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C hapter 20. M anaging improvement – the TQM approach. Source: Corbis/Munshi Ahmed. Key Terms Test. Total quality management (TQM)

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C hapter 20

Chapter 20

Managing improvement – the TQM approach

Source: Corbis/Munshi Ahmed

Key terms test
Key Terms Test

Total quality management (TQM)

A holistic approach to the management of quality that emphasizes the role of all parts of an organization and all people within an organization to influence and improve quality; heavily influenced by various quality ‘gurus’, it reached its peak of popularity in the 1980s and 1990s.

Internal customers

Processes or individuals within an operation that are the customers for other internal processes or individuals’ outputs.

Internal supplier

Processes or individuals within an operation that supply products or services to other processes or individuals within the operation.

Key terms test1
Key Terms Test

Service-level agreements (SLAs)

Formal definitions of the dimensions and levels of service that should be provided by one process or operation to another.


There are many different approaches to defining this. We define it as consistent conformance to customers’ expectations.

Prevention costs

Those costs that are incurred in trying to prevent quality problems and errors occurring; an element within quality-related costs.

Key terms test2
Key Terms Test

Appraisal costs

Those costs that are associated with checking, monitoring and controlling quality to see whether problems or errors have occurred; an element within quality-related costs.

Internal failure costs

Those costs that are associated with errors and failures that are dealt with inside an operation but yet cause disruption; an element within quality-related costs.

External failure costs

Those costs that are associated with an error or failure reaching a customer; an element within quality-related costs.

Key terms test3
Key Terms Test

ISO 9000

A set of worldwide standards that established the requirements for companies’ quality management systems, last revised in 2000. There are several sets of standards.

Six Sigma

An approach to improvement and quality management that originated in the Motorola Company but that was widely popularized by its adoption in the GE Company in America. Although based on traditional statistical process control, it is now a far broader ‘philosophy of improvement’ that recommends a particular approach to measuring, improving and managing quality and operations performance generally.

Key terms test4
Key Terms Test

European Quality Award (EQA)

A quality award organized by the European Foundation for Quality Management (EFQM) and based on the EFQM excellence model.

EFQM Excellence Model or Business Excellence Model

A model that identifies the categories of activity that supposedly ensure high levels of quality; now used by many companies to examine their own quality-related procedures.