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By: Subade, J.J.G.
Sucaldito, A.B.
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Objectives:
1. Specifically, this report aims:
2. to define total quality management;
3. to determine the steps of the implementation oftotal quality management;
4. to discuss the techniques of implementation of
total quality management;
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Introduction
Customer satisfaction is one basis of the quality of service
and management an institution delivers. Poor feedback on clientservice and service-evaluation may lead to low productivity,
demand, bad reputation, poor mass utilization and economic
deflation. Also, non-strategic and poor management may lead to
considerable profit loss and increased costs expense for the
organization that are not reflected to as signs of progress and may
deprive the company of its opportunities for expansion
In order to prevent these dilemma and compete with the
racing industrial advancement, TQM was founded, with the sole goal
of continually uplifting and innovating the institution or
organizations traditional approach on services and practices, as well
as its standards and general management, to meet customers
satisfaction and reach societal demands and expectations.
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In order to meet this objective, steps on
effective and efficient implementation of TQMwere derived. These techniques are utilized by
every entrepreneur, aiming to achieve distinct
goals on profitability with a foresight ofgreater advancement with its further
integration to be coupled with striking
strategic plans all directed to precisely achieve
perfection and success.
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Definition
Total Quality Management (TQM) is an approach
that seeks to improve quality and performance which will
meet or exceed customer expectations. This can be achieved
by integrating all quality-related functions and processes
throughout the company.
TQM looks at the overall quality measures used by a
company including managing quality design and
development, quality control and maintenance, quality
improvement, and quality assurance.
TQM takes into account all quality measures taken
at all levels and involving all company employees.
How to Achieve Total Quality Management
TQM philosophy focuses on team work, increasing costumer
satisfaction, and lowering costs. Organizations implement TQM by
encouraging managers and employees to collaborate across functions and
departments, as well as costumers and suppliers, to identify areas for
improvement, no matter how small. Each quality improvement is a step
toward perfection, and meeting a goal of zero defects. Quality control
becomes part of the day to day business of every employee, rather than
being assigned to specialized departments.
The implementation of TQM is similar to other decentralized control
methods. Feed forward controls include training employees to think in terms
of prevention, not detection, of problems and giving them the responsibility
and power to correct errors, expose problems and contribute to solutions.
Concurrent controls include an organizational culture and employee
commitment that favor total quality and employee participation. Feedback
controls include targets for employee involvement and for zero defects
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TQM Techniques
The implementation of TQM involves the use many
techniques, including quality circles, benchmarking, six sigma,reduced cycle time, and continuous improvement.
Quality of Circles. One way of implementing decentralized
approach of TQM is the use of quality circles. A quality circle is a
group of 6-12 volunteer employees who meet regularly to discuss
and solve problems affecting the quality if their work. At a asset
time during the work week, the members meet, identify
problems, and try to find solutions. Circle members are free to
collect data and take surveys. Many companies train members inteam building, problem solving, and statistical quality control. The
reason to use quality circles is to push decision-making to an
organizational level at which recommendations can be made by
the people who do the job and know t better than anyone else.
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Benchmarking. Introduced by Xerox in 1979, benchmarking is now a major TQM
component. Benchmarking is defined the continuous process of measuring products,
services, and practices against the toughest competitors or companies recognized as
industry leaders. The key to successful benchmarking lies to analysis. Starting with its
own mission statement, a company should honestly analyze its current proceduresand determine areas for improvement. As a second step a company carefully selects
competitors worthy of copying. For example, Xerox studied the order fulfillment
techniques of L., I. Bean and learned ways to reduce warehouse costs by 10 percent.
Companies can emulate internal processes and procedures of competitors but must
take care to select companies whose methods are compatible. Once a strong,
compatible program is found and analyzed, the benchmarking company can then
device a strategy for implementing a new program.
Six Sigma. Six sigma quality principles were first introduced to the business world for
quality and efficiency gains that saved companies billions of dollars. Based on the
Greek letter sigma, which statisticians use to measure how fast something deviates
from perfection, six sigma is a highly ambitious quality standard that specifies gal of
two or more than 3.4 defects per million parts. That essentially means being defect-
free 99.9997 percent of the time. However, six sigma as deviated from its precise
definition to become a generic term for quality-control approach that takes nothing
for granted and emphasizes a disciplined and relentless pursuit of higher quality and
lower costs.
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Six Sigma. Six sigma quality principles were first
introduced to the business world for quality and
efficiency gains that saved companies billions of dollars.Based on the Greek letter sigma, which statisticians use
to measure how fast something deviates from
perfection, six sigma is a highly ambitious quality
standard that specifies gal of two or more than 3.4defects per million parts. That essentially means being
defect-free 99.9997 percent of the time. However, six
sigma as deviated from its precise definition to become
a generic term for quality-control approach that takesnothing for granted and emphasizes a disciplined and
relentless pursuit of higher quality and lower costs.
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Reduced Cycle Time. According the book Alone is not
enough; the authors refer to the cycle time as drivers ofimprovement. Cycle time refers to the steps taken to
complete a company process such as publishing a textbook
or designing a new car. The simplification of work cycles,
including the dropping of the barriers between work steps
and among departments and the removal of worthless steps
in the process, enables a TQM program to succeed. Even if
an organization decides not to use quality circles or other
techniques, by focusing on improved responsiveness and
acceleration of activities into a shorter time. Reduction incycle time improves overall company performance as well as
quality.
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Continuous Improvement. Continuous improvement is an ongoing
effort to improve products, services or processes. These efforts can seek
incremental improvement over time or breakthrough improvement
all at once.Among the most widely used tools for continuous improvement is
a four-step quality modelthe plan-do-check-act (PDCA) cycle, also
known as Deming Cycle or Shewhart Cycle:
Plan: Identify an opportunity and plan for change.
Do: Implement the change on a small scale.
Check: Use data to analyze the results of the change and determine
whether it made a difference.
Act: If the change was successful, implement it on a wider scale and
continuously assess your results. If the change did not work, begin the
cycle again.
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Implementing a Quality ManagementSystem
Successful organizations have figured out
that customer satisfaction has a direct impact
on the bottom line. Creating an environmentwhich supports a quality culture requires a
structured, systematic process.
Following are steps to create that process and
system to bring the process full circle.
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Quality Defined:
According to the American Society for Quality (ASQ),
quality is a subjective term for which each person has his orher own definition. In technical usage, quality can have two
meanings: (1) the characteristics of a product or service that
bear on its ability to satisfy stated or implied needs and (2) a
product or service free of deficiencies.
A Quality Management System is the organizational
structure, processes, procedures and resources needed to
implement, maintain and continually improve the
management of quality.
Steps to Creating a Total Quality Management System:
1. Clarify Vision, Mission and ValuesDevelop training and communication process to ensure all staff are aware
of Vision, Mission and Values.
2. Identify Critical Success Factors (CSF)Some possible CSF:
Financial Performance
Customer Satisfaction
Process Improvement
Market Share
3. Develop Measures and Metrics to Track CSF Data
4. Identify Key Customer GroupsCustomers
Employees
Suppliers
Vendors
Volunteers
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5. Solicit FeedbackSolicit feedback from each customer group in an effort to identify what is
important to them. Organizations often make the mistake of thinking they
know what is important to customers and ask the wrong survey questions.This feedback is obtained through customer focus groups.
6. Develop Survey ToolDevelop survey tool based on feedback of what is important to customers.
7. Survey Each Customer GroupSurvey each customer group to get baseline data on customers
perception of current practice.
8. Develop Improvement PlanDevelop improvement plan based on customer feedback for each group.Improvement plan includes SMART goals with assignments to specific
staff for follow through.
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9. Goals May Include Some of the Following:
Process improvement initiatives, such as: Hold times when calling
Leadership Development: Walk-the-Talk
Management Training/Development: How to manage employees in a qualityenvironment
Staff Training/Development: Customer Service
Performance Management: Setting expectations, creating job
descriptions that support the vision and holding staff accountable.
10. ResurveyAfter a period of time (12-18 months), resurvey key customers to see if scores
have improved. Customer needs and expectations change over time so being
in-tune to changing needs and expectations is critical to long-term success.
11. Monitor CSFMonitor CSF monthly to ensure progress toward goals.
12. Incorporate Satisfaction Data into Marketing PlansOnce youve achieved some positive results with your satisfaction data, use it
as a marketing tool!
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Learning Insights:
In order to attain success and meet the organizations goals, TQM is
considered to be compulsory method or technique to be integrated and
utilized effectively. It doesnt only base its efficacy on the savings a company
may accumulate, but its impact on the society, meeting the needs and
expectations of the general public, identifying and solving errors, and setting
preventive measures to promote 100 percent satisfactory rate and
profitability. This leads to the institutions, great chances of expansion, not
only giving them larger chances for economic growth but also may benefit
the community and the nation as a whole, contributing to economic
advancement and industrial innovation.
One mustnt have suspicious claims on its effectivity because on-the-
top industrial leaders have proven TQM as a vital process, method and
solution to upgrade, innovate and stabilize a certain business concept. But
you must not depend on its basic integrity. The organization must be capable
of imposing consistent surveillance to detect areas of defects, because even
how small an error may be its impact on the management and the company
as whole, may be to a large extent, and so requires a huge amount of effort
and cost to compensate with.
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Thus, the company or organization must be fixed to its goal
of profitability or advancement and must not go backwards to
ensure that they are leading to economic growth and not bankruptcy
or disengagement on economic development and far fromopportunities of expansion and stability.
Also the organization must be capable of composing and
deriving a competent and adequate strategic plan to couple with the
TQM technique to give precise confidence on the efficiency of theimplementation plan.
Finally, we have realized that business is not all about the
capital, the employees and the budget. There is a lot bigger range of
responsibilities and operational duties to fulfill to ensure the stability
of your company or organization, and that it takes a lot of effort to
build a name and a reputation in the industry and to take part in
the hot-raging competition in the market and the society in general.
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