All entries for November 2009

November 29, 2009

viewpoints from PMA (2)

Partnership relationship is not a new topic today. Many companies, even my uncle's supermarket (it's a big one XD) are using this reationship. It's true that partnership relationshop can make a company have steady development, win-win outcome with suppliers and have a bright future.

In the framework of partnership relationship is compulsory. As the framework involves almost all the departments of a company, if the company wants to be an excellence in the industry, partnership relationship should be useds under this framework. With this relationship, the more customers it can satisfy, the more time it can exist and the more power of effect it has. Thus a company should carefully choose the partners, work cooperatively with the partners and finally work with partners as 'we' but not' I'.

However, i have some ideas that challenge this relationship, though i cant find anything in literature.

1. The high risk of this relationship. As i mention in my PMA, money is one of the most important things in this relationship. As the companies need to choose, develop and work with the partners. If it fails in some processes, the money spent is wasted. Whats  more, if ur partners have some problems in money or some other issues, will u help them? Since ur help will make u into a trap. As setting up partnership relationship is time and money consuming, the risk is quite high.

2. The safty. in this relationship, both sides shoud shared the data, information, people wiht the partners. it's dangerous that if ur partners betray u. if they provide ur data to ur competitor, u r the mouse in front of a cat. Thus safty is what i think important.

3. is it really useful? this is from my uncle's experience. his company has parnership relationship with many suppliers all over the country. However, some of them, cant contribute to the company but the company cant live without they. In this summer when i was back home, my uncle told me more and more suppliers dont want to have this relationship because they want cash paid in a very short time. Also, customers are not satisfied because of the lacks of some products. Therefore my uncle now is considering only have partnership relationship with COca Cola, some big dealers of foods and some electronic product dealers. 'We won't cooperate with Pepsi and the dealers of agriculture goods' says my uncle 'they cant do what we want'.

During my research for this PMA, i really find many positive comments on this relationship (most of them). However, if we think about it in real life, in the EFQM framwork, can it really contribute to the company, customer and society? I m not criticising this relationship, but it might not be that useful.

to be continued...

November 28, 2009

viewpoints from PMA

My PMA is nearly finished. Here I'd like to say what I learn from this assignment.

Price-based relationship is harmful for long term development.

  This relationship can bring low price to a company and it s still used by many companies. However, it is not good for long term development for both sides. Just like u buying a very cheap shampoo in Wilkinson, find the shampoo, pick it up, and pay for it. During this process u dont have any interaction with the shop. The same as price based relationship, u pre pay for the order, get the goods, pay for the remaining money, then finish. Such relationship cannot make both sides work together and have long term development. Whats more, this 'low price' is not low in some situation. Just like u buying things on eBay, u have to pay for a high delivery fees.Sometimes, a company might have pay for extra fees to get what it wants. In addition, the quality is not ensured to be good. Just like the cheap shampoo from Wilkinson, it is cheap, but the ingredients  decide the quality is not that good. The same in this relationship. Sometime u can get low price goods, but they dont have good quality. So it is a risk that those cheap but bad quality materials can make ur production process f**ked up. So, price based relationship is not so ideal for a company.

  However, it is useful in some levels. For some small companies whcih dont have that much resources to achieve partnership, price based can reduce the risk of failed partnership. What is more, for some partnership relationship companies, when they want to do business with some suppliers that are not important, this relationship can be used because it s not wasting time to prepare the construction of partnership relation

to be continued...

November 11, 2009

6sigma vs TQM

The similarity of TQM and Six Sigma:

1. They focused on quality
2. They improve a company¡¯s position in the market
3. They involve employees to upgrade the company

However, TQM has some insufficiencies:

1. TQM is an instruction rather than a process or a tool. It has very broad difinitions and guidelines for managers to think of some tools to realise it. As it is a concept, TQM needs a company to introduce some applications like ISO, to make it work.

2. TQM emphasise on maintaining existing quality and stops working when the products meet the quality. However, it doesnt tell the managers to make further improvements neither tells what can be have more improvements.

Therefore, as SIX SIGMA has some better characteristics, we can say 6 sigma is an improvement of TQM:

1. 6 Sigma sees the whole picture. Unlike TQM, 6sigma sees all departments in a company and tells the employees to be concerned on quality.

2. 6sigma gives sustainable improvements. Unlike TQM, which only asks a company to stay in existing standard, 6sigma tells how to make deeper improvements in the next stage and integrates the company¡¯s goals to hellp the managers to the right direction.

3. 6sigma asks for less costs and less defects, TQM seeks existing standard.

Thats why, 6sigma is an improvement of TQM

November 2009

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