Quality Management

Total Quality Management

TQM
Meaning & Definition : TQM is an organised scientific approach
towards continuous improvement of quality involving everyone in the
org. covering every function aimed towards total customer satisfaction.
I t involves ongoing cycle of Measurement Evaluation planning
and Improvement.
Goal: To attain excellence in every facet of the organisaiton.
Why TQM:
1. Organisations are dynamic entities. They undergo changes in structure,
culture, values continuously.
2. Expectations from organisations vary from time to time and customer to
customer.

TQM - Defined

Total = Quality involves everyone and all activities in the

company.

Quality = Conformance to Requirements (Meeting Customer

Requirements)

Management = Quality can and must be managed

TQM - System

focuses on meeting owners/customers needs by providing quality

services at a cost that provides value to the owners/customers

is driven by the quest for continuous improvement in all operations

recognizes that everyone in the organization has owners/customers

who are either internal or external

views an organization as an internal system with a common aim

rather than as individual departments acting to maximize their own
performances

focuses on the way tasks are accomplished rather than simply what
tasks are accomplished

Evolution of TQM Four Stages

Quality Management
Stages

Areas of Focus

Scope

Inspection

Detection

Error Detection
Sorting, grading, reblending
Rectification
Decision about salvage and
acceptance

Quality Control

Maintaining Status
quo

Quality standards
Use of statistical methods
Process performance
Product testing

Quality Assurance

Prevention

Total Quality
Management

Quality as a
Strategy

Quality system (ISO 9000)

Quality costing
Quality planning and policies
Problem solving
Quality design
Quality Strategy
Customers, employees and
suppliers involvement
Involve all operations
Empowerment and teamwork

Seven Phases in the Development of TQM

TQM Principles

Customer focused organisation

Leadership

Involvement of people

Process approach

Systems approach to management

Continuous improvement

Factual approach to decision making

Mutually beneficial supplier relationship

TQM Key Elements

Five Pillars of TQM

1.

Product

2.

Process

3.

System

4.

People

5.

Leadership

8 Building Blocks of TQM

1. Act in line with customer
needs

2. Develop an internal customer

supplier relationship

3. Measure value added at each 4. Do it right the first time

processes/ function
5. Work under 7 zeros

6. Focus on prevention

7. Involve all departments /

levels

8. Satisfies all the parties at the

same time

Traditional Organisation Vs
TQM Organisation

Company-driven
Short-term orientation
Opinion-driven
Tolerance of waste
Fire fighting
Inspection
Fortressed departments
Top-down hierarchy

Blame
Isolation
Management

Customer driven
Long-term orientation
Data-driven
Elimination of waste
Continuous improvement
Prevention
Cross-functional teams
High employee participation
Problem-solving
Systems Thinking
Leadership

Prerequisites for TQM

Management must establish TQM as an objective and accept

responsibility

Top management must be able to overcome the obstacles

Participation by all

Dedicated resources

Management commitment

Requirement of cultural change

Continuous training

TQM Implementation
1.

2.

3.

4.

5.

Train top management on TQM principles.

Assess the current: Culture, customer satisfaction, quality
management system
Top management determines the core values and principles to
be used and communicate them.
Develop TQM master plan based on steps 1, 2, 3.
Identify and prioritize customer needs and determine products
or service to meet those needs.

TQM Implementation
6.

7.

8.

9.

10.

11.

Determine the critical processes to produce those products or

services.
Create process improvement teams.
Managers should support effort by planning, training, time.... to
the teams.
Integrate changes for improvement in daily process management
and standardizations take place.
Evaluate progress against plan (step 8) and adjust as needed.
Constant employee awareness and feedback on status are
provided and a reward/ recognition process is established.

TQM Implementation Common Barriers

Lack of systems

Lack of Procedures

Inappropriate Organisation culture

Lack of organisation design

Lack of Management commitment

Benefits of TQM

Creates a good corporate culture

Better reviews from customer

Improved employee performance

Encourages a strategic approach to management

Provides high return on investment through improving

efficiency.

Works equally well for service and manufacturing sectors.

Allows organizations to take advantage of developments that
enable managing operations as cross-functional processes.