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1 Quality And Total Quality Quality And Total Quality Management (TQM) Management (TQM)

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  • * Quality And Total Quality Management (TQM)

  • *What is qualityQuality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. ( The American Society For Quality Control )

  • *What is TQM?TQM is an organization wide approach to continuously improving the quality of all the organizations process, products, and services.

  • *Fundamentals of Quality Slide 1 of 3Consumer PerspectiveQuality can be defined as the degree to which the product or service meets the expectations of the customer.Producer PerspectiveQuality can be defined as the degree to which the product or service conforms to design specifications.

  • *Factors for Assessing QualityProduct FactorsAesthetics, features, performance, reliability, serviceability, durability, conformance, and perceived quality.Service FactorsResponsiveness, reliability, assurance, empathy, and tangibles.

  • *Cost of QualityPrevention CostsAppraisal CostsInternal-Failure CostsExternal-Failure Costs

  • * Prevention cost -Costs to prevent defective output from occurring.Appraisal cost Cost to assess the quality of the product Internal-failure cost Cost to repair or dispose the defective output before delivery to the customer.External-failure cost -Cost resulting from defective output that is not detected prior to delivery to the customer.

  • *Two primary responsibilities of managers in a quality centered company 1.Participate in formulating strategies and policies to help the company win through total quality excellence2.To deliver marketing quality alongside production quality

  • *Managers roles in delivering high quality goods and service1.Identify customer needs in well defined target market2.Communicate customer expectation accurately to the product designers3.Make sure customer orders are filled in correctly and the products deliver on time

  • *Managers roles in delivering high quality goods and service4.Make sure customers receive proper instructions and training on how to use the products5.Measure company/product image and customer satisfaction on a continuous basis6.Continuously improve product quality

  • *Basic premises about quality improvement1.Quality must be perceived by customers2.Quality must be reflected in every company activity, not just in its products3.Quality requires total employee commitment4.Quality requires high quality partners5.Quality can always be improved6.Quality improvement requires quantum leaps.7.Quality does not cost more

  • *How establish companies achieve high standards of quality1.They formulated a vision of quality in their mission statement2.Top mgt involvement from the start of the quality drive3.Focused on customer needs4.Develop effective planning and implementation to achieve the goal5.They trained their employees to use statistical process control tools6.Provide empowerment7.Reward their employees for quality performance8.Made quality improvement an on going challenge

  • *What is TQM?TQM is an organization wide approach to continuously improving the quality of all the organizations process, products, and services.

  • *The Key Ideas of TQM1. A System Approach2. The Tools of TQM3. A customer orientation4. The role of management5. Employee participation

  • *A System ApproachTQM focus on improving three organizational systems : a) The cultural/social system b) The technical system c) The management system

  • *The Tools Of TQM1.The fishbone diagram- also known as the cause-and-effect diagram that helps shows possible causes of a problem.2.Benchmarking-Comparing your products and processes against the best in the world.

  • *A Customer OrientationA Focus on identifying customer needs and deliver customer satisfaction

  • *The role of management1.Identify customer needs in well defined target market2.Communicate customer expectation accurately to the product designers3.Make sure customer orders are filled in correctly and the products deliver on time4.Make customers receive proper instructions and training on how to use the products5.Measure company/product image and customer satisfaction on a continuous basis6.Continuously improve product quality

  • *Employee participationTQM requires active employees involvement.TQM also requires empowerment letting employees make decisions without asking for approval from managers

  • *Hurdles in implementing TQM1.Managers reluctance to implement TQM e.g fear of failure or lack of knowledge2.Employee resistance to change3.Interdepartmental conflicts4.Lack of understanding on the basic principles of TQM