Performance of Management: Almarai's TQM Implementation Analysis

This report examines the Total Quality Management (TQM) program implemented by Almarai, a Saudi-based food and beverage corporation, and its effects on organizational performance. The report explores the reasons behind Almarai's adoption of TQM, focusing on its commitment to food safety and quality, which has driven its growth and competitive advantage. It details ways in which TQM enhances performance, including meeting customer requirements, improving through strategic plans, and incorporating quantified objectives. The analysis covers the importance of employee involvement, improvement plans, and strategic incorporation of TQM principles. Furthermore, the report highlights Almarai's commitment to investment and restructuring to maintain its quality standards and optimize performance. The conclusion underscores the effectiveness of TQM in boosting Almarai's performance by increasing employee and management participation and improving customer satisfaction. The study references various academic sources to support its findings, providing a comprehensive view of Almarai's TQM practices.

unning ead F M C F M M TR H : PER OR AN E O ANAGE EN
0
F M C F M M TPER OR AN E O ANAGE EN

F M C F M M TPER OR AN E O ANAGE EN
1
Table of Contents
Introduction......................................................................................................................................2
Reasons............................................................................................................................................2
Ways to enhance organization performance....................................................................................3
Conclusion.......................................................................................................................................5
Bibliography....................................................................................................................................6

F M C F M M TPER OR AN E O ANAGE EN
2
Introduction
Almarai organization is known as the Saudi-based Corporation. It is registered in the
Tadawul stock exchange. This organization is specialized in food and beverage distribution and
manufacturing. The head office of the association is listed within the Riyadh, Saudi Arabia. This
business was established by the Irish Agri Pioneers Alastair and Paddy Mcguckian. It is also
recognized as the biggest vertically integrated dairy organization. Almarai is regularly increasing
its investment within Saudi Arabia to increase the production of dairy. This is economically and
financially supporting the nation as it increased the number of jobs in the last five years. In 2009,
it has partnered with PepsiCo and liable for buying the number of big organizations (Almarai,
Organizaion Profile, 2020). The following discussion will cover the total quality management
program and ways in which it improves the organization performance.
Reasons
Total quality management (TQM) is known as the regular efforts of the leadership and
workers for business which ensure the longtime customer's satisfaction and loyalty (Hashmi,
2020). In the industrial sector of Japan, total quality management was originated. This has
developed over the years and can be used for all types of organizations. It is structured efforts of
employees and management of Almarai which help to regularly improve the products and
services quality by use of feedback. The reason behind the selection of TQM is the commitment
of Almarai to the safety and superiority of food. It remains effective as regularly apply high
quality and regulatory values to deliver safe products and fulfill the requirement of the
customers. Organization after the launch within the two decades gain the annual incomes of
SAR1 billion. It has doubled the total within the single decade. The organization trajectory is
regularly rising. In 2017, sales of the organization soared to more than 15 billion SAR. Growth
of the organization is drive through the persistent pursuit of quality which is maintained through
distinct infrastructure mix which includes world-class farms, systems of distribution, and
operations of production.
It follows the slogan quality first and quality always helps to gain a competitive
advantage. The organization remains faithful to founding principles through manufacturing

F M C F M M TPER OR AN E O ANAGE EN
3
quality which individuals can trust. The division of quality and manufactured product
development has fixed to the principle within an effective way to manage the organization. The
division of the organization is committed to ensuring that complexity and increasing size of
organization never compromise with quality and talent of the product for innovation. This
organization has the purpose to ensure that it will keep it up with the quality assurance through
shaping the world-class processes of development for product. It owns the huge number of
supply chain facts from the production of feed and import to manufacture, packing, and
distribution that enable all phases of product development subjected to rigorous testing as
ensuring the safety and quality of the product as laboratories of the Almarai conduct almost
10000 tests regarding quality on the products. It regularly implements a high level of food safety
standards within all sectors through the application of the Food Safety Management System
(Almarai, 2020). The success of the organization is driven through the combination of factors.
This organization has a proud heritage with positive future and keeps the assurance to providing
quality products through total quality management.
Ways to enhance organization performance
TQM can be developed separately for the organization as set the standards which must be
followed (Oakland, 2014). The following are the ways in which organizational performance can
be improved by applying the principles of total quality management.
 Meeting the requirements of customers through the involvement and empowerment of
employees
The organization through implementing the involvement principle of total quality management
will become capable to create the appropriate thinking that employees are internal customers.
The involvement of employees within the development of products and services at a high level
will bring more chances for Almarai to create and maintain quality products and services. This
will lead to building a culture in which employees will feel that they have a high involvement
within the organization and lead to improving the organization's performance.
 Improvement plans

F M C F M M TPER OR AN E O ANAGE EN
4
The organization through implementing the strategic and systematic principle of the total quality
management will become capable to create the plans for improvement. The organization through
the detailed execution of elements of work will become more capable to avoid the mistakes and
prevents defects to manage the total quality. This will lead to providing regular results of
improving within all aspects of the organization by improving the capabilities of people,
processes, techniques, and machines (Akgün, et al., 2014).
 Incorporation in strategic plans
Incorporation in the strategic plans of Almarai can be created by following the centered principle
process. This will remain effective for an organization to integrate system which can be modeled.
The quality system of the organization will become accurate through the incorporation in the
strategic plan to understand and handle products and services quality.
 Requirements of customers
The success of the Almarai is depending on the meeting level of customers’ requirements. The
organization through total quality management principles such as communication will become
more capable to formulate and come in line with mission, vision, and objectives. The
communication strategy will include the action to provide the stakeholders appropriate
knowledge, levels in the organization to communicate through the channels to measure the
timeliness and effectiveness (Talib, Rahman, & Qureshi, 2012).
 Quantified objectives and benchmarking
Almarai through the use of outside consultation and training should assign work to oversee the
effort. Resources management regarding change effort will remain important to choose the
consultant on the basis of training and knowledge to meet the quantified benchmarking and
objectives through the collaborative relationship. The total quality management principle such as
a focus on customers will remain critically important to work as per the quantified objectives and
benchmarking by making the efforts to improve the quality and services.
 Commitment through investment

F M C F M M TPER OR AN E O ANAGE EN
5
Almarai has entered within the period of reinvestment and restructuring that looks to from the
decentralized to a centralized structure. The total quality management principle fact-based
decision making will be useful for the organization to inaugurate itself as the low-cost producer
which will help to provide the customers a high-quality product at reasonable price (Wang,
Chen, & Chen, 2012). It should replace decentralizing processing plants with its central
processing plant. The replacement of the small decentralized farm with large farms will create
more options for innovation with organic and expansion growth. The organization through
regular investment within the technologically advanced facilities of production should facilitate
while recruiting highly skilled people to optimize performance.
Conclusion
In the limelight of the discussion, it can be determined that the use of the TQM program
by Almarai increases the performance of an organization. Further discussion covers that Almarai
controls the process from production to packaging to ensure that customers get the good quality
products with the services by regular improvement. It is the world's largest organization of dairy
and vertically integrated producers. This organization stringent to meet the standard of quality at
each stage of the product as put the total quality management program across all the operations.
Almarai uses the total quality management to become more capable to increase the participation
of employees and management. This is a dominant technique for Almarai to unleashing the
creativeness and prospective of employees by minimizing the costs and improves the services for
customers and the community. The teams within the organization are experienced at a high level
to manage quality and implemented to meet the minimum required standards.

F M C F M M TPER OR AN E O ANAGE EN
6
Bibliography
Akgün, A. E., Ince, H., Imamoglu, S. Z., Keskin, H., & Kocoglu, İ. (2014). The mediator role of
learning capability and business innovativeness between total quality management and
financial performance. International Journal of Production Research, 52(3), 888-901.
Almarai. (2020, 03 15). Organization Profile. Retrieved from Almarai:
https://www.almarai.com/en/corporate/almarai/profile/
Almarai. (2020, 03 15). Quality and Food Safety. Retrieved from Almarai:
https://www.almarai.com/en/corporate/almarai/quality-and-food-safety/
Hashmi, K. (2020, 03 15). INTRODUCTION AND IMPLEMENTATION OF TOTAL QUALITY
MANAGEMENT (TQM). Retrieved from six sigma:
https://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-
and-implementation-total-quality-management-tqm/
Oakland, J. S. (2014). Total quality management and operational excellence: text with cases.
Routledge.
Talib, F., Rahman, Z., & Qureshi, M. N. (2012). Total quality management in the service sector:
a literature review. Talib, F., Rahman, Z. and Qureshi, MN (2012), "Total quality
management in the service sector: a literature review", International Journal of Business
Innovation and Research, 6(3), 259-301.
Wang, C. H., Chen, K. Y., & Chen, S. C. (2012). Total quality management, market orientation
and hotel performance: The moderating effects of external environmental
factors. International journal of hospitality management, 31(1), 119-129.