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Presentation Transcript TQM
Presentation Transcript TQM
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What is TQM? • TQM is the enhancement to the traditional way of doing business. •
It is a proven technique to guarantee survival in the world-class competition. • TQM
is for the most part common sense. • Analyzing three words (TQM), we have: Total—
Made up of the whole Quality—Degree of excellence a product or service provides
Management—Act, art, or manner of handling, controlling, directing, etc. • Therefore
TQM is the art of managing the whole to achieve the excellence.
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Total Quality Management (TQM) Post World War II The Birth of Total Quality
Management The birth of the Total Quality Control in US was in direct response to a
quality revolution in Japan following WW-II as Japanese manufacturers converted
from Producing Military Goods for internal use to producing civilian goods for trade.
At first Japan had a widely held reputation for shoddy exports, and their goods were
shunned by international markets. This led Japanese organizations to explore new
ways of thinking about quality. And from here starts the era of “Quality Gurus”!
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The Era of Quality Gurus There have been three groups of gurus since the 1940’s:
Early 1950’s:Americans who took the messages of quality to Japan Late 1950’s:
Japanese who developed new concepts in response to the Americans 1970’s-
1980’s:Western gurus who followed the Japanese industrial success
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Total Quality Management (TQM) W. Edward Deming Deming, who had become
frustrated with American managers when most programs of statistical quality control
were terminated once the war and government contracts came to an end, was invited
to Japan in 1954 by the Union of Japanese Scientists and Engineers (JUSE). Deming
was the main figure in popularizing quality control in Japan and regarded as national
hero in that country. He believes that quality must be built I into the product at all
stages in order to achieve a high level of excellence. His thoughts were highly
influenced by Walter Shwartz who was the proponent of Statistical Quality Control
(SQC). He views statistics as a management tool and relies on statistical process
control as means in managing variations in a process.
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The Trends Accelerating Use of TQM: 1970s the era of Hue & Cry! “If Japan
Can… Why Can’t We?” • At first U.S. manufacturers held onto to their assumption
that Japanese success was price-related, and thus responded to Japanese competition
with strategies aimed at reducing domestic production costs and restricting imports. •
This, of course, did nothing to improve American competitiveness in quality. • As
years passed, price competition declined while quality competition continued to
increase. • By the end of the 1970s, the American quality crisis reached major
proportions, attracting attention from national legislators, administrators and the
media. • A 1980 NBC-TV News special report, “If Japan Can… Why Can’t We?”
highlighted how Japan had captured the world auto and electronics markets. Finally,
U.S. organizations began to listen.
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Baldrige Award Points Scale Examination Categories/Items _____ Point Values 1.0
Leadership95 1.1 Senior Executive Leadership 45 1.2 Management for quality 25 1.3
Public Responsibility and corporate citizenship 25 2.0 Information and Analysis75 2.1
Scope and management of quality and performance data 15 information. 2.2
Competitive comparisons and benchmarking 20 2.3 Analysis and uses of company-
level data 40 3.0 Strategic Quality Planning60 3.1 Strategic quality and company
performance planning process 35 3.2 Quality performance plans 25
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Total Quality Management (TQM) Winners of Baldrige National Quality Awards
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Total Quality Management (TQM) TQM Beyond 2000 As the 21st century begins,
the quality movement has matured. The new quality systems have evolved beyond the
foundations laid by Deming, Juran and the early Japanese practitioners of quality • In
2000 the ISO 9000 series of quality management standards was revised to increase
emphasis on customer satisfaction. Sector-specific versions of the ISO 9000 series of
quality management standards were developed for such industries as automotive (QS-
9000), aerospace (AS9000) and telecommunications (TL 9000 and ISO/TS 16949)
and for environmental management (ISO 14000). • Six Sigma, a methodology
developed by Motorola to improve its business processes by minimizing defects,
evolved into an organizational approach that achieved breakthroughs – and significant
bottom-line results. When Motorola received a Baldrige Award in 1988, it shared its
quality practices, like Toyota Motor Corporation, with others.
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Total Quality Management (TQM) END OF CHAPTER 1
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