According to reports larger organisations still look to TQM for the best business model

Actually top executives at ford say tqm was a light

Info icon This preview shows pages 2–3. Sign up to view the full content.

Actually, top executives at Ford say TQM was a “light-bulb” idea from Henry Ford who improved on his assembly line practices to manufacture even more vehicles, while keeping quality levels high. With their entrance into the Six Sigma methodology, the slogan has changed again at Ford—“We’ve got a better idea!” Image Credit ( Wikimedia Commons ) All of these organizations are companies that benefited from TQM. Although some may have moved on to practices such as the 5S Methodology and Six Sigma and even Lean Six Sigma , quality products was the goal for all three of these giants; and by using TQM, they were indeed successful. Companies use kaizen to improve It used to take 34 steps to open a checking account at Great Western Bank. Now, it's down to 24 steps. The company pulled apart the process, analyzing each action and evaluating what to change. "There's always a reason why, but when you start to determine which steps the customer cares about, it was amazing how many steps were unnecessary and added to the cost and the time," said Ken Karels, the bank's president CEO. "By improving our process, we provide better service at a lower cost," Karels said. "And it's imperative for us to be a survivor in the financial industry that we do that as quickly as possible." As businesses in many industries try to remain competitive and profitable, they're seeking to streamline operations. Great Western and several others are using a tool called kaizen as a way to improve efficiency. Developed in Japan after World War II, kaizen is the Japanese word to describe the idea of continuous improvement. It involves analyzing business processes and tweaking them to optimize value and productivity. Great Western became involved in it through its parent company, National Australia Bank Ltd., which has used kaizen for several years. "The misnomer about kaizen is that it's about cutting costs," Karels said. "It's about providing better service to our customers." Starting a lean journey Kaizen is considered the building block of lean production methods, according to the U.S. Environmental Protection Agency, which offers information on it along with overall lean thinking and methods. While the concept started in manufacturing, other industries have embraced it, including health care and the public sector. Consultant Dee Dee Raap said she has noticed an increase in clients asking about continuous improvement. "Kaizen is really about simplicity," she said. "How do you make it simpler to do business with us? Where do we confuse the customer, where do we make the customer duplicate efforts, where are we asking unnecessary questions?" Kaizen is built around teams of employees representing different levels and parts of the organization. The teams work to improve processes and address problems, often by mapping them and identifying waste. The work is done in kaizen events, and the resulting strategies are implemented quickly – often within days of the event.
Image of page 2

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 3
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '13
  • Ford Motor Company

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern