Total Quality Management

By

M. Ali Hassan alimba@live.com

What is Quality?
Definitions of Quality Fitness for use Conformance to specifications Minimum variations Reduced errors or defects Meeting customer satisfaction Q=P/E Where P is Performance of the product and E is Expectation of the customer.

Dimensions of Quality
Performance Features Reliability Competitive Value Serviceability Reputation Conformance Aesthetics Sales Staff Response

Myths about Quality
Quality Products have to cost more because their production cost is higher. Focus on Quality reduces Production output. Quality is only concerned with production of products. Some level of defects or errors are acceptable even in a quality product or process.

Quality and Productivity
Significance of Quality towards improving productivity Productivity = Outputs of products or services Inputs of resources (3Ms) Inputs = Men, Material, and Money *** To enhance productivity increase number of products or decrease waste of resources *** Concept of Zero Defect or Six Sigma •Do you think Zero defect is conceivable ?

Quality Issues in Pakistan
Current Quality Conditions of businesses  15 – 20% reject rate  Obsolete or Inefficient technology  High rework costs  Low worker motivation  Late deliveries  Higher inventory costs  Higher inspection and correction costs

Scenario of Pakistan under WTO!

What is Total Quality Management?
TQM is a proven corporate business philosophy for competitive success, based on systematic approach in which everyone connected with organization is focused towards customer satisfaction. Total – Everyone in the organization – all people & all processes Quality – Degree to which an organization meets customer expectations Management – The process of planning, organizing, staffing, leading and controlling the organizational activities effectively and efficiently.

TQM - Continued
TQM is a concept of business leadership in which products and services exceed customer expectation delivered on time and at the most competitive cost It is achieved by consistent commitment of top management in developing a Quality Culture, open communication, inter-departmental coordination and treating suppliers as partners It involves a systematic approach, using process workers in measuring and controlling their process and then improving it continuously

Elements of TQM
Commitment of top management Customer satisfaction Employee involvement and empowerment Performance measures and Process controls Continuous Process Improvement Long-term Supplier Partnership Team based work system

TQM Approach to Business
Difference in Traditional business operations and TQM Operations Traditional Operations: Production – inspection – Sales TQM Operations: Customer Needs – Designing – Processing – Testing – Supply- Sales Feedback

What’s the Difference?
Quality Element Management Focus Responsibility Emphasis Decision making Procurement Criteria Reward Basis Manager’s Role Traditional Way Quantity of Output QA Dept Detection Individual, short-term Lower Price Higher Output Assign, Enforce, Control TQM Way Quality of Output Everyone Prevention Teams, Long-term Better Quality Quality Improvement Delegate, Facilitate, Mentor

Benefits of TQM
Greater Market share More customer Retention Less wastage, rework and scrap Reduced production cost Higher worker motivation Less procurement related problems Less R&D to production time Unity of purpose among departments Better Process Controls

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