3. Fill in the blanks using the words from the list in the bottom.

CONTINUOUS IMPROVEMENT

Achieving the highest level of 1) ____ requires a well-defined and well-executed approach to continuous improvement. Such improvement needs to be part of all operations and of all work unit activities of a company. Improvements may be of several types:

• enhancing 2) ____ to the customer through new and improved products and services;

• reducing 3) ____;

• improving responsiveness and cycle time performance;

• improving 4) ____ in the use of all resources.

Thus, improvement is driven not only by the objective 5) ____, but also by the need to be responsive and efficient – both conferring additional 6) ____.

To meet all of these objectives, the process of continuous improvement must contain regular cycles of 7) ____. This requires a quantitative basis for assessing progress, and for deriving information for 8) ____.

a) planning, execution, and evaluation; b) value; c) quality and competitiveness; d) future cycles of improvements; e) errors, defects, and wastes; f) to provide better quality; g) productivity and effectiveness; i) market place advantage.

DISCUSSION POINTS

Comment on Figure 8. answering the questions below. What do you think it illustrates? Give a suitable title to the Figure.

1

Fig. 8. _____________

. Does higher quality mean lowering costs? Do you agree that the costs associated with preventing errors during design are often far less than correcting the errors during the production, the costs of preventing errors during the production are far less than correcting the errors after the final inspection, and the cost of finding and correcting errors during final inspection are far less than fixing the errors after the customer has received the goods or services?

2. How do higher revenues depend on higher quality? When are customers ready to pay a price premium?

3. Who are delighted customers? What is their role in advertising goods and services?

4. Why do you think creating empowered employees is a major goal of total quality management?

SELF-CHECK QUESTIONS

1. Why has a quality focus become imperative in a globalizing world?

2. What is Total Quality Management?

3. What are the characteristic features of TQM?

4. What are two main objectives of TQM? What is the core of TQM?

5. What are the essential components of TQM?

6. How is the organization's culture defined?

7. Define "zero defects".

8. When can zero defects become a part of a firm's culture?

9. What are the building blocks of TQM?

10. What is the role of Quality Management System?

11. What is the function of Performance Measures?

1. How do you think what the difference between a national view and an organizational view of competitiveness is?

2. What is meant by continuous improvement?

GLOSSARY

appropriate	подходящий, соответствующий
benefit	преимущество, выгода, прибыль
blaze	пламя
capability	способность, возможность
commitment	обязательство
delighted	восхищённый, довольный; радостный;
distillation	перегонка
electrical contractor	подрядчик на установку электрооборудования
eliminate	устранять, исключать
emergency generator	аварийный генератор
engage	заниматься ч-л., обязываться
exacerbate	обострять, усложнять, усиливать
externally	внешне
extinguish	тушить, ликвидировать
fiction	выдумка, вымысел, фантазия
flexibility	гибкость
implementation	выполнение, осуществление
in contravention of	в нарушение чего-л.
inflammable	легко воспламеняющийся, огнеопасный; горючий
internally	внутри
performance	исполнение, выполнение
recognition	узнавание, знак узнавания
sound	здоровый, крепкий
sustain	поддерживать, способствовать, обеспечивать
surround	окружать, обступать
vital	жизненный, (жизненно) важный, насущный
warning	предупреждение
whilst	пока