TOTAL QUALITY MANAGEMENT

(TQM)

CHAPTER THREE
 CHAPTER DISCUSSIONS

• Understanding the basic concept of TQM

• Overview of TQM framework
• Contribution of quality gurus in the TQM journey
 DEFINITION

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.

TQM is the art of managing the whole to achieve excellence! Do unto others as you would have them do unto
you.
 BASIC CONCEPTS OF TQM

There are six basic concepts of TQM

 A committed and involved management to provide long-term top-to-bottom organizational support.
 An unwavering focus on the customer, both internally and externally
 Effective involvement and utilization of the entire work process
 Continuous improvement of the business and production process
 Treating suppliers as partners
 Establish performance measures for the processes
 NEW AND OLD CULTURES

Quality Element Previous State TQM

Definition Product-oriented Customer-oriented

Priorities Second to service and cost First among equals of service and cost

Decisions Short-term Long-term

Emphasis Detection Prevention

Errors Operations System

Responsibility Quality control Everyone

Problem solving Managers Teams

Procurement Price Life-cycle costs, partnership

Manager’s role Plan, assign, control, and enforce Delegate, coach, facilitate, and mentor
 GURUS OF TQM

He developed control chart theory with control limits, assignable and chance causes of variation,
Shewhart
and rational subgroups. He also developed PDSA cycle for learning and Improvement.

He developed solid foundation of statistical methods; design of experiments (DOE) and Analysis of
Fisher Variance (ANOVA).

Deaming is the best known quality expert in the world. His14 points provide a theory for
Deming
management to improve quality, productivity and competitive position.

Juran Teach quality management

Hands on involvement
Juran Trilogy
 Quality begins by identifying the customer’s requirements and ends with a product or service in the
Feigenbum hands of a satisfied customer.

Development of Cause and Effect Diagram, quality circle concept, SPC text in Japan.
Ishikawa

Doing it right the first time! Four Absolute of quality management; i) Qulaity is conformance to
Crosby requirements, ii) Prevention of nonconformance is the objective not appraisal iii) The performance
standard is 0 defects and “that’s close enough” iv) Measurement of quality is the cost of
nonconformance.

Taguchi Robust design of parameters and tolerances.

TQM FRAMEWORK
 TOOLS & TECHNIQUES

• Benchmarking
• Information Technology
• Quality Management System
• Environmental management system
• Quality function deployment
• Quality by design
• Failure mood and effect analysis
• Product and service liability
• Total productive maintenance
• Management tools
• Statistical process control
• Experimental design
• Taguchi’s quality engineering
 DIMENSIONS OF QUALITY

Performance – Primary product characteristics, such as the brightness of the picture

Features – Secondary characteristics, added features, such as remote control

Conformance – Meeting specifications or industry standards, workmanship

Reliability – Consistency of performance over time, average time for the 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 the dealer

Aesthetics – Sensory characteristics, such an exterior finish

Reputation – Past performance and other intangibles, such as being ranked first
 TQM LEADERSHIP

A great leader is one who isn’t only good in creating vision, creating the big picture, but also ensuring that he goes
into the nitty-gritty, into the details of making sure that his vision is actually translated into reality through
excellence of execution.
i. people, paradoxically, need security and independence at the same time.
ii. People are sensitive to external rewards and punishments and yet are also strongly self-motivated
iii. people like to hear a kind word of praise. Catch people doing something right, so you can pat them on the
back.
iv. People can process only a few facts at a time; thus, a leader needs to keep things simple
v. People trust their gut reaction more than statistical data
vi. People distrust a leader’s rhetoric if the words are inconsistent with the leaders action.
 THE 7 HABITS OF HIGHLY
EFFECTIVE PEOPLE

HABIT 1: BE PROACTIVE
HABIT II: BEGIN WITH THE END IN MIND
HABIT III: PUT FIRST THING FIRST
HABIT IV: THINK WIN-WIN
HABIT V: SEEK FIRST TO UNDERSTAND, THEN TO BE UNDERSTOOD
HABIT VI: SYNERGY
HABIT VII: SHARPEN THE SAW (RENEWAL)
 BE PROACTIVE

Proactive behavior is a product of conscious choice based on values, rather than reactive behavior, which is
based on feeling. Proactive people let carefully thought about, selected and internalized values tell them how
to respond.

Reactive Proactive
There’s nothing I can do Let’s look at our alternatives
She makes me so mad I control my own feelings
I have to do that I will choose an appropriate response
I can’t I choose
I must I prefer
Things are getting worse What initiative can we use?
 BEGIN WITH THE END IN MIND

The most fundamental application of this habit is to begin each day with an image, picture, paradigm of the end of your life
as your frame of reference.
The philosophy helps to begin with the end in mind;
 Never compromise with honesty
 Remember the people involved
 Maintain a positive attitude
 Exercise daily
 Do not fear mistake
 facilitate the success of subordinates
 Seek divine help
 Read a leadership book monthly
 PUT FIRST THINGS FIRST

Practicing self management or management of time day-by-day, moment-by-moment

Urgent Not Urgent

I II
Important

Crises, fire fighting Prevention, pc

Pressing problems Relationship building
Deadline driven projects Recognizing new opportunities
Planning, recreation
III IV
Not Important

Interruptions, pressing matters Trivia, busy work

Some mail, calls, reports Time wasters
Some meetings, proximate Pleasant activities
Popular activities

Time Management Matrix

 THINK WIN-WIN

Win-Win is a frame of mind and heart that constantly seeks mutual benefit in all human interactions. Both side
come out ahead, in fact, the end result is usually a better way.
Win-Win embraces 5 interdependent dimensions of life
Character – Integrity, maturity and abundance mentality
Relationships – Two parties trust each other and deeply committed to win-win
Agreements – Guidelines, resources, accountability and consequences
Systems – Win-Win agreement can only survive in a system that supports it
Processes – 4 step process;
i) See the problem from the other viewpoint ii) Identify the key issues and concerns iii) Determine acceptable
results iv) Seek possible new options to achieve those results
 S E EK F I R S T TO U N D ER S TA N D , TH E N TO BE
U N D E R S TO O D

Seek First to Understand

 Empathetic Listening (how the other person sees the world, how they feel. Deeply understand the person
emotionally and intellectually)

To be Understood
 Ethos – Personal credibility or character
 Pathos – Empathy you have with other person’s communication
 Logos – Logic or reasoning part of your presentation
 SYNERGY

Whole is greater than parts. Together, we can accomplish more than any of us can accomplish alone.
 Win-Win philosophy
 Empathetic communication
 Tough challenges
 Drop/leave win-lose mentality
 SHARPEN THE SAW (RENEWAL)

Sharpen the Saw so it will cut faster.

 Physical (following good nutrition, rest and relaxation, and regular exercise)
 Spiritual (commitment to value system; prayer, meditation and spiritual reading)
 Mental ( develop intellectual thought reading, seminars, writing)
 Social/Emotional
 THE JURAN TRILOGY
DR. JOSEPH JURAN

 Planning (Budgeting)
 Control (Expense measurement)
 Improvement (cost reduction)
 PLANNING

 External Customers
- being a user of the product and services
- communicate with the customers through product satisfaction/dissatisfaction
- simulation in the laboratory
 Develop product and service process
- quality function deployment
- Taguchi’s quality engineering
 Develop the process
 Transferring plans to operation
 CONTROL

 Determine items/ subjects to be controlled and their units of measure

 Set goals for the controls and determine what sensors need to be put in place to measure the product, process and
service.
 Measure actual performance
 Compare actual performance to goals
 Act on the difference
 IMPROVEMENT

• Establishment of an effective infrastructure (quality council)

• Problem solving method
 PDSA CYCLE
SHEWHART & DEMING
CONTINUOUS PROCESS
IMPROVEMENT CYCLE
 PHASE 01: IDENTIFY THE
OPPORTUNITY

 Identify the Problem

- Pareto analysis of repetitive external alarm signals, such as field failures, complaints, returns and others
- proposal from key insiders (Manager, supervisors, professionals)
- Field study of user’s need
- Customer survey
- Employee survey

 Form the Team

If the team is natural work group or one where members already work together, then this part is complete. If
the problem is of multifunctional nature, as most are, then the team should be selected and tasked by the
quality council to address the improvement of a specific process.
 Define the Scope
 It clearly describe the problem as it is currently exists and is easily understood
 It states the effect- what is wrong , when it happens, and where it is occurring, not why it is
wrong or who is responsible.
 It focuses on what is known, what is unknown, and what needs to be done.
 It uses facts and is free of judgement
 It emphasis the impact on the customer
 PHASE 02: ANALYZE THE CURRENT
PROCESS

 Establish performance measures with respect to customer requirements

 Determine data needed to manage the process
 Establish regular feedback with customers and suppliers
 Establish measures for quality/cost/timelines of inputs and outputs
 PHASE 03: DEVELOP THE OPTIMUM
SOLUTION

 Establishing potential and feasible solutions and recommending the best solution to improve the process.
 More than one solution is frequently required to remedy a solution.
 creativity plays the major role, and brainstorming is the principal technique.
- create new process
- combine different process
- modify the existing process
 Once possible solutions have been determined; evaluation or testing of the solutions comes next.
 PHASE 04: IMPLEMENT CHANGES

Once the best solution is selected, it can be implemented. This phase has the objective of preparing the
implementation plan, obtaining approval, and implementing the process improvements.
The content of the implementation plan report must fully describe;
- Why will it be done
- How will it be done
- When will it be done
- Who will it be done
- Where will it be done
 PHASE 05: STUDY THE RESULT

This phase has the objective of monitoring and evaluating the change by tracking and studying the
effectiveness of the improvement efforts through data collection and review of progress.

The team should meet periodically during this phase to evaluate the results to see that the problem has
been solved or if fine tuning is required.
PHASE 06: STANDARDIZE THE
SOLUTION
PHASE 07: PLAN FOR THE FUTURE