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8/6/2019 Lecture # 7 Total Quality Management
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QUALITYMANAGEMENT (TQM)
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Total Quality Management TQM is a philosophy which applies
equally to all parts of the organization.
TQM can be viewed as anextension ofthe traditional approach to quality.
TQM places the customer at the forefrontof quality decision making.
Greater emphasis on the roles andresponsibilities of every member of staffwithin an organization to influencequality.
All staff are empowered.
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Elements of TQM Leadership
Top management vision, planning and support.
Employee involvement All employees assume responsibility for the
quality of their work.
Product/Process Excellence
Involves the process for continuousimprovement.
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Elements of TQM Continuous Improvement
A concept that recognizes that qualityimprovement is a journey with no end and that
there is a need for continually looking for newapproaches for improving quality.
Customer Focus on Fitness for Use Design quality
Specific characteristics of a product that determine
its value in the marketplace. Conformance quality
The degree to which a product meets its designspecifications.
f d l f
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A fundamental concept ofTQM
A set of inter-related resources and activities whichtransform inputs into outputs.
Any activity that accepts inputs, adds values to theseinputs for customers, and produces outputs for thesecustomers. The customers may be either internal or
external to the organization.
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CHARACTERISTICSwhat the customer looks in aproduct.
DIMENSIONS OF QUALITYFOR PRODUCTS & SERVICES
PerformanceFeatures
Reliability
Conformance
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QUALITYPREVENTION COSTS
Quality planning costsProduct design costsProcess costs
Training costsInformation costs
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FAILURE
COSTSScrap costsRework costs
Process failurecostsProcess downtime
costsPrice reduction
THE COST OF
QUALITY (CONT.)
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COSTS
Customer complaintcostsProduct return
costsWarranty claimcosts
Product liabilitycostsLost sales costs
THE COST OF
QUALITY (CONT.)
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PRINCIPLESCustomer-defined qualityManagement leadership
toward qualityStrategic quality planningEmployee responsibility
Continuous qualityimprovementCooperation between the
employees and the
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TQM & organizational Cultural ChangeTraditional Approach
Lack of communication
Control of staff
Inspection & fire fighting
Internal focus on rule
Stability seeking
Adversarial relations
Allocating blame
TQM
Open communications
Empowerment
Prevention
External focus on customer
Continuous improvement
Co-operative relations
Solving problems at their roots
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Custom e
rs
expecta
tionsfo
r
theprod u
ctor
service
Custom
ers
perceptions
of
theproduct
or
service
Custom
ers
percept i
on
sof
theproduc
tor
service
Customers
expecta
tion
s
fortheprodu
ct
orservice
Custom
ers
percept i
ons
ofthe
productorserv
ice
Gap
Perceived qualityis poor
Perceived qualityis good
Expectations >perceptions
Expectations =perceptions
Expectations