TOTAL QUALITY MANAGEMENT (TQM)

UNIT - I

Dr. Joe Christy

B.Sc.,B.L.,M.L.,M.B.A.,Ph.D
 UNIT - I

Introduction - Need for quality

Evolution of quality
Definition of quality
Dimensions of product and service quality
Definition of TQM
Basic concepts of TQM
Gurus of TQM (Brief introduction)
TQM Framework
Barriers to TQM
Benefits of TQM
  What is Quality?

Merriam Webster’s Collegiate Dictionary, 10th

Edition(1994) defines quality as

“An inherent feature; degree of excellence; and

superiority in kind
Some definitions that have gained wide
acceptance in the corporate world are
“Meeting or exceeding customer
expectations”
Juran, one of the quality gurus, defined quality
as;
Fitness for Use
The American National Standards
Institute (ANSI) and the
American Society for Quality
(ASO) defined quality as;
The totality of features and
characteristics of a product or
service that bears on its ability to
satisfy customer’s stated and
implied needs.
 What is TQM?

TQM implies that every one associated with the

organization is committed towards continual
improvement of the organization through customer
satisfaction.

TQM – A Road to success

 Who is a customer?

Anyone who is impacted by the product

or services delivered by an organization

External customer- the end user

Internal customer- other divisions of the company

that receive the processed product.
 Quantified definition of Quality

Q=P/E

where,
Q = quality
P = performance
E=
expectations

If Q is greater than 1, then the customer has a good

feeling about the quality of product or service.
What is a product?

The output of a process

carried by the organization. It
may be goods (e.g. cellphones),
software(e.g. a computer code,
a report) or service (e.g.
banking, insurance
What are the dimensions of Quality?

1. Product feature - refers to the quality of

design.
 In a manufacturing industry, it includes
performance, reliability, durability, ease of
use, esthetics, etc
 In a service industry, customer
satisfation is gained through accuracy,
timeliness, friendliness and courtesy,
knowledge of server, etc.
 2. Freedom from deficiencies –
refers to quality of conformance
3. Conformance to standards- ability
of the product or service to conform to
the stated and implied requirements
of customers.
Higher conformance means fewer
complaint and increased customer
satisfaction
Reasons why quality is a cardinal priority for
most organizations

Competition
Changing customer-the new customer is not
only commanding priority based on volume but
is more demanding about the “quality system”
Changing product mix – the shift from low
volume high price to high volume, low price
resulted in a need to reduce the internal cost of
poor quality.
Product complexity- as systems have become
more complex the reliability requirements for
suppliers of components have become more
tough
 Elements of TQM

1. Be customer focused
It requires the company to check customers'
attitudes regularly and includes the idea of internal
customers as well as external ones.

2. Do it right the first time

This means avoiding rework, i.e., cutting the
amount of defective work.
 3. Constantly improve
Continuous improvement allows the company
gradually to get better.

 4. Quality is an attitude
Every one has to be committed to quality. That means
changing the attitude of the entire workforce, and
altering the way the company operates.

 5. Telling staff what is going on

This involves improved communication. Typically, it
includes team briefing.
Basic concepts of TQM
1.Quality: 
The totality of features and characteristics of product or service that
bears on its ability to satisfy stated or implied needs of a customer.
2. Quality Policy: 
The overall quality intentions and directions of an organization as
regards quality formally expressed by top management.The quality
policy forms an element of the corporate policy and is authorized
by top management.
3.Quality Management: The aspect of the overall management
function that determines and implements quality policy. Quality
management includes strategic planning, allocation of resources
and other systematic activities for quality such as
operations and evaluations.
4. Quality Assurance: Quality assurance are all those
planned and systematic actions necessary to provide
adequate confidence that a product or service will satisfy
requirements of a customer. Unless the requirements of
customer are fully reflected in the product or service, quality
assurance will not be complete. Quality assurance serves as
a management tool to provide confidence in
supplier/manufacture in contractual situation.

While taking a broad view of quality control, we come across

different words such as limits, tolerance, allowance, fit etc.
These words are described in terms of below limits. Limits for
a dimension or other unit of measurement are the two
extreme permissible measurements for that dimension or unit.
5. Quality Control: Quality controls are operational
techniques and activities that are used to fulfill requirements
for quality. Quality control techniques and activities aim both,
at monitoring a process and at eliminating causes of
unsatisfactory performance at relevant stages of the
production in order to achieve economic effectiveness of an
organization.

6. Conformity: An affirmative indication or judgment that

the supplier/manufacturer of a product or service has met
the requirements of the relevant specifications, contact or
regulations and also the state of meeting requirements, is
the real test of quality.
7. "Quality Circle": QC is a process that stimulates
everyone to achieve greater satisfaction in the work
environment. It is based on mutual trust and cooperation.
It also includes group participation, information sharing
and decision making. Its primary aim is to provide a better
quality of working life to workmen at all levels in an
organization.

"QC is a small group of employees in the same work. work

area or doing a similar type of work who voluntarily meet
regularly for about an hour every week to identify, analyze
and resolve wok-related problems, leading to
improvement in their total performance and enrichment of
their work life"
HISTORY OF TQM
By
Mahendra Singh
Centre for business Administration
Central University of Jharkhand, Ranchi
 History of quality management
20

…To know the future, know the past!

 Before Industrial Revolution, skilled craftsmen served both as

manufacturers and inspectors, building quality into their
products through their considerable pride in their
workmanship.
 Industrial Revolution changed this basic concept to
interchangeable parts. Likes of Thomas Jefferson and F. W.
Taylor (“scientific management” fame) emphasized on
production efficiency and decomposed jobs into smaller work
tasks. Holistic nature of manufacturing rejected!
 History of Quality
21

 There are lessons to be learned from the experiences of the

successful companies. The common factors are: Focusing on
customer needs, upper management in charge of quality, training
the entire hierarchy to manage for quality, and employee
involvement - Joseph Juran, World War II and the Quality
Movement
 Modern Quality Management
 Bell Laboratories was the birthplace of modern quality management
 Walter Shewhart: Process Oriented Quality Control

 Both Deming and Juran worked for Bell

 British Standards 600 established 1935
 World War II
22

 Large expansion in quality control activities

 “One may even speculate that the second World War was
won by quality control and by the utilization of modern
statistics. Certain statistical methods researched and
utilized by the allied powers were so effective that they
were classified as military secrets until the surrender of
Nazi Germany.” - Kaoru Ishikawa, What is Total Quality
Control
 The Postwar period
23

 ASQC was established at 1946

 Changed name to ASQ at 1997
 After war the attitude was that American
manufacturers could sell whatever they produced,
so who needed quality
 Joseph Juran deserves lot of credit:
 “It is important that top management be quality-minded. In
the absence of sincere manifestation of interest at the top,
little will happen”
 History of quality management
24

 Statistical approaches to quality control started at Western

Electric with the separation of inspection division. Pioneers
like Walter Shewhart, George Edwards, W. Edwards Deming
and Joseph M. Juran were all employees of Western Electric.
 After World War II, under General MacArthur's Japan
rebuilding plan, Deming and Juran went to Japan.
 Deming and Juran introduced statistical quality control theory
to Japanese industry.
 The difference between approaches to quality in USA and
Japan: Deming and Juran were able to convince the top
managers the importance of quality.
 The 1960’s
25

 Baby boomers with increased incomes were not

interested in quality
 Only positive direction was the change of focus
from the factory floor to the entire production
process - Armand V. Feigenbaum, Total Quality
Control: Engineering and Management
 No focus on people like Japanese
 The 1970’s
26

 Troubled time for US manufacturers due to

Japanese increased success
 Excuses: Japan depends of cheap labor, Japanese
workers are exploited, there is something in their
culture, Americans are lazy
 Motorola and Whirlpool were good examples of
poor quality
 The 1980’s
27

 Discovery of quality circles and Phil Crosby

 Crosby’s book Quality is Free a huge success
 Ishikawa brought the Japanese way of quality to
US through his book What is Total Quality Control
 Still, American managers still didn’t get the
message
 Total Quality Management
28

 Concept emerged during the 80’s from a variety of

different sources
 SEMATECH’s definition:
 TQM is a holistic business management methodology
that aligns the activities of all employees in an
organization with the common focus of customer
satisfaction through continuous improvement of all
activities, goods and services
 Early TQM successes
29

 Nashua
 Xerox
 Motorola
 Intel
 Dayton-Hudson
 Corning
 Hewlett-Packard
 The 1990’s
30

 First clear signs of the payoffs of TQM finally

emerged
 Small number of US companies raised the quality
in a world class level
 However, there were also problems
 Hubble Space Telescope
 “The Seal of the Navel Academy is hereunto affixed” -
US Naval Academy diplomas
 World Trade
31

 Growing importance of the world trade caused

need for world wide quality standards and
accelerated unification of Europe and development
of third world countries
 ISO 9000 standards were developed
 History of quality management
32

 Next 20 odd years, when top managers in USA focused on

marketing, production quantity and financial performance,
Japanese managers improved quality at an unprecedented rate.
 Market started preferring Japanese products and American

companies suffered immensely.

 America woke up to the quality revolution in early 1980s.

Ford Motor Company consulted Dr. Deming to help transform

its operations.
(By then, 80-year-old Deming was virtually unknown in USA.
Whereas Japanese government had instituted The Deming
Prize for Quality in 1950.)
 History of quality management
33

 Managers started to realize that “quality of management” is

more important than “management of quality.” Birth of the
term Total Quality Management (TQM).
 TQM – Integration of quality principles into organization’s
management systems.
 Early 1990s: Quality management principles started finding
their way in service industry. FedEx, The Ritz-Carton Hotel
Company were the quality leaders.
 TQM recognized worldwide: Countries like Korea, India,
Spain and Brazil are mounting efforts to increase quality
awareness.
 Evolution of TQM philosophies
34

 The Deming Philosophy

Definition of quality, “A product or a service possesses quality if
it helps somebody and enjoys a good and sustainable market.”

Improve quality Decrease cost because of Productivity improves

less rework, fewer
mistakes.

Long-term Stay in business Capture the market

competitive with better quality and
strength reduced cost.
 Gurus of TQM

• Dr. Walter Shewhart (1891-1967)

USA
Achievement: Control Charts

• Dr. Edward Deming (1900-1993)

USA
Achievement: PDCA cycle
• Joseph M Juran (1904 – 2008)
USA
Achievement: Juran Trilogy

• Philip Crosby (1926 – 2001)

USA
Achievement: Zero Defect
philosophy
• Kaoru Ishikawa (1915 – 1987)
Japan
Achievement: Fish bone
diagram
Dr. W. Edward Deming
DEMING’S 14 POINTS
Point 1: Create a Vision and Demonstrate
Commitment

 An organization must define its values,

mission, and vision of the future to provide
long-term direction for its management
and employees.
 Businesses should not exist simply for

profit; they are social entities whose basic

purpose is to serve their customers and
employees.
Point 2: Learn the New Philosophy

 Companies must take a customer-driven

approach based on mutual cooperation
between labor and management and a
never-ending cycle of improvement.
Point 3: Understand Inspection
 Inspection - the principal means of quality
control.
 Routine inspection acknowledges that defects
are present, but does not add value to the
product.
 Inspection should be used as an information-
gathering tool for improvement, not as a means
of “assuring” quality or blaming workers.
Point 4: Stop Making Decisions Purely on the
Basis of Cost

 The supplier and manufacturer must be considered

as a macro organization.
 Deming urged businesses to establish long-term
relationships with fewer suppliers, leading to loyalty
and opportunities for mutual improvement.
 Supply Chain Management (SCM) focuses heavily
on a system’s view of the supply chain with the
objective of minimizing total supply chain costs and
developing stronger partnerships with suppliers.
Point 5: Improve Constantly and Forever

 Improved design of goods and services comes from

understanding customer needs and continual market
surveys and other sources of feedback, and from
understanding the manufacturing and service delivery
process.
 Improvements in operations are achieved by reducing
the causes and impacts of variation, and engaging all
employees to innovate and seek ways of doing their jobs
more efficiently and effectively.
 Deming chain reaction: When quality improves,
productivity improves and costs decrease.
 Continuous improvement
Point 6: Institute Training
 Training
- results in improvements in quality and
productivity
- adds to worker morale
- demonstrates to workers that the company is
dedicated to helping them and investing in the
future
Point 7: Institute Leadership
 The job of management is leadership, not
supervision.
Supervision – simply overseeing and
directing work
Leadership – providing guidance to help
employees do their hobs with less effort.
Point 8: Drive Out Fear
 Fear is manifasted in many ways: fear of
reprisal, fear of failure, fear of the
unknown, fear of relinquishing control, and
fear of change.
 Fear encourages short-term thinking

 Fear is a cultural issue for all

organizations
Point 9: Optimize the Efforts of Teams

 Teamwork helps to break down barriers

between departments and individuals.

Barriers between functional areas occur occurs

when managers fear they might lose power.
Lack of cooperation leads to poor quality.
Point 10: Eliminate Exhortations

 Motivational approaches overlook the

major source of many problems – the
system
 Causes of variation stemming from the

design of the system are management’s

problem, not the workers’
Point 11: Enumerate Numerical Quotas and
Management by Objective (MBO)
 Many organizations manage by the numbers.
 Goals are useful, but numerical goals set for
others without incorporating a method to reach
the goal generate frustration and resentment.
 Management must understand the system and
continually try to improve it, rather than focus on
short-term goals.
Point 12: Remove Barriers to Pride in
Workmanship

Deming believed that one of the biggest barriers to pride

in workmanship is performance appraisal
Performance appraisal destroys teamwork by promoting
competition for limited resources, fosters mediocrity because
objectives typically are driven by numbers and what the boss wants
rather than by quality, focuses on the short term and discourages
risk taking, and confounds the “people resources” with other
resources.
Three categories of performance:
Majority of performances that are within the system
Performances outside the system on the superior side
Performances outside the system on the inferior side
Point 13: Encourage Education and Self-
Improvement

 Continuing, broad education for self-

improvement
 Organizations must invest in their people at all
levels to ensure success in the long term
 Developing the worth of the individual is a
powerful motivation method
Point 14: Take Action
 Any culture change begins with top
management and includes everyone
 Team-based approach
 The Deming philosophy
53

 “A System of Profound Knowledge”

1. Appreciation for a system - A system is a set of
functions or activities within an organization that
work together to achieve organizational goals.
Management’s job is to optimize the system. (not
parts of system, but the whole!). System requires
co-operation.
2. Psychology – The designers and implementers of
decisions are people. Hence understanding their
psychology is important.
 The Deming philosophy
54

3. Understanding process variation – A production

process contains many sources of variation.
Reduction in variation improves quality. Two types
of variations- common causes and special causes.
Focus on the special causes. Common causes can
be reduced only by change of technology.
4. Theory of knowledge – Management decisions
should be driven by facts, data and justifiable
theories. Don’t follow the managements fads!
 The Juran philosophy
55

 Pursue quality on two levels:

1. The mission of the firm as a whole is to achieve high
product quality.
2. The mission of each individual department is to achieve
high production quality.

 Quality should be talked about in a language senior

management understands: money (cost of poor quality).
 At operational level, focus should be on conformance to
specifications through elimination of defects- use of
statistical methods.
 The Juran philosophy - Quality Trilogy
56

Quality Trilogy
1. Quality planning: Process of preparing to meet
quality goals. Involves understanding customer
needs and developing product features.
2. Quality control: Process of meeting quality goals
during operations. Control parameters. Measuring
the deviation and taking action.
3. Quality improvement: Process for breaking
through to unprecedented levels of performance.
Identify areas of improvement and get the right
people to bring about the change.
 The Crosby philosophy
57

Absolute’s of Management
 Quality means conformance to requirements not elegance.

 There is no such thing as quality problem.

 There is no such thing as economics of quality: it is always

cheaper to do the job right the first time.

 The only performance measurement is the cost of quality: the

cost of non-conformance.
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)

 Quality Control
V’s

Quality Assurance
 Quality Control Quality Assurance

• Reactive approach • Proactive approach

• Focuses on product/service • Focuses on process

• Find defects
• Prevent defects

• Line function • Staff function

 Quality Management

QM comprises all activities of the overall

management function that determines the
quality policy, objectives and responsibilities &
implement them by means such as quality
planning, quality control, quality assurance and
quality improvement with in the quality system.
 BENEFITS OF TQM

1. Advantages unique to TQM:

 It makes the company a leader.

 Fastens the team work.

 Makes the company more sensitive to customer needs.

 Makes the company adapt more readily to changes.

2. Benefits to company
 Quality improves.

 Increased productivity.

 Staffs are more motivated.

 Cost reduced.
3. Benefits to customer
 Fewer problems with product/services.

 Better customer care.

 Greater satisfaction.

4. Benefits to staff
 Empowerment.

 More training and more skills.

 More recognition of achievement.

Benefits of TQM include
Improves competitive position
Increase adaptability to global
markets
Elevated productivity
Eliminates defects
Significantly reduces waste.
Reduces quality costs
Improves management
communication
Raises profits
Customer loyalty
OBSTACLES OR BARRIERS IN TQM
1. Lack of management commitment
In order for any organizational effort to succeed, there must be a substantial
management commitment of management time and organizational
resources. The purpose must be clearly and continuously communicated to
all personnel management must consistently apply the principle of TQM.
2. Inability to change organizational culture
Changing an organization's culture is difficult and will require as much as
five years. Individuals resist change--they become habituated to doing a
particular process and it becomes the preferred way. Management must
understand and utilize the basic concepts of change. They are;
People change when they want to and to meet their own needs
Never expect anyone to engage in behaviour that serves the organization's
values unless adequate reason(why) has been given.
For change to be accepted, people must be moved from a state of fear to
trust.
It is difficult for individuals to change their way of doing things; It is much
more difficult for an organization to make cultural change. Organization that
spend more planning for the cultural aspects of implementing a TQM
program will improve their chance of success.
e.g. concern to India, Chandigarh is the first smoke free city of India, this is
the cultural change.
3. Improper planning
All constituents of the organization must be involved in the development of
the implementation plan and any modifications that occur as the plan
evolves. The Two-way communication of ideas is the matter of great
importance and should be taken by all personnel during the development of
the plan and its implementation. Customer satisfaction should be the goal
rather than financial or sales goals.

4. Lack of continuous training and education

Training and education is an ongoing process for everyone in the
organization. Needs must be determined and a plan developed to achieve
those needs. Training and education are most effective, when senior
management conducts the training on the principles of TQM. External
trainer can be hired for communicating the TQM effort to all personnel on a
continual basis. Lack of training in group discussion and communication
techniques, quality improvement skills, problem identification, and the
problem-solving method was the second most important obstacle.
5. Incompatible organizational structure and isolated individuals
and departments
Difference between departments and individuals can create
implementation problems. The use of multifunctional teams will help to
break down long-standing barriers. Restructuring to make the
organization more response to customer needs may be needed.
Individuals who do not embrace the new philosophy can be required to
leave the organization.

6. Ineffective measurement techniques and lack of access to data

and results
Key characteristics of the organization should be measured for effective
decision making. To improve a process are you need to measure the
effect of improvement ideas. Access to data and quick retrieval is
necessary for effective processes. Find the root cause, correct the
problem and eliminate the root cause to prevent recurrence of the
problem
7. Paying inadequate attention to internal and external customers
Organizations need to understand the changing needs and expectations
of their customers. Effective feedback mechanism that provide data for
decision making are necessary for this understanding. Give the right
people (who are directly working on the product) direct access to the
customers. When an organization fails to empower individuals and
teams, it can't hold them responsible for producing results.

8. Inadequate use of empowerment and team work

Teams need to have the proper training and at least in the beginning by
a facilitator. Individuals should be empowered to make decisions that
affect the efficiency of their process or the satisfaction of their customer.

9. Failure to continuously improve

It is tempting to sit back and rest on your laurels. However, a lack of
continuous improvement of the process, product and service will even
leave the leader of the pack in the dust.
Obstacles/Barriers in implementation of TQM

 Many organizations, especially small ones with a

niche, are comfortable with their current state. They
are satisfied with the amount of work being performed,
the profits realized and the perception that the
customers are satisfied. Organizations with this culture
will see little need for TQM until they begin to lose
market share.

 Robert J. Masters after an extensive research mention

9 obstacles in implementation of TQM in the
organization. The obstacles are given as below 
 Obstacles to TQM implementation:

• Lack of management commitment

• Inability to change organizational culture
• Improper planning
• Lack of continuous training and education
• Isolated individuals and departments
• Ineffective measurement techniques
• Paying inadequate attention to internal & external
customers
• Inadequate use of empowerment and teamwork
• Failure to continually improve