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Total Quality Management

Extracts from this document...

Introduction

Table of Contents Abstract 1 Introduction 2 Part 1: Literature Review 3 1: Understanding Quality 4 1.1 What is Quality? 5 1.2 Understanding quality chains 6 1.3 Quality starts with marketing 7 1.4 Quality in all functions 8 1.5 Managing processes 8 1.6 The concept of total quality management (TQM) 10 2: Core Concepts of Total Quality Management 11 2.1 Continuous Improvement 12 2.2 Customer Orientation 13 2.3 Defect prevention 15 2.4 Universal Responsibilities 16 2.5 Techniques and Methodologies 17 3: Control Processes 27 3.1 What is a process? 28 3.2 Quality Control 28 4: Cost of Quality 30 4.1 Quality Cost 31 4.2 Prevention Costs: 32 4.3 Appraisal Costs 33 4.4 Failure Costs 33 5: Measuring Quality 36 5.1 Why measure quality? 37 5.2 What to measure 37 5.3 How to measure 38 5.4 Benchmarking 40 6: Implementation Of Total Quality Management 42 6.1 The Eight Elements of TQM 43 Part 2: Field Study 46 Chapter 1: Methodology 47 Chapter 2: Data Analysis 49 Chapter 3: Findings 86 Conclusion 89 Recommendations 90 References 91 Appendix 1 92 Appendix 2 97 Abstract Total Quality Management is one of the most important and exciting new fields of study in the science of business management. It has been initially conceived in the 50's. It has not been really recognized for its real importance until much later in the 80's, when it was widely applied by Japanese organizations to a huge success. Total Quality Management starts with identifying the idea that quality must be applied to the organization as a whole, rather than just the product. The aim of TQM is to achieve an effective, efficient production process that would result in a product or service that would meet the requirements of the customer, thereby achieving customer satisfaction. The importance of TQM is that it can be a competitive weapon. By 'getting it right the first time', an organization can save most of the time and resources previously consumed by activities aimed to prevent and fix ...read more.

Middle

There is a need for an experimental approach that minimizes the number of tests and provides statistical information on the effect of normal variation on the outcome. Taguchi's method allows fewer tests to be made and also gives information about the relative importance of each variable. This is very helpful information because it allows one to produce a robust design. 8. Inventory management. In the conventional approach towards inventory management the inventory levels are maintained by considering the delivery times of suppliers, the projected quantities and safety stocks to cover variations in demand, and reject rates. The Economic Ordering Quantity is the term used to describe the ideal amount and frequency of inventory ordering. Inventories carry huge costs. The warehouse to store the inventory costs money, inventory costs money, stocks of partly finished goods along the production line costs money, and the amount of money to pay for these is increased by way of interest charges. Inventory costs are considered a necessary evil to provide a cushion against unforeseen demands. The Japanese adopted a different approach. They tackled the inventory issue head on by getting at the underlying causes which require high levels of inventory to be maintained. Their concept of Just-in-Time inventory management is based on supplying inventory on demand. They do this in two ways, by working closely with their suppliers to develop responsive methods of supply and by improving their internal process. The two critical factors that need to be improved for Just-in-Time inventory control to work are set up time and defect rates. When one can change the set up on machines quickly it is possible to manufacture precise quantities on demand. In the case of Toyota, for instance they were able to reduce the set up time for body panel presses from several days down to several minutes. Defect rates are important too. If the products have no defects one can manufacture the exact quantities with no need for a cushion. ...read more.

Conclusion

The basics are there, but more awareness is needed to glue them together into a useful framework or discipline such as Total Quality Management. Recommendations It is difficult not to recommend the application of Total Quality Management in any organization. As I hopefully demonstrated, through this document and its conclusion, the benefits outweigh the devotion needed to implement and maintain it. This discipline is not easy to follow and implement. However the requirements of Total Quality Management are for the most part individual-related. It needs commitment, devotion and determination, starting from the top levels of the organization, going through all the way to the bottom. I also recommend the education and training of the individuals of the organization in the ways of communication and teamwork, since they belong to the core of the management of total quality. Even if total quality management is not sought after by an organization (though it should) this field of education will benefit any organization. Total Quality Management can be of particular value to our own organizations. Our economy is faced by many obstacles and is still in its infancy stage. The application of Total Quality Management now should help build up our economic culture towards the right direction. It is good to learn from our mistakes, but it is even better to learn from others' as well. Total Quality Management proved itself in theory and in practice, and since our organizations need all the competitive edge they can get, it is recommended that this discipline is understood and applied. The first step towards this should be to organize workshops to introduce the concepts of Total Quality Management to our market. Once the benefits of it are made realized, I expect the market to shift swiftly in the direction of a better management. It is also worth it to keep up to date with this -and any related- field of study, since new, better methods and techniques are always devised. Making something function better is good, making it function even better is VERY good. ...read more.

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