TOTAL QUALITY MANAGEMENT

H ISTORICAL R EVIEW

 The history of quality is as old as industry. In

olden days, The Kind Hamurabi of Babylon
introduced the concept of building quality by
declaring as follows.

 “… If the building falls into pieces and the owner

is killed, then the builder should also be
sentences to death. If the owner’s children are
killed, then the builders children should also be
sentenced to death”.
 H ISTORICAL R EVIEW

Walter. A. Shewart - Statistical chart To control the product variables.

1924
H.F. Dodge and H.G. Acceptance sampling 100% inspection.
Romig method
Americal society for Use of quality standards All types of production and service.
quality control (ASQ) -
1946
1950, w. Edwards A series of lectures on statistical methods to japanese engineers and
deming(father of total stressed that quality management should lie on the shoulders of
quality management) everybody in an organization.
Joseph M. Juran – 1954 Quality standards for the rest of world to follow.
Japanese guru genichi Theory of robust design, recommended identifying all factors
taguchi
Japanese guru kaoru Developed fish-bone diagram and quality circle
ishikawa
 W HAT I S TOTAL Q UALITY
M ANAGEMENT ?

 TOTAL – Made up of the whole

 QUALITY – Degree of excellence a product or

service provides

 MANAGEMENT – Act , Manner of handling (or) Art

 D EFINED AS BY ISO

 TQM is the control of all transformation process

of an organization to best satisfy customer needs
in the most economical manner
 E VOLUTION OF TQM
Statistical Quality Quality Assurance Total Quality
Criterion Inspection
Control (SQC) (QA) Management (TQM)
Objective Measurement of Control of processes Distribution of quality Continuous quality
specifications responsibility to improvement at every
functional areas level, at every place and
at every stage

Focus Uniform product Reduction in inspection Evaluation at all Customer (internal and
quality work stages external) satisfaction

Tools Gauges and Statistical quality control Quality planning Commitment,

measurement tools and techniques documentation and participation, motivation,
techniques quality systems education and training
organisational
development.

Responsibility for Inspection Production department All departments Top management

quality department leadership with everyone
in organization

Approach Inspection, Trouble shooting and Assuring to build Strategic management,

Sorting, controlling the quality quality by planning team involvement, and
grading programme design action research
and programme
control
 C HARACTERISTICS OF TQM

 Customer Oriented

 Long term commitment

 Teamwork

 Leadership and continuous involvement of Top

Management

 Continuous Improvement
M EANING OF TQM
 C ONCEPTS OF TQM

 Top Management Commitment

 Focus on the customer – Goal is to identify and meet
customer needs.
 Effective involvement and utilization of the entire work
force – Employees are expected to seek out, identify, and
correct quality problems.
 Continuous Improvement – A philosophy of never-
ending improvement.
 Treating suppliers as partners – Quality concepts must
extend to a company’s suppliers.
 Establishing performance measures for the processes
 Use of quality tools – Ongoing employee training in the
use of quality tools.
12 PRINCIPLES OF TQM
Leadership
Customer satisfaction
Understand and establish customer supplier chains
Do the right things
Do things right the first time
Measure for success.
Continuous improvement is the goal.
Management must lead.
Training is essential.
Communication is essential
Right attitude towards quality .
Teamwork
Q UALITY G URUS AND THEIR
PHILOSOPHIES
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
1. Create and Publish the aims and purposes of the
Organisation

 Create and publish to all employees a statement of the

aims and purposes of the company (or) other
organization.

 The management mush demonstrate constantly their

commitment to this statement. The statement is a
forever-changing document that requires input from
every one.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
2. Learn the New Philosophy

 The top management and everyone in the organisation

should learn the new philosophy.

 Customer satisfaction must be the number one priority,

because dissatisfied customers will not continue to
purchase nonconforming products and services. The
organization must concentrate on defect prevention
rather than defect detection. Everyone in the
organisation, including union, must be involved in the
quality journey
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
3. Understand the purpose of inspection
 The purpose of inspection is to improve the process and
reduce its cost. It should be understood by the
management.
 Most of the time mass inspection is costly and unreliable.
Wherever possible, it should be replaced by statistical
methods.
 Every effort should be made to reduce and then eliminate
acceptance sampling.
 Mass inspection is managing for failure and defect
prevention is managing for success.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
4. Stop awarding business based on Price alone
 The organization must stop awarding business based on
the low price, because price has no meaning without
quality.
 The goal is to have single suppliers for each item to
develop loyalty and trust and hence to provide improved
products and service.
 Purchasing agents and suppliers should be trained in
Statistical Process Control. They must follow the
materials throughout their life cycle in order to examine
how customer expectations are affected.
 Supplier should be given feed back regarding the
quality.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
5. Improve constantly and forever the system of
production and service.
 Management must take more responsibility to improve
the quality and productivity continually and permanently
and to reduce the cost.
 The focus should be on preventing errors before they
happen.
 Variation is expected, but it should be reduced by a
continual striving using control charts.
 Responsibilities should be assigned to teams to remove
the causes of problems and continually improve the process
 D EMING WHEEL FOR
CONTINUOUS IMPROVEMENT

Act Plan

Study Do
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
6. Institute Training

 Management must allocate resources to train

employees to perform their jobs in the best manner
possible.

 Each employee must be trained in statistical methods

and these methods should be used to monitor the need
for further training.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
7. Teach and Institute leadership

 Supervisory skills should be improved by giving training

in statistical methods and these 14 points should be
insisted.

 Instead of having negative and fault finding attitude,

supervisors should create a positive and supportive
atmosphere. It is the management’s responsibility to
teach and institute leadership quality in supervisors.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
8. Drive out fear, Create Trust and Create a Climate for
Innovation
 Fear is caused by a lack of job security, possible
physical dangers, performance appraisals, ignorance of
organizational goals, poor supervision and not
knowing job.
 Driving fear out of the workplace leads to success.
Management should provide adequate training, good
supervision, and proper tools to do the job as well as
to remove physical harms.
 When people are working without fear, trust is created
and they will work for the general good of the
organization. Hence, in this Climate, people will create
new ideas for improvement.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
9. Optimize the efforts of teams, groups and Staff areas.
 The efforts of teams, groups and staff areas should be optimized by the
management to achieve the aims and purposes of the organisation.
 Barriers exist internally among the levels of management, among
departments, within departments and among shifts. Externally,
barriers exist between the organisations and its customers and
suppliers.
 These barriers are existing because of poor communication, ignorance
of the organisations mission, competition, fear and personal grudges
(or) jealousies.
 To break down the barriers, the management should have a long-term
perspective. The attitudes should be changed. The communication
channels should be opened. The project teams should be organized.
The training in team work should be implemented. Multifunctional
teams which are used in concurrent engineering should be formed.
for Example: Quality circle A team of volunteer production employees
and their supervisors who meet regularly to solve quality problems.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
10 Eliminate slogans, exhortations and targets for the
workforce that ask for zero defects and new levels of
productivity

 Let people know exactly what you want – don't make

them guess. "Excellence in service" is short and
memorable, but what does it mean? How is it achieved?
The message is clearer in a slogan like "You can do better
if you try."

 Don't let words and nice-sounding phrases replace

effective leadership. Outline your expectations, and then
praise people face-to-face for doing good work.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
11. a. Eliminate numerical quotas for the work force
 Quotas and work standards focus on quantity rather than
quality. Management may encourage poor workmanship
in order to meet their quotas. Hence these quotas should
be replaced with statistical methods of process control.
Instead of quotas, management must learn and institute
methods for improvements.
11. b. Eliminate Management By objective (MBO)
 The management must learn the capabilities of the
processes and how to improve them instead of
management by objective. Internal goals set by
management without a proper method cannot be
achieved. Management by numerical goal is an attempt to
manage without knowledge of what to do.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
12. Permit pride in workmanship
 When workers are proud of their work, they will grow to the
fullest extent of their job. Restoring pride will require a long
term commitment by management. By restoring pride, everyone
in organization will work whole heartedly for the common good
cause.
 Remove barriers that rob working people of their right to pride
in workmanship. The barriers are given below.
 (a) workers not knowing how to interpret organisation’s mission.
 (b) Workers being blamed for system problems
 (c) Poor designs leading to the production of ‘junk’
 (d) Inadequate training being provided.
 (e) Punitive supervision
 (f) Inadequate (or) ineffective equipment provided for performing
the required work.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
13. Encourage education and self-improvement for
everyone
 Since the organisation requirements change
continuously to meet changing environment,
everyone should be trained.
 A long – term commitment to continuously train and
educate people must be made by management.
 A vigorous program of education and encouragement
for self improvement should be instituted by the
management.
 An organisation not only needs good people but also
people who improve with education.
 D EMING TQM PRINCIPLES
( OR ) D EMING P HILOSOPHY
14. Responsibility of management to accomplish the
transformation

 Management should have responsibility to always

improve quality and productivity by using proceeding
13 principles. It should create a corporate structure to
implement the philosophy.

 A cultural change is required to change the previous

‘usual business’ attitude. Management must be
committed, involved and accessible for the
organisation to succeed in implementing the new
philosophy. It should take action to accomplish the
transformation.
 J URAN T RILOGY

 According to Juran, the definition of quality has

two aspects from the customer’s perspective:

 Quality is
 1. A greater number of features that meet
customer needs

 2. Fewer defects
 J URAN T RILOGY

 To attain quality you must begin by establishing

the vision, policies and goals of the organization.
Converting these goals into results is done
through three managerial processes called the
JURAN TRILOGY.

1. Quality Planning

2. Quality Control

3. Quality Improvement
 J URAN T RILOGY
1.Q UALITY P LANNING
“Quality does not happen by accident, it must be
planned.”
 The structured process for designing products
and services that meet new breakthrough goals
and ensure that customer needs are met.
STEPS in the quality planning process...
1. Establish the project
2. Identify the customers
3. Discover the customer needs
4. Develop the product
5. Develop the process
6. Develop the controls and transfer to operations
 J URAN T RILOGY
2. Q UALITY C ONTROL
“maintain the status quo”
 Quality control can also be described as “a
process for meeting the established goals by
evaluating and comparing actual performance
and planned performance, and taking action on
the difference”.
STEPS in the quality control process..
1. Choose control subject
2. Establish Measurement
3. Establish standards of Performance
4. Measure Actual Performance
5. Compare to Standards (interpret the difference)
6. Take action on the difference
 J URAN T RILOGY
3.Q UALITY I MPROVEMENT
“All improvement takes place project by project
 The process for creating breakthrough levels of
performance by eliminating wastes and defects
to reduce the cost of poor quality
STEPS in the quality control process..
1. Prove the need for improvement
2. Identify the improvement projects
3. Establish project improvement teams
4. Provide the project teams with resources,
training,and motivation to:
 Diagnose the causes
 Stimulate the remedies
 Establish controls to hold the gains
T HE Q UALITY P HILOSOPHY
 I MPLEMENTATION OF TQM

 The TQM implementation process starts with senior

management, particularly CEO’s commitment.
Leadership is essential for all phases of
implementation process and particularly at the
beginning. Indifference and each of involvement by
senior management are the important reasons for the
failure of TQM.
 Senior management has to be educated in TQM
concepts. Also, the managers should visit successful
TQM organisations, read selected articles and books,
attend seminars and conferences.
 An implementation plan should be developed. Timing
of the implementation process is very much
important.
 I MPLEMENTATION OF TQM

 Formation of quality council to develop core values, a

vision statement, mission statement and a quality
policy statement with input from all departments.
 The active involvement of middle managers and first –
line supervisors is essential to the success of the TQM
effort. All other managers should undergo specific
training.
 Action plan (road Map) is to be prepared. Managers
should involve union leaders by sharing with them the
implementation plans for TQM.
 Communication is essential throughout the
implementation stage to create TQM awareness,
interest, desire and action.
 I MPLEMENTATION OF TQM

 Everyone needs to be trained in quality awareness and

problem solving.

 Customer, employee and supplier surveys must be

conducted to benchmark the attitudes of these three
stakeholders to provide ideas for quality improvement
projects.

 Provide proper try to all.

 W HAT IS Q UALITY
C OUNCIL ?
 The quality council includes CEO and Senior managers of the
functional areas -research, manufacturing, finance, sales,
marketing etc., and one coordinator and a union
representative.
 Duties- To develop the Quality statements e.g. Vision, Mission,
Quality policy statements, Core values etc.
 To develop strategic long-term plans and annual quality
improvement program.
 Make a quality training program.
 Monitor the costs of poor quality.
 Determine the performance measures for the organisation
 Always find projects that improve the processes and produce
customer satisfaction.
 Establish work-group teams and measure their progress.
 Establish and review the recognition and reward system for the
TQM system
 Q UALITY STATEMENTS

 Vision statement – a short declaration of what

the organization hopes to be tomorrow.
 Mission statement – a statement of purpose,
who we are, who are our customers, what we do,
and how we do it?
 Quality policy – is a guide for everyone in the
organization ,how they should provide products
and services to the customers.
 S TRATEGIC PLANNING

Customer needs

 This Strategic planning sets the long–term

Customer Positioning
direction of the organisation in which it wants to
proceed in future
Predict the Future
Example: Types of products to be offered.
Gap Analysis

Closing the Gap

Alignment

Implementation
 S EVEN STEPS TO STRATEGIC
PLANNING

1. Customer needs
 Identification of customers and their needs.
 The organisation must seek their requirements,
expectations and assess future trends before
developing a strategic plan.
 S EVEN STEPS TO STRATEGIC
PLANNING

2. Customer position
 This second step requires the planner to
determine its positioning with regards to its
customers.
 Various alternatives such as whether the
organisation should give up, maintain or expand
Market position should be considered. In order
to become successful, the organisation should
concentrate and consolidate its position in its
area of excellence
 S EVEN STEPS TO STRATEGIC
PLANNING

3. Predict the future

 The strategic planners should predict future
conditions which will affect their product (or)
service.
 The organisations should foresee the changing
technology to continuously improve the quality
of their product. Because the rate of change is
continuously increasing. By using the
demographics, economical forecasts and
technical assessments (or) projections, the
strategic planners can predict the future.
 S EVEN STEPS TO STRATEGIC
PLANNING

4. Gap Analysis
 Gap analysis is nothing but analysis and
identifying the gaps between the current state
and future state of the organisation.
 This concept is also known as value stream
mapping. For identifying the gaps, an analysis of
the core values and concepts is an excellent
technique for pinpointing gaps.
 S EVEN STEPS TO STRATEGIC
PLANNING

5. Closing the Gap

 The strategic planning should be such way to
close the gap by establishing goals and
responsibilities.
 All stakeholders should be involved in the
development of the strategic planning. This
process is also termed as process improvement.
 S EVEN STEPS TO STRATEGIC
PLANNING

6. Alignment of Strategic Planning

 The strategic planning should be aligned with the
mission statement, vision statement, core values
and concepts of the organisation.
 The strategic planning will not be successful
without his alignment.
 Organisation should embrace quality as an
essential ingredient in their vision, mission and
objectives.
 S EVEN STEPS TO STRATEGIC
PLANNING

7. Implementation
 Resources must be allocated for implementation
of strategic planning.
 Collection of data, design of changes,
overcoming resistance to change and monitoring
activity to ensure the progress are
implementation process of strategic planning.
 B ARRIERS IN I MPLEMENTING
TQM

 Lack of understanding of TQM concept.

 Absence of visible support from senior &top
Management.
 Fear of change .
 Many layers of existing organization structure.
 Poor internal communication.
 Heavy work loads.
 Nature of organization.
 Lack of adequate Education &Training.
 Limited resources.
 Irregularity of the Meetings.
 Delay in implementation of Recommendation.
 Measurement difficulties
 WHY TQM EFFORTS
FAIL?
 Companies look at TQM as another business change
that must be implemented due to market pressure
without really changing the values of their
organization.
 The view that the responsibility for quality and
elimination of waste lies with employees other than
top management. It is a “let the workers do it”
mentality.
 Over- or under-reliance on statistical process control
(SPC) methods. SPC is not a substitute for continuous
improvement, teamwork, and a change in the
organization’s belief system. However, SPC is a
necessary tool for identifying quality problems.
 Lack of a genuine quality culture
S OME OF THE Q C TOOLS FOR
ANALYSIS
 T HE D EMING P RIZE

 The Deming Prize is a Japanese award given to

companies to recognize their efforts in quality
improvement
 The Japanese considered him such an important
quality guru that they named the quality award after
him.
 The award has been given by the Union of Japanese
Scientists and Engineers (JUSE) since 1951.
Competition for the Deming Prize was opened to
foreign companies in 1984.

 In 1989 Florida Power & Light was the first U.S.

company to receive the award.
T HANK YOU
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