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Strategic Quality and System Management in Damro

Paper Type: Free Essay Subject: Marketing
Wordcount: 4525 words Published: 16th Jan 2018

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This report critically evaluating the strategic objectives, policies and practices standards of quality and consistency of products and services of Damro a SirlankanFurniture Company. The company has existing audit practices and makes recommendations for future action. Research Methods included: a brief overview of the industry, analysis of internal organization documents, interviews, focus groups with key stakeholders, short standard quality system and provide literature on comparative analysis similar organizations. Various theories as a model and Pareto value chain Analysis was used to clarify the process and quality inspection. And finally, clear objectives consistent with overall strategic business goals, senior management responsibility for quality management systems and evidence consistency between strategic objectives and focus as a company exploring the quality of the current context to identify and it was based on recommendations and action plan audit quality.

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Operational management is part of the company’s global strategy. Operation The management ensures that the product should be made in accordance with customer requirement, based on market demand. It would probably be the marketing department communicates their needs to the operating divisions, which Demand. Effectiveness is available and the effectiveness of the two important success of the operation. Right from manufacturing high-speed Right to output delivery.


DEFINE operation management

According to Stevenson (2002) Operations Management is to manage this part of the organization responsible for the production of goods and / or services. Operations Management is part of an organization responsible for business planning and coordinating the use of organizational resources to convert inputs into outputs. Operations are a function of the three main business organizations, the other two marketing and finance. Operating function is present in both product and service oriented focus on organizations. Operations involve the design decisions and operational decisions decisions. Design decisions related to capacity planning, product design, design process, layout of plant, machinery and selected locations. Operating decisions relating to quality assurance, scheduling, inventory management and project management.

The concept of operation management

Operations Management focuses on the production processes and management distribution of products and services. Included in operating activities often product creation, development, production and distribution. It covers all operations within the organization. Related activities include managing purchasing, inventory control, quality control, warehousing, logistics and assessment. The nature of how the management operations in organization depends largely on the nature of the goods or services organization, such as retail, manufacturing, wholesale, etc. In operations management and efficiency are emphasized Process efficiency. Efficiency is achieved when processes at the lowest possible cost. The efficiency of the legal process creates the most value for the company. In addition, the operations Depends not only on decisions made by the management. If the management decisions, comes the concept of ethics Managers who fail Systems to provide leadership and facilitate the incorporation of ethical share responsibility with those who knowingly receive corporate mistakes. Executives who ignore ethics run the risk of personal responsibility and enterprise.

Damro Introduction:

Damrois a Sirlankan, company that own their own manufacturing facility. Mainly The product portfolio includes furniture, bedding, furniture, other plastic chairs and furniture for home and office. It is the best placefor wooden furniture. The company has developed its activities in India and other Parties from the Asian region. Damro among the most important furniture in the world producers offering a wide range of modern furniture and traditional. Since Damro in 1987, she had early success and extended to more than 80 showrooms across the world who now have 40 showrooms Island field. Damro success is past its ability to produce high quality

furniture at affordable prices with exceptional customer service. Damro is so able to sell directly to you, then cut in the middle man. . Total number of people were working 1500.Damro

recognized by manufacturing and marketing company in the best Sir Lanka, Damro Company to carry out other competitors, such as cost of product itself too smaller suppliers of other products, but now all of a kind where the supplier Damro One of the good society

Why operation management is needed

Effective use of all resources, such raw materials consisting primarily of plastic, plastic timber

for furniture. Prudent use of cars Machine must be used for more than 10 years. effective services Rental cars are produced and require special. Cost & Repairs breakdown of machinery costs extra money for the company. Indeed, growth Total cost for the company, which reduces the public interest. Meanwhile, combine to create employment and daemon.

Operation management of Damro and its importance to achieve goal

Manufacture of furniture according to customer needs. Production Programs should be made to maintain efficiency. Operation The management ensures that the best raw materials and suppliers of outsourcing best Selected on the basis of selection. So the final product to ensure quality each time, the operational highlight of which could further improve the production. For example, with appropriate coordination between marketing and operations- It is important. Most times, the operation could happen with new splitting products to the hospital three elements to existing elements products. Actually increases the operational management Avenue investment in production.

Damro operations management

Source www.cbpa.ewe.com

Could achieve economies scale . Could significantly reduce costs through mass production based on the claim. Damro plastic chair has a higher demand. The company

economies of scale achieved through the product range. What did May efficient operation department? In fact, economies of scale carry out are: –

* Cost reduction

* Increased revenue

* Reduced investment

* You can improve innovation

Input –

Processing –

Process Layout


Management Information System


If the company makes good quality product, which directly influence weaker corporate policies and the market, so each The Company must be high quality product. Impact on their businessmanagement system, even if the team management and their policies are good All drugs also affect this system. Customers also another important part of society, and quality management system important for the organization to continuously improve the effectiveness efficiency and performance. (Department of Trade and Industry, 2006).

Processing Resources


* Treatment of materials * Information processing


Product Release:

Furniture designed for market requirements, various designs Furniture Color

The important role of CEO to manage the operation accept the design, planning, control, performance improvement, and operation strategy. To include indirect interaction with other managers, which have an impact on operations? For example, marketing, finance, accounting, and engineering personnel.

Making a decision is an important role of operational manager-

The decision related to

1. Production process of goods and services

2. Quality of the goods or services

3. Amount of goods or services (operations capacity)

4. Material stocks (inventories) are required for goods or services

5. Human Resource Management


Total Quality Management

Progress we are being used in many organizations is labeled Total Quality Management (TQM). It is this approach to ensure that the organization functions with a commitment tocontinual improvement of quality and meeting consumer needs. With any change there will always count The slow road bumps can help your company grow employee morale, production, profit and general positive environment do business. The intense pressure on the market pressure Wall supports business and to compete globally for new ideas

explored. The objective of the TQM program to increase efficiency organization. During the era of decline and restructuring, many The U.S. companies to determine who should

learn to manage effectively. Management is currently running on older systems as well as workers who use more sick days and abuse of company production process.


Source www.erawsoft.com

Objectives include:

It is directly implied gross profit of the production cost. Effective Source & plastic goods especially effective, quality furniture may environmentally friendly substances, such as wood used for furniture. But that only wood from trees replanted. The materials supplied as part of the management and operation. Selection of suppliers based on quality, consistency of supply, and ethically it is very important to achieving business objectives, already established. From the supply side quality chain and to work as a result of achieving company objectives.

Creating a culture of innovation, better management of human resources to achieve results

innovation in the enterprise. Employees should be encouraged to propose new ideas whenever possible. Therefore, developing innovative products that could be achieved as a result

business objectives.

But time and only if, simultaneously, to plan work schedules also important. This will ensure less waste, reduce inventory furniture, better accuracy and the resources used at the right time.

While the company could use more income than is appropriate traditional method.

Coordination between departments is essential for success objectives. Most of the marketing department to identify exactly what customer needs? Therefore, the furniture should be drawn up dealing with the marketing department. Otherwise, offer toys department has developed, which rejected the marketing department. While regular communication between other departments such as marketing, sales are important, He reviews the best outcome to change. Cross training is also important when it comes to achieving corporate objectives,

Employees can work in marketing operations for two months understand customer needs when it comes to furniture types needs of various sectors such as hotels, hospitals and other offices

Efficiency is important for successful application organization. The operational objectives are always based on organizational goals. Qualified Persons Employees of important furniture design company. Creativity is important for people to come out with innovative Products successful sales and marketing people to be important for better terms company. New machines are machines used to find us Innovative products Machines it is important that the production company focused.

System at present

Good marketing information system to show that new products meet or furniture They should reach out to different markets. Customer information is competitive necessary to change or modify products and attract new customers The company’s total capacity to increase production or profit, including plant and raw materials in our laboratory. The Business Process coordinated series of activities and the activities people and equipment to assist with the organizational structure objectives. Resources used in polycarbonate plastic DAMRO also use PVC (polyvinyl

Chloride), and other resources used plant and machinery, human resources and so forth. Damro is very careful in choosing materials, because The integrity, quality and safety an integral part of the furniture its commitment to customers. The human resources of more than 1,500 people work in both countries. Strictly by employees and effective skills necessary for the proper functioning of business. Thus, employees are required for work performance process.


Quality control system:

Quality control as part of quality management undertaken to determine the quality requirements.

Quality control instruments:

1. Flowcharts-curve analysis of regular production of furniture, significant turnover. Indeed, the correlation was selling new products could grow by him. Meanwhile, it gives mention that at the time, increase sales? Is this because Examination of the season? So many different issues could be addressed by using flowcharts. At the same time, the diagrams can be used to understand the production and effectiveness, Defective product as well. A good analysis of debit cards could result in reduced defect rates and increase production.

2. Run chart

3. Scatter Diagram- could use a diagram to understand that in the period furniture to move quickly and the best turnover. Indeed, Could understand the rationale. quality system audit / practice management and quality control Quality control and quality assurance

The quality control system of quality activities to access products or services from a customer perspective. Quality control system in general inspection and testing using rapid technical. A quality assurance management system designed to monitor activities all measures to prevent quality problems and to ensure that products are secure reaches the client.

Benefits of Quality Management System

To encourage active and effective leadership

Give and empower staff

Staff clearly understand their responsibility

ensure consistency

Focus on problem

Quality audit

Quality should be applied to any organization. quality operation The construction quality and brand marketing, merchandising ethical, Customer service ethic is important for the overall quality Company. Periodic, independent and documented assessment and verification

activities, records, processes, and other elements of quality system determine compliance with the requirements of quality standard, such as ISO 9000. If they can successfully implement its publication and may lead to revocation of certificate of qualification. Also called the line

evaluation or audit of the quality system Internal Audit: for all operations internal discussion here. functions of marketing, sales, operational efficiency and effectiveness measured. One of the most important objectives of internal audit performance effectiveness of the organization. Quality management system to direct and quality control organization. It is essential for organization to implement effective quality management. How to check value Nonconformities identify and correct, with some products defect.eg Furniture is a mix of different colors associated with the original version. So, before they should be sent to the retail agent to take out of stock. These products must be distributed non-compliant Market Place. Damro would compromise the image. Identify opportunities to improve and enhance procedures bizarre .- The company would increase Damro furniture standards. Even when costs rose to open more sales after a certain time. So this must be regarded as long term investment.

Value added include

* Improved consistency and less variation

* Reduction in errors, rework, cycle time and leg

ISO 9000

Damro products is the International Standards Organisation (ISO) 9000 systems, production standards were Damro

Client Team

low pay

Average working

less value for money

Client / personal dissatisfaction

No team

in service deadline

Low quality

May durable goods


Damro review existing standards, and the opportunity to integrate different needs in product quality and safety procedure with Global Manufacturing, and lunch products in Asia and all other countries around the world.

Total Quality Management (TQM)

Total Quality Management is a systematic approach to planning and proven management activities. The objective of TQM is to ensure that each activity contribute to achieving corporate objectives, and it is effectively. The basic philosophy of TQM to “do the right things right

In the first place. “

The importance of quality management system in DAMRO

Total quality must be considered in any business. Security Guard As CEO must make. Therefore, each organization must disclose employee buy-in quality that actually enhances the overall business society. To pass by today’s competitive market your company must provide products

and services according to customer requirements and minimum cost. To do this, the company must understand its role in the market Instead, arrange to play this role. And ensure that

Dedicated commitment to serve the customer first. To errors, all staff members to give priority to quality manufactured. Not detect and correct errors A good way, because this approach is costly and not necessary to ensure that quality.

SMC Damro designed based on International Organization Standardization (ISO) 9000. A quality system consultant Damro SMC and also seek validation by reference to practices and learn from others with great quality control systems.


Strategic quality change in organization

Definition of the objectives set by top management that guide how you can meet or move toward the goal of the grand vision and mission. Most of the strategic objectives and maximize return for business. Objectives of the organization must both be included organization’s current situation and where the organization wants to go to the objective is “what you want to achieve. The strategy for direction objectives.

Quality change in organization

Source www.hbft.com

The manager must properly plan for staff training. It may be know the style and task procedures. If they are good ant training output certainly be false. Staff training and good Communication should have top to bottom. Monitoring and evaluation is also correct Must be between the team down at the bottom. Otherwise, they are not get quality production.

The value chain model:

Porter value chain model that helps to analyze specific commercial activities through which companies can create value, and competitiveness advantage.

THE basic of porter value chain model

Source www.themanager.org


Integrated logistics:

This is the first step in the Porter model, including the value chain acquisition, storage, transportation, testing and information systems product, service or product.


Procurement refers to the handling of raw materials or semi- from different suppliers in different countries and get ready to prepare or storage. Damro team perfectly well equipped for the reception furniture goods.


Damro have their own houses well-equipped for storing materials and semi-finished products.

Purchases of goods may be received and stored for a long time without deteriorating

quality and freshness.


Damro Many modern vehicles to transport goods to and from deposit, So fast and reliable transport company. Give delivery within two days of delivery.


Another feature is that the company should have, as people Srilanka is more conscious of quality in order to verify the quality is very essential.Damro a team of quality control checks of the goods properly and take action where necessary.

Information System:

This is the system of internal communication among staff relating to land acquisition, receipt, storage, analysis and reporting standard goods. Damro is fast and reliable.


She steps in the value chain where the model inputs converted to other retirement package. The process includes the following

Maintenance and equipment:

Machine is a very important factor in any organization that accelerates work. At this stage of processing raw materials into finished products car. Damro is well equipped with modern machinery in place for the production mechanical engineers to solve the problem if the machine. So Faster service can be done without compromising on production activities.



S1-market leader in Sri Lanka

S2 best qualified technical staff

S3-market penetration in India


1-term needs time to introduce new products

2-team is not continuous culture


1-marker spot in other countries like Europe

2 people are most concerned about lifestyle furniture’s user-friendly changes

3-best economic development in Sri Lanka, after post-war

4-ability to receive orders online

Threat: –


Limit use of plastic-


T3-tax policies and rising costs for raw plastic materials

Strategy Forms

There are certainly have some threat but damro can overcome those by using the SWOT

S1, S2, which used to build a competitive advantage Opportunities may O2, can be compete and overcome T1by force S1, S2 and O2 can be achieved .

Successful operational objective to achieve organizational goals

1. To be the market leader in the furniture industry and keep up to 60% market share in the furniture industry in 2011.


2. Increase of 10% gross margin by reducing waste production efficiency and plant growth in 2011

3. To produce environmentally friendly furniture market in Europe and America, interest $ 2 million in sales in the product line

4. Increase the profitability of the portfolio and an increase of 15% 2011

5 May-penetrate the Indian market with local products Furniture quality in mind. Maybe create a factory in India to reduce logistics costs and cost of the tax on exports.

6. to 10% market share in the region from India by 2012

7. To be most business value through corporate social responsibility quality furniture for the people of Sri Lanka.

Damro objectives

Every business decision has a direct impact on the organization objectives. Purpose of the organization is important because Objectives are ongoing end purpose that can be achieved in the long term to ensure to achievement of the goals .

The objectives:

Increase productivity to reduce waste by 13% by 2012

Increased profitability by 15%, adding new brands in 2012.

Reduce staff turnover by 2% to 0.5% in two years

To achieve these objectives, the company must meet basic culture of total quality requirements.

This is coming very much to focus on:

It should reach sustainability in the furniture line

Plastics are used in organic

Quality of product marketing,

The development of products based on market needs


The implications of proposed changes in the organization

Any change in the organization to be affected by internal and external forces. Internal forces are primarily in response to changing process; it can change suddenly for motivating employees.

Just in time. JIT learning is also known as production or stockless production. It produces the necessary units in necessary quantities time. For example, the company has around SriLankna dealers sell Damro furniture products for customers. The extranet can establish the Damro Stocks could be the size tolerances required to produce. Otherwise waste production increased more money. If any organization the inventory can be reduced. This eliminates waste and improve productivity. Should increase revenue through stock level, improving product quality, production times and delivery time and so forth.


1 Reduce operating costs

2 More performance and flow

3 Improve the quality

4 Fast delivery

5 Create a culture of innovation

JIT create a uniform load on each point of continuous daily work production and inventory to meet demand during the end of time. Be reduced or use the site as possible, through better planning, product redesign, and process redesign. Flexible workforce, employees participate in production process. This will improve employees’ skills and give more responsibility and accountability.


For successful implementation Damro involves the following steps:

* Reduce all unnecessary stock.

* Help employees make decisions. Employee regular feedback to improve products furniture

* Maintain good relations with suppliers. Relationships with suppliers are important. Since when implementing JIT and only if they play a crucial role providers. Because if the providers not the necessary raw materials such as plastics, textiles, Damro will not be able to participate only on the concept of time and just in case. So keep good relations with suppliers and be informed on the progress of the operation is important for success.

In fact, improves short and long term profits. Meanwhile, he also encouraged employee.


Recommendations for damro to do better

* Damro needs to improve product design and supervision quality product. Internal and external audit is necessary to maintain quality.

* Quality Audits to ensure that everyone working under SMC.

* Ensure that proper application of ICP

* Provide adequate training to employees

* Take corrective measures and monitoring procedures


Corporate objectives should shareholders be happy to lead to infection to be successful in the market. Business objectives could be achieved by increasing revenue (more sales) and production efficiency. Therefore, the operating division to provide greater accountability for their work to achieve corporate objectives. Damro strategy should be how the company increase profitability by 20% over last year. But that is not healthy for Damro financial development, because it could achieve long-term development without environmental focus .Thus, ethics and ethical development of innovative products is important. Social responsibility is an important goal of the company activity, which cannot be met without creating the best environment for employees, offering ethical products for customers and society.


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