Total Quality Management

• Total= Made up of whole

• Quality= Degree of excellence a product/service
provides
• Management= Act/art ( manner of handling,
controlling, directing, etc..)

TQM is an art of Managing the whole to achieve

excellence
 TQM focuses on quality at every
level.
An organization that adopts TQM
should be ready to implement change.
QUALITY is the BUZZ word in the
domestic and International markets.
Organizations should review its
policies, practices and procedures in
all areas of management, keeping in
mind that Quality is the way of life
and not a magic formula.
 Needs of TQM
• Rising Customer Expectations
• Increasing Competitive Pressure
• Changing perceptions of customers
• Internal pressure for improvement
• Managers and workforce perceptions
• To survive
 What does TQM cover:
• Makes an organization more effective
• Establishes a new culture , which enables
growth and longevity.
• Provides a working environment in which
everyone can succeed.
• Reduces stress, wastes.
• Build teams, partnerships and cooperation.
 Basic Concepts of TQM
• Set the goals and achieving them.
• Customer satisfaction (unwavering focus)
• Workforce participation.
• JIT, efficiency.
• Quality orientation
• Quality improvement.
Hierarchy of TQM
INSPECTION

QUALITY CONTROL

QUALITY ASSURANCE

TQM
 TQM Axioms (Pre-Requisites)
• Commitment
• Training
• Recognition
• Ethics & Trust
• Communication
• Supervision
• Teamwork
 Success of TQM
• Reduction in complaints
• Involvement of all the work force
• Recognition by the customers
• Improved attitudes at & to work
• Reduction in errors
• Increases productivity
• Problem solving tool
 QUALITY
• Excellent product that fulfills or exceeds
our expectations.
• Degree of excellence a product provides.
• The result of care.
• It is what the customer gets out & is willing
to pay for.
• The product free of deficiencies/defects.
• Superior or high rank.
 QUALITY

• Quality= Performance/Expectation
• If Quality > 1 (customer has good feeling
about the product)
• Performance/Expectation are based upon
perception.
 Dimensions of Quality
• Performance (Primary Product Characteristic)
• Features (Secondary Product Characteristic)
• Durability
• Service
• Response
• Reputation
• Conformance
• Aesthetics
• Reliability
 Customer & TQM
• The word Customer derives from CUSTOM
meaning habit…. (needs, requirements, wants,
desires) as how to fulfill these..
• TQM does not occur overnight, there are no quick
remedies.
• TQM focuses on quality at every level.
• An org. that adopts TQM should be ready to
implement change
• An org’s success depends on how many customers it
has, how much they buy & how often they buy.
 CUSTOMER SATISFACTION
(Quality)

• The concept of right Quantity.

• The concept of right Time.
• The concept of right Place.
• The concept of right Price.
 Service Quality Gap Model
(plzz refer to diagram as shown
in class)
1.CUSTOMER EXPECTATION (UNDERSTANDING HE CUSTOMER)
(GAP 1)
2. MANAGEMENT (TRANSFORMING THE CUSTOMER
EXPECTATION/PERCEPTION = SERVICE DESIGN)
(GAP 2)
3.SERVICE STANDARDS ( CONFORMANCE)
(GAP 3)
4.SERVICE DELEIVERY (COMMUNICATION)
(GAP 4)
5.CUSTOMER PERCEPTION (CUSTOMER SATISFACTION)
(GAP 5)

SERVICE = to carry out the orders of customers

 Costs of Quality
1.COST OF CONFORMANCE (UNAVOIDABLE
COST)
(a) Prevention Cost = to investigate, prevent or reduce errors etc.e.g. cost
of planning, training..
(b) Appraisal Cost = cost of assessing the quality achieved.
e.g. cost of inspection/testing, audit..

2. COST OF NON-CONFORMANCE
(AVOIDABLE COST)
(a) Internal Failure Cost = Cost arising within the manufacturing. e.g. re-
inspection, scrap, re-work,re-design, modification, overtime….
(b) External Failure Cost = Cost arising outside the manufacturing. e.g.
replacement, equipment failure, loss of goodwill.
 Historical Review & Japanese
Success / Indian success
• History of Quality Control is as old as industry itself
• The concept of specialization was introduced during Industrial Revolution, as a result a
worker no longer made the entire product, only a portion.
• In 1924, W.A. Shewart developed a Statistical Chart for the control of product variables.
• In 1946, the American Society for Quality Control was formed. Recently the name was
changed to American Society for Quality (ASQ). This organization through publications,
conferences, training, sessions, lectures etc.. Has promoted the use of quality for all
types of production.
• Japanese set the quality standards for the rest of the world. In 1960, Quality
Improvement Techniques were applied by Japanese workers.
• 1970’s & 1980’s = American managers, engineers.. Visited Japan to learn about the
Japanese Miracle.
• 1990 onwards ISO ( International Organization for Standardization) is gaining
popularity for its Quality Management System.
 Historical Review & Japanese
Success / Indian success
• World renowned TQM expert Prof. Washio has predicated
that the quality of Indian manufacturing will overtake that
of Japan in 2020. Indian companies are good at quality, its
time they formulate strategies.
• Many Indian companies have got Deming prize (In 1951
JUSE=Japanese Union of Scientists & Engineers, started
the DEMING PRIZE because Dr. Deming donated the
earnings from the sale of his papers to JUSE)..
• So far China has not even entered the DEMING Radar.