TOTAL QUALITY MANAGEMENT (TQM) AND PURCHASING
Assalamualaikum…….
Hello Everyone………….)
Today is
about Total Quality Management (TQM)
Total
quality management (TQM) is both a philosophy and a set of guiding principles
that represent the foundation for continuous organizational improvement. TQM is
the application of not only quantitative methods but also human resource
management principles to improve the materials and services supplied to an
organization, all the processes within that organization, and the degree to
which the needs of customers are met. The research discussed in this article
integrates the concepts, ideas, and findings that have emerged from ongoing
multi-phase studies of purchasing role in TQM. From this research, sponsored by
the centre for Advanced Purchasing Studies (CAPS), the investigators have
developed several ideas about what purchasing organizations should do to attain
total quality management goals. Besides, TQM is an approach that seeks to
improve quality and performance which will meet or exceed customer
expectations. This can be achieved by integrating all quality-related functions
and processes throughout the company. TQM looks at the overall quality measures
used by a company including managing quality design and development, quality
control and maintenance, quality improvement, and quality assurance. TQM takes
into account all quality measures taken at all levels and involving all company
employees.
The Origin
Of TQM
Total
quality management has evolved from the quality assurance methods that were
first developed around the time of the First World War. The war effort led to
large scale manufacturing efforts that often produced poor quality. To help
correct this, quality inspectors were introduced on the production line to
ensure that the level of failures due to quality was minimized.
After the
First World War, quality inspection became more commonplace in manufacturing
environments and this led to the introduction of Statistical Quality Control
(SQC), a theory developed by Dr. W. Edwards Deming. This quality method
provided a statistical method of quality based on sampling. Where it was not
possible to inspect every item, a sample was tested for quality. The theory of
SQC was based on the notion that a variation in the production process leads to
variation in the end product. If the variation in the process could be removed
this would lead to a higher level of quality in the end product.
After World
War Two, the industrial manufacturers in Japan produced poor quality items. In
a response to this, the Japanese Union of Scientists and Engineers invited Dr.
Deming to train engineers in quality processes. By the 1950’s quality control
was an integral part of Japanese manufacturing and was adopted by all levels of
workers within an organization.
By the
1970’s the notion of total quality was being discussed. This was seen as
company-wide quality control that involves all employees from top management to
the workers, in quality control. In the next decade more non-Japanese companies
were introducing quality management procedures that based on the results seen
in Japan. The new wave of quality control became known as Total Quality
Management, which was used to describe the many quality-focused strategies and
techniques that became the centre of focus for the quality movement.
The positive
relationship between perceived quality and profitability has been well
documented. The Profit Impact of Market Strategy (PIMS) data base shows this
correlation unequivocally. Analysis of the PIMS data has shown that in the long
term, the most important factor affecting a business unit's performance and
market share is the quality of its products compared with that of its
competitors. Superior relative quality is the most effective way for a business
to grow. Improved quality leads directly to market expansion and increased
market share.
In the short
term, superior quality leads to increased profitability and even the ability to
charge a premium price relative to a firm's competitors. As quality increases,
cost per unit invariably decreases at both the buying and the supplying firms.