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Management
.FIRST time.
Internetix (2005)
Why TQM?
Ford Motor Company had operating
losses of $3.3 billion between 1980
and 1982.
Xerox market share dropped from 93%
in 1971 to 40% in 1981.
Attention to quality was seen as a way
to combat the competition.
Elements of TQM
Leadership
Top management vision, planning and support.
Employee involvement
All employees assume responsibility for the quality
of their work.
Product/Process Excellence
Involves the process for continuous improvement.
Elements of TQM
Continuous Improvement
Conformance quality
Input
s
Proces
s
Resources
(Source: BS 7850: 1992, Total Quality
Management)
Output
s
Input
from
supplier
Process
1
As
customer
Process
owner
As
supplier
Outpu
t
Input
Process
1
As
customer
Process
owner
Output
As supplier to
custome
r
TQM
Lack of communication
Open communications
Control of staff
Empowerment
Prevention
Stability seeking
Continuous improvement
Adversarial relations
Co-operative relations
Allocating blame
Gap
Expectations >
perceptions
Perceived quality
is poor
Gap
Expectations =
perceptions
Customers
perceptions of the
product or service
Customers
expectations
for the product
or service
Customers
perceptions of
the product or
service
Customers
expectations of
the product or
service
Customers
perceptions of
the product or
service
Customers
expectations for
the product or
service
Expectations <
perceptions
Perceived quality is
good
Word of mouth
communications
Previous
Experience
Image of product
or service
Customers
perceptions
concerning the
product or service
Customers
expectations
concerning a
product or service
A Gap model
of Quality
Gap 4
Customers own
specification of
quality
Gap 1
organizations
specification of
quality
Managements
concept of the
product or service
Gap 3
Gap 2
Continuous
Improvement
Philosophy that seeks to make never-ending
improvements to the process of converting
inputs into outputs.
Kaizen: Japanese
word for continuous
improvement.
Implementing TQM
Successful Implementation of TQM
Requires total integration of TQM into day-to-day
operations.
Some criticisms of
TQM
1. Blind pursuit of TQM programs
2. Programs may not be linked to
strategies
3. Quality-related decisions may not be
tied to market performance
4. Failure to carefully plan a program
Performance
Plan
Act
Do
Check
Continuous
improvement
Time
Recognizing and
rewarding Quality
Promotion of high quality goods and
services
Malcolm Baldrige National Quality Award
(MBNQA) (United States)
Deming Prize (Japan)
European Quality Award (European Union)
ISO9000 certification
Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)
Continual
Continualimprovement
improvementof
ofthe
thequality
qualitymanagement
management system
system
Customers
(and other
interested
parties)
Customers
(and other
interested
parties)
Management
responsibility
Measurement,
analysis and
improvement
Resource
management
Requirements
Input
Key:
Value adding activity
information flow
Product
realisation
Product
Satisfac
tion
Output
Source: BS EN ISO
9001:2000
TQM
TQM view:
Improved quality leads to improved
productivity.
Traditional Approach
Market-share focus
Individuals
Focus on who and why
Short-term focus
Product focus
Innovation
Fire fighting
Customer focus
Cross-functional teams
Focus on what and how
Long-term focus
Continuous improvement
Process improvement
focus
Incremental improvements
Problem solving
Quality Throughout
A Customers impression of quality begins with
the initial contact with the company and
continues through the life of the product.
Value-based Approach
Manufacturing
Dimensions
Service Dimensions
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality
Reliability
Responsiveness
Assurance
empathy
Tangibles
Objective
Principles Customer
Focus
Process
Total
Improvement Involvement
Leadership
Education and Training
Supportive structure
Elements
Communications
Reward and recognition
Measurement