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TOTAL QUALITY MANAGEMENT

At the end of this course, the students should be able to:

Demonstrate the ability to execute

quality management and performance
approaches in building and sustaining
high-performance organizations.

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TOTAL QUALITY MANAGEMENT
At the end of this course, the students should be able to:

Identify the importance of quality in the

global economy through managerial
and technical case problems.

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TOTAL QUALITY MANAGEMENT
At the end of this course, the students should be able to:

Apply the quality management systems tools

and techniques in a complex organizational
environment to achieve performance
excellence

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TOTAL QUALITY MANAGEMENT
At the end of this course, the students should be able to:

Develop a business-oriented approach

to quality management systems as a
professional and effective quality
manager.

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TOTAL QUALITY MANAGEMENT
At the end of this course, the students should be able to:

Expand critical thinking and

quantitative skills through real and
practical quality applications and
practices.

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OPERATION
MANAGEMENT
Total Quality
Management
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TOTAL QUALITY MANAGEMENT
Q U A L I T Y

Today, there is no single universal definition of quality. Some people view quality as
“performance to standards
TOTAL QUALITY MANAGEMENT
Q U A L I T Y

Others, view it as “meeting the customers needs” or “satisfying the customer”

TOTAL QUALITY MANAGEMENT

Quality Defined
TOTAL QUALITY MANAGEMENT

Quality Defined
TOTAL QUALITY MANAGEMENT

Quality Defined

quality such as poor, good and

excellent.
TOTAL QUALITY MANAGEMENT

Quality Defined

Permanent attribute
TOTAL QUALITY MANAGEMENT

Quality Defined

Need based or expectation

TOTAL QUALITY MANAGEMENT

Common Characteristics of Quality

Conformance to specification
How well a product or service
meets the targets and tolerance
determined by its designers.
TOTAL QUALITY MANAGEMENT

Common Characteristics of Quality

Fitness for use.

A definition of quality that

evaluates how well the product
performs for its intended use.
TOTAL QUALITY MANAGEMENT

Common Characteristics of Quality

Value for price paid.

Quality defined in terms of

product or service usefulness for
the price paid.
TOTAL QUALITY MANAGEMENT

Common Characteristics of Quality

Support Services.

Quality defined in terms of the

support provided after the
product or service is purchase.
TOTAL QUALITY MANAGEMENT

Common Characteristics of Quality

SATISFYING CUSTOMER
EXPECTATIONS AND
UNDERSTANDING THEIR NEEDS
AND FUTURE REQUIREMENT

.
Importance of Quality

1. The quality of goods and

services can impart a
competitive edge to an
organization

2. The importance of quality

is stated in the sentence-
“NO quality, no sales,, no
profit, No profit , no jobs.
QUALITY

Is 99.9% sufficient enough to meet

quality requirements?
Is 99.9% really good enough

If things only work correctly 99.9 of the time

12 newborns will be given to the wrong parents daily

50 newborn babies dropped each day by doctors.
Two planes landed at Chicago’s O’Hare airport will be unsafe every day
2.5 million books will be shipped with the wrong covers.
Is 99.9% really good enough

If things only work correctly 99.9 of the time

315 entries in Webster’s Dictionary will be misspelled

114,500 mismatched pairs of shoes will be shipped/year
20,000 incorrect drug prescription per year
500 incorrect surgical operations per week
22,000 cheques per hour deducted from wrong accounts
Is 99.9% really good enough

If things only work correctly 99.9 of the time

32,000 missed hearbets per person each year

Lastly, I might add that it also means that some 10+ attending classes here in
the MSTIP will received report cards showing incorrect grades, every semester
Why Quality is important

A. Clients & users expect quality

B. Poor quality results in “rework” at additional cost

C. Poor quality results in problem that can be difficult to diagnose and solve

D. Poor quality can cost lives.

Why is quality important for
organization

1. Increase productivity and

competitiveness
2. Creating standard of meeting
customer expectation
3. Enhance Business Reputation

4. Build Loyalty
Dimension of Quality

PRODUCT QUALITY

▪ Functionality
▪ Reliability
▪ Usability
▪ Maintainability
▪ Efficiency
▪ Portability
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Dimension of Service Quality
Dimension of Service Quality

SERVICE QUALITY

▪ Time
▪ Timeliness
▪ Completeness
▪ Courtesy
▪ Consistency
▪ Accessibility and Convenience
▪ Accuracy
▪ Responsiveness'
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Who are the customers

▪ Either internal or external

▪ Individual or groups of person
or entity
▪ Use, buy. Further process
distribute or affected by the
product
▪ The customer is the real
“BOSS”
What customers require?

▪ External customers do not care

about the process but how they
are “processed”
▪ They do not care about our
cost but on price. Delivery &
quality of product
▪ To satisfy, external customer.
Internal customer must be
satisfied first.
▪ Do not argue with customers.
You may win the argument but
loses the customer
What customers require?

▪ Satisfy, delight & surprise your

customer:
➢ Customer satisfaction-when customer
requirements & expectations are met
➢ Customer requirements-are stated need and
wants
➢ Customer Delight-when requriments *
expectations are exceeded
➢ Customer Surprise-how to keep customers
happy & loyal non-stop that they will always
come back.
▪ Everyone in the organization
should be customer focused or
oriented.
 What is Total Quality
Management?

• Total Quality Management (TQM) is an

organizational management approach
that focuses on producing quality
products and services to fulfill
customer needs. As a quality
management technique, TQM involves
all workers to maintain high standards
of work across the entire company.
Implementing TQM can help :
• improve employee productivity,
• increase customer satisfaction, and
• achieve competitive advantage.
 What is Total Quality
Management?

•TQM refers to
a quest for
quality in an
organization.
TQM Approach
1. Find what the customers want.
2. Design a product or service that will meet
(or exceed) what customers want
3. Design processes that facilitate doing
the job right the first time
4. Keep track results, and use them to
guide improvement in the system

5. Extend this concept throughout the

supply chain,

6. Top management must be involved and

committed.
 Total Quality Management
TOTAL= involvement of all
levels in the organization

QUALITY-degree of excellence
and conformance to agreed
requirements

MANAGEMENT=act, and
manner of planning ,
organizing leading and
controlling quality
Total Quality Management
TOTAL= everyone is involve.

QUALITY-continuously
improving the products and
services to customers.

MANAGEMENT=with data
and profound knowledge.
TQM Summary:

Do the
RIGHT thing
TQM Summary:

RIGHT the
FIRST time.
TQM Summary:

Doing it in
TIME ALL the
time
TQM Summary:

Always
Striving for
Improvement
TQM Summary:

Always
SATISFYING
the customer
 TQM Summary:

Do the RIGHT thing.

RIGHT the FIRST time.

Doing it in TIME ALL the time.

Always STRIVING for improvement

Always SATISFYING the customer.

 OBSTACLES TO IMPLEMENTING TQM
1. Lack of a companywide definition of quality
2. Lack of strategic plan for change
3. Lack of a customer focus
4, Poor intraorganizational communication

5. Lack of employees empowerment

6. View of quality as a “quick fix”

7. Emphasis on short-term financial results.
8. Inordinate presence of internal politics and “turf issues”
9. Lack of strong motivation
10. Lack of time to devote to quality initiatives
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11. Lack of leadership

 ASPECTS TRADITIONAL TQM

Meet or exceed customer

Overall Mission Maximize return on investment
expectations
Balance of long term and
Objectives Emphasis on short term
short term

TQM
Not always open, sometimes inconsistent Open; encourage employee
Management
objectives input, consistent objectives
Coach, remove barriers,
Role of Manager Issue orders, enforce
built trust
Customer Requirements Not highest priority, maybe unclear Identify and resolve
Comparing the cultures
of TQM and Traditional Problems Assign blame, punish Systematic;teams
organization. Not systematics, individuals
Problem Solving Continous

Improvement Erratic Partners

Broad, more general, much
Jobs Narrow, specialized; much individual effort
team effort
Focus Product Oriented Process oriented
Problem Solving and Process Improvement 71
PLAN –DO-STUDY-ACT CYCLE

PLAN
PLAN.
Begin by studying the current process.
Document that process
Then collect data on the process or problem
Next, Analyze the data and develop a plan
for improvement
Specify measures for evaluating the plan.
PLAN –DO-STUDY-ACT CYCLE

PLAN DO
DO.
Implement the plan, in a small scale, if possible
Document any changes made during this phase
Collect date systematically for evaluation
PLAN –DO-STUDY-ACT CYCLE

PLAN
PLAN DO
STUDY.
Evaluate the data collection during the do phase
Check how closely the results match the
STUDY original goals of the plan phase
STUDY
Collect date systematically for evaluation
PLAN –DO-STUDY-ACT CYCLE

PLAN
PLAN DO
ACT.
If the results are successful, standardize the
new method and communicate the mew method
STUDY ACT to all people associated with the process
Implement training for the new method
If the results are unsuccessful, revise the plan
and repeat the process or cease this project.
 Process Improvement

• Is a systematic
approach to improving
process. It involves
documentation,
measurement, and
analysis for the purpose
of improving the
functioning of a
process. .
 BASIC STEPS IN PROBLEM SOLVING

STEP 1 Define the problem

STEP 2 Develop performance measures and collect data

STEP 3 Analyze the problem

STEP 4 Generate potential solutions

STEP 5 Choose a solutions

STEP 6 Implement the solutions

STEP 7 Monitor the solutions to see if it accomplishes the goal

Six Sigma

A business process for

improving quality,
reducing, costs, and
increasing customer
satisfaction 78
Six Sigma

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 SIX SIGMA GUIDING PRINCIPLES

Reduction of variation is an important goal

The methodology is data driven, if requires valid

measurements

Outputs are determined by inputs; focus on

modifying and/or controlling inputs improve
outputs

Only critical few inputs have a significant

impact on outputs.

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DMAIC (Define-measure –improve control)

Is a formalized problem
solving process of Six
Sigma.

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 DMAIC STEPS

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 DMAIC STEPS

Set the context and objective for improvement

Determine the baseline performance and

capability of the process

Use data and tools to understand the cause-and-

effect relationship of the process

Develop the modification that lead to a validated

improvement of the process.

Establish plans and procedures to ensure that

improvements are sustained.
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 QUALITY TOOLS

FLOWCHART

• A diagram of the
steps in a process.

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CHECKSHEET
• A tool for organizing and
collecting data
• A tally of problems or
other events by category.

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HISTOGRAM
• A chart that shows an
empirical frequency
distribution

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PARETO CHART
• A diagram that arranges
categories from highest
to lowerst frequency of
occurance.

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SCATTER DIAGRAM
• A graph that shows the
degree and direction of
relationship between two
variables.

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CONTROL CHART
• A statistical chart of time-
ordered values of a
sample statistics.

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CAUSE AND EFFECT DIAGRAM

• A diagram used to
organize a search for the
cause(s) of a problem,
also knows as a fishbone
diagram

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TQM for a Competitive Advantage in Business

REDUCING COST

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TQM for a Competitive Advantage in Business

GETTING PRODUCTS

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TQM for a Competitive Advantage in Business

MAKING PRODUCTS

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TQM for a Competitive Advantage in Business

MANUFACTURING COST REDUCTION

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TQM for a Competitive Advantage in Business

HELPING SUPPLIERS

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TQM for a Competitive Advantage in Business

QUALITY SUPPLIES

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TQM for a Competitive Advantage in Business

QUALITY WORKERS

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TQM for a Competitive Advantage in Business

CUSTOMER SATISFACTION

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