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INTRODUCTION TO TOTAL

QUALITY MANAGEMENT
Total Quality Management
PBA 103 - Total Quality Management

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PBA 103 - Total Quality Management

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Assessment
1. Project / Presentation 10%
2. Surprise tests (3) 10%
3. Open Book test 10%
4. Mid semester exam 15%
5. Attendance, class participation 5%
6. End term exam 50%
Total 100%

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What is TQM?
Total Quality Management (TQM) is an enhancement to the
traditional way of doing business. It is a proven technique to
guarantee survival in the global competition. Only by changing
the actions of the management, corporate culture an entire
organization can be transformed.

Analysing the three words, we have:


TotalMade up of the whole.
QualityDegree of excellence a product or service provides.
ManagementAct, art, or manner of handling, controlling,
directing, etc.

Thus, TQM is the art of managing the whole to achieve


excellence.

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Six Basic Concepts of TQM
1. A committed and involved management to provide long-term
top-to-bottom organizational support.
2. An unwavering focus on the customer, both internally and
externally.
3. Effective involvement and utilization of the entire workforce.
4. Continuous improvement of the business and production
process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.

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TQM Framework

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The comparison regarding benefits achieved
from TQM
Quality Element Previous State TQM
Definition Product Oriented Customer Oriented
Priorities Second to Service & Cost First among equals of
service and cost
Decisions Short-Term Long-Term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem Solving Managers Teams
Procurement Price Life-cycle costs, partnership

Managers Role Plan, Assign, Control & Delegate, Coach, Facilitate


Enforce & mentor

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Productivity Vs. Quality

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Gurus of TQM
For implementation of TQM movement, we need go through philosophies
of notable individuals in field of TQM. TQM current positioning have
contributed to modern setup of organization.

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What is Quality?
Q=P/E
Where P is Performance and E is Expectations

Q<1 Performance does not meet expectations

Q=1 Performance equals expectations

Q>1 performance is better than expectations

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The Dimensions of Quality
Performance: Primary product characteristics, such as the brightness of a
picture.
Features: Secondary characteristics, added features, such as a remote
control.
Conformance: Meeting specifications or industry standards, workmanship.
Reliability: Consistency of performance over time, average time for an unit to
fail.
Durability: Useful life, includes repair.
Service: Resolution of problems and complaints, ease of repair.
Response Human-to-human interface, such as the courtesy of a dealer.
Aesthetics: Sensory characteristics, such as exterior finish.
Reputation Past performance and other intangibles, such as being ranked
first.

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Benefits of TQM
Improved quality and productivity.
Better employee participation and teamwork.
Improvement in customer and employee satisfactions.
Increase in market share and profitability.
Improved communication.
TQM is a good investment according to study by
Hendricks and Singhai
They studied 600 organizations and showed that there is
strong linkage between TQM and financial performance.

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HISTORICAL REVIEW
Quality in articles and art & crafts produced by skilled craftsmen and
artisans from the B.C. era e.g. goldsmiths, silversmiths, blacksmiths,
potters etc
Artists & Artisans Guilds in the Middle ages spent years imparting quality
skills and the workmen had pride in making quality products.
Industrial Revolution brought factory manufacturing where articles were
mass-produced and each worker made only a part of the product and
they dont have idea about quality of the product .

In 1924, W.A. Shewart of Bell Telephone Labs developed a statistical chart


for the control of product variables the beginning of SQC and SPC.

In 1946, the American Society for Quality Control was formed.

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CONTINUES
In 1950, W. Edwards Deming, who learnt SQC from Shewart, taught SPC &
SQC to Japanese engineers and CEOs
In 1954,Joseph M. Juran taught Japanese managements their
responsibility to achieve quality .
In 1960, the first quality control circles were formed. SQC techniques
were being applied by Japanese workers.
1970s US managers were learning from Japan Quality implementation
miracles.
In 1980s TQM principles and methods became popular.(also in auto
industry)
In 1990s ,the ISO 9000 model became the world-wide standard for QMS.

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OBSTACLES OF IMPLEMENTATION TQM
There are lots of obstacles for implementation of TQM in an organization
because it depends upon physical, social, economic, technological or political.
These barriers determined by Robert J. Masters after extensive research are:
Lack of management commitment
Top management embrace quality improvement programs no matter how far
reaching the programs may appear the monetary implications therein.
Competition alone should not be considered as the single factor that
drives managers into implementing quality initiatives.

Inability to change organizational culture


In adequate cultural dynamism has made total quality implementation difficult
because most of the top level management of many organizations are rigid in
their ways of doing things.

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Improper planning
The absence of a sound strategy has often contributed to ineffective
quality improvement. There is need of developing the right attitude and
level of awareness is crucial to achieving success in a quality
improvement program.

Lack of continuous training & education


There is evidence that lack of understanding and proper training exists at
all levels of any organization, and that it is a large contributor to worker
resistance. TQM should provide comprehensive training, including
technical expertise, communication skills, small-team management,
problem-solving tools, and customer relations.

Incompatible Organizational Structure & isolated individuals &


Departments
There is need of co-ordination between departments and individuals, its
the longest internal barrier. The only way to resolve conflicts are
restructuring through proper segmentation such as Spartan Light Metal
products Inc. implemented

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Ineffective Management techniques & lack of access to Data &
Results
Data plays an important role in management decision making , it
needs to improve the effect of management ideas for design
effective processes. The processes are helpful through excessive
inspection, training & management encouragement.

Paying scarce attention to internal & external customers


Most companies dont involve quality in their strategic plan, little
attention is paid to TQM in terms of human and financial
resources. The company attention towards increasing product &
quality. TQM has been neglected as its implementation May not
necessarily bring gains to the organization in the short term.

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Inadequate use of empowerment and teamwork.
A key challenge in implementation of teams, especially self-
directed work. Team members should be trained enough in
problem solving, monitoring, and resolving conflicts. Norms
need to be established around the issues of leadership,
membership, and processes.

Failure to continually improve


There is need to explore problems; constantly improve the
system of production and service. There should be continual rise
in productivity and a decrease in costs.

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Benefits of TQM

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TQM Exemplary Organization
TQM is implemented in an organization in 1980s & there are multiple
roles implemented at different stages.

In 1981 Motorola launched improvement of quality with Zero defects


in everything we do. The company achieved Total customer
satisfaction. It would achieved through network of customer surveys,
field audit & customer feedback etc.

Motorola implemented Six Sigma & total cycle time to achieve 3.4
defects per million with more improved processes such as design,
administration, marketing & administration.

Finally the company launched Participated Management Program


PMP this would help to achieve specific aim, goals, new initiated &
problem solving also company devoted 40% of worker training.

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