National College of Business

Administration and Ecnomics

Total Quaility
Management

CASE STUDY

TQM in Service Orgnization

PRESENTED TO MR. AMJAD GHAFOOR

PRESENTED BY

Muhammad Abuzar 2081183

MBA (Evening)
 TQM IN A SERVICE ORGANIZATION

AGENDA OF THE CASE THEME

The agenda of the case study is to evaluate, How TQM works for an organization that
was lacking behind in meeting customer satisfaction in order to fulfill their requirements.
The case revolves around the scenario that what was the situation without proper quality
management implementation and what steps can be taken in order to meet the
requirements of the customer.

CASE STUDY OVERVIEW

An organization named as Macdonald Levine, Jenkins & Company.

Working in area of traditional CPA accounting Services.
Differentiated by early entrance in computer field for accounting processes.
Start loosing distinguishes with the widespread and availability of computers.
Lost the area of providing CPA services in trying to be distinguished.
Start providing company defined services, not the customer defined.
Before the Manager attends TQM seminar, the company was measuring its
performance on old standards.
Organization was delivering services on the basis of set goals, therefore the
customer’s needs weren’t fulfill by applying old standards.

TQM IMPLEMENTATION

Training of owners and staff for making them aware to TQM.

Analysis & reviews of staff problems and their suggestions to identify the
deviation
Network office computers
Strategic processes for accounting
Improvement in billing time and process
Image of the firm need to be improve
Overall TQM process
QUALITY INDICATORS & %

Evidence of Success

Client’s Satisfaction
Payable
93 % satisfaction survey
Reduction of billing adjustments
Improves Accounts Receivables by 30%
Increase client’s retention by 50%

Employee’s Satisfaction

Decrease Turnover Rate

Lower Absenteeism
Satisfactory Survey

Owner’s growth, Profit, Recognition

Increase number of clients and revenue per client by 200 % within 5 years
Increase Per-Shareholder profits by 200 %
Win Malcolm Baldrige Award
ANSWERS FOR DISCUSSION & SUGGESTIONS

QUESTION NO. 1

DISCUSSION & RECOMMENDATION

FIRM’S ACTION IN IMPLEMENTING TQM

Trainings of owners and staff

Possible solutions and suggestion from staff
Overall TQM process
Handling of top five operations at initial stage

RECOMMENDATIONS

Implementation emphasis should be more on production level

Continuous efficiency and improvement in products and services
Flexibility in processes so that the changes can be made easily according to
changing needs of the customers
SLA ( Service level agreement ) should be made efficient
Improvement of AR (Accounts Receivable) by 50 % instead of 30 % as the
Opportunity cost lies on that.
TAT (Turn around Time) should be made efficient in order to complete tasks as
quick as can be.
 QUESTION NO. 2
DISCUSSION & RECOMMENDATION

EVIDENCES OF SUCCESS

Client’s Satisfaction
Employee’s Satisfaction
Owner’s Satisfaction

RECOMMENDATIONS

Accounts Receivable will disturb the client’s satisfaction as most of the clients always
try to delay in payments therefore they need relaxation but despite of this fact
Accounts Receivable should increase by 50 % to save the opportunity cost

Hiring of capable staff is very important as some of the employees want to leave the
organization therefore there is a chance of proper hiring according to the merit of
TQM

Numbers of increase in client is Satisfactory as far as projection is concerned

Organization must think to retain the clients as well , coz customer retention is very
important from TQM point of view

Evidence of success must be check on the rate of customer retention ship

 QUESTION NO. 3

DISCUSSION & RECOMMENDATION

SURVEY ANALYSIS FOR CLIENT NEEDS

FULFILL BY EVIDENCE OF SUCCESS

RECOMMENDATIONS

As discusses above the evidence of success will meet the customer’s

satisfaction level.
Information depends on the segment of market to check how well the
customers like to reply.
Survey should include the suggestion from customers for continuous
changes
It should not base totally on costs as other factors are also important
Customer Relationship management should also include in survey to
attract the more customers
Vision statement should be made to satisfy the customers as well as the
internal staff of the organization so that the employees will work on longer
run for the business.