Total Quality Management

Submitted by,
R Madhu Mohan
Asst Professor / MBA

Brief Introduction to TQM

Total quality management is a managements approach towards the quality.
It can be in regard to products, customer satisfaction and employees satisfaction.
Continuously improving the quality of various products and services.
TQM works on one belief that mistakes can be avoided and defects can be

prevented.
The aim of TQM is to reduce variations in quality of the products as well as in the
working of whole organization.
TQM is now a days called as TPM (total productivity management) and an
organization needs to consider ABCD for the effective application
Where ABCD stands for,
A stands for accident cure.
B stands for breakdown.
C stands for cost reduction.
D stands for damage.

 TQM works effectively if the organization works in a family manner. Here

management is like a father, employees are the children and manager is like mother
and as father and mother takes care for their home collectively the same way ,
management and managers are supposed to take care for their organization with the
help of tool called TQM.
Total quality management is called Total because entire organization is involved,
Quality means degree of excellence. And Management in literal sense means
getting things done by others.
The concept of TQM talks about adopting the new policy, creating quality products,
eliminate defects, estimate for breakdown, accidents etc
Hence TQM should be purpose driven so first the whole organization should be
willing to accept the change then only TQM can actually affect the organization in a
positive way.

UNIT I
Total Quality Management
TQM is an enhancement to the traditional way of doing business.
Total
Made up of the whole
Quality
Degree of Excellence of 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.
DEFINING QUALITY :
Quality can be quantified as follows Q = P / E

where,
Q
P=
E=

=
Quality
Performance
Expectation

DIMENSIONS OF QUALITY :
------------------------------------------------------------------------------------------------------Dimension Meaning and Example
--------------------------------------------------------------------------------------------- --------- Performance Primary product characteristics, such as the brightness of the
picture.
Features
Secondary characteristics, added features, such as remote
control.
ConformanceMeeting specifications or industry standards, workmanship
Reliability
Consistency of performance over time, average time of the
unit to fail.
Durability
Usage life of a product, includes repair
Service
Resolution of problems and complaints, ease of repair
Response
Human to human interface, such as the courtesy of the
dealer.
Aesthetics
Sensory characteristics, such as exterior finish
Reputation Past performance and other intangibles, such as being ranked
first.
--------------------------------------------------------------------------------------------- ---------------------------------

QUALITY PLANNING

The following are the important steps for quality planning.

Performance

Establishing quality goals.

Identifying customers.
Cost
Discovering customer needs.
Service
Developing product features.
Developing process features.
Establishing process controls and transferring to operations.

Features

IMPORTANT POINTS TO BE NOTED WHILE QUALITY PLANNING :

Business, having larger market share and better quality, earn

returns much higher than their competitors.
Quality and Market share each has a strong separate
relationship to profitably.
Planning for product quality must be based on meeting
customer needs, not just meeting product specifications.
For same products. We need to plan for perfection. For other
products, we need to plan for value.

BASIC CONCEPTS OF TQM:

Top management commitment
Focus on the customer Both internal and external
Effective involvement and utilization of entire work force
Continuous improvement
Treating suppliers as partners
Establishing performance measures for the processes
DEFINITION:
TQM is the management approach of an organization, centered on
quality, based on me participation of all its members and aiming at longterm success through
customer satisfaction. and benefits to all members of me organization
and to society.- ISO
TQM is an integrated organizational approach in delighting customers
(both internal and external) by meeting their expectations on a
continuous basis through every one involved with the organization
working on continuous improvement in all products, services, and
processes along with proper problem solving methodology - INDIAN
STATISTICAL INSTITUTE ( ISI )

TQM Framework

BARRIERS TO TQM IMPLEMENTATION

Lack of management commitment
Lack of faith in and support to TQM activities among management

personnel
Failure to appreciate TQM as a cultural revolution. In other words,
inability to change organizational culture
Misunderstanding about the concept of TQM
Improper planning
Lack of employees commitment
Lack of effective communication
Lack of continuous training and education
Lack of interest or incompetence of leaders
Ineffective measurement techniques and lack of access to data and
results
Non-application of proper tools and techniques
Inadequate use of empowerment and team work

Benefits of TQM
Tangible Benefits

Improved product quality

Improved productivity
Reduced quality costs
Increased market and customers
Increased profitability
Reduced employee grievances

Intangible Benefits

Improved employee participation

Improved team work
Improved working relationships
Improved customer satisfaction
Improved communication
Enhancement of job interest
Enhanced problem solving capacity
Better company image

Demings Philosophy
W. Edwards Deming Ph.D.: 14 points of theory of

management to improve quality, productivity and

competitive position

- 11 -

UNIT II
LEADERSHIP
The process of influencing others towards the accomplishment of

goals. He triggers tile will to do, shows the direction and guide the
group members towards the accomplishment of goals.

CHARACTERISTICS OF QUALITY LEADERS

Customers first
Value people
Build supplier partnership
Empower people
Strive for excellence
Demonstrate involvement / commitment
Explain & deploy policy
Improve communication
Promote teamwork
Benchmark continuously
Establish system
Encourage collaboration

STRATEGIC PLANNING
It sets the long term direction of the organization in which it wants to
proceed in future. Can be defined "As the process of deciding on
objectives of the organization, on changes on this objective, on the
resource used to obtain these objectives and on the policies that are to
govern the acquisition use and disposition of these resources"

QUALITY STATEMENTS
VISION STATEMENT: It is a short declaration of what an organization

aspires to be tomorrow. It is an ideal state which may never be achieved.

MISSION STATEMENT: Describes the function of the organization. It

provides the clear statement of purpose for the employees, customers and
suppliers.
QUALITY POLICY STATEMENT: It is a guide for everyone in the

organization as to how they provide products and services to the customer.

Written by the CEO feedback from workforce and approved by quality
council.
Customer satisfaction:

The Customer is the King - Emphasized by Today's Buyers Market. TQM's

Purpose is meeting or exceeding customer expectations, so that the
customers are delighted. The customer satisfactions must be the primary
goal of any organization.

CUSTOMER SATISFACTION MODEL

Tebouls Model of customer satisfaction as shown in figure

From the above diagram it is understood that the company should strive
for increasing the intersection portion i.e. Customer Satisfaction.
TYPES OF CUSTOMERS
Internal Customer: The customer inside the company are called

internal customers
External Customers: An external customer is the one who used the
product or service or who purchase the products or service or who
influences the sale of the product or service.

THE CUSTOMERS ARE

The most important people in the business
Not dependent on the organization, but the organization depends on

them.
Not an interruption to work but are the purpose of it.
Doing a favor when they seek business and not vice-versa.
A part of business, not outsiders and they are life blood of the
business
People who come with their needs and jobs
Deserve the most courteous and attentive treatment.
CUSTOMER SUPPLY CHAIN

CUSTOMER FEEDBACK OR CUSTOMER COMPLAINT IS REQUIRED

To discover customer dissatisfaction
To identify customers needs
To discover relative priorities of quality
To compare performance with the competition
To determine opportunities, for improvement
STEPS TO SOLVE CUSTOMER COMPLAINTS
Complaints can be collected from all sources (letters, phone -calls,
meetings and verb inputs)
Develop procedures for complaint resolution, that include
empowering front-line personnel.
Work to identify process and material variations and then eliminate
the root cause.
Establish customer satisfaction measures and constantly monitor
them.
Communicate complaint information, as well as the result of all
investigation solution, to all people in the organization. .
Provide a monthly complaint report to the quality council for their
evaluation and needed, the assignment of process improvement
teams.

CUSTOMER RETENTION
More powerful and effective than customer satisfaction
It is the process of retaining the existing customer
Customer care can be defined as every activity which occurs
within the organization that ensures that the customer is not only
satisfied but also retained.

SIGNIFICANCE OF CUSTOMER RETENTION

60% of organizations future revenue will come from exiting
customers
2% increase in customer retention has 10% decrease in operating
cost.
96% of unhappy customers do not complain but 3 times likely to
convey to other customers about their bad experience.
91% of unhappy customers never purchase goods and services
from you.
It costs 5 times more to attract the customer than retaining the
existing customer.
Customer retention creates customer loyalty and moves
customer satisfaction to a next level called customer delight.

 EMPLOYEE INVOLVEMENT

It is the total involvement from every person at all levels in

the organization
ASPECTS OF EMPLOYEE INVOLVEMENT
Employee motivation
Employee Empowerment
Teams and Team work
Recognition and Reward Schemes
Performance Appraisal

1. EMPLOYEE MOTIVATION
It is the process of stimulating people or attempting to

influence other to do your will or accomplish desire goals

through the possibility of reward
Improves employee involvement
Reduces absenteeism and increases turn over
Promotes job satisfaction

PDSA CYCLE

It is also called as Deming Cycle or Deming Wheel. Developed

by Walter A. Shewart and popularized by Edward Deming
PLAN
Identify the problem, plan and opportunities
Observe and analyze
Isolate the real causes
Determine corrective actions
DO
Prepare
Apply
Check application
STUDY / CHECK
Check results
Compare with goals
ACT
Standardize and consolidate
Prepare next stage of planning

BENEFITS OF PDSA CYCLE

Daily routine management for the individual and or the team
Problem solving process
Project management
Continuous development
Vendor development
Human resource management
New product development
Process trials

5S HOUSE KEEPING
This is a house keeping technique used to establish and maintain a

productive and quality environment in an organization. This method is

invented in Japan which will give safer, more efficient and more productive
operation results in boosting of morale of workers, job involvement and
satisfaction and ownership of their responsibilities.
JAPANESE TERM

ENGLISH EQUIVALENT

SEIRI

Tidiness

SEITON

SEISO

SEIKETSU

SHISUKE

Orderliness

Cleanliness

Standardization

Discipline

MEANING
Cleaning Throw away all rubbish
unrelated materials in the work place

Arranging Set everything in proper

place for quick retrieval and storage

Sweeping Clean the work place, every

thing with out fail

Maintaining Cleanliness Standardizing

the way of maintaining cleanliness

Self Discipline Practice 5S daily.

Make it a way or life. This also means
commitment

KAIZEN

Kaizen is a Japanese word for the philosophy that defines

managements roles in continuously encouraging and

implementing small improvements involving everyone.
It focuses on simplification by breaking down complex progress
into their
sub processes and then improving them.
The Kaizen improvement focuses on the use of :
Value added and non value work activities.
Muda, which refers to the seven classes of waste overproduction, delay, transportation, processing, inventory, wasted
motion, and defective parts.
Principles of motion study and the use of cell technology.
Principles of materials handling and use of one piece flow.
Documentation of standard operating procedures.
The five Ss for workplace organization.
Visual management.
Just in time principles.
Poka Yoke.
Team dynamics.

SUPPLIER PARTNERSHIP
The suppliers should be treated as partners to achieve the same quality level
as attained within the organization.
The following forces need Supplier Partnership to improve quality, reduce
costs and increase market share.
Deming Philosophy (Demings 4th point)
Just-in-time
Continuous process improvement
ISO 9000
PARTNERING
Partnering is a relationship between two or more parties based upon trust,
dedication to common goals. The benefits of partnering are
Improved quality
Increased efficiency
Lower cost
Increased opportunity for innovation
Continuous improvement
The three key elements to a partnership relationship are
Long term commitment
Trust
Shared Vision

UNIT III
The Seven Traditional tools of Quality
1) PARETO DIAGRAM
2) FLOW DIAGRAM
3) CAUSE AND EFFECT DIAGRAM

STEPS IN CONSTRUCTING A CAUSE &

EFFECT DIAGRAM :
Define the problem or effect to be analyzed.
Form the team to perform the analysis. Often the team will uncover

potential causes through brainstorming.

Draw the effect box and the centerline.
Specify the major potential cause categories and join them as
boxes connected to the centerline.
Identify the possible causes and classify them into the categories
in step d. Create new categories, if necessary.
Rank order the causes to identify those that seem most likely to
impact the problem.
Take corrective action.

6) CONTROL CHARTS

A Sample Control Chart

7) SCATTER DIAGRAM
In scatter diagram, three types of co-relations exist.

Positive correlation.
Negative correlation.
No correlation.

Bench Marking
Benchmarking is a systematic method by which organization

can measure themselves against the best industry

practices.

Essence of BM is the process of borrowing ideas and

adapting them to gain competitive advantage.

Reasons for Bench Marking

To achieve Business & Competitive Objectives.
Goals & Objectives Based on External Environment.
Cost Efficient.
Continuous Improvement & New Development.

BENCHMARKING CONCEPT
What are others
performance levels?
How did they get there

What is our
performance level

Creative
Adaptation

Breakthrough
Performance

Bench Marking Process

Phases

S.no

Steps

Planning

Earmark what is to be Bench Marked ?

Identify the best competitor

3
Determine the data collection method and start
collecting data
Analysis

Determine the current performance GAP

Project future performance levels

32

Bench Marking Process

Phases

S.no

Integration

6
7

Steps
Communicate bench mark findings and gain
acceptance
Establish Functional Goals

Communicate Data
For analysis

Acceptance for
Analysis

Action
8

Develop Action Plans

Implement specific actions and monitor Progress

33

Bench Marking Process

Phases

S.no

Steps

Maturity

10

Recalibrate Benchmarks

11

Attain the Leadership position

12

Integrate Practice into the Process

34

Bench Marking
Template
Output, Results,
Success Factor
Benchmark
WHAT?

WHO /WHAT
is Best

T
H
E
M

DATA
COLLECTION

DATA
ANALYSIS

U
S

DATA
COLLECTION

How do
We do It ?

How Do
They do it ?
35

BENEFITS OF B M
Best Practices incorporated into the process
Motivation for creativity & innovation
Technological Breakthrough in ones industry
Better professional growth
Meet effectively customer requirements
Assist in attaining competitive position

36

FMEA ( Failure Mode Effective Analysis)

Introduction
Failure Mode Effect Analysis is an analytical technique that goes in for combining
Technology and Experience of people to identify foreseen failures in a product or
process and planning to eliminate the Failure.
Definition
FMEA is a group of activities to understand and evaluate potential failure of
product or process and its effects, and identify actions that eliminate or reduce the
potential failures.

Types of FMEA
Major Classification
Design FMEA
Process FMEA
Sub Classification
Equipment FMEA
Maintenance FMEA
Service FMEA
System FMEA

Failure Rate:
Products follow a pattern of failure.
There is no information about the reliability (i.e.

Failure) of the product.

Failure Rate is a constant is known period of failure
can be found out using Exponential Distribution
Rt = e t
Rt = Reliability of survival
Rt = e - t /
t = Time for operation without failure
= Failure rate = Mean time to
Failure

Problem
Failure Rate = .0002 per hour

What is the probability that it will survive

or reliable during the first 200 hours of

operations?
Solution Rt = e t
= e (200) (0.0002)
= 96.08 %

UNIT IV
QUALITY FUNCTION DEPLOYMENT
Quality Function Deployment is a planning tool used to fulfill

customer expectations.
Quality Function Deployment focuses on customer
expectations or requirements, often referred to as voice of the
customer.

QFD TEAM :
There are two types of teams namely
1. Team for designing a new product
2. Team for improving an existing product

BENEFITS OF QFD :
Improves Customer satisfaction
Creates focus on customer requirements
Uses competitive information effectively
Prioritizes resources
Identifies items that can be acted upon

Reduces Implementation Time

Decreases midstream design changes
Limits post introduction problems
Avoids future development redundancies

Promotes Team Work

Based on consensus
Creates communication
Identifies actions
Provides Documentation
Documents rationale for design
Adds structure to the information
Adapts to changes (a living document)

THE STEPS IN BUILDING A HOUSE OF QUALITY ARE :

List Customer Requirements (WHATs)
List Technical Descriptors (HOWs)
Develop a Relationship Matrix Between

WHATs and HOWs

Develop an Inter-relationship Matrix
Custo
mer
between HOWs
Requi
Competitive Assessments
reme
nts
Customer Competitive Assessments
(Voice
of the
Technical Competitive Assessments
custo
mer)
Develop Prioritized Customer
Requirements
Develop Prioritized Technical
Descriptors

Interrelations
hip
Between
Technical
Descriptors
Technical Descriptors
(Voice of the organization)

Relationship between
Requirements and
Descriptors

Prioritized
Technical Descriptors

Priorit
ized
Custo
mer
Requi
reme
nts

TAGUCHIS QUALITY LOSS FUNCTION

Taguchis Quality Loss Function concept combines cost, target and
variation in one metric with specifications being of secondary
importance.
Taguchi has defined quality as the loss imparted to society from

the time a product is shipped. Societal losses include failure to

meet customer requirements, failure to meet ideal performance
and harmful side effects.

CUSTOMERS PERCEIVE QUALITY AS MEETING THE TARGET

RATHER THAN JUST MEETING THE SPECIFICATIONS.
There are three common quality loss functions
1. Nominal - the - best.
2. Smaller - the - better.
3. Larger - the - better.

TOTAL PRODUCTIVE MAINTENANCE (TPM)

Total Productive Maintenance (TPM) is defined as keeping the

running plant and equipment at its highest productive level with

the co-operation of all areas of the organization.
Predictive and Preventive maintenance are essential to building a

foundation for a successful TPM environment. Predictive

Maintenance is the process of using data and statistical tools to
determine when a piece of equipment will fail. Preventive
Maintenance is the process of periodically performing activities
such as lubrication on the equipment to keep it running.

OBJECTIVES OF TPM :
1.
2.
3.
4.
5.

To
To
To
To
To

maintain and improve equipment capacity.

maintain equipment for life.
use support from all areas of the operation.
encourage input from all employees.
use teams for continuous improvement.

TPM PHILOSOPHY CONCEPT OF TPM :

Total Productive Maintenance (TPM) is an extension of the Total

Quality Management (TQM) philosophy to the maintenance function.

TPM has the following steps:

1. Management should learn the new philosophy of TPM.

2. Management should promote the new philosophy of TPM.
3. Training should be funded and developed for everyone in the
organization.
4. Areas of needed improvement should be identified.
Loss measurements to identify improvement needs are
Down time losses
Reduced speed losses
Poor quality losses
5. Performance goals should be formulated.
6. An implementation plan should be developed.
7. Autonomous worth groups should be established.

QUALITY COSTS
1. PREVENTION COST
Product / Service / Design Development.
Marketing / Customer / User.
Purchasing
Operations (Manufacturing or Service)
Quality Administration.
2. APPRAISAL COST
Purchasing Appraisal Costs.
Operations Appraisal Costs
External Appraisal Costs
Review of Test and Inspection Data
Miscellaneous Quality Evaluations

3. INTERNAL FAILURE COST

Product or Service Design Failure Costs (Internal)
Purchasing Failure Costs
Operations (Product or Service) Failure Costs
4. EXTERNAL FAILURE COST
Complaint Investigations of Customer or User Service
Returned Goods
Retrofit and Recall Costs
Warranty Claims
Liability Costs
Penalties
Customer or User Goodwill
Lost Sales

UNIT V
ISO 9000 STANDARDS
ISO 9001
Design, Development, Production, Installation & Servicing
ISO 9002

Production, Installation & Servicing

ISO 9003

Inspection & Testing

ISO 9004

Provides guidelines on the technical, administrative and

human factors affecting the product or services.

BENEFITS OF ISO 9000 STANDARDS :

Achievement of international standard of quality.
Value for money.
Customer satisfaction.
Higher productivity.
Increased profitability
Improved corporate image
Access to global market
Growth of the organization
Higher morale of employees

CLAUSES (ELEMENTS) OF ISO 9000 (During the year 2000)

Scope
Normative Reference
Terms and Definitions
Quality Management System (QMS)
General Requirements
Documentation
Management Responsibility
Management Commitment
Customer Focus
Quality Policy
Planning
Responsibility, Authority and Communication
Management Review
Resource Management
Provision of Resources
Human Resources
Infrastructure
Work Environment

 Product Realization
Planning of Product Realization
Customer related processes
Design and Development
Purchasing
Production and Service Provision
Control of Monitoring and Measuring devices

Monitoring and Measurement

General
Monitoring and Measurement
Control of Non-Conforming Product
Analysis of Data
Improvement

QUALITY AUDITING
The term Audit refers to a regular examination and checking of accounts or
financial records, settlement or adjustment of accounts.
It also refers to checking, inspection and examination of Production Processes.
PURPOSE OF QUALITY AUDIT :
To establish the adequacy of the system.
To determine the effectiveness of the system.
To afford opportunities for system analysis.
To help in problem solving.
To make decision making easier etc.
TYPES OF QUALITY AUDIT :
1.First Party Audit.
2.Second Party Audit.
3.Third Party Audit.
Quality audit can also be classified on the basis of the area taken into account
for the audit such as
System Audit.
Process Audit.
Product Audit.
Adequacy Audit.
Compliance Audit.

ISO 14000 ENVIRONMENTAL MANAGEMENT SYSTEM

The overall aim of the Environmental Management systems is to provide
protection to the environment and to prevent pollution.
REQUIREMENT OF ISO 14001
There are six elements
GENERAL REQUIREMENTS
EMS should include policy, planning implementation & operation,
checking & corrective action, management review.
ENVIRONMENTAL POLICY (Should be based on mission)
The policy must be relevant to the organizations nature.
Managements Commitment (for continual improvement &
preventing pollution).
Should be a framework (for Environmental objectives & Targets).
Must be Documented, Implemented, & Maintained.
PLANNING
Environmental Aspects
Legal & other Requirements
Objectives & Targets
Environmental Management Programs

 IMPLEMENTATION & OPERATION

Structure & Responsibility
Training, Awareness & Competency
Communication
EMS Documentation
Document Control
Operational Control
Emergency Preparedness & Response

CHECKING & CORRECTIVE ACTION

Monitoring & Measuring
Nonconformance & Corrective & Preventive action
Records
EMS Audit

MANAGENMENT REVIEW
Review of objectives & targets
Review of Environmental performance against legal & other requirement
Effectiveness of EMS elements
Evaluation of the continuation of the policy

BENEFITS OF ENVIRONMENTAL MANAGEMENT SYSTEM :

GLOBAL BENEFITS
Facilitate trade & remove trade barrier
Improve environmental performance of planet earth
Build consensus that there is a need for environmental management and a
common terminology for EMS
ORGANIZATIONAL BENEFITS
Assuring customers of a commitment to environmental management
Meeting customer requirement
Improve public relation
Increase investor satisfaction
Market share increase
Conserving input material & energy
Better industry/government relation
Low cost insurance, easy attainment of permits & authorization

THANK YOU