case study in total quality management

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Total quality management: three case studies from around the world

With organisations to run and big orders to fill, it’s easy to see how some ceos inadvertently sacrifice quality for quantity. by integrating a system of total quality management it’s possible to have both.

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There are few boardrooms in the world whose inhabitants don’t salivate at the thought of engaging in a little aggressive expansion. After all, there’s little room in a contemporary, fast-paced business environment for any firm whose leaders don’t subscribe to ambitions of bigger factories, healthier accounts and stronger turnarounds. Yet too often such tales of excess go hand-in-hand with complaints of a severe drop in quality.

Food and entertainment markets are riddled with cautionary tales, but service sectors such as health and education aren’t immune to the disappointing by-products of unsustainable growth either. As always, the first steps in avoiding a catastrophic forsaking of quality begins with good management.

There are plenty of methods and models geared at managing the quality of a particular company’s goods or services. Yet very few of those models take into consideration the widely held belief that any company is only as strong as its weakest link. With that in mind, management consultant William Deming developed an entirely new set of methods with which to address quality.

Deming, whose managerial work revolutionised the titanic Japanese manufacturing industry, perceived quality management to be more of a philosophy than anything else. Top-to-bottom improvement, he reckoned, required uninterrupted participation of all key employees and stakeholders. Thus, the total quality management (TQM) approach was born.

All in Similar to the Six Sigma improvement process, TQM ensures long-term success by enforcing all-encompassing internal guidelines and process standards to reduce errors. By way of serious, in-depth auditing – as well as some well-orchestrated soul-searching – TQM ensures firms meet stakeholder needs and expectations efficiently and effectively, without forsaking ethical values.

By opting to reframe the way employees think about the company’s goals and processes, TQM allows CEOs to make sure certain things are done right from day one. According to Teresa Whitacre, of international consulting firm ASQ , proper quality management also boosts a company’s profitability.

“Total quality management allows the company to look at their management system as a whole entity — not just an output of the quality department,” she says. “Total quality means the organisation looks at all inputs, human resources, engineering, production, service, distribution, sales, finance, all functions, and their impact on the quality of all products or services of the organisation. TQM can improve a company’s processes and bottom line.”

Embracing the entire process sees companies strive to improve in several core areas, including: customer focus, total employee involvement, process-centred thinking, systematic approaches, good communication and leadership and integrated systems. Yet Whitacre is quick to point out that companies stand to gain very little from TQM unless they’re willing to go all-in.

“Companies need to consider the inputs of each department and determine which inputs relate to its governance system. Then, the company needs to look at the same inputs and determine if those inputs are yielding the desired results,” she says. “For example, ISO 9001 requires management reviews occur at least annually. Aside from minimum standard requirements, the company is free to review what they feel is best for them. While implementing TQM, they can add to their management review the most critical metrics for their business, such as customer complaints, returns, cost of products, and more.”

The customer knows best: AtlantiCare TQM isn’t an easy management strategy to introduce into a business; in fact, many attempts tend to fall flat. More often than not, it’s because firms maintain natural barriers to full involvement. Middle managers, for example, tend to complain their authority is being challenged when boots on the ground are encouraged to speak up in the early stages of TQM. Yet in a culture of constant quality enhancement, the views of any given workforce are invaluable.

AtlantiCare in numbers

5,000 Employees

$280m Profits before quality improvement strategy was implemented

$650m Profits after quality improvement strategy

One firm that’s proven the merit of TQM is New Jersey-based healthcare provider AtlantiCare . Managing 5,000 employees at 25 locations, AtlantiCare is a serious business that’s boasted a respectable turnaround for nearly two decades. Yet in order to increase that margin further still, managers wanted to implement improvements across the board. Because patient satisfaction is the single-most important aspect of the healthcare industry, engaging in a renewed campaign of TQM proved a natural fit. The firm chose to adopt a ‘plan-do-check-act’ cycle, revealing gaps in staff communication – which subsequently meant longer patient waiting times and more complaints. To tackle this, managers explored a sideways method of internal communications. Instead of information trickling down from top-to-bottom, all of the company’s employees were given freedom to provide vital feedback at each and every level.

AtlantiCare decided to ensure all new employees understood this quality culture from the onset. At orientation, staff now receive a crash course in the company’s performance excellence framework – a management system that organises the firm’s processes into five key areas: quality, customer service, people and workplace, growth and financial performance. As employees rise through the ranks, this emphasis on improvement follows, so managers can operate within the company’s tight-loose-tight process management style.

After creating benchmark goals for employees to achieve at all levels – including better engagement at the point of delivery, increasing clinical communication and identifying and prioritising service opportunities – AtlantiCare was able to thrive. The number of repeat customers at the firm tripled, and its market share hit a six-year high. Profits unsurprisingly followed. The firm’s revenues shot up from $280m to $650m after implementing the quality improvement strategies, and the number of patients being serviced dwarfed state numbers.

Hitting the right notes: Santa Cruz Guitar Co For companies further removed from the long-term satisfaction of customers, it’s easier to let quality control slide. Yet there are plenty of ways in which growing manufacturers can pursue both quality and sales volumes simultaneously. Artisan instrument makers the Santa Cruz Guitar Co (SCGC) prove a salient example. Although the California-based company is still a small-scale manufacturing operation, SCGC has grown in recent years from a basement operation to a serious business.

SCGC in numbers

14 Craftsmen employed by SCGC

800 Custom guitars produced each year

Owner Dan Roberts now employs 14 expert craftsmen, who create over 800 custom guitars each year. In order to ensure the continued quality of his instruments, Roberts has created an environment that improves with each sale. To keep things efficient (as TQM must), the shop floor is divided into six workstations in which guitars are partially assembled and then moved to the next station. Each bench is manned by a senior craftsman, and no guitar leaves that builder’s station until he is 100 percent happy with its quality. This product quality is akin to a traditional assembly line; however, unlike a traditional, top-to-bottom factory, Roberts is intimately involved in all phases of instrument construction.

Utilising this doting method of quality management, it’s difficult to see how customers wouldn’t be satisfied with the artists’ work. Yet even if there were issues, Roberts and other senior management also spend much of their days personally answering web queries about the instruments. According to the managers, customers tend to be pleasantly surprised to find the company’s senior leaders are the ones answering their technical questions and concerns. While Roberts has no intentions of taking his manufacturing company to industrial heights, the quality of his instruments and high levels of customer satisfaction speak for themselves; the company currently boasts one lengthy backlog of orders.

A quality education: Ramaiah Institute of Management Studies Although it may appear easier to find success with TQM at a boutique-sized endeavour, the philosophy’s principles hold true in virtually every sector. Educational institutions, for example, have utilised quality management in much the same way – albeit to tackle decidedly different problems.

The global financial crisis hit higher education harder than many might have expected, and nowhere have the odds stacked higher than in India. The nation plays home to one of the world’s fastest-growing markets for business education. Yet over recent years, the relevance of business education in India has come into question. A report by one recruiter recently asserted just one in four Indian MBAs were adequately prepared for the business world.

RIMS in numbers

9% Increase in test scores post total quality management strategy

22% Increase in number of recruiters hiring from the school

20,000 Increase in the salary offered to graduates

50,000 Rise in placement revenue

At the Ramaiah Institute of Management Studies (RIMS) in Bangalore, recruiters and accreditation bodies specifically called into question the quality of students’ educations. Although the relatively small school has always struggled to compete with India’s renowned Xavier Labour Research Institute, the faculty finally began to notice clear hindrances in the success of graduates. The RIMS board decided it was time for a serious reassessment of quality management.

The school nominated Chief Academic Advisor Dr Krishnamurthy to head a volunteer team that would audit, analyse and implement process changes that would improve quality throughout (all in a particularly academic fashion). The team was tasked with looking at three key dimensions: assurance of learning, research and productivity, and quality of placements. Each member underwent extensive training to learn about action plans, quality auditing skills and continuous improvement tools – such as the ‘plan-do-study-act’ cycle.

Once faculty members were trained, the team’s first task was to identify the school’s key stakeholders, processes and their importance at the institute. Unsurprisingly, the most vital processes were identified as student intake, research, knowledge dissemination, outcomes evaluation and recruiter acceptance. From there, Krishnamurthy’s team used a fishbone diagram to help identify potential root causes of the issues plaguing these vital processes. To illustrate just how bad things were at the school, the team selected control groups and administered domain-based knowledge tests.

The deficits were disappointing. A RIMS students’ knowledge base was rated at just 36 percent, while students at Harvard rated 95 percent. Likewise, students’ critical thinking abilities rated nine percent, versus 93 percent at MIT. Worse yet, the mean salaries of graduating students averaged $36,000, versus $150,000 for students from Kellogg. Krishnamurthy’s team had their work cut out.

To tackle these issues, Krishnamurthy created an employability team, developed strategic architecture and designed pilot studies to improve the school’s curriculum and make it more competitive. In order to do so, he needed absolutely every employee and student on board – and there was some resistance at the onset. Yet the educator asserted it didn’t actually take long to convince the school’s stakeholders the changes were extremely beneficial.

“Once students started seeing the results, buy-in became complete and unconditional,” he says. Acceptance was also achieved by maintaining clearer levels of communication with stakeholders. The school actually started to provide shareholders with detailed plans and projections. Then, it proceeded with a variety of new methods, such as incorporating case studies into the curriculum, which increased general test scores by almost 10 percent. Administrators also introduced a mandate saying students must be certified in English by the British Council – increasing scores from 42 percent to 51 percent.

By improving those test scores, the perceived quality of RIMS skyrocketed. The number of top 100 businesses recruiting from the school shot up by 22 percent, while the average salary offers graduates were receiving increased by $20,000. Placement revenue rose by an impressive $50,000, and RIMS has since skyrocketed up domestic and international education tables.

No matter the business, total quality management can and will work. Yet this philosophical take on quality control will only impact firms that are in it for the long haul. Every employee must be in tune with the company’s ideologies and desires to improve, and customer satisfaction must reign supreme.

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Total quality management in the health-care context: integrating the literature and directing future research

Majdi m alzoubi.

1 Department of Community Health, Faculty of Medicine and Health Sciences, University Putra Malaysia, UPM Serdang, Selangor Darul Ehsan, 43400, Malaysia

ZM Al-Hamdan

2 Department of Nursing Management, Faculty of Nursing, Jordan University of Science and Technology, Irbid, Jordan

Synergistic integration of predictors and elements that determine the success of total quality management (TQM) implementations in hospitals has been the bane of theoretical development in the TQM research area. Thus, this paper aims to offer a systematic literature review to provide a foundation on which research on TQM can be built and to identify the predictors of successful TQM in the health-care context.

Materials and methods

A systematic literature survey was adopted in this paper, involving the review of 25 relevant researched articles found in the databases Science Direct, EBSCO, MEDLINE, CINAHL and PubMed.

The systematic literature survey reveals five variables to be core predictors of TQM, signifying how important these variables are in the successful implementation of TQM in the health-care context. Also, it is revealed that the identified core predictors have positive effects on an improved health-care system. However, the systematic survey of the literature reveals a dearth of studies on TQM in the health-care context.

As TQM has become an important management approach for advancing effectiveness in the health-care sector, this kind of research is of value to researchers and managers. Stakeholders in the health sectors should introduce and implement TQM in hospitals and clinics. Nevertheless, this study has limitations, including that the databases and search engines adopted for the literature search are not exhaustive.

Introduction

Given the snowballing global economic competition and other external pressures, organizations have been compelled to pursue enduring quality and quality management which will, in turn, enhance their competitive advantage. Quality as a concept has metamorphosed over the years, and it involves objective quality bordering on the characteristics and quality of goods and services that meet implicit and explicit customer demands. It also includes subjective quality which denotes the capability to produce goods and services in the best, effective and efficient manner. 1

Looking at the health-care context, quality has always been aimed at since the time of Florence Nightingale. 2 Given that quality assurance is a requisite for economic survival, 3 and that it is an ethical, legal and social rights matter, 4 the health sector has been worried about it for more than a decade .2 Quality assurance is significant as it concerns customer satisfaction and the reduction of risks connected with health care to a minimum. 5 In the present time, health care has become a developing profession with an approach to care quality via the appraisal and regulation of structure, process and care result components. 6

Given the ever-increasing competitive and dynamic environment in which hospitals operate, and the need to augment hospitals’ performance and health-care quality, researchers 2 , 7 – 9 have conducted considerable research on enhancement of health-care quality. Moreover, given that nurse performance is crucial to the overall performance of the hospital and effective health-care system, there has been a research focus on nurse performance. 7 Nurses represent a large percentage of the health workers in any hospital. Nurses would play a significant role in the implementation of any intervention programs introduced by any hospital.

Moreover, research 8 – 11 has shown that the health-care system is facing a myriad of challenges which include high care cost, swiftly increasing dependence on technology, economic pressure on health organizations, reduction in health-care quality, 8 , 10 fulfillment of patients’ needs, 9 augmented numbers of patients who are suffering from multiple illnesses, increased demand for high-quality care, increased health-care costs and cost-containment pressures (Organization for Economic Cooperation and Development [OECD] 2007). 11 Some studies have indicated that an active way of surmounting health-care challenges is through an intervention program that will border on quality management (eg, total quality management [TQM]). 12

TQM is a system implemented by the management of an organization to achieve the satisfaction of customers/patients .13 The importance of TQM as a strategy to improve organizational performance has grown in this era of globalization. 14 Numerous research has revealed the role of TQM in the enrichment of system quality and enhancement of both employee and organizational performance. TQM is known for continuous quality improvement, quality management and total quality control. 10 TQM is held to be an innovative approach to the management of organizations. In the medical sector, TQM integrates quality orientation in all processes and procedures in health-care delivery .15 It is now being widely adopted in the medical sector of many countries. The research by Vituri and Évora 2 indicates that the literature on TQM in health sectors reveals that TQM has been fully adopted in some health institutions.

The implementation of TQM, upon which the success of TQM hinges, is intricate and complex; it depends on a good combination of certain predictors (ie, critical success factors [CSF]), and its benefits are difficult to accomplish .16 Different means of integrating predictors of TQM, although inconsistent, have emerged in the literature. 17 Some predictors have been considered crucial to TQM success, 18 and thus the exceptional predictors which can be adopted by organizations, irrespective of their industry, type, size or location. 19 These predictors are regarded as the determinants of firm performance via effective implementation of TQM.

Nevertheless, synergistic integration of predictors and elements, otherwise known as CSFs and which determine the success of TQM implementation, has been the bane of theoretical development in the TQM research area. Some of these predictors have been reported, by extant studies, 20 to have a positive impact on performance.

Likewise, substantive problems exist and can hamper theoretical development in the research area. The literature lacks foundation and structure on which the research on TQM in the health-care context is based, and connections between studies on TQM in the health-care context can hardly be drawn. The current state of extant research on TQM in the health-care context indicates that there is a need for more research in the area. 21 New knowledge development regarding identification of fitting predictors for successful TQM that enhance effectiveness in the health-care sector should be developed and where further research needs to be done should be identified.

Considering the extant works on a systematic literature review on predictors of TQM, two English written studies 14 , 22 are discernible, but Hietschold et al 14 focused on CSFs of TQM in general contexts while Aquilani et al 22 focused on the identification of TQM research, implementation of TQM research and impact-of-TQM-on-performance research in general contexts. Besides these two studies, no studies have focused on the systematic literature survey of predictors/elements of TQM in the health-care context.

Therefore, undertaking a systematic literature review in this aspect of research is germane, and this paper is poised to do as such. This paper conducts a systematic literature survey to provide a foundation stone on which research on TQM in the health-care context can be built, to evaluate the current state of evidence for TQM in the health-care context, to reveal inadequacies in the literature and to point to where further research needs to be done.

This research is guided by the following research question: what are the predictors of successful TQM in the health-care context between the period of 2005 and 2016? Like the two previous studies on a systematic literature review of TQM, this paper adopts and applies the three core steps of planning, execution and reporting that constitute a systematic literature survey. 23

This research seeks to obtain the most important predictors of successful TQM in the health-care context. This includes the review of published peer-reviewed works in English-language journals, which were published between 2005 and 2016. The literature was sourced from Science Direct, EBSCO, MEDLINE (Medical Literature Analysis and Retrieval System Online), CINAHL (Cumulative Index of Nursing and Allied Health Literature) and PubMed (US National Library of Medicine).

As part of the process of systematic literature analysis in this paper, a structured search of the academic literature was conducted to find published articles that identified TQM, total quality management, implementation, CSFs, health care and nursing. The keywords used in the search are TQM, total quality management, implementation, critical success factors, health care and nursing.

As presented in Figure 1 , a search of Science Direct, MEDLINE, EBSCO, CINAHL and PubMed yielded 2133, 6341, 1867, 7 and 474 articles, respectively. Then, repeated citations, dissertations and case studies were deleted. Via reading of the title and abstract, the remaining articles were narrowed down by relevance. Only peer-reviewed academic and practice articles that focus on total quality management, implementation, CSFs health care and nursing were selected. This exercise yielded a total of 475 articles which were published between 2005 and 2016.

Consort flow chart of systematic review method.

Abbreviation: TQM, total quality management.

Furthermore, inclusion and exclusion criteria were applied to narrow down the yielded articles. The inclusion criteria involved articles which were written in English language and published between 2005 and 2016, articles that dwell on implementation and critical factors clearly, articles from any geographical location which examined TQM, TQM principles, TQM tools and methods in the context of the health-care sector, and TQM studies that used a quantitative research approach and quasi-experimental research design. The exclusion criteria involved articles which are written in non-English language and published before 2005 or after 2016, studies in which the population and sample were not health-care workers practicing inside hospitals, gray literature or works that are not published in a peer-reviewed journal, dissertations/theses, proceedings, published abstracts, studies with qualitative research methods, and commentary articles written to convey opinion or stimulate research or discussion, with no research component. By employing these inclusion and exclusion criteria, 20 articles were generated. Moreover, to guarantee all-inclusiveness and to widen the scope of the review, a forward and backward search of citations in articles was conducted. This was recognized via the database searches, and 25 articles were finally selected. Thereafter, the 25 generated articles were fully perused.

Likewise, for exhaustive research, the approach adopted in this paper also involved the identification and measurement of predictors (CSFs) of TQM. This was done by identifying the most common or important predictors in the selected 25 works that analyze the existing models and/or scales in other contexts, industries or countries. It also includes recognition of the papers that investigate the influence of TQM implementation and/or the impact of predictors of TQM on performance. Additionally, for a proper review of the selected works, adequate plotting of the development of the line of reasoning, integrating and synthesizing the studies, authors, study design, study population, variables, measures of variables and findings of each selected article were identified and noted down. Figure 1 represents the consort flow chart of the systematic review method.

Findings and discussion

Altogether, 25 researched articles were eventually reviewed. All of the selected 25 articles are based on empirical evidence, although a possible limitation of this systematic review strategy might be the exclusion of qualitative studies in the research. Based on Table 1 , five predictors were identified. These are presented in Table 2 .

Matrix of the reviewed literature

Abbreviations: HR, human resources; TQM, total quality management.

TQM predictors in the reviewed studies

The researched literature on predictors of successful TQM implementation was found to be from various countries but in the same health sector. While some predictors adopted by a few of the researched studies were identified, the most frequent and core predictors were identified and considered. As depicted in Table 2 , education and training, continuous quality improvement, patient focus/satisfaction, top management commitment and teamwork appear to be the core predictors (CSFs) in this review. This finding validates how important these variables are in the successful implementation of TQM in the health-care context.

It is noteworthy that the core predictors (ie, education and training, continuous quality improvement, patient focus/satisfaction, top management commitment and teamwork) identified in this study were among the variables found to be central and frequently used CSFs in the previous systematic-review-based studies. 14 , 21 This validates and confirms the findings of the previous studies.

Moreover, it is found that the most adopted research method in TQM in the health-care context is cross-sectional research; 56% of the reviewed researched articles 41 – 46 used a cross-sectional research design, but 32% of the studies employed a quasi-experimental research approach. This indicates that there is still a need for more research on TQM in the health-care context which will adopt a quasi-experimental research approach, because quasi-experimental research design can be very useful in recognizing general trends from the results, and reduces the difficulty and ethical worries that may be connected with the pre-selection and random assignment of test subjects. On the geographical location aspect, the result of this analysis showed that 28% of the reviewed studies were conducted in Iran while 20% of the reviewed studies were conducted in Jordan; 12% and 8% of the reviewed studies were conducted in Saudi Arabia and Pakistan, respectively. The other studies, 4% each, came from India, Namibia, Turkey, the United States, France and Mauritius.

With regards to the influence of predictors on performance in the researched studies, it is found that all of the selected articles 47 , 48 , 49 , 50 ,. 51 that examined the effects of the core predictors (continuous quality improvement, education and training, patient focus/satisfaction, top management commitment and teamwork) of TQM indicate a positive effect of TQM in the health-care sector.

More so, the findings of this review signify that predictors of TQM implementation will result in higher levels of nurse performance .51 In addition, the literature and empirical evidence have shown that TQM in an organizational process always results in better performance of the organization. TQM focuses on patient satisfaction, organization problem identification, building and promotion of open decision-making among employees. It embraces a holistic strategy that gives room for every worker to share responsibility for the quality of the work done. It makes use of analytical mechanisms, such as flow and statistical charts and checksheets, to gather information about activities in an organization. 52 In the medical sector, TQM aims at embedding orientation of quality in all processes and procedures in the delivery of health services .15

Nevertheless, this literature survey is not an exhaustive review of the literature on TQM as it solely focused on the effect of TQM. Future research should widen the scope of this paper by including studies conducted in other contexts (eg, education, manufacturing, etc) and studies that use different research methods (eg, longitudinal research method, randomized control trial method). While TQM predictors have increased in number to reach a total of 59 TQM practices, 21 TQM predictors in the context of health care are few but growing. Investigating the nature of TQM predictors and the methods used in examining them indicates that researchers may have been keen in searching for new predictors instead of trying to cluster them and identify those that are critical for successful TQM implementation. In addition, research on TQM predictors in the health-care sector is scanty, as noted previously.

Practically, given the identified core TQM predictors in this study, it is evident that hospitals’ management should consider entrenchment of continuous quality improvement, education and training, patient focus/satisfaction top management commitment and teamwork in the implementation of TQM, which will consequently enhance hospital performance. Given that TQM predictors are many and some of them have been considered core in several specific contexts, industries, dimensions, etc, it is held that stakeholders in different sectors/industries should begin to identify the most vital TQM practices that suit their situations, goals, strategies and expected performances.

Conclusion and recommendations

As TQM has become an important management approach for advancing performance, this kind of research is of value to researchers and managers. Nevertheless, this study has limitations, including that the databases and search engines adopted for the literature search are not exhaustive. Although a good number of keywords are used, there can be other likely keywords that can be included.

This work has contributed to the enrichment of the relevant literature and made theoretical and methodological contributions. It has provided a foundation on which research on TQM can be built via review of the work done between 2005 and 2016, plotting the development of the line of reasoning, and integration and synthesis of studies from TQM in the health-care context. It has also contributed by evaluating the current state of evidence regarding TQM, indicating inadequacies in the literature and pointing to where further research needs to be done. Thus, it contributes to the present body of knowledge as well as the research on TQM in the health-care context.

This work has also established that the most adopted research method in health-care-based TQM is cross-sectional research, followed by quasi-experimental research, and the researched studies were mostly conducted in Asia. The findings of the researched literature indicate a positive effect of TQM in the health-care context, indicating that TQM implementation, which contains the identified core predictors, will result in higher levels of performance. Furthermore, TQM implementation can help health-care professionals to gain more qualified behaviors with total commitment to work toward handling the patients, which in the long run will augment their performance.

The findings of the reviewed studies indicate how it would be useful for stakeholders in the health sectors to introduce and implement TQM in the hospitals and clinics, as this would enhance the performance of the health workers and consequently improve organizational performance. Given the limitations of this work, it is sufficed to suggest that future research should widen the scope of this paper by including studies conducted in other contexts and studies that use different research methods, and it should also develop a comprehensive TQM taxonomy to explain how and why TQM practices coalesce within systems that facilitate higher performance.

The authors report no conflicts of interest in this work.

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Case Study: The Implementation of Total Quality Management at the Charleston VA Medical Center's Dental Service

The views expressed in this article are those of the author and do not reflect the official policy or position of the U.S. Air Force, Department of Defense, or the Department of Veterans Affairs.

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Barry L. Matthews, Case Study: The Implementation of Total Quality Management at the Charleston VA Medical Center's Dental Service, Military Medicine , Volume 157, Issue 1, January 1992, Pages 21–24, https://doi.org/10.1093/milmed/157.1.21

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Total Quality Management (TQM) is an evolving management philosophy which has recently been introduced to the health care industry. TQM requires the use of a continuous process improvement methodology for delivered services. It was implemented at Charleston VAMC's Dental Service as a study to determine its effectiveness at the grassroots level. A modified Quality Circle was established within the clinical service under the guidance of Dr. Edward Deming's 14 principles. Top management support was not present. Many lessons were learned as process improvements were made. The overall success was limited due to the inability to address interdepartment process problems.

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Total quality management : key concepts and case studies

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Description

Creators/contributors, contents/summary.

• Chapter 1: Total Quality Management: An Overview
• Chapter 2: Evolution of Total Quality Management
• Chapter 3: Quality Gurus
• Chapter 4: Leadership and TQM
• Chapter 5: Scientific Management
• Chapter 6: System Approach to Management Theory
• Chapter 7: Strategic Planning
• Chapter 8: Cost of Quality
• Chapter 9: Organization for TQM
• Chapter 10: Customer Satisfaction
• Chapter 11: Total Employee Involvement
• Chapter 12: Supplier Partnership
• Chapter 13: Total Productive Maintenance
• Chapter 14: Quality Awards
• Chapter 15: Quality Circles
• Chapter 16: Fundamentals of Statistics- Part I
• Chapter 17: Fundamentals of Statistics- Part II
• Chapter 18: Process Capability
• Chapter 19: Inward Inspection
• Chapter 20: Seven Traditional Tools of TQM
• Chapter 21: The Seven Modern Tools of TQM
• Chapter 22: Kaizen and Continuous Improvement
• Chapter 23: 5S
• Chapter 24: Six Sigma
• Chapter 25: Lean Management
• Chapter 26: Failure Modes and Effects Analysis
• Chapter 27: Reliability Engineering
• Chapter 28: Business Process Reengineering
• Chapter 29: Benchmarking
• Chapter 30: Quality Function Deployment
• Chapter 31: Quality Loss Function
• Chapter 32: Design for Quality
• Chapter 33: Value Engineering
• Chapter 34: ISO 9000 Quality Systems
• Chapter 35: ISO 14000 Quality Systems
• Chapter 36: Terminology Used in Japanese Management Practices.
• (source: Nielsen Book Data)

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Organizational approach to Total Quality Management: a case study

Related Papers

Afizan Amer

Management Science Letters

Yuni Pambreni

Assoc. Prof. Cross Ogohi Daniel

This study came to examine the impact of Total Quality management (TQM) as instrument in achieving on the organisational performance. TQM is defined as a policy that essentially aimed at establish and deliver high quality products and services that cover all their client's demands and achieve a high level of customer satisfaction. Total Quality Management (TQM) is a management is an administrative approach for firms focused on quality, in light of the cooperation and every individuals and aims at long haul accomplishment through consumer's loyalty and advantages to all individuals from the associations and society. The impact of many organisations failure to properly implement TQM by all administration level, challenges the organisation ability to organise frequent employee training have been a big problem. This research work attempt to find out the effect of TQM execution in the board inclusion, challenges disturbing the usages, impact of employee training and TQM standard application to the accomplishment of organisational goal. The key discoveries demonstrated that rehearsing TQM but it is yet to implement it to the highest level of subscribing to a quality reward system. The implementation of TQM is at the quality assurance level. It was discovered that administration inactions undermined initiative promise to quality and rendered TQM rehearsal insufficient. It is through questionnaires method and oral interview that data are collected from the aforementioned organisations. References were made to journals, related books, internet the aforementioned organization concurred that TQM have in hierarchical execution.

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Dr. S.T.W.S. Yapa

Present-day customers are very conscious of the quality of products and services. They are ready to pay a higher price for a quality product or service. A company that meets such demands gains a competitive advantage in the market over its competitors. One of the best approaches to address this challenge is the implementation of Total Quality Management (TQM). TQM, a systematic management approach and a journey to meet competitive and technological challenges, has been accepted by both service and manufacturing organizations globally. It is commonly agreed that by adopting TQM, the overall effectiveness and performance of organizations can be improved. Despite TQM offers numerous benefits, it is not an easy task to implement it. It is generally experienced that implementation of TQM is hard and painful due to certain barriers that inhibit the successful implementation of TQM. Understanding the factors that are likely to obstruct TQM implementation enables managers to develop more ef...

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Maged Awwad

In the current market economy, companies are constantly struggling to achieve a sustained competitive advantage that will enable them to improve performance, which results in increased competitiveness, and of course, profit. Among the few competitive advantages that can become sustainable competitive advantages, quality plays a crucial role. Recent research shows that about 90% of buyers in the international market, consider quality as having at least equal importance with price in making the decision to purchase. In the opinion of some specialists in economic theory and practice, total quality refers to the holistic approach of quality, which actually means, addressing all aspects of economic and social development and technical of quality. Thus, the holistic approach of quality at organisation-wide involves procedural approach of quality, in this respect, the study focuses on this type of quality approach, i.e. the procedural approach, taking into account the strategic aspects of the continuous improvement of quality, which means in fact, the quality management. Total Quality Management is seen as a way to transform the economies of some countries to be more competitive than others. However, Total Quality Management brings not and will not produce results overnight, it is not a panacea for all the problems facing the organization. Total Quality Management requires a change in organizational culture, which must focus on meeting customer expectations and increasing the involvement of all employees to meet this objective, as an expression of the ethics of continuous improvement. In general, research on quality aiming identify why an organization should adopt the principles of total quality management, but attempts to identify the failing companies' attempts to implement total quality management principles are not so visible. Concerns companies to introduce quality management systems are becoming more pronounced, therefore, in this study we try to identify and present the main reasons that prevent achieving quality and implementation of total quality management system, in other words, we are interested in identify barriers to implementation and development of a quality management system.

Aliza Ramli

Haile Shitahun Mengistie

The main purpose of this paper was to investigate the effect of Total Quality Management practices on organizational performance the case of Bahir Dar Textile SC. It adopted an explanatory research design. The sample size of 71 respondents was drawn using stratified random sampling technique. The study findings of correlation analysis showed that all constructs of total quality management (customer focus, employee's empowerment, top management commitment, continuous empowerment, supplier quality management, process approach) were positively and significantly affect organizational performance. The findings of the multiple regressions analysis showed that the observed changes in organizational performance attributed by the elements of total quality management practice is 49.4% (adjusted r2=.494). The study also reveals from six major elements of total quality management practices, customer focus, top management commitment, continuous improvement, employee's empowerment, and supplier quality management has a positive effect on organizational performance, while process approach doesn't have a significant effect.

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Please note you do not have access to teaching notes, total quality management from theory to practice: a case study.

International Journal of Quality & Reliability Management

ISSN : 0265-671X

Article publication date: 1 May 1993

Most quality professionals recommend a core set of attributes as the nucleus of any quality improvement process. These attributes include: (1) clarifying job expectations; (2) setting quality standards; (3) measuring quality improvement; (4) effective super‐vision; (5) listening by management; (6) feedback by management; and (7) effective training. Based on a survey of employees at a medium‐sized manufacturing firm in the United States, it was found that management philosophy and actions can undermine even a proven total quality management (TQM) programme. For the many firms which hire outside consultants to set up a TQM programme, makes recommendations to management to ensure its successful implementation.

• MANAGEMENT PHILOSOPHY
• QUALITY ASSURANCE
• QUALITY MANAGEMENT

Longenecker, C.O. and Scazzero, J.A. (1993), "Total Quality Management from Theory to Practice: A Case Study", International Journal of Quality & Reliability Management , Vol. 10 No. 5. https://doi.org/10.1108/02656719310040114

Copyright © 1993, MCB UP Limited

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Gillette’s Total Quality Management System Case Study

Introduction, gillette gets employees to take on the new system, involving teams in the tqm process, the working culture.

Gillette began its global operations in 1905 when it opened a manufacturing plant in Germany. This global strategy and success saw the firm extending its operation to Latin America. Argentina was a potential market after tariffs and business policies were revised. Having operated under unfavorable regime, the firm perceived future competition and decided to create competitive advantages.

Key figures in the firm such as Carlos Rotundo and Jorge Micozzi suggested better quality as the solution to the market issues. The management had to change the organizational culture which was not strategic for the future market circumstances. Rotundo had already began creating a new organizational culture when Micozzin came up with the idea of total quality management (TQM) that made Gillette Argentina the most successful affiliate in Latin America.

Due to the great success of Gillette’s TQM system, this research was commenced to do a case study on “quality at Gillette Argentina”. The paper begins by evaluating the ways in which the firm got its employees to take on the new TQM system. It proceeds to discuss the importance of getting the teams involved in TQM process as well as identifying the ways in which the teams improved the process.

The paper also explains the meaning of the phrase “Beyond the hanging fruits, the most important outcome of this effort was a different way of working with sales” and highlights how Gillette changed the way it looks at its customers. Finally, there is a description of the working culture before and after the implementation of TQM as well as the economic benefits of the system.

In a firm where decision making is solely the responsibility of leaders such that the employees have to act as the subjects to them, it is likely that the employees would not readily accept the adoption of total quality management (TQM). This is because TQM requires them to take elevated roles, become self-dependent and consider themselves as the owners of the firm.

It is apparent that Gillette had earlier managed its activities in a manner that left the managerial roles such as decision making and steering initiatives exclusively to the leaders. Therefore, the effort to adopt TQM compelled leaders to take measures that would prepare the employees better for the change. These measures involved several initiatives especially triggered by several key figures in the firm.

The very first initiative Gillette took was to hire the Organizational Dynamics Inc (ODI) as a consulting and training firm. The firm became the key source of information and motivation for the Gillette Latin America management. It can be argued that the source of a successful organizational change begins with leaders who in turn transfer it to employees.

This means that the employees would rarely have accepted an initiative that their leaders did not support appropriately. The consulting firm played a central role in preaching the benefits of TQM to the leaders. Indeed, the firm reinforced the idea Rotundo had already started to instill in Argentina. Organizational Dynamics Inc. developed the quality initiative and recommended the creation of a quality structure.

Secondly, Gillette offered training to the employees as a way of preparing them for TQM system. One of the landmark training was FADE that prepared employees for quality action teams. The specialized training involved four phases of problem solving: focus, analyze, develop and execute.

The focus phase was concerned with the development of a problem statement; the analyze phase dealt with the use of data to understand the magnitude of the problem; the develop phase involved the determination of a solution and implementation plan; and the execute phase was about implementing the plan and measuring its impact. In addition to FADE training, the employees received training in seven basic quality tools as well as brainstorming, force field analysis and cost benefit analysis.

Furthermore, training was extended to management and leadership levels. The Argentine directors, managers and other officials were trained by ODI as trainers of the rest of the organization. The teams were allocated facilitators who received training on leadership development.

Team leaders were trained in areas relating to group dynamics, effective meetings, leadership skills and group conflicts (Donnellon & Engelkemeyer, 1999). As a matter of fact, training was the backbone of the TQM process. Most of the members who got training became experts in their respective areas and eventually steered the process towards success.

Another way that Gillette used to prepared employees for the TQM process was through workshops. Through the leadership of Walker, workshops were conducted with all employees to inform them about the changes that would take place. The staff got information about the new working style and culture to be attained through TQM.

Team sponsors were identified and their roles explained to the staff. They were to support the teams in any way needed including helping them to attain their objectives with recognition of their empowerment. Other workshops that Walker would offer involved problem-solving and statistical analysis, and at the same time inspiring everyone.

Finally, Gillette endeavored to meet the challenges of quality that the employees faced. Initially, Rotundo responded quickly to the employee complaints about the contract approach by delegating responsibility to investigate them to Victor Walker. The newly hired quality manager emerged to be a successful preparer of the team members and organizer of TQM process.

Through his stewardship, teams were guided in their TQM process by sponsors and ODI methodology. In addition, a steering committee was formed in an effort to respond to quality challenges.

The council systematically supported the employees towards TQM process and formed the backbone in the creation of a new working culture. Through such support, the employees were assured of the leaders’ commitment to the process and ultimately embarked on the mission whole-heartedly.

Team involvement was paramount for the success of Gillette TQM process. The initiative was adopted by the firm in an effort to enhance overall performance and position better in the Argentine market. As Jorge Micozzi observed, the market was opening and thus the firm perceived the entry of new competitors from United States and Europe (Donnellon & Engelkemeyer, 1999).

In that respect, team involvement was important to create a competitive advantage. This would allow for creativity and emergence of new ideas as the team members presented diverse suggestions. There was need to improve decisions and processes ahead of competition trough team work. Therefore, the new competitive advantage was to assist Gillette to compete and keep their market share.

Team involvement was important in consolidating individual interests with the interest of the company as a whole. Before the implementation of TQM, the employees pursued their interests with no chance for a broader perspective on the organizational goals and objectives. This working culture was not particularly strategic for the creation of customer value through quality services. Therefore, team involvement was a way of changing this individualistic culture as well as the focus of the workforce towards goal attainment.

Organizational Dynamics Inc which was hired to develop the quality initiative recommended the creation of teams. With the success history of the firm in Mexico, it was very important for Gillette to abide with this recommendation.

Team involvement was the only way to achieve the quality structure suggested by ODI. In addition, the basis of TQM being total participation, customer focus, systematic support and continuous improvement relied completely on team involvement for success.

Team involvement was important in enriching business ideas within Gillette. It can be argued that when employees are offered the chance to contribute to decision-making process, more and better ideas are achieved. Indeed, individuals are challenged to bring new ideas and suggestions when they are members of a team.

The individualistic working culture which existed prior to implementation of TQM process was a huge obstacle to the generation of new ideas. Decisions were entirely made by the top leaders who had little knowledge about the challenges at the operation level. Therefore, team involvement as Walker observed was a way of creating a conduit through which ideas would flow up and down the hierarchical structure.

The other importance of involving teams was to eliminate departmental barriers that the previous system had created. As a manufacturing firm, Gillette had denied employees the necessary interaction between departments. Rarely could the design team interact with the production team or the assembly team which gave in to low quality products and wastage of materials.

As much as the implementation of TQM process was to succeeds, so was the effort to involve teams. This involvement of diverse teams gave the need to understand what other departments did and how they were related to each other. Therefore, for the success of the TQM processes, interaction and coordination among departments was very crucial.

Team involvement in the TQM process was also important in improving customer satisfaction. Although it was more relevant to the sales team, it permeated through all other teams. The sales team had the direct contact with the customer and when involved in the TQM process could offer the needed feedbacks to the rest.

The other teams chipped in when responding to these feedbacks especially those which related to product offered. The involvement of these teams enabled Gillette to meet customer expectations and ultimately increase their satisfaction. Moreover, the increased strength and commitment of the sales team made the customers to feel more satisfied when transacting with the team members.

The TQM process at Gillette was greatly improved by teamwork. It enabled the management to identify and meet challenges of quality. Team involvement increased employee participation in which they launched their complaints. For instance, the assignment of Victor Walker who emerged to be the cornerstone in the processes was triggered by complaints from the employees (Donnellon & Engelkemeyer, 1999). In addition, team involvement allowed the steering committee to turn to TQM problems that barred the success of such programs.

Team involvement also allowed for the creation of the necessary working culture. As the team members increased their participation, new ideas emerged and departmental coordination became a reality. The roles of team leaders and members were defined and the members focused more on the organizational goals and objectives. Autonomy and efficiency increased such that each employee became a significant contributor to the success of the process.

Team involvement in the TQM actually speeded up the implementation. The firm was able to make quick, but effective decisions on how to go about implementing the components of the process. The process that had earlier faced challenges picked up as the teams increased their participation. Micozzi offers the success example of the administrative building (Donnellon & Engelkemeyer, 1999).

The building was designed and built in ten months by nine teams. Therefore, it can be argued that team involvement was the key factor that contributed to the success of TQM process within such a short time.

“Beyond the hanging fruits, the most important outcome of this effort was a different way of working with sales”

This statement was coined by Rotundo when he moved to interface sales with cross-functional teams after succeeding in managing inventories. According to him, customer focus was more important than anything in Gillette. After all, the manufacturing operations undertaken by the firm were determined by its capacity to make sustainable sales.

He likened other achievements of the effort to hanging fruits pointing sales focus as the most important attainment. The sales focus Rotundo had in mind was that of changing the way Gillette looked at its customers. This change was that which responded to the needs of the customers despite their nature or demands. It was a change that the firm could make while looking at things from the perspective of a customer and responding to customer demands without question.

Actually, the quality effort had to be focused on the enhancement of customer satisfaction. According to Daft, Murphy and Willmott (2010), customer is the most crucial stakeholder of an organization as he defines the reason for its existence and eventual success. Other achievements could be important, but lie far below the capacity to drive sales (hanging fruits).

As Rotundo highlights, this driving force could only be achieved by changing the way the firm worked with sales. The fact that customer needs could be clearly understood, the quality management program necessary would automatically be defined. The changed perspective about the customer would actually allow the customer needs to act as the roadmap towards continuous improvement of the quality management practices. Therefore, in spite of the achievement made by quality effort, the influence it could have on sales was paramount.

In response to the call made by Rotundo, Gillette completely changed the way it looked at its customers. First, customer satisfaction became the main purpose of TQM process as Micozzi noted (Donnellon & Engelkemeyer, 1999).

The teams were encouraged to align their goals with the corporate goals in order to drive sales. Starting from the design department to production department to sales department, all teams were involved in TQM process with a focus on their contribution towards customer satisfaction. In fact, the continuous improvement component of the TQM process involved responses to the changing needs of the customers. This is confirmed in the various team projects undertaken in the implementation of the process.

Gillette Argentina also changed the way it looked at the customers by having a special focus on the sales department. The sales teams were encouraged to be more proficient in working together and increase their efficiency to make customers more satisfied. The emphasis on customer needs was real and made the sales team more compelling.

As the local sales manager observed, the emphasis on sales department made people to like working with the team as they learned about the entire firm, gaining a global perspective (Donnellon & Engelkemeyer, 1999). Nonetheless, Gillette conducted continuous survey on customer satisfaction to ensure that the teams were delivering the expected results.

Immediately the teams were formed, the firm conducted customer surveys and customer critiques were assigned to each group. The success was clear-cut in these surveys suggesting the complete change of the firm’s way of looking at the customer.

Initially, Gillette’s organizational culture was characterized by individualism in which there were leaders and subjects to lead. Apparently, the employees got orders from above and had to act upon them without question. Decisions were solely made by the management without any input from the lower ranks.

Each department was assigned to specifically defined roles that were only approved by the management. There were few linkages to other departments with no interaction between departmental employees. Coordination between the departments was the role of managers whereby they advised rather than discussing on the work-related issues.

The employees focused on completing tasks rather than meeting goals and objectives. It can be argued that customer focus was not a crucial factor when working in the company. Workers pursued their interest and the interest of the company had little relevance when performing the assigned tasks.

Even before the implementation of TQM process, Carlos Rotundo had attempted to change the existing working culture. He introduced a quality-focused culture that supported team work with special emphasis on sales. The culture assigned many of the responsibilities to team leaders, but did not give individual employees much autonomy. Clearly, leaders made many of the decisions without any contribution coming from team members.

Each team pursued a specific task that was defined by the customer’s critique identified in the customer survey. Also, the management was responsible for most of the decisions that were beyond teams’ jurisdiction. Departmental interaction was not supported by this culture which ended prematurely after the introduction of TQM process.

The working culture that emerged from the adoption of TQM process was characterized by team work. Each activity that was accomplished in the firm including product design, development, production and offering was the cumulative efforts of individual teams. The team formation involved both the employees and the management. As a result, decision-making at department level as well as corporate level involved all team members.

The culture allowed each employee to contribute to any undertaking of the firm regardless of the source department. The ultimate goal in the new culture was customer satisfaction and all teams endeavored to achieve this goal.

Therefore, working to achieve this goal was the “sign post” of teams’ activities and leaders were not there to give orders but to discuss issues with members. In fact, Rotundo acknowledged that the new culture did not allow for orders, but consensus whereby the management listened to others’ problems and worked jointly to solve them.

The new culture was a supportive culture where tasks were shared among teams as well as team members. Individual employees became more responsible and industrious as they perceived assistance from other members. There was new confidence in their decisions and satisfaction in the tasks completed, especially when they were acknowledged with gifts.

The support formed a platform for knowledge creation and acquisition by the employees due to the focus on identifying problems and solving them. The cooperative working culture gave way to efficiency in the services offered to customers. Employees were willing more than ever to launch their complaints which allowed the managing team to act upon them on time. Thus, the working culture gave room for continuous improvement of the TQM process and eventually improvement on services offered to customers.

The TQM process implemented by Gillette had great tangible and intangible benefits. Perhaps, the economic benefits that came about due to improved performance and wastage elimination are most important. The high performance resulted from increased customer satisfaction which by 1994, the firm topped the list with 8 on a ten-point scale.

The higher economic performance could also have stemmed from the creativity and innovativeness of the firm as the team members acquired new knowledge and ideas. It can be argued that the larger part of the firm’s performance revolved around the capacity to bring new products to the market. The creative culture established by TQM process was clearly described in the rapid growth of financial determinants.

Some of the economic benefits include growth in sales, higher profits, POE decrease, inventory turns increase, and ROA increase. Between 1993 and 1998, sales grew by 19 percent while average profits increased by 22 percent. Period operating expense (POE) decreased by 40 percent while inventory turns increased from 4.8 to 8.7 in that period.

Return on assets (ROA) rose by 60 percent between the years. Profitability attributed to TQM was forecasted at $17.8 million by the turn of the millennium. Another economic benefit directly related to TQM was the expansion of the firm’s facilities. Clearly, the development of the new professional and administrative building was an outcome of the TQM process. The firm was also able to decrease material wastage and increase employee output per unit cost of the labor input.

As competition threat continued to intensify in the Argentine market, Gillette embarked on a TQM system to counter the competition. The challenge the firm faced of getting the employees to take on the system was solved by extensive training, workshops, consultation and proper response to the quality challenges perceived.

Teams were formed and involved in the process for various significances including: to create competitive advantage, to consolidate individual interests with the interest of the company, to act on the recommendations made by ODI, to enrich business ideas within firm, to eliminate departmental barriers, and to improve customer satisfaction.

This involvement allowed for the creation of the necessary working culture and speeded up the implementation of TQM. A different way of working sales that Rotundo had suggested led to the firm changing the way it looked at its customer by having a special focus on the sales, making customer satisfaction the main purpose of TQM process and conducting continuous survey on customer satisfaction. The working culture which changed from individualistic culture to team-working culture benefited the firm economically.

Daft, R., Murphy, J. & Willmott, H. (2010). Organization Theory and Design . Florence, KY: Cengage Learning EMEA.

Donnellon, A. & Engelkemeyer, S. (1999). Quality at Gillette Argentina . Web.

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Case Study: Quality Management System at Coca Cola Company

Coca Cola’s history can be traced back to a man called Asa Candler, who bought a specific formula from a pharmacist named Smith Pemberton. Two years later, Asa founded his business and started production of soft drinks based on the formula he had bought. From then, the company grew to become the biggest producers of soft drinks with more than five hundred brands sold and consumed in more than two hundred nations worldwide.

Although the company is said to be the biggest bottler of soft drinks, they do not bottle much. Instead, Coca Cola Company manufactures a syrup concentrate, which is bought by bottlers all over the world. This distribution system ensures the soft drink is bottled by these smaller firms according to the company’s standards and guidelines. Although this franchised method of distribution is the primary method of distribution, the mother company has a key bottler in America, Coca Cola Refreshments.

In addition to soft drinks, which are Coca Cola’s main products, the company also produces diet soft drinks. These are variations of the original soft drinks with improvements in nutritional value, and reductions in sugar content. Saccharin replaced industrial sugar in 1963 so that the drinks could appeal to health-conscious consumers. A major cause for concern was the inter product competition which saw some sales dwindle in some products in favor of others.

Coca Cola started diversifying its products during the First World War when ‘Fanta’ was introduced. During World War 1, the heads of Coca Cola in Nazi Germany decided to establish a new soft drink into the market. During the ongoing war, America’s promotion in Germany was not acceptable. Therefore, he decided to use a new name and ‘Fanta’ was born. The creation was successful and production continued even after the war. ‘Sprite’ followed soon after.

In the 1990’s, health concerns among consumers of soft drinks forced their manufactures to consider altering the energy content of these products. ‘Minute Maid’ Juices, ‘PowerAde’ sports drinks, and a few flavored teas variants were Coca Cola’s initial reactions to this new interest. Although most of these new products were well received, some did not perform as well. An example of such was Coca Cola classic, dubbed C2.

Coca Cola Company has been a successful company for more than a century. This can be attributed partly to the nature of its products since soft drinks will always appeal to people. In addition to this, Coca Cola has one of the best commercial and public relations programs in the world. The company’s products can be found on adverts in virtually every corner of the globe. This success has led to its support for a wide range of sporting activities. Soccer, baseball, ice hockey, athletics and basketball are some of these sports, where Coca Cola is involved

The Quality Management System at Coca Cola

It is very important that each product that Coca Cola produces is of a high quality standard to ensure that each product is exactly the same. This is important as the company wants to meet with customer requirements and expectations. With the brand having such a global presence, it is vital that these checks are continually consistent. The standardized bottle of Coca Cola has elements that need to be checked whilst on the production line to make sure that a high quality is being met. The most common checks include ingredients, packaging and distribution. Much of the testing being taken place is during the production process, as machines and a small team of employees monitor progress. It is the responsibility of all of Coca Colas staff to check quality from hygiene operators to product and packaging quality. This shows that these constant checks require staff to be on the lookout for problems and take responsibility for this, to ensure maintained quality.

Coca-cola uses inspection throughout its production process, especially in the testing of the Coca-Cola formula to ensure that each product meets specific requirements. Inspection is normally referred to as the sampling of a product after production in order to take corrective action to maintain the quality of products. Coca-Cola has incorporated this method into their organisational structure as it has the ability of eliminating mistakes and maintaining high quality standards, thus reducing the chance of product recall. It is also easy to implement and is cost effective.

Coca-cola uses both Quality Control (QC) and Quality Assurance (QA) throughout its production process. QC mainly focuses on the production line itself, whereas QA focuses on its entire operations process and related functions, addressing potential problems very quickly. In QC and QA, state of the art computers check all aspects of the production process, maintaining consistency and quality by checking the consistency of the formula, the creation of the bottle (blowing), fill levels of each bottle, labeling of each bottle, overall increasing the speed of production and quality checks, which ensures that product demands are met. QC and QA helps reduce the risk of defective products reaching a customer; problems are found and resolved in the production process, for example, bottles that are considered to be defective are placed in a waiting area for inspection. QA also focuses on the quality of supplied goods to Coca-cola, for example sugar, which is supplied by Tate and Lyle. Coca-cola informs that they have never had a problem with their suppliers. QA can also involve the training of staff ensuring that employees understand how to operate machinery. Coca-Cola ensures that all members of staff receive training prior to their employment, so that employees can operate machinery efficiently. Machinery is also under constant maintenance, which requires highly skilled engineers to fix problems, and help Coca-cola maintain high outputs.

Every bottle is also checked that it is at the correct fill level and has the correct label. This is done by a computer which every bottle passes through during the production process. Any faulty products are taken off the main production line. Should the quality control measures find any errors, the production line is frozen up to the last good check that was made. The Coca Cola bottling plant also checks the utilization level of each production line using a scorecard system. This shows the percentage of the line that is being utilized and allows managers to increase the production levels of a line if necessary.

Coca-Cola also uses Total Quality Management (TQM) , which involves the management of quality at every level of the organisation , including; suppliers, production, customers etc. This allows Coca-cola to retain/regain competitiveness to achieve increased customer satisfaction . Coca-cola uses this method to continuously improve the quality of their products. Teamwork is very important and Coca-cola ensures that every member of staff is involved in the production process, meaning that each employee understands their job/roles, thus improving morale and motivation , overall increasing productivity. TQM practices can also increase customer involvement as many organisations, including Coca-Cola relish the opportunity to receive feedback and information from their consumers. Overall, reducing waste and costs, provides Coca-cola with a competitive advantage .

The Production Process

Before production starts on the line cleaning quality tasks are performed to rinse internal pipelines, machines and equipment. This is often performed during a switch over of lines for example, changing Coke to Diet Coke to ensure that the taste is the same. This quality check is performed for both hygiene purposes and product quality. When these checks are performed the production process can begin.

Coca Cola uses a database system called Questar which enables them to perform checks on the line. For example, all materials are coded and each line is issued with a bill of materials before the process starts. This ensures that the correct materials are put on the line. This is a check that is designed to eliminate problems on the production line and is audited regularly. Without this system, product quality wouldn’t be assessed at this high level. Other quality checks on the line include packaging and carbonation which is monitored by an operator who notes down the values to ensure they are meeting standards.

To test product quality further lab technicians carry out over 2000 spot checks a day to ensure quality and consistency. This process can be prior to production or during production which can involve taking a sample of bottles off the production line. Quality tests include, the CO2 and sugar values, micro testing, packaging quality and cap tightness. These tests are designed so that total quality management ideas can be put forward. For example, one way in which Coca Cola has improved their production process is during the wrapping stage at the end of the line. The machine performed revolutions around the products wrapping it in plastic until the contents were secure. One initiative they adopted meant that one less revolution was needed. This idea however, did not impact on the quality of the packaging or the actual product therefore saving large amounts of money on packaging costs. This change has been beneficial to the organisation. Continuous improvement can also be used to adhere to environmental and social principles which the company has the responsibility to abide by. Continuous Improvement methods are sometimes easy to identify but could lead to a big changes within the organisation. The idea of continuous improvement is to reveal opportunities which could change the way something is performed. Any sources of waste, scrap or rework are potential projects which can be improved.

The successfulness of this system can be measured by assessing the consistency of the product quality. Coca Cola say that ‘Our Company’s Global Product Quality Index rating has consistently reached averages near 94 since 2007, with a 94.3 in 2010, while our Company Global Package Quality Index has steadily increased since 2007 to a 92.6 rating in 2010, our highest value to date’. This is an obvious indication this quality system is working well throughout the organisation. This increase of the index shows that the consistency of the products is being recognized by consumers.

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ABM Students Participate at NGA Show

Gained valuable experience at grocery industry event.

Best Bagger

Students assisted with the "Best Bagger" competition.

Student Standout Awards

Students evaluated products and services for the Student Standout Awards.

Case Study Competition

Students developed a business strategy for a grocery chain.

April 16, 2024

Seven agribusiness and food industry management students recently brought home valuable experience and recognition from the National Grocers Association (NGA) Show.

Held at Caesar's Palace Forum in Las Vegas, the NGA Show is a premier event for the grocery industry, bringing together retailers, wholesalers, and a passionate student community that included students from Cornell, University of Findlay, St. Joseph’s University, Arizona State, Kansas State, Auburn, Cal Poly San Luis Obispo and Fresno State.

Students Justin Kipper, Carmen Diaz, Elizabeth Vargas, Ariadna Castro, Megan Ebner, Avalon Anderson, and Irvin Ayon were not just attendees; they were active participants at the show in several activities.

One of the activities was the Student Standout Awards, which tasked them with forming cross-university teams and evaluating hundreds of products and services showcased on the expansive NGA Show Expo Floor.

The floor included 350 companies eager to connect with industry stakeholders. From Center Store and Fresh Food innovations to cutting-edge technology solutions, the students had a front-row seat to the future of grocery retailing.

The cross-university teams each tackled a specific award category: Center Store, Fresh, Health & Wellness, Pharmacy, Operational Services, Sustainability in Store Design & Equipment, and Technology.

Armed with a set of insightful questions, they approached each booth, engaging with company representatives and learning how these products and services could empower independent grocers.

Through these insightful dialogues, the expo transformed into a real-world learning lab for the students, exposing them to the grocery landscapes and giving them invaluable industry knowledge while honing their critical thinking and communication skills.

Best Bagger Competition

Cal Poly Pomona students Castro, Vargas, and Diaz also assisted with the Best Bagger Competition, which puts the spotlight on a fundamental skill in the grocery industry – bagging – and on customer service and company pride.

Grocery store baggers from across the country battled it out for the coveted championship title and a grand prize of $10,000.

The students’ support ensured a smooth-running event and exemplified the collaborative spirit fostered by the agribusiness program.

Student Case Study

In the ever-evolving landscape of the grocery industry, maintaining a competitive edge requires not just adaptation but forward-thinking strategies that anticipate future trends.

This was the challenge the agribusiness management students embraced in the Student Case Study.

Their mission was clear: to revitalize Niemann Foods Inc. by transitioning its County Market stores into B-level stores, rebranded as "Niemann's Market."

Niemann Foods faced the dual challenge of executing a successful rebranding strategy to build customer loyalty while adapting to the changing dynamics of the grocery industry.

The team was comprised of Kipper, serving as the senior program manager, Anderson as head of marketing strategy, Ayon as senior community activities director, Diaz as visual design manager, with valuable contributions from Vargas, Castro, and Ebner.

Under the expert guidance of Lecturer Katie Horvath, a seasoned professional with 15 years of experience in the grocery and consumer packaged goods) retail sector, the student consultant team embarked on a journey to redefine the shopping experience at Niemann's Market

The key questions posed to the student team revolved around creating an integrated shopping experience, aligning the rebranding with future customer preferences—especially in the fresh category—and differentiating Niemann's Market in the coming decade.

The students' proposal focused on leveraging technology and community engagement to revolutionize the shopping experience at Niemann's Market. Their strategic plan included the implementation of Custom Shelf Talkers and new cost-saving Electronic Shelf Labels (ESL) Digital Shelf Tags.

These innovations aimed not only to enhance the in-store experience but also to achieve significant cost savings through labor reduction and efficiency in promotional activities.

Furthermore, the team devised a compelling marketing strategy titled "Look closer, find more at Niemann's," emphasizing the unique value proposition of the rebranded stores. By integrating these elements, the students projected a rate of investment of 73 percent or more, with substantial savings in labor and material costs, while also saving valuable time spent on price changes each week.

Gerry Kettler, Niemann’s director of consumer affairs, lauded the students' presentation, highlighting the impactful ideas they brought to the table.

"Your students rocked the presentation with their ideas! I cannot wait to work with these students," he remarked.

Although the team did not clinch the top prize, their innovative cost-saving initiative caught the attention of independent grocers across the United States, with seven grocers keen on implementing their strategies.

As these bright minds continue to make their mark on the industry, the experience gained from the Student Case Study serves as a foundation for their future endeavors. Their work with Niemann's Market is a testament to the transformative power of innovative thinking in maintaining a competitive edge in the dynamic grocery industry.

The collaboration between Cal Poly Pomona students and Niemann Foods, Inc. exemplifies the potential for academic institutions and industry leaders to work together in addressing real-world challenges.

The students' ability to apply their knowledge, creativity, and strategic thinking to a complex business scenario underscores the quality of education and training provided by agribusiness and food industry management program at the Huntley College of Agriculture.