Figure 2: The overall picture of TQM in the view of the Union Japanese Scientists and Engineers [3] (4) Human
Resources
(5) Information
(7) Quality Assurance System
(8) Cross- Functional Management Systems
Control and Improvement
(1) Vision, Strategy, Leadership
(9a)
Core
Technology Speed Vitality
From the Customer’s
Viewpoint
Quest for Quality
The impact of national and international quality awards on TQM
One of the most useful trends in the past decade has been the self-assessment activities of many companies throughout the world. Companies worldwide are using the criteria of the Malcolm Baldrige National Quality Award, the European Quality Award, the Deming Prize and many other national quality awards (Ludwig Erhard Preis in Germany, Národná cena za kvalitu SR in Slovakia and so on) to assess their current performance against a reasonable set of guidelines for total quality. A very import step in this process is to first understand one’s own organisation’s performance level and compare it to the performance level of another organisation. This benchmarking is one of the most important trends in modern quality management. When asked by Boardroom Reports if there was a single most import thing a company could do to change the company culture and achieve remarkable results, the then-chairman of Ford Motor Company, Donald Peterson, answered [3]: “Each company must find out which other companies in the world are best in that industry. Then, each company must benchmark operations against the most efficient – and most profitable – foreign and domestic businesses … those that do – such as Xerox – have had incredible results.” Peterson went on to explain that at Ford, “we began by comparing our manufacturing processes, design, marketing, financial management and quality, with the best of the Japanese operations. Comparisons should be based on speed, capital investment, wasted effort, number of employees, and any other yardstick with which the company can measure both its own and other operation. The next step is to get managers in the key departments to acknowledge that another business is doing all or part of their job better. That becomes easier when the CEO says that he looks on the benchmarking as an opportunity, not as criticism. Good managers are energized by that challenge. Next, send groups of managers to visit the companies with the superior operations.”
During 1991, the U.S. General Accounting Office (GAO) completed a study of Malcolm Baldrige National Quality Award winners and site-visited companies. The GAO studied carefully the relationship between quality management activity and success and profitability. In early 1995 the National Institute of Standards and Technology of the U.S. Department of Commerce issued a new report contrasting the stock market success of the Malcolm Baldrige National Quality Award – winning companies with average companies. The results were convincing. The Malcolm Baldrige National Quality Award recipients as a group have outperformed the Standard & Poor’s 500. The recipients achieved a 362- percent rate of growth versus a 148-percent rate of growth for average companies.
In what consists the basic concept of the business success?
In the view of the Deming Prize Committee total quality management is a set of systematic activities carried out by the entire organization to effectively and efficiently achieve company objectives so as to provide products and services with a level of quality that satisfies customers, at the appropriate time and price. In other’s words:
“Systematic activities” mean organized activities to achieve the company’s mission (objectives) that are lead by strong management leadership and guided by established clear mid - and long-term vision and strategies as well as appropriate quality strategies and policies.
“Carried out by the entire organisation to effectively and efficiently achieve” means to involve
everyone at all levels and all parts of the company so as to achieve the business objectives speedily and efficiently with the least management resources. This is accomplished through an appropriate management system that has a quality assurance system at its core, and it integrates other cross functional management systems such as cost, delivery, environment and safety. The respect for humanity value encourages the company to develop human resources which uphold its core technology, speediness and vitality. The company maintains and improves its processes and operations, and uses appropriate statistical techniques and other tools. Based on facts, the company manages its business by rotating the management cycle of PDCA (plan, do, check and act). The company also rebuilds its management system by utilizing appropriate scientific methods and information technology.
“Company objectives” refer to securing appropriate profit for the long term through satisfying
customers consistently and continuously. Also, they encompass improving the benefit to all stakeholders including employees, society, suppliers and stockholders.
“Provide” refers to activities from producing “products and services” to handing them off to
customers, including surveys, research, planning, development, design, product preparation, purchasing, manufacturing, installation, inspection, order-taking, sales and marketing, maintenance, after-sales services and after-usage disposal and recycling.
“Products and services” include manufactured products (finished products and parts and materials), systems, software, energy, information and all other benefits that are provided to customers.
“Quality” refers to usefulness (both functional and psychological), reliability and safety. Also in
defining quality, influence on the third parties, society, the environment and future generations must be considered.
“Customers” include buyers but also users, consumers and beneficiaries.
Total quality management is also mechanism joined all the people and all kinds of things with the purpose to achieve and to obtain such level of quality that satisfies customers. On other side the quality award models, as a fundamental model for awarding of the national and international quality awards, highlight customer satisfaction, workforce empowerment and increased productivity. This follows from the structure and fundamental principles of the quality models.
In summary, the purpose of the quality award models was and still is to help improve quality and productivity by:
helping stimulate companies to improve quality and productivity for the pride of recognition while obtaining a competitive edge through increased profits,
recognizing the achievements of those companies which improve the quality of their goods and services and provide an example to others,
providing specific guidance for other organisations that wish to learn how to manage for high quality by making available detailed information on how winning organisation were able to change their cultures and achieve eminence.
References
JANKAL, R.: Selected aspects of quality management in the area of telecommunication services. Journal of Information, Control and Management Systems, 2003, roč. 1, č. 2, s. 35 - 40. ISSN 1336- 1716
JURAN, J. M. – GODFREY, A., B.: Juran’s quality handbook. 5. vyd. Singapore: McGraw-Hill, 2000. ISBN 0-07-116539-8
WADSWORTH, H. M. – STEPHENS, K. S. – GODFREY, A. B.: Modern Methods for Quality
Control and Improvement. 2. vyd. New York: John Willey & Sons, 2002. ISBN 0-471-29973-1
ZOLLONDZ, H. D.: Lexikon Qualitätsmanagement. 1. vyd. München: Oldenbourg Verlag, 2001. ISBN 3-486-24316-0
Ing. Miriam Jankalová, PhD., University of Žilina, Faculty of Operation and Economics of Transport and Communications, Univerzitná 1, 010 26 Žilina, Slovakia
E-Mail: Miriam.Jankalova@fpedas.uniza.sk The paper was elaborated within the grant VEGA 1/0709/08.