TQM&E

Yohannes Workeaferahu
BA,MSc,PhD
Associate Professor of management
AAU
The Text Book
Evaluation

• Projects/ Assignments: 50 marks

• Final exam :50 marks
Course Contents : as per the framework of
TQM

1) Introduction: Principles and Practices

2) People and Relationships (Group Project 1)
3) TQM Tools and Techniques ( Group Project 2)
4) Approach
5) Measure
 Part 1: Introduction (Principles and Practices)

 Modality: Class room lecture & Reflections

Part 2: People and Relationships

• Group Project 1 + Presentations

Mark 25%
 Part 3: Tools and Techniques

• Group Project 2 + Presentation

• Mark 25%
 Let’s start with part 1
 Part 1: Introduction (Principles and Practices)

 Modality: Class room lecture & Reflections

 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 world-class
competition. Only by changing the actions of management will the culture and
actions of an entire organization be transformed. TQM is for the most part
common sense. Analyzing the three words, we have
1) Total—Made up of the whole.
2) Quality—Degree of excellence a product or service provides.
3) Management—Act, art, or manner of handling, controlling, directing, etc.
What is TQM?
• Therefore, TQM is the art of managing the whole to achieve excellence. The
Golden Rule is a simple but effective way to explain it: Do unto others as
you would have them do unto you.
• TQM is defined as both a philosophy and a set of guiding principles that
represent the foundation of a continuously improving organization. It is the
application of quantitative methods and human resources to improve all the
processes within an organization and exceed customer needs now and in the
future. TQM integrates fundamental management techniques, existing
improvement efforts, and technical tools under a disciplined approach.
Basic
•
Approach
TQM requires six basic concepts:
1. A committed and involved management to provide long-term top-to-bottom
organizational support.
2. An unwavering focus on the customer, both internally and externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.
• These concepts outline an excellent way to run an organization.
 Concept 1: top management
involvement. What does this mean?
• Management must participate in the quality program.
• A quality council/team/committee must be established to develop a clear vision, set
long-term goals, and direct the program.
• Quality goals should be included in the business plan/organization’s strategy.
• An annual quality improvement program should be established and take input from
the entire work force.
• Managers actively participate on quality improvement teams and also act as coaches
in the teams.
• TQM is a continual activity that must be entrenched in the culture—it is not just a
one-shot program.
• TQM must be communicated to all people
 Concept 2: Focus on Customer
• The key to an effective TQM program is its focus on the customer.
• An excellent place to start is by satisfying internal customers.
• We must listen to the “voice of the customer” and emphasize design quality and defect
prevention.
• Do it right the first time and every time, for customer satisfaction is the most important
consideration.

Internal customers are people within your organisation who receive goods or services from
another part of your business. They are stakeholders who might be employees, subcontractors,
partner businesses or individuals or – by some definitions – suppliers.
Concept 3: Effective involvement and utilization of the entire
work force
• TQM is an organization-wide challenge that is everyone’s responsibility.
• All personnel must be trained in TQM, statistical process control (SPC), and other appropriate
quality improvement skills so they can effectively participate on project teams.
• Including internal customers and, for that matter, internal suppliers on project teams is an excellent
approach.
• Those affected by the plan must be involved in its development and implementation. They
understand the process better than anyone else.
• Changing behavior is the goal.
• People must come to work not only to do their jobs, but also to think about how to improve their
jobs. People
• must be empowered at the lowest possible level to perform processes in an optimum manner.
Statistical process control (SPC) monitors manufacturing processes with technology that measures and
controls quality.

• Internal Suppliers: supplier who is a part of the same company that provide products,
services, or other resources. They are the upstream processes and the support groups that
provide their coworkers with the tools, materials, and work-in-process to do their jobs.
Concept 4: Continuous improvement of the business and
production process
• There must be a continual striving to improve all business and production processes.
• Quality improvement projects, such as on-time delivery, order entry efficiency,
billing error rate, customer satisfaction, cycle time, scrap reduction, and supplier
management, are good places to begin.
• Technical techniques such as SPC, benchmarking, quality function deployment, ISO
9000, and designed experiments are excellent for problem solving

• Quality Function Deployment (QFD) is a structured approach to defining

customer needs or requirements and translating them into specific plans to
produce products to meet those needs. The “voice of the customer” is the term
to describe these stated and unstated customer needs or requirements.
Concept 5: Treating suppliers as partners

• On the average 40% of the sales dollar is purchased product or service; therefore,
the supplier quality must be outstanding.
• A partnering relationship rather than an adversarial one must be developed.
• Both parties have as much to gain or lose based on the success or failure of the
product or service.
• The focus should be on quality and life-cycle costs rather than price.
• It is ensuring true partnership with suppliers
Concept 6: Establish performance measures for the
processes
• Performance measures such as uptime, percent nonconforming, absenteeism, and
customer satisfaction should be determined for each functional area.
• These measures should be posted for everyone to see.
• Quantitative data are necessary to measure the continuous quality improvement
activity.
• Uptime: a metric/meaure that represents the percentage of time that
hardware, a computer network, or a device or a machinery is successfully
operational.
• percent nonconforming : the proportion or fraction nonconforming (defective) in a
population is defined as the ratio of the number of nonconforming items in the
population to the total number of items in that population.
New and old Cultures

• Take a look at the text book (Table 1.1) and allow students to reflect

• The guiding idea: TQM requires a cultural change. Table 1-1 compares the
previous state with the TQM state for typical quality elements. This change
is substantial and will not be accomplished in a short period of time. Small
organizations will be able to make the transformation much faster than
large organizations.
Gurus of Total Quality Management

• Take a look at the book and allow students to reflect

Awareness: TQM Framework

• An organization will not begin the transformation to TQM until it is aware

that the quality of the product or service must be improved.
• Awareness comes about when an organization loses market share or realizes
that quality and productivity go hand-in-hand.
• It also occurs if TQM is mandated by the customer or if management realizes
that TQM is a better way to run a business and compete in domestic and
world markets.

• Allow students to have a look at the framework from the book and reflect
TQM Framework
Defining Quality and Quality Dimensions

• When the expression “quality” is used, we usually think in terms of an excellent

product or service that fulfills or exceeds our expectations.
• These expectations are based on the intended use and the selling price.
• When a product surpasses our expectations we consider that quality.

• Thus, it is somewhat of an intangible based on perception. Quality can be

quantified as follows: Q = P / E, where Q = quality P = performance E = expectation
• If Q is greater than 1.0, then the customer has a good feeling about the product or
service. Of course, the determination of P and E will most likely be based on
perception with the organization determining performance and the customer
determining expectations
ISO 9000:2000 Definition of Qualaity
• A more definitive definition of quality is given in ISO 9000: 2000.
• It is defined as the degree to which a set of inherent characteristics fulfills
requirements.
• Degree means that quality can be used with adjectives such as poor, good,
and excellent.
• Inherent is defined as existing in something, especially as a permanent
characteristic.
• Characteristics can be quantitative or qualitative.
• Requirement is a need or expectation that is stated; generally implied by the
organization, its customers, and other interested parties; or obligatory.
Quality Dimensions
•Quality has nine different dimensions.
•These dimensions are somewhat
independent; therefore, a product can be
excellent in one dimension and average
or poor in another.
Quality Dimensions
TQM Obstacles : Implementation Obstacles/challenges
• Once an organization embarks on TQM, there will be obstacles to its successful
implementation:
1. Lack of Management Commitment
2. Inability to Change Organizational Culture
3. Improper Planning
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 Result
7. Paying Inadequate Attention to Internal and External Customers
8. Inadequate Use of Empowerment and Teamwork
9. Failure to Continually Improve
Benefits of TQM
TQM brings about positive results on the following aspects:
• improved quality,
• employee participation,
• teamwork,
• working relationships,
• customer satisfaction,
• employee satisfaction,
• prouductivity,
• communication,
• profitability, and
• market share.
Part 2: People and Relationships

• Group Project 1 + Presentations

 Part 3: Tools and Techniques

• Group Project 2 + Presentation

•Organizational Excellence
Meaning of organizational Excellence

• Organizational excellence is defined as the

ongoing efforts to establish an internal framework
of standards and processes intended to engage
and motivate employees to deliver products and
services that fulfill customer requirements within
business expectations.
Organizational Excellence
• It’s
not enough for organizations to be good. For those
who want to be the top and timeless choice in the
market, excellence must be the goal.
• Organizational excellence is achieved by focusing on
culture and strategy.
• The Evidence-Based Leadership Framework and Nine
Principles for Organizational Excellence work together
to build a top place work culture and offer strategies for
attaining excellent results.
The Evidence-Based Leadership
Framework
Aligned Goals

• Strategic Priorities and Goals: An organizational scorecard frames organizational

and team goals for improvement. What does success look like? What matters to
the team?
• Leader Development: Identify the skills all employees need to be successful and
achieve the identified goals. Build ongoing development and coaching to build
capacity.
Aligned Behaviors

• Always Behaviors/Actions: The behaviors everyone will live by to reflect the

organization’s standards of excellence. These are the mandatory behaviors and
non-compliance is not accepted.

• Performance Management: Systematic processes of reflection and feedback. Set

clear expectations, recognize good performance, and conduct conversations to
guide individual, team, and system performance.
Aligned Processes

• Standardization: Consistent deployment of short cycles of

action, improvement tools, tactics, and processes to learn, solve
problems, and hardwire improved processes and strategies to
achieve excellence and attain goals that matter.
• Accelerators: Testing and scaling new processes, technology,
resources, and work tools to reduce barriers and improve
performance to achieve identified goals.
•
NINE PRINCIPLES FOR ORGANIZATIONAL EXCELLENCE

• The Nine Principles for Organizational Excellence are the guiding concepts of the Evidence-
Based Leadership Framework. When applied with fidelity, these principles give organizations a
road map for developing a culture of excellence.
• Principle 1: Commit to Excellence
• Set high expectations to achieve results while living out mission and values.
• Principle 2: Measure the Important Things
• Continuously track progress to achieve results with an improvement mindset.
• Principle 3: Build a Culture Around Service
• Serve others with great care and concern.
• Principle 4: Develop Leaders to Develop People
• Coach people to be their best at work.
NINE PRINCIPLES FOR
ORGANIZATIONAL EXCELLENCE
• Principle 5: Focus on Employee Engagement
• Attend to aspirations and desires in the workplace.
• Principle 6: Be Accountable
• Commit to individual accountability to achieve organizational goals.
• Principle 7: Align Behaviors with Goals and Values
• Apply consistent practices to move the organization in a positive direction.
• Principle 8: Communicate at All Levels
• People know why what they do matters.
• Principle 9: Recognize and Reward Success
• Value and appreciate people working together to get results.
• End