Quality Improvement Cycle

The quality improvement cycle refers to documenting activities and planning sequences of a system with an aim to improve a process. Moreover, quality improvements can be effected in two ways

• Either, improving the process itself
• Or by improving the outcomes of the process.

Measurement

In the organization, firstly, it must start with the measurement of performance seen by the customer. Moreover, in the cycle of quality improvement, measurement plays an important role. And using measures in process control, like in control charts, and in performance improvement. Above all, TQM underlines the need to start with the process of fulfilling customer needs.

Elements of a good performance measurement framework (PMF)

• Firstly, leadership and commitment.
• Then, fulling employee involvement.
• Good planning.
• After that, a sound implementation strategy.
• Measurement and evaluation.
• Control and improvement.
• Achieving and maintaining standards of excellence.

Moreover, in order to assess and evaluate performance accurately, design the appropriate measures, developed and maintained by people who own the processes concerned. Above all, time-related measures and indicators have great value. And, if it obtains the true measures of the effectiveness of TQM, there are three components that must be examined – the human, technical and business components.

Five areas of Progress

Effectiveness

Effectiveness is the percentage actual output over the expected output:

Moreover, effectiveness then looks at the output side of the process and is about the implementation of the objectives.

Above all, effectiveness measures should review whether the organization or process owner(s) are achieving the results and accomplishing the right things.

Efficiency

Efficiency is  the percentage resource using over the resources that were planning to be used:

Clearly, this is a process input issue and moreover, it measures the performance of the process system management. Above all, it is possible to use resources ‘efficiently’ while being ineffective. Therefore, performance efficiency improvement must relate to its certain output objectives.

Productivity

In this, measures designs should relate the process outputs to its inputs

Productivity =  Outputs

Inputs

and quote this as expected or actual productivity:

 

Expected productivity = Expected output

Resources expectations which are to be consumed.

 

Actual productivity = Actual output

Consuming actual resources.

Above all, develope productivity measures for each combination of outputs and inputs, e.g. sales/all employee costs.

Quality

You already know about Quality. Moreover, the non-quality-related measures include the simple counts of defect or error rates, percentage outside specification or deliveries not on time. In addition, it can be the costs of poor quality.

Moreover, the quality measures should indicate positively whether we are doing a good job in terms of customer satisfaction or implementing the objectives. Above all, this really is the voice of customer measures.

Impact

Impact measures lead to the key performance indicators for the business or organization, including monitoring improvement over time. Moreover, Value-added management (VAM) needs the identification and elimination of all non-value-adding wastes, including time.

And value-added is simply the volume of sales minus the total input costs and provides a good direct measure of the impact of the improvement process in business.

ROVA =         Net profits before tax

Value added   × 100 percent

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