Professional Documents
Culture Documents
FSPPP
AM1104B
PAD256
INTRODUCTION TO PUBLIC SECTOR QUALITY MANAGEMENT
PREPARED BY:
PREPARED FOR:
NO TITLE PAGE
2.0 Introduction
Arguments
4.0 Conclusions 11
1.0 SUMMARY
The article is to describe how Agria Animal Insurance Sweden (Agria) has organized its
quality-related work through a sustained and systematic focus on basic elements of quality
and control, customer focus, and continuous improvement. In December 2003 Agria became
the first company ever to receive the Swedish Quality Award twice. How did Agria be able has
succeed in implementing the TQM programmes was the starting point of a research project.
One of the criteria for the success of TQM programmes is the sustainability over time
according to Edwards and Sohal (2003). Furthermore, it has been stated by Eriksson (2004) a
common proxy for a successful implementation of TQM is the reception of a quality award.
Hence, a study of this organization that already received twice awards could indicate some
factors that are characteristic of successful TQM programmes, and hence be of general interest.
Agria is a wholly owned subsidiary of the Swedish insurance company and it has
specialized in the provision of animal and crop insurance. Agria is divided into three business
areas: small pets, horses and agriculture. In addition to these areas Agria also has a process
organization. In 1998, Agria became the first Swedish insurance company to receive an ISO
9001 certification. The same year Agria participated in the Swedish Quality Award for the first
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Because of an ambition among the top management group to improve productivity in
operations and reduce operating costs per business item, they begin working with the criteria of
the Swedish Quality Award. With the criteria of the Swedish Quality Award they started with the
The first criteria is Customer Focus. Agria has developed several policies and guidelines.
One of them is the quality policy: Our customers are the ones who determine the quality of our
work. The organization is the ones who create satisfied customers. Our aim of continued
The second criteria is the Value focused leadership. The representatives of Agria’s top
management often expressed an ambition to spread certain values in the organisation. All new
employees take part in five days of training, the “Agria school”, concerning Agria’s operations
and values.
The third criteria is the Employee involvement. The important role the employees have
played in the organization’s striving for success that often highlighted by the company. Besides,
the long-term and short-term goals for the company established with involvement of all
employees. The managers at Agria have worked with creating commitment and involvement
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The fourth criteria is the Process management and control. In 2000 Agria did the first
rework of the organizational chart towards a matrix-organization and at 1995 Agria has been
working consciously with “the flow from customer demand to a satisfied customer”. In 2002 a
second reorganization was made, resulting in the organizational structure that was present during
the time of the study. All of the processes at Agria have process owners assigned to them,
accountable for the performance of their process and for evaluating, developing and improving
the process continuously on the basis of customer demands, needs and expectations. Therefore,
the process management group is responsible for giving priority of goals, resources and measures
of congruence to ensure that all employees really understand the process-based organisation, a
part of the training of new employees is set aside to meet the process owners.
The last criteria is Continuous improvement. A tool for customer orientated operational
development, to evaluate its operations on a yearly basis since 1998 as a criteria of the Swedish
Quality Award has been used by Agria to improve the company’s operations.
Agria use different methodologies such as daily operations, strategic processes, input to
improvement and development and improvements. Daily operations is where the Agria’s
Company evaluate the results to ensure that every process meets the standards required while in
the Strategic processes, the Agria’s company compare the actual processes with the planned
processes.
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Other than that, in the Input to improvement, Agria’s company ensure that every input
employee suggestions are also taken into account as other sources still contributed in making a
companies work continuously on improving the processes to meet the ever-changing state.
There are different kinds of improvement going on at Agria which is the first one is the
way. Secondly, is the technological innovation. It is when Agria is making an improvement in the
process to satisfy a known need with a new method using technologies. Thirdly, market
innovation where they were creating a new product that would satisfy in the existing processes.
Lastly is the business development, finding new areas that require new routines. The division
At Agria, they believed that by involving the employees and other parties in decision
process, the implemented period could be shortened. By having the Agria’s meeting program
leadership which bring all the employees together can avoid the criticise the work of
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There are two factors that impact the management.First, is the role of top management in
the organization. It means that the charismatics CEO is a strong driving force and has effectively
united the team as agents of change. Second, the driving force behind the quality management
implementation over a long term. It means if the some of them are not satisfied with their
In conclusion, Agria’s focusing their leadership on values and mission rather than rules
and regulations. At Agria, their goals are set and measured through the use of balanced
scorecards. It measurements are measure daily and individually. Agria has been working with
operations improvements that consist of three different levels; based on management, time and
budget. Every organization needs to find tools that can value their working at different level of
change.
(1030 words)
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2.0 INTRODUCTION
The article written by Klara Palmberg and Rickard Garvare with the title of Sustained
quality management: how to receive the Swedish quality award twice, related in the Topic 3,
In this chapter, it clearly stated that the definition of Total Quality Management (TQM), it
is a process of culture transformation through which the existing elements of the culture are
modified, replaced or strengthened with better elements which encompass values and attitudes,
While the purpose of this article is to describe how Agria Animal Insurance Sweden
(Agria) has organised its quality-related work through a sustained and systematic focus on basic
This article somehow related to the Topic 3, which is Agria put the customer as their
priorities. In the chapter 3, the objective of TQM is probably to provide customer satisfaction
which is attained by producing outputs that conform to the requirements of the customer. Agria
also follow the steps in the process of continuous improvement in TQM, where one of the step is
engage in education and training for staff. Agria let the new employees take part in five days of
training, which allow the employee to get a clear understanding about the system, the rules and
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The main reason the Agria received the award is because they are completely put an
effort to make a different change and their main motive to improve the productivity in operations
and reduce operating costs per business item have led their way to start working with the criteria
One of the features in the TQM, is focus. Under the focus, there is processes and systems.
If there is any changes in the processes, the effects of improvement should be evaluate either it
turns out to be good or not just like Agria did. If the improvement doesn’t meet the objectives,
As for this article, it shows that if the concept of total quality management is being
implemented, any award can be achieved or to be exact nothing is possible if every steps have
been follow seriously. TQM is the guidelines to the company to maximize their effectiveness and
TQM is a like a measurement for the company to realise what should be done and what
should not be done. In order to achieve TQM, everyone should be responsible in every each part
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3.0 CRITICAL DISCUSSION
The first issue in this article that will be discusses is about the quality management that arise
at Agria. In Agria, they keep searching for the new strategies by finding the new ways to improve
and develop their work procedures. This is to ensure that all the strategies been made could
strengthen their ability and quality in the organization. As for the customer focus, they are using
customer as the ones who determine their quality of work. They using the tools such as the
Agria’s satisfied customer index. Customer index is an activity the centre will call the customer
For value focused leadership, Agria using the top management to separate values in the
organization. The employees will meet the manager to learn the process flows about the
management and using a good communication to ensure the employee received clear information.
For this method, the leaders needs to always show their respect and trust towards their employees
In the point of process management and their control on the organization, it clearly can be
seen when the organization been organized, the process to delivered something to customer will
be getting easily by using an appropriate close through the department. This is because when
everyone in the organization taking their part according to their positions actively, the common
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The second issues that arises in this article is how did Agria was able to sustain their quality
management and succeed in receiving the Swedish Quality Awards twice. According to the CEO
a primary reason, for him, to begin the work on systematic quality improvement was curiosity.
He points out that the company did not begin working with the criteria of the Swedish Quality
Award because of external pressure, but because of an ambition among the top management
group to improve productivity in operations and reduce operating costs per business item.
The study of this article can bring many benefits to other companies to make Agria as a role
to be ambitious to look for some kind of instrument that could help to strengthen and improve
the whole organizations. As an example, because of an ambition of the top management in Agria,
they finally succeed implementing the criteria of the Swedish Quality Award. Improvements are
described not as a result of work made by a few, but as a result of all efforts made by everyone in
the organisation.
Van der Wiele and Brown (2002) conclude that every organisation “needs to discover and
work out for themselves on how to apply the core principles behind such concepts in ways which
are meaningful to their business operations.” That is probably one of the most important
explanations to why Agria has succeeded so well. Methodologies and tools have been selected by
their end users on the basis of their opinion of what was needed, and have also been adjusted to
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The next issue is about an education and training of the employees and not letting
production demands undermine the benefits of training. In Agria, they have created “Agria-
School”. This school is for the new employees that started their job, to ensure that they are aware
towards the basic value and the principle of the organization. This school also produce the
training process to teach the new employees about the operations that will involve themselves.
In Agria programmes, they also include the management to develop their leadership skills
to organize the organization. For this school, they not only focus on the new employee skills but
it also includes the skill of the management. This will be able to create the strong relation
From the issues that has arisen, we agree that Agria deserve to win the award as they are
keep ensuring that the organization always running smoothly. Therefore, they are very particular
and concerned with a little matter because every decision that was made must parallel with the
success or goals that wants to be achieved by the organization. Besides, it is important for a
company to sustain their success in getting an award for the organization so that, it can increase
the employee’s spirit to improve the company’s image. The implementation or adaption of
quality principles alone does not guarantee that all the guiding principles of quality will be
effective in organizations. Others aspect that would help to ensure effective quality standards
expected by organizations and their customer is recognition or an awards. This is because these
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4.0 CONCLUSION
responsibilities on that organization for ensuring the success of the quality improvement efforts.
If each of the element takes part to play their roles and initiatives, it is not impossible in
achieving any award like Agria did with their accomplishment of Swedish quality award for the
second times.
Next, we summarise the objective as to meet with customer satisfaction and expectation and
produce defect free or error free output. So that, we can maintain and retain our customer to
regularly and continuously subscribe our goods and services. On the other hand, staff education
and training also important in developing our organisation to make sure that all of our staff is
competitive in doing their tasks and responsibilities. Thus, we can upgrade the quality and the
outcome receive.
Then, the analysis drawn from this article shows that the top management at Agria has been
stong driving force that has effectively united leaders at all levels as agents of change. Additional
success factors have been the deployment of basic values, the “five always”, and the value
focused leadership. Further on the company has succeeded in creating a cultural basis and
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