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Unformatted text preview: , resulting in high quality
products and services. 18 What’s the goal of TQM? “Do the right things right the first time,
every time.” Why TQM?
Ford Motor Company had operating losses of $3.3
billion between 1980 and 1982.
Xerox market share dropped from 93% in 1971 to
40% in 1981.
Attention to quality was seen as a way to combat
the competition. 19 TQM: Losing Popularity?
For many companies, the term TQM is associated with
corporate programs (mid 1980s ~ early 1990s) aimed at
implementing employee teams and statistical process
Unfortunately, many companies were dissatisfied with the
perceived results of these programs, concluding TQM
does not work.
Question: Why were they dissatisfied?
Were they justified? Productivity and TQM
Quality cannot be improved without significant losses in
Improved quality leads to improved productivity. 20 The three aspects of TQM
Counting Customers Culture Tools, techniques, and training in
their use for analyzing,
understanding, and solving quality
Quality for the customer as a
driving force and central concern.
Shared values and beliefs,
expressed by leaders, that define
and support quality. Continuous Improvement
versus Traditional Approach
Traditional Approach Continuous Improvement MarketMarket-share focus
Focus on ‘who” and “why”
Status quo focus
Fire fighting Customer
Focus on “what” and “how”
Process improvement focus
Problem solving 21 The TQM System
Improvement Objective Principles Elements Customer
Education and Training Supportive structure
Reward and recognition
Measurement Quality Systems and Standards 22 Quality Systems and Standards Six Sigma
Use of statistics & other analytical tools has grown
steadily for over 80 years
Statistical quality control (origins in 1920, explosive
growth during WW II, 1950s)
Operations research (1940s)
FDA, EPA in the 1970’s
TQM (Total Quality Management) movement in the
Reengineering of business processes (late 19...
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- Spring '14