Quality Management: Definition Plus Example

Overview

• Quality management enhances customer satisfaction by overseeing tasks and activities to maintain excellence in products and services.
• The concept includes determining a quality policy, planning, assurance, control, and improvement.
• Total Quality Management (TQM) is a key component, focusing on long-term goals via short-term initiatives.

What is Quality Management?

• Involves overseeing all activities to maintain desired levels of excellence.
• Encompasses quality policy determination, planning, assurance, control, and improvement.
• Also known as Total Quality Management (TQM), which focuses on long-term success through customer satisfaction and loyalty.

Key Takeaways

• Quality management maintains excellence through comprehensive oversight of tasks.
• TQM involves collaboration among all business stakeholders to enhance processes, products, services, and company culture.

Understanding Quality Management

• TQM is a business philosophy emphasizing customer satisfaction and loyalty for long-term success.
• Originated in the 1920s with the rise of statistical theory in business.
• Pioneers in Japan, such as Toyota, used TQM to overcome industrial challenges, improving product quality and efficiency by the 1960s.

Real-World Example: Toyota's Kanban System

• Toyota's implementation of the Kanban system as part of its Just-In-Time (JIT) inventory process.
• Kanban involves a physical signal (card) that triggers inventory actions.
• Cards control inventory by requesting parts only when needed, keeping inventory lean and cost-effective.