TQM

A modern management concept

 INTRODUCTION TO TQM

What is TQM?
TQM is the integration of all functions and processes within an
organization in order to achieve continuous improvement of the quality
of goods and services. The goal is customer satisfaction.

“ No doubt , humans are always deficient”

(Al-Quran)
 DIFINITION OF QUALITY

• The concept and vocabulary of quality are elusive.

Different people interpret quality differently. Few can
define quality in measurable terms that can be proved
operationalized. When asked what differentiates their
product or service;
The banker will answer” service”
The healthcare worker will answer “quality health care”
The hotel employee will answer “customer satisfaction”
The manufacturer will simply answer “quality product”
 TQM -Evolution

TQM- Introduction:

1. Customer oriented
2. Management philosophy & strategy
3. Centered on quality
4. Resulting in customer delight
 TQM -Evolution
TQM- Introduction:
Evolved in Japan by Japanese people after World
War II, with Edward Deming ( an American quality
expert).
After World War II, a need for quality was
greatly felt for unprecedented manufacturing
requirement and this lead to TQM.
 TQM -Evolution
“Quality” defined as per TQM-Gurus:

Juran : Fitness for use

As perceived by the customer ,

as well as by the supplier.

Quality does not mean an expensive product; on the

contrary , it is fitness for use of customer.
 TQM -Evolution
“Quality” defined as per ISO:
(International standardization organization – founded in 1946)

“The totality of features and characteristics of a product or

service, that bear on its ability to satisfy a given or implied
need.”

The standard definition is common for both products and services.

Chain Reaction: TQM -Evolution
Importance of quality can be easily understood by the chain reaction,
planned out in Japan in 1950.

Improve Quality

Cost decrease due to fewer defects, lesser rework, fewer delays

and better use of men, machine and material

Improved productivity

Capture market with better

quality and lower prices
Provide more jobs
Stay in business
 TQM -Evolution
Dimensions of Quality :
Quality has many dimensions. Dimensions are nothing but various
features of a product or service.
A) PRODUCT QUALITY
1) Functionality: Core features or characteristics of a product.
Def. by ISO:
A set of attributes that bears on the existence of a set of functions
and their specified properties.

Functions are those that satisfy stated or implied needs.

E.g.: a car seating capacity and its functions of acceleration, stopping etc
 Dimensions of Quality : TQM -Evolution
2) Reliability: It is measured by mean (average) time b/w failures.
Reliability is an attribute of quality and indicator of quality.
E.g.: A car should not break down frequently.

3) Usability: A product should be easily used, without the help of expert.

It can also be measured by the time taken by operator to use it with error-free
operations

4)Maintainability :
The ease with which a product is maintained in its original condition.
During usage or transit the product becomes defective. It should be repaired
back in its original condition in lowest cost within earliest possible time.
 Dimensions of Quality : TQM -Evolution
5)Efficiency : It is the ratio of output to input.
Difference of mileage of two cars of same brand.

6)Portability :
It is defined as an ability to be transferred from one environment to another.
A program purchased for one machine should be executable in another machine.
 TQM -Evolution
Dimensions of Quality :
Quality has many dimensions. Dimensions are nothing but various
features of a product or service.
B) SERVICE QUALITY
1) Quality of customer services: It is important in every business.
It includes the following but is not limited to:

2) How well the customer is received?

3) How well the implied requirement are elucidated?
4) How well the customer is treated/handled/satisfied?
 Dimensions of Quality : TQM -Evolution
2) Quality of service design: Since services are designed to order, it is
important that the service is designed as per the requirement of the specific
customer.
3) Quality of delivery: Quality of delivery is important in any sector.
Delivery with defects is No delivery.

Other additional attributes of quality are as follows:

a)Timeliness: No customer likes waiting. Delivery on schedule as per the

requirement of the customer is a must both in the product & service sector.
b)Aesthetics: Not only performance but appearance is important.
 Dimensions of Quality : TQM -Evolution
Other additional attributes of quality are as follows:

c) Regulatory req.: Stipulation coupled by the regulatory authority should

be fulfilled by the product or service .
d)Society req.: The product should full fill the stated and implied
requirements imposed by the society.

e) Conformance with standards: The product or service should conform

to the stated and implied requirements to customers and where applicable to
the national, international and industry standards.
 Quality Evolution phases: TQM -Evolution
Quality has been evolving for decades. The contribution of the active gurus are as follows:

1) Dr Walter A. Shewhart ( 1891- 1967) :

He advocated statistical quality control (SQC) and acceptable quality level (AQL). AQL is
the foundation of six sigma.

He also developed the plan, do , check , act (PDCA) cycle for continuous improvement.

He is also author of :
• Economical control of quality of manufactured products.
• Statistical method from the view point of quality control.
 Quality Evolution phases: TQM -Evolution
Quality has been evolving for decades. The contribution of the active gurus are as follows:

2) Deming W. Edwards ( 1900- 1993) :

He was an associate of Shewhart. He modified PDCA cycle to PDSA.

He advocated extensive use of stats and control charts and product improvement by
reducing variations in the process.
 Quality Evolution phases: TQM -Evolution
Quality has been evolving for decades. The contribution of the active gurus are as follows:

3) Joesph M.Juran ( 1904) :

Jurna joined western electric company and developed western electric statistical
quality control handbook. He identified fitness of quality and popularized the same.

Jurans fitness of quality postulates :

1. Quality of design – through market research , product and concept.

2. Quality of conformance- through management, manpower and technology.
3. Availability - through reliability ,maintainability and logistic support.
4. Full service – through promptness, competence and integrity.
 Quality Evolution phases: TQM -Evolution
Quality has been evolving for decades. The contribution of the active gurus are as follows:

4) Philip B. Crosby ( 1926) :

He gave four (4) absolutes of quality , which are very relevant to TQM.

1. Quality is conformance to requirements, nothing more or less and certainly not

goodness or elegance.
2. Quality has to be achieved by prevention and not by appraisals.
3. The performance standard must be zero defect and not something close to it.
4. The measurement of quality is the price of non-conformance.
 Quality Evolution phases: TQM -Evolution
Quality has been evolving for decades. The contribution of the active gurus are as follows:

5) Armand V. Feigenbaum :

He was the president of American society of quality control. He suggested the following
methodology for cycle time reduction.

1. Define process
2. List all activities
3. Flow chart the process
4. List the elapsed time for each activity
5. Identify non value adding tasks.
6. Eliminate all possible non value adding tasks.
 Quality Evolution phases: TQM -Evolution
Quality has been evolving for decades. The contribution of the active gurus are as follows:

6) Kaoru Ishikawa : ( 1915 – 1989)

He was the quality guru from Japan

and strongly advocated the use of
cause and effect diagrams ( fish bone)
for true representation of organizational
impact and procedures.
Basic Terms of TQM TQM -Evolution
Quality Control (QC):

It can be defined as :

The operational techniques and activities that are used to fulfill the requirements
for quality .

In simple terms, QC is inspection or appraisal of products and services to ensure that the
stated requirements are fulfilled.

QC is one of the activity of QA.

 Basic Terms of TQM TQM -Evolution
Quality Assurance (QA) : All the planned systematic activities implemented within the
quality system and demonstrated as need , to provide adequate confidence that an entity
will fulfill the requirement of quality. It requires the following:

a) Quality of design: How well the product or service has been

designed to meet requirement of the customer.

b) Quality of conformance: Consistency in delivering the designed product.

c) Quality of performance: Indicated the performance of the product.

d) Quality of service: Selling is not the end. Service quality provides

added value of the customer.
 Basic Terms of TQM TQM -Evolution
Quality planning (QP):

It refers to the activities that establish the objectives and requirements for quality. This
involves planning for the following with to product and service;

a) Quality objectives to be met

b) Specific QA/QC practices
c) Sequence of QA/QC activities
d) Resources needed

All of this planning is focused on 4 M`s :

e) Man
f) Machine
g) Material
h) Methods
 Basic Terms of TQM TQM -Evolution

Quality improvement :

The process of attaining unprecedented

level of performance,

significantly better

than the past level.

 Basic Terms of TQM TQM -Evolution
Strategic planning :

Strategic planning is important of any business and it involves making plans for the
following :

i. Business value
ii. Investment in machinery and equipment
iii. Manpower to be hired
iv. Budget
v. Product diversification
vi. Markets to be served
vii. Strategies for improving profits, e.t.c
 Basic Terms of TQM TQM -Evolution
Strategic planning :

o It is usually done annually.

o With formal structured patterns,

o Kept confidential and does not include quality planning

Malcolm Baldrige national quality award ( MBNQA) ; the quality award of USA – calls for
the integration of quality planning in strategic planning.

It should focus on the needs of the current and future customer and support the
strategic and business goals of the organization.
 Basic Terms of TQM TQM -Evolution
Quality Management (QM) :

According to ISO , QM comprises:

All activities of the overall management function that determine the quality policy,

objective and responsibilities and implement them by means such as quality planning,

quality control , quality assurance and quality improvement within the quality system .
 Basic Terms of TQM TQM -Evolution
Quality Management (QM) : Chronology of QM evolution

Inspection

QC Pre WWII
--------------------------------------------------------------------------------------------------------------

QA Post WW II

QM

TQM
 Basic Terms of TQM TQM -Evolution
Total Quality Management (TQM) :

 Feigenbaum coined the term “ Total Quality Control”.

 In Japan it was recognized as “ company wide quality control (CWQC)

 Later then in 1985 , Americans came up with the term TQM , representing
the Japanese way of quality management.
 The TQM Requirements:
1. Top management commitment and involvement.
2. An absolute focus on the customer both internally as
well as 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 of the processes.
 Productivity and TQM
• Traditional view:
– Quality cannot be improved without significant losses in productivity.

• TQM view:
– Improved quality leads to improved productivity.
 Difference: Traditional v/s TQM Approach
Quality Element Traditional Approach TQM Approach
Definition Product oriented Customer oriented
Decision Short term Long Term
Emphasis Detection Prevention
Working style Individual Cross functional
Errors Operations Systems
Responsibilities Quality Control Everyone
Problem solving Managers Teams
Philosophy Status quo Continual improvement
Approach towards problem Fire fighting Determining the root cause
solving
Manager’s role Plan, assign, control and Delegate, coach, facilitate
enforce
Procurement Focus on just price Focus on life cycle cost,
partnership
Relationship Transactional Collaborative / Partnership
 Obstacles to Implementing TQM
 Lack of a company-wide definition of quality.

 Lack of management commitment.

 Lack of a formalized strategic plan for change.

 Lack of a customer focus.

 Poor inter-organizational communication.

 Lack of continuous training and education.

 Obstacles to Implementing TQM
 Incompatible organizational structure and isolated individuals and
departments.

 Lack of real employee empowerment.

 Lack of employee trust in senior management.

 View of the quality program as a quick fix.

 Drive for short-term financial results.

 Failure to continually improve.

 Best Practices for Successful Implementation of TQM

1. Leadership.
2. Building Quality Culture.
3. Customer Satisfaction Management.
4. Developing high performing processes..
5. Building supplier partnership.
6. Continual improvement.
7. Finding root causes of the problems
 Total Quality Management

• TQM is the management process used to make continuous

improvements to all functions.

• TQM represents an ongoing, continuous commitment to

improvement.

• The foundation of total quality is a management philosophy

that supports meeting customer requirements through
continuous improvement.
Basics of TQM

Find out what is ;

 J.I.T. ( Just in time inventory)

 ISO 9000 standards

 Deming award