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MGT613 - Production / Operations Management - Lecture Handout 26

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TOTAL QUALITY MANAGEMENT-I

In this lecture we will look into detail TQM. We will initially focus on Six Sigma concept. We will try to understand six sigma concepts in terms of managerial and technical perspective. We will also try to understand the Deming Wheel of Quality and seven common tools of quality. And last but not the least we will also try to understand the concepts of statistical process control and benchmarking with respect to quality.

ISO Certifications

Quality Certification ensures that the organization has been able to achieve TQM philosophy. The two popular certifications which are pursued by the organizations include ISO 14000 and ISO 9000.

  1. ISO 14000: Is a set of international standards for assessing a company’s environmental performance.
  2. ISO 9000: Is a set of international standards on quality management and quality assurance, critical to international business.

Six SIGMA

Statistically speaking a process is said to be in Six Sigma stage if it does not have more than 3 or 4 defects per million. Most of the organizations, measure their quality program in terms of Six Sigma. Conceptually the Six Sigma Program is designed to reduce defects and requires the use of certain tools and techniques.

Six Sigma Programs are always directed towards quality improvement, cost cutting and time saving. Six Sigma Programs are employed in:

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MGT613 - Production / Operations Management - Lecture Handout 23

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Related Content: MGT613 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of Production & Operations Management

MANAGEMENT OF QUALITY

After completing the lecture on Management of Quality, the POMA students should be able to understand the term quality and the importance of Quality. The student should be able to learn the Determinants of Quality, when they discuss Total Quality management also they should be able to identify the various costs associated with Quality. The students should also be able to appreciate the famous ISO 9000 and ISO 14000 quality systems, which are also actively seen in Pakistan. And last but not the least out of curiosity than academic interest the students should be aware of philosophies of
Quality Gurus.

Introduction

Quality Management can be understood only if we are able to understand the term quality, which is defined as

Quality is the ability of a product or service to consistently meet or exceed customer expectations.

Quality as determinant of Revenue has been often neglected, people tend to associate quality with high price of the product or item they want to purchase, historically speaking this is an incorrect statement. The debate between American and Japanese philosophy proves that quality is offered free of cost and is the prime source of revenue or profit.

  • When the American industry in 70s and 80s talked about cost cutting and productivity improvement they did not paid heed to Quality Management, which was the “Holy Grail” for the Japanese Industry.
  • When Japanese manufacturers entered and occupied the American Markets the only thing that made their products and services better than the Americans was the concept of Quality, which led to increase in the revenues and productivity of Japanese manufacturers.

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