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Total Quality

Management

Total Quality Management

Total Quality Management


TQM is a philosophy which applies equally
to all parts of the organization.
TQM can be viewed as an extension of the
traditional approach to quality.
TQM places the customer at the
forefront of quality decision making.
Greater emphasis on the roles and
responsibilities of every member of staff
within an organization to influence quality.
All staff are empowered.

Total Quality Management


Doing things right..

.FIRST time.
Internetix (2005)

Why TQM?
Ford Motor Company had operating
losses of $3.3 billion between 1980
and 1982.
Xerox market share dropped from 93%
in 1971 to 40% in 1981.
Attention to quality was seen as a way
to combat the competition.

Total Quality Management

Elements of TQM
Leadership
Top management vision, planning and support.

Employee involvement
All employees assume responsibility for the quality
of their work.

Product/Process Excellence
Involves the process for continuous improvement.

Elements of TQM
Continuous Improvement

A concept that recognizes that quality improvement is a


journey with no end and that there is a need for continually
looking for new approaches for improving quality.

Customer Focus on Fitness for Use


Design quality

Specific characteristics of a product that determine its value in the


marketplace.

Conformance quality

The degree to which a product meets its design specifications.

A fundamental concept of TQM


from BS 7850 - a Process

A set of inter-related resources and activities

which transform inputs into outputs. (ISO 8402).


Any activity that accepts inputs, adds values to
these inputs for customers, and produces outputs
for these customers. The customers may be either
internal or external to the organization. (BS 7850)

"The Simple Process"


Control
s

Input
s

Proces
s

Resources
(Source: BS 7850: 1992, Total Quality
Management)

Output
s

Changing Role of the Process Owner

Input
from
supplier

Process
1

As
customer
Process
owner

As
supplier

Outpu
t

Input

Process
1

As
customer
Process
owner
Output
As supplier to
custome
r

(Source: BS 7850: 1992, Total Quality Management)

TQM & organizational Cultural Change


Traditional Approach

TQM

Lack of communication

Open communications

Control of staff

Empowerment

Inspection & fire fighting

Prevention

Internal focus on rule

External focus on customer

Stability seeking

Continuous improvement

Adversarial relations

Co-operative relations

Allocating blame

Solving problems at their roots

Gap

Expectations >
perceptions

Perceived quality
is poor
Gap

Expectations =
perceptions

Source: Slack et al. 2004

Customers
perceptions of the
product or service

Customers
expectations
for the product
or service

Customers
perceptions of
the product or
service

Customers
expectations of
the product or
service

Customers
perceptions of
the product or
service

Customers
expectations for
the product or
service

Perceived quality is governed by the gap between customers


expectations and their perceptions of the product or service

Expectations <
perceptions

Perceived quality is
good

Additional views of Quality in Services


Technical Quality versus Functional Quality

Technical quality the core element of the good or service.


Functional quality customer perception of how the good
functions or the service is delivered.

Expectations and Perceptions

Customers prior expectations (generalized and specific service


experiences) and their perception of service performance affect
their satisfaction with a service.
Satisfaction = (Perception of Performance) (Expectation)

Word of mouth
communications

Previous
Experience

Image of product
or service

Customers
perceptions
concerning the
product or service

Customers
expectations
concerning a
product or service

A Gap model
of Quality

Gap 4

Customers own
specification of
quality
Gap 1

organizations
specification of
quality

Managements
concept of the
product or service

The actual product


or service

Gap 3

Gap 2

Source: Parasuraman, Zeithman and Berry.


1985

Continuous
Improvement
Philosophy that seeks to make never-ending
improvements to the process of converting
inputs into outputs.
Kaizen: Japanese
word for continuous
improvement.

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, outdated organizational cultures.

Obstacles to Implementing TQM


Lack of a company-wide definition of quality.
Lack of a formalized strategic plan for change.
Lack of a customer focus.
Poor inter-organizational communication.
Lack of real employee empowerment.
Lack of employee trust in senior management.
View of the quality program as a quick fix.
Drive for short-term financial results.

Some criticisms of
TQM
1. Blind pursuit of TQM programs
2. Programs may not be linked to
strategies
3. Quality-related decisions may not be
tied to market performance
4. Failure to carefully plan a program

Performance

PDCA Cycle repeated to


create continuous
improvement

Plan
Act

Do
Check

Continuous
improvement
Time

Recognizing and
rewarding Quality
Promotion of high quality goods and
services
Malcolm Baldrige National Quality Award
(MBNQA) (United States)
Deming Prize (Japan)
European Quality Award (European Union)
ISO9000 certification

The integrated framework of the


Baldrige Award criteria

Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)

Continual
Continualimprovement
improvementof
ofthe
thequality
qualitymanagement
management system
system
Customers
(and other
interested
parties)

Customers
(and other
interested
parties)

Management
responsibility

Measurement,
analysis and
improvement

Resource
management
Requirements
Input

Key:
Value adding activity
information flow

Product
realisation

Product

Satisfac
tion
Output

Source: BS EN ISO
9001:2000

TQM: A Buzzword Losing


Popularity
For many companies, the term TQM is associated
with corporate programs (mid 1980s ~ early 1990s)
aimed at implementing employee teams and
statistical process control.
Unfortunately, many companies were dissatisfied
with the perceived results of these programs,
concluding TQM does not work.
Question: Why were they dissatisfied?
Were they justified?

Total Quality Management

TQM

Total - made up of the whole


Quality - degree of excellence a product or
service provides
Management - act, art or manner of planning,
controlling, directing,.
Therefore, TQM is the art of managing the
whole to achieve excellence.
excellence

Total Quality Management

What does TQM mean?


Total Quality Management means that the
organization's culture is defined by and
supports the constant attainment of
customer satisfaction through an integrated
system of tools, techniques, and training.
This involves the continuous improvement of
organizational processes, resulting in high
quality products and services.

Total Quality Management

Another way to put it


At its simplest, TQM is all managers
leading and facilitating all
contributors in everyones two main
objectives:
(1) total client satisfaction through quality
products and services; and
(2) continuous improvements to processes,
systems, people, suppliers, partners, products,
and services.

Total Quality Management

Productivity and TQM


Traditional view:
Quality cannot be improved without
significant losses in productivity.

TQM view:
Improved quality leads to improved
productivity.

Total Quality Management

Basic Tenets of TQM


1. The customer makes the ultimate
determination of quality.
2. Top management must provide leadership
and support for all quality initiatives.
3. Preventing variability is the key to producing
high quality.
4. Quality goals are a moving target, thereby
requiring a commitment toward continuous
improvement.
5. Improving quality requires the
establishment of effective metrics. We must
speak with data and facts not just opinions.
Total Quality Management

The three aspects of


TQM
Counting
Customers
Culture

Tools, techniques, and training in


their use for analyzing,
understanding, and solving quality
problems
Quality for the customer as a
driving force and central concern.
Shared values and beliefs,
expressed by leaders, that define
and support quality.
Total Quality Management

Total Quality Management


and 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.

Total Quality Management

Continuous Improvement versus


Traditional Approach
Continuous Improvement

Traditional Approach

Market-share focus

Individuals
Focus on who and why

Short-term focus

Status quo focus

Product focus
Innovation

Fire fighting

Customer focus
Cross-functional teams
Focus on what and how
Long-term focus
Continuous improvement
Process improvement
focus
Incremental improvements
Problem solving

Total Quality Management

Quality Throughout
A Customers impression of quality begins with
the initial contact with the company and
continues through the life of the product.

Customers look to the total package - sales, service


during the sale, packaging, deliver, and service after
the sale.
Quality extends to how the receptionist answers the
phone, how managers treat subordinates, how
courteous sales and repair people are, and how the
product is serviced after the sale.

All departments of the company must strive to


improve the quality of their operations.
Total Quality Management

Value-based Approach

Manufacturing
Dimensions

Service Dimensions

Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality

Reliability
Responsiveness
Assurance
empathy
Tangibles

Total Quality Management

The TQM System


Continuous
Improvement

Objective

Principles Customer
Focus

Process
Total
Improvement Involvement

Leadership
Education and Training
Supportive structure
Elements
Communications
Reward and recognition
Measurement

Total Quality Management