TOTAL

QUALITY

MANAGEMENT (TQM)
 INTRODUCTION
• Quality is the totality of features and
characteristics of a product or service that bear on
its ability to satisfy stated or implied needs. A
quality product is not necessarily a good product.

• In fact all products have quality, though the level

of quality may be very low in some products and
very high in others.

• It is not always true that a product with high

quality will also be costly.
 COST OF QUALITY (COQ)
• Prevention Cost: These are costs associated with
reducing the potential for defective parts or
services. For example training and quality
improvement.

• Appraisal Cost: These are costs related to

evaluating products, processes, parts and
services. For example testing, inspection and
laboratories operations.
 CONTINUES……….
• Internal failure Cost: These are costs resulting
from production of defective parts or services
before delivery to customers. For example
rework, downtime and scraps.

• External failure Cost: These are costs that occurs

after delivery of the defective product or service
to the customer in the market. For example
rework, returned goods, liabilities, lost goodwill
and cost to the society.
 INTERNATIONAL QUALITY
STANDARDS
• Quality is so important globally that the world is
uniting around a single quality standard.

• International quality standards are moderated by

the International Standards Organisation (ISO).
The most known set of standards are ISO 9000.

• To do business globally it is critical to be listed in

the ISO directory.
 TOTAL QUALITY MGT (TQM)
• TQM refers to the quality emphasis that
encompasses the entire organisation from
supplier to customer so that it excels in all
aspects of the product and services that are
important to customers.

• Hence, it stresses a commitment by

management to have a continuing companywide
drive towards excellence in all aspects of the
product.
CONTRIBUTORS ON TQM
 CONCEPTS FOR EFFECTIVE
TQM
• Continuous improvement
• Six sigma
• Employees empowerment
• Benchmarking
• Just In Time (JIT)
• Taguchi concept
• Knowledge on TQM tools
 CONTINUOUS IMPROVEMENT
• TQM requires a never-ending process of
continuous improvement that covers people,
equipment, suppliers, materials and
procedures.

• The basis of the philosophy is that every aspect

of an operation can be improved. The end goal
is perfection, which is never achieved but
always sought.
 SIX SIGMA
• Describes a process, product or services with
an extremely high capability (99.9997%).

• Is a program designed to reduce defects to

help lower costs, save time and improve
customer satisfaction.
 EMPLOYEES EMPOWERMENT
• Employee empowerment means involving
employees in every step of the production process
and solve problems in quality cycles.

• It involves enlargement of employee jobs so that the

added responsibility and authority is moved to the
lowest level possible in the organisation.

• Quality cycle is a group of employees meeting

regularly with a facilitator to solve work-related
problems in their working areas.
 BENCHMARKING
• Is the process of comparing one's business processes
and performance metrics to industry bests or best
practices from other industries. Dimensions
measured are quality, time and cost.

• The steps for developing benchmarks start with

determination of what to benchmark, forming a
benchmark team, identification of benchmarking
partners, collection and analysis of benchmarking
information and taking actions to match or exceed
the benchmark.
 JUST IN TIME (JIT)
• Is a system aiming at continuous improvement
and problem solving through delivering inputs
needed to produce what is needed and deliver
product just as they are needed in time.

• JIT is related to quality in three ways:

1. Cuts the cost of quality
2. Improves quality
3. Less inventory
 TAGUCHI CONCEPT
• Most quality problems are the result of poor
product and process design.

• Taguchi has provided three concepts aimed at

improving both product and process quality.

• The concepts include QUALITY ROBUST, QUALITY

LOSS FUNCTION and TARGET ORIENTED QUALITY
 BUSINESS PROCESS RE-
ENGINEERING (BPR)
• BRP is a business management strategy focusing
on the analysis and design of workflows and
processes within an organization.

• BPR aims at helping organizations fundamentally

rethink how they do their work in order to
dramatically improve customer service, cut
operational costs and become world-class
competitors