Total Quality

Management (TQM)
Imran Hussain
 COMPETITION is the
driving force in business
A supplier’s competitiveness
is determined by QUALITY
 Perception of Quality

Once you get a reputation, it’s hard to lose

it
What is Quality?
Totality of characteristics
of an entity that bear on
its ability to satisfy stated
and implied needs

(ISO 8402 : 1994)

Meeting and exceeding
the implied and stated
needs of the customer
Meeting customer
requirements
A successful business meets
all its customers’
requirements
Good service is
RELIABILITY
Good service is PUTTING
CUSTOMER FIRST
 Aim of supplier is to
DELIGHT the customer
Who is the Customer?
Suppliers and Customers

internal and external

Quality Chain
A small break in the internal
chain can be proportionately
greater when they get to the
external customer/supplier
interface
Quality must be built in from
beginning of an organization’s
activities, not ‘inspected in’ at
the end
Quality is a two-way
process
 Focus on
inputs vs. outputs
Use processes at the
interfaces
Detection and quality
control
 Quality Control
 Quality Control involves monitoring specific
project results to determine if they comply
with relevant quality standards, and identifying
ways to eliminate causes of unsatisfactory
results
Q: Have we done job
correctly?
Q: Are we capable doing
the job correctly?
Total quality approach
required
 Total Quality Management
Approach
 Methods
 Materials
 Equipment
 Skills & knowledge
 Instructions
 Processes
 Process

Inputs Outputs
Q: Are we capable doing
the job correctly?

Q: Do we continue to do
the job correctly?
YES or NO?
 No need for
DETECTION
The customer/supplier
chain is the core of the
Total Quality
Management model
 TQM Support Mechanism
 Systematic Planning
 Tools for measuring delivering and sustaining quality
 Organizing for quality & developing teams
 Communication between all parts of the organization
 Commitment of the organization to a TQM approach
 Recognition and perhaps change of the organizations’
culture & environment
Inner band …

Teams
Tools
Systems
Outer band …

Communication
Commitment
Culture
 Five Pillars of TQM
 Product
 Processes
 Organization
 Leadership
 Commitment
 TQM
 A management approach centered on quality,
based on company-wide participation and
aimed at long term success through customer
satisfaction (ISO)
 TQM
 Based on company-wide participation
 TQM involves everyone in an organization
-every function and every activity
 Evolution of Quality

1200-1799 1900-1940 1946-Present

Guilds of Process Birth of Total
Medieval Europe Orientation Quality

1800-1899 1941-1945
Product Quality during
Orientation World War II
 Guilds of Medieval Europe
(1200-1799)
 Craftsmen across Europe organized into unions called
Guilds
 Guilds were responsible for developing strict rules for
product and service quality
 Inspection committees enforced the rules by
identifying flawless goods with a special mark
 A second quality mark came from the craftsmen
themselves
 Primary Focus: Product Inspection
 Product Orientation
(1800-1899)

 US quality practices in the 1800s were shaped

by several different production methods:
 Craftsmanship
 The Factory System

 The Taylor System

 Craftsmanship
 Early 19th century- the approach tended to
follow the craftsmanship model in the
European countries
 Masters maintained a form of quality control
by inspecting goods before sale
 The Factory System
 This is a product of the industrial revolution in
Europe
 The craftsmen became factory workers and the shop
owners their production supervisors
 Quality in the factory system was ensured through
skilled laborers and supplemented by audits and/or
inspections
 Large production departments employed full-time
inspectors who produced quality reports and
 Defective products were either reworked or scrapped.
 The Taylor System
 In the late 19th century US broke from European
tradition and adopted a new management approach by
Taylor
 Taylor’s goal was to increase productivity without
increasing the no. of skilled craftsmen
 He achieved this by assigning factory planning to
specialized engineers and using displaced workers and
supervisors to execute the engineers plans
 This new approach led to remarkable rises in
productivity
 BUT …
 The Taylor System
 Workers once again stripped of their
dwindling power and the new emphasis was
on productivity which had an adverse effect on
quality
 Product Orientation
(1800-1899)

 Primary Focus: Product Inspection

 Process Orientation
(1900-1940)
 Beginning of the 20th century marked the
inclusion of processes in quality practices
 Shewhart recognized that industrial processes
yield data.
 He determined that this data can be analyzed
using statistical techniques to see if a process
is stable or “in control” or if is being affected
by special causes that should be fixed.
 His concepts are referred to as “Statistical
Quality Control” (SQC)
 Primary Focus: Product Inspection & SQC
 Quality during World War II
(1941-1945)
 After World War II had started, US enacted legislation to help
gear the civilian economy to military production
 At that time contracts were awarded to manufacturers who
submitted the lowest bid. Products were inspected upon
delivery
 The armed forces inspected virtually every unit of product to
ensure that it was safe for operation
 To ease this problem, the armed forces began to utilize
sampling inspection to replace unit-by-unit inspection
 They adopted sampling tables and published them in a military
standard Mil-Std-105
 They also helped their suppliers improve their quality by
sponsoring training courses in Shewhart’s SQC techniques
 Primary Focus: Sampling Inspection & SQC
 Birth of Total Quality
(1946-Present)
 After World War II, major Japanese
manufacturers converted from producing
military goods for internal use to civilian
goods for trade
 Poor response from the world market
 Japan started exploring new ways of thinking
about quality (Deming and Juran)
 Rather than relying purely on product
inspection, total quality focused on improving
all organizational processes through the people
who used them
 Birth of Total Quality
(1946-Present)

 Juran, at a conference of the European

organization for quality control in Sweden
made the following prediction

“The Japanese are headed for world quality

leadership and will attain it in the next two
decades because no one else is moving at the
same pace”
 America’s Response
 Initially US clung to its assumption that Japanese
success was price related and responded with
strategies aimed at reducing domestic production
costs and restricting imports. This did not prove
beneficial
 By the end of the 1970’s US reached a major quality
crisis.
 They started to think “if Japan can.. Why can’t we?
 CEO of top US organizations then took an initiative
 References
 Total Quality Management – A Total Quality
Approach, Ch. 1, 2