Total Quality Management (TQM)

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Note: Attempt all the questions and submit this assignment to the Coordinator of your Study Centre on or
before 31st October, 2020.
1. Why has it become essential to have TQM in organizations in contemporary terms?

Explain giving examples.
Ans:
Total Quality Management (TQM)

Total Quality Management (TQM) is a management framework based on the belief that an organization can build
long-term success by having all its members, from low-level workers to its highest ranking executives, focus on
improving quality and, thus, delivering customer satisfaction.
TQM requires organizations to focus on continuous improvement, or kaizen. It focuses on process improvements
over the long term, rather than simply emphasizing short-term financial gains.
Importance of TQM
TQM can have an important and beneficial effect on employee and organizational development. By having all
employees focus on quality management and continuous improvement, companies can establish and uphold
cultural values that create long-term success to both customers and the organization itself. TQM’s focus on quality
helps identify skills deficiencies in employees, along with the necessary training, education or mentoring to
address those deficiencies.
With a focus on teamwork, TQM leads to the creation of cross-functional teams and knowledge sharing. The
increased communication and coordination across disparate groups deepens institutional knowledge and gives
companies more flexibility in deploying personnel.
Disclaimer/Note
These are just the sample of the answers/solution to some of the questions given in the assignments. Student should
read and refer the official study material provided by the university.
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Benefits of TQM
The benefits of TQM include:
• Less product defects. One of the principles of TQM is that creation of products and services is done right the
first time. This means that products ship with fewer defects, which reduce product recalls, future customer
support overhead and product fixes.
• Satisfied customers. High-quality products that meet customers’ needs results in higher customer satisfaction.
High customer satisfaction, in turn, can lead to increased market share, revenue growth via upsell and word-of-
mouth marketing initiated by customers.
• Lower costs. As a result of less product defects, companies save cost in customer support, product
replacements, field service and the creation of product fixes. The cost savings flow to the bottom line, creating
higher profit margins.
• Well-defined cultural values. Organizations that practice TQM develop and nurture core values around quality
management and continuous improvement. The TQM mindset pervades across all aspects of an organization,
from hiring to internal processes to product development.
Examples of TQM
Automobile manufacturer Toyota is one example of TQM. The adoption of TQM and kaizen at Toyota led to
higher product and work quality at all levels of the organization. Toyota adopted a related practice called statistical
quality control (SQC) in 1949. In 1951, Toyota launched the Creative Idea Suggestion System, which was based
on a suggestion system used at Ford.
In 1965, Toyota was awarded the Deming Application Prize for major advances in quality improvement. In 1994,
the "Toyota Group Executive TQM Training Course" was established, providing TQM training for new
executives. Toyota's TQM initiatives continue to the current day. In 2011, Toyota announced that more than 40
million suggestions (to date) were generated by the Creative Idea Suggestion System.
Disclaimer/Note
2. Perform a comparative assessment of the philosophies of Deming and Juran.
Disclaimer/Note
3. What to you understand by ‘Company Wide Quality Management (CWQM)’? Discuss with
the help of examples the applicability of CWQM for a company.
Ans. When it comes to quality management, there are surprising similarities between what was
suggested in the 80s and what we barely have seen the start of in industry today. In this post, I discuss
how Juran’s CWQM-concept from the mid-1980s is both valid and useful for companies rolling out
global production improvement programs today.
In the book ‘Juran on Quality and Planning’, Juran (1986) introduces the concept of Company-wide
Quality Management (CWQM). It is striking to see how close CWQM—a concept suggested in the 80s—
comes to the concept of modern company-specific production systems (XPSs) (Netland, 2013). Consider
these quotes from the book: ‘CWQM is a systematic approach for setting and meeting quality goals
throughout the company ‘(p. 244)’. ‘The basic reason for taking up CWQM is that companies that have
adopted CWQM are outperforming companies that use methods of the past ‘(p. 248). And ‘In the
absence of some sort of CWQM, a formidable obstacle to meeting quality goals has been the lack of
resources. (…) The CWQM approach, being tied into company-wide business planning, offers a way to
overcome that deficiency “. (p. 258).
Wait a minute… that’s exactly what today’s XPSs are all about: a company-wide approach to
improvement that builds competitiveness. It is true that the goals of an XPS can be defined broader:
improving not ‘just’ Quality but all competitive priorities: like Safety, Delivery, Cost, Flexibility,
Environmental performance, and Morale. But—if we accept the argument of Ferdows and De Meyer’s
(1990) Sandcone model—achieving good performance in the latter factors is only achieved if Quality is
the prime focus of the system. I do not doubt that any of the quality gurus would agree: Focus on the
quality, and the rest will follow.
Then why—25 years after Juran’s book— are companies first starting, or re-starting, company-wide XPS
initiatives? Examples are the Lego Production System, Harley Davidson Operating System, Jotun
Operations System and many, many others. In fact, Juran offers very good explanations for that as well.
Consider these quotes: ‘The prime disadvantage is that CWQM adds to the workload of upper
managers. As we shall see, upper managers must become personally involved in establishing corporate
and divisional quality policies, goals, plans, controls. (…) An understandable reaction of busy upper
managers is to avoid adding to their own overload (…). One form of such avoidance is delegation to
subordinates’ (p. 248). Juran continues to suggest that delegation is a recipe for failure; the organisation
‘needs leadership not cheer-leading (cf. his 7 deadly diseases of Western management style).
Disclaimer/Note
Juran also explains how resistance to change can hamper any attempts to implement CWQM (or an
XPS): “It is a fact that adoption of CWQM takes away some of the autonomy previously enjoyed by the
divisions and departments. Such reduction in autonomy is never welcomed, even if the associated
human relations are harmonious. Where they are less harmonious the problem can become severe’ (p.
266). Again Juran, does not leave us without advice… Here’s his 7 ‘rules of the road’ for dealing with
resistance and achieving a successful implementation of an CWQM in a sub-unit (p. 269):
Provide participation: Engage and involve, early-on.

Provide enough time: (a) No surprises. (b) Start small. (c) Choose the right year.
Keep the proposals free of excess baggage: Focus on the essentials, the rest distract attention.
Work with the recognized leadership of the culture: A culture is best understood by its members.
Treat the people with dignity: Happy people work better.
Reverse the positions: Ask the question; what if I was a member of the culture?
Look at the alternatives: (a) Try a program of persuasion. (b) Offer compromises. (c) Adapt the project
in needed areas. (d) Change the social climate. (e) Forget it.
These advises are as valid today as 25 years ago! For wisdom for the future we have to start reading
books from the past… You can always start with these ones.
4. Why has it become necessary for organizations to promote learning? Discuss with the help
of examples different work practices which promote learning.
Ans.- NEED OF LEARNING & DEVELOPMENT
Disclaimer/Note
Disclaimer/Note
5. Discuss the mechanism of developing an effective implementation methodology for ISO

14000 standards in an organization.
Ans. Implementation: -
Prototype PMS standards have been around for several years, both as industry standards (e.g.,
Responsible Care in the Chemical Industry) and as National Standards. The latter includes EMS
standards published in Great Britain, Japan, Canada and several European countries. Of these,
British Standards BS 7750 became the starting point used by the ISO technical committee to
develop the international standard.
ISO 14000 is, in many ways, a logical extension of the ISO 9000 Quality Management standards
that have been in use globally since 1987. A foundation principle stated in ISO 9000 is that in
order to be successful, an organization needs – among other things – to comply with the
statutory and other requirements of society.
These requirements include “obligations resulting from law as regulations, rules, codes and
other considerations, notably protection of the environment, health, safety, security,
conservation of energy and natural resources.” (ISO 90004-1: Sec. 3.3) ISO 9000 also promotes
a management structure that shifts responsibility for quality from a small group to the whole
organization. In the same manner, ISO 14000 seeks to establish broad ownership of
responsibility within an organization for environmental management.
Five Principles of Environmental Management
Disclaimer/Note
ISO 14000 is, in fact, a series of inter-related standards that provide a systematic framework for
dealing with an organization’s environmental management needs. The document organization
of ISO 9000 has been used extensively in developing the ISO 14000 system. The primary
document, ISO 14000, presents a roadmap to development and implementation of an EMS. ISO
14001 contains the core system elements and will be the standard used for system audit and
registration purposes. Other technical standards provide additional, detailed requirements
concerning specific aspects of the system. The overall relationship among the various
documents is presented in Figure 1.
There is inherent recognition in ISO 14000 that each organization is unique and as a result, the
approach to environmental management is pragmatic, emphasizing that environmental
management is an on-going activity that affects the whole organization. To be effective, policies
and procedures need to be understood by everybody in the organization and the system has to
function as part of its daily work. Strong emphasis is placed on using the “Plan-Do-Check-Act”
cycle to achieve environmental management objectives through continuous improvement.
The standard builds the system elements around five principles:
An organization should focus on what needs to be done – it should ensure commitment to

the EMS and define its policy.
An organization should formulate a plan to fulfill its environmental policy.
For effective implementation, an organization should develop the capabilities and support
mechanisms necessary to achieve its environmental policy, objectives and targets.
An organization should measure, monitor and evaluate its environmental performance.
An organization should review and continually improve its environmental management
system, with the objective of improving its overall environmental performance.
Each of these principles is developed into a set of detailed requirements. For example, Section
4.1, entitled Commitment and Policy, talks about commitment to the system by the senior
management of the organization and requires an initial review to document the organization’s
present state. The intent of this review is to assess the environmental impact of all aspects of
the organization’s activities, to establish policies, set priorities and identify where sources need
to be focused in order to make improvements. Subsequent sections address Planning,
Implementation, Measurement and Evaluation, Review and Improvement.
Voluntary Registration
Disclaimer/Note
Some 80 organizations are accredited in North America to act as Quality System Registrars under
ISO 9000. Registrars provide manufacturers and service organizations with independent, third-
party assessments of their Quality Systems in order to determine whether or not they conform
to the standard and have been implemented effectively. The main thrust of registration is
directed at raising customer confidence but an organization’s internal operations also benefit,
both from the activities that lead up to registration and those required for on-going
maintenance of the system. Extension of the registration process to include Environmental
Management Systems based on ISO 14000 is expected soon after the standard is published.
The registrars are accredited in Canada by the Standards Council of Canada and in the United
States by the Registrar Accreditation Board, whose mandates are to ensure that each registrar
operates its program according to defined standards. These organizations also oversee the
qualifications and competence of the individuals who do the auditing. Accreditation of auditors
already exists in the U.S. and is likely to follow soon in Canada.
Applied to Environmental Management Systems, registration provides an organization with

important feedback concerning the effectiveness of its systems; it also provides an opportunity
for governments to change their regulatory strategy. To date, the European Union has already
established a system of voluntary registration under its Eco-Management and Audit Scheme. In
North America, Article 9 of NAFTA encourages the use of international standards as a basis for
environmental management.
This emphasis is reinforced in the side agreements regarding environmental cooperation and is
also the subject of on-going meetings involving Canada, the United States, Mexico and Chile.
Proposed changes to the Canadian Environmental Protection Act include the use of
international standards and encourage the voluntary registration process. These changes are
expected to be included in the Act when it is re-legislated within the next 18 months. In Ontario,
the MOEE is currently working with the Canadian Manufacturers’ Association and CSA to provide
training and to promote use of ISO 14000.
A Vision for the Future
Disclaimer/Note
An important trend in environmental legislation is an increased emphasis on pollution

prevention; Environmental Management Systems based on ISO 14000 provide a delivery
mechanism. Organizations who already have ISO 9000-based Quality Management Systems in
place will find the transition to ISO 14000 implementation to be a relatively small step that
makes greater use of the management apparatus they already have. Having an EMS in place
increases the confidence of customers, suppliers, shareholders, regulators and the general
public in an organization by demonstrating that it is committed to specific environmental
policies and objectives and is actively working toward achieving them.
Based on experience with ISO 9000, organizations will find that the implementation process
uncovers opportunities for waste reduction and cost savings. They can also expect to benefit
economically from linking environmental objectives with overall organizational goals, which, in
turn, provides opportunities to focus resources where they will do the most good. Although not
a panacea, ISO 14000 will provide an important set of tools for organizations to develop sound
environmental management and to contribute to society’s broader need for sustainable
development.
Disclaimer/Note

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1. Why has it become essential to have TQM in organizations in contemporary terms?

Total Quality Management (TQM)

The benefits of TQM include:

2. Perform a comparative assessment of the philosophies of Deming and Juran.

Provide participation: Engage and involve, early-on.

Ans.- NEED OF LEARNING & DEVELOPMENT

5. Discuss the mechanism of developing an effective implementation methodology for ISO

The standard builds the system elements around five principles:

An organization should focus on what needs to be done – it should ensure commitment to

Applied to Environmental Management Systems, registration provides an organization with

An important trend in environmental legislation is an increased emphasis on pollution

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