Total Quality
Management
By
A.SAINATH
Total Quality Management
What is Quality?
Dictionary has many definitions: “Essential characteristic,”
“Superior,” etc.
Some definitions that have gained wide acceptance in various
organizations: “Quality is customer satisfaction,” “Quality
is Fitness for Use.”
“The quality of a product or service is
a customer’s perception of the degree to
which the product or service meets his
or her expectations.”
The American National Standards Institute (ANSI) and the
American Society for Quality (ASQ) define quality as:
“The totality of features and characteristics of a product or
service that bears on its ability to satisfy given needs.”
Some Dimensions of Product
Quality
Performance
Features
Reliability
Serviceability
Durability
Appearance
Customer service
Safety
Determinants of Quality
Quality of design
Quality capability of production processes
Quality of conformance
Quality of customer service
Organizational quality culture
TQM: A “Buzzword” Losing
Popularity
For many companies, the term TQM is
associated with corporate programs (mid 1980s
~ early 1990s) aimed at implementing employee
teams and statistical process control.
Unfortunately, many companies were dissatisfied
with the perceived results of these programs,
concluding TQM does not work.
Question: Why were they dissatisfied?
Were they justified?
Quadir Mohiuddin Total Quality Management
Why Quality?
Reasons for quality becoming a cardinal priority for most
organizations:
Competition – Today’s market demand high quality products
at low cost. Having `high quality’ reputation is not enough!
Internal cost of maintaining the reputation should be less.
Changing customer – The new customer is not only
commanding priority based on volume but is more demanding
about the “quality system.”
Changing product mix – The shift from low volume, high
price to high volume, low price have resulted in a need to
reduce the internal cost of poor quality.
Why Quality?
Product complexity – As systems have become more complex,
the reliability requirements for suppliers of components have
become more stringent.
Higher levels of customer satisfaction – Higher customers
expectations are getting spawned by increasing competition.
Relatively simpler approaches to quality viz. product inspection
for quality control and incorporation of internal cost of poor
quality into the selling price, might not work for today’s
complex market environment.
TQM
Total - Made up of the whole
Quality - degree of excellence a product or
service provides
Management - Act, art or manner of
planning, controlling, directing,….
Therefore, TQM is the art of managing
the whole to achieve excellence.
Quadir Mohiuddin
Total Quality Management
Quality perspectives
Everyone defines Quality based on their own perspective of it.
Typical responses about the definition of quality would
include:
1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service
Total Quality Management
A set of principles and practices
whose core ideas include
understanding customer needs,
doing things right the first
time,and striving for continuous
improvement.
Quadir Mohiuddin
Total Quality Management
What does TQM mean?
Total Quality Management means that the
organization's culture is defined by and
supports the constant attainment of
customer satisfaction through an
integrated system of tools, techniques,
and training. This involves the continuous
improvement of organizational processes,
resulting in high quality products and
services.
Quadir Mohiuddin Total Quality Management
What’s the goal of TQM?
“Do the right things right the first
time, every time.”
Quadir Mohiuddin
Total Quality Management
Another way to put it
At it’s simplest, TQM is all managers
leading and facilitating all contributors in
everyone’s two main objectives:
(1) total client satisfaction through
quality products and services; and
(2) continuous improvements to
processes, systems, people, suppliers,
partners, products, and services.
Quadir Mohiuddin Total Quality Management
Productivity and TQM
Traditional view:
Quality cannot be improved without significant
losses in productivity.
TQM view:
Improved quality leads to improved
productivity.
Quadir Mohiuddin Total Quality Management
Basic Tenets of TQM
1. The customer makes the ultimate
determination of quality.
2. Top Management must provide leadership
and support for all quality initiatives.
3. Preventing variability is the key to producing
high quality.
4. Quality goals are a moving target, thereby
requiring a commitment toward continuous
improvement.
5. Improving quality requires the establishment
of effective metrics. We must speak with data
and facts not just opinions.
Quadir Mohiuddin
Total Quality Management
The three aspects of TQM
Tools, techniques, and training in
Counting their use for analyzing,
understanding, and solving quality
problems
Customers Quality for the customer as a
driving force and central concern.
Culture Shared values and beliefs,
expressed by leaders, that define
and support quality.
Quadir Mohiuddin
Total Quality Management
Total Quality Management
and Continuous Improvement
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.
Quadir Mohiuddin Total Quality Management
Continuous Improvement versus
Traditional Approach
Traditional Approach Continuous
Continuous Improvement
Improvement
Market-share focus
Customer focus
Cross-functional teams
Individuals
Focus on “what” and “how”
Focus on ‘who” and Long-term focus
“why” Continuous improvement
Short-term focus Process improvement focus
Status quo focus Incremental improvements
Product focus Problem solving
Innovation
Fire fighting
Quadir Mohiuddin
Total Quality Management
Elements of TQM
Top management commitment and
involvement
Customer involvement
Design products for quality
Design production processes for quality
Control production processes for quality
Develop supplier partnerships
Customer service, distribution and
installation
Building teams of empowered
employees
Benchmarking and continuous
improvement
Quality Throughout
“A Customer’s impression of quality begins with
the initial contact with the company and
continues through the life of the product.”
Customers look to the total package - sales, service
during the sale, packaging, deliver, and service after
the sale.
Quality extends to how the receptionist answers the
phone, how managers treat subordinates, how
courteous sales and repair people are, and how the
product is serviced after the sale.
“All departments of the company must strive to
improve the quality of their operations.”
Quadir Mohiuddin
Total Quality Management
Value-based Approach
Manufacturing Service Dimensions
Dimensions Reliability
Performance Responsiveness
Features Assurance
Reliability Empathy
Conformance Tangibles
Durability
Serviceability
Aesthetics
Perceived quality
Quadir Mohiuddin
Total Quality Management
The TQM System
Objective Continuous
Improvement
Principles Customer Process Total
Focus Improvement Involvement
Leadership
Elements Education and Training Supportive structure
Communications Reward and recognition
Measurement
Quadir Mohiuddin Total Quality Management
History of quality management
…To know the future, know the past!
Before Industrial Revolution, skilled craftsmen served both as
manufacturers and inspectors, building quality into their
products through their considerable pride in their
workmanship.
Industrial Revolution changed this basic concept to
interchangeable parts. Likes of Thomas Jefferson and F. W.
Taylor (“scientific management” fame) emphasized on
production efficiency and decomposed jobs into smaller work
tasks. Holistic nature of manufacturing rejected!
History of quality management
Statistical approaches to quality control started at Western
Electric with the separation of inspection division. Pioneers
like Walter Shewhart, George Edwards, W. Edwards Deming
and Joseph M. Juran were all employees of Western Electric.
After World War II, under General MacArthur's Japan
rebuilding plan, Deming and Juran went to Japan.
Deming and Juran introduced statistical quality control theory
to Japanese industry.
The difference between approaches to quality in USA and
Japan: Deming and Juran were able to convince the top
managers the importance of quality.
History of quality management
Next 20 odd years, when top managers in USA focused on
marketing, production quantity and financial performance,
Japanese managers improved quality at an unprecedented rate.
Market started preferring Japanese products and American
companies suffered immensely.
America woke up to the quality revolution in early 1980s.
Ford Motor Company consulted Dr. Deming to help transform
its operations.
(By then, 80-year-old Deming was virtually unknown in USA.
Whereas Japanese government had instituted The Deming
Prize for Quality in 1950.)
History of quality management
Managers started to realize that “quality of management” is
more important than “management of quality.” Birth of the
term Total Quality Management (TQM).
TQM – Integration of quality principles into organization’s
management systems.
Early 1990s: Quality management principles started finding
their way in service industry. FedEx, The Ritz-Carton Hotel
Company were the quality leaders.
TQM recognized worldwide: Countries like Korea, India,
Spain and Brazil are mounting efforts to increase quality
awareness.
Evolution of TQM philosophies
The Deming Philosophy
Definition of quality, “A product or a service possesses quality if
it helps somebody and enjoys a good and sustainable market.”
Improve quality Decrease cost because Productivity improves
of less rework, fewer
mistakes.
Long-term Stay in Capture the market
competitive business with better quality
strength and reduced cost.
The Deming philosophy
14 points for management:
1. Create and publish to all employees a statement of the aims
and purposes of the company. The management must
demonstrate their commitment to this statement.
2. Learn the new philosophy.
3 Understand the purpose of inspection – to reduce the cost
and improve the processes.
4. End the practice of awarding business on the basis of price
tag alone.
5. Improve constantly and forever the system of production and
service.
The Deming philosophy
6. Institute training
7. Teach and institute leadership.
8. Drive out fear. Create an environment of innovation.
9. Optimize the team efforts towards the aims and purposes of
the company.
10. Eliminate exhortations for the workforce.
11. Eliminate numerical quotas for production.
12. Remove the barriers that rob pride of workmanship.
13. Encourage learning and self-improvement.
14. Take action to accomplish the transformation.
The Deming philosophy
“A System of Profound Knowledge”
1. Appreciation for a system - A system is a set of functions or
activities within an organization that work together to
achieve organizational goals. Management’s job is to
optimize the system. (not parts of system, but the whole!).
System requires co-operation.
2. Psychology – The designers and implementers of decisions
are people. Hence understanding their psychology is
important.
The Deming philosophy
3. Understanding process variation – A production process
contains many sources of variation. Reduction in variation
improves quality. Two types of variations- common causes
and special causes. Focus on the special causes. Common
causes can be reduced only by change of technology.
4. Theory of knowledge – Management decisions should be
driven by facts, data and justifiable theories. Don’t follow
the managements fads!
The Juran philosophy
Pursue quality on two levels:
1. The mission of the firm as a whole is to achieve high
product quality.
2. The mission of each individual department is to achieve
high production quality.
Quality should be talked about in a language senior
management understands: money (cost of poor quality).
At operational level, focus should be on conformance to
specifications through elimination of defects- use of
statistical methods.
The Juran philosophy
Quality Trilogy –
1. Quality planning: Process of preparing to meet quality
goals. Involves understanding customer needs and
developing product features.
2. Quality control: Process of meeting quality goals during
operations. Control parameters. Measuring the deviation and
taking action.
3. Quality improvement: Process for breaking through to
unprecedented levels of performance. Identify areas of
improvement and get the right people to bring about the
change.
The Crosby philosophy
Absolute’s of Management
Quality means conformance to requirements not elegance.
There is no such thing as quality problem.
There is no such thing as economics of quality: it is always
cheaper to do the job right the first time.
The only performance measurement is the cost of quality: the
cost of non-conformance.
Basic Elements of Improvement
Determination (commitment by the top management)
Education (of the employees towards Zero Defects (ZD))
Implementation (of the organizational processes towards ZD)
QUALITY GURU
A guru, by definition, is a good person, a
wise person and a teacher. A quality guru
should be all of these, plus have a concept
and approach to quality within business that
has made a major and lasting impact. The
gurus mentioned in this section have done,
and continue to do, that, in some cases,
even after their death.
The gurus
There have been three groups of gurus since the
1940’s:
Early 1950’s Americans who took the
messages of quality to Japan
Late 1950’s Japanese who developed new
concepts in response to the Americans
1970’s-1980’s Western gurus who
followed the Japanese industrial success
Quality Gurus
W. Edwards Deming
Assisted Japan in improving productivity and
quality
Philip B. Crosby
In Quality Is Free contends that a company
should have the goal of zero defects
Armand V. Feigenbaum
Developed the concept of total quality control
Gurus (continued)
Kaoru Ishikawa
Developed the concept of quality circles and
use of fishbone diagrams
Joseph M. Juran
Wrote Quality Control Handbook
Genichi Taguchi
Associated with robust product design
