CHAPTER 2 LITERATURE REVIEW 1. Definition of Total Quality Management (TQM) There are numerous, widespread, diverse and often fashionable initiatives that potentially help manufacturing organisations in implementing various best practices in operations management. Examples of these initiatives include total productive maintenance (TPM), total quality management (TQM), Kanban, 5S, six sigma, Kaizen and business process re-engineering (BPR) (Ashutosh Tiwari, 2007).
These criteria is a success stories to implement in this initiatives and make everything is going well. Critical factor in the success of operations management projects is a fast but comprehensive analysis of the current practices or structure in the company (Ashutosh Tiwari, 2007). Table 2: Definition of Japanese Terms. Initiative |Core Ideas | |5S |Organisation and housekeeping (Hirano, 1996) | |TPM |Continuous improvement of equipment and processes (Campbell, 1995) | |TQM |Right first time (Oakland, 2003) | |Six sigma |Systematic and continuous improvement (Pande, 2001) | |JIT (Kanban) |Remove inventory buffers that prevent learning (Ono, 1988) | |Kaizen |Cost reduction through the elimination of waste (Imai, 1986) | |BPR |Reduction of complexity of workflow (Hammer, 2001) | Total Quality Management (TQM) has been accepted as a disciplined management process in industry in order to cope with the changes in marketplace and to focus on quality in both their products as well as their services (Venkatraman, 2007). While applying TQM philosophy to their organisations, some managers think that quality is driven by internal productivity programs or participative management programs which may deviate from their core business and customer focus resulting in cost overruns. But this is wrong perception by managers because with TQM all the process and product quality increasing and achieve “zero defect” purpose.
However, quality cannot be inspected into an individual unit of the product after it has been made. The practice of inspecting products after they are made has, therefore, been replaced rapidly by the broader view that quality must be built into a product, from the design stage through all subsequent stages of manufacture and assembly. Because products are made by using several manufacturing processes, each of which can have significant variations in its performance even within a short period of time, the control of processes is a critical factor in product quality. Thus the objective should be to control processes not products. Quality has various meanings attached and the focus varies from one educational setting to another.
Among the various elements of TQM, customer focus, process orientation and continuous improvements are the most common philosophies that have direct implications for teaching and learning in higher education (Venkatraman, 2007). The general definition of total quality management (TQM) as a philosophy that would enable an organisation consistently to meet the needs of customers is accepted worldwide by manufacturing executives as a strategic concept for organisational survival. However, reaching the TQM destination is a continuing challenge for manufacturing executives (Nwabueze, An Industry Betrayed: the case of total quality management in manufacturing, 2011).
Deming notes that everyone in the organisation from top to bottom, from office to technical services, from headquarters to local sites must be involved. He further suggested that people are the source of ideas and innovation, therefore, their expertise, experience, knowledge and sense of duty have to be harnessed to the benefit of the organisation (Nwabueze, An Industry Betrayed: the case of total quality management in manufacturing, 2011). Total quality management (TQM) principles and techniques are now a well accepted part of almost every manager’s “tool kit’’ (Dow, 1999). Quality is to satisfy customers’ requirements continuously; total quality is to achieve quality at low cost and TQM is to obtain total quality by involving everyone’s daily commitment (W. H. Ip, 1999).
Henderson gives a definition on TQM to include (Henderson, 1992): a) Total means: everyone in every function within the company accepts responsibility for the quality of his own output; b) Quality means: conformance to agreed customer requirements; and c) Management means: for any major business strategy, it is management led but with a strong involvement of employees. TQM has been described as a new model of thinking in business management, a comprehensive style to improve organizational performance and quality an alternative to the “management by control” and more recently, as a change of paradigm (Fco. Javier Llore? ns Montes, 2003).
TQM is one of the numerous forms of management models or concepts that emerged and took form during the 1980s and 1990s, maybe even the most commonly used concept during this period. Management concept is not only the toolkit for “trouble shooting” and improving organisation efficiency, but can also be seen as a symbol giving the organisations higher credibility. (Harnesk, 2007) Examination of the applicability of TQM concepts to product and service organisations suggests that there is evidence of greater ease of adoption, and more apparent success, within product based companies than with service based organisations, though there is no reason in principle why this should be so. A service organisation is as much dependant on satisfying its customers as a product company, if not more so.
A service organisation such as an airline will be vulnerable to immediate customer dissatisfaction with such inadequacies of performance as lateness of arrival, off-handedness of staff and the disappearance of luggage. (Reavill, 1999) This sortie into the area of marketing mature products brings us back to the points flagged at the beginning of this paper, the small/ medium sized enterprises (SMEs), and the newly industrialised countries (NICs). With a mature product, a marketing strategy would be to increase the share of the current market, and to find new markets. (Reavill, New applications for TQM, 1999) There is also other development connected to TQM. TQM is a concept that has traditionally been connected to business life, commercial and industrial organizations for manufacturing and production.
However, the domain of TQM is changing, and TQM has been applied also to public issues. Research has been conducted in the area of managing the third sector, such as non-profit organizations (Hudson, 1995; Lyons, 2001; Nutt and Backoff, 1992; Mertens, 1999). Reavill (1999) discusses the current status and possible future of TQM as a major management concept. Consequently, the different views of the evolution of TQM and the different views of the definitions of TQM generate problems both for those practitioners who are applying TQM, and for those theorists who are studying TQM. There are consequences when discussing the effectiveness, use and utility of TQM.
The development of TQM implies new definitions, or modifications of existing definitions, for instance, the interpretation of the word customer. (Bjarne Bergquist, 2005) One of the main goals of a business is to stay in business and to be profitable to its owners. Other goals may be that the work environment should be good, that customers are satisfied, that the company has a good reputation and provides jobs. If the business is a loss, the other goals are of little value, as the business will go bankrupt. The big question for companies about to implement new strategies or working methods is thus often “Will it pay? ” This is a difficult question to answer, but some have tried. Bjarne Bergquist, TQM and results as profit in commercial organizations, 2005) When studying the criticism against the use of TQM in the education sector, it seems that it can be divided into at least two different forms and that the criticism emanates from different perspectives. One of these forms is the criticism of the transfer of concepts from one context to another. One example is the introduction of methods and adaptation to ways of thinking and values that were developed in goods producing companies. Another form of criticism is also connected to the transfer of TQM to a new area, but also based upon an ideological view. In this paper the use of TQM in educational organizations is seen as a part of an economization within the education area. Bjarne Bergquist, TQM in the educational sector, 2005) Increased customer sophistication and the globalization of business activities are forcing business organizations to re-engineer their cultures, operations and systems to support customer-focused and quality-driven competitive business strategies. Manufacturing organizations have successfully deployed total quality management (TQM) practices in support of strategic choices (Spitzer, 1993; Flynn et al. , 1995; Au and Choi, 1999; Tata and Prasad, 1998; Prajogo and Sohal, 2001; Powell, 1995). In this context, however, service organizations are still lagging behind their manufacturing counterparts in terms of their strategic commitment to TQM (Au and Choi, 1999; Dotzour and Lengnick-Hall, 1996; Sohal, 1994; Shortell et al. , 1995).
The apparent reluctance of service organizations to utilize TQM based-strategies is alarming, especially in light of the increased significance of the service sector to national and global economies. (Mahmoud M. Yasin, 2004) [pic] Figure 1 A conceptual framework for TQM implementation and benefit in a service operational setting (Mahmoud M. Yasin, 2004) What is quality? There are various well-known definitions of quality. (Crosby, 1979) define quality as “conformance to requirement” while (Juran, 1980) define quality as “fitness for use”. Quality as “a predictable degree of uniformity and dependability at low cost and suited to the market” is more towards quality in operation (Deming, 1986).
Many organisations found that the old definition of quality, “the degree of conformance to a standard”, was too narrow and consequently have started to use a new definition of quality in terms of “customer focus”. It is reported that many companies had initially concentrated all their efforts on improving internal processes with little or no regard for the relationships between those processes and the organization’s ultimate customers. This failure to include the customer focus had resulted in companies struggling hard to survive and resorting to fire-fighting situations. (Fincher, 1994) describe how quality perspectives have evolved in higher education over the years by going through a shift from experience to technique to style and finally to process.
Quality as overall is to achieve customer needs and demand where must start in the beginning process of manufacturing to meet the requirement and fit with the machine capability to get the quality output and of course should meet the standard of conformance. Quality has a variety of meanings and it range of meanings that will confusing each individual’s perception of quality but the important things is to achieve customer needs and satisfaction. Quality also as a key attribute that customers use to evaluate products and services which has emerged as a vital point of management focus in many parts of the world. The emergence of quality as a top priority in many corporate entities is primarily due to the globalisation of world trade and the competitive pressure brought about by the escalating demands of consumers, who want better products and services (Zairi, 2001).
Quality is the increased awareness of senior executives, who have begun recognising that quality is a key strategic issue and an important focus for all levels of the organisation (Crosby P. , 2001). The implication of Dr Weller’s action suggest that the chief executive’s attitude to TQM must be “hands on” (Nwabueze, 2001). Because our attitudes greatly influence people around us, management’s attitude tells employees what is expected of them and what they can get away with. On the basis of my analysis, a new model of leadership requirements for TQM in healthcare is proposed, can see Figure 1. (Nwabueze, Chief executives ± hear thyselves: leadership requirements for 5-S/TQM implementation in healthcare, 2001) [pic] Figure 1: Model of leadership requirements for TQM in healthcare. Nwabueze, Chief executives ± hear thyselves: leadership requirements for 5-S/TQM implementation in healthcare, 2001) Works Cited Ashutosh Tiwari, C. T. (2007). A framework for implementing cost and quality practices within manufacturing. Journal of Manufacturing Technology Managemen , 732. Bjarne Bergquist, M. F. (2005). TQM: terrific quality marvel or tragic quality malpractice? , 311. Bjarne Bergquist, M. F. (2005). TQM and results as profit in commercial organizations. TQM: terrific quality marvel or tragic quality malpractice? , 312. Campbell, J. (1995). Uptime: Strategies for Excellence in Maintenance Management (Step-by-step Approach to TPM Implementation). Productivity Press Inc. , 733. Crosby, P. (2001).
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