Copyright © 2002 by Harcourt, Inc. All rights reserved. Topic 28 : Total Quality Management By Zhu Wenzhong

Copyright © 2002 by Harcourt, Inc. All rights reserved.

Topic 28 :Topic 28 :

Total Quality ManagementTotal Quality Management

By Zhu Wenzhong By Zhu Wenzhong


• State what is the quality of a product State what is the quality of a product • Explain the difference between actual and Explain the difference between actual and

perceived quality perceived quality • State the definition of TQM State the definition of TQM • State the characteristics of TQM or State the characteristics of TQM or

implications for a business implications for a business • State the benefits and problems of using TQM State the benefits and problems of using TQM

LEARNING GOALSLEARNING GOALSLEARNING GOALSLEARNING GOALS


Quality Quality Quality Quality

• The features of a product that allow The features of a product that allow it to satisfy customers’ needs or it to satisfy customers’ needs or simply some standard of excellence. simply some standard of excellence.

• Actual quality Actual quality • Perceived quality Perceived quality

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Total quality management (TQM) Total quality management (TQM) Total quality management (TQM) Total quality management (TQM)

• Total Quality Management (or TQM) is a management Total Quality Management (or TQM) is a management concept coined by W. Edwards Deming. The basis of concept coined by W. Edwards Deming. The basis of TQM is to reduce the errors produced during the TQM is to reduce the errors produced during the manufacturing or service process, increase customer manufacturing or service process, increase customer satisfaction, streamline supply chain management, aim satisfaction, streamline supply chain management, aim for modernization of equipment and ensure workers have for modernization of equipment and ensure workers have the highest level of training.the highest level of training.

• A managerial approach which focuses on quality and A managerial approach which focuses on quality and aims to improve the effectiveness of the business aims to improve the effectiveness of the business involving every department, activity and individual. involving every department, activity and individual.

• It is also a method designed to prevent errors, such as It is also a method designed to prevent errors, such as poor quality products, from happening at every stage of poor quality products, from happening at every stage of the production process. the production process.

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Total quality management (TQM) Total quality management (TQM) Total quality management (TQM) Total quality management (TQM)

Characteristics of TQMCharacteristics of TQM::• Quality chainsQuality chains• Company policy and accountabilityCompany policy and accountability• Control Control • Monitoring the process Monitoring the process • Teamwork Teamwork • Consumer views Consumer views • Zero defects Zero defects

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Characteristics of TQMCharacteristics of TQMCharacteristics of TQMCharacteristics of TQM• TQM emphasizes quality TQM emphasizes quality

chains inside and outside chains inside and outside the business, including the business, including producers, suppliers and producers, suppliers and customers. Any part of the customers. Any part of the chain has some problems, chain has some problems, then the next stage will then the next stage will delayed. delayed.

Quality chainsQuality chains


Characteristics of TQMCharacteristics of TQMCharacteristics of TQMCharacteristics of TQM

• TQM stress the role of TQM stress the role of every one from the top every one from the top to the bottom and aims to the bottom and aims to make every one to make every one accountable for his/her accountable for his/her own performance. own performance.


Company policy& accountability

Company policy& accountability


Characteristics of TQMCharacteristics of TQMCharacteristics of TQMCharacteristics of TQM• TQM stresses a systematic TQM stresses a systematic

control approach, control approach, controlling all the factors controlling all the factors that may affect the quality that may affect the quality of a product. of a product.

• See the next figureSee the next figure


Control Control

Company policy & accountability



The systematic approach to The systematic approach to qualityqualityThe systematic approach to The systematic approach to qualityquality

Figure Figure Feedback Feedback

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Good design

Consistent methods

Consistent materials

Consistent Equipment

Satisfactory instruction

Operations and Control process

Consistently satisfied customers


• TQM stresses the monitoring the process to find improvements through statistical process control such as charts and diagrams.

Quality chains


Control

Monitoring the process

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• TQM stresses that teamwork is an effective way of solving problems.

Quality chains

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Company policy

Control


Teamwork Teamwork



• TQM stresses the feedback of information from consumers and response to the changes in customers’ needs and expectations.

Quality chains

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Company policy

Teamwork


Consumer viewsConsumer views

Control



• TQM emphasizes a zero defect policy that every product is free from defects.

Quality chains

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Company policy

Teamwork


Zero defects Zero defects

Control

Consumer views


Benefits and problems of using Benefits and problems of using TQMTQMBenefits and problems of using Benefits and problems of using TQMTQM

Benefits:• Focus on the customer needs and

relationship • Achieve quality in all aspects• Analyzes all processes to remove

defects• Find improvements on a

continuous basis • Develop team approach to

problem solving• Effective procedures of

communication

Problems: • High training and development

costs• Requiring commitment from the

entire business • Bureaucracy and regular audits

are needed• Stress is put on process not the

product.


Costs of ensuring costsCosts of ensuring costsCosts of ensuring costsCosts of ensuring costs Businesses are likely to face costs Businesses are likely to face costs

when trying to improve the quality when trying to improve the quality of their products: of their products:

• The costs of designing and setting The costs of designing and setting up control systems up control systems

• The costs of monitoring the systems The costs of monitoring the systems • The costs of faulty goods The costs of faulty goods • The costs of improving the quality The costs of improving the quality • ……

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Copyright © 2002 by Harcourt, Inc. All rights reserved. Topic 28 : Total Quality Management By Zhu Wenzhong