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Total Quality Management (Tqm) Philosophy Essay

965 words - 4 pages

Executive Summary
There were seven forefathers that each contributed to the combined features of the total quality management (TQM) philosophy. TQM focuses on identifying root causes of quality problems and correcting them at the source. Not only does TQM includes the entire organization but it stresses that quality is customer driven (Reid, 2010). The quality assurance processes are within the TQM philosophy. Quality assurance (QA) refers to a program for the systematic monitoring and evaluation of the various aspects of a project, service, or facility to ensure that standards of quality are being met (Wikipedia, 2010). I will give an example of a quality assurance program by creating a ...view middle of the document...

This requires solid identification of who the product is intended (Reid, 2010). Quality function deployment (QFD) is the tool used to translate customer needs into specific engineering requirements. Often called the seven tools of quality control, they are causes-and-effect diagrams, flowcharts, checklist, scatter diagrams, Pareto analysis, control charts and histograms (Reid, 2010). The charts provide the measureable to assure we are providing what the customer wants.
Part of finance's role is to understand and monitor cost. It is their job to translate quality into specific dollar terms. It is their job to know exactly how much each square yard of material cost. This cost is measureable. This cost will serve as a baseline for monitoring the financial impact of quality efforts and can be a great motivator (Reid, 2010). Tracking this cost on a daily, weekly and monthly basis is a form of measure. The finance department should be in tune with the four costs of quality. The first two costs, prevention and appraisal, are preventive cost; they are intended to prevent internal and external failure cost. These costs are measureable. The reason for measuring these costs is to know the right amount to invest in preventive cost to hold down failure cost. Financial analysis of these costs is critical. This includes cost relating to preventing and eliminating defects, training employees, reviewing new products, and all other quality efforts (Reid, 2010).
It is purchasing responsibility to acquire the materials needed to make the product. Purchasing must locate sources of supply, insure that parts and material are of sufficiently high quality and negotiate a purchase price that meets the company's budget as identified by finance (Reid, 2010). As mentioned earlier, quality is number one. Therefore, we must purchase the best quality materials to compete in the markets we have identified. Whenever purchasing cannot get the desired materials at the budgeted amount given by finance, that difference is measureable. This measure monitors how well we are staying on budget. If we are consistently above budget, we will need...

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