29 Total Quality Management

S. Alamelu Mangai

1.   INTRODUCTION

Food service organization faces many challenging environment in today’s world and the management is forced to adopt new approaches in order to respond to new challenges. What do the terms total, quality and management hold? Total is complete or full, Quality is the excellence of a product or a service and management is the effective way of handling product and services. So, TQM is the integration of all the process and functions in an organization to achieve improvement of quality of goods continuously and the service with the goal of customer satisfaction. As the quality standards do not remain the same forever the concept of TQM is dynamic. They are to be modified or changed to meet the requirements of customers and to make use of new technology. Thus in order to increase the profitability in these challenging situation many food service organization is adopting total quality management.

2.   LEARNING OBJECTIVES

The learner in this module will be enabled to understand the concept of TQM, its components, evolution, significance and implementation of TQM.

3.    MEANING AND DEFINITION

W. Edwards Deming states “TQM is an approach that seeks to improve quality and performance which will meet or succeed customer expectation”. It is also defined as the methodology which involves each one in an organization to improve the quality of service in a continuous manner to achieve the best satisfaction of customer.

Berry defined TQM as a total corporate focus on meeting and exceeding customers’ expectations and significantly reducing costs resulting from poor quality by adopting a new management system and corporate culture.

Kanji defines TQM as a management philosophy that fosters an organisational culture committed to customer satisfaction through continuous improvement. A similar definition was provided by Antony who regarded TQM as “an integrative management philosophy aimed at continuously improving the performance of products, processes and services to achieve and exceed customer expectations”. TQM means delivery of service with highest quality at lowest cost.

4.    CONCEPT AND EVOLUTION OF TOTAL QUALITY MANAGEMENT

In the early 1920s, the origin of the TQM movement started when Shewhart introduced the concept of Statistical Process Control (SPC) to monitor quality in mass production manufacturing for the first time. In 1949 Japanese with the help of scientists and engineers devised a programme in Quality control for their organizations. The concept of TQM appeared during 1980s and 1990s, in hospitality industry both in developed and developing countries. Organisations started to adopt TQM as a quality and productivity improvement programmes in the early 1980s after the success in Japanese organisations enhancing competitive edge. And therefore TQM became an essential management philosophy and was in top priority in many organisations due to the globalisation age and highly competitive environment forcing customers to search for better products and services.

The concept of TQM can also be understood in terms of its four stages.

i.Detection and Rectification of Defects. The first stage was initiated because of the need for detection of defectives. The quality control responsibility was identified with quality and inspection function.

ii.Prevention of Defects. During 1930s, the emphasis of quality management in U.S.A. shifted to prevention of defects. It was realized that detection of defects and correction leaves a lot of scope for wastage. Prevention of defects was to be achieved by method of process control.

iii. Product Design Improvement. Process controls were unable to remove those defects which were inherent in product design and engineering. Hence product improvement, product design and product planning were emphasized to meet the changing requirements of customers. All these were to be achieved with the involvement of employees.

iv. Creativity and Innovation. Quality circles were introduced to enlist the active support of workers in quality improvement. Total Quality Management became the catch word not only in Japan, but also in other countries of the world.

Thus three things are essential for achieving total quality in order to meet the changing needs of the customers.

i) Meeting customers ‘requirement

ii)Continuous improvement through management process;

iii)Involvement of all employees

5.  OBJECTIVES OF TOTAL QUALITY MANAGEMENT

1. The primary objectives and the key to food service organization’s survival and growth is meeting the customer’s requirements. Customers are never regarded as people to whom the company presents its product in a ‘take it or leave it’ spirit. It considers customers or clients with supreme act of faith. In any food service establishments if the customers are satisfied it is believed that they will patronize and will make the organization to survive and grow.

2. Next is to hold TQM as the continuous improvement of quality. The management should stimulate the employees in becoming increasingly competent and creative.

3. Thirdly, TQM aims at developing the relationship of openness and trust among the employees at all levels in the organization.

The objectives of TQM can also be briefed as

• to invent,
• to improve service with creativity and  innovative ideas, capacity building
• to increase the profit by improvement in quality
• to find out the needs and  meet the requirements of customer
• to keep the customers in contented position
• to develop trust and openness among all employees at all levels
• to bring down the mistakes in all areas
• to find out and recognise the mistakes in earlier stage itself
• to prevent any mistakes as preventive step
• to avoid any wastage
• to increase productivity.
• to increase profitability.

7.    NEED AND SIGNIFICANCE OF TOTAL QUALITY MANAGEMENT

The following benefits can be derived from a sound TQM programme:

i)Total Quality Management brings quality consciousness in the food service organizations which encourage production of quality of products and services.

ii)TQM helps in providing greater satisfaction to the consumers by meeting their requirements and desires. As satisfied consumers are a free marketing agent and, the sales will increase.

iii)It creates a good public image of the food service establishments by helping it to provide goods and services of higher quality to the society.

iv) Since the wastages are reduced to the minimum, cost of production is reduced and profitability is increased. The customers could be provided goods at lower prices. The competitive position of the firm in the market is improved.

v)The employees feel highly motivated and are committed to higher quality. Because of the public image of the firm and its goodwill in the market their morale is also higher.

8.   ELEMENTS OR COMPONENTS OR PRINCIPLES OF TOTAL QUALITY MANAGEMENT

The five elements or components or principles of TQM are stated as below:

i.Customer Orientation. ‘Customer’ means every user of a product or service and not only the end-user in terms of TQM. For example, a product that passes through a number of stages, every next stage is a customer for the preceding stage. TQM aims at satisfying the requirements of customers which never remain constant, but keep on changing with the change in time, environments, circumstances, needs, fashion, etc.

ii.Continuous Improvement. The change in customer’ requirements may be in terms of desire for better quality of product/ services, bigger size, reduced cost, etc. So a producer has to cope up with new requirements. A new process may have to be developed, or it may require a new product design. In order to retain customers, introduction of new packaging material or eco friendly concepts in housekeeping or in the food service will enable management to keep track on continuous improvement based on the desires of the customers.

The advancement in technology is another important factor in improving the quality. For example, technology has reached a point where the customer can input his requests and robotic machinery can prepare and serve the meal. More than a decade ago robots served customers in establishments as in the Yo! Sushi restaurant in London UK. Production equipment are already interfaced with POS and PCs. Equipment such as ovens can be linked to a PC for reporting, the equipment are installed with temperature and humidity probes and the PC can regulate these, ensuring the food is cooked to perfection and within the health and safety standards. Digital timers can help Chefs keep track of time in a busy kitchen. This can reduce over cooked food and wastage.

iii.Employees’ Involvement. As said above, TQM requires a continuous improvement in the quality of work of employees through training and development. The employees must also be conscious about the need for improvement in the quality of work. Quality circles are an outstanding example in this regard. It is because of employees’ involvement in improvement of quality that TQM is referred to as people’s process.

To serve the purpose fully TQM should be the concern of all managers and workers in the organization. The people at middle and lower levels must be taken into confidence before launching the TQM. It typically involves an increased awareness through training and motivation. TQM signifies an understanding and performance of role by each and every individual in the pursuit of quality improvement. A positive attitude must be ingrained in minds of the employees towards customer and in constant enhancement of quality.

iv.Strategic Approach to Improvement – Management should adopt a strategic approach towards quality improvement to achieve their goals, vision, and mission. A strategic plan is very necessary to ensure quality becomes the core aspect of all processes of food service establishment.

v.Integrated System – A food service industry comprise of various departments with different functionality purposes. These functionalities are interconnected with various horizontal processes that TQM focuses on. Everyone in the organization should have a thorough understanding of the quality policies, standards, objectives, and important processes. It is very important to promote a quality work culture as it helps to achieve excellence and surpass customer expectations. An integrated system ensures continual improvement and helps food service industries achieve a competitive edge.

vi.Decision Making – Data from the performance measurement of processes indicates the current health of the organization. For efficient TQM, food service organizations must collect and analyze data to improve quality, decision making accuracy, and forecasts. The decision making must be statistically and situational based in order to avoid any room for emotional based decisions.

• Communications – Communication helps to motivate employees and improve their morale during routine daily operations and plays a crucial role in TQM. Employees need to be involved as much as possible in the day to day operations and decision making process to really give them a sense of empowerment. This creates the environment of success and unity and helps to drive the results the TQM process can achieve.

Successful implementation of TQM requires immense efforts, time, courage, and patience. Organizations can witness improved quality across all major processes and departments, higher customer retention, higher revenue due to improved sales, and global brand recognition.

The figure 1 projects the principles involved in TQM

9. IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT

W.E. Deming, an internationally renowned quality expert, known as father of TQM, proposed a Plan – Do – Check – Act cycle(PDCA) for the implementation of TQM in any organization. The steps in PDCA cycle as shown in Figure 2.

Plan: Collect reviews from the customers, Analyze to develop a plan for the changes to be tried with the understanding of policies and objectives of the organization and method to achieve .

DO: Implement the changes and actions proposed in the plan.

Check: After implementation find out the impacts and results.

Act: incorporate the change has given satisfactory results and act accordingly in order to prevent undesired effects.

In simple means the process in TQM can be listed as follows:

1. Lay down policies and objectives of TQM. Determine what the customer is supposed to receive and what they are actually receiving.

2.  Chalk out the methods of achieves TQM Objectives.

3.Educate and train workers and managers to understand and meet the requirements of TQM.

4.  Start the operation and find out the causes of non-conformance to quality standards.

5.Analyze results and determine the consequences of non-conformance and place the report before the top management.

6.Prevent undesired effects in Quality improvement. Establish personal relationships with employees so that they can voice their concerns and ideas.

7.Suggest measures for improvement of methods and design in future.

For example the Process of TQM in production area of a food service organization need to follow the steps discussed below in order to improve the quality and to satisfy the customers.

A.  Emphasis on

a)  Identify the problem

b)  Analyze the process

c)  Look into flexibility

d)  Customer focus

e) Learn from best

f) Prevention Vs inspection

g)Emphasis on causes what not

h) Management involvement

i) Team approach

j) Removal of Waste

B. Quality cycle in Action

a)  Measure the performance by routine system

b)  Standards required Nutritional standard for menus Specification on purchase

Order, Receipt, Inventory Control

c) Storage

d) Distribution & Transport an Production

e) Standard recipes

f) Ingredient control

g) Cost per meal

    a) Temperature of served

b) Microbiological Limit

c) Cleanliness & sanitization

d)Hygienic food handling

e)Calibration of equipment

f) HACCP

g) Personal/Training

h)  Cost / Meal

a)Any issues

b)Identify chances for improvement

c)Reaching standard

a) Action with suitable and practical solutions.

b) Take into consideration the needs of customers, staff, service & organization.

10. REQUIREMENTS OF SUCCESS IN TQM

The following guidelines should be followed for the successful implementation of TQM.

1. The objectives and policies of the food service organization should reflect its commitment to quality as a philosophy of customer satisfaction.

2. The TQM philosophy must be effectively communicated to each and every employee and department so that it is clearly understood throughout the organization.

3. The TQM programme should be properly designed to meet the requirements of the customers.

4.  The participation of all employees should be encouraged so that innovative ideas are put forward by the employees programme through proper education of workers.

5. Worker and managers should be given the necessary training for the effective implementation of TQM.

6. TQM must involve product design and improvement, adopt new technology, system and procedures.

7. TQM should be considered a continuous programme as the requirements of customers keep on changing. TQM should also try to integrate the operations of various departments.

11. TQM IN INDIA

India awakened to the adoption of the concept of TQM in the late 1980s though ‘quality control’ has been emphasized since the adoption of the Industrial Policy Resolution, 1956. The introduction of liberalization measures had the immediate effect of opening up India industries, to international competition. Many of the organizations in India have started augmenting ways and mean of creating quality consciousness and involving employees at all levels in Quality improvement process. Several companies in India have even acquired the ISO-9000 certification, the European Standard of Quality for product and process. In India, consultancy and guidance in connection with registration for ISO : 9000 series standards is provided by :

1. Bureau of Indian Standards(BIS)

2. National Productivity Council.

3. National Centre for Quality Management

4.Chambers of Commerce and Industry such as FICCI,CII,ASSOCHAM and AIMO.

The implementation of TQM has to be a specialized job lest it should end up in a chaos. In India, the concept of TQM is new; the experts on TQM are not many. Therefore it is essential that a responsible person within the organization should be given adequate training.

11.1 ISO 9000 IN INDIA

Certain bodies have started operations in India, as number of organizations are desirous of getting ISO 9000 is increasing. Also there is increasing growth in number of people providing ISO related services .CII (Confederation of Indian Industry) is the one that has started to provide services.

11.1.1 THE ROLE OF BIS IN ISO 9000

BIS is the National Standards of Body of India and founder member of ISO. The Technical committee (TC) number 176(ISO/TC176), and its sub- committees of ISO are responsible for the development of ISO 9000 standards. Quality and industry experts from India including BIS officers participate in the meetings of the Technical Committee ISO/TC 176 and its sub-committees.

ISO 9000 includes the following basic Five standards

ISO -9000 Quality Management and Quality Assurance Standards- Guidelines for selection and use.

ISO – 9001 Quality systems- A quality assurance in design, production , installation and servicing of products.

ISO -9002 Quality Systems- It covers quality assurance in production , installation and manufacture (or a specific service such as QC /QA laboratory) of the product . ISO -9003 Quality Systems – It covers the ‘final inspection’ of the product only.

ISO -9004 Quality management and quality system elements- It is an “Internal Use” standard – it cannot be registered and is not subject to the third party audits.

11.2 PROCEDURE OF ISO: 9000 REGISTRATION

i)Management commitment .The top management decision to start the implementation of ISO :9000 standard in the company is the prime requirement  .

ii) Selection of Model. The next would be to select the model which is applicable to the organization.

iii) Steering Group and Sub-Group. The management must appoint a steering       group and a number of sub- groups to identify the activities to be carried out.

iv)Preparation of check-list. The steering group will prepare a check list, and categorise the elements(a)which are already in practice (b) which are in practice but need change or improvement, and (c) which are not in practice.

v) Preparation of Quality Manual. At this stage, a quality manual is prepared which contains all documents required for ISO registration.

vi)Training of Leaders and workers. Training course in the ISO: 9000 Standards would be necessary for the co-ordinators and group leaders.

vii)Inter Audit. It involves the appraisal of the quality assurance system as documented by the organization.

viii)Trial Audit. Next is to apply to Bureau of Indian Standards or any other certifying body for trial audit and get their recommendations.

ix)Application for Registration. Once the trail audit’s result positive, the organisation can apply for registration to BIS/or any other internationally recognised body.

x)Adequacy Audit. After the application has been accepted, the documented quality system will be examined by the BIS or any other recognised certifying body for verifying the conformance to the relevant standard.

xi) Grant of licence. The corrective action taken by the applicant on the discrepancies observed during assessment will have to be verified by the BIS.

11.3 Benefits of ISO: 9000

If a business concern gets ISO-9000 certification, it will draw the following advantages:

(i) It is an internationally accepted series of quality system standards. It provide for competitive edge in the domestic as well as international market.

(ii) It helps in achieving consistency, economy and cost effectiveness through standardization of operations.

(iii) It increases customer’s confidence in the supplier through quality system transparency.

(iv) It is a versatile marketing tool in today’s international scenario.

(v) It paves the way for total quality management (TQM) since it ensures continuous quality improvement to meet the requirements of customers.

11.4 Limitation of ISO: 9000

Few disadvantages are:

(i) The implementation demands very much on resources. The formulating and documenting of the system is time consuming, and may involve considerable cost.

(ii) Formulation, documentation, assessment and registration are quite expensive. Only the big firms can afford ISO : 9000 certification.

(iii) Unless carefully interpreted and planned, the system can become burdensome quite often obstructing normal operations.

(iv) The system to change attitudes and accept new standard may be resisted by the workers and even by the mangers, who are not open to new ideas.

SUMMARY

The prime objective of understanding TQM is to enable the learner to implement frame work in hotel industry. It will also enable the mangers to adopt correct process so as to achieve continual improvement. Thus a significant contribution can be developed in TQM and the quality can be increased in service establishments.

REFERENCES

1. Dr.T.N.Chhabra, Principles & Practice of Management , Published by Dhanpat Rai & Co.(P)Ltd,Reprint 2006,ISBN: 81-7700-032-2, p 201- 211
2. R D Agarwal , Organisation and management , Published by Tata McGraw-Hill Publishing company limited, ISBN 0-07-451506-3, P-65 – 70