TOTAL QUALITY MANAGEMENT

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TOTAL QUALITY MANAGEMENT

• Nakia Madry
• Katerina Stecova

Krajewski, L. and Ritzman L. (2002). Operations
Management Strategy and Analysis. 6th Ed. Upper
Saddle River, NJ Pearson Education, Inc.
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Presentation Outline

• Background Information
• Customer Satisfaction
• Employee Involvement
• Continuous Improvements
• Improving Quality through TQM
• Awards and Standards
• Example
• Questions

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Background Information

• Challenge for Businesses
• Producing quality products or services
• TQM History (1970s)
• Japan
• Edward Deming
• Joseph Juran
• TQM Definition
• A philosophy that stresses customer satisfaction,
  employee involvement, and continuous improvements
  in quality. TQM also involves benchmarking,
  product and service design, process design,
  purchasing, and problem solving tools.

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Background Information (contd)
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Customer Satisfaction

• Conformance to Specifications
• Quality if online order comes within specified
  delivery time
• Value
• Quality if a 2 pen serves for a year
• Fitness for Use
• Quality if it was easy to assemble a desk and
  if it served well
• Support
• Quality computer repair free of charge
• Psychological Impressions
• Quality nicely dressed, friendly and
  sympathetic employees

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Employee Involvement

• Cultural Change
• Defining customer for each employees
• Philosophy of quality at source
• Teams
• Problem-solving teams
• Special purpose teams
• Self managing teams
• Individual Development
• Training
• New work methods to experienced workers
• Current practices to new workers

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Continuous Improvement

• Steps for Achieving Continuous Improvement
• Train employees in the methods of statistical
  process control (SPC)
• Make SPC methods a normal aspect of daily
  operations
• Build work teams and employee involvement
• Utilize problem-solving tools within the work
  teams
• Develop a sense of operator ownership in the
  process

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Quality Improvement through TQM

• Purchasing Considerations
• Firms quality depends on suppliers quality
• Product/Service Design
• Testing of new design with focus on market
• Process Design
• Cooperation of operation managers and designers
• Benchmarking
• Measuring against industry leaders
• Problem-Solving Tools
• Data analysis tools

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Quality Awards and Standards

• Malcom Baldridge National Quality Award
• The award promotes, recognizes, and publicizes
  quality strategies and achievements
• Recipients IBM, 3M, Federal Express, Merrill
  Lynch
• ISO 9000
• A set of standards governing documentation of a
  quality program
• ISO 14000
• Documentation standards that required
  participating companies to keep track of their
  raw materials use and their generation,
  treatment, and disposal of hazardous waste

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Example

• Parkroyal Hotel, New Zealand
• Luxury hotel with 297 guest rooms, three
  restaurants, three lounges, and 338 employees
  serving 2,250 guests each week who purchase 2,450
  meals
• High-level of quality is sustained through
• Empowering employees
• Tracking performance and identifying areas
  needing improvement
• Reminding employees of quality standards
• Employee recruiting, training, and motivation

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Questions