• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Total Quality Management & Theory of Constraints Applied to the Business World

Extracts from this document...

Introduction

Total Quality Management & Theory of Constraints Applied to the Business World Ernesto Lefranc 11/13/2004 Man 4504 Dr. Feldman TQM AND TOC Total Quality Management (TQM) Customers nowadays have become more and more concerned in buying products of good quality. But before one can begin to understand what Total Quality Management is, one must first know what quality is. Quality is the ability to satisfy, or even exceed, the needs and expectations of the customers. Quality is vital for a company to grow, survive and prosper. Nowadays, more and more organizations are placing greater emphasis on quality in order for them to prosper and become successful in their markets. In this essay I will be explaining the different concepts of quality, which are established by different people and then compare these concepts. The First theory to be explained will be Total Quality Management (TQM). Philosophers of TQM are W. Edwards Deming, Philip B. Crosby, and Joseph M. Juran. Throughout the twentieth century, these men have integrated new systems for improvements in the quality system for practically any organization. The first most well known of these philosophers is W. Edwards Deming. Deming first became known to the public when he was credited with assisting the Japanese after World War II and helping to elevate the Japanese industry. ...read more.

Middle

These benefits lead directly to increased market share and improved profitability. Theory of Constraints (TOC) The Theory of Constraints comes from the work achieved by Eli Goldratt's, on "how to think". It is the Thinking Processes and their applications. By knowing how to think, one can better understand the world around them. By understanding the environment one works in, one can make improvements. Cause and Effect is Central to the concept of TOC. The Thinking Processes of TOC give us a series of steps which combines cause-effect and our experience to gain knowledge. With knowledge, one can make improvements. One major benefit of the Thinking Processes is that it provides the ability to recognize the Paradigm shifts which occur when times change but our assumptions and rules don't. We cannot constantly monitor every assumption to be sure we are in line with constantly evolving reality. Those who continue their usual patterns of operation, regardless of the changes in reality, will suffer when the effects of their actions are not those that they expect. A constraint is anything that exists in an organization that limits it from moving towards its goal, assuming that a goal has been defined. For most business organizations the goal is to make money. ...read more.

Conclusion

TOC is really a "focused methodology for performing systems thinking (using the concept of Throughput rather than Cost Control) on the business entity as a whole to focus changes to be made on constraints that are directly limiting better total-system profitability". One of the primary reasons Total Quality Management has such a tough row to hoe is that it "lends itself very easily to sub optimization", which, as Deming observed can be the death of a system. The Theory of Constraints provides an orderly means of connecting departmental actions and decisions with the company's goal and necessary conditions. TOC provides the tools to determine what to change, what to change it to, and how to cause the change. And TOC measures Throughput, Inventory, and Operating Expense which allows managers to assess the global impact of local decisions. The Theory of Constraints is not a replacement for Total Quality Management. It is a focusing tool. Where TQM says, "Improve everything at once", TOC says, "Improve the most important things first." The effective integration of TQM with TOC can alleviate the shortcomings of the former. TOC provides a direct link between quality improvements and the bottom line. With TOC, an organization can trace performance gains directly to the improvements that caused them. Moreover, such gains are immediate. On the contrary, TQM need years to show results. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. In this coursework I need to produce a detailed business report on one medium-sized ...

    CHRISTMAS & NEW YEAR TRADING STATEMENT Monday 15 January 2001 GROUP SALES GROWTH CONTINUING TO ACCELERATE Group sales for the seven weeks ending 6 January 2001 increased by 15.4%. This growth was driven by excellent performances from all four elements of Tesco strategy: a strong core UK, increasing non-food sales, rapidly developing international stores and expansion into retailing services.

  2. Strategic Management of Ebay

    In order to take it to the next level eBay will be going into a new niche market. The "it" will now also include foreclosed properties. eBay will partner up with top banks nationwide such as: Citibank, Bank of America, Wachovia, and even JP Morgan in order to bring foreclosed properties out to the public's eye.

  1. 3. Consider the management of resources

    It is known as psychometric testing and allows the business to get an insight into the true applicant and whether they would be good for the business. There are two main types of psychometric tests - Ability testing - Ability tests measure a persons potential, for instance to learn the

  2. Increase Reality

    Augmented reality is said to be having wider applications than pure virtual reality. How do you use virtual reality for anything other than training [in simulators]? Most people have to still interact with the real world, and this system allows you to see both (Dawson, 1996).

  1. Investigating Business at RS Components in Corby For my work experience I went to ...

    One day I would like to have my own business and I know now that it is harder than you think. Altogether my work experience was a success. I helped the employer with all the built up jobs that needed doing and she helped me by giving me experience to the world of work.

  2. Activity-Based Management

    By providing both overheads and assistance information to support a variety of requirements, ABM was viewed as more than an extension to ABC. It was predominantly a process management tool that enabled improved covering, rather than a costing device that supported process management.

  1. International Management

    set up a new paper manufacturing plant in the local community. There are positives to each option. By purchasing an existing paper manufacturing plant, the company is avoiding the hard work of government regulations in regards putting up a new plant and all the laws that are attached when setting up a new business in a foreign country.

  2. E1- The classification of the business according to its ownership, and an explanation of ...

    shareholders and has an AGM at which shareholders vote on certain key issues relating to the company. The main difference between a PLC and a private limited company is that a PLC can sell its shares on the Stock Exchange to members of the general public and can, therefore, raise significantly more finance than a private limited company.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work