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International Journal of Production Economics

Total Quality Management Research Paper
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Along this research paper I am going to speak about some theories and theorists of the quality management. I am also going to show on the example of existing company how one of the quality theories management implementation can potentially assist the company in achieving further improvement.

In our case guru — is one of the major contributors to the quality management. Among most famous gurus there are: Edwards Deming, Joseph M. Crosby, and some others. Theories for the quality management suggested by these individuals have proved to be the most effective in the business world.

Besides, their ideas were found to be innovative, compared to what has been available before, and therefore, they are viewed as geniuses or in other words, gurus in their field of studies and research.

In spite of the fact, that there were a number of quality management gurus, two most prominent are considered to be Edwards Deming and Joseph M. They both have been famous for contributing significantly to the development of Japanese economy with the help of their view on quality management.

Deming has introduced to the world his four concepts of quality management: His theory was practiced by such famous companies as General Motors, Ford, and Toyota.

Deming theory claims that the primary role of management is to remove the barriers that prevent the firm from showing high quality performance.

He also believes that workers should participate in the process of decision-making. According to Deming the fundamental goal that needs to be sought to ensure the improvement of the product — is improvement of the working process.

Juran, in his turn, supports the idea that the problems that management faces are resulted from the errors of human element. His main suggestion for solution of the quality management problem is providing training to all levels of management. Juran believes that there is a need to train management in quality concepts, use of quality circles for improvement of employee communication crosswise.

From my point of view, the best effect in the Quality management can be achieved if these two views are used in combination. In the first case we possess a wonderful set of prescribed rules for achieving success. But since I have to choose just one approach, I am going to use Deming Theory for my example.

For the research I have decided to choose somewhat unusual type of analysis. I will analyze its performance both globally, and particularly in the CIS countries. Below is some general information about the company:. KPMG Company is considered to be one of the largest companies in their industry, and in many countries of the world it is considered prestigious to work for the business.

KPMG Company has adopted a sophisticated management system. When an employee decides to work for the company — he has a certain hierarchy of positions, which he has to go through in order to be promoted. Another important issue that is left unseen by the management of the company, which currently takes place in the countries of CIS, is the following. After the breakdown of the Soviet Union, the economic systems of the countries have been experiencing a constant change.

Underutilized capacity could be disastrous for any firm, especially for assets that produce services Gibson, The hospitality industry is a perfect example of capacity-constrained services that have to address the challenge of perishable revenue opportunity from their productive assets.

An important consequence of the inherent characteristics of services and of service components in products is that the product cannot be produced without customer interaction—production and delivery processes of services are idle unless a customer is being served.

For a number of reasons, fluctuating demand is an inevitable fact of life for businesses Gee, There are times when demand exceeds supply and at other times supply exceeds demand. For firms that produce services, the demand-supply mismatch results in situations where revenues and profits are not maximized.

Every firm seeks to generate the maximum profits from its assets; this goal requires TQM for long-term profit maximization. The firm needs to manage demand and supply such that it attracts and serves the segment mix that provides the maximum total profitability.

Patronage and capacity of productive assets must be managed for maximum profitability. The pattern of the flow of customers dictates the utilization of the productive factors of the services. Thus, the firm should attempt to smooth peaks and fill valleys of fluctuating demand patterns. The first part of the paper is about how to understand the TQM and to study the capacity of the value-creating assets.

Finally, ways in which the firm can improve the profitability of its value-creating assets are suggested. The task for the firm with perishable assets is not just increasing demand, but increasing demand during low-demand periods Barrick, Ryan, and Schmitt, How TQM relates to the hotels TQM concept has been initially applied to manufacturing; however, hospitality industry has been increasingly interested in TQM practices for several decades already.

TQM is practiced extensively by airlines and hotels in the service sector, for example, as they seek to maximize the returns from assets by maximizing the utilization of capacity at maximum margins. There are certain problems with the application of TQM in hospitality field in general and hotel industry in particular. As Jessome notes, service industries have less control over factors which affect quality; they are characterized by a higher level of external uncertainty for the reason that services cannot be stored for later, and customers participate in the process of product creation ; standards are difficult to set, to conform to, to measure due to intangible nature of services; expectations vary from customer to customers and often remain unknown or unstated; subjective nature of service quality makes it even more difficult to assess.

Despite all the difficulties with implementing TQM in service industry, many hotels have made their commitment to quality in the form of integrating the concepts and tools of TQM. Customer-focused firms base their TQM techniques of demand and capacity management on their knowledge of the customer behavior without losing sight of creating and delivering superior customer value and sustaining profits for the long term Barrick, Ryan, and Schmitt, Demand management within TQM should aim to manage volume and revenues generated by the firm for maximum long-term profits.

Capacity management, at the same time, should aim to minimize the costs of production along with maximizing utilization for maximum profits. Customer-focused firms will seek to understand customer behavior to manage customer demand. They will also seek to cost-effectively adapt capacity to the demand level without affecting the customer experience. The objective of TQM is to manage customer behavior and the capacity utilization of the firm such that returns from assets are maximized Barrick, Ryan, and Schmitt, How to achieve the TQM in hotels This section will demonstrate how TQM can be implemented in hotel industry using the example of one of the hotel services, namely reception.

This functional relationship is represented by Equation 1. In addition, they make quality their personal preoccupation on the daily basis and allocate sufficient resources to quality management and measurement. Equation 2 represents Top management commitment response, where TD is the time devoted, RA is the resources allocated and PE is the personal efforts.

The second element of the model, Product and process improvement, consists of better reputation, reduced liability risks, decrease in number of customer complaints, smoother delivery of services and enhanced customer response. Equation 3 represents it mathematically, where R is the reputation, LR is the reduced liability risks, CC is smaller number of customer complaints, D is the smoother delivery system, and CR is the enhanced customer response.

Human resource excellence can be perceived as improvement in communication, training, information and accountability. Equation 4 represents this element of TQM model, where C, T, I and A stand for improvement in communication, training, information, and accountability. Customer orientation response depends on customer satisfaction and cohesive workforce.

However, it can be achieved through competent and committed staff. Therefore, Equation 5 presents customer orientation response as a function of customer satisfaction CS , employee satisfaction ES , and cohesive workforce CWF. The economic advantage relates TQM to positive change in sales, reduction in costs and increase in value of services. This can be represented mathematically as Equation 6, where CS is the change in sales, C is the reduction in costs and VS is the increase in value of service.

How TQM may be implemented in order to improve the standards of the hotel This section will apply the theoretical model presented above to reception services in the hotel. While benchmarking is also an aspect of TQM, several examples of best practices from the most successful hotels worldwide will be discussed.

Starting with top management commitment response, managers of the hotel should make improving reception services their primary objective. Reception services should be on agenda at every high-level meeting. Top managers should devote their personal time, attention, and resources to improving reception services: As previously stated, TQM requires a cultural change. This change is substantial and will not be accomplished in a short period of time.

Small organizations will be able to make the transformation much faster than large organizations. It also occurs if TQM is mandated by the customer or if management realizes that TQM is a better way to run a business and compete in domestic and world markets. Automation and other productivity enhancements might not help a corporation if it is unable to market its product or service because the quality is poor.

The Japanese learned this fact from practical experience. Prior to World War 11, they could sell their products only at ridiculously low prices, and even then it was difficult to secure repeat sales. To sum it up, the customer wants value. Since World War 11, the Japanese have been very successful using the American ideas for total quality improvement they learned from Deming and Juran. In the late s Americans became interested in the success of Japanese firms and discovered that their management processes were the cornerstone of that success.

Others were less successful, largely it seems, because they were unable to accomplish the cultural and organizational changes required to implement TQM principles. The importance of the senior management role cannot be overstated. Leadership is essential during every phase of the implementation process and particularly at the start. In fact, indifference and lack of involvement by senior management are frequently cited as the principal reasons for the failure of quality improvement efforts.

Delegation and rhetoric are insufficient involvement is required. Senior management needs to be educated in the TQM concepts. In addition to formal education, managers should visit successful TQM organizations, read selected articles and books, and attend seminars and conferences.

The next step is for senior management to develop an implementation plan. Timing of the implementation process can be very important. Is the organization ready to embark on the total quality journey? There may be some foreseeable problems, such as a reorganization, change in senior management personnel, interpersonal conflicts, a current crisis, or a time consuming activity.

These problems may postpone implementation to a more favorable time. The next step is the formation of the quality council initiation of these duties is a substantial part of the implementation of TOM. The development of core values, a vision statement, a mission statement, and a quality policy statement, with input from all personnel, should be completed first.

The active involvement of middle managers and first line supervisors is essential to the success of the TQM effort.

Senior management needs to ensure that managers at all levels have an opportunity, as soon as possible, to develop ownership in the TQM effort and a chance to acquire the insight and skills necessary to become leaders. One way to accomplish this concept is to have a retreat. If there is a union, there should be early discussions with the representatives on TQM.

Managers should involve union leaders by sheling with them implementation plans for TQM. As the quality effort progresses, managers and union leaders should work together on quality improvement activities.

At this stage of the implementation process, it is important to communicate TQM to the entire organization. Communication is important throughout the implementation stage.

Communication is necessary to create TQM awareness interest, desire, and action. Everyone needs to be trained in quality awareness and problem solving. This training is conducted when the employee is placed on a project team or the work group is ready for the training.

Customer, employee, and supplier surveys must be conducted to benchmark the attitudes of these three stakeholders. Information from these surveys provides ideas for quality improvement projects.

The quality council determines the quality improvement projects. In addition the council establishes the project teams and work groups and monitors their progress.

There is often a tendency to rush the implementation process. On the other hand, Karlee, a Malcolm Baldrige. Implementation of TQM is described in the next chapter, on leadership. This section gives information concerning the obstacles associated with implementation. Many organizations, especially small ones with a niche, are comfortable with their current state. The first eight most common were determined by Robert J.

Masters after an extensive literature search and the last obstacle added by the authors They are given below. According to a survey of manufacturing firms in Georgia, the benefits of TQM are improved quality, employee participation, teamwork, working relationships, customer satisfaction, employee satisfaction, productivity, communication, profitability, and market share. They showed that there is a strong link between TQM and financial performance. They then selected a control group similar in size and industry to the award winners.

Performance of both groups was compared during the five years prior to the award and five years after winning the award. No difference was shown between the two groups prior to the award. In addition, the study showed that small organizations out performed larger organizations. There is no universal definition of leadership and indeed many books have been devoted to the tonic of leadership. In his book Leadership, James MacGregor Bums describes a leader as one who instills purposes, not one who controls by brute force.

A leader strengthens and inspires the followers to accomplish shared goals. As stated in its core values and concepts, visionary leadership is-. The directions, values, and expectations should balance the needs of all your stakeholders.

The values and strategies should help guide all activities and decisions of your organization. Senior leaders should serve as role models through their ethical behavior and their personal involvement in planning, communications, coaching, development of future leaders, review of organizational performance, and employee recognition.

As role models, they can reinforce values and expectations while building leadership, commitment, and initiative throughout your organization. Leadership can be difficult to define. However, successful quality leaders tend to have certain characteristics. In order to become successful, leadership requires an intuitive understanding of human nature the basic needs, wants, and abilities of people. Everyone is responsible for quality, especially senior management and the CEO; however, only the latter can provide the leadership system to achieve results.

The General Electric training courses taught leadership approaches and models and provided the opportunity for teams to develop solutions to real business problems. Many of the solutions the teams developed were implemented. Jack Welch supported the development of a leadership system whereby quality control leaders were developed at all levels in all functions of the organization, including research, marketing, manufacturing, sales, finance, and human resources.

Senior managers need to be provided with the skills to implement quality control techniques and actively participate in the quality council. Senior management has numerous responsibilities. Management should get out of the office and visit customers, suppliers, departments within the organization, and plants within the organization.

That way, managers learn what is happening with a particular customer, supplier, or project. MBWA can substantially reduce paperwork. Encourage subordinates to write only important messages that need to be part of the permanent record. This approach is an excellent technique for gaining firsthand information. The idea is to let employees think for themselves.

Push problem solving and decision making to the lowest appropriate level by delegating authority and responsibility. Senior managers must stay informed on the topic of quality improvement by reading books and articles, attending seminars, and talking to other TQM leaders. The leader sends a strong message to subordinates when that leader asks if they have read a part ocular book or article.

This activity is an excellent opportunity to reinforce the importance of the effort and to promote TQM. One of the duties of the quality council is to establish or revise the recognition and reward system. Also, provisions must be made to reward teams as well as creative individuals. Senior managers must be visibly and actively engaged in the quality effort by sending on teams, coaching teams, and teaching seminars.

They should lead by demonstrating, communicating, and reinforcing the quality statements. As a rule of thumb, they should spend about one third of their time on quality. A very important role of senior managers is listening to internal and external customers and suppliers through visits, focus groups, and surveys.

This information is translated into core values and process improvement projects. Another very important role is communication. In addition to internal efforts, there must be external activities with customers and suppliers, the media, advertising in trade magazines, and interaction with the quality community.

By following the preceding suggestions, senior managers should be able to drive fear out of the organization, break down barriers, remove system roadblocks, anticipate and minimize resistance to change, and, in general, change the culture.

Only with the involvement of senior management can TQM be a success. The most important asset of any organization is its customers.

Customers that are satisfied will increase in number, buy more, and buy more frequently. Satisfied customers also pay their bills promptly, which greatly improves cash flow the lifeblood of any organization. Increasingly, manufacturing and service organizations are using customer satisfaction as the measure of quality. The importance of customer satisfaction is not only due to national competition but also due to worldwide competition.

Research Paper on Quality Management

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Abstract- Total quality Management as a philosophy seeking to integrate all organizational functions in all areas of productions and services become an important attractive research field. It encourage Researchers to address many topics related to Total Quality management and Continuous improvements. Each has his own approach.

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RESEARCH PAPER Total quality management (TQM) strategy and organisational total quality management (TQM) and organisational characteristics (size, type of industry, type of ownership, and degree of innovation) in a newly industrialised country in South East Asia. Vietnam has become the th member of the World.

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