improving quality consumes additional corporate resources that are needed to maintain productivity. Therefore, quality can be improved only at the expense of productivity.

2)   Quality is defined as conformance to specifications or standards.  Such conformance pays no attention to incorrect specifications or obsolete standards that are prevailed in most companies.

3)   Quality is measured by degree of non-conformance. It is usually measured by the defect count in "parts per million"— the famous six-sigma measurement. Such measurement focuses on the degree of non-conformance instead of customer satisfaction.

4)   Quality is achieved through intense product inspection. Such inspection consumes much of the corporate resources. If a product fails the inspection, it needs to be reworked or scraped.

5)   Some defects are allowed if a product meets minimum quality standards. This implies that customers are willing to pay for a “buggy” yet working product.

6)   Quality is a separate function and focused on evaluating production. It is assumed that the

Production group will welcome such independent quality function.

7)   Workers are blamed for poor quality. However, replacing a worker does not mean improving quality. Furthermore, poor quality may come from the supplier side.

8)   Supplier relationships are short-term and cost-oriented. There is no way to control the quality of raw materials or parts delivered by the suppliers.

Fig 1.               TQM Cycle

III.             TQM for Mobile Software

Quality is the obtainment of excellence, or the possession of an outstanding feature. Quality is the extent to which a product can perform up to its expectations. When a customer buys a product they are expecting a degree of usability, durability and maintainability.  To achieve the production of quality goods, a company needs to utilize total quality management (TQM) into the development systems of a product.

Within the software industry, producing quality products is necessary to secure a competitive advantage.  Software development companies have to develop and then maintain a reputation with the industry by meeting the demand of their users and customers with a commitment to quality software. The customer and software retailers require companies to use an appropriate software development process that ensure quality.

Total quality management (TQM) is a concept that directs the management process with a customer-oriented focus. TQM instils an organizational system that fosters control, communication and transparency into the production process. For the quality management mechanism to flow there must be horizontal communication across networks and vertical communication through hierarchies. [Flood, 1993].

TQM consists of four main processes: plan, do, check and act.  The term P-N-C-A cycle is the term coined to describe this process.  Plan is for planning and preparation. Do imply action and executing the plan. Check is for measuring the system with inspection, monitoring, assessment, valuation and analysis. Act is necessary after problem arise that need correction.

This TQM process is adapted in the software industry to perform the software quality assurance (SQA) process. To achieve quality in the software engineering process the SQA process is utilized. Activities performed with the SQA process include performing analysis, designing, coding procedures and tools; the use of appraisals after each software development stage; utilizing testing systems that consist of tiers; monitoring of software documents and any editing to them; enforcing software engineering development standards are followed; and using a review and reporting communication tool.

Another crucial SQA process is the audit of software quality. This process will ensure that software quality standards are met. Each segment of the software engineering production mechanism is broken down and analysed for performance.

SQA within the software industry ensures that products created by a company meet criteria that promote the reputation and customer confidence in their products. The fostering of successful TQM ensures products of high quality can be expected and relied upon by the user, furthermore company personnel productivity, performance and abilities are monitored and motivated.

IV.             Mobile Phone Software Companies

Google Inc. purchased the original developers of Android Inc. in 2005 after first financially backing them. In 2008 the Android-powered mobile phone first entered the market, and has been the most dominant operating system in the market. [1] Android is a Linux operating system which was first formulated for touchscreen mobile devices like tablets and smartphones. There have been over 500 million android devices put to use since 2008, with over 1.3 million being activated every day. Fig 2    2012 Mobile Phone Market Share

Google Inc. is a United States multinational corporation that produced internet based products and services including search engines, software engineering, and online advertising.  Google Adwords, the company’s online advertising vehicle generates the majority of the company’s profits.

Apple Inc. is a Californian based company with multinational clout. The company boasts ground breaking designs in a range of electronics, laptops, desktops, and computer software. Its claim to fame is attributed to the success of Mac computer products, the iPad, the iPhone, and the iPod. [3]

Apple has developed the iOS and OSX mobile phone operating systems as well as the Safari web browser, iTunes music and media player, and the iWork as well as iLife software applications.  As of 2012 iPhones accounted for 60% of Apple’s profit. Unlike Microsoft’s window phone and Android software, non-Apple hardware can’t use the iOS. [2]

Research In Motion Limited (RIM) a company out of Canada is involved in the wireless hardware industry as well as telecommunications. It is famous for developing the Blackberry smartphone and tablet.  The company was created by Mike Lazaridis, he was the CEO together with Jim Balsillie until early 2012.  [4]

The first Blackberry entered the market in 1999. As of 2011 the majority of Blackberry sales occur in Latin America and the Caribbean, as much as 45% of this area possessed a RIM operated product.

Accenture Plc. currently owns Symbian, which is a mobile phone operating system that was developed for smartphones. Initially the software was designed and created by Symbian Ltd.

Accenture is a management consulting company currently based in Ireland.  The company provides technology services, however by revenue it is one of the planet’s biggest management consulting companies, and has earned its position amongst the Fortune Global 500 list. The company employs over 257,000 personnel worldwide.  [5]

Microsoft first released their Windows Phone to consumers in 2010; it succeeded the Windows Mobile product which was aimed at the enterprise market[6]. Microsoft is a United States company based in Washington; they have one of the world’s largest market value by capitalization. Microsoft produces a large range of successful computing goods and services. The company was started in 1975 by Bill Gates and Paul Allen and grew to be one of the planet’s most profitable software creators. [7]

V.                Giants of Mobile Generation

The sensation of Apple products can’t be understated. Their products just continue to improve with each version. At the moment they are the market leaders of innovation in high technology, and their competitors seem to be struggling to play catch up. Changing the planet’s technology consumption has given it a huge competitive edge. [8]

As we can see from the above graphs over the last 5 years Apple has grabbed a massive slice of the telecommunications industry profits and revenue. IPhone sales by mid-2011 exceeded 18.65 million units sold globally. Setting the pace in the touchscreen market, iPhone was the first to introduce a multi-touch console which was later the design the rest of the industry had to mimic. The iOS software developed by Apple was highly user friendly and intuitive; the applications style of information technology was born. Apple has produced five versions of the iPhone since 2007 and each new version was coupled with a new and improved iOS. By 2011, iPhone sales had topped 72 million; the iPhone was Apple’s most successful and profitable product. Revenue by 2011 was a staggering 47 billion dollars, which equated to an excess of 40 percent of Apple’s revenue. [9]

Apple is consistently manufacturing high quality products which have quickly earned it a strong brand loyalty and converted those using other brands to join the iPhone revolution. 92% of those owning an iPhone will purchase another iPhone according to the Kantar report. Within iPhone sales during the 4^th quarter of 2012, 62% were sold to current iPhone users, and 38% were sold to those who previously had other brands. [10]

Sales of iPhones in the future will continue due to strong brand loyalty. Existing iPhone users will need to upgrade their phones every couple of years and then there will be users of other companies switching over to Apple. Even Android users are switching over.                              

Companies such as Research in Motion (RIM) and Nokia are struggling to profit in the market, with Research in Motion recording large market share losses. The combined market share of Android and Apple is approximately 80%, with 20% being fought over by the other companies.
Furthermore, loyalty to Android is not solid; Piper Jaffray reported in a study that only 47% of current users plan to purchase another Android device.  Strong loyalty to Apple will result in Apple continuing to swallow up the market share in this trillion dollar industry. [10]

The other giant in the mobile phone industry is Samsung, this company is a huge multi-national that boasts the claim of manufacturing 20% of South Korea’s exports, with its revenues exceeding the GDP of many nations in 2006. If it were an independent country it could claim the title of the world’s 35^th biggest economy. The conglomerate is a powerful unit in the Korean economy and therefore has influence over many sectors of the society.

Besides Apple the only other mobile phone maker that manufactures unique products is Samsung, the electronic giant. They produce cell phones as well as high quality chipsets and screens which mean the company makes profits from every component of the phone.
Samsung rivals Apple for market share in the US, and they are in fact the market leaders in cell phone manufacturing. A report by research company IHS stated that Samsung had shipped out 28% of the planet’s smartphones in 2012, while Apple lagged behind at 20%.
In 2011 the margin was much closer, since then Samsung has increased its market share in this regard.

What is an even bigger indicator of the clout Samsung has in the industry is that they overtook Nokia as the number cell phone producer in the planet. Since 1998 Nokia has had the phone products that could command the title of leading manufacturer, however Nokia has not kept up with Samsung and Apple in terms of developing touchpads and smartphones, both of which have come into unbridled demand.

An on-going dispute as of 2012 between Apple and Samsung saw Apple file a lawsuit against Samsung for copying whole lines of smartphones and tablets. A Californian jury found Samsung had abused copyright for three of Apples’ patents; a $1.05 billion judgment was handed to Samsung, whom then turned around and decided to appeal the decision. The battle for market supremacy will continue for these two market giants in the mobile phone game. [8]

VI.             Products Overview of Apple and Samsung on the basis of Total Quality Management

a.      Samsung Mobile phones

Samsung’s leading mobile phone line is the Samsung Galaxy S, it was released for sale in South Korea, Malaysia and Singapore in June 2010 and then the USA in July. United States sales peaked at 1 million cell phones within a month and a half.

At the 2010 European EISA awards, Samsung won in the smartphone category with their 19000 Galaxy S. The 19000 Galaxy was rewarded for its impressive screen and internet connection capabilities.

In terms of operating systems, in contrast to other companies that use one OS, Samsung has pursued flexibility by using a range of operating systems. The Galaxy S uses Google Android as its main OS, however it also provides support for its own OS Bada, as well as LiMo, Symbian and Microsoft Windows Phone. [12]

b.      Samsung’s Galaxy Tab

In September of 2010 Samsung released their Android run tablet at the IFA show in Berlin. It boasted a 7 inch LCD touchscreen, a 1.0 GHz processor, Wi-Fi, a 3.2 Mega pixel camera, and video calling capabilities. Although the tablet was received with mixed reviews it is considered a market option to the iPad. [12]

c.       Apple’s iPhone

The iPhone was first given an introduction by CEO Steve Jobs at the Macworld conference in 2007. The ground breaking phone was a conglomeration of a smartphone and iPod, combined with internet access and running on a simpler version of the Mac OS X, which later became iOS. The phone used applications such as Google Maps and weather; there were Safari browser capabilities and extra features including internet mail, Wi-Fi, Bluetooth and a touchscreen.[11]

In 2012 when the iPhone 5 was released, sales in the first 24 hours of pre-purchasing totalled 2 million iPhone units.

d.      Apple Software

Apple coded the OSX operating systems to run on its computers and products. To further encourage its operating system, Apple developed software that is bundled with its computer and electronic products.  iMovie, GarageBand and iPhoto are combined with the iLife software package.[11]

e.       Apple’s iPad

In the beginning of 2010, Apple launched its media hyped up tablet, the iPad. It ran on a new iOS, had a touch screen userface and that could easily read ebooks, newspapers, magazines or view images, play music, do word processing, play graphic intensive games, as well as possessing the library of iPhone apps. Web surfing was possible with a mobile Safari. 
iPad users could use the App Store, iTunes as well as access the internet with Wi-Fi on a 3G link. 
In October 2012, the iPad of the fourth generation was released. Since then there have been 3 billion app downloads. From the App Store there have been 25 billion downloads, such the popularity of this product. [11]

f.       Apple’s iPod

During October 2001, a digital player called the iPod was launched into the markets. It became the leader in portable players of music and eclipsed all other similar products. An impressive 220 million iPods were sent out by September 2009. A line of products has been developed to suit the needs of different consumers.[11]

VII.          What Quality parameters do both companies follow?

The philosophy utilized by management to setup a system of quality products and processes is called Total quality management (TQM). The main idea behind TQM is that all personnel within the company are responsible for the quality of the end product and the phases of production needed to get there. The managerial units of Samsung and Apple would all be aware of this concept, from top level management, to work personnel, to those in the supply chain.

There are nine practices found in many large organizations such as Apple and Samsung according to Cua, McKone, and Schroeder (2001)

1. Multi-purpose product design
2. Management of processes
3. Quality management of suppliers
4. Customer interaction
5. Feedback and information
6. Leadership commitment
7. Strategic planning
8. Cross-discipline training
9. Employee interaction

The TQM Philosophy is actually dictated by the needs of the end user. There is a focus on improvement of procedures to obtain the highest quality product. Quality in the product can be achieved through obtaining quality in every aspect of the company. To improve the quality of the end product, the improvement of the entire system is needed , whether that be in more efficient processes, or improved motivation of personnel. [14]

Throughout TQM literature, we can find principles that have been tested and formulated by companies setting up TQM systems.  Below are a number of tenets that ensure the success of TQM, [Department of Defense, 1990; Moore 1990]

1) Quality is a combined effort – It is not just the management but all personnel in the company that can work together on quality. Empower employees to take action when quality is not being met.

2) Customer Focus – The main object should be to ensure all customer expectations of quality are met as opposed to just fulfilling technical requirements.  Customers are the individuals that demand the production of the goods, all adjustments to the process should be aimed at satisfying their needs.
3) Every phase of production must be quality – Quality must be instilled in every phase, and throughout every process of production from beginning to end. It must also be monitored and evaluated.

4) TQM accomplishment involves continual training - Continuous improvement includes the improvement of an employee’s ability to perform his/her job. An employee must be trained in TQM principles and in the tools and techniques for implementing TQM. Such training credentials should be treated as an accomplishment for performance evaluation.
5) Training is part of TQM effectiveness – If an employee is upgrading his skills on a continual basis, they will be able to perform better at their job. Personnel must be trained in TQM ideas and this should be part of their performance evaluation.

6) Productivity changes with TQM are a long term implementation – TQM may take some years to be fully realized. This is a cultural adjustment within the company.
7) Inter-departmental cooperation – the heart of team cooperation is to combine different areas of the company for collaboration in the development process. With this idea, software engineers are working with accountants and marketing to work out their ideas together.

8) Openness of Information – One of TQM’s ingredients for success is cooperation, and sharing of information and expertise amongst all employees in the company and across different departments. This information sharing will empower employees with entitlement and a feeling of ownership of the company. [15]

VIII.        Latest TQM Efforts by Apple and Samsung

A number of quality assurance issues have sprung up in the media over 2011 and 2012, which have brought about calls for increased quality assurance measures from chief executives at both Apple and Samsung.

Amid the litigation battle between Apple and Samsung in July 2011, Samsung Electronics CEO Mr Lee Kun-Hee called for an improvement in the quality of its main products. Mr Lee’s response comes as a reaction to his feelings that the Samsung reputation of being a “clean” company has been tarnished. [16]

At the same time, Samsung Techwin had to recall air compressors, and air conditioners had to be given free maintenance inspections by Samsung Electronics. A Samsung executive was quoted as saying “Chairman Lees expected to ask top executives to immediately implement strengthened measure to drastically improve the quality of products”.[17]

The process of quality assurance and TQM is an ongoing effort. It is stated on Samsung’s website that “All executives and employees of Samsung are making continuous efforts to achieve the very best quality in all our products and services we offer.”

Samsung claim to be always improving their quality management system at all levels of the company, from retail point of sale, the design process, manufacturing to shipping. During 2004, Samsung has earned their ISO/TS16949, which is the worldwide quality management standard for the Automotive industry. The TL9000 was accomplished in 2001, which is the quality management system award for the telecommunications industry. Samsung must continually take measures to prove their total quality management mechanisms are functioning to prevent manufacturing misfortunes.[18]

Let’s take a look at quality control related events that unfolded at Apple in 2012.
The newly released Apple product the iPhone5 is without a doubt a technological wonder, however its metal band has reported problems in that it is scratch prone. Bloomberg has reported that as a result Apple has had to tighten its belt with regard to its quality control at production lines to resolve the situation. [19]

Apple’s main production partner Foxconn had been told by senior executives at Apple that stricter quality assurances were needed to ensure the problem was not found in other iPhone5 units.  This quality testing and controlling is resulting in an increase in metal bands not passing through the production process, a desirable result. There should be no more scratch able phones, however the cost is that these phones will take longer to manufacture and delivery to consumers is slowed down.[20]

At the Foxconn factory in Zhengzhou, where the iPhone 5 devices are being made, stricter quality control measures were severe enough to result in a strike by 4000 workers. Foxconn has disputed the claims by China Labor Watch that there was a strike on October 5^th after workers were being given demands of product quality controlling that were too strict, as well as being forced to work on a National public holiday.

Quality control is an ongoing and very important issue for both Samsung and Apple. The repercussions of poor quality assurance can have dramatic and costly repercussions upon a company and its reputation. [21]

IX.             Conclusion

After reviewing the comparison of both Samsung and Apple, taken on the basis of every possible aspect, both companies are facilitating their users a lot but still there are suggestions. Meeting end user requirement is not easy and both Apple and Samsung are working hard to prove their efforts. According to my observation, Samsung is lacking user storage for its devices which is considered necessary for backups, portable storage and keeping alive with other devices. Apple is lacking super-efficient processors where many other companies are using, these processors. Apple uses unchangeable batteries which makes end user problematic when batteries expires, they should use easily changeable battery system.

In customer’s care prospect, both companies are doing their jobs well, as replacement of products if quality is not meeting users expectation. Maintaining quality needs step by step analysis which cannot be ignored and customers are always helpful to give feedback for next product.

X.                References:

1.              http://bgr.com/2012/12/04/mobile-market-share-2012-android/

2.              http://en.wikipedia.org/wiki/IOS

3.              http://en.wikipedia.org/wiki/Apple_Inc.

4.              http://en.wikipedia.org/wiki/Android_%28operating_system%29

5.              http://en.wikipedia.org/wiki/Research_In_Motion

6.              http://en.wikipedia.org/wiki/Windows_mobile

7.              http://en.wikipedia.org/wiki/Microsoft

8.              http://www.globalpost.com/dispatch/news/business/120427/samsung-profits-jump-mobile-phone-sales-outstrip-apple-and-nokia

9.              http://www.dailytech.com/Apple+Samsung+Snag+99+of+Mobile+Phone+Profits+/article24616.htm

10.          http://en.wikipedia.org/wiki/History_of_Apple_Inc.h

11.          http://en.wikipedia.org/wiki/Apple_Inc

12.          http://en.wikipedia.org/wiki/Samsung_Galaxy_S

13.          http://en.wikipedia.org/wiki/Samsung_Galaxy_Tab

14.          The Journal of Quality Assurance Institute, Vol. 14, No. 1, January 2000, pp. 4-6 & 35-41. Total Quality Management in Software Development Process Eldon Y. Li, California Polytechnic State University, USA
Houn-Gee Chen, National Chung Cheng University, TaiwanWaiman Cheung, The Chinese University of Hong Kong, PRC

15.          http://en.wikipedia.org/wiki/Total_quality_management

16.          http://www.wiley.com/college/sc/reid/chap5.pdf

17.          http://asq.org/qualitynews/qnt/execute/displaySetup?newsID=11723/

18.          http://www.wired.co.uk/news/archive/2012-10/08/foxconn-strike

19.          http://www.koreatimes.co.kr/www/news/biz/2011/07/128_91169.html

20.          http://www.samsung.com/global/business/semiconductor/support/quality-assurance/quality-management/quality-policy

21.          www.appleinsider.com/articles/12/10/22/apple-expected-to-partially-absorb-higher-quality-control-costs-for-iphone-5

22.          http://www.bloomberg.com/news/2012-10-10/apple-choice-of-iphone-aluminum-said-to-slow-down-output.html