Total Quality Management Essay

912 words - 4 pages

As competition in the marketplace becomes fiercer, companies need to find not only attract new customers, but also find ways to maintain current customers. Quality control is one method of doing this. In the realm of quality control total quality management (TQM) is at the forefront of the movement. Companies must choose between a traditional management styles or a quality focused style as the best option for the organizations. Companies such as BridgestoneThe term quality can have many different meanings. Quality can referrer to products characteristics, as in what are the qualities of this item. The term quality can help to distinguish a product above leading competitors. Some consumer hears the term quality and automatically sees a product that performs as it should, meeting all requirements. (Burrill & Ledolter, 1999) If given a choice between different items with one item having the reputation of being superior to the other but costing a little more what item would more likely be chosen based on your return on investment? The higher the perceived quality of a product the more a current or potential consumer is generally willing to pay for that product, due to the perceived return on investment. "A critical relationship exists between the customers' perception of product quality and the price the product can command in the marketplace. The better customers judge the quality of a product relative to its competitors, the more they are will pay for it" (Burrill & Ledolter, 1999).Globalization has allowed companies to do business in countries around the world through limited or reduced tariffs and penalties for doing so. By reducing tariffs companies can import good manufactured in other countries and save money over having the same items manufactured in the Untied States. To help ensure that companies would receive quality goods from outsourced factories the International Organization for Standardization (ISO) was developed. The ISO is a sampling system indexed by lot size ranges, and inspection levels. Acceptance policies are agreed a pone by the consumer and producer that outline the acceptable level of quality, inspection types, and so on before entering into a contract for the production of goods. (Wadsworth, Stephens, & Godfrey, 2002)When operating a centralized or traditional company all changes must be authorized from the main company leadership, little or no decision making authority given to those outside of the upper echelon leadership. A centralized structure can make a company more susceptible to changes in the political economy, culture, and changes in cost, due to the time it can take to react to such changes. Often employees within a centralized organization oftentimes demonstrate lower levels of motivation towards performance, and have little reason or ability for sharing ideas for improvement to the process or organization. (Pieniazek, 2007)A decentralized or quality focased company has fewer...

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