TOTAL QUALITY MANAGEMENT 15ME653€¦ · Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It is a proven technique guaranteeing survival

TOTAL QUALITY MANAGEMENT 15ME653

Department of Mechanical SECAB I E T, Vijaypur Page 1

Basic Concepts of TQM

Total Quality Management(TQM)

Total Quality Management (TQM) is an enhancement to the traditional way of doing business.

It is a proven technique guaranteeing survival in world-class competition.The culture and

actions of an organization can be transformed by changing only the actions of management.

Total Quality Management (TQM) is a comprehensive and structured approach to

organizational management that seeks to improve the quality of products and services through

ongoing refinements in response to continuous feedback. Analyzing the three words,

We have:

Total—Make up of the whole

Quality—Degree of excellence a product or service provides

Management--Act, art, or manner of handling, controlling, directing etc.

Therefore, TQM is an art of managing the whole to achieve excellence.TQM is also defined as

both a philosophy and a set of benchmarks that represent the foundation of a continuously

improving organization. It is an application of quantitative methods and human resources to

improve all the processes within an organization and exceed customer needs at present and in

the future. TQM integrates fundamental management techniques, existing improvement efforts

and technical tools under a disciplined approach.

Principles of Total Quality Management

TQM is based on the following principles:

1. Primary responsibility for product quality rests with top management--

Management should create an organizational structure, product design process, production

process and incentive that encourages and rewards good quality. Juran has clearly stated,

“The critical variable in Japanese quality leadership is the extent of active participation by

senior managers.”

2. Quality should be customer focused and evaluated using customer-based standards—

A product is not easy to use and a service is not courteous and prompt unless customers

say they are. This fact requires organizations to work closely with their customers to

determine what the customers want in the products and how they receive value from the

products.

3. The production process and work methods should be designed consciously to achieve

quality conformance—Using the right tools and equipment, mistake-proofing

processes, training workers in the best methods and providing good work environment

help to prevent defects rather than catching them. In addition, tightly synchronized

production systems with quick communication among workers promote quick

identification and solution of quality problems.



4. Every employee is responsible for achieving good product quality—this translates into

self-inspection by workers themselves rather than by separate quality control personnel.

It requires workers to co operate in identifying and solving quality problems.

5. Quality cannot be inspected in a product, so make it right the first time—Making it

right or doing it right the first time should be the goal of every worker. Methods such

as poka-yoke and structured machine setups which increase the chance of doing it right

the first time should be utilized as much as possible.

6. Quality should be monitored to identify problems quickly and correct quality problems

immediately—Statistical methods can play a useful role in monitoring quality and

identifying problems quickly. But self-inspection and assessment of work by employees

and customer assessments of quality are important components of the quality

monitoring mechanism.

7. The organization should strive for continuous improvement—Excellent product quality

is the result of workers striving to improve product quality and productivity on an

ongoing basis using experience and experimentation. However, continuous

improvement does not happen on its own. Organizational structures, work procedures

and policies should be established to promote and accelerate continuous improvement.

A variety of organizational mechanisms have been used to promote continuous

improvement, such as work teams, quality circles and suggestion systems. Each of

these methods utilizes workers who are directly involved in the production process as a

primary source for improvement ideas. Some experts, however, believe that separate

improvement teams should be used to initiate and guide improvement projects.

8. Companies should work with their suppliers and extend TQM programs to them to

ensure quality inputs—For many manufacturing companies, purchased components and

materials account for over 50% of their production costs. Similarly, over 80% of the

costs are the costs of goods intended for resale. If suppliers are providing low-quality

components, materials, or goods, the purchasing company will find it impossible to

achieve a high level of quality in goods and services it produces. In fact, many

companies now require suppliers to have quality management programs certified by

customers or by a recognized certification organization, such as the International

Organization for Standardization (ISO).

The success of Japanese in producing quality products can be attributed to the following:

1. Their willingness to borrow and synthesize ideas from many sources

2. The effort of each organization to customize the quality system to its own character.



Some companies use quality circles while others do not. Some have extensive suggestion

systems while others do not. Some use statistical methods while others do not and some

strive for zero defects while others simply seek continual improvement or more achievable

goals such as one defect per 100,000 units. The success of these companies seems to be

unrelated to which program they follow or which technique they use. Their success

depends on whether they have a TQM program in place with policies and structures fitting

in their own organizational culture and personnel.

Basic Approach

1. A committed and involved management should provide long-term top-to-bottom

organizational support—All employees should participate in a quality program. A

quality council should be established to develop a clear vision, set long-term goals and

direct the program. Quality goals are included in the business plan. An annual quality

improvement program involves input from the entire workforce. Managers participate

in quality improvement teams and also act as coaches to other teams.TQM is a

continual activity and should be entrenched in the culture. It means that it is not just a

one-shot program. TQM should be communicated to all people.

2. An unwavering focuses on customers, both internally and externally—The key to an

effective TQM program is its focus on customers. An excellent place to start is by

satisfying internal customers. One should always listen to the “voice of the customer”

and emphasize on design quality and defect prevention. Do it right the first time and

every time because customer satisfaction is the most important consideration.

3. Effective involvement and utilization of the entire work force—TQM is an

organization-wide challenge that is everyone’s responsibility. All personnel should be

trained in TQM, statistical process control (SPC) and other appropriate equality

improvement skills to effectively participate in project teams. Including internal

customers and, for that matter, internal suppliers on project teams are an excellent

approach. Those affected by the plan should be involved in its development and

implementation. They understand the process better than anyone else. Changing

behavior is the goal. People should come to work not only to do their jobs but also to

think about how to improve their jobs. People should be empowered at the lowest

possible level to perform processes in an optimum manner.

4. Continuous improvement of business and production process—There should be a

continual striving to improve all business and production processes. Quality

improvement projects such as on-time delivery, order entry efficiency, billing error rate,

customer satisfaction, cycle time, scrap reduction and supplier management are good



areas to begin. Technical techniques such as SPC, benchmarking, quality function

development, ISO 9000 and designed experiments are excellent for problem solving.

5. Treating suppliers as partners--On an average, 40%of the sales dollars is the purchase of

product or service, therefore, the supplier quality should be outstanding. A partnering

relationship rather than an adversarial one should be developed. Both parties have as

much to gain or lose based on the success or failure of a product or service. The focus

Should be on quality and life-cycle costs rather than on price. Suppliers should be few

in number so that true partnering can occur.

6. Establish performance measures for the processes—Performance measures such as

uptime, percent non conforming, absenteeism and customer satisfaction should be

determined for each functional area. These measures should be posted for everyone to

see. Quantitative data are necessary to measure the continuous quality improvement

activity. The purpose of TQM is to provide a quality product and /or service to customers which will, in

turn, increase productivity and decrease cost. With a higher quality product and lower price,

competitive position in market place will be enhanced. This series of events will allow an

organization to achieve its objectives of profit and growth with greater ease. In addition, the

work force will have job security which will create a satisfying place to work.

As previously stated, TQM requires a cultural change. Table2.1 compares the previous state

with the TQM state for typical quality elements. This change is substantial and will not be

accomplished in a short period of time. Small organizations will be able to make the

transformation much faster than large organizations.

New and Old Cultures

Quality Element Previous State TQM

Definition Product-orientated Customer-oriented

Priorities Second to service and cost First among equals

of service and cost

Decisions Short-term Long-term

Emphasis Detection Prevention

Errors Operations System

Responsibility Quality control Everyone

Problem Solving Managers Teams

Procurement Price Life-

cyclecosts,

partnership Manager’s Role Plan, assign, control, Delegate, coach facilitate and enforce and mentor

Table2.1—New and old cultures



Frame work of TQM

Stewart Information technology

Deming Quality Management Serve

Juran Statistical Process Control

Crosby Bench Marking

Ishikwa Taguchi quality Engg

Taquchi Total Productive Maintenance

People and Relationships (Approach: Continuous improvement

Leadership Process

Customer Satisfaction Measure: Performance Measure)

Employee Involvement

Supplier partnership

Figure 2.1

Figure 2.1 shows the frame work for a TQM system. It begins with the knowledge provided by

quality gurus--Shewhart, Deming, Juran, Figenbaum, Ishikawa, Crosby and Taguchi. As the

figure shows, they contributed to the development of principles and practices and /or the tools

and techniques. Some of these tools and techniques are used in the product and / or service

realization activity. Feedback from internal /external customers or interested parties provides

information to continually improve an organization’s system, product and / or service.

Awareness

An organization will not begin the transformation to TQM until it is aware of the fact that the

quality of product or service should be improved. Awareness comes when an organization

loses market share or realizes that quality and productivity go hand-in-hand. It also occurs if

TQM is mandated by a customer or if management realizes that TQM is a better way to run a

business and compete in domestic and world markets.

Automation and other productivity enhancements might not help a corporation if it is unable to

market its products or services because of their poor quality.

Tools and

Techniques

Gurus

Customer Principle and practice Product or Service

Realization



The Japanese learned this fact from practical experience .Prior to World War II, they could

sell their products only at ridiculously low prices and even then it was difficult to secure

repeated sales. Until recently, corporations have not recognized the importance of quality.

However, a new attitude has emerged quality first among the equals of cost and service.

to sum it up, a customer wants value.

Quality and productivity are not mutually exclusive. An improvement in quality can lead

directly to increased productivity and other benefits. Table2.2 illustrates this concept. In the

table, the improved quality results in a 5.6% improvement in productivity, capacity and profit.

Many quality improvement projects are achieved with the same workforce, same over head

and no investment in new equipment.

Recent evidence shows that more and more corporations are recognizing the importance and

necessity of quality improvement in order to survive domestic and worldwide competition.

Quality improvement is not limited to the conformance of a product or service to

specifications. It also involves an inherent quality in the design of a system. The prevention

of product, service and process problems is a more desirable objective than taking corrective

action after the product is manufactured or a service rendered.

TQM does not occur overnight. There are no quick remedies. It takes a long time to build an

appropriate emphasis and technique into culture. Over emphasis on short-term results and

profits

should be set aside and long-term planning and constancy should be allowed to prevail.

Obstacles

Many organizations, especially small ones with a niche, feel comfortable with their current

state. They are satisfied with the amount of work being performed, the profits realized and the

perception that the customers are satisfied. Organizations with this culture see little need for

TQM until they begin to lose market share. Once an organization embarks on TQM, it faces

some obstacles to its successful implementation. Some of the obstacles are as follows:

1. Lack of Management Commitment

In order to make an organizational effort successful, there should be substantial

management commitment of management time and organizational resources. The purpose

should be clearly and continuously communicated to all personnel .Management should

consistently apply the principles of TQM. Robert Galvin of Motorola said that only the CEO can ensure, even in times of great pressure, that

quality and customer satisfaction are preserved. In a survey, out of 188 quality professionals, 66%

reported that management’s compensation is not linked to quality goals such as failure costs,

customer complaints and cycle time reduction.

2. In ability to Change Organizational Culture

Changing an organization’s culture is difficult and requires as much as five years.

Individuals resist change as they become accustomed to doing a particular process and it



becomes the preferred way. Management should understand and utilize the basic concept s

of change which are as follows:

i) People change when they want to and to meet their own needs.

ii) Never expect anyone to engage in behavior that serves an organization’s values

unless adequate reason (way) has been given.

iii) For change to be accepted, people should be moved from a state of fear to trust.

It is difficult for individuals to change their way of doing things. It is much more difficult

for an organization to make cultural changes. Management by exhortation and inspiration

fails. Speeches, slogans and copings to motivate people remain effective for a short period

of time. Impediments to a cultural change are in effective communication and emphasis on

short-term results. Organizations that’ spend more time in planning for the cultural aspects

of implementing a TQM program will improve their chances of success.

3. Improper Planning

All constituents of an organization should be involved in the development to fan

implementation plan and any modifications that occur as the plan evolves. Of particular

importance is the two-way communication of ideas among all personnel during the

development of plan and its implementation. The goal should be to achieve customer

satisfaction not to achieve any financial or sales goals. Peterson Products, a metal stamping

firm near Chicago, improved on-time delivery which resulted in a 25% increase in sales.

Focus on quality and the other goals are considered thereafter.

4. Lack of Continuous Training and Education

Training and education is an on going process for everyone in an organization. Needs

should be determined and a plan should be developed to achieve those needs. Training and

education are the most effective when senior management conducts the training on the

Principles of TQM. Informal training occurs by communicating the TQM efforts to all

personnel on a continual basis.

In a study by Tamimi and Sebastianelli, lack of training, group discussion and

communication techniques, quality improvement skills, problem identification and the

problem-solving methods was the second most important obstacle.

5. Incompatible Organizational Structure and Isolated Individuals and Departments

Differences between departments and individuals can create implementation problems. The

use of multi-functional terms helps to break down long-standing barriers.

The process of restructuring in order to make an organization more responsive to customer

needs may be desired. Individuals who do not embrace the new philosophy can be required

to leave the organization. Adherence to the six basic concepts will minimize the problem

over time.

At Spartan Light Metal Products, Inc. in Sparta, IL, product support teams composed of

three members, each from design, quality and production, are assigned to each customer

segment.



6. In effective Measurement Techniques and Lack of Access to Data and Results

The key characteristics of an organization should be measured in order to make effective

decisions. In order to improve aprocess, one needs to measure an effect of improvement

ideas. Access to data and quick retrieval is necessary to make a process effective.

People Bank of Bridgeport, CT found that extra inspection, training and encouragement of

management did not help a high error rate. Finally, the bank investigated the root causes of

the problem and corrected them which virtually eliminated the problem.

7. Paying In adequate Attention to Internal and External Customers

Organizations need to understand the changing needs and expectations of their customers.

Effective feedback mechanisms that provide data for decision making are necessary for this

understanding. A way to overcome this obstacle is to give the right people a direct access to

the customers. Ingersol Rand of Princeton,NJ had designed it steam of marketing,

engineering and manufacturing to conduct focus groups of customers throughout the

country. It resulted in its ability to develop a new grinder in one-third the usual cycle time.

When an organization fails to empower individuals and teams, it can not hold them

responsible for producing results.

8. Inadequate Use of Empowerment and Teamwork

Whenever possible, teams need to have the proper training and, at least in the beginning, a

facilitator and the team’s recommendations should be followed. Individuals should be

empowered to make decisions affecting the efficiency of their process or the satisfaction of

Their customers. Solar Turbines, Inc.flattened its organization by restructuring into work

teams and delegating authority to the point of customer contact or to the work performed.

9. Failure to Improve Continually

It is tempting to sit back and rest on your laurels. However, a lack of continuous

improvement of the process, product and /or service will even leave the leader of the pack

in the dust. Will Rogers said, “Even if you’re on the right track, you’ll get run over if you

just sit there.”Even though Champion Mortage’s 1998 business volume increased to 59%,

it continues to address culture, staff and services issues.

Questions

1. What is TQM? Explain the principles on which TQM is based.

2. What is the basic approach to achieve TQM?

3. What are the dimensions of quality? Describe the min your own words.

4. Compare and contrast the quality aspects of manufacturing goods and services.

5. What are the obstacles in implementing TQM? Describe them.



Quality Gurus

W Edwards Deming placed great importance and responsibility on

management, at both the individual and company level, believing

management to be responsible for 94% of quality problems.

His fourteen point plan is a complete philosophy of management, that

can be applied to small or large organizations in the public, private or

service sectors:

1. Create constancy of purpose towards improvement of product and service.

2. Adopt the new philosophy. We can no longer live with commonly accepted

levels of delay, mistakes and defective workmanship.

3. Cease dependence on mass inspection. Instead, require statistical evidence

that quality is built in.

4. End the practice of awarding business on the basis of price.

5. Find problems. It is management’s job to work continually on the system.

6. Institute modern methods of training on the job.

7. Institute modern methods of supervision of production workers. The

responsibility of foremen must be changed from numbers to quality.

8. Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers between departments.

10. Eliminate numerical goals, posters and slogans for the workforce asking for

new levels of productivity without providing methods.

11. Eliminate work standards that prescribe numerical quotas.

12. Remove barriers that stand between the hourly worker and their right

to pride of workmanship.

13. Institute a vigorous program of education and retraining.



14. Create a structure in top management that will push on the above

points every day

Toyota Follows Deming’s Principles

.

Dr. W. Edwards Deming’s principles support the global success of

Toyota and other world renowned organization such as Proctor &

Gamble, Ritz Carlton, Harley-Davidson, and many other leading

organizations.

.

His teachings have helped these giants taking a quantum leap in terms

of quality and productivity. Dr. Deming has contributed by explaining

the fundamental philosophies of Total Quality Management in simple

and effective manners

The 14 principles he formulated are universally applicable in all sectors

of business such as health-care, education—in fact, to any enterprise

one can imagine. He is respected in Japan as a national hero. The most coveted

quality award in Japan is known as “Deming Prize.” This award is termed as a

Nobel Prize for business success.

Deming Prize is awarded to successful Japanese companies with great

fanfare every year. Dr. Deming helped Toyota develop the vital

management philosophy and practices that enabled them to become

market leaders around the world.

Dr. Shoichiro Toyoda, Chairman and former President (1982-1999) of

Toyota, said:

Every day I think about what he meant to us. Deming is the core of our

management.



kaizen

Kaizen is a very significant concept within quality management and deserves specific

explanation:

Kaizen (usually pronounced 'kyzan' or 'kyzen' in the western world) is a Japanese word,

commonly translated to mean 'continuous improvement'.

Kaizen is a core principle of quality management generally, and specifically within the methods

of Total Quality Management and 'Lean Manufacturing'.

Originally developed and applied by Japanese industry and manufacturing in the 1950s and 60s,

Kaizen continues to be a successful philosophical and practical aspect of some of the best known

Japanese corporations, and has for many years since been interpreted and adopted by 'western'

organizations all over the world.

Kaizen is a way of thinking, working and behaving, embedded in the philosophy and values of

the organization. Kaizen should be 'lived' rather than imposed or tolerated, at all levels.

The aims of a Kaizen organization are typically defined as:

To be profitable, stable, sustainable and innovative.

To eliminate waste of time, money, materials, resources and effort and increase

productivity.



To make incremental improvements to systems, processes and activities before problems

arise rather than correcting them after the event.

To create a harmonious and dynamic organization where every employee participates and

is valued.

Key concepts of Kaizen:

Every is a key word in Kaizen: improving everything that everyone does in every aspect

of the organization in every department, every minute of every day.

Evolution rather than revolution: continually making small, 1% improvements to 100

things is more effective, less disruptive and more sustainable than improving one thing by

100% when the need becomes unavoidable.

Everyone involved in a process or activity, however apparently insignificant, has

valuable knowledge and participates in a working team or Kaizen group (see also Quality

Circles below).

Everyone is expected to participate, analysing, providing feedback and suggesting

improvements to their area of work.

Every employee is empowered to participate fully in the improvement process: taking

responsibility, checking and co-ordinating their own activities. Management practice

enables and facilitates this.

Every employee is involved in the running of the company, and is trained and informed

about the company. This encourages commitment and interest, leading to fulfilment and

job satisfaction.



Kaizen teams use analytical tools and techniques to review systems and look for ways to

improve (see Quality Tools below).

At its best, Kaizen is a carefully nurtured philosophy that works smoothly and steadily, and

which helps to align 'hard' organizational inputs and aims (especially in process-driven

environments), with 'soft' management issues such as motivation and empowerment.

Like any methodology however, poor interpretation and implementation can limit the usefulness

of Kaizen practices, or worse cause them to be counter-productive.

Kaizen is unsuccessful typically where:

Kaizen methods are added to an existing failing structure, without fixing the basic

structure and philosophy.

Kaizen is poorly integrated with processes and people's thinking.

Training is inadequate.

Executive/leadership doesn't understand or support Kaizen.

Employees and managers regard Kaizen as some form of imposed procedure, lacking

meaningful purpose.

Kaizen works best when it is 'owned' by people, who see the concept as both empowering of

individuals and teams, and a truly practical way to improve quality and performance, and thereby

job satisfaction and reward. As ever, such initatives depend heavily on commitment from above,

critically:



to encourage and support Kaizen, and

to ensure improvements produce not only better productivity and profit for the

organization, but also better recognition and reward and other positive benefits for

employees, whose involvement drives the change and improvement in the first place.

Interestingly, the spirit of Kaizen, which is distinctly Japanese in origin - notably its significant

emphasis upon individual and worker empowerment in organizations - is reflected in many

'western' concepts of management and motivation, for example the Y-Theory principles

described by Douglas McGregor; Herzberg's Motivational Theory, Maslow's Needs

Hierarchy and related thinking; Adams' Equity Theory; and Charles Handy's motivational

theories.

Fascinatingly, we can now see that actually very close connections exist between:

the fundamental principles of Quality Management - which might be regarded as cold

and detached and focused on 'things' not people, and

progressive 'humanist' ideas about motivating and managing people - which might

be regarded as too compassionate and caring to have a significant place in the

optimization of organizational productivity and profit.

The point is that in all effective organizations a very strong mutual dependence exists between:

systems, processes, tools, productivity, profit - the 'hard' inputs and outputs (some say

'left-side brain'), and

https://www.businessballs.com/leadership-skills/mcgregors-xy-theory-of-management-1871

https://www.businessballs.com/leadership-skills/frederick-herzberg-motivation-theory-83

https://www.businessballs.com/self-awareness/maslows-hierarchy-of-needs-2026



https://www.businessballs.com/leadership-skills/adams-equity-theory-on-job-motivation-81

https://www.businessballs.com/leadership-skills/charles-handy-motivation-calculus-86/





people, motivation, teamwork, communication, recognition and reward - the 'soft' inputs

and outputs ('right-side brain')

Kaizen helps to align these factors, and keep them aligned.







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TOTAL QUALITY MANAGEMENT 15ME653€¦ · Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It is a proven technique guaranteeing survival