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Course: Quality Management (5575)
ASSIGNMENT No. 1
Q. 1 Explain tools and techniques for quality management. What toolscould be used for planning, data collection, and analysis, and forcontrinuous improvement?
A!- Many of the tools and techniques in current use have their roots in post-
World War II Japan. Dr. W. Edwards Deming used statistical methods to improve
quality with a strong focus on the customer or end user, while in the process
maing organi!ations more productive and profita"le. #lthough this user-needs
focus is now widely accepted, it was an unconventional perspective at the time.
Deming$s approach wasplan, do, check, and act% later he e&panded these ideas
to'
(. Design the product.
). Mae it% test it in the production line and the la"oratory.
*. +ut it on the maret.
. est it in service% find out what the user thins of it, and why the nonuser
has not "ought it.
Joseph Juran also did much to promote quality improvement, especially a
product$s fitness of use. Fitness of use is defined as "oth ( freedom from
defects and deficiencies, and ) product features that meet the user$s needs.
hese two ideas continue to evolve in more recent quality management ideas
and practices. /or e&le, the 0i& 0igma principle, which attempts to limit
defective units per "illion to two, is a disciplined e&le of the first definition of
fitness of use a"ove. Individuals woring with human factors to understand howend users interact with various graphical user interfaces would "e an e&le of
the second definition.
ools and techniques for quality management are numerous. # Pareto diagram
is a histogram with columns or "ars ordered from most common to least. /igure
1
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1-2 from 0chwal"e 3see "elow shows an e&le of a +areto diagram. It is a
graphical way of summari!ing where most pro"lems occur with a product, or
what most users would lie to see included in a product. It is an important
graphical display tool, as often a great ma4ority of pro"lems or needs fall into the
same category. 5ften, the num"er of individuals providing input is somewhat
limited, so that issues can "e classified and enumerated from the entire
population.
Statistical samplingis often necessary to test the quality of products produced,
as looing at each individual product would "e very time consuming and cost
prohi"itive. he sample must "e random, and large enough to represent the
entire population of products with some degree of certainty.
he term quality means different things to different people. /or e&le, a
quality automo"ile may "e one, which has no defects and wors e&actly as we
e&pect. 0uch a definition would fit with an oft-repeated definition "y J.M Juran
67uality is fitness for use.6 8owever, there are other definitions widely discussed.
7uality as 6conformance to specifications6 is a position that people in the
manufacturing industry often promote. Why9 +resuma"ly "ecause manufacturing
can do nothing to change the design% hence this definition. 5thers promote wider
views which include the e&pectations that the product or service "eing delivered
( meets customer standards, ) meets and fulfills customer needs, * meets
customer e&pectations, and will meet unanticipated future needs and
aspirations. 0till others simply ignore definitions and say 6I$ll now quality when I
see it.6 It seems that we all $now$ or $feel$ somehow what quality is. # product or
service that e&ceeds our preconceived idea a"out the quality of that product or
service is liely to "e 4udged as having 6high quality.6 It is equally clear that the"est of a group of "ad products is not liely to "e perceived as a quality product.
:ac of management commitment. When management tals 7M, "ut its actions
fails to support the effort, it will ultimately fail to meet e&pectations. he result is
cynicism and mistrust and difficulty launching another attempt. /or
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implementation to succeed, management must clearly and frequently
communicate the reason for adopting 7M, as if it is another fad.
; efore implementing 7M, management should strive for an
organi!ation wide commitment, clearly communicate the organi!ation=s vision,
mission, and goals, and foster open communication a"out the organi!ation=s
changed focus.
; ?se of data. 7M relies on data"ased decision maing. o succeed in "uilding
and sustaining a 7M environment, data must "e accurate, timely and relia"le.
he measurement process used must "e valid and consistent, and data access
should "e efficient. Decision maers must "e trained in data analysis and
interpretation.5ther pro"lems, many of which fall under the four previous categories, include,
"ut are not limited to'
; :ac of strategic direction
; :ac of shared vision, mission, or guiding principles
; :ac of cooperation and teamwor among different worgroups
; /ocus on short-term profits rather than on long-term goals
; /ailure to understand what teamwor entails
; /ailure to focus on customers= need and e&pectations
; :ac of mutual trust and respect among level of employees
; insufficient resources or lac of sustained commitment of those resources
; :ac of continual and effective training and education
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; Management=s failure to recogni!e and @ or reward achievements
7M, as a term, is not used as widely in the ?nited 0tates as it once was. Most
of the concepts, principles, and methodology have "een su"sumed under the
term quality management. 7uality is an important factor in today=s increasingly
glo"ali!e and li"erali!ed marets, and it is considered that the application of
quality management techniques will mae a positive contri"ution to the
competitive performance of countries, economic sectors and individual
organi!ations. 0ince competitiveness contri"utes to sustaina"le development,
the widespread diffusion and implementation of quality management seems
desira"le from a national point of view. Aecently in :atin #merica there has "een
a growing tendency for governments to esta"lish programmes that promote and
support the dissemination of quality management techniques. In this respect,
quality issues will play an increasingly important role in the economic and social
development o"4ectives of the countries in the region. Bevertheless, the
implementation of total quality management 37M innovations has not proved to
"e either easy or rapid' for e&le, in :atin #merica the I05 C standards for
quality systems have not spread as quicly as in most other regions of the world.
he author identifies maret considerations, limited access to resources,
traditional management practices and macroeconomic conditions as o"staclesthat have limited the level of quality awareness in the region. hese o"stacles
may "e associated with maret flaws that occur within companies, "etween
companies and in factor marets. arious governments have therefore chosen to
promote quality management techniques in order to mae the necessary
ad4ustments to these flaws. he article concludes with an overview of the
activities carried out in some selected :atin #merican countries in order to
enhance the diffusion of I05 C quality management systems.
he !even "asic #ools of Quality is a designation given to a fi&ed set of
graphical techniques identified as "eing most helpful in trou"leshooting issues
related to quality. hey are called basic"ecause they are suita"le for people with
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little formal training in statistics and "ecause they can "e used to solve the vast
ma4ority of quality-related issues.
he 0even >asic ools of 7uality includes '
Ishiawa 3fish"one diagram,
enei. #t that
time, companies that had set a"out training their worforces in statistical quality
control found that the comple&ity of the su"4ect intimidated the vast ma4ority of
their worers and scaled "ac training to focus primarily on simpler methods
which suffice for most quality-related issues. he 0even >asic ools stand incontrast to more advanced statistical methods such as survey sampling,
acceptance sampling, statistical hypothesis testing, design of e&periments,
multivariate analysis, and various methods developed in the field of operations
research.
$escription of the tools
he seven tools are'
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+areto chart
0catter diagram
0tratification3alternately, flow chartor run chart
%shi&a'a (fishbone) diagram
Ishiawa diagram 3called sometimes fish"one diagram or cause-and-effect
diagram was introduced "y Gaoru Ishiawa 3(CH1 and show the causes of a
specific event.
usiness Improvement #rchitect$s 0trategic 7uality
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+lanning +rocess are'
%dentifying the -rganiational Quality %nitiatives
We$ll wor with your organi!ation$s 7uality Manager and team to identify andassess all of the various quality initiatives that they have used in the past and the
present.
/nderstanding the 0oice of the *ustomer
o ensure that the new 7uality 0trategy has a clear customer focus, we wor
with to identify current and future staeholder@customer requirements through
research and review of your organi!ation$s product and services deliveryprocess.
%dentifying Employee %nvolvement
We ensure employee input is considered in the strategic planning process to
enrich the quality of the final plan and gain their commitment, "uy-in and support
for the implementation phase.
*onducting "enchmar&ing
We "elieve that it is "eneficial to conduct "enchmaring as part of the planning
process to learn what others are doing 3including competitors and to learn from
them. 0uch effort is worthwhile as it provides information a"out "est practices
and generates useful ideas for improving internal quality processes.
$eveloping the 0ision and !trategic $irection
We facilitate the creation of your 0trategic 7uality ision and 7uality 0trategies.
his includes' the structure and approach to quality throughout the organi!ation,
what tools and processes to use to esta"lish quality and how quality will "e
measured. It will also include the outcomes of quality on your organi!ation$s
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products, services and what customers will "e saying a"out them.
$eveloping a !tatement of Quality and Quality !tandards
We$ll wor with you to develop' # 0tatement of 7uality that is highly relevant to descri"e what quality will
mean for in the organi!ation. It will clearly descri"e the overall goals,
mandates and o"4ectives for the quality initiative.
7uality 0tandards to guide employees in achieving the 0tatement of
7uality.
%dentifying the Quality !trategies
We facilitate a process to translate the quality vision, quality statement and
quality standards into ey strategies. his process includes a ris assessment.
$eveloping -perational Effectiveness
We facilitate an 5perational Effectiveness +lan to identify the requirements for
each 7uality 0trategy with detailed #ction +lans.
$eveloping !trategy easurements
We ensure that you have the right measures are in place to monitor and manage
quality on a forward going "asis.
Q. 2 (a) What are the characteristics of Quality 3unction $eployment as a
quality system?
Quality function deployment (Q3$)is a method to transform user demands
into design quality, to deploy the functions forming quality, and to deploy
methods for achieving the design quality into su"systems and component parts,
and ultimately to specific elements of the manufacturing process., as descri"ed
"y Dr. Lo4i #ao, who originally developed 7/D in Japan in (CHH, when the
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author com"ined his wor in quality assurance and quality control points with
function deployment used in value engineering. 7/D is designed to help
planners focus on characteristics of a new or e&isting product or service from the
viewpoints of maret segments, company, or technology-development needs.
he technique yields charts and matrices. 7/D helps transform customer needs
3the voice of the customer 5
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"eyond quality to cost, technology, relia"ility, function, parts, technology,
manufacturing, and service deployments.
In addition, the same technique can e&tend the method into the constituent
product su"systems, configuration items, assem"lies, and parts. /rom these
detail level components, fa"rication and assem"ly process 7/D charts can "e
developed to support statistical process controltechniques.
5ugh concept selection
+ugh
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called 6catch"all6. ?se of these 8oshin techniques "y ?.0. companies such as
8ewlett +acard have "een successful in focusing and aligning company
resources to follow stated strategic goals throughout an organi!ational hierarchy.
0ince the early introduction of 7/D, the technique has "een developed to
shorten the time span and reduce the required group efforts.
(b) What must an organiation do to maintain a customer focus and
explain the benefits of maintaining customer focus?
A!
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usiness #dministration. /or
e&le, a diet company may let a customer visuali!e herself fitting into her new
"athing suit when writing a direct mail sales letter.
5ricing
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A!-he term quality management has a specific meaning within many
"usiness sectors. his specific definition, which does not aim to assure $good
quality$ "y the more general definition, "ut rather to ensure that an organi!ation
or product is consistent, can "e considered to have four main components'
quality planning, quality control, quality assurance and quality improvement.
7uality management is focused not only on product@service quality, "ut also the
means to achieve it. 7uality management therefore uses quality assurance and
control of processes as well as products to achieve more consistent quality.
Quality management evolution
7uality management is a recent phenomenon. #dvanced civili!ations that
supported the arts and crafts allowed clients to choose goods meeting higher
quality standards than normal goods. In societies where arts and crafts are the
responsi"ility of a master craftsman or artist, they would lead their studio and
train and supervise others. he importance of craftsmen diminished as mass
production and repetitive wor practices were instituted. he aim was to produce
large num"ers of the same goods. he first proponent in the ?0 for this approach
was Eli Whitneywho proposed 3interchangea"le parts manufacture for musets,
hence producing the identical components and creating a muset assem"ly line.
he ne&t step forward was promoted "y several people including /rederic
Winslow aylor a mechanical engineer who sought to improve industrial
efficiency. 8e is sometimes called 6the father of scientific management.6 8e was
one of the intellectual leaders of the Efficiency Movement and part of his
approach laid a further foundation for quality management, including aspects lie
standardi!ation and adopting improved practices. 8enry /ordwas also important
in "ringing process and quality management practices into operation in hisassem"ly lines. In Oermany, Garl /riedrich >en!, often called the inventor of the
motor car, was pursuing similar assem"ly and production practices, although real
mass production was properly initiated in olswagen after World War II. /rom
this period onwards, Borth #merican companies focused predominantly upon
production against lower cost with increased efficiency.
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Walter #. 0hewhart made a ma4or step in the evolution towards quality
management "y creating a method for quality control for production, using
statistical methods, first proposed in (C). his "ecame the foundation for his
ongoing wor on statistical quality control. W. Edwards Deming later applied
statistical process control methods in the ?nited 0tates during World War II,
there"y successfully improving quality in the manufacture of munitions and other
strategically important products. 7uality leadership from a national perspective
has changed over the past five to si& decades. #fter the second world war, Japan
decided to mae quality improvement a national imperative as part of re"uilding
their economy, and sought the help of 0hewhart, Deming and Juran, amongst
others. W. Edwards Demingchampioned 0hewhart$s ideas in Japan from (CK
onwards. 8e is pro"a"ly "est nown for his management philosophy esta"lishing
quality, productivity, and competitive position. 8e has formulated ( points of
attention for managers, which are a high level a"straction of many of his deep
insights. hey should "e interpreted "y learning and understanding the deeper
insights. hese ( pointsinclude ey concepts such as'
>rea down "arriers "etween departments
Management should learn their responsi"ilities, and tae on leadership
0upervision should "e to help people and machines and gadgets to do a
"etter 4o"
Improve constantly and forever the system of production and service
Institute a vigorous program of education and self-improvement
In the (CKs and (CHs, Japanese goods were synonymous with cheapness and
low quality, "ut over time their quality initiatives "egan to "e successful, with
Japan achieving very high levels of quality in products from the (C2s onward./or e&le, Japanese cars regularly top the J.D. +owercustomer satisfaction
ratings. In the (C1s Deming was ased "y /ord Motor
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oyota +roduction 0ystem. Many of the methods not only provide techniques "ut
also have associated quality culture 3i.e. people factors. hese methods are now
adopted "y the same western countries that decades earlier derided Japanese
methods.
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*ustomer focus
0ince the organi!ations depend on their customers, therefore they should
understand current and future customer needs, should meet customer
requirements and try to e&ceed the e&pectations of customers. #n organi!ation
attains customer focus when all people in the organi!ation now "oth the internal
and e&ternal customers and also what customer requirements must "e met to
ensure that "oth the internal and e&ternal customers are satisfied.
:eadership
:eaders of an organi!ation esta"lish unity of purpose and direction of it. hey
should go for creation and maintenance of such an internal environment, in which
people can "ecome fully involved in achieving the organi!ation$s quality
o"4ective.
%nvolvement of people
+eople at all levels of an organi!ation are the essence of it. heir complete
involvement ena"les their a"ilities to "e used for the "enefit of the organi!ation.
5rocess approach
he desired result can "e achieved when activities and related resources are
managed in an organi!ation as process.this may also affect the
!ystem approach to management
#n organi!ation$s effectiveness and efficiency in achieving its quality o"4ectives
are contri"uted "y identifying, understanding and managing all interrelated
processes as a system.
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*ontinual improvement
5ne of the permanent quality o"4ectives of an organi!ation should "e the
continual improvement of its overall performance.
3actual approach to decision ma&ing
Effective decisions are always "ased on the data analysis and information.
utually beneficial supplier relationships
0ince an organi!ation and its suppliers are interdependent, therefore a mutually
"eneficial relationship "etween them increases the a"ility of "oth to add value.
hese eight principles form the "asis for the quality management system
standard I05 C(')1.
Q. ; Why %!- certification is important for both service and manufacturing
organiations? What possible problems an organiation can come
across in 5a&istan 'hile getting quality standard certification, discuss
in detail.
While I05 3International 5rgani!ation for 0tandardi!ation certification is certainly
not the only thing that should "e e&amined when you are evaluating potential
corporate partnerships, it is an indicator that a company has invested significant
time and effort to implement an o"4ective quality assurance program. o ensure
that an I05 system is "eing effectively implemented, companies that see
certification must commit themselves to monitor, control and attempt to improve
quality. #udits must "e implemented to evaluate the effectiveness of the effort,
and identify any shortcomings that need corrective action. Lou should "e aware
that certification is not necessarily companywide% different practice areas may
need to have individual certification. 0o simply "ecause a company states that
they are I05 C(')1 certified doesn=t necessarily mean that they are I05
C(')1 certified in the area that provides the services you see.
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I05 enefits of I05 C
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I05 ( is primarily concerned with 6environmental management. his means
what the organi!ation does to minimi!e harmful effects on the environment
caused "y its activities and continually improving its environmental performance.
*an any vendor be %!-certified?
Les. here are appro&imately )K, companies worldwide registered to I05
standards. #ny company willing to mae the effort can "e certified.
Why should % require vendors to be %!-certified?
I05 is direct evidence of a company$s financial and ethical commitment to
provide high quality, safe products. I05 certified companies maintain comprehensive internal audit programs
that demonstrate to customers the effectiveness of their quality and
environmental efforts.
I05 certified companies utili!e systems that have "een accepted for use
"y over 1 countries as effective means to achieve product quality and
environmental stewardship.
I05 certified companies document, review, and approve product designs
that meet applica"le safety, regulatory, and customer requirements.
I05 certified companies prove their systems through audits "y
independent registrars. Aegistrars are governed "y strict international
codes that dictate operating practices, audit methods, and staff
qualifications. /ailure to maintain quality program requirements will lead to
de-certification "y the registrar.
I05 certified company products reduce the need for the "uyers to perform
audits and reviews to determine if quality systems are in place and "eing
maintained.
# certificate of analysis from an I05 certified company will "e supported
"y documented procedures and records that demonstrate its validity. his
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is particularly important should a customer ever have a reason to question
product quality.
7uality is something every company strives for and is often times very difficult to
achieve.
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audits P (st, )nd, and *rd party audits. #n internal audit is a (st party audit. I05
C encourages 3and requires this type of audit so that an organi!ation can get
feed"ac quicly from those who now the company "est. 8owever, this audit
process cannot "e viewed as impartial. herefore, )nd party audits allow for a
consumer to evaluate the performance on an organi!ation. #s an alternative to a
)nd party audit, many companies choose to "ecome certified with I05 C
through a *rd party audit. In this case, an independent certification "ody comes
into an organi!ation and evaluates it in terms of the I05 C guidelines. If an
organi!ation meets the requirements of the standard, it "ecomes certified in I05
C and carries a seal of quality recogni!ed throughout the world.
Why is %!-
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delivering the products and services that the customer is looing for. With
nowledge of customer needs, resources can "e allocated appropriately and
efficiently. Most importantly, a "usiness=s dedication will "e recogni!ed "y the
customer, creating customer loyalty. #nd customer loyalty is return "usiness.
+. >ood :eadership
# team of good leaders will esta"lish unity and direction quicly in a "usiness
environment. heir goal is to motivate everyone woring on the pro4ect, and
successful leaders will minimi!e miscommunication within and "etween
departments. heir role is intimately intertwined with the ne&t I05 C principle.
2. %nvolvement of people
he inclusion of everyone on a "usiness team is critical to its success.
Involvement of su"stance will lead to a personal investment in a pro4ect and in
turn create motivated, committed worers. hese people will tend towards
innovation and creativity, and utili!e their full a"ilities to complete a pro4ect. If
people have a vested interest in performance, they will "e eager to participate in
the continual improvement that I05 C facilitates.
7. 5rocess approach to quality management
he "est results are achieved when activities and resources are managed
together. his process approach to quality management can lower costs through
the effective use of resources, personnel, and time. If a process is controlled as a
whole, management can focus on goals that are important to the "ig picture, and
prioriti!e o"4ectives to ma&imi!e effectiveness.
;. anagement system approach
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achieve improved productivity. 0ome results include integration and alignment of
ey processes. #dditionally, interested parties will recogni!e the consistency,
effectiveness, and efficiency that come with a management system. >oth
suppliers and customers will gain confidence in a "usiness=s a"ilities.
. *ontinual %mprovement
he importance of this principle is paramount, and should a permanent o"4ective
of every organi!ation. hrough increased performance, a company can increase
profits and gain an advantage over competitors. If a whole "usiness is dedicated
to continual improvement, improvement activities will "e aligned, leading to faster
and more efficient development.
Aeady for improvement and change, "usinesses will have the fle&i"ility to react
quicly to new opportunities.
@. 3actual approach to decision ma&ing
Effective decisions are "ased on the analysis and interpretation of information
and data. >y maing informed decisions, an organi!ation will "e more liely to
mae the right decision. #s companies mae this a ha"it, they will "e a"le to
demonstrate the effectiveness of past decisions. his will put confidence in
current and future decisions.
. !upplier relationships
It is important to esta"lish a mutually "eneficial supplier relationship% such a
relationship creates value for "oth parties. # supplier that recogni!es a mutually
"eneficial relationship will "e quic to react when a "usiness needs to respond to
customer needs or maret changes. hrough close contact and interaction with a
supplier, "oth organi!ations will "e a"le to optimi!e resources and costs.
Why is root cause analysis and systemic corrective action so important in
management system standards, such as %!-
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When pro"lem solving, it is important to find the cause of pro"lem in order to
develop a solution. 0ometimes, the most o"vious cause is not the right one. his
is why I05 C stresses the importance of finding the root cause3s of a
pro"lem. here may "e multiple, su"tle reasons why a process isn=t woring
correctly, and finding the actual causes will lead a company one step closer to a
solution and implementation of corrective actions.
he goal of finding root causes is to improve the way pro"lems are managed.
>ecoming adept in recogni!ing the root causes of a pro"lem will lead to a
reduced impact, a containment of error, and the prevention of recurrence.
Identifying and correcting root causes will also lead to the reduction of
unnecessary efforts which in turn will lower the cost of maintaining quality. #smore and more corrective actions are taen, processes will "ecome more sta"le,
and continual improvement will face less interruptions.
4o' does %!-
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monitor the progress of a product or service as it goes through each stage of
production, from development to testing to assem"ly to customer feed"ac.
5ne cornerstone of I05 C is continual improvement. Bo company should
ever "e satisfied with the conditions of a process at the given moment% they
should always "e looing for ways to mae these processes more efficient and
effective. I05 C was written with the "usiness world=s insatia"le desire for
e&cellence in mind. his is why continual improvement is a requirement of the
standard P to inspire progress and the pursuit of perfection.
I05 C is an internationally recogni!ed standard, and that may seem daunting
for some smaller "usinesses. 8ow are they going to implement the same
standard adopted "y multi-national corporations9 7uite easily, actually. I05 C
is a fle&i"le standard that lays down requirements for an organi!ation to follow,
"ut allows the organi!ation to fulfill these requirements any way they choose.
his increases I05 CQs scope of effectiveness, allowing a wide range of
companies to create quality management systems that match their needs.
I05 C is seen in every sector of the "usiness world, and its success is a
testament to its worth. With a focus on customer satisfaction, products andservices improve and flourish under I05 CQs quality management system.
With a com"ination of continual improvement and corrective actions P tenets of
I05 C P a "usiness will create processes that run smoothly and efficiently.
Q16eference#uthors' Integration of
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Q;6eference !trategic anagementC *ontemporary %ssues
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