Thursday, 10 April 2014

TQM

                             
                                       Total Quality Management
     
    
Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. TQM requirements may be defined separately for a particular organization or may be in devotion to established standards, such as the International Organization for Standardization's ISO 9000 series. Every organization, both for profit and non-profit, can benefit from Total Quality Management (TQM). One definition for TQM is a management strategy aimed at embedding awareness of quality in all organizational processes. It has been widely used in education, government, manufacturing, and service industries. TQM processes are divided into four chronological categories: plan, do, check, and act (the PDCA cycle). In the planning phase, people define the problem to be addressed, collect relevant data, and discover the problem's root cause. Next in the doing phase, people develop and implement a solution, and decide upon a measurement to gauge its effectiveness. Third is the checking phase, where people prove the results through before-and-after data comparison. The final phase acting is where, people document their results, inform others about process changes, and make recommendations for the problem to be addressed in the next PDCA cycle (Green 2003).
        The large and growing importance of world trade is a major phenomenon of our time. This trend has been increasing from the merger of Europe into the European Union and by the rapid growth of a few of the less developed countries of Latin America, South America, and Asia. A customer needs assurance that quality products will be supplied while dealing assertively with any supplier. This assurance is principally important when customer and supplier are on a global basis, entailing separate legal systems and grievance procedures. Thus, the growth in world trade has been a major stimulus for developing successful ways for customers to feel certain about the quality of the goods supplied to them, since their customer could be thousands of miles across the ocean. A more appropriate approach would be to have certainty in the quality systems of the various suppliers around the world. There are two methods that can be used to gain this assurance.
       The first one is for the customer to evaluate each supplier's system before conducting any business.TQM stands for Total Quality Management. It is a managerial tool used to improve the efficiency and profitability of an organisation. TQM is a recent development in the field of management which emphasizes the management accounting function and tries to systematize the production management. It has three core aspects - Quality Control, Quality Assurance & Quality Management. Quality Control, deals with analyzing the past to take steps to reduce the defective production. Quality Assurance is concerned with the establishment of systems within the production process to prevent defects. Quality Management is a process of continuous improvement in the products and services offered by the organisation.
      TQM seeks to increase customer satisfaction by finding the factors that limit current performance. The practice of TQM in manufacturing environment has produced improvements in efficiency and profitability. In the late 1950s Japanese products were defamed in the west for their poor quality and unreliability. The transformation in the reputation of the Japanese goods started after applying TQM. It started in the fields of electronic and automobile sectors by application of latest Management principles. Their ability to do so was due to the restructuring °f unions and institutions following Second World War, allowing the use changes necessary like Just in Time (JIT), Value Added Management (VAM) & Total Quality Management (TQM).TQM assumes potentially greater importance as tool improved efficiency in service areas. By focusing on the management accounting 'unction it is possible to devise a process through which quality improvement methods might be used to highlight problem areas and facilitate their solution.












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