Total Quality Management - CII Institute of Logistics

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Total Quality Management wish to go to work in industry. This example also can be related to the user-based definition, based on how well the product performs its intended function. Someone who chooses a respected regional university rather than attending an expensive nationally known private university, would be seen as applying the value-based definition, based on how well the selected university provides performance at an acceptable price or conformance to perceived quality standards at an acceptable cost. The manufacturing-based definition measures quality by the product's "conformance to specifications;" in other words, how much does the product resemble the perfected prototype when it rolls off the assembly line? Students may look at the catalog description or course syllabus, when doing a course evaluation, and make a judgment as to whether the resulting course “conformed to specifications” given in these documents. Quality Definition for a Hospital A particular hospital may like to differentiate itself by advertising its “rating” in a specialty, such as cardiac care, with an implied guarantee of better results, which is product-based claim. If the “intended use” for a patient were simply to treat a badly upset stomach, then a low-cost local emergency care clinic would be satisfactory. However, if the “intended use” is to have the best possible care, a person may want to go to the number one hospital in terms of the state of the art facilities. Money is no consideration. Quality of treatment is important. This is a classic “value-based” scenario. Finally, a “manufacturing-based” healthcare experience would be one that conformed to specifications. Typically this would mean a general hospital with an emergency room that will take care of any sort of trauma injury, from automobile accidents to gunshot wounds, quickly and efficiently. CII Institute of Logistics 18 Website: www.ciilogistics.com
Total Quality Management 1.8 Competitiveness A firm's competitive advantage lies in its ability to achieve market superiority. It is a) driven by customer wants and needs; b) makes a significant contribution to the success of the organization; c) matches the organization’s unique resources with opportunities in the environment; d) is durable, lasting, and difficult for competitors to copy; e) provides a basis for further improvement; and f) provides direction and motivation to the entire organization. Quality supports a firm's competitive advantage by providing for more efficient use of resources and production methods within the company, thus producing products or services that are superior to those of competitors. Point to Ponder Quality is not a Competitive Edge. It is the Competitive Edge! It is worth remembering Dr. Deming’s chain reaction model, which emphatically declares that improvement in quality alone, will decrease the cost and that in turn will make a firm competitive in the market place. 1.9 Enhancing Customer Value through TQM CRM is the Key A firm that is “market driven” would exhibit several customer-focused characteristics that a “marketing driven” compa ny might not have. In fact, it would be rare for a “marketing driven” firm to pay much attention to developing a customer relationship management (CRM) system. This attention to customer needs would be more typical of a “market driven” firm. A CRM system requires that an organization establish effective strategies for listening to, and learning from, customers, as well as developing approaches to measure satisfaction relative to competitors. The system must also be designed to build relationships, in order to understand present and future customer needs, and keep pace with changing markets. The “marketing driven” firm may be CII Institute of Logistics 19 Website: www.ciilogistics.com
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Total Quality Management - CII Institute of Logistics

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