TQM

Introduction

In the early 1990s, the concept of Quality Service as a differentiating factor came to life in the hospitality industry. Hotel companies and restaurants implemented quality assurance programs and referred to their quality service in their advertising. Significant efforts were made to implement Total Quality Management practices – which at that time had been ubiquitous for years in the manufacturing industry – in order to not only maintain product quality, but more specifically to improve their service quality. And for the first time a hotel company, namely The Ritz-Carlton Hotel Company, won the prestigious Malcolm Baldridge National Quality Award, which is presented to organizations for providing outstanding quality products and services.

This paper will review the definition and components of Total Quality Management; explain its history; describe some of TQM related organizations and awards; introduce its most celebrated intellectuals; and illustrate some of ideas, techniques and principles, and how those were implemented in certain restaurant chains. We will conclude this essay by giving a narrative of how the Ritz-Carlton Hotel Company successfully manages for Quality, and thus becoming the benchmark of all luxury hotel chains.

What is TQM?

Total Quality Management (TQM) is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. TQM has been one of the most influential methods used in managing business processes over the last 30 years. It has been incorporated as a vital component in the management systems of some of the world's most successful enterprises.

TQM is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. It is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations.

Some of the companies that have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor ...

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...creases.

3. Better quality leads to higher market share, which allows the company to raise prices.

4. Thus, profits increase.

5. Thus, the company creates more jobs.

Some of the most basic principles include an unwillingness to accept any defects or mistakes, an environment that fosters continuous improvement in all processes and a focus on customer feedback as a primary gauge for quality. TQM programs also require the implementation of some sort of statistical process software to find, correct and virtually eliminate the defects in company processes.

While the Japanese listened to Deming, American industry did not. The American industry went back to the old established ways of trying to meet consumer market opportunities.

Deming predicted the Japanese adoption of these methods would put their products in demand throughout the world in five years. He was wrong; within four years the Japanese had gained large shares of some markets.

However, in order to compete and survive, the rest of the world was very soon forced to take his ideas seriously, adopting "Japanese methods" such as TQM.