Task:

Investigate the advantages and

disadvantages of TQM and the
EFQM model;  and
Compare the EFQM model
with TQM indicating the benefits
and weaknesses of each approach
Team3
An effective system for integrating the quality
development, quality maintenance and
quality improvement efforts of the various
groups in an organisation so as to enable
production and service at the most
economical levels which allow for full
customer satisfaction.
Deming’s basic philosophy:
Quality and productivity increase as ‘process
variability’ (the unpredictability of the process)
decrease.
The need for statistical control methods,
participation, education, openness and purposeful
improvement.
The elements of TQM
Meeting the needs and expectations of customers.
Covering all parts of the organisation.
Including every person in the organisation.
Examining all costs which are related to quality,
especially failure costs.
Getting things ‘right first time’.
Developing the system and procedures which support
improvement
TQM Process
1 Establish need to change 2 Gain and sustain
•Perceptions commitment
•Cost of quality •Vision
•Systems audit •Top team
•Next levels

3 Planned improvement 4 Review

•Education and training
•Teams DO IT ALL OVER AGAIN!!
•Measurement
•Communication and
recognition
Tools of TQM
Benchmarking

The PDCA Cycle

Advantages of TQM
FOR Organization:
Provision of fundamental way of conducting business,
making the organization more competitive and viable
Improves productivity & reputation
Optimised resource configuration & Lower costs
Reduce overall operation cycle
Improve customer satisfaction
Reduce job division & improve cooperation
Advantages of TQM
Train workers & improve organizational culture
Accelerate vertical communication
Generate improved products and services, lower
costs, more satisfied customers, and empowered
employees;
 Increases return on investment and market share
Focus on importance of responsibility
Advantages of TQM
FOR Workforce:
More productive and successful workforce strategy
Worker’s ideas in improving the decision making
process is accomplished;
Employees in quality circles are more motivated
Process improvement methods that reduce or
eliminate problems (improves the efficiency of the
process and better results)
Higher employee morale
Advantages of TQM
Workforce is proactive - prevention orientated (it
helps to prevent accidents/quality rejects)
Intrinsic motivation and improved attitudes
throughout the workforce (improved work conditions
means employees are motivated to perform better)
Enhanced communication (it encourages discussion
among employees/between managers and employees)
Disadvantages of TQM
Fails to meet specific requirements
Initial introduction Costs:
- Training workforce
- Machine
- Material improvement
Benefits may not be seen for several years
Workers may be resistant to change
Historically many TQM initiatives fail, or at least are
not entirely successful.
 What is EFQM?
The European Foundation for Quality Management
(1988, 14), (2000, >800) – non-profit organisation
Is committed to promoting Quality as the
fundamental process for continuous improvement
within a business
Stimulate & assist Mngt in applying innovative
principles of TQM suited for European environment
AIM:
Improve the competitiveness of European
private&public sector organisations
 EFQM Excellence Model
Provides a valuble framework for addressing key
operational activities of construction of organisations

Has been used in:

Manufacturing
Banking & Finance
Education
Management & Consultancy
 Excellent results with respect to Performance, Customers, People and Society are
achieved through Leadership driving Policy and Strategy, that is delivered through
People, Partnerships and Resources, and Processes.
9 Criteria:
Leadership
Policy and Strategy
People
Partnership and resources
Processes
Customer Results
People Results
Society Results
Key Performance Results
 EFQM Model
Depicts an organisation in 4 ways:
1. As an entity in itself
2. As set of measures
3. As frameworks of processes
4. As teams of people
Evaluation Tool - RADAR
Advantages of EFQM
It is an integrated model that combines different
elements and logically links them together
It is visible and easy to understand and its spans
almost all facets of the organization with detailed
guidelines
It presents a vivid and holistic view of the
organization and clearly defines the different
elements
It is flexible and largely based on continuous
improvement
Advantages of EFQM
Clearly defines the organizations goals, how to
achieve them, the possible results and the
systematic link between them.
It presents a platform for comparing and
competing with other organizations (it is widely
used in Europe so one can compare with other
users of the model)
Adoption of the model leads to qualification for
the EFQM quality award.
Disadvantages of EFQM
Several activities need to be considered at the same
time
Senior management need to be actively committed to
implementing the model and undertaking self
assessment
Adoption of the model requires training of all the
company personnel because everyone is expected to
be involved
Disadvantages of EFQM
The model doesn’t stress on promoting changes, but
only focus on how to improve with the existing
resources
Implementation of the model is time consuming and
expensive. The system is complex and requires
specialised training and careful planning.
Subjective process (input might be biased)
 Comparison
Benefits Weaknesses
TQM EFQM Model TQM EFQM Model

Investment Self-assessment Expensive Needs more

in specialized
prevention training
Benchmarki Can be more Benefits Only for
ng focused on specific prolonged by European
area time companies
Avoid from
employee
resistance
Competitiveness
Thank you
Any Questions???