The continuous process of reducing or
eliminating errors in manufacturing,
streamlining supply chain management,
improving the customer experience and
ensuring that employees are
up-to-speed with their training.
Total quality management aims
to hold all parties involved in the
production process as
accountable for the overall quality
of the final product or service.
Total quality management (TQM) was
developed by William Deming, a management
consultant whose work had great impact on
Japanese manufacturing.
Key characteristics
Prevention of
errors before they
occur
Importance for the total
quality of :
Production
system
Products
Real participation
of all employees
are ensured
Commitment of the
senior management
for the cause;
Recognition of vital
role of customers
and suppliers
recognition of need of
continual improvement
Just in Time (JIT)
An inventory strategy companies employ to increase
efficiency and decrease waste by receiving goods
only as they are needed in the production process,
thereby reducing inventory costs. This method
requires that producers are able to accurately
forecast demand & suppliers must be reliable on
delivery .
A good example would be a car
manufacturer that operates with very low
inventory levels, relying on their supply
chain to deliver the parts they need to
build cars. The parts needed to
manufacture the cars do not arrive
before nor after they are needed, rather
they arrive just as they are needed.
Key characteristics
High quality:
The Quality is
Attained through
TQM
Speed:
rapid throughput to
meet customers’ needs
Reliability:
computer aided
manufacturing technology
will assist.
Flexibility:
small batch sizes
and automated
techniques are used.
Low costs:
Low costs are
attained through all
of the maps on side
:-)
Key features of
companies operating in a
JIT and TQM
environment are:
high level of automation
High levels of
overheads and low
levels of direct labour
costs
Customised products
produced in small
batches
low stocks
Emphasis on high
quality and continuous
improvement.
Standard product costs
are associated with
traditional manufacturing
systems producing large
quantities of standard
items.