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TOTAL QUALITY MANAGEMENT (TQM) AND W. EDWARD DEMING.
Term Paper ID:30084
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Essay Subject:
Discusses elements of the TQM approach. TQM objectives, programs and implementation.... More...
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4 Pages / 900 Words
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Paper Abstract:
Discusses elements of the TQM approach. TQM objectives, programs and implementation. Need for employee commitment. Pioneering wotk of Deming within TQM. His focus on concrete changes that can take place in an organization committed to quality. His qualitative techniques. Initial rejection of Deming's approach by U.S. companies. The acceptance of his ideas in Japan.
Paper Introduction:
Introduction
Total Quality Management (TQM) is a management approach which seeks to establish zero defects in any part of an organization, and which uses teams, worker empowerment and creative problem solving to accomplish this aggressive goal. Originally developed for the manufacturing sector, TQM programs are now found throughout organizations, including marketing, production, finance and customer support. A TQM program encompasses all aspects of a company's operations, including its hiring and promotional practices, the way the company itself is structured, and the culture that the company develops. In some cases, TQM programs are implemented in companies that already have some quality emphasis; in other cases, TQM programs are laid into companies totally lacking a commitment to quality. The way in which TQM is implemented
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With the proliferationof the Internet, single-employee companies can thrive and conduct businesswith much larger organizations, and employees of large companies can workfrom their homes with far greater autonomy than in the past. The manor lords have been replaced by owners and managerswho oversee the activities of their serfs (labor). Bridges, L., et al. Originally developed for the manufacturing sector, TQMprograms are now found throughout organizations, including marketing,production, finance and customer support. 69). Without this commitment,the organization cannot put the necessary resources into the TQM program,and the program will be destined for failure. 11. References Bourge, C. O'Connor, M. (1999, March 1). Even largetraditional companies such as Dow Chemical, Boeing, AlliedSignal, andGeneral Electric are installing sophisticated e-business systems. New companies can avoid this situationbecause they are able to start their businesses with an Internet focus.The Internet allows people to collaborate in ways never before possible.In this way, companies can seize market opportunities before traditionalmarketers even realize their markets were at risk (De Rozario, 1999, p.22). These "extended enterprises" result inan order transaction at one company (for example) triggering an order forparts at another company through e-commerce connections, and payment forthat order occurring automatically through integrated purchase order,payment approval and electronic funds transfers (Yang & Papazoglou, 2 ,p. Continuous improvement is another innovation of Deming which suggeststhat quality is not a goal which is achieved and then maintained, butrather that it is a continuous process which demands real participation bymanagement and employees on a day-to-day basis. Edward Deming Deming focuses on concrete changes which can take place in anorganization that is committed to quality. Inthose organizations where information systems are already in place, it iscritical that they be used to their maximum ability to provide theinformation that the TQM system requires. Making the transition froma physical-distribution model to the electronic-distribution or e-commercemodel is not an easy thing to do, however. Conclusion With all the impressive projections of Internet business activity andexpressions of high expectations for the future, traditional businesses arelooking for ways to transform their activities. American Metal Market, p. (1999, March 29). 22. A Way of corporate life. Highly integrated auto, chemical, and metals companies, for example,are likely to be transformed through disaggregation (and then re-aggregation) of value creation, and products are likely to become knowledge-rich and service-enhanced. Products are designed by the company in multiple locationsdepending on where the appropriate personnel are located. & Hughes, D. 2). (1995, May). Since TQM represents a majorshift in the way that most organizations operate, it is not an inexpensiveprocess, nor is it a short-term program. Companies are integrating value chains using e-commerce in ways thatwere previously not even imagined. Learning and applying qualitymanagement is elementary. 73). TheDeming philosophy. (1995, February). High-tech rejuvenation. (2 , June). Total Quality Management TQM has gained much attention in recent years as Americanmanufacturers seek to improve their productivity and their profitability.At the heart of successful TQM programs is the requirement that allemployees at all levels of the organization be committed to the TQMprocess. 1 7). This research considers the pioneering work of W. Instead, companies need tolearn and understand how to use this channel and how to effectivelyintegrate it into their mix of business. The increasing numbers ofcompanies which have moved quality to a senior management level (includingthose which have vice-presidents of quality) demonstrate that Americancompanies are embracing Deming's approach to quality (Castellano, Roehm &Hughes, 1995, p. In Japan, however, wherethere is a stronger sense of community in the culture, these approachesworked, and worked well, with the result that Japanese factories are ableto turn out products that exhibit high quality characteristics at lowercost than American factories, even when working on products developedoriginally in the United States. (1997, March). The economicprinciple commonly known as the "law of diminishing returns," which saysthat companies realize smaller incremental gains for each new customerafter a certain point, either does not apply in the world of e-commerce, orsets in at a very high level. In addition, consensual decision making is based on bottom-uppractices rather than the top-down style favored in the West, and somecompanies in Japan offered lifelong employment (generally to the time thatemployees reach their mid-5 s) so that employees had a strong sense ofloyalty to the organization. CMA - the Management Accounting Magazine, pp. W. A. The Journal for Quality and Participation, pp.72-74. (1999, May 17). Some analysts have compared the traditionalhierarchical division of management and labor to the traditional feudalclass system. Spurned by American companies, Deming took his ideas toJapan where they were eagerly embraced decades before they took hold in theUnited States. 1 7. (1999, January 4). Conclusion Total Quality Management has become a favorite technique for improvingefficiency and productivity within organizations. P. Companies are finding that the Internet eliminates many of the limitsto scale which have traditionally plagued companies. 69-73. It is not more costly to reach the onemillionth customer than the seventh customer when using a Web site, and therevenue generated from the one millionth customer does not go to support alarger facility which, in traditional companies, would be necessary tosupport such a large operation ("Sales on the Internet," 1999, p. The business community will become linked asnever before, leading to an e-business community in which the physicalfactory may well be replaced, or at least supplemented by, the virtualfactory. Quality circles, for example, came from Deming, althoughthey are now generally attributed to the Japanese (O'Connor, 1995, p. Shame, or losing face, is also a strongmotivating cultural factor in Japan which has no real counterpart in theUnited States; all of these components change the environment in whichJapanese management takes place (Chen, 1995, p. A TQM program encompasses allaspects of a company's operations, including its hiring and promotionalpractices, the way the company itself is structured, and the culture thatthe company develops. Online sellingset to snowball in '99. Themarketing (and financial) message they and others are sending is thatcompanies must use the Internet if they are to remain competitive (Bridgeset al, 1999, p. Don't overplay e-business.Australian Banking & Finance, p. B. 25). Thus companies can exchange information fromlegacy systems as well as new systems and communicate that information toother entities using the Internet. The company alsouses the Internet as a platform for support, service, and sales, withnearly 7 percent of its total sales coming from the Internet ("A NewRace," 1999, p. The Impact of the Internet It is estimated that the Internet is likely to generate sales inexcess of $3.2 trillion in the year 2 3, a result of both revolutionaryand evolutionary factors. References Castellano, J. 25. TQM is successful whenthe commitment to the program comes from the highest levels of theorganization, and when there is strong and continuing support from alllevels. 41). (1995). The process has been adapted to companies that provideservices rather than products, and the principles of TQM should be able tobe applied to community policing, as well. Any TQM program requires the commitment of the highest levels of theorganization at the outset (Crosby, 1997, p. 89). For example, the e-business unit ofAvnet's computer-marketing group in Phoenix has experienced growthaveraging 3 percent per month since November 1997 (Gonsalves & Kerstetter,1999, p. Introduction Electronic commerce (e-commerce) integrates data and information frommany different sources. It is also estimated that domestic business-to-business trade on theInternet will reach more than $1.3 trillion by 2 3, which is more than 3 times the $43 billion transacted in 1998. SupermarketBusiness, pp. 7 ). PCWeek, p. 25-28. How the Internet is Used Nearly all companies which have a significant presence on the Internetdo so because it is an efficient and effective way to serve theircustomers. The result is that companies today facemanagement issues which did not even exist ten years ago. Because business supply chainsare expected to make increased use of e-commerce over the next five years,the computing and electronics industries, today's leaders in Internetcommerce, will be supplanted by the aerospace and defense, petrochemical,motor-vehicle, and utility industries (Bourge, 1999, p. Sales on the Internet willcreate an e-commerce boom. In small organizations, getting all employees to be involved inthe process can be accomplished through internal communications andtraining programs. 39-47. Yang, J., & Papazoglou, M. F., Harper R. Among manufacturers, companies such as Dell Computer, Oracle, Gateway,Cisco Systems, and Hewlett-Packard already are connect tens of thousands oftimes each day to other businesses as well as to consumers. EdwardDeming within TQM, and considers how his approach to TQM can influence itssuccess. This researchexamines the impact of the Internet and the ways in which companies aremanaging its use. Communications of the ACM, pp. De Rozario, R. Senior management, particularly in manufacturingcompanies, need to understand the impact that the Internet will have ontheir businesses. J. Asian Management Systems. 25). 2. However, merely announcing that a company is putting a quality programinto place is not enough. PC Week, p. As employees witness the success of the TQM program, that successhelps build future success, with the end result that employees are able tobuild a self-perpetuating quality environment which eventually becomes partof the corporate culture. Deming brought quantitative techniques to the issue of quality andprovided companies with the ability to measure quality in ways that theyhad not taken to heart before. The commitment that is so important can take theform of training, which can be handled through the human resourcedepartment, or it may require the implementation of a computer system. Interoperation supportfor electronic business. Effective TQM programs will havea long-term effect on the way that the organization works on a day-to-daybasis. Chen, M. Crosby, P. Theinnovations that he recommended can be difficult to implement in a societythat is used to hierarchical management, such as the United States was atthe time Deming was performing his research. New York: Routledge. In fact, it may not benecessary or even advisable for companies to embrace e-commerce at theexpense of their traditional business channels. (1999, March 25). Where other contributors to theTQM movement (such as Crosby) encouraged companies to focus on zerodefects; Deming provided the tools which enabled companies to accomplishthose goals that. 11). Gonsalves, A., & Kerstetter, J. Internet business figures to beintegral to steel industry. The threat can be even greater to traditional businesses whomust undertake an often significant investment in new resources in order tobecome competitive on the Internet. Introduction Total Quality Management (TQM) is a management approach which seeks toestablish zero defects in any part of an organization, and which usesteams, worker empowerment and creative problem solving to accomplish thisaggressive goal. The growth of electroniccommerce, at least in the short term, will in part be constrained by a lackof executive engagement. EB72). Purchasing, p. These sales will not be limited to such well-known companies as Amazon.com and eBay, companies whose Web sites aregarnering huge numbers of hits. This goes beyond merelyreporting the number of defects; instead, creative and imaginativesolutions to each department's problems should be developed to ensure thatthe TQM process receives the maximum support from this department. Long-term, the Internet is changing the fundamental ways in whichcompanies do business, and company structures are changing as a result.Companies are doing far more than just buying and selling: they are usingthe Internet to create wealth, and changing the relationship betweenmanagers and workers. In some cases, TQM programs are implemented incompanies that already have some quality emphasis; in other cases, TQMprograms are laid into companies totally lacking a commitment to quality.The way in which TQM is implemented can be critical in whether the programis an eventual success or failure, but also depends on which style of TQMis implemented. Cisco Systems uses the Internet as its foundation for productdesign. Deming also departed from traditional viewsof quality by suggesting that quality exists only in the mind of thecustomer: if the customer is not convinced of the quality of a product,the quality is not sufficient (O'Connor, 1995, p. There are several factors which contributed to Deming's acceptance inJapan while he was largely ignored within the United States. Sales on the Internet.
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