Total Quality Management and Purchasing from the book, "Selling and Sales Management" by David Jobber and Geoff Lancaster (7th edition)

1. Total Quality Management
and Purchasing
IMK205 Procurement

2. TOTAL QUALITY MANAGEMENT (TQM)
• Total Quality Management (TQM) is the continuous process of minimizing
or removing errors in manufacturing. It is a holistic approach to long-
term success that views continuous improvement in all aspects of an
organization as a process and not as a short-term goal.
• Total Quality Management (TQM) is a structured approach to overall
organizational management. The focus of the process is to improve the
quality of an organizations outputs, including goods and services,
through continual improvement of internal practices. Its goal is to
completely transform the organization through progressive changes in
the attitudes, practices, structures, and systems. TQM efforts typically
relies heavily on the previously developed tools and techniques
of quality control.

3. TQM REQUIREMENTS FOR IMPLEMENTATION
To implement Total Quality Management, it requires the following:
• Defining the minion
• Identifying system output
• Identifying customers
• Negotiating customer requirements
• Developing a “supplier specification” that details customer
requirements and expectations
• Determining the necessary activities required to fulfill those
requirements and expectations

4. QUALITY REQUIREMENTS FOR SUPPLIERS
• Quality Assurance Expectations
• Quality Target Commitment
• PPM (Parts per Million) target agreements
• Warranty Agreement
• Urgency to solve problems

5. COSTS ASSOCIATED WITH QUALITY
• Quality costs are the costs associated with preventing, detecting,
and remediating product issues related to quality. Quality costs do
not involve simply upgrading the perceived value of a product to a
higher standard. Instead, quality involves creating and delivering a
product that meets the expectations of a customer.
• Prevention costs
• Appraisal costs
• Internal failure costs
• External failure costs

6. QUALITY FUNCTION DEPLOYMENT (QFD)
• Quality function deployment (QFD) is a method to help transform
customer needs into engineering characteristics for a product or
service.
• QFD is designed to help planners focus on characteristics of a new
or existing product or service from the viewpoints of market
segments, company, or technology-development needs.

7. By Jariyaporn Seenay 585102425552
and Ambre-Elise Cetaire 155102423985