TOTAL QUALITY MANAGEMENT IN THE

TOURISM AND HOSPITALITY SERVICES

William Edwards Deming’s 14 Points for
implementing Quality Improvement:
1. Create consistency of purpose 7. Emphasize leadership
2. Lead to Promote Change 8. Drive out fear
3. Build Quality into the Product, depending 9. Break down barriers between departments
on inspections to catch problems.
10. Stop haranguing (Lecturing) Workers
4. Build long-term relationships based on
performance instead awarding business on 11. Support, help, and improve
the basis of price 12. Remove barriers to pride in work
5. Continuously improve product, quality, 13. Institute a vigorous program of education
service and self-improvement
6. Start Training 14. Put everybody in the company to work on
the transformation
 SEVEN CONCEPTS FOR AN EFFECTIVE
TOTAL QUALITY MANAGEMENT (TQM)
• Total Quality Management (TQM) is a
management philosophy that emphasizes
continuous improvement in all aspects of an
organization's operations.
• TQM involves all employees in the organization,
from top management to front-line workers, in a
process of continual improvement.
• Here are seven concepts that can help ensure the
effective implementation of TQM:
 SEVEN CONCEPTS FOR AN EFFECTIVE
TOTAL QUALITY MANAGEMENT (TQM)
1. Customer Focus: Customer satisfaction should be the ultimate goal of any
organization. All efforts should be directed towards meeting the needs and
expectations of customers.
2. Continuous Improvement/Six Sigma: Six Sigma is a set of techniques and tools for
process improvement. It was introduced by American engineer Bill Smith while
working at Motorola in 1986. The method counts the number of flaws in a process and
aims to systematically fix them.
• TQM is an ongoing process of improvement that never ends. All processes,
products, and services should be continually evaluated and improved upon to
increase efficiency and effectiveness.
 SEVEN CONCEPTS FOR AN EFFECTIVE
TOTAL QUALITY MANAGEMENT (TQM)
3. Employee Empowerment: Employees at all levels should be empowered to make
decisions and take responsibility for their work. They should be encouraged to
contribute ideas and suggestions for improving processes.
a. Building communication networks that include employees.
b. Developing open, supportive supervisors
c. Moving responsibility from both managers and staff to production employees
d. Building high-moral organization
e. Creating such formal organizational structures as teams and quality circles.
 SEVEN CONCEPTS FOR AN EFFECTIVE
TOTAL QUALITY MANAGEMENT (TQM)
4. Benchmarking: is a powerful tool for improving your performance in Total Quality
Management (TQM). It involves comparing your processes, products, and outcomes
with those of the best performers in your industry or sector.
a. Determine what to benchmark
b. Form a benchmark team
c. Identify benchmarking partners
d. Collect and analyze benchmarking information
e. Take action to match or exceed the benchmark
 SEVEN CONCEPTS FOR AN EFFECTIVE
TOTAL QUALITY MANAGEMENT (TQM)
5. Just-In-Time(JIT): is an inventory management method in which goods are received
from suppliers only as they are needed. The main objective of this method is to reduce
inventory holding costs and increase inventory turnover.
a. JIT cuts cost of quality. Less Inventory on hand, costs are lower
b. JIT improves quality. It creates an early warning system for problems, both within the firm
and with vendors.
c. Better quality means less inventory and a better, easier-to-employ JIT system.
 SEVEN CONCEPTS FOR AN EFFECTIVE
TOTAL QUALITY MANAGEMENT (TQM)
6. Taguchi Concepts: developed by Dr. Genichi Taguchi, is a statistical approach to
quality control that focuses on reducing variation and improving the quality of
products and processes. The method is based on three key concepts:
a. Quality Loss Function: The quality loss function is a mathematical model that quantifies
the cost of variation in product quality. It helps to determine the optimal level of quality
for a product or process by balancing the cost of improving quality with the cost of not
meeting customer requirements.

b. Parameter Design: Parameter design is a process of selecting the optimal combination of

input variables (factors) that will result in the desired output (response). The Taguchi
method uses a systematic approach to determine the optimal levels of these input variables
to minimize the effects of noise and other sources of variation.
c. Robust Design: Robust design is a design philosophy that aims to create products
and processes that are insensitive to sources of variation. The Taguchi method uses
statistical techniques to identify the factors that are most likely to cause variation
in the product or process and to develop designs that are robust to these sources of
variation.
 SEVEN CONCEPTS FOR AN EFFECTIVE
TOTAL QUALITY MANAGEMENT (TQM)
7. Knowledge of TQM Tools:
a. Check Sheets - Forms designed for recording data
b. Scatter diagrams – Shows the relationship between two measurements
c. Cause and Effect Diagrams – AKA Ishikawa Diagram or Fish-Bone chart. It is
a schematic technique used to discover possible locations of quality problems.
d. Pareto Chart - Pareto analysis is a technique used to identify the most common
causes of problems. It is based on the principle that 80% of problems are
caused by 20% of the causes.
e. Flow Chart - are diagrams that show the sequence of steps in a process. They help
to identify areas of inefficiency or problems in a process and can be used to
develop improvements.
f. Statistical Process Control (SPC) - SPC is a set of statistical techniques used to monitor
and control a process to ensure that it operates within specified limits. It helps to identify
when a process is producing defective products and allows for corrective action to be
taken.
g. Histograms or Stem-and-Leaf Plot – These show the range of values of a
measurement and the frequency with which each value occurs. They show the
most frequently occurs readings as well as the variations in the measurements.
 DETERMINANTS OF SERVICE
QUALITY
1. Reliability – This involves consistency of performance and dependability. It
means that the firm performs the service right the first time and that the firm
honors its promises.
2. Responsiveness – It concerns the willingness of readiness of employees to
provide service. It involves timeliness of service.
3. Competence – means possession of the required skills and knowledge to
perform the service.
4. Access – Involves approachability and ease of contact
5. Courtesy – Involves politeness, respect, consideration, and friendliness of
contact personnel (Including receptionists, telephone operators, etc.).
 DETERMINANTS OF SERVICE
QUALITY
6. Communication – means keeping customers informed in a language that they
understand. It means that the company has to adjust its language to its different
consumers
7. Credibility – Involves trustworthiness, believability, and honestly. It involves
having the customer’s best interest at heart.
8. Security – Is the freedom from danger, risk, or doubt.
9. Understanding/Knowing – the customer involves making the effort to
understand the customer’s needs and wants.
10. Tangibles – include the physical evidence of the service.