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The implementation of total quality control is similar to that of other control methods. Targets must be set
for employee involvement and for new quality standards. Employees must be trained to think in terms of pre-
vention, not detection, and they must be given the responsibility and power to correct their own errors and ex-
pose any quality problems they discover. Top management should provide the training, information, and sup-
port employees need to meet quality standards.
One impetus for total quality management in the United States is the increasing significance of the global
economy. As described in the Manager's Shoptalk box, many countries have endorsed a universal framework
for quality assurance, called ISO 9000.
TQM TECHNIQUES
The implementation of total quality management involves the use of many techniques. Most companies
that have adopted TQM have incorporated quality circles, empowerment, benchmarking, outsourcing, reduced
cycle time, and continuous improvement.
QUALITY CIRCLES. One approach to implementing a total quality philosophy and engaging the work-
force in a decentralized approach is that of quality circles (QCs). A quality circle
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is a group of from 6 to 12
volunteer employees who meet regularly to discuss and solve problems affecting their common work activities.
Time is set aside during the workweek for these groups to meet, identify problems, and try to find solutions.
The key idea is that people who do the job know it better than anyone else and can make recommendations for
improved performance. QCs also push control decision making to a lower organizational level. Circle members
are free to collect data and take surveys. In many companies, team members are given training in team building,
problem solving, and statistical quality control to enable them to confront problems and find solutions more
readily. The groups do not focus on personal gripes and problems. Often a facilitator is present to help guide the
discussion. Quality circles use many of the teamwork concepts described in Chapter 18. The quality circle
process as used in most U.S. companies is illustrated in Exhibit 19.5, which begins with a selected problem and
ends with a decision given back to the team.
The quality circle concept spread to the United States and Canada from Japan. It had been developed by
Japanese companies as a method of gaining employee commitment to high standards. The success of quality
circles impressed executives visiting Japan from Lockheed, the first company to adopt this practice. Many other
North American companies, including Westinghouse, Digital Equipment, and Baltimore Gas & Electric Com-
pany, have since adopted quality circles. In several of these companies, managers attest to the improved per-
formance and cost savings. Westinghouse has more than 100 quality circles; a single innovation proposed by
one group saved the company $2.4 million. To build on these successes, Westinghouse created the Productivity
and Quality Center that assists departments throughout the company. It acts as a SWAT team of sorts to help
divisions do the same work in half the time with better quality results.
An alternative to the quality circle, which can be established within the traditional hierarchical structure, is
the web, which utilizes today's primary technology (integrated computer networks) and better serves the struc-
tural integrity of today's decentralized organization. Solutions are achieved through the inclusive sharing of in-
formation throughout the organization and across functions, departments, and even regions. As technology
speeds the need for instant decision-making and as decision-making is increasingly pushed down to frontline
workers, it is crucial that individual authority be enhanced with the best, up-to-the-minute information.
EMPOWERMENT. A significant trend within organizations adopting TQM is the empowerment of em-
ployees, suppliers, and customers in the decision-making process, reflecting dramatic changes in technology
and environment. As companies reduce staff and layers of management, offer alternative work options (such as
telecommuting, job sharing, or the creation of a mobile workforce), or shift tasks to suppliers or outside organi-
zations, managers need to share rather than hoard information. Likewise, as customers increase their product
sophistication levels and their demands for higher quality, organizations are recognizing the need for customer
inclusion in the information loop by providing product and service information and developing interactive rela-
tionships between the company and the customer. For example, companies are discovering the wisdom of em-
powerment through customization. Automakers such as Volvo and BMW are abandoning finished-product in-
ventories in favor of build-to-order. Customers order a customized car with options designed to meet their
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Quality circle (QC) A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems that affect their common
work activities.
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