Total Quality Management(3)
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Transcript of Total Quality Management(3)
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Total QualityManagement
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Total
T = Total i.e. company-wide, suppliers,customers
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DEFINITION OF QUALITY
The concept and vocabulary of quality are elusive. Differentpeople interpret quality differently. Few can define qualityin measurable terms that can be proved operationalized.When asked what differentiates their product or service;
Thebankerwill answerserviceThe healthcareworker will answer qualityhealth care
The hotel employee will answer customersatisfaction
The manufacturerwill simply answer qualityproduct
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Quality
Ability of a product to satisfy customers needup to a standard.
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Definition of TQM
TQM is the art of managing the whole toachieve excellence.
TQM is a philosophy and a set of guidingprinciples that represent the foundation of acontinually improving firm.
It is the application of quantitative methodsto improve all processes within a firm.
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5 Principles of TQM
Produce quality work the first time.Focus on the customer: The customer ultimately determines the
level of quality. No matter what an organization does to foster quality improvementtraining
employees, integrating quality into the design process, upgrading computers or software, or buying
new measuring toolsthe customer determines whether the efforts were worthwhile.
Have a strategic approach to improvement:This process, called strategic planning or strategic management, includes the formulation of a
strategic plan that integrates quality as a core component.
Improve continuously: Continual improvement drives an organizationto be both analytical and creative in finding ways to become more competitive and more effective
at meeting stakeholder expectations.
Encourage mutual respect and teamwork:
All
employees participate in working toward common goals.
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Tools of TQM
Right First Time: Quality conscious at start
Bench Marking ISO 9000(International organization for
standardization ) Quality Circles
Statistical Quality Control
Kaizen
Six Sigma
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Benefits of TQM
Improve quality
Employee participation and satisfaction
Teamwork and Working relationships
Customer satisfaction
Productivity
Communication
Profitability and Market Share
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Obstacles to TQM
Lack of management commitmentImproper planningLack of continuous training and education
Incompatible Org structure & isolateddepartments and individualsIneffective measurement techniquesPaying inadequate attention to customers
Inadequate use of empowermentand teamwork
Failure to continually improve
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Productivity and TQM
Traditional view:
Quality cannot be improved without significantlosses in productivity.
TQM view:
Improved quality leads to improvedproductivity.
