Total Quality Management

Tools and Techniques-Pareto and Process Flow Diagram

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The final concept of TQM is performance measures. One of the Malcolm Baldrige National Quality Award core values is managing by fact rather than by gut feeling. Managing an organisation without performance measures is like a captain of a ship navigating without instrumentation. The ship would most likely end up travelling in circles, as would an organisation. Measures play a vital part in the success or failure of an organisation.Image result for Performance Measures-Quality Costs in TQM


Performance measures are used to achieve one or more of the following seven objectives.
Establish baseline measures and reveal trends
Determine which processes need to be improved
Indicate process gains and losses
Compare goals with actual performance
Provide information for individual and team evaluation
Provide information to make informed decisions
Determine the overall performance of the organization