DEFINING

TOTAL QUALITY
MANAGEMENT
• Totalquality management ( TQM) is an approach to business that
looks systematically at the products and services an organization
offers in relation to the processes it uses to produce them. It also
focuses on the workforce to ensure that results completely meet
customer requirements. Customer expectations are regularly met or
surpassed by companies that implement the TQM strategy.
• TQM is a management strategy aimed at embedding awareness of
quality in all organizational processes.
• TQM is a process of managing quality, it must be a continuous way of
life; a philosophy of perpetual improvement of everything we do.
• TQM is a management approach for an organization, centered on
quality, based on the participation of all its members and aiming at
long term success through customer satisfaction, and benefits to all
members of the organization and society.
 Core Concepts of TQM
1. Customer Satisfaction
- TQM is centered on the requirements of the customer. In order to
meet customer requirements, it is imperative to listen to them and
do what is agreed upon.

2. Internal Customer Satisfaction

- It is essential to attain a successful internal
working relationship in order to satisfy the
needs of the external customer.
 Core Concepts of TQM

3. All Work is Process

A process is a combination of methods, materials,
-
manpower and machines that work collectively to produce a
product or service.

4. Measurement
In order to improve, one must first measure one’s
-

present performance. This will help one focus both

on satisfying internal customers and meeting the
requirements of external customers.
 Seven Generic Ways in which
quality of output can be measure
a. Defects – work does not meet specifications
b. Rework – work requiring correction
c. Scrap – work thrown away
d. Lost items – work done again
e. Backlogs – work behind schedule
f. Late deliveries – work after agreed time
g. Surplus items – work not required
 Core Concepts of TQM

5. Synergy in Teamwork
- Teamwork can provide opportunities for people to work
together to reach quality improvement.

6. People Make Quality

Managers are required to ensure that all
-

necessary measures are prepared to let people

to produce quality.
 Core Concepts of TQM
7. Continuous Improvement Cycle
- The continuous cycle in measuring success and continuing the
improvement can be used both externally and internally to
stimulate quality improvements.

8. People Make Quality

The continuous cycle of instituting customer
-

requirements, meeting and measuring them, measuring

success and continuing the improvement can be used
both externally and internally to stimulate quality
improvements.
 Core Concepts of TQM
9.Prevention
- At the heart of TQM is the conviction that it is
possible to achieve defect-free work most of the
time. This is termed “do the right things, right the
first time, every time” or “zero defects”. This
policy is the result of an emphasis on prevention,
and the diligent use of measurements, process
controls and the data-driven elimination of waste
and error.
 TQM and Reengineering
-Reengineering is also called Business
Process Reengineering (BPR), which involves
a complete rethinking and transformation of
key business processes leading to strong
horizontal coordination and greater flexibility
in responding to changes in environment.
 TQM and Reengineering
Reengineering basically means starting over-throwing out all the thinking of how work was done and
deciding how it can best be done . It entails identifying customer needs then designing processes and
supporting people to meet those needs.

The essential difference between BPR and TQM is that, reengineering aims at quantum or major
gains on the order of 30% to 50% or more, whereas TQM programs stress incremental progress,
striving for inch-by-inch gains again and again.

TQM and Reengineering are not mutually exclusive, but it makes sense to use them in tandem.
Reengineering can be used to first produce good basic design that will improve a business process.
Total quality programs can be used to work out bugs, perfect the processes, and gradually improve
both efficiency and effectiveness.

TQM is the way of achieving the objective of “total quality”. The techniques used for continuous
improvement and process reengineering are the tools of TQM.
 QUIZ No. 2

VENN DIAGRAM CHART

Construct a Venn diagram placing characteristics of traditional management in one
circle, characteristics of TQM in the other, and shared characteristics in the
overlapping section.

Differences

Characteristics Characteristics
of Traditional Similarities of TQM
Management
Assignment:

•Outline the similarities and differences

between Reengineering and Total
Quality Management (TQM) by
enumerating as many as possible.