Total Quality Management - TQM

Standards in Action
www.bsieducation.org/standardsinaction
Total Quality Management - TQM
The quality journey continues..

Author:
Dr Rhys Rowland-Jones

Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
Session Plan
Introduction to concepts of TQM
Standards and TQM
TQM Reasons for failure
Measurement of Quality


Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
Total Quality Management
TQM is a philosophy which applies equally to all parts of the
organization.
TQM can be viewed as an extension of the traditional approach
to quality.
TQM places the customer at the forefront of quality decision
making.
Greater emphasis on the roles and responsibilities of every
member of staff within an organization to influence quality.
All staff are empowered.
Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
Total Quality Management
Doing things right..




.FIRST time.
Internetix (2005)
Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
British Standards on TQM
BS 7850-1:1992
Total quality management.
Guide to management principles.

BS 7850-2:1994,

ISO 9004-4:1993
Total quality management. Guidelines for quality
improvement.

Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
Elements of TQM
Leadership
Top management vision, planning and support.
Employee involvement
All employees assume responsibility for the quality of their work.
Product/Process Excellence
Involves the process for continuous improvement.

Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
Elements of TQM
Continuous Improvement
A concept that recognizes that quality improvement is a journey
with no end and that there is a need for continually looking for new
approaches for improving quality.
Customer Focus on Fitness for Use
Design quality
Specific characteristics of a product that determine its value in the
marketplace.
Conformance quality
The degree to which a product meets its design specifications.

Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
A fundamental concept of TQM
from BS 7850 - a Process
A set of inter-related resources and activities which
transform inputs into outputs. (ISO 8402).
Any activity that accepts inputs, adds values to these
inputs for customers, and produces outputs for these
customers. The customers may be either internal or
external to the organization. (BS 7850)
Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
Controls
Process
Outputs Inputs
Resources
"The Simple Process"
(Source: BS 7850: 1992, Total Quality Management)
Total Quality Management - TQM
Standards in Action
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Changing Role of the Process Owner

As customer
Process owner
As customer As supplier
Process owner
As supplier
Process 1
Process 1
Input Output
Output to
customer
Input from
supplier
(Source: BS 7850: 1992, Total Quality Management)
Total Quality Management - TQM
Standards in Action
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TQM & organizational Cultural Change
Traditional Approach
Lack of communication
Control of staff
Inspection & fire fighting
Internal focus on rule
Stability seeking
Adversarial relations
Allocating blame
TQM
Open communications
Empowerment
Prevention
External focus on customer
Continuous improvement
Co-operative relations
Solving problems at their roots
Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
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Gap
Perceived quality
is poor
Perceived quality is
good
Expectations >
perceptions
Expectations =
perceptions
Expectations <
perceptions
Perceived quality is governed by the gap between customers
expectations and their perceptions of the product or service
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Gap
Source: Slack et al. 2004
Total Quality Management - TQM
Standards in Action
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Additional views of Quality in Services
Technical Quality versus Functional Quality
Technical quality the core element of the good or service.

Functional quality customer perception of how the good functions or
the service is delivered.

Expectations and Perceptions
Customers prior expectations (generalized and specific service
experiences) and their perception of service performance affect their
satisfaction with a service.

Satisfaction = (Perception of Performance) (Expectation)

Total Quality Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
Customers
expectations
concerning a
product or service
Customers
perceptions
concerning the
product or service
Previous
Experience
Word of mouth
communications
Image of product
or service
Customers own
specification of
quality
Managements
concept of the
product or service
organizations
specification of
quality
The actual product
or service
Gap 1
Gap 2
Gap 3
Gap 4
A Gap model
of Quality
Source: Parasuraman, Zeithman and Berry. 1985
Total Quality Management - TQM
Standards in Action
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Continuous Improvement
Philosophy that seeks to make never-ending
improvements to the process of converting inputs into
outputs.
Kaizen: Japanese
word for continuous
improvement.
Total Quality Management - TQM
Standards in Action
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Implementing TQM
Successful Implementation of TQM
Requires total integration of TQM into day-to-day operations.

Causes of TQM Implementation Failures
Lack of focus on strategic planning and core competencies.
Obsolete, outdated organizational cultures.

Total Quality Management - TQM
Standards in Action
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Obstacles to Implementing TQM
Lack of a company-wide definition of quality.
Lack of a formalized strategic plan for change.
Lack of a customer focus.
Poor inter-organizational communication.
Lack of real employee empowerment.
Lack of employee trust in senior management.
View of the quality program as a quick fix.
Drive for short-term financial results.
Politics and turf issues.
Total Quality Management - TQM
Standards in Action
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Some criticisms of TQM
1. Blind pursuit of TQM programs
2. Programs may not be linked to strategies
3. Quality-related decisions may not be tied to market
performance
4. Failure to carefully plan a program
Total Quality Management - TQM
Standards in Action
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PDCA Cycle repeated to create continuous
improvement
Time
P
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Continuous
improvement
Plan
Do
Check
Act
Total Quality Management - TQM
Standards in Action
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Recognizing and rewarding Quality
Promotion of high quality goods and services
Malcolm Baldrige National Quality Award (MBNQA) (United
States)
Deming Prize (Japan)
European Quality Award (European Union)
ISO9000 certification
Total Quality Management - TQM
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The integrated framework of the Baldrige Award criteria
Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)
Total Quality Management - TQM
Standards in Action
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Product
Continual improvement of the quality management system


Customers
(and other
interested
parties)
Requirements
Management
responsibility
Resource
management
Measurement,
analysis and
improvement
Product
realisation
Output

Satisfaction
Input
Source: BS EN ISO 9001:2000
Key:
Value adding activity
information flow
Customers
(and other
interested
parties)

Total Quality Management - TQM
Standards in Action
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Overview of the EFQM Excellence Model
Total Quality Management - TQM
Standards in Action
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Quality Award common elements
All take holistic approach
Customers/people
Measurable characteristics
Visible
Basis taken from TQM
Total Quality Management - TQM
Standards in Action
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Summary
TQM a way of working
Involves everyone
High prominence on customer
Awards based upon TQM