Total Quality Management
Before studying this chapter you should know or, if necessary, review 1. 2. Trends in total quality management (TQM), Chapter 1, page Quality as a competitive priority, Chapter 2, page
LEARNING OBJECTIVES After studying this chapter you should be able to 1 2 3 4 5 6 7
Explain the meaning of total quality management (TQM). Identify costs of quality. Describe the evolution of TQM. Identify key leaders in the ﬁeld of quality and their contributions. Identify features of the TQM philosophy. Describe tools for identifying and solving quality problems. Describe quality awards and quality certiﬁcations.
Deﬁning Quality 138 Links to Practice: General Electric Company; Motorola, Inc. 140 Cost of Quality 140 The Evolution of Total Quality Management (TQM) 142 The Philosophy of TQM 147 Links to Practice: The Walt Disney Company 150
Links to Practice: The Kroger Company; Meijer Stores Limited Partnership 153 Quality Awards and Standards 159 Why TQM Efforts Fail 162 OM Across the Organization 162 Inside OM 163 Case: Gold Coast Advertising (GCA) 166 Case: Delta Plastics, Inc. 167
DEFINING QUALITY • 137
veryone has had experiences of poor quality when dealing with business organizations. These experiences might involve an airline that has lost a passenger’s luggage, a dry cleaner that has left clothes wrinkled or stained, poor course offerings and scheduling at your college, a purchased product that is damaged or broken, or a pizza delivery service that is often late or delivers the wrong order. The experience of poor quality is exacerbated when employees of the company either are not empowered to correct quality inadequacies or do not seem willing to do so. We have all encountered service employees who do not seem to care. The consequences of such an attitude are lost customers and opportunities for competitors to take advantage of the market need. Successful companies understand the powerful impact customer-deﬁned quality can have on business. For this reason many competitive ﬁrms continually increase their quality standards. For example, both the Ford Motor Company and the Honda Motor Company have recently announced that they are making customer satisfaction their number one priority. The slow economy of 2003 impacted sales in the auto industry. Both ﬁrms believe that the way to rebound is through improvements in quality, and each has outlined speciﬁc changes to their operations. Ford is focusing on tightening already strict standards in their production process and implementing a quality program called Six-Sigma. Honda, on the other hand, is focused on improving customer-driven product design. Although both ﬁrms have been leaders in implementing high quality standards, they believe that customer satisfaction is still what matters most. In this chapter you will learn that making quality a priority means putting customer needs ﬁrst. It means meeting and exceeding customer expectations by involving everyone in the organization through an integrated effort. Total quality management (TQM) is an integrated organizational effort designed to improve quality at every level. In this chapter you will learn about the philosophy of TQM, its impact on organizations, and its impact on your life. You will learn that TQM is about meeting quality expectations as deﬁned by the customer; this is called customer-deﬁned quality. However, deﬁning quality is not as easy as it may seem, because different people have different ideas of what constitutes high quality. Let’s begin by looking at different ways in which quality can be deﬁned.
Total quality management (TQM) An integrated effort designed to improve quality performance at every level of the organization. Customer-deﬁned quality The meaning of quality as deﬁned by the customer.
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TOTAL QUALITY MANAGEMENT
The deﬁnition of quality depends on the role of the...
Bibliography: Crosby, Philip B. Quality Is Free. New York: New American Library, 1979. Crosby, Philip. Quality Without Tears: The Art of Hassle-Free Management. New York: McGraw-Hill, 1984. Deming, W. Edwards. Out of Crisis. Cambridge, Mass.: MIT Center for Advanced Engineering Study, 1986. Evans, James R., and William M. Lindsay. The Management and Control of Quality. 4th ed. Cincinnati: South-Western, 1999. Garvin, David A. “Competing on the Eight Dimensions of Quality,” Harvard Business Review, Nov. – Dec., 1987, 101 – 10. Garvin, David A. Managing Quality. New York: Free Press, 1988.
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TOTAL QUALITY MANAGEMENT Journal of Operations and Production Management, 20, no. 2, 2000, 225 – 248. Medori, D., and D. Steeple, “A Framework for Auditing and Enhancing Performance Measurement Systems,” International Journal of Operations and Production Management, 20, no. 5, 2000, 520 – 533. Rosenberg, Jarrett. “Five Myths about Customer Satisfaction,” Quality Progress 29, 12(December 1996), 57 – 60. Zimmerman, R. E., L. Steinmann, and V. Schueler. “Designing Customer Surveys that Work,” Quality Progress (October 1996), 22 – 28.
Goetsch, David L., and Stanley Davis. Implementing Total Quality. Upper Saddle River, N.J.: Prentice-Hall, 1995. Hall, Robert. Attaining Manufacturing Excellence. Burr Ridge, Ill.: Dow-Jones Irwin, 1987. Juran, Joseph M. “The Quality Trilogy,” Quality Progress 10, no. 8(1986), 19 – 24. Juran, Joseph M. Quality Control Handbook. 4th ed. New York: McGraw-Hill, 1988. Juran, Joseph M. Juran on Planning for Quality. New York: Free Press, 1988. Kitazawa, S., and Sarkis, J. “The Relationship Between ISO 14001 and Continuous Source Reduction Programs,” International
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