Operations

Management and
Total Quality
Management

Total Quality
Management
RICHELLE C. TOLEDO, LPT, MBA
Operations Management 
• Operations management is the administration of business
practices to create the highest level of efficiency possible within
an organization. It is concerned with converting materials and
labor into goods and services as efficiently as possible to
maximize the profit of an organization
-www.investopedia.com
 Basic Concepts of TQM
• Total Quality Management (TQM) is an enhancement to the traditional way of doing
business. It is a proven technique guaranteeing survival in world-class competition. The
culture and actions of an organization can be transformed by changing only the actions of
management.
• Total-- Make 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 an art of managing the whole to achieve excellence.
• TQM is also defined as both a philosophy and a set of benchmarks that represent the
foundation of a continuously improving organization.
• It is an application of quantitative methods and human resources to improve all the processes
within an organization and exceed customer needs at present and in the future.
• TQM integrates fundamental management techniques, existing improvement efforts and
technical tools under a disciplined approach.

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 Principles of Total Quality Management
• Primary responsibility for product quality rests with top
management
• Quality should be customer focused and evaluated
using customer-based standards
• The production process and work methods should be
designed consciously to achieve quality conformance
• Every employee is responsible for achieving good
product quality

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 Principles of Total Quality Management
• Quality cannot be inspected in a product, so make it right
the first time
• Quality should be monitored to identify problems quickly
and correct quality problems immediately
• The organization should strive for continuous
improvement
• Companies should work with their suppliers and extend
TQM programs to them to ensure quality inputs

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 Basic Approach to Total Quality Management
• A committed and involved management should provide long-
term top-to-bottom organizational support
• An unwavering focus on customers, both internally and
externally
• Effective involvement and utilization of the entire work force
• Continuous improvement of business and production process
• Treating suppliers as partners
• Establish performance measures for the processes

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 TQM Requires A Cultural Change

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 Framework of TQM
• Awareness
• An organization will not begin the transformation to TQM until it
is aware of the fact that the quality of product or service should be
improved.
• Obstacles
• Once an organization embarks on TQM, it faces some obstacles to its
successful implementation. Some of the obstacles are as follows:
1. Lack of Management Commitment
2. Inability to Change Organizational Culture
3. Improper Planning

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 Framework of TQM
• Some of the obstacles are as follows:
4. Lack of Continuous Training and Education
5. Incompatible Organizational Structure and Isolated Individuals and
Departments
6. Ineffective Measurement Techniques and Lack of Access to Data
and Results
7. Paying Inadequate Attention to Internal and External Customers
8. Inadequate Use of Empowerment and Teamwork
9. Failure to Improve Continually

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 TQM Philosophies: The Deming Philosophy
1. Create Constancy of Purpose for Continual Improvement of
Product and Service
2. Learn and Adopt the New Philosophy
3. Understand the Purpose of Inspection
4. Stop Awarding Business based on Price Alone
5. Improve Constantly and Forever the System of Production
and Service
6. Institute Training on the Job
7. Adopt and Institute Modern Methods of Leadership

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 TQM Philosophies: The Deming Philosophy
8. Drive Out Fear and Create Trust and a Climate for Innovation
9. Break Down Barriers between Departments and Individuals
10. Eliminate the Use of Slogans, Posters and Exhortations for the Work
Force
11. Eliminate Numerical Quotas for the Work Force
12. Remove Barriers that Rob People of Pride of Workmanship
13. Encourage Education and Self-Improvement for Everyone
14. Take Action to Ensure Top Management’s Permanent Commitment to
Accomplish the Transformation

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 TQM Philosophies: Juran-I
1. Continuous Improvement and Learning
2. Involvement of People
3. Decisions Based on Facts
4. Systems Approach
5. Long-Range View of the Future
6. Prevention Orientation
7. Fast Response
8. External Focus
9. Results Orientation
10. Ethics and Responsibility
11. Waste Reduction
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 TQM Philosophies: Juran-II

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 Approaches to Quality-Kaizen
• Kaizen is a Japanese term meaning "change for the better" or "continuous
improvement." It is a Japanese business philosophy regarding the processes that
continuously improve operations and involve all employees. Kaizen sees
improvement in productivity as a gradual and methodical process. -
www.investopedia.com 

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 Approaches to Quality-Kaizen

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 Approaches to Quality-Ishikawa
“In management, the first concern of the company is the happiness of the people connected
with it. If the people do not feel happy and cannot be made happy, that company does not
deserve to exist.”-- Kaoru Ishikawa

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 TQM Philosophies: Taguchi
• Genichi Taguchi, a Japanese engineer, realized the importance of cost
associated with poor quality and its impact on corporate profitability.
Taguchi did not confine himself to the corporate losses alone but took
into consideration the losses (due to poor quality) to the society.
• Thus, in Taguchi philosophy, the definition of quality is changed from
“achieving conformance to specifications” to “minimizing the
variability while achieving the target.”

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