TOTAL QUALITY MANAGEMENT [TQM]

What do you mean by ‘Quality’ ?

1. 'Quality’ is the on-going process of building and sustaining relationships

by assessing, anticipating, and fulfilling stated and implied needs.'

2. Quality is the customers' perception of the value of the suppliers' work

output.

3. All your actions aimed at the translation, transformation and realization of

customer expectations, converting them to requirements, both

qualitatively and quantitatively and measuring your process performance
during and after the realization of these expectations and requirements .
4. "Quality" is to satisfy the ever-changing needs of our customers, vendors
and employees, with value added products and services emphasizing a
continuous commitment to satisfaction through an ongoing process of
education, communication, evaluation and constant improvement.
5. "Quality is the extent to which products, services, processes, and
relationships are free from defects, constraints, and items which do not
add value for customers."

MR. ARMAND FEIGENBAUM – An expert in TQM says:

“Total Quality Control” should be used as systematic approach in all

functions of the organization and not just manufacturing only”.

- Mr. Armand Feigenbaum had only originated the Concept of Total

Quality Control [TQC].

 - Thus Quality is to be built in the early stage and QC System and

should improve gradually in each and every stage.

- Quality Improvement is the Single Most Important Force for

Organisational Growth and Success.

- To manage Quality System, an organization also requires :

[a] Clear Understanding of International Markets; and

[b] Management needs thorough grasping of Total Quality

Strategy.

- Total Quality Processes are the Single Most Powerful Change Agent
for the Companies/Organisation today.
- Mr. Feigenbaum suggested SIX STEPS for improving Quality.
They are:

1. Preparation 2. Planning 3. Awareness

4. Deployment 5. Implementation; and

6. Continuous Improvement.

WHAT IS TOTAL QUALITY MANAGEMENT?

- You can call it a Concept or you call it a philosophy.
- Its application either in an organization or in a factory which are involved in
offering a service or producing a finished product, quality in all its respect is
drastically improved.
 - According to this concept every employee irrespective of his or her position in
the organization is regarded as equally important.
- They all have "We Feelings".
- They don't say "This is not my problem". the lower employee is not felt as
"unwanted child" and the corporate management doesn't think themselves as
"most wise decision makers".
- Every employee is a seller and a buyer at the same time.
- They sell their talent, their skills, their ideas to the factory/organisation, in
response they are fairly compensated in salaries.
- At the same time they are buyers also.
- They buy their salaries in lieu of their work.
- Everyone is important just like parts in a vehicle.
- Do not think engine is the most important part and the belt is least important.
- Both are equally important because if the belt stops transferring the engine
power to the wheels, car will not run.
- And car will not run also without one of them.

Thus,

Total Quality Management (TQM) is a Management Philosophy that seeks to

integrate all organizational functions (marketing, finance, design, engineering, and
production, customer service, etc.) to focus on, meeting the customer needs and
other organizational objectives.

TQM empowers an entire organization, from the most junior employee to the CEO,
with the responsibility of ensuring quality in their processes. In particular, TQM
provides management with the ability to ensure quality through more streamlined
and effective process-improvement channels.

A great range of organisations have deployed TQM, including small companies,

large companies, and government departments (e.g., NASA). TQM is no more
relevant to any one type of organization than any other; on the contrary, it is a
philosophy appropriate to any situation in which quality assurance is important.

DEFINITION OF TQM:

1. “Total Quality Management (TQM) is a comprehensive and structured

approach to organizational management that seeks to improve the quality

of products and services through on-going refinements in response to
continuous feedback.”
2. “Total Quality Management (TQM) is a management approach that aims
for long-term success by focusing on customer satisfaction. TQM is based
on the participation of all members of an organization in improving
processes, products, services, and the culture in which they work.”
3. Based on concepts developed by Statistician and Management Theorist

W. Edwards Deming, TQM includes techniques for achieving efficiency,

solving problems, imposing standardization and statistical control, and
regulating design, housekeeping, and other aspects of business or
production processes.
4. Holistic approach to long-term success that views continuous improvement

in all aspects of an organization as a journey and not as a short-term

destination. It aims to radically transform the organization through
progressive changes in the attitudes, practices, structures, and systems.
5. TQM transcends the 'product quality' approach, involves everyone in the

organization, and encompasses its every function administration,

communications, distribution, manufacturing, marketing, planning,
training, etc.

- Coined by the US Naval Air Systems Command in early 1980s, this term has

now taken on several meanings and includes:

 (1) commitment and direct involvement of highest-level executives in setting
quality goals and policies, allocation of resources, and monitoring of results;

(2) realization that transforming an organization means fundamental changes in

basic beliefs and practices and that this transformation is everyone's job;

(3) building quality into products and practices right from the beginning doing
things right the first time;

(4) understanding of the changing needs of the internal and external customers,
and stakeholders, and satisfying them in a cost effective manner;

(5) instituting leadership in place of mere supervision so that every individual

performs in the best possible manner to improve quality and productivity,
thereby continually reducing total cost;

(6) eliminating barriers between people and departments so that they work as
teams to achieve common objectives; and

(7) instituting flexible programs for training and education, and providing
meaningful measures of performance that guide the self-improvement efforts of
everyone involved.

- TQM requirements may be defined separately for a particular organization or

may be in adherence to established standards, such as the International
Organization for Standardization's ISO 9000 series.

- TQM can be applied to any type of organization; it originated in the

manufacturing sector and has since been adapted for use in almost every type of
organization imaginable, including schools, highway maintenance, hotel
management, and churches.

- As a current focus of e-business, TQM is based on quality management from the

customer's point of view.
TQM PROCESS:

TQM comprises THREE Process. They are:

1. Quality Process;
2. Continuous Improvement; and
3. People Process

Quality Process:

• Who the Customer is.

• What his needs are
• How these needs can be satisfied

The above said 3 steps provide complete satisfaction to customers.

2. Continuous Improvement:

* PLAN, DO, CHECK, and ACT (the PDCA Cycle).

* PDCA Cycle generates numerous opportunities for further policies,

objectives, and methods to achieve goals, education and training to
employees, implementation, checking causes for low quality, taking
appropriate actions and preventing recurrence, as has been segmented in
stages and given below:

In the Planning phase, people define the problem to be addressed, collect relevant
data, and ascertain the problem's root cause;

In the Doing phase, people develop and implement a solution, and decide upon a
measurement to gauge its effectiveness;
In the Checking phase, people confirm the results through before-and-after data
comparison;

In the Acting phase, people document their results, inform others about process
changes, and make recommendations for the problem to be addressed in the next
PDCA cycle.

3. People Process:

* Initiating and maintaining TQM

* Involvement of all employees on the basis of 3 Values, as given below:

[i] Intellectual Honesty;

[ii] Self-Control

[iii] Respect for others.

* TQM can face success at Shop Floor Level, only when there is Management

Support [i.e. Top Level, Middle Level and Lower Level].

* Attitudinal Barriers → Impediment to TQM

• These problems can be solved by:

- Developing proper climate

- Improving Quality
- Systematic Training at all levels
- Participation of Employees
- Empowerment of Employees
COMMON PRINCIPLES OF TQM:

What are the Common Principles of TQM?

- Customer-First orientation –
- Top Management Leadership of Quality Improvement Process
- Focus on Continuous Improvement
- Respect for Employees and their Knowledge
- Provision of On-going Education and Training to Employees.
- Use of Statistical Methods throughout the Organisation
- Emphasis on prevention rather than detection and correction.
- Treatment of Vendors as Long-Term Partners.
- Sowing the Seed of Quality in ABC Stage.
- Co-operation and Involvement of all functions within the organization.
- Great Emphasis on Customer Satisfaction.
- Bench-marking
- Widespread Employee Empowerment and Team Building
- Quality Circles / Quality Council / Quality Control in all Stages.
- In all, make “QUALITY AS A WAY OF LIFE” – The Culture.

COMPANIES IMPLEMENTED TQM [MNCs] IN THE BEGINNING:

1. Motorala 2. Cadillac 3. Xerox 4. Toyota 5. IBM

6. Carning Glass Works 7. General Motors 8. Proctor & Gamble

9. Ford Motor Company Ltd. 10. Baxter Healthcare etc.

INDIAN COMPANIES WITH TQM PHILOSOPHY:

1. Sundaram Fasteners 2. Sundaram Clayton 3. Kirloskar Ltd.

4. Wadia India Limited 5. Godrej 6. Crompton Greeves Ltd.

7. Bharat Bijlee 8. BHEL 9. BEL 10. MECON

TOTAL QUALITY MANAGEMENT APPROACH TO HRM

TQM involves –
* Collection of Data

* Multi-Functional Teams

*Brain-Storming

* Advance Experimental Methods

* Group Based Rewards & Recognition.

Steps of Total Quality System:

ARMAND FEIGENBAUM has classified the Total Quality System into SIX Major
Steps. They are:

1. Preparation
2. Planning
3. Awareness
4. Deployment
5. Implementation; and
6. Continuous Improvement.

- Here, all the preparatory work and home work are to be done by Top
Management only.
- Planning by the Top Management necessitates setting broad goals and
objectives for improving Quality.
- Awareness should be made by way of communications – especially written
communications to everyone - to become familiar with the TQM Philosophy,
direction and approach developed by Quality Management Team to capture
heart and minds of people.
- Deployment should consist of [i] Organisational Teams; [ii] Conduct of
Training and [iii] Assigning Respnsibilities.
 - In the Implementation Stage – The PRODUCT ↔ PROCESS
Development takes place actually.
-
- Continuous Improvement is a Never Ending Process. It comprises of
Continuous Assessing and Rewarding Progress, Resetting Improvement
Goals and Conducting On-Going Training.

TQM EXPERTS/GURUS & HR

1. Talking about HR, PHILIP CROSBY, an expert in TQM/HRM says –

“Human Resources should be the Architect of Corporate Culture” Why?

Because, only HR Departments build values and Practices supporting Continues

improvement in Quality throughout the Organisation.

2. W. EDWARD DEMING believes that -

• “Workers fear the Bosses” . This fear distracts from High Quality,
Collaborative Work.
• Hence, it is insisted that fear should be driven out of Workers and
Workplace.
• He further reiterated that the HR Department should take oath to learn
“Quality” As a way of life.
• HR Should expand its role by supporting TQM throughout the Organisation.
• With the emphasis on TQM, the current TQM Practices need to be reviewed.
• The following HR Practices can have a significant impact on Quality
Performance.
o Selection
o Training & Development
o Career Development
o Performance Management
o Pay Systems
o Industrial Relations
o Communications.
SELECTION:

• As per the Traditional Practice, Various Selection Devices were adopted to

find out Candidates’ performance on the Job both in Productivity and
Quality.
• But, the Current Focus should be on TQM, to bring a New Dimension into
Planning.
• Ability Testing should be based on Problem-Solving and Good at Teamwork,
during Selection.
• Selection should identify only the candidates who are good in Group Setting.

TRAINING & DEVELOPMENT:

• Training and Development are the major features of TQM.

• The Training should cover -

o a] Problem Solving Techniques

o b] Problem Analysis
o c] Statistical Process Control
o d] Quality Measurement
o e] Group Process
o f] Group Decision Making

All these training activities lead to development in specific Job Skill and
beyond.

Therefore, HR Department should ADD MORE VALUE to the focus on

Customer Satisfaction/Customer Service during Training.

CAREER DEVELOPMENT

o Most organization support Linear Careers (Ladder Systems of Hierarchy).

 o But, for TQM, different focus required.
o What are they?
o The Emphasis should gain/have:

o Expertise in particular function

o Also Cross/Multi-Functional Experience is required.
o Giving more Teeth
o Decision-Making Powers/Authority in the hand of the individuals
at Lower Levels.
o Function of Management as Open Book.

PERFORMANCE MANAGEMENT:

o Performance Appraisal is the basis of HRM.

o It is used to determine:

o Reward Levels
o To validate various Performance Tasks
o To aid Career Development
o To improve Communication
o To Facilitate Understanding of Job Duties.
o Most Quality Gurus opine against Individual Appraisal Practices.
o Deming argues that too much focus on individual would lead to counter-
production combined with Poor Quality.
o Hence, he wanted to scrap the Individual Performance Appraisal
System
o He underlines that “An ideal Performance Appraisal System can focus
strongly on Development Skills and Abilities to perform well and directly
support collective responsibility.

PAY SYSTEMS:
 - Most Pay Systems focus only on individuals.
- Job Description says as to what an individual is to do.
- Job Evluation mentions as to How much the Job is Worth.
- Merit Rating reflects as to How well the individual has done the job.

Indeed, there are direct and strong conflicts among the above said
Traditional Practices.

Therefore, TQM emphasizes on -

- Collective Responsibility
- Horizontal Relationship
- Horizontal Learning

Hence, Quality Management Programmes do not favour:

Individual based merit – increase system, but no alternatives suggested so

far.

INDUSTRIAL RELATIONS:

• The concept and experience of Industrial Relations has witnessed just the
opposite of the Concept of Shared Responsibility to produce High Quality
Products and Services. That is -
• Industrial Relations X Shared Responsibility.
• If the Agreement between the Trade Union and the Management revolves on
Contract Mentality, more care should be taken to assign specified Job, lest
the Management is accountable for all the problems and happenings, besides
paving unnecessary ways for Elaborate Grievance Procedures.
• This also results in little participation of Workers in Management and in
solving the problems, thus producing Weaker Solutions in the long run.
• But, TQM recognizes Union as Partners of Organisation Success.
• TQM regards Union as “Critical Players”.
 • TQM gives way to Union to assume responsibility for Quality Improvement.
• These factors create a Conducive Climate to employees to participate in
important discussions.
• Therefore, Partnership Mode should be maintained with the Trade Union to
succeed all TQM efforts by the Management by making considerable
changes in the activities of Collective Bargaining, Grievances Handling etc.

COMMUNICATION:

• It is known to everyone that there is no communication without information.

• Indeed “Information” is a versatile Commodity.
• Making Information Flow within the Organisation gives a Complex and
difficult task.
• Information and TQM are interlined or intertwined.
• Feedback about “Quality & Information” is a critical point to all Quality
Improvement Programmes.
• Open Flow of Information about Quality is to be shared throughout the
organization, contrary to the prevailing practice of Secret Information
about:-

- Performance Results
- Business Plans
- Major Changes in the Organisation etc.

It is very much essential for the employees to possess necessary

Communication Skills to receive the information, understand and Participate in
Problem Solving Activities.

SUM-UP:

1. Shared Responsibility [Philosophy]

2. Commitment & Rewards

 3. Increased Quality, Productivity and Customer Satisfaction
4. Employees’ Satisfaction and Loyalty.

[Sl.No.2 to 4 - Business Objectives]

5. Total Quality System with Continuous Improvement and across every

level. [Quality Objectives]

6. Open Book/Shared Book
7. Information on Profits, Productivity, Quality, Costs, Capital Spending
Plans

[ Sl.No.6 and 7 - Business Information Sharing]

8. Cutomers, All the employees, Stockholders – Major Constituents of the

Company.
9. Extensive [within and between] levels and functions - Quality As a
Way of Life
10.Employees’ Full Involvement in TQM.

WHAT IS BENCH-MARKING?

Benchmarking is simply the systematic process of comparing your business with

others, or parts of your own with one another to test as to how you stand and to see
whether any change is needed.

TOTAL QUALITY MANAGEMENT [TQM] - PART - II

GEMBA KAIZEN

• In Japanese Words, ‘GEMBA’ means ‘Work Place’ – the place where real
action occurs [OR] the place where products and services are formed.
• ‘Kaizen’ means ‘Continuous Improvement which involves everyone’ – i.e.
both Managers and Workers.
• In the Japan Industrial arena, both the Words are Most Popular.
• Managers at all levels can co-operate with the employees in the Gemba to
Improve Quality, to Reduce Cost, and to Satisfy Today’s Demanding
Customers.