Adoption Of Quality Improvement

Published Date: 02 Nov 2017

Chapter 1

Introduction

1.1 Introduction

This chapter presents a general overview of the present project. It starts with a general overview of the research and problem statement, which this project tries to solve. Followed by the aim and objectives of this project, that guides it. Then, the motivations, importance and rationale of the research are provided, why this subject was chosen. Finally, the dissertation structure is offered in the end of this chapter.

1.2 General overview of the research and problem statement

The humanity have started to think in quality when discovered how to build the first tool and with the past of years this concern has been increase. After the industrial revolution this subject gets force, and in this period a lot of quality improvement tools were discovered (4). Quality has become important not just in product, but in every process of the organizations (5).

The concept of quality improvement approaches has been introduced in Brazil in 1960’s, mostly implemented in the manufacturing industries by big companies such as automotive (5). As time goes by, the number of companies using these tools has been increasing and the techniques have started to be used in all kind of companies. Although, today Brazil has more than 6 million of companies (9) and less than 7 thousand are certify by the ISO standards (8). Besides, 58% of the Brazilian companies closed before complete six years (10).

However many studies have been done on applications of quality improvement tools to find the better way to implement, to improve business performance, like (33) that study how to select a correct tool for Brazilian companies, or the (2) that investigated the current status of implementation of ISO 9000 in the companies of countryside of São Paulo state, or even the (34) that research the application of quality control tools in the construction of residential buildings, nobody investigates the current status of then in Brazil. Differently of (11), that investigated aspect of implementation Six Sigma in the 1000 bigger companies in Brazil and given suggestion about how implement this in Brazil, this research is not restricting to the biggest companies, that usually apply this kind of tools, it covers all sizes companies. Because today the medium and small companies in the country represents more than 99% total of companies and those ones are the fastest growing in Brazil (32). Also this project is not restricted to six sigma.

Seeing the good results that those approaches have been present in all countries, there is no reason for not adopting those ones in Brazil, such as no motive for not offering recommendation for the successful implementation of this concept.

The working methodology of this project was based on empirical analyses that objective analyzing the current status of quality improvements approaches implementation in Brazil as well as propose recommendation for the implementation of then based on the previous analyses.

1.3 Research aim and objectives

This project aims to investigate the degree of adoption of quality improvement approaches in Brazilian companies, to discover if they are using and what they are using. Then intends to analyses the current status of those tools implementation and find out if those companies are really satisfied if the results of that. Finally, it aims to suggest some important factors to successfully implementing the quality improvement approaches in Brazil.

The proposed aim was achieved through the following objectives:

Identify and select as many companies as possible in Brazil to make the research and data collections used in this study valid.

Design and validate a questionnaire survey for the investigation and get as many responses as possible.

Identifying what kind of quality improvement tools the Brazilian companies are using, discovering if it has been working.

Analyzing the results of data collection and proposing recommendations for the successful implementation of quality improvement tools in Brazil.

1.4 Motivations, importance and rationale of the research

As a student of manufacturing engineering, this authoress has an especially interesting in the quality area, because of the tools and techniques, that are capable of improve process, make companies reduce waste, gain productivity and competitive edge. On the other hand during the three years of working experience before came to the University of Derby, this authoress was able to feel the problem that the rework have been cause to the companies and how bad is receive complaints from the customers. Besides, Brazil is a developing country whit a lot of companies with less than ten years and also a lot emerging every day, for this country became a develop one, those companies need a sustainable growing, and the quality improvement tools can help them with that.

The rationale of this study consist in identify Brazilian companies that have been use the quality improvement approaches, analyses the obtained results and propose some way for successful implementation of this tools. Specifically, this investigation presume that few companies in Brazil are actually using the quality improvement tools, so analyzing the responses of the survey, will explore how many companies are applying this tools, if has been working for them and finding out the significant factors to successfully implement this principles. This will also benefit all the Brazilian companies that intend to apply some of the quality improvement approaches describe on this project.

1.5 Dissertation structure

The dissertation’s layout and the detailed description of each chapter will be expounds in the following section.

Chapter 1: Introduction

This chapter presents a general overview of the present project. Starting with a general overview of the research and problem statement, followed by the aim and objectives of this project. Then, the motivations, importance and rationale of the research are provided. Finally, the dissertation structure is offered in the end of this chapter.

Chapter 2: An overview of the Brazilian economy

This chapter starts presenting the history of Brazilian economy. Show the actual economic situation of this country. And end presents the industrial sector and service and trade sector in Brazil.

Chapter 3: Literature review on quality improvement approaches related to this project.

This chapter reviews the history of quality in the world and in Brazil. Also presents a brief review of some quality improvement approaches related to this project.

Chapter 4: Research methodology and approach

This chapter presents

Chapter 2

An overview of the Brazilian economy

2.1 Introduction

Currently Brazil has a strong and solid economy. The country is a bigger producer and exporter of a several kind of products, manly minerals commodities, agricultural and manufactured. Also is considered a developing country and occupies the seventh place on ranking of the world biggest economies (12). The Brazilian industry history is quite new if compare to others countries. Therefor the bigger part of industrial realizations there, are related to installation, maintenance and integration of industrial park (25).

This chapter starts presenting the history of Brazilian economy, to understand how the country arrived in the actual situation. Then, show the actual economic situation, to know the conditions that the economic sectors are exposed. Finally, it presents the industrial sector and service and trade sector in Brazil, where this research projects takes place.

2.2 Economic history of Brazil

One of the biggest landmarks in the history of Brazilian economy has been the industrialization. Until 1930 Brazilian economy was based basically in agriculture. But with the word economic crises that settled in that time, the government was obliged to present a reaction. So the first foundry industry was created in Brazil. Also a big part of Brazilian infrastructure was developed in that period. The transport model adopt has been the highways, instead the others (12).

In 1950 Brazil reached higher growth rates in o short period of time. However, to do that the government borrowed money from other countries, increasing the external debt and triggering the inflation (12).

In 1960 started, in Brazil, the military dictatorship (14). Despite the dictatorship after 1970, a period begun in Brazil called economic miracle. The hasty growing of industry, created a several jobs and increase incomes of the employees. The industrialization of that period was center in São Paulo and Rio de Janeiro (13).

This good moment do not lasted too much. In 1979, the inflation increased again, because of the world petrol crises and some internal politics (14). This crises lasted until 1990 (14).

The biggest mark in 1980 was the end of the military dictatorship and the democratization process (14). A lot of economic plan succeeded one after other, but no one was able to solve the economic crises (14). At that time the public service was discredited and the people started the claimed for services with quality (14).

So in 1990 the privatizations started in Brazil. A lot of public companies were sold to international private companies (14). Also in this period Brazil adopted competitive edge politics, the internal politics about importation and exportation was rewritten (25). In the same year the petrol productions tripled and Brazil became the seventh larger automobile produce (25).

But 1990 the most important fact that occurred in Brazilian economy was the Real plan. This plan ended with almost three decades of inflation and started the economic stabilization in Brazil (16). Also changed the current currency to Real, that is the Brazilian currency till today (16).

2.3 Brazilian economy situation

In the past few years Brazil has been lived a combination of economic advancement and social progress. All this because an arrangement of innovative social politics of income distribution, economic stability and sustainable growing. That also has conducted the country to be one of the biggest economies in the planet on the 21th century (17).

Brazil since 2008 has the degree of safe investment. This state warn international investor that is safe invest money in Brazil. Also shows the country can honor yours debts and raise more than spend (17).

In 2009 Brazil was invited by the International Monetary Fund (IMF) to be part of the creditor group. So the country passed from debtor to creditor, because of your strength in foreign accounts (17).

The Brazilian international reservation of currency has never been so big. Those reserves are which protect countries against the effects of international crises. Today Brazil has the sixth biggest reservation in the world. And every year the country has broken records of production, which has increase and justified these results (17).

Since 2001, Brazil, together with Russia, India, China and since 2011 South Africa, has been classified as part of a group called BRICS. This countries do not composed an economic block, they are just countries that share the same economic situation. In 2010 BRICS represented 25% of the word IMF growing. And stand in the word due to the fast economic development and the big population (20).

In 2011 Brazil was the sixth bigger economy in the planet, with a Gross National Product (GNP) of 4,1 trillion dollars (17). Position that he lost this year because of the weak economic results achieved until this moment. This ranking consider the GNP, that is the amount of everything produce in the country. In 2011 the Brazilian GNP grew 2,7% (18), but in the first semester of 2012, only 1,2%, result that has left Brazil in the seventh position (26).

Despite the European economic crises, Brazil has been lived a comfortable position at this moment. The credit offer has never been so big and the government has been worked to keep this offer like this (21).

The problem with this offer is the default that has been increased in Brazil (21). Since 2000 the country do not has a default like today, which is 5,9% (22). People have been easily access to credit, so they are doing bigger debts. Which have caused fast growing of the housing sector. And these two points can put Brazil in a dangerous zone in a closed future (22).

2.4 The industrial sector

The industrial sector in Brazil represented 14,6% of GNP in 2011 (23). Despite the drop in the past six years, in 2011 the export of industrial products was the second largest in the history of the country, summing R$ 92,3 billion (28). Furthermore in the same year the production value grew 33% (28).

However Brazil lives today a deindustrialization process, because the manufacturing activities are decreasing. The production scale has decreased, also value adds to the product and levels of employment in the industry. All this because the actual world economic crises, that end affect the developing countries and labor politics that do not favor the industry grows (29).

About the penetration coefficient of imports, in the past fifteen years grew from 10% to 21%. Nevertheless the impact of imports in the GNP was 12%, the smaller among the 155 World Trade Organization members (28).

In the park division concern, the southeast region has the biggest industry concentration, mainly the São Paulo state where the Brazilian industrialization begins. This region holds the most moderns industrial parks that manufactured a diversified kind of products (24).

South and Northeast region also have an important role in the manufacturing sector and occupied the second and the third, respectively, pleases in industrialization. The first one acts mostly in the agribusiness sector, but also excels in the metallurgy (24). And the other one had mostly textiles, food and drink industry (24).

The opposite is the North and Midwest regions with the lees industrial contribution. The economic activity there is based on extraction and agriculture (24).

2.5 The trade and service sector

Considered the bigger responsible for the economic development in Brazil, the trade and service sector represent 67.94% of the GNP in 2011 (23). Only in the service sector total more than 879,691 companies with a operate revenue of 680 billion of reals and employ 9.2 millions of people. This sector is also the mainly destiny of foreign investments (27). On the other hand the trade sector has more than 38 thousand companies with a operate revenue of 920 million of reals. Also employ more than 3 million of people (30).

In 2011 the Brazilian service foreign trade presented deficit of US$ 36.7 billion. The export grows 21%, the 23º bigger growth in the world. But the imports advanced 22.4% the 19º bigger growth in the world. However these data show that the country has increased his participation on this market, because in 2010 he was the 30º country in export ranking and the 7º in imports (32).

2.6 Summary and conclusion

This chapter presents an overview of the economic history of Brazil, to understand how he got in the present situation. Conditions that are also show in this chapter. Besides specifies the position of the industrial and the trade and service sectors. This literature review has provided general information to complement the investigation.

Generally, it may be concluded that Brazil lives a comfortable situation at this moment and his economy has grown in the past few years. Despite the deindustrialization process that the country face at this moment. It shows that is the service and trade sector that has contributed a lot with this grows.

Chapter 3

Literature review on quality improvement approaches related to this research

3.1 Introduction

Today quality improvement approaches have been widely used by companies to improvements their operations. As this research aims to discover with the Brazilian companies are using some concepts and tools of this approaches, the objective of this chapter is to review the approaches most relevant to this project.

Firstly, this chapter reviews the history of quality in the world and in Brazil. Than presents a brief review of some quality improvement approaches, like ISO 9000, Total Quality Management, Lean Manufacturing, Six Sigma, Statistics Process Control, and Brazilian Business Excellence Model, all of that related to this project.

3.2 Quality history

3.2.1 Quality in the world

Until the 19th century, the quality control was basically product inspection. Concept, that started and get stronger in Great Britain during the Industrial Revolution in 1800s. Until that century, the companies unaware the concept of quality management (40).

In the 20th century after the United States entered World War II, quality became a critical component of the war effort, for example bullets manufactured for one company should work in rifles made for another. Initially the army inspected every unit of the products, but then they started to use sampling techniques for inspection call statics control techniques. In this century the organizations started to include quality processes in quality practices (40).

In the end of World War II arises the Japanese. In this period the japan was devastated by the war, so they needed developed products with high quality and low price to compete in the global market, to improve their economic situation. Therefor they develop a quality control method that instead find and eliminate the defective products, prevent that the defect happens. This model is recognized today as Lean Manufacturing (41).

Responded to the Japanese quality revolution, in 1970s, was created a new approach in the U.S.A., the Total Quality Management (TQM) (40). The TQM was not just a static method, but an approach that encompassed the whole organization. This concept introduced the idea of "zero defect" and that everything can be made right in the first time (41).

After that in 1980s, also in the U.S.A., a new tool was developed called Six Sigma. With the focus of prevent the defects, this was another response of U.S.A. companies that was losing space to the Japanese companies (42).

The next big step started in 1987 and was called standardization. With the creation of ISO 9000, the certifications that ensure quality systems became to be popularized. Was not happen a big change of concepts and approach in this year, but the companies started to search for standards worldwide recognized (41).

In past few years a new quality movement has emerged, and it is beyond the Total Quality. Today quality moved beyond manufacturing into services, healthcare, education and government sectors (40).

3.2.2 Quality in Brazil

Brazil until the World War II was a country essentially agricultural. It did not pass for the quality movement that passed U.S.A., Europe and Japan (mov qual. Bras.).

The firsts concern about quality arises in 1950s when the Foundry National Company and the Petrobras, the Brazilian company of Petroleum, were opened. The first one prioritized the war efforts, and the second one to rendered the country self-sufficient in oil (mov qual. Bras.).

But despite these companies, Brazil still was completely dependent of foreign technologies. And because of some politics that closed the Brazilian market, the companies in the country had no competition, so they not worried about quality. And because of that the Brazilian products could not compete with others countries. (mov qual. Bras.).

The first companies that contacted methods of quality ensure were the nuclear industry, in 1970s. Because, of some requirements that the government had for the sector and the danger that the lack of quality can represent in those industries. (mov qual. Bras.).

In 1990s the scenario changed with the opening of the Brazilian market. Brazilian companies faced the competition so they had to search for something that put then in conditions to compete in this new market. In this period a lot of concepts about quality control and Total Quality were introduced in the Brazilian companies. (mov qual. Bras.).

3.3 ISO 9000

3.3.1 Concept

The ISO (International Organization of Standardization) family contains several standards and aspects of quality management. It is used by companies for provide standards and tools which has the function of guaranteeing that their products and services consistently meet customer’s requirements. Also that quality is constantly improved (35).

According to (35), in the ISO group there are several standards, but all those connected to quality are:

ISO 9000:2005 – Quality Management System: Fundamental and Vocabulary. Specifies the concepts and languages using in the ISO standards (LB);

ISO 9001:2008 – Quality Management System: Requirement. Presents the requirements of a quality management system;

ISO 9004:2009 – Quality Management System: Guidelines for Performance Improvement. Give directions to make a more efficient and effective quality management system.

ISO 19011:2011 – Guidelines on Quality and Environmental Auditing. Works like a guide on internal and external audits of Quality Management System.

Those standards define some features which it is necessary present in an organization management control system, like documented quality policies, manual and procedures. The objective is guarantee that an organization has standards procedures, the product defects are monitored, that corrective and preventative action system are in place and that management review on system. In other words systematic assurance and control.

3.3.2 ISO 9001:2008

Is the most famous standard on the ISO family and the only one that can be certified. It basically specifies the criteria for a quality management system (35). The ISO 9001:2008 is implemented by more than million companies in over 170 countries. Any kind of organization can be certified, independent of field of activity (35).

The Quality Management Principles are the base to this standard. Those principles include a strong customer focus, the motivation and implication of top management, the process approach and continual improvement. The aim of the ISO 9001:2008 is ensure that customers get good quality products and services.

An important part of ISO 9001 is the audits. Those ones aims check if the system is working. The certified organization need execute internal and external audits once a year to check how the quality management system in working. The internal one can be perform by themselves, but the external one should be executed by certified organ (35).

3.3.3 Benefits

As said before two of the bigger benefits that ISO offers are the continuous improvement. The certification demands that the organization continues to search for excellence in their process (37). And the focus on client, the ISO requires that the company understand the necessities of their customers, to improve their satisfaction.

According to (36) the others reasons for the companies resolve to seek ISO 9000 certification are:

Customer demands: the most common and strong motivation, is when a customer requires such certification of its suppliers. So to increase your customer market the companies get certified. For example all the suppliers of the bigger three automotive companies are require to have certification in QS 9000, the ISO 9000 industry equivalent.

European business: A lot of European companies agreed only to deal with ISO 9000 certificated, to guarantee quality in the products and services. So with the ISO certification the company can be access to European markets.

Advertising: some companies are the certified to advertise that fact and in order to appear better than their competitors.

Improved operations: implementing the ISO 9000, a company can greatly improve their efficiency of operation. The ISO provide a process management model, all the means in the organization are traded as a process, and is easily for the manager see how the process interrelate with each other.

3.4 Total Quality Management (TQM)

3.4.1 Concept

Considered as a philosophy and a set of guiding principles for managing an organization, Total Quality Management (TQM) is the cooperation of everyone and everything in an organization to produce value-for-money products and services, to attend the costumer’s expectations (LB). TQM involves in all process of the organization the application of quality management principles, also the integration of this process to the key business process and with all aspects that involve the organization. It is characterized by the continuous search of improvement in the process and procedures of an organization.

3.4.2 Key elements of TQM

According to (LB) to the TQM effective work in a company, there are some elements that should be followed. The key elements of TQM are:

Commitment and leadership of the chief executive officer: The chief executive should be in charge personally of the processes of the organization. He must be the example, provide directions for the company and employees, and dealing with the employees who try to block improvement.

Planning and organization: the organization should develop some features to ensure the improvement process. Like a clear strategy and polices for TQM, that must be integrate with the others strategies and polices of the organization, building products and service with quality since the design, and pursuing standardization, systematization and simplification of work instructions, procedures and systems.

Tools and techniques: one of the most important factors, the organization should use a series of tools and techniques to facilitate improvement and be integrated to the routine operations of the business.

Education and training: must to be provide for all the employees education and training to ensure the understanding of quality management concepts and to guarantee that they have the right competences.

Involvement: all the people of the organization should be committed with the principles of TQM. Also they must know what is expect from them, so them can do the work correctly.

Teamwork: the employees must know how to work as a team, and need to be encouraged to work like that, so the company will gain commitment and participating of people throughout the organization. Also the company should recognize positive performance to maximizing the out-put and value of individuals.

Measurement and feedback: the organization needs measure yours results, internal and external, to know how the things are going. Also provide feedback to the employees have knowledge of his and company performance. From this measurement and feedback, action plans should be developed.

Ensuring the continuous improvement culture: the quality ensure must be integrated into all process of organization. An organizational culture need to be develop to ensure everyone participation to guarantee the continuous improvement.

(38) Still defines the costumer focused as a key element. According to it, the organization should understand the needs of their customer, because it depends of him.

3.4.3 Tools and techniques:

3.5 Lean Manufacturing

One of the biggest

3.6 Six Sigma

3.5.1 Concept

Motorola develop six sigma to reduce losses, improving performance of process.

The aim of six sigma is created value through quality improvement.

3.7 Statistical Process Control (SPC)

3.7.1 General overview

Generally Statistical Process Control (SPC) means control the process using statistical methods (LB). SPC defines the limits of variability of what is produce in the process with the given methods, so it helps to identify the problems in the process and differentiated them from the inherent fluctuation of the process. (LAC)

According to (LAC) the SPC can be divided in three stages:

Collection: collect sufficient data of the process, to calculate the limits of variability;

Control: calculate the limits and analyze the results;

Capability: adjust the process, removing the variation causes and defining the capability of the process.

In the application field, SPC is used for four main reasons (LB):

To achieve process stability;

To understand how the process can be improve;

To measure the process performance;

To provide information for the management decision-making process.

It is important to know that the SPC is not a solve problems technique. It is a tool that presents the real situation of the process, and only confirms the existence of a problem (LB).

3.8 Brazilian Business Excellence Model (BEM)

MEG (Modelo de Excelencia em Gestão), as known in Brazil, is a several of excellence fundaments based in concepts used by the companies with the higher level of performance. The excellence fundaments represents standards worldwide recognized and the manly references for them are Baldrige National Quality Program, European Foundation for Quality Management and International Organization for Standardization (39). According to (39) the fundamentals of excellence are.

Systemic thinking: understanding the interdependence between the several components of an organization, as well between the organization and the external environmental.

Organizational learning: increase the level of knowledge in the organization, through perception, reflection, evaluation and sharing experiences.

Innovative culture: the work environmental should be favorable to creativity and to implementation of new ideas that can generate competitive to the organization.

Leadership and constancy of purpose: work in a way that motivate and inspire the employees. Aiming develop the excellence culture.

Orientation by process and information: the company should know of the activities that add value to the product, and the decision making must be based in the performance of these processes, beyond include the identified risks.

Future vision: Understanding of the factors that affect the organization, internally and externally.

Visão de futuro Compreensão dos fatores que afetam a organização, seu ecossistema e o ambiente externo no curto

e no longo prazo, visando a sua perenização.

3.9 Chapter summary and conclusion

Chapter 4

Research methodology and approach

4.1 Introduction

4.2 Type of research

4.3 Research methodology

4.4 Chapter summary and conclusions

Chapter 4: Research methodology and approach

4.1 Introduction .........................................................................................45

4.2 Type of research .................................................................................45

4.3 Research methodology .......................................................................46

4.3.1 Research’s practical approach ............................................................48

4.3.2 Methods for data collection .................................................................49

4.3.3 Methods for data analysis ...................................................................50

4.4 Chapter summary and conclusions .....................................................50