What is the relationship between Total Quality Management (TQM) and Continuous Improvement (CI)? Discuss the roles of Quality Assurance and Quality Control and their relative importance in demonstrating this relationship? What is the role of quality role in the development of an E-Commerce capability? Total Quality Management (TQM) is focus on the quality of the products or services. TQM expands beyond statistical process control to embrace a wider scope of management activities of how we manage people and organizations by focusing on the entire process, not just simple measurements. TQM philosophy is a “continuous improvement” approach to doing business through a new management model. Quality assurance/quality controls are those activities you undertake to demonstrate the accuracy and precision of your monitoring. Quality Assurance (QA) generally refers to a broad plan for maintaining quality in all aspects of a program. The QA plan describes how you will execute your monitoring effort, this include proper documentation of all your procedures, training, data management and analysis, and specific quality control measures. Quality Control (QC) consists of the steps you will take to determine the validity of specific sampling and analytical procedures. Furthermore, quality assessment is your assessment of the overall precision and accuracy of your data, after you have run the analyses. Quality plays a very important role in e-commerce; the customer satisfaction will be measure most of the times based of the quality of the goods received. It is very important to define “quality”. "Good quality", for an informed consumer could be a disappointment for another customer that chose to purchase the same item by a misleading customer review. It’s vital that the sites provide detailed description of their products, to allow the customer to make an informed decision and compare same quality from other sources. Discuss the concepts of centralized vs. decentralized purchasing authority, identify their relative advantages and disadvantages, and provide examples of when each may be appropriate. Centralized authority occurs when decision-making authority is maintained at the senior level management of the company. Decentralized authority occurs when decision-making authority is delegated to lowest level managers and employees who are the subject matter experts or are more familiar with the reality of their branch. A good example is how Macy’s customers in California are likely to demand clothing styles different from those demanded in Minnesota or Maine. In this case it makes sense to give store managers in different cities the authority to buy, price, and promote merchandise appropriate for each area. Some advantages of Centralized purchasing are greater top management control, standardized distribution system, more efficiency, and stronger corporate image. Some disadvantages of centralized systems are less empowerment to the branches and lower management, less responsiveness to the customers; inter organizational conflicts, and lower morale at the branches. The advantages of decentralized purchase systems are better adaptation to the customer’s needs, empowerment to the lower level management, faster decision making, and increase in morale at the branches. Some disadvantages are risk of less efficiency, more complex distribution system, and less control from senior management.
Differentiate between the principles and practices of Purchasing and Supply Management used in the public sector (e.g., governments and public institutions) and the private sector (e.g., manufacturing and retail). What are the salient differences, and how do these differences affect the establishment or maintenance of buyer-supplier relationships and the implementation of Purchasing and Supply Management processes? The principles of purchasing and supply management used in the public sector are driven by federal regulations. The government funds are provided by...
Please join StudyMode to read the full document