CHAPTER 1

Introduction to
Total Quality Management

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 Chapter Objectives

• Understanding the basic concepts of TQM

• Brief overview of TQM framework
• Contribution of quality gurus in the TQM
journey
• Benefits of TQM

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 What is Quality?

“The quality of a product or service is a customer’s

perception of the degree to which the product or
service meets his or her expectations.”
or
“The totality of features and characteristics of a
product or service that bears on its ability to
satisfy stated or implied needs”

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 What is TQM?
• Total Quality Management (TQM) is an enhancement to the
traditional way of doing business. It is a proven technique to
guarantee survival in the global competition. Only by
changing the actions of the management, corporate culture
an entire organization can be transformed.
• Analysing the three words, 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.
• Thus, TQM is the art of managing the whole to achieve
excellence.

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 What does TQM mean?
• Total Quality Management means that
the organization's culture is defined by and
supports the constant attainment of
customer satisfaction through an
integrated system of tools, techniques,
and training.
• This involves the continuous improvement
of organizational processes, resulting in
high quality products and services.
Total Quality Management
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 What’s the goal of TQM?

“Do the right things right the first

time, every time.”

Total Quality Management

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 Another way to put it
• At it’s simplest, TQM is all managers
leading and facilitating all contributors in
everyone’s two main objectives:

(1) total client satisfaction through quality

products and services; and
(2) continuous improvements to
processes, systems, people, suppliers,
partners, products, and services.
Total Quality Management
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 TQM requires Six Basics
concepts
• A comitted and involved management to provide a
long term top-to bottom organisation support
• A unwavering focus on the customer, both internally
and externally
• Effective involvement and utilization of the entire work
force
• Continous improvement of the business and
production process
• Treating suppliers as partners
• Establish performance measures for the processess

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 New and Old Culture
Quality Element Previous State TQM

Definition Product Oriented Customer Oriented

Priorities Second to service and cost First among equals of

service and cost

Decision Short Term Long Term

Emphasis Detection Prevention

Errors Operations System

Responsibility Quality Control Everyone

Problem Solving Managers Teams

Procurement Price Lifecycle cost,

partnership
Managers Role Plan,assign, control and Delegate, coach,
enforce facilitate and mentor
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• Garvin (1984) also provides discussion of
eight critical dimensions of product
quality.
• The summarized key points concerning
these dimensions of quality is provided
below.

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 Dimensions of Quality for
• Performance
Goods
• Operation
• Reliability
Quality
• Durability
• Conformance
• Serviceability
• Appearance
• Perceived Quality
•
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 The Dimensions of Quality
Performance: Primary product characteristics, such as the brightness
of a picture.
Features: Secondary characteristics, added features, such as a
remote control.
Conformance: Meeting specifications or industry standards,
workmanship.
Reliability: Consistency of performance over time, average time for an
unit to fail.
Durability: Useful life, includes repair.
Service: Resolution of problems and complaints, ease of repair.
Response Human-to-human interface, such as the courtesy of a
dealer.
Aesthetics: Sensory characteristics, such as exterior finish.
Reputation Past performance and other intangibles, such as being
ranked first.
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 Activity
• Identify the dimensions of Quality
• Write the details of those dimensions

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 Activity

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 Beauty
Products

Grosery
Products

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 Furniture

Electronics

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 Service Quality Attributes

Reliability Responsiveness
Tangibles Competence

Access

Security Courtesy
© 1995 Corel Corp.

Credibility Communication

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 Determinants of Service
•
Quality
Reliability – consistency and dependability
• Responsiveness – willingness/readiness of
employees to provide service; timeliness
• Competence – possession of skills and
knowledge required to perform service
• Access – approachability and ease of contact
• Courtesy – politeness, respect, consideration,
friendliness of contact personnel

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 Determinants of Service
Quality -Continued
• Communication – keeping customers
informed in languages they understand
• Credibility – trustworthiness, believability,
honesty
• Security – freedom from danger, risk or doubt
• Understanding/knowing the customer –
making the effort to understands the
customer’s needs
• Tangibles – the physical evidence of the
service

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 Activity

Online Retail
Market

Airline Industry
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 Taxi Industry

Hotel Industry

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 Quality Gurus and Their Major Contribution
Shewhart Statistical Process Control
Ronald Design of Experiments
Fisher
Deming 14-points for Management
Juran Juran Trilogy
Taguchi Robust Design
Ishikawa Quality Tools, Fishbone Diagram
Crosby Zero Defect, “Quality is Free”, Cost
of Poor Quality

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 TQM Framework

Figure 1-1: TQM Framework Diagram

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 Quality Movement in India
• Prof. P. C. Mahalanobis introduced Statistical Laboratory at the
Presidency College, Kolkata, sometime in the 1920s. In the
year of 1931, the Indian Statistical Institute was founded.
• Before India gained it’s independence in 1947, in the country, quality
used to be practiced in quite an informal way.
• Dr. Walter Shewhart visited India between 1947-48 under the
sponsorship of Prof. Mahalanobis of ISI. During three-months long stay
in the country, Dr. Shewhart toured many placed, held conferences and
stimulated interest in statistical quality control among Indian
industrialists.
• In the1960s, the public sector companies led by the Department of
Space, Atomic Energy implemented quality measures in their
establishments. On the later years, quality measures were initiated by
Bharat Heavy Electricals Ltd. (BHEL) and Steel Authority of India Ltd.
(SAIL).

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Standing from left to right, Prof. P. C.Mahalanobis, Pt. Jawaharlal Nehru (then Indian Prime
Minister), Water A. Shewhart (Known as the Father of Quality Control) and Genichi Taguchi
(Shaking Hands with the Prime Minister) at ISI, Calcutta (now Kolkata), in 1954

Source: The Mahalanobis-Taguchi Strategy” by Genichi Taguchi , Rajesh Jugulum.

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 Quality Movement in India
• Quality movement was further consolidated in the 1980s with the
efforts of the Confederation of Indian Industries (CII). Large scale
application of quality tools in private industry sectors was steered
through other industry associations like FICCI (Federation of the
Indian Chamber of Commerce and Industry) and ASSOCHAM. Prof.
Ishikawa, the founder of quality movement in Japan, was invited by the
CII in 1986. He addressed the first national conference for Top
Management on TQC in India. A similar seminar was addressed by Dr.
Juran in 1987.
• Year 1987 also brought the ISO 9000 standards into reality and
several organizations.

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 What is Quality?
Q=P/E
Where P is Performance and E is Expectations

Q<1 Performance does not meet expectations

Q=1 Performance equals expectations

Q>1 performance is better than expectations

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 Obstacles
• Lack of commitment from the management.
• Inability or resistance in accepting changes.
• Improper planning.
• Lack of continuous training and education.
• Incompatible organization structure, isolated
departments and individuals.
• Ineffective performance measures and lack of
visibility of data and results.
• Inadequate use of empowerment and teamwork.

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 Benefits of TQM
• Improved quality and productivity.
• Better employee participation and teamwork.
• Improvement in customer and employee
satisfactions.
• Increase in market share and profitability.
• Improved communication.
• TQM is a good investment according to study by
Hendricks and Singhai
– They studied 600 organizations and showed that there
is strong linkage between TQM and financial
performance.
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 Total Quality Management
(TQM) focuses on
a) Employee
b) Customer
c) Both (a) and (b)
d) None of the above

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 Which of the following is
responsible for quality objective?
a) Top level management
b) Middle level management
c) Frontline management
d) All of the above

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 The following is (are) the machine down
time.
a) Waste
b) No material
c) Breakdown
d) All of the above

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 TQM & ISO both focuses on
a) Customer
b) Employee
c) Supplier
d) All of the above

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 While setting Quality objective, ________
to be considered.
a) Material quality
b) Customer need
c) Market demand
d) All of the above

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 TQM promotes
a) Continuous improvement
b) Small change
c) Employee participation
d) Employee

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 Summary
• TQM encompasses all aspects of business.
• Its key concepts are emphasized towards management
commitment, customer focus, involvement of all stakeholders,
continuous improvement, treating suppliers as partners and
performance metrics.
• The philosophy of TQM has evolved through the contributions of
many quality gurus, including Shewhart, Deming, Juran,
Feigenbaum, Ishikawa, Crosby and Taguchi.
• The principles and tools laid down by the quality gurus experts
provide a solid foundation for the TQM framework. The journey to
TQM starts when the management of an organization realizes the
needs. The needs could arise because of some external factors
such as loss of market share or some internal factors such as loss
of productivity.

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 Summary (Continued)
• There are nine different dimensions of quality. Marketing
should identify the relative importance of these in developing
new products and improving current products.
• There are several obstacles in implementing TQM, the most
important one is the lack of management commitment.
• Sustained implementation of TQM can result in benefits, such
as improvement in quality, productivity, reliability, market
share, revenue, profits and growth.
• A study has shown that companies winning excellence
awards in implementing TQM has outperformed the S&P
index. In spite of this, the proportion of companies
implementing TQM is low.

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 Test Yourself
1. Juran a) Company-wide Quality
2. Crossby control
b) Quality circles
3. Taguchi
c) Control charts
4. Ishikava
d) 14 points of management
5. Feigenbaum e) Trilogy
6. Deming f) Zero defect
7. Shewhart g) Robust design

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 Answer
• 1-e
• 2-f
• 3-g
• 4-a
• 5-b
• 6-d
• 7-c

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