Report on TQM Implementation in Spinneys


Contents
Company Background 2
The Current Strategy 2
SWOT Analysis 3
Strengths 3
Weaknesses 3
Opportunities 3
Threats 4
Rationale for Adopting TQM 4
Requirements for implementing quality 5
Leadership factors 5
Company Policies 6
Customer Satisfaction 6
Supplier Relationship 7
Total Quality Management Implementation Plan 8
Implementation Plan and Groundwork 8
Recommendations 9
Existing Quality Processes 9
Philosophies Surrounding Total Quality Management 9
Quality Improvement Tools 10
Quality Measurement Tools 10
Bibliography 12

Company Background

Spinneys is a large supermarket chain that specializes in grocery products. The journey of Spinneys initiated in 1924 in Egypt and now it has spread all over the Middle East. Spinneys arrived in Dubai for business in the year 1961. Spinneys has gained fame over the years in the Middle Eastern market as a result of innovation in its services. It emphasizes on grocery products like fresh vegetables, seafood, bakery, flowers and Meat & Poultry. Currently Spinneys stands among the UAE’s leading grocery supermarket chains with 49 retail outlets in and has crossed the revenue mark of $1 billion in 2013. It has expanded in the Middle East in countries like Egypt, Lebanon, UAE, Qatar and Jordan. Spinneys has been growing exponentially in the last decade with a revenue increase of at least 20% recorded every year. It had planned to expand its reach to Libya and is also aiming to expand its customer base by including more products and bringing exotic produce for catering to the consumer’s needs (MERZA, 2011).
The vision of Spinneys is
“Our vision is to firmly establish and grow our base as the leading world class retail in Lebanon”
The mission of Spinneys is
“To create values for shareholders, customers, employees and all partners” (Spinneys, About Spinneys, 2015)
The Current Strategy

Currently, Spinneys is observing growing markets and planning to expand to Southern Asia and Levant (Jones, 2011). Another priority for Spinneys is to make the shopping area safe and convenient. A detailed introspection into the level of safety in the project in the stores. Adding sustainability into every operation and product choices in which there is scope for reducing pollution of the environment. (Spinneys, 2015)
SWOT Analysis

Strengths
Widespread Reach – Spinneys has expanded to 6 countries and has many number of stores in those countries. This suggests that Spinneys has made a strong foothold in these countries and is familiar with the market conditions and consumer needs.
Huge catalogue of products – Apart from daily groceries like vegetables and meat, the stores also provide exotic food materials like special variety of cheese, many exotic fruits as well as a bakery. A consumer inside Spinneys is provided a lot of choice and it also means that consumers can get products they usually don’t in the country.
Weaknesses
No outlets other than in the Middle East- Spinneys has been doing its business exclusively in the Middle Eastern countries but it is competing with the supermarkets that have global reach and expertise.
A limited product range compared to its competitors- The competitors of Spinneys offer clothing and electronic products which Spinneys does not provide due to the focused product range.
Opportunities
High Chances of Expansion- Due to the increase in revenues and current expansion strategy has spread the empire of Spinneys across the Gulf. Due to this extent of expansion and success in expansion, Spinneys has the capability and skills to expand beyond the Middle East.
Product Range Expansion – Spinneys can expand its product range by introducing a department of fast food in their supermarkets or including clothing products as they do not require high level of knowledge in sales of electricity.

Threats
Strong Competitors – Companies like Carrefour have strong foothold the global as well as in the Middle East region. These competitors have the capable network and a bigger list of products and if they innovate or implement low pricing for a sale then they can break the market of Spinneys (Carrefour, 2015).
Location – As Spinneys has their own stores in a favorable area, some competitors are building grocery stores inside big malls and people have started finding them convenient.

Rationale for Adopting TQM

Total Quality Management is essentially an approach which the companies adopt to focus on the development of quality aspects of their business. TQM has been observed to help businesses grow exponentially due to the provision of better quality products. As Spinneys is a supermarket providing grocery products, they are not in the manufacturing sector but the service sector. As a service sector company, Spinneys can improve its standards and technologies further and reach the level of some of its large scale competitors through the provision of a higher standard of quality. TQM can also help Spinneys improve the aspect of customer service, cleanliness and safety of the stores. There are many aspects of quality changes possible in the service industry (Martinez Lorente & Martinez-Costa, 2004).
If a company has adopted ISO 9000 standardization, then the company shifts to a higher range of quality management and adherence to certain standards in the products/services they provide. When a company adopts ISO 9000, it is very convenient for the company to follow total quality management approach and take part in a continuous process of all round development when it comes to quality. Spinneys also intends to expand its markets and enhance its safety factors which can be done conveniently by adoption of TQM in the operations of the organization. While some researchers suggested that as quality assurance is one of the main factors behind TQM, it encompasses the ISO standard concept, but there are also viewpoints which projected ISO 9000 standard implementation as a step towards adopting TQM in the organization. ISO 9000 standardization advertises a culture of robust quality which is a helping hand in the implementation of TQM. But is stressed with a layout of reasons that ISO 9000 should be applied with the philosophy of TQM (SUN & CHENG, 2002).

Requirements for implementing quality

For successful implementation of total quality management, it is required that a company should have certain factors and attributes which facilitate TQM execution and sustainability. These factors can also be termed as requirements for the company as well as a factor of critical success. If these factors are not present in the company, the company should strive towards gaining these qualities to ensure success of TQM. These factors range from the human resources, company policies to marketing and supply chain management factors. These factors are perfect for correlation with spinneys as it is a service provider with an emphasis of constant supply and preservation of goods and for the processes to calibrate, it is required that these factors must be rigorously analyzed (Dilber, Bayyurt, Zaim, & Tarim, 2005).
Leadership factors

Commitment of leaders in the organization is an imminent requirement in the process of implementing TQM in an organization. Total Quality Management is a philosophy and it should be accepted and adopted in the leader’s minds before the other people in the organization, Constant improvement in quality takes commitment before anything and that commitment should reside in the mind of the leader that shapes the entire organization to adopt higher standards of quality and strive towards achieving a framework that is focused towards quality of service. The leaders of the organization have a vision as to how the organization should progress further and when the values of TQM are instilled in the organization, it needs to be fused with the vision of the leader in order to successfully achieve high quality standards (Hickman, 1990).
TQM fundamentals do no provide the organization a clear strategic advantage or an attribute, but a qualitative behavioral feature that helps in the creation of a competitive advantage. In this case, the commitment of the leaders towards total quality management can help in the cultivation of a competitive advantage. It has been observed in many cases that when leaders are not giving their 100% to the TQM approach and diverting their focus to other aspects, there is a compromise in the quality of their products or services and the failure of TQM becomes apparent in those situations (Ulle & Kumar, 2014).
Company Policies

Once the TQM approach has been planted in the leaders, this approach has to be transmitted throughout the company into its employees. In order to do this, the approach of total quality management is to be implanted in the whole organization by including the principles of TQM in the company policy. When that is done all the departments of the company will observe that the principles of TQM are followed in every aspect of the company.
If TQM just applies to specific departments, then TQM is found to fails are there will be shortfalls in the execution and there will be a high possibility of mistakes and quality issues in services. Implementation of TQM in the employee policies increases the level of employee involvement in the organization. With the implementation of TQM in the employee policies, employees are free to take initiatives regarding quality issues without formal procedures in certain areas and this promotes a sense of decentralization in the organization which is fruitful when quality is concerned (Richards, 2012).
Customer Satisfaction

Bateman & Snell have defined total quality management as a widespread and interconnected approach in order to achieve customer satisfaction by using a myriad of techniques and methods. The primary objective behind total quality management is customer satisfaction which justifies the gravity of TQM application in an organization. The importance of customer satisfaction should be reflected in the employee policies and leaders are supposed to concentrate their efforts to focus on customer satisfaction while forming policies and making changes.
Customer satisfaction in a supermarket or retail industry also relies on the quality of products, clean storage area, accessibility of products, more choice in products and a helpful staff to guide the customers when they need help. As a retail sector company, there are many areas of improvement and if these areas are analyzed to channel the sources of the organization in order to improve the quality in these aspects and achieve a high level of customer satisfaction according to the principles of TQM (Mensah, Copuroglu, & Fening, 2014). The detection of customer satisfaction can be measured by the amount of customers, reflecting on customer complaints and by taking surveys at stores.
Supplier Relationship

An organization which has applied the TQM approach needs to communicate and deal with its customers as well as suppliers. As Spinneys is a retail sector company, suppliers play a huge role in the preservation and growth of quality aspects in the organization. As the suppliers cannot be considered an internal part of the organization, so that aspect cannot be improved through trainings and company policy changes, but the relationship maintained by the suppliers makes a big difference in making positive changes in the organization on the supplier front. Taking an example of the biggest retail giant, Walmart has gained expertise and immense quality on the supplier front by maintaining an excellent working relationship with them that allows Walmart to get their hands on certain merchandise earlier than other retail stores (Richards, 2012).
Factors to be taken into consideration are Supplier Quality Management and Supplier involvement with the organization. TQM facilitates open and frequent communication which can be a huge factor of benefit in growing relations with the suppliers. Increased involvement of the supplier group facilitates quality enhancement and cost cutting.
Total Quality Management Implementation Plan

Implementation Plan and Groundwork

In case of Spinneys, the TQM element approach will be taken into consideration for adopting total quality management in the organization. This plan is being preferred over the guru approach as the guru approach focuses on the quality problems going in the organization, but as there is no apparent alarming quality associated problems in the management of Spinneys but the organization needs an all-round development in all the processes, which makes the implementation of the element approach ideal for Spinneys.
The initial step to implement TQM starts from the top. The leadership of the organization has to know the core principles of TQM and take the initiative to instill the principles of TQM in the organization. Taking initiative regarding TQM as leader means to demonstrate commitment to TQM, and putting the practices, principles and philosophy of TQM in daily life. TQM implementation also suggests initiative from all levels of the organization which means to create new leaders in the organization in order for them to take initiative regarding any quality factors in the organization. But giving power of initiative does not mean that responsibility of the leader is over. A leader also has to guide the efforts of his subordinates (Mansir & Schacht, 1989).
The next steps will be to build an organization wide awareness regarding TQM application and also inform the customers and suppliers regarding the decision to adopt TQM principles. Facilitating organization wide communication channels is also important for smooth execution. After this, certain quality oriented goals have to be aligned with the organization. Initially, it would be to reach up to the ISO 9000 standards and further the bar has to be set higher. The focus on customer satisfaction is to be always kept in minds and goals have to adhere to customer satisfaction. After early endeavors in visible areas, groundwork changes have to be made (Chandra, 2013).
Recommendations

Spinneys can build better relationships with suppliers in order to get timely deliveries and to obtain certain products earlier than others if possible. This would give them a competitive advantage. Another change to be made is to implement vigilance in all store employees to observe that the stores are clean and recommend them to take immediate measure when possible. It is also important to listen to the customer’s demands and complaints in order to completely satisfy customers. For this, all store employees have to take notes of any complaints or suggestions that come their way and submit them to the store manager at the end of the day. The quality of food is also to be observed rigorously every day and quality checks have to be made regularly in order to ensure that every customer gets fresh clean products from the stores.
Existing Quality Processes

Spinneys has maintained high safety and hygiene standards which apply to activities like storage, manufacture, sanitation and packaging. There are specific instructions given to all employees regarding all these processes. There are comprehensive training programs for all store employees to implement safety and hygiene. There is also a Hazard analysis critical control point system in place to ensure safety procedures in case of emergency. Spinneys is currently striving towards an ISO 22000 certification for a food safety management system (Spinneys, 2015).
Philosophies Surrounding Total Quality Management

One of the most recognizable philosophies regarding TQM is the approach towards quality management by Deming. This approach focuses on creating an organization-wide system with qualities like cooperation and learning as basis for implementing TQM in all processes. Deming also gave the philosophy about seven deadly diseases which are points of notice for an organization which can be facing quality issues (Deming, 1986). Another renowned approach to quality management was given by Crosby which contain 14 steps to enhance quality in an organization (Crosby, 1979). The approach towards quality management by Juran was based on a term called fitness for use. This approach focuses on TQM in the production sector and not on service. He gave 3 processes which should be taken as a basis for enhancing quality (Juran & Gryna, 1988). Feigenbaum had also constructed an approach towards quality management which focused on the total life cycle of any product or service and suggested improvements in these areas. He also mentioned 4 stages towards quality control which are considered as a systematic approach (Feigenbaum, 1956).
Quality Improvement Tools

There is a wide array of tools available for implementing total quality management in an organization. These tools aid in implement a TQM plan and how to maintain quality management procedures. There are certain sets of statistical tools which analyze defects in the organizational system which can be corrected. Another tool comes from Japanese TQM philosophies which can be recognized as “Poke-a-Yoke“, that is utilized to make the process of implementing TQM a foolproof process in an organization. There is a force field analysis also present which lists the forces that affect the business of the organization and clarifies the direction of efforts. Process maps are also an important tool which is used to frame the process and solve quality oriented issues. Other tools for quality enhancement also include root cause analysis, fish bone analysis and brainstorming sessions between employees to boost quality factors (Melsa).
Quality Measurement Tools
There are certain specific sets of tools which are used for assessing the level of quality in the organization and help in implementation of total quality management. Six Sigma has been taking many forms in the concept of quality management. It is considered as a framework for implementing and at the same time, it is also given the title of a philosophy and/or a strategy to effectively analyze quality in business processes and results (products and services provided) and provides a long term benefit to the company by enhancing profitability, improving customer satisfaction, reducing cost, and increasing the effectiveness of every function in the organization. It has been a widespread revolution and it has found home in many business of various backgrounds and types and enabled sustainable quality (Raisinghani, 2005).
The area of statistics also has a contribution in quality improvement factors which can be surprising as quality is a subjective thing but it has been in usage since a long time in business and has been regarded as a trustworthy measurement of quality. One of the initial tools for statistically measuring quality is the Ishikawa’s basic statistical toolbox which is a set of seven tools that aid in observing business processes in a better manner. Another example of statistical tools is an extended statistical toolbox that includes an additional array of tools which provide advantage to the service sector. Another renowned statistical tool that has been extensively used to measure quality is data mining and data warehousing. It is a rather modern tool associated with information technology and database management which helps businesses store, classify and observe processes statistical data for analyzing the quality of the processes in an organization (Ograjenšek, 2002).

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March 8, 2018

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