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TQM

an Introduction
B.B.Mishra

TQM

What is Quality

FEIGENBAUM (1983) Defined Quality as Follows

Quality is total composite product (goods and services)


characteristics, through which the product in use will meet the
needs and expectations of the customers.
Concept of quality must start with identification of customer
quality requirements and must end only when the finished
product is placed into the hands of the customer who remains
satisfied through various stages of relationship with the seller

American Society of Quality Control (ASQC) and


American National Standard Institute (ANSI) defined

Quality is totality of features and characteristics of product


(goods and services) that bears on its ability to satisfy given
needs

Approaches to define Quality


Transcendent Approach
Quality is absolute and universally recognisable.
It is common notion used by laymen
There is no subjective judgement and is estimated by looking at the product

Product Based Approach


Attributes of a particular product in a specific category
These attributes are accepted as bench of quality by the industry
Others in the same industry try to produce close to this quality

User Based Approach


Defined as Fitness for use
Viewed from users perspective and is dependent on how well does the product
meet needs of the consumer.
Also known as Customer Oriented Approach

Production Based Approach


An outcome of engineering or operational excellence and is measured in terms of
quality of conformance
The producer has specifications and produces the product as per the specifications

Value Based Approach

Value

Quality is viewed in context of price


Quality is satisfactory, if it provides desired performance at an acceptable price
Customer looks at the total value proposition and not the price alone

Benefits
Pr ice

Attributes of Quality

Performance

Products primary operating characteristics

Augmented product The bells & whistles of the product

Ability of the product to function at the specified level of


performance

Features

Reliability

Conformance

Durability

Degree to which characteristics of the product meet preestablished standards


Length of time a product can be used before it deteriorates or
becomes non functional

Serviceability

Speed, competence & courtesy of providing ASS

Look, feel sound, taste, smell

Resulting from advertisement, image, brand name, earlier use,


hearsay

Aesthetics

Perceived Quality

Evolution of Quality Management

Total Quality
Control
Quality
Assurance

Mass
Inspection

Quality
Control
(Acceptance
Sampling)

Company
wide Quality
Control

Evolution of Quality Management

Mass Inspection

Inspecting
Salvaging
Sorting
Grading
Rectifying
Rejecting

Quality manuals
Product testing using SQC
Basic quality planning

Quality Control

Emphasis on prevention
Proactive approach using SPC
Advance quality planning

All aspects of quality of inputs


Testing equipments
Control on processes

Total Quality Control

Company wide Quality Control

Measured in all functions connected with production such as

Quality Assurance

R&D
Design
Engineering
Purchasing,
Operations etc

Total Quality Management

Measured in all aspects of business,


Top management commitment
Continuous improvement
Involvement & participation of employees

Evolution of Quality Management

Gurus of TQM

ABOUT

What is TQM?

TQM is an integrated organizational approach in


delighting customers (both external and internal) by
meeting their expectations on a continuous basis through
everyone involved with the organizational working on
continuous improvement in all products/processes along
with proper problem solving methodology.
TO DELIVER HIGHEST VALUE AT LOWEST
COST is the main objective of TQM

TQM

Total Quality management is an enhancement to the


traditional way of doing business.

Total - made up of the whole


Quality - degree of excellence a product or service provides
Management - act, art or manner of planning, controlling,
directing,.

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


excellence

What does TQM mean?


Total Quality Management means that the organization's culture is
defined by and supports the constant attainment of customer
satisfaction through an integrated system of tools, techniques, and
training.. This involves the continuous improvement of organizational
training
processes, resulting in high quality products and services
services..

The goal of TQM


Do the right things right the first time,
every time.

Another way to put it

At its simplest, TQM is all managers leading and


facilitating all contributors in everyones two main
objectives:
(1)

total client satisfaction through quality products


and services; and
(2) continuous improvements to processes, systems,
people, suppliers, partners, products, and services
services..

Productivity and TQM

Traditional view:

Quality cannot be improved without significant losses in productivity.

Improved quality leads to improved productivity.

TQM view:

What is TQM?
Total Quality Management is a
1.
2.

methodology and
set of techniques

that focuses companies and enterprises in the role of customer


satisfaction on their business success.

TQM Principles

Customer defines quality


Top management must lead effort
View quality as a strategic issue
Quality is everyones responsibility
Focus on continuous quality improvement
Employees/Management must cooperate to establish quality
Use Statistical quality control methods
Training and education are fundamental to all the above

Total quality management (TQM)


Characteristics of TQM:
Quality chains
Company policy and accountability
Control
Monitoring the process
Benefits and
Teamwork
problems of using
Consumer views
TQM
Zero defects
Benefits:
Problems:

Focus on the customer needs and


relationship
Achieve quality in all aspects
Analyzes all processes to remove
defects
Find improvements on a continuous
basis
Develop team approach to problem
solving
Effective procedures of communication

High training and development


costs
Requiring commitment from the
entire business
Bureaucracy and regular audits are
needed
Stress is put on process not the
product.
PhotoDisc

Elements of Quality Systems

Policy, planning, organization, and administration


Product design assurance and specification
development
Control of purchased materials and component parts
Production quality control and assurance
Customer contact
Corrective and preventive action
Employee selection, training, and motivation
Legal requirements - product liability and user safety
Sampling and other statistical techniques

Significance of the term TQM

Total - The responsibility for achieving Quality rests with


everyone a business no matter what their function. It recognises
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.

Scope of TQM
TQM is the foundation for activities, which includes:
Commitment by senior management and all employees
Meeting customer requirements
Reducing development cycle times
Just In Time/ Flow Manufacturing
Improvement teams
Reducing product and service costs
Systems to facilitate improvement
Employee involvement and empowerment
Recognition and celebration
Challenging quantified goals and benchmarking
Focus on processes / improvement plans
This shows that TQM must be practiced in all activities, by all personnel, in
Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.

Produce quality work the first time.


Focus on the customer.
Have a strategic approach to improvement.
Improve continuously.
Encourage mutual respect and teamwork.

TQM mission

Excellence in IT

Performance review

Proper communication

Basic Tenets of TQM


1. The customer makes the ultimate determination of
quality.
2. Top management must provide leadership and support for
all quality initiatives.
3. Preventing variability is the key to producing high quality.
4. Quality goals are a moving target, thereby requiring a
commitment toward continuous improvement.
5. Improving quality requires the establishment of effective
metrics. We must speak with data and facts not just
opinions.

Total Quality Management


and Continuous Improvement

ontinuous Improvement vs.


Traditional Approach

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.
Continuous Improvement

Traditional Approach

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
Continuous improvement
Process improvement focus
Incremental improvements
Problem solving

Quality Throughout

A Customers impression of quality begins with the initial contact


with the company and continues through the life of the product.

Customers look to the total package - sales, service during the sale,
packaging, deliver, and service after the sale.
Quality extends to how the receptionist answers the phone, how managers
treat subordinates, how courteous sales and repair people are, and how
the product is serviced after the sale.

All departments of the company must strive to improve the quality of


their operations.

Value-based Approach

Manufacturing Dimensions

Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality

Service Dimensions

Reliability
Responsiveness
Assurance
Empathy
Tangibles

TQM Six Basic Concepts

Management commitment to TQM principles and methods &


long term Quality plans for the Organisation
Focus on customers internal & external
Quality at all levels of the work force
Continuous improvement of the production/ business process
Treating suppliers as partners
Establish performance measures for the processes

Quality is .The Qualifier!

Doing it right first time and all the time.


This boosts
Customer satisfaction immensely and increases efficiency of the
Business operations.
Clearing the bar (i.e. Specification or Standard stipulated)
Excellence that is better than a minimum standard.

Evolution of TQM

CRAFTSMEN & ARTISANS(e.g. Artists, Sculptors, working


with metals & other materials who were very Quality-conscious.
TRADESMEN (e.g. Masons, Carpenters etc.)
ENGINEERING TRADES & PRACTICES (e.g. Foundry,
Smithy, Die-making, Mould- making, Stamping, Forging, Turning,
Milling, Drilling etc. )

TQM Evolution

Quality - Definitions

Quality is excellence that is better than a minimum standard.


It is conformance to standards and fitness of purpose
Quality is fitness for use of the product Joseph Juran.

Quality has to
incorporate the
following;

conformation to
specification.
fitness for purpose.
satisfy the customer.
delight the customer.
enchant the customer.

Quality and Customer Expectations

Quality is also defined as excellence in the product or service


that fulfills or exceeds the expectations of the customer.
There are 9 dimensions of quality that may be found in
products that produce customer-satisfaction.
Though quality is an abstract perception,it has a quantitative
measure- Q= (P / E ) ,
where
Q=quality, P= performance(as measured by the Mfgr.),
and E = expectations( of the customer).
Quality is not fine-tuning your product at the final stage of
manufacturing,before packaging and shipping .
Quality is in-built into the product at every stage from
conceiving specification & design stages to prototyping testing
and manufacturing stages.
TQM philosophy and guiding principles continuously
improve the Organisation processes and result in customer
satisfaction.

The 9 Dimensions of Quality

Performance
Features
Conformance
----------------------------Reliability
Durability
Service
----------------------------Response- of Dealer/ Mfgr. to
Customer
Aesthetics of product
Reputation- of Mfgr./Dealer

Performance

Cost
Service

Features

Performance: Primary product characteristics, such as the brightness of the picture.


Features: Secondary characteristics, added features, such as remote control.
Conformance: meeting specifications or industry standards, workmanship.
Reliability: Consistency of performance over time
Durability: Useful life, includes repair.
Service: Resolution of problems and complaints, ease of repair.
Response: Human to human interface, such as the courtesy of the dealer.
Aesthetics: Secondary characteristics, such as exterior finish.
Reputation: past performance and other intangibles, such as being ranked first.

Benefits of Quality

Higher customer satisfaction


Reliable products/services
Better efficiency of operations
More productivity & profit
Better morale of work force
Less wastage costs
Less Inspection costs
Improved process
More market share
Spread of happiness & prosperity
Better quality of life for all.

Benefits of Quality Management


System
efficiency

Increase
in

Decrease Complaints
in

Customer
satisfaction

Morale of
workmen

Costs
Production time

Many industries, service organizations and educational Institutions have


implemented quality systems. The benefits are:
Reduction in complaints from customers, both internal and external.
Reduction in costs of the product.
Reduction in production time.
Increased system efficiency.
Increased morale of workmen.
Increased customer satisfaction.

Effects of Poor Quality

Low customer satisfaction


Low productivity, sales & profit
Low morale of workforce More re-work, material & labor costs
High inspection costs
Delay in shipping
High repair costs
Higher inventory costs
Greater waste of material

Market Changes

Efficiency vs. Effectiveness


Efficiency
Efficiency is all about how the producer has felt about it.

Effectiveness
Effectiveness is all about how the user has felt about it.

Drivers of quality

If quality management principles are to be followed in industries, one or more


of the following drivers are essential:

Competition in the market


Knowledge explosion
Threat for survival
Demand from stakeholders
Promise of greater profit
Desire to do better

The Oakland Model of TQM

The
Oaklands
Model
(1989, 1990) of TQM
defines TQM as a Pyramid
representing five distinct
components as

Management Commitment
Customer-Supplier Chain
Quality Systems
SPC Tools and
Team Work

It Reflects

Process Ownership
Process Management
Process Improvement

Sohal, Tay, Wirths Integrated Model of


TQM

Continuous
improvement
in
Quality has to come from an
integrated approach of controlling
quality via action plans in different
operations of the business cycle.
It stresses that by involving people
at the grass root level, improving
their
morale,
sense
of
belongingness and responsibility,
using statistical techniques to
analyse collected data and adopting

plan--do
plan
do--check
check--action

(PDCA)
Cycle, the mission of continuous
quality improvement can be
achieved to deliver satisfying
service to the customer (Internal
& External).

The Building Blocks of TQM

TQM: The Building Blocks (Zaire, 1991)

TQM Implementation Strategy on every aspects of Business

3-Dimensional Quality Model

Strategic Planning Model by Price &Gaskil (1990)


Research Strategies aligned with Business Needs

1. Product & Service


Dimension
2. People Dimension
3. Process Dimension

The House of TQM Model

Kano (1993)
Customer Satisfaction / Quality Assurance

PDCA Cycle
CLSQ- Crisis Consciousness & Leadership
VLSQ- Vision & Leadership Encourage People
Quality Sweating Theory

Interactive Environment Model of TQM

The Process of continuous Improvement can take place


only if the Disturbances created by the Interactions of
Environments are Identified and the Strategies adopted to
Eliminate them.

Characteristics of TQM

TQM is Customer Oriented


TQM requires a Long Term Commitment for
Continuous Improvement of all Processes
The Success of TQM demands the Leadership of Top
Management & Continuous Involvement
Responsibility for Establishment and Improvement of
Systems lies with the Management of an Organisation
TQM is a Strategy for Continuously Improving
Performance at all Levels & in all Areas of
Responsibility

Potential Benefits of TQM

The Advantages of TQM systems compared to conventional


quality systems are numerous

TQM helps to focus clearly on the needs of the market


TQM facilitates to aspire for a top quality performer in every
sphere of activity
It channelises the procedures necessary to achieve quality
performance
It helps examine critically & continuously all processes to remove
non-productive activities and waste
It gears organisations to fully understand the competition &
develop an effective combating strategy
It helps to develop good procedures for communication &
acknowledging good work
It helps to review the process needed to develop the strategy of
never ending improvement. Quality improvement efforts can not
be restricted to any time period. The need to be continuous to
meet the dynamic challenges. TQM emphasises on a continuous &
periodic review so as to make the required changes.

Benefits of TQM
Tangible Gains

Better Product Quality


Productivity Improvement
Reduced Quality Costs

Increased Market
Increased Profitability
Reduced Employee
Grievance

Intangible Gains

Effective Team Work


Enhancement of Job Interest
Improvement in Human
Relations & Work Area
Morale
Participative Culture
Customer Satisfaction
Improved Communication
Enhanced Problem-Solving
Capacity
Improved Corporate Health
& Character of the
Company
Better Company Image

Historical Review of Quality Control

Quality in articles and artifacts produced by skilled


craftsmen and artisans from the B.C. era e.g. goldsmiths,
silversmiths, blacksmiths, potters, etc.
Artists & Artisans Guilds in the Middle ages spent years
imparting quality skills and the works-men had pride in
making quality products.
Industrial Revolution brought factory manufacturing
where articles were mass-produced and each worker
made only a part of the product, and did not sense the
importance of his contribution to the quality of the
product.

Historical Review of Quality Control

In 1924, W.A.Shewhart of Bell Telephone Labs developed a statistical


chart for the control of product variables the beginning of SQC and
SPC.
In the same decade, H.F.Dodge and H.G.Romig of Bell Telephone Labs
developed statistical acceptance sampling instead of 100% inspection.
In 1946,the American Society for Quality Control was formed.
In 1950, W. Edwards Deming, who learnt SQC from Shewhart, taught
SPC & SQC to Japanese engineers and CEOs
In 1954,Joseph M.Juran taught Japanese managements their
responsibility to achieve quality .
In 1960, the first quality control circles were formed. SQC techniques
were being applied by Japanese workers.
1970s US managers were learning from Japan Quality implementation
miracles.
In 1980s TQM principles and methods became popular.(also in auto
industry)
In 1990s ,the ISO 9000 model became the world-wide standard for
QMS.

Customer Types

External and Internal customers


External current, prospective and lost customers
Internal Every person in a process is a customer of the previous
operation.( applies to design, manufacturing, sales, supplies etc.)
[Each worker should see that the quality meets expectations of the next
person in the supplier-to-customer chain ]
TQM is commitment to customer-focus - internal and external
customers.

Customer/Supplier
Outputs to
Chain

Inputs from
external customers

Internal customers

external customers

Internal Customer/Supplier Relationships

Questions asked by people to their internal customers


What do you need from me?
What do you do with my output?
Are there any gaps between what you need and what you
get?
Good team-work and inter-Departmental harmony is
required. Also the leaders role in supervising the internal
customer-supplier chain.

Service Quality

Organisation
Customer Care
Communication
Front-line people
Leadership

Four Improvement Strategies


Repair
Refinement
Renovation
Re-invention

TQM Implementation

Begins with Sr. Managers and CEOs


Timing of the implementation process
Formation of Quality council
Union leaders must be involved with TQM plans implementation
Everyone in the organisation needs to be trained in quality awareness and
problem solving
Quality council decides QIP projects.

Quality Council

The quality council includes CEO and Senior managers of the functional
areas -research, manufacturing, finance, sales ,marketing etc. and one coordinator and a union representative.
Duties- To develop the Quality statements eg. Vision, Mission, Quality policy
statements, Core values etc.
To develop strategic long-term plans and annual quality improvement
programme.
Make a quality training programme
Monitor the costs of poor quality.
Determine the performance measures for the organisation
Always find projects that improve the processes and produce customer
satisfaction.
Establish work-group teams and measure their progress.
Establish and review the recognition and reward system for the TQM system

Quality Statements

Vision Statement a short declaration of what the organization hopes to be


tomorrow.
It creates the commitment, the motivation and the driver for initiating the
mission, objectives, projects, and tasks necessary to realize the vision.
Mission Statement a statement of purpose who we are? who are our
customers? what we do? How we do it?
Objectives
This will based on why the department exists and what are its broad
expected outcome.
Goals

In planning based on the objectives, it is required to seat goals.

Targets make individuals more comfortable with what he has to do within the time
frame.

Targets

Action Plans

Action plans help in systematic study and presentation of the process to achieve the
targets.

Quality Policy is a guide for everyone in the organization ,how they should
provide products and services to the customers.

Meaning of Vision, Mission, etc


What will the organization be in 10 years?

Vision

How to reach?

Mission

Why the department exists and


what are its broad expected outcomes?

Objects

Specific, measurable, attainable, realistic and time-bound


breakup of expected outcome of the department
Breakup of the above to individual specific, short-term outcome

Goals
Targets

What to do, how to do and sequencing of actions of every individual Action plan

Evolution of TQM Philosophy The First Era

According to Feigenbaum (1990), in the increasingly


Competitive World the quality is no longer an optional
extra, it is Essentially a Business Strategy.
Garvin (1989) outlines the shift from Inspection to
Strategic Quality Management & the causes for it.
According to Zaire (1991), the evolution of quality has
moved from two extremes:

From Control Driven to Culturally Driven Quality


From Controlling in to Managing in Quality

The first change signifies the movement of focus from


controlling production & Product / Service standards at
the end of the Business Cycle to the considerations of
quality as the Driving Force of the whole business cycle
spreading throughout the various Stages & Processes of
the business cycle. It Starts and Ends at the End Customer
Customer.

Evolution of TQM Philosophy The Second Era

The emphasis has gradually Shifted from Mechanisms &


Methods of methods of measuring & controlling quality of
products & processes at the Operational Level, to the
total management of quality throughout the business cycle
with flexibility to react to changes & commitment to
improve quality continuously to meet the customer
demands.
Hansen (1990) identifies two Notable Milestones in the
development of quality movement as:

The Transition from one of Manufacture to Mass Production or


the Differential Piece-Rate System (Taylorism
Taylorism), and
The Transition to the Communication oriented industrial
society (electronic
electronic data processing
processing).

Evolution of TQM Philosophy The Latest Era


The Evolution of TQM is the outcome of Four major areas of
development:
1. The first instance of quality according to Taylors principle is to
increase productivity, Inspection should must be separated
from the production process. The emphasis is always was on
Sorting, Grading, Identifying sources of non-Conformance &
Corrective actions.
2. The next stage was Statistical Quality Control
Control, where
performance of process was evaluated by using quality manuals
& Statistical Techniques. It was used to Monitor, Evaluate &
Analyse a manufacturing process.
3. The Third Stage is a New Radical Approach towards Quality
was developed. In this Quality Assurance Phase
Phase, the stress was
on Prevention rather than Rejection & Compliance with the
Customer requirements.

Evolution of TQM Philosophy The Latest Era

This development in the Quality Thought however had the


following short comings

Lack of Focus on Education & Training of Top Management about Quality


Total Emphasis on Quality Circles to solve all the quality problems of a
Company, Neglecting in the process, the Managements commitments to
Quality
Weak Cross-Functional Communication
Lack of Systematic Approach to Quality Cost Analysis
Resistance to Introduction of Quality Improvement Programs

The Theory of TQM has been evolved to overcome these problems


The concept of Total Quality Control (TQC
TQC) proposed by
Feigenbaum (1954
1954)) defines TQC as an effective system for
integrating the Quality Development, Quality Maintenance &
Quality Improvement for full Customer Satisfaction.

Evolution of TQM Philosophy The Latest Era

The evolution of TQM as a Problem-Solving &


Continuous Improvement programme from the early
Controlling Function took place because of varied
reasons.
Sink (1991
1991) identifies the Primary Forcing Functions
behind the need of TQM as:

Global Economy
Complex & Dynamic Technology
Customer Orientation & Expectations
Complex & Dynamic Task Environments
Challenge to the same or more with fewer resources and
A shrinking feasible solution space for many critical problems,
issues & opportunities.

The TQM Era

The evolution of TQM, thus, has primarily been guided by


the realisation of Customer Satisfaction Perspective for
the Survival, Growth & Enhancement of the market.
The need to Bring About A Radical Change in the
Thought Process & Working Approach of management to
meet the new challenges posed by increased competition
& demanding customers required a totally innovative
innovative,
practical & long
long--term approach which on the path of
growth & success
success, leads to the global adaption
adaption, further
synthesis & refining, which in its present state is accepted
as a key for the future by all Organisations world-wide.