Total Quality Management

1. Discuss the 14 points Deming’s TQM philosophy.

2. What are the potential benefits of TQM
3. Briefly explain the comparison of Traditional management and TQM
4. Define TQM in terms of models
5. Explain the role of employee involvement in TQM
6. What are Principles of TQM?
7. Briefly outline the quality movement in Japan and how it emerged to its present status.
8. Explain the concepts of TQM.
9. What the role of client in quality control and quality assurance of a project.
10. What are the characteristics of TQM.
11. Explain TQM in developing nations.
1. Discuss the 14 points Deming’s TQM philosophy.
Deming’s Fourteen Points, for management to enable efficiency within an organisation, were
originally presented in his book Out of Crises. The Fourteen Points are applicable to all
organisations and are:
1. Constancy of purpose: Create constancy of purpose for continual improvement of
products and service, and allocate resources to cater to long term needs rather than short-term
profitability with a plan to become competitive, stay in business and provide jobs.
2. The new philosophy: Adopt the new philosophy for one can no longer accept delays,
mistakes and defective workmanship. Transformation of the Western management style is
necessary to halt the continued decline in the industry.
3. Cease dependence on inspection: Eliminate the need for mass inspection as a way to
achieve quality by building quality into the product in the fi rst place. Demand statistical
evidence of built-in quality in both manufacturing and purchasing functions.
4. End lowest tender contracts: End the practice of awarding business contracts solely on
the basis of price tags. Instead, go for meaningful measures of quality along with price.
Reduce the number of suppliers for the same item by eliminating those that do not qualify
against the statistical yardstick of quality. Th e aim is to minimize total cost, not merely the
initial cost. Purchasing managers now have their task cut out and must learn their
responsibilities.
5. Improve every process: Constantly improve every process involved in the stages of
planning, production and service. Search continually for problems in order to improve every
activity in the company because better quality leads to increased productivity and decreased
costs. It is the management’s job to continually work on all aspects of the system (design,
incoming materials, maintenance, improvement of machines, training, supervision, retraining,
etc.)
6. Institute training on the job: Institute modern methods of training on the job, including
management to make maximum use of all employees. New skills are required to keep up with
changes in materials, methods, product design, machinery, techniques and service.
7. Institute leadership: Adopt and institute leadership, which is aimed at helping people do a
better job. The responsibilities of managers and supervisors must be changed to emphasize on
quality rather than quantity. This will automatically improve productivity. The management
must ensure that immediate action is taken on reports of inherited defects, maintenance
requirements, poor tools, fussy operational definitions and other conditions detrimental to
quality.
8. Drive out fear: Encourage effective two-way communication and other means to drive out
fear throughout the organization so that all employees are able to work effectively and ensure
greater productivity for the company.
9. Breakdown barriers: Breakdown barriers between people in diff erent divisions of the
organization such as R&D, Sales, Administration and Production. Th ey must work in teams
to tackle problems that may be encountered.
10. Eliminate exhortations: Eliminate use of slogans, posters and exhortations demanding
zero defects and new level of productivity from the workforce, without providing
commensurate methods. Such exhortations only create adversarial relationships; the bulk of
the cases of low quality
and low productivity belong to the system and; thus, lie beyond the power of the workforce.
11. Eliminate arbitrary numerical targets: Eliminate work standards that prescribe
numerical quotas for the workforce and numerical goals for people in the management.
Substitute these with aids and helpful supervision and use statistical methods for continual
improvement of quality and productivity.
12. Permit pride of workmanship: Remove the barriers that rob hourly workers and people
in the management of their rights to pride of workmanship. Th is implies the abolition of the
annual merit rating (appraisal of performance) and management by objectives. Again, the
responsibility of managers, supervisors and foremen must be changed from sheer numbers to
quality.
13. Encourage education: Institute a vigorous programme of education and encourage self-
improvement. What an organization needs is not just good people; it needs people who
improve with education. A workforce rooted in knowledge will always enable an
organization to be competitive.
14. Top management’s commitment: A clearly defined commitment by the top
management to constantly improve quality and productivity and reinforcement of obligations
to implement all these principles is always beneficial to the workforce and the organization.
Create a structure in the top management whose main task will be to push these 13 points
constantly and take action in order to accomplish the transformation.
Quality
Quality is the degree of excellence at an acceptable price and control of variability at an
acceptable cost.

Quality is a measure of how closely a good or service conforms to specified standards.

Total quality is defined as the mobilisation of the whole organisation to achieve quality
continuously, economically and in entirety.

Quality Management
It is a method for ensuring that all the activities necessary for the design, development and
implementation of a product or service are effective and efficient with respect to the system and
its performance.

Total Quality Management

DEFINITION – BRITISH STANDARD(BS)7850

“Management philosophy and company practices that aim to harness the human and material
resources of an organisation in the most effective way to achieve the objectives of the
organisation.

A management approach that tries to achieve and sustain long term organisational success by
encouraging employee feedback and participation, satisfying customer needs and expectations,
respecting societal values and beliefs and obeying governmental statutes and regulations.

TQM is an integrated eff ort designed to improve quality performance at every level of the
organization.

Total: Quality involves everyone and all the activities performed in the company.

Quality: Conformance to the requirements (meeting customer requirements).

Management: Quality can and must be managed.

Therefore, TQM is a process for managing quality.

Principles of TQM
1. CUSTOMER FOCUSED ORGANISATION
2. LEADERSHIP
3. INVOLVEMENT OF PEOPLE
4. PROCESS APPROACH
5. SYSTEMS APPROACH TO MANAGEMENT
6. CONTINUOUS IMPROVEMENT
7. FACTUAL APPROACH TO DECISION MAKING
8. MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIP
1. Customer-focused organization: Organizations depend on their customers and, therefore,
should focus on understanding the current and future needs of the customer, meet customer
requirements and strive to exceed customer expectations while satisfying them. Customer-
focused organizations produce products and services that are needed by the customer and
provide customer satisfaction.

2. Leadership: An organization’s senior leaders need to set directions and create clear and
visible quality values, high expectations and a customer-oriented approach. Th ese values,
directions and expectations need to address all stakeholders. Th e leaders need to ensure the
creation of strategies, systems and methods for achieving excellence. Strategies and values
should help guide all activities and decisions of the organization. Th e senior leaders must
commit to the development of the entire workforce and should encourage participation,
learning, innovation and creativity by all employees.
3. Involvement of people: People involvement is one approach to improving quality and
productivity. Involving people at all levels enables full utilization of their abilities for the
organization’s benefit. This can be done by providing a good corporate work culture,
providing an interesting work system and work environment and building the capabilities of
people to perform the assigned tasks in the organization.
4. Process approach: A desired result is achieved more effi ciently when related resources and
activities are managed as a process.
5. Systems approach to management: Identifying, understanding and managing a system of
interrelated processes for a given objective contributes to the efficacy and efficiency of the
organization.
6. Continuous improvement: A permanent objective of the organization is that it should
continuously improve performance by addressing the needs of all interested parties.
7. Factual approach to decision making: Effective decisions are based on the logical or
intuitive analysis of data and information.
8. Mutually beneficial supplier relationships: The ability of the organization and its suppliers
to create value is enhanced by mutually beneficial relationships.
Concepts of TQM.
1. Quality at source
2. Quality is free or quality cost less
3. Do it right the first time – DIRFT
4. Acceptable quality levels
5. Cost of quality
6. Competitive benchmarking
7. Involvement of all concerned
8. Synergy in team work
9. Ownership and elements of Strategic management.
10. Recognition and rewards
11. Managers as role models.
BENEFITS OF TQM
There are many advantages of TQM. Essentially, TQM refers to the total quality in fulfilling
the needs
of the customers, the quality of the products and the quality of life (at the workplace and
home).
Having these focuses leads to better business results and also benefits business in several
different
ways. Here are some of the benefits of TQM:
1. Creates a good corporate culture: Total quality management is an approach where the
customer is the focal point of the business rather than the department. Therefore, quality is
transformed from an issue of the production department to a strategic business entity to meet
global challenges. The TQM philosophy revolves around developing a culture that advocates
total commitment to customer satisfaction through continuous improvement.
2. Better reviews from customers: Another benefit of TQM is that customers and clients are
highly satisfied with the performance. Given the quality assurance testing procedures, the
products of the company will constantly meet the requirements and needs of clients and
customers. Therefore, the customers stay with the company longer, deepen their relationship
with the company and demonstrate less price sensitivity while recommending the company’s
products or services to others. Customer satisfaction and high performance results also
possibly lead to high reviews in different publications and newspapers, which further
enhances the image of the company and in turn that of the business.
3. Better performance from employees: Through TQM, there is often more attention placed
on meeting the needs of the employees or internal customers. The training given to the
employees as part of the programme can boost employee morale at the workplace resulting in
employees working harder to achieve the goals of TQM.
TQM is closely linked to the workplace and the company environment. Often, the
management offers incentives to employees in the form of higher salaries or wages, which
boost performance levels and increase productivity.
The benefits derived from TQM are summarized below:
• Encourages a strategic approach to management at the operational level by involving
multiple
departments in cross-functional improvements and systemic innovation processes.
• Provides high returns on investment through improving efficiency.
• Works equally well in both service and manufacturing sectors.
• Allows organizations to take advantage of developments that enable managing operations as
cross functional processes.
• Creates an orientation toward inter-organizational collaboration and strategic alliances by
establishing a culture of collaboration among the different departments within an
organization.

BENEFITS OF TQM
THE ROLE OF EMPLOYEE INVOLVEMENT IN TQM