TOPIC 1

Introduction to Total Quality

Management
In thi s day and age, com pani es m ust syst em s and processes in t he organi zat i on, not
com pet e on t he gl obal m arket or cust om ers si m pl y t he product i on of product s and
who expect not hi ng l ess t han perfe ct i on. A servi ces but al so t he desi gn, devel opm ent ,
m odern m anagem ent concept such as Tot al servi ce, purchasi ng, adm i ni st rat i on and
Qual i t y Managem ent (TQM) hel ps i m prove i ndeed, al l aspect s of t he t ransact i on wi t h the
t he qual i t y of product s and servi ces to cust om er. Each one m ust work i n concert
achi eve m axim um cust om er sat isfact i on. t oward sim i l ar end.

The concept of TQM is m ost Qual i t y can onl y be observed t hrough

appl i cabl e t o com pani es and organi zat i ons t he eyes of the cust om ers. An underst andi ng
t hat are heavi l y depart m ent - focused. In such of the cust om er’s expect at i ons (eff ect i ven ess)
organi zat i ons, t he l eft hand oft en doesn’t is t he fi rst st ep. Then exceedi ng t hose
know what t he ri ght hand i s doi ng, as t he expect at i ons (effi ci ency ) is requi red.
sayi ng goes, and int er- depart m ent st ruggl es C omm uni cat i ons wi ll be t he key. Goi ng
negat i vel y affect how cust om ers’ needs and beyond cust om er expect at i ons guarant ees
want s are m et . m eet i ng al l t he defi ni t i ons of qual i t y

Wi t h TQM, everyon e in t he com pany Di ffer ent peopl e underst and qual it y i n
or organi zat i on i s responsi bl e for qual it y a di ffer ent m anner. Hardl y, anyone can
assuranc e and probl em prevent i on. Thi s descri be qual i t y i n quant i fi abl e t erm s t hat can
m anagem ent concept was ori gi nal l y appli ed be operat i onal i zed. The banker m ay
sol el y t o m anufact uri ng, but it has si nce been di fferent i at e t hei r product s or servi ce wit h
successful l y im pl em ent ed by a num ber of “servi ce ”; for t he heal t h care worker i t is
busi nesses across m any indust ri es. “qual i t y heal t h care”; for t he hot el or
rest aurant em pl oyee it is “cust om er
sat i sfact i on”; and for t he m anufact ure r it is
DEFINING QUALITY si m pl y “qual i t y product ”. A few i ndi vi dual s
can provi de a speci fi c defi ni t i on and
Qual i t y is a l ot m ore t han t he
m easurem ent of qual it y when pressured.
nonexi st ence of defect s whi ch al l ow
There i s an ol d sayi ng i n m anagem ent whi ch
com pani es to m eet cust om er expect at i ons.
says, “If you can’t quanti fy it , you can’t
Qual i t y needs- cont rol l ed process
m anage it ”, and i t i s al so t rue wi t h qual i t y.
i m provem ent , al l owi ng com pani es t o exceed
Every m em ber of the organi zat i on shoul d be
cust om er’s expect at i ons. Qual i t y wi ll l et
cl ear about it s concept , defi ni t i on and
com pani es t o re- est abl i sh pri de and loyal t y i n
m easurem ent as it appl i es to his j ob i f t he
t hei r organi zat i ons. Qual i t y can onl y be
st rat egi c m anagem ent syst em and t he
at t ai ned by t he nonst op im provem ent of al l
com pet i t i ve advant age are t o be based on
qual i t y. Appropri at e qual i t y can be ident i fi ed approach has m any benefi t s, it has li m i t ati ons
or percei ved i n a di ffer ent way in t he sam e as wel l . The yardst i ck for m easurem ent m ay
com pany. be decept i ve where qual it y i s founded on t he
i ndi vi dual t ast e or prefe renc e.

3. USER-BASED
APPROACHES TO QUALITY
DEFINITION  Thi s defi ni t i on is founded on t he i dea
t hat qual it y is an i ndi vi dual i ssue and
In hi s book Managi ng Qual i t y,
product s t hat best pl ease thei r prefe ren ces
Harva rd Professor Davi d Gari n summ ari zed
(perc ei ved qual i t y) are those wit h t he hi ghest
fi ve pri nci pal approach es to defi ni ng qual it y
qual i t y. Thi s is an approach based on reason
nam el y:
but di rect s to t wo probl em s. F i rst , consum er
prefe renc es di ffer ext ensi vel y and i t i s not
easy to com bi ne t hese preferen ces int o
1. TRANSCENDENT product s wit h broad dem and. Thi s l eads t o t he

 Most peopl e woul d agree t hat t he sel ect i on bet ween a ni che st rat egy and a

Mona Li sa or Mi chel angel o’s Davi d are works m arket aggreg at i on approach whi ch st ri ves to

of art whi ch represent qual i t y because peopl e i dent i fy t hose product s at t ri but e t hat support

t ravel from around the worl d t o vi ew t hem . t he needs of t he bi ggest num ber of cust om ers.

B ut can they defi ne it ? Those who em brace Anot her probl em concerns whet her qual i t y

t he t ranscend ent al out l ook woul d say, “I can’t and consum er sati sfact i on are t he sam e.

defi ne i t , but I know i t when I wit ness.” P robabl y not . One m ay confess a Mont ero has

Advert i sers are incl i ned of prom ot i ng m any qual i t y at t ri but es, but cont ent m ent m ay

product s i n t hese t erm s. “where shoppi ng is a be bet t er real i zed wi t h an Advent ure. One has

pl easure” (S uperm ark et ), “we l ove t o fl y and onl y t o rem em ber t he box offi ce success of

i t shows” (Ai rl i nes), “t he great Am eri can recent mot i on pi ct ures t hat endure from poor

beaut y…i t s el egant ” (Aut om obi l e) and “i t qual i t y but are obvi ousl y favored by t he

m eans beaut i ful eyes” (C osm et i cs) are l argest num ber of movi egoers.

exam pl e. Tel evi si on and pri nt m edi a are

fl ooded wi t h such i ndescri babl e cl ai m s, and
t herei n l ays t he probl em t hat qual i t y i s not
easy to defi ne or operat i onal i zed. It t herefor 4. MANUFACTURED-BASED
becom es obscure when usi ng the approach as
a source of com pet i t i ve advant age. B esi des,  The defi ni t i on is focused m ai nl y wi t h

t he funct i ons of desi gn, product i on and engi neeri ng and m anufact uri ng pract i ces and

servi ce m ay di scover it com pl i cat ed to use t he use uni versal defi ni t i on of “conform an ce

defi ni t i on as a st art i ng poi nt for qual i t y requi rem ent s.”

m anagem ent . R equi rem ent s or speci fi cat i ons are

l aunched by desi gn and any di ffer enc e
2. PRODUCT-BASED
i nvol ves a decl i ne i n qual i t y. The concept is
 Qual i t y i s observed as a quant i fi abl e rel evant t o servi ces as wel l as product s.
or m easurabl e chara ct eri st i cs or at t ri but e. F or S uperi ori t y qual it y i s not aut om at i cal l y i n t he
i nst ance, durabi l i t y can be m easured and the eye of t he behol der but rat her in t he st andards
engi neer can draw t o t hat yardst i ck. Qual i t y set by t he organi zat i on. Thus, bot h F ort uner
is conduct ed obj ect i vel y. Al t hough t hi s and Isuzu Max possess qual it y, as do
Advent ure and Innova’s as l ong as t he m ust be si m pl e and al so l ess expensi ve so as
product or servi ce “conform ance t o m eet t he cust om er’s product or servi ce
requi rem ent s” are m et . Thi s approach has a expect at i ons. Qual i t y of desi gn i s i nfl uenced
seri ous weak poi nt , the consum er’s percept i on by m any fact ors, such as product t ype, cost ,
of qual it y i s com pared wi t h conform anc e and profi t poli cy, dem and of t he product ,
t hus is int ernal l y focused. St ress on t he avai l abi l i t y of part s and m at eri al s, and
rel i abi l i t y i n desi gn and m anufact uri ng i s product rel i abi l it y. Thi s process of
i ncl i ned t o at t end t o cost reduct i on as t he devel opi ng a product requi res effect i ve
obj ect i ve. C ost reduct i on i s perc ei ved in a exchange of i deas am ong m arket i ng, sal es,
l i mi t ed way whi ch is t o i nvest i n desi gn and servi ces, m anufact uri ng, research and
m anufact uri ng i m provem ent unt i l t hese devel opm ent depart m ent s. Market resea rch
i ncrem ent al cost s equal t he cost s of non- and servi ce cal l anal ysi s are t he cent er of t hi s
qual i t y l i ke rework and scrap. Thi s approa ch process. Market resear ch on cust om er shal l
goes agai nst C rosby’s concept of “qual i t y i s i ndi cat e t he cust om er needs (curr ent and
free. ” pot ent i al ) and sal es cal l anal ysi s wi ll provi de
i nvest i gat i on about probl em s cust om ers face
5. VALUE-BASED
wi t h t he product perform anc e.
 It i s defi ne usi ng cost s and pri ces as
2. QUALITY OF CONFORMANCE
wel l as t he num ber of at t ri but es. Hence, t he
consum er’s purchase deci si on is founded on  Is basi cal l y m eet i ng t he st andards or
qual i t y at an up to st andard pri ce. Thi s user- based charact e ri st i cs defi ne i n the desi gn
approach i s based on t wo cri t eri a whi ch i s phase aft er t he product i s m anufact ured or
qual i t y and val ue. The hi ghest qual i t y product whi l e t he servi ce i s deli vered. It refers t o t he
is not typi cal l y the best val ue. That ext ent i n whi ch t he fi rm and it s suppl i ers are
descri pt i on is gi ven t o t he “best - buy” product abl e to m anufact ure product s wi t h the
or servi ce. expect ed l evel of rel i abi l i t y and uni form i t y at
a speci fi ed cost wi t h quali t y requi rem ent s
based on t he st udy m ade on qual i t y desi gn.
QUALITY TYPES Thi s phase is al so concerned about qual it y
cont rol st art i ng from raw m at eri al t o t he
In general , qual i t y is m eet i ng and
fi ni shed product . Three broad aspect s are
exceedi ng cust om er expect at i ons at a pri ce
covered i n thi s defi ni t i on, nam el y: defect
t hat he is wi ll i ng to pay to possess the
det ect i on, defect root cause anal ysi s, and
product or servi ce. There are t hree type of
defect prevent i on. Defe ct prevent i on deal s
qual i t y whi ch are quali t y of desi gn, qual it y of
wi t h the m eans t o det er t he occurrenc e of
conform anc e and qual it y of perform anc e.
defect s and is usual l y achi eved usi ng

1. QUALITY OF DESIGN st at i sti cal process cont rol t echni ques.

Det ect i ng defect s m ay be by i nspect i on,
 Is all about set charact e ri st i cs that the
t est i ng or st at i st i cal dat a anal ysi s coll ect ed
product or servi ce m ust mi ni m al l y have to
from process. Subsequent l y, the root causes
sat i sfy t he requi rem ent s of t he cust om er
behi nd t he presence of defect s are
based on m arket resea rch. Thus, t he product
i nvest i gat ed, and fi nal l y correct i ve act i ons
or servi ce m ust be desi gned in such a way so
are t aken t o prevent recurren ce of t he defect .
as t o m eet at l east mi ni m al l y t he needs of t he
cust om er at a gi ven cost . However, t he desi gn 3. QUALITY OF PERFORMANCE
 Is how sound the product funct i ons or i t s cust om ers’ quali t y requi rem ent s. A
servi ce perform s when put t o use. It m easures cust om er i s anyone who recei ves one
t he degree t o whi ch t he product or servi ce or m ore of t he organi zat i on’s product s
pl eases the cust om er from t he angl e of qual i t y or servi ces who coul d be an i nt ernal or
of desi gn toget her wi t h t he qual i t y of ext ernal one. The fol l owi ng i ssues m ay
conform anc e. Meet i ng cust om er expect at i on hel p defi ne qual i t y at t hi s l evel .
is t he focus of qual i t y of perform an ce. 1. P roduct s or servi ces t hat m eet
Aut om obi l e i ndust ry perform s t est dri ve of cust om er expect at i ons.
vehi cl es to gat her i nform at i on concerni ng 2. P roduct s or servi ces t hat do not
m i l eage and oi l consum pt i on. Bul bs are l i fe m eet cust om er expect at i ons.
t est ed to be aware of it s rel i abi l i t y t hroughout 3. P roduct s or servi ces t hat are
i t s useful l i fe. C ust om er survey i s carri ed out needed by the cust om ers but t hey
to di scover cust om er’s percept i on about do not recei ve.
servi ce rendered. If product or servi ce does 4. P roduct s or servi ces t hat are not
not m eet to cust om er expect at i on, t hen needed by the cust om ers but t hey
m odi fi cat i ons are consi dered necessary i n the do recei v e
desi gn or conform ance phase.
The resol ut i on to t hese i ssues wi ll i ncl ude
QUALITY LEVELS product i vi t y and cost requi rem ent s and t hose
t hat are t radi t i onal l y li nked to qual i t y.
Qual i t y focused organi zat i on m ust
Ti m el i ness, accessi bi l i t y and val ue for m oney
eval uat e at three l evel s nam el y: organi zat i on,
are qual i t y feat ures for a cust om er. Duri ng
process and indi vi dual . Qual i t y syst em s and
i nt ervi ews i dent i fi ed cust om er requi rem ent s
st andards m ust be defi ned at each l evel and
are convert ed i nt o speci fi c m easures and t hen
t hen m anage qual i t y through i m provem ent
i nt o perform anc e st andards.
effort s, t he organi zat i on, process, and
i ndi vi dual are co- dependent and are l i nked Most qual i t y-focused organi zat i ons, asi de

t oget her i n a t ot al syst em that event ual l y from dat a gat heri ng use benchm arki ng to

deci des the qual i t y of product s and servi ces com pare it s funct i ons wi t h t he sam e funct i ons

of an organi zat i on. Havi ng recei v ed faul t y as ot her organi zat i ons. B enchm arki ng shoul d

part s by cust om er woul d m ean a probl em at be a cont i nui ng concern t o m ake cert ai n

any or al l l evel s. P erhaps, an operat or has organi zat i on em pl oys ongoi ng i m provem ent t o

assem bl ed t he faul t y part i ncorrect l y or com pet e and del i ver a dem anded cust om er

al l ows t he faul t y part shi pped. Or probabl y requi rem ent . C ust om er feedba ck is al so

t here m i ght probl em s in t he basi c processes essent i al to ensure t hat organi zat i onal qual i t y

such as desi gn, product i on, order ent ry or m anagem ent is a const ant concern. F eedback

m at eri al s acqui si t i on processes. Organi zat i on, on a regul ar basi s m ust com e from bot h

repres ent ed by t op m anagem ent coul d al so be i nt ernal and ext ernal cust om ers. St andard

bl am ed because of not bei ng abl e t o i denti fy com i ng from cust om er requi rem ent s m ust be

t he qual i t y necessary to be com pet i t i ve, t he foundat i on for goal -set t i ng, probl em

i nappropri at e st rat egy, unabl e t o est abl i sh sol vi ng, perform anc e eval uat i on, incent i ve

necessa ry pol i ci es, budget s, goal s, and com pensat i on, nonfi nanci al rewards and

m easures. resourc e al l ocat i on.

A. OR GANIZAT IONAL LEVEL B . P rocess l evel – at t he process l evel , uni t s

The organi zat i onal l evel of the organi zat i on are cat egori zed int o

qual i t y requi rem ent s revol ve around funct i ons or depart m ent s li ke m arket i ng,
operat i ons, fi nance, hum an resource and so Indi vi dual s are not one of t he vi t al
on. Most processes are cross- funct i onal so com ponent s of t he hum an perform an ce
m anagers can opt i mi ze the act i vi t i es of hi s syst em . At the m acro l evel t hey serve as a
depart m ent and sub- opti m i ze the act i vi ti es of refl ect i on of t he process and t he syst em bei ng
t he ent i re organi zat i on. The fol l owi ng i ssues used by the organi zat i on. Each i ndi vi dual
m ay hel p defi ne quali t y at t hi s l evel . under the hum an perform anc e syst em accept s
i nput , generat e out put s and t hen adj ust hi s
1. P roduct s or servi ces t hat are m ost
perform an ce from t he feedba cks obt ai ned.
i m port ant t o ext ernal cust om ers
Devel opi ng st andards to m easure each
2. P rocesses t hat produce product s or
i ndi vi dual key out put i s a necessi t y t o defi ne
servi ces
i ndi vi dual qual i t y. The st andard creat ed from
3. The key i nput s to t he process organi zat i on and process l evel s shoul d be t he
basi s for t hese st andards t o be devel oped.
4. P rocesses t hat have t he m ost m aj or
P roduct i vi t y and cost are t he requi rem ent s for
effe ct on t he organi zat i on’s cust om er dri ve
a cust om er- dri ven qual i t y. Wi t h these
perform an ce st andards
requi rem ent s t he areas to be m easured t o
5. The i nt ernal cust om ers and t hei r needs qual i t y i ndi vi dual st andard woul d i ncl ude
accur acy, com pl et eness, i nnovat i veness,
Defi ni ng qual i t y at t he process l evel st art s
rel i abi l i t y, ease of use, ti m el i ness, vol um e,
wi t h det erm i ni ng t he end- cust om er
rat e, cost and fl exi bi l it y. Three issues have t o
requi rem ent s for t he process. End- cust om er
be answered for each out put of t he i ndi vi dual
requi rem ent s shoul d t hen be t ransl at ed i nt o
t asks i n order to devel op i ndi vi dual qual i ti es
speci fi c m easures t hat shoul d dri ve one or
whi ch are:
m ore i nt ernal m easures for t he overal l
process. These m easures m ust be brought t o 1. The requi rem ent of bot h i nt ernal and
t he di fferent subprocess and sub sub- process. ext ernal cust om ers
The out com e i s a set of m et ers i n addi t i on to
2. The m anner of m easuri ng the
t he speci fi c st andards they produce pl aced at
requi rem ent s
key st ages of t he process qual i t y. The m et ers
and st andards wi l l al so be used for 3. The speci fi c st andards for each
t roubl eshoot i ng t he syst em i n case cust om er m easure
requi rem ent s are not m et .
Under t he hum an an i ndi vi dual syst em , t he
C. P erform er/ Job/ Task Desi gn l evel qual i t y of each indi vi dual work or
(i ndi vi dual ) – nearl y al l peopl e desi re to do perform an ce is shaped by t hese fact ors:
hi gh-qual i t y work, but oft en ti m es t hey are
1. The out put an indi vi dual recei ves
l i mi t ed by syst em s that do not support i t . It i s
whi ch consi st s of how cl ear t he perform ance
vi t al t o generat e an i ndi vi dual qual i t y i n the
expect at i ons are, t he reasoni ng of t he work
cont ext of organi zat i on and process qual it y
procedur es, t he suffi ci ency of resources, the
despi t e quali t y bei ng broken at t he i ndi vi dual
appropri at en ess of ski ll s and knowl edge and
l evel . The st at i st i cal tool s for i nst ance are not
how cl ear t he cues t hat prom pt perform ance.
appreci at ed by workers becaus e t he t ool s are
used at t he i ndi vi dual l evel wi t hout bei ng 2. The posi ti ve/ negat i ve resul t s for
connect ed to t he overal l needs of t he syst em . perform i ng as desi red/ not desi red

3. The feedback an i ndi vi dual obt ai ns

such as t he nat ure of t he inform at i on gi ven,
when and how frequent it i s gi ven and the unski ll ed l abor pool , l arge cust om er pool ,
m anner i n whi ch i t i s provi ded hard- sel l i ng, st at i sti cal m et hods. Som e
exam pl es of t hi s pat t ern are from aut om obil e
4. An i ndi vi dual ’s physi cal , m ent al and
part s and el ect roni c com ponent s.
em ot i onal capaci t y.
4. Tot al qual i t y m anagem ent paradi gm - t hi s
QUALITY P AR ADIGMS
paradi gm focuses on cust om ers and suppli ers
1. Cust om er- craft paradi gm – i n thi s paradi gm i n addit i on to m ass product i on and st at i st i cal
t he focus i s on t he product or servi ce and m et hods. P ossi bl e cust om ers part i ci pat e i n
perform an ce shoul d be exact l y as what product defi ni t i on, creat i on and perform an ce
cust om er dem ands. Each product unit is eval uat i on st ages t o i nform t he producer what
desi gned and bui lt exact l y t he way t he to desi gn and bui l d. Usi ng em pl oyee
cust om er want s i t . The requi rem ent s i ncl ude i nvol vem ent and em powerm ent , cust om er-
ski ll ed craft spe rson, basi c hand tool s, and focus, cont i nues i m provem ent , t op
dem and for uni que product . S om e exam pl es of m anagem ent com mi t m ent , t rai ni ng and
t hi s pat t ern are from bank l oans, coffe e t eam work, the producer successful l y del i vers
shops, t ai l or’s shops and furni t ure suppl i ers. a product t he cust om ers want . Thi s paradi gm
resul t s i n hi gh qual i t y product , l ow-cost ,
2. Mass product i on and sort i ng paradi gm –
speedy del i very and subst ant i al decreas e for
here, t he focus is on product i on rat e wit hout
rework and scrap. The requi rem ent s cont ai n
di rect i nvol vem ent of the cust om er. P roduct s
i nt erchange abl e part s, fact ory power,
are desi gned and buil t based on how t he
st at i sti cal m et hods, em powered em pl oyees,
cust om er defi ned t he product s. R ework and
suppl i er part nershi ps, and cust om er
scrap are obvi ous si nce product perform an ce
rel at i onshi ps. S om e exam pl es of t his pat t ern
i s l ow. S al es are t aken from t he st ock hel d
are from product s/ servi ces of TQM
whi ch m akes del i very t i m e typi cal l y l ow.
com pani es.
S ervi ce organi zat i ons under t hi s paradi gm are
l abor – i nt ensi ve. The requi rem ent s consi st of 5. Techno- craft paradi gm – t hi s paradi gm is
i nt erchange abl e part s, fact ory power, t he soci o-t echni cal com pl em ent to t he
unski ll ed l abor pool , l arge cust om er pool and cust om -craft paradi gm wi t h t he i nt ent i on of
hard- sel l i ng. S om e exam pl es of thi s pat t ern reduci ng del i very ti m e. Each uni t i s desi gned
are from aut om obil e part s and readym ade and bui l ds exact l y t he way the cust om er want s
bui l di ngs for com m erci al ent erpri ses. i t buil t usi ng hi gh l evel of product process
fl exi bi l i t y. The requi rem ent s cont ai n
3. St at i sti cal quali t y cont rol paradi gm – t hi s
i nt erchange abl e part s, fact ory power,
paradi gm i s com parabl e t o m ass product i on
st at i sti cal m et hods, em powered em pl oyees,
and sorti ng paradi gm except t hat m ore
suppl i er part nershi ps, and cust om er
em phasi s i s gi ven t o product i on processes.
rel at i onshi ps, cust om er ai ded desi gn, and
The appl i cat i on of t hi s paradi gm t oget her
cust om er- ai ded m anufact uri ng. S om e
wi t h m echani zed product i on resul t s i n low
exam pl es of t hi s pat t ern are from t he soft ware
scrap and rework and low product i on
and apparel i ndust ri es.
cost . P roduct s are desi gned and bui l t ,
C OS T OF QUALITY
st at i sti cal process cont rol and st at i st i cal
sam pl i ng are used, and t hen cust om ers are C ost of qual i t y is a m et hod that perm i ts an
generat ed. The requi rem ent s com pri se organi zat i on t o deci de on t he l evel t o whi ch
i nt erchange abl e part s, fact ory power, i t s resourc es are used for act i vi t i es that avoi d
poor qual i t y, assess t he qual i t y of t he b. Qual i t y audi t s – confi rm at i on that t he
organi zat i on’s product s or servi ces, and that qual i t y syst em is operat i ng properl y
resul t from i nt ernal and ext ernal fai l ures. An
c. S uppli er rat i ng – apprai sal and
organi zat i on is abl e t o det erm i ne t he pot ent i al
endorsem ent of suppl i ers of product s and
savi ngs to be gai ned by im pl em ent i ng
servi ces
i m provem ent s havi ng such i nform at i on.
Qual i t y rel at ed act i vi t i es that i ncur cost s m ay 3. Int ernal fai l ure cost s - these cost s are
be di vi ded int o prevent i on cost s, apprai sal acqui red to t reat defect s reveal ed earl i er
cost s, and int ernal and ext ernal fai l ure cost s. when t he product or servi ce is del i vered t o
t he cust om er. These cost s happens when t he
1. P revent i on cost s – t hese are incurred
resul t s of work fai l to at t ai n qual i t y st andards
to prevent or avoi d fai l ure probl em s.
and are noti ced before they are t ransferr ed t o
P revent i on act i vit i es l ead t o reduce of fai l ure
t he cust om er. They coul d incl ude:
and apprai sal cost . These cost s are associ at ed
wi t h the desi gn, im pl em ent at i on, and a. Wast e - perform ance of needl ess work
m ai nt enance of qual i t y m anagem ent syst em . of hol di ng of st ock as an out com e of errors,
They are pl anned and i ncurred before act ual poor organi zat i on, or com m uni cat i on
operat i on, and t hey coul d incl ude:
b. S crap – faul t y product or m at eri al that
a. P roduct or servi ce requi rem ent s - cannot be repai red, used, or sol d
est abl i shm ent of qual i fi cat i ons for i nward
c. R ework or rect i fi cat i on – i m provem ent
bound m at eri al s, processes, fi ni shed product s,
of fl awed m at eri al or errors
and servi ces
d. F ai l ure anal ysi s – handl i ng and
b. Qual i t y pl anni ng – drawi ng of pl ans
i nvest i gat i on of di scarded or recal l ed
for qual i t y, rel i abi l it y, operat i ons,
product s, incl udi ng t ransport cost s
product i ons, and i nspect i on
There are t wo m ai n com ponent s of cost of
c. Qual i t y assuranc e – pl anni ng and
qual i t y whi ch are cost of conform anc e and
cont i nuance of t he qual i t y syst em
cost of non-conform anc e. C ost of
d. Trai ni ng – devel opm ent , prepar at i on, conform anc e i s t he cost of m aki ng avai l abl e
and cont i nuance of program s product s or servi ces based on requi red
st andards. S im pl y it i s a good am ount spent
2. Apprai sal cost s – t hese cost s are
such as prevent i on and apprai sal cost s. C ost s
associ at ed wi t h m easuri ng and m onit ori ng
of non-conform an ce m eans fai l ure cost l i nked
act i vi t i es rel at ed t o quali t y st andards and
wi t h a process not funct i oni ng based on
perform an ce requi rem ent s. These cost s t ake
requi red st andards. S im pl y it is a poi nt l ess
pl ace from spot t i ng defect s rat her t han
am ount spent l i ke int ernal and ext ernal cost s.
prevent i on. These cost s are associ at ed wi t h
Essent i al qual i t y cost s are defi ned as t he tot al
t he suppli ers’ and a cust om ers’ eval uat i on of
cost s by i nvest i ng i n the prevent i on of non-
purchased m at eri al s, processes, product s, and
conform anc e t o requi rem ent s and apprai sal of
servi ces to ensure t hat t hey conform to
a product or servi ce for conform anc e to
speci fi cat i ons. They coul d i ncl ude:
requi rem ent s and fai l ure to m eet
a. Veri fi cat i on – checki ng of i nward requi rem ent s.
bound m at eri al , process set up, and product s
DEF INING TOTAL QUALITY
agai nst cont ract ed speci fi cat i ons
MANAGEMENT
Tot al Qual i t y Managem ent (TQM) i s an al l - Qual i t y is a necessary param et er whi ch hel ps
i ncl usi ve and wel l -t hought -out m eans to organi zat i ons out shi ne t hei r com pet i t ors and
organi zat i onal m anagem ent t hat search es t o survi ve the fi erce com pet it i on.
advance t he qual i t y of processes, product s,
F OUNDATIO N – t he ent i re process of t ot al
servi ces and cul t ure through cont i nui ng m i nor
qual i t y m anagem ent is bui lt on a st rong
changes i n repl y t o const ant feedba ck. TQM
foundat i on of t he fol l owi ng:
consi st s of cont i nuous process enhancem ent
act i vi t i es concerni ng m anagers and workers 1. Et hi cs – i t is a com bi nat i on of wri t t en
al i ke in an organi zat i on is a com pl et el y and unwri t t en codes of pri nci pl es t hat govern
i nt egrat ed effort t oward i m provi ng deci si ons and act i ons wit hi n a com pany it is
perform an ce at al l l evel . Thi s enhance an underst andi ng of the di fferenc e of good
perform an ce i s ai m ed at sat i sfyi ng such cross- and bad deci si on m aki ng and behavi or at t he
funct i onal goal s as qual i t y, cost , schedul e, busi ness worl d. It boi l s down t o fol l owi ng t he
m i ssi on, need and sui t abil i t y. TQM com bi nes codes of conduct or organi zat i on and adheres
basi c m anagem ent t echni ques, current t o rul es and regul at i ons. It descri bes t he
i m provem ent effort s and t echni cal t ool s i n a act i ons of i ndi vi dual s wit hi n an organi zat i on
di sci pl i ned approach focused on cont i nuous as wel l as t hose of the organi zat i on as a
process im provem ent . The act i vi t i es are whol e.
event ual l y focused on i m proved cust om er
2. Int egri t y – it is consi dered as t he
sat i sfact i on.
consi st ency of act i ons, val ues, m et hods,
TQM begi ns wit h a focus on t he cust om er and m easures, pri nci pl es, expect at i ons and
i s boundl ess, wi t h a l i fet i m e dedi cat i on to out com es at workpl ace. There is a need t o
cont i nuous i m provem ent . TQM m erges a respect organi zat i on’s pol i ci es. Avoi d
part i ci pat i ve phi l osophy of m anagem ent spreadi ng unnecessary rum ors about fel l ow
at t ri but ed to Dr. Edwards Dem i ng wi t h workers. TQM does not work in an
i m port ance on qual i t at i ve t echni ques and envi ronm ent where em pl oyees cri t i ci ze and
em pl oyee i nvol vem ent to get bet t er t he backst ab each ot her.
qual i t y of goods and servi ces. TQM i s a
3. Trust – i t i s one of t he m ost im port ant
process of cont rol l ed change t hat com pri ses
fact ors necessary for i m pl em ent at i on of TQM
t he ent i re em pl oyees i n the i m provem ent of
because it bui l ds a cooperat i ve envi ronm ent .
t he qual i t y of product s and servi ces t o boost
It is a rel at i onshi p based on rel i ance.
t he product i vi t y of the organi zat i on. TQM
Em pl oyee needs t o t rust each ot her to ensure
opt i mi zes i nnovat i ve approach es t o probl em
part i ci pat i on of everybody and all ows
sol vi ng and shi ft s t he organi zat i on from
em powerm ent t hat encourag es pri de of
defect det ent i on to defe ct prevent i on. Wi t h
ownershi p and com m i t m ent . Trust post er
TQM all of t he organi zat i on’s resources are
i ndi vi dual ri sk-t aki ng for cont i nuous
used effe ct i vel y to i m prove al l of its
i m provem ent and is essent i al to ensure
processes. TQM engages everybody i n t he
cust om er sat i sfact i on. Trust i m proves
organi zat i on from the top m anagem ent t o t he
rel at i onshi p am ong em pl oyees and event ual l y
l owest posit i on. The ti m i ng, progressi on,
hel ps i n bet t er deci si on m aki ng whi ch furt her
m et hod of execut i on and int egrat i on of t hese
hel ps i n i m pl em ent i ng TQM successful l y.
el em ent s wi l l di ffer from one organi zat i on t o
anot her. B UILDING B R IC KS – bri cks are pl ace on a
st rong foundat i on to reach t he roof of
P R IMAR Y ELEMENTS OF TQM
recogni t i on. The foundat i on needs to be
st rong enough to hol d t he bri cks and support t asks and responsi bi li t i es. These t eam s us
t he roof. Leadershi p, t eam work, and t rai ni ng concept s such as em pl oyee invol vem ent
are t he bui l di ng bri cks of TQM. t eam s, sel f-m anagi ng t eam s and qual i t y
ci rcl es.
1. Leadershi p – it provi des a di rect i on t o
t he ent i re process of TQM. It is about rai si ng 3. Trai ni ng – em pl oyees need to be
t he aspi rat i ons of the fol l owers and ent rust i ng t rai ned on TQM t o becom e hi ghl y product i ve.
peopl e wi t h a desi re t o reach t he goal s. Managers need to m ake t hei r fel l ow workers
Leadershi p i n TQM requi res t he m anagers t o awar e of t he benefi t s of TQM and how woul d
provi de an i nspi ri ng vi si on, m ake st rat egi c i t m ake a di fferen ce i n t hei r product qual i t y
deci si ons and i nst i l l val ues t hat gui de and event ual l y yi el d profi t s for t hei r
subordi nat es. TQM needs t o have a supervi sor organi zat i on. Em pl oyees need t o be t rai ned on
who act s as a st rong source of i nspi rat i on for i nt erpersonal skil l s, t he abi l i t y t o works as a
ot her m em bers and can assi st t hem i n deci si on t eam m em ber, t echni cal know-how, deci si on-
m aki ng. A l eader him sel f needs t o bel i eve i n m aki ng ski ll s, probl em sol vi ng skil l s and so
t he ent i re process of TQM for ot hers t o on. Trai ni ng enabl es em pl oyees to im pl em ent
bel i eve in t he sam e. P roper downl oads, bri efs TQM effect i vel y wi t hi n thei r depart m ent s and
about TQM must be gi ven from t im e t o al so m ake t hem i ndi spensabl e resourc es.
em pl oyees t o hel p t hem i n it s successful
B INDING MOR TAR – it bi nds al l the
i m pl em ent at i on. TQM i nit i at i ves have t o be
el em ent s t oget her. C om m uni cat i on bi nds
i nt roduced and l ed by the top m anagem ent .
t oget her, st art i ng from t he foundat i on and
2. Team work – it i s a cruci al el em ent of goi ng up t o t he roof. C omm uni cat i on i s t he
TQM. R at her t han worki ng indi vi dual l y, vi t al li nk bet ween al l the TQM el em ent s and
em pl oyees need t o work i n t eam s. When m ust be preval ent in an organi zat i on i n order
i ndi vi dual s work i n uni son, they are i n a for TQM t o work the way i t shoul d be. The
posi ti on t o brai nst orm i deas and com e up wi t h channel s of comm uni cat i on need to be
vari ous sol ut i ons whi ch woul d i m prove credi bl e and easi l y int erpret ed for al l
exi st i ng processes and syst em s. Team m em bers of t he organi zat i on.
m em bers ought to hel p each ot her t o fi nd a
1. Downward com m uni cat i on – t hi s i s t he
sol uti on and put i nt o pl ace. Team work offers
dom i nant form of com m uni cat i on in an
cont i guous im provem ent in processes and
organi zat i on. P resent at i ons and discussi on are
operat i ons. The t eam s m ay be:
t wo exam pl es of t hi s form of com m uni cat i on.
a. P robl em -sol vi ng – t hese are t em porary F l ow of i nform at i on t akes pl ace from t he
and form ed to sol ve cert ai n probl em s, ident i fy m anagem ent to t he em pl oyees. The
and overcom e causes of t hose probl em s. They supervi sors are abl e t o m ake t he em pl oyees
are gener al l y l ast from one week t o t hree cl earl y underst and TQM usi ng t hi s type of
m ont hs. com m uni cat i on.

b. Qual i t y i m provem ent – t hese are 2. Upward comm uni cat i on – fl ow of

t em porary t eam s wit h t he purpose of deal i ng i nform at i on t akes pl ace from t he l ower- l evel
wi t h speci fi c probl em s t hat oft en recur. These em pl oyees t o the t op-l evel m anagem ent . The
t eam s are set up for a peri od of three to l ower- l evel em pl oyees are abl e to offer
t wel ve m ont hs . suggest i ons on t he effect s of TQM t o upper-
l evel m anagem ent usi ng t hi s type of
c. Nat ural work – t hese t eam s consi st of
com m uni cat i on. S upervi sor shoul d l i st en
sm al l groups of skil l ed workers who shared
effe ct i vel y and i ncorporat ed t he i nsi ght s and i m perat i ve t o li st en t o t hem and do what is
const ruct i ve cri t i ci sm s offered by the agreed upon. C om pani es have to gi ve
em pl oyees i n correct i ng the si t uat i ons t hat i dent i cal im port ance t o t he i nt ernal as wel l as
ari se t hrough t he use of TQM. Thi s creat es t he ext ernal cust om ers. A bet t er t echni que for
t he l evel of t rust bet ween supervi sors and com pani es t o use t hei r cust om ers is t o l earn
em pl oyees. Thi s is al so si m il ar to what is si gni fi cant t o t hem and then, equal
em poweri ng com m uni cat i on, where t hei r perform ance to the cust om er’s
supervi sors li st en t o ot hers. sat i sfact i ons. Many forward- l ooki ng
com pani es of t he worl d have st art ed t he
3. S i deways/ l at eral com m uni cat i on –
process of carryi ng out a survey known as
com m uni cat i on al so t akes pl ace bet ween
“energy m et er” whi ch refl ect s the
vari ous depart m ent s. Thi s type of
sat i sfact i on, moral e, and m ot i vat i on l evel s of
com m uni cat i on is im port ant because i t breaks
em pl oyees and devel ops t he m odel of
down barri ers bet ween depart m ent . It al so
“em pl oyee shi p” wit h core st ress on the
al l ows a m ore professi onal deal i ng wi t h
pri nci pl es of cust om er sati sfact i on. F urt her,
cust om ers and suppl i ers.
on t he ext ernal cust om er front , surveys are
4. R OOF – i t i ncl udes recogni t i on whi ch carri ed out am ong t he cust om ers for
bri ngs great er i nt ernal cust om er sat i sfact i on i dent i fyi ng thei r sat i sfact i on, expect at i ons
whi ch in t urn l eads t o ext ernal cust om er and the causes for low cust om er sat i sfact i on.
sat i sfact i on i n t he organi zat i on. There can be F or t hat reason, t he sat i sfact i on i ndex i s
a huge change i n sel f- est eem , product i vi t y com pi l ed and product qual i t i es are m onit ored
and qual it y when t he cont ri but ors are t o i m prove cust om er sat i sfact i on.
recogni z ed. R ecogni t i on is a fi nal el em ent of
2. Int ernal cust om er sat i sfact i on –
TQM. R ecogni ti on is t he m ost im port ant
cust om ers are not onl y ext ernal cust om ers,
fact or whi ch act s as a cat al yst and dri ves
but t he peopl e outsi de who are t he end user of
em pl oyees t o work hard as a t eam and deli ver
a fi rm ’s product s and servi ces. There i s al so
t hei r l evel best . Every i ndi vi dual is hungry
t he i nt ernal cust om er. The person wi t hi n t he
for appre ci at i on and recogni t i on. Em pl oyees
com pany who recei ves t he work of anot her
who com e up wi t h im provem ent i deas and
and adds hi s cont ri but i on t o the product or
perform except i onal l y wel l m ust be
servi ce before passi ng it on t o som eone el se.
appreci at ed in front of al l . They shoul d be
It i s essent i al t o at t ai n a successful int ernal
sui t abl y reward ed to expect a bri l l i ant
worki ng rel at i onshi p in order to sat i sfy t he
perform an ce from t hem even t he next t im e.
needs of t he ext ernal cust om er.
The m ost i m port ant responsi bi l it y on a
supervi sor i s that of accordi ng recogni t i on to 3. Al l work is process – anot her possi bl e
t he em pl oyees. focal poi nt of im provem ent i s t hat of busi ness
processes. A process i s a com bi nat i on of
C OR E C ONC EP TS OF TQM
m et hods, m at eri al s, m anpower and m achi nes
Each of the fol l owi ng core concept s of TQM t hat work col l ect i vel y t o produce a product or
can be used t o dri ve t he process of cont i nuous servi ce.
i m provem ent and t o devel op a fram ework for
4. Measurem ent – in order t o i m prove,
qual i t y im provem ent s over m any years.
one must fi rst m easure one’s present
1. C ust om er sati sfact i on – TQM is perform an ce. This wi l l hel p one focus bot h on
cent er ed on t he requi rem ent s of t he cust om er. sat i sfyi ng i nt ernal cust om ers and m eet i ng the
In order to m eet cust om er requi rem ent s, i t i s requi rem ent s of ext ernal cust om ers. There are
seven generi c ways i n whi ch the qual i t y of The cont i nuous im provem ent cycl e used over
out put s can be m easured. and over agai n wil l l ead to a fresh
“chem i st ry” wi t hi n t he organi zat i on so t hat
a. Defe ct s- work not up t o speci fi cat i on
t he cul t ure st art s to change to one of
b. R ework- work requi ri ng corre ct i on cont i nuous i m provem ent .

c. S crap- work t hrown away 7. P revent i on - at t he heart of TQM is t he

convi ct i on t hat it is possi bl e to achi eve
d. B ackl ogs- work behi nd schedul e
defect - free work m ost of t he ti m e. Thi s i s
e. Lat e del i veri es- work aft er agreed t i m e t erm ed “ri ght fi rst t i m e, every t im e” or zero
defect s. The “ri ght fi rst t i m e, every t im e”
f. S urpl us it em s- work not requi red
pol i cy is t he resul t of an em phasi s on
4. S ynergy in t eam work – t he i dea of prevent i on, and t he di li gent use of
synergy i n t eam work, where t he whol e is m easurem ent , process cont rol s and t he dat a-
great er t han t he sum of t he part s, i s a key dri ven el im i nat i on of wast e and error. It
concept i on in TQM. Here, it is used to serves as a goal for cont i nuous im provem ent .
prom ot e col l aborat i on, consensus, creat i ve P revent i on is t he goal of al l qual it y
confl i ct , and t eam wi nni ng. One of the assuranc e. Through pl anned and syst em at i c
st rengt hs of usi ng t eam s for TQM is t hat t hey act i on such as docum ent at i on of work
can m erge t he mut ual l y rest ri ct ed i ndi vi dual processes or cost of qual i t y audi t s, qual i t y
qual i t i es needed for runni ng busi ness t oday. assuranc e prevent s qual i t y probl em s.
Team work can provi de opport uni t i es for the
B ENEF ITS OF TQM
peopl e t o work t oget her t o reach qual i t y
i m provem ent . There are m any benefi t s of TQM. Essent i al l y,
TQM refers t o the t ot al qual i t y in ful fi ll i ng
5. P eopl e m ake qual i t y - m ost of t he
t he needs of t he cust om ers, the qual i t y of t he
qual i t y probl em s wi t hi n an organi zat i on are
product s and t he qual i t y of l i fe. Havi ng t hese
not usual l y wi t hi n t he cont rol of an indi vi dual
focuses l eads t o bett er busi ness resul t s and
em pl oyee. The syst em oft en com es i n t he way
al so benefi t s busi ness i n several di fferent
of em pl oyees who are t ryi ng to do a good job.
ways. Here are som e benefi t s of TQM:
In such a sit uat i on, mot i vat i on by it sel f
cannot work. There fore, m anagers are 1. C reat es a good corporat e cul t ure –
requi red to ensure t hat al l necessa ry is TQM is an approach where the cust om er i s t he
prepar ed t o l et peopl e t o produce qual i t y. cent er poi nt of t he busi ness rat her t han t he
Thi s creat es an envi ronm ent where peopl e are depart m ent . Therefore, qual i t y is t ransform ed
eager t o t ake responsi bi l i t y for t he qual i t y of from an i ssue of t he product i on depart m ent t o
t hei r own work. R el easi ng the t al ent s of a st rat egi c busi ness ent i t y t o m eet gl obal
everyone wi t hi n t he organi zat i on i n t hi s way chal l enges. The TQM phi l osophy revol ves
can generat e a cul t ure for qual i t y around devel opi ng a cul t ure t hat support s
i m provem ent . t ot al com m it m ent t o cust om ers sati sfact i on
t hrough cont i nuous i m provem ent .
6. C onti nuous i m provem ent cycl e – the
cont i nuous cycl e of i nst it ut i ng cust om er 2. B et t er revi ews of cust om ers – anot her
requi rem ent s, m eet i ng and m easuri ng t hem , benefi t of TQM i s t hat cust om ers and cli ent s
m easuri ng success and cont i nui ng t he are hi ghl y sat i sfi ed wit h t he perform anc e.
i m provem ent can be used bot h ext ernal l y and Gi ven the qual i t y assurance t est i ng
i nt ernal l y t o st im ul at e qual it y i m provem ent s. procedur es, t he product s of t he com pany wi ll
const ant l y m eet the requi rem ent s and needs of Type of change C ult ural and st ruct ural
cl i ent s and cust om er. Therefor e, the C ult ural
cust om ers st ay wi t h the com pany l onger,
deepen t hei r rel at i onshi p wi t h the com pany
and dem onst rat e l ess pri ce sensi t i vit y whi l e
recom m endi ng t he com pany’s product s of
TQM i s t he way of achi evi ng t he obj ect i ve of
servi ces t o ot hers. Cust om er sat i sfact i on and
“t ot al qual i t y”. The t echni ques used for
hi gh-perform an ce resul t s al so possi bl y l ead t o
cont i nuous im provem ent and process
hi gh revi ews i n di fferent publ i cat i ons and
reengi ne eri ng are t he t ool s of TQM. When
newspape r whi ch furt her enhances t he i m age
reengi ne eri ng i s im pl em ent ed, t he obj ect i ve
of the com pany.
of tot al qual i t y m ust al ways be forem ost t o
3. B et t er perform an ce from em pl oyees - ensure success. Ot herwi se, im pl em ent at i on
t hrough TQM, there is oft en more at t ent i on can be costl y and st i l l not yi el d accept abl e or
pl aced on m eet i ng t he needs of the em pl oyees l ong-t erm resul t s. P rocess reengi ne eri ng
or int ernal cust om ers. The t rai ni ng gi ven t o em phasi zes radi cal l y changi ng to t he exi st i ng
t he em pl oyees as part of t he program can processes under t he assum pt i on t hat t hose
boost em pl oyee moral e at the workpl ace changes wi ll defi ni t el y im prove t he fi rm ’s
resul t i ng i n em pl oyees worki ng harder t o gl obal perform an ce or t he perform an ce of one
achi eve the goal s of TQM. of it s speci fi c processes.

S IMILAR ITY AND DIF F ER ENC E B ETWEEN

R EENGINEER ING AND TQM Som e peopl e
have sai d t hat bot h TQM and R eengi neeri ng
are t he sam e, whi l e ot hers have argued that
t hey are incom pat i bl e. Mi chael Ham m er
argues t hat t he t wo concept s are com pat i bl e
and act ual l y com pl em ent each ot her. B ot h
concept s have t he sam e focus – cust om er
sat i sfact i on.

DIF F ER ENTC ES R EENGINEER ING

TQM

Level of change R adi cal

Increm ent al

S t art i ng poi nt C l ean sl at e Exi st i ng process

P art i ci pat i on Top – down B ott om – up

Typi cal scope B road, cross- funct i onal

Narrow, wi t hi n funct i ons

R i sk Hi gh Moderat e

P ri m ary enabl er Inform at i on t echnol ogy

S t at ist i cal cont rol