TOTAL QUALITY MANAGEMENT

Contents

• Introduction.
• Concepts of tqm.
• Benefits of tqm.
• Characteristics of tqm.
• Key elements of tqm.
• Advantages.
• Disadvantages.
• Conclusion.
• References.
 Introduction

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.
 The concept of TQM

• Produce quality work the first time.

• Focus on the customer.

• Have a strategic approach to improvement.

• Improve continuously.

• Encourage mutual respect and teamwork.

 Various Definitions
 Total quality management (TQM) has been defined as an
integrated organizational effort designed to improve quality at
every level.

 The process to produce a perfect product by a series of measures

require an organized effort by the entire company to prevent or
eliminate errors at every stage in production is called total
quality management.

 According to international organization for standards defined

tqm as, “TQM is a management approach for an organization,
centered on quality, based on the participation of all its
members and aiming at long-term success through customer
satisfaction and benefits to all members of the organization and
to the society.
 Characteristics of TQM
 Committed management.
 Adopting and communicating about total quality
management.
 Closer customer relations.
 Closer provider relations.
 Benchmarking.
 Increased training.
 Open organization
 Employee empowerment.
 Flexible production.
 Process improvements.
 Process measuring
 Traditional approach and TQM
Quality element Previous state TQM
Definition Product-oriented Customer-oriented

Priorities Second to service and First among equals of

cost service and cost
Decisions Short-term Long-term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem solving Managers Teams
Manager’s role Plan, assign, control, Delegate, coach,
and enforce facilitate, and mentor
 The three aspects of TQM

Counting Tools, techniques, and training in

their use for analyzing,
understanding, and solving quality
problems
Customers Quality for the customer as a
driving force and central concern.

Culture Shared values and beliefs,

expressed by leaders, that define
and support quality.
 Principles of tqm

1. Produce quality work the first time and every time.

2. Focus on the customer.

3. Have a strategic approach to improvement.

4. Improve continuously.

5. Encourage mutual respect and teamwork

 THE TQM SYSTEM

Continuous
Objective Improvement

Principles Custom Process Total

er Improvem Involvem
Focus ent ent
Leadership
Elements Education and Training Supportive
structure
Communications Reward and
recognition
Measurement
 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.
Implementation of TQM
For TQM to be successful, the organization must
concentrate on the following key elements:

Integrity
Ethics
Trust
Training
Teamwork
Communication
Recognition
Leadership
Implementation of TQM
The key elements of TQM can be divided into four groups
according to their function:

Foundation: Integrity, Ethics, Trust

Building Bricks: Leadership, Teamwork,Training

Roof: Recognition (Motivation)

Binding Mortar: Communication

 Hoshin planning
• Hoshin kanri: Japanese for management cycle build around Plan,
Do, Check, Act. Elements of this cycle include –
 Quality policies

 Quality goals

 Deployment of goals

 Plans to meet goals

 Organizational structure

 Resources

 Measurement feedback

 Review of progress

 Training
 Process Management
Statistical Process Control (SPC)
 Process management

• Planning and administrating the activities necessary to achieve high

quality in business processes; and also identifying opportunities for
improving quality and operational performance – ultimately,
customer satisfaction.
• Process simplification reduces opportunities for errors and rework.
• Processes are of two types – value-added processes and support
processes.
• Value-added processes – those essential for running the business
and achieving and maintaining competitive advantage. (Design
process, Production/Delivery process)
 Process management

• Support processes – Those that are important to an organization’s

value-creation processes, employees and daily operations.
• Value creation processes are driven by external customer needs
while support processes are driven by internal needs.
• To apply the techniques of process management, a process must be
repeatable and measurable.
• Process owners are responsible for process performance and should
have authority to manage the process. Owners could range from
high-level executive to workers who run a cell.
• Assigning owners ensures accountability.
Process management
 Process control
• Control is the activity of ensuring the conformance to the
requirements and taking corrective action when necessary.
• Two reasons for controlling the process
1. Process control methods are the basis of effective daily
management of processes.
2. Long-term improvements can not be made to a process unless the
process is first brought under control.
• Short-term corrective action should be taken by the process
owners. Long-term remedial action should be the responsibility of
the management.
 Process control
Effective quality control systems include
1. Documented procedures for all key processes
2. A clear understanding of the appropriate equipment and working
environment
3. Methods of monitoring and controlling critical quality
characteristics
4. Approval processes for equipment
5. Criteria for workmanship: written standards, samples etc.
6. Maintenance activities
 Process improvement
• Customer loyalty is driven by delivered value.
• Delivered value is created by business processes.
• Sustained success in competitive markets require a business to
continuously improve delivered value.
• To continuously improve value creation ability, a business must
continuously improve its value creation processes.

• Continuous process improvement is an old management concept

dating back to 1895. However, those approaches were mainly
productivity related.
• More recently (1951) Toyota implemented Just-In-Time which
relies on zero defects and hence continuous improvement!
 Process improvement: Kaizen
• Japanese for gradual and orderly continuous improvement over a
long period of time with minimum financial investment, and with
participation by everyone in the organization.
• Improvement in all areas of business serves to enhance quality of
the firm.
• Three things required for successful kaizen program: operating
practices, total involvement, and training.
• Operating practices expose opportunities for improvement. JIT
reveals waste and inefficiency as well as poor quality.
 Process improvement: Kaizen
• Every employee strives for improvement. Top management views
improvement as part of strategy and supports it. Middle
management can implement top management’s improvement goals
by establishing, maintaining, and upgrading operating standards.
Workers can engage through suggestions, small group activity.
• Middle management can help create conducive environment for
improvement by improving cooperation amongst departments, and
by making employees conscious of their responsibilities for
improvement.
• Supervisors can direct their attention more on improvement than
supervision, which will facilitate communication.
 Kaizen: Implementation
• The Deming cycle: Originally developed by Walter Shewart, but
renamed in 1950s because Deming promoted it extensively.
 Kaizen: Implementation
• Plan – Study the current system; identifying problems; testing
theories of causes; and developing solutions.
• Do – Plan is implemented on a trial basis. Data collected and
documented.
• Study – Determine whether the trial plan is working correctly by
evaluating the results.
• Act – Improvements are standardized and final plan is implemented.

• Variation of PDSA cycle: FADE – Focus, Analyze, Develop,

Execute cycle!
 Kaizen: Implementation

Juran’s breakthrough sequence:

1. Proof of the need
2. Project identification
3. Organization for breakthrough – two paths identified: symptom to
cause (diagnostic) and cause to remedy (remedial) paths.
4. Diagnostic journey
5. Remedial journey
6. Holding the gains.
 Process improvement tools
Seven QC Tools

1. Flow charts
2. Check sheets
3. Histograms
4. Pareto diagrams
5. Cause-and-effect diagrams
6. Scatter diagrams
7. Control charts
The Seven TQM Tools

With correct implemention of the Seven TQM

Tools 95% of quality related problems can be
solved.
The Seven TQM Tools

1. Check Sheets
2. Histograms
3. Scatter Diagrams
4. Control Charts
5. Run Charts
6. Ishikawa Diagram
7. Pareto Diagram
Check Sheets

Check Sheets are simple documents

that are used for collecting data in
real-time.
A Check Sheet is typically a blank
form that is designed for the quick,
easy and efficient recording of the desired information,
which can be either quantitative or qualitative.
When the information is quantitative, the check sheet is
called a Tally Sheet.
Histograms
A histogram divides
up the range of
possible values in a
data set into classes or
groups.
For each group, a
rectangle is constructed
with a base length equal to the range of values in that
specific group, and an area proportional to the number of
observations falling into that group.
Scatter Diagrams
Scatter Diagrams are
used to present
measurements of two
or more related variables.
A Scatter Diagram does
not specify dependent or
independent variables.
Either type of variable can be plotted on either axis.
Scatter Diagrams represent the association (not causation)
between two variables.
Control Charts
A control chart consists
of the following:
CL

A Centre Line (CL) drawn

at the process mean value.

Lower and Upper Control Limits that indicate the

threshold at which the process output is considered
statistically unlikely.
 Run Charts
Run Charts are
similar in some
regards to Contol
Charts, but do
not show the
control limits of
the process.
They are therefore
simpler to produce, but do not allow for the full range of analytic
techniques supported by Control Charts.

• Run chart: Measurement against progression of time.

• Control chart: Add Upper Control Limit and Lower Control Limit to the
run chart.
 Also called fishbone diagrams (because of
their shape) or Ishikawa diagrams.
Helps in identifying root causes of the quality
failure. (Helps in the diagnostic journey.)
Ishikawa Diagram

Machine Manpower

Problem

Method Material

Ishikawa Diagram is also called Cause-and-Effect Diagram.

Often are four generic heading used: 4 M´s!
Pareto Diagram
The purpose of the Pareto Diagram is to highlight the
most important set of factors among a typically large
amount of causes for a problem.

In order to develop the Pareto Diagram for a specific

process, the knowledge of Frequncy, Relative Frequency,
Cumulative Frequency and Percentage Frequency is
needed.
Pareto Diagram

It can be noted that the 3 defects of out-of-dimension, poor

surface finish and loose joints account for 75% of the
rejections.
 Quality as a Function of Time and Methods
Total Quality
Management
(TQM)

Quality
Through
Quality

Design

Statistical
Process Improved
Control Design
Inspection (SPC)

1920 1940 1960 1980 2000

 Other tools: Flow charts
• Process map identifies the sequence of activities or the flow in a
process.
• Objectively provides a picture of the steps needed to accomplish a
task.
• Helps all employees understand how they fit into the process and
who are their suppliers and customers.
• Can also pinpoint places where quality-related measurements should
be taken.
• Also called process mapping and analysis.
• Very successfully implemented in various organizations. e.g.
Motorola reduced manufacturing time for pagers using flow charts.
 Scatter diagrams

• Graphical components of the regression analysis.

• Often used to point out relationship between variables. Statistical
correlation analysis used to interpret scatter diagrams.
 The key elements of the TQM

 Focus on the customer.

 Employee involvement

 Continuous improvement
 Focus on the customer

• It is important to identify the organization’s customers.

• External customers consume the organization’s product

or service.

• Internal customers are employees who receive the output

of other employees.
 Employee Involvement

• Since the quality is considered the job of all employees,

employees should be involved in quality initiatives.

• Front line employees are likely to have the closest contact with
external customers and thus can make the most valuable
contribution to quality.

• Therefore, employees must have the authority to innovate and

improve quality.
Continuous improvement
Continuous improvement
 CONTINUOUS IMPROVEMENT
• The quest for quality is a never-ending process in which people
are continuously working to improve the performance, speed and
number of features of the product or service.
• Continuous improvement means that small, incremental
improvement that occurs on a regular basis will eventually add up
to vast improvement in quality.
• 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.
 Continuous Process Improvement.
 View all work as process – production and business.

 Process – purchasing, design, invoicing, etc.

 Inputs – process – outputs.

 Process improvement – increased customer satisfaction.

 Improvement – 5 ways:
 reduce resources, reduce errors, meet expectations of
downstream customers, make process safer, make process
more satisfying to the person doing
 BENEFITS OF TQM:

• Improved quality.
• Employee participation.
• Team work.
• Working relationships.
• Customer satisfaction.
• Employee satisfaction.
• Productivity.
• Communication.
• Profitability.
• Market share.
 Advantages of tqm

• Improves reputation- faults and problems are spotted and

sorted quicker.

• Higher employee morale- workers motivated by extra

responsibility ,team work and involvement indecisions of
tqm.

• Lower cost.

• Decrease waste as fewer defective products and no need

for separate.
 Disadvantages of tqm

• Initial introduction cost.

• Benefits may not be seen for several years.

• Workers may be resistant to change.

A model for organization management.
Models of tqm
 CONCLUSION:

• TQM encourages participation amongst employees, managers and

organization as whole.
• Using Quality management reduces rework nearly to zero in an achievable
goal .The responsibilities either its professional, social, legal one that rest with
the pharmaceutical manufacturer for the assurance of quality of product are
tremendous and it can only be achieved by well organised.
• Work culture and complete engagement of the employees at the work place. It
should be realised that national & international regulations must be
implemented systematically and process.
• Control should be practiced rigorously.
• Thus quality is critically important ingredient to organisational success today
which can be achieved by TQM, an organisational approach that focusses on
quality as an over achieving goals, aimed at aimed at the prevention of defects
rather than detection of defects..
 Reference:
• Text book of Total Quality Management by L.Suganthi and
Anand A.Samuel,2nd edition,2005,page no.49-61.
• Total Quality Management by R.S Nagarajan,
A.A.Arivalangar,new age international publishers,1st
edition,2009,page no.21.
• www.slideshare.com/tqm