TQM-Part 1 MBA

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    Introduction:

    According to Zairi, 2003 in a particular organisation application of TQM is

    executed in order to achieve the service excellence for the business. TQM plays a

    major role in maintaining the quality of the organisation and at the same pointof time leads to efficiency in the working matters of the organisation. The

    concept and the vocabulary of TQM have been very simple and elusive as it is

    customer based and value based, meeting the expectations of the customers.

    The Ritz Carlton Group of Hotels

    History:

    The king of hoteliers and hoteliers to king running with this phrase Cesar Ritzhas built one of the most beautiful and elegant hotels in the world with the name

    Ritz Carlton. The expansion of the Ritz was even being continued by his wife

    Marie after his death in 1918 and went on to be one of the elegant hotels in

    world. (http://corporate.ritzcarlton.com/en/About/OurHistory.htm)

    Ritz Carlton group of hotels is known for providing excellent service in the terms

    of the quality, luxury and the kind of efficiency all over the world. The level of

    service and quality provided by this hotel industry has made this hotel industry

    win many awards in terms of excellence, etc. the main and the primary aim for

    this hotel is to provide value and quality to its customers and also provide better

    efficiency in the working matters of the organisation. Ritz Carlton providing the

    combination of atmosphere and the cuisine it has provided assurance to the

    customers that this is the place for them to swing and take the real essence of

    the nature and the environment. (http://elitechoice.org/2009/08/27/ritz-carlton-

    looks-back-to-a-history-of-100-luxurious-years/)

    http://corporate.ritzcarlton.com/en/About/OurHistory.htmhttp://corporate.ritzcarlton.com/en/About/OurHistory.htmhttp://corporate.ritzcarlton.com/en/About/OurHistory.htmhttp://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://corporate.ritzcarlton.com/en/About/OurHistory.htm
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    Ritz Carlton Mission Statement:

    We are Ladies and Gentlemen serving Ladies and Gentlemen with this kind of

    mission Ritz Carlton has been successfully serving its customers and has proved

    its efficiency in the working affairs of the hotel industry. This hotel industry has

    always been goal oriented. Setting up our Ladies and Gentlemen for Success

    with this kind of primary objective Ritz Carlton has always been accomplished

    with its mission towards its employees and the members of the staff of the

    organisation (http://www.ritzcarlton.com/en/Default.htm). Genuine care and

    comfort for customers has been the highest mission for Ritz Carlton.

    Products and Services:

    The product and services provided by Ritz Carlton is in the form of Gold

    Standards which has led to the foundation of this hotel industry. The kind of

    service provided by this hotel industry is exemplary. Customers at this industry

    are treated with a very warm and sincere greeting by using their names and also

    the kind of the service a particular guests needs is anticipated properly with a

    very warm good bye and also with elegant farewell. Employee promise has also

    been one of the efficient services provided by this hotel industry.

    Ritz Carlton being the brand name, the kind of services and products provided

    by this industry is luxurious and elegant, which has led to serve in the best

    manner to its business and leisure travellers worldwide and that too in an

    efficient way (http://www.ritzcarlton.com/en/Default.htm).

    http://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htm
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    Operational and Market Challenges:

    Before the success of the particular organisation, the industry itself has to face

    many challenges and prove itself about the ability and the capability it has to

    serve its customers. There have many operational as well marketing challenges

    Ritz Carlton have faced to make it a successful industry.

    Increase in Competition:

    There have been many new hotel industries coming into market sector and have

    tried to serve best to their customers. International competition has been on rise

    due to the well known brands and many international hotels expanding their own

    businesses in the foreign markets. The local competitors include Four seasons;Hyatt hotels; etc. whereas the foreign competitors include The Taj; The Oberoi;

    etc.

    Profit Maximisation:

    The main and the primary challenge for any industry in the particular

    organisation is the maximisation of the profit. Having not earned profit in the

    particular year or so the industry cannot serve its customers in the best way

    they want to. Serving Ladies and Gentlemen being the main motive, the

    primary challenge for Ritz Carlton is to maximise its profits in all sectors of the

    organisation.

    Retainment of the Trained Staff:

    For a particular industry in the sector of hotels, to train the particular staff lots of

    the efforts are required so that the best of the service can be provided to its

    guests. Being highly valued in their education background, to retain the trainedstaff is very difficult which might lead to operational difficulties in the particular

    organisations and also the name and the fame of that industry in the market

    economy slides down.

    There are many other operational and marketing challenges regarding cost and

    the availability of the raw material; demands from the customers and the guests

    in the particular industry; change in the technology; etc. which also affect the

    working matters of the organisation and might also put the break in the

    efficiency and the elegancy of the work.

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    Total Quality Management:

    Total Quality Management is defined as, A set of management practices

    throughout the organisation, geared to ensure the organisation consistently to

    meet the needs and exceed customer requirements. TQM puts its primary

    attention on the process measurement and acts as a tool for continuous

    improvement in the working affairs and the matters of the organisation.

    (http://managementhelp.org/quality/tqm/tqm.htm ). According to Armand

    FeigenbaumTQM is defined as, An effective system for integrating the quality

    development; quantity maintenance and quality improvement efforts of the

    various groups in an organisation so as to enable product and service at the

    most economical levels which allows for full customer satisfaction.

    Naylor, J. (2002) defined Quality as, A degree to which a set of inherent

    characteristics fulfils requirements. In terms of Mathematics Quality is

    invariably related to the satisfaction of the customers. In the economy of the

    market where products are being sold from the point of view of the customers

    the primary preference is being given to the quality and on that basis the

    product is being purchased from the market. According to Bank, J. (1992),

    Quality and productivity are inversely proportional to variety.Generally beingan approach towards the management art TQM found its origin in Japan in

    1950s and then moved towards West in the late 1980s.

    Dr. W. Edward Deming, 1982 defined TQM as, Management methods used to

    enhance quality and productivity in organisations particularly business. At each

    and every point of operation in the economy of the market TQM emphasis on the

    quality of the particular product. Quality of a particular product results in the

    maximisation of the profit; reduction in the costs and also improves the

    satisfaction for the customers. Kotler, P. and Armstrong, G. (1997) has

    defined Total Quality Management and Quality in combination as, The totality of

    the features and characteristics of the product or service that bear on its ability

    to satisfy the needs.

    http://managementhelp.org/quality/tqm/tqm.htmhttp://managementhelp.org/quality/tqm/tqm.htmhttp://managementhelp.org/quality/tqm/tqm.htmhttp://managementhelp.org/quality/tqm/tqm.htm
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    Components of TQM:

    TQM being an approach towards competitive nature and effectivity for an

    organisation in the economy of market, there are various components of TQM in

    the industry sector which leads to the efficiency of the organisation. The various

    components are:

    1. Customer focus and Customer centric

    The needs and the expectations of the customers are satisfied by the quality of

    the product. In the industry of hotels it is always said that what customers say is

    always right and on that basis the primary component for TQM is that industry

    should always be customer focused ensuring that all the standards of service aremet by the customers from that particular industry.

    2. Continuous Improvement

    Now a days the nature of competition in the market is on rise. To reach the level

    of competition continuous improvement is necessary to meet the needs of the

    customers. Quality standards for each and every product should improve to

    strive in the market economy. Continuous Improvement means improvising

    product standards according to the requirements of the markets.

    3. Aim for Zero defects

    The main and the secondary component for TQM is aim to vanish all the defects

    in particular product, as defect in the product will degrade the customer

    satisfaction. Assurance and Control for quality have been the main pillars for the

    industry to aim for Zero defects.

    4. Training and Development

    To understand and regulate the principles of TQM it is necessary for each and

    every organisation to train its employees and the employee needs to himself

    understand how the TQM for the particular organisation is to be achieved and

    basis of its understanding the working affairs of the organisation can be carried

    out effectively and efficiently. (http://www.learnmanagement2.com/TQM.htm ).

    http://www.learnmanagement2.com/TQM.htmhttp://www.learnmanagement2.com/TQM.htmhttp://www.learnmanagement2.com/TQM.htm
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    TQM Practice in Taj Group of Hotels:

    Taj Group of Hotels has been one of the well known hotels in the hotel industries

    and in true picture has been the trendsetter for other hotel industries. TQM in

    relation to Taj hotels relates a Strong relationship with customers and has

    been very successful in serving its customers and also satisfying their own

    needs. To meet the needs and the services of the customers the team of

    Guests Relationshiphas been set up separately. The application of TQM has

    been very elegant and efficient and on the basis of this elegancy in TQM it has

    proved to be one of the best hotels in the world.

    Quality relates to service in terms of TQM and Taj has been one of the best

    service providers to its customers. Based on the effectivity in the working

    matters the Communication systembetween the staff and employer has been

    terrific and this has lead to good working environment. To co-ordinate with

    various customers and guests from different countries, staffs at Taj are provided

    with Language Training which helps in good co-ordination with customers.

    TQM in relation to Taj hotels, staffs are trained at all levels of standards of

    quality relating to Teamwork among the staffs of the organisation and on the

    basis of such work quality results are been inculcated by this Hotel industry.(http://managementfunda.com/sony-taj-hotel-kaizen-in-japan/)

    TQM Development in coming Five years:

    There have been many new ideas in the economy of the market for the

    development of TQM and on the basis of which the working affairs of each and

    every organisation can be carried out effectively and efficiently. The basic and

    the prime factors for the development of the TQM in coming five years are as

    follows:

    1. Satisfaction to customers

    To develop TQM in coming years the first and the foremost factor is to satisfy

    the customers. Customers needs and services should be provided by the

    organisation to attain improved results. To improve the quality of the particular

    http://managementfunda.com/sony-taj-hotel-kaizen-in-japan/http://managementfunda.com/sony-taj-hotel-kaizen-in-japan/http://managementfunda.com/sony-taj-hotel-kaizen-in-japan/http://managementfunda.com/sony-taj-hotel-kaizen-in-japan/
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    product feedback from the customers is important. Thus customer satisfaction

    should be given prime importance for the development of TQM.

    2. Empowerment of Staff

    In particular organisations staff and the employees should be empowered and

    they should be involved in improving the quality of the product. They should be

    empowered to take their own decisions which might lead to better efficiency of

    the organisation.

    3. Teamwork and Benchmarking

    To carry out the development of TQM in an effective way all the members of the

    staff should work in team and also benchmark their own product in the economy

    of the market which leads to efficiency in the working affairs. The need for

    going, Best Practices to Next Practices (Prahlad, C. et. al. 1986) there is no

    need to benchmark the products in such a way that it defies the working affairs

    of organisation.

    4. Focusing on process

    The organisation should always be focused on the process of the workingmatters to develop its TQM so as to analyse the external and internal procedures

    of the organisations. The crucial factors of the organisation can be understood

    only by focusing on the process of organisation.

    Thus looking at all the factors above TQM can be developed in way of sensitivity

    and also on the basis of the productivity in the coming five years, thus making

    the affairs and the matters of the organisation work effectively and elegantly.

    (http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdf)

    TQM Practice in Ritz Carlton:

    In the market economy of todays world the demands from the guests and the

    customers are increasing and to survive in the market Ritz Carlton need to

    http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdf
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    improve on demands from customers and guests. Following are the components

    followed by Ritz in relation to TQM:

    1. Satisfaction to Guests

    In the hospitality industry it is always said that Guests are always right and on

    the basis of this scenario the prime focus for Ritz Carlton is to satisfy its guests

    and meet their needs and their services. In Ritz the requests from the guests are

    solved easily and each and every member of the staff just aims that guests at

    their place feel comfort and they have best of their experience.

    2. Continuous progress

    Ritz Carlton has made continuous progress on the demand from customers

    especially in the key areas which they need to improve. Ritz Carlton imposing on

    continuous progress helds training programmes and co-ordinates all its

    employees at all the levels. All the comments from the guests are analysed by

    the top management and on the basis of it the areas of improvement is decided.

    3. Assurance of quality

    In terms of TQM Ritz Carlton has always assured quality to its customers and onthe basis of quality it has been one of the top most hotel industries in the world.

    At all the levels of quality standards employees and the staff are being trained at

    Ritz and seminars are being held for them to improve the quality of the hotel

    industry. Ritz Carlton should follow Measuring method which is to result

    improved TQM in future.

    4. Tools of Communication

    Communication has been the backbone for Ritz Carlton to keep all the

    departments co-ordinate with each other. Communication with the guests and

    the employee is also very important as the employee represents the organisation

    and also looks after the working affairs and the matters of the organisation.

    (http://www.accessmylibrary.com/article-1G1-14444791/ritz-carlton-applies-

    tqm.html)

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    Key Areas of Improvement for Ritz:

    Increasing the demands from the guests day by day the management of Ritz

    Carlton should manage to get the New technologyand should start workshops

    for the employees to improve the quality standards of the organisation.

    Investment of money is huge for employees in Ritz but it has been very difficult

    for them to Retain their own staff and on the basis of this Ritz needs to

    compensate for its trained staff. The Auditscarried out by the company should

    detect the flaws and should improve the process.

    Staff Careshould be the prime motive for Ritz Carlton and instead of spending

    more on training they should retain them. To improve its TQM in the economy of

    the market Ritz Carlton should start Innovative strategies in the market to

    satisfy its customers.

    Action plans for Ritz Carlton:

    In order to achieve all the above factors in the organisation for Ritz Carlton the

    organisation has to train its staff in such a way that they can retain them and

    also can improve the quality standards of the organisations. Ritz Carlton should

    always think of ideas which are innovative in nature and are advantageous to

    the working affairs of the organisations. The very most important and the prime

    objective for the Ritz is to keep checking the reports of progress among its own

    competitors and accordingly carry out the working of the organisation.

    Ritz Carlton should promote more and more employees and on the basis of this

    promotion should involve them in the improvement of the quality standards.

    Thus taking all these action plans into the consideration to improve the TQM of

    its own organisation Ritz Carlton should follow the action plan on an effective

    and efficient basis.

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    Conclusion:

    In the world of competitive market customers and the guests in the particular

    hotel industry are more quality concise and the only way to stick in the market is

    to provide quality services to the customers. Looking at the current trends the

    organisation needs to be efficient and elegant in the working matters of the

    organisation and TQM is the only tool to deal all the problems of the

    organisation. Thus looking at each and every factor above there are some areas

    where Ritz Carlton still needs to put its attention into where they can keep

    themselves ahead in the competition.

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    References:

    Books

    Bank, J. (1992) The essence of total quality management. Hertfordshire:prentice hall.

    Bell D, et al. (1994) Managing Quality. Oxford: Butterworth-Heinemann. Chase R. B. Et al (2004) operations management for competitive

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    Crosby, P. (1984) Quality without tears-The art of hassel-freemanagement. 2nded. USA: McGraw-hill.

    Kotler, P. & Armstrong, G. (1997) Marketing An Introduction 4th ed:Prentice

    Meredith J. R. (1992) The management of operations: A conceptualemphasis. 4thed. Usa

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    Waters, C.D.J. (1991) An introduction to operations management. Oxford:Avon.

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    Bacon, T.R., Pugh, D.G. (2004), "Ritz-Carlton and EMC: The GoldStandards in operational behavioural differentiation", Journal of

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    Brown, M., Hitchcock, D., Willard, M. (1994), Why TQM Fails and What toDo About It, Irwin, Burr Ridge, IL.,

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    Deming, W. (1982), Quality, Productivity and Competitive Position, MIT,Center for Advanced Engineering Study, Cambridge, MA, .

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    Feigenbaum, A. (1956), Total Quality Control, McGraw-Hill, New York., . Garvin, D. (1988), Managing Quality, The Strategic and Competitive Edge,

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    Websites

    History of Ritz Carlton, [online] Available from:

    http://corporate.ritzcarlton.com/en/About/OurHistory.htm[Accessed on 2ndApril, 2010]

    http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/

    [Accessed on 2ndApril, 2010]

    Ritz Carlton Mission Statement, [online] Available from: http://www.ritzcarlton.com/en/Default.htm

    [Accessed on 3rdApril, 2010]

    Ritz Carlton Products and Services, [online] Available from:

    http://www.ritzcarlton.com/en/Default.htm[Accessed on 3rdApril, 2010]

    Introduction to TQM, [online] Available from:

    http://managementhelp.org/quality/tqm/tqm.htm [Accessed on 5thApril, 2010]

    Components of TQM, [online] Available from:

    http://www.learnmanagement2.com/TQM.htm [Accessed on 5thApril, 2010]

    TQM development, [online] Available from:

    http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/040021010

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    http://corporate.ritzcarlton.com/en/About/OurHistory.htmhttp://corporate.ritzcarlton.com/en/About/OurHistory.htmhttp://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://managementhelp.org/quality/tqm/tqm.htmhttp://managementhelp.org/quality/tqm/tqm.htmhttp://www.learnmanagement2.com/TQM.htmhttp://www.learnmanagement2.com/TQM.htmhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0400210103.pdfhttp://www.learnmanagement2.com/TQM.htmhttp://managementhelp.org/quality/tqm/tqm.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://www.ritzcarlton.com/en/Default.htmhttp://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://elitechoice.org/2009/08/27/ritz-carlton-looks-back-to-a-history-of-100-luxurious-years/http://corporate.ritzcarlton.com/en/About/OurHistory.htm
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    TQM in relation to Taj Hotels, [online] Available from:

    http://managementfunda.com/sony-taj-hotel-kaizen-in-japan/[Accessed on 6thApril, 2010]

    TQM in relation to Ritz Carlton, [online] Available from:

    http://www.accessmylibrary.com/article-1G1-14444791/ritz-carlton-applies-tqm.html

    [Accessed on 7thApril, 2010]

    http://managementfunda.com/sony-taj-hotel-kaizen-in-japan/http://managementfunda.com/sony-taj-hotel-kaizen-in-japan/http://www.accessmylibrary.com/article-1G1-14444791/ritz-carlton-applies-tqm.htmlhttp://www.accessmylibrary.com/article-1G1-14444791/ritz-carlton-applies-tqm.htmlhttp://www.accessmylibrary.com/article-1G1-14444791/ritz-carlton-applies-tqm.htmlhttp://www.accessmylibrary.com/article-1G1-14444791/ritz-carlton-applies-tqm.htmlhttp://www.accessmylibrary.com/article-1G1-14444791/ritz-carlton-applies-tqm.htmlhttp://www.accessmylibrary.com/article-1G1-14444791/ritz-carlton-applies-tqm.htmlhttp://www.accessmylibrary.com/article-1G1-14444791/ritz-carlton-applies-tqm.htmlhttp://managementfunda.com/sony-taj-hotel-kaizen-in-japan/
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    Appendix:

    Taj Group of Hotels has a quality analysis tool framed by the TATAEnterprise called as Tata Business Excellence Model (TBEM). TBEM

    is based on TQM approach of Quality.

    The Business Excellence department looks after quality control &process improvements. This department has leadership across all

    Strategic Business Units & also at the corporate level.

    TBEM assessment is mandatory for all hotels of the company & takesplace before the end of financial year.

    Ms Vida DSouza is the Vice President for Business Excellence of thecompany.

    Awards & Accolades : PATA Gold Award 2008 for Marketing (hospitality category) Dun & Bradstreet - American Express Corporate Award 2006 for

    being the top company in the Hotels sector

    The Best Business Hotel Chain in India by the readers in UK at the2008 Business Traveler Awards.

    Raymond N. Bickson, MD and CEO, Taj Hotels Resorts and Palaces,has been named 2007 Corporate Hotelier of the World by HOTELSmagazine.

    Avaya Global Connect Customer Responsiveness Awards 2007-Indias Most Customer Responsive Hotel Category Hotels.

    Dun & Bradstreet - American Express Corporate Awards 2007 -India's Top 500 Companies 2007 - in the "Hotels" category.

    Taj Mahal Palace & Tower, Mumbai voted as the best Hotel overseasin business category by Conde Naste Magazine for 2008.

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