Academic journal article Global Economic Observer

The Significance of Total Quality Management Principles in Industrial Organizations

Academic journal article Global Economic Observer

The Significance of Total Quality Management Principles in Industrial Organizations

Article excerpt

1. Introduction

The principles of total quality management (TQM) can be defined as mies or fundamental and complete convictions in the management of an organization, oriented towards the continuous improvement of performance in the long term, by the total customer orientation, while taking into consideration the needs of all other stakeholders.

Both in theory and in practice organizations it is generally accepted that the conceptual basis of the TQM philosophy is the principle of continuous improvement. To lead the continuous improvement process it is necessary to apply a number of fundamental principles of TQM. There are different formulations of the basic principles of TQM. For example, R.J. Schonberger makes particular attention to the principles of continuous improvement and quality assurance processes. G. Merli highlights the following basic principles: customer satisfaction, quality first, continuous improvement, involving all staff. Stora and Montaigne (2006) believe that the basic principles of TQM are: management implication, involving all staff and rational improving of quality. According to the authors Haist and Fromm (2011), they highlight the following principles: customer orientation, the 'zero defects' principle, continuous improvement, and focus on prevention.

2. The eight principles of TQM

Considering the different opinions expressed by specialists, as well as the stipulations of SR EN ISO 9000: 2006 - Chapter 02, we support the assertion that the basis for TQM and the development of family ISO 9000 were the eight principles of quality management considered being determinant for continuous performance improvement. Analyzed and interpreted today (under the impact of the increasing number of enterprises which have implemented ISO Standards and the methods of Kaizen system), the eight quality principles on which ISO 9001 is based are totally harmonized on the European Model of Excellence, Lean, Six Sigma and Business Process Management (BPM), but they are deficient when it comes to quality critical concepts such as social responsibility and stakeholder needs, which are limited to customers.

2.1 Customer Advocacy

This principle is to relief the organization's capacity to understand and meet the needs of its customers. For this, it is necessary, first, to identify external customers and internal customers. Then the requirements, the needs and the expectations are determined and then they are translated into specifications, based on which the products are made with certain quality characteristics. The customers' needs knowledge through market research is done on buyers, consumers and even competitors' customers. Also, if customers of the organization are other organizations, the study should be extended to their clients. Based on study results, a list is drawn up with the needs expressed by customers and the importance given to each need.

Then it will be determined the technology and the processes required for the achievement of appropriate product requirements, and the investments that are necessary to provide manufacturer technical equipment.

In developing forecasts of customer needs organizations must cover both current interests and their evolution over time. Also, manufacturers can even determine an orientation of future customer requirements using intelligent advertising, like other channels offered by the media. The collaboration with the customer is recommended ('partnering') for cases where customers' real needs are different than those expressed in conducting the study. This can be done either through a dialogue with customers either in an organized frame or by customer participation in developing processes for a new product required by him, or through customer engagement in internal activities processes of the company such as planning new product development, technological estimation etc. Thus may be introduced in product design features that meet the unexpressed needs. …

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