Total Quality Management At Lotteria.pdf

Total Quality Management TQM is a qualitymanagement method that has been applied by many businesses to improve product andservice quality and improve operational efficiency.. In addition

GROUP ESSAY TOTAL QUALITY MANAGEMENT

Group: 5 Class: B09E Lecturer: Nguyen Thanh My

Topic:

TOTAL QUALITY MANAGEMENT AT

UNIVERSITY OF ECONOMIC AND FINANCE

HO CHI MINH CITY

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II THEORY: 1

1 Total quality management 2

1.1 TQM definition 2

1.2 Basic concepts of TQM (8 elements of TQM) 2

2 The theoretical content related to Lotteria 2

2.1 The EFQM Excellence Model 2

2.2 5S quality management method 2

2.3 What is a HACCPA standard? 2

2.4 What is ISO 14001:2015? 2

2.5 Fast food market in Vietnam 2

3 Lotteria 2

3.1 Introduction 2

3.2 Vision 2

3.3 Mission 2

3.4 Core Values 2

III APPLY 1

1 Systematically describe the content of the total quality management process in the enterprise 2

1.1 Features of EFQM quality management system at Lotteria 2

1.2 Measures to implement the plan 2

1.3 Method 2

1.4 The principles of quality management system at Lotteria 2

1.5 Lotteria's quality assessment method 2

2 Analysis of advantages and disadvantages shows that the problem still exists 2

2.1 Advantage: 2

2.2 Disadvantages: 2

2.3 Problems exist 2

3 Find out similar solutions that can be applied to businesses 2

3.1 Professional human resource management: 2

3.2 Performance evaluation program: 2

3.3 Continuous training: 2

3.4 Career development: 2

4 Propose specific recommendations or solutions for enterprises to improve quality management 2

4.1 Traning employees: 2

4.2 Perform regular quality checks: 2

4.3 Continuous improvement: 2

4.4 Hold Unscheduled Equipment Use Tests: 2

IV CONCLUSION: 1

V REFERENCES 1

I INTRODUCTION:

In a competitive market, business success is not just about achieving high sales andprofits To maintain and develop the existence of a business, it is essential to ensure thequality of products and services Total Quality Management (TQM) is a qualitymanagement method that has been applied by many businesses to improve product andservice quality and improve operational efficiency It is a management philosophywhose goal is to improve product quality and enhance customer satisfaction to the bestlevel What makes TQM different is that it provides a comprehensive system formanaging and updating all aspects related to quality and involving all aspects,departments and individuals to achieve the stated quality standards

The focus of this essay is to evaluate and critique Lotteria's approach to totalquality management The essay will cover many topics, including the construction of aquality management system, its effectiveness, obstacles encountered in theimplementation process, and solutions to overcome challenges In addition, the essaywill examine the importance of total quality management in the food manufacturingsector and Lotteria's contribution to the industry

1.2 Basic concepts of TQM (8 elements of TQM)

 Customer Focused:

An organization must consider its customers in all activities and decisions, specificallyhow the customers will profit from them It must raise general customer satisfaction Thecompany has a number of options, including personnel training and better internalprocess management

 Employee involvement:

Involving and empowering employees to contribute to the improvement process.

 Continuous Quality Improvement:

Any firm that wants to survive must satisfy its clients, and to do so, they must alwaysseek to raise its standards of excellence In order to maintain fundamental standards andquality, they should have some benchmarks in place, and under no circumstances couldthe quality of their outputs and services deviate from these benchmarks

 Strategic and Systematic Implementation:

This point focuses on the timing of implementation Enhancing quality requires makingthe appropriate decisions at the appropriate moment It is crucial from a strategicstandpoint as well since if a rival is developing identical policies or initiatives, itshouldn't benefit from being first to market

 Fact-Based Decision-Making:

Every action that is taken should be supported by events, facts and evidence It's crucial

to avoid letting emotions or a secret personal agenda influence your decision-makingprocess or outcome

 Integrated Approach:

This applies to companies that have many departments and subsidiaries working together.Considering all these divisions and how they are integrated, any determination must beshown It shouldn't be that a department increases efficiency but another divisionreduces

 Process-centered:

A fundamental part of TQM is a focus on process thinking A process is a series of stepsthat take inputs from suppliers (internal or external) and transform them into outputs thatare delivered to customers (internal or external) The steps that must be taken to completethe process are specified, and performance indicators are continuously watched in order

to catch any unexpected change

 Communications:

During times of organizational change, as well as part of day-to-day operation, effectivecommunications plays a large part in maintaining morale and in motivating employees atall levels Communications involve strategies, method, and timeliness

2 The theoretical content related to Lotteria

2.1 The EFQM Excellence Model

Figure 1 Picture of The EFQM Excellence Model

According to the EFQM Excellence Model, leadership is based on resources,people and capabilities, finance, etc in general, all to build up the strategy TQM'smodel of excellence is recognized as a vehicle, through which it helps an organization

to fully harness and unleash the talents of its employees to produce results andperformance Focus on employees from the start, harnessing employee talents andcreating results This model enhances the role of each individual in the organizationand exploits the talent factor of human resources The end result will show the learning,creativity and innovation of each individual in the organization

The Model's nine "big ideas" or criteria support this approach and make an effort toencompass all of an organization's activities There are two categories for these nineconcepts: Enablers and Results EFQM's publications on the Model of Excellencecapture much of this knowledge and provide a framework that organizations can use tofollow through in 10 steps:

 Set direction through leadership

 Establish the results they want to achieve

 Establish and drive the strategy

 Set up and manage appropriately their approach to processes, people,partnerships and resources

 Deploy the approaches to ensure achievement of the strategies and thereby theresults.

 Assess the ‘business’ performance, in terms of customers, their own people andsociety results

 Assess the achievements of key performance results

 Review performance for strengths and areas for improvement

 Innovate to deliver performance improvements

 Learn more about the effects of the enablers on the result

Every one of the nine criteria is further broken down to provide a more thoroughexplanation of what "Excellence" means in that context as well as a list of usefulquestions an organization may use to assess its performance

According to the quality management principles at Lotteria, the EFQM model isapplied at this enterprise

2.2 5S quality management method

a Definition

The five Japanese words Seiri, Seiton, Seiso, Seiketsu, and Shitsuke that make upthe acronym 5S are utilized in the automobile and other sectors These five terms,which are sometimes translated as "sort, set in order, shine, standardize, and sustain,"basically allude to the practice of cleanliness in any setting The 5S managementmethod is a series of procedures that seeks to increase productivity by establishing andmaintaining tidy and structured work environments It is frequently referred to as the

"commonsense approach" and is seen as a low-cost, technologically simpleparticipatory strategy that workers can use regardless of their technical ability

No

.

1 Sort Choose what you need, discard what you don't need

2 Set in order Arrange everything neatly in a certain order, convenient and safe to

use

3 Shine Clean machinery, shiny working tools

4 Standardize Standardize the steps for creating processes and saving documents

5 Sustain Check out the steps and processes that are strictly followed.

b The importance of 5S Model

The 5S method is a low-cost, highly effective lean manufacturingtechnology that is based on people assisting in the reduction of non-value-addedoperations, fostering an environment that values continuous improvement, andenhancing workplace quality and safety

2.3 What is a HACCPA standard?

HACCP is an acronym for Hazard Analysis and Critical Control Point System, andmeans "the system of hazard analysis and critical control", or the system that analyzes,identifies and organizes the control of hazards important in food production andprocessing”

HACCP is a quality management system based on hazard analysis and criticalcontrol points It is an analytical tool to ensure food safety and quality HACCPincludes systematic reviews of all relevant steps in the food processing process, andidentifies those steps that are critical to food safety and quality This tool allows tofocus technical resources, expertise on processing steps that have a decisive impact onfood safety and quality

2.4 What is ISO 14001:2015?

ISO 14001 is an international standard that specifies requirements for anenvironmental management system It also provides a framework that an organizationcan follow, rather than establishing environmental performance requirements

The purpose of ISO 14001:2015 is to provide organizations with a framework toprotect the environment and respond to changing environmental conditions in balancewith socio-economic needs This International Standard also specifies requirementsthat enable an organization to achieve the intended results for its environmentalmanagement system

2.5 Fast food market in Vietnam

Nowadays, we easily find fast food, bottled drinks in supermarkets, restaurants

or traditional markets and sidewalk eateries Every morning, passersby just need to stop

by a street stall to have bread, dumplings or sticky rice for a quick breakfast

Or for the office world, lunch is very simple, just open the app to order fast foodlike Grabfood, Now, on the phone or call directly to the restaurant to ship food Itcan be seen that, in general, the fast food market in Vietnam is extremely vibrant,becoming a trend in the busy modern life In addition, young people also love foreignbrands such as McDonald's, KFC, Pizza Hut, Starbucks, Burger King, etc

KFC and Lotteria are two fast food chains with the highest market share inVietnam It can be seen that Vietnamese fast food still dominates over foreign fast foodbrands

During that time, Lotteria has been making constant efforts to provide customers with thoughtful, considerate and continuous research in order to develop a healthy culinary culture Moreover, to ensure hygiene, food safety and environmental

protection, Lotteria is proud to achieve International certifications such as:

- Food safety (RVA HACCP)

- Environmental sanitation (ISO 14001)

- Product quality (ISO 9001)

Lotteria has been launched in the Vietnam market since 1998 Currently, with the stature of international businesses, Lotteria is leading the domestic food industry with more than 210 restaurants in over 30 provinces/ cities across the country This is the result of the relentless efforts that Lotteria has achieved

3.2 Vision

“Commitment for the New 50 Years” Lotte changed the growth direction of thegrowth group in terms of quality and announced a new vision to achieve sustainablegrowth over the next 50 years “a lifetime value creator” It means that we will providethe most core value to our customers throughout the life cycle through Lotteria's brand

3.3 Mission

"We enrich people's lives by providing trusted and loved high-quality products andservices." During its operation, Lotteria has always strived to provide attentive andconsiderate services and constantly researched and developed a healthy culinaryculture

3.4 Core Values

Beyond Customer: We do not strive to meet customer needs, instead we create

value that exceeds customer expectations

Challenge: We focus on the essence of our work and achieve our larger goals

through constant challenges

Respect: We aim to build a community of trust by communicating, respecting

different points of view and adhering to common principles

Originality: We respond agilely to change to create original and unique, through

collaboration that crosses boundaries, breaking the boundaries of innovation

III APPLY

1 Systematically describe the content of the total quality management process

in the enterprise

1.1 Features of EFQM quality management system at Lotteria

According to the quality management principles at Lotteria, the EFQM model isapplied at this enterprise Specifically, they focus on 3 human resources and processimprovement is what happens then:

a Leadership:

Leadership is one of the important factors in the formation and implementation of asuccessful strategy It creates the link between the separate functions of the business into a unified system Leaders are people who provide vision, direction, plan, and

commit to monitor activities Moreover, leaders disseminate energy boosting activities and promote the morale and the spirit of the workers so that they can contribute effort during the implementation of the plan The leader of the company always listens to the opinions of employees, then makes the final decision

Control employees both directly (through the store manager) and indirectly

(through the manager - camera system)

Build a comfortable, dynamic working environment and focus on employee

welfare Besides, if employees work superficially and irresponsibly, they will still be punished For example, bad service attitude, not checking product quality, defective goods, wrong goods

Thereby, it shows that the leadership is interested in Lotteria's development thanks

to training, clear orientations, fair punishment and punishment, etc., so that employees

in the entire organization work strictly

The top leaders of the Lotteria must set out clear and specific goals so that

followers can follow Leaders need to motivate employees by building incentives and promotions for talented employees In some situations, top managers of Lotteria need

to change their leadership style to match that can steer the boat in the right direction

b People

This is one of the factors that play a key role in the successful implementation of the strategic management plan Without communication, employees do not seem to

know how or where to do things requirements in the plan, the enterprise becomes fragmented, lacks efficiency Human resources are the biggest resource, the person whoperforms the activities in the plan to succeed Employees are motivated, equipped with full skills and knowledge will give better performance to achieve the set criteria,

making the process of implementing the strategic management plan smooth and

effective to achieve the goals set by the business

Powerful, young, dynamic staff, professional service attitude, the collective of employees has been distilled, shaped and developed the culture of "How We Win Together" - "Together for success" Consensus to reach out"

Employees work flexibly, can swap positions for each other if the store is too crowded (Kitchen staff can assist in billing, service staff can assist in billing, chefs, )Employees work with urgency, committed to consensus from idea to action

Encourage employees to communicate with customers through greetings and thanks every time customers come to the store

Figure 2 Lotteria's management chart at all levels

One of the most basic goals that people strive for is how to make more money.Money is a way of recognizing the ability and efforts of an employee Lotteria pays18,000 VND/hour working for each new employee who signs the contract After acertain period of dedication, you will be considered to increase your rank according tolevels A, B, and C so that the company can base that income norm In addition, Lotteria

employees are also entitled to an allowance of 20,000 VND for meals and 3,000 VNDfor deposit after each shift Year-end bonus is about 1 to 2 million VND/person If youcan work both weekends and Tet holidays, you will be treated more generously,employees enjoy many discount vouchers, etc There is a clear division of levels, nomess, each person has a task private service Help the company control its employeesand achieve its goals.

 Differentiation strategy: It can be combined with the diversification strategy thatLotteria is implementing mentioned above to improve efficiency evenmore Enterpriseswith strong resources should take advantage of investment in research anddevelopment to continue to improve fast food products and services to meet the needs

of today's consumers in the market Take advantage of the strength of the existingbrand reputation to be able to highlight the differences and strengths of the brand fromother competitors In addition, Lotteria can build on relationships with fast fooddelivery services like Shoppee food, Baemin, makes its own food page different onthe app compared to other brands, or with products like Chin-Su's chili sauce becausethe fast food includes fried foods that a lot of who loves to use this chili sauce to eatwith it

Inc (owns KFC), McDonald's System Inc (owns McDonald's), Jollibee FoodsCorporation (owns Jollibee) also has large financial resources to support the brand'soperations To be able to exploit its financial strength, Lotte has divided and organizedsmall strategic business units in different fields, expanding the scale of operations Inthe fast food industry, Lotteria is a business unit that is organized by Lotte to be able toUse that source to achieve the goal that the brand is pursuing

 Ability to raise capital: Lotteria comes from a large and powerful conglomerateLotte, thus the company rises equity through internal source.This ability has alsoallowed the company to engage in mergers and acquisitions, and thus reduce themarket competition Moreover, the business has can gain increased market penetrationand market access through its ability to raise capital Besides, Lotteria can takeadvantage of potential opportunities and reduce risk in the market However, thiscapability is owned by major competitors in Vietnam because these brands also belong

to famous corporations KFC belongs to Yum Brands group, McDonald's comes fromthe same group of the same name, so it is not difficult To know the capital capital ofthese companies is quite large like Lotteria To take advantage of the large capital,Lotteria is still continuing to research, improve and develop products and services thatmake a difference for the brand

 Company brand reputation: As a subsidiary of a powerful and influentialcorporation globally, it is not surprising that Lotteria enjoys the reputation of the parentgroup Lotte Therefore, customers often appreciate and always appreciate it keep agood image of the Lotteria brand with excellentquality products and services in mind.With the brand reputation always at the top and the interestof many people in this fastfood industry, Lotteria is easy to can take advantage of many opportunities, minimizeemerging threats in the market.In Vietnam, there are very few strong competitors,counting on the palm of your hand, businesses that own that resource such as KFC,McDonalds, Jolibee, on the contrary, there are no Vietnamese businesses that have suchadvantages in that industry.In order to obtain and initiate such a strong corporate brandreputation, competitive Vietnamese businesses (except for KFC, McDonald's, Jolibee)need to go through a long process to build, spend a lot of effort and cost to own not tomention difficulties, other threats of competition from Lotteria can threaten the survival

of the company As for organizational support, Lotteria is properly organized to exploitits resources through the expansion and distribution of a network of fast food chainsglobally in general and across Vietnam in particular for exploiting that company'sbrand reputation

e Processes, services and products

 Guide and train staff on product quality

Figure 3 Pictures of a training session of Lotteria employees

Provide staff policies and guidelines for food quality control procedures

Restaurant managers educate employees about the importance of quality

food by practicing the knowledge right at the restaurant Show employees how toidentify spoiled, substandard food,

How to preserve, prepare, check the temperature of food, clean the kitchen, inaccordance with food hygiene and safety regulations

People working in the kitchen must wear protective gear such as hats, masks,gloves, etc., regularly wash their hands, keep their clothes clean, etc during theworking process

 Sales forecast

For an effective restaurant business, it is necessary to have timely improvisationunder the fluctuations of the market There are times when customers are crowded butthere are times when there are no customers Therefore, this directly affects therestaurant's material management process If too much raw material is left in stock, itcan lead to long-term storage because it is not sold out, directly affecting the quality offood

Lotteria has an overview of the restaurant's monthly revenue, monthly revenuereports to make specific plans in controlling inventory Besides, it is also advisable to

take precautions for arising risks such as material loss on holidays, event calendars andweather factors.

 Cross-examination

Staff specializing in food management, after receiving ingredients from suppliers,must ask for confirmation from the chef, and in the process of monitoring there is across-track to tighten the cycle In addition, Lotteria's managers also regularly makeunexpected checks to increase supervision efficiency

 Strict food management

Lotteria only signs contracts to purchase input materials with suppliers who haveall the necessary food certificates and meet GMP, HACCP standards…

During the import of raw materials, the manager will check the shipments to seeany problems Make sure the store has imported the best ingredients

The consignments are then checked for quality and only the finest ingredients arebrought into the restaurant Once approved, the ingredients will be properly stored(freeze, refrigerated or stored in a dry place) to ensure high quality and maximize shelflife

f Results

 Minimize errors in dishes delivered to customers

 Limiting the costs for repairing errors that cause reduction such as customercompensation, etc

 The ability to fulfill the goal: "Being a high-quality fast food product that givescustomers the best taste and service to become the number 1 beloved brand inVietnam", deliver the strategy and create Sustainable Value

 Lotteria is proud to obtain international certifications such as:

 Food safety (RVA HACCP)

 Environmental hygiene (ISO 14001)

 Product quality (ISO 9001)

1.2 Measures to implement the plan