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Total Quality Management
                 Chapter 1: Introduction




         Atit Patumvan
         Faculty of Management and Information Sciences,
         Naresuan University



                  1
2




                                                         Agenda


 • Definitions

 • Basic Approach

 • Gurus of TQM

 • TQM Framework


Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
3




                                                  Agenda                             (cont.)




 • Awareness

 • Defining Quality

 • Obstacles

 • Benefits of TQM


Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
4




                       the art of managing the whole
                           to achieve excellence




Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
5




               Total Quality Management


 • 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.


Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
6




                    Basic Concepts of TQM
 • A committed and involved management to provide long-term top-
   to bottom.

 • An unwavering focus on the customer, both internally and
   externally.

 • Effective involvement and utilization of the entire work force.

 • Continuous improvement of the business and production process.

 • Treating suppliers as partners.

 • Establish performance measures for the processes.

Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
7




                            Another way to put it

 • TQM is all managers leading and facilitating all
   contributors in everyone’s two main objectives:

      • total client satisfaction through quality products
        and services

      • continuous improvements to process, systems,
        peoples, suppliers, partners, products and
        services

Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
8




       TQM vs. Traditional Approach
      Quality Element                                   Previous State                         TQM
               Definition                                   Product-oriented               Customer-oriented

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

               Decisions                                        Short-term                    Long-term

               Emphasis                                         Detection                     Prevention

                 Errors                                        Operations                      System

            Responsibility                                   Quality control                  Everyone

          Problem Solving                                       Managers                        Teams

             Procurement                                         Process             Life-cycle costs, partnership

           Manager’s Role                                     Management                    Administrative


Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
9




                                              Guru of TQM
 • Walter A Shewhart

 • W. Edwards Deming

 • Josph M. Juran

 • Armand V. Feigenbaum

 • Kaoru Ishikawa

 • Phillip B Cosby

 • Genichi Taguchi
Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
10




                                      TQM Framework


                                                                    Tools and
                     Gurus
                                                                   Techniques



                Principles                                      Product or
                                                                                           Customers
              and Practices                                Services Realization


                                                                 Approach: Continuous Process Improvement

                                                                   Measure: Performance Measures

Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
11




                                                   Awareness



              Lost in market share                                                           Meet
                   productivity or
                                                        Awareness                    TQM   Customer
                   quality needs                                                            needs




Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
12




                                       Defining Quality

           Lost in market share                                                              Meet
                productivity or
                                                     Awareness                       TQM   Customer
                quality needs                                                               needs


        Q = P/E
                                  where                        Q = quality
                                                               P = performance
                                                               E = expectations
Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
13




               The Dimensions of Quality
        Dimension                                                      Meaning and Example

   Performance                        Primary product characteristics


   Features                           Secondary characteristics


   Conformance                        Meeting specifications or industry standards, workmanship


   Reliability                        Consistency of performance over time, average time for the unit to fail


   Durability                         Useful life, include repair


   Service                            Resolution of problems and complaints, ease of repair


   Response                           Human-to-human interface


   Aesthetics                         Sensory characteristics


   Reputation                         Past performance and other intangibles
Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
14




                                                       Obstacle
              Lost in market share                                                           Meet
                    productivity or
                                                         Awareness                   TQM   Customer
                    quality needs                                                           needs


                          • Lack of Management Commitment
                          • Inability to Change Organization Culture
                          • Improper Planning
                          • Lack of Continuous Training and Education
                          • Incomplete Organization Structure and Isolated Individual and Departments
                          • In effective Measurement Techniques and Lack of Access to Data and Results
                          • Paying Inadequate Attention to Internal and External Customer
                          • Inadequate Use of Empowerment and Teamwork
                          • Failure to Continually Improve



Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
15




                                       Benefits of TQM
                                                         Increase in Sales




            Lost in market share                                                             Meet
                 productivity or
                                                      Awareness                      TQM   Customer
                 quality needs                                                              needs

                                  Improve productivity
                                      and quality

Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University

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TQM Chapter 1 Intro

  • 1. Total Quality Management Chapter 1: Introduction Atit Patumvan Faculty of Management and Information Sciences, Naresuan University 1
  • 2. 2 Agenda • Definitions • Basic Approach • Gurus of TQM • TQM Framework Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 3. 3 Agenda (cont.) • Awareness • Defining Quality • Obstacles • Benefits of TQM Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 4. 4 the art of managing the whole to achieve excellence Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 5. 5 Total Quality Management • 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. Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 6. 6 Basic Concepts of TQM • A committed and involved management to provide long-term top- to bottom. • An unwavering focus on the customer, both internally and externally. • Effective involvement and utilization of the entire work force. • Continuous improvement of the business and production process. • Treating suppliers as partners. • Establish performance measures for the processes. Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 7. 7 Another way to put it • TQM is all managers leading and facilitating all contributors in everyone’s two main objectives: • total client satisfaction through quality products and services • continuous improvements to process, systems, peoples, suppliers, partners, products and services Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 8. 8 TQM vs. Traditional Approach Quality Element Previous State TQM Definition Product-oriented Customer-oriented First among equals of service Priorities Second to service and cost and cost Decisions Short-term Long-term Emphasis Detection Prevention Errors Operations System Responsibility Quality control Everyone Problem Solving Managers Teams Procurement Process Life-cycle costs, partnership Manager’s Role Management Administrative Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 9. 9 Guru of TQM • Walter A Shewhart • W. Edwards Deming • Josph M. Juran • Armand V. Feigenbaum • Kaoru Ishikawa • Phillip B Cosby • Genichi Taguchi Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 10. 10 TQM Framework Tools and Gurus Techniques Principles Product or Customers and Practices Services Realization Approach: Continuous Process Improvement Measure: Performance Measures Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 11. 11 Awareness Lost in market share Meet productivity or Awareness TQM Customer quality needs needs Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 12. 12 Defining Quality Lost in market share Meet productivity or Awareness TQM Customer quality needs needs Q = P/E where Q = quality P = performance E = expectations Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 13. 13 The Dimensions of Quality Dimension Meaning and Example Performance Primary product characteristics Features Secondary characteristics Conformance Meeting specifications or industry standards, workmanship Reliability Consistency of performance over time, average time for the unit to fail Durability Useful life, include repair Service Resolution of problems and complaints, ease of repair Response Human-to-human interface Aesthetics Sensory characteristics Reputation Past performance and other intangibles Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 14. 14 Obstacle Lost in market share Meet productivity or Awareness TQM Customer quality needs needs • Lack of Management Commitment • Inability to Change Organization Culture • Improper Planning • Lack of Continuous Training and Education • Incomplete Organization Structure and Isolated Individual and Departments • In effective Measurement Techniques and Lack of Access to Data and Results • Paying Inadequate Attention to Internal and External Customer • Inadequate Use of Empowerment and Teamwork • Failure to Continually Improve Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University
  • 15. 15 Benefits of TQM Increase in Sales Lost in market share Meet productivity or Awareness TQM Customer quality needs needs Improve productivity and quality Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University

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