Solved: Explain the concept of total quality management(TQM) and distinguish between the four

Answer: –

Every company will have their own quality management approach in production of products according to their culture. Total quality management concept completely describes the management approach up on the quality of a product and quality of a product can be defined as the complete customer satisfaction. By the above statement we can simply say that it is a management approach for customer satisfaction which enhances the growth of the company for long period. Total quality management runs based on 8 principles they are

1. Identifying customer needs.

2. Involving all employee’s to a particular goal regarding customer satisfaction.

3. Processing of product as per customer needs.

4. Improving creativity in product design.

5. Integrated system to fulfill company’s common goal.

6. Applying analytical and strategic approach in product making.

7. Proper decision making in critical situation.

8. Day-to-day communication amoung all departments.

As to satisfy customers the product should be high in quality and in order to achieve it, company that incurred cost by use of extent resources to produce the quality product is known as cost of quality. They are four main components they are  Prevention cost, Inspection cost, Internal failure cost and External failure cost. Difference between the four main components are stated below.

1. Prevention cost: – It is a cost incurred during design implementation and quality management of a product to avoid quality problems.

2. Inspection cost: – It is a cost incurred during measuring and monitoring quality of a product during process.

3. Internal failure cost: – It is a cost incurred by defective products that are identified during inspection process. Internal failure cost involves scrap, wastage and redesign of defective products.

4. External failure cost: – It is a cost incurred by defective products that are identified by the customers. External failure cost involves with damages, warrenty and service of the product.