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AP Muhlemann-The Implementation of Total Quality Management in Tourism-Some Guidelines
AP Muhlemann-The Implementation of Total Quality Management in Tourism-Some Guidelines
The importance of total quality management (TQM) has been recognized in Western Europe for
a number of years, since its earlier origins in Japan. Indeed it has had an impact in a significant
number of manufacturing organizations, with some notable successes, as well as some less
publicized failures. This paper examines some of the ‘models’ of the TQM process and the
literature on reported applications in manufacturing to attempt to develop guidelines for
successful application in any type of organization. The key differences between manufacturing
and services provide the basis for establishing how well the various TQM models cope with these
idiosyncracies. Finally an assessment of the effectiveness of the reported TQM applications in
tourism management is used to develop a composite picture of the steps which must be taken if
TQM is to be successful in this environment. These steps will assist organizations in
tourism-related areas in adopting TQM, facilitating the implementation process and reducing
the likelihood of failure.
This paper examines the potential of total quality It was born out of a much earlier quest for quality
management (TQM) to improve the competitiveness which can be traced back to the pioneering work of
of the tourism industry. The various approaches to Juran, Deming and others with Japanese industry in
the TOM process are presented, and the experiences the 1950s. They had been largely unsuccessful in
in manufacturing reviewed briefly to identify the introducing the well-established statistical and other
&sons for the service industries. The key differ- techniques to US manufacturers in the era of the
cnccs between manufacturing and services are pre- postwar boom in production. The Japanese were
sented in order to determine the influence of these looking to ‘rebuild’ their industry, and to change
on the successful adoption of TQM. This is used as their reputation for ‘shoddy’ goods. It was natural
the basis for developing three sets of guidelines for that they would look for support from wherever
the successful implementation of TQM in the tour- possible.
ism sector. The success of the Japanese in improving their
quality standards became a major concern for the
remaining manufacturers in the rest of the world.
Total quality management: an overview Attempts were made to identify, catalogue and copy
Total quality management (TQM) emerged as a what were seen as the key features of this success.
philosophy in the UK in the late 1970s and early Generally. the focus was initially on the manufactur-
1980s. However. the term and this attitude towards ing function within enterprises. Statistical techniques
quality is sometimes accredited to Feigenbaum’ for (largely statistical process control - SPC) were used
his work in what he called total quality control to establish what processes were capable of achiev-
(TQC). This required the involvement of all func- ing and to monitor and detect changes. These ideas
tions in the quality process, not just manufacturing.’ were not new and had been in the public domain
since the 1930s (for example. Shewhart’). The base
‘An earlier version of thih paper was prcsentcd at the VIIth
broadened with the attempt to involve the workforce
Gcnernl Conference of the European Association of Dcvclop- more directly in the quality achievement process. In
ment Kcsearch and Training Institutes. Berlin. Scptcmher 1YY3. Japan this had been implemented successfully in part
418
Table I Service characteristics aspects which have been addressed or used as
examples.‘.” The majority of the work has related
I. Services produce intangible output
to manufacturing situations. If only the tangible
1. Services produce wriahlc. non-standard output
3. A scrvicc is pcrishahle: ie it cannot he carried in inventory. deliverables of a service organization are consi-
hut is consumed in production dered, the various aspects of TQM can be accepted
4. There is high customer contact throughout the service without too much concern.
prows5
In the next section, some of the more significant
5. ‘l‘hc customer participates in the process 01 providing II
impacts that the differences have on the imple-
service
6. Skill5 are wld directly to the customer mentation of TQM are examined.
7. Scrviceh cannot be mass-produced
8. IIigh personal judgement is employed hy individuak
pcrl’orming the service Services: the quality problems
0. Service lirm\ xc labor-intensive
IO. Dcccntralitcd f’acilitk arc located new the customers Customer focus is central to all the models; for
II. Measures 01 ellectivcnesa xc suhjectlvc example Oakland’ states: ‘The ability to meet the
12. Quality control i5 primarily limited to proccsx control customer requirements is vital’ (p 3). This is the
13. Pricing option\ arc more elaborate
underlying ethos of TQM and it is here that the
problems start for services. First of all. how are these
.So/rrw: Murdick. R <i. Rcndcr. H and Ruascll. R S Srnkt
Opcru/iorr.t Mrrna,qwrcvr/ Allyn and Bacon. Boston ( IWO)
p 26. requirements identified and incorporated into ;I spe-
cification? The ‘product’ is intangible (characteristic
1). For example: airlines provide a means of getting
at the other. For example, a car would be at the from A to B; tour operators package together an
tangible (goods) end of this continuum. with a small experience. What is an experience? How may it be
element of the intangible - the prestige of a Rolls defined‘? What are the undcrlyin~ attributes which
Royce. the trendy element of a Peugeot 205, the may be incorporated in the design specification?
raunchy image of ;I Ferrari. At the other end of the Much of the work in this arca derives from market-
spectrum, the customer does not buy a bit of hotel ing. Whir and C’hnndrasckar” found that potential
room when purchasing ;I night’s stay - only the use customers are not themselves aware of how they
of the ~lccommodation: nothing is bought which they make their decision to purchase when deciding bc-
can take away with them (except perhaps the unused twcen restaurants. Embachel- and Huttle’3 point out:
shampoo or disposable shower cap!) This leads on
The image of a location ha l>ccn shown to h;l\c ;I
naturally to the idea of providing a ‘bundle of goods
significant impact upon itx selection a5 ;I vacation
and services”” Is or ‘service package”” which tvpi-
destination. Measuring and mxl;lging this imq
tally includes ( I ) supporting facility, (9) facilitating
therefore hc‘con~c~ a maior priority for mxrkcting
goods. (3) explicit and (4) implicit services.
and communic~ltions staff in hotcl5. i-c\ort\. ndtional
Yet other5 would differentiate services from
tourist offices and elseuhtw. (p 3)
manufacturing using the degree of customer
contact “+ “J’ The purchaser of a car does not have They then used repertory grid analysis to idcntifv the
to bc present when a car is made. Not only that, but constructs along which 25 people judged hoiid:ly
the production process is buffered from the custom- destinations. The constructs included built up. man-
er by marketing and dealers/agents. By contrast. the made environment/beautiful countrvside, boring
purchaser of a hotel room for the night has to be destination!interestiIl~ destination, art;ficial ‘tourist:
physically present or the whole point of the opera- culture/genuine culture etc.
tion is lost. Thus, when an operation involves either GartnerZJ is also concerned with image, but he
;I high level of customer contact or has a product used multidimension~11 scaling to try and identify
which is intangible in nature, it may be described as underlying factors. It appeared that in his study
;I service operation. As a consequence of these two cultural based/natural resource based and in group
attributes. services can clearly be seen to have social/out group social were the two undcrlving
characteristics which differ from those of an opera- dimensions along which tourists viewed destinati&ns~
tion located at the tangible and low-contact end of A few studies”~” have sought to confirm the
the scale. The most comprehensive list of character- service-quality dimensions identified by Paraura-
istics of which the authors are aware is presented by man el rd.‘” The problem with all of these studies,
Murdick ct (II”’ and reproduced here in Trrhlc 1. however, is that the information gained is vague.
The presence of these characteristics has implica- making preparation of detailed design specifications
tions for management. On the whole this fact seems difficult.
to have been largely overlooked. or at least not Additionally services produce variable, non-
explicitly addressed by the exponents of TQM. standard output (characteristic 2). The main reason
Relatively little work relating to TQM in services for variable, non-standard output in services is peo-
specifically has been reported and when TQM has ple. Each customer who enters the door of a travel
been discussed in a service context, it is the tangible agency is different. Even the same person entering
419
the same travel agency on different occasions will Additionally Horovitz3’ points out that identifying
not have the same requirements every time. Not ‘defective service’ is difficult because studies indicate
only that, but one person visiting three travel agents that only 4% of dissatisfied customers will actually
on the same day may well have a different attitude in complain, and while a dissatisfied customer will tell
each place - in between the visits they may have had 11 potential customers of the experience, a satisfied
a harrowing experience such that their patience has customer talks to only four. The underlying prob-
worn thin, or the accompanying child has had lems, however, are subjectivity of assessment and
enough and decides to ‘play’ with the brochures on heterogeneity of customers, making measurement of
display. effectiveness and quality extremely difficult.
In addition to the vagaries of the client, the TQM demands study and development of proces-
contact-employee is also an individual who will have ses and systems in order to ensure that customer
good days and bad days. Every interaction between requirements are met but, as already mentioned, as
employee and customer will be different. the customers are not homogeneous, a high level of
These characteristics clearly make not only pro- variability can result. In addition the design of the
duct design and specification difficult, but also make process has to allow for non-employees in the sys-
process design far more complex. tem, with not only differing requirements, but also
As a consequence of characteristics 1 and 2, unpredictability of behaviour: the passenger who
measurement of performance is subjective. If there smokes on a non-smoking flight, the diner who
is no clear design specification there is no bench- drinks too much and becomes abusive to other
mark against which performance can be measured. customers. the child who is travel sick on the coach.
It is easy to measure such things as miles per gallon These factors are not under the direct control of the
and maximum speed of a car, but not so easy to service provider, but need to. be considered when
measure a ‘romantic atmosphere’. How does a man- designing the process.
ager ‘check’ that the customer requirements have Culture change and commitment of employees are
been met? Parasuraman et al” developed the two other facets of TQM. Training is central to
SERVQUAL questionnaire to measure quality ensure success in both these dimensions. Two diffi-
based on the presumption that service quality occurs culties arise in services. First. the customer frequent-
when customers perceive received performance to ly participates in the process of providing a service
equate with prior ex ectations. This has provoked (characteristic 5). whether it is helping to create the
..
much discussion.‘“.“-” P. Crompton and Mackay’” right atmosphere or serving themselves at the break-
write: fast buffet. Thus ‘training’ needs to extend to the
customer. Second, while much of the training in a
Assessing perceived service quality is not equivalent manufacturing setting is largely restricted to the use
to assessing satisfaction. Satisfaction is a psycholo- of the TQM ‘tools’ (eg use of process control charts
gical outcome emerging from an experience, where- etc) and technical skills, in services, when skill is sold
as service quality is concerned with the attributes of directly to a customer (characteristic 6), the posses-
the service itself. (p 368) sion of that skill is not enough. For example. on
tours to Egypt the attendant historian requires inter-
However, attempts to measure service quality usual- personal skills in addition to academic knowledge
ly involve the use of questionnaires.2-,2y In some about the Pharaohs. Similarly, high personal judge-
cases the questions have been compiled as a result of ment is frequently required by individuals perform-
focus group interviews2’.” or from a literature ing the service (characteristic 8). This particularly
search;-’ others do not describe how the questions applies to travel agents. In many cases customers are
were selected. Various techniques have been used to not necessarily aware of exactly what they do re-
analyse the results of the questionnaires includin quire. The agent needs to analyse the needs of the
factor analysis2”.zx p rincipal components analysis,-- 35 client and advise accordingly. Too much information
multiple regression-2.‘6.3’.32,34 and multidimensional will confuse the potential holiday-maker. Skill is
scaling.2” Some researchers22,29,3h used constant sum needed to draw out the relevant information from
scales rather than Likert-type scales in an attempt to the customer. Another example is the ski instructor
overcome some of the problems associated with the who has to judge how hard to push his/her group -
latter (see Crompton and Mackay”’ for further dis- does this group want to win all the races at the end of
cussion). Other analytical techniques used include the week or break the record for the highest number
repertory grid analysis2” and cdnjoint analysis.‘7 of schnapps stops in a week? Training in interper-
However quality is measured and feedback sonal skills and in the use of judgement is much
obtained problems still remain. Dhir and more difficult. This is often aggravated by high
Chandrasekar22 show that relative importance of labour turnover. The tourism industry in particular
attributes changes between time of selection and is susceptible to large fluctuations in demand, in part
time of consumption. Factors which draw new cus- due to seasonality, which leads to the hiring of
tomers will differ from those of repeat purchasers.” non-permanent staff. This high labour turnover also
420
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operational issues. Techniques such as value cn- l The process should be .s~rrr~durtiizecl wherever
gineering are used to improve the design of scat possible to ensure c’on.si.stfwcyy of delivery but not
belts. for example.‘” But the most irnp~~rt~~nt facet is to the extent of losing competitive advantage. or
the tr~jnin~ of the staff: in conflict with the (~r~~llli~~~ti~~il’s strategy.
ancf
~~~~~~xY.s~~.s
and each stuciicci to clevelop the hcst l‘hc CXCLISC‘
stto~~id not ttc accq3teci that intangible
approach: this should be coniplctcly docunientcd aspcets cannot t3c quantified ~ /imr.s-gro7rp qiws-
and rluantificd where 13osbihlc. ~iru7~7uirc~.s can t3c LIXCC~to establish cxpcctations
The key skills rrrrtl (‘f)/lri)(‘tr)7(‘i’.s rcquirCd for each and set standards in thcsc areas.
process should he clearly identified. C’lear stm~7clrlrfht riocci t(> he set and ct,mmuitifntc’di
In designing clclivcry systems and ~x~i~~illi~~~ pro- to 130th customer and pi-ovidcr.
cesses, the key problem arcas should bC icicntified Rt~lic.l7r,itrrl\irrg should 13~ uscrl to compare pcr-
and mrlri,?gfvrc:\ plans tlcIdo/?“d. formancc with the competition.
Delivery systt‘nis should he r.obrr.st and rrr7&- Staff should hc responsihlc for @tihrrcli on xcr-
irtilizrrfiotr of’ rcsourcc’s accepted as ii consquencc vice pcrforni;rncc: clu;illti,fy factors - use of qua-
of fast rcsponsc. tionnnircs. conimcnt cards.
422
The implemenlulion of tolul quulity munugemml in rourism: some guidelines: C A Win und A P Muhlemunn
Feedback should be seen as an opportunity not a ‘“Murdick R G, Render. B and Russell. R S Serr,ice Ojperutions
Munugemrnt Allyn and Bacon. Boston (1990)
threat.
17Sasser. E W. Olsen. R P and Wyckoff, D D Munugetnem of
All negative feedback should be followed up and Service Operutions Allyn and Bacon. Boston (197X)
appropriate action taken. “Shostack, G L ‘Breaking free from product marketing’ J o/
Teum work can be used to evaluate and support Murketing 1987 (April) 13s 139
resolution of problems identified through feed- ‘“Fitzsimmons, J A and Sullivan, R S Service C~perutions Munup-
menf McGraw-Hill. New York (lY82)
back. “‘Chase, R B and Aquilano. N J Production und Operu/iott,s
All difficulties which have arisen should be re- Munugement 4th edn, Irwin, Homcwood, IL (IYXS)
corded and unulysed and appropriate corrective “Clark. G ‘Managing the intangibles of service quality’ Tmul
action established. If necessary procedures musf Q&i/y Munugetnen~ Muguzine lYX9 I (2) HO-92
V
be modified/changed.
Systems should be in place (questionnaires/ Shaw. M and Croffoot. (eds) The Pruc/ice
follow-up interviews) to monitor customer ex- IYXh)
pectafions: changes in these may require mod- “Embacher. grid analysis
ification to delivery systems, processes and so on. image as a summer vacation
IYXY (3) .%7
“JGartner. state
Summary and conclusions tourism products using multidimensional
IYXY XXVIII (2)
scaling techniques’
This paper has reviewed the various approaches to “Fick, G R and Ritchie,
IYYI XXX (2)
the TQM process, with specific reference to their
2-Y
impact on the key differences between manufactur- ““LeBlanc,
ing and services. This has facilitated the identifica- of
tion of three sets of factors which should contribute 19Y2 XXX (4)
significantly to the successful introduction of TQM “Saleh, F and Ryan, C ‘Analysing service quality in the hospita-
ity industry using the SERVQUAL model’ Service Industries J
to the various sectors of the tourism industry. There 1991 II (3) 324343
is a need for further in-depth studies and “Parasuraman. A, Zeithaml, V A and Berry, L L ‘SERVQUAL:
documented implementations of TQM in tourism in a multiple-item scale for measuring consumer perceptions of
order that the industry can learn through this pro- service quality’ J of Reluiling IYXX 64 (I) 12-40
“‘Crompton, J L and MacKay, K L ‘Users’ perceptions of the
cess. This should focus on the generic issues rather
relative importance of service quality dimensions in sclccted
than anecdotal evidence. public recreation programs’ Leisure Sciences 1989 11 (4) 367-37.5
“‘Moores, B ‘Management of service quality’ in Jones. P (cd)
Munugemem in Service Induslrirs J Pitman, London (1989)
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