Total Quality Management

Lecture 1

Dr. Mona Aboutaleb

 • Total Quality Management (TQM)
• Total Quality Management (TQM) is an organized approach to comprehensive organizational management.
The focus of the process is on improving the quality of the organization's outputs, including goods and
services, through continuous improvement of internal practices. The standards set as part of the TQM
approach may re ect internal priorities and any industry standards currently in place. The concept of
quality goes beyond product quality and encompasses service quality, communication quality, information
quality, individual quality, supervision and management quality, and the overall quality of the organization.

• Quality is de ned as the presence of characteristics and attributes in a product (goods, services, or ideas)
that satisfy the stated and unstated needs and expectations of the customer.

• The distinction between the expression of quality and the expression of Total Quality Management is
evident. The former (quality) refers to the quality of the product, while the latter (Total Quality Management)
refers to a contemporary management philosophy that aims to encompass the quality of performance in all
sectors, departments, and teams within the organization comprehensively. Quality is seen as a collective
responsibility across all levels and specialties, with continuous improvement being the cornerstone of this
management philosophy.
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 • The scholar Juran emphasized the role of top management in planning products and taking necessary steps to achieve their objectives. He identi ed the following key aspects:

• 1. De ning quality objectives.

• 2. Identifying the target customer.
• 3. Determining customer needs.
• 4. Specifying product features.
• 5. Determining process characteristics.
• 6. Identifying means of controlling processes.

• Juran also underscored the importance of:

• - Quality planning
• - Quality control
• - Quality improvement

• Quality control is simply evaluating the actual performance of production or service and comparing it to the targeted performance. Juran emphasized quality improvement through:
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• The fundamental principles of Total
Quality Management (TQM):
• In addition to enhancing the applied
• Total Quality Management is a process
that focuses on the customer and
emphasizes continuous improvement in
managing business operations. It strives
diligently to ensure the engagement of all
employees in the organization towards
achieving common goals for improving
the quality of the product or service.
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procedures for production, there are a
number of guiding principles that de ne
Total Quality Management. TQM is a
managerial approach that seeks long-
term success by consistently providing
customer satisfaction through the delivery
of high-quality information technology
services. To implement Total Quality
Management methods correctly, the
entire organization needs to work as one
unit in the pursuit of achieving excellence.
• And this is achieved through a focus on the principles of Total Quality Management:
• 1. **Customer Focus:**
• Under Total Quality Management, customers determine whether the products o ered to
them are of high quality or not. Customer inputs are highly valued as they allow the company
to understand their needs and requirements for better manufacturing processes. For example,
customer surveys may reveal insu cient durability in goods. These inputs are then
reintroduced into Total Quality Management systems to implement and obtain better sourcing
of raw materials, manufacturing processes, and quality control procedures.
• 2. **Customer First:**
• The primary and most signi cant focus for the success of Total Quality Management is the
constant emphasis on the customer experience in all interactions with the organization. From
the initial contact to purchase and ongoing support, the customer should always be the top
priority.
• 3. **Employee Commitment:**
• For Total Quality Management to succeed, employees must actively participate in the
processes and systems. This includes clear communication across departments and
leadership regarding goals, expectations, needs, and imposed constraints. Organizations
adopting Total Quality Management principles should be willing to train employees and
provide them with su cient resources to successfully accomplish tasks in a timely manner.
Total Quality Management also aims to reduce waste and retain skilled workers.
• The Total Quality Management approach heavily relies on process owcharts, Total Quality
Management plans, visual action plans, and documented work ow tasks. Each member along
the process should be aware and educated to ensure taking the appropriate steps in
production. These processes are continuously analyzed to better understand any
shortcomings, and Total Quality Management focuses on creating and implementing
processes that empower organizations to achieve and replicate success. Measuring success
and identifying the steps taken to reach it are essential for the successful implementation of
Total Quality Management.
• 6. **System Integration:**
• Total Quality Management strategies revolve around leveraging all available assets for the
company. This is achieved best through an integrated system that brings diverse parts of the
organization together into a well-functioning machine working in complete harmony.
• 7. **Communication:**
• Successful Total Quality Management practices require every team member to be at their
best and to work as a value-adding member in that team. This means that communication and
transparency are fundamental principles for successful Total Quality Management practices.
• 8. **Data Reliance:**
• Total Quality Management does not rely on guesswork. Instead, data is utilized to improve
the organization, and decisions are made based on quanti able, measurable facts.

• 9. **Continuous Improvement:**
• 4. **Employee Ownership:**
• Total Quality Management is not a nished process. Perfection is impossible, so there
• Total Quality Management requires the involvement of every team member to ensure should always be a continuous e ort to bring the organization as close to it as possible. These
complete quality control at every level. Total Quality Management does not focus on a single pillars of Total Quality Management serve as a framework for every decision made within the
department because the goal is to provide customers with an excellent experience at every methodology. When your organization feels lost, the principles of Total Quality Management
level of the organization. act as a guide to realign the path.

• 5. **Commitment to Processes:**
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 • **Continuous Improvement:** planning, and through the use and analysis of data, management can
understand whether these plans are being met.

• When a company learns more about its customers, processes, and

competition, it should gradually evolve and actively seek incremental • **Systems Integration:**
improvements. The concept of continuous improvement helps the company
adapt to changing market expectations and enhances its ability to adjust to
di erent products, markets, customers, or regions. Continuous
improvement not only drives and expands the competitive advantage built • One way to use data is by integrating systems. Total Quality Management
by the organization but also ensures long-term success. strategies emphasize that systems must integrate with each other, convey
useful information across departments, and make smart decisions. When
using goods or inventory in a particular area, another department should
have immediate access to Enterprise Resource Planning information. By
• **Methodology:** linking data sources and sharing information across systems, Total Quality
Management seeks to achieve its goals by informing individuals about
everything related to their work and promoting transparency.
• The company's operations and procedures must be a direct re ection of
the organization's vision, mission, and long-term plan. Total Quality
Management calls for a systematic approach to decision-making that • **Communication:**
requires the company to dedicate its e orts to integrating quality as a
fundamental element and making appropriate nancial investments to
achieve that.
• Although data may ow freely between departments, there is a human
element to coordinate operations and ensure that the entire production line
operates e ciently. Whether it's routine daily operations or signi cant
• **Data Utilization:** organizational changes, e ective communication plays a signi cant role in
Total Quality Management to motivate employees and members of the
organization throughout the process and avoid process errors.
• A systematic approach to Total Quality Management only works when
feedback and inputs are provided to evaluate how the work ow is
progressing. Management continuously relies on production metrics, • Successful Total Quality Management requires company-wide participation
turnover, e ciency, and employee data to link expected outcomes to actual in each of the principles mentioned above. If the company doesn't achieve
results. Total Quality Management heavily relies on documentation and full engagement, the bene ts of Total Quality Management quickly diminish.
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• **Advantages and Disadvantages of Total Quality Management (TQM):** • **Disadvantages:**

• **Advantages:** • 1. **Full Commitment Required:** To fully realize the bene ts of Total

• 1. **Cost Reduction:** When Total Quality Management plans are
implemented correctly, it results in the production of products at a lower
cost. By emphasizing quality and reducing waste, companies engaged in
Total Quality Management provide more consistent products, leading to
stronger customer loyalty.
• 2. **E ciency Gains:** As Total Quality Management a ects every
department across the organization, companies can reap signi cant
savings in resource areas such as materials, production, distribution, or
support functions. Companies successfully implementing Total Quality
Management can typically respond more quickly to change and plan swiftly
to avoid obsolescence.
Quality Management, the company must commit fully to the principles of
Total Quality Management. This requires substantial support from every
department across the organization. Achieving this level of commitment
can be challenging, requiring signi cant nancial investments and
involvement of all management levels in Total Quality Management.
• 2. **Lengthy Transition:** The transition to Total Quality Management may
take a long time, and employees may resist the change. The company may
need to replace processes, employees, equipment, or materials in favor of
an untested and partially developed Total Quality Management plan.
• 3. **Skill Misalignment:** Skilled workers may decide to leave the company
if they feel that Total Quality Management operations do not utilize their
skills appropriately.

• 3. **Customer Loyalty:** A strong focus on customer satisfaction in Total

Quality Management often leads to higher customer loyalty. Satis ed • 4. **Resistance to Change:** Employees may resist changes in processes
customers are more likely to repeat business and recommend the company or procedures introduced by Total Quality Management, leading to a slower
to others. adoption of new practices.

• 4. **Flexibility and Adaptability:** Total Quality Management enables • In conclusion, while Total Quality Management o ers numerous bene ts, its
companies to be more adaptable to change, making it easier to anticipate successful implementation requires a comprehensive and committed
and plan for future developments in the market. approach from all levels of the organization. The transition may face
challenges, and overcoming resistance to change is crucial for its success.
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• **Positives:**
• 1. Provides stronger and higher-
quality products for customers.
• 2. Leads to a reduction in costs
across the company.
• 3. Reduces waste throughout the
entire production and sales
process.
• 4. Enables the company to become
more adaptable.
• **Negatives:** • 3. May encounter resistance to
change.

• 4. Requires company-wide
• 1. May require signi cant nancial commitment to be successful.
investments to transition to Total
Quality Management practices.

• 2. Often necessitates a long-term

commitment for the transition to
Total Quality Management
practices.
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• Industries Using Total Quality Management (TQM)

• While Total Quality Management (TQM) originated in the manufacturing sector, its
principles can be applied to a diverse range of industries. By focusing on long-term
change rather than short-term goals, TQM provides a cohesive vision for systematic
improvement. Considering this, TQM is utilized in various industries, including, but not
limited to, manufacturing, banking and nance, and healthcare.

• These techniques can be applied across all departments within a private or public
organization. This helps ensure that all employees work toward the company's
speci ed goals, improving functionality in each area. Relevant departments may
include management, marketing, production, and employee training.
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 **What does Total Quality Management (TQM) do?**

• Total Quality Management oversees all the activities and tasks necessary to maintain the required level of excellence within businesses
and their operations. This includes de ning the quality policy, creating and implementing quality planning and assurance, and monitoring
quality along with quality improvement procedures.

• One of the most well-known examples of Total Quality Management is Toyota's implementation of the Kanban system. Kanban is a
physical signal that creates a sequential reaction resulting in a speci c action. Toyota utilized this concept to execute its just-in-time
inventory process.

• To make its assembly line more e cient, the company decided to maintain just enough inventory readily available to ful ll customer orders
as they were created. Thus, an actual card is assigned to each part on Toyota's assembly line with an associated inventory number.

• Before installing any part directly into the car, the card is removed and moved up the supply chain, e ectively requesting another piece of
the same part. This allows the company to maintain lean inventory and avoid excessive storage of unnecessary assets. In this way,
e ective Total Quality Management has led to the production of better cars that can be manufactured at reasonable prices.
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 **How to Implement Total Quality Management (TQM)**
• The rst step in implementing any new system is an honest assessment of the organization as it stands today. Implementing Total Quality Management (TQM) is something that needs to be applied to
the current structure of the organization; there is no detailed guide telling you how to do it. Each business is unique and requires its approach, but the fundamental principles of TQM can guide every
decision.

• Operational steps for implementation:

• 1. **Customer Satisfaction:**
• Focusing on customer satisfaction will change how departments view their duties. If something they do doesn't contribute to improving product quality or enhancing the customer experience, they
are not moving in the right direction. Every employee should take ownership of their role and be willing to explore ways they can improve their management and outputs.

• 2. **E ective Communication Across Everyone:**

• Communication throughout the organization is essential to educate everyone about the upcoming changes and provide a means for receiving feedback. As they say, communication is a two-way
street. Employees will feel much more ownership in the process when they know their voices are heard and they have a hand in guiding the changes.

• 3. **TQM is Everyone's Responsibility:**

• TQM requires everyone to take ownership of the role they play, and this applies equally to acknowledging mistakes and giving praise. Focusing on improving the quality of products and services
demands accountability. Tracking metrics and comparing process outcomes before and after changes is the best way to determine what works and what doesn't. It is also necessary to organize and
follow systems to ensure the ability to replicate success and then improve. The process of improvement should never stop, ensuring that the pursuit of perfection is ongoing.

• 4. **Ensuring Customer Satisfaction:**

• Total Quality Management works to maintain success by doing what is necessary to improve customer satisfaction. Naturally, this satisfaction stems from both employees and business operations -
long before any product or service reaches the customer.
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• **Total Quality Management Methodologies**

• The ability to deliver Total Quality Management (TQM) requires a methodology. There is no single way to
manage quality in a project. There are several approaches you can follow. Below are some of them.

• 1. **Six Sigma:**
• Six Sigma is another methodology for quality management focused on improving current processes,
products, or services. It does so by identifying and eliminating any defects to streamline quality control.

• 2. **ISO 9000:**
• ISO 9000 is a set of international standards that focus on quality management and assurance. It was created
to help companies document the quality system elements they need to maintain an e ective quality system.

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• **How to Implement Total Quality Management in Four Steps**
• Initiating Total Quality Management (TQM) requires top management to familiarize themselves with the methodology and commit to it as one of the
enterprise's strategies. The large organization should then assess customer satisfaction and quality management systems.

• One of the easiest ways to implement Total Quality Management is through the PDCA cycle. PDCA stands for Plan, Do, Check, and Act. It is a four-
step management method for controlling continuous improvement of processes and products.

• 1. **Plan:**
• Planning involves identifying and understanding the problem or opportunity concerning Total Quality Management. Based on the gathered
information, innovate new ideas, develop for the better, and plan for implementation.

• 2. **Do:**
• With the planned solution, you can now test it and create a pilot program to see if you achieve the quality improvements you anticipated. Document
the results.

• 3. **Check:**
• Here, you will analyze the results of the pilot program against what you expected to achieve. If you have met these criteria, move on to the next
step. However, if you fall short, you need to go back to step one.

• 4. **Act:**
• Once testing is complete and satisfaction with the solution is established, it can be implemented on a broader scale. This process is a loop;
however, it has no de nite beginning or end. Success is merely the new foundation that will be tested for improvement again.
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