Benihana Business Model

However, if the cost of “perfection” is so expensive that the company cannot be profitable, it is not realistic to spend too much on a zero defect mindset. Instead the company must first identify what an acceptable percentage of defects is and where the defect could have been prevented. Then the company can further quantify which cost of quality is presenting the greatest risk and put procedures and policies in place in an attempt to minimize defects. Since prevention costs many times are considered the least expensive and can have the biggest affect on non-conforming products most companies will focus its initial and largest efforts into prevention. The next initiative would be appraisal and last would be identifying

According to Total Quality Management (TQM) (2013, pg 1), “Total quality management (TQM) can help a school monitor and evaluate its effectiveness. There are various TQM models, but they all have a common focus on customer satisfaction and continuous service improvement toward excellence. For schools, the customer is the student.” When a Total Quality Management (TQM) is implemented in an institution it can set it apart from the other institutions. It formulates task teams to manage the institution compared to having a chain of command. An effective Total Quality Management (TQM) institution “Mission Statement” is the foundation of the education process.

Yasin and Alavi (1999) conducted a quantitative study to determine if Total Quality Management (TQM) can produce quality improvement

The cost factor is one of the major concerns for Benihana’s growth. Each new unit costs $300,000. In order to reduce the startup cost, Benihana must find revisit its operating model and re-evaluate what is the most important to the customers. Looking back at exhibit 4, majority of respondents valued quality and taste of the food, service and preparation of food. These are the qualities that truly separate Benihana from other restaurants. Changing Benihana’s staffing model, including training, and the use of materials and labor from Japan, will most certainly minimize new unit cost.

Quality must be built in to the initial process. We must eliminate the need for quality inspections by building quality into the initial structure.

3. The implementation of the TQM program is not being properly clarified for the other groups of management. The managers haven’t had proper training or guidance of what the expectations of the team to attain the desired results to improve the quality throughout the company.

First, it is essential to decompose the concept “Total Quality Management” to clearly understand its goal: “Total” goes for the fact that quality involves everyone and all activities in the company, “Quality” means conformance to Requirements “ Meeting Customer Requirements” and “Management” because Quality can and must be managed. 2 The TQM model is based on the hypothesis that a company’s survival is only possible if a competitive level is achieved and maintained for each of the so called «6 dimensions of quality»: • • • • • • Product & service quality On-time delivery Fair price Employees satisfaction Product & process safety Environment conservation.

Quality management practices developed in Japanese Plants in 1950’s.Due to its cheaper, higher quality products compared to the Western counterparts, total quality management (TQM) became strategy is to provide customers satisfaction at lower cost and higher quality.TQM consists of planning , organizing, directing, control and assurance.

Total Quality Management (TQM) is an improvement tool that is widely used in many companies. It consists of many aspects including Managing people as well as business processes in order to maintain customer satisfaction. With TQM, Businesses starts to do the right thing from the start and to ensure zero error. Therefore, it is important to learn the principle of TQM and how it acts in organizations with its advantages and disadvantages.

The system of quality is prevention: This is why management must take the concept of prevention very seriously because it reduces defects and it lowers cost. This absolute state that appraisal, checking and inspection is an expensive and unreliable way of getting quality. Prevention can be achieved if during production process opportunities for error are identified. Prevention can also be achieved using statistical quality control method. Crosby (1995).

TQM was met by some resistance especially from line managers and supervisors. This was because the importance and aim of TQM was not clearly communicated to the supervisors and also, they were not involved in the TQM approach.

Introduction - Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service, by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage.

Our company should make sure that manufacturers deliver products with the highest design specification, in order to be order-winner quality conformance, by delivering products with no defects (Hill and Hill, 2012). Furthermore, improvements in quality lead to a decrease in cost for the company. According to (Evans, 1997) higher quality products lead to a decrease in costs for the company through higher productivity: ‘improvements in quality leads to lower cost because of less re-work, fewer mistakes, fewer delays and snags’ (Evans 1997, P.55).

For TQM to be successful, all workers in the organization have to be clear and focus on its vision and intentionally align themselves with the TQM strategies to produce quality products and services that satisfy their client’s needs and requirements. Some of the benefits gained from successful TQM implementation include fewer customer complaints, cost reduction in the long term, elimination of waste and mistakes, and boost in employee morale by empowering them by encouraging their participation in decision making and communication.

Implementation of excellent quality comes with a cost. The company must decide if it is really worth compromising the quality for revenue. If the quality costs exceeds the expected revenue of the company then the company must abandon implementing quality control mechanism. If otherwise, the quality would contribute to the product value and hence the revenue.