1. Total Quality Management

2. Introduction
• In today’s world, insufficient quality or indifference in
quality leads to disputes, which imposes serious drain
on the financial resources of a company and limits
profit potential.
• To be competitive in today’s market, it is essential for
construction companies to provide more consistent
quality and value to their owners/customers.
• It is high time to develop better and more direct
relationships with our owners/customers, to initiate
more team work at the job-site, and to produce better
quality work.

3. Definition
“TQM is a management philosophy, a paradigm, a
continuous improvement approach to doing business
through a new management model”
• 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.

4. • 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.

5. 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 .

6. Universal TQM Beliefs
• Owner/customer satisfaction is the measure of
quality.
• Quality improvement must be continuous.
• Analysis of the processes is the key to quality
improvement.

7. •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.

8. Origin of TQM
• Total quality management has evolved from the
quality assurance methods that were first developed
around the time of the First World War. Quality
inspectors were introduced on the production line to
ensure that the level of failures due to quality was
minimized.
• After the First World War, quality inspection became
more commonplace in manufacturing environments
and this led to the introduction of Statistical Quality
Control (SQC).

9. • After World War Two, the industrial manufacturers in
Japan produced poor quality items. In a response to
this, the Japanese Union of Scientists and Engineers
invited Dr. Deming to train engineers in quality
processes.
• In the next decade more non-Japanese companies
were introducing quality management procedures that
based on the results seen in Japan. The new wave of
quality control became known as Total Quality
Management.

10. Deming’s fourteen points for TQM
1. Create constancy of purpose.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on the basis of price tag
alone.
5. Improve constantly and forever every process.
6. Institute modern training (for everybody!).

11. 7. Institute modern methods of supervision.
8. Drive out fear.
9. Break down barriers between departments.
10. Eliminate slogans, exhortations, and targets for
the work force asking for zero defects and new
levels of productivity.
a. Eliminate work standards (quotas) on the
factory floor.
b. Eliminate management by objective.

12. 11. Remove barriers that rob the hourly worker of his
right to pride of workmanship.
12. Remove barriers that rob people in management and
in engineering of their right to pride of
workmanship.
13. Institute a vigorous program of education and self-
improvement.
14. Massive training.

13. Seven deadly diseases
• Lack of constancy of purpose.
• Emphasis on short-term profits: short-term thinking.
• Management by fear.
• Mobility of management: job hopping.

14. • Use of visible figures only for management, with
little or no consideration of figures that are unknown
or unknowable.
• Excessive medical costs.
• Excessive costs of liability, fueled by lawyers that
work on contingency fees.

15. IMPLEMENTING THE TQM
PHILOSOPHY
• To be successful in implementing TQM, an organization
must concentrate on the eight key elements:
• Ethics
• Integrity
• Trust
• Training
• Teamwork
• Leadership
• Recognition
• Communication

16. Characteristics of Successful TQM
Companies
The characteristics that are common to companies
that have successfully implemented TQM in their
daily operations are as follows:
• Strive for owner/customer satisfaction and
employee satisfaction
• Strive for accident-free jobsites
• Recognize the need for measurement and fact-
based decision making
• Arrange for employees to become involved in
helping the company improve
• Train extensively

17. • Work hard at improving communication inside
and outside the company
• Use teams of employees to improve processes
• Place a strong emphasis on the right kind of
leadership.
• Involve subcontractors and suppliers in
continuous improvement.
• Strive for continuous improvement.
Some of the companies who have successfully
implemented TQM include Ford Motor
Company, Phillips Semiconductor, SGL
Carbon, Motorola and Toyota Motor Company.

18. HOW TO BEGIN CONTINUOUS
IMPROVEMENT
• Continuous improvement must deal not only
with improving results, but more importantly
with improving capabilities to produce better
results in the future. The five major areas of
focus for capability improvement are demand
generation, supply
generation, technology, operations and people
capability.

19. • There are three major mechanisms of
prevention:
• Preventing mistakes (defects) from occurring
(Mistake – proofing or Poka-Yoke).
• Where mistakes can’t be absolutely
prevented, detecting them early to prevent them
being passed down the value added chain
(Inspection at source or by the next operation).
• Where mistakes recur, stopping production until
the process can be corrected, to prevent the
production of more defects.

20. Pitfalls to be avoided in TQM
• The Failed Attempt of IBM to implement 6-
sigma Policy. Six Sigma is a business
management strategy originally developed by
Motorola, USA in 1981.IBM was one of the
first companies to implement Six-Sigma.
IBM’s estimate was that by implementing six-
sigma, they would add $2.4 billion directly to
the bottom line.
• Why did IBM fail to implement TQM?

21. Total Quality Management

22. CONCLUSION
Total quality management (TQM) has become a part of
the corporate management parlance on a global scale.
Compelling reasons to adopt TQM are: pressure
set in due to decreased profits, inability to penetrate
into new markets, intensifying competition, and above
all quality conscious customers demanding better and
improved products and services from the companies.