Total Quality Management (TQM)

Book Name: Total Quality Management (2nd Edition)

Author: Joel E. Ross

Chapter Chapter Heading

1 Introduction to Total Quality Management

2 Leadership for TQM
3 Information Analysis and Information Technology
4 Strategic Quality Planning
5 Human Resource Development and Management
6 Management of Processing Quality
7 Customer Focus and Satisfaction
8 Benchmarking
9 Organization for TQM; Structure and Teams
10 Productivity, Quality, and Reengineering
11 The Cost of Quality
12 ISO 9000: Universal Standards of Quality
 Distribution of Internal
Sessional Evaluation
Area of marks Maximum
Marks

Assignments/Projects (Minimum 2 Assignments) 5

Quizzes (Minimum 5 quizzes) 5

Attendance 11

Class Participation (Punctuality and Case Studies) 4

Total Quality Management (TQM)

CHAPTER 1
Introduction to Total Quality Management
Total Quality Management (TQM)

What is Quality ?
Definitions of Quality
Quality means different to different people:

1. Customer-Based: Fitness for use, meeting customer

expectations.

2. Manufacturing-Based: Conforming to design, specifications,

or requirements. Having no defects.

3. Product-Based: The product has something that other

similar products do not that adds value.

4. Value-Based: The product is the best combination of price

and features.

5. Transcendent: It is not clear what it is, but it is something

good...
 Total Quality Management (TQM)
Quality means different to different people. There are five ways of looking at quality definitions

I. Transcendent Definition:
"Quality is neither mind nor matter, but a third entity independent of the two…even through Quality
cannot be defined, you know what it is."
II. Product-Based Definition:

"Quality refers to the amounts of the unpriced attributes contained in each unit of the priced
attribute."

III. User-Based Definition:

"Quality is fitness for use." (J.M. Juran, ed., Quality Control Handbook, p2).
IV. Manufacturing-Based Definition:
"Quality [means] conformance to requirements." "Quality is the degree to which a specific product
conforms to a design or specification."
V. Value-Based Definition:

"Quality means best for certain customer conditions. These conditions are (a) the actual use and (b) the
selling price of the product."
 What is TQM?
 TQM is the enhancement to the traditional way of doing
business.
 It is a proven technique to guarantee survival in the world-
class competition.
 TQM is for the most part common sense.
 Analyzing three words (TQM), we have:
Total—Made up of the whole
Quality—Degree of excellence a product or service provides
Management—Act, art, or manner of handling, controlling,
directing, etc.
 Therefore TQM is the art of managing the whole to achieve
the excellence.
What is TQM? (Continued)
 TQM is defined as both philosophy and a set of guiding
principles that represents the foundation of a continuously
improving organization.
 It is the application of quantitative methods and human
resources to improve all the processes within an organization
and exceed customer needs now and in future.
 TQM integrates fundamental management techniques,
existing improvement efforts, and technical tools under
disciplined approach.
 Total Quality Management (TQM)
In trying to define TQM is it is well worth considering the relevance and meaning of
the three words in it's title.:

Total - The responsibility for achieving Quality rests with everyone a business no
matter what their function. It recognizes the necessity to develop processes across
the business, that together lead to the reliable delivery of exact, agreed customer
requirements. This will achieve the most competitive cost position and a higher
return on investment.

Quality - The prime task of any business is to understand the needs of the
customer, then deliver the product or service at the agreed time, place and price,
on every occasion. This will retain current customers, assist in acquiring new ones
and lead to a subsequent increase in market share.

Management - Top management lead the drive to achieve quality for customers,
by communicating the business vision and values to all employees; ensuring the
right business processes are in place; introducing and maintaining a continuous
improvement culture.
 Total Quality Management (TQM)
Antecedents of Modern Quality Management

 Guilds of Medieval Europe

(From the end of 13th Century to Early 19th Century)

 The Industrial Revolution

(From the end of 17th Century to 1800s)

 The World War II

(From 1938 to 1945)

 Post World War Era

(After 1945)
Total Quality Management (TQM)
Guilds of Medieval Europe
(From the end of 13th Century to Early 19th Century)
Total Quality Management (TQM)
Guilds of Medieval Europe
(From the end of 13th Century to Early 19th Century)
 Total Quality Management (TQM)
Antecedents of Modern Quality Management

The Industrial Revolution

(From the end of 17th Century to 1800s)

 Craftsmanship

 The Factory System

 The Taylor System

 Total Quality Management (TQM)
Industrial Revolution: The Craftsmanship
Total Quality Management (TQM)
World War II
Total Quality Management (TQM)
Post World War II

The Birth of Total Quality Management

The birth of the Total Quality Control in US was in direct response to a quality
revolution in Japan following WW-II as Japanese manufacturers converted from
Producing Military Goods for internal use to producing civilian goods for trade.

At first Japan had a widely held reputation for shoddy exports, and their goods
were shunned by international markets. This led Japanese organizations to explore
new ways of thinking about quality.

And from here starts the era of “Quality Gurus”!

 Total Quality Management (TQM)
What is a 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.
 These gurus have done, and continue to do, that, in
some cases, even after their death.
 The Era of Quality 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
 Total Quality Management (TQM)
The Americans who went to Japan:

J. Edward Deming Joseph M. Juran Armand V Feigenbaum

Total Quality Management (TQM)
Joseph Juran
Juran is a founder of the Juran Institute in Wilton, Connecticut.
He promoted the concept known as Business Process Quality,
which is a technique of Cross-Functional Quality Improvement.

He was invited to Japan in 1954 by the Union of Japanese

Scientists and Engineers (JUSE)

He predicted the quality of Japanese goods would overtake the

quality of goods produced in US by Mid-1970s because of
Japan’s revolutionary rate of quality improvement
Total Quality Management (TQM)
W. Edward Deming
Deming, who had become frustrated with American managers when most programs of statistical
quality control were terminated once the war and government contracts came to an end, was
invited to Japan in 1954 by the Union of Japanese Scientists and Engineers (JUSE).

Deming was the main figure in popularizing quality control in Japan and regarded as national hero in
that country.

He believes that quality must be built I into the product at all stages in order to achieve a high level
of excellence.

His thoughts were highly influenced by Walter Shwartz who was the proponent of Statistical Quality
Control (SQC). He views statistics as a management tool and relies on statistical process control as
means in managing variations in a process.
 Total Quality Management (TQM)
W Edwards Deming placed great importance and responsibility on management, at both the individual and
company level, believing management to be responsible for 94% of quality problems. His fourteen point
plan is a complete philosophy of management, that can be applied to small or large organizations in the
public, private or service sectors:

1. Create constancy of purpose towards improvement of product and service

2. Adopt the new philosophy. We can no longer live with commonly accepted levels of delay, mistakes
and defective workmanship
3. Cease dependence on mass inspection. Instead, require statistical evidence that quality is built in
4. End the practice of awarding business on the basis of price
5. Find problems. It is management’s job to work continually on the system
6. Institute modern methods of training on the job
7. Institute modern methods of supervision of production workers, The responsibility of foremen must
be changed from numbers to quality
8. Drive out fear, so that everyone may work effectively for the company
9. Break down barriers between departments
10. Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without provid
methods
11. Eliminate work standards that prescribe numerical quotas
12. Remove barriers that stand between the hourly worker and their right to pride of workmanship
13. Institute a vigorous program of education and retraining
14. Create a structure in top management that will push on the above points every day
Total Quality Management (TQM)
Armand V Feigenbaum was the originator of “total quality
control”, often referred to as total quality.

He defined it as:
“An effective system for integrating quality
development, quality maintenance and quality
improvement efforts of the various groups within an
organization, so as to enable production and
service at the most economical levels that allow full
customer satisfaction”.

He saw it as a business method and proposed three steps to

quality:
• Quality leadership
• Modern quality technology
• Organisational commitment
 Total Quality Management (TQM)
Japanese who developed new concepts in response to the Americans

Dr Kaoru Ishikawa Dr Genichi Taguchi Shigeo Shingo

Dr Kaoru Ishikawa made many contributions to quality, the most noteworthy being his total
quality viewpoint, company wide quality control, his emphasis on the human side of quality,
the Ishikawa diagram and the assembly and use of the “seven basic tools of quality”:

– Pareto analysis which are the big problems?

– Cause and effect diagrams what causes the problems?
– Stratification how is the data made up?
– Check sheets how often it occurs or is done?
– Histograms what do overall variations look
like?
– Scatter charts what are the relationships
between factors?
– Process control charts which variations to control and
how?
 Total Quality Management (TQM)
Ishikawa Diagram (Cause & Effects Diagram)
Also known as Fishbone Analysis
Total Quality Management (TQM)

Shigeo Shingo
Shingo is strongly associated with Just-in-Time manufacturing,
and was the inventor of the single minute exchange of die
(SMED) system, in which set up times are reduced from
hours to minutes, and the Poka-Yoke (mistake proofing)
system.

In Poka Yoke, defects are examined, the production system

stopped and immediate feedback given so that the root
causes of the problem may be identified and prevented from
occurring again.
 Total Quality Management (TQM)
Poka Yoke: Fail Safe/Mistake Proofing System
Total Quality Management (TQM)
Dr Genichi Taguchi

Taguchi believed it is preferable to design product that is robust

or insensitive to variation in the manufacturing process, rather
than attempt to control all the many variations during actual
manufacture.

“Taguchi methodology” is fundamentally a prototyping method

that enables the designer to identify the optimal settings to
produce a robust product that can survive manufacturing time
after time, piece after piece, and provide what the customer
wants.
 Total Quality Management (TQM)
Western gurus who followed the Japanese industrial success

Philip B Crosby Tom Peters

Total Quality Management (TQM)
Philip B Crosby

Crosby is known for the concepts of “Quality is Free” and “Zero

Defects”, and his quality improvement process is based on his four
absolutes of quality:

– Quality is conformance to requirements

– The system of quality is prevention

– The performance standard is zero defect

– The measurement of quality is the price of non-

conformance
Total Quality Management (TQM)
Tom Peters

Tom Peters identified leadership as being central to the quality improvement

process, discarding the word “Management” for “Leadership”. The new
role is of a facilitator, and the basis is “Managing by walking about”
(MBWA), enabling the leader to keep in touch with customers, innovation
and people, the three main areas in the pursuit of excellence.

He believes that, as the effective leader walks, at least 3 major activities are
happening:

– Listening suggests caring

– Teaching values are transmitted

– Facilitating able to give on-the-spot help

 The Trends Accelerating Use of TQM: 1970s the era of Hue & Cry!

“If Japan Can… Why Can’t We?”

 At first U.S. manufacturers held onto to their assumption that Japanese

success was price-related, and thus responded to Japanese competition
with strategies aimed at reducing domestic production costs and restricting
imports.

 This, of course, did nothing to improve American competitiveness in

quality.

 As years passed, price competition declined while quality competition

continued to increase.

 By the end of the 1970s, the American quality crisis reached major
proportions, attracting attention from national legislators, administrators
and the media.

 A 1980 NBC-TV News special report, “If Japan Can… Why Can’t We?”
highlighted how Japan had captured the world auto and electronics
markets. Finally, U.S. organizations began to listen.
 The American Response
The US Business Community Wakes up in 1980s from Deep Slumber

 The chief executive officers of major U.S. corporations

stepped forward to provide personal leadership in the
quality movement.

 The U.S. response, emphasizing not only statistics but

approaches that embraced the entire organization,
became known as Total Quality Management (TQM).

 Several other quality initiatives followed. The ISO 9000

series of quality-management standards, for example,
were published in 1987.
 Total Quality Management (TQM)
The American Response
The US Business Community Wakes up in 1980s from Deep Slumber

Several other quality initiatives followed. The ISO 9000 series of quality-management
standards, for example, were published in 1987. The Baldrige National Quality Program and
Malcolm Baldrige National Quality Award were established by the U.S. Congress the same
year. American companies were at first slow to adopt the standards but eventually came on
board.

 The major rationale behind establishment of this law was intense foreign competition
especially from Japan.
 The award has set a national standard for quality, and hundreds of major corporations used
the criteria in application form as a basic management guide for quality improvement
programs.
 Meeting criteria is not an easy matter. A perfect score is 1000
 Baldrige Award Points Scale
Examination Categories/Items _____ Point Values

1.0 Leadership 95
1.1 Senior Executive Leadership 45
1.2 Management for quality 25
1.3 Public Responsibility and corporate citizenship 25

2.0 Information and Analysis 75

2.1 Scope and management of quality and performance data 15
information.
2.2 Competitive comparisons and benchmarking 20
2.3 Analysis and uses of company-level data 40

3.0 Strategic Quality Planning 60

3.1 Strategic quality and company performance planning process 35
3.2 Quality performance plans 25
 Total Quality Management (TQM)
Examination Categories/Items Point Values

4.0 Human Resource Development and Management 150

4.1 Human resource planning and management 20
4.2 Employee involvement 40
4.3 Employee education and training 40
4.4 Employee performance and recognition 25
4.5 Employee well-being and satisfaction 25

5.0 Management of Process Quality 140

5.1 Design and introduction of quality products and services 40
5.2 Process management: product and service production and 35
delivery processes
5.3 Process management: business processes and support services 30
5.4 Supplier quality 20
5.5 Quality assessment 15
 Total Quality Management (TQM)
Examination Categories/Items Point Values

6.0 Quality and Operational Results 180

6.1 Product and service quality results 70
6.2 Company operational results 50
6.3 Business process and support service results 25
6.4 Supplier quality results 35

7.0 Customer Focus and Satisfaction 300

7.1 Customer expectation: current and future 35
7.2 Customer relationship management 65
7.3 Commitment to customer 15
7.4 Customer satisfaction determination 30
7.5 Customer satisfaction results 85
7.6 Customer satisfaction comparison 70
Total Quality Management (TQM)

Why Apply for Baldrige Award?

We applied for the Award, not with the idea of winning, but with the goal of
receiving the evaluation of the Baldrige Examiners. That evaluation was
comprehensive, professional, and insightful...making it perhaps the most
cost-effective, value-added business consultation available anywhere in
the world today.

Bob Barnett
Executive Vice President
Motorola, Inc.
2003 Baldrige Award Ceremony
Total Quality Management (TQM)
Some Visuals of the Coveted Baldrige National Quality Awards
Total Quality Management (TQM)
Winners of Baldrige National Quality Awards
Total Quality Management (TQM)
Winners of Baldrige National Quality Awards
Total Quality Management (TQM)
Chief Guest Speaking During National Quality Awards Ceremony
Total Quality Management (TQM)
Some Visuals of Baldrige National Quality Awards
 Total Quality Management (TQM)
TQM Beyond 2000
As the 21st century begins, the quality movement has matured. The new quality systems
have evolved beyond the foundations laid by Deming, Juran and the early Japanese
practitioners of quality

– In 2000 the ISO 9000 series of quality management standards was revised to increase
emphasis on customer satisfaction. Sector-specific versions of the ISO 9000 series of
quality management standards were developed for such industries as automotive (QS-
9000), aerospace (AS9000) and telecommunications (TL 9000 and ISO/TS 16949) and for
environmental management (ISO 14000).

– Six Sigma, a methodology developed by Motorola to improve its business processes by

minimizing defects, evolved into an organizational approach that achieved breakthroughs
– and significant bottom-line results. When Motorola received a Baldrige Award in 1988,
it shared its quality practices, like Toyota Motor Corporation, with others.
Total Quality Management (TQM)
– Quality function deployment was developed by Yoji Akao
as a process for focusing on customer wants or needs in
the design or redesign of a product or service.

– Quality has moved beyond the manufacturing sector into

such areas service, healthcare, education and government.

– The Malcom Baldridge National Quality Award has added

education and healthcare to its original categories:
manufacturing, small business and service. Many
advocates are pressing for the adoption of a “nonprofit
organization” category as well.
Total Quality Management (TQM)

END OF
CHAPTER 1