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Quality Management Techniques and Tools

Quality Management Techniques and Tools at Caltex Oil Company

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Introduction

Caltex is ranked among the biggest players in the oil industry. The company enjoys a global image and positive public relations, coupled with worldwide distribution and stable earnings. Currently, Caltex operates in more than 60 countries around Asia-Pacific, the Middle East, and parts of Southern Africa. The history of Caltex is traced back to 1963 under the name California Oil Company. Initially, the company’s structure was a joint venture between the Texas Company, which later acquired Texaco as it progressed. The company finally acquired the name Caltex in 1968. Caltex remains on an upward graph since its inception. The success of the company is highly based on management effectiveness. The difference between successful and failed organizations is squarely dependent on the quality management tools deployed. Caltex management is anchored by a highly integrated management system that incorporates all sections of the organization. The oil industry like any other industry faces high competition and dynamism. The modern setup in the market calls for nothing short of quality management.

Caltex Quality Tools and Techniques

Caltex management is guided by quality tools and policies. Caltex is geared towards the achievement of consistent manufacture and supply of high-quality oil products and services across the globe to meet customer needs. The aim of Caltex as stated above requires commitment on the part of the top management of Caltex. To achieve the quality standards, according to the company policy, Caltex, as one of the leading market players, has no option but respect and comply with its products’ quality and commitments. This point is likely achievable under the production and supply of products considered to be conforming to the relevant specifications. Caltex products must also attain the level of being well-placed, fit the purpose of production and meet contractual and regulatory requirements (Basu, 2013). Caltex products and services are used globally; therefore, this implies that Caltex quality tools must adopt international elements. International elements will entail a good understanding of every market deeply from competition to customer requirements. The trend in Caltex share prices above is a communication of quality management systems.

Individual Product Data

Quality Techniques

Caltex’s top management has maintained effective quality techniques for a long time, which is credited for its profitable operation. The methods deployed by Caltex describe the policies the company operates under to achieve success. Caltex management speaks the language of the market which requires quality systems. Based on the conducted study, quality principles applied by Caltex’s top management captures areas of:

  • High focus on its customers;
  • Operational excellence achievement;
  • Seeking relevant certification;
  • Continual audit;
  • Integration of quality objectives;
  • Holding employees accountable.

High Focus on Customers

Every business around the globe purely exists because of customers’ need/want. Caltex will be closed if it lacks clients or if its customer grows low. Taking into consideration the vital roles of customers in anchoring business organizations, Caltex’s first and most valuable quality technique is full focus on its customers. Caltex, being ranked as a big player in the oil market, is fully geared towards ensuring that all its products and services attain the class of meeting or exceeding the market needs of its customers. Achieving this implies that the organization must stay up to date with market information. Obtaining this updated customer information calls for high powered research and development team (Mukherjee, 2016). The team must remain on the ground, to take note of changes in the market as well as what others provide an offer in the market. In summary, the Caltex technique under this point is high customer-based innovation. Caltex’s range of products and services is produced and improved by customer response. Caltex maintains a focus on customers to obtain repeat sales and create a loyalty network.
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Operational Excellence Achievement

The modern business environment is dynamic and guided by technological advancement. Competition in the oil industry is becoming stiff. The level of competition and dynamism in the market does not provide room for faults in the operational system. The analysis of Caltex operational system pointed out good development of strategies, implementation, and constant improvement of efficient management systems. The operational excellence at Caltex takes into account the integration of quality, environment as well as health and safety activities. Caltex enjoys operational excellence as a technique deployed to achieve success. Operational excellence as a tool of quality management is anchored on integration (Dale, Bamford, & Wiele, 2016). All the departments of Caltex work in unison towards collective goals and objectives.

Seeking Relevant Certification

Business operations are regulated by authorities. For a long time, authorities and different regulation institutions were perceived to mean complying with both local and international laws for smooth operation. In the case of Caltex, the company has proved that its focus is above complying with authorities but attaining quality certifications. The image created by the organization communicates the quality elements or achievement. Caltex has managed to create a quality image by seeking relevant certification of its management in all the appropriate areas or sections. Caltex management systems enjoy great achievements about international standards. It is among the few companies accredited with international quality standards ISO 9001:2008. ISO certification is a level achieved by countable organizations around the globe. The oil industry is characterized as highly competitive, hence, only ISO-certified companies fit the bill.

Continual Audit

Organization systems face different situations. The changes in the market make the system obsolete in one way or the other calling for improvement at some points of the operation. A part of the principle deployed by Caltex is achieving operational excellence. Operational excellence is attainable when the management puts all operations in check. The continual audit is the best technique deployed by Caltex to ensure that all its systems are up to date, following the market changes as well as areas calling for improvement. Caltex management maintains controls and ensures frequent reviews across all the systems. This kind of move is bound to make all the systems relevant and updated and largely contribute to the efficient operation of the organization daily.

Integration of Quality Objectives to Its Global Plans

Caltex is a big organization with a global image. This implies a high network of customers and a wide market as well. The wide market coverage requires effective techniques to ensure it is fully and efficiently served. Caltex is, therefore, bound to deploy the use of several business units across the globe. Caltex management leaves no stone unturned. Good efforts from the management ensure its business units embrace quality structures in all their business plans, therefore, the centrally set policies and objectives are met. According to Caltex management, the entire business unit operates under similar quality standards, customer requirements management, and effective operation across the globe.

Holding Employees Accountable

The daily operations of organizations depend on employee services. In this regard, high considerations are made during recruitment, work period, and training periods in some cases. This statement implies that employees form a valuable part of any organization. Caltex, being an organization that spends heavily on its employees, expects high responsibility from the employees. Holding employees accountable is part of the ways the company steers quality management. At Caltex, reporting is a vital element. A chain of command and flow of information has been instilled in the company as a way of ensuring all section report their performance periodically. Holding employees accountable at Caltex has increased accuracy and responsibility. The techniques ensure the company receives reports with minimal hustles.

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Quality Tools

Quality techniques deployed by Caltex cannot be successful without quality tools. Quality tools, in this case, provide the force needed by Caltex management to widen their market operation and get the going concern. The quality tool deployed by Caltex, in this case, covers such areas as:

High Powered Research and Development

Research and development are powerful and positive resources for any organization. Caltex’s top management, as indicated before, relies on quality information obtained from research and development. Caltex conducts frequent research on its products and services to ascertain how the customer responds and what they need to be improved. Caltex research is done physically through direct customer communications, site questions, social media interviews, and engagements. Caltex management believes that the power of research is the only quality tool to keep the company up to date with market information.

Total Quality Management

The total quality management deployed by Caltex involves an integrated and comprehensive system. The TQM system is applied by the company to plan and control business functions. The integration element ensures all the elements and sections of the company operate in unison towards a common goal.

EFQM Excellence Model

The EFQM Excellence Model presents a management framework first applied by European Foundations for quality management fitting organizations of all statuses. This model or tool aims at assessing performance, integrating, and ensuring existing tools are aligned. The system also aligns tools, procedures, and processes. The end product of this method is to obtain uniformity, consistency, and a good operational network.

Improvement Areas

Caltex has international status; therefore, this implies that the company must maintain an upward trend. Despite the tremendous growth enjoyed by the company, Caltex must improve in certain areas to maintain its market leadership. The areas pointed out for improvement revolve around:

  • Creating direct links with customers;
  • Improving cost quality management;
  • Providing frequent employee training.

Caltex operates in a highly competitive market. The top management of the organization must ensure run supreme. Maintaining quality calls for nothing but high corporation from all sectors of the company. Operations employees generally must stick to the set objectives, mission, and vision of the organization.

Conclusion

Quality management is the right tool to help organizations match the modern business environment condition. Caltex has embraced total quality management, applying the right tools and techniques, and boosting efficiency in both product and service delivery. Top management of any organization must take note of the vital role of quality management and apply them just like Caltex. The result of the quality management system is evident in encouraging constant sales and creating much-yearned customer loyalty.

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