Businesses; no matter the industry, be it food; automobile, clothing or others product as well service sectors had their own quality management system. In the early 80’s, business organizations had already began to build their quality management system based upon the principles of Total Quality Management.
A less known but very successful quality management system, Achieving Competitive Excellence (ACE) operating system is one of the successfully evolved systems. This system was developed and is practiced by United Technologies Corporation (UTC) until today. ACE primary uses the principles of productivity improvement and waste reduction. The fundamental of ACE is to ...view middle of the document...
Many attempts have been made over the years by companies and organization; be it private or public at developing, deploying, and implementing a sustaining quality management system by taking its assessment and assurance into account. Throughout those attempts, there are few improvement methods that had been successfully resulted and implemented throughout business industry around the world until today. Example of these method are the Six Sigma, lean manufacturing, the Achieving Competitive Excellence and many more. In this paper, the focused will be on the productivity improvement at the United Technology Corporation using the Achieving Competitive Excellence or ACE; a program aiming at improving productivity through quality management system. ACE was developed in the 1990’s by United Technology Corporation, being labelled in their website which is still used today throughout the company.
The intent of the paper is to review and analysis of how big is the impact of the ACE program on UTC‘s performances. In the course of doing so, it is the goal to gain an insight of the importance of quality management in any of fundamental core business.
According to Oxford dictionary, quality management is defined as “a system of management based on the principle that every member of staff must be committed to maintaining high standards of work in every aspect of a company’s operations” while productivity is defined as “the state or quality of producing something”.
The relationship between quality and productivity are known to be directly related. One of the key towards productivity improvement in any industrial practices has always been quality management in that business. Business organization committed to quality management practices has always been able to improve both their profitability and customer satisfaction.
The research on quality management has been identified multitudes across the world nowadays. Several studies across the globe have succeeded in providing evidence that quality management has a positive impact on any businesses productivity. Agus & Hassan (2001) found that quality training and top management commitment play vital roles in quality management implementation in manufacturing industries. The studies point out the significant and impact of the quality management on competitive advantage and customer satisfaction, which in turn, significantly improves the financial performance of these companies. In addition to that, Deming (1986) also pointed out that improvements in quality do create corresponding improvements in productivity by reducing costs, errors, rework, and delay.
The purpose of this paper is to present the effect of quality management towards productivity improvement and profitability of the United Technologies Corporation when the company first implemented Achieve Competitive Excellence program.
UNITED TECHNOLOGIES CORPORATION & ACHIEVE COMPETITIVE EXCELLENCE – HISTORY...