Submitted by:

Pooja H. Sheth -11030241163 Pratik Dighe -11030241165 Pritish Mohanty -11030241166 Sahil Sikka -11030241169 Shantanu Sharma -11030241171

What is TQM?

Total: Made up of the whole

Quality: Degree of excellence of a product or a service

Management: Act, art or manner of planning, controlling, directing,..

Therefore, TQM is the art of managing the whole to achieve excellence. excellence

TQM [Cntd.]

Philosophy which applies equally to all parts of the organization. Can be viewed as an extension of the traditional approach to quality. Places the customer at the forefront of quality decision making. Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality. All staff are empowered.

Goal of TQM
Doing right things right

for the FIRST time, everytime

Another way to put it

At it s simplest, TQM is all managers leading and facilitating all contributors in everyone s two main objectives:

Total client satisfaction through quality products and services

Continual improvements to processes, systems, people, suppliers, partners, products, and services

Elements of TQM

Leadership
- Top management vision, planning and support.

Employee involvement

All employees assume responsibility for the quality of their work.

Product/Process Excellence
- Involves the process for continuous improvement.

Continuous Improvement

A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality.

Customer Focus on Fitness for Use

- Design quality

Specific characteristics of a product that determine its value in the marketplace. The degree to which a product meets its design specifications.

-Conformance quality

Basic Tenets of TQM

Customer Ultimate determination of Quality
Improving quality needs effective metrics So, more focus should be put on data and facts

Top Management: - Provides leadership - Support For all quality initiatives

Preventing Variability Key to producing high quality

Quality Goals are a moving target So, requires commitment towards continuous improvement

Three Aspects of TQM

Counting: Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems

Customer: Quality for the customer as a driving force and central concern

Culture: Shared values and beliefs, expressed by leaders, that define and support quality

Different views of TQM

Traditional Approach Lack of communication Control Staff Inspection and fire fighting Internal focus on rule Stability seeking Adversarial relations Allocating Blame Modern Approach Open Communications Empowerment Prevention External focus on customers Continual improvement Co-operative relations Solving problems at their root

Evolution of TQM

Old Concept of Quality: - Reactive approach - Inspection: An organized examination or formal evaluation exercise - Sampling is concerned with selection of a subset of individuals from within a population to estimate characteristics of the whole population

New Concept of Quality: - Pro-active approach - Process based approach - Focus on data and facts - Root Cause analysis

Quality Gurus
Quality Guru
Walter A. Shewhart

Main Contribution
- Process Variability - Developed the concept of statistical control charts - Stressed management s responsibility for quality - Developed 14 points to guide in quality improvement - Defined quality as fitness for use - Developed concept of cost of quality - Introduced concept of total quality control - Introduced the concept of zero defects - Developed cause-and-effect diagrams - Concept of internal customers - Focused on product design quality

W. Edward Demming

Joseph M. Juran Armand V. Feigenbaum Philip B. Crosby Kaoru Ishikawa Genichi Taguchi

7 deadly diseases as proposed by Deming

Lack of constancy of Considered as the Father of Quality approach

Evolution

Emphasis on short tem profits

Evaluation by performance/ merit rating.

Mobility of management

Running a company on visible figures only

Excessive medical costs

Excessive legal fees

Deming's 14 points for TQM

Corelation of Deming's 14 points and 7 deadly diseases

TQM A continual improvement process

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.

Traditional Approach v/s TQM's Continual Improvement

Traditional Approach Continual Improvement

Market-share focus Individuals Focus on who and why Short-term focus Status quo focus Product focus Innovation Fire fighting

Customer focus Cross-functional teams Focus on what and how Long-term focus Continual improvement Process improvement focus Incremental improvements Problem solving

The Deming Cycle

The TQM Model

Objective

Principles

Elements

Obstacles in implementing TQM

Lack Of:
A company-wide definition of quality. A formalized strategic plan for change. A customer focus. Poor interorganizational communication. View of the quality program as a quick fix. Drive for shortterm financial results. Politics and turf issues.

Strategic implications of TQM

Strong leadership

Goals, vision, or mission

Operational plans and policies

Mechanism for feedback

Implementing TQM

Successful implementation of TQM

Requires total integration of TQM into day-to-day operations.

Causes of TQM Implementation Failures

Lack of focus on strategic planning and core competencies. Obsolete, outdated organizational cultures.

Some criticisms of TQM

1. Blind pursuit of TQM programs 2. Programs may not be linked to strategies

3. Quality-related decisions may not be tied to market performance 4. Failure to carefully plan a program

Advantages of TQM
Reduction of total defects

Customer Satisfaction

Ease of solving of problems.

Cost Savings

Continual process & product improvement

IBM was the one of the first companies to implement TQM in the form of Six-sigma. IBM s estimate was that by the implementation, they would add $2.4 billion directly to the bottom line. John Fellows Akers, the president of IBM between 1983 and 1989, talked publicly about what the Quality movement could do to reinvigorate American business and held IBM up as an example of how other companies should run their businesses. But IBM suffered a loss of $16 billion between 1991 & 1993.

One of the reasons of failure was over-abundance of training instead what-they-need-when-theyneed form of training. The second reason was the heavy use of Carrot-andStick i.e., a policy of offering a combination of rewards and punishment of induce behavior. The reason was the employees at IBM had the misconception that the success of the program meant company would need lesser employees hence would result in the loss of their own jobs.

First step was to enhance and change the corporate culture. A Company motto was established, "the better the quality, the lower the overall costs."

In 1983, Xerox implemented a "Quality through Leadership"

program. The program had three main objectives. First to improve profits as reflected in higher returns on assets. Second, to improve customer satisfaction, and third, to improve market share. The cost of the implemented program was enormous, $125 million, and over 4 million hours of man hours of work.

Customer satisfaction increased by 40% and customer complaints decreased by 60%. Promotions were based on criteria not related to quality.

By 1989, 75% of Xerox workers participate in the drive for perfect quality, and over 7,000 quality improvement teams were formed. Company expenditure designated for training was increased to2.5%-3.0% of the annual revenues. In the total quality control (TQC) concept, employees are empowered to take responsibility for quality.

Conclusion

TQM attempts to have maximum customer satisfaction through providing quality products and services but uncongenial business environment, high cost of production, unfair competition in market are the major constraints in using TQM. The technical tools of quality improvement may be well developed, but its theory and practice lag far behind. The concept of quality is only dimly understood by the practicing managers.

On the other hand, Over the past few decades, Information Technology (IT) helps TQM organization achieve its goals.

And the quality journey continues

Thank You