Total Quality Management
Total quality management is a concept that denotes the streamlining of activities within a firm with the singular objective of meeting the requirements and the standards of the client. The concept was developed in the United States but received overwhelming utilization in Asia. Basically, firms that adopt total quality management systems undergo structural adjustment process that is aimed towards embracing the element of quality standards that meet the desires of the client. Towards this objective, there is the elimination of ambiguities in the systems, the harmonizing of roles and the establishment of quality checks at all levels. Generally, the concept is all encompassing and manifests itself through various models that are structured to suit different types of clients.
Businesses around the world have adopted different Total Quality Management systems that are specific to their objectives. In the case of PepsiCo Inc, the survival on the market has been anchored in the areas of quality products, customer satisfaction, affordability, worker satisfaction, and flexible price regimes. The ability of the company to anchor its products into the concepts of healthy living and cultural dynamisms has been one of the important selling points of PepsiCo Inc. In this structural approach, the business manages to satisfy the aspect of total quality which is a fundamental pillar of total quality management. The company's operational paradigm is anchored on the principle of "performance with purpose,".
The company has maintained a steady climb on the market through a targeted process of satisfying the health needs of her growing clientele. The dimension of services and products, which is a key element of total quality management, was effectively met through the venturing into snacks that are baked and whole-grain besides mineral-enhanced water, (Bagad, 2008). The idea is to widen the company's objective beyond the narrow boundaries of profit margins towards the promotion of healthy lifestyles within the ever-expanding market niche. From the same perspective, this company has made it its business to promote value by upholding a campaign against the consumption of junk foods in her areas of operation. The whole idea is to direct some positive influence towards the dismantling of the idea that fast-foods are essentially hazardous to urban communities.
The culture of fast-foods has earned the wrath of many researchers as the main contributor to the growing incidence of cancer cases in the developed world especially. This assumption has been reinforced by the idea that junk foods mainly comprise of fatty foods and fizzy drinks. To a significant degree, the concept of total quality management is dependent on the aspect of sound management. Within this concept, managers should show a desirable level of commitment for the purposes of impacting positively on the workforce. The overall manager, according to Oakland must demonstrate an active desire to mentor and inspire the workforce. When this happens, there is often an element of uniformity within the workforce so that the people within the system work together towards a meaningful whole. Service delivery and process modulation enjoy reaching their optimum efficiency as a result of the positive force that results naturally from the ability of the manager to create positive change in the system. In the case of PepsiCo Inc, the Chief Executive Officer Indra Nooyi has managed to create a system whereby the entire team works together as a team with little interpersonal friction. Through her unconventional approach to management issues, Nooyi has managed to create an environment that encourages popular discussion among the people in a way that affects the performance of the company in a positive manner.
Throughout the years she has served as CEO, Nooyi has managed to bring on board different skills within the work force to promote positive results in terms of service delivery. She has managed to structure a system with a horizontal rather than vertical system of approach. The effect of such a structure has been the elimination of unnecessary hierarchical structures in the system. The consumer segment is driven by relatively low price and efficiency in use. This particular segment shall involve varieties of individuals, families and other private clients who cut across the classes and professions. The price variations for these, however, shall vary across the classes and probably across the sexes.
The underlying strengths of PepsiCo Inc lie in its management of economies of scale which makes its products comparably lower in costs than most of our competitors. The main aim of PepsiCo Inc has been the retention of the client base while at the same time attracting new clients by reaching out to those in emerging fields of interest. This proposition is part of the wider scheme to keep in step with the organization's culture of increasing value alongside quantity.
Part of total quality management systems is to increase the decentralization of our showrooms and exhibition stores to increase access to the products and services to the increasing volume of our clientele globally. This will also translate into the hiring of skilled manpower to post them at all corners of our reach so that service delivery becomes efficient and relatively affordable.
Studies have shown that administrative systems that are less hierarchical also portray a lesser degree of bureaucratic intrigues.
Consequently, the process of decision making within such a system is relatively more efficient than a system that is rigidly controlled by stringent bureaucracies. In other words, the level of efficiency in any system is inversely proportional to the amount of hierarchy that reflects within it. In accordance with the principles of total quality management, the net effect that is appropriate to achieve the aspect of efficiency is "ownership,". Basically, the concept of ownership revolved around the idea that the entire chin comprising of the management, the supervisors, and the workforce should establish a form of acceptance of the key processes in a way that creates harmony across the ranks of the workforce. Within the whole concept is the idea of accountability.
This process implies that the working community accepts to get wholly involved in every structure of the organizational system. This means that the entire team owns the successes, challenges, opportunities that work within the system. The operation of this idea also implies that all the workers, the management team and the supervisory team learn to own the process. The trends on the European, Asian and African markets have exerted tremendous pressure on the production range which can lead to a train in quality. In some areas, the company has run a monopoly with little in form of competition coming its way. Although this situation might have and does have its positives in terms of income, there is also a tendency towards complacency and laxity on the aesthetic edge. Most of all, however, the balance between quality and quantity has demanded that the company calls up some of its earlier production for purposes of verifications and adjustments.
A separate case study of the element of total quality management involves the evaluation of the process of economic ruin incurred by Marco's restaurant and the suggestion of remedies thereof. The analysis of this second case study is meant to illustrate the margin of difference between Marco's restaurant and PepsiCo Inc. The analysis of PepsiCo Inc was meant to illustrate a case of successful implementation of total quality management mechanisms. On the other hand, Marco's restaurant is a case study of the negative impacts that results from continual neglect of the same paradigms. The elaborate analysis was done with a specific focus on how the current organization of the restaurant has led to the continued to occasion losses and dismal performance.
The restaurant's challenges include Operational Costs, Declining Profits, Staffing, and Promotion as the main areas that would determine the analysis and rescue process. When viewed from the dimension of total quality management, Marcos restaurant has ignored the element of flexibility. The desire to align the restaurant to specific cultural expectations has made it difficult for the firm to switch to the demands of the market and expectations. Generalized recommendations should involve certain specifications that centered on the need of improving the staff morale, the need to bolster competition in the local industry, and the need to launch aggressive promotion campaigns that would ensure a return of profitability and systematic growth of the clientele.
TheRestaurant situated on High Street in Birmingham is in the grips of imminent collapse unless drastic rescue measures are carried out in good time. For the last seven years since 1994, the restaurant has witnessed a steady decline in profits and is now encumbered with a series of increasing losses. The almost dysfunctional situation has arisen mainly because of administrative oversights. The owners of the facility have been reluctant to introduce operational systems that would adjust the restaurant to the commercial realities of the current economic dynamics. Consequently, the restaurant is now faced with bankruptcy as it is practically insolvent due to the heavy losses in has incurred. This scenario usually results from unchecked overheads against returns. The objective of total quality management mechanism should be to point out the fundamental weaknesses that have stifled the growth of Marco's restaurant leading to its current dismal performance.
One major reason why Marco's restaurant has stayed on the path of losses is the heavy costs of operation. Marco's restaurant relies on a menu of expensive ingredients that cost lots of money. The problem is that the continued making of these expensive foods is without regard to consumer preferences. Most of the food prepared goes to waste since customers have revised their tastes from the times the restaurant began. For instance, the restaurant offers 15 pasta dishes and 25 types of pizza per day. The facility also offers about 12 deserts and all prepared from the restaurant. One major weakness of this restaurant is that in order for the restaurant to sustain its exotic menu the budgetary allocation of ingredients must come up to 657 pounds a week. However, about 365 pounds, about half the weekly budget goes to waste because of the shifting trends in food consumption at the restaurant.
Most of these foods go to waste as the restaurant does not attract sufficient clientele during the breakfast and lunchtime hours. Despite this reality, the owner has stuck to the same routine for the sake of preserving the Italian traditions which is one of the trademarks that the restaurant has always endeavored to use as a premium. The opening up of another Italian restaurant in the locality with a flourishing performance is proof that the Italian factor must be customized to meet the specific preferences of the clientele. The owner of the restaurant Marco and Maria have stuck to the exotic tradition despite the fact that it lacks any meaningful commercial value.
The steady decline of profits at Marcos restaurant in the last seven years testifies the dire need for revamping the organizational structure of the restaurant. The shift from profits and loss over the last seven years is illustrated in the profits of 250 pounds in 1994, to losses of 1800 pounds in 2001. The fact that the business is also exercising the repayment of a loan of 350 pounds per month heightens the predicament.
Looking through the functions of the restaurant there are certain areas that could be revised to save the business certain expenses. The core areas of this business could be revised such that there is more focus in areas where much of the firm's profits seem to originate. Some of these areas that might be revised to save costs include the abolishing of the breakfast and lunch shifts given the high costs involved in running them against the low profits they bring to the restaurant. The business has been losing about 150 pounds by operating a breakfast and lunch schedule whose profitability fell from 30 percent seven years ago to insignificant levels in the current economic environment. The implication to this abolishing of the breakfast and lunch schedules would be that the business would be able to save over 600 pounds in costs.
Shedding off non-performing sectors of an enterprise is one way through which beleaguered firms have turned around their fortunes. This money could be used in meeting some of the firm's operational overheads of in servicing the monthly debt. Marco should inject some professionalism into the facility. The restaurant runs mostly by family members and friends. He should do a gradual facing away from the staff from the friends and family and advertise for positions. As a measure to instill a sense of professionalism at the restaurant, the management should consider promoting some of the skilled workers in the restaurant to managerial positions. For instance, the management should consider hiring Steven in the Kitchen department so that he replaces Marco as the staffer in charge of kitchen operations. This is because Steven is an expert in the field with proven experience and skills.
The hiring of trained personnel usually gives the workplace a formal ambiance. He should also assign more staff at the most crucial hours of the evening and face out the rest. The attainment of quality systems within a firm is an aggregate effect that works well within the context of total quality management. In essence, businesses that are anchored on total quality mechanism system will always meet its set objectives because the different parts work in a harmonious unity. In many ways, the total quality mechanism is a system that has the capacity to deliver positive results within a lifetime of the business. The building structures of the total quality mechanism are anchored on the fact that united systems within a commercial environment are both cost effective and harmonious.
Marco and his wife should not engage in direct running of the business but instead, delegate the work to skilled workers. The roles of administrators at workplaces should remain administrative and if possible they should limit their physical presence at the working area in order to relax the working environment for the junior staffers. The handing over of the management activities should, therefore, involve the active selection of managers from the workforce to create room for service improvement. This will give the workplace some ambiance of professionalism and restore the morale of the workers. The management should also make steps and delegate. Similarly, Maria and her sister Clara should relinquish their positions at the front area to employed staffers so that the operations of that particular section capture the spirit of dutiful enterprise. The rescue of the Marco Restaurant is an activity that shall be anchored on three main areas.
These areas are the intervention against the continued drain of profits by cutting on costs. Halting of non-core activities of the organization would rescue wastage of resources and finances and increase the profitability of the firm. The improving of the existing services to brand the facility, as an ideal destination of meals and recreation is an important way of improving the processes in accordance with the tenets of total quality management. As part of a strategy to return the business to profitability, the management should launch aggressive customer promotions and relations exercise. Sales promotions usually create a significant euphoria that a struggling business can effectively convert into goodwill. This should be in form of gifts and other forms of value additions to their services that might be useful in capturing their lost clientele and retaining the present ones.
According to the principles of total quality management, firms should create a systematic measurement of performance in line with the "agreed customer requirement,". Through this mechanism, the firm will develop and uphold a strategy of reaching a minimum threshold of performance to satisfy different categories of the clientele. The restaurant should also make forays into the commercial niche of its main competitor Guiseppe by seeking alternative lunch deals with local offices. This should be done in ways that shall bring out its competitive edge especially through the provision of better and trendy services. The management should also seek to improve the morale of its workers through the change of their dress code to align with their individual preferences at the workplace. For instance, the uniforms should be replaced with some form of smart casual. This will help rejuvenate the spirit of the workers towards service delivery. This might borrow from the example of PepsiCo where workers have been allowed to the liberty of flexible dressing in a way that encourages teamwork and a relaxed ambiance at the workplace. In terms of the organization, the business should consider frequent training programs of all levels of employees in the principles of total quality management systems.
Marco should consider revising his strong cultural links to Italian cuisine in a way that would also celebrate the emerging trends and preferences. One way through which this could be achieved is by aping the system of the main competitor Guiseppe and adding improving on it as a matter of identity. Ultimately the success and challenges of PepsiCo Inc and Marco restaurant respectively are to be found on the opposite ends of quality management spectrum. In the management style adopted by the first company, it is possible to tell that most of the thresholds proposed in the discourse of total quality management were met. In the second case, there was a demonstrated neglect of the same.
Avon Products has developed a series of enterprising models to serve the objectives of total quality management. The firm trades mainly in cosmetic products and has kept a high profile on the global market. The three main methods employed by Avon products to meet the quality needs of her global clientele are mainly diversification of the product range, aggressive marketing strategies, and production of quality products. Avon has a wide range of clientele who cut across different ethnicities, nationalities, races and other categories. Over the years that the firm has been in operation, it has managed to increase the inventory of her goods to serve the disparate needs of her growing clientele.
Avon Products has developed an aggressive marketing strategy that involves the door-to-door marketing of her products in over 130 countries. The direct contact between the marketing agents and the clientele is aimed at providing the opportunity for Avon to explain to the clients, in a more direct way, about the merits of its products. Lucie Campbell has developed an open and resourceful human resources strategy by which she maintains a pool of skilled experts in cosmetics production. The result has been the production of quality beauty products that enhance the stability of its image among the target clientele.
Lucie Campbell Jewellery
Lucie Campbell Jewellery has invested in a skilled workforce to maintain its place on the market. Unlike other jewelry firms that prefer to buy their products, Lucie Campbell designs and manufactures its own Jewellery pieces. This method allows the firm to design items in line with the desires and the specifications of the client. The company maintains a database through which it maintains steady communication with the clients. In this manner, the products are made in line with the desired quality. The customer relations department advises visiting clients on matters of pricing, and types of purchases.
A critique of TQM approaches to tourism
Conventional models have emphasized on quality, service, and comfort as the key indicators of total quality management in tourism. Some of the suggestions have supported the thesis that ownership of processes should be promoted in the management of tourism in order to enhance quality. According to this line of thought, barriers between different departments must be broken down in order for them to function well as a unit. This argument stems from the idea the different departments sometimes tend to pursue clashing goals that eventually yield an element of inefficiency. Therefore, departments that handle tourist reception should develop a harmonious relationship with other departments that deal with food and beverages, and those that address the service of accommodation. Other studies have lobbied for continued promotion of refresher courses and skill development within the workforce and the management. Since tourism is a hospitality industry, other studies have suggested that the working environment should be genteel in order for the staff to discharge their duties without the element of fear. These policies are generally oriented towards the establishments of a homely environment and the enhancement of the feel of luxury which is a key pre-requisite for the sector. However, in their form and substance, they tend to stifle competition by reinforcing conventional practices in the industry. Companies that choose to practice conventional theories are always faced with the danger of losing out on their competitive advantage.
In the tourism sector, there are various ways of demonstrating the use of total quality management systems. Generally, there total quality management techniques developed by tourism firms are aimed at selling their destinations as the most appropriate tourist destinations. In many ways, tourism promotion entails factors of value addition and competitive advantage mechanisms. In this regard, many tourism firms use their uniqueness as the best selling points. It is usually the case that tourism thrives in areas that have been known to capture the necessary concepts of promotion. Some of the dimensions that have been explored on the market involve the continued promotion of the tourist destination as a preferred destination. Specifically, the area of strength in the methods adopted by a total quality mechanism for tourism is the developing of a model that provides a multi-sectored approach to tourism (Samuel, 2004).
Models for Total Quality Management
Different approaches to total quality management have yielded different results for firms, businesses, and corporation. The difference has been both in terms of kind and degree. Some firms have opted to choose models that are essentially different, and presumably superior to the ones adopted by their competitors. Other companies, on the other hand, have preferred to use the same models used by their competitors but engaged them in a more unique way than their competitors.
Benchmarking and standardization are the two main models that have been used frequently in the promotion of total quality management practices in the tourism sector. Basically benchmarking begins with the identification of a model tourism firm or hotel in the industry. The second step involves a targeted analysis of the organizational structure of the identified firm. The last phase is the adjustment of internal systems of the firm so that it resembles the structures and services of the identified model. Benchmarking can be a good system of improving the stature, the brand, and the performance of a tourism firm. However, in the long term, the business is likely to suffer from lack of material authenticity.
One of the ideal ways of achieving total quality management in the tourism sector involves the process of standardization. This is the technical upgrading of the tourist facility to levels of quality that can be recognized globally. International Standardization Organization specifics are incorporated into the tourist firm in order for it to gain assert and gain confidence on the market. In many cases standardization is considered as a mark of quality with which firms can use to gain competitive advantages on the market. Critics have argued that standardization alone is not enough to enhance total quality management systems on the market. Customers do not seek the certification of firms; instead, they seek out for the quality of services they receive. Therefore standardization as a technical tool for total quality management may not guarantee utmost quality in service delivery.
Ultimately it might be argued that the methods of total quality management systems are anchored on the processes of improving the services of quality in all the areas of the firm. Good total quality management systems have the ability to predict customer expectations. When fully explored, the mechanisms and structures of the total quality mechanism are aimed towards the process of attaining a wholesale growth in all the constituent parts of the business operation. The sum total of the total quality management system is a positive and effective workforce, high-quality products, and satisfied customers.
In the tourism sector, the attainment of total quality management is a tool that can be achieved through a variety of methods. Standardization of tourism facilities and benchmarking are some of the models that have been used occasionally to improve the image of the sector on the score of quality. Some other studies have suggested different methods of total quality management in the tourism sector, which include the adoption of a hybrid system that incorporates the adjustment of internal systems while at the same time responding to the external stimuli in form of market trends, competition, and innovations.
Lucie Campbell Jewellery is a London-based firm that designs and manufactures diamond jewelry. The business is located on New Bond Street and has been in operation for nearly five decades.
PepsiCo Inc is a US-based multinational corporation with its headquarters in New York. The firm deals with the manufacturing and the marketing of snack foods and beverages. The firm has undertaken various mergers and acquisitions with firms like Quaker Oats and Gatorade Tropicana.
Avon product is an American firm that trades in cosmetics, perfumes, and toys. The firm which has maintained a trading presence in more than 140 companies is headed by Andrea Jung as Chairman and CEO.
Toyota Motor Corporation is a Japan-based automaker located in Toyota, Aichi. The corporation has remained the world's leading automaker with an estimated global workforce of nearly half a million.