Total Quality Management (TQM)

 The term TQM as described by Harris and McCaffer

(2002) involves all activities that organizations'
execute to develop and enhance their policy and
quality such as quality improvement, control,
assurance and planning.

 Iruobe, et al (2012) also describes TQM as long-term

commitment of organization towards the incessant
quality improvement with the active involvement and
contribution of all members.
Manufacturing Quality Vs. Service
Quality
 Manufacturing quality focuses on tangible
product features
◦ Conformance, performance, reliability, features,
durability, serviceability

 Service organizations produce intangible

products that must be experienced
◦ Quality often defined by perceptional factors like
courtesy, friendliness of staff, promptness in
resolving complaints, atmosphere, waiting time,
consistency
Dimensions of Quality for Manufacturing vs.
Service Organizations
 Manufacturing  Service
◦ Conformance to ◦ Consistency
specifications ◦ Responsiveness to
◦ Performance customer needs
◦ Reliability ◦ Courtesy / friendliness
◦ Features ◦ Timeliness /
◦ Durability promptness
◦ Serviceability ◦ Atmosphere
Evolution of TQM
Traditional view of the cost of
conformance
Taguchi view of the cost of non-
conformance – The Taguchi loss
function
Four Dimensions of Quality
 Quality of design
◦ Determining which features to include in the final design

 Quality of conformance to design

◦ Production processes are set up to meet design
specifications

 Ease of use
◦ Instructions, operation, maintenance, safety

 Post-sale service
◦ Responsiveness, rapid repair, p.m., spare parts
Cost of Quality – 4 Categories
SEVEN PROBLEM SOLVING
TOOLS
 Cause-and-Effect Diagrams
 Flowcharts
 Checklists
 Control Charts
 Scatter Diagrams
 Pareto Analysis
 Histograms
Cause and Effect Diagram
 Called Fishbone Diagram
 Focused on solving identified quality
problem
A General Cause and Effect
Diagram
Flow Charts
 Used to document the detailed steps in a
process
 Often the first step in Process Re-
Engineering
Checklist
 Simple data check-off sheet designed to
identify type of quality problems at each
work station; per shift, per machine, per
operator
Control Charts
 Important tool used in Statistical Process
Control
 The UCL and LCL are calculated limits
used to show when process is in or out
of control
Scatter Diagrams
 A graph that shows how two variables are
related to one another
 Data can be used in a regression analysis
to establish equation for the relationship
Pareto Analysis
 Technique that displays the degree of importance for
each element
 Named after the 19th century Italian economist
 Often called the 80-20 Rule
 Principle is that quality problems are the result of
only a few problems e.g. 80% of the problems caused
by 20% of cause
Histograms
 A chart that shows the frequency
distribution of observed values of a variable
like service time at a bank drive-up
window
 Displays whether the distribution is
symmetrical (normal) or skewed
Quality Awards and Standards
 Malcolm Baldrige National Quality Award
 The Deming Prize
 ISO 9000 Certification
 ISO 14000 Standards
MBNQA- What Is It?
 Award named after the former Secretary
of Commerce – Regan Administration
 Intended to reward and stimulate quality
initiatives
 Given to no more that two companies in
each of three categories; manufacturing,
service, and small business
 Past winners; FedEx, 3M, IBM, Ritz-Carlton
 Typical winners have scored around 700
points
The Deming Prize
 Given by the Union of Japanese Scientists
and Engineers since 1951
 Named after W. Edwards Deming who
worked to improve Japanese quality after
WWII
 Not open to foreign companies until 1984
 Florida P & L was first US company
winner
ISO Standards
 ISO 9000 Standards:
◦ Certification developed by International Organization
for Standardization
◦ Set of internationally recognized quality standards
◦ Companies are periodically audited & certified
◦ ISO 9000:2000 QMS – Fundamentals and
Standards
◦ ISO 9001:2000 QMS – Requirements
◦ ISO 9004:2000 QMS - Guidelines for Performance
◦ More than 40,000 companies have been certified
 ISO 14000:
◦ Focuses on a company’s environmental responsibility
Objectives of TQM
 Meeting the customer’s requirements is the primary
objectives and the key to organizational survival and
growth.

 The second objective of TQM is continuous

improvement of quality. The management should
stimulate the employees in becoming increasingly
competent and creative.

 Third, TQM aims at developing the relationship of

openness and trust among the employees at all levels
in the organization.
Elements of TQM
 Be customer focused.
◦ It requires the company to check customers'
attitudes regularly and includes the idea of
internal customers as well as external ones.

 Do it right the first time

◦ This means avoiding rework, i.e., cutting the
amount of defective work.
Elements of TQM
 Constantly improve
◦ Continuous improvement allows the company
gradually to get better.

 Quality is an attitude.
◦ Every one has to be committed to quality. That means
changing the attitude of the entire workforce, and
altering the way the company operates.

 Telling staff what is going on.

◦ This involves improved communication. Typically, it
includes team briefing.
Elements of TQM
 Educate and train people
◦ An unskilled workforce makes mistakes. Giving more skills
to workers means they can do a wider range of jobs, and
do them better. It also means educating staff in the
principles of TQM, which is a whole new style of working.

 Measure the work.

◦ Measurement allows the company to make decisions
based on facts, not opinion. It helps to maintain standards
and keep processes within the agreed tolerances.

 Top management must be involved.

◦ If senior management is not involved, the programme will
fail.
Elements of TQM
 Make it a good place to work
◦ Many companies are full of fear. Staffs are afraid of the sack, their
boss and making mistakes. There is no point in running a TQM
program unless the company drives out fear.

 Introduce team work

◦ Team work boosts employees' morale. It reduces conflict and
solves problem by hitting them with a wider range of skills. It
pushes authority and responsibility downwards and provides
better, more balanced solutions.

 Organize by process, not by function

◦ This element of TQM seeks to reduce the barriers that exist
between different departments, and concentrates on getting the
product to the customer.
REASONS for failure
TQM fails because:

• Top management sees no reason for change.

• Top management is not concerned for its staff.

• Top management is not committed to the TQM

programme.

• The company loses interest in the programme

after six months.
REASONS for failure
 The workforce and the management do not agree on
what needs to happen.

 Urgent problems intervene.

 TQM is imposed on the workforce, which does not

inwardly accept it.

 No performance measure or targets are set, so

progress cannot be measured.

 Processes are not analyzed, systems are weak and

procedures are not written down.