Page 172 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 11: Production Management

Objectives of ISO 9000: Notes
Achieve, maintain and seek to continuously improve quality.
Improve the quality of operations.

Provide confidence to management that quality requirements are fulfilled.
Provide confidence to customers that quality requirements are fulfilled.

Benefits

ISO 9000 is not statutory in nature, yet getting ISO 9000 certification provides a window for
national/international acceptance on quality parameters. Moreover, complying with ISO 9000
makes an organization internally sound but it involves long bureaucratic procedure and is very
costly affair.

Did u know? Though both are for quality, ISO is a sub-system of TQM. ISO 9000 defines
minimum quality standards whereas TQM is a comprehensive approach.
Total Quality Management (TQM)

According to Wake and Moti, 1999, “Total quality management is a management philosophy
that focuses on perpetual enhancement through the prevention of problems and errors. It requires
continuous monitoring and control process, performance and quality, the placing of customer at
the summit of attention as well as a sense of awareness, commitment and involvement on the
part of management, all the workers, the customers and suppliers.”
Thus TQM involves concern for continuous improvement in quality, customer orientation and
empowerment of employees.

Schmidt and Finnigan (1992) suggest that TQM roots include:
1. Scientific Management: Finding the best way to do a job.
2. Group Dynamics: Testing and organizing the power of group experience.
3. Training and development: Investment in human capital.

4. Achievement Motivation: People get satisfaction from accomplishment.
5. Employee Involvement: Employee should have some influence in the organization.
6. Socio-technical System: Organization operates as an open system.
7. Organization Development: Helping the organization to learn and change.

8. Corporate Culture: Beliefs, myths and values that guide the behaviour of people throughout
the organization.
9. New Leadership Theory: Inspiring and empowering others to act.

10. The Linking Pin Concept of Organizations: Creating cross cultural teams.
11. Strategic Planning: Determining where to take the organization and how and when to get
there.

Hence, TQM is not just limited to products and services but it encompasses quality at People,
Process and Management Level. TQM is a philosophy that involves everyone into the cycle of
continuous improvement in the system in order to strive for customer satisfaction.

LOVELY PROFESSIONAL UNIVERSITY 167