...Total Quality Management may be defined as “managing the entire organization so that it excels on all dimensions of products and services that are important to the customer” (Mcgraw –Hill 2005, p. 320). Total Quality Management was developed in the 1950’s but became a national concern in the United States in the 1980’s primarily as a response to Japanese quality superiority in manufacturing automobiles and other durable goods such as room air conditioners. Another way to look at it total quality is a description of the approach, values and organization of a company that strives to provide customers with products and services that satisfy their needs. Total Quality Management has two fundamental operational goals, making sure that the design of the product or service is done correctly and ensuring that the design or service has consistency. In order to successfully implement TQM, an organization must concentrate on the eight key elements: * Executive Management – Top management should act as the main driver for TQM and create an environment that ensures its success. * Training – Employees should receive regular training on the methods and concepts of quality. * Customer Focus – Improvements in quality should improve customer satisfaction. * Decision Making – Quality decisions should be made based on measurements. * Methodology and Tools – Use of appropriate methodology and tools ensures that non-conformances are identified, measured and responded to...
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...Total Quality Management is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company’s operations, with processes being done right the first time and defects and waste eradicated from operations. Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company. TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives. TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is “Do the right things, right the first time, every time.” TQM is infinitely variable and adaptable. Although originally...
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...1A. TQM Total quality management (TQM) is an improvement program which provides tools and techniques for continuous improvement based on facts and analysis; and if properly implemented, it avoids counterproductive organizational infighting. The most popular approach to continuous improvement is known as total quality management (TQM). There are two major characteristics of total quality management (TQM) a focus on serving customers and systemic problem solving teams made up of front line workers. Benefits Total Quality Management: * Strengthened competitive position * Adaptability to changing or emerging market conditions and to environmental and other government regulations * Higher productivity * Enhanced market image * Elimination of defects and waste * Reduced costs and better cost management * Higher profitability * Improved customer focus and satisfaction * Increased customer loyalty and retention * Increased job security * Improved employee morale * Enhanced shareholder and stakeholder value * Improved and innovative processes Advantages of Total Quality Management: * Improves reputation- faults and problems are spotted and sorted quicker * Higher employee morale– workers motivated by extra responsibility, team work and involvement in decisions of TQM * Lower costs – Decrease waste as fewer defective products and no need for separate * Quality Control inspectors (Quay,2012) Lean Manufacturing ...
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...attracted a flurry of book, articles, and seminars; others have been completely discredited. Businesses have realized that there is a need to restructure their business practices and become more customer-focused. All recent business approaches and techniques have generally aimed at improving performance, increasing profits, gaining market share, and most importantly satisfying the customer who has become more educated and more demanding than ever. In the last two decades two organizational development models have dominated the business world for a considerable period of time namely Total Quality Management (TQM) and Business Process Reengineering (BPR). Statement of Objective This paper aims to shed a novel light on the two most recent and prominent management approaches, namely TQM and BPR. In an attempt to examine the interaction between radical BPR and incremental TQM with respect to change management, I shall briefly discuss the two constructs and contemplate the roots and basic tenets that underlie each. BPR has been referred to in the literature as “the successor” of TQM and has been treated as an equal. I shall treat the similarities and common grounds among the two, as well as the differences between them. Next, I shall touch upon the weaknesses and highlights that distinguish each, and then move on to construct an integrated model in an attempt to reconciliate the two “opposing camps”. In this model, BPR cannot withstand, but be an integrated part of the more comprehensive...
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...TOTAL QUALITY MANAGEMENT (Topic Review Question) Topic 2: Quality and Competitiveness Advantage 1. Explain how a total quality perspective can support the six characteristics of competitive advantage introduced at the beginning of chapter. Total quality is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its product, services, people, process and environment. All the six characteristics of competitive advantage have similarity with total quality where both have the same goals which is to views continuous improvement. Competitive advantage is a firm’s ability to achieve market superiority over its competitors. One of six characteristics of competitive advantage is driven by customer want and needs where company provide value to its customers that competitor do not. 2. Discuss the three basic types of competitive advantage. Can a company achieve all of them? Competitive advantage is a business concept describing attributes that allow an organization to outperform its competitors and company can achieve all of them. There are three types of competitive advantage: Cost Leadership: The goal of cost leadership strategy is to offer products or services at the lowest in the industry. The challenge of this strategy is to earn a suitable profit for the company, rather than operating at loss and draining profitability from all market players. To achieve this, company will emphasize...
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...Introduction - Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service, by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage. A manager’s decision-making process regarding new or increased international operations involves reacting to the environment, seeking competitive advantage globally and assessing the company’s capability in the global context. Globalization makes managers ask certain questions. These questions include: ‘Must we be more International’? ‘Are we capable of becoming more international?’ ‘How can we improve capability’? ‘What opportunities should we pursue?’ This sort of questioning which globalization creates will enable the firm to identify specific weak areas and/or general lack of strength. The focus now shifts to expansion. These might include things like internal changes as well as linkages with other organizations that help provide the desired result. Therefore, the options or strategic plans must be selected with caution. Globalization makes management assess the costs and benefits of various possible modes of entry into the global market. In general, the choices can be seen as ranging from no ownership in foreign locations, to joint...
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...regarding Total Quality Management (QTM). I will outline and analysis how it has introduced and developed a complete system of TQM management. I will research quality control, lean manufacturing, ISO 9000, Six Sigma and a customer focused culture. Also I will discuss if Total Quality Management (QTM) has been carried out successfully from the organisations and talk of the impact it has to the organisations on my conclusions. What is Quality? For a lot of, quality proposes the advantage of design, materials, or workmanship in a manufactured goods or facility. You strength contemplate of high-end products comparable Mercedes, Gucci, or even Apple. Though, quality is energetic to each commercial, even if the target client is by the low-end or form market. “Dr. W. Edwards Deming, innovator of quality development approaches, speaks that the client's meaning of quality is the lone one and only that substances. Consequently, what must quality define to you?” In place of centuries, Ford Motor Business needs repeated us: Quality is job one. The situation actually must be the goalmouth for altogether of us. Promise to quality reproduces our individual standards and eventually controls whether we can contest in the willing of commercial. Consumers are the last justice. Occupational decision-making Jack Welch, supposed, “The worth period is upon us. If you can't vend top-quality manufactured goods at the bottommost value, you're working to be out of the game.” Better-quality consumer...
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...of a TQM orientation. However, customer satisfaction, continuous improvement, and teamwork frequently are cited as core factors for TQM (Dean & Bowen, 1994; Morrow, 1997). However, Reed and Lemak (1998) expanded this to include empowerment and statistical process control, at the same time recognizing continuous improvement as one of the central TQM doctrines. For employees, a significant aim of TQM is the broadening of work responsibilities. The adoption of TQM requires employees to reconceptualize the boundaries of their jobs, reshape their attitudes toward quality, and engage in new behaviors. In essence, TQM blurs the boundary between previously defined in-role and extra-role behavior such that what were considered discretionary functional activities now become part of an individual's job, which he or she is expected to fulfill in a TQM environment. Waldman (1994) argued that work responsibilities in a quality culture would include "accomplishing tasks and taking initiatives above and beyond the call of duty, and sharing information with and helping co-workers" (p. 515). In terms of the key principles of TQM, employees are required to have a customer-focused orientation and develop attitudes and behaviors that reflect a commitment to customer service; a pervasive emphasis on collaboration and cooperative efforts between individuals and groups within organizations (Stone-- Romero & Stone, 1998), requiring an individual to develop a collectivist orientation and to engage...
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...Total Quality Management: A Continuous Improvement Process Introduction In order to comprehend the need for improvement in the construction industry and to better manage our projects and construction companies, we need to look for a method to do so. Construction managers need to improve their performance. Construction costs are becoming far too high. Construction project management is more difficult than it should be. When turnaround at the end of a project becomes a gut-wrenching experience with unnecessary disputes (which must be settled) that arise due to insufficient quality or indifference to quality, settlement by negotiation, arbitration, or even litigation imposes a serious drain on the financial resources of a company and limits profit potential. To be competitive in today’s market, it is essential for construction companies to provide more consistent quality and value to their owners/customers. Now is the time to place behind us the old adversarial approach to managing construction work. It is time to develop better and more direct relationships with our owners/customers, to initiate more teamwork at the jobsite, and to produce better quality work. Such goals demand that a continuous improvement (CI) process be established within the company in order to provide quality management. Ancient Greeks referred to the concept of continuous improvement as well as the Chinese. Recently CI has been referred to as Total Quality Management (TQM). Whichever name is preferred, the...
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...Total quality management in production: In pharmaceutical factory raw material arrives at the warehouse where it is stored in clean environment Basically there are two types of raw material is used in the production they are: 1) Inactive raw material 2) Active raw material Inactive and active Raw Material: Inactive raw material is used to increase the mass of the medicine .This material does not causes any effect on illness or disease. It increases the size of the tablet in order to make it digestible. On the other hand active raw material is used for illness and therapy. In pharmaceutical industry raw material is imported from foreign countries. At he time when raw material is stored in warehouse a sticker named quarantine is displayed on it in order to show that it has not undergone any treatment. Before production begins a sample is drawn from quarantine material which is passed from tests at quality assurance if it passes the test an analysis number is allotted on it. After this line clearance which is given by quality assurance that the material is available for production. Quality assurance chemists and pharmacists check the temperature and humidity in the production areas where machinery is situated along with all others, quality assurance gives line clearance to start the production and quality control department will check it at every stage. Two standards of productions are implemented during the whole production process i.e. USP (United States Pharmacopeia)...
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...| 2012 | | [Type the company name] | [Total Quality Management] | | What is Total Quality Management (TQM)? TQM is a management strategy that attempts to maximize the competitiveness of a organization through continual improvement of quality in its products and services. The ultimate goal is to increase customer satisfaction. They premise in this method is that everyone involved is the responsibility of everyone involved in the process; this includes management, workforce, suppliers and even customers. [ (Wikipedia, 2012) ] We will examine two test cases and examine how TQM can help them improve. We will examine their failures and examine how TQM would help them overcome them. In the book “Out of the Crisis”, by Dr Deming he points out fourteen points that manager must use in order to follow a successful TQM strategy. They are: 1) Create constancy of purpose for improvement of product and service. Management must change from a preoccupation with the short run to building for the long run. This requires dedication to innovation in all areas to best meet the needs of citizens or clients. 2) Adopt the new philosophy. Americans have been too tolerant to poor performance and sullen service. We need a new philosophy in which mistakes and negativism is unacceptable. 3) Cease dependence on mass inspection. Inspection is equivalent to planning for defects; it comes too late, and it is ineffective and costly. Instead, processes must be improved. 4) End the...
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...Operations Management Total Quality Management 12/09/2011 Contents Abstract 1. The concept and nature of TQM 2. Evolution of approaches to Quality Management 3. TQM implementation 4. Advantages of TQM 5. Summary 6. Conclusion Abstract The quality problem is one of the most actual problems in the world now and interest in it is growing steadily. This is due to the fact that the quality of products determines the priorities in the market, economic security and provides a sustainable development of the environment, human health and welfare. The intention to stimulate the production of goods competitive on international markets has initiated the emergence of a new organization-wide method of continuous quality, production and processes improvement. This method is called Total Quality Management (TQM). And when talking about the quality systems and methods to improve it, it is impossible to bypass it. In the nearest future those countries that can provide not only the highest productivity of social labor, but also high quality and competitiveness of their national industry products will be in a better position. And this is a direct path to a prosperous economy and a decent standard of living. 1. The concept and nature of TQM “We are moving into an economy, where the greatest value is in the recipes rather than the cakes” (Charles Leadbeater, Living on thin air) Most analysts give this definition of TQM - “Total Quality...
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...TEKNOLOGI MARA, SHAH ALAM FACULTY OF BUSINESS MANAGEMENT MASTERS OF BUSINESS ASMINISTRATION (BM 770) MANAGERIAL ACCOUNTING (ACC 770) INDIVIDUAL ASSIGNMENT: CONTEMPORARY MANAGERIAL ACCOUNTING (CONCENTRATION AREA: TOTAL QUALITY MANAGEMENT) PREPARED BY: STUDENT ID.: PREPARED FOR: NURWAHIDA BT. MOHD. YAAKUB 2009782101 DR. AZIZAH BT. ABDULLAH SUBMISSOION DATE: 10 FEBRUARY 2010 Table of Contents Contents Chapter One: Introduction to Contemporary Managerial Accounting Concepts 1. 2. Value Chain a. Just in Time (JIT) b. Total Quality Management (TQM) c. Theory of Constraints 3. 4. 5. 6. 7. 8. 9. Target Costing Kaizen Costing Life Cycle Costing (LCC) Pricing Methods Uses and Limitations of Cost-Based and Market-Based Pricing Factors Affecting Prices Pricing Models for Not-for-Profit Organizations 3 4 5 5 6 7 8 9 10 11 11 Page Chapter Two: Total Quality Management (TQM) – an Introduction and Its Applications Chapter Three: Conclusion Appendix 1: References 12 23 CHAPTER ONE: INTRODUCTION TO CONTEMPORARY MANAGERIAL ACCOUNTING CONCEPTS Over the years, the managerial accounting practices had evolved. From the traditional costing method, many firms now have adopted the contemporary managerial practices to achieve better product costing and manufacturing processes. There are many contemporary managerial accounting in practice, some of them being Value Chain, Just-In-Time (JIT) Manufacturing, Total Quality Management (TQM) and the Theory of Constraints (TOC). All...
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...IMPLEMENTING TOTAL QUALITY MANAGEMENT IN CONSTRUCTION FIRMS A Reaction Paper Presented to Dr. Melito Baccay Faculty, MSCM - Graduate School University of the East – Manila Recto, Manila In Partial Fulfillment of the Requirements for the Course WE 500 – Works Engineering Clifford T. Badongen 14 January 2012 The assigned reading had given a broad and well-defined perspective on Total Quality Management (TQM) that is applicable in the construction industry. Based on the article, I can say that Quality Management is somehow already inherent with the processes we’re having in our work. However, Total Quality Management differs because it requires the whole system of the processes in our organization. Moreover, upon reading, I must say that TQM is very similar to the ISO (International Organization of Standardization), of which I am involved in our organization. I think, ISO is more of a program to help you with the management process while TQM is not only a program but also helps you become involved in the whole process in the proper manner. ISO demands more sophisticated data analysis while TQM helps you with your management needs in a more practical manner. In the construction industry, all parties involved would agree that quality is a must Implementing Total Quality Management (TQM) is a set of processes in nature – each of the four words having its own definition that...
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...Chapter - 1 Concept of Quality and TQM Dr. Shyamal Gomes “Quality is not an art, it is a habit” - Aristotle Introduction: Till 300 years ago, people used the power of their own muscles, animals or the force of wind and flowing water to do all works. With the invention of the ‘steam engine’ they got a powerful method of running their machines. This provided a tremendous boost to Industry. Goods started getting produced in larger quantities using machines. This led to the beginning of the factory system. The significant change from handmade goods to machine-made goods, which began in Britain in 18th century, is known as the Industrial Revolution. Why it was called Revolution? Because of the large scale changes it brought about our economy, society and culture. IR soon spread to other nation like Germany, France, Portugal. As these countries became industrialised, they needed two things: 1. Raw materials for manufacturing and 2. New markets to sell the goods they made. They found both raw materials as well as new markets to sell their goods in the nonindustrialised countries of Asia and Africa. So they started annexing to meet the needs of their new factories. Soon they became jealous of each other, and wanted their own empires to grow. They started fighting among themselves. This finally led to a great war in which several nations of the world were involved. It came to be known as World War- I (August 1914-1918). Millions of soldiers and other people were killed or wounded...
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