Total Quality Management

(TQM)

Introduction
Total Quality Management (TQM)

What is Quality
?
Meaning of Quality
 Webster’s Dictionary
 degree of excellence of a thing
 American Society for Quality
 totality of features and
characteristics that satisfy needs
 Consumer’s and Producer’s
Perspective
Consumer’s Perspective
 Fitness for use
 how well product or service does what it is
supposed to
 Quality of design
 designing quality characteristics into a product or
service
 A Mercedes and a Ford are equally “fit for use,” but
with different design dimensions
Dimensions of Quality:
Manufactured Products
 Performance
 basic operating characteristics of a
product; how well a car is handled or its
gas mileage
 Features
 “extra” items added to basic features, such
as a stereo CD or a leather interior in a car
 Reliability
 probability that a product will operate
properly within an expected time frame;
that is, a TV will work without repair for
about seven years
Dimensions of Quality:
Manufactured Products
 Conformance
 degree to which a product meets pre–
established standards
 Durability
 how long product lasts before
replacement
 Serviceability
 ease of getting repairs, speed of repairs,
courtesy and competence of repair
person
Dimensions of Quality:
Service
 Time and Timeliness
 How long must a customer wait for service,
and is it completed on time?
 Is an overnight package delivered
overnight?
 Completeness:
 Is everything customer asked for provided?
 Is a mail order from a catalogue company
complete when delivered?
Dimensions of Quality:
Service (contd)
 Accessibility and convenience
 How easy is it to obtain service?
 Does a service representative answer you calls
quickly?
 Accuracy
 Is the service performed right every time?
 Is your bank or credit card statement correct every
month?
 Responsiveness
 How well does the company react to unusual
situations?
 How well is a telephone operator able to respond to
a customer’s questions?
Meaning of Quality:
Producer’s Perspective
 Quality of Conformance
 Making sure a product or service is
produced according to design
 if new tires do not conform to
specifications, they wobble
 if a hotel room is not clean when a guest
checks in, the hotel is not functioning
according to specifications of its design
Meaning of Quality
Importance of Quality
Good Quality of goods and
services can provide an
organization with competitive
edge.
Good quality increases
productivity , profits and other
measures of success such as
brand image, product image and
company image
Good Quality reduces costs due
Importance of Quality
Good quality generates satisfied
customers , who reward the
organization with continued
patronage and favorable word-of
–mouth advertising

“No quality, no sales. No sale,

no profit. No profit no jobs”
Evolution of Quality Management

In 1900s
F. W Taylor, the Father of
Scientific Management : Product
inspection
G.S Radford’s contributions :
Quality considerations in the
early in the product design stage
and linking together high quality,
increased productivity and lower
costs
Evolution of Quality Management
In 1924
W. Shewhart introduced Statistical
control charts to monitor production.
1930s
H.F Dodge and H C Roming introduced
tables for the acceptance sampling
1950s
W. Edwards Deming introduced
Statistical Quality Control (SQC) methods
to Japanese Manufactures
Evolution of Quality Management

Armand Feigenbaum proposed total

quality control which enlarged the focus
of quality control –from product design
and the incoming raw material.
1960s
Concept of Zero-defects gained favour.
Philips Crosby started the champion of
Zero-defects
1970s
Started US quality Revolution
Evolution of Quality Management

1985s
US Govt. recognised quality as critical to
nation economy.
1985s
NASA announced excellence Award for
quality and productivity.
Malcolm Baldrige National Award was
established by the act of congress in 1987
1990s
Deming Prize for quality
 Quality Management and
control is recognized as a
foundation of business
competitiveness and is
proactively integrated with
all business practices
 What is TQM?
 TQM is the enhancement to the traditional way
of doing business.
 It is a proven technique to guarantee survival
in the world-class competition.
 TQM is for the most part common sense.
 Analyzing three words (TQM), we have:
Total—Made up of the whole
Quality—Degree of excellence a product or
service provides
Management—Act, art, or manner of
handling, controlling, directing, etc.
 Therefore TQM is the art of managing the
whole to achieve the excellence.
TQM- Main Objectives

Total client satisfaction

through quality products and

services; and
 Continuous improvements to
processes, systems, people,
suppliers, partners, products, and
services.
The Simple Objective of
TQM

“Do the right things,

right the first time,
every time.”
Basic Tenets of TQM
The customer makes the ultimate determination of
quality.
Top Management must provide leadership and support
for all quality initiatives.
Preventing variability is the key to producing high
quality.
Quality goals are a moving target, thereby requiring a
commitment toward continuous improvement.
Improving quality requires the establishment of effective
metrics.
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.
Evolution of TQM

The Deming Philosophy

The Juran philosophy

The Crosby philosophy

Deming Cycle
PDCA Cycle
The Juran philosophy
 Pursue quality on two levels-
 The mission of the firm as a whole is to achieve high
product quality.
 The mission of each individual department is to achieve
high production quality.

 Quality Trilogy –

◦ Quality planning

◦ Quality control

◦ Quality improvement
The Crosby philosophy
Absolute’s of Management
Quality means conformance to requirements not
goodness
The system for Achieving quality is prevention not
appraisal
The performance standard is zero defects not that is
close enough
The measurement of quality is the price of non-
conformances not indexes .

Basic Elements of Improvement

 Determination (commitment by the top management)
 Education (of the employees towards Zero Defects (ZD))
 Implementation (of the organizational processes towards ZD)