Thought for the quarter - Punjab National Bank Institute of ...

e-trackThe core issue to start with is that the product andservice should be fit in functionality, performanceand reliability. It should also be to customer fit inrespect to on time delivery, quality and price. At thesame time goal of quality should be customerfocused. The ultimate goal of quality is the customerfocused as given in following models.Product/ service fit – core issue to start with* Functionality *Performance *ReliabilityCustomer Fit – It works as binder for* Time delivery * Quality * PriceGoal of Quality Figure-2Customer Focus – Ultimate goal to•Exceed the customer’s expectation•Understanding the customer’s business•Consulting and training•Organizational alignment1.3 Total Quality Management (TQM)1.3.1 Definition-The word "total" in Total Quality Managementmeans that everyone in the organization must beinvolved in the continuous improvement effort, theword "quality" shows a concern for customersatisfaction, and the word "management" refers tothe people and processes needed to achieve thequality.Total Quality Management is not a program;it is a systematic, integrated, and organizationalway-of-life directed at the continuous improvementof an organization. It is not a management fad; it is aproven management style used successfully fordecades in organizations around the world. TQM isnot an end in itself; it is a means to an organizationalend. Total Quality Management must not be theprimary focus of an organization; it should merely bethe means to achieve organizational goals.Total Quality Management differs from othermanagement styles in that it is more concerned withquality during production than it is with the qualityof the result of production. Other management styleshave different concerns. Some major styles arecompared with TQM as follows.Management-by-Objectives (MBO) emphasizesachieving specified objectives, under the control ofindividual managers. This approach works againstmulti-functional process performance and interfereswith teamwork and quality. TQM is not objectiveoriented,except for its one goal of achievingcontinuous quality improvement.Management-by-Results (MBR) is managementby viewing past results as an indication of futureresults. It has been compared to driving anautomobile in a forward direction while looking inthe rear view mirror. In today's fast-paced, quickchangingbusiness environment, managers cannotrely on past results as a predictor of futureperformance. In contrast, TQM is only concernedwith current results and ways to improve them.M a n a g e m e n t - b y - E x c e p t i o n ( M B E ) i smanagement by identifying specific targets formanagement attention and action. It produces short-term results by reacting to immediate problems, butthere is no analysis of the processes that producedthe problems, so long-term benefits are lost. On theother hand, TQM is more concerned with correctingprocesses that produce problems than it is withresponding to individual problems.1.3.2 History of TQM-Total Quality Management was developed inthe mid 1940s by Dr. W. Edward Deming who at thetime was an advisor in sampling at the Bureau ofCensus and later became a professor of statistics atthe New York University Graduate School ofBusiness Administration. He had little successconvincing American businesses to adopt TQM buthis management methods did gain success inJapan.After World War II, General Macarthur took17January-March2011