TOTAL QUALITY

MANAGEMENT (TQM)
 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.
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

 “A set of inter-related resources and activities

which transform inputs into outputs.”

 “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.”
DIMENSIONS OF QUALITY OR
QUALITY CHARACTERISTICS
what the customer looks in a product.

DIMENSIONS OF QUALITY FOR PRODUCTS & SERVICES

Performance Features
Reliability Conformance
Durability Serviceability
THE COST OF QUALITY
PREVENTION COSTS
Quality planning costs
Product design costs
Process costs
Training costs
Information costs
THE COST OF QUALITY (CONT.)
INTERNAL FAILURE COSTS
Scrap costs
Rework costs
Process failure costs
Process downtime costs
Price reduction
THE COST OF QUALITY (CONT.)

EXTERNAL FAILURE COSTS

Customer complaint costs
Product return costs
Warranty claim costs
Product liability costs
Lost sales costs
TQM PRINCIPLES
Customer-defined quality
Management leadership toward quality
Strategic quality planning
Employee responsibility
Continuous quality improvement
Cooperation between the employees and the management
Use of statistical quality control
Training
 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
 Customers’
expectations for
the product or
service

is poor
Customers’

perceptions
perceptions of
Gap

Expectations >
the product or
service

Perceived quality
Customers’
expectations of
the product or
service

perceptions Customers’
perceptions of
Expectations =

the product or
service

Source: Slack et al. 2004

Customers’
expectations
for the product
Gap

or service
perceptions

Customers’
Expectations <

perceptions of the
expectations and their perceptions of the product or service

product or service
Perceived quality
is good
Perceived quality is governed by the gap between customers’
 Previous Word of mouth Image of product
Experience communications or service

Customer’s Customer’s
expectations perceptions
concerning a concerning the
product or service product or service
A “Gap” model
of Quality Customer’s own
Gap 4
specification of
quality
The actual product
Gap 1 or service

Management’s organization’s
concept of the specification of
product or service quality
Gap 3
Gap 2

Source: Parasuraman, Zeithman and Berry. 1985

1. Pareto Chart
A method for identifying causes of poor quality
No. of Occurrences
per Month
ABC Classification of Defects
100
80 Group A: Critical Defects
60 Group B: Moderate Defects
40 Group C: Minor Defects
20
ประเภทข้อบกพร่อง
2. A Process Chart
A diagram showing job operations or a process
Brush Body
Fibers
Fill
Box
Trim
Make Inspect
Insert
Plastic Sheet Close
Wrap
Master Box Inspect

Fold Up Reserve

Pallet Master Pack

Stack
Deliver
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.

 Politics and turf issues.

 PDCA Cycle repeated to
create continuous
improvement
Performance

Plan
Do
Act
Check
“Continuous”
improvement

Time
 Continual
Continualimprovement
improvementof
of the
thequality
qualitymanagement
management system
system

Customers Customers
(and other Management (and other
interested responsibility interested
parties) parties)

Measurement,
Resource
analysis and
management improvement
Satisfaction

Requirements

Input
Product Output
Key: Product
Value adding activity realisation
information flow

Source: BS EN ISO 9001:2000

3. A Check Sheet
A list of causes of quality problems with the
number of defects resulting from each cause
Hour
Defects 1 2 3 4 5 6 7 8
Cracks / /// / / / /// /
Dents / // / // /// /
Hairlines // / // // //// /
4. A Histogram
A bar chart showing the frequency of occurrence of causes of defects

Dispersion
No. of Occurrences

Length
5. A Scatter Diagram
A graph showing how two process variables relate to each other
Productivity

Absentees
6. A Control Chart and Statistical
Process Control (SPC)
Monitoring of a production process using the statistical
quality control technique
0 .2 5
0 .2 UCL
0 .1 5
0 .1
0 .0 5
0 LCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
7. A Fishbone Diagram
A chart showing the different categories of problem causes.
Causes
Materials Method
Effect
Quality Problems

Manpower Machine