TOTAL QUALITY MANAGEMENT (TQM)

and
CASE STUDY ON TQM IN TESCO COMPANY
OF THE UK RETAIL INDUSTRY

Coordinator Participants
Dr. Kumar Bijoy Col Ashoo Khosla
Col Gaurav Kamboj
Lt Col Sansar Singh
Sh Vijay Kumar Balayan
TQM-Introduction, Origin and Development

 Total Quality Management (TQM) describes a management approach to long-

term success through customer satisfaction. In this effort, all members of an
organization participate in improving processes, products, services, and the
culture in which they work.
 It consists of organization-wide efforts to install and make permanent climate
where employees continuously improve their ability to provide on demand
products and services that customers will find of particular value.
 TQM originated in the 1950s and has steadily become more popular since the
early 1980s.
 It is a combination of quality and management tools aimed at increasing
business and reducing losses due to wasteful practices. Some of the companies
who have implemented TQM include Ford Motor Company, Phillips
Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.
 TQM- Definition and meaning
 TQM is a management philosophy that seeks to integrate all organizational functions
(marketing, finance, design, engineering, and production, customer service, etc.) to focus
on meeting customer needs and organizational objectives.
 The concept of TQM views an organization as a collection of processes. It maintains that
organizations must strive to continuously improve these processes by incorporating the
knowledge and experiences of workers.
 Most simple objective of TQM is ‘Do the right things, right the first time, every time.’
 Main foundation for activities include :-
(a) Commitment by senior management and all employees.
(b) Meeting customer requirements.
(c) Reducing development cycle times.
(d) Just in time/demand flow manufacturing.
(e) Improvement teams.
(f) Reducing product and service costs.
What is TQM
 Primary Elements of TQM
 The aspect of TQM can be summarized as a management system
for a customer-focused organization that involves all employees in
continual improvement.
 It uses strategy, data, and effective communications to integrate
the quality discipline into the culture and activities of the
organization.
 Primary elements include- customer focused, total employee
involvement, process-centred, integrated system, strategic and
systematic approach, continual improvement, fact-based decision
making and communications.
W. Edwards Deming’s 14 points for TQM
1.Create constancy of purpose for 8. Drive out fear
improving products and services

2. Adopt the new philosophy 9. Break down barriers between staff

areas

3. Cease dependence on 10. Eliminate slogans, exhortations and

inspection to achieve quality targets for the workforce

4. Cease dependence on 11. Eliminate numerical quotas for

inspection to achieve quality workforce and numerical goals for
management

5. Improve constantly and forever 12. Remove barriers that rob people of
pride of workmanship

6. Institute training on the job 13. Institute a vigorous program of

education and self-improvement for
everyone

7. Adopt and institute leadership 14. Put everybody to work

accomplishing the transformation
 Main requirements for successful
implementation of TQM
 Commitment Quality improvement (in all aspects) must be
everyone’s job in the organization.
 Culture There should be proper training to effect the changes in
attitude and culture.
 Continuous Improvement Recognize improvement as a continuous
process, and not merely a one-off program.
 Customer Focus Perfection in service with zero defectives and full
satisfaction to end-user whether it’s internal or external.
 Control Ensure monitoring and control checks for any deviation
from the intended course of implementation.
The PDCA (Plan, Do, Check and Act)
Cycle

This Photo by Unknown Author is licensed under CC BY-SA

 Beliefs about Total Quality
Management
1. Satisfaction of the customer/owner is the measure of quality

2. Everyone is an owner

3. Continuous Quality improvement must be there

4. Analysis of the processes is the key to quality improvement

5. Constant TQM is not possible without consistent, active and enabling

leadership by managers at all levels

6. Incessantly improve quality of the products and services which we are

supposed to provide to our customers/owners
 Practical approach to TQM
When we implement TQM, we implement a concept. Practice has proved
that there are a number of basic assumptions which includes:
 Train senior management on total quality management principles
 Assess the current culture, customer satisfaction and the quality system
 Senior management determines the desired core values and principles and
communicates
 Develop a basic total quality management plan
 Identify and prioritize customer needs and the market and determine the
organization’s products and services
 Determine the critical processes that can make a substantial contribution
to the products and services
 Create teams that can work on process improvement for example quality
circles.
Benefits and Advantages of TQM
 Less products defects
 Satisfied customers
 Lower costs
 Well-defined cultural values
 Strengthened competitive position
 Higher productivity and enhanced market image
 Improved customer focus and satisfaction enhances customer
loyalty and retention
 Increased job security and improved employee morale
 Enhanced shareholder and stakeholder value
 Barriers to TQM Implementation
 Lack of management commitment.
 Inability to change culture.
 Improper planning.
 Lack of continuous training.
 Incompatible organizational structure.
 Isolated Individuals and departments.
 Ineffective measurement techniques.
 Lack of access to data.
 Inadequate attention to external & internal customers.
 Inadequate empowerment and teamwork.
 Failure to continually improve.
Case Study on TQM in TESCO company
of the UK retail industry
 TQM techniques had to be made to fit into the service industry
 In as much as its resources, time and system are used for cash and asset
management, the supermarket has also devoted all its resource in
management of its customers as well as its services.
Use of TQM techniques by Tesco to improve efficiency and effectiveness:
 The main focus in quality assurance for the company is to provide
customers with products and services that will meet their needs as well as
providing products and services that are free of accidents, wastes or
defects
Approaches to Improve TQM and customer care:
 Leadership in a company needs to be active and involved in all aspect of
business function
 Collective ownership of Marketing, human resource, and customer service
are important business functions
 Conclusion
 TQM can be defined as a means of seeking excellence in all
functions of business in order to prevent possibilities of errors or
mistakes and to create optimal customer satisfaction.
 Quality is used a strategic weapon where companies use to
compete within the current markets.
 Quality pleases the consumers who are the most important people
for any business whether in service sector or deals with production
of goods.
 The group under study through this paper has provided a critical
analysis of case studies that focus on how the UK based Tesco
supermarket has introduced and developed a holistic system of
TQM
 techniques of TQM are applied on every essential function of a
business.