1. GROUP MEMBER
1 ABEYOU BELETE
3 BRUK TIGISTU
4 TSINAT PETIROS
አርክቴክቸር ት/ት ክፍል
Total Quality Management (TQM)
•Total — Made up of the whole(or) Complete.
•Quality — Degree of Excellence a product or
service provides to the customer in present and
future.(customer satisfaction and loyalty.)
• Management — Act , art, or manner of
handling , controlling, directing, TQM is the art
of managing the whole to achieve excellence.
3. Before Industrial Revolution, skilled craftsmen served
both as manufacturers and inspectors, building quality
into their products through their considerable pride in
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
4. WHAT IS TOTAL QUALITY MANAGEMENT (TQM)?
• TQM describes a management approach to long-term
success through customer satisfaction all members of
an organization participate in improving processes,
products, services, and the culture in which they work.
Definitions and concepts
• It is the practice of promoting and ensuring excellence and
safety in products by involving all relevant stakeholders,
including but not limited to:
• Total quality management (TQM) is an ongoing process of detecting
and reducing or eliminating errors.
• It is a management strategy aimed at embedding awareness of
quality in all organizational processes.
• It is used to streamline supply chain management, improve customer
service, and ensure that employees are trained
• The focus is to improve the quality of an organization's outputs,
including goods and services, through the continual improvement of
• Special emphasis is put on fact-based decision making, using
performance metrics to monitor progress; high levels of organizational
communication are encouraged for the purpose of maintaining
employee involvement and morale
6. Fundamental principles
The eight principles of total quality management are
The customer ultimately determines the level of
quality. No matter what an organization does to foster
quality -- employees, integrating quality into the
design process, or upgrading computers or software --
the customer determines whether the efforts were
7. 2. Total employee involvement
• All employees work toward common goals. To gain total
employee commitment, fear must be driven from the
• employees must feel empowered, and management must
provide the proper environment.
• Self-managed work teams are one form of empowerment.
High-performance work systems integrate continuous
improvement efforts with normal business operations.
8. 3. Process-centered
• A fundamental part of TQM is a focus on process
• A process is a series of steps that take inputs from
suppliers (internal or external) and transforms them into
outputs that are delivered to customers (internal or
• The steps required to carry out the process are defined,
and performance measures are continuously monitored in
order to detect unexpected variation.
9. 4. Integrated system
• Although an organization may consist of many different
functional specialties often organized into vertically
structured departments, it is the horizontal processes
interconnecting these functions that are the focus of TQM.
• Micro-processes add up to larger processes, and all processes
aggregate into the business processes required for defining and
implementing strategy. Everyone must understand the vision,
mission, and guiding principles as well as the quality policies,
objectives, and critical processes of the organization. Business
performance must be monitored and communicated
10. 5. Strategic and systematic approach
• A critical part of the management of quality is
the strategic and systematic approach to
achieving an organization’s vision, mission, and
goals. This process, called strategic planning or
strategic management, includes the formulation
of a strategic plan that integrates quality as a core
11. 6. Continual improvement
• A core aspect of TQM is continual process
improvement. Continual improvement drives an
organization to be both analytical and creative in
finding ways to become more competitive and more
effective at meeting stakeholder expectations.
12. 7. Fact-based decision-making
• In order to know how well an organization is performing, data
on performance measures are necessary. TQM requires that an
organization continually collect and analyze data in order to
improve decision making accuracy, achieve consensus, and
project future outcomes based on past history
• During times of organizational change, as well as part of
day-to-day operation, effective communications is crucial in
maintaining morale and in motivating employees at all
levels. Communications involve strategies, method, and
13. Aim and objectives
i. Total customer satisfaction
ii. Totality of functions
iii.Total range of products and services
iv.Addressing all aspects of dimensions of quality
v. Addressing the quality aspect in everything – products, services,
processes, people, resources and interactions.
vi.Satisfying all customers – internal as well as external
vii.Addressing the total organizational issue of retaining customers and
viii.Improving profits, as well as generating new business for the future.
ix.Involving everyone in the organization in the attainment of the said
x. Demanding total commitment from all in the organization towards the
achievement of the objective
14. Importance of Quality Management
• Quality is one of the most important factors
determining the success of a business. Customers
always consider the quality of a business’s goods and
services while purchasing them. In fact, in some
cases, quality gets prominence over price as well
• Good quality of products always gives
every organization a strong edge over its competitors.
It also rewards the business with customer
patronage, word of mouth and goodwill. It is because
of these benefits that total quality management has
become so important.
15. Framework and approach
• The total quality management concept has undergone many
changes and developments ever since it has been evolved. The
modification of TQM has produced Six Sigma. It is a new face
on the TQM canvas
• The Six Sigma is based on five principals. DMAIC – Define,
measure, analyze, improve and control.
• His study revealed that this approach of TQM encourages team
work to attain organization success. The companies using Six
Sigma have two teams i.e., green belt and Black belt
16. • The green belts undergo 1-2 weeks training. This is learning
and knowledge transference where the trainees learn effective
project management, problem solving, data analysis
• Black belts trained on specialized skills and knowledge. The
training is designed to teach them computer aided statistical
applications and technologies
• The training to black belts is spread over 5 weeks’ time. Such
courses and training demand a strong background of
mathematics and statistics education at college or university
17. Core Values, Principles and Concepts
• W. Edwards Deming’s 14 Points for Total Quality
Management, or the Deming Model of Quality Management
• A core concept on implementing TQM, is a set of
management practices to help companies increase their
quality and productivity.
Deming's 14 Points for TQM
1. Create constancy of purpose for improving products and
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality
18. 4. End the practice of awarding business on price alone;
instead, minimize total cost by working with a single
5. Improve constantly and forever every process for
planning, production, and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations, and targets for the
19. 11. Eliminate numerical quotas for the workforce and
numerical goals for management.
12. Remove barriers that rob people of pride of
workmanship and eliminate the annual rating or merit
13. Institute a vigorous program of education and self-
improvement for everyone.
14. Put everybody in the company to work accomplishing
20. Merits/ Benefits
Some of the Benefits of Total Quality Management are:
Cost Reduction and Increased Profitability
Reduces Redundant Activities
Promotes Innovation Process
Holistic Approach to Management
Promotes Continual Improvement
Facilitates Competitive Edge
Facilitates Effective Communication and Employee Morale
Generally Quality is having different meanings for
different people. In spite of this any organization aiming
for sustainable competitive advantage needs to assess
customer’s needs to fix a quality objective. Immaculate
planning is required to attain the pre decided quality
goals. Proper monitoring and people’s involvement can
ultimately enable an organization to achieve the desired
results. In the long run the good quality always wins the
• TQM is a time-consuming process as it involves proper evaluation of the
process of manufacturing a product or service. This is not atypical of other
models, and for any real systematic change, an organization needs to remain
committed and be realistic that not all changes will occur immediately.
Another cited critique is that it can be costly to maintain the quality of the
product. It requires the cost of training the employees, improving the
infrastructure of the organization, charges of the consultancy firm to aid in
improving quality. Lastly, some argue that there is a danger of hindering
creativity and innovation. If an organization focuses on the satisfaction of the
customer only and the product satisfies the needs of the customer, then it is
not necessary, that the innovative product will also satisfy. Thus, the
management cannot use creative ideas as it may result in losing the customer.