strm023- thuy anh

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Table of Contents1 Introduction ................................ ................................ ................................ ................................ .... 2

2 Body ................................ ................................ ................................ ................................ .................... 2

2.1 Organization context ................................ ................................ ................................ .......... 2

2.1.1 Overview ................................ ................................ ................................ .......................... 2

2.1.2 Pho24s operational process ................................ ................................ ................... 3

2.2 Literature review................................ ................................ ................................ .................. 6

2.2.1 Concepts ................................ ................................ ................................ ........................... 7

2.2.2 Framework and application ................................ ................................ .................... 8

2.2.3 The appropriate framework for improving Pho24 quality .................... 12

2.2.4 Operational benefits and Quality management for the next 5 years . 13

2.3 Managing quality: a case study of Pho 24 ................................ .............................. 14

2.3.1 Applying the concept ................................ ................................ ............................... 14

2.3.2 TQM framework implementation: challenges need to be overcome 16

3 Conclusion................................ ................................ ................................ ................................ ..... 16


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1 IntroductionNowadays, with the rapid opening of many businesses all over the world, the

competition between organizations become more and more fierce. One of the keyfactors that create competitive advantages for these businesses is their quality so

total quality management (TQM) becomes more and more the popular phrase in

business context.

Pho24 is well known in Vietnamese market as the first mover who opens numerous

of Pho restaurant in Vietnam. Their restaurant that mainly served Vietnamese

traditional noodle now they have their restaurant opened not only in many cities in

Vietnam but also in Indonesia, Hong Kong, Korea, Australia and America. There is the

fact to manage the quality of these restaurant in different business context is their

challenges for the upcoming period.

This paper aims to analysis the concepts, application and framework of total quality

management and specially illustrate these idea by the case study of Pho24, a

restaurant chain.

2 Body2.1Organization context2.1.1OverviewPho24 restaurant chain belongs to Nam An Group, the biggest F&B Corporation in

Vietnam. Opening the first restaurant in 2003, Pho24 achieved many successful on

the way to building their brand and also expand their business rapidly by opening

more than fifty restaurants in Vietnam and five overseas. In Vietnam, Pho is the most

favourite traditional food however; it is usually seen as a street food with no


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guarantee in the quality. Pho 24 was open to serve Pho with high standard and

service but still reserve the traditional value. (pho24.com.vn, 2009)

The price of Pho 24 is much more expen sive than the street restaurant; furthermore

the income of Vietnamese is low in general so their main customers are the middle

to high class or offices employees. Besides, they also aim to introduce Pho to foreign

tourists.

Pho24 definitely the market leader while they are both have the Order-qualifiers and

the Order-winners. With the order-qualifiers they are have the dish tasty, keep the

traditional recipes of Pho so the taste are as good as old -traditional Pho restaurant.

In term of Order-winners, they provide the Pho with high standard services that

includes staffs, facilities and accommodations enhancing with tradition tasted and

value. They also guarantee about their food safety, which are the problems of many

Pho street restaurants. Besides that, the brand is well-known and they add more

value for the population traditional food like Pho.

2.1.2Pho24s operational processThe main operational process of Pho 24 could be described in figure 1 with steps and

detail. The main operational process of Pho24 is the welcome, taking order, making

and serving the dish. This process will begin when the guest go inside the restaurant

and finish when they make payment and go out. These services -delivering process

includes many stages which also take many times for processing and delay which is

described clearly in figure 1. The quality of foods and services are depending on this

main process and each of these stages will affects customer experiences as the

whole. Thus, this main process evolve the contribution of many staffs and need the

supporting of others process in the restaurant. This paper also mention about four

supporting process which will show in figure 2.


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Figure 1: Phos 24 Restaurant main process

(Sources: Southern, 1999)


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Fi

u 2: 4suppo tin

p o ss fo Pho24 mainp o ss.

y Capacity andsch dulin management The idea of capacity and scheduling management is the operation processes which

help the manager make sure that the capability or the resources for example staff,

table or kitchen could meet the need of customers level. The capacity management

aims to deal with this variation as cost effectively as possible (Namkung, 2008). For

example, the resources requirement for peak time of Pho24 is in breakfast so they

need to adjust the capacity available to serve their customer and make the main

process flow smoothly.

Main

p ocess:

Services

delivering

Capacity and

scheduling

management

Training

Purchasing

And

Inventory

management

Customer

relationship


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y Training management Pho 24 restaurant is a services delivery in which the staffs could not be separately

with customers. One of the Order-winners of Pho 24 restaurant is serving traditional

food with high standard services so training is also one of the most important

processes. The staffs need to be standardized and understand the culture of the

company. They are required not only be trained about the skill like welcome, take

order, serving but also the attitude, ethics and perception toward the brand. All of

these need to be programmed and scheduled before the staff actual working.

y Customer relationship Updating database, remind customer special events or promotion and gi ve

customers offers or gifts and many more to manage the relationship with customers

in their specials day are what customer relationship management process need to

do. Keep in touch with customer helps Pho 24 investigate customer perception

toward their services as well .Thus, they could fix the problems, adjust their services

and diversify their food to meet the need of their customers.

y Purchasing And Inventory management Purchasing and inventory is very important process in restaurants because the cost

of operation and the quality of the food are depends on this process (Barlow, 1997).

Hence, this process also needs to process and supervise carefully. The process

required the manager not only need to process through many of steps which involve

many stages for example selecting supplier, quality check of raw material, inventory

schedule and instruction, forecasting for purchase and many more.

2.2Literature reviewQuality products or services always the goals which every company desire to carry

for their customers in order to improve their competitive advantages as well as their

performance. However, it is not easy to manage and achieve that goal when even


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the term of quality and total quality management still one of the most augment topic

with various definition, concept and framework.

2.2.1ConceptsThere are some different definition of quality which based on operation view and

customer view. According to Slack et al (2004), in term of operations view quality is

the consistent satisfy specific customer need by providing value based approach.

Garvin (1988) defined quality in five different ways: Transcendental, products based,

user based, manufacturer based and value b ased. He believed that each of people in

the organization defined quality differently depend on their perception. Conversely,

in term of customers, it is very difficult to define what quality is because each

customer has different personal value and percep tion. Thus, the word quality is

different with different customers. Illustrate quality with different perspective,

Crosby (1979) emphasis that with whomever, quality is conformance to requirement.

This definition seems the simplest and easiest to understan d for the term of quality.

Understanding quality made it is easier to approach the idea of TQM. Well -known all

over the world like the revolution which helped Japan revise from their ash after

World War II, TQM is development with many individual philosop hies (Plenert,

1996). Hence, there are three individual could be consider as a TQM guru. They are

Juran, Deming and Crosby, after that Garvin and Oakland gather and sum up all of

these discussions (Miller, 1996). In his book, Oakland (2003) pointed out that TQM is

what organization using to improve their effectiveness and flexible which evolve the

whole organization at every single person and level. What Oakland mention are more

illustrate about the organization situation while in another definition, Chase and

Aquilano (1992) concerned more about customers point of view. They defined TQM

is how to manage the organization to meet or exceed the customer important

dimension in term of product or services. Both of these ideas bring the complete idea

for TQM definitions.


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2.2.2Framework and applicationTotal Quality Management could not be applied in a short term , it need 2 or 3 years

to achieve tangible result (Fisher, 1995). Thus, It need a model or a framework to

follow. Thus, there are many ideas about the framework of TQM and how to apply

these ideas in to the particular organization. As same as its concepts, there are also

three stands out frameworks. They are Deming, Crosby and Juran frameworks which

are known as the early of TQM framework.

W. Edward Deming has a framework of 14 points which show on Appendix, part A

(page 20) provide the frame work improve the management of the organization. He

found the customer is the most important part in the concepts, he showed that the

company should reduce the cost by doing less waste, less re work and lower cost and

using cross functional team could be used to improve quality of products, services

and also reduce cost. His framework show the way for company how to be the

survivor and how to be competitive on the market (Reed et al, 2000).

Phil Crosby offered 14 steps to improvement (appendix part B, page 21) while Juran

develop ten steps to improve quality (appendix part C, page 22). All of three authors

point out that TQM framework needs to be concentrate in to two main items

improving customer satisfaction and reducing the cost. Besides that, the organization

also needs to pay their attention in edu cating their employee about the quality

concept and train them how to use the quality tools and technique. Organization

culture needs to be built with all the individual need to think about quality how to

produce quality. Deming and Juran believe most quality problems are due to

management, not employees so its need to have the breakthrough and control

activities (appendix D, page 24) (Zhang, 1997).

All of these three framework has been generated and illustrated in Oakland Simple

framework which showed in figure 1, many public organization find this framework

are easy to apply and use in their case.


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Figure3: Simple framework of TQM

(Sou

Oakland 2003

This framework show that Culture and communction play very important part in the

TQM. Nevertheless, the most important element is the commitment of every single

individual in the organization while Customer and supplier within their quality chain

play the heart role in this model (Oakland, 2003)

Go together with the development of many TQM framework, there are also many

quality award model which are well known as Japaness Deming prize, Malcolm

Baldrige National Quality award (figure 2) or European Quality Award by European

foundation for Quality management (figure 3). Each of these awards develope their

framework and could be used as a model for organization in diffrents situation and

help them in the way to quality approachment. In 1990s, These models are even

used not only for quality model but also as the frame work for quality frameworks as

well (Anjard, 1998).


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Figure 4: Malcolm Baldrige model

(Source: Badri, 2006)

Figure 5: EFQM model

(Source: Sac

, 2009)


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After reviewing and base on the outcome of these models, Oakland (2003) introduce

his new framework which he considers it is the frame work of 21st

century. It is 4Ps

and 3Cs of TQM.

Figure 6: Oakland New frame work

(Sou

Oakland 2003

This framework capture and gather all of the ideas of many early frame work, it

shows the important of 3Cs which are Culture, Communication and Commitment.

Futher more, in order to achived the goal it need to be includes 4Ps: People, Process,Perfomance and planning.


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2.2.3The appropriate framework for improving Pho24quality

This is the fact that the competitive in the market always is fierce and customers

have their power to choose and change. Hence, each organization always need to

refresh, improve and Pho24 is not an exception. Improvement quality of the services

is a desire of every managers and in term of restaurant the frame work should apply

is iso 9000: 2000. Iso 9000: 2000 is the standard that provides a set of standardized

requirements for a quality management system and it also provide a framework to

managing an organization processes (ISO, 2010) According to Tague (1994)

Implemeting ISO 9000:2000 not only make strong empower involvement but also

sucessful in customers focus. Futher more, this framework also standardize the

services, advoice the inconsistantcy in the services and also increase the interaction

between department.


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Figure 7: Model ofa process-based qualit!

management s!

stem

(Sources: Qua " ity-factors cambridge u # , 2010)

It is als$

moresimple for organization to use PDCA process which well-%

nown as

operating principle ofIS&

's managementsystem standards'

Figure 8: PDCA process

Sources: Bateman (2002)

2.2. Op r i l b i d Qu li r h5 r

Applying a quality management for the company will bring the organization many

benefits which both come from internal and e(

ternal. For internal ofthecompany) it

reduce the cost of the failure)

increase the work orientation as well as employee

working enviroment and motivation and last but not least, improve the quality

management system. In term of e(

ternal, the image of the company definitly

improve as well asthe positive perception ofcustomerstoward the organization and

will limited the over-e(

pectation ofcustomers (WTO,2001 0


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Bringing organization many benefits, so the future development of TQM to meet the

requirement of organization and rapid market change also is an issue which take the

anticipating of many manager and reserchers. In his resserch, Mc Adam (2004)

believe that Six sigma which requires committed and charismatic leadership to be

successful is a long term continuous improvement system. Figure 9 below will show

the authors predict for the future development of TQM .

Figure 9: The future of TQM

Sou1 2

3

4

(McAda5

6 20047

2.3Managing quality: a case study ofPho 242.3.1Applying the conceptFor years of operation the main proplem that affected the quality of Pho24 are: the

communication between staffs is not effective, employee do not see quality is their

responsibility. In addition sometimes, the quality of the services is not consistancy

and even there are some mistake the wrong services still giving for customer.


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This proplem could be solved by implementing Iso 9000 is the expectation , Pho 24

should do the Plan-Do-Check-Act to improve their TQM.

y PlanPho 24 need to identify what their customer need: it could be quicker

services, helpful staffs and consistancy quality of the food this steps could do

by survey their customer. Then set up their mission, vision and value and

objective for their TQM to improve the quality. In this process, the manager

need to make sure that the improvement of the quality is everybody

responsibility so it will increase the attitude of the employees in the process.

y DoChoose the new process to improve the quality to implement for example

change the tranning management, change the capacity management and also

change the main service process by cutting delay time that make the process

save time and make customers more satisfied . Make sure the project need to

have enough resources like people, consultants, equipment and many more....

y CheckCheck the result of the new process, review and analysis the outcome. This

steps help the manager could make sure that they are follow the right track

and check it operates god or not. Pho24 manager need to run the process to

find and fix the error of the process so they could fix it on time.

y ActThis step is continualy make improvement for the process. After the new

process get throgh they need to do the process for fluences and make it

become more and more value.


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2.3.2T M framework implementation: challenges need to beovercome

According to Graham (1992), The worker in the manufacturing he produce the visible

product , in services the staff are not aware what they are produce and they could

not manage all the outcome the same quality. So one of the most challenging of

Pho24 when they applied the process is their staffs. The perception of ethic working

in Vietnam is not high , in addition the income of the labor is low. Thus, the

employees for Pho24 have high turnover staffs so they will meet the diffculty in

trainning and keeping their staff . Hence, the quality and the consistancy of the

services become more and more difficult to manage.

Besides that, One more challeng e is the envolve of customer apperance in the

process make the quality of the services are more difficult to predi ct and manage.

3 ConclusionTQM has appeared for many years ago, there are also many gurus with different

concepts, frameworks but they have the same goal that is improving the

performance of the organization based on quality improvement. Had applied and

tested through many organization real situation, TQM become one of the most

important part of organizations operation management. However, the rapid change

of the market, the exist challenges makes thi s process need to improve to catch up

with the situation. The future is unpredictable but when the manager are prepared

and acknowlegdment by doing TQM proactive not reactive so it be come easier.


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References

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21.Slack, N. and Chambers, S. (2009) Operation and process management:principal andpractice for strategic impact. 2nd ed. Essex: Pearson Company

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I. AppendixA. Deming s 14 point Plan for TQM

(Source:1000 advices)


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B. Cosby 14steps(Sources: Oarkland,2003,p.19)


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C. Juran stenstepstoqualityimprovement(Sources: Oarkland,2003,p.19)


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D. Breakthroughactivities Juran and Gryna(Sources Zhang, 1997)


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