21.1 Understanding TQM

A successful business relies on making profitable sales to its consumers; it will retain its existing customers and attract new customers only if it knows their requirements, and delivers products and services that conform to them. This can be done by (1) ensuring that the design process results in outputs that meet customer requirements and that can be produced cost-effectively; (2) minimizing inefficiencies such as waste and rework; and (3) ensuring that all activities are directed at satisfying customers’ needs.

The term “quality” has suffered over the years by being used to describe attributes such as beauty, goodness, expensiveness, freshness, and even luxury. So, a car may be described as a “quality car” when, in reality, it is an expensive or luxurious car. Management consultants should be aware of the modern concept of quality, which is defined as total conformance to requirements. These requirements include the total customer requirement, not just a product or service specification. To manage quality, management and employees should:

●recognize the existence of both external and internal customers;

●fully understand and agree on their customers’ needs and expectations;

●deliver what was agreed, without any exception;

●be efficient as well as effective in meeting agreed customer requirements;

●continuously seek to improve performance in meeting customer expectations.