What is the Concept of Target setting in TQM? - Mechstudytips

 Concept of Target setting

 What is the Concept of Target setting in TQM? - Mechstudytips

 (1) Targets: 

A target is a number indicating the level of improvement aimed at.  The target must contain the following three points:

1) What?  

2) By when? 

3) By how much? 

Targets are the goals that must be expressed in concrete, easily understood terms 

(2) Rules for target setting:

There are no fixed rules for deciding on targets values, but they are usually chosen from considerations such as the following: 

1) The quantity by which we want to improve such as reducing the number of defects or increasing the sales, etc.

2) By comparison with values ​​set by other divisions, competitors, industry norms (Benchmarking) 

3) Values ​​that must be logically so 

4) Values ​​that must be achieved regardless of other considerations 

(Eg. Those relating to safety and pollution prevention) 

(3 ) Target setting approaches:

 The following are some standard target-setting approaches: 

1) Zero approach - Example: reduce the number of defects or non-conforming products to zero.

2) Halving approach - Example: halve the number of defects or break down hours etc. 

3) One-third approach - Example: reduce defects breakdowns, losses to a third of their present value.

  Note:

 The same logic can be followed for targets that are expected to increase, such as, Sales, Profitability and certain other financial ratios, etc.

  (4) Conditions to be fulfilled for well-set targets: 

The seven conditions that well-set targets must satisfy are as follows:

 1) They must be high enough to provide motivation (Stretched)

 2) They must produce benefits that surpass the cost and  effort of producing them (Surpassing)

 3) It must be possible to check whether or not they have been achieved (Measurable)

 4) They must stimulate desire and action on the part of the group members (Aspirational)

 5) All involved must believe in  the targets and accept them (Acceptable 

6) They must be capable of being achieved (Realistic) and they should be relevant to higher-level policies (Relevance)

 7) The targets should be time-bound 

(5) Conclusion:

 1) SMART principle  : 

The above conditions can be summed up as the SMART principle 

S __Stretched and Surpassing 

M ___Measurable 

A ___Aspirational and Acceptable

 R___Realistic and Relevant

 T__ Time - bound