Business Planning of Implementing TQM at Mars Car Dealers - Case Study Example

Business plan of implementing TQM Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Executive summary It is an apparent fact that economic liberalization and intensified global competition have seen the elevation of quality into becoming one of the most fundamental factors in the efforts by diverse organizations to achieve sustained competitive advantage. Thus, an organization which is highly proactive in producing a good products or services is strategically niched in retaining consumers. On the other hand, poor quality products from an organization which results in consumers’ dissatisfaction can have detrimental impacts on the firm through loss of future sales in the market. This has resulted to the popularity of Total Quality Management (TQM) in diverse firms. This report will extensively explore the process of TQM implementation at Mars car dealers through the identification of indicators which will evidence the successful implementation of TQM in the firm. In addition, it will analyze the 7 steps in the implementation of TQM in this company. Lastly, the paper will forward some profound recommendations on some feasible practices which can boost the attainment of quality objectives in the firm. Executive summary 2 1.0 Introduction 4 2.0 How successful implementation of TQM will be evidenced 4 2.1 Continuous training 5 2.2 Elevated teamwork in the organization 5 2.3 Holistic approach in decision making and problem solving 5 2.4 Increased top-management support and commitment 6 2.5 Increased consumer satisfaction(Consumer focus) 6 2.6 Enhanced financial performance 7 2.7 Supportive organizational culture 7 3.0 Core steps in the implementation of TQM at Mars cars dealers 7 3.1 Energize the organization with quality awareness 7 3.2 Transform the culture of the firm 8 3.3 Defining the scope of your commitment to the entire organization 9 3.4 Identification of key processes and product variables 9 3.5 Implementation of statistical product control 9 3.6 Integrate process enhancement activities in the organization 10 3.7 Assessment of quality improvement in the institution 10 4.0 Summary of steps 10 5.0 Recommendation 11 6.0 Conclusion 11 References 12 1.0 Introduction According to QPC research committee (1990, p. 3), Total Quality Management (TQM) can be perceived as a structured mechanism aimed at the attainment and surpassing the needs and expectation of consumers through the formation of institution-wide contribution in the planning and implementation of processes which culminates in continuous enhancements and breakthrough objectives. Mars cars dealer which is a large car dealership in an Eastern suburb of Sydney has realized the importance of TQM in the efforts to withstand the increased competition in the industry and expand their consumer base. This has resulted to the need for the development of a TQM implementation plan for the company which will be analyzed in the subsequent section. This paper is thus a profound effort to explore how successful implementation of TQM will be evidencedand an action plan outlining the steps for implementation of TQM at the dealership will be analyzed. 2.0 How successful implementation of TQM will be evidenced Yusof and Aspinwall (2000, p. 281) noted that one of the most integral factors in ensuring the adoption of TQM is through the formulation of a feasible implementation structure prior to undertaking such a transformation process. The following indicators will evidence the successful implementation of the TQM at Mars car dealers. 2.1 Continuous training Dale (1999, p. 11) determined that continuous training poses both direct and indirect contribution to the entrenchment of a common language in the entire business undertakings. Thus, the extent to which the training activities have been established in the activities of Mars car dealers will be a chief indicator of successful implementation of TQM in this organization. This can viability of this continuous training can be assessed through robust monitoring and evaluation framework primed at the organization. 2.2 Elevated teamwork in the organization Increased teamwork in the organization which is marks the departure from individualism in undertaking various tasks in the organization towards a more collaborative approach evidenced by teamwork will be core in epitomizing continuous improvement as well as successful implementation of TQM at Mars car dealers. This fact is determined by Gallear and Ghobadian (2004, p. 19) who cited that teamwork is a fundamental prerequisite for continuous improvement in an organization which evidences the successful implementation of TQM. 2.3 Holistic approach in decision making and problem solving This is whereby there will be extensive involvement of all the stakeholders at Mars cars dealers in the above processes. These stakeholders include the organizational management, the employees, governmental agencies as well as the consumers. The increase in the participation of all these stakeholders in the decision making and problem solving processes in the firm will mark successful implementation of TQM in the organization. This fact is supported by Oakland (1989, p. 14) who pointed out that total quality management is a rudimentary way of involving and organizing the entire organization in the business undertakings; every single person, every department at every level. 2.4 Increased top-management support and commitment It is an apparent fact the inadequate support and commitment of the top-management in any organization poses detrimental impacts on the eventual output of any organization in terms of quality of goods or services. Against this backdrop, the heightened support and commitment of the top-management at Mars cars dealers will be a central indicator of successful implementation of TQM in the organization. This fact is also supported by Torrington and Hall (1998, p. 300) cited that for there to be successful implementation of TQM, the senior managers in an organization ought to provide a precise definition of the quality goals of the organization, give direction and intelligibility and eventually continuously communicate all these within the entire organization. 2.5 Increased consumer satisfaction(Consumer focus) Diverse scholars, for instance Moore, Hopkins and Hopkins (1998) and Zairi (2000) have pointed out that in TQM, the satisfaction of the consumers is a key propeller for an organization to enhance its performance. It is worth noting that this is both in the context of the external consumers (the public, government regulatory agencies, clients) as well as the internal consumers (diverse departments, employees). Thus, the improved satisfaction of the consumers, both internal and external is a key indicator of successful implementation of TQM. 2.6 Enhanced financial performance It is evident that every profit-making organization in the market has its primary objectives in achieving excellent and improved financial performance at the end of every fiscal year. Therefore, the improvement of the financial performance at Mars cars dealers will be a core indicator of the successful implementation of TQM in the organization after the twelve months given by the manager to successfully implement TQM as the dealership. 2.7 Supportive organizational culture Psychogios and Priporas (2007, p. 47) pointed out that a supportive organizational culture is a generic denominator of all the aforementioned tenets of TQM which infers that quality culture in the organization plays an integral role in binding together all the TQM aspects mentioned in the preceding discourse. This is because it is integral in developing common sense of membership in the institution, nurturing excessive trust based social relationships as well as convincing all the stakeholders in the firm that the process of continuous improvement is aimed for the benefit of everyone in the firm. 3.0 Core steps in the implementation of TQM at Mars cars dealers Stamatis (1994, p. 49) cited 7 steps which are primary to the implementation of TQM in diverse organization. These steps will be utilized at Mars in the efforts to successfully implement the TQM at the firm. These steps are explored in the subsequent section. 3.1 Energize the organization with quality awareness This is whereby all the stakeholders in the organization are informed about the quality objectives in the firm and their respective roles in attaining these objectives. This role is undertaken through a synergy of efforts from the top-management as well as the employees who are either directly or indirectly involved in the implementation of TQM. The imperative role of this step in the implementation of TQM was also cemented by Ghobadian, and Gallear(2001, p. 347) who also cited the efforts to increase the organizational awareness of TQM as the first step in the implementation of TQM. Energize the organization with quality awareness can be done through diverse channels which include but not limited to capacity building retreats of the employees, training and development, communicating quality necessity during the induction process of new employees as well as communicating the quality conditions to the shareholders during the AGMs. 3.2 Transform the culture of the firm As noted in the preceding discourse, the organizational culture plays an integral role in influencing the eventual success in the course of implementing TQM. This is whereby positive and supportive organizational culture propels the formulation and implementation process of the TQM plan in the firm. This fact is supported by Psychogios and Priporas (2007, p. 47) who determined that the organizational culture plays a vital role in altering the actions of the employees as well as their perceptions in the diverse aspects of their activities aimed at quality inclusion. In addition, culture as embedded in the organization has been perceived as a key ingredient in fostering organizational cohesion and can thus either promote or curtail the change processes aimed at TQM application. The change of the organizational culture is chiefly done by the management through providing positive leadership example to the employees and creation of mechanisms like a rewarding system for top quality producing departments at Mars Cars dealers. 3.3 Defining the scope of your commitment to the entire organization This is chiefly done by the employees in the firm as well as the management. This is whereby the new employee sign and adhere to the employment contracts which obliges them to maintain quality in the organization. In addition, the management commits itself to the process of honoring the terms and conditions in these employment contracts, for instance, security of tenure. This is key in motivating the employees towards achieving the utmost quality in the firm as well as cultivating their commitment towards achieving the quality objective at this car dealership. 3.4 Identification of key processes and product variables Ghobadian, and Gallear(2001, p. 347) determined that the success of the TQM is a function of diverse variables which includes both the controllable as well as uncontrollable, and majority of these variables and processes are peculiar to the situation in different companies. Thus, this step will entail the identification of the products variables which can enhance quality as well as the prudent processes towards attaining this goal. The identification of the processes as well as the variable will involve a synergy of efforts from all the departments at Mars cars dealers, the top-management and the shareholders of the company. 3.5 Implementation of statistical product control Goetsch and Davis (Cited in Psychogios &Priporas, 2007, p. 43) defined SPC as a statistical method under which the management can effectively exert control over the production or the process of service delivery aimed at making shifts in the attempt to enhance it. Thus, this step will require the input and efforts primarily from the management in the efforts to reduce variation which is intrinsic in many processes. 3.6 Integrate process enhancement activities in the organization This can chiefly be through the cooperation between the management and the employees. Most of these process improvement activities will emanate from the innovation and creativity of the employee, whose implementation calls for extensive support from the management of Mars Cars dealers. In addition, ideal quality improvement practices from other firms can be borrowed and refined to fit into the processes of the firm. This is tied the concept of continuous improvement previously mentioned which insinuates to the commitment of the management band the employees in undertaking constant scrutiny of the administrative as well as the technical processes in the firm in pursuit of better methods (Ojha, 2000, p. 19). 3.7 Assessment of quality improvement in the institution This is the final step in the TQM implementation. It will entail both monitoring and evaluation (M&E) of the quality improvement processes and quality variables in the firm aimed at ascertaining their feasibility. 4.0 Summary of steps Energize the organization with quality awareness Transform the culture of the firm Defining the scope of your commitment to the entire organization Identification of key processes and product variables Implementation of statistical product control Integrate process enhancement activities in the organization Assessment of quality improvement in the institution 5.0 Recommendation It is imperative for the management at Mars Car dealers to entrench a positive organizational culture in the institution though promoting values which are key in stimulating product quality in the firm. In addition, the management ought to also undertake extensive rewarding and recognition of the employees which is central in boosting their motivation and cultivating their commitments to the organizational objectives. Lastly, there is need for extensive involvement of all the stakeholders at Mars cars dealers which will result in sustainability of the implemented measures, because everyone will feel appreciated and consulted. 6.0 Conclusion From the above discourse, it is evident that diverse indicators which include supportive organizational culture, improved financial management, increased top-management support and commitment among others evidence the successful implementation of TQM in a firm. On the other hand, there are seven steps in the implementation process which instigates with energize the organization with quality awareness and ending with assessment of quality improvement in the institution. References Dale, B. G, 1999, ‘TQM: An overview’, in B. G. Dale (Eds.), Managing quality (3rd ed.), Blackwell-Business Oxford, UK, pp. 3-33. Gallear, D. & Ghobadian, A., 2004, ‘An empirical investigation of the channels that facilitate a total qualityculture’, Total Quality Management, Vol. 15, No.8, pp. 1043-1067. Ghobadian, A & Gallear, D, 2001, ‘TQM implementation: an empirical examination and proposed genericmodel’, International Journal of Management Science, Vol. 29, No. 4, pp. 343-359. Moore, G., Hopkins, W., & Hopkins, S., 1998,‘Quality and empowerment programs: Dual paths to customer satisfaction?’ Managing Service Quality, vol. 8, No. 2, pp. 133-141. Oakland, J., 1989, Total quality management, Heinemann, Oxford, UK. Ojha, A., 2000, ‘Total Quality Management: How can We Make the Implementation Effective?’, Vikalpa, Vol. 25, No. 2, pp. 19-29. Psychogios A. &Priporas, C., 2007, ‘Understanding Total Quality Management in Context: Qualitative Research on Managers’ Awareness of TQM Aspects in the Greek Service Industry’, The Qualitative Report Vol.12, No. 1, pp. 40-66. QPC research committee, 1990, Total Quality Management Master Plan: An Implementation Strategy, Goal/QPC, New Hampshire. Stamatis, D.H., 1994, ‘Total Quality Management and Project Management’, Project Management Journal, pp. 48-54. Torrington, D., & Hall, L., 1998, Human resource management (4th ed.), Prentice Hall, London. Yusof, S. M. & E. Aspinwall , 2000, ‘Total Quality Management implementation frameworks: comparison and review’, The TQM Magazine, Vol.11, No. 3, pp. 281-294. Zairi, M., 2000, ‘Managing customer satisfaction: A best practice perspective’, The TQM Magazine, vol. 12, No. 6, pp. 389-394. Read More