Total quality management : a case study

Pao Yue-kong Library Electronic Theses Database

Total quality management : a case study

 

Author: Wong, Chi-kwong Lawrence
Title: Total quality management : a case study
Degree: M.Sc.
Year: 2000
Subject: Nestl{226}e -- Management
Total quality management -- China -- Hong Kong -- Case studies
Hong Kong Polytechnic University -- Dissertations
Department: Multi-disciplinary Studies
Dept. of Accountancy
Pages: x, 93 leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1535369
URI: http://theses.lib.polyu.edu.hk/handle/200/926
Abstract: Since 1998, Asia's economic crisis had punctured Hong Kong's economy bubble and pricked the demand for its financial and trade services. It subsequently choked off the flow of Asian tourists and shoppers. The phenomena caused this "Pearl of Orient" to face the highest unemployment rate over the past decades and brought about negative economic growth. With the determination of sustaining Hong Kong as Asia's No. 2 financial center, after Tokyo, the Hong Kong government played an important role by fostering and regaining the competitive environment through coordinating various macro measures, such as: - Resume property sales on 1st April 1999. - Creation of a mandatory pension fund. - Improve education to produce a workforce that can use technology creativity through offering the vocational training in areas such as supply-chain management and computer skills. However, what Hong Kong needs is not a government plan, what it needs is to get Back to Basics and regain its entrepreneurial spirit and aggressively pursue new ways of adding value in businesses which support the Hong Kong economy. The owners or CEO of these businesses (both local and multinational firms) should think about the ongoing innovation and development, benefiting themselves and ensuring they survive in Hong Kong's competitive crisis. Nestle, as the world's leading food company in terms of (1998 year-end's figures) its number of employees (231,881 personnel in the world); number of factories (522 factories in 81 countries); and sales turnover (CHF71 .7 billions), has undertaken several Total Quality Management (TQM) programs for the Hong Kong office. These TQM programs started at different time periods from 1997 to 1998 and they were completed in 1999. The TQM programs include four areas with the aim to enhance its competitiveness and eventually improve their profitability in such a way as to run the business in the most cost-effective and cost-efficient way. Firstly, Stock Keeping Units (SKU) Rationalization, which is intended to minimize the various SKUs under different brands of different product groups in order to reduce the cost of the low profit margin products. Secondly, the Supply Chain Management (SCM), Nestle continues to promote the SCM as a common development framework to bring together all parties involved in the total flow of goods. Thirdly, the Business Excellence and Common Applications (BECA), which is monitored by the BECA Steering Committee. Such a concept has been developed to achieve, through the common approach, more effective, sustainable and continuous improvements of the business processes and sharing and leveraging the knowledge. The BECA also is responsible in creating a common culture and language that is beneficial to the very diversified markets across Zone AOA (Asia, Oceania, and Africa). Lastly, standardize the Nestl?| Budgeting Systems of all the operating companies or factories in PRC and Hong Kong by using the same MS Access application. These TQM programs will be conducted under the determined approach of "Back to Basics" with the positive attitude of confident, not complacent, and total commitment to continuous improvement. Nestle Hong Kong Ltd. will follow the three basic principles of continuous improvement: - Focusing on the customers. - Understanding the business processes. - Seeing that all employees are committed to quality with the aim of identifying opportunities for improvements.

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