Curious Cat Management Improvement Blog: Deming, lean thinking, innovation, customer focus, continual improvement, six sigma.
July 1, 2006
TQM for the Water Business

How dealers can put TQM to work by Brian Cusimano

Deming did not like the term TQM. It was not defined, so each person using it meant something different. And the faddish nature of the term drew a large number of “hacks” (consultants who spoke with authority but without knowledge). Seeing the term TQM used now however, I find refreshing. To use the term TQM you must go against the temptation to talk only about the current fad (TQM, learning organizations, reengineering, balanced scorecard, six sigma, lean…). This author defines what he means by TQM:

Total quality management (TQM) is simply a customer-focused dedication to continually improving everything you do every day. TQM is disciplined thinking about organizational goals, processes, and people, to ensure that the correct activities are completed correctly the first time.

Let’s say the dealer’s historic (benchmark) USC ratio is 1 percent. Recent USC ratios have been in the 3-4 percent range, so the problem is growing.

There are many TQM tools that can be used to solve such problems, including Pareto, fishbone diagrams, control charting, and cause-and-effect diagrams. In this case we will use the methods of ppm-defective and Pareto. Pareto simply uses bar charts to analyze the proportion of different defects.

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