U5 Flashcards
Total quality management
TQM “is defined both as a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization”
Product quality is essential for?
T
satisfied customers. Yet, there are other ways that firms can add customer value.
Total quality management (TQM) is?
an approach with more impact than concern about products in production.
Firms that adapt TQM establish ?
a culture in which quality is essential .
TQM began to develop in the 1980s when local, state, and federal agencies started to look into?
quality improvement in the form of TQM.
QM focuses on processes in?
like Coca-Cola, The 3M Company, and Nordstrom Inc.,
organizations that should be done right the first time.
The idea was promoted in the UK by ?
the UK Department of Trade and Industry
Today, many well-known companies, focus on TQM
like Coca-Cola, The 3M Company, and Nordstrom Inc.
To successfully stay on the market, firms need to do more than?
fulfill customer desires and make a profit.
Firms are advised to have a more global view on ————————–.
quality
image
Quality needs can be depicted in the hierarchy of customer quality needs, which has ?
three levels.
The hierarchy links TQM to —————-and the ISO ——————-.
awards
norms
At level 1, ISO 9001 :
-addresses quality assurance
-and focuses on conforming to customer requirements,
- a line of thought that arose in the early stages of quality control in the twentieth century (e.g., Garvin, 1984) to prevent customer dissatisfaction by eliminating failure .
Level 2 addresses?
issues of quality management that are specified in ISO 9004.
The third level has a much broader view on ?
strategic quality management.
It addresses TQM and focuses on?
total customer satisfaction,
:
involved employees,
a long-term,
strategic focus,
and customer-driven product and process designs.
which is achieved by ?
-involved employees,
-a long-term,
-strategic focus,
-and customer-driven product and process designs.
TQM usually uses?
quality awards as a point of reference.
Davos Manifesto
This document was created by the participants of the 1973 World Economic Forum in Davos. It emphasizes the importance the firm’s stakeholders.
Firms must recognize the demands of all stakeholders. In business management, different stakeholders who may have an interest in the organization, e.g., ———————————————————————————————————–.
customers,
business partners,
employees,
shareholders,
and the public
This type of thinking was captured in the ——————————–, which changed ethics in management.
Davos Manifesto
TQM is a management approach that ?
builds on the Davos Manifesto and took the previously mentioned stakeholders as a basis for its concept.
TQM was originally used in ——————and has spread into more management fields.
manufacturing
It can be seen as ?
a management tool applied in different sectors, like in the public sector or manufacturing, as well as the service industry
TQM as a new and comprehensive management approach shows firms a way to?
satisfy different stakeholders
In the 1990s, skeptics argued that?
TQM did not mean the same thing to different stakeholders.
Firms have different customers and may operate in times of ———————-.
uncertainty
The implementation of TQM in the public sector was seen as?
especially problematic because the type of “product” the government offered was unclear (TQM originates from manufacturing).
The main idea of TQM is therefore to create sustainable profit and a sense of responsibility toward all stakeholders of the firm?
because they are interdependent
The transition from quality management to TQM is ?
the transition from product to corporate quality
TQM is defined as?
“a set of systematic activities carried out by the entire organization to effectively and efficiently achieve the organization’s objectives so as to provide products and services with a level of quality that satisfies customers, at the appropriate time and price”
According to Luthra et al. (2021, p. 18), TQM can be broken down into parts:
“total [is] made of the whole”
“quality [is the] degree of excellence of product\/service provider”
“management [is the] art of handling, controlling, and directing”
“Total” refers to ?
including all employees in the process, where they are empowered to take an active role
TQM is a company-wide initiative dedicated to?
continuous improvement in all areas of the firm’s operations, from development to maintenance
It thus includes all of a firm’s departments,like :
marketing,
human resources,
finance,
engineering,
design,
and customer service .
All employees, regardless of department and level, are included, even those people who only have ———————- for their processes.
internal customers
“Quality” is linked to ?
continuous improvement.
Everybody in the firm needs to have a positive attitude, ————————that internal and external customers are important, and ——————that everyone can impact a firm’s offering.
understand
accept
Anyone who makes a suggestion for improvement should be?
rewarded for their good idea.
In essence, TQM is about maximizing?
“external customer satisfaction by involving all employees, regardless of their function, in efforts to continually improve quality”
Even if internal customers are served, employees need to understand the following four principles:
==Fellow employees who receive work are customers.
==To do a good job, meeting employee needs is critical.
==Receiving feedback from fellow employees is important.
==When someone receives work, it is necessary to focus on their requirements.
To involve all employees, “management” is necessary to ?
an environment and processes.
The TQM model shows that TQM brings together three main components of quality:
=statistical process tools,
=a system like a QMS or ISO 9000,
=and quality circles, which are conducted in teams.
How successful TQM is depends on ?
the firm’s implementation.
TQM is based on——————————-, as depicted in the TQM model in the figure below.
several principles
The graph shows that the processes revolving around the customer and suppliers are central processes in TQM. Therefore,?
good communication is important.
The tools (e.g., statistical process control) help?
the quality management systems to work.
Yet, commitment among senior management is necessary to?
get the whole team involved and TQM to succeed.
The culture in the organization must support the ?
TQM approach
image
Luthra et al. (2021, p. 19) also emphasize the importance of three similar principles of TQM: ?
management commitment,
employee empowerment,
and customer focus.
First, commitment is required in all phases of the process (plan, do, check, act). Especially in?
the planning phase, it is crucial for managers to develop momentum and direct the team.
In the implementation phase, managers should?
offer support and participate in the processes themselves where necessary.
In the next phase, managers should ?
review the processes together with their team;
when acting is necessary, managers should also?
recognize the need for change, communicate with the team, and revise the process.
Second, managers should encourage employee empowerment. To achieve team excellence, they should?
train employees, measure their performance, and recognize achievements.
A cross-functional view on process management helps to focus on a common goal. Thus?
, managers should attain, maintain, and improve quality standards.
Third, managers need to have ?
the customers in focus and should never compromise quality.
In addition, they should emphasize to their team that ?
good service relationships, even with internal customers in process management, is essential for TQM
The following figure summarizes the TQM principles.
image
Benefits of TQM Implementation?
xIf firms implement the principles of TQM successfully, they will access several benefits.
Improvement of firm’s culture
v?
a change in organizational culture.
It increases a firm’s knowledge and culture of maintaining quality.
This culture of continued success improves employee ——————-. In TQM, creativity, e.g., for ————————-, is emphasized.
morale
problem-solving
If employees actively participate in the success of the firm, they are likely to ————. Staff turnover is reduced, which in turn decreases hiring and training —————-.
stay
costs
Strengthened teamwork
In recognizing the importance of internal customers and cross-functional teams, teamwork is ?
valued and bolstered.
The firm commits to continuous improvement . As a result,?
the firm reduces defects in the long-run and requires less effort to control personnel,
but a long-term commitment is required.
The firm reduces costs, e.g.,?
scrap costs,
rework costs,
and warranty costs, when applying TQM consistently.
These reductions can increase?
profitability.
In the long run, a focus on TQM increases customer satisfaction because?
there are much fewer customer complaints.
Due to fewer customer complaints, the service complaint team requires ———————-. In addition, a higher customer satisfaction rate will also increase positive ————————, attracting new customers and increasing the likelihood of —————— gains.
fewer resources
word of mouth
market share
Organizations that implement TQM can also face?
first two years of the implementation
several challenges.
As a result, many firms drop the initiative in the?
first two years of the implementation.
In the case that TQM is adapted but management does not?
make the necessary adjustments
(e.g., communicating to employees, changing the organization’s culture, or continued distrust of employee self-responsibility), the implementation is likely to fail.
Once the introduction of TQM has failed, there is even greater?
distrust and more difficulty in launching TQM a second time.
Inability to change organizational culture
This point goes hand in hand with ?
the previous challenge
