Total Quality Management (TQM) is a revolutionary concept in the management of quality. Foremost, it is a recognition that quality not only depends upon tangible investments in machines, processes or facilities, but also on intangibles such as the integration and management of these resources, the corporate and cultural environment, personnel motivation, etc.
Chapter 2 Total Quality in Organizations Growth of Modern Quality Management Performance excellence Service quality Improved product designs Manufacturing quality Key Idea As consumer expectations have risen, a focus on quality has permeated other key sectors of the economy, most notably health care, education, notforprofits, and government Systems A system is a set of functions or activities within an organization that work together for the aim of the organization Subsystems of an organization are linked together as internal customers and suppliers A systems perspective acknowledges the importance of the interactions of subsystems, not the actions of them individually Key Idea Successful management relies on a systems perspective, one of the most important elements of total quality Manufacturing Systems (1 of 2) Marketing and sales Product design and engineering Purchasing and receiving Production planning and scheduling Manufacturing and assembly Tool engineering Manufacturing Systems (2 of 2) Industrial engineering and process design Finished goods inspection and test Packaging, shipping, and warehousing Installation and service Key Idea Traditional quality assurance systems in manufacturing focus primarily on technical issues such as equipment reliability, inspection, defect measurement, and process control Relationships in a Typical Manufacturing System (Fig.2.1) Quality in Marketing Marketing and sales personnel are responsible for determining the needs and expectations of consumers Key Idea These differences make it difficult for many service organizations to apply total quality principles, and foster misguided perceptions that quality management cannot be effectively accomplished in services Understanding Services Degree of customer contact Pure service vs. quasimanufacturing Components of Service System Quality Employees Information technology 27 Key Idea Researchers have repeatedly demonstrated that when service employee job satisfaction is high, customer satisfaction is high, and that when job satisfaction is low, customer satisfaction is low Key Idea Information technology is essential for quality in modern service organizations because of the high volumes of information they must process and because customers demand service at everincreasing speeds Quality in Health Care Joint Commission on Accreditation of Healthcare Organizations (JCAHO) National Committee for Quality Assurance (NCQA) Institute for Healthcare Improvement (IHI) 1999 expansion of the Baldrige Award to nonprofit health care organizations Quality Issues in Health Care Avoidable errors Underutilization of services Overuse of services Variation in services Key Idea Although the national health care system as a whole may need a sweeping overhaul, many individual providers have turned toward quality as a means of achieving better performance and customer satisfaction Quality in Education Koalaty Kid – Active involvement of whole school community – Committed leadership – System for continuous improvement – Environment that celebrates success 33 Quality in Higher Education Business plays an important role in fostering quality improvement efforts in higher education by transferring knowledge and expertise on quality processes and implementation practices Academic Quality Improvement Project (AQIP) AQIP criteria focuses on institutional practices for helping students learn, accomplishing other distinct objectives, understanding student and stakeholder needs, valuing people, leading and communicating, supporting institutional operations, measuring effectiveness, planning continuous improvement, and building collaborative relationships—all of which are key elements of TQ Quality in Small Business and NotforProfits Slow to adopt quality approaches – General lack of understanding and knowledge about quality – Focus on sales and market growth, cash flow, and routine fire fighting – Lack of resources for formal quality systems Key Idea Perhaps the most important factor in successful quality initiatives in small businesses is the recognition by the CEO or president that a quality focus can be beneficial and lead to achieving organizational goals Quality in the Public Sector Quality in the Federal Government – Federal Quality Institute – President’s Quality Award State and Local Quality Efforts 38 Key Idea Quality concepts and principles are universal and can be applied in all types of organizations. The difficulty, of course, is developing an infrastructure to make it happen and the discipline to sustain efforts over time ... Manufacturing Systems (1? ?of? ?2) Marketing? ?and? ?sales Product design? ?and? ?engineering Purchasing? ?and? ?receiving Production planning? ?and? ? scheduling Manufacturing? ?and? ?assembly Tool engineering Manufacturing Systems (2? ?of? ?2)... Both technology? ?and? ?people are essential to high? ?quality? ?manufacturing Quality? ?in? ?Finished Goods Inspection? ?and? ?Testing The? ?purposes? ?of? ?final product inspection are to judge? ?the? ?quality? ?of? ?manufacturing, ... Manufacturing System (Fig.2.1) Quality? ?in? ?Marketing Marketing? ?and? ?sales personnel are responsible for determining? ?the? ?needs and? ?expectations? ?of? ?consumers Quality? ?in? ?Product Design Product design? ?and? ?engineering functions