# a B M-1 TQM-An Introduction

TQM

an Introduction

B.B.Mishra

TQM

What is Quality

FEIGENBAUM (1983) Defined Quality as Follows

Quality is total composite product (goods and services)

characteristics, through which the product in use will meet the

needs and expectations of the customers.

Concept of quality must start with identification of customer

quality requirements and must end only when the finished

product is placed into the hands of the customer who remains

satisfied through various stages of relationship with the seller

American Society of Quality Control (ASQC) and

American National Standard Institute (ANSI) defined

Quality is totality of features and characteristics of product

(goods and services) that bears on its ability to satisfy given

needs”

Approaches to define Quality

• Transcendent Approach • Quality is absolute and universally recognisable.

• It is common notion used by laymen

• There is no subjective judgement and is estimated by looking at the product

• Product Based Approach • Attributes of a particular product in a specific category

• These attributes are accepted as bench of quality by the industry

• Others in the same industry try to produce close to this quality

• User Based Approach • Defined as “Fitness for use”

• Viewed from user’s perspective and is dependent on how well does the product

meet needs of the consumer.

• Also known as Customer Oriented Approach

• Production Based Approach • An outcome of engineering or operational excellence and is measured in terms of

quality of conformance

• The producer has specifications and produces the product as per the specifications

• Value Based Approach • Quality is viewed in context of price • Quality is satisfactory, if it provides desired performance at an acceptable price • Customer looks at the total value proposition and not the price alone

ice

BenefitsValue

Pr

Attributes of Quality

Performance Product’s primary operating characteristics

Features Augmented product – The “bells & whistles” of the product

Reliability Ability of the product to function at the specified level of

performance Conformance

Degree to which characteristics of the product meet pre-established standards

Durability Length of time a product can be used before it deteriorates or

becomes non functional Serviceability

Speed, competence & courtesy of providing ASS Aesthetics

Look, feel sound, taste, smell Perceived Quality

Resulting from advertisement, image, brand name, earlier use, hearsay

Evolution of Quality Management

Mass Inspection

Quality Control (Acceptance Sampling)

Quality Assurance

Total Quality Control

Company wide Quality Control

Mass Inspection Inspecting Salvaging Sorting Grading Rectifying Rejecting

Quality Control Quality manuals Product testing using SQC Basic quality planning

Quality Assurance Emphasis on prevention Proactive approach using SPC Advance quality planning

Total Quality Control All aspects of quality of inputs Testing equipments Control on processes


Company wide Quality Control Measured in all functions connected with production such as R&D Design Engineering Purchasing, Operations etc

Total Quality Management Measured in all aspects of business, Top management commitment Continuous improvement Involvement & participation of employees


Gurus of TQM

ABOUT What is TQM?

TQM is an integrated organizational approach in

delighting customers (both external and internal) by

meeting their expectations on a continuous basis through

everyone involved with the organizational working on

continuous improvement in all products/processes along

with proper problem solving methodology.

“TO DELIVER HIGHEST VALUE AT LOWEST

COST” is the main objective of TQM

TQMTQM TotalTotal - made up of the whole

QualityQuality - degree of excellence a product or service provides ManagementManagement - act, art or manner of planning, controlling,

directing,….

Therefore, TQM is the art of managing the whole to achieve excellenceTherefore, TQM is the art of managing the whole to achieve excellence.

TotalTotal QualityQuality ManagementManagement meansmeans thatthat thethe organization'sorganization's cultureculture isis

defineddefined byby andand supportssupports thethe constantconstant attainmentattainment ofof customercustomer

satisfactionsatisfaction throughthrough anan integratedintegrated systemsystem ofof tools,tools, techniques,techniques, andand

trainingtraining.. ThisThis involvesinvolves thethe continuouscontinuous improvementimprovement ofof organizationalorganizational

processes,processes, resultingresulting inin highhigh qualityquality productsproducts andand servicesservices..

What does TQM mean?What does TQM mean?

The goal of TQMThe goal of TQM The goal of TQMThe goal of TQM

“Do the right things “Do the right things right right the first time, the first time, every time.”every time.”

Total Quality management is an enhancement to the Total Quality management is an enhancement to the

traditional way of doing business.traditional way of doing business.

Another way to put it Another way to put it

At it’s simplest, TQM is all managers leading and

facilitating all contributors in everyone’s two main

objectives:

(1) total client satisfaction through quality products

and services; and

(2) continuous improvements to processes,processes, systems,systems,

people,people, suppliers,suppliers, partners,partners, products,products, andand servicesservices..

Productivity and TQM

Traditional view: Quality cannot be improved without significant losses in productivity.

TQM view: Improved quality leads to improved productivity.

What is TQM?

Total Quality Management is a

1. methodology and

2. set of techniques

that focuses companies and enterprises in the role of customer satisfaction on their business success.

TQM Principles Customer defines quality Top management must lead effort View quality as a strategic issue Quality is everyone’s responsibility Focus on continuous quality improvement Employees/Management must cooperate to establish quality Use Statistical quality control methods Training and education are fundamental to all the above

Total quality management (TQM) Characteristics of TQM:

Quality chains

Company policy and accountability

Control

Monitoring the process

Teamwork

Consumer views

Zero defects

© PhotoDisc

Benefits and

problems of using

TQM Benefits: Focus on the customer needs and

relationship Achieve quality in all aspects Analyzes all processes to remove

defects Find improvements on a continuous

basis Develop team approach to problem

solving Effective procedures of communication

Problems: High training and development

costs Requiring commitment from the

entire business Bureaucracy and regular audits are

needed Stress is put on process not the

product.

Elements of Quality Systems

Policy, planning, organization, and administration

Product design assurance and specification

development

Control of purchased materials and component parts

Production quality control and assurance

Customer contact

Corrective and preventive action

Employee selection, training, and motivation

Legal requirements - product liability and user safety

Sampling and other statistical techniques

Significance of the term TQM

Total - The responsibility for achieving Quality rests with everyone a business no matter what their function. It recognises the necessity to develop processes across the business, that together lead to the reliable delivery of exact, agreed customer requirements. This will achieve the most competitive cost position and a higher return on investment.

Quality - The prime task of any business is to understand the needs of the customer, then deliver the product or service at the agreed time, place and price, on every occasion. This will retain current customers, assist in acquiring new ones and lead to a subsequent increase in market share.

Management - Top management lead the drive to achieve quality for customers, by communicating the business vision and values to all employees; ensuring the right business processes are in place; introducing and maintaining a continuous improvement culture.

Scope of TQM

TQM is the foundation for activities, which includes: Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time/ Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans This shows that TQM must be practiced in all activities, by all personnel, in

Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.

Produce quality work the first time.

Focus on the customer.

Have a strategic approach to improvement.

Improve continuously.

Encourage mutual respect and teamwork.

TQM mission

Excellence in IT

Performance review

Proper communication

Basic Tenets of TQM 1. The customer makes the ultimate determination of

quality.

2. Top management must provide leadership and support for all quality initiatives.

3. Preventing variability is the key to producing high quality.

4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement.

5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.

Total Quality Management

and Continuous Improvement TQM is the management process used to make continuous

improvements to all functions. TQM represents an ongoing, continuous commitment to

improvement. The foundation of total quality is a management philosophy

that supports meeting customer requirements through continuous improvement.

Market-share focus Individuals Focus on ‘who” and “why” Short-term focus Status quo focus Product focus Innovation Fire fighting

Customer focus Cross-functional teams Focus on “what” and “how” Long-term focus Continuous improvement Process improvement focus Incremental improvements Problem solving

Traditional ApproachTraditional Approach Continuous ImprovementContinuous Improvement Continuous ImprovementContinuous Improvement

Con

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Quality Throughout “A Customer’s impression of quality begins with the initial contact

with the company and continues through the life of the product.” Customers look to the total package - sales, service during the sale,

packaging, deliver, and service after the sale.

Quality extends to how the receptionist answers the phone, how managers treat subordinates, how courteous sales and repair people are, and how the product is serviced after the sale.

“All departments of the company must strive to improve the quality of their operations.”

Manufacturing Dimensions Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality

Service Dimensions Reliability Responsiveness Assurance Empathy Tangibles

Value-based Approach

TQM Six Basic Concepts

Management commitment to TQM principles and methods &

long term Quality plans for the Organisation

Focus on customers – internal & external

Quality at all levels of the work force

Continuous improvement of the production/ business process

Treating suppliers as partners

Establish performance measures for the processes

Quality is ….The Qualifier!Quality is ….The Qualifier!

Doing it right first time and all the time. This boosts

Customer satisfaction immensely and increases efficiency of the

Business operations.

Clearing the bar (i.e. Specification or Standard stipulated)

Excellence that is better than a minimum standard.

Evolution of TQM

CRAFTSMEN & ARTISANS(e.g. Artists, Sculptors, working

with metals & other materials who were very Quality-conscious.

TRADESMEN (e.g. Masons, Carpenters etc.)

ENGINEERING TRADES & PRACTICES (e.g. Foundry,

Smithy, Die-making, Mould- making, Stamping, Forging, Turning,

Milling, Drilling etc. )

TQM Evolution

Quality - Definitions

Quality is excellence that is better than a minimum standard.

It is conformance to standards and ‘fitness of purpose’

Quality is ‘ fitness for use ‘ of the product –Joseph Juran.

Quality has to incorporate the following; conformation to

specification.

fitness for purpose.

satisfy the customer.

delight the customer.

enchant the customer.

Quality and Customer Expectations

Quality is also defined as excellence in the product or service

that fulfills or exceeds the expectations of the customer.

There are 9 dimensions of quality that may be found in

products that produce customer-satisfaction.

Though quality is an abstract perception,it has a quantitative

measure- Q= (P / E ) , where

Q=quality, P= performance(as measured by the Mfgr.),

and E = expectations( of the customer). Quality is not fine-tuning your product at the final stage of

manufacturing,before packaging and shipping .

Quality is in-built into the product at every stage from

conceiving –specification & design stages to prototyping –testing

and manufacturing stages.

TQM philosophy and guiding principles continuously

improve the Organisation processes and result in customer

satisfaction.

The 9 Dimensions of Quality

Performance Features Conformance ----------------------------- Reliability Durability Service ----------------------------- Response- of Dealer/ Mfgr. to

Customer Aesthetics – of product Reputation- of Mfgr./Dealer

Service Features

Performance

Cost

Performance: Primary product characteristics, such as the brightness of the picture. Features: Secondary characteristics, added features, such as remote control. Conformance: meeting specifications or industry standards, workmanship. Reliability: Consistency of performance over time Durability: Useful life, includes repair. Service: Resolution of problems and complaints, ease of repair. Response: Human to human interface, such as the courtesy of the dealer. Aesthetics: Secondary characteristics, such as exterior finish. Reputation: past performance and other intangibles, such as being ranked first.

Benefits of Quality

Higher customer satisfaction

Reliable products/services

Better efficiency of operations

More productivity & profit

Better morale of work force

Less wastage costs

Less Inspection costs

Improved process

More market share

Spread of happiness & prosperity

Better quality of life for all.

Many industries, service organizations and educational Institutions have

implemented quality systems. The benefits are:

Reduction in complaints from customers, both internal and external.

Reduction in costs of the product.

Reduction in production time.

Increased system efficiency.

Increased morale of workmen.

Increased customer satisfaction.

Benefits of Quality Management

Decrease

in

Increase

in

Complaints Costs

Production time

System

efficiency Morale of

workmen

Customer

satisfaction

Effects of Poor Quality

Low customer satisfaction

Low productivity, sales & profit

Low morale of workforce More re-work, material & labor costs

High inspection costs

Delay in shipping

High repair costs

Higher inventory costs

Greater waste of material

Market Changes

Efficiency vs. Effectiveness

Efficiency

Efficiency is all about how the ‘producer has felt about it.

Effectiveness

Effectiveness is all about how the ‘user’ has felt about it.

Drivers of quality If quality management principles are to be followed in industries, one or more

of the following drivers are essential:

Competition in the market

Knowledge explosion

Threat for survival

Demand from stakeholders

Promise of greater profit

Desire to do better

The Oakland Model of TQM

The Oakland’s Model

(1989, 1990) of TQM

defines TQM as a Pyramid

representing five distinct

components as Management Commitment

Customer-Supplier Chain

Quality Systems

SPC Tools and

Team Work

It Reflects Process Ownership

Process Management

Process Improvement

Sohal, Tay, Wirth’s Integrated Model of

TQM Continuous improvement in

Quality has to come from an

integrated approach of controlling

quality via action plans in different

operations of the business cycle.

It stresses that by involving people

at the grass root level, improving

their morale, sense of

belongingness and responsibility,

using statistical techniques to

analyse collected data and adopting

planplan--dodo--checkcheck--actionaction (PDCA)

Cycle, the mission of continuous

quality improvement can be

achieved to deliver satisfying

service to the customer (Internal

& External).

The Building Blocks of TQM

TQM: The Building Blocks (Zaire, 1991)

TQM Implementation Strategy on every aspects of Business

3-Dimensional Quality Model

Strategic Planning Model – by Price &Gaskil (1990)

Research Strategies aligned with Business Needs

1. Product & Service

Dimension

2. People Dimension

3. Process Dimension

The House of TQM Model

Kano (1993)

Customer Satisfaction / Quality Assurance

PDCA Cycle

CLSQ- Crisis Consciousness & Leadership

VLSQ- Vision & Leadership Encourage People

Quality Sweating Theory

Interactive Environment Model of TQM

The Process of continuous Improvement can take place

only if the Disturbances created by the Interactions of

Environments are Identified and the Strategies adopted to

Eliminate them.

Characteristics of TQMCharacteristics of TQM

TQM is Customer Oriented

TQM requires a Long Term Commitment for

Continuous Improvement of all Processes

The Success of TQM demands the Leadership of Top

Management & Continuous Involvement

Responsibility for Establishment and Improvement of

Systems lies with the Management of an Organisation

TQM is a Strategy for Continuously Improving

Performance at all Levels & in all Areas of

Responsibility

Potential Benefits of TQMPotential Benefits of TQM The Advantages of TQM systems compared to conventional

quality systems are numerous TQM helps to focus clearly on the needs of the market TQM facilitates to aspire for a top quality performer in every

sphere of activity It channelises the procedures necessary to achieve quality

performance It helps examine critically & continuously all processes to remove

non-productive activities and waste It gears organisations to fully understand the competition &

develop an effective combating strategy It helps to develop good procedures for communication &

acknowledging good work It helps to review the process needed to develop the strategy of

never ending improvement. Quality improvement efforts can not be restricted to any time period. The need to be continuous to meet the dynamic challenges. TQM emphasises on a continuous & periodic review so as to make the required changes.

Benefits of TQMBenefits of TQM

Tangible GainsTangible Gains Intangible GainsIntangible Gains

Better Product Quality

Productivity Improvement

Reduced Quality Costs

Increased Market

Increased Profitability

Reduced Employee

Grievance

Effective Team Work Enhancement of Job Interest Improvement in Human

Relations & Work Area Morale

Participative Culture Customer Satisfaction Improved Communication Enhanced Problem-Solving

Capacity Improved Corporate Health

& Character of the Company

Better Company Image

Historical Review of Quality Control

Quality in articles and artifacts produced by skilled craftsmen and artisans from the B.C. era e.g. goldsmiths, silversmiths, blacksmiths, potters, etc.

Artists & Artisans Guilds in the Middle ages spent years imparting quality skills and the works-men had pride in making quality products.

Industrial Revolution brought factory manufacturing where articles were mass-produced and each worker made only a part of the product, and did not sense the importance of his contribution to the quality of the product.

Historical Review of Quality Control In 1924, W.A.Shewhart of Bell Telephone Labs developed a statistical

chart for the control of product variables – the beginning of SQC and SPC.

In the same decade, H.F.Dodge and H.G.Romig of Bell Telephone Labs developed statistical acceptance sampling instead of 100% inspection.

In 1946,the American Society for Quality Control was formed.

In 1950, W. Edwards Deming, who learnt SQC from Shewhart, taught SPC & SQC to Japanese engineers and CEO’s

In 1954,Joseph M.Juran taught Japanese managements their responsibility to achieve quality .

In 1960, the first quality control circles were formed. SQC techniques were being applied by Japanese workers.

1970’s US managers were learning from Japan Quality implementation miracles.

In 1980’s TQM principles and methods became popular.(also in auto industry)

In 1990’s ,the ISO 9000 model became the world-wide standard for QMS.

Customer Types

External and Internal customers

External – current, prospective and lost customers

Internal – Every person in a process is a customer of the previous

operation.( applies to design, manufacturing, sales, supplies etc.)

[Each worker should see that the quality meets expectations of the next

person in the supplier-to-customer chain ]

TQM is commitment to customer-focus - internal and external

customers.

Inputs from

external customers

Internal customers

Outputs to

external customers

Customer/Supplier Chain

Internal Customer/Supplier Relationships

Questions asked by people to their internal customers

What do you need from me?

What do you do with my output?

Are there any gaps between what you need and what you

get?

Good team-work and inter-Departmental harmony is

required. Also the leaders role in supervising the internal

customer-supplier chain.

Service Quality Organisation

Customer Care

Communication

Front-line people

Leadership

Four Improvement Strategies

•Repair

•Refinement

•Renovation

•Re-invention

TQM Implementation

Begins with Sr. Managers and CEO’s Timing of the implementation process Formation of Quality council Union leaders must be involved with TQM plans implementation Everyone in the organisation needs to be trained in quality awareness and

problem solving Quality council decides QIP projects.

Qu

ality

Cou

ncil

The quality council includes CEO and Senior managers of the functional areas -research, manufacturing, finance, sales ,marketing etc. and one co-ordinator and a union representative.

Duties- To develop the Quality statements eg. Vision, Mission, Quality policy statements, Core values etc.

To develop strategic long-term plans and annual quality improvement programme.

Make a quality training programme Monitor the costs of poor quality. Determine the performance measures for the organisation Always find projects that improve the processes and produce customer

satisfaction. Establish work-group teams and measure their progress. Establish and review the recognition and reward system for the TQM system

Quality Statements

VisionVision StatementStatement – a short declaration of what the organization hopes to be tomorrow.

It creates the commitment, the motivation and the driver for initiating the mission, objectives, projects, and tasks necessary to realize the vision.

MissionMission StatementStatement – a statement of purpose –who we are? who are our customers? what we do? How we do it?

Objectives This will based on why the department exists and what are its broad

expected outcome. Goals In planning based on the objectives, it is required to seat goals.

Targets Targets make individuals more comfortable with what he has to do within the time

frame.

Action Plans Action plans help in systematic study and presentation of the process to achieve the

targets.

Quality Policy – is a guide for everyone in the organization ,how they should

provide products and services to the customers.

Meaning of Vision, Mission, etc

What will the organization be in 10 years?

How to reach?

Why the department exists and

what are its broad expected outcomes?

Specific, measurable, attainable, realistic and time-bound

breakup of expected outcome of the department

Breakup of the above to individual specific, short-term outcome

What to do, how to do and sequencing of actions of every individual

VisionVision

MissionMission

ObjectsObjects

GoalsGoals

TargetsTargets

Action planAction plan

Evolution of TQM Philosophy Evolution of TQM Philosophy –– The First EraThe First Era

According to Feigenbaum (1990), in the increasingly

Competitive World the quality is no longer an optional

extra, it is Essentially a Business Strategy.

Garvin (1989) outlines the shift from Inspection to

Strategic Quality Management & the causes for it.

According to Zaire (1991), the evolution of quality has

moved from two extremes: From Control Driven to Culturally Driven Quality

From Controlling in to Managing in Quality

The first change signifies the movement of focus from

controlling production & Product / Service standards at

the end of the Business Cycle to the considerations of

quality as the Driving Force of the whole business cycle

spreading throughout the various Stages & Processes of

the business cycle. ItIt StartsStarts andand EndsEnds atat thethe EndEnd CustomerCustomer.

Evolution of TQM Philosophy Evolution of TQM Philosophy –– The Second EraThe Second Era

The emphasis has gradually Shifted from Mechanisms &

Methods of methods of measuring & controlling quality of

products & processes at the Operational Level, to the

total management of quality throughout the business cycle

with flexibility to react to changes & commitment to

improve quality continuously to meet the customer

demands.

Hansen (1990) identifies two Notable Milestones in the

development of quality movement as:

The Transition from one of Manufacture to Mass Production or

the Differential Piece-Rate System (TaylorismTaylorism), and

The Transition to the Communication oriented industrial

society (electronicelectronic datadata processingprocessing).

Evolution of TQM Philosophy Evolution of TQM Philosophy –– The Latest EraThe Latest Era

The Evolution of TQM is the outcome of FourFour majormajor areas of

development:

1. The first instance of quality according to Taylor’s principle is to

increase productivity, Inspection should must be separated

from the production process. The emphasis is always was on

Sorting,Sorting, Grading,Grading, IdentifyingIdentifying sources of non-Conformance &

Corrective actions.

2. The next stage was StatisticalStatistical QualityQuality ControlControl, where

performance of process was evaluated by using quality manuals

& Statistical Techniques. It was used to Monitor,Monitor, EvaluateEvaluate &&

AnalyseAnalyse a manufacturing process.

3. The Third Stage is a New Radical Approach towards Quality

was developed. In this QualityQuality AssuranceAssurance PhasePhase, the stress was

on Prevention rather than Rejection & Compliance with the

Customer requirements.


This development in the Quality Thought however had the

following short comings

Lack of Focus on Education & Training of Top Management about Quality

Total Emphasis on Quality Circles to solve all the quality problems of a

Company, Neglecting in the process, the Management’s commitments to

Quality

Weak Cross-Functional Communication

Lack of Systematic Approach to Quality Cost Analysis

Resistance to Introduction of Quality Improvement Programs

The Theory of TQM has been evolved to overcome these problems

The concept of Total Quality Control (TQCTQC) proposed by

FeigenbaumFeigenbaum ((19541954)) defines TQC as an effective system for

integrating the QualityQuality Development,Development, QualityQuality MaintenanceMaintenance &&

QualityQuality ImprovementImprovement for full Customer Satisfaction.


The evolution of TQM as a Problem-Solving &

Continuous Improvement programme from the early

Controlling Function took place because of varied

reasons.

SinkSink (19911991) identifies the PrimaryPrimary ForcingForcing FunctionsFunctions

behind the need of TQM as:

Global Economy

Complex & Dynamic Technology

Customer Orientation & Expectations

Complex & Dynamic Task Environments

Challenge to the same or more with fewer resources and

A shrinking feasible solution space for many critical problems,

issues & opportunities.

The TQM EraThe TQM Era

The evolution of TQM, thus, has primarily been guided by

the realisationrealisation ofof CustomerCustomer SatisfactionSatisfaction PerspectivePerspective for

the Survival,Survival, GrowthGrowth && EnhancementEnhancement of the market.

The need to BringBring AboutAbout AA RadicalRadical ChangeChange in the

ThoughtThought ProcessProcess && WorkingWorking ApproachApproach of management to

meet the new challengeschallenges posedposed byby increasedincreased competitioncompetition

& demanding customers required a totallytotally innovativeinnovative,

practicalpractical & longlong--termterm approachapproach which on the path of

growthgrowth && successsuccess, leads to the global adaptionadaption, further

synthesis & refining, which in its present state is acceptedaccepted

asas aa keykey for thethe futurefuture by all Organisation’s world-wide.

Documents

# a B M-1 TQM-An Introduction