Binalonan, Pangasinan
Semester | A.Y. 2020-2021
Module 1
Total Quality Management
2nd
Course Title: Quality Services Management in Tourism and Hospitality
Course Code: THC 9
Name: ___________________________________
Course and Year: __________________________
Date and Time Allotment: February 1, 3, 5 (3 hours)
Week 1: Orientation
Introduction
This module entitled Total Quality Management is the continual process of detecting and reducing
or eliminating errors in manufacturing, streamlining supply chain management, improving the customer
experience, and ensuring that employees are up to speed with training.
I.
Objectives:
In this module, you will:
1. Define and explain what TQM is;
2. Identify primary elements, core concepts and benefits of TQM.
3. Understand the role of TQM in the Tourism and Hospitality Industry
II. Lecture and Discussions of the lesson/s
Introduction
Total Quality Management is not a fresh idea. The approaches advocated by William Deming,
Juran, Crosby, and others have long been used by well effective managers. The most noteworthy
feature is the level of mutual trust that is needed by both management and staff to create a culture
in which an effective quality management program can be successful. Quality is currently
everyone’s task, not just the inspection department. People are anticipated to seriously weigh up
their jobs and make the first move to improve their part of the process. Open objective
measurements are necessary.
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TQM was develop by William Deming; a management consultant whose work hard had a great
impact on Japanese manufacturing. While TQM shares much in common with the Six Sigma
improvement process, it is not the same as Six Sigma. TQM focuses on ensuring that internal
guidelines and process standards reduce errors, while Six Sigma looks to reduce defects.
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Total quality management (TQM) is an ongoing process of detecting and reducing or
eliminating errors.
It is used to manufacture to streamline supply chain management, improve customer
service, and ensure that employees are trained.
The focus is to improve the quality of an organization’s outputs, including goods and
services, through continual improvement of internal practices.
Total quality Management aims to hold all parties involved in the production process
accountable for the overall quality of the final product or service.
Total Quality Management Principles
No single accepted body of knowledge exists for total quality management, as does, for example, the
Project Management Body of Knowledge (PMBOK) for the Project Management Institute. Similarly, no
prescribed actions exist for implementing TQM methods and tools. Organizations have been free to deploy
and adapt TQM as they see fit, giving way to many definitions of the methodology. Despite these
challenges to standardization, it is possible to describe generally accepted principles:
 Customer Satisfaction
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Employee Commitment: This creates empowerment through training and suggestion
mechanisms.
Fact-Based Decision Making: Teams collect data and process statistics to ensure that work
meets specifications.
Effective Communications: There should be an open dialogue throughout an organization.
Strategic Thinking: Quality must be part of an organization’s long-term vision.
Integrated System: A shared vision, including knowledge of and commitment to principles of
quality, keep everyone in a company connected. Taiichi Ohno recognized that even suppliers are
an important part of the system.
Process-Centered: You can deconstruct every activity into processes, and, therefore, locate and
repeat the best process.
Continuous Improvement: Every employee should always be thinking about how to better
perform their job.
Why Is Total Quality Management Important to an Organization?
Nichols says that TQM tools and principles acquire power not when an organization creates a dedicated
quality department, but when it includes the whole company in the pursuit of high quality. An example is the
quality circle, in which workers directly involved in a process brainstorm to discover solutions. “People are a
fabulous resource that is frequently underutilized. The leadership often doesn’t recognize the value that
they bring to the everyday workplace. Employees know how to fix problems,” asserts Nichols. In addition to
tapping a native resource, implementing a TQM philosophy can help an organization:
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Ensure customer satisfaction and customer loyalty
Ensure increased revenues and higher productivity
Reduce waste and inventory
Improve design
Adapt to changing markets and regulatory environments
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Increase productivity
Enhance market image
Eliminate defects and waste
Increase job security
Improve employee morale
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Reduce costs
Increase profitability
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What Are the Costs of Quality?
A fundamental tenet of TQM is that the cost of doing things right the first time is far less than the potential
cost of re-doing things. There are also residual losses when customers abandon products and brands for
quality reasons. Some schools of thought view quality as having a cost which cannot be recouped. Juran,
Deming, and Feigenbaum held a different view. For advocates of TQM, the cost of quality really describes
the cost of not creating a quality deliverable. There are four primary cost categories:
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Appraisal Costs: Appraisal costs cover inspection and testing throughout the production cycle.
This includes verifying that the materials received from the supplier meet specifications and
ensuring that products are acceptable at each stage of production.
Prevention Costs: Prevention costs include proper setup of work areas for efficiency and safety,
and proper training and planning. This type of cost also includes conducting reviews. Preventionrelated activities often receive the smallest allocation of a company’s budget.
External Failure Costs: This category concerns the cost of issues following a product’s market
release. They may include warranty issues, product recalls, returns, and repairs.
Internal Failure Costs: Internal failures are the costs of problems before products reach
customers. Examples of internal failures include broken machines, which cause delay and
downtime, poor materials, scrapped product runs, and designs that require rework.
How Do You Implement Total Quality Management?
Plan: The planning phase is the most important. That’s where management, along with the
associates, identify the problems to see what really needs to be addressed — the day-to-day things
that may be happening on the productivity side that management is not aware of. Therefore, they are
trying to determine a root cause. Sometimes, employees do research or high-level tracking to narrow
down where an issue may originate.
Do: The doing phase is the solution phase. Strategies are developed to try to fix those problems
identified in the planning phase. Employees may implement solutions and if a solution does not
appear to work, it is back to the drawing board. In contrast to Six Sigma, it is less about measuring
gains and more about whether the employees judge the solution to be working.
Check: The checking phase is the before and after. Therefore, after you have made these changes,
you see how they are doing.
Act: The acting phase is the presentation or the documentation of the results to let everybody know,
‘Hey, here’s how we were doing it. Here is how it is now. This is the new way, and this is what this
should address going forward.
The Key Players in Total Quality Management: Customers, Suppliers, and Employees
To achieve success with a total quality management program or any other improvement methodology,
managers must understand the quality goals for their product or company. They must then communicate
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those goals, in addition to the benefits of TQM, to the company, as employees play a vital role by
contributing their intimate, day-to-day knowledge of product creation and processes.
TQM is a philosophy that values comprehensiveness. Therefore, suppliers are a crucial part of TQM
execution. Companies must vet new suppliers and regularly audit existing suppliers to guarantee that
materials meet standards. Communication with suppliers about TQM goals is also essential.
Customers are the most significant part of the TQM equation. After all, they are the reason for TQM’s
existence. Aside from the obvious feedback the sales team provides, customers — product or service users
— give information about what they want from the deliverable, whether that deliverable is tangible or a
service.
Other References:
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Reid, R.D, & Bojanic, D. C. (2009).Hospitality and Tourism Management
Prepared by:
JEREMIAH C. TORALBA
Faculty, CHM
Checked by:
MARJORIE H. GABAT, MBA.
Program Head, CHM
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