TOTAL QUALITY MANAGEMENT (TQM)

A TECHNICAL SEMINAR REPORT

Submitted by

MUTHU M (611220114026)

in partial fulfillment for the award of the degree

of

BACHELOR OF ENGINEERING

IN

MECHANICAL ENGINEERING

KNOWLEDGE INSTITUTE OF TECHNOLOGY, SALEM

(An Autonomous Institutions)

ANNA UNIVERSITY: CHENNAI 600 025

NOVEMBER 2023
Abstract:
“A service is any act of performance that one party can offer to another party that is essentially Not
tangible and will never result in the ownership of anything”. The service sector in India is growing at a very fast
rate. In the present competitive business scenario, companies are offering a wide range of services to the
customers and seeking to develop a reputation by superior performance in service delivery and customer
satisfaction. Product and service quality, customer satisfaction and company profitability are well connected. In
order to increase the customer satisfaction, companies are moving towards adopting total quality management
principles. Total Quality Management (TQM) is an organization-wide approach for improving the quality of all
the organization’s processes, products and services. Originally it was developed for manufacturing industry.
Today, the service industry requires effective implementation of TQM process since services are given to
consumers as soon as they are produced by the provider. The primary goal of this paper is to decide the
applicability of total quality management in service marketing. This paper will allow the user to rocognise what
is service marketing and what is the need of total quality management in it? This paper is including various
instances of service sector companies which are implementing or seeking to implement the notion of total quality
management in their business. In the end, this paper will conclude the pros & cons of implementing TQM in
service marketing. Total quality management is extremely necessary for the different organizations thus the
issues which are directly or indirectly related with total quality management are included in this paper.

Keywords:Quality,service,Manageme

2
Introduction:
Today, the companies are operating in a highly competitive and very fastly changing world hence it has
become very complicated for them to maintain a stable relationship with their customers without providing them
desired quality and unremitting satisfaction. The Indian service sector is growing with a very fast speed as
compared to agriculture and manufacturing sector and has a significant contribution in the nation’s economy.
Service sector covers education, banking, retail, insurance, healthcare, tourism, consultancy services, hospitality,
etc. Typically, the output of the service sector is in the form of intangible goods. In recent years, the notion of
service marketing has been evolved in accordance with the philosophy of customer orientation. The very fast
development of service sector has led the companies to reap the crops of profitability by providing quality
services to their customers. The notion of service marketing is not completely similar to the notion of product
marketing. There are various factors such as intangibility, inseparability, perishability, heterogeneity, etc. makes
service marketing different from product marketing.

Objectives:
DIMENSIONS OF QUALITY are Performance, Features, Reliability and Serviceability. All the
dimentions mentioned here should be taken care of while dealing with total quality management of the Indian
organizations. Nowadays, customers are educated and aware enough to verify companies’ claims and service
quality. Product and service quality, customer satisfaction and company profitability are closely related with each
other. In order to increase customer satisfaction, companies are moving towards adopting total quality
management principles. Total Quality Management (TQM) is an organization-wide approach for improving the
quality of all the organization’s processes, products and services. Initially, it was developed for manufacturing
industries. The approach of Total Quality Management seeks to improve quality and performance to meet
continuously changing consumer requirements. The core notion of TQM is to achieve long-term success through
customer satisfaction. There are various notions and tools such as control charts, flowcharts and fishbone
diagram, which are directly applied to the service industry for monitoring service quality and to observe and
analyse the root causes of specific problems. This paper is based on secondary data collected from various
sources

3
TQM PRINCPLE:

Total Quality Management (TQM) is a comprehensive approach to managing an organization's quality

and continuous improvement efforts. It encompasses a set of principles and practices aimed at achieving
excellence in all aspects of an organization's operations. Here are the core principles of TQM:

1. Customer Focus:

•The primary focus of TQM is meeting and exceeding customer expectations. Organizations should understand
customer needs, preferences, and feedback and strive to deliver products or services that satisfy those
requirements.

2. Leadership:

•Effective leadership is essential for the successful implementation of TQM. Leaders at all levels of the
organization should provide vision, direction, and a commitment to quality. They should also lead by example
and encourage employee involvement.

3. Employee Involvement:

•TQM emphasizes the importance of involving all employees in quality improvement efforts. Employees are
encouraged to participate in problem-solving, decision-making, and continuous improvement activities. Their
knowledge and expertise are valuable assets.

4. Continuous Improvement:

•TQM is based on the belief that there is always room for improvement. Organizations should continually strive
to improve processes, products, and services. Continuous improvement often involves the use of tools and
methodologies such as Six Sigma, Lean, and the Plan-Do-Check-Act (PDCA) cycle.

5. Process Approach:

•TQM encourages organizations to view their activities as interconnected processes. Understanding and
optimizing these processes are critical to achieving consistent quality and efficiency.

6. Systematic Approach to Management:

•TQM promotes a systematic and data-driven approach to decision-making. Organizations should use data and
facts to make informed decisions and continuously monitor performance.

4
7. Factual Approach to Decision Making:

•Decisions should be based on objective data and analysis rather than gut feelings or assumptions. TQM
encourages the collection and analysis of data to drive decision-making.

8. Supplier Relationships:

•Organizations should work closely with their suppliers to ensure the quality of inputs and materials. Strong
supplier relationships can contribute to overall quality and performance.

9. Mutually Beneficial Supplier Relationships:

•TQM promotes collaboration and mutually beneficial relationships with suppliers. Both parties should work
together to improve quality, reduce costs, and enhance efficiency.

10. Public Responsibility:

•TQM encourages organizations to consider their social and environmental responsibilities. This includes ethical
business practices, environmental sustainability, and giving back to the community.

These principles are the foundation of TQM and guide organizations in their pursuit of excellence, quality, and
continuous improvement. By adhering to these principles, organizations can create a culture of quality, improve
customer satisfaction, reduce defects and waste, and achieve long-term success in a competitive market

5
TQM DIAGRAM:

TQM diagram

6
References
1. Armand Fiegen Baum Total Quality
Management, third edition, Pearson
Education, Inc. Delhi,
2005
2. Burton, Gummer et al., TQM and
organizational change and development
rock field college press,
Albany, New York, 1999
3. Baisya, R.K and Sarkar, r.
(2004)”customer satisfaction in service
sector; a case study of the airline
industry”, journal of advances in
management research, vol.1 No.2, pp.32-
45
4. C.K., Duffy, V.G. and shih, H.M.
(2001) “ Total Quality Management :
an empirical test for
mediation effect”, international journal of
production R&S, vol.39 No3, pp.529-48
7
5. Dalu, R.S. and Deshmuk, S.G.
(2000) “An exploratory study of
quality management practices in
small and medium scale industry”,
industrial engineering journal , vol.29
no12, pp.21-7
6. Heizer, J.and Nathan, j. total quality
management manufacturing and
services, company culture,”
the TQM magazine, vol.18, no.3 pp.263-
88
7. Jaideep Motwani, Sameer Prasad,
jasmine Tata, “the evolution of TQM :
an empirical analysis
using the business process change
framework, journal : the TQM
Magazine, Year: Feb 2005
volume: 17 Issue:1 page:54-66
8. Lindsay, William,” total quality and
organization development”, St. Lucie
press, USA, 1992
8
9. Oakland Managing Quality, 2nd
Edition, Prentice Hall, 1994
10. Rajasekhara Swamy, an empirical
study of total quality management TQM
practices in Indian Tyre
industry” Unpublished Ph.D thesis
submitted to faculty of commerce,
university of Mysore, 2007.
11. Sunders et.al, Managing Quality, 2nd
Edition, Prentice Hall, 1994
References
1. Armand Fiegen Baum Total Quality
Management, third edition, Pearson
Education, Inc. Delhi,
2005
2. Burton, Gummer et al., TQM and
organizational change and development
rock field college press,
Albany, New York, 1999

9
3. Baisya, R.K and Sarkar, r.
(2004)”customer satisfaction in service
sector; a case study of the airline
industry”, journal of advances in
management research, vol.1 No.2, pp.32-
45
4. C.K., Duffy, V.G. and shih, H.M.
(2001) “ Total Quality Management :
an empirical test for
mediation effect”, international journal of
production R&S, vol.39 No3, pp.529-48
5. Dalu, R.S. and Deshmuk, S.G.
(2000) “An exploratory study of
quality management practices in
small and medium scale industry”,
industrial engineering journal , vol.29
no12, pp.21-7
6. Heizer, J.and Nathan, j. total quality
management manufacturing and
services, company culture,”
10
the TQM magazine, vol.18, no.3 pp.263-
88
7. Jaideep Motwani, Sameer Prasad,
jasmine Tata, “the evolution of TQM :
an empirical analysis
using the business process change
framework, journal : the TQM
Magazine, Year: Feb 2005
volume: 17 Issue:1 page:54-66
8. Lindsay, William,” total quality and
organization development”, St. Lucie
press, USA, 1992
9. Oakland Managing Quality, 2nd
Edition, Prentice Hall, 1994
10. Rajasekhara Swamy, an empirical
study of total quality management TQM
practices in Indian Tyre
industry” Unpublished Ph.D thesis
submitted to faculty of commerce,
university of Mysore, 2007.
11
11. Sunders et.al, Managing Quality, 2nd
Edition, Prentice Hall, 1994
References
1. Armand Fiegen Baum Total Quality
Management, third edition, Pearson
Education, Inc. Delhi,
2005
2. Burton, Gummer et al., TQM and
organizational change and development
rock field college press,
Albany, New York, 1999
3. Baisya, R.K and Sarkar, r.
(2004)”customer satisfaction in service
sector; a case study of the airline
industry”, journal of advances in
management research, vol.1 No.2, pp.32-
45
4. C.K., Duffy, V.G. and shih, H.M.
(2001) “ Total Quality Management :
an empirical test for
12
mediation effect”, international journal of
production R&S, vol.39 No3, pp.529-48
5. Dalu, R.S. and Deshmuk, S.G.
(2000) “An exploratory study of
quality management practices in
small and medium scale industry”,
industrial engineering journal , vol.29
no12, pp.21-7
6. Heizer, J.and Nathan, j. total quality
management manufacturing and
services, company culture,”
the TQM magazine, vol.18, no.3 pp.263-
88
7. Jaideep Motwani, Sameer Prasad,
jasmine Tata, “the evolution of TQM :
an empirical analysis
using the business process change
framework, journal : the TQM
Magazine, Year: Feb 2005
volume: 17 Issue:1 page:54-66
13
8. Lindsay, William,” total quality and
organization development”, St. Lucie
press, USA, 1992
9. Oakland Managing Quality, 2nd
Edition, Prentice Hall, 1994
10. Rajasekhara Swamy, an empirical
study of total quality management TQM
practices in Indian Tyre
industry” Unpublished Ph.D thesis
submitted to faculty of commerce,
university of Mysore, 2007.
11. Sunders et.al, Managing Quality, 2nd
Edition, Prentice Hall, 1994
PDCA CYCLE:

14
 PDCA cycle diagram

One of the easiest methods to implement TQM is called PDCA. PDCA stands for Plan, Do, Check and
Act. It’s a four-step management method to control the continuous improvement of processes and
products.

1. Plan
Planning includes identifying and understanding the problem or opportunity as it relates to TQM. From the
information you’ve gathered, come up with ideas and develop the best into an implementation plan.

2. Do
With a planned solution, you can now test it and build a pilot program to see if you achieve the quality
improvements you expected. Document the results.

3. Check
Here you’ll analyze the results of your pilot program against what you expected to achieve. If you’ve met
those criteria move on to the next step. However, if you’ve fallen short, then you need to return to step
one.

15
4. Adjust
Once you’ve tested and are satisfied with the solution, you can implement it at full scale. This process is a
loop, however, with no beginning or end. The success is only the new baseline of which you’ll again test
to improve.

The need for active management participation is critical to the success of any total quality management
plan. This is done by creating steering committees to make sure everyone is working together to improve
quality.

There is also the formation of ad hoc cross-functional teams that are responsible for addressing the
immediate process issues. There are also standing cross-functional teams that have similar responsibilities,
only those are over the long term.

Advantages of TQM:

Improved Product and Service Quality: TQM focuses on meeting or exceeding customer
expectations, leading to higher-quality products and services.

Customer Satisfaction: By emphasizing customer needs and feedback, TQM helps in creating
16
products and services that better align with customer preferences, leading to higher levels of satisfaction.

Enhanced Efficiency: TQM encourages streamlining of processes, reducing waste, and improving
operational efficiency, which can lead to cost savings.

Employee Involvement: TQM emphasizes involving employees at all levels in the decision-making
process, which can lead to increased employee engagement and motivation.

Continuous Improvement: TQM promotes a culture of continuous improvement, where employees

are encouraged to identify and solve problems, resulting in ongoing enhancements to the organization's
operations.

Increased Profitability: Improved quality, efficiency, and customer satisfaction can lead to increased
market share and profitability.

Stronger Reputation: Consistently delivering high-quality products and services can enhance an
organization's reputation and brand image.

Disadvantages of TQM:

Resource Intensive: Implementing TQM can require significant investments of time, money, and
human resources.

Resistance to Change: Employees and management may resist the changes that come with TQM
implementation, as it often involves new processes and ways of working.

Complexity: TQM systems can become overly complex, with numerous quality control procedures
and documentation requirements.

Measurement Challenges: Measuring the impact of TQM can be difficult, as the benefits may not be
immediately apparent, and there may be multiple factors influencing outcomes.

Potential for Misinterpretation: Misunderstanding or misinterpretation of TQM principles can lead

to ineffective implementation and wasted efforts.

Overemphasis on Metrics: In some cases, organizations may focus too heavily on quantitative
metrics at the expense of other important factors like innovation and creativity.

Cultural Resistance: TQM may clash with an organization's existing culture and values, leading to
conflicts and challenges in implementation.

Conclusion:

Total Quality Management has been widely applied in developed countries and now many companies
of developing countries are also seeking to implement it. TQM is a very powerful technique to explore
employee potential and creativity and improving service to clients and the society. Similar to the
17
manufacturing sector, TQM also help the service marketing firms to continuously improve the quality of
services given through the involvement of all levels and functional areas of management. The major
driving force behind the implementation of TQM in service marketing is competitive pressures, customer
expectations for quality and desire of costreduction.Service marketing is generally labour intensive and
the employees of service marketing firms come directly in contact to the customers. The essentials of
quality service delivery are teamwork, cooperation and motivation. The service marketing firms can
increase customer satisfaction if they can have friendly and courteous employees offering quality services
to the customers. Thus, it can be derived that the implementation of various quality measures such as Total
Quality Management are very helpful in the very fast development of customer satisfaction and
organizational profitability in service marketing

18