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Ternopil National Economic University






Quality management (QM) is a concept which uses methodologies from various sciences such as production planning, engineering statistics, econometrics, and others. The rapid growth of the mathematical instruments (theories and algorithms) devoted to extract valid information from numerical data along with the tremendous evolution of computing means led to a subsequent development of QM. But the coherent application of a general theory of QM is not an easy task. That is why it is necessary to do further research and find the best ways of QM application in different branches of economy.

In my report I will first of all focus on the historic fact which predetermined the appearance of QM. Then I`ll analyze some modern tendencies which dominate in the sphere of QM. In my presentation I`ll try to describe the situation with practical application of QM in Ukrainian companies and make an attempt to elaborate some recommendations concerning the problem under discussion.

The founder of QM Frederick Taylor was concerned with the problem of higher productivity in the company where he worked as an engineer. Soon he became known for defining the techniques of scientific management which is the study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. Taylor was one of the first who attempted to systematically analyze behaviour at work. Each task was broken down to its smallest unit to identify the best way to do each job. Then the supervisor made sure the worker did only those actions which were essential to the task.

In such a way Taylor tried to increase efficiency in production. His concern was not only to lower cost and raise profits but also to make possible increased pay for workers through their higher productivity. Taylor believed that the application of scientific methods, instead of custom and rule of thumb, could yield productivity without the expenditure of more human energy and efforts. As a result of introducing new methods in quality management higher productivity was possible and both owners and workers could get higher wages and higher profits.

The history of quality management, from mere “inspection” to Total Quality Management, and its modern interpretations, has led to the development of essential processes, ideas, theories and tools that are central to organizational development. QM leads to performance improvements that are generally desired for individuals, teams and organizations.

The majority of outstanding specialists who were interviewed by the well-known “Journal of Quality Technology” consider that there are three main streams in QM:

- The classical one orientates mainly on statistical thinking and statistical procedures, relating them with economical aspects of quality.

- The academic one is interested in research in the field of constructing new types of control charts, finding the most economical sampling schemes for inspection.

- The modern one, in which the interest is equally concerned on theory and practice, study continuous processes (such as in chemistry) and those which are highly computerized (such as in semiconductor industry).

The costs for practical implementation of QM involve the operational ones, which include in fact a set of statistical procedures to be applied in quantitative analysis of process and product quality, and also costs which involve logistics, personnel, etc. Due to high cost there are some troubles with the introduction of QM in Ukrainian companies. For example, I analyzed the activity of the company “Nova”, the manufacturer of furniture, and found out that QM is not widely and properly applied there. That is why I can suggest the following recommendations to the owners of the company:

- Study the working process of the employees.

- Analyze the drawbacks and find out the reasons for low productivity.

- Discuss the optimal ways of improving the performance of each person in the company.

- Elaborate the system of motivation and encouragement for good results at work.

- Practice QM widely in all departments of the company.

In my opinion, the above mentioned recommendations can increase the productivity and efficiency of the company. That is why we are convinced that QM is worth applying in practice in each Ukrainian company.

 






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