In partial fulfillment of the course requirement

Master in Business Administration

Production and Operations Management

ANALYSIS REPORT
(Total Quality Management)

Submitted by:
ROSE ANNE P. PALENCIA

Submitted to:
GIRLY H. NAVAL, DBA
 2020
INTRODUCTION

When people use the word “quality,” it is usually as a synonym for “good.” Many brands tout
their products as “high quality” or “superior quality” in just this way without really defining
what the characteristics of “quality” are. Quality is generally referred to a parameter which
decides the inferiority or superiority of a product or service. It is a measure of goodness to
understand how a product meets its specifications.

According to the definitive text, Total Quality: A User’s Guide for Implementation, Total
Quality Management (TQM) is a management technique based on the idea that all
“employees continuously improve their ability to provide on-demand products and services
that customers will find of particular value.” In a TQM effort, all members of an organization
participate in improving processes, products, services, and the culture in which they work.

Primary Elements of TQM

Here are the elements of total quality management:

1. Customer-focused: The customer ultimately determines the level of quality. No

matter what an organization does to foster quality improvement—training employees,
integrating quality into the design process, or upgrading computers or software—the
customer determines whether the efforts were worthwhile.
2. Total employee involvement: All employees participate in working toward common
goals. Total employee commitment can only be obtained after fear has been driven
from the workplace, when empowerment has occurred, and when management has
provided the proper environment. High-performance work systems integrate
continuous improvement efforts with normal business operations. Self-managed work
teams are one form of empowerment.
3. Process-centered: A fundamental part of TQM is a focus on process thinking. A
process is a series of steps that take inputs from suppliers (internal or external) and
transforms them into outputs that are delivered to customers (internal or external).
The steps required to carry out the process are defined, and performance measures are
continuously monitored in order to detect unexpected variation.
 4. Integrated system: Although an organization may consist of many different
functional specialties often organized into vertically structured departments, it is the
horizontal processes interconnecting these functions that are the focus of TQM.
Everyone must understand the vision, mission, and guiding principles as well as the
quality policies, objectives, and critical processes of the organization. Business
performance must be monitored and communicated continuously.
An integrated business system may be modeled after the Baldrige Award criteria
and/or incorporate the ISO 9000 standards. Every organization has a unique work
culture, and it is virtually impossible to achieve excellence in its products and services
unless a good quality culture has been fostered. Thus, an integrated system connects
business improvement elements in an attempt to continually improve and exceed the
expectations of customers, employees, and other stakeholders.
5. Strategic and systematic approach: A critical part of the management of quality is
the strategic and systematic approach to achieving an organization’s vision, mission,
and goals. This process, called strategic planning or strategic management, includes
the formulation of a strategic plan that integrates quality as a core component.
6. Continual improvement: A large aspect of TQM is continual process improvement.
Continual improvement drives an organization to be both analytical and creative in
finding ways to become more competitive and more effective at meeting stakeholder
expectations.
7. Fact-based decision making: In order to know how well an organization is
performing, data on performance measures are necessary. TQM requires that an
organization continually collect and analyze data in order to improve decision making
accuracy, achieve consensus, and allow prediction based on past history.
8. Communications: During times of organizational change, as well as part of day-to-
day operation, effective communications plays a large part in maintaining morale and
in motivating employees at all levels. Communications involve strategies, method,
and timeliness.

These elements are considered so essential to TQM that many organizations define them, in
some format, as a set of core values and principles on which the organization is to operate.
The methods for implementing this approach come from the teachings of such quality leaders
as Philip B. Crosby, W. Edwards Deming, Kaoru Ishikawa, and Joseph M. Juran.
7 Important Principles of Total Quality Management

1. Quality can and must be managed.

Many companies have wallowed in a repetitive cycle of chaos and customer complaints.
They believe that their operations are simply too large to effectively manage the level of
quality. The first step in the TQM process, then, is to realize there is a problem and that it can
be controlled.

2. Processes, not people, are the problem.

If the process is causing problems, it would not matter how many times the company hire
new employees or how many training sessions they put them through. Correct the process
and then train their people on these new procedures.

3. Do not treat symptoms, look for the cure.

Patching over the underlying problems in the process will never help the company to fully
reach its potential. If, for example, if the shipping department is falling behind, thru proper
investigation it may find that it is because of holdups in manufacturing. Therefore, TQM
suggest to go for the source to correct the problem.

4. Every employee is responsible for quality.

Everyone in the company, from the workers on the line to the upper management, must
realize that they have an important part to play in ensuring high levels of quality in their
products and services. Everyone has a customer to delight, and they must all step up and take
responsibility for them.

5. Quality must be measurable.

A quality management system is only effective when the business can quantify the results.
They need to see how the process is implemented and if it is having the desired effect. This
will help the management set their goals for the future and ensure that every department is
working toward the same result.

6. Quality improvements must be continuous.

Total Quality Management is not something that can be done once and then forgotten. It is
not a management “phase” that will end after a problem has been corrected. Real
improvements must occur frequently and continually in order to increase customer
satisfaction and loyalty.

7. Quality is a long-term investment.

Quality management is not a quick fix. For example, a company can purchase quality
management software that will help them get things started, but they should understand that
real results will occur immediately. TQM is a long-term investment, and it is designed to help
gain long-term success.

TQM tools into an environmental quality framework including:

1. Plan, Do, Check, Act (PDCA) Cycle

a. Plan
i. Identify the process which requires continuous improvement.
ii. Locate the problem area.
iii. Define the problem.
iv. Project the expected results.
v. Identify the best method for solving.
vi. Set targets for solving the problem.
vii. Preparing the resources.
viii. Prepare a time schedule.
b. Do
i. Proper training.
ii. Improvement activity has to be taken up.
iii. Commitment on personnel involvement.
c. Check
i. Methodology and the outcomes are compared with the plans already made.
ii. Gap existing if any identified.
d. Act. Involves either standardization or non-conformance analysis.
2. Fishbone Diagram. A useful way of mapping the inputs that effect quality. It is also
a useful technique for opening up thinking in problem solving. The effect or problem
being investigated is shown at the end of a horizontal arrow; potential causes are then
shown as labelled arrows entering the main cause arrow. Each arrow may have other
 arrows entering it as the principal causes or factors are reduced to their sub-causes;
brainstorming can be effectively used to generate the causes and sub-causes.
3. Pareto Charts. Pareto Analysis can be used to analyze the ideas from a brainstorming
session. It is used to identify the vital few problems or causes of problems that have
the greatest impact. A Pareto diagram or chart pictorially represents data in the form
of a ranked bar chart that shows the frequency of occurrence of items in descending
order. Usually, Pareto diagrams reveal that 80% of the effect is attributed to 20% of
the causes.
4. Control Charts. It is used to monitor processes that are in control, using means and
ranges. It represents data, e.g., sales, volume, customer complaints, in chronological
order, showing how the values change with time. In a control chart each point is given
individual significance and is joined to its neighbors.
5. Flow Charts. This is a powerful technique for recording, in the form of a picture,
exactly what is done in a process. There are certain standard symbols used in classic
flowcharts, and these are: If a flowchart cannot be drawn using these symbols, then
the process is not fully understood. The purpose of the flowchart is to learn why the
current process operates the way it does and to conduct an objective analysis, to
identify problems and weaknesses, unnecessary steps or duplication and the
objectives of the improvement effort.

CONCLUSION

Quality has always been an important issue in the manufacture of goods and services. With
the environment in which organizations operate have becoming more turbulent, organizations
are increasingly concerned with obtaining a sustainable competitive edge. This is where Total
Quality Management takes place.

The concept of TQM can be found right in its name: The word “total” implies that all
employees in the organization, from development to production to fulfillment, are obligated
to improve operations. And “management” insinuates that this methodology should be a
focused effort. Therefore, a successful TQM implementation need sufficient education and
training, supportive leadership, consistent support of top management, customer focus,
employee involvement, process management and continuous improvement of processes.
REFERENCES

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