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) Cost Higher Quality Lower per unit Cost Olin School of Business Washington University Panos Kouvelis Manufacturing Management 28 What is total quality management? Olin School of Business Washington University Panos Kouvelis Manufacturing Management 29 The total quality management triangle Bedrock principles Managerial methods Improvement tools T Q M Olin School of Business Washington University Panos Kouvelis Manufacturing Management 30 Bedrock principles ? Customer focus ? Continuous improvement ? Total employee involvement Olin School of Business Washington University Panos Kouvelis Manufacturing Management 31 Customer focus “ A customer is the most important person even in the office … in person or by mail. A customer is not an interruption of our work … he is the purpose of it.” L. L. Bean Olin School of Business Washington University Panos Kouvelis Manufacturing Management 32 Customer focus ? Know thy customers ? Who they are ? What their requirements are ? Only the customer can define customer satisfaction – Quality is what the customer says it is! ? Organizational selfassessment Olin School of Business Washington University Panos Kouvelis Manufacturing Management 33 Continuous improvement Continuous improvement of all processes forever RESULT …….. Process Process: The way everyone thinks, behaves, and acts every day Olin School of Business Washington University Panos Kouvelis Manufacturing Management 34 The quality incline A (ACT) P (PLAN) C (CHECK) D (DO) QUALITY Olin School of Business Washington University Panos Kouvelis Manufacturing Management 35 Total employee involvement ? Inside every individual is infinite creative potential ? Involvement is getting people’s ideas, and respecting those ideas ? Management has to ask for ideas ? Let them make their workplace better for themselves Olin School of Business Washington University Panos Kouvelis Manufacturing Management 36 Total employee involvement (cont.) ? In a service anization customer relations are a reflection of employee relations ? Quality is a state of mind ? No other resource improves with age Olin School of Business Washington University Panos Kouvelis Manufacturing Management 37 Total employee involvement ? TQM is not a spectator sport I hear and I fet I see and I remember I do and I understand Olin School of Business Washington University Panos Kouvelis Manufacturing Manag