Principles of Management - Productivity and Total Quality Management - Quick Guides

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Study GuidePrinciples of Management–Productivity and TotalQuality Management1. Major Contributors to Total Quality Management (TQM)Total Quality Management, orTQM, is much more than just checking a product for defects. It’s acompany-wide philosophyfocused on improving customer satisfaction, increasing employeeinvolvement, strengthening supplier partnerships, and creating a culture of continuous improvement.TQM is about how peoplework together and relate to each otherin an organization. Successdepends on a shared commitment to quality in all areas.1.1W. Edwards Deming (1900–1993)Deming, an American statistician and management expert, is often called theFather of TQM. Hisideas became popular inpostwar Japan, helping the country rebuild its industries. Ironically, hisconcepts were initially ignored in the U.S. until the 1980s, when American companies struggled tocompete with Japanese efficiency.Deming emphasized that quality isn’t just about inspecting products—it requirescontinuousimprovement across the entire organization. He developed theFourteen Pointsas a guide forachieving TQM:1.Create a consistent purposefor improving products and services.2.Adopt a new philosophythat rejects mistakes and negativism.3.End dependence on mass inspection; build quality into the product.4.Move away from awarding business based on price alone; aim for minimum total cost.5.Constantly improve production and service systems.6.Institute proper trainingfor all workers.7.Institute leadershipto help employees do a better job.8.Drive out fearso employees can ask questions and share ideas.9.Break down barriers between departmentsto improve teamwork.

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Study Guide10.Eliminate slogans and numerical targetsthat don’t help employees do better.11.Remove quotas and work standardsthat focus only on numbers.12.Remove barriers to pride in workmanship, such as poor supervision or faulty equipment.13.Implement continuous educationfor management and workers.14.Take action to achieve transformationthrough top management commitment.Deming emphasizedteamwork, employee input, and customer feedback. Japanese companiesadopted his ideas successfully, producing high-quality goods efficiently, which forced U.S. companiesto catch up in the 1980s.1.2Joseph M. Juran (1904–2008)Joseph Juran, another major TQM contributor, focused onmanagerial responsibility for quality. Hebelieved that most quality problems result frompoor management, not employee errors.Juran introduced theQuality Trilogy:1.Quality Planning–Identify customers, their needs, set goals, and plan processes to meetthem.2.Quality Control–Monitor operations to ensure standards are met.3.Quality Improvement–Continuously improve processes and results.Key ideas from Juran include:•Setspecific goalsand clear plans to achieve them.•Assignresponsibilityfor meeting goals.•Baserewards on results achieved.•Start quality improvementat the top, with senior management involvement.1.3Philip B. Crosby (1926–2001)Philip Crosby took apractical approachto quality, emphasizing that it can becost-effective andachievable. He is famous for thezero defects program: "Do it right the first time" (DIRFT).

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Study GuideCrosby introduced theFour Absolutes of Quality Management:1.Quality is conformance to requirements, not elegance or luxury.2.Prevention over inspection–prevent defects rather than catching them later.3.Zero defects as the standard–aim for perfection.4.Quality costs–measure quality by the cost of nonconformance, not by inspection costs.Crosby’s philosophy stressedemployee responsibilityfor quality at every step and argued thatfocusing on qualitysaves money in the long run.1.4Other Influential Quality Experts•Armand V. Feigenbaum–Total Quality Control; quality is company-wide.•Michael Hammer & James Champy–Reengineering the Corporation.•Peter Drucker–Post-Capitalist Society; management for the modern era.Although many people contributed to TQM, thethree “masters”most often cited areDeming, Juran,and Crosby. While their approaches differ—Deming is philosophical, Juran is managerial, andCrosby is practical—they allagree that quality is essential for long-term organizational success.2. Implementing Total Quality Management (TQM)ImplementingTotal Quality Management (TQM)is similar to other decentralized control methods.The key idea is to focus onquality at every stage—from production to the customer’s hands.2.1Understanding Quality from the Customer's PerspectiveTo succeed with TQM, companies must know howcustomers define qualityfor both products andservices. The more attention a company gives to quality during production, the fewer problems ariselater when customers use the product.Customer feedbackis a valuable tool. Surveys can highlightdesign or manufacturing issuesthatneed fixing.

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