Total Quality Managament What Is Tqm And How Can It Be Implemented In Industry Today Uses Japanese Examples

4555 words - 18 pages

In society today quality plays an important role in customer satisfaction. A classic example of customer's being discouraged due to poor quality would be the case of Skoda cars. In the 80's and early 90's Skoda was known for it poor quality and this in turn affected both the brand image and also sales of the company. Once the Volkswagen Group overtook it in 1994, strategies have been implemented to put quality back into the product and to put the customer first. However before understanding the concept of "total quality management" (TQM) one must define quality. Quality is said to be "the ability to satisfy, or even exceed, the needs and expectations of the customer" (Mullins 1998). This quote is far more contemporary than some of the older definitions of quality below as there is the broader understanding that quality should exceed the expectations of the customer and also indicates quality is intangible and the level of quality often changes.Other define quality as: "Quality is fitness for use"(Juran 1974) (4) or "Quality is a conformance to requirements or specifications" (Crosby 1979) - (4); however these definition have no inherent aspect on the customer; currently all businesses should be market orientated and hence any notion of quality should be developed for the customers benefit.TQM is a management approach to long-term success, through achieving complete customer satisfaction. TQM is the complete approach to improve organisational performance and effectiveness. There are numerous definitions of TQM, but Mullins 5th edition (1999) says TQM is:"A way of life for an organisation as a whole, committed to total customer satisfaction through continuous process of improvement, and the contribution and involvement of people" (3)Laurie J Mullins Management and Organisation al Behaviour 5th Edition 1999One should be aware that it is not a departmental project or quality saving campaign; but TQM is a philosophy that the organisation adapts and implements throughout the company for a mutual benefit i.e. the companies and customers. The participation of all members of an organisation in improving processes, products, services, and the culture they work in is the basis of TQM. TQM can be viewed as a necessary means to achieve increased sales, reduce costs, and develop a competitive advantage through enhanced product quality (Fig 1 -Deming Chain Reaction) (9). Deming believed that profits are the result of attention to quality and customer satisfaction. In Some instances TQM could also be seen as a key strategy for the organisation's survival. This is particularly true in the case of the motoring industry, where competition is intense and the there is little to tell products apart. The quality some manufacturer's offer over others is the competitive advantage (Jaguar v Ford, where Jaguar will spend more on quality on the end product, Ford will try to give value for money and not exceed customer expectations too much) (6).Figure 1 Deming's Chain...

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