Total quality control

From CEOpedia | Management online

Total Quality Control (TQC) is a system developed by Armand Feigenbaum to integrate the efforts of different groups of employees within the organization to develop quality management methods, maintain and improve standards and procedures. The aim is to achieve efficient production or service performance at an economically justifiable level, while at the same time achieving full customer satisfaction. The wording Total Quality Control cannot be confused with quality control. [1].

Company-Wide Quality

Comprehensiveness means that actions taken to eliminate errors must be carried out in all areas of the company's operations. Commitment to quality management is the responsibility of everyone, from the serial employee to the president, and not just the quality controller. Quality is not created in the production hall, and certainly not at the stage of quality control of the finished product [2]. Its level is influenced by the employees of the marketing department, project office, finance department, accountancy, purchasing and others [3]. Therefore, at the beginning of the 1970s this approach was called Company-Wide Quality Control, i.e. quality management on a company-wide scale. Concern for quality should be a priority at all levels of the company's activity [4].

Costs of errors according to Feigenbaum

The systematic approach to a comprehensive view of quality indicates the need to use statistical tools to set quality standards. Once they have been established, all activities are assessed for compliance with the standards. Improvement of quality standards assumes the application of corrective and preventive actions [5]. When setting standards, standards for the cost of errors should also be defined. Only a company that controls costs can effectively control quality. Implementation of pro-quality solutions is to make it possible to determine the type of errors and the amount of losses related to them (costs of errors), as well as to determine the expenditure on the prevention of errors and their consequences (prevention costs and evaluation costs) [6]. The costs of errors were divided by Mr Feigenbaum into two groups [7]:

- costs of internal errors (waste exceeding the specification's 'technologically justifiable' level, materials needed for corrections, time spent by staff on additional corrective action),

- costs of external errors (warranty claims, post-warranty claims, product liability, costs of product recall as a result of the presence of dangerous product defects, e.g. toxic substances in consumer goods).

As you can see, product liability covers costs caused by a defective product that has proven to be dangerous to the environment. Therefore, quality control activities are to focus not only on the inside of the company, but also on the impact on the environment [8].

The concealed factory concept

Costs incurred to prevent errors include prevention and evaluation costs. Prevention costs include: purchase of measuring equipment, preparation of the optimal design, development and improvement of the quality system, quality management training [9] The cost of evaluation includes the following costs: control of purchased raw materials (working time of employees and necessary preparations or reagents), handling of non-conforming products (storage, handling), recording of results, as well as the cost of operating measuring equipment and the cost of auditing by an external entity. Quality control costs and error costs are to be minimised by improving quality management programmes [10]. Therefore, in addition to the costs of errors and prevention, the costs of control should be measured. This has led to the formulation of the "hidden factory" concept. It assumes that when a full set of additional tasks has to be carried out when correcting errors (activities that were not planned but have to be carried out), something like a second circuit called a "hidden factory" is created. There are activities that should not be carried out there [11].

Total Quality Management

Nowadays, many companies use the idea of A. Feigenbaum. The concept of TQC was finally transformed into the concept of Total Quality Management, which is probably the most frequently quoted slogan in the sphere of quality, and which undeniably derives from his idea. Feigenbaum's demands for the development of a quality cost model were used in the 1994 version of ISO 9004. In interviews given in the current decade, Feigenbaum claims that today's global competitive market, using advanced technologies, creates even greater pressure on quality [12].


Examples of Total quality control

  • Total Quality Control (TQC) can be seen in the manufacturing process. One example is Toyota's use of the TQC system, which has enabled them to become one of the top automobile manufacturers in the world. Toyota uses a system of Total Quality Control which involves regular inspections of its production lines and products, as well as constant monitoring of customer feedback.
  • Another example of Total Quality Control is seen in the service industry. Airlines, for example, use TQC to ensure that their services are meeting customer expectations. Airlines use systems such as customer surveys, performance reviews, and employee feedback to ensure that their services are meeting customer expectations.
  • TQC is also used in the healthcare industry, where it is known as Total Quality Management (TQM). Hospitals and healthcare providers use TQM to ensure that they are providing quality patient care and services. TQM involves the use of quality assurance methods such as regular audits, staff training, and patient feedback to ensure that hospitals are providing the highest quality of care.

Advantages of Total quality control

Total Quality Control (TQC) has many advantages that can help organizations improve their production and service performance while achieving customer satisfaction. These include:

  • Improved Quality: TQC encourages organizations to focus on quality, which results in fewer defects, fewer customer complaints, and increased customer satisfaction.
  • Increased Productivity: TQC promotes a culture of continuous improvement, which leads to improved time management, better use of resources, and higher productivity.
  • Cost Reduction: TQC helps organizations identify and eliminate wasteful practices, which can reduce production costs and increase profitability.
  • Increased Employee Involvement: TQC encourages employees to actively participate in decision-making and problem-solving, which can result in improved morale and motivation.
  • Improved Communication: TQC encourages open and honest communication between employees, departments, and customers, which leads to better collaboration and faster problem resolution.

Limitations of Total quality control

Total Quality Control (TQC) has certain limitations that should be taken into account when implementing it as a quality management system. These include:

  • High Cost - Implementing TQC can be costly due to the need to invest in training and technology to ensure quality control.
  • Lack of Flexibility - TQC is generally a rigid system that may not be suitable for organizations that require a degree of flexibility in their operations.
  • Resource Dependence - TQC is heavily dependent on the availability of resources such as personnel and funds, and can be difficult to maintain in the absence of these resources.
  • Time Consuming - TQC requires a significant amount of time and effort to implement and maintain, which can be a challenge for some organizations.
  • Cultural Challenges - TQC may not be suitable for organizations with a traditional culture that is not open to change.

Other approaches related to Total quality control

Total Quality Control is an approach to managing organizations and processes that emphasizes continuous improvement in quality and customer satisfaction. Other approaches related to Total Quality Control include:

  • Six Sigma - A quality improvement approach used in various industries to improve processes, reduce waste, and increase customer satisfaction. It seeks to identify and eliminate errors and defects in products and services.
  • Kaizen - Kaizen is a Japanese term for continuous improvement. It is a business philosophy focused on making small, incremental improvements to processes and workflows to achieve greater efficiency and effectiveness.
  • Lean Manufacturing - Lean Manufacturing is an approach to production that emphasizes optimizing the use of resources, streamlining processes and eliminating waste. It is often used in conjunction with Total Quality Control to maximize value and minimize costs.
  • ISO Standards - ISO standards are international standards for quality management systems. They are designed to help organizations meet customer requirements and improve the quality of their products and services.

In summary, Total Quality Control is an approach to managing organizations and processes that emphasizes continuous improvement in quality and customer satisfaction. Other approaches related to Total Quality Control include Six Sigma, Kaizen, Lean Manufacturing, and ISO Standards.


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References

Footnotes

  1. Neyestani, Juanzon, 2016, pp. 1581-1591
  2. Neyestani, Juanzon, 2016, pp. 1581-1591
  3. Montgomery, 2009, pp. 5-9
  4. Neyestani 2017, pp.3-6)
  5. Neyestani, Juanzon, 2016, pp. 32-44)
  6. Watson 2005, pp. 51-56
  7. Neyestani, Juanzon, 2016, pp. 1581-1591
  8. Neyestani, Juanzon, 2016, pp. 1581-1591
  9. Sokovic, Pavletic Pipan, 2010 pp. 476-483.
  10. Sokovic, Pavletic Pipan, 2010 pp. 476-483
  11. Watson 2005, pp. 51-56)
  12. Neyestani 2017, pp.3-6

Author: Justyna Wąsiołek