Total Quality Management (TQM)

Definition

Management approach of an organization

centered on quality based on the
participation of all members and aiming at
long term success through customer
satisfaction and benefits to all members of
organization and society
(ISO)
 Total Quality Management

• Total – Made up of Whole

• Quality – Degree of excellence a product
or service provides
• Management – Act, art or manner of
handling, controlling, directing etc
 Why Quality needs to be
Managed?

• Question of survival in an intense

competitive environment

• Increasing Customer Consciousness

• Need for earning profit instead of making

profit
 Ingredients of TQM
• Leadership – Involvement by top management
• Participatory – Every process, job, person
• System approach – Integration of various
aspects of organization
• Continuous improvement – Quest for progress
and improvement
• Total Customer satisfaction
• Key objective of improving quality
Quality management – leading thinkers

• Philip Crosby – Quality without tears

• W Edward Deming – Statistical Process
Control
• Joseph M Juran – Planning, control and
Improvement
• Armand V Feigenbaum – Total quality
Control
 Japanese Quality Gurus

• Kaouru Ishikawa – Quality Circles and

Cause and effect analysis
• Shigeo Shingo – Zero Quality control,
Mistake proofing
• Genichi Taguchi – Loss function
 TQM Cornerstones

• TQM begin and and end with customers

• Decisions based on facts and data
• Improvement a thing of daily life
• Partnership with customers and suppliers
• Empowerment of Workers
 Key success factors of TQM
¾ Clear aims and objectives
¾ Commitment of Top management
¾ Devotion of time for TQM
¾ Resources for TQM
¾ Personal qualities of vision, courage, honesty
and determination
¾ Careful analysis and planning
¾ Steering group to manage change
¾ Adoption of ethical approach
 The PDCA Cycle
• Developed by Schewart and modified by
Deming, a continuous improvement
methodology
¾Plan – Establish plan for achieving goal
¾Do – Enacting the plan or doing
¾Check – Measuring and analyzing results
¾Act- Implement corrective actions
 Plan-Do-Check-Act (PDCA) Cycle

Act Plan

Check Do

5-10
 Strategic Considerations
• Business survival possible only by quality
improvement
• Strategy changed to customer focus from
return on investments
• Liberalization, globalization & competition
paved the way
• Promotion by government and industry
associations
 Strategic Management – Decision Making Process

3 2
ORGANISATIONAL 1
ENVIRONMENTAL
ANALYSIS DETERMINATION OF
ASSESSMENT
(STRENGTHS & MISSION OR
(THREATS &
WEAKNESSES) PURPOSE
OPPORTUNITIES)

REDETERMINE AS
NEEDED

REDEFINE & REVISE 4

AS NEEDED SPECIFICATION OF
OBJECTIVES

FIG.2
REFORMULATE AS 5
NEEDED FORMULATION OF STRATEGY OR
STRATEGIC PLAN (TO ACHIEVE OBJECTIVES
AND GOALS)

REWORK AS 6
NEEDED IMPLEMENTATION OR EXECUTION OF
STRATEGIC PLAN

RECYCLE TO PHASES 7
1,4,5 & 6 AS MONITORING, REVIEWING &
NEEDED EVALUATION
 TQM and Business strategy
• Best competitive strategy – customer value
strategy, concentrate on customers
• Improved quality leads to reduced cost due to
less rework and rejections
• Cost leadership associated with high quality
• Use product differentiation based on customers
requirements
• Customer value – Quality is not absence of
defects but it means delivering value to
customers as per their expectations
 Strategic Quality Planning

• Quality Mission – purpose of existence

• Quality strategy and policy – Leadership,
people management and process
• Principles and values – creation of
environment
• Organization and process – size, coordination,
teams
• Education plan – Equip people
• Tactical plans
• Resources – money, time
 Approaches to strategic quality
management
• A focus on customer needs – by SWOT analysis
• Leadership by upper management to develop
quality goals and strategies
• Translation of strategies into annual business
plans
• Implementation of actions by line departments
instead of relying on a quality department
 Quality Policies
• A policy is a broad guide to action. It is
statement of principles.
• A policy differs from procedure, which
details how a given activity is to be
accomplished.
• The subject matter of quality policies are
tailor-made for each company
 Vision statement as a collection of
quality policies
• Definition of quality
• Quality linked to business goals
• Scope of quality effort
• Goals – long range and short range
• Focus on customers – internal and external
• Involvement of all employees
• Impact on job security
• Implementation by the line organization
• Leadership by upper management
 Quality Goals
• A goal or objective is a statement of the desired
result to be achieved within a specified time – an
aimed at target.
• These goals then form the basis of detailed
planning activities
• Tactical goals are short range (1 year) and
strategic goals are long range (5 years)
• Goals may be created for breakthrough or
control
 Formulation of quality goals -
Inputs
• Pareto analysis – field failures, complaints, returns,
scrap, rework, sorting
• Proposals from key insiders – managers , supervisors,
union shop stewards
• Proposals from suggestion schemes
• Filed study of users needs, costs
• Data on performance of product vs. competitors
• Comments of key people outside company – customers.,
vendors, journalists, critics
• Findings and comments of government regulators,
independent labs, reformers.
 Competitive Benchmarking
Benchmarks
The specification
Customer desires
Competition
Best in our Industry
Best in any industry
 Deployment of goals
• Division and subdivision of the goals until
specific deeds to be done are identified
• Allocation of responsibilities for doing
these deeds
• Provision of the needed resources
 Implementing Total Quality –
5 Phases
1. Decide on different approaches – SPC, Quality circles,
Benchmarking
2. Prepare by giving training to upper and middle
managers
3. Start - includes more training, pilot quality projects,
revision and expansion of systems
4. Expand the new approach to other units by setting
teams, measurement systems
5. Integrate - quality becomes a way of life, strategic
goals are finalized and deployed at various levels
 Strategic Quality Planning
¾ Listen to customers needs
¾ Plan how to meet customer needs
¾ Being aware of values and aligning of organization
¾ Being aware of forces that influence the organization
¾ Develop specific quality objectives
¾ Consider various scenarios
¾ Plan to close gaps
¾ Take actions to achieve objectives
¾ Reevaluate and renew efforts
 Organization for TQM
• A structure is to be created for TQM
promotion which consists of problem
solving teams and control points

• In the basic structure first the CEO learns

it and CEO needs a coordinator reporting
with a steering committee
 Organization for TQM
• Apex TQM steering committee – with a
full time coordinator
• Divisional TQM steering committee with
full time coordinator
• Departmental TQM steering committee
with part-time TQM champions
 Role of TQM Coordinators
• TQM coordinator does designing,
planning, educating, facilitating, reviewing,
building conviction and acting on
secretariat
• Steering committee provide direction, goal,
resources, review and carryout events
• TQM teams involve all . Examples are
Quality circles and TPM circles
 TQM Team Roles

• Sponsor – Influencing and authority

• Team Leader – manages Team
• Facilitator – Catalyst in a team
• Team Member – Work on Problems
 Training for TQM

• Class room education – external and internal

• Self development – Distance education
• Mutual development – Team problem solving
• On the job training – working on assignments
• Mentoring – working under an experienced and
trusted advisor
 Work practices for promoting learning

• Establishing standards – locking learning in

• Preventing recurrence – learning from past
• Making improvements – problem solving
• Averting problem recurrence – learning
through prevention
• Benchmarking – identification of best practices
• Participating in campaigns – 5S campaign
• Working in teams – mutual development
• Experimenting – learning by creation