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VIPIN V P
ROLL NO:28 MBA(INTERNATIONAL BUSINESS) SCHOOL OF MANAGEMENT STUDIES CUSAT.COCHIN 22 E-mail:vipinpsrt@gmail.com
ABSTRACT: The degree to which a set of inherent characteristic fulfil requirements is referred to as quality. Quality management is an approach to management which requires establishing quality policies and procedures and practices and then outstanding systems on regular basis. It includes ensuring proper quality for the companys output. Quality management is an important marketing strategy. The three aspects of assuring quality are assurance of incoming raw materials quality, assurance that proper processes are operating on the raw materials, assurance of the quality of the outgoing finished goods. Failure modes and effects analysis is a step by step approach for identifying all possible failures in a design, a manufacturing or assembling process of a product or service. Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives. Quality Function Deployment (QFD) is a structured approach to defining customer needs or requirements and translating them into specific plans to produce products to meet those needs. QFD is designed to help planners focus on characteristics of a new or existing product or service from the viewpoints of market segments, company, or technology-development needs. The technique yields charts and matrices.QFD helps transform customer needs into engineering characteristics for a product or service, prioritizing each product or service characteristic while simultaneously setting development targets for product or service. KEY WORDS: SCM, TQM, QM, QFD
1.0 INTRODUCTION
By now, the supply chain management outcomes of better customer service, lower costs and higher quality should be starting to sound familiar. To sustain and improve competitiveness, firms must offer higher quality products and services than their competitors. TQM is an enterprise- wide philosophy encompassing suppliers and customers. It emphasizes a commitment by the organization to strive toward excellence in the production of services and products that customers want. Firms implementing a TQM program have made a proactive decision to understand, meet and then strive to exceed customer expectations and this is the overriding objective in all TQM programs. Quality Management is an approach to management, which requires establishing quality policies, procedures and practices, and then auditing the systems on a regular basis. It encompasses all the processes in the organization and seeks to ensure the quality of products through systematic adherence to quality management procedures and practices.Quality function deployment (QFD) is a methodology for the development or deployment of features, attributes, or functions that give a product or service high quality. Quality Function Deployment (QFD) is a structured approach to defining customer needs or requirements and translating them into specific plans to produce products to meet those needs.
Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time/Demand Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Line Management ownership Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans Specific incorporation in strategic planning
need for a new framework, especially for SCM, since it is particularly difficult to clearly define and therefore, to implement.
2.2 Goal
Ultimate goal Both TQM and SCM aim to achieve customer satisfaction. There are many strategies to accomplish this ultimate goal. Basically, customers require better product quality, faster delivery and cheaper costs, or quality-delivery-cost (QDC). Organizations must meet these requirements to achieve customer satisfaction. Primary goal TQM focuses more on quality conformance by aiming to deliver error-free products and services. A term that embraces a wider scope for defining quality is the big Q, which includes additional customer requirements such as product safety, flexibility, and prompt delivery. Unlike TQM, SCM basically satisfies customers in terms of delivery or time-based performance. Efficient delivery always leads to cost effectiveness in the supply chain. SCM aims to respond to customers as quickly as possible, at the right time and place at the lowest cost possible. SCM aims to achieve speed-to-market, agility and the flexibility to respond quickly to customer requirements at minimum cost. Moreover, several SCM researchers have agreed that SCM emphasizes the flow of materials and information throughout the entire supply chain. This might be because traditional SCM focused on physical distribution. Several other methods/tools applied in SCM practice include the following: the quick response (QR) in the textile industry; efficient consumer response (ECR) in the grocery industry and the just-in-time (JIT) approach in the automotive industry. Although TQM and SCM share the same ultimate goal, which is customer satisfaction, their primary goals are different, as implied by the emphasis on quality and supply.Better quality and a faster delivery always lead to lower costs. Finally, better QDC enhances customer satisfaction and the competitiveness of the whole supply chain. In some cases, there may be a trade-off if conflict arises between quality and delivery performance, and this is when the difference in primary goals can present potential problems in implementing an integrated TQM and SCM approach. On the other hand, there is synergy in the ultimate goal, since both TQM and SCM aim to achieve customer satisfaction. Therefore, more research needs to be done to further explore the potential areas of conflict and synergy that practitioners need to be aware of in terms of methodology.
also that of the whole supply chain .This external focus may be due to the fact that the organization itself must work with the customer and the supplier within the same SCM framework. SCM focuses on primary functions as opposed to supportive functions in an organizations value chain. Most of the literature and SCM frameworks emphasize the relationship with business partners and almost ignore the human resource component, such as the SCM frameworks of the global supply chain forum 2002. Although SCM emphasizes external integration, the actual implementation must begin by integrating internal functions and then moving on to external integration among business partners. Moreover, practical SCM focuses on only a few strategic suppliers and customers. This is because most supply chains are too complex to achieve full integration of all business partners. This difference in emphasis can be a potential problem when implementing a synthesis of TQM and SCM, and more research is needed to explore these implications.
There are three aspects of assuring quality. These include Assurance of incoming raw materials quality. Assurance that proper processes are operating on the raw materials Assurance of the quality of the outgoing finished goods
PROCESSES FINISHED GOODS Are the right processes operating on the raw materials? Are finished goods okay to be sent to the customers?
Fig 1.three aspects of assuring quality The task of exercising control over the incoming raw materials and the outgoing finished goods is usually called Acceptance Sampling, and the control over the processes operating on the raw materials or the semi finished goods is called Process Control.
3.1 Principles
Quality management adopts a number of management principles that can be used by top management to guide their organizations towards improved performance. The principles include: Customer focus Since the organizations depend on their customers, therefore they should understand current and future customer needs, should meet customer requirements and try to exceed the expectations of customers. An organization attains customer focus when all people in the organization know both the internal and external customers and also what customer requirements must be met to ensure that both the internal and external customers are satisfied. Leadership Leaders of an organization establish unity of purpose and direction of it. They should go for creation and maintenance of such an internal environment, in which people can become fully involved in achieving the organization's quality objective. Involvement of people People at all levels of an organization are the essence of it. Their complete involvement enables their abilities to be used for the benefit of the organization. Process approach The desired result can be achieved when activities and related resources are managed in an organization as process. System approach to management An organization's effectiveness and efficiency in achieving its quality objectives are contributed by identifying, understanding and managing all interrelated processes as a system. Continual improvement One of the permanent quality objectives of an organization should be the continual improvement of its overall performance. Factual approach to decision making Effective decisions are always based on the data analysis and information. Mutually beneficial supplier relationships Since an organization and its suppliers are interdependent, therefore a mutually beneficial relationship between them increases the ability of both to add value. These eight principles form the basis for the quality management system standard ISO 9001:2008.
4.3 QFD METHODOLOGY FLOW The basic Quality Function Deployment methodology involves four basic phases that occur over the course of the product development process. During each phase one or more matrices
are prepared to help plan and communicate critical product and process planning and design information. This QFD methodology flow is represented below.
range of unclear definitions. Therefore, a new well integrated framework should be developed to facilitate implementation, especially since there is still no universally accepted SCM framework. The traditional approach to TQM emphasizes specification-based performance while SCM tends to focus on time-based performance. However, the ultimate goal of both is customer satisfaction. There can be synergy as they share the ultimate goal, but conflict can arise from the different primary goals. There is a need therefore for more research into these potential contradictions to explore how they can be reconciled. Although TQM and SCM emerged from different starting points, they evolved in similar ways. Both originated at the tactical level of operational functions, which are the primary activities in an organizations value chain and then widened in scope to cover all interrelated parties at the strategic level in order to gain synergy. When TQM and SCM are integrated, both business processes and the organizational structure will become more complex. Therefore, more research needs to be conducted into the alignment of business processes and organizational structure. Other management issues worth exploring include investigations into the following: managements role in TQM in SCM; information systems and technologies to support TQM in SCM; the organizational structure and its impact on TQM in SCM; how education and training can support TQM in SCM; and both the cultural and behavioral issues that can influence the application of TQM in SCM. Future research into SCM and its potential contribution to TQM applications include developing universal SCM standards or certificates. Although TQM and SCM require both internal and external integration, TQM emphasizes the participation of all inhouse employees, whereas SCM focuses on the external partnerships with business partners. Since these different approaches could cause potential conflicts when TQM and SCM are integrated for a simultaneous implementation, there is a need to explore how the strengths of both frameworks could be integrated into a new management concept that would be more effective than either framework on its own.
QFD is a good system to be implemented in organization or industry, which can be seen from the examples mentioned above. QFD does not design to replace the existing organization design process by any means, but rather support the organizations design process. And it also helps bring the customers voice into the production process to reduce the unnecessary cost. Cutting production time is also very beneficial to the companies. However, QFD has not been widely accepted in the USA compared to Japan (42% or more of Japanese companies have adopted QFD to improve their quality). In the future we hope QFD can be more adopted and researched in the American manufacturing and service organizations.
6.0 REFERENCES 1. 2. 3. 4. Assadej Vanichchinchai and Barbara Igel, 2011, Total quality management and supply chain management: similarities and differences, http://www.emeraldinsight.com/17542731.htm downloaded on 2/9/2012. Grame Knowles,2011,Quality management, http://bookboon.com/qualitymanagemnt.htm downloaded on 2/9/2012 Anonymous ,2011,quality function deployment,www.productmanager.co.uk, accessed on 2/9/2012 Dean, E. B. (1998). Quality Function Deployment from the Perspective of Competitive Advantage, http://akao.larc.nasa.gov/dfc/qfd.html
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