“Solution” Eurasia International: Total Quality Management in the Shipping Industry

CASE STUDY SOLUTION EURASIA external TOTAL QUALITY MANAGEMENT IN THE SHIPPING INDUSTRY scheme This Case gives an account of how a channel management company was equal to garb itself apart from competitors and from its clients own in-house technical and crew-management capabilities by embracing a culture of continuous correctment and by implementing Total fictitious character concern systems. The exaltation assiduity was not al ace in having regulation obligate upon it, but its distinctly international nature made ship tutors, as cost-cutting practitioners, particularly open to criticism.A ship management companys truly existence hinged upon its ability to convince ship-owners that it would preserve their valuable assets and maximize revenue-earning emf demonstrating that its collective skills were superior and more cost-effective. As a result, an effective calibre assurance system that continuously improved the organizations merciful and care systems could enhance effi ciency and also start a epoch-making marketing impact. ANALYSIS 1. With the changes taking place in the shipping industry, what were the ship-owners motivations for outsourcing watercraft and crew management to third-party ship managers?With the rise in outsourcing arrangements, management structures open become more explicit. In the highly competitive international shipping industry, ship-owners were continually seeking ways to persist their costs down and their business performance ahead of the competition. As a result, ship-owners were taking a drab look at the option of outsourcing crew and technical management functions as a way of lowering costs and keeping pace with industry best practices.By concentrating on the sales and marketing function, ship-owners could hive off trading operations activities to more suitable providers who were knowledgeable about the regulatory climate and on the cutting edge of ship management (in bourns of infrastructure, expertise and organi zational capabilities). 2. How was Eurasia able to differentiate itself from the competition? Eurasia can be said to take a shit schooln a boutique approach inwardly its industry, and to have upheld a relentless commitment to serving its customers interests.Since it was inclined to remain a boutique, Eurasia was awake about pursuing growth but was still willing to take risks in its company philosophy and business model. As a division of the Schulte assemblage of companies, it was able to offer the advantages of economies of scale, yet was also able to tailor its service delivery to suit different customers needs. By contrast, many of its larger competitors had gone by mergers and acquisitions to remain economically viable, and thus risked losing their personal call forth with the customer.To offer even closer proximity to its clients, Eurasia embarked on a five-year curriculum to expand its operations, and established a network of regional offices that could operate in t he same region and time zone as the customer. 3. What is Total Quality Management (TQM), and why was it an appropriate organizational change mechanism for Eurasia? The term TQM was widely used to describe a steering on the involvement of quality within an organization. Early discussions of TQM hinged around the Deming Management Method and statistical process control techniques, particularly in connection with manufacturing environments.The works of ulterior TQM experts such as Philip Crosby have been less statistically and technically point and more people-oriented. Regardless, TQM is built on core mandates to continually improve systems and processes, and to focus the people and imagerys of the organization to delivering customer encourage as ultimately, value exists plainly in the eyes of the customer. Broadly speaking, the TQM philosophy is founded on several conceptual principles * A definition of quality in terms of collide withing the customers requirements.Anyone p roducing work output may be considered a supplier, piece any party receiving work inputs constitutes a customer. The customer relationship is held in esteem and a suppliers responsibility is to understand and meet the customers requirements. * Quality is achieved by undertaking the castigate operation the first and every time. * The organization requires a proactive approach to look into that quality is achieved, thus a system of prevention must be coupled with a reactive system of inspection. * Quality must be continually measured a measurement framework can define whether organizational resources are being deployed optimally.Eurasias President, Rajaish Bajpaee, recognized that a changing regulatory climate, the global dispersal of his industry and intensifying competition among ship managers meant a robust quality assurance system was needed to keep his organization focused on customer value. With complicating factors on so many fronts the global distribution of labor, vari ety in the types of vessels under management, maritime regulations, procural and logistics, risk and liability encouraging cross-functional collaboration would increase the flow of information, improve problem-solving capabilities and enhance customer focus.The very process of developing such a framework could offer invaluable insights into the organizations strengths, weaknesses and position within the industry. Moreover, an efficient quality assurance system could be the ship managers best defence against criticism, forced compliance and over-regulation. Most newfangled regulation came about as a reaction to perceived deficiencies by taking a proactive stance, ship managers could endorse appropriate regulations kind of than waiting for legislation to be mandated. 4.How was managements commitment important to the success of Eurasias TQM effort? This is a tremendous human resource challenge to ensure that people have a certain set of values, because it is the values which moldi ng perceptions and perceptions mould attitudes. Attitudes mould behaviour behaviour moulds actions and actions mould results. So if we want consistencya predictable result, so we have to start from the bottom of the chain that is the values, and if we can get the values right in each one of our floating factorys staff, then we can expect a predictable result. Rajaish Bajpaee, President & Group Managing Director, Eurasia International) A lack of management involvement is often cited as one of the leading reasons why TQM efforts fail. Management must do more than simply instruct the rest of the presidency to implement quality control mechanisms. The get along of time a senior manager dedicates to quality issues is readily notice by employees and reflects the organisations actual priorities.As Eurasias President, Rajaish Bajpaee was tasked with the responsibility of adding value to key constituencies, and he held the firm belief that customers ultimately determined the organisa tions fate. In leading Eurasias TQM effort, Bajpaee was intimately involved in defining the need for change and developing new visions and the frameworks needed to cite commitment. Leadership entails the ability to articulate those visions and oversee the process of evolution through which the organisation learns new ways and methods.