Académique Documents
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FACULTY OF COMMERCE
TERM PAPER
YEAR: 2010/2011
JANUARY, 2011
TABLE OF CONTENTS
Abstract................................................................................................................................ i
1.0 Introduction.............................................................................................................. 1
1.1 Defining Quality........................................................................................... 1
1.2 Why is Quality Important............................................................................. 1
1.3 Total Quality Management........................................................................... 2
1.4 Quality Assurance Vs Quality Control......................................................... 2
1.5 Total Quality Management Vs Six Sigma.................................................... 3
1.6 Background of Japan’s Quality Movement.................................................. 3
1.7 Deming’s Fourteen Points Plan for TQM..................................................... 4
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2.13 Acting Proactively rather than reactively...................................................... 10
2.14 Focus on Profit.............................................................................................. 11
2.15 Perception on Technology and Global Quality............................................. 11
2.16 Supplier relationship...................................................................................... 11
ABSTRACT
Total Quality Management (TQM) realizes that the key to improving quality is to improve
processes that define, produce and support an organization’s end product or service. TQM
involves a change from a traditional attitude toward quality. Thus, this paper focuses on
identifying the difference between traditional and TQM views of quality.
The first part of the paper gives an introduction of TQM and quality as a whole. The second
part states the difference of TQM from traditional views of quality. The third part identifies
the three requirements for quality improvement strategy. The next part states the benefits of
TQM, Challenges of TQM and Conclusion.
With management commitment, employees’ involvement and customer focus, TQM will
enhance quality of goods or services, and hence improving customer satisfaction and
delighting them.
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1.0 INTRODUCTION
Definitions of quality fall into several categories. Some definitions are said to
be user-based: they propose that quality “lies in the eyes of the beholder”.
Marketing people like this approach, and so do customers. To them, higher
quality means better performance, nicer features, and other (sometimes costly)
improvements.
• Company’s Reputation
An organization can expect its reputation for quality – be it good or
bad- to follow it. Quality will show up in perception about the firm’s
new products, employment practices and supplier relations.
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• Product Liability
The courts increasingly hold everyone in the distribution chain
responsible for a product. Additionally, organizations that design and
produce faulty products or services can be held liable for damages or
injuries resulting from their use.
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requirements for quality. It is concerned with defect prevention, and
thus involving a number of approaches.
The basic difference between 6 Sigma and TQM is the approach. While TQM
views quality as conformance to internal requirements, 6 Sigma focuses on
improving quality by reducing the number of defects, cycle time and cost
savings.
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Deming suggested that they can achieve their goal in five years; not many
Japanese believed him. However, they followed his suggestions. Maybe the
Japanese thought it was rude to say that they did not believe Deming. Or
maybe they thought it would be embarrassing if they could not follow his
suggestions. Whatever reason it was, they took Deming’s and other gurus’
advice and never looked back.
In the 1950s, quality control and management developed quickly and became
a main theme of Japanese management. The idea of quality did not stop at the
management level. Quality circles started in the early 60s. A quality circle is a
volunteer group of workers who meet and discuss issues to improve any
aspects of workplace, and make presentations to management with their ideas.
In the 1980s to the 1990s, a new phase of quality control and management
began. This became known as Total Quality Management (TQM). Having
observed Japan’s success of employing quality issues, western companies
started to introduce their own quality initiatives. TQM, developed as a catchall
phrase for the broad spectrum of quality-focused strategies, programmes and
techniques during this period, became the centre of focus for the western
quality movement (http://www.allbusiness.com accessed on 27thDec, 2010).
3. Cease dependence
Cease dependence on mass inspection; require, instead, statistical evidence
that quality is built in. Build quality into product.
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4. Improve the quality of incoming materials and services
End the practice of awarding business on the basis of a price alone.
Instead, depend on meaningful measures of quality, along with price.
5. Continuous Improvement
Find the problems; constantly improve the system of production and
service. There should be continual reduction of waste and continual
improvement of quality in every activity so as to yield a continual rise in
productivity and a decrease in cost.
6. Institute Training
Institute modern methods of training and education for all. A modern
method of on-the-job training use control charts to determine whether a
worker has been properly trained and is able to perform the job correctly.
Statistical methods must be used to discover when training is complete.
7. Emphasize Leadership
Institute modern methods of supervision. The emphasis of production
supervisors must be to help people to do a better job. Improvement of
quality will automatically improve productivity. Management must prepare
to take immediate action on response from supervisors concerning
problems such as inherited defects, lack of maintenance of machines, poor
tools or fuzzy operational definitions.
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management, whilst on the shop-floor, workers can also fear the effects of
change on their jobs.
9. Break down barriers between Department and Staffs’ areas
People in different areas such as research, design, sales, administration and
production must work in teams to tackle problems that may be encountered
with products or service.
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2.0 DIFFERENCES BETWEEN TRADITIONAL AND TOTAL QUALITY
MANAGEMENT VIEWS
Some of the contrasting differences between modern Total Quality organizations and
traditional organizations that pre-dated the quality revolution are summarized below;
The total quality view is that lasting productivity gains are made only as a
result of quality improvement.
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an organization, to compare best practices within the organization, and to
compare current practice over time. Competitive or external benchmarking
involves using comparative data between organizations to judge performance
and identify improvements that have proven to be successful in other
organizations.”
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processes. Every process contains sub processes and is itself contained within
a higher order process. This structure of processes is repeated throughout the
hierarchy.
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down the supplier base is total quality management concepts used for this
purpose, which is revolutionary still today.
2.10 Thoughts and Decision Making
Unlike traditional Management, Total Quality Management pursues new
strategic thinking and depends on cyclic thinking. It is also continuous;
therefore improvements are small, stable and continuous in nature. This is also
known as Kaizen. These events are used in teambuilding, brain storming and
decision making
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2.14 Focus on Profit
Traditionally managers believed that the only way to increase profits and
decrease overheads was to cut costs at any and all phases of production. They
believed that this was the only way to achieve high profit margins, not taking
into account the added costs of rejects and servicing of faulty products that this
method brought about.
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3.0 REQUIREMENTS FOR QUALITY IMPROVEMENT STRATEGY
Quality improvement strategy is any intervention aimed at reducing the quality gap in
business practices. It involves the following aspects;
The term customer in this context is associated with the concept of quality
chains, which emphases the linkages between suppliers and customers.
3.2 A recognition that Personnel at all levels share responsibility for Product
Quality
The concept of ongoing improvement affects everyone in an organization, at
all levels. It is therefore based on team rather than individual performance.
Thus, while top management provides leadership, continuous improvement is
also understood and implemented at shop floor level. Some consequences of
this principle include:
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• Provision of leadership from the top
Leaders need to be committed and establish unity of purpose and
direction. They should go for creation and maintenance of such an
internal environment, in which people can become fully involved in
achieving the organization's quality objective.
• Team Work
People at all levels of an organization are the essence of it. Their
complete involvement enables their abilities to be used for the benefit
of the organization.
• Quality Feedback
Information sharing on implementation of the quality strategy is very
essential at all levels in the organization through ongoing monitoring
and feedback opportunities.
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• Employee Recognition
The successful work of these strategies is dependent upon having
motivated and empowered teams. There are many advantages to basing
the work of the quality improvement strategies on the teamwork of
multidisciplinary teams that would review data and lead change.
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4.0 BENEFITS OF TQM
Some benefits of claimed for TQM include:
• Improved customer satisfaction
• Enhanced quality of goods and services
• Reduced waste and inventory with consequential reduced costs
• Improved productivity
• Reduced product development time
• Increased flexibility in meeting market demands
• Reduced work-in progress
• Improved customer service and delivery times
• Better utilisation of human resources.
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6.0 CONCLUSION
Total Quality Management realizes that the key to improving quality is to improve
processes that define, produce and support an organizations end product or service.
Total Quality Management theory realizes that people and the processes in which they
operate are keys in optimal organizational functioning. It recommends that an
organization get processes in control and work with other employees and managers to
identify process problems and eliminate them. It also realizes that managers and/or
supervisors must work on processes by providing training and tool resources, by
measuring and reviewing process performance, and by improving process
performance with the help of those who use the processes. Total quality Management
is all about caring for people sincerely. To get people to care about quality you have
to care about them.
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7.0 References
Hunger, J. Davia and Thomas L. Wheelen (1993), Strategic Management, 4th Edition,
Addison-Wesley Publishing Compony Inc. New York.
Lysons K. & Farrington B. (2006); Purchasing and Supply Chain management, 7th
Edition, Prentice Hall, UK
Shojania KG, McDonald KM, Wachter RM, et al (2004). Closing the quality gap: a
critical analysis of quality improvement strategies, Volume 1–Series Overview and
Methodology Technical Review 9 , Rockville.
Thareja P (2008), "Total Quality Organization Thru’ People, Each one is Capable",
FOUNDRY, Vol. XX, No. 4, July/Aug 2008
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