Total Quality Management At Lotteria.pdf

lOMoARcPSD|38183518 UNIVERSITY OF ECONOMIC AND FINANCE HO CHI MINH CITY - - GROUP ESSAY TOTAL QUALITY MANAGEMENT Group: Class: B09E Lecturer: Nguyen Thanh My Topic: TOTAL QUALITY MANAGEMENT AT Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Full-name Student Contribution Bùi Lê Khánh Linh code Introduction + Conclusion 100% Vũ Thị Hồng Hà 20501210 Phan Nguyễn Thảo Mi Analysis of advantages and disadvantages 100% Nguyễn Thị Ánh Sương shows that the problem still exists 100% Huỳnh Hoa Anh Đào 20501227 Supervisor Phạm Hoàng Hân Theory 100% Huỳnh Đỗ Phương Minh 20501728 Nguyễn Thị Minh Tâm Propose specific recommendations or 100% solutions for enterprises to improve 100% 20501761 quality management 20501752 Find out similar solutions that can be 100% applied to businesses 100% 20501273 Systematically describe the content of the total quality management process in the 20501223 enterprise 20501738 Table of Contents I INTRODUCTION: Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 II THEORY: 1 Total quality management 1.1 TQM definition .2 1.2 Basic concepts of TQM (8 elements of TQM) 2 The theoretical content related to Lotteria .2 2.1 The EFQM Excellence Model 2.2 5S quality management method 2.3 What is a HACCPA standard? 2.4 What is ISO 14001:2015? 2.5 Fast food market in Vietnam .2 Lotteria 3.1 Introduction 3.2 Vision 3.3 Mission 3.4 Core Values 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 1.2 Measures to implement the plan 1.3 Method 1.4 The principles of quality management system at Lotteria 1.5 Lotteria's quality assessment method 2 Analysis of advantages and disadvantages shows that the problem still exists 2.1 Advantage: 2.2 Disadvantages: Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 2.3 Problems exist Find out similar solutions that can be applied to businesses 3.1 Professional human resource management: .2 3.2 Performance evaluation program: 3.3 Continuous training: 3.4 Career development: Propose specific recommendations or solutions for enterprises to improve quality management .2 4.1 Traning employees: 4.2 Perform regular quality checks: 4.3 Continuous improvement: 4.4 Hold Unscheduled Equipment Use Tests: .2 IV CONCLUSION: V REFERENCES Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 I INTRODUCTION: In a competitive market, business success is not just about achieving high sales and profits To maintain and develop the existence of a business, it is essential to ensure the quality of products and services Total Quality Management (TQM) is a quality management method that has been applied by many businesses to improve product and service quality and improve operational efficiency It is a management philosophy whose goal is to improve product quality and enhance customer satisfaction to the best level What makes TQM different is that it provides a comprehensive system for managing 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 total quality management The essay will cover many topics, including the construction of a quality management system, its effectiveness, obstacles encountered in the implementation process, and solutions to overcome challenges In addition, the essay will examine the importance of total quality management in the food manufacturing sector and Lotteria's contribution to the industry II THEORY: Total quality management 1.1 TQM definition Total quality management (TQM) consists of organization-wide efforts to "install and make permanent climate where employees continuously improve their ability to provide on-demand products and services that customers will find of particular value "Total" emphasizes that departments in addition to production (for example sales and marketing, accounting and finance, engineering and design) are obligated to improve their operations; "management" emphasizes that executives are obligated to actively manage quality through funding, training, staffing, and goal setting TQM is a strategic management tool that can be used for improving the competitiveness, effectiveness, and flexibility of the whole organization and to survive in the increasingly competitive market 1.2 Basic concepts of TQM (8 elements of TQM)  Customer Focused: An organization must consider its customers in all activities and decisions, specifically how the customers will profit from them It must raise general customer satisfaction The company has a number of options, including personnel training and better internal process management  Employee involvement: Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 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 so, they must always seek to raise its standards of excellence In order to maintain fundamental standards and quality, they should have some benchmarks in place, and under no circumstances could the 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 making the appropriate decisions at the appropriate moment It is crucial from a strategic standpoint as well since if a rival is developing identical policies or initiatives, it shouldn'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-making process 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 be shown It shouldn't be that a department increases efficiency but another division reduces  Process-centered: A fundamental part of TQM is a focus on process thinking A process is a series of steps that take inputs from suppliers (internal or external) and transform them into outputs that are delivered to customers (internal or external) The steps that must be taken to complete the 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, effective communications plays a large part in maintaining morale and in motivating employees at all levels Communications involve strategies, method, and timeliness The theoretical content related to Lotteria 2.1 The EFQM Excellence Model Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Figure 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's model 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 and performance Focus on employees from the start, harnessing employee talents and creating results This model enhances the role of each individual in the organization and 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 to encompass all of an organization's activities There are two categories for these nine concepts: Enablers and Results EFQM's publications on the Model of Excellence capture much of this knowledge and provide a framework that organizations can use to follow 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 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518  Deploy the approaches to ensure achievement of the strategies and thereby the results  Assess the ‘business’ performance, in terms of customers, their own people and society 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 thorough explanation of what "Excellence" means in that context as well as a list of useful questions an organization may use to assess its performance According to the quality management principles at Lotteria, the EFQM model is applied at this enterprise 2.2 5S quality management method a Definition The five Japanese words Seiri, Seiton, Seiso, Seiketsu, and Shitsuke that make up the 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 management method is a series of procedures that seeks to increase productivity by establishing and maintaining tidy and structured work environments It is frequently referred to as the "commonsense approach" and is seen as a low-cost, technologically simple participatory strategy that workers can use regardless of their technical ability No Name Meaning Sort Choose what you need, discard what you don't need Set in order Arrange everything neatly in a certain order, convenient and safe to use Shine Clean machinery, shiny working tools Standardize Standardize the steps for creating processes and saving documents Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 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 manufacturing technology that is based on people assisting in the reduction of non-value-added operations, fostering an environment that values continuous improvement, and enhancing workplace quality and safety 2.3 What is a HACCPA standard? HACCP is an acronym for Hazard Analysis and Critical Control Point System, and means "the system of hazard analysis and critical control", or the system that analyzes, identifies and organizes the control of hazards important in food production and processing” HACCP is a quality management system based on hazard analysis and critical control points It is an analytical tool to ensure food safety and quality HACCP includes systematic reviews of all relevant steps in the food processing process, and identifies those steps that are critical to food safety and quality This tool allows to focus technical resources, expertise on processing steps that have a decisive impact on food safety and quality 2.4 What is ISO 14001:2015? ISO 14001 is an international standard that specifies requirements for an environmental management system It also provides a framework that an organization can follow, rather than establishing environmental performance requirements The purpose of ISO 14001:2015 is to provide organizations with a framework to protect the environment and respond to changing environmental conditions in balance with socio-economic needs This International Standard also specifies requirements that enable an organization to achieve the intended results for its environmental management 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 food like Grabfood, Now, on the phone or call directly to the restaurant to ship food It can 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 foreign brands such as McDonald's, KFC, Pizza Hut, Starbucks, Burger King, etc KFC and Lotteria are two fast food chains with the highest market share in Vietnam It can be seen that Vietnamese fast food still dominates over foreign fast food brands Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Lotteria 3.1 Introduction Lotteria is a fast-food restaurant chain belonging to Lotte Group - one of the five largest corporations in Korea For consecutive years, Lotteria was ranked No in "Brand Power", granted by the "Korea Management Association", and was selected as the No position in brand competitiveness with the title "Brand Stock" of the rating agency 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 the growth group in terms of quality and announced a new vision to achieve sustainable growth over the next 50 years “a lifetime value creator” It means that we will provide the 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 and services." During its operation, Lotteria has always strived to provide attentive and considerate services and constantly researched and developed a healthy culinary culture 3.4 Core Values Beyond Customer: We 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 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Leadership Strategy directions, plans in detail for managers and employees so that they have a clear view Organizational Strategy Generate worthy rewards after completing tasks from the structure plan Managers are responsible for supervising and guiding Ability to Strategy employees measure Manager have to build a culture of trust for employees by performance listening to ideas and suggestions from them Communicatio Strategy The top leaders of the Lotteria must set out clear and n and people specific goals so that followers can follow Leaders need to motivate employees by building incentives and promotions policy 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 Lotteria still retains the same organizational structure The company was built to use the inherent competitive advantages analyzed above and serve effectively in the implementation of business strategies Lotteria's human resources department has developed a process to evaluate and analyze aspects related to employee performance - Assess the level of customer satisfaction to assess the overall performance of the business through surveys in two forms, offline or online - AI technology can be used to monitor, collect information, analyze to measure performance - Lotteria can survey company employees to find out what problems exist that affect their productivity There are professional and methodical training sessions for new employees - To improve communication, Lotteria managers can organize cultural events and exchanges for employees, thereby partially closing the power gap between employees and managers a friendly working environment and listening contributes to improving communication in the business Offer employee motivational policies such as additional salary increases, time off or support for them Human resources include 63 employees In which: manager, store supervisors, the rest are processing and serving staff Staff are mainly students of universities, qualified, youthful and enthusiastic, trained by Lotteria branch Create and 14 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 use 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" All employees have to undergo rigorous training courses on professional knowledge as well as skills Labor - human resources at the restaurant are still limited, typically the staff is not fixed and fluctuates due to the use of part-time labor Regarding raw materials, after 17 years of presence in the Vietnamese market, up to now 80% of Lotteria Vietnam's raw materials are purchased from the country: frozen potatoes for export (imported from the US), some spices (imported from the US) from Lotteria Korea) However, the number of raw materials: fish balls, shrimp balls, beef balls, green vegetables, chicken pieces, are mainly purchased from joint venture enterprises in Vietnam that meet GMP and HACCP standards, while 100% Vietnamese enterprises are very rare Currently, Lotteria Vietnam is investing in building raw material processing plants to avoid the gradual decline in the quality of key products, affecting the company's reputation and brand However, the fluctuations of the epidemic situation last year have not subsided, and still have to face the economic crisis from the West, causing the price of gasoline to increase, the limited food input, causing the import of raw materials to increase unstable tax, long shipping time, long freezing process, but still have to ensure stable prices for customers, causing businesses headaches and constantly drawing up many strategies to overcome In terms of machinery and equipment, in the 4.0 technology situation is the current trend in automation and data exchange in production More specifically, at Lotteria store, automation technology has been applied such as: industrial food vacuum machines, packaging machines, slicers, automatic dough mixers, automatic dishwashers to the production and processing lines The application of machinery and technology in production helps lotteria improve the quality of its products, produce more in a short time, as well as increasing competition in serving more customer needs 1.3 Method a Flexibility in the food service business method Movement: With the current economic development, people are more and more fascinated into the hustle and bustle of work, making them busier and busier So, Daily meals need to be done quickly and conveniently Stemming from this situation, Lotteria restaurant pays attention to construction services to serve the essential needs of the customer 15 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Improvement: The food served here is very rich, helping guests The restaurant has a variety of dishes to choose from: burger, chicken, chicken sets, drinks… Contrary to KFC, Lotteria offers products products with many different ingredients such as pork, beef, squid, shrimp, This shows, Lotteria always tries to improve to serve customer needs as well as building a brand for itself me b Regularly consult customers To provide information and updates as well as survey needs preferences of customers Customers can provide opinions as well as refer to all information at the website of Lotte: lotteria.vn Facebook social network: Due to the unlimited nature of zero time and time and multidimensional interactions, responses and Customers' concerns will be sent to the company at any time to answered via texting or hotline number available at fanpage c Encourage employees to communicate with customers Motto "Customer is God" Lotteria trains employees Staff always smile when meeting customers, quickly handle problems Typical customer inquiries through the customer When you come to choose your food at the order counter, the first thing the staff will say is "Hello Lotteria, what would you like to use" and after closing order the staff will say "Thank you" Through this, customers will have sympathy for the attitude of employees and from there customers will want to come at times next d Material incentives in the form of rewards for keeping customers business relationship Lotteria also regularly applies the policy of giving vouchers in physical form for customers when using services at home This item and voucher will be used the next time Posting cheap combo promotions, promotions in stores weekdays, holiday customer birthdays, etc In addition to promotions in the traditional form, Lotteria also promotions through food ordering applications => Customers have many choice as well as more comfort 1.4 The principles of quality management system at Lotteria a Customer focus 16 Downloaded by mai truong (truongthimai.2902@gmail.com)