PRINCIPLES OF TOTAL QUALITY

PRINCIPLES OF TOTAL QUALITY

A definition of total quality was endorsed in 1992 by the chairs and CEOs of nine major U.S. corporations in cooperation with deans of business and engineering departments of major universities, and recognized consultants:
Total Quality (TQ) is a people-focused management system that aims at continual increase in customer satisfaction at continually lower real cost. TQ is a total system approach (not a separate area or program) and an integral part of high-level strategy; it works horizontally across functions and departments, involves all employees, top to bottom, and extends backward and forward to include the supply chain and the customer chain. TQ stresses learning and adaptation to continual change as keys to organizational success.
The foundation of total quality is philosophical: TQ includes systems, methods, and tools. The systems permit change; the philosophy stays the same. TQ is anchored in values that stress the dignity of the individual and the power of community action.
There probably are as many different approaches to TQ as there are businesses. However, most share some basic elements: (1) customer focus, (2) a process orientation, (3) continuous improvement and learning, (4) empowerment and teamwork, (5) management by fact, and (6) leadership and strategic planning.
Customer Focus
The customer is the judge of quality. Understanding customer needs, both current and future, and keeping pace with changing markets requires effective strategies for listening to and learning from customers, measuring their satisfaction relative to competitors, and building relationships, Customer needs–particularly differences among key customer groups – must be linked closely to an organization‘s strategic planning, product design, process improvement, and workforce trainingactivities. Satisfaction and dissatisfaction information are important because understanding them leads to the right improvements that can create satisfied customers who reward the company with loyalty, repeat business, and positive referrals. Creating satisfied customers includes prompt and effective response and solutions to their needs and desires as well as building and maintaining good relationships. A business can achieve success only by understanding and fulfilling the needs of customers. From a total quality perspective, all strategic decisions a company makes are ―customer-driven.‖ In other words, the company shows constant sensitivity to emerging customer and market requirements. This requires an awareness of developments in technology and rapid and flexible response to customer and market needs.
Customer-driven firms measure the factors that drive customer satisfaction. A company close to its customer knows what the customer wants, how the customer uses its products, and anticipates the needs that the customer may not even by able to express. It also continually develops new techniques to obtain customer feedback. Customer opinion surveys and focus groups can help companies understand customer requirements and values. Some companies require their sales and marketing executives to meet with random group of key customers on a regular basis. Other companies bring customers and suppliers into internal product design and development meetings.
A firm also must recognize that internal customers–the recipients of any work output, such as the next department in a manufacturing process or the order-picker who receives instructions from an order entry clerk – are as important in assuring quality as are external customers who purchase the product. Failure to meet the needs of internal customers will likely affect external customers. Employees must view themselves as customers of some employees and suppliers to others. Employees who view themselves as both customers of and suppliers to other employees understand how their work links to the final product. After all, the responsibility of any supplier is to understand and meet customer requirements in the most efficient and effective manner possible.
Customer focus extends beyond the consumer and internal relationships, however. Society represents an important customer of business. A world-class company, by definition, is an exemplary corporate citizen. Business ethics, public health and safety measures, concern for the environment, and sharing quality-related information in the company'‘ business and geographic communities are required. In addition, company support–within reasonable limits of its resources–of national, industry, trade, and community activities and the sharing of nonproprietary quality-related information demonstrate far-reaching benefits.
Customers may be of following types:
1. External Customer
2. Internal Customer
3. Investor Customer
4. Social or Society Customer

Process Orientation

The traditional way of viewing an organization is by surveying the vertical dimension – by keeping an eye on an organization chart. However, work gets done (or fails to get done) horizontally or cross-functionally, not hierarchically. A process is a sequence of activities that is intended to achieve some result. According to AT&T, a process is how work creates value for customers. We typically think of processes in the context of production: the collection of activities and operations involved in transforming inputs-physical facilities, materials, capital, equipment, people, and energy-into outputs-products and services. Common types of production processes include machining, mixing, assembly, filling orders, or approving loans. However, nearly every major activity within an organization involves a process that crosses traditional organizational boundaries. For example, an order fulfillment process might involve a salesperson placing the order; a marketing representative entering it on the company