Quality Management

Lect. 3
 Why TQM ?
Meeting Customer Requirements
Reducing Development Cycle Times
Just In Time/Demand Flow Manufacturing
Product / process Improvement .
Reducing Product and Service Costs
Improving Administrative Systems
 What is TQM?
TQM is the integration of all functions and processes
within an organization in order to achieve continuous
improvement of the quality of goods and services. The goal
is customer satisfaction.

What does TQM mean?

The way of managing organization to achieve excellence
• Total – everything
• Quality – degree of excellence
• Management – art, act or way of organizing, controlling,
planning, directing to achieve certain goals
 Anther Way to Put It
• At it’s simplest, TQM is all managers leading
and facilitating all contributors in everyone’s two
main objectives:
(1) Total Customer satisfaction through
quality products and services; and
(2) Continuous Improvements to processes,
systems, people, suppliers, partners,
products, and services.
 Productivity and TQM

• Traditional view:
Quality cannot be improved without significant
losses in productivity.
• TQM view:
Improved quality leads to improved productivity.
 The TQM System
Objective Continuous
Improvement

Principles Customer Process Total

Focus Improvement Involvement

• Leadership
Elements • Education and Training
• Supportive structure
• Communications
• Measurement
 TQM &Continuous Improvement

• 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 versus Traditional Approach

Traditional Approach Continuous Improvement

• Market-share focus
• Individuals
• Focus on ‘who” and “why”
• Short-term focus
• Status quo focus
• Product focus
• Innovation
• Customer focus
• Cross-functional teams
• Focus on “what” and “how”
• Long-term focus
• Continuous improvement
• Process improvement focus
• Problem solving
Effect of Quality Improvement

Improve Quality (Product/Service)

Increase Productivity (less rejects, faster job)

Lower Costs and Higher Profit

Business Growth, Competitive, Jobs, Investment

 Main Steps of The TQM approach
1- Demonstrate Leadership
2- Build Awareness
3- Open and Maintain lines of communications
4- Create a constancy of purpose
5-Focus on the customer . Find out what the customer needs .
6- Choose early efforts in visible area critical to success
7- Develop Team Work
8- Provide support, Training and education
9- Build trust and respect
10- Create an environment in which continuous improvement is a
way of life
11- Continuously improve all processes
12- Expand culture to suppliers
 Main Steps of The TQM approach

Step 1 - Demonstrate Leadership

 Take the initiative
 Demonstrate commitment
 Create more leaders
 Guide the efforts of others
 Remove roadblocks & barriers
 Main Steps of The TQM approach

Step 2- Build Awareness

 Build your personal awareness
 Help your managers become more aware
 Help your subordinates become more aware
 Share the concept with small leaders
 Inform customers and suppliers
 Main Steps of The TQM approach

Step 3 - Open and Maintain lines of communications

 Open the communication processes
 Keep everyone informed
 Main Steps of The TQM approach

Step 4 - Create a constancy of purpose

 Examine your organization Mission
 Take a long term view
 Establish goals
 Effectively deploy policy throughout the organization
 Treat goals and performance carefully
 Align overall improvement activities with organizational goals
 Main Steps of The TQM approach

Step 5 - Focus on customer

 Link organizational purpose to Customer Satisfaction
 Identify Internal & External Customers
 Understand Customer needs, expectations and requirements
 Establish routine and meaningful dialogue with customers
 Listen to the customer
 Involve the customer in planning and decision making
 Main Steps of The TQM approach
Step 6 - Choose early efforts in visible area Critical to success
Step 7- Develop Team Work
Step 8- Provide support, training & education
Step 9 - Build trust and respect
Step10 -Create an environment in which continuous improvement
is a way of life
Step 11- Continuously improve all processes
Step 12- Expand culture to suppliers
Elements of TQM & Implementation
 Implementing TQM
• Successful Implementation of TQM
 Requires total integration of TQM into day-
to-day operations.
• Causes of TQM Implementation Failures
 Lack of focus on strategic planning and core
competencies.
 Obsolete, and organizational cultures.
 Implementation of TQM
For TQM to be successful, the organization must concentrate
on the following key elements:

Integrity
Trust
Training
Teamwork
Communication
Leadership
 TQM Compared to the ISO 9000
• ISO 9000 is a Quality System Management Standard.
• TQM is a philosophy of perpetual improvement.
• The ISO Quality Standard sets in place a system to deploy policy
and verifiable objectives.
• An ISO implementation is a basis for a TQM implementation.
Where there is an ISO system, about 75 percent of the steps are
in place for TQM.
• The requirements for TQM can be considered ISO plus.
• In short, implementing TQM is being proactive concerning
quality rather than reactive.
 Quality circles

• Teams of workers and supervisors that meet regularly to

address work-related problems involving quality and
productivity.
• Developed by Kaoru Ishikawa at University of Tokyo.
• Became immediately popular in Japan as well as USA.
• Lockheed Missiles and Space Division was the leader in
implementing Quality circles in USA in 1973 (after their visit
to Japan to study the same).
• Typically small day-to-day problems are given to quality
circles. Since workers are most familiar with the routine tasks,
they are asked to identify, analyze and solve quality problems
in the routine processes.
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Quality Circle Organization
8-10 members
Same area
Supervisor/moderator

Training
Presentation Group processes
Implementation Data collection
Monitoring Problem analysis

Problem
Solution Identification
Problem results List alternatives
Consensus
Brainstorming
Problem
Analysis
Cause and effect
Data collection
and analysis