Total Quality Management
EXECUTIVE SUMMARY

Crusty bakeries established in 1999 based in Sydney have been characterized by their ways of issuing commands and orders in a hierarchical structure, authoritative leadership styles and rigid control systems. The company has established certain standards for performance to avoid bad reputation and legal problems. Crusty bakeries have been working hard to provide quality bakery products that fit the need of their valued customers. Crusty bakeries value

Total Quality Management

hygiene a great deal and have focused on becoming the industry leaders in the next five years. Their competitors are bakers delight and brumbies having a market share of 34% and 27% respectively while crusty bakeries have a market share that is only 18%. A recent survey indicates that 72% of the respondents are satisfied with the standards of the product, however a number of improvements are required by the company that includes improvement of service staff, increasing the product range and launching a business website to better serve the customers and increase market share. The company has decided to go through an effective transformation and total quality management (TQM) will be used as a framework. Results are expected to be realized within the next 12 months.

Planning an effective transformation of the organization is critical and should be well planned and managed so to avoid skepticism and effectively define the company goals to the employees and staff members. The transformation requires some principles of change management to be utilized in order to deliver effective results.

INTRODUCTION

BACKGROUND

The business has produced good results over the past few years and the company is striving to become the industry leader however there is stiff competition in the market mainly from the two most important competitors having a high market share. Looking at these competitors and analysing their ways of doing business, it has been found that the customer wants more than just quality. Customers of Crusty bakeries are satisfied with the quality standards but there is a need for change in order to compete, increasing product range and improving the service staff. The firm needs a transformation that requires integration of all the organizational functions that include finance, marketing, design, production, and customer service to focus on the customer needs and organizational goals and objectives. However, this transformation will require effective communication with the employees, the company needs to share objectives and expected results with the employees in order to avoid skepticism and increase employee retention rather than ending up losing employees commitment.

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AIM

There are three aims of the report is the first to examine the current situation of Crusty bakeries and identify the need for an effective transformation. The second aim is to build an effective action-plan for successfully implementing the Total Quality management for the company’s transformation. This action plan should be highly planned and well managed from high level strategic planning and fact based decision making to a detailed execution of the plan. Third and the last aim of this report, is to measure the level of success on a rating scale to identify the success of the transformation process.

SCOPE

Total Quality Management

The report is based on crusty bakeries and uses appropriate approaches to successfully develop an action plan for implementing total quality management in the company. The report will also focus on customer perspective and will compare the company’s success with its competitors. The action plan for the implementation of an effective total quality management TQM will be planned from high level strategic decision making to a detailed execution of the plan. The report also considers that some principles of change management are important to take into consideration when taking a business transformation initiative in order to gain employee support and stakeholders’ support. The first part of the discussion presented in the report presents an effective plan for implementing total quality management, this step wise plan will be discussed on who will do what and how processes will be carried out effectively, and the second part will measure the level of success of the implementation process. A rating scale will be used to measure the level of success and the findings will be examined and carefully analysed in order to prove that the implementation was successful. The last two parts of the report provide conclusion and recommendation that have been derived from the discussion. 

DISCUSSION

TQM ACTION PLAN

Total quality management views an organization as a collection of processes. The company must make efforts to continuously improve its business processes by incorporating the knowledge and experience of its diversified work force. The company through its process of transformation will avoid the mistakes that have been made in the past and prevent the defects that can arise in the future thus achieving constantly improved results in the technology, production, customer service, and all other business processes.  The company will be using the Total Quality Management (TQM) element approach for the transformation process, key business processes and units will be considered to foster improvements using the tools of total quality management (TQM) this approach was widely utilized in the 1980’s (Westcott, 2006). The implementation process structure contains steps for the implementation of the total quality management and the action plan is based on the implementation process published in Total Quality Management: A continuous improvement process the implementation is focused on these steps and each step has been explained on how the process will work (PHCC, 1996)

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OBTAINING CEO COMMITMENT

This step provides a critical mass of the company’s top management’s understanding, support, awareness and commitment to implementing total quality management. This step involves understanding of Total quality management and the company’s need for change.

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