Overview of chapter 3
In the previous chapter, we read about the role of standards, such as ISO 9000, in the assurance of quality of the output to the customer. We also came across the concept that the customer may be internal or external to the organisation. This brings us in contact with a concept that stays with us throughout the study of this subject - the value of the customer.
Many companies talk about meeting (often exceeding) customer expectations. This really means increasing the value of the company's product in the perception of the customer. There are two ways of doing this: either lower the price but maintain quality; or enhance quality relative to price. To do the first, the company must improve performance; to do the second, the company must understand customer expectations. You may recall the comparison of quality to beauty made in chapter 1 - this comparison takes more meaning when we accept that quality exists only in the eyes of the customer. In its Annual Report, 2000, Ford Motor Company's then CEO, Jacques Nasser, says "... our vision makes customers the foundation of everything we do ...".
Topics
The topics to be studied in this chapter are:
- 3.1 Productivity, profitability and quality
Cost and quality - 3.2 TQM
- 3.3 Implementing Quality
- 3.4 The thinkers and their teachings
Deming
Juran
Crosby - 3.5 TQM - core concepts
- 3.6 Implementing TQM
Establishing the quality culture
Learning outcomes
When you have completed this chapter, you should be able to:
- understand the concept of Total Quality Management (TQM);
- explain the role of quality in productivity;
- discuss organisational factors crucial to the successful implementation of TQM.
