TOTAL QUALITY

MANAGEMENT
LIMITATIO
NS
AND
PITFALLS
What is Total Quality Management ???

Total Quality Management (or TQM) is a management concept

coined by W. Edwards Deming. The basis of TQM is to reduce
the errors produced during the manufacturing or service process,
increase customer satisfaction, streamline supply chain
management, aim for modernization of equipment and ensure
workers have the highest level of training.

TQM is an approach to management that seeks continual

improvement in everything we do. TQM stresses the creative
involvement of everyone from the Chief Executive Officer
down, in the quest for quality.
 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.
Failure of TQM.

A Case Study.
 The Failed Attempt of IBM
to implement 6-sigma Policy
 Six Sigma is a business management strategy originally
developed by Motorola, USA in 1981.
 IBM was one of the first companies to implement Six-
Sigma.
 IBM’s estimate was that by implementing six-sigma, they
would add $2.4 billion directly to the bottom line.
 John Fellows Akers, the president of IBM between 1983
and 1989, talked publicly about what the Quality movement
could do to reinvigorate American business and held IBM
up as an example of how other companies should run their
businesses.
 But, IBM suffered a loss of $16 billion between 1991 &
1993.
 Why did IBM fail to implement TQM ?

 One of the reasons of failure was over-abundance of

training instead what-they-need-when-they-need form of
training.

 The second reason was the heavy use of the Carrot-and-

Stick i.e. a policy of offering a combination of rewards and
punishment to induce behaviour.

 The reason was the employees at IBM had the

misconception that the success of the program meant
company would need lesser employees hence would result
in the loss of their own jobs.
Obstacles to implementation of TQM

 Lack of:
 Company-wide definition of quality
 Strategic plan for change
 Customer focus
 Real employee empowerment
 A very strong motivation
 Time to devote to quality initiatives
 Leadership
 Other Factors Involved

 Poor inter-organizational
communication

 View of quality as a “quick fix”

 Emphasis on short-term financial

results

 Internal politics
 Criticism of TQM

 Blind pursuit of TQM programs

 Programs may not be linked to

strategies

 Quality-related decisions may not be

tied to market performance

 Failure to carefully plan a program

Where TQM should NOT be implemented

Paul Carrol, the author of Big Blues: The

Unmaking of IBM, had pointed out in his book
that Six Sigma may have been the wrong strategy
for IBM.

TQM is not beneficial for firms which operate in

quickly changing business environments with
short lifetimes of technology, e.g. Computer
Firms. They should rather focus on innovation
than on optimizing their current production
process.
Thank You!!!