TOTAL QUALITY

MANAGEMENT
Presented By:
Ms. Irum Shahzadi
1 lecture

QUALITY
Quality is also defined as ability of product or degree of excellence in
the product or service that fulfills or exceeds the expectations of the
customer.
Quality is fitness for use of the product Joseph Juran.
Quality refers to all those features of a product (or service) which are
required by the customer.

QUALITY AND CUSTOMER

EXPECTATIONS
Quality is not fine-tuning your product at the final stage of
manufacturing, before packaging and shipping .
Quality is in-built into the product at every stage..
Management of quality is TQM there is no full stop and no break in
the chain!
One important reason is the customer quality level is not static and
his expectations keep changing.
Customer feedback has to be continuously sought and monitored not one-time only! Areas for improvement can be noted.
(Be Pro-active!...Complaints are a reactive method of finding out
there is a problem)
Do the things right the first time, every time.

FOUR DETERMINANTS OF QUALITY

Quality of product design
Is determined by the features that are included in the final
design of the product or service e.g. weight, color, size.
Quality of conformance to design
Is the result of how well the product/service meets its
specification.
Ease of use
Is determined by the ease of using the product or service, its
reliability, its operation, maintenance, safety alert.
Post-sale service
Is the level of service provided after the product/service has
been purchased e.g. responsiveness, rapid repair, spare parts

FOUR DETERMINANTS OF QUALITY

Four determinants are important in determining quality.
However quality of design is more important since it determines
the ability to meet customer needs, which is the objective. If the
quality of design does not meet customer needs, then it will not
matter, if the products or service meets its design specification,
is easy to use or is supported by good post-sale services.

8 DIMENSIONS OF QUALITY
Performance what a customer expect from the product to perform or is it
suitable for the intended job?
Features What else can it do? Some more desirable or secondary characteristics
i.e. remote control, bells and whistles of a product.
Conformance Is it made as per design? Or meet specified standards? the degree
to which physical and performance characteristics of a product match preestablished standards.
Reliability How frequently will it fail? No breakdown or malfunction.
consistency of performance over time.
Durability How long will it last? useful life of product. Preferable until the
customer has no further use for it.
Serviceability How easy and cheap will it be to repair it? the speed, courtesy,
and competence of repair work.
Aesthetics how a product looks, feels, sounds, tastes, or smells.
Perceived quality Value in the eye of beholder. Does the company/product has
reputation? assessment of quality resulting from image, advertising, or brand
names.

WHY QUALITY
Reasons for quality becoming a cardinal priority for most organizations:
International Competition Market are more competitive, in Customeroriented market demand is defined by Users. Todays market demands high
quality products at low cost. Having `high quality reputation is not
enough! Internal cost of maintaining the reputation should be less.
Changing customer The new customer is not only commanding
priority based on volume but is more demanding about the quality
system.

Survival- Quality management is a necessity for survival and growth of the

organization in a global environment.

EFFECTS OF POOR QUALITY

Low customer satisfaction

Low productivity, sales & profit
Low morale of workforce
More re-work, material & labor costs
High inspection costs
Delay in shipping
High repair costs
Higher inventory costs
Greater waste of material

BENEFITS O QUALITY

Higher customer satisfaction

Reliable products/services
Improved process & better efficiency of operations
More productivity & profit
Better morale of work force
Less wastage costs
Less Inspection costs
More market share
Spread of happiness & prosperity
Better quality of life for all.

TQM DEFINITION
Total Quality Management (TQM) is enhancement to the
traditional way of doing business. TQM is the art of managing
the whole to achieve excellence in the quality of products and
services, which is applicable to all organizations.
An organization wide commitment to infusing quality into
every activity through continuous improvement (Daft, 2006)
Total:- Made up of whole or Involvement of all levels in the
organization
Quality:-Degree of excellence a product or service provides or
Conformance to agreed upon requirements
Management:- Act, art or manner of planning, organizing, directing
and controlling.

INTRODUCTION
TQM is an approach or philosophy to improve the effectiveness of
business as a whole. It is essentially a way of organizing and involving
the whole organization, every department, every activity and every
single person at every level. TQM ensures that the management adopts a
strategic overview of the quality and focuses on prevention rather than
inspection.
It is the application of quantitative methods and human resources to
improve all the processes within an organization and exceeds customer
needs now and in future.
This involves the continuous improvement of organizational processes,
resulting in high quality products and services.
The importance of TQM lies in the fact that it encourages innovation,
makes the organization adaptable to change, motivates people for better
quality, and integrates the business arising out of a common purpose and
all these provide the organization with a valuable and distinctive
competitive edge.

OBJECTIVES OF TQM
Key Point: two main objectives:
(1) Total Customer Satisfaction ( be customer focused)
through quality products and services. It is the primary
objective and the key to organizational survival and growth.
(2) continuous improvements of quality into processes,
systems, people, suppliers, partners, products, and services.
The foundation of total quality is a management philosophy that supports
meeting customer requirements through continuous improvement.

Measurement of Success:
100% Customer Satisfaction
Method of Achievement:
Continuous Improvement

NEW TQM & OLD TQM APPROACH

TQM

Traditional Approach

Product focus
Short-term focus
Detection
Focus on who and why
Status quo focus
Quality Control personnel
Individuals
Lack of Communication

Customer focus
Long-term focus
Prevention
Focus on what and how
Process improvement focus
Every One
Cross-functional teams
Open communication