Unlike quality costing, quality measurement relates to the ends in terms of overall business performance. Quality measurement has to adopt a process-based approach which looks at Value Added Management activity throughout the whole organisation. It is suggested that the seven criteria embrace every aspect of business behaviour and therefore provide the basis for incremental measurements which are interrelated and which reflect overall business performance in the market place.
'Measurement is a mystery". Most people who attack the task of developing measurement systems eventually come to this conclusion. Even those who are considered experts readily admit that measurement is complex and still an unresolved mystery. Measurement is complex, frustrating, difficult, challenging, important, abused and misused. Measurement at the individual, group, and organisational levels has tremendous problems and opportunities associated with it.'
Total Quality Management has an impact on every aspect of a business. The approach to its implementation will determine how effective the measurement exercise is going to be.
TQM as a bolt on activity to existing business operations:
The impact of TQM implementation as a bolt on component is characterized as:
- Difficult to assess;
- Brings little/no change.
TQM as on integrated model:
The impact of TQM as an integrated model is characterized by:
- A knock-on effect;
- Easy to assess;
- Brings big changes,
Measuring the effectiveness of TQM:
The measurement process in the context of TQM refers to the integrated model.
The measurement of TQM effectiveness takes place at the human, technical and business levels of the organisation,
The performance of the total organisational system can be characterized by seven inter-related criteria:
3 Total quality
5 Quality of working life;
7 Financial performance.