The Philosophy of

Total Quality
Management

Prof.Vinesh Jain
IBS, Dehradun
 The Philosophy of TQM
W. Edwards Deming – Father of TQM

“What we need to do is learn to work

in the system by which I mean that
every body, every team, every
platform, every division, every
component is there not for individual
competitive profit or recognition but
for contribution to the system as a
whole on a win-win basis”
 The Philosophy of TQM
Customer Quality Measures
Feature – Based Measures (“have or have
not”)
Determined by design
Eg.diamond (shape : Marquise or round)
Performance Measures (“range of values”)
Conformance to design or ideal value
Eg. diamond (4Cs – Carat, Clarity, Color, Cut)
 The Philosophy of TQM
Different Views of Quality
Customer’s View (more subjective view)
Producer’s View (more objective view)
 The Philosophy of TQM
Different Views of Quality (contd.)
Customer’s View (more subjective view)
Quality of the design (look, feel and function)
Consider both feature and performance
measures to assess value
Value = Quality / Price (Determined by individual
customer)
 The Philosophy of TQM
Different Views of Quality (contd.)
Producer’s View (more objective view)
Conformance to requirements (term coined by
Philip Crosby)
e.g # of defects per million products is a measure of
conformance.
Cost of quality (prevention, appraisal, scrap
and warranty costs)
Prevention costs: training, writing quality procedures
Appraisal costs: inspecting and measuring product
characteristics
Scrap and rework costs: internal costs of defective
products
Warranty costs: external costs for product failures in
 The Philosophy of TQM
History of Quality Paradigms
Customer – craft quality paradigm
Mass production and inspection quality
paradigm
TQM or “Customer-Driven Quality” paradigm
 The Philosophy of TQM
History of Quality Paradigms (contd.)
Customer – craft quality paradigm
Design and build each product for a
particular customer
Producer knows the customer directly
 The Philosophy of TQM
History of Quality Paradigms (contd.)
Mass production and inspection quality
paradigm
Focus on designing and building products for
mass consumption
Push products on the customer (limit customer
choices)
Quality is maintained by inspecting and detecting
bad products
Major innovation to this paradigm : statistical
process control
 The Philosophy of TQM
History of Quality Paradigms (contd.)
TQM or “Customer-Driven Quality” paradigm
Potential customers determine what to design
and build
Higher quality obtained by focusing on
preventing problems and continuously
reducing variability in all organizational
processes.
 The Philosophy of TQM
The Quality Hierarchy (Evolution)
Incorporates QC/QA activities into
Prevention 4. Total Quality a company wide system aimed at
satisfying the customer. (Involves
Stop problems at Management all organizational functions)
source;
greater design
emphasis 3. Quality Planned and systematic actions to
(PROACTIVE) Assurance (QA) insure that products or services
conform to company requirements
(eg reliability analysis)

Operational techniques to make

2. Quality inspection more efficient and to
Control reduce the costs of quality .
Detection
(QC) (eg. SPC)
Finding and Fixing
Mistakes Inspect products with the
conformance of Quality Standards.
(REACTIVE)
1. Inspection
 The Philosophy of TQM
Definition of TQM
TQM is a management philosophy which seeks
to integrate all organizational functions
(marketing, finance, design, engineering,
production, customer services etc.) to focus
on meeting customer needs and
organizational objectives.
It views organizations as a collection of
processes. It maintains that organizations
must strive to continuously improve these
processes by incorporating the knowledge and
experiences of workers.
 The Philosophy of TQM
The goal of TQM is to deliver the
highest value for the customer at the
lowest cost, while achieving
sustained profit and economic
stability for the company.
 The Philosophy of TQM
Objective of TQM

“Do the right

things, right
the first time,
every time.”
 The Philosophy of TQM
Some Basic Tenets of TQM
The customer determines quality.
Improving quality requires the establishment
of effective quality metrics. We must speak
with data not just opinions.
People working within systems create
quality.
Quality is a moving target. It requires a
commitment toward sustained continuous
improvement.
Prevention not detection is the key to
producing high quality. We must design quality
into products and reduce variability.
 The Philosophy of TQM
Tools and Techniques of TQM
Kaizen
Quality Circles
Quality Improvement Teams
Total Productivity Management
 The Philosophy of TQM
Tools and Techniques of TQM
Kaizen
Continuous Improvement in process, skill sets,
systems, and operations.
Quality Circles
Group oriented suggestion system for making
improvements. QC is a small group that
voluntarily performs quality control activities
in the workplace.
Quality Improvement Teams
Improvement in Inter-Departmental
coordination.
 The Philosophy of TQM
Principles of TQM
Systematic Improvement
Customer Focused (to increase customer loyalty)
Continuous Improvement (for maintaining competitive
position in the market)
Problem Prevention
Universal responsibility
Designing Quality for products
 The Elements of TQM
Communication Communication

Recognition
C C
O
M
Training O
M
M M
U U
NI
C
Team Work NI
C
AT AT
IO IO
N Leadership N

Trust, Integrity &

Ethics
Communication
 The Philosophy of TQM
Division of Elements of TQM
Foundation
Ethics
Integrity
Trust
Building Bricks
Training
Teamwork
Leadership
Binding Mortar
Communication
 The Philosophy of TQM
Ethics
Discipline concerned with good and bad in any
situation.
Integrity
Implies honesty, morals, values, fairness and
adherence to the facts and sincerity.
Trust
By-product of integrity and ethical conduct.
 The Philosophy of TQM
Training
Employees require training on: interpersonal
skills, the ability to function within teams,
problem solving, decision making, job
management performance analysis and
improvement, business economics and
technical skills.
 The Philosophy of TQM
Teamwork
Quality Improvement Teams
Problem Solving Teams
Natural Work Teams
 The Philosophy of TQM
Leadership
The leader is required to provide an inspiring
vision, make strategic directions that are
understood by all and to instill values that
guide subordinates.
 The Philosophy of TQM
Communication
Communication means a common
understanding of ideas between the sender
and the receiver.
Ways of Communication in an Organization:
Downward Communication
Upward Communication
Sideways Communication
 The Philosophy of TQM
Recognition
It should be provided for both suggestions and
achievements for teams as well as individuals.
Employees strive to receive recognition for
themselves and their teams.
As a person is recognized, there can be huge
changes in:
Self-esteem
Productivity
Quality
Amount of effort put to a task at hand.
Ways of Recognition
 The Philosophy of TQM
Innovators of Modern Quality
Thinking
US Quality Innovators
Walter Shewhart (1920 – 1940s)
W.Edwards Deming (post WWII through 1980s)
Joseph M. Juran (consultant post WWII through
1980s)
Philip Crosby(1980s)
Armand Feigenbaum (1970s – 1980s)
Japanese Quality Innovators
Kaoru Ishikawa (post WWII through 1980s)
 The Philosophy of TQM
How BPR differs from TQM
The primary focus of both BPR and TQM is on
customers. Adequate response to the
changing needs of customers in a competitive
business environment is the key element of
success in both. Unlike TQM, BPR is not
explicit in highlighting the concept of internal
customers. The success of a reengineered
process, however, depends on internal
customer satisfaction.
 The Philosophy of TQM
How BPR differs from TQM (contd.)
Both BPR and TQM are process-oriented,
cross-functional concepts. BPR attempts to
bring about dramatic changes in existing
processes, the changes resulting from TQM
are not always so. When a process does not
perform satisfactorily, TQM applies different
simple but useful techniques like Pareto
analysis, Ishikawa cause and effect diagram,
control charts, etc. BPR on the other hand,
attempts to take drastic steps to improve the
process which is phenomenally different from
the earlier one.
 The Philosophy of TQM
How BPR differs from TQM (contd.)
Both BPR and TQM are process-oriented,
cross-functional concepts. BPR attempts to
bring about dramatic changes in existing
processes, the changes resulting from TQM
are not always so. When a process does not
perform satisfactorily, TQM applies different
simple but useful techniques like Pareto
analysis, Ishikawa cause and effect diagram,
control charts, etc. BPR on the other hand,
attempts to take drastic steps to improve the
process which is phenomenally different from
the earlier one.
The Philosophy of TQM

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