"We have learned to live in a world of mistakes and defective products as if they were necessary to life. It is time to adopt a new philosophy in America.", Edward Deming
“Total Quality Management is regarded as a quick fix solution by many organisations. This has led many companies to start on the road to total quality improvement initiative but failed to achieve success due to several factors.”
With reference to the above statement, discuss the importance for both management and the employee to establish quality improvement processes and the potential side effects of the TQM initiative.
We are living in an era where organisations are facing fierce competition due to globalisation and liberalisation. In order to survive organisations must create the competitive advantage over their competitors. Many companies are trying very hard not only to satisfy their customer’s needs but where possible exceed them. This can only be achieved through cost reduction, improvement in product performance, increased customer satisfaction and a constant effort towards world class organisations. In order for companies to survive and grow in the future, it is essential that they deliver high quality goods and services. Those that can deliver quality are the ones that will prosper in the next century (Ross, 1994).
Consider the following statements:
“Ford Motor company had operating losses of $3.3 billion between 1980 to 1982.”
“Xerox market share dropped from 93% in 1971 to 40% in 1981.”
The fundamental cause was that attention was not given to quality.
Consider this example in the business sector: Penril DataComm is a producer of data communications and equipment. Before embarking on TQM, defect rates were so high that the company was reworking or scrapping one third of everything it made. Applying TQM techniques resulted in an 81% decrease in defects, an 83% decrease in failures in the first three months of use, and a 73% decrease in first year warranty repairs. TQM...