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Total Quality Management (or TQM) is a management concept coined by W. Edwards Deming. The basis of TQM is to reduce the errors produced during the manufacturing or service process, increase customer satisfaction, streamline supply chain management, aim for modernization of equipment and ensure workers have the highest level of training. One of the principal aims of TQM is to limit errors to 1 per 1 million units produced. Total Quality Management is often associated with the development, deployment, and maintenance of organizational systems that are required for various business processes.
The definition of quality depends on the role of the people defining it. Most consumers have a difficult time defining quality, but they know it when they see it.For example, although you probably have an opinion as to which manufacturer of athletic shoes provides the highest quality, it would probably be difficult for you to define your quality standard in precise terms. • Fitness for use focuses on how well the product performs its intended function or use. For example, a Mercedes Benz and a Jeep Cherokee both meet a fitness for use definition if one considers transportation as the intended function. However, if the definition becomes more specific and assumes that the intended use is for transportation on mountain roads and carrying fishing gear, the Jeep Cherokee has a greater fitness for use. You can also see that fitness for use is a user-based definition in that it is intended to meet the needs of a specific user group.
Quality does not apply only to the product or service itself. processes. it also applies to the people. but also by the efficiency and accuracy of processing paperwork. If you take the less expensive seminar. a hospital patient may receive average health care. but a very friendly staff may leave the impression of high quality. Different factors contribute to the evaluation. These companies were some of the first to implement a quality program called. Companies that do not make quality a priority risk long-run survival.• Value for price paid is a definition of quality that consumers often use for product or service usefulness. suppose that you wish to sign up for a personal finance seminar and discover that the same class is being taught at two different colleges at significantly different tuition rates. such as the atmosphere of the environment or the perceived prestige of the product. This is the only definition that combines economics with consumer criteria.4 parts per million. .Similarly. For example. For example. Six. and organizational environment associated with it. World-class organizations such as General Electric and Motorola attribute their success to having one of the best quality management programs in the world. where the level of defects is reduced to approximately 3.Sigma. For example. • Psychological criteria is a subjective definition that focuses on the judgmental evaluation of what constitutes product or service quality. Rolex watches and Mercedes-Benz automobiles are examples. you will feel that you have received greater value for the price. we commonly associate certain products with excellence because of their reputation. the quality of a university is judged not only by the quality of staff and course offerings. • Support services provided are often how the quality of a product or service is judged. For example. CONTENTS Today’s customers demand and expect high quality. To achieve this. it assumes that the definition of quality is price sensitive. everyone in the company is trained in quality.
While traditional quality programs have focused on detecting and correcting defects. TQM tries to improve quality by ensuring conformance to internal requirements. due to its high focus on quality.” In fact. the efforts of these organizations have included eliminating almost all defects from products. What Is Six Sigma? Six Sigma is a long-term. Six Sigma encompasses something broader: It provides specific methods to re-create the process itself so that defects are never produced in the first place. improving quality. processes.individuals highly trained in quality improvement principles and techniques receive a designation called “Black Belt. Motorola was one of the first companies to win the prestigious Malcolm Baldrige National Quality Award in 1988. and eliminating defects or mistakes in everything a company does. forward-thinking initiative designed to fundamentally change the way corporations do business. To this end. as well as cost savings in the range of millions of dollars. while Six Sigma focuses on improving quality by reducing the number of defects and impurities. Both GE and Motorola have had a primary goal to achieve total customer satisfaction. . It is first and foremost "a business process that enables companies to increase profits dramatically by streamlining operations. and transactions. TQM and Six Sigma The main difference between TQM and Six Sigma (a newer concept) is the approach. Both companies consider quality to be the critical factor that has resulted in significant increases in sales and market share.
In 1988. While TQM has helped many companies in improving the quality of manufactured goods or services rendered. The award strives to identify those excellent firms that are worthy role models for other businesses. Motorola reversed its fortunes with the Six Sigma strategy instituted by BobGalvin. they smashed the old inspection paradigm. basically. Motorola Corp. Faster Returns on Investment . Six Sigma is. Motorola's Six Sigma Program Facing stiff competition by Japanese manufacturers. became one of the first companies to receive the Malcolm Baldrige National Quality Award. However. One of Motorola's most significant contributions was to change the discussion of quality from one where quality levels were measured in percentages (parts per hundred) to a discussion of parts per million or even parts per billion. One of Motorola's innovations that attracted a great deal of attention was its Six Sigma program. Both Six Sigma and TQM have many similarities and are compatible in varied business environments. Motorola correctly pointed out that modern technology was so complex that old ideas about acceptable quality levels were no longer acceptable.Six Sigma is a relatively new concept as compared to Total Quality Management (TQM). it was not intended to be a replacement for TQM. Motorola's Six Sigma quality program was so radical that it forced managers to think about the business differently. Six Sigma has the potential of delivering even sharper results. As a result. including manufacturing and service industries. a process quality goal. when it was conceptualized. These programs were led by corporate and then institutionalized.
the GE Chairman initiated a huge campaign . Six Sigma's Breakthrough Strategy The Six Sigma's Breakthrough Strategy is a disciplined method of using extremely rigorous data-gathering and statistical analysis to pinpoint sources of errors and ways of eliminating them. Although skeptical at first. no promotion.While Six Sigma is a long-term strategy. could have a profound effect on GE quality. Senior manager's bonuses were tied to Six Sigma results. Welch credits the Six Sigma quality initiative with "changing the DNA of the company". Six Sigma focuses on achieving financial targets in twelve-month increments.to infuse quality in every corner of the company.in the GE Way. GE Jack Welch was told that Six Sigma. Compared to traditional quality management programs such as TQM that project three or more years into the future. it is designed to generate immediate improvements to profit margins too. the quality program pioneered by Motorola. He made quality the job of every employee. All professional level employees were informed that they had to get Six Sigma training or they would not be considered for a promotion – no belt. meaning that it has had a greater impact on the productivity of GE than any other program. Conclusion . a way that had never been done before .
marketing and R & D.Six sigma is also different from TQM in that it is fact based and data driven. result oriented. It is predicted that Six Sigma will outlast TQM as it has the potential of achieving more than TQM. linked to strategy and related to customer requirements. providing quantifiable and measurable bottom-line results. they are often distinct as in Six Sigma. Although many tools and techniques used in Six Sigma may appear similar to TQM. . the focus is on the strategic and systematic application of the tools on targeted projects at the appropriate time. sales. It is applicable to all common business processes such as administration.
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