Quality Management Definition: Quality management is the act of overseeing all activities and tasks needed to maintain a desired level of excellence. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement.
Quality management ensures that an organization, product or service is consistent. It has four main components: quality planning, quality assurance, quality control and quality improvement. Quality management is focused not only on product and service quality, but also on the means to achieve it.
While TQM seems like an intuitive process, it came about as a revolutionary idea. The 1920s saw the rise in a reliance on statistics and statistical theory in business, and the first-ever known control chart was made in 1924.
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.
Isolated Economies Focus on Quantity Period of change from quantity to quality Global Economies Focus on Quality Pre World War II 1940 S 1990 S
F. W. Taylor. Frank B. Gilbreth Walter David W. Hays
F. W. Taylor. QUALITY MANAGEMENT
Quality is a predictable degree of uniformity, at low cost and suited to the markets. W. Edwards Deming
Quality is fitness for use. Joseph M. Juran
Quality is conformance to requirement. Philip B. Crosby
Quality is the minimum loss imparted by a product to society from the time the product is shipped. Genichi Taguchi
Quality is a company wise issue and must be an all pervasive influence on the way every issue of business is conducted. Kaoru Ishikawa
It is the degree to which a set of inherent characteristics fulfill requirements. ISO 9000:2000
Q = P/E Q = Quality P = Performance E = Expectations Q = 1 OR More
1. Before industrial revolution quality was inspection, reactive in nature. 2. After Second World War Deming, Juran introduced quality theory in Japan.
3. Next 20 years US Managers focused on marketing, production and quality of financial performance. 4. In 1980S quality began to have strategic meaning.
5. In 1990s Quality management principles started applying in service industry.
Quality in manufacturing 1.Easy to measure 2.Extensive MR is needed. 3.High focus on product features. 4.Performance of the product is important Quality in services 1.Difficult to measure 2.MR is needed. 3.Accuracy is on the priority. 4.Timeliness of the service is important.
Quality in manufacturing 5. Reliability of the product is seen. 6. Durability 7. Ease of use. Quality in services 5. Completeness of the service is seen. 6. Friendliness of the services. 7. Courtesy of service
Quality in manufacturing 8. Serviceability of the product. 9. Esthetic value of the product. 10. Availability of the product enhances sales. Quality in services 8. Anticipating customers needs. 9. Knowledge of server. 10. Service timeliness enhances acceptability.
Quality in manufacturing 11. Reputation 12. Product utility 13. Product value in customers life. 14. Communication is not primary Quality in services 11. Reputation 12. Consistency of services. 13. Responsiveness to the customers adds value. 14. Communication is primary concern.
1.Providing business solutions to improve bottom-line results. 2. Improving operational processes. 3.Identifying problems and solutions quickly and systematically.
4.Reducing waste and cycle time. 5.Equipping companies with effective supply chain management methods. 6. Raw Material 7. Process Control 8. Maintenance 9. Inventory management
4.Reducing waste and cycle time. 5.Equipping companies with effective supply chain management methods. 6. Raw Material 7. Process Control 8. Maintenance 9. Inventory management
-MKT 1. Product availability 2. Product awareness 3. Product STP effectively 4. Product Features 5. Skilled, knowledgeable Executives 6. Effective distribution channel 7. Utility based product mix
8. Marketing research 9. MIS 10. Product development 11. Business Development 12. Brand building 13. Customer relationship
-HRM 1. Employee engagement 2. Manpower planning 3. Training and development 4. Effective appraisal system 5. Work culture 6. Happiness of the staff 7. Building best culture 8. Legal Aspects
-HRM 9. Performance management 10. Transparency in the organization 11. IR 12. Retention of skilled people 13. Safety and benefits 14. Reward management 15. Reward management 16.Effective recruitment and selection
- FM 1. Financial evaluation 2. Business risk management 3. Capital investment management 4. Strategic financial planning 5. Risk based fiscal planning 6. Operating expenses management 7. Cash flow management
- FM 8. Budgeting 9. Accounting policy management 10. Costing and pricing decisions 11. Financial reporting 12. Financial information analysis 13. Project risk management 14. Assets and liability management 15. Financial management and profitability
- FM 16. Transfer payment 17. Financial control and assurance