U5 Flashcards
(191 cards)
1
Q
Total quality management
A
TQM “is defined both as a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization”
2
Q
Product quality is essential for?
T
A
satisfied customers. Yet, there are other ways that firms can add customer value.
3
Q
Total quality management (TQM) is?
A
an approach with more impact than concern about products in production.
4
Q
Firms that adapt TQM establish ?
A
a culture in which quality is essential .
5
Q
TQM began to develop in the 1980s when local, state, and federal agencies started to look into?
A
quality improvement in the form of TQM.
6
Q
QM focuses on processes in?
like Coca-Cola, The 3M Company, and Nordstrom Inc.,
A
organizations that should be done right the first time.
7
Q
The idea was promoted in the UK by ?
A
the UK Department of Trade and Industry
8
Q
Today, many well-known companies, focus on TQM
A
like Coca-Cola, The 3M Company, and Nordstrom Inc.
9
Q
To successfully stay on the market, firms need to do more than?
A
fulfill customer desires and make a profit.
10
Q
Firms are advised to have a more global view on ————————–.
A
quality
11
Q
image
A
12
Q
Quality needs can be depicted in the hierarchy of customer quality needs, which has ?
A
three levels.
13
Q
The hierarchy links TQM to —————-and the ISO ——————-.
A
awards
norms
14
Q
At level 1, ISO 9001 :
A
-addresses quality assurance
-and focuses on conforming to customer requirements,
- a line of thought that arose in the early stages of quality control in the twentieth century (e.g., Garvin, 1984) to prevent customer dissatisfaction by eliminating failure .
15
Q
Level 2 addresses?
A
issues of quality management that are specified in ISO 9004.
16
Q
The third level has a much broader view on ?
A
strategic quality management.
17
Q
It addresses TQM and focuses on?
A
total customer satisfaction,
:
involved employees,
a long-term,
strategic focus,
and customer-driven product and process designs.
18
Q
which is achieved by ?
A
-involved employees,
-a long-term,
-strategic focus,
-and customer-driven product and process designs.
19
Q
TQM usually uses?
A
quality awards as a point of reference.
20
Q
Davos Manifesto
A
This document was created by the participants of the 1973 World Economic Forum in Davos. It emphasizes the importance the firm’s stakeholders.
21
Q
Firms must recognize the demands of all stakeholders. In business management, different stakeholders who may have an interest in the organization, e.g., ———————————————————————————————————–.
A
customers,
business partners,
employees,
shareholders,
and the public
22
Q
This type of thinking was captured in the ——————————–, which changed ethics in management.
A
Davos Manifesto
23
Q
TQM is a management approach that ?
A
builds on the Davos Manifesto and took the previously mentioned stakeholders as a basis for its concept.
24
Q
TQM was originally used in ——————and has spread into more management fields.
A
manufacturing
25
It can be seen as ?
a management tool applied in different sectors, like in the public sector or manufacturing, as well as the service industry
26
TQM as a new and comprehensive management approach shows firms a way to?
satisfy different stakeholders
27
In the 1990s, skeptics argued that?
TQM did not mean the same thing to different stakeholders.
28
Firms have different customers and may operate in times of ----------------------.
uncertainty
29
The implementation of TQM in the public sector was seen as?
especially problematic because the type of “product” the government offered was unclear (TQM originates from manufacturing).
30
The main idea of TQM is therefore to create sustainable profit and a sense of responsibility toward all stakeholders of the firm?
because they are interdependent
31
The transition from quality management to TQM is ?
the transition from product to corporate quality
32
TQM is defined as?
“a set of systematic activities carried out by the entire organization to effectively and efficiently achieve the organization’s objectives so as to provide products and services with a level of quality that satisfies customers, at the appropriate time and price”
33
According to Luthra et al. (2021, p. 18), TQM can be broken down into parts:
“total [is] made of the whole”
“quality [is the] degree of excellence of product\/service provider”
“management [is the] art of handling, controlling, and directing”
34
“Total” refers to ?
including all employees in the process, where they are empowered to take an active role
35
TQM is a company-wide initiative dedicated to?
continuous improvement in all areas of the firm’s operations, from development to maintenance
36
It thus includes all of a firm’s departments,like :
marketing,
human resources,
finance,
engineering,
design,
and customer service .
37
All employees, regardless of department and level, are included, even those people who only have ---------------------- for their processes.
internal customers
38
“Quality” is linked to ?
continuous improvement.
39
Everybody in the firm needs to have a positive attitude, ------------------------that internal and external customers are important, and ------------------that everyone can impact a firm’s offering.
understand
accept
40
Anyone who makes a suggestion for improvement should be?
rewarded for their good idea.
41
In essence, TQM is about maximizing?
“external customer satisfaction by involving all employees, regardless of their function, in efforts to continually improve quality”
42
Even if internal customers are served, employees need to understand the following four principles:
==Fellow employees who receive work are customers.
==To do a good job, meeting employee needs is critical.
==Receiving feedback from fellow employees is important.
==When someone receives work, it is necessary to focus on their requirements.
43
To involve all employees, “management” is necessary to ?
an environment and processes.
44
The TQM model shows that TQM brings together three main components of quality:
=statistical process tools,
=a system like a QMS or ISO 9000,
=and quality circles, which are conducted in teams.
45
How successful TQM is depends on ?
the firm’s implementation.
46
TQM is based on-------------------------------, as depicted in the TQM model in the figure below.
several principles
47
The graph shows that the processes revolving around the customer and suppliers are central processes in TQM. Therefore,?
good communication is important.
48
The tools (e.g., statistical process control) help?
the quality management systems to work.
49
Yet, commitment among senior management is necessary to?
get the whole team involved and TQM to succeed.
50
The culture in the organization must support the ?
TQM approach
51
image
52
Luthra et al. (2021, p. 19) also emphasize the importance of three similar principles of TQM: ?
management commitment,
employee empowerment,
and customer focus.
53
First, commitment is required in all phases of the process (plan, do, check, act). Especially in?
the planning phase, it is crucial for managers to develop momentum and direct the team.
54
In the implementation phase, managers should?
offer support and participate in the processes themselves where necessary.
55
In the next phase, managers should ?
review the processes together with their team;
56
when acting is necessary, managers should also?
recognize the need for change, communicate with the team, and revise the process.
57
Second, managers should encourage employee empowerment. To achieve team excellence, they should?
train employees, measure their performance, and recognize achievements.
58
A cross-functional view on process management helps to focus on a common goal. Thus?
, managers should attain, maintain, and improve quality standards.
59
Third, managers need to have ?
the customers in focus and should never compromise quality.
60
In addition, they should emphasize to their team that ?
good service relationships, even with internal customers in process management, is essential for TQM
61
The following figure summarizes the TQM principles.
image
62
Benefits of TQM Implementation?
xIf firms implement the principles of TQM successfully, they will access several benefits.
63
Improvement of firm’s culture
v?
a change in organizational culture.
It increases a firm’s knowledge and culture of maintaining quality.
64
This culture of continued success improves employee -------------------. In TQM, creativity, e.g., for -------------------------, is emphasized.
morale
problem-solving
65
If employees actively participate in the success of the firm, they are likely to ------------. Staff turnover is reduced, which in turn decreases hiring and training ----------------.
stay
costs
66
Strengthened teamwork
In recognizing the importance of internal customers and cross-functional teams, teamwork is ?
valued and bolstered.
67
The firm commits to continuous improvement . As a result,?
the firm reduces defects in the long-run and requires less effort to control personnel,
but a long-term commitment is required.
68
The firm reduces costs, e.g.,?
scrap costs,
rework costs,
and warranty costs, when applying TQM consistently.
69
These reductions can increase?
profitability.
70
In the long run, a focus on TQM increases customer satisfaction because?
there are much fewer customer complaints.
71
Due to fewer customer complaints, the service complaint team requires ----------------------. In addition, a higher customer satisfaction rate will also increase positive ------------------------, attracting new customers and increasing the likelihood of ------------------ gains.
fewer resources
word of mouth
market share
72
Organizations that implement TQM can also face?
first two years of the implementation
several challenges.
73
As a result, many firms drop the initiative in the?
first two years of the implementation.
74
In the case that TQM is adapted but management does not?
make the necessary adjustments
(e.g., communicating to employees, changing the organization’s culture, or continued distrust of employee self-responsibility), the implementation is likely to fail.
75
Once the introduction of TQM has failed, there is even greater?
distrust and more difficulty in launching TQM a second time.
76
Inability to change organizational culture
This point goes hand in hand with ?
the previous challenge
77
Benefits of TQM Implementation
Many organizations fall short in changing the organizational culture. If ?
Challenges of TQM Implementation:
Improvement of firm’s culture
Strengthened teamwork
Continuous improvement
Cost reduction
Customer satisfaction
there is little commitment from management, there is little effort in changing the organization culture.
Lack of management commitment
Inability to change organizational culture
Not attending to internal and external customers
Lack of training and education
Inadequate planning
78
An organization will face problems if it does not listen to?
internal and external customers.
79
The needs and expectations of both external and internal customers will -------------------------------- time. The implementation of TQM requires paying attention to -------------------; otherwise, the organization cannot meet ----------------------ز
change over
customers
expectations
80
Implementing TQM requires changes in؟
a firm’s philosophy.
81
Appropriate training is necessary to؟
hinder long-term effects
educate employees about TQM principles.
82
A lack of continuous training will?
hinder long-term effects.
83
TQM requires a holistic view of ----------------. If not all departments of the organization participate in the implementation, the introduction of TQM is likely to -------- .
The organization
fail
84
Initially, when TQM was introduced by ?
firms, the basis for the operational implementation was realized with the introduction of quality awards. The idea of continuous improvement was not immediately applied by all firms.
85
They started improving their quality only before?
participating in the next quality award.
86
Once TQM became more established, organizations adapted the idea of?
business excellence.
87
TQM is “an approach of managing the whole to achieve----------------------------.The governments of many countries have recognized the importance of TQM and have implemented ------------------------------or awards.
excellence”
quality prizes
88
These awards are excellence competitions and serve as reference points for organizations, which see their participation in these competitions as?
a reflection of the success of their implementation and whether there is need for improvement.
89
Some of these awards are described below:
==Since 1951, Japan has awarded the Deming prize, named after W. Edward Deming, the main mentor and driver of the Japanese quality movement.
== In 1987, the US government created the annual Malcolm Bridge National Award (MBNQA) to encourage American firms to improve product quality. The practice originated in competing Japanese firms, particularly in the automotive sector.
==In Germany, another well-known quality award is the Ludwig-Erhard-Preis (LEP), which was initiated by industry and trade organizations and the Ludwig-Erhard-Stifung e.V. (Benes & Groh, 2017, p. 318). It was established in 1997 and uses similar criteria to the European Quality Award, which was re-named the EFQM Excellence Award in 2006. The EFQM criteria were slightly altered to facilitate the application of small- and medium-sized firms.
90
Over the past 30 years, firms have recognized that they need to stay ----------------.
competitive
91
Alongside governments, there were initiatives from organizations, such as?
the American Society for Quality or the European Foundation for Quality Management (EFQM), to develop
Business Excellence Models (BEM) used to
improve
organizational excellence.
92
As firms continued to strive for excellence, e.g.,?
due to increasing competition, organizations developed a model for assessing excellence .
93
It was initially used to assess firms that applied for?
the European quality award.
94
According to Nenadál (2020), excellent organizations have facets like?
“sustainability, profitability, social responsibility, reputation, and good governance” .
95
According to Nenadál (2020), excellent organizations have facets like?
“sustainability, profitability, social responsibility, reputation, and good governance” .
96
Some firms have built their QMS around the --------model and prefer using EFQM to----------------------.
EFQM
ISO 9001
97
The model, which is reviewed and updated over time, does not use norms.
Instead,?
the 2012 EFQM Excellence Model assesses maturity in fundamental areas, which happen to be the three pillars of TQM: people, processes, and results.
98
The model was reworked between 2019 and 2020 by ?
academics, model users, and business leaders.
Nearly 2,000
experts helped with the revision.
99
United Nations Sustainable Development Goals
These are 17 goals
“to end poverty,
protect the planet
and ensure that all people enjoy peace and prosperity”.
100
Rather than being based solely on principles of TQM, the new model now incorporates?
the United Nations Sustainable Development Goals
101
It was renamed EFQM Model in the newer
------------.
version
102
Whereas the 2012 EFQM model was linear, the layout of the 2020 model was completely changed and now contains:
====three integrated and interlinked elements
Direction (Why do it?),
execution (How?),
and and results (What is achieved?).
====seven main framework criteria.
Criteria 1 and 2 assess strategic performance.
Criteria 3—5 assess operational performance.
Criteria 6 and 7 assess the organization’s results.
103
As visible in the figure below, the points in parentheses indicate the importance of?
the criteria. A thousand points are awarded in total.
104
EFQM is not?
a standard, nor can a firm receive a certificate for its implementation.
105
Ingason (2020) calls it a “holistic framework that organizations can use to?
determine their current level of excellence”.
106
Firms use this kind of self-assessment to identify strengths and weaknesses in their efforts to?
improve continuously, understand gaps, and self-reflect.
107
The documents can be found on?
the EFQM homepage.
108
image
109
Many firms conduct the self-assessment to participate in the------------------------------award. They produce a report and receive feedback after
------------------------------- -.
European quality
submitting documentation
110
Firms that perform very well receive more detailed feedback from ?
a jury
111
The main idea of the self-assessment is, however, ?
the reflection on current business practices and the identification of opportunities for improvement.
112
Kaizen stems from the Japanese words kai (meaning ---------------------------------) and zen (the ------------------------------------)
change or action toward
good or better
113
Combined, kaizen means?
“change for the better” and expresses the striving for continuous improvement
114
Lean concept
This process-oriented concept has been used since the 1950s and applies to the whole organization. It is used to “eliminate non-value adding waste not laying off employees” with appropriate tools
115
The Americans called this approach ?
continuous improvement process (CIP).
116
Under pressure from the major American automakers, many German automotive suppliers also introduced---------. The term “CIP” has remained with some companies (e.g., -----------------) to this day.
CIP
Bosch
117
Volkswagen, for example, also?
introduced the kaizen approach.
118
Kaizen is -------------a method for problem-solving. As a philosophy of continuous improvement, it assumes that all activities of all employees in a company should ultimately lead to an increase in
------------------------, and all employees should be involved.
not
customer satisfaction
119
Whereas kaizen is characterized by?
small, continuous improvements of the employee, TQM focuses on large, fewer improvements and is customer-focused.
120
To illustrate how kaizen is used for rapid, short-term improvement, the concept of a kaizen-----------is explained.
“blitz”
121
A kaizen blitz is used to solve?
a particular work problem.
122
Cross-functional teams of-----------------------employees take a period of -------------------------- days to focus on solving a specific problem.
6 to 12
three to five
123
The team needs to be?
open-minded and ask a lot of questions.
124
Regardless of rank, all team members are treated as ------------------------.
equals
125
The team is trained quickly, develops ideas for?
problem-solving,
and tests and refines the solutions.
It uses simple tools, and the budget is usually not very high.
126
The goal is not a perfect solution, but?
a solution that will work with the resources that are currently available.
127
The result can, however, save the firm a substantial amount of money. In short, the team solves the problem within?
a few days and collectively implements the solution.
128
Code of Hammurabi
As king of Babylon (1792–1750 B.C.E.), Hammurabi’s laws were simple but brutal. They were based on the principle of “eye for and eye” and included punishments or compensation for misbehavior.
129
Engineering has solved many problems in the past (e.g., bridge or airplane construction). Yet, the design and production of these constructs brings?
great responsibility to society.
130
Law 229 of the ancient Code of Hammurabi states that
“if a builder builds a house for someone, and does not construct it properly, and the house which [they] built falls in and kills its owner, then that builder shall be put to death”.
131
Although this is, from today’s standpoint, an extreme view on quality control, it shows the drastic consequences of injury or death for ?
insufficient quality control and the responsibility a builder has.
132
When flaws are only noted late in the implementation stage, firms need to recall their products. Because of?
globalization, higher safety standards, and growing engineering complexity, there have been increasing numbers of product recalls in recent years.
133
Product recalls are a symptom of?
bad quality management.
134
A defective product can cause enormous harm to companies, e.g.,?
in form of reputation and stock market value loss or a customer’s serious physical injury or death.
135
In addition, a product recall also means that the firm does not comply with?
voluntary industry standards.
136
Consequently, the firm needs to:
take corrective action,
prevent future mistakes,
and offer compensatio.
137
To inform customers, the communication of a product recall can be done in?
cooperation with a government agency, e.g., the US Consumer Product Safety Commission (CPSC), or radio stations.
138
It is a firm’s legal obligation to?
=ensure that the products are no longer sold.
=The firm must also ensure that faulty products are either repaired or replaced.
139
At this very late stage, the flaws are difficult to?
rectify. Can a firm prevent these failures?
140
According to Thornton, firms should conduct regular audits to ensure that?
Over time, the internal audit team can learn and gain experience. Alternatively, a third-party audit team can be hired to teach the internal team. Recently, training tools have been developed to help organizations get audit experience
quality remains high and processes are followed.
141
Firms should build internal audit teams because?
these have insight and knowledge of the processes, and they understand the firm’s engineering.
142
For firms that do not yet have much experience in conducting internal audits------------------------------------------- are key. Audit trainings can be done easily, as they are available ------------------.
, training and experience
online
143
Over time, the internal audit team can learn and gain experience. Alternatively, a third-party audit team can be ?
hired to teach the internal team.
144
Recently, training tools have been developed to ?
help organizations get audit experience.
145
Training and education are essential to?
good quality in engineering.
146
Especially in engineering education, quality is?
a challenge, and it is advised to use big data for product development.
147
The author presents a model on how to reach quality in engineering and technology, e.g.,?
by integrating research and education in engineering.
148
This model is called DEJI and refers to?
systems quality: design, evaluation, justification, and integration.
149
communication of a product recall can be done in cooperation with ?
a government agency, e.g., the US Consumer Product Safety Commission (CPSC), or radio stations. It is a firm’s legal obligation to ensure that the products are no longer sold.
150
The firm must also ensure that faulty products are?
either repaired or replaced.
151
At this very late stage, the flaws are?
difficult to rectify
152
Can a firm prevent these failures?
According to Thornton, firms should conduct regular audits to ensure that quality remains high and processes are followed.
153
Firms should build internal audit teams because ?
154
Firms should build internal audit teams because ?
these have insight and knowledge of the processes, and they understand the firm’s engineering.
155
For firms that do not yet have much experience in?
conducting internal audits, training and experience are key.
156
Audit trainings can be done easily, as they are available online. Over time, the internal audit team can learn and gain experience. Alternatively, a third-party audit team can be?
help organizations get audit experience
hired to teach the internal team.
156
Audit trainings can be done easily, as they are available online. Over time, the internal audit team can learn and gain experience. Alternatively, a third-party audit team can be?
hired to teach the internal team.
157
Recently, training tools have been developed to?
help organizations get audit experience.
158
The integration of a system is key to quality management because?
a system in isolation does not work.
159
Only if all elements of a system are integrated can the -----------------------------------of a firm be reached.
functional goals
160
Case study research from Malaysia’s construction industry shows?
The most important factor affecting TQM implementation is employee related, supporting the view that training and education about TQM in engineering is critical
how employee knowledge of TQM plays a role in engineering.
161
The construction industry is extremely important for?
the country’s economy,
and the government wanted to improve the quality of construction in 2020.
162
Othman et al. (2020) identified success factors for TQM implementation using?
reliability analysis.
163
They identified the following factors:
(1) employee related,
(2) strategic planning,
(3) teamwork,
(4) communication related,
(5) organizational culture,
(6) top management commitment,
(7) continuous improvement.
and (8) customer related (Othman et al., 2020).
164
The most important factor affecting TQM implementation is ?
employee related, supporting the view that training and education about TQM in engineering is critical.
165
Organizational Characteristics for Continuous Innovation
These include eight characteristics of firms that are particularly innovative and practice continuous innovation.
166
A second example connects TQM to?
innovation in software engineering.
167
One of the critiques of TQM is that firms simply follow existing processes without?
being innovative.
168
Steiber and Alänge (2013) suggest that TQM focuses on?
--meeting customer needs and that the process orientation,
-- as well as the focus on continuous improvement, helps to increase a firm’s efficiency and effectiveness.
169
In their research, they compare TQM to Organizational Characteristics for Continuous Innovation (OCCI) using the example of?
Google, which has been one of the most innovative companies of the last ten years
170
The identified OCCI factors were:
=an innovation-oriented and change-prone top management and board;
=an innovation-oriented and change-prone culture;
=competent and committed individuals with a passion to innovate;
=leaders that empower, coach, and remove obstacles for innovation;
=a semi-structured and ambidextrous organization;
171
Employee potential and the commitment of top management were found to be ?
crucial factors in TQM and OCCI.
172
To be innovative in the rapidly changing business environment, the authors suggest that?
firms need to go beyond applying TQM with a narrow focus.
173
For dynamic markets, however, a broader view on TQM with more agile management is necessary to?
develop incremental and radical innovations.
174
TQM, as it has been known for 20 years, requires?
an update,
and OCCI might be what firms need.
175
TQM is based on?
the view that the firm should address the needs of all stakeholders, a line of thought developed by the Davos Manifesto in 1973.
176
It is based on?
several principles depicted in the TQM model.
177
It is based on?
several principles depicted in the TQM model.
178
The guiding principles of TQM center around processes and people:
processes:
(continuous improvement,
statistical process control,
strategic and systematic integrative approach,
and process-centered)
and people:
(customer focus,
management commitment,
employee empowerment,
and communication).
179
The central processes of TQM revolve around?
get TQM to work. In addition, there needs to be a culture in the organization that supports the TQM approach
the customer and suppliers for which good communication is important.
180
Commitment from senior management is needed to
-get TQM to work.
-In addition, there needs to be a culture in the organization that supports the TQM approach
181
The three levels of the hierarchy of customer quality links -------------------------------------------.
TQM to awards and the ISO norms.
182
In level 1,
ISO 9001 addresses quality assurance.
183
Level 2 addresses issues of?
quality management, which are specified in ISO 9004.
184
The third level has a much broader view on ?
strategic quality management and addresses TQM.
185
TQM usually uses quality awards as ?
a point of reference.
186
Well-known quality awards include:
the Deming prize,
the Malcolm-Bridge National Award
and the Ludwig-Erhard-Preis.
187
the Ludwig-Erhard-Preis, which uses?
the characteristics of the EFQM.
188
EFQM is a framework firms can use to determine?
their current level of excellence.
189
The kaizen (“change for the better”) management philosophy is characterized by?
continuous, small improvements by the employee
190
The kaizen blitz, a team of--------------------- employees, solve a work problem in------------------ time.
6 to 12
limited
