TQM IN SERVICE SECTOR – OPPORTUNITIES AND CHALLENGES – AN OVERVIEW WITH REFERENCE TO TOYOTA MOTORS

Description: Over the last two decades, service organisations have embraced total quality management (TQM) as an effective management tool to improve their service quality. They have begun to show a keen interest in TQM by working on quality and related areas. TQM has become a major area of attention to practitioners, managers and researchers due to its strong impact on business performance, customer satisfaction and profitability. In the light of this, an attempt has been made to study and understand the theory and concept of TQM, its benefits as well as various facets of service components and its classification. This study also explores the literature on the implementation of TQM in selected service industries. The finding of this study provides a rich contribution towards TQM theory, its role in service sector, as well as presents the different components of services. This paper can help business managers and quality practitioners in better understanding TQM, service systems concept as well as TQM implementation in service sector. The scope for future study is presented at the end. Total Quality Management is an approach to the art of management that originated in Japanese industry in the 1950's and has become steadily more popular in the West since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that aims to provide, and continue to provide, its customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with things being done right first time, and defects and waste eradicated from operations. TQM is the way of managing for the future, and is far wider in its application than just assuring product or service quality – it is a way of managing people and business processes to ensure complete customer satisfaction at every stage, internally and externally. TQM, combined with effective leadership, results in an organisation doing the right things right, first time. Many companies have difficulties in implementing TQM. Surveys by consulting firms have found that only 20-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality, productivity, competitiveness or financial return. As a result many people are sceptical about TQM. However, when you look at successful companies you find a much higher percentage of successful TQM implementation.