Unit 10 Quality Management

Unit 10 Quality Management
1. Quality Management
Quality management is the act of overseeing different activities and tasks within an organization to
ensure that products and services offered, as well as the means used to provide them, are
consistent. It helps to achieve and maintain a desired level of quality within the organization.
1.1 Components of Quality management

Quality Planning – The process of identifying the quality standards relevant to the project and
deciding how to meet them.
Quality Improvement – The purposeful change of a process to improve the confidence or
reliability of the outcome.
Quality Control – The continuing effort to uphold a process’s integrity and reliability in achieving
an outcome.
Quality Assurance – The systematic or planned actions necessary to offer sufficient reliability so
that a particular service or product will meet the specified requirements.
1.2 The aim of quality management

It is to ensure that all the organization’s stakeholders work together to improve the company’s
processes, products, services, and culture to achieve the long-term success that stems from
customer satisfaction.
2. Just-in-time inventory system (JIT)

2.1 What is JIT?
- The management principle: Right product- Right quantity- Right place- Right time
- JIT is a management strategy that aligns raw-material orders from suppliers directly with
production schedules.
- The purpose is to increase efficiency and decrease waste by receiving goods only as they need
them for the production process, which reduces inventory costs. This method requires producers to
forecast demand accurately.
- JIT is a management strategy that minimizes inventory and increases efficiency.
- JIT manufacturing came into existence in 1930 in USA by Ford Automobils but it is well-known
as the Toyota Production System (TPS) because the car manufacturer Toyota adopted the system in
the 1970s.
- The success of the JIT production process relies on steady production, high-quality workmanship,
no machine breakdowns, and reliable suppliers.
Application:
- For manufacturing companies whose production procedures are repeated
- It is more suitable for small companies where the management of production and administration
is more flexible.
2.2 Advantages and Disadvantages of JIT

Advantages:
 More cost-efficient production.
 Continuous quality improvement.
 Waste Elimination.
 Improve productivity.
 Improve supplier relationships.
 Improve storage space used.
 Reduce costs associated with storage.
 Reduce manufacturing time.
Disadvantages:
 Complexity in planning.
 Lack of working capital.
 Supply chain failures.
 No opportunity costs.
 Compromise on quality.
 Industry specific.
3. Total quality management (TQM)

https://www.techtarget.com/searchcio/definition/Total-Quality-Management
3.1 What is TQM?
- Total quality management (TQM) is an ongoing process of detecting and reducing or eliminating
errors.
- It is used to streamline supply chain management, improve customer service, and ensure that
employees are properly trained.
- The focus is to improve the quality of an organization's outputs, including goods and services,
through the continual improvement of internal practices.
- It aims to hold all parties involved in the production process accountable for the overall quality of
the final product or service.
3.2 Principles of TQM

The eight guiding principles that TQM uses to improve quality include the following:
 Customer focus. The customer determines the quality level of the products and services.
Customer input is valued, as it provides a better understanding of what the customer needs.
 Employee involvement. All employees must participate in the processes and system. They
must be properly trained and given the needed resources to complete their tasks on time.
 Focus on process. Processes must be continually analyzed to identify weaknesses. Every
employee who takes part in the process should be properly educated in their contributions,
ensuring the right steps are taken at the right time.
 Integrated business systems. All TQM processes should be integrated into a business process.
Integrated systems convey potentially useful data across departments, enabling everyone to be
on the same page.
 Strategic and systematic approach. Planning and management are required using a strategic
plan with quality as a base component.
 Continual improvement. A focus on continually improving quality helps an organization
adapt to changing markets and achieve competitive advantages.
 Focus on data. Data should be collected, documented and analyzed to improve decision-
making accuracy and to predict trends based on previous history.
 Communication. Communication between teams with information such as strategies,
methodologies or timeliness is essential to improving operations. Good communication can also
motivate employees and improve morale.
3.3 The advantages and disadvantages of TQM

(1) Advantages of TQM
 Less product defects. An objective of TQM is to create products and services correctly the first
time. This means that products ship with fewer defects, reducing product recalls, future
customer support overhead and product fixes.
 Satisfied customers. High-quality products that meet customers' needs result in higher
customer satisfaction. High customer satisfaction, in turn, can lead to increased market share,
revenue growth via upselling and word-of-mouth marketing initiated by customers.
 Lower costs. As a result of less product defects, companies save money on customer support,
product replacements, field service and creating product fixes. The cost savings flow to the
bottom line, creating higher profit margins.
 Well-defined cultural values. Organizations that practice TQM develop and nurture core
values around quality management and continuous improvement. The TQM mindset pervades
across all aspects of an organization, from hiring to internal processes to product development.
(2) Disadvantages of TQM
 Planning and resources. TQM needs a significant amount of planning and resources over time
to be properly allocated to the change.
 Companywide commitment. Continuous improvement in TQM means the organizational
culture must focus on improving processes. All management levels must be supportive.
 Added costs. TQM might add training, infrastructure and team development costs.
 Time. It might take years for an organization to fully show intended results.
 Partial efforts. Because of the effort involved in implementing TQM, a partial move toward it
can result in failure.

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Unit 10 Quality Management

1.1 Components of Quality management

1.2 The aim of quality management

2. Just-in-time inventory system (JIT)

2.2 Advantages and Disadvantages of JIT

3. Total quality management (TQM)

3.2 Principles of TQM

3.3 The advantages and disadvantages of TQM

(2) Disadvantages of TQM

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