Managing Quality

Part 2. The Business Context of TQM

The purpose of part 2 of the book is to introduce the reader to some activities which have an influence on TQM in a business context. It contains five chapters:

Chapter 8 – Policy Deployment

Chapter 9 – Quality Costing

Chapter 10 – Managing People

Chapter 11 – Managing Service Quality

Chapter 12 – Supplier Development

Policy deployment is the Western translation of 'hoshin kanri', the Japanese strategic planning and management process involving setting direction and deploying the means of achieving that direction, with appropriate involvement at all levels of the organizational hierarchy. Chapter 8 reviews the history and concept of policy deployment and proposes a policy deployment model. It is argued that this model will enable an organization to deploy, in an effective manner, its vision, mission, goals, objectives, targets and means.

Quality-related costs commonly range from 5 to 25 per cent of an organization's annual sales turnover, depending on the 'industry' and the way in which it manages quality. The reduction of costs is an important part of any business plan. Chapter 9 explains why quality costs are important to management, defines quality costs and outlines how to identify, collect, analyse, report and use them to best advantage. The typical pitfalls in quality cost collection are also aired.

Chapter 10 argues that a number of organizations have not achieved the success they expected with TQM because they failed to give sufficient attention ...