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Total Quality Management

[Writers Name]

[Name of the Institute]

Question 1:

The topic selected is Total Quality Management. A quality management system (QMS) is an assortment

of business procedures which are attentive on accomplishing quality rule and quality purposes to meet

consumer necessities. It is articulated as the organizational arrangement, rules, measures, developments

and capitals required to perform quality management. (Shane 2001). Risk managers are finding that total

quality management (TQM) techniques can help them enhance their performance in mitigating corporate

exposures. Risk management and TQM both aim to eliminate or reduce risks, enhance performance, solve

problems and locate opportunities for involvement. TQM tools, such as flow charting, benchmarking, and

just-in-time inventory systems can help risk managers examine how processes are conducted within an

organization. Successful TQM demands effective leadership and an attitude that supports ongoing


Question 2:

Definitions of quality:

1. The standard of something as measured against other things of a similar kind; the degree of

excellence of something.

2. A distinctive attribute or characteristic possessed by someone or something.

3. How good or bad something is.

Question 3:
Focus on

Involve all Continuous

Employees Imrovement

Accurate Qualtiy
Evaluation Improvement

Question 4,5 6:

In Mc. Donalds, TQM is an approach to achieving long-term success and customer satisfaction

that is based on the participation of all members of an organization in efforts to improve processes,

products and services. In addition, risk management and TQM share the following goals:

Enhancing performance and solving problems

Gaining commitment from all organizational levels

Eliminating or reducing risks

Identifying opportunities for involvement

Tracing root causes of losses

Improving Quality

TQM use careful planning with long-term results in mind. Instead of immediate financial

measures, changes advocated by TQM methods should be assessed over a long time horizon. With this

extended view, risk managers can better focus on the role of different operating units in supporting the

organization's overall mission and consider how changes made at the individual or departmental level can

affect the organization, community and marketplace.

In addition, companies that have adopted TQM generally report a clearer mission and a more

consistent purpose. The goals and objectives of specific functional areas should support the organization's

overall mission while avoiding overlapping or conflicting goals. Risk management departments in Mc

Donald can support company-wide continuity by determining acceptable exposure levels and

implementing effective risk management programs that help their firms maintain consistent earnings and

solvency. TQM is the amount of decision-making latitude granted to employees. Not only are employees

able and encouraged to be creative, but their decisions often form the basis for permanent change. For

example, a risk manager who learned that his company planned to use a hot air balloon for rides as a

promotion at a county fair was able to address previously overlooked liability and risk control issues and

to secure the appropriate insurance coverage. Similarly, risk managers can use loss frequency and severity

data to identify needed changes in functions or risk management programs.

In Mc Donald, TQM also expands a risk management department's view of its "customers."

Within a TQM framework, this category can include not only the risk manager's employing organization,

but also fellow employees and managers, senior and financial executives, service providers and other

entities. This diversity highlights the need for risk managers to understand their organization's goals,

functions and production systems. To improve this understanding, risk managers need to maintain

consistent communications not only throughout their organization but also within their industry and


TQM relies on a series of tools that can provide valuable insights into how processes are

carried out within an organization or operating unit. Visual tools such as flow charting, work

flow analysis and fishbone diagramming can help risk managers move loss control from its

traditional technical orientation toward helping them better understand (and correct) defective

processes from which losses can emerge.

Flow charting is a technique for diagramming a process to illustrate administrative

procedures, the movement of raw materials or other steps. It can be useful in planning or
explaining a process and can also be used to identify potential bottlenecks, accidents or other

necessary corrections. Similarly, a work flow analysis depicts the movement of people, materials

or information through a process to identify inefficiencies and suggest improvements. A fishbone

diagram can be used to explore factors thought to cause a failure or problem. This form of chart

derives its name from the shape of the diagram--the problem is written at one end of a horizontal

line, with contributing factors listed on diagonal lines branching off the horizontal line.

In Mc Donald, the knowledge of customers (members), overall customer service systems,

your responsiveness, and your ability to meet requirements and expectations carry the greatest

weight of all. Many associations already identify separate constituencies within their

memberships. We do it by profession and occupation with specific association-affiliated

councils--such as human resource managers, plant engineers, and small-company presidents--

that meet on a regular basis.

Question 7 16:

Supply chain management is much more than a materials movement or transportation

initiative. It is also a new way of thinking about business relationships. Some organizations,

however, are trying to adopt supply chain management practices (such as just-in-time

replenishment or strategic sourcing) without also implementing an organization-wide supply

chain philosophy and culture. Yet, a half-hearted effort only produces half-hearted results. To

really embrace supply chain management, companies must implement both supply chain

methodologies and a supply chain philosophy. Embracing supply chain management (SCM) is

like driving in the Daytona 500. From the very beginning, you need to know what you are doing,

be properly trained, and have the right tools, or you're going to be in big trouble! Maybe this is
not the best analogy possible, but it certainly highlights the inherent risk associated with both

activities. Stockcar drivers racing at 200 mph are taking their lives into their hands, and so too

are companies implementing supply chain management initiatives. A failed SCM

implementation will not only cause a company to lose a significant amount of money but it also

will seriously disrupt its already existing structure and processes and possibly leave it in even

worse shape than before. We would never think about jumping in a race car without any

preparation and go charging around the track at a high rate of speed just inches away from others

traveling at breakneck speed. And yet we hear a buzzword or read about some super success

story, and we make a decision to implement a new program without being fully equipped to do


McDonalds Supply Chain Methodology:

McDonalds prime supplier is the Martin-Brower Company LLC, is tasked with

transporting provisions to approximately all of the companys 15,000 sites in North America. For

each distribution center grips 250 to 700 eateries, providing warehousing, conveyance, and

logistics amenities to everyone. Furthermost restaurants acquire two or three distributions in one

week, with one delivery lorry capable to absolutely stock the formation. Delivery periods are

synchronized to not disturb feast or dine service for the reason that customers possibly will not

pull in if they observe the lorry in the parking portion.

Drivers pop in route to be assured the restaurant has workforces there to get delivery

when it reaches, dropping the time Lorries are in the parking portion by up to 30%. The company

also transferred from roller and view to delivery tumbrils that transfer from the lorry into the
restaurant. Through its extensive and multifaceted supply chain, McDonalds and Martin-Brower

uphold strategies to contract with tragedies. For each summer, equally the companys strategy

for the disasters such as hurricanes and tornadoes and connect alternative measures. Inventory is

turned over each four days at a McDonalds restaurant. The company can organize this as of

dealings theyve shaped with their dealers, a lot of which still uphold the connection that

happening with McDonalds Company founder who is Ray Kroc.


The company processes customer satisfaction over and done with a Mystery Shopper

inventiveness which appearances at customers' involvements in the restaurant beside with

response provided by the customers. The liberal business philosophies make certain company are

continually altering and developing the complete of business and in sequence all that the

company distributes to the customers. The quality management is very important factor of the

MCDs because the customers expected a lot from the MCDs in case of the supply chain and

quality of their products. The Company has a very definite system of supplying their products

towards their customers thus it is excellence of their quality management.


Daniel, S. and W.D. Reitsperger, "Linking Quality Strategy with Management Control Systems:

Empirical Evidence from Japanese Industry," Accounting, Organizations and Society, 16

(1991), pp. 601-618.

DeGeorge, G. and K. Hammonds, "Where Did They Go Wrong," Business Week, October, 25

(1991), pp. 34-38.

Evans, J. and W. Lindsay, The Management and Control of Quality. St. Paul: West publishing,

(1989), pp. 32.