Total Quality Management

Total Quality Management

Total Quality Management

•Seeks to unite all business functions to focus on continuous improvement and on meeting or exceeding customer needs, both internal and external.

•Makes quality a responsibility for all areas of the business

•Focuses on ‘getting it right the first time’ to achieve zero defects as a performance objective

Lets look at Toyota

Multiple Choice

What three characteristics that best describe TQM

• management system, employee-focused, continual improvement

• management system, customer-focused, constant feedback

• management system, customer-focused, continual improvement

• management system, supplier-focused, constant feedback

Multiple Choice

Which of these is NOT a guiding principles.

• organisational structure

• Strategic and systematic approach

• employee participation

• organisational culture

TQM’s Guiding Principles

•Customer focus: everyone in the business has a customer who determines the level of quality. Finds out exactly what the customer needs and wants and guarantees quality products are fit for purpose

–External customers: purchase the end product

–Internal customers: use what your team or workgroup produces i.e information

•Employee participation and empowerment: quality is also the responsibility of all employees across the business. Quality circles must be developed with employees from different areas of the business coming together to discuss ways to resolve problems and improve productivity – fosters employee ownership

TQM’s Guiding Principles

•Continuous improvement: no such thing as ‘good enough’ – everyone is responsible for continuous improvement

•Organisational Culture: must integrate continuous improvement, high-quality ethos, feedback, teamwork, a learning organisation and a systems approach into culture

•Strategic and Systematic Approach: all strategic planning must have quality at its core. Quality must be central to the vision, mission and goals of the business and communicated for consistency

Open Ended

In a minimum of 2 sentences, explain the purpose of TQMs guiding principles. What do they aim to do?

TQM and competitive advantage

•Strong competitive advantage can be achieved using TQM due to:

–Customer satisfaction – driven by customer needs and wants, providing value to customers and exceeding satisfaction

–Leadership – provides direction and motivation to employees and management

–Team-building – employees at all levels included in quality circle and processes to gain maximum input and benefits

–Continuous improvement – plan, do, check, act cycle

–Process management - more efficient use of resources

Open Ended

Explain why it is important that TQM is competitive for mature businesses in a hostile environment?

Service Quality and TQM

•Service sector employees 4/5 workers – becoming more innovative and efficient will deliver a quality service

•Quality of service may be difficult to measure as each customer experience unique

•TQM can be applied to the service-based businesses, with a focus on continuous improvement and meeting, or exceeding, customer needs

–Tangible aspects – physical facilities, aesthetics, appearance of employees and ability to manage capacity

–Reliability – performing a service dependably and accurately

–Responsiveness – to customer needs

–Assurance – capacity of employees to develop confidence and trust

–Empathy – individualised attention and relationship building

Open Ended

Identify a service base business and describe how TQM can be applied to it.

Six Sigma

•Operations strategy developed by Motorola in the 1980’s as a process for driving improvement and primarily identifies and rectifies errors and defects in the manufacturing or business process.

•Trained professionals, ‘ green belts and black belts’, use a process to define, measure, analyse, improve and control (DMAIC) existing processes that fall below specifications and need improvement

Lean Management

•Typically found in the automotive industry and focuses on improving efficiency and effectiveness by eliminating waste and improving quality by finding sustainable alternatives

•Focuses on perfecting processes and empowering the involvement of employees

•Benefits:

–Elimination or the reduction of factors that waste time, effort or finances

–Reduction in unit costs, leading to improved profits

–Waste reduction

–Creates value for customers

Open Ended

Complete the questions 1 & 2 in 5.4 on page 187