TOTAL QUALITY

MANAGEMENT

Delivered by:

SHAZAREL BIN SHAMSUDIN

shazarel@uthm.edu.my
 Total Quality Management

• Total Quality Management (TQM) is an enhancement to the

traditional way of doing business.
• It is a proven technique to guarantee survival in world-class
competition.
• Only by changing the actions of management will the culture
and actions of an entire organization be transformed.
• TQM is defined as both a philosophy and a set of guiding
principles that represent the foundation of a continuously
improving organization. It is the application of quantitative
methods and human resources to improve all the processes
within an organization and exceed customer needs now and
in the future. TQM integrates fundamental management
techniques, existing improvement efforts, and technical tools
under a disciplined approach.
 New and Old Cultures

Quality Element Previous State TQM

Definition Product-oriented Customer-oriented
Priorities Second to service and cost First among equals of service
and cost
Decisions Short-term Long-term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality control Everyone
Problem Managers Teams
Solving
Procurement Price Life-cycle costs
Manager's Role Plan, assign, control, and Delegate, coach, facilitate,
enforce and mentor
TQM requires six basic concepts:

• A committed and involved management to provide long-term

top-to-bottom organizational support.
• An unwavering focus on the customer, both internally and
externally.
• Effective involvement and utilization of the entire work force.
• Continuous improvement of the business and production
processes.
• Treating suppliers as partners.
• Establishing performance measures for the processes.

The purpose of TQM is to:

- Provide a quality product to customers

- Increase productivity and lower cost.
- With a higher quality product and lower price, competitive
position in the marketplace will be enhanced.
- Allow the organization to achieve the business objectives of
profit and growth with greater ease.
- Work force will have job security, which will create a satisfying
place to work.
 Total Quality Management
• Requires cultural change – prevention not detection, pro-active
versus fire-fighting, life-cycle costs not price, etc.
• Many companies will not start this transformation unless faced with
disaster/problems or forced by customers
Examples of the Scope for
TQM activity
1. LEADERSHIP

• Quality is the responsibility of everyone in the corporation,

especially the Chief Executive Officer (CEO).
• When a commitment to quality is made, it becomes part of
the corporation's business strategy and leads to enhanced
profit and an improved competitive position.
• To achieve never-ending quality improvement, the CEO must
be directly involved in the organization and implementation
of the quality improvement activity.
• The entire management team needs to become leaders.
• Leadership is essential during every phase of the
implementation process and particularly at the start.
• In addition to formal education, managers should visit
successful TQM organizations, read selected articles and
books, and attend seminars and conferences.
The most important aspect of management commitment is the
involvement by the CEO. This involvement can be achieved by:
• Chairing or participating in the quality council
• Chairing or participating in the ISO 9000 team
• Coaching project teams / Quality Control Circles (QCC)
• MBWA (Management By Walking Around)
• Presiding at recognition ceremonies
• Writing a column in the newsletter
• Spending 1/3 of time on quality
• Periodically meeting with all employees
The quality council is established to provide overall direction. It is
the driver for the TQM engine. In general the duties of the council
are to:

• Develop, with input from all personnel, the core values, vision
statement, mission statement, and quality policy statement.
• Develop the strategic long-term plan with goals and the annual
quality improvement program with objectives.
• Create the total education and training plan.
• Determine and continually monitor the cost of poor quality.
• Determine the performance measures for the organization,
approve those for the functional areas, and monitor them.
• Continually determine those projects that improve the
processes, particularly those that affect external and internal
customer satisfaction.
• Establish multifunctional project and departmental or work
group teams and monitor their progress.
• Establish or revise the recognition and reward system to
account for the new way of doing business.
Once the TQM program is well established, a typical meeting
agenda might have the following items:

• Progress report on teams

• Customer satisfaction report
• Progress on meeting goals
• New project teams / Quality Control Circle (QCC)
• Recognition dinner
• Benchmarking report
 2. CUSTOMER SATISFACTION

• Companies should strive to maintain customers for life.

• TQM implies an organizational obsession with meeting or
exceeding customer expectations, to the point that customers
are delighted.
• Understanding the customer's needs and expectations is
essential to winning new business and keeping existing
business.
• An organization must give its customers a quality product or
service that meets their needs: a reasonable price, on-time
delivery, and outstand-ing service.
• To attain this level, the organization continually needs to
examine its quality system to see if it is responsive to ever-
changing customer requirements and expectations.
The following checklist can be used to improve the
satisfaction of both internal and external customers:

• Who are my customers?

• What do they need?
• What are their measures and expectations?
• What is my product or service?
• Does my product exceed expectations?
• How do I satisfy their needs?
• What corrective action is necessary?
• Are customers included on teams?
Internal Customer Vs External Customer
Assignment/ Exercise…

Explain about the internal and external customers

according to the following items:

a) Who are the internal/external customers?

b) What are the products/services provided to them?
c) What are the factors that will be considered to judge the
quality of the products/services?
 3. EMPLOYEE INVOLVEMENT

• No resource is more valuable to an organization than its

people.
• Dr. Deming has estimated that only 15% of the quality
problems of an organization are due to local faults (operators
and first-line supervisors). The rest (85%) are due to the system
(management).
• Involving people in a quality-improvement program is an
effective technique to improve the quality.
• Management commitment, annual quality improvement,
education and training, project teams / Quality Control Circle
(QCC), suggestion system and so forth, are all effective in
utilizing the human resources of an organization.
• People must come to work not only to do their jobs, but also
to think about how to improve their jobs.
• People must be empowered to perform processes in an
optimum manner at the lowest possible level.
 4. CONTINUOUS IMPROVEMENT (KAIZEN)

• It is ongoing improvement involving everyone, including both

managers and workers.
• The KAIZEN philosophy assumes that our way of life - deserves
to be constantly improved.
• The starting point for improvement is to recognize the need.
This comes from recognition of a problem. If no problem is
recognized, there is no recognition of the need for improvement.
• KAIZEN emphasizes problem-awareness and provides clues for
identifying problems. Once identified, problems must be solved.
Thus KAIZEN is also a problem-solving process. In fact, KAIZEN
requires the use of various problem-solving tools.
• Improvement reaches new heights with every problem that is
solved. In order to consolidate the new level, however, the
improvement must be standardized. Thus KAIZEN also requires
standardization.
We continuously improve by:

• Viewing all work as a process, whether it is associated with

production or business activities.
• Making all our processes effective, efficient, and adaptable.
Anticipating changing customer needs.
• Controlling in-process performance using measures such as
scrap reduction, cycle time, control charts, etc.
• Eliminating waste and rework wherever it occurs.
• Investigating activities that do not add value to the product or
service, with the aim of eliminating those activities.
• Eliminating nonconformities in all phases of everyone's work,
even if the increment of improvement is small.
• Using benchmarking to improve competitive advantage.
Innovating to achieve breakthroughs.
• Using technical tools such as statistical process control (SPC),
experimental design, benchmarking, etc.
 5. SUPPLIER PARTNERSHIP

• On the average, 40% of production cost is due to purchased

material; therefore, supplier management is extremely important.
• In order for both parties to succeed and their business to grow, a
partnership is required. The supplier should be treated as an
extension of the production process. They will need to work
together to achieve quality improvement.
• The supplier should make a positive contribution to design,
production, and cost reduction. Emphasis should be placed on the
total material cost, which includes both price and quality cost.
• The supplier should be given a long-term relationship and
purchase contract.
• Single sourcing with a large contract will create better quality at
a lower cost, but delivery disruption is possible.
• In order to reduce inventories, many companies are using Just-In-
Time (JIT). The supplier quality must be excellent, and the
supplier must reduce the set-up time.
Supplier management activities include:

• Define the product and program

requirements
• Evaluate potential suppliers and select
the best
• Conduct joint quality planning and
execution
• Require statistical evidence of quality
• Certify suppliers or require ISO 9000
registration
• Conduct joint quality improvement
programs
• Create and utilize supplier ratings
 6. PERFORMANCE MEASURES

• Effective management requires information obtained from

the measurement of activities.
• Performance measures are necessary: as a baseline, to
identify potential projects; to justify project resource
allocation; and to assess the improvement results.
• Production activities use measures such as defects per
million, inventory turns, and on-time delivery. Service
activities use measures such as billing errors, sales per
square feet, engineering changes, and activity time.
• There are many methods and each has its place in the
organization.
THANK YOU..