Friday, January 23, 2009

Principles of Good Product Development

Total Quality Management (TQM) is an approach to the art of management that has become steadily more popular in the West since the early 1980's. In a couple of sentences, Total Quality can be summarized as a description of the culture, attitude and organization of a company that aims to provide, and continue to provide, its customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with things being done right first time, and defects and waste eradicated from operations. The key points of TQM include:
  • customer-driven quality
  • TQM leadership from top management
  • continuous improvement
  • fast response to customer requirements
  • actions based on data and analysis
  • participation by all employees
  • a TQM culture

TQM has a customer-first orientation. Customer satisfaction is seen as the company's highest priority. This demands constant sensitivity to customers and fast response to their requirements. Each part of the company is involved in Total Quality, operating as a customer to some functions and as a supplier to others. Vendors are seen as partners in the process of providing customer satisfaction. Top management commitment and involvement is required in creating and deploying clear quality values and goals consistent with the objectives of the company, and in creating and deploying well defined systems, methods and performance measures for achieving those goals. Such systems and methods guide all quality activities and encourage participation by all employees. The development and use of performance indicators is linked, directly or indirectly, to customer requirements and satisfaction, and to employee remuneration.

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