3/30/2020

Why care about quality

• increase productivity
Quality Management
• expand market share

• raise customer loyalty

• enhance competitiveness of the firm

• at a minimum, serve as a price of entry

Why Quality is so difficult to do? Elements for Success

• Management Support
• Mission Statement
One has to translate future needs of the user • Proper Planning
into measurable characteristics • Customer Focus both internally and externally
• Measurement
• Empowerment
• Teamwork/Effective Meetings
• Continuous Process Improvement
• Dedicated Resources
• Treating suppliers as partners

• When TQM is implemented in any organization, it TQM along with benefits has many costs these
results in high value sustainable benefits. are:
Some of the benefits are: 1) Resistance to change: Employees in some
 Improved quality and efficiency organizations may feel insecure under the
 Employee participation and teamwork TQM program due to lack of trust thus result
in a high employee turnover rate.
 Working relationship
2) High cost of time: TQM program involves high
 Customer satisfaction
costs of implementation and it might take
 Employee satisfaction several years for the program to show
 Better Communication substantial results. This may result in
 Improved Profitability uncertain economic conditions.
 Increasing Market share

1
 3/30/2020

TQ: Transforming an Organization

Responsibility for Quality
From To

Motivation through fear and loyalty Motivation through shared vision Customer
Attitude: “It’s their problem” Ownership of every problem
affecting the customer
Service Marketing
Attitude: “the way we’ve always done Continuous improvement
it” Quality
Packaging and Product Design
Decisions based on assumptions/ Decisions based on data and facts
Storage Or Engineering
judgment calls
Service
Everything begins and ends with Everything begins and ends with
management customers Inspection
and Test Procurement
Crisis management and recovery Doing it right the first time
Process
Choosing participative OR scientific Choosing scientific AND Production Design
management participative management

Quality in U.S. vs. the Japanese

• U.S. conforming to the requirements at the

least cost
• Japanese joint responsibility to make the
end customer happy