Preventing TQM problems: Measured steps toward customer‐driven quality improvement

Abstract

Abstract Quality‐improvement initiatives are a hallmark of today's progressive management. Many companies that have spent a lot of time and money on such programs, however, have few tangible results to show for their expenditures. The root of this problem lies not with the premise of quality improvement, but with errors in setting priorities and measurement. An effective quality‐improvement process relies on three building blocks: (1) quantifying the bottom‐line impact of poor quality and customer problems; (2) identifying quality priorities on the basis of market/revenue impact; and (3) continuously measuring performance in each priority area and having top management review the results. This article identifies the pitfalls in executing these activities and suggests a method for supporting a customer‐driven quality‐improvement process.