Total Quality Management

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1.0 Executive summary
The main purpose of this report is to create an action plan of the implementation of total quality management (TQM) for a large car dealership in a Eastern suburb of Sydney. The report consists of the detail steps of the action plan, the reason for each step, recommendation, and conclusion. The car dealership industry is quite competitive and car purchasing is quite differs from buying daily necessity. A large majority of the customers will take a few months in getting in touch with different car dealership, informing themselves with the characteristics of different car brand and prices, and etc. Thus the implementation TQM successfully can play an important role in improve companies’ professionalism and the quality of customer-oriented services. 2.0 Introduction

Previous TQM theories and application by many famous companies such as Toyota showed that the TQM can help companies to have a leap in comprehensive strength including financial performance, operational improvements, customer satisfaction, and organization and management effectiveness. Based on the characteristic of car dealership industry, this report will give a comprehensive plan of how to implementation TQM in a car dealership company in Sydney. The first part is TQM measurement: describing how to prove the owner the successful implementation of TQM. Next, action play will be given followed by its explanation. A general action plan will includes a simply list of sequential steps in implementing TQM with. Then, more details of the action plan will be given describing why, how, and who will conduct. The report will be ended with a brief conclusion and recommendation. 3.0 Total Quality Management Measurement

There are several ways to show the owner of the success of the implementation of the total quality management (TQM). First, undoubtedly, the revenue and the profits earned. Compared with previous financial performance, the improved profits can be regarded as the outcome of the successful TQM and vice versa. Moreover, the histogram (Mukhopadhyay, C. & Nataraja, HS., 2005, p.105) can be used to show the nature of the relationship between the profit and all operational strategies including TQM. What’s mover, fishbone diagram can be achievement in TQM specially the team work. Fishbone is a kind of living document. It records the solutions to the problem the organization have met, thus team members can share and gain some knowledge from it. On the other hand, when new challenges come and new solutions found, the fishbone will be further filed (Hedley, M., 2005,). Last but not least, Pareto charts can be used to identify the larger contributors to the success of TQM (Hedley, M., 2005,). During the TQM, after-sale service is suggested to investigate customers’ satisfaction and identify the major defects. In addition, Pareto charts can also be used to identify inhibitors of entire TQM process within the organization. 3.0Action Plan

Four actions are suggested: TQM transformation, organization restructure, after-sales service, and organization self evaluation. These actions will be helpful to prepare employees ready for TQM, build cross-functional teams, and identify customers’ needs (Beer, M. 2003, p. 623). Action I: The senior management team should hold a TQM transformation with a clear explanation why TQM is necessary to achieving the goal and objectives and how TQM philosophy fits (Beer, M. 2003, p. 633). Action II: Organization restructure plan involves rebuild the team to matrix structure as Figure 1. Also, encouraging empowerment as well as team work. Action III: After-sales service includes continuous informing customers of skills of car maintenance, remind customers to conduct annual inspection, conducting annual car quality tracking, perform survey and investigating customers’ feedback, helping customers to contacting car manufactures concerning quality issues, maintenance, and etc. Action IV: One critical challenge facing...
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