Total Quality Management

QUALITY, DEFINITION IT IS a measure of excellence or a state of being free from defects, deficiencies and significant variations. fitness for use, fitness for purpose, or conformity to requirement( meeting specifications)

 Its important for an organization to manage the

quality of its specifications , suppliers and supply chains and therefore of its materials, components and supplies in order to maintain the quality. The quality of inputs will affect the quality of outputs. Quality management is the process of risk identification and management.

contn
Definition of TQM An effective system for integrating the quality

development, quality maintenance and quality improvement efforts of the various groups in an organisation, so as to enable production and service at the most economic levels which allow for full customer service.

Dimensions of quality
Garvin indentifies 8 main dimensions of quality Performance-the performing x-tics of the product or

delivery of service. Features-aspects such as customer care policy, availability of spare parts and credit facilities. Reliability-ability of a product or service to perform with consistency & certainity over a period of time. Durability-the length of time a product will last without deterioration. Conformance-the degree to which agreed standards are met.

Importance of quality to Firms

Differentiate their products advantageously in relation to

their competitors. Position their brands in the markets as quality brands Develop customer retention and loyalty Comply with law and regulation Avoid the financial and reputational costs of product recalls, returns and customer compensation. QM crucially seeks to avoid the down side risks and costs arising from quality failure while also minimizing costs incurred in the process of ensuring and assuring quality.

Costs of ensuring and assuring quality

Prevention costs eg, quality circles, specifications,

staff training, equipment maintenance, quality engineering ,supplier audits, supplier development Appraisal costs eg costs incurred to ascertain conformance to quality requirements( inspection and testing , quality system audits , vendor rating etc)

Other costs
Internal failure costs: arise from quality failure, where

the problem is identified and corrected before the finished product or service reaches the customer eg scrapping or reworking of faulty items, re inspection of products that have been reworked and corrected, down grading products, waste incurred in holding contingency stocks , time and cost of activities required to establish the causes of failure. External failure costs : costs arising from quality failure indentified and corrected after the product reaches the customer; eg costs of reverse logistics to collect and handle returned products, costs of repairing or replacing defective products, reputation damage, administration costs, customer ,claims for compensation etc

Approaches to quality
Reactive detection approaches Proactive prevention approaches

Quality control

Defect detection Embraces a range of techniques and activities below Inspection, based on sampling

Statistical process control, technique for identifying

the possibility of quality defects thru analysis of process performance using statistical methods eg comparison against expectations, investigations why variations have occurred etc Process for continuous improvement

Quality mgt and quality mgt system

QM; Various online and offline processes used to ensure that the right quality inputs are secured: that products and services conform to specification QMS; set of coordinated activities to direct and control an organisation in order to continually improve the effectiveness and efficiency of its performance.

Importance of QMS
Creates confidence in the organisations customers Helps the oragnisation to achieve the quality

objectives consistently and efficiently Helps in improving staff competence training and morale Quality gains

Principles of quality mgt

Customer focus Leadership Involvement of people

Process approach
Systems approach to mgt Continuous improvement Factual approach to decision making Mutually beneficial supplier relationships

TQM principles

Focus on the customer Quality chains Quality culture Total involvement Quality through people Team based management Get it right first time Process alignment Quality mgt systems Continuous improvement Sharing best practice

Benefits of TQM
No failure costs Customer loyalty hence profitability Quality focused communication and problem solving Encourages integrated internal and external supply chain mgt Creates a strong motivating and guiding organisational culture based on quality values Encourages the education and empowerment of work teams Enables the organisation to differentiate its elf competitively (competitive advantage) on the basis of quality and service.

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Limitations
TQM can be limited in practice Can be disruptive Time consuming , costly and difficult to introduce

and implement.