Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

18.3 TQM (Total Quality Management) and Quality Management Systems

Intended learning outcomes: Present standards and norms of quality management: ISO 9000:2015. Describe the optimization paradigm: models and awards for Total Quality Management. Produce an overview on audits and procedures for assessing the quality of organizations, as well as on benchmarking.

Whereas for a long time the term quality was understood in America and in Europe as quality assurance in production, a management-oriented quality concept achieved dominance in the 1950s in Japan. Two Americans, W. E. Deming and J. M. Juran, developed this concept.

Total quality management (TQM) is defined as a management approach of an organization centered on quality, based on the participation of all its members, and aiming at long-term success. This is achieved through customer satisfaction and benefits to all members of the organization and to society [ISO8402].

There is also a corresponding management-oriented understanding for Six Sigma. Motorola, for instance, learned early on that disciplined application of metrics and the improvement methodology alone are not sufficient to achieve big breakthroughs and sustainable improvements.

Six Sigma as a management systemis a framework for assigning resources with priority to projects that result in rapid and sustainable improvement of business results.

Here metrics and improvement methodology are implemented to tackle the problems in connection with company strategy in the correct sequence. In this way, the results should be evident at all levels of the company and ultimately in company results. In 1989, Motorola received the Malcolm Baldrige National Quality Award.

Course section 18.3: Subsections and their intended learning outcomes

  • 18.3.4 Benchmarking

    Intended learning outcomes: Differentiate between benchmarking in very different industries and of different sizes at the level of the general management, and benchmarking with other firms in the same industry sector.

Course 18: Sections and their intended learning outcomes

  • Course 18 – Quality Management — TQM and Six Sigma

    Intended learning outcomes: Produce an overview on concept and measurement of quality. Explain quality management tasks at the operations level. Describe quality management systems.

  • 18.1 Quality: Concept and Measurement

    Intended learning outcomes: Produce an overview on the quality of processes, products and organizations as well as its measurability. Present the concept of quality measurement and Six Sigma.

  • 18.2 Quality Management Tasks at the Operations Level

    Intended learning outcomes: Produce an overview on the Deming Cycle (PDCA Cycle) and the Shewhart Cycle as well as the Six Sigma Phases. Present the phases of quality planning, control, assurance, and activation of the Deming Cycle. Describe the Six-Sigma phases of define, measure, analyze, improve, and control. Differentiate between continual improvement and reengineering.