TOTAL QUALITY MANAGEMENT AND

BENCHMARKING
- TQM HAS EVOLVED FROM THE QUALITY
ASSURANCE METHODS THAT WERE FIRST
DEVELOPED AROUND THE TIME OF THE
FIRST WORLD WAR.
- THE WAR EFFORT LED TO LARGE SCALE
MANUFACTURING EFFORTS THAT OFTEN
PRODUCED POOR QUALITY.
- QUALITY INSPECTORS WERE
INTRODUCED ON THE PRODUCTION LINE
TO ENSURE THAT THE LEVEL OF FAILURES
DUE TO QUALITY WAS MINIMIZED.
Origin of TQM
- AFTER THE FIRST WORLD WAR, THE
STATISTICAL QUALITY CONTROL WAS
INTRODUCED. A THEORY DEVELOPED BY
DR. W. EDWARDS DEMING.
- AFTER WORLD WAR TWO, THE
INDUSTRIAL MANUFACTURERS IN JAPAN
PRODUCED POOR QUALITY ITEMS.
- BY THE 1950S QUALITY CONTROL
WAS AN INTEGRAL PART OF JAPANESE
MANUFACTURING.
- BY THE 1970S, THE NOTION OF
TOTAL QUALITY WAS BEING DISCUSSED.

WHAT IS TQM?

*A philosophy that says that uniform
commitment to quality in all areas of an
organization promotes an organizational
culture that meets consumers perceptions of
quality.

*An improvement program which provides
tools and techniques for continuous
improvement based on facts and analysis;
and if properly implemented, it avoids
counterproductive organizational infighting.

*An approach that seeks to improve
quality and performance which will
meet or exceed customer expectations.

*It looks at the overall quality measures
used by a company including managing
quality design and development, quality
control, and maintenance, quality
improvement, and quality assurance.

*It takes into account all quality
measures taken at all levels and
involving all company employees.
CHARACTERISTICS OF TQM
-A focus on serving customers
-Systematic problem solving
teams made up of front line
workers.
BENEFITS OF TQM
-Lower costs
-Higher returns on sales and
investments
-Ability to charge higher rather
than competitive prices
-Improved access to global
markets
-Higher customer retention
levels
BENEFITS OF TQM
-Less time required to develop
new innovations
-A reputation as a quality firm
PRINCIPLES OF TQM
-Be customer focused
-Insure total employee
involvement
-Process centered
-Integrated system
-Strategic and systematic
approach
-Continual improvement

PRINCIPLES OF TQM
-Fact based decision making
-Communication

COST OF TQM
-Prevention costs
-Appraisal costs
-Failure costs
-External failure costs
ADVANTAGES OF TQM
-Improves reputation faults
and problems are spotted and
sorted quicker
-Higher employee morale
-Lower costs
-Quality control inspectors
DISADVANTAGES OF TQM
-Initial introduction costs
-Benefits may not be seen for
several years
-Workers may be resistant to
change
WHAT IS BENCHMARKING?
-Is a reference or measurement
standard used for comparison.
-It is the continuous activity of
identifying, understanding and
adapting best practice and
processes that will lead to
superior performance.
BENCHMARKING MEASURES:
-Organizations product,
services and processes
-Establish targets
-Priorities and improvements
-Leading to competitive
advantage and/or cost
reductions
BENEFITS OF BENCHMARKING:
-Creating a better understanding
of the current position
-Increasing awareness of changing
customer needs
-Encouraging innovation
-Developing realistic, stretching
goals
-Establishing realistic action plans
BASIC TYPES OF BENCHMARKING
-Internal
-Competitive
-Functional
-Generic