Total Quality Management
According to Stevenson, TQM is defined as a process "that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction." TQM involves three philosophies. There are continuous improvement, involvement of everyone in the organization, and customer satisfaction. Continuous improvement involves making continuous improvements to the process of converting inputs into outputs. The philospphy of customer satisfaction involves giving the customer what he or she wants and exceeding his or her expectations. The TQM approach involves finding out what the customer wants, designing a product or service that will meet the customers want, designing processes that will complete the job right the first time, keeping track of the result to make better improvements, and ex
That means doing what ever it is the customer wants. The bonus plan that is already established has contributed greatly to the accounting errors incurred by the accounting staff, which is the main reason the company lost 45% of its clientele. The accounting service had been successful for the past ten years, but there was no competition. Only a small percentage of customers left due to the cost, so Jones should offer the customer who left a lower price and not all of his customers. President Jones also proposed a lower cost of services to the customers. Therefore, the staff is only concern with getting the transactions processed as quickly as possible. Let department managers know that they are responsible for quality3. So, the President talked with twenty customers who had been with the company for a good period of time to see why they left the Jones Accounting Service. This case is about the Jones Accounting Service. Jones proposed the following steps as a solution:1. One can clearly see that Jones' plan does not adequately address the problems that the accounting service has encountered. The following chart from the case study shows the percent of customers who left the Jones Accounting Service and why. The accounting staff receives high level of pay for processing large volumes of transactions. In addition to the President's plan, I would inform all of the employees that in order to run a successful business we have to keep the customers happy. Jones has proposed another bonus plan.
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