Total Quality Management

There is no explicit definition of total quality management. Some people define it as providing the customer with quality products at the right time and at the right place. Others define it as meeting or exceeding customer requirements. Internally, TQM can be defined as less variability in the quality of the product and less waste.

Figure 20-34 shows the basic objectives and focus areas of a TQM process. Almost all companies have a primary strategy to obtain TQM, and the selected strategy is usually in place over the long term. The most common primary strategies are listed below. A summary of the seven primary improvement strategies mapped onto 17 corporations is shown in Table 20-9.

Primary strategies:

• Solicit ideas for improvement from employees.

• Encourage and develop teams to identify and solve problems.

11. This section has been adapted from C. Carl Pegels, Total Quality Management (Danvers, MA: Boyd & Fraser, 1995), pp. 4-27.

CUSTOMER FOCUS (M)

BENCHMARKING (M)

REENGINEERING (M)

CYCLE TIME REDUCTION (M)

TIME-BASED COMPETITION (M)

JUST-IN-TIME OPERATIONS (M)

ADAPTABILITY (M)

CONCURRENT ENGINEERING (M)

FUNCTIONAL AREA INTEGRATION (M)

ACTIVITY-BASED COSTING (M)

SUPPLIER COOPERATION AND DEVELOPMENT (M)

PRODUCT INNOVATION (M)

BENCHMARKING (M)

REENGINEERING (M)

CYCLE TIME REDUCTION (M)

TIME-BASED COMPETITION (M)

JUST-IN-TIME OPERATIONS (M)

ADAPTABILITY (M)

CONCURRENT ENGINEERING (M)

FUNCTIONAL AREA INTEGRATION (M)

ACTIVITY-BASED COSTING (M)

SUPPLIER COOPERATION AND DEVELOPMENT (M)

BRAINSTORMING (T)

PARETO ANALYSIS (T)

CAUSE AND EFFECT DIAGRAMS (T)

STATISTICAL CONTROL CHARTING (T)

QUALITY FUNCTION DEPLOYMENT (T)

PROCESS QUALITY (T)

GROUP DYNAMICS (E)

EMPLOYEE MOTIVATION (E)

TEAM PROBLEM SOLVING (E)

TEAMWORK (E)

EMPLOYEE EDUCATION AND TRAINING (E)

BRAINSTORMING (T)

PARETO ANALYSIS (T)

CAUSE AND EFFECT DIAGRAMS (T)

STATISTICAL CONTROL CHARTING (T)

QUALITY FUNCTION DEPLOYMENT (T)

PROCESS QUALITY (T)

GROUP DYNAMICS (E)

EMPLOYEE MOTIVATION (E)

TEAM PROBLEM SOLVING (E)

TEAMWORK (E)

EMPLOYEE EDUCATION AND TRAINING (E)

NOTES: M = MANAGEMENT FOCUS T = TOOL FOCUS E = EMPLOYEE FOCUS

FIGURE 20-34. TQM objectives and focus areas. Source: C. Carl Pegels, Total Quality Management (Danvers, MA: Boyd & Fraser, 1995), p. 6.

• Encourage team development for performing operations and service activities resulting in participative leadership.

• Benchmark every major activity in the organization to ensure that it is done in the most efficient and effective way.

• Utilize process management techniques to improve customer service and reduce cycle time.

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Project Management Made Easy

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