VTU MBA-TQM 12MBA42 Module 1

1. TOTAL QUALITY MANAGEMENT
By… Prof. Raghavendran.V
MBA Department

2. TQM
WHAT IS
???
Any Answers
2
TQM by Prof. Raghavendran.V

3. Quality in simple definition can be defined as a measure
of excellence or a state of being free from defects &
deficiencies.
3
For example:
 Bike needs periodic check up!!
 Senior citizen needs regular health check up!!
 A newly upgraded computer is known for user
friendly!!
TQM by Prof. Raghavendran.V

4. Do we understood about the word Quality??
But,
What is TQM???
OOPS!!!!  I’ve no answer for
this!!!!
4
TQM by Prof. Raghavendran.V

5. TQM stand as….
Total: Made up of the whole.
Quality: Degree of excellence of a product or service
provides
Management: Act/ Art, Manner of handling, controlling &
directing it
5
 You are aware about it now  
TQM by Prof. Raghavendran.V

6. Now we can define that Total Quality Management is
an enhancement to the traditional way of doing
things.
6
TQM is defined as both philosophy and set of guiding
principles that represent the foundation of a
continuously improving organization. It is application
of quantitative methods & human resources to
improve all the processes within an organization and
customers.
Thus TQM integrates fundamental management
techniques, existing improvement efforts.
TQM by Prof. Raghavendran.V

7. Basic Approach or Principles(6)
A committed and involved management to provide
long term top-to-bottom organizational support.
2) An unwavering focus on the customer, both
internally & externally.
3) Effective involvement & utilization of the entire work
force.
4) Continuous improvement of the business and
production process.
5) Treating suppliers & Vendors as partners.
TQM by Prof. Raghavendran.V
6) Establishing the performance measures.
1)
7

8. Quality old & new cultures
Element
From 2 Decade’s
Definition
Product oriented
Customer oriented
Priorities
Second to service & cost
First
Decisions made
Short term
Long term
Emphasis
Detection
Prevention
Errors
Operations
System
Responsibility
Quality control
Every one
Problem solving
Managers only
Teams
Procurement
Price
Life cycle cost, partnership
Manager’s role
8
Previous to 2 decade’s
Plan, assign, control & enforce
Delegate, mentoring, coaching
& facilitate.
TQM by Prof. Raghavendran.V

9. Quality Dimensions of the
Products
1.
2.
3.
4.
5.
6.
7.
8.
9
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics &
Perceived Quality
TQM by Prof. Raghavendran.V

10. Quality Dimensions of the
Services










10
Reliability
Responsiveness
Competence
Access
Courtesy
Communication
Credibility
Security
Knowing the Customer
Tangibility
TQM by Prof. Raghavendran.V

11. Importance of Quality in Business &
Commerce
 There exists relationship between quality,
profitability and Market share.
 Customer driven quality
 Conformance or internal specification quality
11
TQM by Prof. Raghavendran.V

12. Price advantage
Customer Driven
Quality
Market share
Customer Value
Customer
Attributes &
Design
Specifications
Specification
Quality
12
TQM by Prof. Raghavendran.V
Eco
nom
ies
of
Scal
e
Profitability &
Growth
Lower Cost of
Quality
Specification
Quality
Lower Cost of
quality
Investment in Improved
Quality

13. Cost of Quality
 "The cost of quality, It’s a term that's widely used – and widely
13
misunderstood.
 The "cost of quality" isn't the price of creating a quality product or
service. It's the cost of NOT creating a quality product or service.
 Every time work is redone, the cost of quality increases. Obvious
examples include:
 The reworking of a manufactured item.
 The retesting of an assembly.
 The rebuilding of a tool.
 The correction of a bank statement.
 The Raghavendran.V
TQM by Prof.reworking of a service, such as the reprocessing of a loan
operation or the replacement of a food order in a restaurant.

14. Quality & Competitive Advantage
Competitive
Advantage & Quality
Clarifying the
Quality theme into
an operations
objective
Factors Affecting the
Quality
Understanding the
relationships among
factors affecting
Quality
Action to Improve
and Assure the
conformance to
objectives
Results
14
TQM by Prof. Raghavendran.V
Analysis

15. Evolution of TQM
From holistic historical review quality revolution, we
can deduce that Quality can be classified into four
evolutionary phases:
1. Inspection
2. Quality Control
3. Quality assurance
4. Total quality Management
15
TQM by Prof. Raghavendran.V

16. Inspection Phase:
During the early days of manufacturing, an operative’s work was
inspected and a decision made whether to accept or reject it. As
businesses became larger, so to do this role a full time
inspection jobs were created. Accompanying the creation of
inspection functions, other problems arose:
 More technical problems occurred, requiring specialized skills, often not
possessed by production workers.
 The inspectors lacked training.
 Inspectors were ordered to accept defective goods, to increase output.
 Skilled workers were promoted into other roles, leaving less skilled workers
to perform the operational jobs, such as manufacturing.
16
These changes led to the birth of the separate inspection
department with a “chief inspector”, reporting to either the person
TQM by Prof. Raghavendran.V
in charge of manufacturing or the manager. With the creation of

17. Quality Control Phase:
 Quality Control department evolved, in charge of
which was a “quality control manager”, with
responsibility for the inspection services and quality
control engineering. In the 1920’s statistical theory
began to be applied effectively to quality control, and
in 1924 Shewhart made the first sketch of a modern
control chart.
OBJECTIVES:
 Establish standards of quality which are acceptable.
 Setting & Resetting of processes & Machinery
 To keep up the quality of products during Manufacturing
17
process.
TQM by Prof. Raghavendran.V

18. Quality Control
18
Importance
 Increases the profits
 Enables the industry to
complete successfully.
 Reduces cost of
production
 Reduces operation
losses by keeping scrap
& wastes.
 Improves product
design
TQM by Prof. Raghavendran.V
 Reduces bottle necks
Functions
 Advises on inspection &
quality control policy
formulated.
 Sets inspection
standards in the light of
engineering tolerances.
 Prepares budget
request & controls
operating expenses.
 Select gauges and
instrument for
inspection.
 SQC are used

19. Quality Assurance Phase
 Quality assurance focuses on avoiding defects
19
appearance prior to its occurrence by planned
and systematic production processes that provide
confidence in a product's suitability for its
intended purpose. Quality assurance is
considered the third step in the evolution toward
TQM. It is different from quality control. Quality
assurance is evident before and during the event
process
 Itby Prof. Raghavendran.V
TQM has progressed in the following areas:

20. Quality Assurance Division
Delegate
d
Inspectio
n
Quality
Manage
ment
Product
Assuranc
e
Quali
ty
Assu
rance
Divisi
on
Central
Material
Inspecti
on
20
TQM by Prof. Raghavendran.V
Measurin
g
Instrume
nts
Reliabilit
y
Engineeri
ng
Material
Analysis

21. Functions of QA
21
Staff Functions
 Product Evaluation
 Standardization
 Calibration &
Maintenance
 Inwards goods
inspection
 Qualification Approval
 Environments tests
 Physical & Chemical
TQM by Prof. Raghavendran.V
Test
Line Functions
 Control & Production





Process
Inspection & testing
Installation & training
Spare parts support
Technical literature
Analysis of routine
problems on line and

22. Total Quality Management Phase
 After entering World War II in December 1941,
22
the United States government ratified legislation
to help gear the national economy to military
production. At that time, military contracts were
awarded to manufacturers who submitted the
lowest competitive bid. Products were inspected
to meet requirements upon delivery.
 During this period, quality was defined in terms of
safety. The armed forces inspected virtually every
TQM by Prof. Raghavendran.V
unit of product to ensure its safety for operation.

23. Phase
INSPECTION
QUALITY
CONTROL
QUALITY
ASSURANCE
TQM
Objective
Measurements of
specifications
Control of process
Distribution of
Quality
responsibility to
functional areas.
Continuous
improvement @
every level, @ place
@ stages.
Focus
Uniform Product
Quality
Reduction in
inspection work
Evaluation at all
stages
Customer
Satisfaction ( I& E)
Tools
Gauges and
measurement
Techniques
SQC tools &
Technique
Quality Planning
documentation &
Quality Systems
Commitment,
Participation,
motivation,
Education &
Training
Inspection
department
Production
Department
All Departments
Top Management
leadership
Inspection, Sorting
and Grading
Trouble shooting &
Controlling the
quality
Assuring to build
quality by Planning
Programme design
& control
Strategic
management, team
involvement and
action research
Criterion
Responsibility for
Quality
Approach
23
TQM by Prof. Raghavendran.V

24. Obstacles of TQM
Lack of management Commitment
2. Inability to change organizational culture
3. Improper planning
4. Lack of continuous training & Education
5. Incompatible organizational structure
6. Ineffective measurement techniques & Lack of
access to data & results.
7. Paying inadequate attention to internal & external
customers.
TQM by Prof. Raghavendran.V
1.
24

25. Assignment time:
Explain in detail about Benefits
of TQM??
Of the 6 basic TQM concepts,
which were the most effective in
world war II? explain
Brief out historic review of TQM.
25
TQM by Prof. Raghavendran.V

26. Module -1 completed
By Prof. Raghavendran.V
26
TQM by Prof. Raghavendran.V