Total Quality Management

Executive Summary

Corporate America has begun to adapt to Total Quality Management processes across the board. No longer is quality limited to one particular field of business; quality is the driving factor of most companies to achieve customer satisfaction. This paper will examine three separate companies in three different fields of business, and relate Total Quality Management to their overall processes.

Introduction

Total Quality Management is a business management process that brings together the responsibilities of all employees to attain customer satisfaction, reachable by continuous improvement in the quality of all employees’ responsibilities and company’s product and services. The importance of quality and customer satisfaction should be established prior to the implementation of the total quality management process. Research was conducted on quality and customer satisfaction within Riordan Manufacturing, Kudler Fine Foods, and BlueCross BlueShield of Florida. This paper will examine the results of the research, identify quality needs, outline the strategic role of Total Quality Management, and measure the importance of leadership.

Riordan Manufacturing is a global plastics manufacturer. It has incorporated Total Quality Management into its Mission Statement, applying the Six Sigma process as one if its key Focus Points. The value of quality in relation to customer satisfaction is critical to Riordan’s process improvement. According to Riordan’s Intranet website, they have established a Customer Relationships Management Strategy to “strengthen the relationship with existing customers” and “nurture relationships of new customers” ( Riordan, 2005). This relationship strategy includes the implementation of a Sales Information System, which is a customer needs assessment geared toward understanding the customer needs in order to shape Riordan’s products and resolution methods to address those needs. This strategy will greatly assist with properly managing customer relationships as a method to attain current customers and their word-of-mouth advertisement, as well as market themselves as a customer-focused company to potential sales.

Kudler Fine Foods is a specialty foods store originating in San Diego, California. Its drive to place quality and customer satisfaction above all else is its mission to be “the purveyor of choice for customers aspiring to purchase the finest epicurean delights” (Kudler, 2005). Kudler understands their customer’s demand for quality and specialty items, and so customized a Frequent Shopper Program that offers customers valuable incentives. This program can prove beneficial to Kudler Fine Foods, especially for its Purchasing Department that is being encouraged to increase efficiency by finding ways to reduce ordering costs and food storage. The results to customer purchase tracking could greatly assist decision-making for the Purchase Department by identifying higher demand products versus items less purchased, seasonal purchasing, and demographical purchases and demands.

BlueCross BlueShield of Florida is a not-for-profit insurance organization. Its aim for quality and customer satisfaction is evident in its strong support of continuous improvement. As a result of a continuous improvement project measured by the Six Sigma process, BlueCross BlueShield of Florida implemented Florida BLUE, a retail store specifically dedicated to market its service and products in a retail-oriented environment. This greatly supported the company’s goal to “advance the health and well being of customers while offering affordable products and services” (BlueCross BlueShield of Florida, 2007). It gives the customer a “face” to BlueCross BlueShield of Florida, and a direct point of contact for any questions or concerns regarding obtaining new or managing current coverage. This gives BlueCross BlueShield of Florida a greater advantage to its customer-base by being the front-runner for marketing via retail in the state of Florida.

Each organization was strategic in its implementation of Total Quality Management. Below is a chart reflecting the company, its Total Quality Management technique, and a description of the service provided.

Company Riordan Manufacturing Kudler Fine Foods BlueCross BlueShield of Florida

TQM Measure Sales Information System Frequent Shopper Program Florida BLUE

Description Implemented to help better understand our customers’ needs so that we can shape products and solutions to respond to those needs Implemented to assist in refining processes and offerings to best satisfy customer by tracking individual customer level purchases and providing high value incentives