Summary of Total Quality Management

Total Quality Management (TQM) is a management strategy focused on continuously improving product quality and production processes. The concept was initially developed by Andrew Stu Hart and later advanced by W. Edward Deming, Joseph M. Juran, and Arman V. Feigenbaum.

Main Financial Strategies and Business Trends:

• Key Objectives of TQM:
  • Achieving 100% customer satisfaction.
  • Striving for zero defects in products and processes.
• Core Components of TQM:
  1. Customer Orientation: Focus on both external customers and internal stakeholders, including supplier management.
  2. Leadership Commitment: Involvement and support from senior management to facilitate managerial roles and recognize successes.
  3. Quality Measurements:
     • Cost of quality.
     • Measurement of customer satisfaction.
  4. Elimination of Waste: Focus on error visibility, prevention, and reducing serial defects.
  5. Continuous Improvement: A problem-solving approach that emphasizes ongoing training and education.
  6. Empowerment: Encouraging employee involvement in quality improvement initiatives.

Limitations:

• TQM requires long-term commitment for effective results.
• Implementation can be costly and may stifle creativity and innovation.
• Example: IBM faced significant losses while attempting to implement TQM.

Successful Industries:

Fast-food franchises are cited as examples of industries that have improved quality to enhance customer satisfaction.

Presenters/Sources:

• Andrew Stu Hart
• W. Edward Deming
• Joseph M. Juran
• Arman V. Feigenbaum

Notable Quotes

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Category

Business and Finance

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