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Total Quality

Management (TQM)
Antony
TQM Framework (Elements of
TQM)
 Two Groups
 TQM Principles and practices
 TQM tools and techniques
TQM
 TQM  Contribution of Quality Guru  TQM
elements
 TQM Elements
 TQM Principles and practices
 TQM tools and Techniques
TQM Principles and Practices
 A. Principles and Practices
 1. Leadership
 Quality Council, Quality statement, Strategic planning
 2. Customer focus
 Customer complaints, Customer retention
 3. Employee involvement
 Empowerment, Team and teamwork, Recognition and
reward, Performance appraisal
 4. Supplier partnership
 Sourcing, Supplier selection and rating
TQM Principles and Practices
 B. Approach
 1. Continuous process improvement
 Juran trilogy, PDSA Cycle, Kaizen, 5s housekeeping
 2. Innovation
 3. Management by fact
 C. Performance measure
 1. Quality costs and awards

TQM Tools and Techniques
 A. Seven Tools of Quality
 Flowchart
 Check sheet
 Histogram
 Pareto Diagram
 Cause and effect diagram
 Scatter Diagram
 Control chart
TQM Tools and Techniques
 B. New Seven Management tools
 Affinity Diagram
 Relationship diagram
 Tree Diagram
 Matrix diagram
 Matrix data analysis diagram
 Decision Tree
 Arrow Diagram

TQM Tools and Techniques
 C. Six Sigma Process capability
 D. Benchmarking
 E. Failure mode and effect analysis
 F. Quality circles
 G. Quality function deployments
 H. Total Preventive maintenance
 I. Taguchi Methods
 J. Sampling plans
 K. Experimental design

TQM Tools and Techniques
 L. Quality Management Systems
 ISO 9000 Series of Standards
 Environmental Management Systems
 ISO 14000 Series of Standards

Pillars of TQM
 Four Pillars of TQM- House
Employee involvement, Structures, Stepwise, discipline,
Consistency
Act Plan

Check Do
M
Q
T
Q
Problem
Solving
Discipline
Interperso
nal Skills
Team
work
Quality
improvem
ent
Process
Evaluation of TQM
Quality Quality Control
Statistical Quality
Control
Total Quality Control Quality Assurance TQM
Principles of TQM
 Customer requirement must be met first time, every time
 There must be agreed requirements, for both internal and external customers
 Everybody must be involved, from all levels and across all functions
 Regular communications (both formally and informally) with staff at all level
 Two way communication at all levels must be promoted
 Identifying training needs and relating them with individual capabilities and
requirements is must
 Top management’s participation and commitment is must
 A Culture of continuous improvement must be established
 Emphasis should be placed on purchasing and supplier management
 Every job must add value
 Quality improvement must eliminate wastes and reduce total costs
 There must be a focus on prevention of problems
 A culture of promoting creativity must be established
 Performance measures is a must at organization, department and individual
level, it helps to access and meet objectives of quality
 Focus on team work
Barriers(Obstacles or Impediments) to TQM
implementation
 Lack of management commitment
 Lack of faith in and support to TQM activities among management personal
 Failure to appreciate TQM as a cultural revolution (Inability to change
organization culture)
 Misunderstanding about the concepts of TQM
 Improper planning
 Lack of employees commitment
 Lack of effective communication
 Lack of continuous training and education
 Lack of interest or incompetence of leaders
 Inefficient measurement techniques and lack of access to data and results
 Non-application of proper tools and techniques
 Inadequate use of empowerment and teamwork
 Inadequate attention to internal and external customers
 Delay or non-implementation of quality improvement team’s recommendations

Benefits of TQM
 Tangible benefits
 Improved product quality
 Improved productivity
 Reduced quality costs
 Increased market and customers
 Increased profitability
 Reduced employee grievances
Benefits of TQM
 Intangible benefits
 Improved employee participation
 Improved teamwork
 Improved working relationships
 Improved customer satisfaction
 Improved communication
 Enhancements of job interest
 Enhanced problem solving capacity
 Better Company image
Contributions of Quality Gurus
 Early 1950‟s – Americans
 Walter Shewhart
 W. Edwards Deming
 Joseph M. Juran
 Philip Crosby
 Armand Feigenbaum
 Late 1950‟s – Japanese
 1970‟s – 1980‟s Western Gurus
Walter A Shewhart
 Contribution
 Statistical Control Chart
 PDSA Cycle
 Popularized by Deming

W. Edward Deming
 Deming, An American – Senior Quality Guru
 1928 – PhD- Mathematical Physics
 1946 – Sharing his expertise in statistical quality
control - World War II, (went Japan to help
nation recover)
 1951 – Japanese – Deming Prize for Quality
 1956 – Awarded the Shewhart medal
 1960 – Awarded by Japanese Emperor with the
Second Order of the Scared Treasure for his
teaching
Deming’s Contribution
 Deming‟s 14 Points on route of quality
 Deming Cycle (or PDCA Cycle)
 Seven deadly diseases of management
 System of profound knowledge
Deming’s 14 points
 Create Constancy of purpose toward improvement of product and service
 Adopt the new philosophy
 Cease dependence on inspection to achieve quality
 End the practice of awarding business on the basis of price tag
 Improve constantly and forever the system of production and services
 Institute training
 Institute leadership
 Drive out fear
 Break down barriers between departments
 Eliminate slogans, exhortation, and target for the work force
 Eliminate work standards on the factory floor
 Remove barrier to pride of workmanship
 Institute a vigorous program of education and self improvement
 Accomplish the transformation (Put everybody in the company to work
Deming cycle (or PDCA Clycle)
 PLAN, DO, CEHCK, ACT (PDCA) Cycle
 Deming cycle or Deming Wheel
ACT PLAN



CHECK DO
Plan – What is needed
Do – it
Check – that works
Act – to Correct problems or improve
performance
Seven Deadly Diseases
 Unforgivable sins or deadly diseases
 Lack of consistency of purpose
 Emphasis on short term profits
 Reliance on performance appraisal and merits
 Staff mobility
 Excessive medical costs
 Excessive legal costs
System Profound Knowledge
 Four elements
 Appreciation for a system
 Knowledge of statistical theory
 Theory of knowledge
 Knowledge of psychology
II – TQM Leadership
 It is a process of influencing others towards the
accomplishment of goals
Characteristics or Behavior of
Quality Leaders
 The Customers first
 Value people (take care of the development of people skills, capabilities)
 Build supplier partnership
 Empower people (Train and coach the people, rather than directing and supervising
them)
 Demonstrate involvement/commitment
 Strive of excellence (Continuous improvement rather than maintenance)
 Explain and deploy policy
 Improve communication
 Promote teamwork
 Benchmark continuously (Learn from problem, create learning effect through
innovation)
 Establish System (Establish organizational systems to support quality effort)
 Encourage Collaboration (Encourage collaboration rather than competition)

Leadership style for Effective Leaders
 Directing style of leaderships
 Consulative style of leaderships
 Leader seek input from those working under him
 Encourage participation
 Seeks the advice, Suggestions and input from others and take final decision
 Participative style of leaderships
 Delegating style of leaderships




Requirements of Effective Leaderships
 Vision
 Empowerment -(authorization-empower employees to assume ownership of
problems or opportunities and to be proactive in implementing improvements….)
 Intuition (Follow their intuition, must prepared to make difficult decision)
 Self-understanding (identify the relationships with employees within the
organization)
 Value congruence (Quality of Agreeing)- integrate their values into company
system(trust, respect of individual, openness, teamwork, integrity and commitment)

Leadership Roles
Flexibility
Stability
Externally Oriented Internally Oriented
Develops skills of people
Has a careful, helpful and systematic approach
Gives compliments and honour to whom honour is due
Realizes teamwork
Participatory decision making
Reaches consensus (agreement)
Openness, involvement and
solidarity
Watches over and guides achievements
Take care of details and documentation
Check if people stick to the rules
Organize and coordinates efforts of personnel
Is focused on delegation of tasks
Pays attention to technological issues
Develop policy and rules
Formulate plans
Identifies bottlenecks
Promote a productive working
environment
Commands great involvement and
personal dedication
Time/Stress Management
Make Continuous improvements possible
Has a vision of the future
Recognize important trends
Anticipates changes
Uses power and influences people
Can negotiate effectively
Has image, reputation, and
persuasive power
Role of Senior Management (Role of TQM
Leaders) (Responsibility)
 To study and investigate the TQM concepts and issues
 To set clear quality policies and provide challenging tasks
 To establish “priority of quality” and „customer satisfaction‟ as the basic
policy and determine the long term goals
 To bring a cultural charge required for the TQM effort
 To establish the TQM vision for the future and communicate to all involved
 To become coaches and cheer leaders for encouraging and supporting the
managers during the transition phase of the transformation change
 To stimulate employees to be involved
 To teach employees to realize that the company interest and their interest and
geared into one another
 To attend TQM training programs
 To create coordination and harmony among and within departments
 To mentor whether quality improvement programs are conducted as planned
 To create a basic of trust, respect and open communication, which ensures
individual participation and continuous improvement

Quality Council
 Quality council is a team to provide overall direction for achieving the total
quality culture
 The quality council includes CEO and Senior managers of the
functional areas -research,manufacturing,finance,sales ,marketing etc.
and one co-ordinator and a union representative.
 Duties
 To develop the Quality statements eg. Vision, Mission, Quality policy statements,
Core values etc.
 To develop strategic long-term plans and annual quality improvement programme.
 Make a quality training programme
 Monitor the costs of poor quality.
 Determine the performance measures for the organisation
 Always find projects that improve the processes and produce customer satisfaction.
 Establish work-group teams and measure their progress.
 Establish and review the recognition and reward system for the TQM system

Responsibilities of QC Coordinator
 To develop two way trust
 To propose team requirement to the council
 To share quality expectation with team
 To empower the team
 To brief the council on team progress

Quality Structure
Corporate Quality
Council
Quality Sub
Council Division #3
Quality Sub
Council Division #2
Quality Sub
Council Division #1
Process improvement team
&
Other Project Improvement Team
Chair Person: CEO
Member: Senior Managers
Who head
Specific function
Chair Person: Senior Managers
of main function of
concerned division
Quality Statements
 Provide overall direction for achieving the total
quality culture
 Elements
 Vision statement – a short declaration of what the organization
hopes to be tomorrow.
 Mission statement – a statement of purpose –who we are, who are
our customers, what we do , and how we do it.
 Key Elements
 Obligation (duty) of stakeholders
 Scope of the business
 Source of competitive advantage
 View of the future
 Quality policy – is a guide for everyone in the organization ,how
they should provide products and services to the customers.


Strategic Planning
 Strategic Planning
 Set the long-term direction of the organization in
which it wants to proceed in future

Present
Vision
of
future
Strategic Plan
Strategic Planning Cycle
Determination of Customer Positioning
Identification of Customer Needs
Predict the future
Gap Analysis (Comparison of various alternative)
Closing the Gap (Selecting best alternative)
Alignment
Implementation
Reevaluate and review
Customer Satisfaction
 The customer is the king
 Quality is what customer wants
 Customer satisfaction model

Company offer
Customer Satisfaction
Customer needs
Who are the customers
 The most people in the business
 Not dependent on organization
 Organization depends on them
 Not an interruption to work but are the purpose of it
 Doing favor when they seek business not vice versa
 A part of business, not out siders
 Life blood of business
 People who come with their need and jobs
 Deserve the most courteous and attentive treatment

Types of Customers
 Internal
 The customers inside the company are called internal customers
 External
 The customers outside the company are called internal customers
 Purchaser
 End user/ultimate customer
 Merchants
 Processors
 Supplier
 Potential customer – not currently using but will use
 Hidden customer – media, policy makers …
Customer supplier chain
Internal customer supplier chain




C/S
C/S
C/S
C/S
C- Internal Customer
S- Internal Supplier
Customer perception of Quality
 Performance
 Fitness for use
 Availability
 Reliability
 Maintainability
 Features
 Service
 Warranty
 Price
 Reputation



Before Purchase At point of purchase After purchase
Company brand name and
image
Performance and specification Ease of installation and use
Previous Experience Comments of Sales people Handling of repairs claims,
warranty
Opinions of friends Warranty previous Spare parts availability
Store reputation Service and repair policies Service effectiveness
Published test results Support program Reliability
Advertised price for
performance
Quoted price for performance Comparative performance
Customer perception of Quality
Identifying Customer Needs
 Surveys, focus group, market research program, studies
 Routine communication, such as sales, service calls and reports,
management reviews, house publication
 Tracking customer complaints, incident reports, letters,
telephone contacts
 Customer meetings
 User conferences for the end user
 Information on competitor‟s products
 Personal visits to customer location
 Personal experience dealing with the customer and product
 Employees with special knowledge of the customer
 Government or independent laboratory data
 Experience and planning process
Kano Model of Customer Satisfaction
Customer Complaints
 What is Customer Complains?
 Why is customer feedback/Customer complaint Necessary?
 Sources for Customer Complaint
 Related to product itself
 Related to after sales service
 Common Customer feedback collection tools
 Customer cards
 Customer questionnaire (online, phone and mail surveys)
 Post transaction surveys, Report or feed back cards
 Focus groups, Social media
 Toll free telephone numbers, Customer visits
 Employee feedback

Customer Complaints flow chart

Service Quality or Customer Service
 Provided
 Before the sale of the product
 During the sale of the product
 After the sale of the product
Service Quality or Customer Service
 Elements of Customer Service
 Organization
 Identify each market segment
 Write down the requirement
 Communication the requirement
 Organize processes
 Organize physical spaces
 Customer care
 Meet the customer expectation
 Get the customer‟s point of view
 Deliver what is promised
 Make the customer feel values
 Respond to all complaints
 Over-respond to the customer
 Provide clean and comfortable customer reception area

Service Quality or Customer Service
 Elements of Customer Service
 Communication
 Optimize the trade-off between time and personal attention
 Minimize the number of contact points
 Provide pleasant, knowledge, enthusiastic employees
 Write documents in customer friendly language
 Front-line people
 Hire people who like people
 challenge them to develop better methods
 Given them the authority to solve problems
 Serve them as internal customers
 Be sure they are adequately trained
 Recognize the reward and performance
 Leadership
 Lead by example
 Listen to front line people
 Strive for continuous process improvement
Employee Involvement
 Employee Motivation
 Employee Empowerment (ability or authority)
 Concept of empowerment
 Empowerment Defined
 It is environment in which people have ability, the confidence,
and the commitment, to take the responsibility and ownership
to improve the process and initiate the necessary steps to
satisfy customer requirements within well-defined boundaries
in order to achieve organizational values and goals

Employee Involvement
 Employee Empowerment (ability or authority)
 General Principles for empowering employments
 Tell the people what their responsibilities are
 Give them authority equal to the responsibility assigned to
them
 Set the standards of excellence
 Provide them with training
 Give them knowledge and information
 Provide them with feedback on their performance
 Trust them
 Allow them to fail but guide them and counsel them when
needed
 Treat them with dignity and respect


Employee Involvement
 Employee Empowerment (ability or authority)
 Condition to create the empowered environment
 Everyone must understand the need for change
 The system needs to change to the new paradigm
 The organization must provide information, education, and
skill to its employees
 Characteristics of empowered employees
 Identified by Hubert Rampersad
 They feel responsible for their own task
 They are given a free hand in their work
 They balance their own goals with those of organization
 They are well trained, equipped, creative, and customer oriented
 They are challenged and encouraged
 They are critical, have self esteem and are motivated
 They monitor and improve their work continuously
 They find new goals and change challenges


Employee Involvement
 Team and Team work
 What is meant by a Team and Team work
 Benefits of Teamwork
 Improved solution to quality problems
 Improved ownership of solution
 Improved communication
 Improved integration
 Types of Team
 Process improvement team
 Cross function team
 Natural work team
 Self directed/Self managed work team
Quality
Council
Business Process Team
Cross Functional Team
Process
Improvement
Team
Work
Group
Process
Improvement
Team
Work
Group
Process
Improvement
Team
Work
Group
Process
Improvement
Team
Work
Group
Process
Improvement
Team
Work
Group
The use of the teams throughout an organization
Employee Involvement
 Team and Team work
 Characteristics of Successful teams
 Spencer (quality Council)
 Team Charter (Document that define the team‟s mission boundaries..)
 Team Composition (ten meb. team, with diff. skills)
 Training
 Ground Rules
 Clear Objectives
 Accountability
 Well defined decision procedures
 Resources
 Trust
 Effective problem-solving
 Open communication
 Appropriate Leaderships
 Balanced Participation
 Cohesiveness (Comfortable working with each other..)
Employee Involvement
 Team and Team work
 Elements of Effective Team Work
Effective
Teams
1. Team
Purpose
2. Team role
and
responsibilities
3. Team
Activities
4. Team
Effectiveness
5. Team
Decision
6. Team
results
7. Team
Recognition
Employee Involvement
 Team and Team work
 Team Management Wheel - Activites
Team
Innovating
Promoting
Developing
Organising
Producing
Linking
Inspecting
Maintaining
Advising
Employee Involvement
 Team and Team work
 Role of Team Members
 Stages of Team Development
 Forming Stage (
 Storming Stage ( (Initial agreement, role, personal need)
 Norming Stage (developing formal and informal relationships)
 Performing Stage
 Maintenance Stage
 Evaluating Stage
 Barriers to team progress
 Insufficient Training
 Incompatible rewards and compensation
 First-line supervisor resistance
 Lack of planning
 Lack of management support
 Access to information systems
 Lack of Union Support

Employee Involvement
 Team and Team work
 Barriers to team progress
 Project scope too large
 Project objectives are not significant
 No clear measures of success
 No time to do improvement work

Employee Involvement
 Recognition and Rewards
 What is meant by recognition
 It is a process whereby management shows acknowledgement of an
employee‟s outstanding performance
 Reward
 Salary, Commission, cash bonus, gain sharing..
 Why should one recognize the employees
 Types of rewards
 Intrinsic
 Feeling of accomplishments (achievement or skills)
 Extrinsic
 Pay or compensation issues

Rewards – Richard S. Allen, Ralph H. Kilmann
 Intrinsic rewards
 Non-monetary form of recognition
 Celebration to acknowledge achievements
 Regular expression of appreciation by managers
 360 degree performance appraisals – (Feedback based)
 Formal suggestion system available for individual
 Development based performance appraisals
 Quality based promoters

Rewards – Richard S. Allen, Ralph H. Kilmann
 Extrinsic Rewards
 Profit sharing
 Gain sharing (Performance based)
 Employment security
 Compensation Time
 Individual based performance systems
 Quality based performance appraisals

20 ways to recognize the people –Steve Smith
 Send letter to improve team members, thanking them
 Develop the „behind the scenes‟ awards (not in time line)
 Create a „best idea of the year‟ booklet
 Feature the quality team of the month- put picture
 Recognize your peers at staff meeting
 Let people attend meeting when you are not available
 Create opportunities to meet external customer
 Invite the team for tea or lunch
 Create a visibility wall to display information, posers, pictures..
 Group ideas meeting – give credit
 Mention someone‟s outstanding work or idea during meeting
20 ways to recognize the people –Steve Smith
 Take interest in employees development – training
 Get your teams pictures in the company news paper news letter
 Write “letter to praise”
 Ask people to help you – consider , difficult
 Send them to special seminar, workshop, meeting,…
 Ask boss to send a letter – ackl… thanks…
 Honor outstanding contribution with awards
 Gift
 Promotion

Performance Appraisal
 Process
1. Establish performance standards
2. Communicate performance
3. Measure Actual performance
4. Compute actual performance with standards
5. Discuss the appraisal with the employee
6. Initiate corrective action
1. Benefits

Continuous process Improvements
 Continuous improvement in
 The area of cost
 Reliability
 Quality innovation
 Efficiency
 And business effectiveness


Input and Output Process Model
PROCESS
People
Equipment
Method
Procedures
Environment
Materials

INPUT
Materials
Money
Data
Information etc
Conditions
Feedback
OUTPUT
Product
service

 Five basic ways of improving the process
 The reduce resources
 To reduce errors
 To meet or exceed customer needs
 To make process safer
 To make the process more satisfying to the person
doing it
Juran Triaogy
 Juran divide the Quality management into
Managerial processes
 Quality Planning
 Quality Control
 Quality Improvement

 It means “managing for quality is achieved by the
use of the three managerial processes of plainning,
control and improvement
Juran’s Quality control process
Juran Trilogy Diagram
Types of Quality Problems
 Compliance Problems
 Unstructured Problems
 Efficiency Problem
 Process – Design problem
 Product design problem
Improvement Strategies – 4R’s of Total
improvement
 Repair Strategy
 Fixing things right
 First level – identify the problem and eliminate root
cause
 Second level – fault product, repaired or replaced
 Refinement Strategy
 Incremental basis service
 Renovation Strategy – major or break through
improvements, taken by team , costly
 Reinvention Strategy – re-engineering
PDSA CYCLE – Deming Wheel
 PLAN, DO, CEHCK, ACT (PDCA) Cycle
 Deming cycle or Deming Wheel
ACT PLAN



CHECK DO
PHASES
Plan – What is needed
Do – it
Check – that works
Act – to Correct problems or improve
performance
Continuous Process Improvement Cycle
A P
C D
Benefits of PDSA Cycle
 Daily routine management
 Problem solving process
 Project management
 Continuous Development
 Vendor development
 HR Development
 New product Development
 Process Trials
5W2H Method
5S House Keeping
 Used to establish and maintain a productive and
quality environment in an organization
 5s invented in Japan
 SEIRI
 SEITON
 SEISO
 SEIKETSU
 SHITSUKE
Objectives of 5S
 To create a neat and clean work place
 To systemize day-to-day working
 To improve work efficiency
 To standardize work practices
 To improve work discipline
 To improve the quality of work and products
SEIRI:SORTING
 Consequences of not following SEIRI
 The wanted is hard to find.
 More space is demanded
 Unwanted item cause misidentification
 Misidentification cause error on operation
 Maintenance cost of the equipment increases

 - In office or home or factory floor
SEIRI – Separating Wanted and Unwanted
Separating Wanted and Unwanted
Junk and Waste Repairable Wanted items
No Use Repair
Discard To Next Step
SEIRI – Sorting and Evaluation Criteria
 SEITON – Systematize
 Everything in proper order so that it can be easily
picked up for use
 A place for everything and everything in its place
 SEISO: Shine
 To clean the work place thoroughly so that there is
no dust/dirt/scrap anywhere
 SEIKETSU – Standardize
 Maintain a high standard of work place organization
and house keeping at all times
 SHITSUKE – SELF DISCIPLINE
 Self-discipline, especially with regard to safety rules
and punctuality
Factors in implementing 5S
 Participating by all
 Top management commitment
 Should be self sustaining
 Banner, slogan poster – attention for every one
 Review the program
Benefits in implementing 5S

KAIZEN
 Japanese Word – Continuous improvement or
improvement over improvement
 Kaizen vs Kairyo

Many Small improvements
One Great improvement
Kaizen vs Kairyo
Kaizen Kairyo
Effect Long term and long lasting but
undramatic
Short-term but dramatic
Pace Small Steps Big Steps
Time frame Continuous and incremental Intermittent and non incremental
Change Gradual and constant Abrupt and volatile
Involvement Everybody Select few „champions‟
Approach Collectivism, group effort Rugged individualism,
Mode Maintenance and improvement Scrap and rebuild
Spark Conventional know-how and
state of the art
Technological breakthrough, New
invention, new theories
Practical Requirement Requires little investment Require large investment
Effort Orientation People Technology
Evaluation Criteria Process and efforts for better
results
Results and profits
Advantage Work well in slow – growth
economy
Better suited to fast growth
Various Aspect of Kaizen
KAIZEN
(Continuous
Improvements)
Process
Driven
Total employee involvements (Quality
circles, Suggestion systems, team work)
Good labor Management relation
Effective Leaderships, Cross
Communication
Adaptability to changing
environment
Visibility and
control
Reducing wastes
Customer Orientation
Standardization
Quality awareness,
Quality control
Kaizen - Features