Introduction to

Total Quality Management

Abu Naser Mohammad Saif

Assistant Professor
Department of Management Information Systems
Faculty of Business Studies
University of Dhaka
 Comprises three words:
 Total – Made up of the whole
 Quality – Degree of excellence a product or
service provides
 Management - Art and science of achieving
organizational goals through planning, leading,
organizing, and controlling the resources
 Quality

 Quality is excellence that is better than a

minimum standard. It is conformance to
standards.
 ISO 9000:2000 definition of quality - It is the
degree to which a set of inherent characteristics
fulfills requirements.
 Quality is ‘fitness for using the product – Joseph
Juran.
Quality and Customer Expectations

 Quality is defined as excellence in the

product or service that fulfills or
exceeds the expectations of the
customer.
 There are 9 dimensions of quality that
may be found in products that
produce customer-satisfaction.
Quality and customer expectations

 Though quality is an abstract perception, it

has a quantitative measure- Q= (P / E ),
where Q = quality, P = performance (as
measured by the Mfgr.),
E = expectations (of the customer).
 Quality is not fine-tuning your product at
the final stage of manufacturing, before
packaging and shipping .
 Quality is in-built into the product at every
stage from specification & design stages
to prototyping stage.
 TQM philosophy and guiding principles
continuously improve the organization
processes and result in customer
satisfaction.
Total Quality

 People-focused management system

 Focus on increasing customer satisfaction
and reducing costs
 A systems approach that integrates
organizational functions and the entire supply
chain
 Stresses learning and adaptation to change
 Based on the scientific method

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Principles of Total Quality

 Customer and stakeholder

focus
 Participation and teamwork
 Process focus and continuous
improvement

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Customer and Stakeholder Focus
 Customer is the judge of quality
 Organizations must first understand
customers’ needs and expectations
in order to meet and exceed them
 Organizations must build
relationships with customers
 Customers include employees and
society at large
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Participation and Teamwork
 Employees know their jobs best and
therefore, how to improve them
 Management must develop the systems
and procedures that foster participation
and teamwork
 Empowerment better serves customers,
and creates trust and motivation
 Teamwork and partnerships must exist
both horizontally and vertically

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Process Focus and Continuous
Improvement
 A process is a sequence of activities
that is intended to achieve some
result

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Continuous Improvement

 Enhancing value through new products

and services
 Reducing errors, defects, waste, and
costs
 Increasing productivity and
effectiveness
 Improving responsiveness

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 Six Basic Concepts
TQM requires six basic concepts:
1. A committed and involved management to provide
long-term organizational support
2. An unwavering focus on the internal as well as
external customer
3. Effective involvement and utilization of the entire
work force
4. Continuous improvement of the business and
production process
5. Treating suppliers as partners

6. Establish performance measures for the processes

 1. Committed & Involved Management
 Management’s participation in quality
program of the organization through quality
council develops a clear vision, set long-term
goals and direct the program
 Annual quality improvement program is
established and involves input from the entire
workforce
 Managers involve themselves to quality
improvement teams and also act as coaches
 TQM is a continual activity that must be
entrenched in the culture, it isn’t one shot
program. It must be communicated to all
people
2. Unwavering Customer Focus
 The key to an effective TQM program is its
focus on the customer
 An excellent way to start is done by
satisfying internal customers
 We must listen to the voice of the
customer and emphasize design quality
and defect prevention
 Customer satisfaction is the most
important consideration
3. Organization-wide Challenge
 TQM is everyone’s responsibility
 All personnel must be trained in TQM, SQC and
other appropriate quality improvement skills so
they can effectively participate on project teams
including internal customers and suppliers
 Those affected by the plan must be involved in its
development and implementation
 Changing behavior should be the goal. People
must not come to do their job simply but to think
how to improve it
 People must be empowered at the lowest possible
level to perform processes in an optimum manner
 4. Continuous Improvement
 There must be a continual striving to improve
all business and production processes
 Quality improvement projects such as on-time
delivery, order entry efficiency, billing error
rate, customer satisfaction, cycle time, scrap
reduction and supplier management are good
places to begin with
 Techniques such as SPC, benchmarking,
quality function deployment, ISO 9000, and
designed experiments are excellent for
problem solving
5. Supplier Partnership
 Supplier quality must be outstanding because
on the average 40% of the sales is purchased
product or service
 A partnering relationship rather than an
adversarial one must be developed
 Both parties have as much to gain or loose
based on the success or failure of
product/service
 The focus should be on quality rather than
price
 Suppliers should be few in number so that true
partnering can occur
6. Performance Measures
 Performance measures such as uptime,
absenteeism and customer satisfaction
should be determined for each functional
area
 These measures should be posted for
everyone to see
 Quantitative data are necessary to
measure the continuous quality
improvement activity
 Effects of Poor Quality
 Low customer satisfaction
 Low productivity, sales & profit
 Low morale of workforce
 More re-work, material & labor costs
 High inspection costs
 Delay in shipping
 High repair costs
 Higher inventory costs
 Greater waste of material
 Benefits of Quality
 Higher customer satisfaction
 Reliable products/services
 Better efficiency of operations
 More productivity & profit
 Better morale of work force
 Less wastage costs
 Less Inspection costs
 Improved process
 More market share
 Spread of happiness & prosperity
 Better quality of life for all.
 Historical Review of Quality Control

 Quality in articles produced by skilled craftsmen

and artisans from the B.C. era eg., goldsmiths,
silversmiths, blacksmiths, potters etc.
 Artists & Artisans Guilds in the Middle ages spent
years imparting quality skills and the workmen had
pride in making quality products.
 Industrial revolution brought factory manufacturing
where articles were mass-produced and each
worker made only a part of the product and did not
sense the importance of his contribution to the
quality of the product.
 Historical Review of Quality Control

 In 1924, W.A. Shewhart of Bell Telephone Labs

developed a statistical chart for the control of
product variables – the beginning of SQC and SPC.
 In the same decade, H.F. Dodge and H.G. Romig
of Bell Telephone Labs developed statistical
acceptance sampling instead of 100% inspection.
 In 1946, the American Society for Quality Control
was formed.
 In 1950, W. Edwards Deming, who learnt SQC
from Shewhart, taught SPC & SQC to Japanese
engineers and CEO’s
 Historical Review of Quality Control
 In 1954, Joseph M. Juran taught Japanese
managements their responsibility to achieve
quality.
 In 1960, the first quality control circles were formed.
SQC techniques were being applied by Japanese
workers.
 1970’s US managers were learning from Japan
Quality implementation miracles.
 In 1980’s TQM principles and methods became
popular.(also in auto industry)
 In 1990’s, the ISO 9000 model became the world-
wide standard.
Various Schools of Thought or Gurus
 Walter A. Shewhart
 W. Edward Deming

 Joseph M. Juran

 Armand V. Feiganbaum

 Kaoru Ishikawa

 Philip B. Crosby

 Genichi Taguchi
Walter A. Shewhart
 Dr. Walter A. Shewhart spent his professional
career at Western Electric & Bell Telephone
Lab. He is known as the father of SQC.
Contributions:
 Control chart theory with control limits
 Chance causes of variation
 Rational subgroups
 PDSA cycle of learning and improvement
Publications:
 “Economic Control of Quality & Manufactured
Product” 1931
W. Edward Deming
 Dr. W. Edward Deming is the best known quality expert
in the world.
Contributions:
 Taught Statistical Process Control (SPC) to leading
Japanese CEOs in 1950s, thus becoming chief
architect of Japanese quality miracle
 “Deming’s 14 Points” – a theory for management to
improve quality, productivity, and competitive position
Publications:
 “Out of the Crisis”
 “Quality, Productivity and Competitive Position”
 161 scholarly studies and many other books
Joseph M. Juran
 Dr. Joseph M. Juran worked at Western
Electric (1924-41). In 1954, he travelled to
Japan where he taught Quality Management.
 Contributions:
 Emphasized on committed management at
all levels for quality, recommended project
improvement based on ROI
 “The Juran Trilogy for Managing Quality” –
three interrelated processes of planning,
control, and improvement
 Publication:
 “Juran’s Quality Control Handbook”, 1951
Armand V. Feiganbaum
 Dr. Armand V. Feiganbaum was an
American quality control expert and
businessman. He devised the concept of Total
Quality Control, later known as TQM.
Contributions:
 Feigenbaum’s quality principles are Customer
satisfaction, Genuine management
involvement, Employee involvement, First-line
supervision leadership and Company-wide
quality control
Publication:
 “Total Quality Control”, 1951
Kaoru Ishikawa
 Dr. Kaoru Ishikawa studied under Deming,
Juran, and Feiganbaum.
Contributions:
 Best known for Cause & Effect diagram –
also referred to as Ishikawa diagram
 Developed “Quality Circles” concept –
groups containing supervisors and workers
trained in SPC regularly meet to identify and
solve quality problems
Publications:
 Authored SPC texts in Japanese and
English
Philip B. Crosby
 Philip B. Crosby was a businessman and author
who contributed to management theory and quality
management practices.
Contributions:
 He argued, “doing it right the first time is less
expensive than costs of detecting and correcting
nonconformities”
 Four Absolutes of Quality Management

Publications:
 Seminal work “Quality is Free”, 1979, translated into
15 languages, 1.5 million copies sold
 “Quality Without Tears”, 1984
Genichi Taguchi
 Genichi Taguchi, PhD, was an engineer
and statistician.
Contributions:
 Developed “loss function” – combines
cost, target, and variation into one
metric
 Cornerstone of Taguchi’s philosophy –
robust design of parameters and
tolerances
TQM Framework
 The 9 Dimensions of Quality
 Performance
 Features
 Conformance
 Reliability
 Durability
 Service
 Response - of Dealer/ Mfgr. to Customer
 Aesthetics – of product
 Reputation - of Mfgr./Dealer
Quality old & new cultures
Element Past Present
Definition Product oriented Customer oriented
Priorities Second to service & cost First

Decisions made Short term Long term

Emphasis Detection Prevention
Errors Operations System
Responsibility Quality control Every one
Problem solving Managers only Teams
Procurement Price Life cycle cost,
partnership
Manager’s role Plan, assign, control & Delegate, mentoring,
enforce coaching & facilitate.
 Obstacles of TQM
1. Lack of management Commitment
2. Inability to change organizational culture
3. Improper planning
4. Lack of continuous training & Education
5. Incompatible organizational structure
6. Ineffective measurement techniques & Lack of
access to data & results.
7. Paying inadequate attention to internal &
external customers.
8. Inadequate use of empowerment & teamwork
9. Failure to continually improve