Total quality managementColes Supermarkets
Description of the assessment task
The purpose of this individual assignment is to provide the student with an opportunity to demonstrate his/her mastery of one or more related topics discussed during this module and apply them in the context of the topic of this assignment.
The student is required to select ONE question from the list below and submit a substantiated answer of between 1500 and 2500 words.
1. Flow charts, otherwise known as process maps, are an essential tool of quality management systems and are a prerequisit of the ISO organisation for accreditation. Watch the YouTube video on this subject by Eugene O’Loughlin.at; https://www.youtube.com/watch?v=hN9xemJYwos. and consult at least two other sources to understand the concept. Discuss the advantages and disadvantages of creating flow charts of all processes in an organisation and then create a flow chart to show how you prepare an evening meal for two people.
2. There is no universal definition of quality. Our opinion of what makes “Good Quality” will depend on many factors such as, but not limited to culture, availability, our relation to the goods or services in question, peer group pressure, experiences and time. Examine the role of time in relation to the concept of “good quality”. Why is it that goods or services that were once considered to be of good quality are no longer seen as such? Give at least three examples to support your answer.
3. In today’s competitive world producing or selling a product that might have excellent physical properties and high manufacturing standards i.e. the product itself is considered to be of excellent quality, is not sufficient for an organisation to be commercially successful. Every aspect of the customer interface with the organisation must be in order. To be competitive organisations need to embrace the concept of TQM. Do some research on this concept and explain what TQM is. Show how an organisation you are familiar with could apply this concept to improve customer service in at least three areas.
4. Our society is becoming more and more aware of the environmental impact of the manufactured products we consume. Not only of the products themselves but also of the manufacturing processes and even such issues as supply sources, packaging and distribution methods. This evironmental element is now playing a role in how we regard the quality of products. There is a trend towards more responsible provision of goods. This is often called “green manufacturing”. Do some research on this subject and select a product that you are familiar with and suggest at least three ways in which it could be improved.
5. Benchmarking is a way of comparing a product (or service) with competitive products that are available in the market. Manufacturers usually select the most popular brands or the market leaders to compare their product with and then try to improve their product to match or outperform their competitors. Benchmarking is not without its problems and if incorrectly carried out can cause manufacturers to reach the wrong conclusions.Research this concept and explain what problems organisations canencounter when benchmarking their products. Illustrate your answer with actual examples.
6. It is a fact that quality assurance is better than quality control. If organisations have quality management systems in place it is argued that they are more able to produce goods that conform with the quality requirements of their customers. With today’s extended, international supply chains it is more important than ever to select suppliers with recognised, accredited quality management systems in place. One such system is ISO 9000. Watch the YouTube video by eduCBA at https://www.youtube.com/watch?v=BJNOvHYVL6kand consult at least two other sources. Will an organisation with an ISO certificate produce goods of a higher standard than those without a certificate? Justify your answer.
TQM, the abbreviation of total quality management, is a persistent method that helps in examining and decreasing or abolishing the inaccuracies in developing, reorganizing supply chain management, enhancing the prospect service, and assuring that the workforce matches up the speed of the training (Khanam et al, 2016, p 2440). The sole purpose of total quality management is to include the parties in the process of production and make them liable for the class of the ultimate service or product.The renowned management consultant William Deming took on the task of developing TQM. His work left a positive impression on Japanese manufacturing. TQM might share some similarities with that of Six Sigma in the case of the expansion method, but both are different. Total quality management gives its entire concentration on the domestic instructions and methods to diminish inaccuracies whereas Six Sigma intends to decrease imperfections.TQM is a planned approach that is applied to the entire organizational administration to enhance the superiority of the organization's services and products by incessant development of domestic practices.The standards of an industry can be explained at various levels and might involve fidelity to several rules and guidelinesprevailing on a specific business’s action. It can also involve the item creation to a comprehensible norm, which might not be supported by official rules.
Coles Supermarkets in Australia is a supermarket, consumer service chain, retail company. It was established in the year 1914 by George Coles in Collingwood. Currently it has over 807 supermarkets stores. The company employs over 100,000 employees and together with Woolworths it occupies more than 80 per cent market share. It has currently opened online shopping business, known as Coles Online also operates ‘click & collect’ services.
TQM concept and competitiveness
The concept of total quality managementis highly effective in the current competitive world where customers and other relevant stakeholders have high expectations for excellent product quality. Hence for organizations to be successful its customer interface needs to be order and in turn competitive organization needs to adopt TQM as their underlying concept (Kiran, 2016). TQM is not only focused on quality of the product but enhances overall customer satisfaction as well. There is a total of eight crucial ethics of TQM to guide the organizations so that they can provide better service and for organizations to remain competitive for providing customer interface. As per the ASQ or America Society for Quality, those eight ethics of total quality management include:
Total involved employees: Every worker is engaged in the operation of an organization to pursue the business goals and incessant improvement. Total quality management is not centered on a particular section or trade unit rather it somewhat needs buy-in across the whole association.
Prospect-focus: The key objective of TQM is customer satisfaction. It evaluates the success and profit of a company’s TQM policy. When customers are satisfied, one can be assured of the company’s improvement. On the other hand, if the prospects are displeased, the organization has to think of new strategies. Process-centric: TQM needs process assessment and policies have to be formulated on the basis of the comment of the external and internal prospects.
Systematic and Strategic approach: To progress the setting which is constantly centered on the improvement methods. The policy of total quality management has to be focused and fine-tuned on the goal and objectives of the companies.
Incorporated system: A sturdy and capable TQM policy investigates on the functionality of the micro-processes across the company. It further ensures that those methods are connected to the overall aim of the company. Continual enhancement: The greatest aspect of total quality management is the concept of continual enhancement. A company must never think that the process is completed for organization issues and technologies are implemented continuously. Interaction: As TQM necessitates a considerable amount of development management, clear interaction across the company is crucial for making the TQM strategy successful.
Fact-based managerial: Analytics and data are utilized to steerthe TQM tactic and also to assure its accurate functionality for a specific organization.
TQM or Total Quality Management assures that the entire workforce comprehends the target audience efficiently before creating any alterations in the systems and methods to provide fine quality goods for satisfying the prospects well (Honarpour et al, 2018, p 800). Moreover, companies implement TQM or other quality management methods to improve the customer base and also to meet with their needs. Total Quality Management takes on the task of increasing the numbers of genuine prospects who would remain faithful towards the organization at any cost.
The quality of a product is not only determined by its reliability, durability, packaging, or delivering it fast. The prospect's overall experience with the company is also a matter of concern. The displeasure of the customer nothing but creates a business loss. In the case of the service-oriented industry, the staff requires communicating with the prospects wisely and carefully maintaining good behavior. Only then, the organization can expect to meet genuine and loyal customers. The feedback that the prospects share about the service and products offered by the specific organization can facilitate it to improve its negative sides. The organization ought to prioritize the negative comments more and act accordingly (Suwandej, 2015, p 2220). To carry out the strategies of Total Quality Management, the staff ought to come up with a concrete solution and apply them for delivering the customers with their desired services or products.
In terms of physical products, the prospects aspire the product with the following qualities:
- Easily accessible
In terms of the service industry, the prospects are contented when:
- The workers are polite and friendly
- Workers are truthful and never engage in fake promises
- Workers can be approached conveniently
- Companies take action upon customer request in proper time
- Workers are co-operative and solve customer complaints
TQM in Coles Supermarkets
Coles Supermarkets Pty Ltd is a major retailing company in Australia that abides by the principles of TQM to enhance its customer interface ad in turn customer satisfaction. There are varied areas in which adoption of TQM has facilitated improvised delivery of customer services. The customer-focused method TQM aspires to improve the business operations and tries to make a bond between the employees so they can pursue the same business goal. For TQM formulated in the developing sector, its ethics can pertain to several industries like finance, medicine banking, and so on. TQM is designed in such a way that it delivers a unified revelation for universal alteration over temporary goals.These methods can be pertained to every department like marketing, employee training, administration, production, and assist to ensure that the workforce is working to meet the company's goals. The business philosophy of total quality management accentuates on cost reduction by decreasing wastage, assisting suppliers to deliver good products and contenting the prospects with quality services and products. Firms with the ability of manufacturing low-cost good products than their alternatives will relish more advantages in fetching more customers. Incorporating TQM can assist an agency to increase competitive advantage in its operation.
Accomplishing reduced costs for attaining or manufacturing goods provides Coles with a big competitive advantage over its opposition. Coles Supermarkets not only distributes varies company products and retails it but also manufactures its own private label branded products. By adoption of total quality management, it has effectively been able to decrease its expenses.
Wal-Mart has outlined associations with the providers so that they can buy products at a discounted price that their oppositions can hardly get. As a result, Wal-Mart can offer goods at a lower cost, which has driven away many companies from the ground. Similar model has been adopted by Coles, which has successfully entered into partnership with its suppliers, by which it is able to provide its products at a much-discounted rate as against other retailers in Australia. This makes it one of the most sought-after brand name in the market.
Japanese automobile developers Honda and Toyota acquire lower healthcare expenses and worker pension comparing to Big-3 American developers Ford, General Motors. Chrysler.bThe expense per vehicle for worker profits rewarded is for Ford- $735, for GM- $1360, for Chrysler $630. However, Toyota and Honda costs per vehicle respectively $180 and $106, resulting in higher revenue for Japanese manufacturers. Additionally, Big-3 comprises of around 18,000 excess employees. Hence, Japan is a leading car manufacturer in case of reduced costs (Fu et al, 2015, p 130). Similarly, Coles in its private label branded products have been able to reduce costs substantially as against its competitors. Demand for its products have soared in Australia owing to high quality of its products and low prices. Especially in raw and frozen edible section, the company remains a market leader.
Manufacturing cost lessening
Firm aspire to decrease the expense of manufacturing their products. A big part of the good’s cost includes inefficient practices resulting in crumbed particles and returned products from displeased prospects.Through the incessant enhancement of the methods involved in creating goods or supplying services, a firm can be efficient in diminishing losses owing to misuse. It will enable the organization to sell goods at a low cost and hold good revenue at the same time. Opponents could hardly offer products at that price.Abolishing faults in a crucial objective. TQM’s expansion is a Six-Sigma approach, which strives to terminate the inaccuracies to 6 segments in a million. Attaining low-priced quality products from providers will decrease the expense. Coles have been successfully been able to adopt the same practices.
An organization's workforce and providers deliver the input which is responsible for assessing the price and class of the produced products. The agency that authorizes its workforce and assists them in accomplishing objectives will relish a competitive advantage over the rivalries that bullies their workers.
The fundamental part of delivering prospects with good products includes buying those goods from the providers or acquiring good components to prepare products with their own. A crucial attribute of Kurtusian TQM is to assist the providers in supplying value to an agency. Time and again companies bully their providers into supplying low-priced products. Wal-Mart is said to be extremely strict on providers. Sometimes he even drove some out upon denying on his demands. Other organizations have too utilized such unhelpful strategies. With a close relationship with the providers, a partnership can be provided where once can obtain quality supplies to expand the competitive advantage.
The quality services provided by the workforce help maintain product quality. Some covenants with the prospects and supply them with good services. Courteous sales representatives might help make a pleasant customer experience.Some of the organizations claim much from their workforce. The staff might be well-paid; however, they are not actually motivated. Some organizations ask the staff to smile and be friendly towards customers to sell goods even though the staff might not like it. Therefore, the agencies ought to make the staff an essential part of the organization and assist them in supplying quality work that might help you acquire great competitive advantage compared to an organization with a gloomy workforce.
A pleased and satisfied customer will repeatedly return to the specific company to invest on their offered products and services. In fact, they will recommend the company’s name to others. It is essential for both corporate and individual sales. In terms of trading goods or supplying products to other organizations, a particular company requires ensuring the quality of the materials and convincing them to count on it in the imminent future. Pleasing the customers is the ultimate benefit a company can ever relish.
A company that manufactures low-priced goods over their oppositions maintaining the quality of the products can satisfy the customer needs. Therefore, it will encompass an additional benefit over the opposition. The business ideology of total quality management is to content the prospects with good services and products, decreasing the misuse, and authorizing the staff and providers areprocesses of accomplishing business objectives.
Fu, S.L., Chou, S.Y., Chen, C.K. and Wang, C.W., 2015. Assessment and cultivation of total quality management organisational culture–an empirical investigation. Total Quality Management & Business Excellence, 26(1-2), pp.123-139.
Honarpour, A., Jusoh, A. and Md Nor, K., 2018. Total quality management, knowledge management, and innovation: an empirical study in R&D units. Total Quality Management & Business Excellence, 29(7-8), pp.798-816.
Khanam, S., Siddiqui, J. and Talib, F., 2016. Role of information technology in total quality management: a literature review. Khanam, S, Siddiqui, J. and Talib, F.(2013),“Role of Information Technology in Total Quality Management: A Literature Review”, International Journal of Advanced Research in Computer Engineering and Technology, 2(8), pp.2433-2445.
Kiran, D.R., 2016. Total quality management: Key concepts and case studies. Butterworth-Heinemann. Suwandej, N., 2015. Factors influencing total quality management. Procedia-Social and Behavioral Sciences, 197, pp.2215-2222.