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https://www.investopedia.com/terms/q/quality-management.
Quality management is the act of overseeing all activities and tasks needed to
maintain a desired level of excellence. Quality management includes the
determination of a quality policy, creating and implementing quality planning
and assurance, and quality control and quality improvement
quality Management
KEY TAKEAWAYS
Quality management is the act of overseeing all activities and tasks needed
to maintain a desired level of excellence.
Quality management includes the determination of a quality policy, creating
and implementing quality planning and assurance, and quality control and
quality improvement.
TQM requires that all stakeholders in a business work together to improve
processes, products, services and the culture of the company itself.
Understanding Quality Management
At its core, TQM is a business philosophy that champions the idea that the
long-term success of a company comes from customer satisfaction and
loyalty. TQM requires that all stakeholders in a business work together to
improve processes, products, services and the culture of the company itself.
While TQM seems like an intuitive process, it came about as a revolutionary
idea. The 1920s saw the rise in reliance on statistics and statistical theory in
business, and the first-ever known control chart was made in 1924. People
began to build on theories of statistics and ended up collectively creating the
method of statistical process control (SPC). However, it wasn't successfully
implemented in a business setting until the 1950s.
It was during this time that Japan was faced with a harsh industrial economic
environment. Its citizens were thought to be largely illiterate, and its
products were known to be of low quality. Key businesses in Japan saw
these deficiencies and looked to make a change. Relying on pioneers in
statistical thinking, companies such as Toyota integrated the idea of quality
management and quality control into their production processes.
By the end of the 1960s, Japan completely flipped its narrative and became
known as one of the most efficient export countries, with some of the most
admired products. Effective quality management resulted in better products
that could be produced at a cheaper price.
Real-World Example of Quality Management
The most famous example of TQM is Toyota's implementation of
the Kanban system. A kanban is a physical signal that creates a chain
reaction, resulting in a specific action. Toyota used this idea to implement its
just-in-time (JIT) inventory process. To make its assembly line more
efficient, the company decided to keep just enough inventory on hand to fill
customer orders as they were generated.
Therefore, all parts of Toyota's assembly line are assigned a physical card
that has an associated inventory number. Right before a part is installed in a
car, the card is removed and moved up the supply chain, effectively
requesting another of the same part. This allows the company to keep its
inventory lean and not overstock unnecessary assets.
Ref.. https://www.cambridgecollege.co.uk/courses/management,-administration,-
leadership/operations-quality-management/