Total Quality Management: The Key to Business Improvement

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Total Quality Management: The Key to Business Improvement
Total Quality Management: The Key to Business Improvement
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Contents
Preface to the first edition ix
Preface to the second edition xi
Part One Introduction and Executive Summary 1
Introduction 3
How to use this book 3
Total Quality . . . is it really a strategic issue? 4
Part Two A Total Quality Approach 7
Overview 9
Section 1 - The basic concepts of Total Quality 11
Introduction - Six key concepts 11
Concept 1 - Customers (external and internal) 11
Concept 2 - Never-ending improvement 13
Concept 3 - Control of business processes 14
Concept 4 - 'Upstream' preventive management 16
Concept 5 - Ongoing preventive action 16
Concept 6 - Leadership and teamwork 18
Summary 19
Section 2 - A model management framework for
Total Quality 21
Introduction - Six key elements 21
Element 1 - Communication of missions, aims and
objectives 24
Element 2 - Collection of external intelligence 28
Element 3 - Measurement of internal performance 30
Element 4 - Identification of improvement
opportunities 32
Element 5 - Implementation of changes 34
Element 6 - Steering and co-ordination of the
Total Quality programme 36
Summary 38
Section 3 - Starting the change to Total Quality 39
Introduction - Six basic stages 39
Stage 1 - Statement of intent 39
Stage 2 - Awareness 39
Stage 3 - Diagnosis 40
Stage 4 - Initial strategy 41
Stage 5 - Management consensus 41
Stage 6 - Launch 41
Summary 42
Part Three Executive Encyclopaedia of Total Quality
Processes and Techniques 43
An alphabetical series of technique briefings
overviewing the major Total Quality processes, tools
and techniques 46
Part Four Profiles of Success Through Total Quality 147
Introduction
Boots The Chemists
Cossor Electronics
Dowty
Express Engineering
Gwent Health Authority
Hew lett-Packard
IBM
National Westminster Bank
Nissan
Pitney Bowes 170
Sony 172
Conclusion - The key factors of success 174
About the major contributors 177
Bibliography 179
Other sources of help 181
Index 186

Preface to the first edition

Quality is a customer issue. It arises because customers require products and services, which not only meet their performance requirements but are satisfactory in terms of safety, length of working life and pride of ownership. In a manufacturing organization, therefore, the achievement of quality standards is not restricted to the production departments. It extends to all parts of the business from conceptual design to marketing, from order processing and distribution. A quality product is not just a solidly made item dating from the days when 'Made in Britain' distinguished goods from all the inferior products coming out of the emerging industries of the Far East. It is a product which ranks high against all the criteria which sophisticated consumers now use to evaluate the things they buy.

If you agree with the argument that a company is much more likely to produce high quality if all departments are motivated to achieve high quality results then you already have a good understanding of the basic principles of Total Quality Management (TQM). But TQM is not a 'quick fix' or a magic cure. It is a management technique designed to involve all parts of the business in the pursuit of, and commitment to, the highest quality result.

By involving everyone from the Chief Executive to the most junior employee in the company's objectives, in a way which means something in their particular job, the company is well on the way to achieving the best results its workforce can achieve.

Quality standards imply, of course, an understanding of what the customer really needs. In TQM every person in the company should recognize that they have customers even though they may be internal customers. This concept of customer satisfaction provides a basis for establishing competitive measures, performance targets, better communications and, in consequence, a process of continuous improvement. This is the real aim of TQM and the only basis on which companies will achieve world-class performance in the 90s.

I hope this book gives you food for thought. You may not agree with all the ideas expressed but, if it encourages you to consider how Total Quality might be implemented in your organization, it will have been well worthwhile.

Preface to the second edition

It is clear from the success of the first edition of this book, launched in 1991, that Total Quality Management (TQM) is widely accepted as the fundamental business issue of the 1990s and the key to business improvement. The many positive comments made about the book have been most gratifying. However, as in all things, we have found room for updating and improvements.

In particular, we have revised the sections on Hoshin Planning and Benchmarking to reflect suggestions received and requests for more detail on these important sUbjects. There has also been considerable updating of detail and new developments - like the European Foundation for Quality Management (EFQM) European Quality Company Awards - have been included.

We have added three new case studies to Part Four - Profiles of Success Through Total Quality - to further illustrate the benefits of the Total Quality approach. The remaining profiles have not been updated because the experiences of the organizations are still relevant and the lessons to be learned are still valid. However, the reader should remember that, since 1991, all those organizations will have moved on, in accordance with their continuous improvement philosophy.

This second edition incorporates all of this in a new paperback format to make the book more accessible, more usable and, we hope, even more popular than the first edition has been.

Introduction
This executive briefing report considers the strategic aspects of what is the key management issue of the future - Total Quality Management. So . . . what is Total Quality Management?

It is a philosophy of management that strives to make the best use of all available resources and opportunities by constant improvement. Total Quality Management is the key business improvement strategy and the key management issue of the future because it is essential for efficiency and competitiveness. The case for Total Quality is made in a later section, 'Total Quality ... is it really a strategic issue?'

Part Two describes the concepts of Total Quality and provides guidance on how they can be applied to maximize an organization's operational efficiency and to provide a strategic, competitive edge to your business. Many organizations have realized that potential for improvement exists through a Total Quality Management approach. However, many executives are dismayed by the jargon which surrounds the subject and are bewildered by the array of tools and techniques available.

To assist in overcoming these barriers, Part Three, the Executive Encyclopaedia, explains the essential jargon and provides technique briefings on the major improvement tools and techniques. The briefings show how these tools and techniques are applicable to all types and sizes of organization. When key terms listed in the Executive Encyclopaedia appear in the text, bold type is used to draw your attention to them.

Most importantly, Part Two guides readers in formulating their Total Quality Management approach and on selecting appropriate tools and techniques. These strategic decisions are critical, particularly as the range of techniques that can be applied is very wide. The selection process, however, is by no means straightforward. The report addresses this by providing guidance on how to review the needs of your own organization and how to make an informed selection of an appropriate mix of 'tools of change' to suit your business.

This report is intended for use as a manual and as a reference, so there is a bibliography and information on further sources of help at the back of the book.


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