Convenience

TQM Tools and Techniques
Beyond the strategic context of quality, managers can also rely on several specific tools
and techniques for improving quality. Among the most popular today are value-added
analysis, benchmarking, outsourcing, reducing cycle times, ISO 9000:2000 and ISO
14000, statistical quality control (SQC), and Six Sigma.
Value-Added Analysis
Value-added analysis
is the comprehensive evaluation of all
work activities, materials flows, and paperwork to determine the value that they add for
customers. Such an analysis often reveals wasteful or unnecessary activities that can be
eliminated without jeopardizing customer service. For example, during a value-added
analysis, Hewlett-Packard determined that its contracts were unnecessarily long, confus-
ing, and hard to understand. The firm subsequently cut its standard contract form down
from 20 to 2 pages and experienced an 18 percent increase in its computer sales.
Benchmarking
Benchmarking
is the process of learning how other firms do things
in an exceptionally high-quality manner. Some approaches to benchmarking are simple
and straightforward. For example, Canon routinely buys copiers made by other firms
and takes them apart to see how they work. This enables the firm to stay abreast of
improvements and changes its competitors are using. When Ford was planning the
newest version of the Focus, it identified the 400 features that customers identified as
value-added
analysis
The comprehensive
evaluation of all work
activities, materials
flows, and
paperwork to
determine the value
that they add for
customers
benchmarking
The process of
learning how other
firms do things in an
exceptionally high-
quality manner
476
Part 5:
Controlling
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being most important to them. It then found the competing cars that did the best job on
each feature. Ford’s goal was to equal or surpass each of its competitors on those 400
features. Other benchmarking strategies are more indirect. For example, many firms
study how Amazon manages its online retail business, how Disney recruits and trains
employees, and how FedEx tracks packages for applications they can employ in their
own businesses.
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