Author Question: Which of the following statements is true regarding total quality management (TQM)? A) TQM ... (Read 31 times)

abarnes · **on:** Jul 7, 2018

Which of the following statements is true regarding total quality management (TQM)?

A) TQM emphasizes on a single effort at the start to improve the quality of its products.
B) TQM largely increases the responsibility on each individual to focus on quality.
C) TQM philosophy initially took hold in the U.S.
D) TQM applies solely to an employee's activities based inside a factory.

Question 2

Discuss why companies strive toward quality improvement and the two methods of doing so.

What will be an ideal response?

hollysheppard095 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

B

Answer to Question 2

Companies strive toward quality improvement for two reasons: costs and customer value. First, quality products help keep production costs low because they reduce waste in valuable inputs, reduce the cost of retrieving defective products from buyers, and reduce the disposal costs that result from defective products. Second, some minimum level of acceptable quality is an aspect of nearly every product today. Even companies that produce low-cost products try to maintain or improve quality, as long as it does not erode their position in what is typically a price-competitive market or market segment. A company that succeeds in combining a low-cost position with a high-quality product can gain a tremendous competitive advantage in its market.
Improving quality is also important for a company that provides serviceswhether as its only product or in conjunction with the goods it manufactures and markets. Managing quality in services is complicated by the fact that a service is created and consumed at the same time. For this reason, the human interaction between an employee who delivers a service and the buyer is important to service quality. Still, activities that must be conducted prior to the actual delivery of a service are also important. For example, it is important that a restaurant be clean and have on hand the ingredients it needs to prepare the meals on its menu. Likewise, a bank can provide high-quality service only if employees arrive for work on time and interact professionally with customers.
Two movements that inspire the drive toward quality are total quality management and International Standards Organization (ISO) 9000 certification.
Total Quality Management-Company-wide commitment to meet or exceed customer expectations through continuous quality improvement efforts and processes is called total quality management (TQM). It also places a great deal of responsibility on each individual to be focused on the quality of his or her own outputregardless of whether the employee's activities are based in the factory, in administration, or in management.
By continuously improving the quality of its products, a company can differentiate itself from rivals and attract loyal customers. The TQM philosophy initially took hold in Japan, where electronics and automobile firms applied TQM techniques to reduce costs and thereby gain significant market share around the world through price competitiveness and a reputation for quality. It was not until U.S. and European companies lost a great deal of market share to their Japanese rivals that they embraced TQM principles.
ISO 9000-The International Standards Organization (ISO) 9000 is an international certification that companies get when they meet the highest quality standards in their industries. Firms in the European Union are leading the way in quality certification. But both European and non-European companies alike are working toward certification in order to ensure access to the European marketplace.
To become certified, companies must demonstrate the reliability and soundness of all business processes that affect the quality of their products. Many companies also seek ISO 9000 certification because of the message of quality that certification sends to prospective customers.