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1. TOTAL QUALITY
MANAGEMENT
Instructor:
Umer Mukhtar
Mphil (TQM)
umer.mukhtar@gift.edu.pk
Room: F8 Extension: 165

2. DEFINING QUALITY
 CONFORMANCE TO
SPECIFICATIONS
 FITNESS FOR USE
 VALUE FOR PRICE PAID
 SUPPORT SERVICES
 PSYCOLOGICAL
 (EXPECTATIONS – ACTUAL
PERCEPTION)
 Quality = Performance/Expectations

3. Quality perspectives
Everyone defines Quality based on their
own perspective of it. Typical responses
about the definition of quality would
include:
1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service
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4. Quality perspectives
Judgmental perspective
 “Goodness of a product.”
 Shewhart’s transcendental definition of quality –
“absolute and universally recognizable, a mark of
uncompromising standards and high
achievement.”
 Examples of products attributing to this image:
Rolex watches, Lexus cars.
Product-based perspective
 “function of a specific, measurable variable and
that differences in quality reflect differences in
quantity of some product attributes.”
 Example: Quality and price perceived
relationship.
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5. Quality perspectives
User-based perspective
 “fitness for intended use.”
 Individuals have different needs and wants, and
hence different quality standards.
 Example – Nissan offering ‘dud’ models in US
markets under the brand name Datson which the
US customer didn’t prefer.
Value-based perspective
 “quality product is the one that is as useful as
competing products and is sold at a lesser price.”
 US auto market – Incentives offered by the Big
Three are perceived to be compensation for lower
quality.
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6. Quality perspectives
Manufacturing-based perspective
 “the desirable outcome of a engineering
and manufacturing practice, or
conformance to specification.”
 Engineering specifications are the key!
 Example: Coca-cola – “quality is about
manufacturing a product that people can
depend on every time they reach for it.”
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7. Why QUALITY is Important
 COST OF GOOD QUALITY
 COST OF POOR QUALITY
 PREVENTION & CURE
 PROACTIVE & REACTIVE
 COST OF GOOD QUALITY - PREVENTION COST – COSTS
INCURRED IN THE PREVENTING POOR QUALITY FROM
OCCURING.
 COST OF POOR QUALITY – QUALITY FAILURE COST –
APPRAISAL COST - COSTS INCURRED IN THE PROCESS OF
UNCOVERING DEFECTS
- INTERNAL FAILURE COST – EXTERNAL FAILURE COST

8. COST OF QUALITY
PREVENTION COSTS – COSTS OF PREPARING AND
IMPLIMENTING THE QUALITY PLAN
APPRAISAL COST – COSTS OF TESTING,
EVALUATING AND INSPECTION QUALITY
INTERNAL FAILURE COST – COST OF SCRAP,
REWORK, AND MATERIAL LOSSES
EXTERNAL FAILURE COST – COSTS OF FAILURE
AT CUSTOMER SITE INCLUDING RETURNS,
REPAIRS

9. Cost of Defects

10. What is TQM?
 A comprehensive, organization-wide
effort to improve the quality of products
and services, applicable to all
PROCESSESS
 MANAGEMENT of QUALITY in
TOTAL processes, functions, products,
services, departments of any Organization.

11. TOTAL QUALITY
MANAGEMENT
 TOTAL – MADE UP OF A WHOLE
 QUALITY – DEGREE OF
EXCELLENCE A PRODUT OR
SERVICE PROVIDES
 MANAGEMENT - ACT, HANDLING,
CONTROLLING.

12. Obstacles in TQM
Implementation
 Lack of Management Commitment
 Inability to change Org. Culture
 Improper Planning
 Lack of continuous Training & Education
 Incomplete Org. Structure & Isolated
Individuals and Dept.
 Lack of Measurement, Data, and access
 Less attention to Internal & External
Customers
 Inadequate Use of empowerment and
Teamwork
 Failure to Continual Improve

13. TQM REQUIRE SIX BASIC
CONCEPTS
 A COMMITTED & INVOLVED
MANAGEMENT
 FOCUS ON INTERNAL & EXTERNAL
CUSTOMERS
 EFFECTIVE INVOLVEMENT AND
UTILIZATION OF RESOURCES
 CONTINIOUS IMPROVEMENT
 TREATING SUPPLIERS AS
PARTNERS
 ESTABLISH PERFORMANCE
MEASURES

14. Evolution of TQM philosophies
 The Deming Philosophy
Definition of quality, “A product or a
service possesses quality if it helps
somebody and enjoys a good and
sustainable market.”
Improve quality Decrease cost because
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of less rework, fewer
mistakes.
Productivity improves
Capture the market
with better quality
and reduced cost.
Stay in
business
Long-term
competitive
strength

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17. The Deming philosophy
 William Edwards Deming (October
14, 1900–December 20, 1993) was an
American statistician, college
professor, author, lecturer, and
consultant. Deming is widely credited
with improving production in the
United States during World War II,
although he is perhaps best known for
his work in Japan.
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18. THE DEMING PHILOSOPHY
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14 points for management:
1. Create and publish to all employees a statement of the
aims and purposes of the company. The management
must demonstrate their commitment to this statement.
2. Learn the new philosophy.
3. Understand the purpose of inspection – to reduce the
cost and improve the processes.
4. End the practice of awarding business on the basis of
price tag alone.
5. Improve constantly and forever the system of
production and service.

19. The Deming philosophy
6. Institute training
7. Teach and institute leadership.
8. Drive out fear. Create an environment of
innovation.
9. Optimize the team efforts towards the aims and
purposes of the company.
10. Eliminate exhortations for the workforce.
11. Eliminate numerical quotas for production.
12. Remove the barriers that rob pride of
workmanship.
13. Encourage learning and self-improvement.
14. Take action to accomplish the transformation.
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20. The Juran philosophy
 Joseph Moses Juran (December 24,
1904 – February 28, 2008) was a 20th
century management consultant who
is principally remembered as an
evangelist for quality and quality
management, writing several
influential books on these subjects.
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21. The Juran philosophy
 Pursue quality on two levels:
1. The mission of the firm as a whole is to
achieve high product quality.
2. The mission of each individual department
is to achieve high production quality.
 Quality should be talked about in a
language senior management understands:
money (cost of poor quality).
 At operational level, focus should be on
conformance to specifications through
elimination of defects- use of statistical
methods.
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22. The Juran philosophy
Quality Trilogy –
1. Quality planning: Process of preparing to meet
quality goals. Involves understanding customer
needs and developing product features.
2. Quality control: Process of meeting quality
goals during operations. Control parameters.
Measuring the deviation and taking action.
3. Quality improvement: Process for breaking
through to unprecedented levels of performance.
Identify areas of improvement and get the right
people to bring about the change.
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23. The Crosby philosophy
 Philip Bayard "Phil" Crosby, (June 18,
1926–August 18, 2001) was a
businessman and author who
contributed to management theory and
quality management practices.
 Crosby initiated the Zero Defects
program at the Martin Company
Orlando, Florida plant. As the quality
control manager of the Pershing missile
program, Crosby was credited with a 25
percent reduction in the overall rejection
rate and a 30 percent reduction in scrap
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costs.

24. Walter A. Shewhart
Walter A. Shewhart was a statistician at Bell Labs
during the1920s and 1930s. Shewhart studied
randomness and recognized that variability existed in
all manufacturing processes.
He developed quality control charts that are used to
identify whether the variability in the process is
random or due to an assignable cause, such as poor
workers or miscalibrated machinery.
He stressed that eliminating variability improves
quality. His work created the foundation for today’s
statistical process control, and he is often referred to
as the “grandfather of quality control.”

25. Quality Gurus’ Contributions

26. Customer Focus
 The first, and overriding, feature of
TQM is the company’s focus on its
customers.
 Quality is defined as meeting or
exceeding customer expectations.
 The goal is to first identify and then
meet customer needs.
 TQM recognizes that a perfectly
produced product has little value if it is
not what the customer wants.
Therefore, we can say that quality is
customer driven.

27. Continuous Improvement
 Another concept of the TQM philosophy
is the focus on continuous
improvement.
 Traditional systems operated on the
assumption that once a company
achieved a certain level of quality, it was
successful and needed no further
improvements.
 We tend to think of improvement in terms
of plateaus that are to be achieved, such
as passing a certification test or reducing
the number of defects to a certain level.

28. Continuous Improvement
 Traditionally, change for American managers involves
large magnitudes, such as major organizational
restructuring.
 The Japanese, on the other hand, believe that the best
and most lasting changes come from gradual
improvements. To use an analogy, they believe that it is
better to take frequent small doses of medicine than to
take one large dose.
 Continuous improvement, called kaizen by the
Japanese, requires that the company continually strive
to be better through learning and problem solving.
 Because we can never achieve perfection, we must
always evaluate our performance and take measures to
improve it.
 Two approaches that can help companies with

29. Employee Empowerment
 Part of the TQM philosophy is to empower all
employees to seek out quality problems and
correct them.
 Elimination of Fear among employees
 Full involvement in identification and resolving
problem.
 TQM, provides incentives for employees to
identify quality problems. Employees are
rewarded for uncovering quality problems, not
punished.
 Internal and External Customer concept.
 Team Approach -- TQM stresses that quality is
an organizational effort - Quality Circle

30. Quality Tools

31. Quality Tools

32. Product Design
 Quality Function Deployment : A critical aspect of
building quality into a product is to ensure that the product
design meets customer expectations. This typically is not as
easy as it seems. Customers often speak in everyday
language. For example, a product can be described as
“attractive,” “strong,” or “safe.”
 Customer Requirements
 Competitive Evaluation
 Product Characteristics
 The Relationship Matrix: The strength of the relationship
between customer requirements and product characteristics
is shown in the relationship matrix.
 The Trade-off Matrix: You can see how the relationship
matrix is beginning to look like a house.
 Setting Targets: The last step in constructing the house of
quality is to evaluate competitors’ products relative to the
specific product characteristics and to set targets for our own
product.

34. Process Management
 According to TQM a quality product comes from a
quality process. This means that quality should be
built into the process.
 Quality at the source is the belief that it is far
better to uncover the source of quality problems
and correct it than to discard defective items after
production. If the source of the problem is not
corrected, the problem will continue.
 Example: If you are baking cookies you might find
that some of the cookies are burned. Simply
throwing away the burned cookies will not correct
the problem.
 the temperature setting may be too high; the pan
may be curved, placing some
 cookies closer to the heating element; or the oven
may not be distributing heat evenly

35. Managing Supplier Quality
 TQM views this practice as contributing to poor
quality and wasted time and cost. The
philosophy of TQM extends the concept of
quality to suppliers and ensures that they
engage in the same quality practices. If
suppliers meet preset quality standards,
materials do not have to be inspected upon
arrival.

36. Awards & Prizes
 The Malcolm Baldrige National Quality Award was
established in 1987, when Congress passed the Malcolm
Baldrige National Quality Improvement Act.
 The award is named after the former Secretary of Commerce,
Malcolm Baldrige, and is intended to reward and stimulate
quality initiatives.

37. The Deming Prize
 The Deming Prize is a Japanese
award given to companies to
recognize their efforts in quality
improvement. The award is named after
W. Edwards Deming, who visited
 Japan after World War II upon the
request of Japanese industrial leaders
and engineers.
 While there, he gave a series of lectures
on quality. The Japanese considered him
such an important quality guru that they
named the quality award after him.

38. Standards and Certifications
 Increases in international trade during
the 1980s created a need for the
development of universal standards of
quality.
 Universal standards were seen as
necessary in order for companies to be
able to objectively document their
quality practices around the world.
 Then in 1987 the International
Organization for Standardization (ISO)
published its first set of standards for
quality management called ISO 9000.

39. ISO 9000 Standards
 ISO 9000:2000–Quality Management Systems–
Fundamentals and Standards:
 Provides the terminology and definitions used in the
standards. It is the starting point for understanding the
system of standards.
 ISO 9001:2000–Quality Management Systems–
Requirements: This is the standard used for the certification
of a firm’s quality management system. It is used to
demonstrate the conformity of quality management
systems to meet customer requirements.
 ISO 9004:2000–Quality Management Systems–Guidelines
for Performance: Provides guidelines for establishing a
quality management system. It focuses not only on meeting
customer requirements but also on improving performance.

40. ISO 14000 Standards
 The need for standardization of quality created an
impetus for the development of other standards.
In 1996 the International Standards Organization
introduced standards for evaluating a company’s
environmental responsibility. These standards,
termed ISO 14000, focus on three major areas:
 Management systems standards measure
systems development and integration of
environmental responsibility into the overall
business.
 Operations standards include the measurement
of consumption of natural resources and energy.
 Environmental systems standards measure
emissions, effluents, and other waste systems.