Question

Al-Ain Electronics Company is a large manufacturer of electronics and home appliances in the UAE. Over the past few years, Al Ain Electronics has watched overseas competitors take away market share with products that are priced lower and that at the same time, have developed a reputation for better reliability. The company is not in a dangerous position yet, but the Board of Directors wants to see a concerted effort to improve the company's competitive posture. Among the senior management, two factions have developed. One, led by the vice president of operations, is pressing the CEO to implement total quality management. After all, the aim of TQM is to improve competitiveness, and that is just what is needed. On the other hand, the manufacturing vice president and the director of quality assurance are making the case for ISO 9000:2000.

Answer the following questions based on the above case:

Question-1: In your opinion which approach is more appropriate in these circumstances? Why?

Question-2 Provide your arguments "for" and "against" the implementation of each approach

Answer 1

Solution 1: Going ahead with ISO 9000:2000 is the best option. TQM as a concept is obsolete. Reasons to opt for ISO: ISO has a global adoption, its needed to compete against the global competetors. Also, while setting the quality parameters in place, most importantly marketing and sales has a great role to identify the decrease in sales and loosing to competition, and build a startegy to grab the market share. The marketing and sales team should work in tandem with the quality, production and finance team to bring out the best product line to defend the competition, Also, startegize an aggressive plan to regain the share.

Solution 2: As mentioned in the solution 1: "Going ahead with ISO 9000:2000 is the best option. TQM as a concept is obsolete. Reasons to opt for ISO: ISO has a global adoption, its needed to compete against the global competetors."

The ISO 9000 series are based on seven quality management principles (QMP)

The seven quality management principles are:

• QMP 1 – Customer focus
• QMP 2 – Leadership
• QMP 3 – Engagement of people
• QMP 4 – Process approach
• QMP 5 – Improvement
• QMP 6 – Evidence-based decision making
• QMP 7 – Relationship management

Source: https://en.wikipedia.org/wiki/ISO_9000

To conclude, AL-Ain should go ahead for ISO, as it has time and it should re-align its plan and bring up robust marketing & sales startegy to stand against the competition and re estabish itself as a quality player.