TQM-MODULE-1
TQM-MODULE-1
TQM-MODULE-1
CHAPTER 1: Understanding bad reputations can become national or international. Yet the
management of quality can be learned and used to improve
quality reputation. For any organization, there are several aspects of
reputation which are important:
1. It is built upon the competitive elements of being ‘On-
QUALITY, COMPETITIVENESS AND CUSTOMERS
Quality; On-Time; On-Cost’.
2. Once an organization acquires a poor reputation for product
or service quality or reliability, it takes a very long time to
Good quality performance has always been a key strategic change it.
factor for business success but it is now more than ever required to 3. Reputations, good or bad, can quickly become national
compete successfully in the global markets of the twenty-first reputations.
century. Many organizations have adopted a range of improvement 4. The management of the competitive weapons, such as
approaches in response to these forces. We have seen the growing quality, can be learned like any other skill and used to turn
adoption of a range of quality and management systems standards, round a poor reputation.
the emergence of total quality management (TQM), business
process re-engineering (BPR), business excellence, performance Before anyone will buy the idea that quality is an important
excellence, Lean thinking, Six Sigma, statistical process control, consideration, they would have to know what was meant by it.
etc, etc. The battle weary could be excused from taking a rather
jaundiced view of this ever-lengthening list of ‘quality’ offers but,
by and large, they share many of the principles and elements that
are found in TQM.
Whatever type of organization you work in these days – a bank,
a hospital, a university, an airline, an insurance company, local
government, a factory – competition is rife: competition for
customers, for students, for patients, for resources, for funds. Any
organization basically competes on its reputation – for quality,
reliability, price and delivery – and most people now recognize that
quality is the key to achieving sustained competitive advantage. If
you doubt that, just look at the way some organizations, even
whole industries in certain countries, have used quality
strategically to win customers, obtain business resources or
funding and be competitive. Moreover, this sort of attention to
quality improves performance in reliability, delivery and price.
What is quality? • ‘Quality should be aimed at the needs of the
Quality starts with understanding customer needs and consumer, present and future’ – Deming, another
ends when those needs are satisfied. ‘Is this a quality early doyen of quality management.
watch?’ Pointing to my wrist, I ask this question of a • ‘The total composite product and service
class of students – undergraduates, postgraduates, characteristics of marketing, engineering,
experienced managers – it matters not who. The answers manufacture and maintenance through which the
vary: product and service in use will meet the
expectation by the customer’ – Feigenbaum, the
• ‘No, it’s made in Japan.’ first man to publish a book with ‘Total Quality’ in the
• ‘No, it’s cheap.’ title.
• ‘No, the face is scratched.’ • ‘Conformance to requirements’ – Crosby, an
• ‘How reliable is it?’ American consultant famous in the 1980s.
• ‘I wouldn’t wear it.’ • ‘Degree to which a set of inherent characteristics
Quality is often used to signify ‘excellence’ of a product fulfils requirements’ – ISO (EN) 9000:2000 Quality
or service – people talk about ‘Rolls-Royce quality’ and Management Systems – Fundamentals and
‘top quality’. If we are to define quality in a way that is Vocabulary.
useful in its management, then we must recognize the Reliability is the ability to function satisfactorily over a
need to include in the assessment of quality the true period of time and it is this aspect of performance. It is
requirements of the ‘customer’ – the needs and the ability of the product or service to continue to meet
expectations. the customer requirements. Reliability ranks with quality
in importance, since it is a key factor in many purchasing
Quality then is simply meeting the customer requirements decisions where alternatives are being considered.
and this has been expressed in many ways by other authors:
It is important to realize that the ‘meeting the
• ‘Fitness for purpose or use’ – Juran customer requirements’ definition of quality is not
• ‘The totality of features and characteristics of a restrictive to the functional characteristics of products or
product or service that bear on its ability to satisfy services.
stated or implied needs’ – BS 4778. 1987 (ISO By consistently meeting customer requirements, we
8402, 1986) Quality Vocabulary; Part 1, can move to a different plane of satisfaction – delighting
International Terms. the customer. There is no doubt that many organizations
have so well ordered their capability to meet their to feed the early morning travelers on the short domestic
customers’ requirements, time and time again, that this flight into an international airport, she was not thinking of
has created a reputation for ‘excellence’. A development quality problems. Having stopped at the row of seats
of this thinking regarding customers and their satisfaction marked 1ABC, she passed the first tray onto the lap of the
is customer loyalty, an important variable in an man sitting by the window. By the time the second tray
organization’s success. had reached the lady beside him, the first tray was on its
way back to the hostess with a complaint that the bread
Research shows that focus on customer loyalty can
roll and jam were missing. She calmly replaced it in her
provide several commercial advantages:
trolley and reached for another – which also had no roll
• Customers cost less to retain than acquire. and jam.
• The longer the relationship with the customer, the The calm exterior of the girl began to evaporate as she
higher the profitability. discovered two more trays without a complete breakfast.
• A loyal customer will commit more spend to its Then she found a good one and, thankfully, passed it
chosen supplier. over. This search for complete breakfast trays continued
• About half of new customers come through referrals down the aeroplane, causing inevitable delays, so much
from existing clients (indirectly reducing acquisition so that several passengers did not receive their breakfasts
costs). until the plane had begun its descent. At the rear of the
Many companies use measures of customer loyalty to plane could be heard the mutterings of discontent. ‘Aren’t
identify customers which are ‘completely satisfied’, they slow with breakfast this morning?’ ‘What is she
would ‘definitely recommend’ and would ‘definitely doing with those trays?’ ‘We will have indigestion by the
repurchase’. time we’ve landed.’
The problem was perceived by many on the aeroplane
to be one of delivery or service. They could smell food
UNDERSTANDING AND BUILDING THE QUALITY CHAINS
but they weren’t getting any of it, and they were getting
really wound up! The air hostess, who had suffered the
embarrassment of being the purveyor of defective product
The ability to meet the customer requirements is vital, and service, was quite wound up and flushed herself, as
not only between two separate organizations, but within she returned to the curtain and almost ripped it from the
the same organization. hooks in her haste to hide.
When the air stewardess pulled back the curtain A problem of quality? Yes, of course, requirements
across the aisle and set off with a trolley full of breakfasts not being met, but where? The passengers or customers
suffered from it on the aircraft, but in part of another quality PA service. Does the air steward receive from the
organization there was a man whose job it was to supplier to the airline the correct food trays in the right
assemble the breakfast trays. On this day the system had quantity, at the right time?
broken down – perhaps he ran out of bread rolls, perhaps
he was called away to refuel the aircraft perhaps he didn’t
know or understand, perhaps he didn’t care.
MANAGING QUALITY
Thewaywedothem
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