Changing Tools For The Organisation- TQM, and Lean Production

This report discusses the implementation of TQM and Lean Production in two companies, Toyota and Hilton Hotel, and the challenges faced by each. It concludes that while Lean Production is beneficial for manufacturing companies, TQM may not be suitable for service industries.

Organizational development

Organisational development 1
“Changing Tools For The Organisation- TQM, and Lean Production”
Organisational development is the systematic integrated and planned approach to
improve the effectiveness of the enterprise. It is designed to help the organisations in order to
solve the problems that affect the operating efficiency at all the levels in the organisation. The
organisational development is the process of changing the system of organisation such as
culture through the utilisation of behavioural science technology, research and theory
(Waddell, Andrew, Thomas, and Christopher, Worley, 2016). This helps to enhance the
individual and organisational well-being and effectiveness. In the process of organisation
development, the structure and the production system of the organisation is change. There are
many tools are used by the companies in order to change the system and reduces the losses
such as the learning organisation, socio-technical system approach, TQM, Best practices,
business process re-engineering, the organisational development school and lean production
(Ladyshewsky, 2017). In this report, the discussion is made on the two tools such as TQM,
and Lean production. The tools are applied by the companies to reduces the wastage and
enhance efficiency.
In this report, the two companies have been taken into consideration in order to
analyse the tools such as Toyota and Hotel Hilton. In this report, Toyota Singapore has been
taken as a manufacturing company and Hotel Hilton as a Service Company. At the beginning
of the report, lean production and TQM will be discussed. After that, the discussion is made
on the production process and delivering process to deliver the services in two companies.
A lean production is a tool of management that focuses on reducing the waste and to
ensure quality. The tool can be implemented in all departments of the organisation from
design through production to distribution. The companies mainly used this tool to cut the
costs by making the business more efficient and responsive to market needs. It is essential for

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the organisation to cut the activities or things that do not add value to the production process
such as holding of stock, repairing faulty product, and the avoidable movement of people
during the manufacturing process (Nicholas, 2015). This tool is useful for the organisation to
provide the quality of the product at a low cost. The company earns a high profit as compare
to the others by deducting the waste material during the manufacturing process.
TQM (Total quantity management) is a changing tool that helps to enhance the
efficiency of delivering services to consumers. The main focus of this tool is to improve the
internal practices including goods and services in order to ensure the high-quality material of
the services. The main purpose of this tool is to give a high-quality product to the users with
the final finishing. All the people of an organisation are gathered to promote the services for
the overall production of products and services. This tool is similar to the lean production tool
as per their functions and changes (Process-improvement-japan, 2018). This tool is used in
every part of the organisation for ensuring quality. The main objective of using this tool at the
workplace is to improve the quality of an organisation output including goods and services
with the continual improvement of internal practices.
Toyota Motor Singapore is a multinational automobile manufacturing company. The
company have 364445 employees that help the organisation to attain success in the business.
It is observed that Toyota is the market leader in the sale of electronic vehicles. It is difficult
to become the market leader in the market and one of the largest companies to encourage the
mass market. The company implement the lean production and TQM tool at the workplace to
ensure the high quality while delivering the services. The company production system is
based on the seven factors of lean production. It has been evaluated that the overproduction is
highly expensive in terms of operating the business and earning the profit. It is observed that
“just in time” manufacturing process system followed by the company to reduce the
overproduction (Toyota-global, 2018). In order to reduce the waiting time for the next

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operation, the company adopt the system in which all the departments are work together as
per the requirement. The wastage of time to deliver the material from one place to other is
also reduces by the company to reduce the time wastage and invest in the other way. The
organisation reduces the break time of employees in order to produce the product on a tie
without wasting time. It reduces the unnecessary inventory and motion of people to reduce
the cost and utilisation the material. Toyota Singapore totally relies on the seven factors to
ensure quality and reduces the defects.
The company gain a competitive advantage as providing the quality of services at a
lower cost. It has been founded that the organisation still facing the issues as the lean
production is limited in implementation at all levels. It is difficult to reduce the transportation
time and cost with the lean production tool. The other disadvantage of this tool is that the
company cut break time with the motive to reduce the motion due to which the employees
cannot perform well in their services. It is essential to give the time to employees so that their
mind is stable to do the work. It is a fact that the frustrated employee does not perform well in
their responsibilities as compare to the other. It can be said that the lean production tool is
appropriate for the company as it helps to reduce the wastage and became the leader in the
market.
Toyota is considered as the king of Total quantity management. It got various rewards
for quality management with the help of its employees. It has been founded that the creative
idea suggestion system supports the employees to perform their responsibility more
appropriately. It encourages the employees in making the contribution to the development of
the company. The company also introduced the Statistical Quality Control in the year 1949
to control the quantity and quality of product and services (Harris, 2007). It also helps to put
its efforts to give back with the community-based projects and environmental initiatives.
These steps taken by the company to enhance quality is beneficial for society. The issue

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which is faced by the company due to total quality management tool is affecting its brand
image. The brand image of the organisation is affected as the creative idea and suggestion of
employees is the high risk.
Hilton hotel and Resorts is a global brand that offers the services of hotels and resorts.
There are more than 570 Hilton hotels and Resorts in more than 85 countries. Hilton hotel is
becoming the leader as it beat its competitors. It has been founded that the hotel divides the
departments as per the capability and capacity of an employee to perform the work.
Allocation of work in a different department helps to operate smoothly. The works divided
into the various departments such as front office operation, accommodation operations, food
and beverage services, and human resources. The wastage of time is reduced with this step as
every department perform their responsibilities. It is also observed that the hotel improve its
standing in terms of services by controlling the inventories and reducing the defects
(Davidson, 2017).
But it is observed that the hotel face the challenges while implementing the lean
production tool at the workplace. The allocation of work in the different departments causes
overproduction. Overproduction will become the main cause for the company to face the
insolvency. It is the high cost consuming process as the hotel invests the large amount to
maintain the performance. It can be said that lean production is appropriate for the company
at a certain level (Shmula. 2018).
The total quality management tool is implemented effectively at the hotel as its
consumer trust is increases. The work-life-balance helps the employees to improve their
performances and also encourage them to give their best in responsibilities. The company
provides the training to employees with the motive to enhance their efficiency and capability.
Training helps the employees in using the bills machines, baking machines, serves orders and

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attending the guest. The training helps to reduce the errors in the workplace while making the
bills, attending the guest and also using the baking machines. It is observed that there is a
huge risk in the hotel to implement the employees on the machines without any training. The
total quantity management tool includes the step of improving the performance, training and
development programs, and work-life balance system (Kasongo, 2015).
The challenge which is faced by the company due to total quantity management is the
high risk. It is the cost consuming process as the training provides by the hotel to its
employees. It has been evaluated that the organisation has a large number of employees as it
operates in 85 places with different branches as well. It also adopts the system of allocating
the work in the different departments due to which the training program is also organised for
the employees. The training program for the different department consumes the high cost that
is not appropriate for the hotel to earn the profit. The other challenge of the total quality
management is that it is a time-consuming process. It has been seen that the organisation
promote the work-life balance with the motive of encouraging the employee but due to this
system, the hotel face the challenges. Work life balance is the process in which the
organisation helps the employees to balance their personal life with the office work. The total
quality management is not an appropriate tool for the organisation in order to enhance the
performances (Joel E. Ross. 2017).
From the above analysis, it is concluded that changing tools play an important
function in the process of organisation development. The analysis is based on the two
companies such as manufacturing company and Service Company. It is observed that the
companies implement the lean production and total quality management tool at the
workplace. Lean production tool is used to reduce the wastage from the production process
and total quality management tool is used to improve the efficiency of an organisation to
perform the responsibilities. As per the analysis, it is observed that lean production is

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beneficial for the manufacturing company as it helps to attain success. But it is not beneficial
for the service company as it has to face the challenges while implementing the tool that is
why; it is beneficial at a certain level. Total quality management tool helps to perform their
services effectively and efficiently. This tool is beneficial for Toyota as it helps to control the
material to improve the performance. But this tool is not appropriate for the service industry
as the Hilton Hotel has to faces the challenges. It is recommended that the Hilton hotel has to
adopt a different tool instead of TQM as it does not appropriate for the company.
.

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References
‘Davidson, Deborah. 2017. "The organisational development cycle: putting the approaches
into a process." In Organisational Development in Healthcare, pp. 77-87. CRC Press.
Harris, Laquita. 2007. Lean Manufacturing Made Toyota the Success Story it is Today.
http://www.rcbi.org/index.php/viewarticle/130-capacity-magazine/spring-2007/features/336-
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Joel E. Ross. 2017. Total Quality Management: Text, Cases, and Readings, Third Edition.
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Kasongo, Richard. 2015. Strategic Lean Thinking and Value Management for Gravel Roads
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Ladyshewsky, Richard K. 2017. "Peer coaching as a strategy to increase learning and
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