Chapter 5 - Total Quality Management

Total Quality Management (TQM)

An organization-wide philosophy focused on continuous improvement and customer satisfaction.

Deming's 14 Points

A list of management principles aimed at improving effectiveness and quality.

Quality at the source

The practice of finding and fixing defects where they originate.

Continuous improvement

Ongoing efforts to improve products, services, or processes.

Internal failure costs

Costs associated with defects found before the product reaches the customer.

External failure costs

Costs that occur after the product has been delivered to the customer.

Appraisal costs

Costs related to measuring, testing, and analyzing materials and processes.

Prevention costs

Costs incurred to prevent defects, such as training and quality planning.

Fitness for use

A product's ability to meet the customer’s intended purpose.

Conformance to specifications

How well a product meets the design and operating standards.

Value for price paid

A customer's perception of whether the quality justifies the cost.

Psychological criteria

Subjective quality factors such as aesthetics, branding, and user feel.

PDSA cycle

Plan–Do–Study–Act cycle used to implement continuous improvement.

Pareto analysis

A method for identifying the most significant factors contributing to a problem.

Cause-and-effect diagram

Also called a fishbone diagram; identifies possible causes of quality issues.

Histogram

A bar chart showing frequency distribution.

Control chart

A statistical chart to monitor whether a process is in control.

Scatter diagram

A graph that shows the relationship between two variables.

ISO 9000

A set of international standards for quality management systems.

ISO 14000

International standards focused on environmental management.

Marketing in TQM

Identifies customer needs and relays information to operations.

Finance in TQM

Evaluates the cost of quality and supports decision making with financial analysis.

Accounting in TQM

Provides cost tracking for quality improvement initiatives.

Engineering in TQM

Translates customer requirements into technical specifications.

Purchasing in TQM

Sources quality materials that meet technical and budget specifications.

Human Resources in TQM

Recruits, trains, and incentivizes employees for a quality-focused culture.

Information Systems in TQM

Provides access to timely, relevant data across the organization.