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Tqm literature review
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3.6 Just in Time (JIT)
The just in time method is an inventory strategy where materials are only ordered and received as they are needed in the production process. The aim of this method is to decrease costs of the organization by saving money on overhead inventory expenses. The organization must be able to accurately forecast demand for goods and services for the just in time method to be operative. Just in time approach can suggest the organization which is the best time to deliver the products to the customers. Just in time approach helps the organization to be more responsive with the customer orders so the organization doesn’t lose any of their customers. By using this particular approach the organization can reduce their wastage of resources
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(2012), the term total quality management (TQM) refers to a quest for quality in an organization. There are three key philosophies in this approach. One is a never-ending push to improve, which is referred to as continuous improvement, the second is the involvement of everyone in the organization and the third is a goal of customer satisfaction, which means meeting or exceeding customer expectations. TQM expands the traditional view of quality looking only at the quality of the final product or services. But to looking at the quality of every aspect of the process that produces the product or service. TQM systems are intended to prevent poor quality from …show more content…
They call this culture as Wai wai gaya gaya in Honda. Waigaya not only happens during meetings but can start spontaneously in many unlikely places. If there's no place to sit, associates may squat right down on the floor and chatter away, bouncing ideas off each other and organizing their thoughts. (honda.world.com)
Quality Circle
This refers to the philosophy of making each worker responsible for the quality of his or her work. The idea is to “Do it right the first time.” In Honda workers are expected to provide goods or services that meet specifications and to find and correct mistakes that occur. In effect, each worker becomes a quality inspector for his or her work. When the work is passed on to the next operation in the process (the internal customer) or, if that step is the last in the process, to the ultimate customer, the worker is “certifying” that it meets quality standards.
Six
TQM is a company’s complete “culture of quality” approach which focuses on long-term success. It strives for continuous improvement, in all aspects of an organization, as a process and not as a short-term goal. TQM’s involves everyone in the organization to transform the organization into a forward-thinking entity by influencing attitudes, practices, structures, and systems of the entire organization (Business Dictionary, 2014). TQM was crafted by William Edwards Deming, a statistician who specialized in statistical process control after World War II. Deming outlined 14 points of TQM where all people of an organization can constantly search for ways to improve the process, product, and service. Deming developed the
Kuiper Leda lacks an effective Inventory Management to handle properly the increase in demand of stock and production. An inventory management plan would be capable of forecasting errors in production, client-required service levels, total lead time in manufacturing a unit or batch of the product, and demand priorities. Inventory control is a challenge currently because of the size of Midland Motor's order. In order to meet the demand the company needs to increase the inventory which increases the inventory costs. KL have an opportunity of using the Just - In - Time method of inventory control which eliminates waste by making the resources and labor available only in the time and amount required. It will help increase productivity, product quality and work performance while saving inventory costs for the company. (Curtin, 2008). Kuiper Leda also needs to keep in mind that they will still have to fill orders from other clients that have previously placed orders or even new customers.
TQM, or total quality management, is defined as "the process that involves everyone in an organization focusing on the customer to continually improve value". I do believe that all organizations should use TQM. It results in better quality products that result in better value, and these are the two aspects, in which customers look at in order to know if they want to buy the product. As long as organizations use TQM, they will always have products that customers are willing to buy.
The idea of Just In Time originated in Japan. Actually this type of inventory/production was originally known as the "Toyota Production System". A man by the name of Taiichi Ohno is credited as the person who first came up with this system. He looked at the Western industries and found that the manufacturers would set up their manufacturing lines to produce a large quantity of one product before stopping and and switching to a different product. They also would order and stock an overabundance of inventory so that the right parts were always on hand.
Zatzick, Moliterno, and Fang (2012) write that Total Quality Management “TQM primarily focuses on increasing inefficiencies and improving processes, particularly when implemented in manufacturing organizations” (p.1322). Deming (1988) writes that American companies do not work steadily towards process improvement. He feels that management should be consistent with its efforts to improve upon the quality of its products. Beer (2003) views TQM as an ongoing process in order to ensure product excellence. TQM has the ability to change the companies’ culture and work processes. Quality management is a long term process. These changes usually require new initiatives. Deming (1998) explains how the Japanese are at an advantage because they are not beholden to stakeholders. Japanese companies are able to concentrate on their employees. This type of environment encourages trust between workers and management. Beer (2003) feels that TQM involves “multiple stakeholder philosophy that equally values community, customers, and employees (p.624). Team work and collaboration are a big part of the TQM philosophy.
The just-in-time (JIT) inventory system was developed in Japan after World War II, in an effort to control costs during fiscally challenging economic times (Waguespack and Cantor, 1996). The challenge that faced many Japanese companies in the post-War era was to find a way to meet the needs of customers and businesses while utilizing as few resources and as little capital as possible. The Japanese developed these set of techniques in order to control production, limit unnecessary products and reinvest the valuable capital left from the savings back into the business structure (Waguespack and Cantor, 1996). Much of the success of many Japanese corporations over the past four or five decades has been was linked to the principles of JIT (Chhikara and Weiss, 1995).
Inventory management is a method through which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle of the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seen more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company; effective and efficient inventory management is of critical importance.
Just in Time (JIT) includes providing the customer with what is desired, at the exact time and in the exact quantity. The three components of JIT are continuous flow, Pull production and Takt time.
The cornerstones of the production system are Just in Time (JIT) and autonomation.JIT is the feasibility of obtaining products exactly at the need of the hour and
“While Total Quality Management has proven to be an effective process for improving organizational functioning, its value can only be assured through a comprehensive and well thought out implementation process” (Packard, 1995). Implementing TQM requires large scale change. Change can be difficult in a culture where patterns have been ingrained. However, the survival of the company is dependent upon the change. Change is not just focused on the customer but also on the entire culture of the organization, its belief systems and decision making processes. Changes done according to a plan are usually successful.
Total Quality Management is a management philosophy driven by customer needs and expectations. TQM focuses on quality and builds a management method based on full employee involvement. Its aim is to achieve long-term successful management through long-term customer
In this modern era, science has made a significant change on the global. With the high technology nowadays, it has made great changes in the market environment. Many of the machinery, electronics have become more advanced with the aid of technology. UPS provide delivery and courier services to their customers; therefore the means of transportation is very important in the organization. Just in time (JIT) was practiced by the organization in order to boost their business by reducing inventory. In other words JIT is an inventory strategy performed by UPS to boost their efficiency and reduce unwanted waste with the way of only accepting the goods that are really necessary in the production operation, and hence cutting down the cost for inventory.
TQM is essential to be used by all the companies especially the manufacturing companies who have the responsibility to ensure about the quality of the product. TQM is being viewed as the boon and it is an approach for improving the quality and customer satisfaction in the long run and also reduces the amount of waste (www.businessknowledgesource.com). There are various components which have to be addressed in implementing the TQM they are Ethics, integrity, training, trust, teamwork, communication and recognition (www.businessknowledgesource.com).
Making its first appearance in the 1950’s and continuing to grow each day since its increase in popularity in the 1980’s, Total Quality Management is another trend effecting Cost and Managerial Accounting (American Society for Quality, 2016). Total Quality Management is a philosophy that focuses on quality in every part of the business in order to meet stakeholders’ needs with efficiency and effectiveness, all without compromising ethical values (Chartered Quality Institute, 2016; American Society for Quality, 2016). It is important to note that Total Quality Management is not a means to an end, but instead is the end goal itself. Meaning that Total Quality Management is not a process used to achieve a goal, but instead
Even though Total Quality Management (TQM) has been replaced by other quality methodologies in many cases, organizations that have taken the long arduous journey to properly implement TQM benefited from it immensely [1]. While TQM may be perceived by many employees as just another passing fad that will soon fall by the wayside, the environmental conditions that exist within the organization will determine if TQM can be successfully implemented and take root. What is Total Quality Management (TQM)? TQM is a system of continuous improvement of work processes to enhance the organization’s ability to deliver high-quality products or services in a cost-effective manner [2].