Effective Management Control and Total Quality

Posted on Mar 18, 2025 in Other subjects

Management Control and Total Quality

Total Quality Management (TQM) means continually meeting agreed customer needs, or “what it takes to satisfy the customer,” or simply “fitness for purpose.” It’s a relative property because it implies satisfaction. It’s not solely a question of product aspects or price; it’s a question of functioning well for its intended purpose. TQM is an intensive, long-term effort to transform all parts of the organization to produce the best product or service possible to meet customer needs.

Why Total Quality Management is Important

TQM is crucial because it directly impacts customer satisfaction. A lack of quality leads to:

  • Wasted resources
  • Wasted time
  • Loss of customers

Focusing on the Customer

Quality is defined by the customer’s perceptions. The goal is to meet customer requirements the first time and avoid the cost of resolving problems. The key steps include:

  1. Research: Understanding customer needs.
  2. Specification and Planning: Defining how to meet those needs.
  3. Delivery: Providing the product or service.
  4. Review: Assessing customer satisfaction and identifying areas for improvement.

Elements of Total Quality

Several techniques and concepts contribute to total quality:

  • Statistical Process Control (SPC): Monitoring and controlling processes to ensure consistency.
  • Taguchi Methods: Quantifying and minimizing loss due to lack of quality.
  • Just-in-Time (JIT): Minimizing inventory and waste.
  • Quality Circles: Employee groups focused on problem-solving.
  • Right First Time: Emphasizing error prevention.
  • Customer Service: Providing excellent support to customers.
  • Benchmarking: Comparing performance against industry best practices.
  • Quality Assurance: Establishing a framework for quality control and improvement.

Taguchi Method

The Taguchi method describes a system’s capability to produce goods or services to a specification. It helps quantify the loss due to a lack of quality in a performance characteristic, with the objective of identifying the root cause of the problem.

Keys to Total Quality

  • Measuring quality.
  • Incorporating quality objectives into strategic planning.
  • Obtaining commitment from top management.
  • Forming teams in a structure of participative management.
  • Using resources efficiently and effectively.

Statistical Process Control (SPC)

SPC is a method of monitoring the conformity of a product to agreed specifications. By sampling units of the product, deviations from these specifications can be identified, and adjustments can be made during the production process.

Quality Assurance

Quality Assurance provides a framework for quality control and quality improvement. It supports teams of employees with systems, resources, and discretion appropriate to their unique contribution to the organization. It implies a QUEST analysis (Quality in Every Task).

QUEST Analysis

  1. Who are my customers?
  2. What do they demand from me?
  3. In what way do I meet these demands?
  4. How can I improve my service?

Quality Circles

Quality Circles are groups that meet voluntarily and regularly to identify and solve their own work-related problems and implement their solutions with management approval. The process involves:

  1. Identification of problems
  2. Prioritization
  3. Discussion and investigation
  4. Solution
  5. Action (if authorized)
  6. Presentation to managers

Measuring Quality

A manager needs to be both a problem-solver and a planner and be able to communicate the importance of objectives to employees.

Problem Solvers:

  • Short-duration activities
  • Non-routine tasks
  • Emphasis on decisive action
  • Informal interaction
  • Effectiveness from authority
  • Low priority for personnel tasks

Planners:

  • Advance planning
  • Agreed systems
  • Systems and schedules
  • Formal and regular sessions
  • Roles of coach and counselor
  • Human resource management