Wednesday, October 24, 2012

TQM Revolutionized by Japanese Industry

In their efforts to emulate the success in the Japanese top quality revolution, some American corporations have blindly initiated high quality programs without maintaining their focus on client satisfaction. These businesses became caught up with narrow statistical benchmarks of TQM measurement: "Quality devotees grew obsessed with methodology--cost-cutting, defect reduction, quicker cycle times, continual improvement" (Greising, 1994, p. 56). An instance is Varian Associates Inc., a scientific equipment maker. During the 1980s, Varian embraced the TQM movement with fervor. The company put 1,000 of its management staff over a four-day seminar on quality: "The company's Silicon Valley headquarters buzzed with quality-speak" (Greising, 1994, p. 54).

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Varian virtually reinvented its business in its implementation of top quality standards. The resulting improvements in top quality control were astounding. Varian increased on-time delivery by 50 percent, its buyer service department ranked Number A single within the marketplace for prompt customer visits, and its semiconductor unit cut the time it took to produce new designs by a couple of weeks (Greising, 1994, p. 54).

Unfortunately, Varian staff became so obsessed with meeting production schedules that it grew lax in returning client calls and taking the time to instruct customers during the use of its equipment. In other words, consumers felt rushed. Like a result, clients defected to the competition and Varian posted a $4.1 million loss in 1990. In the words of one Varian executive, "All of the quality-based charts went up and towards the right, but everything else went down" (Greising, 1994, p. 54). Varian has due to the fact begun rethinking its focus on statistical measurements of TQM improvement and is emphasizing a smaller amount pricey methods to make sure consumer satisfaction.

Some experts contend that spontaneous recognition of a task well done yields superior results more than the conventional payment of bonuses or commissions in accordance with numerical objectives. Ways of spontaneous recognition could include baseball caps or T-shirts emblazoned from the title in the business project or team celebrations. For example, the Minneapolis-based Tennant Business holds a company-wide celebration each 18 months to celebrate "zero defects day" (Job Design, undated, p. 207). Employees can engage in smaller-scaled gatherings to celebrate major company milestones by heading out to breakfast or lunch together, holding potluck parties, or weekend retreats. Methods of spontaneous recognition serve as reminders of the value of quality although as well fostering employee camaraderie by bringing them together in relaxed environments.

It is important that management maintain the correct attitude in soliciting input from employees. Numerous managers are loathe to receive unfavorable news or criticism from subordinates: "According to Deming, one problem with American management is that it has grown utilized to 'killing the bearer of damaging tidings'" (Hill and Jones, 1995, p. 151). Managers need to maintain in mind that it is impossible to find merchandise to problems unless the problems are brought out to the open.

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