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Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Total Quality Management - TQM
The quality journey continues……..
Author: Dr Rhys Rowland-Jones
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Session Plan
• Introduction to concepts of TQM• Standards and TQM• TQM Reasons for failure• Measurement of Quality
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Total Quality Management
• 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.
• 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.
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Total Quality ManagementDoing things right…..
….FIRST time.
Internetix (2005)
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
British Standards on TQMBS 7850-1:1992• Total quality management.
Guide to management principles.
BS 7850-2:1994,
ISO 9004-4:1993• Total quality management. Guidelines for quality
improvement.
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Elements of TQM• Leadership
– Top management vision, planning and support.
• Employee involvement– All employees assume responsibility for the quality of their work.
• Product/Process Excellence– Involves the process for continuous improvement.
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Elements of TQM• Continuous Improvement
– A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality.
• Customer Focus on “Fitness for Use”– Design quality
• Specific characteristics of a product that determine its value in the marketplace.
– Conformance quality• The degree to which a product meets its design specifications.
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
A fundamental concept of TQM from BS 7850 - a ‘Process’
• “A set of inter-related resources and activities which transform inputs into outputs.” (ISO 8402).
• “Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization.” (BS 7850)
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Controls
Process
OutputsInputs
Resources
"The Simple Process"
(Source: BS 7850: 1992, “Total Quality Management”)
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Changing Role of the Process Owner
As customer
Process owner
As customerAs supplier
Process owner
As supplier
Process 1
Process 1
InputOutput
Output to customer
Input from supplier
(Source: BS 7850: 1992, “Total Quality Management”)
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
TQM & organizational Cultural ChangeTraditional Approach
Lack of communication
Control of staff
Inspection & fire fighting
Internal focus on rule
Stability seeking
Adversarial relations
Allocating blame
TQM
Open communications
Empowerment
Prevention
External focus on customer
Continuous improvement
Co-operative relations
Solving problems at their roots
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
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Perceived quality is poor
Perceived quality is good
Expectations > perceptions
Expectations = perceptions
Expectations < perceptions
Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service
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Source: Slack et al. 2004
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Additional views of Quality in Services
• Technical Quality versus Functional Quality– Technical quality — the core element of the good or service.
– Functional quality — customer perception of how the good functions or the service is delivered.
• Expectations and Perceptions– Customers’ prior expectations (generalized and specific service
experiences) and their perception of service performance affect their satisfaction with a service.
• Satisfaction = (Perception of Performance) – (Expectation)
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Customer’s expectations concerning a
product or service
Customer’s perceptions
concerning the product or service
PreviousExperience
Word of mouth communications
Image of product or service
Customer’s own specification of
quality
Management’s concept of the
product or service
organization’s specification of
quality
The actual product or serviceGap 1
Gap 2
Gap 3
Gap 4
A “Gap” model of Quality
Source: Parasuraman, Zeithman and Berry. 1985
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Continuous Improvement
• Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.
• Kaizen: Japanese word for continuous improvement.
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Implementing TQM• Successful Implementation of TQM
–Requires total integration of TQM into day-to-day operations.
• Causes of TQM Implementation Failures–Lack of focus on strategic planning and core competencies.–Obsolete, outdated organizational cultures.
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Obstacles to Implementing TQM
• Lack of a company-wide definition of quality.• Lack of a formalized strategic plan for change.• Lack of a customer focus.• Poor inter-organizational communication.• Lack of real employee empowerment.• Lack of employee trust in senior management.• View of the quality program as a quick fix.• Drive for short-term financial results.• Politics and turf issues.
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Some criticisms of TQM
1. Blind pursuit of TQM programs
2. Programs may not be linked to strategies
3. Quality-related decisions may not be tied to market performance
4. Failure to carefully plan a program
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
PDCA Cycle repeated to create continuous improvement
Time
Per
form
ance
“Continuous”improvement
Plan
Do
Check
Act
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Recognizing and rewarding Quality• Promotion of high quality goods and services
–Malcolm Baldrige National Quality Award (MBNQA) (United States)
–Deming Prize (Japan)
–European Quality Award (European Union)
– ISO9000 certification
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
The integrated framework of the Baldrige Award criteria
Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Product
Continual improvement of the quality management systemContinual improvement of the quality management system
Customers(and otherinterested parties)
Requirements
Managementresponsibility
Resourcemanagement
Measurement, analysis and improvement
Productrealisation
Output
Satisfaction
Input
Source: BS EN ISO 9001:2000
Key: Value adding activity information flow
Customers(and otherinterested parties)
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Overview of the EFQM Excellence Model
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Quality Award common elements
• All take holistic approach• Customers/people• Measurable characteristics• Visible• Basis taken from TQM
Total Quality Management - TQM
Standards in Actionwww.bsieducation.org/standardsinaction
Summary
• TQM – a way of working• Involves everyone• High prominence on ‘customer’• Awards based upon TQM
