Total Quality Management

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Total Quality Management by Mind Map: Total Quality Management

1. Definition: Khurram Hasmi(2007) describe TQM as a philosophy that integrates all functions of an organisation such as Marketing, Finance and Customer Service to meet all needs of customers and organisations objectives.

2. The TQM philosophies objective is to create long term profitability through improving quality, this will create financial costs and savings.

3. The Financial costs Prevention cost- These costs are used to improve the quality. E.g. New machinery, better quality material and higher standard labour. Appraisal cost-These are the cost to monitor the quality. E.g. Site visits and inspection points.

4. The financial Savings Internal Failure Cost- Cost saved within the business E.g. Reduced process cost and maintenance costs. External Failure costs-Less returns and replacing products, Less warranty grantees, better share value due to a good reputation.

5. TQMs Principles: 1.Customer Focus- Getting to the customers to meet or exceed all needs. 2. Leadership-Establishing a unity of purpose and following a shared objective. 3.Involvement of all employees-Making sure all employee are in an environment where they are comfortable to achieve goals. 4.Process Approach- Realising that things are accomplished by using a process. 5. Strategic and systematic approach to management- Having quality as a core component makes everything right the first time. 6. Continual Improvement- improvement will lead to Zero Accidents, Zero defects and Zero errors 7. Factual Approach to decision making- Only making decision based on accurate, reliable and relevant data. 8.Mutual and beneficial supplier relationships- Both supplier and company benefit by sharing know how resulting in value for all

6. The Limitations: The cost in time and money-TQM take a lot of time to install into a business and training all employees and managers in very expensive. The Fear of Change- Employees will be uncertain and doubtful that TQM will work

7. Example: TOYOTA. Toyota use TQM within their organisation they do this by putting the customer first, always improving their products and making sure all employees have involvement when achieving goals.