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BEC102 Chapter1Summary
BEC102 Chapter1Summary
BEC102 Chapter1Summary
Introduction
Total Quality Management (TQM) is a customer oriented management philosophy and strategy.
It is centered on quality so as to result in customer delight. The word “total” implies that all
members of the organization make consistent efforts to achieve the objective of customer delight
through systematic efforts for improvement of the organization
The TQM Philosophy was evolved in Japan after World War II. Deming Edwards, an American
quality expert helped the Japanese to apply the concept of TQM. They concentrated on customer
satisfaction and focused on understanding customer needs and expectations.
The TQM philosophy was adapted by the Americans in the 1980s to look for new ways to survive
in an environment of deregulation, a growing trade deficit, low productivity , recession,
downsizing, and increasing consumer awakening.
In 1985, the American Navy coined the term TQM to represent broadly the Japanese way of
quality management
Quality gurus – experts who spearheaded the evolution of methodologies for assuring quality in
products and services.
TQM – culmination of the teachings of the Quality gurus
TQM – it addresses the concepts of product quality, process control, quality assurance, and
quality improvement, all of which at aimed at customer delight.
Definition of Quality
Chain Reaction
Quality improvement results in improved productivity. By eliminating defects, non-value adding
activities, and rework, additional resource capacity is created. Improved quality also reduces the
production cycle time and machine time.
The Japanese success is the best case study for TQM. Understanding the chain reaction
transformed them from a shattered economy to a successful nation challenging the USA after World
War II.
Improve Quality
Improved Productivity
Stay in business
Dimensions of Quality
Dimensions of quality differ for products and services. There are also dimensions which can be applicable
for both products and services
Dimension Definition
It refers to the core features and characteristics of a product.
Dimension Definition
This include but not limited to:
How well the customer is received?
Quality of customer service
How well the implied requirements are elucidated?
How well the customer is treated/handled/satisfied?
It is important that the service is designed as per the requirements of
Quality of service design
the specific customer.
Quality of delivery It is important in any sector, but more crucial in case of services.
Dimension Definition
Timeliness Delivery on schedule as per requirements of the customer
a product or service should look attractive. It may include but not
Aesthetics
limited to the appearance of the product, the finish, color, etc.
Regulatory requirements Stipulated by the local and federal governments
The products should fulfill both stated and implied requirements
Requirements of society
imposed by society
Products and services should conform to the stated and implied
Conformance to standards
requirements of customers
Evolution of Quality
Term Definition
It may be defined as: The operational techniques and activities that are
used to fulfill the requirements for quality. Juran gives 3 steps of QC:
Evaluate actual operating performance
Compare actual performance to goals
Quality control
Act on the difference
ISO 9000 Standards – it was released for the first time in the year
1987 to bring in system for quality in every organization. The standard
was revised in 1994 and later in the year 2000. The standard in the
latest version advocates TQM and continuous process improvement.