PEC-ME-702/21

TOTAL QUALITY
MANAGEMENT
UNIT 2
TOTAL QUALITY MANAGEMENT: DEFINITION, JOURNEY FROM
INSPECTION TO TQM, DIMENSIONS OF TQM, TQM VIEWPOINTS,
REASONS FOR ADOPTING TQM, COMPONENTS OF TQM, STEPS IN TQM
IMPLEMENTATION, ROADBLOCKS IN TQM IMPLEMENTATION, REASONS
FOR TQM FAILURE, FACTORS AFFECTING TQM ENVIRONMENT. (10)
Total Quality Management (TQM)
TQM has evolved because of continuous changes in global economic
structure and hence changes in the expectations of customers.
It is viewed as an organization-wide philosophy requiring all employees
at every level of an organization to focus on their efforts to help
improve each business activity of the organization.
Since TQM underlines the involvement of the whole organization, it is
affected by the whole organization. Whether it is people who are
working in and for the organization, the activities going on in the
organization, or the infrastructure facilities, everything affects the TQM
environment.
Viewpoints of TQM
The large sphere of the TQM is evident from the fact that its versatility has
proved its different viewpoints.
TQM is viewed as:
➢Philosophy–a way of thinking, a movement, a set of beliefs.
➢Economic approach–means to reduce cost.
➢Business strategy – improve profits.
➢Marketing strategy–customer satisfaction and increase market share.
➢Scientific approach–integrated approach to use tools and techniques.
➢Management technique–to manage resources in an optimum manner.
Dimensions of TQM
➢Customer Focus
➢Continuous Improvement
➢Employee Involvement
➢Process-Centered Approach
➢Data-Driven Decision Making
➢Strategic and Systematic Approach
➢Leadership Commitment
➢Supplier Partnership
➢Education and Training
➢Benchmarking
➢Long-Term Planning
Benefits through TQM
➢Improved product quality
➢Increased sales
➢Increased employee involvement
➢Improved employee satisfaction
➢Improved customer satisfaction
➢Reduced delivery time
➢Reduced cost of poor quality
➢Reduced absenteeism
➢Reduced inventory level
TQM Environment – an introspection
➢Planning, organizing, controlling and applications of tools, techniques, human
factors, programs, influencing agents, ideas, support systems and other factors
which assist in improving the total quality of products, services, work
environment, customer satisfaction and profitability to company result in TQM.
Author Definition Keywords
(1) (2) (3)
Oakland An approach to improve the effectiveness and flexibility of • Improve business
(1989) business as a whole. It is essentially a way of organizing and • Involvement of all
involving the whole organization, every department, every
activity, every single person at every level.
P Fau An approach for continuously improving the quality of goods and • Continuous improvement
(1989) services delivered through the participation at all levels and • Participation of all
functions of organization.

Kanji The way of life of an organization committed to customer • Way of life

(1990) satisfaction through continuous improvement. This way of life • Continuous improvement
varies from organization to organization and from one country to • Customer satisfaction
another but has certain principles, which can be implemented to • Business performance.
secure market share, increase profits and reduce costs.

Tobin The totally integrated effort for gaining competitive advantage • Competitive advantage
(1990) by continuously improving every facet of organizational culture. • Total integrated effort
 Author Definition Keywords
(1) (2) (3)

Berry (1991) A total corporate focus on meeting and exceeding •Total corporate focus
customers’ expectations and significantly reducing •Customers’ expectations
costs resulting from poor quality by adopting a new •New management
management system and corporate culture. system

Snell and It is characterized by a few basic principles- doing • Continuous

Dean things right the first time, striving for improvement
(1992) continuous improvement and fulfilling customer needs- • Customer needs
as well as a number of associated practices.

Lakhe and The process wherein the top management, along with • Involvement of all
Mohanty other people in an organization, works to improve • Customer and
(1994) the product quality and work environment employee satisfaction
continuously at all stages, at all levels, with the aim
of improving customer and employee satisfaction.
 Author Definition Keywords
(1) (2) (3)

ISO 8402 A management approach of the organization centered on • Participation of all

(1994) quality, based on the participation of all its members • Customer and employee
and aiming at long term success through customer satisfaction
satisfaction and benefits to the members of the • Benefits to society
organization and to the society.
Mohrman An approach to managing organizations which emphasize •Continuous
et al. the continuous improvement of quality and customer improvement
(1995) satisfaction, entails the application of systematic tools •Use of systematic tools
and approaches for managing organizational processes and approaches
with these ends in mind, and involves the •Quality improvement
establishment of structures such as quality teams
improvement teams and councils for maintaining focus
on these ends and enacting organizational
improvement processes.
 Author Definition Keywords
(1) (2) (3)

Ho (1997) Total = everyone associated with company is involved • Involvement of all

in continuous improvement (including its customers • Continuous
and suppliers if feasible) improvement
Quality = customers’ expressed and implied • Customer
requirements are fully met. satisfaction
Management = executives are fully committed.
Mehra et al. TQM is viewed as an organization wide philosophy • Involvement of all
(2001) requiring all employees at every level of an • Improve business
organization to focus his or her efforts to help
improve each business activity of the organization

Taveira et al. TQM affirms a management philosophy based on • Involvement of all

(2003) process improvement using data, and builds upon • Management
involvement and participation from top philosophy
management to the shop floor
 TQM redefined
“Managing the attributes that affect the quality of those
subsystems in an organization, which help it to achieve
desired goals, fulfilling constraints of time and cost is
called total quality management.”
Exploring the definition will lead to insight into TQM.
Desired Goals:
➢ Customer satisfaction
➢ Profitability
➢ Quality of product
 Total Quality
To achieve these goals, quality in each subsystem of an organization, i.e. total quality is
required.
➢Quality of product.
➢Quality of process.
➢Quality of material.
➢Quality of people.
➢Quality of policies.
➢Quality of design.
➢Quality of functional areas.
➢Quality of work environment.

Remove 3 M’s(Muda, Muri, Mura) for best use of 3 M’s (Men, Machine, Money)
 Reasons for adopting TQM
➢Improved Customer Satisfaction
➢Enhanced Product Quality
➢Increased Efficiency and Productivity
➢Employee Involvement and Empowerment
➢Continuous Improvement Culture
➢Stronger Leadership and Communication
➢Better Decision Making
➢Strategic Alignment
➢Failure Risk Reduction
➢Competitive Advantage
➢Compliance and Certification
 Components of TQM
➢Customer-focused
➢Total employee involvement
➢Process-centered
➢Integrated system
➢Strategic and systematic approach
➢Continual improvement
➢Fact-based decision making
 Strategic Approaches in TQM implementation
➢Strategy 1: The TQM element approach
➢Strategy 2: The guru approach
➢Strategy 3: The organization model approach
➢Strategy 4: The Japanese total quality approach
➢Strategy 5: The award criteria approach

Source: https://asq.org/quality-resources/total-quality-management/implementing-tqm
 Generalized Steps in TQM implementation
➢ Step 1: Identify and Assess the degree of commitment, key interests and list down the
long-term changes required.
➢ Step 2: Define the objectives of TQM.
➢ Step 3: Identify resources available and develop understanding of organizational
systems with quality system.
➢ Step 4: Specify top management commitment through quality policies, procedures
and processes.
➢ Step 5: Create company wide awareness and participative work environment by
emphasizing on customer oriented values, encourage quality commitment.
➢ Step 6: Design action plans and develop specifics about future.
 Steps in TQM implementation
➢ Step 7: Identify key issues and constraints on implementation and develop strategies
for implementation.
➢ Step 8: Identify and allocate resources, execute plans, build momentum for change.
➢ Step 9: Implement and monitor.
➢ Step 10: Measure benefits in terms of increased customer satisfaction.
➢ Step 11: Review and reward.
 Roadblocks in TQM implementation
➢ Lack of top management support
➢ Lack of knowledge and skills to implement TQM
➢ Lack of continuous training and education
➢ Improper planning with limited resources
➢ Employee resistance to change
➢ Resistance to organizational structure and culture change
➢ Lack of effective communication
➢ Ineffective improvement measurement techniques
 Reasons for TQM failure
➢Lack of Top Management Support
➢Inadequate Employee Involvement
➢Poor Communication
➢Short-term Focus
➢Inadequate Training and Education
➢Resistance to Change
➢Lack of Clearly Defined Goals and Metrics
➢Overemphasis on Tools and Techniques
➢Bureaucratic and Overly Complex Processes
➢Lack of Continuous Improvement
➢Inadequate Resources and Support
➢Incompatible Organizational Culture

HR is the best asset of an organization

Broad Factors for Total Quality
Management Environment

Behavioural Non
Factors Behavioural
Factors

Total
TTssTTotal
Tools Quality
TTTTtt Functional
and Management
Areas
Techniques

Human
Factors
 Factors for Total Quality Management Environment Related to Grouped under

Top Mgmt. Provide Mgmt. Involvement Strategic Resource Employer

Commitment leadership &Support planning allocation
Behavioural
Employee Employee Employee Employee Employee
Factors
Commitment involvement empowerment effectiveness
Supplier Quality Supplier involvement Supplier loyalty Long term association Supplier focus Supplier
Mgmt.
Customer Focus Customer Feedback Customer care facilities Design for customer Customer
M/C availability/ Infrastructural Timely supply Equipment Basic facilities Operational/ Non Behavioural
Capability facilities of right Mat. availability For employees General facilities Factors

Statistical Seven Traditional Problem Problem Customer Systematic Use of Tools And
Tools tools Identification tools analysis tools Oriented tools/ Techniques Techniques/
techniques Methodologies
Supply chain Enterprise Resource Just in time/ Business Process Quality Mgmt. System
Mgmt. planning Kaizen reengineering systems methodologies

Work Satisfaction Employee’s Quality of work life Managerial values Physical environment Work culture
Ownership
Recognition and Leadership Job enrichment Group incentive Proper Remuneration Motivation
Human Factors
rewards
Discipline Teamwork communication Trust Information sharing Coordination
Drive out fear Positive approach Attitude Change
Knowledge Building Training Continuing education Innovation
Mechanism to Role of quality Process control Systematic Quality Functions of Deptt./ Functional Areas
Coordinate Deptt. procedures planning Interdeptt. activities
Activities
Schematic Representation of TQM Enablers
Human
factors

Use of tools &

tech./
Behavioural
methodology
factors Product or
Service

Functional
areas

Non
behavioural
factors