Chapter – Five

Total Quality Management

(TQM)
 Introduction
 Making quality a priority is putting customer needs
first.

 And this can be achieved by involving everyone in the

organization through an integrated effort.

 Total quality management (TQM) is an integrated

organizational effort designed to improve quality at
every level.
 …………….cont’d

Total Quality, if it is introduced and managed correctly,

will:
 Eliminate waste;

 Cut inventories;

 Improve customer satisfaction; and

 Enhance profitability.
 …………..cont’d

At the heart of Total Quality there are two simple aims,

they are:
 Make things right first time.
 Work for continual improvement.
 The need for total quality
If a defective product enters in the market, it will cause:
 customer dissatisfaction,
 unnecessary expenditure for warranty, and
 poor product salability
Having a quality product increases market share,
resulting in better profits.
 ………………..cont’d
 Quality is not a goal, which, once reached, can be sustained without
constant effort.

 The ‘goalposts’ are always moving.

 Quality must become the first objective for all managers at all times.
 ………………….cont’d

Quality Control
Quality control is defined as: “A system of methods for
the cost effective provision of products or services
whose quality is good for the purchaser’s
requirements”.
(Ishikawa)
 ………………….cont’d

“Quality control consists of developing, designing,

producing, marketing and servicing products and
services with optimum cost-effectiveness and
usefulness, which customers will purchase with
satisfaction”.
(Ishikawa)
 …………….cont’d
To produce products/services that consumers will buy happily;
 Quality dimensions,
 Costs (i.e. sales price and profit),
 Delivery (i.e. production volumes and sales volumes), and
 Safety (including social and environmental factors) must be
comprehensively controlled.
 ………………………cont’d

To achieve quality products/services companies must:

 strive to create cooperation among departments,

and
 Prepare and implement standards faithfully.
 ………………..cont’d
This can only be achieved through full use of variety of
techniques such as:
 Statistical and technical methods,
 Standards and regulations,
 Computer methods, automatic control, and
 Industrial engineering techniques and market research.
 ………………cont’d

Since real quality control can be achieved by

marshalling all of a company’s strengths, this kind of
quality control is termed as Total Quality Control
(TQC).

Implementing TQC requires the participation of all

departments, the involvement of every employee at
all levels and a comprehensive implementation of
quality control.
 ……………….cont’d
 TQC consists essentially of developing, controlling, and assuring the quality
of products and services.

 However, we can expand the definition of TQC to mean improving the

quality of everything, i.e. creating a high quality company; high quality
man, machine, material and information.
 Evolution of quality

 1700-1900: Quality is largely determined by

efforts of an individual craftsman.
 1900 – 1930: Henry Ford developed mistake-proof assembly concepts,
self-checking, and in process inspection.
 1901: First standards laboratories established in Great Britain.
 1915 -1919: British government begins a supplier certification program.
 1919: Technical inspection association is formed in England: this later
becomes Institute of QA.
 …………..cont’d

 1924: W.A Shewhart introduces the control chart concept in a Bell

Laboratories.
 1928: Acceptance sampling methodology is developed and refined by
H.F Dodge and H.G Romig.
 1946-1949: Deming is invited to give SQC seminars to Japanese
industry.
 1948: G. Taguchi begins study and application of experimental
design.
 1950: Ishikawa introduces the cause & effect diagram.
 ……………cont’d

 1954: Joseph M. Juran is invited by the Japanese to lecture on

quality management & improvement.
 1960: The quality control circle concept is introduced in
Japan by K. Ishikawa.
 1961: National council for quality and productivity is formed
in Great Britain.
 1987: ISO publishes the first quality systems standard.
 1975-1978: quality circle grows to TQM movement.
 ……………cont’d

 1989: The Journal of quality engineering appears.

 1995: many undergraduate programs require SQC.
 2000s: ISO 9000:2000 standard is issued.
 …………….cont’d

In general

 1950’s: Inspection and QC.

 1960’s: Statistical Quality Control.

 1970’s: Quality Assurance – QA.

 1980’s: Total Quality Management.

 1990’s: Strategic Leadership.

 2000’s: Values Process.

 Eight dimensions of Quality
 Dimensions of quality measures the various definitions of quality
 The major contribution of David A. Garvin is the ’Eight Dimensions of
Quality’
1. Performance
2. Reliability
3. Durability
4. Serviceability
5. Aesthetics
6. Features
7. Perceived quality
8. Conformance to standards
 Total quality management
TQM is the application of quality principles to all facets
of an organization.
TQM is composed of the following three words to have
a combined effect.
a. Total -made up of the whole
b. Quality -degree of excellence a product or service
provides
c. Management -science and art or manner of planning,
controlling, directing, etc.
 TQM………….cont’d

A more comprehensive definition of TQM is given by

another of the authors on classical quality control, A.V.
Feigenbaum, in his material ‘Total Quality Control’.

Here, quality is described as “an effective system for

integrating quality improvement efforts of the various
groups of the organization”, so as to provide products
and service at levels which allow customer satisfaction.”
 TQM……………cont’d
The above definition contains several key ideas:
 Integration –pulling together the different interests in
quality
 Improvement –a dynamic view of quality,
 Different groups –the organization has its own internal
‘suppliers’ and ‘customers’.
 Services –not products only, but all the services
supporting them.
 Customer satisfaction –the consequence of proceeding
steps.
 Characteristics of TQM
 What characterizes TQM is the focus on identifying root causes of quality
problems and correcting them at the source, as opposed to inspecting the
product after it has been made.

 Not only does TQM encompass the entire organization, but it stresses that
quality is customer driven.

 The followings are the specific concepts that make–up the philosophy of TQM
Customer focus

Continuous improvement

Employee empowerment
 Customer focus
 The first, and overriding, feature of TQM is the company’s focus on its
customers.
 Quality is defined as meeting or exceeding customer expectations.
 The goal is to first identify and then meet customer needs.
 TQM recognizes that a perfectly produced product has little value if it is not
what the customer wants.
 Therefore, we can say that quality is customer driven
 But most of the time customer needs are dynamic and TQM deals with
companies need to continually gather information by means of focus
groups, market surveys, and customer interviews in order to stay in tune
with what customers want.
They must always remember that they would not be in business if it
were not for their customers.
 Continuous improvement
 Continuous improvement is a philosophy of never-ending improvement.
 Traditional systems operated on the assumption that once a company
achieved a certain level of quality, it was successful and needed no further
improvements.
 Continuous improvement, called kaizen by the Japanese, requires that the
company continually strive to be better through learning and problem
solving.
 Because we can never achieve perfection, we must always evaluate our
performance and take measures to improve it.
 Continuous
improvement…..cont’d
 We have two approaches that can help companies with continuous
improvement:
The plan–do–study–act (PDSA) cycle
Benchmarking
 Plan – do – study – act (PDSA) cycle: is a diagram that describes the
activities that need to be performed to incorporate continuous
improvement into the operation.
……………..cont’d

Plan

Act Do

Study
 …………cont’d
 Plan: Managers must evaluate the current process and make plans based
on any problems they find. They need to document all current procedures,
collect data, and identify problems. This information should then be
studied and used to develop a plan for improvement as well as specific
measures to evaluate performance.
 Do: The next step in the cycle is implementing the plan (do). During the
implementation process managers should document all changes made and
collect data for evaluation.
 …………..cont’d
 Study: The third step is to study the data collected in the previous phase.
The data are evaluated to see whether the plan is achieving the goals
established in the plan phase
 Act: The last phase of the cycle is to act on the basis of the results of the
first three phases. The best way to accomplish this is to communicate the
results to other members in the company and then implement the new
procedure if it has been successful. Note that this is a cycle; the next step is
to plan again. After we have acted, we need to continue evaluating the
process, planning, and repeating the cycle again.
 …………….cont’d
 Benchmarking: Another way companies implement continuous
improvement is by studying business practices of companies considered
“best in class.” This is called benchmarking. The ability to learn and study
how others do things is an important part of continuous improvement.
 Employee empowerment

 Part of the TQM philosophy is to empower all employees to seek out

quality problems and correct them.

 With the old concept of quality, employees were afraid to identify problems
for fear that they would be reprimanded.

 Often poor quality was passed on to someone else, in order to make it

“someone else’s problem.”

 The new concept of quality, TQM, provides incentives for employees to

identify quality problems. Employees are rewarded for uncovering quality
problems, not punished.
 ………….cont’d
 Workers are empowered to make decisions relative to quality in the production
process. They are considered a vital element of the effort to achieve high
quality.

 Their contributions are highly valued, and their suggestions are implemented.

 In order to perform this function, employees are given continual and extensive
training in quality measurement tools.

 To further stress the role of employees in quality, TQM differentiates between

external and internal customers.
 ………………….cont’d
 External customers are those that purchase the company’s goods and
services.

 Internal customers are employees of the organization who receive goods

or services from others in the company.

 Just as a defective item would not be passed to an external customer, a

defective item should not be passed to an internal customer.
 Other TQM Concepts
Concept Main idea

Customer focus Goal is to identify and meet customer needs.

Continuous improvement A philosophy of never-ending improvement.

Employee empowerment Employees are expected to seek out, identify,

and correct quality problems.
Use of quality tools Ongoing employee training in the use of quality
tools.
Product design Products need to be designed to meet customer
expectations.
Process management Quality should be built into the process; sources
of quality problems should be identified and
corrected.
Managing supplier quality Quality concepts must extend to a company’s
suppliers.
 Leadership Shift Required by
TQM
Former Leadership Style TQM Leadership Style
Respond to incidents Solve problems
Professional expertise Asking customers
Individual effort and Use of teamwork
competitiveness
“Go by the book,” decisions by Data-driven decisions
opinion
Tell subordinates Ask and listen to subordinates,
collaboration
 …………..cont’d

Former Leadership Style TQM Leadership Style

Maintain the status quo Innovate, create, experiment
Control and watch employees Trust employees
Blame employees when things Errors mean flawed systems
go wrong and processes
Police dept. is a closed system Open system
 Teaching total quality
 Total quality begins and ends with education.

 Training is an essential condition for success.

 Teaching will start at the top and be driven through the whole
organization.
 …………….cont’d

The education and training programs usually comprise three levels:

I. The management level, which gives managers enough understanding of

the techniques to exploit them.
II. The technical level, which gives a detailed understanding to those
responsible for using techniques and training others.
III. The shop-floor level, which gives staff enough understanding to work
with the appropriate techniques.
 Motivation for quality
Every body in the company must be motivated towards quality improvement.

Motivating people to work for Total Quality is an important ingredient in the

program.

Motivation is divided into two main categories:

i. Satisfaction factors include:

 Achievement,
 Recognition,
 The work itself,
 Responsibility and
 Advancement.
 ……………..cont’d

ii. Dissatisfaction factors include:

Company policy and administration,

Supervision,

Salary,

Interpersonal relations, and

working conditions.
Goal of TQM

“Do the right

things right the
first time, every
time.”
 Basic principles of TQM
Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

Gurus of TQM 44

Dr. W E Deming Dr. J M Juran Dr. Philip Crosby

Gurus of TQM 45

Dr. Genichi Taguchi Dr. Kaoru Ishikawa Dr. Masaaki Imai

 Gurus of TQM 46

Dr. Shigeo Shingo Dr. Yoshio Kondo Dr .Armand V. Feigenbaum

Dr. James Harrington
 Contribution of different quality
gurus
 Walter A. Shewhart –Contributed to understanding of process variability. –
Developed concept of statistical control charts.
 W. Edwards Deming –Stressed management’s responsibility for quality. –
Developed “14 Points” to guide companies in quality improvement.
 Joseph M. Juran –Defined quality as “fitness for use.” –Developed concept of cost
of quality.
 Armand V. Feigenbaum –Introduced concept of total quality control.
 Philip B. Crosby –Coined phrase “quality is free.” –Introduced concept of zero
defects.
 Kaoru Ishikawa –Developed cause-and-effect diagrams. –Identified concept of
“internal customer.”
 Genichi Taguchi –Focused on product design quality. –Developed Taguchi loss
function.