INTRODUCTION TO TQM

Structure
1.1

Objectives

1.2

Introduction

1.3

TQM-

1.4 Five Main Advantages of TQM

1. 5 Basic Principles of Total Quality Management (TQM)
1.6 History of TQM
1.7 Development of the Importance of Quality Management
1.8 Total quality management- review
1.9 Quality definition
1.10 Dimensions of quality
1.11 Gurus of tqm
1.12 Barriers to tqm implementation
1.13 Benefits to tqm
1.14 Objectives of tqm
1.15 Principles and philosophies of quality management
1.16 TQM processes - understanding processes and methods for process improvement
1.17 Check Your Progress
1.18
Summary
1.19 Glossary
1.20 Answer to Check Your Progress
1.21 References

"Quality is everyone's responsibility." ~ Edward Deming

TQM refers to an integrated approach by management to focus all functions and levels of an organization on
quality and continuous improvement. Over the years TQM has become very important for improving a firm's
process capabilities in order to achieve a fit and sustain competitive advantages. TQM focuses on encouraging a
continuous flow of incremental improvements from the bottom of the organization's hierarchy. TQM is not a
complete solution formula as viewed by many formulas cannot solve managerial problems, but a lasting
commitment to the process of continuous improvement.
The main driving force of TQM is customer satisfaction.

Five Main Advantages of TQM

1. Encourages a strategic approach to management at the operational level through involving multiple
departments in cross-functional improvements and systemic innovation processes
2. Provides a high return on investment through improving efficiency
3. Works equally well for service and manufacturing sectors

4. Allows organizations to take advantage of developments that enable managing operations as crossfunctional processes
5. Fits an orientation toward inter-organizational collaboration and strategic alliances through
establishing a culture of collaboration among different departments within the organization

Point 1: Create constancy of purpose toward improvement of the product and service so as to
competitive, stay in business and provide jobs.

become

Point 2: Adopt the new philosophy. We are in a new economic age. We no longer need live with commonly
accepted levels of delay, mistake, defective material and defective workmanship.
Point 3: Cease dependence on mass inspection; require, instead, statistical evidence that quality is built in.
Point 4: Improve the quality of incoming materials. End the practice of awarding business on the basis of a
price alone. Instead, depend on meaningful measures of quality, along with price.
Point 5: Find the problems; constantly improve the system of production and service. There should be
continual reduction of waste and continual improvement of quality in every activity so as to yield a continual
rise in productivity and a decrease in costs.
Point 6: Institute modern methods of training and education for all. Modern methods of on-the-job training
use control charts to determine whether a worker has been properly trained and is able to perform the job
correctly. Statistical methods must be used to discover when training is complete.
Point 7: Institute modern methods of supervision. The emphasis of production supervisors must be to help
people to do a better job. Improvement of quality will automatically improve productivity. Management must
prepare to take immediate action on response from supervisors concerning problems such as inherited defects,
lack of maintenance of machines, poor tools or fuzzy operational definitions.
Point 8: Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication
and other mechanisms that will enable everybody to be part of change, and to belong to it. Fear can often be
found at all levels in an organization: fear of change, fear of the fact that it may be necessary to learn a better
way of working and fear that their positions might be usurped frequently affect middle and higher
management, whilst on the shop-floor, workers can also fear the effects of change on their jobs.
Point 9: Break down barriers between departments and staff areas. People in different areas such as research,
design, sales, administration and production must work in teams to tackle problems that may be encountered
with products or service.
Point 10: Eliminate the use of slogans, posters and exhortations for the workforce, demanding zero defects
and new levels of productivity without providing methods. Such exhortations only create adversarial
relationships.
Point 11: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals
for people in management. Substitute aids and helpful leadership.

Point 12: Remove the barriers that rob hourly workers, and people in management, of their right to pride of
workmanship. This implies, abolition of the annual merit rating (appraisal of performance) and of
management by objectives.
Point 13: Institute a vigorous program of education, and encourage self-improvement for everyone. What an
organization needs is not just good people; it needs people that are improving with education.
Point 14: Top management's permanent commitment to ever-improving quality and productivity must be
clearly defined and a management structure created that will continuously take action to follow the preceding
13 points.
Basic Principles of Total Quality Management (TQM)
by Ron Kurtus (28 May 2001)
The basic principles for the Total Quality Management (TQM) philosophy of doing business are to satisfy the
customer, satisfy the supplier, and continuously improve the business processes.
Questions you may have include:

How do you satisfy the customer?

Why should you satisfy the supplier?

What is continuous improvement?

This lesson will answer those questions. There is a mini-quiz near the end of the lesson.
Satisfy the customer
The first and major TQM principle is to satisfy the customer--the person who pays for the product or service.
Customers want to get their money's worth from a product or service they purchase.
Users
If the user of the product is different than the purchaser, then both the user and customer must be satisfied,
although the person who pays gets priority.

Company philosophy
A company that seeks to satisfy the customer by providing them value for what they buy and the quality they
expect will get more repeat business, referral business, and reduced complaints and service expenses.
Some top companies not only provide quality products, but they also give extra service to make their
customers feel important and valued.
Internal customers
Within a company, a worker provides a product or service to his or her supervisors. If the person has any
influence on the wages the worker receives, that person can be thought of as an internal customer. A worker

should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or
promotion.
Chain of customers
Often in a company, there is a chain of customers, -each improving a product and passing it along until it is
finally sold to the external customer. Each worker must not only seek to satisfy the immediate internal
customer, but he or she must look up the chain to try to satisfy the ultimate customer.
Satisfy the supplier
A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are
purchasing goods or services.
External suppliers
A company must look to satisfy their external suppliers by providing them with clear instructions and
requirements and then paying them fairly and on time.
It is only in the company's best interest that its suppliers provide it with quality goods or services, if the
company hopes to provide quality goods or services to its external customers.
Internal suppliers
A supervisor must try to keep his or her workers happy and productive by providing good task instructions,
the tools they need to do their job and good working conditions. The supervisor must also reward the workers
with praise and good pay.
Get better work
The reason to do this is to get more productivity out of the workers, as well as to keep the good workers. An
effective supervisor with a good team of workers will certainly satisfy his or her internal customers.
Empower workers
One area of satisfying the internal suppler is by empowering the workers. This means to allow them to make
decisions on things that they can control. This not only takes the burden off the supervisor, but it also
motivates these internal suppliers to do better work.

Continuous improvement
The third principle of TQM is continuous improvement. You can never be satisfied with the method used,
because there always can be improvements. Certainly, the competition is improving, so it is very necessary to
strive to keep ahead of the game.
Working smarter, not harder
Some companies have tried to improve by making employees work harder. This may be counter-productive,
especially if the process itself is flawed. For example, trying to increase worker output on a defective machine
may result in more defective parts.

Examining the source of problems and delays and then improving them is what is needed. Often the process
has bottlenecks that are the real cause of the problem. These must be removed.
Worker suggestions
Workers are often a source of continuous improvements. They can provide suggestions on how to improve a
process and eliminate waste or unnecessary work.
Quality methods
There are also many quality methods, such as just-in-time production, variability reduction, and poka-yoke
that can improve processes and reduce waste.
History of TQM
Quality in Daily Life
Quality has been an age-old concern. The discerning customer in shops and market places has applied
quality techniques, prodding and turning fruits and vegetables testing for firmness, freshness and fitness for
the purpose of consumption. If the products were not adequate, the purchase would not take place.
In the hustle and bustle of cattle markets farmers argued and bartered over the fitness of animals for
breeding, dairy farming or consumption, providing evidence for their case by inspection against criteria
learned from their forefathers. Those shoppers and farmers passed on their knowledge to their children and
similarly it was passed on to their childrens children.
I too learned the principles of inspection and learning from my mother as she scrutinized clothes and
footwear, fruits and vegetables in our town market. Eager market traders would get short shrift from her if
clothes had weak stitching, zips got stuck when zipping, fruits were marked and bruised or vegetables
appeared old and unpalatable.
The issue of quality of goods and services is not new. Throughout history, society has demanded that providers
of goods and services should meet their obligations. As long ago as 1700 BC King Hammurabi of Babylon
introduced the concept of product quality and liability into the building industry of the time by declaring:
If a building falls into pieces and the owner is killed then the builder shall be put to death. If the owners
children are killed then the builders children shall be put to death.
Quality in the middle Ages
The maintenance of quality was one of the key functions of the craft guilds of the middle ages with only those
workers who could achieve acceptable quality standards being admitted to membership. Until the advent of
mass production, building quality into a product was the job of a craftsman, what Feigenbaum referred to as
operator quality control. Skilled craftsmen produced high quality products and had pride in their work.
Tradesmen gained a reputation for quality products through skilled craftsmanship that was maintained over
time by enforcing lengthy apprenticeship of newcomers to masters-of-the-trade. Tradesmen worked in small
tightly knit and controlled firms. Monopolistic guilds were organized to ensure achievement of a high level
skill and quality throughout its membership and the trade.
Quality during the Industrial Revolution

The industrial revolution revolutionized the manufacturing of products. Mass production set in large factories
employing armies of people gave rise to new management ways. There were workers, supervisors and
foremen, and managers. The establishment of factories and of this new organizational structure led to the
withering of many small business trades and the removal of apprentices and masters from positions.
Frederick Taylors scientific management brought in efficient operations to increase output through mass
production by breaking down jobs into parts with each part carried out by individual specialized workers.
Practical use of Taylors scientific management, built around specialization and the division of labor,
reached a high point with the advent of the mass production line with the workers performing repetitious
tasks on a mammoth scale.
Mass Production and Scientific Management
Mass production techniques reaped impressive early dividends. Henry Ford (1863-1947) built on the increased
productivity brought by mass production. There was, however, more to Ford than flow lines and workers
doing mindlessly repetitive tasks. Instead of controlling costs, to produce lower prices, Ford set the price and
challenged the organization to ensure costs were low enough to meet the figure. The trouble was that when
other manufacturers add extras, Ford lost touch with the aspirations of customers.
Compare this with the approach of Fords predecessors. The first carmakers, such as Frances Panhard et
Levassor, employed a small number of skilled craftsmen. The cars they produced were unique-- almost
prototypes-- with parts being filed and cut to make them fit. As the parts were of varying sizes, craftsmanship
was required. Ford bought in uniform and interchangeable parts. Skill departed and instead production was
based round strict functional divides, i.e. demarcations. At the center of Fords thinking was the aim of
standardizationsomething continually emphasized by the carmakers of today though they talk in terms of
quality and Ford in quantity.
Scientific management emphasized the divorce of conception from execution and the substitutability of labor.
The craftsmen concept disappeared with Taylorism and so did quality achieved through skilled
craftsmanship. Inspection, thus, remained the sole guarantor of quality. Quality was no longer built into the
product.
Quality between the World Wars
The effort of the First World War demanded yet more mass production. Quality became a pressing issue with
forces requiring reliable products to arrive on time. With this came the recognition that quality had been
central to the allies success in the war. This led to the formation of associations and institutes, and to the
publication of formalized ideas in quality. For example, in Britain, the Technical Inspection Association was
formed in 1919, becoming incorporated as the Institution of Engineering Inspection in 1922.
Quality of Manufactured Product. This gave the Taylorian discipline a much sounder scientific footing. It
converted statistical methods into a manufacturing discipline. A precise and measurable definition of
manufacturing control was worked out. Stringent techniques for monitoring and evaluating day-to-day
production and improving quality were dictated.
In 1932, Shewhart visited the University of London to lecture and to discuss his and others research ideas.
This visit attracted significant interest which led to the formation of the Industrial and Agricultural Section of
the Royal Statistical Society and the publication by the British Standards Institute (BSI) of the first standard
on quality control.
Japanese businessman Konosuke Matsushita-- the founder of one of the worlds largest electronics groups-was greatly influenced by the work of Henry Ford.

i)
ii)
iii)
iv)

From Ford, Matsushita was inspired by the prospect of mass production and also the concept of
using price reductions to generate more sales.
Matsushita followed the Ford-like objective of producing an inexhaustible supply of goods. But
to this, he added thus creating peace and prosperity throughout the land.
Ford was obsessed with production and forgot the broader view. Matsushita saw the company as
having a role in society.
The broader view of Matsushita was as follows:
a. Employees are important not mere functionaries ensuring a steady stream of products are
produced.
b. Customers are of course important.
c. Suppliers are also important - Matsushita was visiting the factories of his suppliers in the 1930s
and giving them advice on how to produce their products more effectively.
d. If there is an effective partnership, all sides win and society benefits from the prosperity
generated.

Matsushita was not alone. Other Japanese managers and their organizations seized the initiative.
After the war, they were guided by two Americans-- W. Edwards Deming (1900-93) and Joseph
Juran (1904- )
Quality after the Second World War
The Second World War again knocked industry off-balance. Priority was given to meeting delivery dates at
the expense of standards in the product. In the UK the SR 17 statistical advisory unit of the ministry of supply
was established. This unit made an important contribution to the industrial war effort, but quality was to have
lean years in the UK after the war was over.
In North America the wartime effort had a more profound and longer lasting effect. Thousands of quality
specialists that had been trained mostly by the War Production Board formed the American Society for
Quality Control (ASQC). ASQC expanded its membership to about 50000 in 29 specialist divisions. However,
the real success story for quality thinking emerged in one of the defeated nations. The Japanese launched a
new nationalistic drive for expansion, pursuing economic rather than military goals. Following the Second
World War Japans industry was devastated and the goods it produced were known for their indifferent
quality. For example, in the 50s and 60s Japanese cars were virtually impossible to sell in the United States or
Europe. A major thrust in Japanese manufacturing was to tackle these difficulties by employing and
developing quality approaches.
After the war many top industrialists were sacked and their successors subsequently promoted from
operational areas. Foreign lecturers were invited to present their quality initiatives and to offer courses and
training for Japanese managers.
A famous guru who played a major role in this process of improvement was W. Edwards Deming, but there
were others from the United States such as J. M. Juran . They had the benefit of an intimate involvement in
working out sound quality techniques during the war and in the post-war period. The two had also worked in
the mid-1920s in Western Electric Co. were both influenced by Shewhart.
The American Approach to Quality
The failure of American corporations to listen to Deming and Juran has often been commented on. In
retrospect it appears to be one of the centurys most profound errors. At the time, however, it was
understandable. In terms of quality, American products were as good as European ones and far better than
those produced in Japan. The American preoccupation was on lowering prices and the vehicle for achieving
this was generally recognized to be lowering labor costs. The innovation strategy favored by the United States
in the post-war years was the only strategy in a period of low-cost resources, expanding markets and low
international competition. At that time, quantity was more important than quality and management was more

concerned with increasing sales than with reducing costs. Western industry believed this would last forever
and ignored the quality-based teachings of experts such as W. E. Deming and Joseph Juran, who,
consequently, decided to turn their attention to the East.
In Harvard Business Review article (1993), Juran also made much of the fact that his Japanese audiences in
the early 1950s were the chief executives of major corporations, whereas his North American listeners were
primarily engineers and quality inspectors. Jurans message was not, he admitted, new or revolutionary.
Making things to a specific design and then inspecting them for defects was something the Egyptians had
mastered 5000 years previously when building the pyramids. The American engineers werent ready for
history lessons.
Deming was similarly well received in Japan. In 1951, the first award ceremony for the now prestigious
Deming Prize was held
Japans Approach to Quality
Japan, having been burned to the ground during the war, encouraged a climate of change from the start.
Japanese managers took seriously the warnings about forthcoming changes in the customers perception of
quality and about the future demands for faster development of customer-oriented products and services. So
they successfully combined the strategy of innovation with that of continuous quality improvement. This
brought a reduction in costs, faster development times, prompt deliveries, customer satisfaction and enormous
competitive advantage internationally. The Western approach was always based on the belief that innovation
alone was enough for survival and growth. This has already been proved wrong on many occasions. The
timing of Juran and Deming in Japan was impeccable. But, it was not only a question of arriving at a time
when the Japanese were striving to rebuild their economy. Their ideas struck a chord in the East. Their
emphasis on groups rather than individuals was attractive to the Japanese, while it simply failed to ignite a
spark in the United States. Western preoccupation with individual achievement meant that sublimating
individual aspirations to group consciousness was a quantum leap rather than a logical progression. Japanese
industry was particularly receptive to the quality message for a number of reasons.
Some of them are as follows:
i)
ii)
iii)

The long-established Japanese tradition of fine craftsmanship and attention to detail through
miniaturization struck a chord with these concepts.
The strongly statistical flavor of the early work with its emphasis on quantifying variation in
quality fitted well with the Japanese penchant for numbers.
Quality was seen as a national survival strategy. It was felt that the only way Japan would be able
to afford the food and materials that it needed, being poor in natural resources, was to export goods
of high quality at low prices. Quality was thus a key objective.

The British Approach to Quality

Meanwhile, the British approach was slow and backward compared to the establishment of quality as an
important managerial issue in North America and the tidal wave sweeping over Japan. Belatedly, in 1961, the
National Council for Quality Reliability was set up as part of the British Productivity Council. The Council
became defunct when the British Ministry of Technology withdrew financial support. Quality in Britain then
found its home in the British Quality Association.
4. Development of the Importance of Quality Management
Up till now we have seen different countrys approach to quality, now we will see about the development of the
importance of quality management.

The success of Japanese manufacturers during the 1960s and 1970s changed the emphasis from a quality
control approach to a quality assurance approach requiring more of the business functions to be involved in
the management of quality and requiring longer implementation timescales. By the 1970s the Japanese had
become masters at achieving quality in their manufacturing sector. But they did not sit back on this
achievement. They built on the technology transfer that had happened from the West to Japan. Even today,
the Japanese remain hungry for new innovative ideas sending their senior academicians to leading research
groups in the West. They have not given up their quest for superior production by continuous improvement in
knowledge, methods and techniques.
The Japanese were well adept in switching commercial interests from competition in productivity to
competitiveness in quality. In winning the quality challenge, the Japanese were able to achieve a massive
increase in their export levels that rocked Western economies. Negative trade balances with Japan hit many
Western countries. The Japanese quality revolution enabled them to achieve immense economic power,
dominating world trade. The Japanese success story urged some managers in Western and other countries to
wake up to the quality issue. People recognized that Japanese success was not only due to national, cultural
and social differences but also reflected strongly a new attitude and desire of Japanese management to ensure
that consumers receive what is promised. By the 1980s Japans huge success made evident the direct link
between quality and viability of organizations and economies.
The 1980s, therefore, became an era of competitive challenge with increasing number of companies adopting
quality management. Many consultancy companies latched on to quality training and intervention as main
services they can offer. This added significantly to the general awareness of quality management. The
development of International Quality Assurance Management System Standards in the 1980s also acted as a
catalyst in many countries, setting off joint management and quality thinking. The Japanese rapidly went
beyond quality in production, recognizing the importance of quality in management. They devised several
strategies that formed the basis of much of todays international efforts.
These are summarized below:
i)
ii)
iii)
iv)

Senior managers should personally take charge of quality management implementation

Personnel from all levels and functions of an organization should undergo training in quality
management.
Quality improvement should be continuous
The workforce should participate in quality improvement Culture is the key to understanding and
implementing the lessons preached by both Deming and Juran. Deming appreciated that no matter
how powerful the tool of mathematical statistics might be it would be ineffective unless used in the
correct cultural context. This combination of culture and measurement eventually evolved into
what is now labeled Total Quality Management.

In Total Quality Management everyone in the organization is involved in developing an improvement and
prevention orientation which focuses upon the customer through teamwork. The 1990s has seen quality
management become the international management philosophy continuing into the new millennium today.
Let us now try to understand what total quality management quality actually is.

5.TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM) is an enhancement to the traditional way of doing business.

Total - Made up of the whole

Quality - Degree of Excellence a Product or Service provides.
Management - Art of handling, controlling, directing etc.
TQM is the application of quantitative methods and human resources to improve all the processes within an
Organization and exceed CUSTOMER NEEDS now and in the future.
Total quality Management is defined as both as philosophy and a set of guiding principles that represent the
foundation of a continuously improving organization.
Basic Approach
TQM requires six basic concepts:
1. A commitment and involved management to provide long-term top-to-bottom organizational support.
2. an unwavering focuses on the customer, both internally and externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production process.
5. Treating suppliers as partners.
6. Establish performance measures such as uptime, percent nonconforming, absenteeism and customer
satisfaction should be determined for the process. Quantitative data are necessary to measure the continuous
quality improvement activity.
6. QUALITY DEFINITION
According to Deming, Quality may be defined as an excellent product or services that fulfills or exceeds our
expectations.
Quality can be quantified as follows
Q=P/E
where,
Q = Quality
P = Performance
E = Expectation

6.1 QUALITY AWARENESS

An organization will not begin the transformation to TQM until it is aware that the quality of the product or
service must be improved. Awareness comes about when an organization loses market share or realizes that
quality and productivity go hand-in-hand. Its also occurs if TQM is mandated TQM is better way to run a
business and compete in domestic and world markets.

7. DIMENSIONS OF QUALITY
Performance: Primary product characteristics, such as the brightness of the picture.
Features: Secondary characteristics, added features, such as remote control.
Conformance: Meeting specifications or industry standards, workmanship.
Reliability: Consistency of performance over time, average time for the unit to fail.
Durability: Useful life includes repair.
Service: Resolution of problems and complaint, ease of repair
Reputation: Human-to-human interface, such as the courtesy of the dealer.
Aesthetics: Sensory characteristics, such as exterior finish.
Response: Past performance and other intangibles, such as being ranked first.
Therefore, quality products can be determined by using a few of the dimensions of quality.

MANUFACTURINGINDUSTRIES
Product
features
Performance
Reliability
Durability
Ease of use
Serviceability
Aesthetic
Availability
Reputation

7.1 NEW AND OLD CULTURES:

SERVICE INDUSTRIES
Accuracy
Timeliness
Completeness
Friendliness
Courtesy
Anticipating customer needs
Knowledge of server
Aesthetic
Reputation

QUALITY ELEMENT

PREVIOUS STATE

Definition

Product oriented

Customer oriented

Second to service and

cost
Short term

First among equals of cost

Service.
Long term

Emphasis

Detection

prevention

Errors

Operations

System

Quality control

Everyone

Managers

Teams

Price

Lifecycle costs, partnership

Priorities
Decisions

Responsibilit
y
Problem solving
Procurement
Managers role

TQM

Plan, assign ,control and

enforce

Delegate, coach, facilitate and

mentor

8. GURUS OF TQM
Shewhart

Control chart theory

PDCA Cycle

Deming

Statistical Process Control

Juran

Concepts of Shewhart
Return on Investment

Feiganbaum

Total Quality Control

Management involvement
Employee involvement
Companywide quality control

Ishikawa

Cause and Effect diagram

Quality circle concept

Crosby

Quality is Free
Conformance to requirement

Taguchi

Loss function concept

Design of Experiments

9. BARRIERS TO TQM IMPLEMENTATION

Many organization especially small ones with a niche are comfortable with their current state. They are
satisfied with the amount of work being performed, the profits realized, and the perception that the
Customers are satisfied. Organizations with this culture will see little need for TQM until they begin to lose
market share. Once an organization embarks on TQM, there will be obstacles to its success implementation
The barriers to TQM Implementation were
1) Lack of Management Commitment: In order for any organizational effort to succeed, there must be a
substantial management commitment of management time and organizational resources. The purpose
must be clearly and continuously communicated to all personnel. Management must consistently apply
the principles of TQM.
2) Inability to change Organizational culture: Changing organizations culture is difficult and will require
as much as five years. Management must understand and utilize the basic concepts of change. They
are:
a) People change when they want to and to meet their own needs.
b) Never expect anyone to engage in behavior that serves the organizations values unless
adequate reason has been given.
c) For change to be accepted, people must be moved from a state of fear to trust.
3) Improper planning: All constituents of the organization must be involved in the development of the
implementation plan and any modifications that occur as the plan evolves.
4) Lack of continuous training and education: Training and education is an ongoing process for everyone
in the organization. Needs must be determined and a plan developed to achieve those needs. Training
and education are most effective when senior management conducts the training on the principles of
TQM.
5) Incompatible organizational structure and isolated individuals and departments: differences between
departments and individuals can create implementation problems. The use of multifunctional teams
will help to break down long-standing barriers.
6) Ineffective measurement techniques and lack of access to data and results: Key characteristics of the
organization should be measured so that effective decisions can be made.
7) Paying inadequate attention to internal and external customer: organizations need to understand the
changing needs and expectations of their customers. Effective feedback mechanisms that provide data
for decision making are necessary for this understanding.
8) Inadequate use of empowerment and teamwork: Teams need to have the proper training and, at least
in the beginning, a facilitator, whenever possible, the teams recommendation should be followed.
Individuals should be empowered to make decisions that affect the efficiency of their process or the
customer satisfaction.
9) Failure to continually improve: It is tempting to sit back and rest on laurels. However, a lack of
continuous improvement of the processes, product, and/ or service will even leave the leader of the
pack in the dust.

10. BENEFITS TO TQM

The advantages of total quality management (TQM) include:

Cost reduction. When applied consistently over time, TQM can reduce costs throughout an
organization, especially in the areas of scrap, rework, field service, and warranty cost reduction. Since these
cost reductions flow straight through to bottom-line profits without any additional costs being incurred, there
can be a startling increase in profitability.

Customer satisfaction. Since the company has better products and services, and its interactions with
customers are relatively error-free, there should be fewer customer complaints. Fewer complaints may also
mean that the resources devoted to customer service can be reduced. A higher level of customer satisfaction
may also lead to increased market share, as existing customers act on the company's behalf to bring in more
customers.

Defect reduction. TQM has a strong emphasis on improving quality within a process, rather than
inspecting quality into a process. This not only reduces the time needed to fix errors, but makes it less
necessary to employ a team of quality assurance personnel.

Morale. The ongoing and proven success of TQM, and in particular the participation of employees in
that success can lead to a noticeable improvement in employee morale, which in turn reduces employee
turnover, and therefore reduces the cost of hiring and training new employees.
However, TQM also requires a significant training period for those employees involved in it. Since the training
can take people away from their regular work, this can actually have a negative short-term effect on costs.
Also, since TQM tends to result in a continuing series of incremental changes, it can generate an adverse
reaction from those employees who prefer the current system, or who feel that they may lose their jobs
because of it.
TQM works best in an environment where it is strongly supported by management, it is implemented by
employee teams, and there is a continual focus on process improvement that prevents errors from occurring.
11. OBJECTIVES OF TQM
Process improvement
Defect prevention
Priority of effort
Developing cause-effect relationships
Measuring system capacity
Developing improvement checklist and check forms
Helping teams make better decisions
Developing operational definitions
Separating trivial from significant needs
Observing behavior changes over a period of time
12.

PRINCIPLES AND PHILOSOPHIES OF QUALITY MANAGEMENT

Overview of the contributions of Deming, Juran Crosby, Masaaki Imai, Feigenbaum, Ishikawa, Taguchi
techniques introduction, loss function, parameter and tolerance design, signal to noise ratio. Concepts of
Quality circle and Japanese 5S principles .

The future thrust of quality movement in India would be based on:

1. Application Research (Industry and Academics)
2. Experience Sharing
3. ISO certificates
4. Environmental protection, safety and consumer protection for quality enhancement.
Contribution of W. Edwards Deming
Deming 14 principles
1. Create and publish the aims and purposes of the organization.
2. Learn the new philosophy.
3. Understand the purpose of inspection.
4. Stop awarding business based on price alone.
5. Improve constantly and forever.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear, create trust and create a climate for innovation.
9. Optimize the efforts of teams, groups and staff areas.
10. Eliminate exhortations for the work force.
11. (a) Eliminate numerical quotas for the work force.
(b) Eliminate Management by Objective.
12. Remove barriers that rob people of pride of workmanship.
13. Encourage education and self-improvement of everyone.
14. Take action to accomplish the transformation
Demings cycle or PDCA cycle

P PLAN (Process the improvement)

D DO (Implement the plan)
C CHECK (See how closely result meets goals)
A ACT (Use the improved process as standard practice
Joseph M Juran Contribution

Jurans Quality Trilogy

Quality Planning

Identify who are the customers.

Determine the needs of those customers.
Translate those needs into our
language.
Develop a product that can respond to those needs.
Optimize the product features so as to meet our needs and
customer needs.

Quality improvement

Develop a process which is able to produce the

product. Optimize the process.

Quality control

Prove that the process can produce the product under

operating conditions with minimal inspection.
Transfer the process to operations.

Jurans 10 steps for quality improvement

According to him, Quality means Fitness for use
1. Build awareness for the need and opportunity for improvement.
2. Set goals for improvement.
3. Organize people to reach the goals.
4. Provide training throughout the organization.
5. Carry out projects to solve the problems.
6. Report progress.
7. Give recognition.
8. Communicate results.
9. Keep score.
10. Maintain momentum by making annual improvement part of the regular system.
Contribution to Philip B Crosby
Worked to significantly advance the cause of the world wide quality movement through his many personal
contributions over the past four decades. He developed four absolutes of quality management.
Quality means conformance to requirements, not goodness.
Quality is achieved by prevention, not appraisal.
Quality has a performance standard of Zero Defects. Not acceptable quality levels.

Quality is measured by the Price of nonconformance, not indexes.

Masaki Imai
Founder and President of Kaizen Institute threw the word Kaizen.
Kaizen
Kaizen refers to continuous or On-going improvement in Japanese, is an inseparable aspect of Total Quality
Management is required in all activities of the organization.
Kaizen has to basically do with small, step-by-step continuous improvement, smaller and continuous
improvements are more realizable, predictable, controllable, and acceptable.
Kaizen philosophy believes that people at all levels, including the lowermost levels in the organizational
hierarchy, can contribute to improvements, possible because Kaizen asks for only small improvements.
To survive in an increasingly competitive world, top management must adopt a just-in-time(JIT) approach
and drive change down the hierarchy without yielding to resistance.
The key ideas associated with JIT were developed at the Toyota Motor Company under the leadership of
founder EIJI TOYOTO whose father had founded the successful Toyota Spinning and weaving company.
JIT is the management philosophy that strives to eliminate sources of manufacturing waste producing the
right part in the right place at the right time.
Elements of JIT
Stabilize and level the MPS with uniform plant loading create a uniform load on all work centers through
constant daily production and mixed model assembly.
1. Reduce or eliminate set up times. Aim for single digit set up times less than 10 minutes or one touch
setup. Done through better planning, process, redesign, and product redesign.
2. Reduce lot sizes. Reducing set up times allows economic production of smaller lots, close cooperation
with suppliers is necessary to achieve reduction.
3. Reduce lead times. Production lead times can be reduced by moving work stations closer together,
applying group technology and cellular manufacturing concepts, reduce queue length and improving
the coordination and cooperation between successive processes. Delivery lead times can be reduced
through close cooperation with suppliers, possibly by inducing suppliers to be located closer to the
factory.
4. Preventive maintenance. Use machine and worker idle time to maintain equipment and prevent
breakdown.
5. Flexible work force. Workers should be trained to operate several machines, to perform maintenance
tasks, and to perform quality inspections.
6. Require supplier quality assurance and implement a zero defect quality program.
7. Small lots (single unit) conveyance. Use a control system such as Kanban system (or other signaling
system) to convey parts between work stations in smaller quantities. In its larger sense, JIT with MRP
system is used to convey the parts between workstations.
Reasons for a move from batch mode to Just-in-time (JIT)
Batch production system is the most inefficient way to make products.
Difficult to meet customer requirements, which come in different orders, like different volumes in different
time frames and soon.
The batch system derives from the agricultural mentality. The batch system, purchase material and produce
in big batches and there are many processes. At every process, accumulate the batch and at the end
accumulate the finished product in a batch, which is stored in the warehouse.

This kind of production system is based on market forecast, is good when there is demand.
End up with huge inventory of unsold products and excess capacity, and then borrow money to carry that
inventory. By that time, acquired too many people for every process.
Contribution of Armand V Feigenbaum
Defined as quality as Total quality control is an effective system for integrating the quality development,
quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable
production and service at the most economical levels which allow full customer satisfaction.
Industrial cycle
Ongoing sequence to bring products or services to the customer including the activities like marketing,
purchasing, design, engineering, manufacturing, production, inspection , packaging, delivery, installation and
service.
Maintained that responsibility of quality was not the sole preserve of the quality professional but was the
responsibility of all.
The fundamental concept is quality is everybodys job Management and Operators cannot totally delegate
authority and responsibility and still expect a satisfactory product.
The two basic responsibilities are:
1. Provide quality assurance for the business products.
2. Assist in assuring optimum quality costs for those products.

Hidden Plant
One of the more well known concepts developed by Feigenbaum was that of the hidden plant. He
maintained that within every company or factory a proportion of the capacity was wasted by not getting it
right first time.
Quality control
Emphasizing that human relation was a basic issue in Quality control activities, and such things as statistics
and preventive measures were only a part of the whole equation.
Quality is what suits the customer at the right price for both the provider and customer and a common
sense approach to quality standards, conformance, corrective actions, and planning for improvement is the
control required to gain that quality.
By stimulating and encouraging everyone in an organization to realize their responsibilities and potential
effects on the quality of a product or service.
Crucial elements of Total Quality
The elements of total quality to enable a totally customer focus (internal and external)
1. Quality is the customers perception of what quality is, not what company think it is.
2. Quality and cost are the same no different.
3. Quality is an individual and team commitment.
4. Quality and innovation are interrelated and mutually beneficial.
5. Managing Quality is managing the business.

6. Quality is a principal.
7. Quality is not a temporary or quick fix but a continuous process of improvement.
8. Productivity gained by cost effective demonstrably beneficial Quality investment.
9. Implementing Quality by encompassing suppliers and customers in the system.
Contribution of Kaoru Ishikawa
Biggest contribution is in simplifying statistical techniques for quality control in an industry.
Ishikawa sees the Cause-and-effect diagram or Ishikawa Diagram, like other tools, as a device to assist groups
or quality circles in quality improvement.
Other than technical contributions to quality, Ishikawa is associated with the Company-wide Quality control
(CWQC) movement as implies that quality does not only mean the quality of product, but also of after sales
service, quality of management, the company itself and the human life.
The outcomes of such an approach are(Company-Wide Quality benefits):
o Product quality is improved and becomes uniform. Defects are reduced.
o Reliability of goods is improved.
o Cost is reduced.
o Quantity of production is increased.
o Wasteful work and rework are reduced.
o Technique is established and improved.
o Expenses for inspection and testing are reduced.
o Contracts between vendor and vendee are rationalized.
o The sales market is enlarged.
o Better relationships are established between departments.
o False data and reports are reduced.
o Discussions are carried out more freely and democratically.
o Meetings are operated more smoothly.
o Repairs and installation of equipment and facilities are done more rationally.
o Human relations are improved.
Is a main ingredient of Ishikawas company-wide quality control consisting typically 5-10 personnel who meet
at regular interval led by supervisor or team leader, aim to contribute to and improve processes and activities,
build up job satisfaction and company loyalty and utilize existing and hidden resource potential?
Ishikawa s PDCA Model
Plan
Determine goals and targets
Determine methods of reaching goals.
Do
Engage in education and training
Implement work
Check
Check the effects of implementation

Act
Take appropriate action.
5-S: HOUSEKEEPING

5-S MEANS EVERYTHING IN ITS PLACE

SEIRI

CLEARING

SEITON

ARRANGING

SEISO

SWEEPING
SEIKETSU

CLEANLINESS

SHITSUKE

DICIPLINE

There can be no TQM without 5-S.

A dirty factory cannot produce quality products.
Clutter hides problems. A neat workplace promotes easy discovery of abnormalities.

5-S CONTRIBUTES TO

SAFETY
QUALITY
PRODUCTIVITY

5-S FACILITATES

VISUAL CONTROL

13. TQM processes - understanding processes and methods for process improvement
Understanding processes is essential before attempt is made to improve them. This is a central aspect to Total
Quality Management, and also to more modern quality and process improvement interpretations and models
such as Sigma. More about Total Quality Management process and process improvement methods.

quality process improvement tools and techniques

A wide range of tools and techniques is used for identifying, measuring, prioritizing and improving processes
which are critical to quality. Again these ideas and methods feature prominently in modern interpretations of
Total Quality Management methodology, such as Six Sigma. These process improvement tools and techniques
include: DRIVE (Define, Review, Identify, Verify, Execute), process mapping, flow-charting, force field
analysis, cause and effect, brainstorming, Pareto analysis, Statistical Process Control (SPC), Control charts,
bar charts, 'dot plot' and tally charts, check-sheets, scatter diagrams, matrix analysis, histograms. More about
tools and techniques for process evaluation and improvement.

developing people and teams

People are a fundamental component within any successfully developing organization. Take away the people
and the organization is nothing. Take away the people's motivation, commitment and ability to work together
in well-organised teams, and again, the organization is nothing. Conversely, inspire the people to work well,
creatively, productively, and the organization can fly. Logically therefore, the development and proper
utilization of people are vital to the success of all quality management initiatives. There are a wide range of
models that are used in selecting, assessing, training and developing and motivating people, among which are
classical models such as Belbin, Myers Briggs Type Indicator (see the personality models section), Bruce
Tuckman's 'Forming, Storming, Norming, Performing' model, John Adair's Action Centred Leadership
model.... More about people and culture within quality management.

Quality management systems

A 'Total Quality organization' generally benefits from having an effective Quality Management System
(QMS). A Quality Management System is typically defined as: "A set of co-ordinated activities to direct and
control an organization in order to continually improve the effectiveness and efficiency of its performance."
Customer expectations inevitably drive and define 'performance' criteria and standards. Therefore Quality
Management Systems focus on customer expectations and ongoing review and improvement.... More about
Quality Management Systems, what they are, and how to set up a good QMS.

Performance measurement and management

There are many ways to measure organizational performance other than financial output or profit. Modern
measurement focuses on the essential activities, resources and other factors - many less intangible than
traditional indicators - that impact on final outputs. These include modern methods such as Balanced
Scorecard... More about performance measurement, and cost of quality.
Practical Approach

deeplythinking.wordpress.com

Since the 1980s, several important quality management systems, or programs, such as ISO 9000, TQM, SixSigma program, Reengineering, and Toyota production system (or lean production), has been launched. Most
of these qualities essential have been extensively accepted by industries around the world. All the firms
anticipate good results from the implementation of these quality programs.
Todays consumers claim and expect high quality of product. Business organizations that do not work towards
achieving good quality risk their survival in the market in the long run. World-class organizations such as,
General Electric, Motorola, Toyota, Amul its attribute their success to having one of the best quality
management programs in the world.
General Electric
Armand Feigenbaum has joined General Electric since 1944. He used the statistical techniques to improve the
product quality while he was working in the jet engine factory. But Feigenbaum also used the concept of costof-quality and adopted a user-based approach to quality. He devised the concept of Total Quality Control, later
known as Total Quality Management (TQM).
He thought that this approach requires the management and employees to have an understanding of what
quality means and its relation to the companys benefits. He emphasized that quality assurance cannot be
achieved by the control just on the production process. Thus he propounded the concept of Total Quality
Control in 1956. (Corporation, 2012)
Based on the corporate philosophy of 'customer first' and 'quality first' since its founding, Toyota Motor Co.,
Ltd. won the Deming Application Prize in 1965 and the Japan Quality Control Award in 1970, following the
introduction of statistical quality control (SQC) in 1949, and has conducted Total Quality Management
(TQM) based on the unchanging principles of 'customer first', Kaizen (continuous improvement), and 'total
participation'. As a result, the basic concepts of TQM and problem solving as well as Kaizen (continuous
improvement) through creative innovation spread throughout the company and took root, contributing to
higher product quality and work quality at all levels and ranks and improving the vitality of individuals and
organizations.

Amul
The enthused and dedicated workforce of AMUL- who are committed to produce wholesome and safe foods
of excellent quality to remain market leader through the use of quality management systems, state-of-arttechnology, innovation and eco-friendly operations to achieve satisfaction of customers and betterment of milk
producers.
The beginning of Total Quality Management (TQM) way back in 1994 was to work with the well
known quality management initiatives which had proven to be successful elsewhere to create a
culture of transparency, openness and leadership in the organization. Realizing that with
emerging competition, doing business would become more exciting yet extremely competitive
which would require at a time not only a whole set of new skills and competencies but quick
flexibility to change without much pressure or turbulence. As a very unique measure Amul
extended all the TQM initiatives to its business partners, whether it was the former producer in
the village or a wholesale distributor in a metro town or its most sophisticated production unit.
From the strength of Total Quality Management initiative Amul went on to implement a Quality
Management System of International Standard. Amul has been the first dairy in India to get
accredited with certification of ISO 2200:2005 & ISO 9001 for its operations and plants. Further
Amul has set an example that village Dairy Co-operative Societies could also achieve this
milestone as these societies are accredited with ISO 9001:2000 a remarkable achievement in the
history of India.
Motorola
"Quality is a way of life in a business, not an advertising term."-- Robert W. Galvin, President,
Motorola Inc., October 1962, Quality Assurance magazine.
In 1980, Motorola took the first step by establishing the position of Corporate Quality Officer. In
1981, the Motorola Training and Education Center (MTEC) was established, providing employees
with instruction and coaching in quality process and participative management skills. In 1989,
MTEC became Motorola University, an institution that remains an integral component of the
Motorola culture today.
By the end of the 1980s, Motorola had grown into a worldwide supplier of cellular telephones.
But, the Japanese were still considered the undisputed leaders in the electronics market. A 1986
benchmarking study revealed that while we had made significant strides in quality, we needed to
prove that we could compete with the Japanese by creating products that were of equal and
higher quality. It was out of this realization that the Six Sigma quality initiative was born in 1987.
The investment in Six Sigma paid off, and in 1988, Motorola was the first large companywide
winner of the Malcolm Baldrige National Quality Award, awarded by the U.S. Congress to
recognize and inspire the pursuit of quality in American business. (Quality Magazine, 2003)

These companies have had a chief goal to achieve total consumer satisfaction. To this end, the
efforts of these organizations have included eliminating almost all defects from products,
processes, and transactions. Both companies consider quality to be the critical factor that has
resulted in significant increases in sales and market share, as well as cost savings in the range of

millions of dollars.
2.4

Check Your Progress

1. The basic principles for the Total Quality Management (TQM) philosophy of doing business
are
a. to satisfy the customer,
b. satisfy the supplier,
c. continuously improve the business processes.
d. all of above
2. The industrial revolution revolutionized the
a. manufacturing of products
b. service sector
c. art sector
d. none of he above
3. TQM refers to approach by management
a. an integrated
b. dedicated
c. centralized
decentralized
4. devised the concept of Total Quality Control
a. Armand Feigenbaum
b. P.V. Mehta
c. Demming
d. None of the above
5. ..took the first step by establishing the position of Corporate Quality Officer
a. AMUL
b. Motorola
c. General Motors

d. all of the above

6. PDCA cycle meansa. Plan-do-chat-Audit
b. plan-do-check-act
c. place-do-check-act
d. place-do-chalk-act
7. CWQC meansa. Company wide Quality control
b. company with quality control
c. counsel with quantity control
d. company wide quantity control
8. QMS stands for
a. Quality Make system
b. Quantity made system
c. Quality management System
d. none
2.5

Summary

2.6

Glossary

2.7

Answer to Check Your Progress

1-d; 2-a; 3-a; 4-a; 5-b; 6-b; 7-a; 8-c

2.8

References

2.9 Question