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Limitations of TQM

by Student at Thapar University on Apr 26, 2011

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Limitations of TQM Limitations of TQM Presentation Transcript

  • Failure of TQM.
    A Case Study.
  • The Failed Attempt of IBM
    to implement 6-sigma Policy
    • Six Sigma is a business management strategy originally developed by Motorola, USA in 1981.
    • IBM was one of the first companies to implement Six-Sigma.
    • IBM’s estimate was that by implementing six-sigma, they would add $2.4 billion directly to the bottom line.
    • John Fellows Akers, the president of IBM between 1983 and 1989, talked publicly about what the Quality movement could do to reinvigorate American business and held IBM up as an example of how other companies should run their businesses.
    • But, IBM suffered a loss of $16 billion between 1991 & 1993.
  • Why did IBM fail to implement TQM ?
    • One of the reasons of failure was over-abundance of training instead what-they-need-when-they-need form of training.
    • The second reason was the heavy use of the Carrot-and-Stick i.e. a policy of offering a combination of rewards and punishment to induce behaviour.
    • The reason was the employees at IBM had the misconception that the success of the program meant company would need lesser employees hence would result in the loss of their own jobs.
  • Obstacles to implementation of TQM
    • Lack of:
    • Company-wide definition of quality
    • Strategic plan for change
    • Customer focus
    • Real employee empowerment
    • A very strong motivation
    • Time to devote to quality initiatives
    • Leadership
  • Other Factors Involved
    • Poor inter-organizational communication
    • View of quality as a “quick fix”
    • Emphasis on short-term financial results
    • Internal politics
  • Criticism of TQM
    • Blind pursuit of TQM programs
    • Programs may not be linked to strategies
    • Quality-related decisions may not be tied to market performance
    • Failure to carefully plan a program
  • Where TQM should NOT be implemented
    Paul Carrol, the author of Big Blues: The Unmaking of IBM, had pointed out in his book that Six Sigma may have been the wrong strategy for IBM.
    TQM is not beneficial for firms which operate in quickly changing business environments with short lifetimes of technology, e.g. Computer Firms. They should rather focus on innovation than on optimizing their current production process.
  • Thank You!!!