TQM
TQM
Learning Objectives:
Key Concepts:
Learning Objectives:
Key Concepts:
TQM
2. Six Sigma
○ s
● Example: General Electric (GE) adopted Six Sigma to enhance its manufacturing
processes and improve product quality, leading to significant cost reductions and
improvements in customer satisfaction.
3. Lean Management
● Definition: Focuses on creating value by eliminating waste (anything that does
not add value to the product or service). Lean management aims to streamline
processes, reduce waste, and increase efficiency.
● Key Features:
○ Lean Management
Lean management is a process improvement methodology that aims to eliminate
waste and minimize non-value-added activities in a process. It involves identifying the
value stream of a process and optimizing it to improve efficiency and quality.
Lean Management Principles:
▪ Just In Time (JIT): This is another important aspect of lean management, which
involves producing goods or delivering services only when they are needed by
customers.
▪
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● Example: Companies like Toyota and Ford use lean principles to streamline
their production processes, reduce costs, and improve overall efficiency.
4. ISO Standards
Learning Objectives:
Key Concepts:
● Primary Elements of TQM (Mnemonic: FBR-T - Foundation, Bricks,
Recognition, Trust):
○ Foundation: Built on Ethics, Integrity, and Trust.
○ Building Bricks: Leadership, Teamwork, and Training.
○ Recognition: Encourages satisfaction and productivity.
○ Trust: Continuous improvement through communication.
● Core Concepts of TQM (Mnemonic: SCIPMP):
○ S: Customer Satisfaction: Focused on internal and external customer
needs.
○ C: Continuous Improvement: Iterative progress fosters innovation.
○ I: Measurement: Performance measurement drives improvement.
○ P: Prevention: Aim for defect-free results with zero defects policy.
○ M: People Make Quality: Create an environment for quality-focused work.
○ P: Synergy in Teamwork: Collaboration amplifies results.
● Benefits of TQM: (Mnemonic: CCBB - Culture, Customers, Business, Better
Employees)
○ C: Creates a Good Corporate Culture: Customer-centric philosophy.
○ C: Better Reviews from Customers: Enhances loyalty and reputation.
○ B: Better Employee Performance: Training boosts morale and efficiency.
○ B: Business Process Improvement: Drives operational efficiency.
● Comparison:
○ TQM vs. Traditional Management:
■ TQM: Emphasizes collaboration, incremental improvements, and
process quality. Example: Toyota uses Kaizen methodology,
encouraging employees to suggest process improvements and
collaborate to ensure high product quality.
■ Traditional: Focuses on results, often ignoring the quality of
processes. Example: A factory prioritizing production targets over
quality checks, leading to high output but more defects.
○ TQM vs. Reengineering:
■ TQM: Continuous, incremental improvements. Example: A
company like Toyota uses TQM principles to continuously enhance
production efficiency through Kaizen (continuous improvement)
while maintaining consistent product quality.
■ Reengineering: Radical redesign for significant change. Example:
Ford Motors implemented reengineering by replacing its outdated
procurement process with an integrated electronic data system,
reducing costs and improving supplier relationships.
Week 4: Strategic Dimensions of Quality: Total Quality Management (TQM)
Learning Objectives:
Key Concepts:
● Quality is Multi-Dimensional:
○ Definition: Product and service quality comprise several dimensions
determining how customer requirements are met.
○ Evaluating all dimensions helps assess how well services or products fulfill
customer needs.
● Dimensions of Product Quality (Mnemonic: PFRCDSAP):
○ P: Performance - Primary operating characteristics of a product.
■ Example: Smartphone speed or display clarity.
○ F: Features - Added characteristics enhancing a product’s appeal.
■ Example: A smartwatch’s heart rate monitoring feature.
○ R: Reliability - Likelihood of a product functioning without failure.
■ Example: A car with a 5-year warranty.
○ C: Conformance - Degree to which a product meets established quality
standards.
■ Example: Pharmaceutical products meeting FDA specifications.
○ D: Durability - Measure of product life.
■ Example: Durable appliances lasting over a decade.
○ S: Serviceability - Ease of service or repair.
■ Example: Quick and efficient laptop repairs under warranty.
○ A: Aesthetics - How a product looks, feels, sounds, tastes, or smells.
■ Example: Premium design of luxury watches.
○ P: Perceived Quality - Customer perception influenced by brand
reputation.
■ Example: Apple products perceived as high-quality due to their
reputation.
● Dimensions of Service Quality (Mnemonic: TREAS):
○ T: Tangibles - Physical appearance of facilities, equipment, and personnel.
■ Example: Clean and professional-looking hotel staff uniforms.
○ R: Reliability - Ability to deliver promised services dependably and
accurately.
■ Example: A courier service delivering packages on time.
○ E: Empathy - Caring, personalized attention to customers.
■ Example: Nurses addressing patients’ specific concerns
compassionately.
○ A: Assurance - Knowledge and courtesy of employees to inspire trust.
■ Example: Certified mechanics providing car maintenance.
○ S: Responsiveness - Willingness to assist customers and provide prompt
service.
■ Example: Restaurant staff quickly addressing customer complaints.
● Service Quality Gap:
○ Definition: The difference between customers’ expectations and actual
delivery of services.
○ Organizations conduct surveys and research to identify gaps and improve
service delivery.