Total Quality Management

MM 502 - OMT
Lorie Jane C. Arca
ECE Tech III, ESCD-SITD, Bangko Sentral ng Pilipinas
e-mail: loriejanearca@yahoo.com

ESCD, BSP
 The Origin of the Expression TQ”M”
•"Total Quality Control" was the key concept of Armand Feigenbaum's
book, Quality Control: Principles, Practice, and Administration.

"Total Quality Control"  is an effective system for integrating the

quality development, quality maintenance, and quality improvement efforts of
the various groups in an organization.

•The expression Total Quality Control existed together with the Japanese
expression "Company Wide Quality Control" (CWQC) and the differences
between the two expression was unclear. Major influencers for both expressions
were W. Edwards Deming, Joseph Juran, Philip B. Crosby, and Kaoru Ishikawa,
known as the big four.
“Quality control” consists of developing, designing, producing, marketing,
and servicing products and services with optimum cost-effectiveness and usefulness,
which customers will purchase with satisfaction. To achieve these aims, all the separate
parts of a company must work together” (Ishikawa, 1990).
 Important events in the development of TQM.
1924-1932.
Hawthorne studies demonstrated the importance of the social and psychological climate in work.
1924.
Walter Shewhart developed statistical process control. Then he developed the PDCA Cycle
1926.
The Bell Telephone began to apply statistical control methods.
Mid 1940s.
The American army pushed the use of sampling methods during World War II.
1950s.
A large number of attempts at work improvement were undertaken (e.g. job enrichment, work
redesign, participative management, quality of work life and worker involvement).
1950.
First visit of Deming to Japan.
1951.
Creation of “Deming Application Prize” in Japan.
First edition of Juran’s “Quality Control Handbook”.
1954.
First visit of Juran to Japan.
Maslow’s theories about human needs.
1960.
Liberalisation of economy in Japan with pressure to improve quality to compete with foreign
companies. McGregor’s X and Y theories.

ESCD, BSP
 Important events in the development of TQM.
1961.
First edition of Feigenbaum’s “Total Quality Control”.
1962.
The idea of quality circles appeared in the first issue of the Japanese journal “Quality Control for the
Foreman”.
Late 1960s and early 1970s.
The pressure of Japanese companies began to be felt in American companies.
1972.
QFD was developed at Mitsubishi’s Kobe shipyard site.
1973.
After the 1973 oil crisis the JIT system was adopted by a vast number of Japanese companies. A
small number of American and European companies began to apply this system in the 1980s.
Mid 1970s.
Quality circles began to be widely introduced in the USA, the first quality circle programme was
launched in Lockheed in 1974 and in the UK it was Rolls Royce who introduced the concept in 1979.
1979.
First edition of Crosby’s “Quality is Free”.
Xerox Corp. started to apply the benchmarking concept to processes.
Publication of the BS5750 quality management series.

ESCD, BSP
 Important events in the development of TQM.
1980.
A NBC television documentary about the “Japanese miracle” proposed Deming as a key element in
this miracle.
1981.
Ouchi’s Z theory.
1982.
First edition of Deming’s “Quality, productivity and competitive position”.
1983.
“Quality on the line”, published by Garvin in Harvard Business Review analysed the differences
between Japanese and American companies, showing some of the reasons for the better
performance of the former.
A paper about Taguchi’s design of experiments is published in Harvard Business Review (Taguchi
and Clausing, 1983).
1985.
The Naval Air Systems Command named its Japanese-style management approach “total quality
management”.
1986.
First edition of Deming’s “Out of the crisis”. It became a best seller.
1987.
First edition of ISO 9000 quality management system series.
1987.
Publication of the Malcolm Baldridge National Quality Award.
ESCD, BSP
 The Origin of the Expression TQ”M”
Theories of its origin:

1. One theory is that Total Quality Management was created as an

misinterpretation from Japanese to English since no difference exist between
the words "control" and "management" in Japanese. 

William Golomski Educator,

industrial worker, consultant, and
manager , Author of
Industrial Quality Control in July
1996 as ASQ's president (American
Society for Quality
Koji Kobayashi, an industrial visionary
who built the NEC Corporation of Japan
into a leader in the world electronics
industry. (Pres 1964 until 1976)
1974
-Mr. Kenichi Koyanagi,(1950)
managing director of JUSE,
proposed using it to fund a prize
to commemorate Dr. Deming‘s
contribution.
 The Origin of the Expression TQ”M”

2. The American Society for Quality says that the term Total Quality Management
was used by the U.S. Naval Air Systems Command in 1984 to describe its
Japanese-style management approach to quality improvement since they did not
like the word control in Total Quality Control.

Nancy Warren – suggested to use the word “management”

This is consistent with the story that the United States Navy Personnel Research and
Development Center began researching the use of statistical process control (SPC), the work
of Juran, Crosby, and Ishikawa, and the philosophy of W. Edwards Deming to make
performance improvements in 1984. This approach was first tested at the North Island
Naval Aviation Depot.

ESCD, BSP
 HISTORY OF TQM
TQM

Japanese industry after the Second World War.

General Douglas McArthur

Key to this was the dismissal of the old management and their systems, replacing them with younger
men capable of making the changes needed to develop their economy.

JUSE (Union of Japanese Scientists and Engineers )

Dr. W. Edwards Deming

Top business leaders in Japan, including managers from Companies

which are now household names, Sony, Nissan, Mitsubishi and Toyota.
 Total Quality Management History:
 The tools and methods comprising TQM are not a new discovery.
They have been around since Frederick Taylor developed the
Principles of Scientific Management in 1911. TQM’s key players and
events:

 1918: Dr. Franklin Bobbitt incorporates Taylor’s Principles of Scientific

Management into his education model (Marshall 176).
 Dr. Walter Shewhart, the Grandfather of TQM, is credited for
development of the PDSA Cycle; Plan, Do, Study, Act, and Statistical
Process Control; using statistics to determine the health of a process
(Marshall 176).
 W. Edwards Deming, the quality guru, was the key to Japan’s
economic comeback after World War II. The Japanese still use his
version of the PDSA developed by Shewhart, and Deming’s 14 Points.

ESCD, BSP
 TQM – Quality GURU’s
The Americans (Early 50’s) The Japanese (Late 50’s) Western Wave(70’s-80’s)
W Edwards Deming - Kaoru Ishikawa - Simple Philip B Crosby -
Management Philosophy Tools, Quality Circles, Awareness, Zero Defects,
Company-Wide Quality Do It Right First Time
Joseph M Juran - Planning, Genichi Taguchi - Tom Peters - Customer
Quality Costs Minimum Prototyping Orientation
Armand Feigenbaum - Total Shigeo Shingo - Poka- Claus Møller - Personal
Quality Control Yoke, Zero Defects Quality

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U.S. Quality
Innovators
Early 1950’s

ESCD, BSP
Dr. Walter A. Shewhart (1891-1967)
 -The grandfather of total quality management.
- American physicist, engineer and statistician, sometimes known as the
father of statistical quality control. - Worked at Western Electric and Bell
Telephone Laboratories as a statistician
-Pioneer of modern quality control, began to focus on controlling
processes.
-- Developed control chart theory/ recognized variation-common cause
and special cause.
- Began to analyze data yielded from processes. he preached the
importance of adapting management processes to create profitable
situations for both businesses and consumers, promoting the utilization
of his own creation --the SPC control chart.
- Developed plan-do-check-act (PDCA) cycle. Used statistical techniques
to determine whether a process is in control and stable. Control Chart has
revolutionized the management of process.
 

ESCD, BSP
Dr. W. Edwards Deming
- known as the “Father of Founding Total Quality Management “ was one of Japan’s
main guiding forces in improving industrial performance. This was in the 1950s when
Deming’s teachings were initially scoffed at by American manufacturers.
- Studied under Shewhart at Western Electric and Bell Laboratories (Internship
program)
- Trained as a statistician, his expertise was used during World War II to assist the
United States in itseffort to improve the quality of war materials.
- Involved, in 1947, in the early planning for the 1951 Japanese Census
- In 1947, Rice Statistics Mission Member
- In 1950, assistant to the supreme commander of the Allied Powers
- Worked as instructor in sample survey methods in government statistics
- Widely known for helping CEO's of Japanese Companies apply
Shewhart's SPC
- Considered as a founder of Japanese third wave of industrial revolution.
- the 14Key Principles of Management pose a challenge for many firms to figure out
how to apply them in a meaningful way that will result in continual improvement
- Widely used PDCA (Plan-Do-Control-Act) as a systematic approach to problem
solving and continual improvement
- Believed that 85% of worker's effectiveness depends upon environment, nominally,
depends upon his skills.
- His work is outlined in two books: Out of the Crisis and The New Economics, in
which he spells out his System of ProfoundESCD, Knowledge.
BSP
Deming Contd.
· Best known for NBC news white paper "If Japan can why can't
we" broadcast 1980, described how Japan captured the auto,
shipbuilding and electronics markets by practicing continual
improvement and thinking of manufacturing as a whole.
· Regarded as the “Father of Modern Quality”
· The key to quality: reducing variation

Deming (Later years in America):

We have learned to live in a world of mistakes and
defective products as if they were necessary to life. It is
time to adopt a new philosophy in America.

ESCD, BSP
 Deming’s Approach to TQM
 The theoretical essence of the Deming approach to TQM concerns the creation of an
organizational system that fosters cooperation and learning for facilitating the
implementation of process management practices, which, in turn, leads to continuous
improvement of processes, products, and services as well as to employee fulfillment,
both of which are critical to customer satisfaction, and ultimately, to firm survival
– Leadership plays in ensuring the success of qualitymanagement, because it is the top
management’s responsibility to create and communicate a vision to move the firm toward
continuous improvement. Top management is responsible for most quality problems; it should
give employees clear standards for what is considered acceptable work, and provide the
methods to achieve it. These methods include an appropriate working environment and
climate for work-free of faultfinding, blame or fear.

 Deming (1986) stressed the responsibilities of top management to take the lead in
changing rocesses and systems.
 also emphasized the importance of identification and measurement of customer
requirements, creation of supplier partnership, use of functional teams to identify
and solve quality problems, enhancement of employee skills, participation of
employees, and pursuit of continuous improvement.
 advocated methodological practices, including the use of specific tools and statistical
methods in the design, management, and improvement of process, which aim to
reduce the inevitable variation that occurs from “common causes” and “special
causes” in production.
Deming's Key Principles of management (14 Points)

- Create constancy of purpose toward improvement of product and

service
- Adopt new learning philosophy (no acceptance of delay, mistakes
and defective workmanship)
- Cease dependence on inspection – build quality into products in the
first place
- Drive out fear and build employee trust.
- End low cost bidding – seek long-term supplier relationship
- Eliminate numerical goals; abolish annual rating or merit system
- Eliminate slogans, extortions and targets for workforce
- Teach and institute leadership to improve all functions
- Institute modern methods of training on-the-Job
- Educate with self-improvement programs etc.
- Breakdown the barriers between departments
- Take actions to accomplish transformation
- Improve the System of Production and Services
- Everybody has to accomplish the Transformation
ESCD, BSP
 PDCA Cycle

4. Act 1. Plan
Institutionalize Identify
improvement; problem and
continue cycle. develop plan for
improvement.
How to improve What to do?
next time? How to do?

3. Study/Check 2. Do
Assess plan; is it Implement plan
working? on a test basis.
Things as per plan? Do as planned

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 Problem Solving Cycle
 PDCA for problem solving

Definition of
What problem

Plan Analysis of
Problem
Why Identification
Of causes
How Planning
Countermeasures

Do Implementation

Confirmation
Check Of result

Action Standardization
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Joseph Juran (1904- 2008)

- Dr. Juran graduated in 1924 with an electrical engineering degree and started hiscareer in
Western Electric in Hawthorn IL
published "The Quality Control Handbook" in 1950 which became the standard reference book
on quality world-wide.
Pareto principle In 1941 Juran stumbled across the work of Vilfredo Pareto and began to apply
the Pareto principle to quality issues (for example, 80% of a problem is caused by 20% of the
causes). This is also known as "the vital few and the trivial many". In later years Juran preferred
"the vital few and the useful many“ to signal that the remaining 80% of the causes should not
be totally ignored.
- published "The Quality Control Handbook" in 1950 which became the standard reference
book on quality world-wide.
- developed his TQM philosophy around his "quality trilogy“
- First quality guru, who introduced the Interval Customer Concept.
- Developed a concept of vital few, trivial many (foundation of Pareto Charts)
- Founding member of American Society for Quality.
- Both he and Deming correctly stressed the need to involve people throughout the
organization in quality improvement but in particular that most quality issues are down to
management dealing with systems. The emphasis is on getting the system correct rather than
blaming failure on operator error.

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 - developed his TQM philosophy around his "quality trilogy"
• Quality planning: the process for preparing to meet the quality goals
• Quality control: the process for meeting quality goals through operations
• Quality improvement: the process for break through levels of performance

Quality planning Quality control Quality improvement

Establish quality goals Choose control subjects Prove the need

Identify customers Choose units of measure Identify projects

Discover customer needs Set goals Organize project teams

Develop product features Create a sensor Diagnose the causes

Develop process features Measure actual performance Provide remedies, prove

remedies are effective

Establish process controls, Interpret the difference Deal with resistance to

transfer to operations change

ESCD,
Take action on the BSP
difference Control to hold the gains
Juran’s 10 steps to quality improvement

1) Build awareness of the need and opportunity for

improvement
2) Set goals for improvements
3) Organize to reach the goals
4) Provide training
5) Carry out projects to solve problems
6) Report progress
7) Give recognition
8) Communicate results
9) Keep score of improvements achievement
10) Maintain momentum

ESCD, BSP
Dr. Armand V Feigenbaum (born 1922)
-Widely recognized as the “Father of Total Quality Management”
-American quality control expert and businessman. He devised the concept of
Total Quality Control, later known as Total Quality Management(TQM).
Received the National Medal of Technology and Innovation from president
George W. Bush in September 29,2008, the highest honor for technological
achievement.
- Served at General Electric during WW 2 (Engineer)
- Founding chairman of the International Academy for Quality
- Past president of the American Society for Quality Control
- Developed an approach to Total Quality Control – was used in his book
Quality Control: Principle, Practice and Administration 1951)
- Accountability for quality: Because quality is everybody's job, it may become
nobody's job the idea that quality must be actively managed and have
visibility at the highest levels of management
- Best known for quantifying Costs of quality
- Prevention cost (Preventing defects and faulty products/services)

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- Appraisal (Inspection)
- Failure
1) Internal-scrap, rework
2) External-warranty, complaints
- He is known for 'hidden factory'-'quality is what the customer says it is'
- Widely recognized as the “Father of Total Quality Management” (Jim L.
Smith, director, American Society for Quality)
- Received the National Medal of Technology and Innovation from president
George W. Bush in September 29,2008, the highest honor for technological
achievement.

ESCD, BSP
Feigenbaum’s Approach to TQM
Feigenbaum (1991) defined TQM5 as: An effective system for integrating the quality
development, quality-maintenance, and quality-improvement efforts of the various
groups in a firm so as to enable marketing, engineering, production, and service at the
most economical levels which allow for full customer satisfaction. He claimed that
effective quality management consists of four main stages, described as follows:

- Setting quality standards;

- Appraising conformance to these standards;
- Acting when standards are not met;
- Planning for improvement in these standards.

The quality chain, he argued, starts with the identification of all customers’ requirements
and ends only when the product or service is delivered to the customer, who remains
satisfied. Thus, all functional activities, such as marketing, design, purchasing,
manufacturing, inspection, shipping, installation and service, etc., are involved in and
influence the attainment of quality. Identifying customers’ requirements is a
fundamental initial point for achieving quality. He claimed that effective TQM
requires a high degree of effective functional integration among people, machines,
and information, stressing a system approach to quality. A clearly defined total
quality system is a powerful foundation for TQM.
 There are two factors affecting product quality:
1. Technological - that is, machines, materials, and processes;
2.Human - that is, operators, foremen, and other firm personnel. the
human is of greater importance by far

- Feigenbaum considered top management commitment, employee

participation, supplier quality management, information system,
evaluation, communication, use of quality costs, use of statistical
technology to be an essential component of TQM.
- He argued that employees should be rewarded for their quality
improvement suggestions, quality is everybody’s job.
- He stated that effective employee training and education should
focus on the following three main aspects: Quality attitudes, quality
knowledge, and quality skills.
Japanese
Quality
Innovators
Late1950’s

                          
    ESCD, BSP
Kaoru Ishikawa (July 13, 1915 - April 16, 1989)
-A Japanese University Professor
Ishikawa is regarded as the “Father of the Quality Circle approach” which was involved
building shopfloor teams.
-His legacy is more directly linked to hands on, practical techniques and promoted many of
the tools and techniques of measurement, analysis and problem solving commonly used as
part of the TQM armory.
-known for the development of Fishbone Diagram or also known as cause and effect
diagram.
- He translated, integrated and expanded themanagement concepts of W. Edwards
DemingandJoseph M. Juraninto the Japanese system
- Studied Under Deming, Juran and Feigenbaum
- Served as a professor of engineering at the University of Tokyo
- Actively participated in quality movement in Japan.
- Served as a member of JUSE
- Developed Japanese Total Quality Control (Company –Wide Quality Control - 1955-1960)
a) Quality first – not short term profit
b) Next process is your customer
c) Use of facts and data
d) Respect for Humanity as a management philosophy – full
Participation
e) Cross-functional management
- Pioneer of Quality Control Circle movement
ESCD, BSP
 Dr Kaoru Ishikawa made many contributions to quality, the most noteworthy
being his total quality viewpoint, company wide quality control, his emphasis
on the human side of quality, the Ishikawa diagram and the assembly and use
of the “seven basic tools of quality”: He believed these seven tools should be
known widely, if not by everyone, in an organisation and used to analyse
problems and develop improvements. Used together they form a powerful
kit.

• Pareto analysis - which are the big problems?

• Cause and effect diagrams - what causes the problems?
• Stratification - how is the data made up?
• Check sheets - how often it occurs or is done?
• Histograms - what do overall variations look like?
• Scatter charts - what are the relationships between factors?
• Process control charts - which variations to control and how?

ESCD, BSP
 Ishikawa’s Approach to TQM
 He advocated employee participation as the key to the successful implementation of
TQM.
 Ishikawa (1985) suggested that the assessment of customer requirements serves as a
tool to foster cross-functional cooperation; selecting suppliers should be on the basis of
quality
 rather than solely on price; cross-functional teams are effective ways for identifying and
solving quality problems. Ishikawa’s concept of TQM contains the following six
fundamental principles:
1. Quality first-not short-term profits first;
2. Customer orientation-not producer orientation;
3. The next step is your customer-breaking down the barrier of sectionalism;
4. Using facts and data to make presentations-utilization of statistical methods;
5. Respect for humanity as a management philosophy, full participatory management;
6. Cross-functional management.
Genichi Taguchi (1924-)
Developed
• Quality loss function- deviation from target is a loss to
society
• Application of design of experiments/ Robust Engineering
(Product development)
• Online in Production and offline in design
• Offline quality control
· System design (creation of design)
· Parameter design (design features tested/
determined)
· Tolerance design (Tightening tolerance of factors
that have large Impact on variation)

J.M.Pant, Faculty
Shigeo Shingo (1919-1990)

• Contributed as the world's leading expert onmanufacturing process.

• Quality control at the source rather than through quality inspection
• Developed Poka-Yoke system (Mistake proofing device, sensors/ monitors)
• Zero defects approach -ultimate goal.
• Developed Just-in-time manufacturing system (Along with Taiichi Ohno
created many features of Jus-intime-JIT)
• Inventor of SMED (single minute exchange of die) as a system of quick
change overs between products for reducing changeover times
• He emphasized production rather than organizational issues.
(Zero quality control is ideal production system.)

J.M.Pant, Faculty
Western Quality
Innovators
(1970’s to 1980’s)                 

ESCD, BSP
Dr. Philip Bayard Crosby (1926-2001)
-Crosby did much to popularize the use of TQM.
-Having worked for several aerospace firms he joined at ITT (International
Telephone and Telegraph) in 1965.
-- He first designed a highly successful programme for ITT for whom he worked
before setting up his own quality college and consultancy firm. His training
programme has been widely used by a large number of US. and U.K. companies.
- Developed a concept of zero defects (Z D) /get it right the first time. He
argued- 'doing it right the first time is less expensive than the costs of detecting
and correcting non- conformance.
- He is best known for zero defects methodology,which emphasizes employees,
responsibility,exhortations and slogan not technical aspect of process .
- He first designed a highly successful programme for ITT for whom he worked
before setting up his own quality college and consultancy firm. His training
programme has been widely used by a large number of US. and U.K. companies.
- his training is targeted at the Management team as a whole and not just
quality control specialists.

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-Crosby presented his "4 Absolutes Of Quality" as the
cornerstones of his approach
-
1. Quality is defined as conformance to requirements, not just as
goodness
2. Quality is achieved through prevention not appraisal
3. The quality performance standard is "zero defects" and is not
defined by AQLs which allow and build in acceptable levels of
errors and inefficiencies
4. Quality is measured by the price of non-conformance Crosby
spread the word that, as in the title of his most popular book,
"Quality is Free".
-He believes that by setting up processes that are designed to
prevent errors, by having people trained and motivated to
operate them as designed, not only will quality improve, the
costs of production will be reduced
ESCD, BSP
 Crosby’s Approach to TQM
 Crosby (1979) identified a number of important principles and practices for a
successful quality improvement program, which include, for example,
management participation, management responsibility for quality, employee
recognition, education, reduction of the cost of quality (prevention costs,
appraisal costs, and failure costs), emphasis on prevention rather than after-
the-event inspection, doing things right the first time, and zero defects.

 Crosby claimed that mistakes are caused by two reasons:

1. Lack of knowledge and - ans. :Education and training
2. Lack of attention. – ans : a personal commitment to excellence (zero
defects) and attention to detail will cure the second.
 Crosby also stressed the importance of management style to successful
quality improvement. The key to quality improvement is to change the
thinking of top managers-to get them not to accept mistakes and defects, as
this would in turn reduce work expectations and standards in their jobs.
Tom Peters
-identified leadership as being central to the quality improvement process,
discarding the word “Management” for “Leadership”. The new role is of a
facilitator, and the basis is “Managing by walking about” (MBWA),
- He believes that, as the effective leader walks, at least 3 major activities are
happening:
• Listening suggests caring
• Teaching values are transmitted
• Facilitating able to give on-the-spot help
-Having researched successful American organisations, he concluded that any
intelligent approach to organising had to encompass, and treat as
Interdependent, seven variables, in what became known as the McKinsey 7-S
Framework, designed to force explicit thought about both the hardware and
software of an organisation
 GURU’s Common Point
 Although their approaches to TQM are not totally the same, they do share some common points which
are summarized as follows:
(1) It is management’s responsibility to provide commitment, leadership, empowerment,
encouragement, and the appropriate support to technical and human processes. It is top
management’s responsibility to determine the environment and framework of operations
within a firm. It is imperative that management foster the participation of the employees in
quality improvement, and develops a quality culture by changing perception and attitudes
toward quality.
(2) The strategy, policy, and firm-wide evaluation activities are emphasized.
(3) The importance of employee education and training is emphasized in changing employees’
beliefs, behavior, and attitudes; enhancing employees’ abilities in carrying out their duties.
(4) Employees should be recognized and rewarded for their quality improvement efforts.
(5) It is very important to control the processes and improve quality system and product design.
The emphasis is on prevention of product defects, not inspection after the event.
(6) Quality is a systematic firm-wide activity from suppliers to customers. All functional
activities, such as marketing, design, engineering, purchasing, manufacturing, inspection,
shipping, accounting, installation and service, should be involved in quality improvement
efforts.
 Total Quality Management
Main concerns of Manufacturers and Customers
Manufacturer Customer
Quality Quality
Cost Price
Productivity Availability
 Concerns of manufacturer and customer are generally not
the same. Customer usually has no concern for company
productivity and cost.
  Quality is the only common concern

ESCD, BSP
 Total Quality Management
1. What is Total Quality Management (TQM)
  The elements of TQM as the name suggests are :
Total
Quality
Management
  Total - implies Involving the entire organization, supply
chain, and/or product life cycle.
√ Complete - 100%
√ All areas and functions
√ All activities
√ All employees - everyone
√ All time - always
ESCD, BSP
 Total Quality Management
2. Quality target is 100%, not even 99.9% because even
99.9% might mean many dissatisfied customers every
year, defective components entering assembly, accidents
etc.
  Quality by definition
Old view : Quality relates to products manufactured
exactly to specifications.
 
New view : Total Quality relates to products that totally
satisfy our customer needs and expectations in every
respect on a continuous basis. Quality then is to satisfy
customer needs....it is in fact to delight customers.

ESCD, BSP
 Total Quality Management
Who is our customer
The next person(individual or functional group) in the
workplace; the receiver of output and the next to act
on it. A customer may be either external or internal.
  Example :  Next in process customer (in a production)

Marketing Design Manufacturing Machine

Shop

Assembly

PRODUCT USER Sales Testing

ESCD, BSP
 Total Quality Management
3. Management implies :
  Quality does not happen on its own. It requires to be
planned and managed. It is a management function, though
it involves everyone. Therefore it needs a systematic
approach.
The system of managing with steps like : plan, organize,
control, lead, staff, provisioning and organizing
  TQM = Sum of TOTAL + QUALITY +
MANAGEMENT
 

ESCD, BSP
TQM defined as the organization wide management of quality. Management
consists of planning, organizing, directing, control, and assurance. Total quality is
called TOTAL because it consists of two qualities : QUALITY of return to satisfy the
needs of the shareholders and the QUALITY of the products.

TQM Goal:
“Do the right things right the first time, every
time.”
Meanwhile in Japan, TQM comprises 4 process steps, namely;
1. KAIZEN – it focuses on “continuous process improvement”
2. ATARIMAE HINSHITSU – the idea that “thing swill work as they are supposed
to .
3. KANSEI – examinating the way the user applies the product leads to
improvement in the product itself.
4. MIRYOKUTEKI HINSHITSU – the idea the “things should have have an
aesthetic quality)
TQM requires that company maintain this quality standard in all aspects of the
business. This requires ensuring that things are done right the first time and
that defects and waste are eliminated from the operations as minimum as
possible.
 British Standards on TQM
BS 7850-1:1992
 Guide to management principles and quality improvements
 Published last Sept15, 1992 under the Quality Management and Stat.
Standards Policy Committee.
 A fundamental concept of TQM from BS 7850 - a ‘Process’.
 “A set of inter-related resources and activities which transform inputs into
outputs.” (ISO 8402-Quality management and quality assurance vocabulary).
 "TQM is a management approaches for an organization, centered on quality,
based on the participation of all its members and aiming at long-term success
through customer satisfaction, and benefits to all members of the
organization and to society." ISO 8402:1994

 “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.” (BS 7850)

ESCD, BSP
"The Simple Process"

(Source: BS 7850: 1992, “Total Quality Management”)

ESCD, BSP
 Benefits of TQM
 Improves competitive position
 increase adaptability to global markets
 elevated productivity
 superior global image
 eliminates defects
 significantly reduces waste.
 reduces quality costs
 Improves management communication
 raises profits
 drives customer focus
 customer loyalty
 reduces design time.
 Quality Award Models
 The broad aims of these awards are described as follows
- Increase awareness of TQM because of its important contribution to
superior competitiveness;
- Encourage systematic self-assessment against established criteria and
market awareness simultaneously;
- Stimulate sharing and dissemination of information on successfully
deployed quality strategies and on benefits derived from implementing these
strategies;
- Promote understanding of the requirements for the attainment of quality
excellence andsuccessful deployment of TQM;
- Encourage firms to introduce a continuous improvement process.
1. Deming Prize in Japan established in 1951
2. European Quality Award in Europe – officially launched in 1991
3. Malcolm Baldrige National Quality Award (US)- 1987 Act of Malcolm.
 Most Commonly Used Tools and
Techniques in TQM
 Benchmarking is method of comparing company’s practices with the practices of best in class
organization in the areas of quality, productivity, Human Resources and cost etc.
 Six Sigma is business strategy to achieve excellence by applying different statistical, TQM and Project
Management tools.
 Lean Manufacturingis way of manufacturing that increases speed and reduces unnecessary wastes.
 Lean Six Sigmais combination of Six Sigma and Lean Manufacturing concept to reduce errors and
increase productivity side by side.
 Total productive Maintenance (TPM) is a new way of carrying maintenance activities and invented by
Japanese.
 Brainstorming is method of looking for problem solution by a group of people.
 Quality Management System ( ISO 9001 ) is set of standards for Quality Management system for any
organization by International Organization for Standardization (ISO).
 Environmental Management System ( ISO 14001 ) is standard given by ISO to facilitate organization to
reduce their wastes that are harmful for the environment.
 Laboratory management System ( ISO/IEC 17025 ) is a standard for Laboratories for their
accreditation.
 Social Accountability System (ISO/TS 8000-110:2008 ) is a standard developed in the light of
International Labor Organization (ILO) and UN Human Rights Conventions, to protect human rights.
 Kaizen is a Japanese tool for small but incremental changes in daily business life.
 5S is methodology for improvement in daily and business life in five steps.

J.M.Pant, Faculty
 CONCLUSION
This discussion has considered the evolution of the elements, practices and
mechanisms that define TQM. It has been shown that, whilst the term TQM
only began to be popularized in the second half of the 80s, many of the
elements that have shaped it were developed early, during the 1950 to
1970s. Most theoretical developments in the advancement of the concept
have been made in the USA whereas Japan has held the initiative in terms of
application.
This also indicates a lack of a total agreement about how to apply TQM, as
supported by the differences in the views of the leading quality management
gurus. For example, the need for focus on workforce management is widely
accepted but the proposed ways in which to apply this form of management
are different.
Differences in the application of TQM amongst different countries also appear to
exist. Since the culture of the company influences the approach to the
application of TQM, different countries with different cultures apply TQM in
different ways. However, as we approach the end of the century, economies
and societies are becoming increasingly inter-related and these differences
are diminishing.
END.