Rationale for adopting TQM
Assessment Description
This project is a group assessment. Based on the number of students in class your groups can
include three or four students. Each group has to select one local company/ organization that you
are familiar with (the company itself, or the industry it may belong to).
You are asked to write a report that explains your plan to improve quality in the company/
organization. The plan should include the following information as it applies to the company /
organization you have chosen:
Company background
Include a brief description on the company/ organization of your choice and also make
sure to include vision and mission statements. List strategic objectives for the company
then conduct a SWOT analysis to only list major factors in each category of the analysis.
Rationale for adopting TQM
This section should include how TQM should help the company/organization achieve
competitiveness. Core competencies are to be stressed along with competitive strategies.
Implementation of ISO 9000 should be discussed in relation to TQM.
Requirements for improving Quality
This section should include the following information as they are required for
implementing and improving quality:
– The relationship between strategic management and TQM.
– Mechanisms developed by the company that focus on their adoption of one or
different philosophies and their impact on their success.
– Leadership factors that are critical for success of quality program in the company.
– A description of the culture adopted by the company and its appropriateness to the
quality system.
– Policies adopted by the company in order to operate ethically, the role of managers in
that respect, and relevance of ethics to quality management.
HIGHER COLLEGES OF TECHNOLOGY
BAS Business Administration
Coursework – Group Assignment, Oral Presentation
2 of 2
– Policies adopted by the company in order to achieve a motivated workforce and to
find its employees’ needs.
– Mechanisms adopted by the company to detect customers’ changing needs on a
continuous basis.
– Mechanisms adopted by the company to build partnerships in order to continuously
improve quality.
– The relationship between ISO 9000 and TQM and their benefits.
Implementation plan with justification
This section should include a plan to improve quality. As the company/organization has
already implemented some level of quality, the description of the existing quality
processes should be included in addition to the plan for improvement..
The report should be between 4000-5000 words and in APA format.
The oral defence is to be done individually and is worth 10%.
Solution
Introduction
Objectives of businesses differ depending on various factors such as the type and size of
business, with more advanced and complex businesses having more complicated goals.
Achieving these goals relies directly on the quality of goods and services offered by an
organization. Organizations use their strengths against competitors to make more and long-lived
profits. Identification of what the business needs to be doing so as to have competitive advantage
is one step towards achieving the set objectives. To other businesses, historical checks of their
industry or the business itself help in setting up the plans towards improving the quality of
products or services they offer. The purpose of this paper is to create a clearly outlined plan that
will facilitate the improvement of quality of services at a car-washing company owned by the
Alnuaimi family.
Company Background
The Alnuaimi Car-washing company was started to offer services in the town and give
revenues to the family and the people who got employment opportunities in it. The major
activities that were involved in this business were casual labor where unskilled employees
including family members would offer their unskilled services. In its advent, it allowed the
employment of more than a hundred casual laborers, most who were not family members. The
main reason why this was an easy business to start is because there were few effortless
requirements including skills and expertise. The fact that unskilled labor usually required lesser
compensation also promoted the generation of this kind of business as the Alnuaimi family did
not have to incur extreme expenses. The family also saw an opening as there were no enough
car-washing businesses and most of the ones that existed did not meet consistently the market
needs.
ALNUAIMI FAMILY CAR WASH 5
Towards the year 2000, the company had gained a lot of popularity among many locals
which helped as a competitive advantage. The family had a reputation which helped them have a
large number of employees even at a low wage based on the years of experience the employees
have gained until this year. The many employees; more than 500, ensured that the services
offered in this business were reliable. The Alnuaimi family hired a qualified manager who will
help improve the company’s incomes through applying his skills and knowledge for the purpose
of official dealing. However, the major challenge that has been arising in the past few years is
lack of satisfaction among the employees due to low pay. Unhappy employees give low quality
services hence could send away existing and new customers.
Vision and Mission statements
The company aims at being the best car wash service provider in the whole area by
making more profits every year as compared to the competitors. The aim to establish better and
most satisfactory working conditions for the employees is also of utmost importance. The
Alnuaimi family car wash has a mission to give quality car-washing services to all the car
owners of the area as well as those in the rest of Dubai, whether small cars or large commercial
cars.
List of strategic objectives
1. Achieving profits that are reliable and sustainable through proper care given to
customers.
2. Increase professionalism among the employees.
3. Improve the relationship with stakeholders such as family, investors, local and national
customers and local authorities.
ALNUAIMI FAMILY CAR WASH 6
4. Gain or regain customer loyalty as the main purpose to maintain the business
performance.
5. Raise standards and skills of employees by treating them with utmost importance.
6. Set up a good relationship with the suppliers for example by helping in advertising for
their products.
SWOT Analysis
Achievement of sustainable and reliable profits
The company has the first-movers advantage which acts as the strength in that customers
were well aware of the company long before other car-washing businesses were established. The
weakness of this particular business however is the ability to maintain customers thus chances of
sustaining the profits are low due to the fact that quality of services has decreased. The company
has the opportunity to make the profits more reliable because the level of costs incurred is lower
because of the minimum wage level. The major threat being faced in achieving this objective is
losing employees as they try to search for better and higher payments. The process of looking for
other trustworthy employees may take a long time and this will slow down the activities leading
to loss of customers. The level of innovation of employees should also be used in achieving extra
profits, (Hung et al, 2011, p. 213-225).
Increasing professionalism among employees
The customers have been receiving the services from the same people as most of the
employees are family members hence they are more experienced because they have worked for a
long time. The company has a weakness in not wanting to make a pay rise to the most efficient
workers and thus stand the chances of losing such reliable workers. Since the reputation of the
ALNUAIMI FAMILY CAR WASH 7
company is based on the family background, there is a high opportunity to get more qualified
personnel. The threat however is that professional car cleaners will always demand a higher
compensation level which will man lower profits for the business. Though the employment of
professionals will lead to some undesirable occasions, it will still add some competitive
advantages especially due to the new entrants in the car washing market, (Gao and Peng, 2011, p.
796-808).
Relationship with stakeholders
The Alnuaimi family car wash has been able to maintain an appropriate relationship with
the authorities and investors by ensuring that governmental rules are followed and investors’
money is well utilized. The management is failing in creating a good relationship with the casual
laborers by denying training opportunities and higher payments. The locals have known this
business for a long time and are thus loyal to the business, which gives them a competitive
advantage over other businesses. Emergence of other businesses with higher technological and
professional characteristics poses a threat to the business as the loyalty of initial customers will
be reduced. In order to keep the stakeholders comfortable, it is therefore important to keep up
with the necessary changes that will ensure satisfaction of individual stakeholders.
Gaining and regaining customer loyalty
As the current state of the business, most of the loyal customers are intact since the
services offered are quick owing to the large number of employees. However, a good number of
employees especially the old ones who have made the business successful since its onset might
leave because of the pay grade. The opportunity for this business relies upon the high chances of
new more qualified employees wanting to work in the organization. The threat of employees
leaving with their personal customers is a major challenge since employees determine to a high
ALNUAIMI FAMILY CAR WASH 8
level the loyalty of customers. So as to achieve customer loyalty, it is thus important to establish
proper relations with casual employees.
Raising standards and skills of employees
Raising the standards for hiring new employes calls for a stress in the experience level
such that even a family member might not be employed if he or she has not undergone training.
The opportunity presented in this case is that biasness will be reduced and higher quality of
services will be ascertained. However, the family relations will be affected as this is a family-
owned business, Corredor and Goñi, 2011, p. 830-838). Better opportunities for qualified
personnel are available as the business has been highly profitable. The threat that is posed is on
stakeholder’s relationship as some of the investors happen to be family members without
professional skills. In achieving this objective therefore, it is important to include training of
employees as a basic requirement for both the old and the new employees, (Jha and Joshi, 2007).
Relationship with suppliers
Car-washing business deals with suppliers of products such as detergents, brushes, hoses,
washing clothes and water. The Alnuaimi car-washing company has been able to register good
relations with all the suppliers, which has ensured a higher competitive advantage especially
since they get discounts from the suppliers. The lack of clear boundaries as to what they are
supposed to be participating in with relation to the supplier’s duties is an expensive weakness.
Opportunities such as receiving subsidized prices for the goods sold are presented through the
advertising services of the business. A threat on the shift of customers due to lack of good
services offered to them by the suppliers is a major challenge however. Clearly, it is important to
establish boundaries so as to keep good relationships with suppliers.
ALNUAIMI FAMILY CAR WASH 9
Rationale for adopting TQM
Skills
The Alnuaimi family adopts cost leadership strategies by employing family members so
that very little will be spent as wages and salaries, (Lasrado, 2015, p. 157). In this case the
combination of low costs and skills is well catered for since family members are mostly
experienced in this field. Additional skills are gained through routine procedures which also act
as a way of improving the competence of employees. Family members are concerned with the
reputation of their family name and will thus give the best quality of services even with low
wages. In the car-washing industry, this business may be deemed unique due to its background
and the current methods it uses in handling customers. Alnuaimi car wash has implemented the
ISO 9000 by appointing a manager with knowledge and authority to ensure quality is improved.
Technological skills that can be used in the car-washing business are a relevant tool for ensuring
that quality is improved. The casual and official employees require skills in technological
advancements which help in checking for any errors in cleaning. Technological tools also ensure
that work is done faster thus save time and the amount of resources that could have been used is
reduced.
Knowledge
Having training in advance on the activities to be carried out should be a priority in the
Alnuaimi car wash. Knowledge on the resources that are required to facilitate the smooth
running of the business such as water, brushes and detergents ensures high quality services. The
employees should have complete knowledge on what the cleaning field entails and what the
business believes in. Knowledge on the number of employees and focusing on improving their
working conditions should also be a priority in the management. According to Institute for
ALNUAIMI FAMILY CAR WASH 10
Manufacturing, (2016), this knowledge ensures that the employer has determined the profits to
get after incurring the costs related to paying wages and salaries. The employer also gets to
differentiate between the successes levels of his company in relation to human resources.
Knowledge about the new changes that are occurring in the business whether in technology or in
other factors is essential as it keeps the employees up-to-date with the standards or quality of
services needed.
Abilities
The stakeholders of Alnuaimi car wash should possess abilities to communicate clearly
and effectively with each other specifically the employees. Through communication, customers’
preferences are well understood and quality of services will be highlighted. Objectives of the
business should also be communicated clearly to the workers to ensure that all stakeholders are
heading towards achieving the same goals. Ability to follow rules responsibly is also an
important factor in the implementation of ISO 9000 and TQM. Following the rules of authorities
ensures that the company is in line with environmental protection standards. When clients know
that the employees are able to stick to their commitment they maintain loyalty towards the
business.
Behaviors
The discipline level of employees in the Alnuaimi car wash should be improved to ensure
that customers will be comfortable to seek services. Introduction of a standard check for the
behavior of employees towards other employees, the management and customers should be
established to guard against misconduct. A sense of differentiation should be felt in the discipline
level between this company and other competitive companies to act as a competitive strategy. In
terms of delivering services in time, since the company has a high number of employees,
ALNUAIMI FAMILY CAR WASH 11
services should be made quick and suit the timing of the clients. The decision on the employees
that should be laid off usually depends on how dependable their behavior is. Employees who
cannot carry out their activities in good time are deemed undisciplined and can cost the
company’s reputation.
Requirements for Improving Quality
Strategic Management In Relation to the TQM
The management of the company will be in charge of heading the action plan that
outlines the steps to be taken towards achieving the objectives of the business. The strategic
management of the business outlines the steps that the business will take to achieve the goals in
detail (Kantardjieva, 2015, p. 538). These include; creating a business friendly environment that
will increase productivity of the employees in achieving customer satisfaction, and ensuring that
all customers who come to the car wash to be service have a reason return; creating customer
loyalty. The financial department of the business will work with the operations manager to see
key areas that the business can manipulate to increase profitability. The steps included will allow
the business to have a competitive edge in the market. The TQM strategies commonly operate
from the lower management upwards. The TQM plan developed by the business will be used for
operations in the next, 10 to 20 years. Its goals are structured to fulfill the mission and vision of
the company. They require participation of all stakeholders, employees, and interested parties of
the Alnuaimi family business. The TQM goals are will help in the strategic management
implementation.
Mechanisms Developed That Focus On Their Adoption Of Different Philosophies And How
They Affect The Achievement Of Strategic Goals.
ALNUAIMI FAMILY CAR WASH 12
Customer Satisfaction
The business’s approach to its customer base is of caution to ensure that the quality of
services is up to the mark to build customer loyalty. Customer loyalty is the fundamental of a
sustainable business environment. Highly trained and experienced employees will offer
professional services. The customer relation department will implement a structure that will
target studying customer patterns to help the employees giving services know how to approach a
client’s demands. The customer relations will have a flexible system that will help customers
forward complaints directly to the company. The customer complaint system will work in close
communication with the customers to ensure that the customer feels important and their
problems are handled effectively by the company (Faed, 2013, p. 54).
Employee Satisfaction
The company’s strategies aim at increasing the level of our employee satisfaction in light
of the recent fail in the past years. The company’s management believes that happy employees
are productive and serve customers better. The company has about 500 employees operating in
its premises; the large number is associated with problems of forwarding complaints or whistle
blowing. A welfare association to deal with customer problems will be formed; it is independent
from any influence from the management. The association acts as a platform for employees to
submit any concerns they have, it also has a saving plan for the employees. Such an endeavor
will be fundamental in achieving one of the business main objectives and solving the case of
high employee dissatisfaction.
Leadership Factors That Are Critical For Success of Quality Program
The leadership of the company is spread out over different levels and departments. Each
department handles it own affairs but keeps the other concerned departments in close loop. The
ALNUAIMI FAMILY CAR WASH 13
company ensures that leadership roles are allocated in as many level of the company as needed to
increase responsibility and accountability of employees. There are team-building events that are
structured to increase teamwork and reduce any form of friction among people that may arise in
the course of work. Transparency and accountability is heavily enforced to ensure that all leaders
are well informed and clear on their work descriptions and those of the people working under
them. Regular assessment are conducted in coordination with top managers and shareholders to
report on the progress being made and any possible problems that may have occurred in the
course of implementation of the objectives. The process of choosing whom to put in a leadership
position is structured to allow the management together with the employee’s colleagues to give
their view as to the capability of the persons. Excellent peer review show that the employees
have better chances to work well as a leader in charge of others (Conger, & Benjamin, 2008, p.
3)
The Culture Adopted By the Company and Its Appropriateness to the Quality System.
The company’s culture takes the approach of its TQM’s. The company intends to have a broader
customer based, which will increase its market share. The steps to achieve this are outlined in the
TQM strategy that it aims to use in the next years. A sustainable business environment that will
involve the stakeholders of the business, suppliers, and employees will help the company grow in
size and be the most preferred car wash in the Emirate. The TQM strategy will make the quality
of the services delivered in the business of high quality and at the best possible prices available
in the market. The business will be all-rounded in the car wash sector; suppliers are among the
major benefactors from the business and are our biggest stakeholder. Creating a healthy
professional relationship with them will assist the business to expand to other premises in the
near future. According to ISO 9000, a thorough structure that includes a well-outlined resource
ALNUAIMI FAMILY CAR WASH 14
management team will assist to create a proper plan for a quality system. The company will be
able give good quality services to its customers, (International Organization for Standardization,
2009).
Ethical policies of the company and its relevance in quality management
The ethical policies of the company are created to ensure integrity and professionalism among
the managers, stakeholders, employees and with regard to people outside the company. The
policies are written down in the ethical policies manual and is available in every department. The
policies stipulate that all employees are required operate with diligence and integrity in
performing their work; they are personally responsible for their actions and may sometimes be
responsible for those they are in charge of. Every employee is required to abide by the laws of
the country and all policies set out in the company. Establishment of ethical policies will assist
the business to have a better public image in the society and cultivate healthy functional relations
in the business area. This policy also creates a plan that allows the company to be prepared in
case of any moral or ethical problems. Such a plan will be fundamental to create stronger and
stable relationships with the stakeholders and employees.
Ethical Policies In Relation To Managers
Managers are in charge of different departments on the company. Their roles are in respect to the
operations of the department. Managers are accountable for the ethical performance of those
below and are tasked with ensuring that the employees handle themselves with the highest level
of integrity. They should explain the relevance of system of ethics and how they affect the
business to encourage the employees to adhere to them. Employees who go against any of the
policies can be subjected to review and departmental action, (Free Management Library, 2014)
ALNUAIMI FAMILY CAR WASH 15
Policies to Increase Motivation Levels of the Workforce
The employees have a welfare association independent of the company’s management. They run
their own affairs in the welfare. The association creates an unbiased stage for them to forward
their needs to the managers of the company. A human resources department is also present in the
company to deal with employees’ problems and provide counseling where needed. The
department will also focus on solving employee-employee disputes. Employees get benefits in
their compensation and holidays once a year. Team events and hangouts are organized by
departments to allow employees a chance to interact with each other and their leaders in an open
and friendly manner.
Mechanisms Set To Identify Customers’ Changes
The customer relations department conducts studies regularly to establish the condition of its
customer base. The studying aims at identifying any change in patterns in the customer taste.
Shifts in patterns provide materials for study to see how the company can either use the chance
as an opportunity to widen services or direct the customer’s interest in other services that it
already offers. Employees are also trained in proper communication with customer to enable
them predict what type of services the customer wants and to engage them skillfully.
Mechanisms Adopted By the Company to Build Partnerships
The car wash company is a private company; this position helps it to remain in the hands of the
family. The family is influential and owns many other successful businesses all over the UAE.
The position of the family allows the company opportunities to collaborate with other business
people in the emirate and the country. Among the business owned by the family is a chemical
company that works in partnership with a detergent manufacturing factory that supplies
detergents for the car wash. the company is among the list of companies that host the UAE
ALNUAIMI FAMILY CAR WASH 16
Entrepreneurship Summit each year, this has give the company a great chance to interact with
investors from all over the country and the Gulf Region.
ISO-9000 and the TQM and the Benefits
The ISO-900 quality management system (QMS) helps a business reach its desired level of
quality operations. The steps outlined in the TQM are in line with QMS in areas like customer
satisfaction, improving quality services and establishing an effective management system. All
these are structured to give the best possible results in the market to customer and other
stakeholders. The QMS recommend systematic evaluation of the progress being made by the
business to achieve the goals and how they are influencing the business in all levels.
Implementing the ISO recommended management plan will allow the business to achieve its set
objectives within the predicted period. The TQM’s developed shows areas where the business
needs to improve its activities and services and any control measures to add to the operation of
the business, (International Organization for Standardization, 2009, p. 2).
Implementation Plan
Existing Quality Management Plan
The strategic management of the project described above offers a certain percentage in
improvement in quality improvement for the business. The plan includes steps in the following
areas.
Increasing Customer Satisfaction
The business will take steps to trains all new employees. This will make sure that all car wash
services are of excellent standards. The company will create a new system that gives bonuses,
discounts, and free service to customer. The awards will be based on the frequency of the client
ALNUAIMI FAMILY CAR WASH 17
in the car wash and the presumed level of loyalty. Customers can also get bonuses from the
number of recommendations they pass off to friends and colleagues.
Professional services that require skilled level employees will be allocated to employees who
have had over 4 years experience. The level skill will be reviewed constantly to help unskilled
employees to be mentored by the skilled on regularly. This system will ensure a regular cycle of
training; all employees will be regularly trained in all areas. There will be departmental shift to
help employees interact with those from other departments. However, their roles will remain
separate as they portray different skills and knowledge in their resumes. Employees will undergo
customer relation training to allow them to interact in a professional friendly way and to help
them learn how to deal with customers. Employees will be required to attend regular seminars on
cars especially on technical areas to keep them informed on the market trends. The seminars will
be pre-paid by the company and lunch and transport catered for to and from the event. A
percentage of profits made by the company will be allocated to awarding bonuses to employees
to increase motivation.
The Level of Professionalism
The kind of behavior an employee shows in the work place shows how he is likely to relate to
the customers. The company has created a code of ethical standard that employees have to abide
to. Failure to follow such rules will subject one to departmental disciplining. The company also
has an open and effective whistle blowing structure. Employees are encouraged to report any
misconduct that they witness to the Human Resource department. The reports are confidential
and follow up to establish authenticity and collect evidence starts immediately
Shareholders
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The company is keen to create a healthy relationship with all the parties concerned in its
operation. The company is privately owned but has a number of investors. Increasing the
performance of the company will increase the confidence that the investors have in the car wash
business. This will encourage them to direct more funds into the business and provide a reason to
stay. The business has to show its commitment to achieving its goals; investors always want to
see thir funds in use. The relationship should also depict a mutually satisfying dynamic. The
business should make sure that it gives value to investors, through services and marketing their
commodities. Most investors are from the vehicle manufacturing and servicing industry. The
company will advertise through posters, recommendations, request vehicle parts, and any other
useful materials in need in the car wash.
Additional Recommendations for Quality Improvement
The business already has a wide customer base and employee structure, it serves thousands of
people locally. The business should open another branch in a highly populated residential area or
a business area. The existing resources available to the business are enough to chain of car wash
to reduce the need for customers from far areas to drive all the way to be serviced at on one
point. This will also reduce the servicing time for a single vehicle, as there will be less traffic.
The business will also introduced new service to the business. These will majorly be influenced
by market trends and changing customer needs.
Conclusion
The report has outlined the strategies that the washing car company will use to meet its
objectives and improve the quality of its services. The ISO -9000 plan gives strategies that assist
a company achieve excellent quality in its operations and mainly in its service delivery. The
ALNUAIMI FAMILY CAR WASH 19
TQM strategies feature the key ways in which the business will be able to deliver better services
to its customers and increase its market share in the highly competitive industry. The company
has grown commendably in the past years, the report aims at maintaining this and even
surpassing the limits in the future years. Management is among the most important parts of the
business. Effective, skilled and hands on management is able to deliver all the strategic
objectives that the project aims for. The quality of the services is not only directed to the
customers, but involves all relevant stakeholders and employees in the company.
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