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TOTAL QUALITY MANAGEMENT Total - Made up of the whole Quality- Degree of excellence a product or service provides Management- Act, Art or manner of planning, organizing , directing controlling
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Knowledge of tools: Employees and managers are trained in the use of quality tools. 7. Supplier Quality: Suppliers must be included in the quality assurance and quality improvement efforts so that the processes are capable of delivering quality parts and materials in good time. BASIC CONCEPTS OF TQM: 1. management commitment 2. Top Focus on the customer - Both internal and external 3. Effective involvement and utilization of entire work force 4. Continuous improvement 5. Treating suppliers as partners 6. Establishing performance measures for the processes PRINCIPLES OF TQM: 1. Customers requirements - ( both internal & external) must be met first time & time every 2. 3. 4. 5. 6. 7. 8. 9. Everybody must be involved Regular two way communication must be promoted Identify the training needs and supply it to the employees Top management commitment Every job must add value Eliminate waste & reduce total cost Promote creativity Focus on team work.
BENEFITS OF TQM Tangible Benefits Improved product quality Improved productivity Reduced quality costs Increased market and customers Increased profitability Reduced employee grievances Intangible Benefits Improved employee participation Improved team work Improved working relationships Improved customer satisfaction Improved communication Enhancement of job interest
The Consequences of Poor Quality 1. 2. 3. 4. 5. Loss of business Liability Productivity Repair work, Rework and Scrap costs. Return goods, Warranty costs, Inspection costs and lost sales.-
Note: It is said that 30-35% of gross sales are used by the maximum companies for improving the quality.
current work processes Limited disruption to existing systems and structures Addresses narrowly defined work processes Used after process improvement, to compare Information systems used for data collection and interpretation
Quality specialists tend to focus on incremental change and gradual improvement of processes, while proponents of reengineering often seek radical redesign and drastic improvement of processes. Planning the Change: Organisations must choose between evolutionary and revolutionary change. A firm that pursues revolutionary change adopts a top-down change strategy. The organisation waits until it believes that the costs of not changing exceeds the costs of overcoming organisational inertia and then introduces its master plan for change. Generally, a top-down strategy calls for intervention at the high level of an organisation. Winding up of divisions or departments and downsizing are examples of this type of change. A firm that adopts evolutionary change adopts a bottom-up change strategy. Managers believe that the uncertainty associated with organisational change is best managed through incremental processes in which they continually make adjustments to their strategy and structure. Firms opting for bottom-up strategy prepare the organisation for change by involving managers and employees at all levels. They discuss the need for change and diagnose the problems facing the organisation. TQM is a method of evolutionary change.