Total Quality Focus on defining quality, dimensions of quality, cost of quality,
ACG021– STRATEGIC and the importance of TQM.
Management
BUSINESS ANALYSIS (TQM):
Learning outcomes include understanding quality perspectives,
dimensions, and significant philosophies of TQM.
Prelim Structured Quality in Daily Life
approach to organizational management. Quality is a constant concern in everyday activities (shopping,
Focuses on improving quality of outputs (goods and services) dining, major purchases).
through continual improvement of internal practices. Quality is desired in products, services, relationships, and overall
Developed in the 1950s by William Deming, influential in Japanese quality of life.
manufacturing.
Involves all departments and functions in quality management. Importance of Quality
Continuous process of detecting and eliminating errors, Quality is crucial for organizational success and customer
streamlining supply chain, improving customer experience, and satisfaction.
employee training. Poor quality can lead to negative experiences and loss of
customers.
Seven Principles of TQM:
1. Customer Focused: Customer feedback determines quality levels. Case Study: Samsung Galaxy Note 7
2. Total Employee Involvement: All employees work towards Example of a major quality failure leading to financial loss and
common goals; requires a supportive environment. safety concerns.
3. Process Centered: Focus on process thinking; monitor Samsung's response included halting production and improving
performance measures to detect variations. quality assurance processes.
4. Integrated System: An organization should have a system that
applies quality management across all functions. Defining Quality
5. Decision Making Based on Facts: Frequent data collection and
Quality is subjective and varies among individuals and contexts.
analysis to improve decision-making accuracy.
Common definitions include customer satisfaction, fitness for use,
6. Strategic and Systematic Approach: Quality is a core component
and conformance to specifications.
of strategic planning.
7. Communication: Effective communication is vital for morale and
Dimensions of Quality
motivation during operations and changes.
Product Quality Dimensions:
Functionality, reliability, usability, maintainability, efficiency, and
Advantages of TQM:
portability.
Defect Reduction: Improves quality within processes, reducing
time and need for quality assurance personnel.
Service Quality Dimensions:
Reliability, assurance, tangibles, empathy, and responsiveness.
Productivity Improvement: Increases output per employee,
leading to higher profits.
Cost of Quality
Cost Reduction: Fewer product defects lead to savings in
Quality Control Costs: Costs incurred to achieve high quality
customer support and product fixes.
(prevention and appraisal costs).
Customer Satisfaction: Better products and services result in
Quality Failure Costs: Costs resulting from poor quality (internal
fewer objections and increased market share.
and external failure costs).
Improved Employee Morale: Success in TQM can enhance
morale, reducing turnover and hiring costs.
Customer Focus
Importance of understanding customer needs and expectations.
Disadvantages of TQM:
Internal customers (employees) and external customers (end-
Requires considerable training, which can temporarily affect costs.
users) play a crucial role in quality perception.
Incremental changes may lead to resistance from employees who
prefer the current system or fear job loss.
Continuous Improvement
Call to Action: Viewers are encouraged to comment on when Quality is a journey, not a destination; organizations must adapt
quality practices should be carried out and to check the
to changing customer needs and preferences.
description for more resources.
Emphasis on striving for 100% quality to avoid significant costs
associated with poor quality.
Conclusion
Quality management is essential for organizational growth,
competitiveness, and customer loyalty.
Introduction to Total Quality Management (TQM)
