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Analysis Of Total Quality Management and its Tools In A Company

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Total Quality Management

1258 Downloads 5 Pages 1274 Words

Introduction

Total Quality Management (TQM) is the comprehensive approach which management of the uses for improving quality of goods and services by focusing on continuous feedback from their customers (Sallis, 2014).

Overview of company

Present report is based on The Sultan Center (TSC) situated in Kuwait. Jamil Sultan is the key person and the founder who established TSC in the year 1976. It is a shareholding company which trade in retail sector. Basically, it deals in diversified range of products and services. Groceries, catering, consumer goods, security, telecommunication and investments are different variety of products. TSC is the first self service store of Kuwait which provided the organization to expand their stores and products varieties (The Sultan Center, 2015).

Analysis of company and products

TSC aims at 'one stop shop' for their buyer and customers. It is the giant retail company which consists of wholesale centers, discount stores, mega markets, service stores, expressed stores and convenience stores. In all these stores, TSC intends to serve their customers with full efficiency. The Sultan Center recorded their growth of average rate of revenue by 4% whereas an exceptional growth rate of 10% in retail operations at stores in Oman, Bahrain and Jordan has been recorded. TSC has also shown an increment of 7% in telecommunication and services divisions. TSC at present is having 65 stores, 22 restaurants, 7 industries in 5 different countries. Company is approximately employing 10 thousand people and serving around 5 million consumers through their products and services. TSC is spreading their hands all around and planning to open 13 more shopping centers in Kuwait, Lebanon, Jordan and Bahrain in the coming year. Telecommunication and services divisions help TSC in strengthening their shareholding in the market. At the end of the 2014, company's net profit was recorded at 10, 90,983 KD (Kuwait Dinar) whereas in 2013 it was only 1, 41,701 KD (Sultan Center Food Products Company -K.S.C. (Public), 2014).

TSC provides quality services in each sector of their dealings. Furthermore, , company organizes training sessions for their employees and staff to ensure quality services (Conti, 2012). The organization takes feedback from their customers for improvement purposes. Security & Technical Service Group is a subset of TSC which provides efficient quality of services and products to their employees as well as to the buyers. It renders quality, 24/7 over their products which includes security personnel, valet parking, reliable cleaning and efficient security system. Company uses updated technology for the diversified sectors.

Cost of Quality

TSC's continuous success is affected by their commitments of serving to goods and services according to the expectations of customer and also delivering best products. Company is providing secure services for their employees and customers. In addition, for providing advance services, company makes designs, install them, supply those designs and maintain their quality services over products. Company incurs cost to manage all the training sessions for employees (Sadikoglu and Zehir, 2010). In initial time period, the incurred cost has negative impact over the profitability of the company. But the same cost incurred for maintaining and improving quality will increase profitability in the future. These initiatives will attract more customers which will increase their sales turnover and overall profit ratio. For example, company creates survey and collects feedback about their products from customers. The company will have to bear large amount of cost.

TQM and its tools

TQM is a management technique which makes company to focus on improving quality of the product served to the customer. Some of the primary elements of TQM are:

Customer focused

TSC creates an image in the minds of the customers by providing them with their best quality of the products and services. Customer only determines the worth of the quality programs organized by the company. Organization’s initiative for quality improvement techniques does affect the consumer behavior. (Vanichchinchai and Igel, 2011).

Total Employees Involvement

TSC provides a proper environment to their employees at workplace. It will lead Employees to work efficiently to meet desired goal of serving quality products to the customers. High performance system will improve efforts for regular business operations (Gutiérrez, Torres and Molina, 2010).

Process-centered

This element of TQM is the fundamental part which involves process working. Quality can be improved over each step of the process. TSC involves a process of transferring inputs into outputs and finally delivering to final buyer. Last step includes monitoring or feedback which can help in initiating the quality by improving the loopholes. There are several tools which are used in total quality management. Some of these are discussed here:

Cause and effect diagram

This tool will help TSC to identify its problem causing areas. It will help in determining ideas and will help them in for solving problems. TSC can meet success by evolving the areas where the company is lacking.

Check sheet

It is a structure form of sheet which can be used by TSC for collecting and analyzing data. This generated information can assist the company to improve their strategies and will help to manage quality aspects.

Control chart

It a sort of graph which is used to study the effects of changes caused over time (Jun and Cai, 2010). TSC can use control chart to evaluate the effect of quality changes caused over customers for particular time period.

Histogram

The graph which is used to show the frequency distribution or to show the values for different of set of data (Sallis, 2014). TSC can make use of it by plotting the feedback over graph which are received by the customers over the quality served.

Scatter Diagram

This diagram shows the relationship between two or more items in pairs of quantified data. TSC can use this tool to see the relationship between the quality served and profitability of the company.

Stratification

It is also known as the flow chart or run chart. It gives the direction of flow with the help of arrows and line (Conti, 2012). TSC can use stratification to make the process and can also use the same to make their employees understand the goal.

Conclusion

The aforementioned report gives a brief overview of The Sultan Center, Kuwait. It contains information about use of Total Quality Management in the company and also gives emphasis on the quality services. In addition, report concludes the important element used in Total Quality Management.

References

  • Conti, T., 2012. Building total quality: a guide for management. Springer Science & Business Media.
  • Gutiérrez, L.J.G., Torres, I.T. and Molina, V.B., 2010. Quality management initiatives in Europe: An empirical analysis according to their structural elements. Total Quality Management. 21(6). pp.577-601.
  • Jun, M. and Cai, S., 2010. Examining the relationships between internal service quality and its dimensions, and internal customer satisfaction. Total Quality Management. 21(2). pp.205-223.
  • Sadikoglu, E. and Zehir, C., 2010. Investigating the effects of innovation and employee performance on the relationship between total quality management practices and firm performance: An empirical study of Turkish firms. International Journal of Production Economics. 127(1). pp.13-26.
  • Sallis, E., 2014. Total quality management in education. Routledge.
  • Sharma, U., Lawrence, S. and Lowe, A., 2010. Institutional contradiction and management control innovation: A field study of total quality management practices in a privatized telecommunication company. Management Accounting Research. 21(4). pp.251-264.
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