Australian Quality Management

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TOTAL QUALITY MANAGEMENT IMPLEMENTATION IN BIGOS FAST FOOD

CHAIN

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Word Count: 3291 words

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Executive Summary

The report outlines a successful procedural implementation of Total Quality Management

in Bigos fast food chain by examining its fundamental principles and adoption of an action plan.

After the implementation, the effects are then assessed. Deming’s Cycle was adopted to facilitate

the process of implementation. Total Quality Management was found to be effective to Bigos, as

customer expectation was exceeded. Also, employees felt involved in decision making and

rewarded for their performance.

In conclusion, the study findings contribute to the improvement of the service quality theory and

provide a clear understanding of the management of Bigos. Its outcome confirms the advantages

of implementing Total Quality Management. Therefore, it is recommended that the both the

management and the employees should uphold the aspects of Total Quality Management

implementation so as attain customer satisfaction.

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Table of Contents

EXECUTIVE SUMMARY……………………………………………………………………………………………………………………………2

Chapter 1: INTRODUCTION ........................................................................................................................... 5

1.1.0 Background of study ................................................................................................................. 5

Total Quality Management is a managerial philosophy that focuses on the work process and people,

with customer satisfaction and improvement of the organizational performances. It involves proper

coordination of work processes that enable improvement in all business units with an objective of

reducing complaints and meeting their expectations. Total Quality ....................................................... 5

1.1.1Background of the problem .............................................................................................................. 5

1.1.2Purpose of the study ......................................................................................................................... 6

1.1.3Theory ............................................................................................................................................... 6

1.1.4 Research Motivation ........................................................................................................................ 7

1.1.5 Objectives and the Goals of the study. ............................................................................................ 7

1.1.6Significance of the study ................................................................................................................... 8

Chapter 2: LITERATURE REVIEW ................................................................................................................... 9

2.1 Introduction ........................................................................................................................................ 9

2.2 Total Quality Management Definitions ............................................................................................... 9

2.3 Principles of Total Quality Management .......................................................................................... 10

2.4 Integrated systems. ........................................................................................................................... 12

2.5 Stages of Implementing Total Quality Management ....................................................................... 12

2.5.2 Quality Assurance ...................................................................................................................... 13

2.5.3 Quality Control ........................................................................................................................... 13

2.6 Benefits of Total Quality Management ............................................................................................. 13

Chapter 3: METHODOLOGY ........................................................................................................................ 14

3.1 Pilot Study ......................................................................................................................................... 14

3.2 Proposed Framework ........................................................................................................................ 14

3.2.1 DEMING CYCLE IN BIGOS TOTAL QUALITY MANAGEMENT IMPLEMENTATION ........................ 14

3.3 The components of PDCA/PDSA include the following. ............................................................... 14

3.4 Activities Undertaken in the Stages .............................................................................................. 16

3.4.1Proposed Framework Variables .................................................................................................. 17

Chapter 4: ANALYSIS AND RESULTS ............................................................................................................ 19

4.1 Data Sources ..................................................................................................................................... 19

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4.2 Data Analysis ..................................................................................................................................... 19

4.3 Results. .............................................................................................................................................. 19

4.4 Macro Analysis .................................................................................................................................. 20

4.5 The Final Framework of Total Quality Management Implementation In Bigos Food Chain ........... 21

Chapter 5: Conclusion, Limitations and, Recommendations ..................................................................... 22

5.1 Conclusion ......................................................................................................................................... 22

5.2 Limitations ......................................................................................................................................... 22

5.3 Recommendations ............................................................................................................................ 22

References ................................................................................................................................................... 23

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Chapter 1: INTRODUCTION

With the current stiff competition, companies strive to stay focused on the market by offering

competitive products and services of quality. Research shows that quality service is the most

paramount aspect of retaining, attracting, and attaining customer satisfaction. It is, therefore,

essential for firms to evaluate the quality of their services so as to remain competitive. The paper

brings out a successful implementation of TQM in Bigos food chain by use of the Deming Cycle.

The effects of implementation are henceforth assessed.

1.1.0 Background of study

Total Quality Management is a managerial philosophy that focuses on the work

process and people, with customer satisfaction and improvement of the

organizational performances. It involves proper coordination of work processes

that enable improvement in all business units with an objective of reducing

complaints and meeting their expectations. Total Quality

1.1.1Background of the problem

The performance Total Quality Management of Bigos fast food chain and its initial non-Total

Quality Management is measured while statistically comparing the major performance indices;

customer satisfaction, employee satisfaction and effectiveness of operations. It is done to show

the relationship between Total Quality Management and performances and to outline the need

for the total adoption of Total Quality Management by Bigos fast food chain.

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1.1.2Purpose of the study

The purpose of the proposal is to highlight the benefits of implementing Total Quality

Management in Bigos by analyzing the basic principles of Total Quality Management in the

hotel industry. The study also assesses the effects of implementing Total Quality Management on

the performance indicators.

1.1.3Theory

The paper outlined the various aspects of quality as viewed and defined by various authors. Also,

the benefits and disadvantages of implementing Total Quality Management are reviewed.

Management emphasizes of the totality of quality in the organization with the goal of reducing

waste and work to cut on cost by increasing efficiency in production.

TQM applies to all organizations irrespective of their sizes and purpose. However, the

effectiveness of Total Quality Management has been hindered with by the by the noncompliance

of its procedures and implementation principles. Most organizations have encountered failure in

meeting their prospected targets from implementing TQM ideology due to the halfhearted

approach to implementing the principles in bits. There is a need to continue reinforcing the

benefits of the implementation of TQM, especially in the developing industries, such as the

Bigos where the adoption of these principles seems far realized. The local area's fast food hotels

outline the shortcomings of the industry in their quest to make the profit while compromising

quality. With the current government reforms, the aspects of competition are rapidly changing

from their initial state. Therefore, Bigos has to look internally its operational procedures and

change them strategically so as to meet the challenges.

The problem of poor services has consistently characterized Bigos food chain, with

different stakeholders accusing each other of incompetence in service delivery, leading to

complaints from customers. The aim of the research is to find out the quality level of Bigos, the

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problems with the implementation of TQM and, also assess its impacts in the food chain. Service

quality is significant in the hotel industry as it is a key determinant of competitiveness.

Therefore, to gain this advantage, Bigos food chain should outshine their competitors by

providing quality services that surpass the expectations of the customers.

1.1.4 Research Motivation

The change in behavior of the consumers has made providers to produce goods and services that

meet the requirements of buyers. Therefore, it is a concern of Bigos food chain, just like other

organizations, to satisfy customers through improved service delivery that meets or exceeds their

requirements. The emergence of new food chains in the market has changed the industry as most

of them have adopted the ideology of Total Quality Management. Therefore, Bigos food chain

will lose customers if it does not take seriously the approach of TQM, which at long last will

drive the company out of business. Thus, Bigos has to adopt a new approach to service delivery

by changing its culture and structure. This, according to Sila (2007), Total Quality Management

helps in improving product quality, reduces wastage and, rework by creating a stable production

process. He also argued that Total Quality Management will limit the cost and time of

production.

1.1.5 Objectives and the Goals of the study.

The study seeks to outline the effects and the benefits of Total Quality Management in Bigos by

analyzing the basic principles of Total Quality Management in the food chain. This is done by

statistically comparing the performance of Bigos under Total Quality Management and Bigos

under non-Total Quality Management. The values to be analyzed include

 Customer satisfaction.

 Employee satisfaction, and

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 The effectiveness of operation.

In line with the above, the specific objectives include assessing the importance of quality

towards customers and the importance of Total Quality Management towards retaining a good

rapport with the customers.

1.1.6Significance of the study

Quality is a vital aspect of any industry. It is the quality that connects Bigos to customers,

hence motivating, satisfying and retaining them. The study is, therefore, important to analyze

how Total Quality Management will influence customer relationship with Bigos in the service

environment. The paper is, therefore, helpful to Bigos in focusing to Total Quality

Management so as to establish a competitive customer rapport.

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Chapter 2: LITERATURE REVIEW

2.1 Introduction

The chapter evaluates the notion of quality by accessing the various definitions. Since the study

is on implementation and the impacts of Total Quality Management on service delivery, the

concepts of service quality are assessed by the food chain and the customers. Also discussed are

the stages and principles of Total Quality Management.

2.2 Total Quality Management Definitions

 Total

This refers to everyone within the organization is involved (Raymond, 2013)in the

continuous improvement of the company in all functional areas and levels.

 Quality

This refers to productivity, cost, timely delivery, and total customer satisfaction.

 Total Quality

Everyone in Bigos food chain is committed to the quality of the products by performing

the required duties using the available resources to provide value and quality to the

customers.

 Management

The executive leadership of Bigos if fully committed to achieving quality and customer

satisfaction.

 Total Quality Management. Total Quality Management is defined as an evolving

system of practices, tools and methods of training for managing organizations to offer

customer satisfaction (Klefsjö, 2000 p. 242). Also, it as an integrated effort to gain

continuously a competitive advantage in improving all business aspects and striving for

customer satisfaction (Rezaee, 1996).

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 Service Quality. The three themes of service quality as; attribute theory, customer

satisfaction theory, and interaction theory. According to the attribute theory, quality

reflects the characteristics of the service system hence the product quality is applied

towards services. Also, management has a vital control over the inputs that defines the

attribute theory (Hassam, et al., 2003). Customer satisfaction theory is an approach that

pertains service quality as a distinction between the expected quality of a service and the

quality of reality. Thus, according to Hassam and Kerr (2013), as the attribute theory

focuses on the importance of technical aspects of the production procedure, customer

satisfaction focuses on the customer's point-of-view. Interaction theory lastly refers to

service quality as shared experience and gain by the participants. Therefore, (Hassam, et

al., 2003) service quality materializes through the experience.

 Total Quality Management and the Customer. Mehra, Hoffman and Sirias (2001)

stated that the Total Quality Management is customer oriented, and showed its

significance on customer focus. They acknowledge the element of customer loyalty and

satisfaction, hence, for Bigos to improve customer focus, it should emphasize on

satisfying customers. For an organization like Bigos planning to implement Total Quality

Management, achieving customer satisfaction is paramount to customer focus in the

future (Chien, et al., 2002).

2.3 Principles of Total Quality Management

Total Quality Management is a management approach applied by Bigos to focus the

improvement of quality and performance of all department and functions and processes. This

enables the delivery of quality services that exceeds the customer requirements (Raymond,

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2013). The following are the key principles of Total Quality Management according to Raymond

(2013).

I. Customer centric approach. According to Raymond (2013), consumers are the

ultimate deciders of whether the product or service is high quality or not. Therefore,

Bigos should implement Total Quality Management across all sections with the focus on

customers.

II. Employee involvement. Employees are empowered if they are allowed to participate

in achieving goals and objectives of Bigos. Their involvement in decision making

according to Raymond (2013) makes the workspace open without fear.

III. Continual Improvement. This is a major component that results to improved and

higher quality processes. This will ensure that Bigos finds a new way and technique of

producing products and to be more competitive as well as surpassing customers’

expectations.

IV. A strategic approach to improvement. This is a major component that results to

improved and higher quality processes. This will ensure that Bigos finds a new way and

technique of producing products and to be more competitive as well as surpassing

customers' expectations.

V. Decision making. Bigos should collect and analyze data so as to enhance the process

of decision making and forecasts.

VI. Communications. Communication according to Raymond (2013) motivates and

improves employee morale. Bigos should involve its employees in daily operations and

to make decisions as a sense of empowerment.

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2.4 Integrated systems.

An integrated system in Bigos will ensure continual improvement and achievement of a

competitive edge. According to Raymond (2013), everybody should have an understanding

of company policies, standards, and major processes.

2.5 Stages of Implementing Total Quality Management

TOTAL QUALITY MANAGEMENT

Policy Deployment

Involves suppliers and customers

All operations

Process management

Performance measurement

Teamwork

Employee involvement

QUALITY ASSURANCE

Quality system development

Advanced quality planning

Comprehensive quality manuals

Quality cost

Involvement of nonproductive operation

QUALITY CONTROL

Developing Quality Manuals

Processing performance data

Self-inspection

Testing products

Use of basic statistics

Basic planning

INSPECTION

Salvage

Sorting, Grading, and re-blending

Corrective actions

Identify sources of non-conformance

2.5.1 Inspection.

This is an activity of measuring, testing and examining the characteristics of a product or

service in comparison with the specific requirements so as to determine conformity (ISO

8402, 1986).

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2.5.2 Quality Assurance

Is the principle by which business production processes are designed with an aim of producing

standard or products of high-quality. It is defined as systematically planned activities such as

documentation to avoid quality problems.

2.5.3 Quality Control

These are operational techniques used to achieve quality requirements. This is, therefore, a

conventional way that Bigos will apply to manage quality, check, and review work that has been

done through inspection of products and services

2.6 Benefits of Total Quality Management

Implementing Total Quality Management effectively results in customer satisfaction

(Omanchovu, et al., 1994). Quality has enhanced customer loyalty to Bigos food chain through

customer satisfaction. This in turn has generated new customers to the chain in the past one year.

Omachovu and Ross (1994) advocated the importance of the word of mouth which has helped

cut cost and provided a competitive edge to Bigos food chain.

Fig. 1. An adaptation of the effects of quality management. Adapted from: (Omanchovu,

et al., 1994)

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Chapter 3: METHODOLOGY

3.1 Pilot Study

Before starting the implementation process in Bigos, I conducted a pilot study to ascertain and to

ensure that the method chosen; the Deming Cycle was reliable. The study also helped me in

adjusting the objectives hence serving as a practice.

3.2 Proposed Framework

3.2.1 DEMING CYCLE IN BIGOS TOTAL QUALITY MANAGEMENT IMPLEMENTATION

The Deming cycle is also called the PDCA/PDSC cycle.

Plan-Do-Check-Act is a synonym of Plan-Do-Study-Act cycle (Misra, 2014 p. 1351). This is a

continuous cycling process where one component follows the other. The model has proved

fruitful in the analysis of Bigos’ Total Quality Management resulting to ultimate quality

assurance to the consumers. According to Misra (2014), the tool has enhanced marketing

techniques for professionals who have brought their plans to reality. The results and the action

stage are compared to the reference target, and the difference between them mentioned and

corrected (Sokovic, et al., 2010).

3.3 The components of PDCA/PDSA include the following.

 Pan. As a manager, I planned the activities before declaring their goals and

objectives. It was done by analyzing the process that was in place then making the

right plan to correct the problems within the process.

 Do. After planning, implementation according to Misra (2014) was the next stage. It

was done on a full-fledged basis while documenting all the changes made. The

records according to Misra (2014) help as a corrective measure in the next

implementation.

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 Study/Check. The information gathered from the previous stage was used as a

brainstorming methodology. According to Misra (2014), the evaluation helps to

identify whether the established goals are achievable. The goals were found to be

according to plan.

 Act. This is the stage in which I brought all the three phases above and the

information gathered into reality. However, this is again the beginning of the first

phase. The feasibility of the plan for Bigos was checked at this stage and the rate of

implementation assessed.

Fig. 2. Deming Cycle

Fig. 3. PDCA Cycle in Continuous Movement. Adapted from (Sokovic, et al., 2010)

PLAN

ACT

CHECK

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Fig. 4. PDCA Cycle for Quality Improvement. Adapted from (Sokovic, et al., 2010)

Fig. 5. Implementation of Deming’s 14 points: Adapted from (Barsalou, 2015)

3.4 Activities Undertaken in the Stages

 Action Stage.

 I ensured non-conformity was well managed.

 ISO 9001 Certification.

 Cultural and company aspects.

 Planned on the environmental management system.

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 Integration of the management system

 Planning stage

 I did plan the quality aspects and objectives.

 Planning statutory considerations.

 Training for quality

 Planning on product liability and product safety.

 Checking Stage

 Working out statistics.

 Controlling and managing the charts

 Managing the Inspection of measurement equipment.

 Handling quality audits and review.

 Doing Stage

 Handling procurement.

 Ensuring timely supplies

 Documentation and record keeping, among other duties.

3.4.1Proposed Framework Variables

 Leadership

The assumption made in the most important aspect of management. Without strong

leadership to control the food chain and monitor the progress of Total Quality Management,

improvement efforts will not be successful.

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 Quality planning

I emphasized more on strategic quality management as one critical variable for the food

chain to succeed in transforming to Total Quality Management. The implementation process

focuses on the importance of quality planning and customers (Rabih, 1998).

 Quality Structure

A quality structure according to Rabih (1998) should enhance employee training so as to

involve them in the implementation process. To show that Bigos was committed to the

implementation process, I gave the quality department a higher rank in the hierarchy so as to

facilitate the process (Rabih, 1998).

 Quality culture

Change of culture of Bigos is one activity undertaken to enhance the implementation of Total

Quality Management. According to Rabih (1998), the participation of employees in the

development process enhances leadership support. Hence, the culture will develop that will

uphold Total Quality Management.

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Chapter 4: ANALYSIS AND RESULTS

4.1 Data Sources

The analysis of data adopted both qualitative and quantitative methods. Data was collected using

both primary and secondary sources. Both questionnaires and interview were used in collecting

primary data, whereas secondary information was acquired from the hotel records, journals, and

online sources.

4.2 Data Analysis

The collected data was reviewed to ensure the vital points remained meaningful and reduced to

outline the components for study. Information was the put into tables for quick interpretation.

Key variables were identified and empirical results compared to the proposed Total Quality

Management implementation framework (Rabih, 1998). The measurement was considered

sufficient as it was grounded it the Total Quality Management theory.

4.3 Results.

Results of the study were summarized in the table below.

Total Quality Management variables

Findings

1. Leadership

-quality vision

-management commitment

- Leaders were supported by senior mgmt.

- Bigos food chain Vision provided.

2. Quality Planning

-focus on customers

-Continuous improvement

-the system perspective.

-There was a written draft plan.

-customer service enhanced

3. Quality structure

-Empowerment of employees

-Quality in departments function

-Formal training was offered.

-position of the organization chart changed

4. Bigos commitment to the process

-the senior management supported.

- Financial data commitment is available.

5. Successful Total Quality

Management effort

-Total Quality Management goals were

achieved on timely basis

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4.4 Macro Analysis

 Most of the staff members now feel that the organization is quality conscious towards

them. Hence increasing their commitment towards their work the organization.

 After the implementation of Total Quality Management, most employees believe they

have proper and the required information about the policies and the practices of Bigos

fast foods chain. However, some feel that good communication is limited.

 Employees and the staff, in general, believe that their work is well measured, appreciated

and rewarded.

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4.5 The Final Framework of Total Quality Management Implementation In

Bigos Food Chain

Quality planning

-customer focus

-continuous

improvement

-system perspective

Leadership

-Quality Vision

-Sr. Mgmt. committed

-leadership style

improved

Quality structure

-Employee

empowerment

-quality dept. function

Supplier relationship

-community involvement

Bigos commitment to

TQM

TQM inhibitors

- Labor

relationship

- System

perspective

Reduction of Bigos commitment to

TQM

SUCCESSFUL TQM

Bigos culture

-existing

-quality

Quality activities

-work teams

-Mgmt. by facts

Evaluation

Follow-ups

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Chapter 5: Conclusion, Limitations and, Recommendations

5.1 Conclusion

The study findings contribute to the improvement of the service quality theory and provide a

clear understanding of the management of Bigos. Its outcome confirms the advantages of

implementing Total Quality Management. The result proves that Total Quality Management is a

strategic tool that Bigos fast food chain should use to remain competitive. Also, it was

discovered that everyone in the food chain must participate for Total Quality Management

implementation to be effective. These include the management, employees, and the customers.

Implementation process requires enormous efforts, time and, patience.

5.2 Limitations

Representative sampling techniques should have been applied to acquire random sampling

technique, however, due to limited time and cost, a non-probability method was adopted to

enable quick acquisition of information from the respondents. The research did not also take into

account factors outside Total Quality Management implementation that influence the

performance of Bigos. These include political factors, brand image and access to the fund.

5.3 Recommendations

It is vital to offer employees an opportunity to express their ideas about Bigos. It was important

for the management to state clearly their vision, policy, mission, and the goals towards its

employees and customers. The management should involve the employees in managerial

activities so as to achieve transparency. It helps employees to win the confidence of the

organization. The role of each position in the food chain should be clearly defined to help

individuals plan their work accordingly.

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References

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