BRADFORD UNIVERSITY

SCHOOL OF MANAGEMENT

YEAR: 2003/04 5 ^TH JANUARY 2004 DUE DATE: STUDENT: MICHAEL ROCKEL

Table of contents

Table of  contents.  III

Table of  figures  V

1  Introduction  1

1.1  What causes the need to adapt our company?  1

1.2  What can TQM do in this case?  2

2  Definitions  3

2.1  Quality.  3

2.2  Definition and Development of TQM  3

3  The concept of TQM  5

3.1  The TQM Model  5

3.2  Main Aspects of TQM  6

3.2.1  Employee-orientation.  6

3.2.2  Customer-orientation  6

3.2.3  Constant improvement  7

4  The quality sta ndard ISO 9000  8

5  Why do we need TQM?  11

5.1  Quality-related-cost.  11

5.1.1  Prevention Cost  12

5.1.2  Appraisal Cost  12

5.1.3  Failure Cost  12

5.1.4  Influence of TQM on the total quality cost.  12

5.2  Consumer benefit.  13

5.3  Company benefit  13

6  How can TQM be implemented  14

6.1  Tools for the implementation.  14

6.1.1  Identification tools  14

6.1.2  Identification and analysis tools  14

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6.2  TQM implementation phases  15

6.2.1  Analysis-phase  15

6.2.2  Design-phase.  15

6.2.3  Realisation-phase  16

6.2.4  Maintenance-phase  16

6.3  Main problems for the implementation of TQM.  17

6.3.1  Management  17

6.3.2  Employees.  17

6.3.3  Implementation traps  18

7  Success Factors of TQM  19

Bibliography   IV

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Table of  figures  

Figure  1: Challenges of today’s business environments  

Figure  2: TQM in the model of operations improvement  

Figure  3: Development of Total Quality Management  

Figure  4: TQ-Mmodel  

Figure  5: ISO 9000 Standards  

Figure  6: Motives for implementing ISO 9000  

Figure  7: Relationship between cost of quality and organization capability  

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1 Introduction

In contemporary business environments with an increasing degree of globalization and international supply relationships there is a growing demand for comparable quality standards. More and more buying decisions are not only based purely on the attributes of the product itself but also on the quality standards of the organization that produces it. Accredited companies tend to by their products only form accredited ones. The ever increasing quality-focus made quality become a constant element of the marketing-mix and a strategic success factor (Anonymus, 2002). The implementation and application of Total Quality Management (TQM) has become a philosophy for most of today’s companies. The following essay will outline the main elements of TQM, describe implementation processes and evaluate the needs and threats of TQM.

1.1 What causes the need to adapt our company?

In today’s global business environments big changes occur , boost up the speed in which new companies have to face new challenges. The impact of the changes on contemporary businesses is increasing. The question today is not if things are going to change, but when (Harigopal 2001, pp. 16). As the markets are getting more and more competitive and are subject to enormous changes, there are several aspects that can be influenced in order to create a competitive advantage for a business.

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Figure 1: Challenges of today’s business environments (Kobi 1996, pp. 13-14), (Anderson 2001, pp. 16-18)

The aspects, described above underline the major changes in the three areas of social, economic and technical kind. Every company has to adapt to these in the best possible way in order to survive in the changed surroundings. TQM can be seen as one of these strategies to gain competitive advantage in today’s markets. TQM helps to improve internal processes, satisfying customer’s-needs in the long run cutting down the cost of running a business (Dale and Oakland 1991, pp. 11-13) and has the major positive impact on creating competitive advantages.

1.2 What can TQM do in this case?

Total quality management can support and strengthen the position of a company and is described as the ‘fast track’ to improve performance and profitability in the companies’ processes (Anonymus, 2002) in order to be able to act more competitively in the markets.

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