ZeePedia buy college essays online


Introduction to Business

<<< Previous TOTAL QUALITY MANAGEMENT (continued):Tools for Total Quality Management Next >>>
 
img
Introduction to Business ­MGT 211
VU
Lesson 38
TOTAL QUALITY MANAGEMENT (continued)
Definition --- As defined by ISO:
"TQM is a management approach for an organization, centered on quality, based on the
participation of all its members and aiming at long-term success through customer satisfaction,
and benefits to all members of the organization and to society."
In Japanese, TQM comprises four process steps, namely:
1. Kaizen ­ Focuses on Continuous Process Improvement, to make processes visible,
repeatable and measurable.
2. . Atarimae Hinshitsu ­ Focuses on intangible effects on processes and ways to
optimize and reduce their effects.
3. Kansei ­ Examining the way the user applies the product leads to improvement in the
product itself.
4. Miryokuteki Hinshitsu ­ Broadens management concern beyond the immediate
product.
TQM requires that the company maintain this quality standard in all aspects of its business.
This requires ensuring that things are done right the first time and that defects and waste are
eliminated from operations.
Origins --- Although W. Edwards Deming is largely credited with igniting the quality revolution
in Japan starting in 1946 and trying to bring it to the United States in the 1980s,
Armand V. Feigenbaum was developing a similar set of principles at General Electric in the
United States at around the same time. "Total Quality Control" was the key concept of
Feigenbaum's 1951 book,
Quality Control: Principles, Practice, and Administration, a book that was subsequently
released in 1961 under the title, Total Quality Control (ISBN 0-07-020353-9). Joseph Juran,
Philip B. Crosby, and Kaoru Ishikawa also contributed to the body of knowledge now known as
TQM.
The American Society for Quality says that the term Total Quality Management was first used
by the U.S. Naval Air Systems Command "to describe its Japanese-style management
approach to quality improvement."
This is consistent with the story that the United States Department of the Navy Personnel
Research and Development Center began researching the use of statistical process control
(SPC); the work of Juran, Crosby, and Ishikawa; and the philosophy of Deming to make
performance improvements in 1984. This approach was first tested at the North Island Naval
Aviation Depot. In his paper, "The Making of TQM: History and Margins of the Hi (gh)-Story"
from 1994, Xu claims that "Total Quality Control" is translated incorrectly from Japanese since
there is no difference between the words "control" and "management" in Japanese.
William Golimski refers to Koji Kobayashi, former CEO of NEC, being the first to use TQM,
which he did during a speech when he got the Deming prize in 1974.
137
img
Introduction to Business ­MGT 211
VU
TQM in manufacturing --- Quality assurance through statistical methods is a key component
in a manufacturing organization, where TQM generally starts by sampling a random selection
of the product. The sample can then be tested for things that matter most to the end users.
The causes of any failures are isolated, secondary measures of the production process are
designed, and then the causes of the failure are corrected. The statistical distributions of
important measurements are tracked. When parts' measures drift into a defined "error band",
the process is fixed. The error band is usually a tighter distribution than the "failure band", so
that the production process is fixed before failing parts can be produced. It is important to
record not just the measurement ranges, but what failures caused them to be chosen. In that
way, cheaper fixes can be substituted later (say, when the product is redesigned) with no loss
of quality. After TQM has been in use, it's very common for parts to be redesigned so that
critical measurements either cease to exist, or become much wider.
It took people a while to develop tests to find emergent problems. One popular test is a "life
test" in which the sample product is operated until a part fails. Another popular test is called
"shake and bake", in which the product is mounted on a vibrator in an environmental oven,
and operated at progressively more extreme vibration and temperatures until something fails.
The failure is then isolated and engineers design an improvement.
A commonly-discovered failure is for the product to disintegrate. If fasteners fail, the
improvements might be to use measured-tension nut drivers to ensure that screws don't come
off, or improved adhesives to ensure that parts remain glued. If a gearbox wears out first, a
typical engineering design improvement might be to substitute a brushless stepper motor for a
DC motor with a gearbox. The improvement is that a stepper motor has no brushes or gears to
wear out, so it lasts ten or more times as long. The stepper motor is more expensive than a
DC motor, but cheaper than a DC motor combined with a gearbox. The electronics are
radically different, but equally expensive. One disadvantage might be that a stepper motor can
hum or whine, and usually needs noise-isolating mounts.
Often, a "TQMed" product is cheaper to produce because of efficiency/performance
improvements and because there's no need to repair dead-on-arrival products, which
represents an immensely more desirable product.
TQM and contingency-based research --- TQM has not been independent of its
environment. In the context of management accounting systems (MCSs), Sim and Killough
(1998)s how that incentive pay enhanced the positive effects of TQM on customer and quality
performance. Ittner and Larcker (1995) demonstrated that product focused TQM was linked to
timely problem solving information and flexible revisions to reward systems. Chendall (2003)
summarizes the findings from contingency-based research concerning management control
systems and TQM by noting that "TQM is associated with broadly based MCSs including
timely, flexible, externally focused information; close interactions between advanced
technologies and strategy; and non-financial performance measurement." (p.143)
TQM, just another --- Management fad ?
Abrahamson (1996) argued that fashionable management discourse such as Quality Circles
tends to follow a lifecycle in the form of a bell curve. Ponzi and Koenig (2002) showed that the
same can be said about TQM, which peaked between 1992 and 1996, while rapidly losing
popularity in terms of citations after these years. Dubois (2002) argued that the use of the term
TQM in management discourse created a positive utility regardless of what managers meant
by it (which showed a large variation), while in the late 1990s the usage of the term TQM in
implementation of reforms lost the positive utility attached to the mere fact of using the term
and sometimes associations with TQM became even negative. Nevertheless, management
concepts such as TQM leave their traces, as their core ideas can be very valuable. For
138
img
Introduction to Business ­MGT 211
VU
example, Dubois (2002) showed that the core ideas behind the two management fads
reengineering and TQM, without explicit usage of their names, can even work in a synergistic
way.
Tools for Total Quality Management
Competitive product analysis -- Process by which a company analyzes a competitor's
products to identify desirable improvements.
Value-Added Analysis -- process of evaluating all work activities, materials flows, and
paperwork to determine the value they add for customers.
Statistical Process Control -- methods for gathering data to analyze variations in production
activities to see when adjustments are needed.
i.
Process Variation­variation in products arising from changes in
production inputs.
ii.
Control Chart­process of checking production periodically by plotting
the results, to determine when a process is beginning to depart from
normal operating conditions.
Quality/Cost Studies -- studies identifying a firm's current costs as well as the areas with the
largest cost-savings potential.
i.
Internal Failures--reducible costs incurred during production and
before bad products leave a plant.
ii.
External Failures--reducible costs incurred after defective products
have left a plant.
Quality Improvement Teams -- TQM tool in which groups of employees work together to
improve quality by meeting regularly to define, analyze, and solve common production
problems to improve both work methods and the products they make.
139
Table of Contents:
  1. INTRODUCTION:CONCEPT OF BUSINESS, KINDS OF INDSTRY, TYPES OF TRADE
  2. ORGANIZATIONAL BOUNDARIES AND ENVIRONMENTS:THE ECONOMIC ENVIRONMENT
  3. BUSINESS ORGANIZATION:Sole Proprietorship, Joint Stock Company, Combination
  4. SOLE PROPRIETORSHIP AND ITS CHARACTERISTICS:ADVANTAGES OF SOLE PROPRIETORSHIP
  5. PARTNERSHIP AND ITS CHARACTERISTICS:ADVANTAGES AND DISADVANTAGES OF PARTNERSHIP
  6. PARTNERSHIP (Continued):KINDS OF PARTNERS, PARTNERSHIP AT WILL
  7. PARTNERSHIP (Continued):PARTNESHIP AGREEMENT, CONCLUSION, DUTIES OF PARTNERS
  8. ORGANIZATIONAL BOUNDARIES AND ENVIRONMENTS:ETHICS IN THE WORKPLACE, SOCIAL RESPONSIBILITY
  9. JOINT STOCK COMPANY:PRIVATE COMPANY, PROMOTION STAGE, INCORPORATION STAGE
  10. LEGAL DOCUMENTS ISSUED BY A COMPANY:MEMORANDUM OF ASSOCIATION, CONTENTS OF ARTICLES
  11. WINDING UP OF COMPANY:VOLUNTARY WIDNIGN UP, KINDS OF SHARE CAPITAL
  12. COOPERATIVE SOCIETY:ADVANTAGES OF COOPERATIVE SOCIETY
  13. WHO ARE MANAGERS?:THE MANAGEMENT PROCESS, BASIC MANAGEMENT SKILLS
  14. HUMAN RESOURCE MANAGEMENT:Human Resource Planning
  15. STAFFING:STAFFING THE ORGANIZATION
  16. STAFF TRAINING & DEVELOPMENT:Typical Topics of Employee Training, Training Methods
  17. BUSINESS MANAGERíS RESPONSIBILITY PROFILE:Accountability, Specific responsibilities
  18. COMPENSATION AND BENEFITS:THE LEGAL CONTEXT OF HR MANAGEMENT, DEALING WITH ORGANIZED LABOR
  19. COMPENSATION AND BENEFITS (Continued):MOTIVATION IN THE WORKPLACE
  20. STRATEGIES FOR ENHANCING JOB SATISFACTION AND MORALE
  21. MANAGERIAL STYLES AND LEADERSHIP:Changing Patterns of Leadership
  22. MARKETING:What Is Marketing?, Marketing: Providing Value and Satisfaction
  23. THE MARKETING ENVIRONMENT:THE MARKETING MIX, Product differentiation
  24. MARKET RESEARCH:Market information, Market Segmentation, Market Trends
  25. MARKET RESEARCH PROCESS:Select the research design, Collecting and analyzing data
  26. MARKETING RESEARCH:Data Warehousing and Data Mining
  27. LEARNING EXPERIENCES OF STUDENTS EARNING LOWER LEVEL CREDIT:Discussion Topics, Market Segmentation
  28. UNDERSTANDING CONSUMER BEHAVIOR:The Consumer Buying Process
  29. THE DISTRIBUTION MIX:Intermediaries and Distribution Channels, Distribution of Business Products
  30. PHYSICAL DISTRIBUTION:Transportation Operations, Distribution as a Marketing Strategy
  31. PROMOTION:Information and Exchange Values, Promotional Strategies
  32. ADVERTISING PROMOTION:Advertising Strategies, Advertising Media
  33. PERSONAL SELLING:Personal Selling Situations, The Personal Selling Process
  34. SALES PROMOTIONS:Publicity and Public Relations, Promotional Practices in Small Business
  35. THE PRODUCTIVITY:Responding to the Productivity Challenge, Domestic Productivity
  36. THE PLANNING PROCESS:Strengths, Weaknesses, Threats
  37. TOTAL QUALITY MANAGEMENT:Planning for Quality, Controlling for Quality
  38. TOTAL QUALITY MANAGEMENT (continued):Tools for Total Quality Management
  39. TOTAL QUALITY MANAGEMENT (continued):Process Re-engineering, Emphasizing Quality of Work Life
  40. BUSINESS IN DIGITAL AGE:Types of Information Systems, Telecommunications and Networks
  41. NON-VERBAL COMMUNICATION MODES:Body Movement, Facial Expressions
  42. BUSINESS ORGANIZATIONS:Organization as a System
  43. ACCOUNTING:Accounting Information System, Financial versus Managerial Accounting
  44. TOOLS OF THE ACCOUNTING TRADE:Double-Entry Accounting, Assets
  45. FINANCIAL MANAGEMENT:The Role of the Financial Manager, Short-Term (Operating) Expenditures