Implementing Total Quality Management - Case Study Example

Service Quality Table of Contents Executive Summary 3 Introduction 4 2.Total Quality Management (TQM) 4 3.Action Plan for TQM 5 4.Evaluation of theSteps 7 5.Implementation at Yummy Oz Foods 10 6.Conclusion 11 7.Recommendations 11 References 13 Bibliography 14 Executive Summary Total Quality Management (TQM) is an organizational philosophy that was conceived by great management theorists such as Joseph M. Juran, William E. Deming, etc. Organizations that desire to enhance the quality of their products and/or services strive to implement TQM in their operational framework. This report sheds light on the underlying concept of TQM and subsequently outlines a generalized action plan for its implementation. Following this, the individual steps have been evaluated to explain their rationale. After providing the concluding remarks, a set of recommendations have been presented. 1. Introduction One of the foremost driving forces in business is the aspect of competition. The competitiveness of a supplier is determined to a large extent by the quality that is delivered through its product(s) and/or service(s). Owing to the subjectivity of the term ‘quality’ it is pretty much necessary to define it prior to proceeding with the report. While some of the experts have defined it as “the totality of features and characteristics of a product or service that bear on its ability to satisfy stated needs”, others have furnished a far more comprehensive definition that says quality is “the total composite product of service characteristics of marketing, engineering, manufacture and maintenance through which the product and service in use will meet the expectation by the customer” (Oakland & Morris, 1997, p.2). In the light of the fact that the main purpose of this report is to outline the action plan as well as describe the implementation of Total Quality Management (TQM) in a large fast food outlet based in Mackay, Queensland, a summary of the steps involved will be provided. Subsequently, each of the steps will be individually evaluated to justify the necessity of TQM as a tool to enhance the quality of service. 2. Total Quality Management (TQM) According to Sashkin and Kiser, “TQM means that the organization’s culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training”; they have further added that “this involves the continuous improvement of organizational processes, resulting in high quality products and services” (Sashkin & Kiser, 1993, p.39). It is deemed necessary to mention in this context that certain tools are required to make TQM work seamlessly and produce the desired results. First of all, the management is necessitated to believe that the achievement of quality ranks among the primary aims of the organization. Simultaneously, it should channelize its resources as well as efforts towards the achievement of quality. However, it is a noteworthy point that “the underlying essence of TQM, the existence and definition of TQM, is using tools to achieve the aim of quality for customers by creating a culture, a pattern of shared values and beliefs” (Sashkin & Kiser, 1993, p.39). Owing to these characteristics of TQM, it maybe easily perceived that this is “an approach to improving the competitiveness, effectiveness and flexibility of a whole organization”; in addition, it may also be observed that “it is essentially a way of planning, organizing and understanding each activity, and depends on each individual at each level” (Oakland, 2003, p.30). Whenever an organization decides to implement TQM in its operational framework, its management espouses a strategic impression in terms of quality. Just like any other instance that requires change management, organizational members in this case too “will need to undergo a complete change of ‘mindset’ to unscramble their intuition” (Oakland, 2003, p.30). 3. Action Plan for TQM Most of the organizations use the 14-step plan formulated by W. E. Deming (1986) as the template while designing their own actions plans for TQM implementation. The steps that comprise the plan are as the following: Constancy of intention towards the enhancement of product and/or service should be generated, while aspiring to compete in the industry, and to offer jobs; The new ideas that define the contemporary business scenario should be acknowledged in order to accept the challenges and exhibit industrial leadership in terms of quality as well as profitability; Reliance on periodical mass-inspections to attain quality should be ceased. Efficient organizations should eliminate the need for mass-inspections by incorporating quality into their products; Instead of rewarding a business on account of its price-leadership, it is necessary to curtail the total cost. This can be achieved through procuring each raw material from a particular supplier over a long-standing relationship of trustworthiness; The production system as well as the services should be improved on an incremental and continuous basis, in order to enhance the productivity and quality, and to constantly reduce costs; On-the-Job Training (OJT) programs should be institutionalized for the employees as a means of inculcating the necessity to practice TQM; Leadership should also be instituted in realization of the vital fact that the primary intention of supervision is to facilitate the endeavors of people as well as machines and to enhance their outputs. It needs to be mentioned in this context that both the management and production workers should come under the purview of supervision in order to augment quality; Managements should eliminate fear from the employees’ psyche so that each organizational member may work efficiently as well as optimally towards the growth of the organization; Barriers that tend to exist between different departments should be broken down and cross-functional teams should be formed to enhance skills pertaining to problem-solving; Measures should be taken so that the workforce doesn’t feel pressurized. In order to achieve high levels of productivity, exhortations that create hostile relationships should be eliminated; Work standards/quotas and techniques such as management by objectives (MBO), etc. should be eliminated and substituted by leadership; In order to enhance quality the management must eliminate barriers that deprive organizational members of their right to job-satisfaction; A dynamic program should be institutionalized in order to develop employees in terms of their education as well as self-improvement; and A holistic environment should be nurtured within the organization in order to enable organizational members to work synergistically towards the accomplishment of the transformation process (Dale, 2003, p.54; Farooqui & Ahmed, 2009, p.2-3; Pike & Barnes, 1996, p.31). 4. Evaluation of the Steps It is necessary to evaluate each of the steps that have been outlined under the action plan described in the previous section. This is important because an assessment of each individual step will help the management in envisioning the specific actions that need to be taken while embarking on the successful implementation of TQM in the operational framework of the organization. Step-1: Quality products and/or services are the key deliverable of any organization and hence companies should treat both these elements as their topmost priorities. If unmatched as well as uncompromised quality is steadily achieved through the practice of TQM, incremental profitability will be automatically ensured. Hence, instead of focusing on profits as the prime objective, organizations should strive towards enhancing quality. Step-2: Organizations must adopt as well as understand the philosophy of never-ending improvement. The philosophy that underlies TQM should be inculcated across the organization so that everyone pursues it actively and constantly. As has been already said, efficient organizations are those that imbibe new ideas from their ever-changing business environment and improve their internal processes in accordance with them. A continuing commitment towards TQM will facilitate such endeavors. Step-3: Mass-inspection should be replaced with statistical screening, during the course of improving the process of production. In organizations where managers supervise the work done by their staff, the sense of ownership as well as responsibility of the latter go on reducing. Likewise, inspection becomes unnecessary when employees “take pride in quality and are fully supported in this aim” (Blair & Meadows, 1996, p.79). Step-4: In order to change the general attitude that businesses should be awarded solely based on price, organizations should realize that “supplier relationships based on long-term cooperation can result in components and services from suppliers being tailored much more closely to the needs of their customers” (Blair & Meadows, 1996, p.79). Step-5: It is necessary for the management to realize the fact that most of the organizational problems ensue from faulty systems and hence attempts should be made to improve the system as well as the processes on a continuous basis. This will enhance the productivity of high-performers. Step-6: Owing to the fact that workers should be trained so that they may perform better by understanding the usage of various TQM monitoring measures, organizations should ensure that all the funds allocated for employees’ training and development are not “concentrated on the higher and middle echelons” (Blair & Meadows, 1996, p.79). Step-7: Supervisors should relieve themselves of their inspection roles and instead “act as coaches and trainers” (Blair & Meadows, 1996, p.79), in order to provide workers with a supportive work environment. Step-8: It is necessary for the management to foster a cooperative environment wherein employees will be encouraged to voice their feelings and problems. Constructive discussions ought to be encouraged to democratize the work environment, and it is equally important for supervisors as well as managers to ensure that “staff who challenge the way work is carried out” (Blair & Meadows, 1996, p.79) are not punished. Step-9: Organizational barriers should be broken down to manifest the objectives sought in the previous step. Step-10: The management should “eliminate arbitrary numerical goals and integrate personal goals with the organization’s overall goal of never-ending improvement of quality” (Blair & Meadows, 1996, p.79) in realization of the fact that empowered employees will feel enthused to perform towards the accomplishment of this goal. Step-11: Statistical methods of management should be incorporated while evaluating the never-ending improvement of quality because accentuating the production quotas will allow the staff to neglect the crucial aspect of quality. Step-12: It is extremely important to “facilitate and promote pride of workmanship” (Blair & Meadows, 1996, p.80); hence staff should be provided with materials, tools and above all working conditions that are of good quality. Step-13: The management should “institute extensive education and training at every level of the organization” (Blair & Meadows, 1996, p.80) in order to instill team building as well as additional behaviors that sustain TQM initiatives. Step-14: The organization should be structured in such a way that all employees involve themselves in the never-ending process of quality improvement. Factors that are deemed essential for this purpose include “management leadership and commitment to change, along with an implementation strategy” (Blair & Meadows, 1996, p.80). 5. Implementation at Yummy Oz Foods In an attempt to implement TQM at the Mackay (Queensland) outlet of Yummy Oz Foods (YO), a number of measures have been adopted. Firstly, management systems have been realigned. It had been found that changes are necessary in the areas of management reporting, accounting methods, human resource practices, marketing activities, information systems, and quality assertion. After identifying the systematic barriers, necessary changes were introduced to upgrade HR policies. Subsequently the marketing activities were enhanced through Marketing Communications (marcom) that incorporate Information and Communication Technologies (ICTs). A high level of quality assurance was ensured through interactive sessions that involved direct participation of the manager. Extensive coaching and mentoring was institutionalized and the results were assessed with the help of customers’ feedback. However, a T&D program could not be designed as such a provision for casual staff has not been formalized yet. That repeat sales have increased over the last four quarters speaks of the rise in the number of satisfied customers. Secondly, the focus was shifted towards creating synergy among various processes. A quality circle was formed with incumbents from the purchase and production departments in order to procure the best raw materials that suit customers’ preferences in terms of the cuisine served. The positive results have been reflected in the customers’ feedback forms (Schiller, Miller-Kovach & Miller, 1994, p.180). 6. Conclusion During the course of this research it has been found that TQM is a holistic approach that is adopted by organizations in order to enhance the quality of their products and/or services on an incremental as well as continual basis. The 14-step plan that was provided by W. E. Deming in 1986 still serves as the central dogma for organizations that desire to develop their TQM action plans. It has been observed that training and development programs should necessarily be incorporated as a component of TQM implementation because most often the latter is perceived by employees as an organizational change. The management should adopt holistic measures to institutionalize TQM as a pivotal element of the operational framework of an organization. 7. Recommendations In the light of the discussion undertaken in the preceding sections, the fast food outlet maybe provided with the following recommendations: It should continually evaluate its business environment in order to identify the changes that have been incorporated by its rivals. This would help the management to undertake a SWOT analysis and recognize the areas that require attention and development. OJT programs should be incorporated with the aim to develop the employees. As the organization operates within a service-intensive sector, the customer service should be strong enough to handle and solve customers’ grievances. TQM philosophies should be institutionalized through constant coaching and mentoring by the managers. The work environment should be democratized to encourage the employees. References Blair, G. & Meadows, S. 1996. A Real-Life Guide to Organizational Change. Gower Publishing, Ltd. Dale, G. B. 2003. Managing Quality. 4th ed. Wiley-Blackwell. Farooqui, U. R. & Ahmed, M. S. June 2-5, 2009. Assessment of Deming’s Philosophy for Implementing Total Quality Management in U.S. Construction. 7th Latin American and Caribbean Conference for Engineering and Technology. [Pdf]. Available at: http://www.laccei.org/LACCEI2009-Venezuela/p248.pdf [Accessed on September 13, 2010]. Oakland, S. J. 2003. Total Quality Management: Text with Cases. 3rd ed. Butterworth-Heinemann. Oakland, S. J. & Morris, P. 1997. TQM: A Pictorial Guide for Managers. Butterworth-Heinemann. Pike, J. & Barnes, R. 1996. TQM in Action: A Practical Approach to Continuous Performance Improvement. 2nd ed. Springer. Sashkin, M. & Kiser, J. K. 1993. Putting Total Quality Management to Work: What TQM Means, How to Use It, & How to Sustain It over the Long Run. Berrett-Koehler Publishers. Schiller, R. M., Miller-Kovach, K. & Miller, A. M. 1994. Total Quality Management for Hospital Nutrition Services. Jones & Bartlett Learning. Bibliography Dahlgaard, J. J., Kristensen, K. & Kanji, K. G. 2005. Fundamentals of Total Quality Management: Process Analysis and Improvement. Routledge. Kanji, K. G. & Asher, M. 1996. 100 Methods for Total Quality Management. SAGE Publications, Ltd. Rawlins, A. R. 2008. Total Quality Management (TQM). AuthorHouse™ UK Ltd. Read More