1.

Total Quality Management (TQM)

A management approach to long-term success through customer satisfaction. All employees

of a company or organization employing a TQM approach participate in improving processes,
products, services, and the culture.

2. 3 Approches to Define Quality

ISO 9000’s definition of quality is “degree to which a set of inherent characteristics fulfils
requirement”.

 Costumer -Based

Consists of the capacity to satisfy wants and the quality of a product depends on how well it
fits patterns of consumer preferences.

 Value-Based

Quality must be achieved in five basic areas: people, equipment, methods, materials and the
environment to ensure customer’s need are met.

 Manufacturing-Based

Concerned primarily with engineering and manufacturing practices and use the universal
definition of “conformance to requirements”.

3. 8 Principles of TQM
a) Customer Focused
No matter what an organization does to foster the quality improvement, upgrading
the system, training employees and etc. The customer who will determine
regarding about the quality level.
b) Total Employee Involvement
Employees should participate in working toward common goals, where can be
obtained by training to increase the performance which lead empowerment
environment.
c) Process-centered
Focus on process thinking, which process take input (suppliers) and transfrom it
into outputs that will be delivered to customer.
d) Integrated System
An integrated system connects business improvement elements in an attempt to
 continually improve and exceed the expectations of customers, employees, and
other stakeholders.
e) Strategic and Systematic Approach
A critical part of the management of quality is the strategic and systematic
approach to achieving an organization’s vision, mission, and goals.
f) Continual Improvement
It drives an organization to be both analytical and creative in finding ways to
become more competitive and more effective at meeting stakeholder expectations.
g) Fact-Based Decision Making
TQM requires that an organization continually collect and analyze data in order to
improve decision making accuracy, achieve consensus, and allow prediction based
on past history.
h) Communication
Effective communications plays a large part in maintaining morale and in
motivating employees at all levels.
4. Customer Satisfaction in Diagram Venn Example

5. Benefits of TQM
A. Market Share Improvement
B. Higher Stock Prices
C. Reduced Service Calls
D. Greater Productivity
 WEEKLY ASSIGNMENT
FINANCIAL STATEMENT ANALYSIS

Melda Putri R (014201805018)

Syahbarudin Cesar (014201805007)
Yenni

Management 2018

President University