2. Total Quality Management
Explain Total, Quality and Management
TQM is a philosophy which applies equally to
all parts of the organization.
TQM can be viewed as an extension of the
traditional approach to quality.
TQM places the customer at the forefront of
quality decision making.
Greater emphasis on the roles and
responsibilities of every member of staff
within an organization to influence quality.
All staff are empowered.
3. What is Total Quality Management?
Definition: TQM is a management philosophy, a
paradigm, a continuous improvement approach to
doing business through a new management model.
TQM is a comprehensive management system which:
-Focuses on meeting owners’/customers’ needs, by
providing quality services at a reasonable cost.
-Focuses on continuous improvement.
-Recognizes role of everyone in the organization.
-Views organization as an internal system with a
common aim.
-Focuses on the way tasks are accomplished.
-Emphasizes teamwork
4. • What is a customer?
Anyone who is impacted by the product or process delivered by
an organization.
External customer: The end user as well as intermediate
processors. Other external customers may not be purchasers
but may have some connection with the product.
Internal customer: Other divisions of the company that receive
the processed product.
• What is a product?
The output of the process carried out by the organization. It may
be goods (e.g. automobiles, missile), software (e.g. a computer
code, a report) or service (e.g. banking, insurance)
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5. • How is customer satisfaction achieved?
Two dimensions: Product features and Freedom from
deficiencies.
• Product features – Refers to quality of design.
Examples in manufacturing industry: Performance, Reliability,
Durability, Ease of use, Esthetics etc.
Examples in service industry: Accuracy, Timeliness, Friendliness
and courtesy, Knowledge of server etc.
• Freedom from deficiencies – Refers to quality of conformance.
Higher conformance means fewer complaints and increased
customer satisfaction.
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6. The TQM Approach
• Find out what the customer wants
• Design a product or service that meets or
exceeds customer wants
• Design processes that facilitates doing the
job right the first time
• Keep track of results
• Extend these concepts to suppliers
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7. Elements of TQM
• Continual improvement: Kaizen
• Competitive benchmarking
• Employee empowerment
• Team approach
• Decisions based on facts
• Knowledge of tools
• Supplier quality
• Champion
• Quality at the source: The philosophy of making each
worker responsible for the quality of his or her work.
• Suppliers
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8. Steps in implementing TQM
1. Obtain CEO Commitment
2. Educate Upper-Level Management
3. Create Steering Committee
4. Outline the Vision Statement, Mission Statement,
& Guiding Principles
5. Prepare a Flow Diagram of Company Processes
6. Focus on the Owner/Customer (External) & Surveys
7. Consider the Employee as an Internal Owner/customer
8. Provide a Quality Training Program
9. Establish Quality Improvement Teams
10. Implement Process Improvements
11. Use the Tools of TQM
12. Know the Benefits of TQM
9. TQM beliefs
Following are the universal Total Quality Management beliefs:
-Owner/customer satisfaction is the measure of quality
-Everyone is an owner/customer.
-Quality improvement must be continuous.
-Analysis of the processes is the key to quality improvement.
-Measurement, a skilled use of analytical tools, and
employee involvement are critical sources of quality
improvement ideas and innovations
-Sustained total quality management is not possible without
active, visible, consistent, and enabling leadership by
managers at all levels
-It is essential to continuously improve the quality of
products and services that we provide to our
owners/customers
10. Benefits of TQM:
1. Advantages unique to TQM –
a. It makes a company a leader not a follower.
b. TQM creates goal directed connection between
customers, management, and workers. Everyone is
motivated to contribute. Thus, it fosters team work.
c. It makes the company more sensitive to customer
needs.
d. It makes the company adopt more readily to
change.
2. Benefits to customers –
a. Fewer problems with product or service
b. Better customer care.
c. Greater satisfaction
11. 3. Benefits for the company –
a. Better product quality.
b. Staff is more motivated and quality conscious.
c. Productivity improvement
d. Reduced quality costs
e. Enhanced problem solving capacity
f. Increased market.
g. increased competitive position of the firm, improved
profitability
h. good public image by helping it to provide goods and services of
higher quality at lower cost to society
4. Benefit to staff –
a. Empowerment
b. Enhancement of job interest and security
c. More training and improvement in skills
d. More recognition
e. Reduced employee grievances.
12. Principles and Core concepts of TQM:
• Delight the Customer
a. customer Satisfaction
b. Internal customers are real
• Management by facts
a. All work is process
b. measurement
• People based management
a. team-work
b. people make quality
• Continuous improvement
a. continuous improvement cycle
b. prevention
13. PDCA Cycle repeated to create continuous
improvement
Performance
Plan
Do
Act
Check
“Continuous”
improvement
Time
14. IMPLEMENTATION OF TQM (PDCA WAY)
Steps in TQM Process
PLAN DO
1. Policies and objectives 3.Education and Training
2. Methods to achieve 4. Implementation of
objectives Change
ACT CHECK
7. Prevent undesired effects 5. Observe results
8. Measure for improvements 6. Analyse Results
15. Process improvement: Kaizen
• Japanese for gradual and orderly continuous improvement over a
long period of time with minimum financial investment, and with
participation by everyone in the organization.
• Improvement in all areas of business serves to enhance quality of the
firm.
• Three things required for successful kaizen program: operating
practices, total involvement, and training.
• Operating practices expose opportunities for improvement. JIT
reveals waste and inefficiency as well as poor quality.
• Every employee strives for improvement. Top management views
improvement as part of strategy and supports it. Middle
management can implement top management’s improvement goals
by establishing, maintaining, and upgrading operating standards.
Workers can engage through suggestions, small group activity.
• Middle management can help create conducive environment for
improvement by improving cooperation amongst departments, and
by making employees conscious of their responsibilities for
improvement.
• Supervisors can direct their attention more on improvement than
supervision, which will facilitate communication.
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16. Kaizen: Implementation
• The Deming cycle: Originally developed by Walter Shewart,
but renamed in 1950s because Deming promoted it
extensively.
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17. Kaizen: Implementation
• Plan – Study the current system; identifying problems; testing
theories of causes; and developing solutions.
• Do – Plan is implemented on a trial basis. Data collected and
documented.
• Study – Determine whether the trial plan is working correctly
by evaluating the results.
• Act – Improvements are standardized and final plan is
implemented.
• Variation of PDSA cycle: FADE – Focus, Analyze, Develop,
Execute cycle!
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19. 1.Flow charts
• Process map identifies the sequence of activities or the flow in
a process.
• Objectively provides a picture of the steps needed to
accomplish a task.
• Helps all employees understand how they fit into the process
and who are their suppliers and customers.
• Can also pinpoint places where quality-related measurements
should be taken.
• Also called process mapping and analysis.
• Very successfully implemented in various organizations. e.g.
Motorola reduced manufacturing time for pagers using flow
charts.
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20. 2.Check sheets
• Special types of data collection forms in which the results may
be interpreted on the form directly without additional
processing.
• Data sheets use simple columnar or tabular forms to record
data. However, to generate useful information from raw
data, further processing generally is necessary.
• Additionally, including information such as specification limits
makes the number of nonconforming items easily observable
and provides an immediate indication of the quality of the
process.
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22. 4.Pareto diagrams
• Based on the 85-15
Pareto distribution.
• Helpful in identifying
the quality focus areas.
• Popularized by Juran.
• It is a histogram of the
data from the largest
frequency to the
smallest.
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23. 5.Cause-effect diagrams
• Also called fishbone diagrams (because of their shape) or
Ishikawa diagrams.
• Helps in identifying root causes of the quality failure. (Helps
in the diagnostic journey.)
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24. 6.Scatter diagrams
• Graphical components of the regression analysis.
• Often used to point out relationship between variables.
Statistical correlation analysis used to interpret scatter
diagrams.
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25. 7.Run charts and Control charts
• Run chart: Measurement against progression of time.
• Control chart: Add Upper Control Limit and Lower Control
Limit to the run chart.
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26. Quality circles
• Teams of workers and supervisors that meet regularly to
address work-related problems involving quality and
productivity.
• Developed by Kaoru Ishikawa at University of Tokyo.
• Became immediately popular in Japan as well as USA.
• Lockheed Missiles and Space Division was the leader in
implementing Quality circles in USA in 1973 (after their visit
to Japan to study the same).
• Typically small day-to-day problems are given to quality
circles. Since workers are most familiar with the routine tasks,
they are asked to identify, analyze and solve quality problems
in the routine processes.
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27. ISO 9000: 2000 Quality Management Principles
• Principle 1: Customer Focus
• Principle 2: Leadership
• Principle 3: Involvement of people
• Principle 4: Process approach
• Principle 5: Systems approach for management
• Principle 6: Continual improvement
• Principle 7: Factual approach to decision making
• Principle 8: Mutually beneficial supplier relationships.
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28. Six Sigma
• Business improvement approach that seeks to find and
eliminate causes of defects and errors in processes by focusing
on outputs that are critical to customers.
• The term Six Sigma is based on a statistical measure that
equates 3.4 or fewer errors or defects per million
opportunities.
• Motorola pioneered the concept of Six Sigma.
• The late Bill Smith, a reliability engineer is credited with
conceiving the idea of Six Sigma.
• GE (specifically CEO Jack Welch) extensively promoted it.
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29. Obstacles to Implementing TQM
• Lack of a company-wide definition of quality.
• Lack of a formalized strategic plan for change.
• Lack of a customer focus.
• Poor inter-organizational communication.
• Lack of real employee empowerment.
• Lack of employee trust in senior management.
• View of the quality program as a quick fix.
• Drive for short-term financial results.
• Politics and turf issues.
