Intro. to TQM

1. TOTAL
QUALITY
MANAGEMENT
By: -
Hakeem–Ur–Rehman
Certified Six Sigma Black Belt (SQII – Singapore)
IRCA (UK) Lead Auditor ISO 9001
MS–Total Quality Management (P.U.)
MSc (Information & Operations Management) (P.U.)
IBIT–PU
T MQ
UNDERSTANDING QUALITY & TQM CONCEPTS
1

2. WHAT IS TQM?
 TOTAL: Everyone associated with the company is involved
in CONTINUOUS IMPROVEMENT (including its customers &
suppliers if feasible)
 QUALITY: Customer’s expressed and implied needs and
requirements are met fully
 MANAGEMENT: Executives are fully committed.
TQM is a system approach for the continuous improvement of
all organizational processes through total participation of all
employees, resulting in high quality products and services to
attain customer satisfaction.
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TQM: PHILOSOPHY
“DO THE RIGHT THINGS, RIGHT THE FIRST TIME, EVERY TIME”

3. Marketing
Total Quality
Management
System
Design
Purchasing
Production
Warehousing
Distribution / Service
Learning & Knowledge Mngt.
DELIGHTED CUSTOMER
TOTAL QUALITY MANAGEMENT (TQM)
&
TOTAL ORGANIZATIONAL EXCELLENCE (TOE)
3

4. WHO DETERMINES QUALITY?
THE CUSTOMER
“Any one who receive or is affected by the
product, service, or process.”
CUSTOMER IS GOD
(CHINESE SAYING)
CUSTOMER IS KING
(JAPNESSIES SAYING)
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5. CUSTOMERS’ NEEDS
• EXPECTED NEEDS
– Are typically what one gets by just asking customers
what they want.
• STATED NEEDS
– Are the obvious / compulsory requirements. For example,
if meal is served hot, customers hardly notice it. If it's
cold or too hot, dissatisfaction occurs. Expected
requirements must be fulfilled.
• LATENT NEEDS
– Beyond the customer's expectations.
– If provided , customer would be excited
– If not ,they would hardly complain

6. TQM: A “CULTURAL” CHANGE
 Responsibility is pushed down to “empower” the
people who know the most about the job,
process or service.
 TQM focus is on the process;
 TQM separates the improvement process from
people personalities and egos. “Top-down”
management styles disappear.
 Reporting levels are reduced/streamlined.
 Management’s role shifts to more emphasis on
coaching.
 Jobs are not eliminated, but job content may
change
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7. PROCESS IMPROVEMENT CYCLE
7
PDCA
CYCLE
PLAN
DO
CHECK
ACT
DEVELP AN IMPROVEMENT PLAN
 Define the problem
 Formulate critical success factors
related to the vision
 Formulate objectives
Define performance measures &
targets
IMPLEMENTANT THE
IMPROVEMENT PLAN
ON THE LIMITED
SCALE
 Collect data
 Train those involved
 Describes the business
processes
 Formulate project teamCHECK IF IT WORKS
 Evaluate the trail project
 Provide Feedback
 What have we learned?
IMPLEMENT THE
VERIFIED
IMPROVEMENTS
 Document them in
standard procedures
 Train those involved
 Repeat the cycle
PDCA CYCLE

8. THE
DEMING
CHAIN
REACTION
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Improve Quality
Costs decrease
because of less rework, fewer
mistakes, fewer delays, snags,
better use of machine-time and
materials Productivity Improves
Productivity Improves
Capture the market
with better quality and lower price
Stay in business
Provide jobs and more jobs

9. 9
TQM EVOLUTION

10. QUALITY CONTROL VS. INSPECTION
PRODUCTION
TESTING
LABS
ADMIN,
QA
PROCESS
MAINT.
FINANCEPROCESS
MIXED
PRODUCT
C/A
Process and/or
Systems
Fixing
Cycle B
PRODUCT/
SERVICE
FIXING
Cycle A
Not
OK
Measu-
rement
OK
Standard
CORRECTIVE ACTIONS: Action taken to
eliminate the cause of a detected nonconformity or
other undesirable situation. (ISO 9000:2000)
 The operational techniques and activities that are used to fulfill the requirements for
quality. (ISO–9000)
 This general area may be divided into two main sub areas:
– Statistical Process Control
– Acceptance Sampling Plans
 INSPECTION + Corrective action

11. Product
Fixing
OK
Not
OK
PRODUCT
Performance
PROCESSES
Product, Process or
Systems Fixing &
Improvement
Customers
QUALITY CONTROL & QUALITY ASSURANCE
data
PROCESS
Performance
dataActions
Actions
DESIGN
Market
Customer
Legal
Benchmarks
Process
Financial
PREVENTIVE ACTIONS: Action
taken to eliminate the cause of a
potential nonconformity or other
potentially undesirable situation.
(ISO 9000:2000)
 Quality Assurance addresses the entire life cycle of a product, starting from the initial
product identification to final inspection, reliability in use and customer satisfaction.
 QUALITY ASSURANCE: All those planned and systematic activities implemented to provide
adequate confidence that an entity will fulfill requirements for quality.

12. QUALITY CONTROL
VS
QUALITY ASSURANCE
Quality Control
• Product
• Reactive
• Line function
• Find Defects
Quality Assurance
 Process
 Proactive
 Staff function
 Prevent defects
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13. Product
Fixing
OK
Not
OK
PRODUCT
Performance
PROCESSES
Product, Process or
Systems Fixing &
Improvement
Customers
INSPECTION,
QC , QA & QM
data
FIELD
Performance
Product , Process or
Systems Fixing
& Improvement
data
Actions
PROCESS
Performance
dataActions
Actions
DESIGN
Market
Customer
Legal
Benchmarks
Process
Financial
An ongoing effort to provide Products / services that meet or exceed customer
expectations through a structured, systematic process for creating organizational
participation in planning and implementing quality improvements.

14. EIGHT QUALITY
MANAGEMENT PRICINIPLES
8 QUALITY
MANAGEMENT
PRINCIPLES
Mutually beneficial
supplier relationship
Customer-focus
Factual Approach
to Management
Leadership
Involvement of
People
Process Approach
System approach to
management
Continual
Improvement
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15. WHAT IS QUALITY ?
 Fitness for Use or purpose
 Juran
 Quality is conformance to the requirements.
 Crosby
 Q=P/E
– Q= Quality
– P= Performance
– E= Expectations
 Q<1 Performance does not meet expectations
 Q=1 Performance equals expectations
 Q>1 performance is better than expectations

16. WHAT IS GRADE?
Category or rank given to different
quality requirements for products,
processes, or systems having the
same functional use.
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17. WHAT IS QUALITY?
 David Garvin found that most definitions of quality were
either TRANSCENDENT, PRODUCT–BASED, USER–
BASED, MANUFACTURING–BASED, or VALUE–BASED.
 TRANSCENDENT:
 “Level of Excellence”
 PRODUCT BASED:
 “Product Attributes”
 USER BASED:
 “Fitness for intended use”
 VALUE BASED:
 “Quality Vs Price”
 MANUFACTURING BASED:
 “Conformance to specifications” 17

18. QUALITY PERSPECTIVES
Distribution
Customer
products
and
services
needs Marketing
Design
Manufacturing
TRANSCENDENT &
PRODUCT-BASED USER-BASED
MANUFACTURING-
BASED
VALUE-BASED
Information flow
Product flow
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19. EIGHT DIMENSIONS
OF PRODUCT QUALITY
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 Garvin (1987) provides eight components or dimensions of
quality
1 Performance Will the product do the intended job?
2 Reliability How often does the product fail?
3 Durability How long does the product last?
4 Serviceability How easy is it to repair the product?
5 Aesthetics What does the product look like?
6 Features What does the product do?
7 Perceived Quality What is the reputation of the company or
its product?
8 Conformance to
Standards
Is the product made exactly as the
designer intended?

20. SERVICE QUALITY DIMENSIONS
Parasuraman, Zeithamel, & Berry: Three marketing professors from Texas A
& M University, published a widely recognized set of service quality
dimensions.
 Tangibles
 Service Reliability
 Responsiveness
 Assurance
 Empathy
 Availability
 Professionalism
 Timeliness
 Completeness
 Pleasantness
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TIME

21. WHAT IS QUALITY?
Differing Functional Perspectives on Quality
Functional Perspectives include:
 Supply Chain
 Engineering
 Operations
 Strategic Management
 Marketing
 Financial
 Human resource
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22. ORGANIZATION’S
OUTPUT Vs OUTCOME
COMPANY
Quality of Sales
Quantum
of Sales
OUTCOME
OUTPUT

23. EXAMPLE
POST OFFICE  Number of Letters
 Number of Post Offices
 Number of Transactions
 Delivery Rate
 Damage Rate
 Transactions/day/person
UNIVERSITY  Number of Students
 Number of Teachers
 Number of Programs
 Number of Branches
 Graduate Competency Rate
 Job Placement Rate
 Difference in Market Salary
 % of Satisfied Graduates
 % of Satisfied Employers
PRODUCTION
DEPT.
 Number of items Produced
 Types of Product Produced
 % Defectives / Rejected
 Cost of Production/item
 Number of items/unit time
TESTING
DEPT.
 Number of tests
 Types of Tests
 Measurement Error %
 Delays of tests
 Cost of unit test
HRD  Number of persons hired
 Number of Trainings
 Core Competence
 Duration of vacant posts
 % of Poor Hiring
OUTPUT OUTCOME
Quality
Objectives

24. QUESTIONS
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