Total Quality Management

Total Quality ManagementTotal Quality Management(TQM) is an organisational process that activelyinvolves every function and every employee in satisfying customers needs, bothinternal and external. TQM works by continuously improving all aspect of workthrough structured control, improvement and planning activities that are carriedout in concern with guiding ideology that focuses on Quality and CustomerSatisfaction as the top priorities.

There has been many arguments that TQM succeeds only by incorporating aconcern about quality for the customers throughout the organisation. The truthof this statement and those facts that disagree with this statement will be lookinto and discuss in more detail to achieve the success of TQM.TQM recognises that the Customer is at the center of every activity.

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Thecustomer may be external or internal. The key is to determine the gap betweenwhat the customer needs and what the system delivers. Once the gap isrecognised, it would be systematically reduced and results in never-endingimprovement in customer satisfaction at every level.TQM depends on and creates a culture in an organisation which involveseverybody in quality improvement.

Everyone in the company can affect quality butmust first realise this factor and have the techniques and tools which areappropriate for improving quality. Thus TQM includes the marketing anddissemination of quality and methods not only within the organisation andcustomers but also to suppliers and other partners.The general view to achieve success in TQM could be summarised as below:Quality as strengthQuality in all processesThe importance of managementThe involvement, commitment and responsibility of everybodyContinuous improvementZero defectsFocus on prevention rather than inspectionMeeting the needs of target customersRecoveryBenchmarkingA prerequisite for successful quality improvement is first, to understand howquality is perceived and valued by customers. 4 Q’Design Quality Technical QualityProduction QualityDelivery QualityFunctional QualityRelational QualityImageExperiencesExpectationCustomer Perceived Quality =Customer SatisfactionFigure 1: Gronroos – Gummesson Quality Model (1987)Gronroos and Gummesson has combined their Customer Perceived Quality’model and the 4 Q model to stress the importance of customer.

The intergratedmodel focuses solely for the organisation to achieve customer satisfactionthrough improving the quality for the customers.Morup (1992) notes that quality is the most important and effective factora company can use in the battle for customers. To be competitive, we mustsatisfy the customers. In order to be more competitive, we must delight thecustomers. Quality is here defined as the measure of customer delightment.Kaizen provides the philosophy and driving force for designing the quality.

If quality is made the global driving force, then customers will obtain the bestvalue possible and use the product. The concern about quality will optimise thevalue for customers.The TQM perspective involves not only quality in relations with externalcustomers but also quality in the internal service chains and in relation tosuppliers and other partners.

This Quality Chain involves everyone in the process and appliedthroughout the organisation.Customer orientation and quality are not just a matter of ensuring that thecontents of the product or services satisfies the customer needs. The manner inwhich the service is delivered and the customers’ relations with the companymust also meet the customer’s expectation.Sales Customer SatisfactionQuality ImprovementAs the above graph indicates the sales increases directly with an increasein customer satisfaction. Customers are satisfied with improvement in quality.

The more quality improves, the faster sales will increase because customersatisfaction carries its own acceleration. When the quality reputation grows,marketing can emphasize increasing customer satisfaction as a major element inadvertising and the other promotions.As Deming wrote in his book Out of the Crisis,” it will not suffice tohave customers that are merely satisfied. An unhappy customer will switch.Unfortunately a satisfied customer may also switch, on the theory that he couldnot lose much and might gain. Profit in business comes from repeat customers,customers that can boast about your product and service, and that bring friendswith them.

He further stated that we should stay ahead of the customers. Thiscould be achieved through constant quality improvement and innovations.Why Do Companies Lose Customers:Death of Customer1%Customer Moving Residence3%Lower Price Elsewhere5%Unsatisfactory Handling of Complaints14%Suppliers’ Lack of Interest68%As shown in the above graph above TQM’s success includes the incorporationon quality of the after sales service and follow up. The quality needed inmaintaining a customer will be less as compare to gaining a new customer. TQMsuccess would therefore not only focus on gaining new customers but maintainingthe current customers, through improvement in quality for customers.Even though the main concern about TQM is highly focused on the customers,the focus on internal process cannot be left out. TQM’s success may not lie onlyon the quality for the customer but the quality of the organisation as a whole.

The core concept is discussed below:Right First Time / Zero DefectsTQM stress of the importance of zero defects and achieving the right targetthe first and everytime. Variances in product are not acceptable and methodssuch as the Statistical Process Control (SPC) is use to achieve the objective.Zero defects is the result of an emphasis on prevention and diligent use ofmeasurement, process control and the data driven elimination of waste and error.

As Crosby said, The purpose of quality management is to set up a system and amanagement discipline that prevents defects from happening in the company’sperformance cycle.Cost of QualityThis is the cost incurred in achieving a quality product or services. These maybe prevention cost, appraisal cost, internal failure cost, external failure cost,the cost of exceeding customer’s requirement and the cost of lost opportunities.Competitive BenchmarkingComparing with competitors is another reflex of TQM. This is a continuousmanagement process that helps firms access their competition and themselves andto use that knowledge in designing a practical plan to achieve marketsuperiority.

When done correctly, benchmarking produces the hard facts needed toplan and execute effective business strategies.Involvement of EveryoneIn TQM everyone is involved in the process of making the company a successfulbusiness. Everyone in the company is responsible for producing quality goods andservices and reducing the cost of quality.Synergy in Team WorkIn Japan, there is no status difference as they believe in synergy. Thereforethey consider themselves as partners depending on each other for effectivemanagement and success.

Ownership and the Elements of Self-ManagementTotal quality programmes are founded on the principal that people want to ownthe problems, the process, the solution and ultimately the success associatedwith the quality improvement. Psychologically, the ownership advocated by TQMties in the development in organisational design away from traditional models ofimposing management control over employees’ behaviour.Recognition and RewardsTQM system considers the rewards and recognition to be critical to a company’sprogramme, particularly when greater involvement of staff is required. Positivereinforcement through recognition and rewards is essential to maintainachievement and continuous improvement through participative problem-solvingprojects.

The Quality Delivery ProcessTQM is not just the awareness of quality for the customers. It demands theimplementation of a new system.Finally, the main objective of TQM may put the customer at the center of everyactivity and consider the process as customer driven, but all other factorswhich do not involve the customers have to be taken into consideration for thesuccessful implementation of TQM. English

Total Quality Management

TQMA major element in world market competition is quality. During the 1970sand 1980s, the Japanese and their U.S.

companies demonstrated that highquality is achievable at lower costs and greater customer satisfaction. It wasthe result of using the management principles of total quality management (TQM).U.S.

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companies have demonstrated that such achievements are possible using TQMas a way to manage. Such companies also found that they were recognized witheveryone pulling in the same direction. Improvement had become a way of life.

Before the 1980s, U.S. management was broadly successful. Prior to that, thedominant management model was that of the autocrat. Management, primarily seniormanagement, decided how the business was to operate, including what the policiesand objectives were; how it was organized; what jobs were established; and howthey should be done. It was an unquestioned axiom that if everyone did what theupper management required, the business would be successful. Organizations arecomposed of managers and the people who follow them. People respond strongly toleadership expectations and rewards.

If they are given little power in theirjobs, they will little interest in improving themselves. If leaders exhort themembers for better output but reward (promotions, bonuses, recognition) formostly highly output, they get the behavior they desired. Quantity over qualityhas been a common management philosophy in the United States.The first step in implementing total quality management requires anupper-management change in both philosophy and behavior. Managers must adopt theobjectives of customer satisfaction and continuous improvement. They mustimplement the change to achieve these objectives through their personal andcontinuous involvement and in the reeducation of everyone in the organization inTQM principles and practices. The past philosophy of management can workreasonably well if a company dominates the world market.

When markets becomecomplex and worldwide with stronger competitors, a new model is needed. Asianand some United States companies have demonstrated that there is a moreeffective way to manage, quite different from the autocratic model. It isemployee involvement in quality improvement.

These companies also introduce highquality at lower cost as a competitive element, thereby changing the competitiveequation for everyone. Total quality management is a way to continuously improveperformance at every level of operation, in every functional area of theorganization, using all available human and capital resources. Improvement isaddressed toward satisfying board goals such as cost, quality, market, share,schedule, and growth. In an ongoing effort, it demands commitment anddiscipline. The quality management process includes the integration of allemployees, suppliers, and customers within the corporate environment.

Total quality management embraces two underlying tenets. First, qualitymanagement is a capability which inherent in your employees. Second, qualitymanagement is a controllable process, not an accidental one. The idea of anintegrated, human-oriented system approach to management, was successfully usedby W.

Edwards Deming in the 1950s. Deming told the Japanese that they couldbecome world-class leaders if they followed his approach. He proposed a systemthat would change the philosophy of management in many ways.

Today, this systemis the pillar of the total quality management philosophy. There are fourteenfunctional elements to the TQM philosophy. Here are a few of them.Organizational vision provides the framework that guides a firms believesand values. The idea of the corporate vision should be a simple, one sentenceguide or motto that every employee knows, and more important, believes. If wellcrafted, the vision statement can serve through a torrent of change in productand service technology. The strategic vision needs to consider both the externalcustomer and the employees, but should lack a defining or differentiating phrasebetween them.

For example, General Motors provides all employees a card with itsstrategic vision, including a cause and effect diagram that indicates theimportance of teamwork. Simply stating a vision is not enough. It needs to bedemonstrated by the actions of the executives, managers, superiors, foremen, andindividuals. It should be done continuously in all their actions andinitiatives. Moreover, deliberation must be exercised in developing these goalsand strategies. They must reflect the values and culture of the work force.

While top-management commitment is essential, managers should realize when tolead and when to get out of the way. In a sense, quality management ismanagement from the bottom up. An atmosphere of responsibility must be createdtoward the customer for whatever product is produced or service is rendered.It is inevitable that change will be resisted. In fact, a great deal ofeffort in quality management is expended in overcoming such resistance, usuallyby allowing change to come from individuals directly involved, rather thanmanagement. The whole idea of continuous improvement leads to change.

Somebarriers that effect by this are: (a) We know what they really want (withoutasking them). (b) Quality is not a major factor in decisions-low initial costsmentality prevails. (c) Creating accounting can increase corporate performance.(d) Cant manufacture competitively at the low end. (e) The job of seniormanagement is strategy, not operations.

(f) Success is good, failure is bad. (g)If it isnt broke, dont fix it. (h) The key disciplines from which to drawsenior management are finance and marketing. (i) Increase in quality meansincrease in cost.

(j) Thinking that time, quality, and cost, are the worstmutuality exclusive, at best we can only choose two of the three.There are several steps to barrier removal. (I.) Identify the barrier. Someof the barriers may effect progress.

(II.) Place into categories. Relatedbarriers and their systemic causes may now be analyzed. Categorization may befacilitated by using either cause and effect diagrams or quality functiondeployment. (III.) Establish priority.

An objective process that is notinfluenced by management or hidden agenda must be developed. At this stagebarriers are judged on their validity in accordance with the severity of theproblem. (IV.) Problem solve. This means more than symptoms removal.

Sickorganizations do not recover for the long term if the symptoms are masked. It isvital to address the root of the problem. The elimination of one barrier maysolve many problems, for example, poor communication between management andstaff. Keep in mind that analyzing the problem should include estimates ofresources required for its solution.

(V.) Goals and strategies for resolution.Resolution of problems may entail goals over a period of months or years. Goalsshould be realistic and attainable with the given resources. Strategies ensurethat goals can be accomplished. Bear in mind that numerical goals as such maynot be what is required. Numerical goals may also limit the amount of growth,particularly in organizations used to working up to an average.Communication is the glue that binds all techniques, practices, philosophies,and tools.

Communication may be written, verbal, or nonverbal. Understanding andrefining skills for each main type of communication is an ongoing process foreveryone. All forms of communication involve four elements, the sender,receiver, message, and the medium.

The medium is the method of delivery and canaffect the message. It was said that the medium is the message, referringto the filtering effects that can happen to the message and how personalityfactors may influence the understanding. Written communication such as officememos and reports, are the result of hundreds of hours of work, and their finalform should be worthy of spending some time to get the words right. The use ofspace and graphical elements such as charts and figures enhances the readabilityof any written piece.

Given the vast amount of time spent on reading andcreating memos, letters, and proposals, the by word on written communicationshould be more is better; and the less is permanent (memos sentelectronically, faxes, hand notes on the bottom of the letters, rather thantyped, recorded reply) the better.Verbal communication takes place in many different settings and the form ofthe communication will vary. One sort of vocabulary may be used to addressshareholders and a different idiom may be used when chatting with co-workers.The skills principally lacking in verbal communication are public speaking andsmall group interactions. Public speaking scares people to death. This fear maybe overcome by training, organizing, and a little practice. Videotaping thepresentation to review later and practice on a small group to build confidencewill help as well.

Small group interactions are essential to build comfort andease among the group. It will provide a sense of teamwork and it is vital tohave a small talk among the team.Humans infer a great deal of information from nonverbal clues. Thesenonverbal clues include body language as well as the way the person is dressed.Some believe that nonverbal clues lead to gut feelings about how tointeract with another person.

Despite the similarities of nonverbalcommunication there are cultural differences, and is probably most important tounderstand these, rather than reading an individuals body language. It iseasy to fall into the trap of overanalyzing nonverbal clues and infusing themwith meaning, when, for example, someone may be hard of hearing or near/farsighted rather than being inattentive or too attentive.Continuous evaluation feedback is essential to continuous improvement. Howelse would a company know if their goals are being reached? Feedback mechanismsmay be a simple oral or written report, information system, or complex automatedstatistical analyses integrated with expert systems. The key is to receive theinformation in time to allow initiating corrective action.

For example, inconstruction, feedback from engineers, subcontractors, and so forth can help amanager find new ways to reduce cost and schedule. Feedback may also helparchitects to find the best way to construct a building and therefore affect thedesign.Unlike innovation, which requires great resources, and no small amount ofserendipity, continuous improvement is easier to manage and utilize everyonestalent. Japanese companies have used this idea for some time, and call thisapproach kaizen. This idea fits hand in hand with the team building approach.To reduce cost and time and increase in productivity, the focus must beprojected on the process that produces the project.

Improving the process, forexample, may reduce or eliminate costly order changes and therefore reduce timecomplexity. Through inspection and analysis of the process, everyone shares acommon learning experience and the accumulated knowledge and understanding ofthe process becomes the basis for improving it.Precepts of Quality ImprovementQuality leadership must begin with top management.The most important aspect of quality is identifying the activities withinthe organization that affect quality.Written procedures are one of the necessary communication media by whichthe management functions of directing and controlling are exercised.One of the most critical activities in quality improvement is preparing aclear, concise description of the services to be acquired.The cost, time, effort devoted to evaluating and selecting suppliers mustbe commensurate with the importance of the goods and services to be procured.Quality audits must determine the adequacy of, and compliance with,established policies, procedures, instructions, specifications, codes, standardand contractual requirements.

Quality audits must also assess the effectivenessof their implication. The simple objective of most quality audits is to gatherenough reliable data through inspection, observation, and inquiry to makereasonable assessment of the quality of the activity being audited.The foundation of quality control is having timely and accurateinformation so that systems that are not capable of producing consistent qualitycan be identified and improved.An affective quality cost program can help the management team to allocatestrategic resources for improving quality and reducing costs.Productivity, profit, and quality are the ultimate measure of success ofthe production system.

The hearing the voice of the customer has become a key phrase in thepast few years. This would seem to be an obvious point, but it is not. AfterWorld War II, the United States was the only major country that did not have adevastated economic infrastructure. Therefore, it was able to produce items ofany quality and sell them. Industries were internally driven and not customerdriven. As global markets grew, new competitors with new technologies approachedthese markets providing better quality of products and involving the customers.This approach worked miracles for these new industries and valuable lessonswould be learned from this.

Here are some strategies for improving customer andvendor relations.Link organizational vision to customer satisfaction.Reward suppliers.Move to a single source.Minimize the overall number of vendors.

Identify the internal and external customers.Identify end users and distributors.Establish routine dialogue with customers.Involve the customer in planning and development.Keep in mind that the vendors must be qualified and have policies that arecompatible. Viewing these vendors as partners, rather than adversaries can leadto the ability to implement successfully such cost-saving measures asjust-in-time, whereby materials arrive as needed.Empowering the worker means enabling the worker to achieve his or her highestpotential. For most American companies, this is new, and may be the mostpowerful and useful concept in quality management.

Allowing and facilitatingworkers to achieve their highest potential may seem either obvious orimpossible, but in fact it is neither. Empowering requires turning theorganizational charts upside down, recognizing that management is in a place toaide the worker in overcoming problems that may occur, not to place roadblocksalong the way. Empowering strategies include:Ownership.

A key strategy in empowering employees is to allow themownership of tasking, project, or division. Ownership implies trust and requiresa delegation of authority commensurate with the responsibility of the task.Ownership can also be granted to a team. Ownership also demands that the finalresolution of the tasking be in the hands of the owner.Value all contributions. Whether or not they are appreciated, it isimportant to enhance the self-esteem of the contributor to accept theircontribution and evaluate it.Everyone has a value. Treat everyone with respect.

All work has dignity toit.Teams must own problems. Teams are a waste of time if management vetoes orsubstantially changes their recommendation. If management is unable to trust therecommendations that come from the team, then management fear rules, and willspiral to lower and lower productivity.Delegate authority to the lowest possible organizational level. No oneknows more about a job than a person directly involved in it.

The outcome of training is modified behavior. It may enhance interpersonalskills or specific manual skills, but there is a direct, identifiablemodification. Training need not consist solely of traditional classroominstruction.

Employees can train other employees very effectively. Acompany-wide curriculum should be developed that addresses the needs of eachdepartment. Courses should be just long enough to be effective. Immediatereinforcement of the training is necessary to be effective as well.The main advantage to TQM is the focus on the quality, which is one of themajorCategory: History

Total Quality Management

Total Quality Management I feel it’s important to learn about the subject of total quality management (TQM) when dealing with operations management. Total Quality Management and continuous improvement put tremendous emphasize on the importance of empowering employees within an organization. When managers give employees certain freedom such as to think and take action on given situations, this act gives employees a sense of power which will make them feel closer to an organization.

With empowerment, managers must also accept new responsibilities emerging from implementing this new approach. Organizations have to realize by allowing employees to take corrective action when customers are satisfied, this will lead to improvement in customer service, speedy business transactions, and possibly increases in quality of products.On the other hand, problems can arise if manager fail to combine technical skills with personal skills to manage their human resources.

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Unproductive decisions, lack of communications, and legal actions are some problems relating to TQM and empowering employees. But to make decision you have to understand there are potential of making errors. The best way to overcome such problems is with a concise training procedure. Each employee that is given responsibility should be properly trained to make such decisions.If an employee does not have knowledge to make proper decision, the organization could have some problems.

If employees are properly trained, empowering employee can be a cost effective tool for an organization. The positives of empowering employees and the TQM process clearly outweigh its negatives. Business.


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