TOTAL QUALITY

MANAGEMENT
 INTRODUCTION TO TOTAL
QUALITY MANAGEMENT

• The approaches advocated by Deming, Juran, Crosby, and

others have long been used by well effective managers.

• The most noteworthy feature is the level of mutual trust that needed by
both management and staff to create a culture in which an effective
quality management program can be successful. Quality is currently
everyone’s task, not just the inspection department.

• Open objective measurements are necessary

 DEFINING QUALITY
• Quality is a lot more than the nonexistence of defects which allows the
companies to meet customer expectations.
• Quality needs controlled process improvement, allowing companies to
exceed customer’s expectations.
• Quality will let companies to re-establish pride and loyalty in their
organizations.
• Quality can only be attained by the nonstop improvement of all systems
and processes in the organization, not simply the production of products
and services but also the design, development, service, purchasing,
administration and indeed, all aspects of the transaction with the
customer. Each one must work in correct toward similar end.
• Quality can only be observed through the
eyes of the customers. An understanding of
the customer’s expectations (effectiveness)
is the first step. Then exceeding those
expectation (efficiency) is required.
Communications will be the key. Going
beyond customer expectations guarantees
meeting all the definitions of quality.
• Different people understand quality in
different manner. Hardly anyone can describe
quality in quantifiable terms that can be
operationalized.
• The banker may differentiate their product or
service with “service”;
• for the health care worker it is “quality health
care”;
• for the hotel or restaurant employee it is
“customer satisfaction”; and for the
manufacturer it is simply “ quality product”.
• A few individuals can provide a specific definition and measurement
of quality when pressured. There is an old saying in management
which says, “ if you can’t quantify if, you can’t manage it,’ and it is
also true with quality.
 APPROACHES TO QUALITY
DEFINITION

• In his book Managing Quality, Harvard Professor David Garin

summarized five principal approaches to defining quality namely:
 Approchesto Quality Definition

1. TRANSCENDENT
• Most people would agree that the Mona Lisa or
Michaelangelo’s David are works of art which represent
quality because people travel from around the world to view
them. But can they define it? Those who embrace the
transcendental outlook would say, “I can’t define it, but I know
it I witness.” Advertisers are inclined of promoting products in
these terms.
 EXAMPLES
• “Where shopping is a pleasure” (supermarket)
• “We love to fly and it shows” (airlines)
• “The great American beauty… its elegant” (automobile)
• “Its means beautiful eyes” (cosmetics)
 Approchesto Quality Definition

2. PRODUCT-BASED
• Quality is observed as a quantifiable or measurable
characteristic or attribute. For instance durability or reliability
can be measured and the engineer can draw to that yardstick.
 Approchesto Quality Definition

3. USER-BASED
• This definition is founded on the idea that quality is an individual
issue and products that best please their preferences (perceived
quality) are those with the highest quality. This is an approach
based on reason but directs to two problems. First consumer
preferences differ extensively and it is not easy to combine these
preferences into products with broad demand. This leads to the
selection between
a niche strategy ( products sold to specific customers)and

a market aggregation approach (large set of consumers) which strives

to identify those product attributes that support the needs of the
biggest number of customers.
 Approchesto Quality Definition

4. MANUFACTURING-BASED
• The definition is focused mainly with engineering and
manufacturing practices and the universal definition of
“conformance.” Requirement or specifications are launched
by design and any difference involves a decline in quality.
The concept is relevant to services as well as products.
Superiority in quality is not automatically in the eye of the
beholder but rather in the standards set by the organizations.
• Thus, both Fortuner posses quality, as Innova’s as long as the product or
service “conformance requirements” are met.

This approach has a serious weak point. The consumer’s perception of

quality is compared with conformance and thus is internally focused.

Stress on the reliability in design and manufacturing is inclined to attend to

cost reduction as the objective.
Cost reduction is perceived in a limited way which is to invest in design and
manufacturing improvement until these incremental cost (cost of adding
one unit) This approach goes against Crosby’s concept of “quality is free”
Quality is free," meaning that an investment in improving quality pays
itself back very quickly.
 Approchesto Quality Definition

5. VALUE-BASED
• It is defined using costs and prices as well as the number of
attributes. Hence, the consumer’s purchase decision is
founded on quality at an up to standard value. The highest
quality product is not typically the best value. That description
is given to the “best-buy” product or service.
QUALITY TYPES
 • In general, quality is meeting and exceeding customer
expectations at a price that he is willing to pay to posses the
product or service. There are three types of quality which are
quality of design,
quality of conformance
and quality of performance.
 1. QUALITY OF DESIGN
• Is all about the set characteristics that the product or service
must minimally have to satisfy the requirements of the
customer based on market research.
• Quality of design is influenced by many factors, such as product type,
cost, profit policy, demand of the product, availability of parts and
materials, and product reliability.
• This process of developing a product requires effective exchange of
ideas among marketing, sales, services, manufacturing, research and
development departments.
 2.QUALITY OF CONFORMANCE
• Is basically meeting the standards or
user-based characteristics defined in the
design phase after the product is
manufactured or while the service is
delivered. It refers to the extent in which
the firm and its supplier are able to
manufacture products with expected
level of reliability and uniformity at a
specified cost with quality requirements
based on the study made on quality
design. These phase is also concerned
about quality control starting from raw
material to the finished product. Three
broad aspects are covered in this
definition, namely defect detection,
defect root cause analysis, and defect
prevention.
• Defect prevention deals with the means to deter the
occurrence of defects and is usually achieved using
statistical process control techniques. Detecting defects
may be by inspection, testing or statistical data analysis
collected from process and finally corrective actions are
taken to prevent recurrence of the defect.
3. QUALITY OF
PERFORMANCE
• Is how sound the product functions or service performs when
put to use. It measures the degree to which the product or
service pleases the customer from the angle of quality of
design together with the quality of conformance.
• Meeting customer expectation is the focus of quality of
performance. Automobile industry performs test drive of
vehicles to gather information concerning mileage and oil
consumption.
• Bulbs are life tested to be aware of its reliability throughout its
useful life. Customer survey is carried out to discover
customer’s perception about service rendered. If product or
service does not meet customer expectation, then
modifications are considered necessary in the design or
conformance phase.
 QUALITY LEVELS
• Quality focused organization must evaluate at three levels
namely organization, process and individual.
The organization, process and individual are co-dependent and
are linked together in a total system that eventually decides the
quality of products and services of an organization.

Organizational level
The organizational level quality requirements revolve around its
customer’s quality requirements. A customer is anyone who
receive’s one or more of the organization’s products or services
who could be an internal or external one.
• Timeless, accessibility and value of money are quality features for a
customer.

• Benchmarking should be a continuing concern to make certain that

the organization employs ongoing improvement to compete and
deliver customer requirements.

• Customer feedback: Feedback on a regular basis must come from

both internal and external customers. Standards coming customer
requirements must be the foundation for goal-setting, problem
solving, performance evaluation, incentive compensation,
nonfinancial rewards and resource allocation.
 PROCESS LEVEL
• At the process level, units of organization are categorized into
functions or departments in marketing, operations, finance,
human resource and so on. Most processes are cross-
functional so managers can optimize the activities of his
department and sub-optimize the activities of the entire
organization. The following issues may help define quality at
this level:
 Individual
Level
• Individuals are one of the vital
components of the human
performance system. At the micro
level they serve as a reflection of
the process and the system being
used by the organization. Each
individual under the human
performance system accept
inputs, generate outputs and then
adjust his performance from the
feedbacks obtained.
Under the human performance system, the quality of each individual
work or performance is shaped by these factors:

• The input individual receives which consist of how clear the

performance expectations are, the reasoning of the work
procedures, the sufficiency of resources, the appropriateness of
skills and knowledge and how clear the cues that prompt
performance.
• The positive/negative results for performing as desired/not desired
• The feedback an individual obtains such as the nature of the
information given, when and how frequent it is given and the
manner in which it is provided
• An individual’s physical, mental and emotional capacity
QUALITY
PARADIGMS
a set of theories that explain the way a particular
subject is understood at a particular time:

a model of something, or a very clear and typical

example of something

Example: Paradigm of Change

1. Custom-craft paradigm
• – in this paradigm the focus is on the products or service and
performance should be exactly as what customer demands.
Each product unit is designed and built exactly the way the
customer wants it. The requirements include skilled
craftsperson, basic hand tools, and demand for unique
product. Some examples of this pattern are from bank loans,
coffee shops, tailor’s shop and furniture suppliers.
2. Mass-production and sorting
paradigm
• here the focus is on production rate without direct involvement of
the customer. Products are designed and built based on how the
customer defined the products. Rework and scrap are obvious since
product performance is low. Sales are taken from the stock held
which makes delivery time typically low. Service organizations
under this paradigm are labor-intensive. The requirements consist
of interchangeable parts, factory power, unskilled labor pool, large
customer pool and hard-selling. Some examples of this pattern are
from automobile parts and readymade buildings for commercial
enterprises.
3. Statistical quality control
paradigm
• this paradigm is comparable to the mass production and sorting
paradigm except that more emphasis is given the production processes.
The application of this paradigm together with mechanized production
result in low scrap and rework and low production cost. Products are
designed and built, statistical process control and statistical sampling
are used, and then customers are generated. The requirements
comprise interchangeable parts, factory power, unskilled labor pool,
large customer pool, hard-selling, statistical methods. Some examples of
this pattern are from automobile parts and electronic components.
4. Total quality management
paradigm
• - This paradigm focuses on customers and suppliers in addition
to mass production and statistical methods. Possible
customers participate in product definition, creation and
performance evaluation stage to inform the producer what to
design and build. Using employee involvement and
empowerment, customer-focus, continues improvement, top
management commitment, training and teamwork, the
producer successfully delivers a product the customers want.
• This paradigm results in high quality product, low cost, speedy
delivery and substantial decrease for rework and scrap. The
requirements contain interchangeable parts, factory power,
statistical methods, empowered employee, supplier
partnerships, and customer relationships. Some examples of
this pattern are from products/services of TQM companies.
 5. Techno-craft paradigm
• This paradigm is the socio-technical complement to the custom-craft
paradigm with the intention of reducing delivery time. Each unit is
designed and builds exactly the way the customer wants it built using
high level of production process flexibility. The requirements incorporate
interchangeable parts, factory power, statistical methods, empowered
employees, supplier partnerships, customer relationships, customer
aided design, and customer-aided manufacturing. Some examples of this
pattern are from the software and apparel industries.
Cost of Quality
• Cost of quality ; is a method that permits an organization to
decide on the level to which its resources are used for
activities that avoid poor quality, that assess the quality of the
organization’s products or services, and that results from
internal and external failures.

• Quality- related activities that incur cost may be divided

into prevention cost, appraisal cost, and internal and
external failure costs.
• 1.Prevention Costs – These are incurred to avoid failure
problems. Prevention activities lead to reduce of failure and
appraisal cost. These costs are associated with the design,
implementation, and maintenance of the quality management
system. They are planned and incurred before actual
operation, and they could include:

• a. Production or service requirements – establishment of

qualifications for inward bound materials, processes, finished
products, and services
• b. Quality planning – drawing of plans for quality, reliability,
operations, production, and inspection
• c. Quality assurance – planning and continuance of the quality
system

• d. Training – development, preparation, and continuance of

programs
• 2. Appraisal Cost – These cost are associated with measuring
and monitoring activities related to quality standards and
performance requirements. These costs take place from
spotting defects rather than prevention. These costs are
associated with the supplier’s and customer’s evaluation of
purchased materials, processes, products, and services to
ensure that they conform to specifications. They could
include:

• a. Verification- checking of inward bound material, process

setup, and products against contracted specifications
• b. Quality audits- confirmation that the quality system is
operating properly
• c. Supplier rating – appraisal and endorsement of suppliers of
products and services
• 3. Internal failure Costs – These costs are acquired to treat
defects revealed earlier when the product or service is
delivered to the customer. These costs happen when the
results of work fail to attain design quality standards and are
noticed before they are transferred to the customer. They
could include:
• a. Waste- performance of needless work or holding of stock as
an outcome of errors, poor organization, or communication
• b. Scrap – faulty product or material that cannot be repaired,
used, or sold
• c. Rework or rectification – improvement of flawed material or
errors
• d. Failure analysis – activity necessary to ascertain the reasons
of internal product or service failure
• 4. External Failure Cost – These are costs obtained to treat
defects exposed by customers. These costs occur when
products or services that fail to attain design quality standards
are not discovered until after transfer to the customer. They
could include:

• a. Repairs and servicing – of both returned products and

those in the field
• b. Warranty claims – failed products that are replaced or
services that are re-performance under a guarantee
• c. Complaints – all work and costs connected with handling
and servicing customer’s complaints
• d. Returns – handling and investigation of discarded or
recalled products, including transport cost
• There are two main components of cost of quality which are cost of
conformance and cost of non- conformance.
• Cost of conformance is the cost of making available products or services
based on required standards. Simply it is a good amount spent such as
prevention and appraisal costs.
• Cost of non- conformance means failure costs linked with a process not
functioning based on required standards. Simply it is a pointless amount
spent like internal and external costs.
• Essentially quality costs are defined as the total cost acquired by
investing in the prevention of non-conformance to requirements and
failure to meet requirements.
DEFINING TOTAL
QUALITY
MANAGEMENT
• Total Quality Management (TQM) is an all-inclusive and well
thought-out means to organizational management that
searches to advance the quality of processes, products,
services and culture through continuing minor changes in
reply to constant feedback. TQM consists of continuous
process enhancement activities concerning managers and
workers alike in an organization in a completely integrated
effort toward improving performance at all level.
• TQM combines basic management techniques, current
improvement efforts and technical tools in a disciplined approach
focused on improved customer satisfaction.

• TQM begins with a focus on the customer and is boundless, with a

lifetime dedication to continuous improvement.

• TQM merges a participative philosophy of management attributed

to Dr. Edwards Deming with importance on quantitative techniques
and employee involvement to get better the quality of goods and
services.
• TQM is a process of controlled change that comprises the entire
employees in the improvement of the quality products and services to
boost the productivity of the organization.
• TQM optimizes innovative approaches to problem solving and shifts the
organization from defect detention to defect prevention. With TQM all
of the organization’s resources are used effectively to improve all of its
processes.
• TQM engages everybody in the organization from the top management
to the lowest position. The timing, progression, method of execution
and integration of these elements will differ from one organization to
another.
• Essential to the TQM approach is the transformation in
management philosophy regarding the “responsibility for quality.”

• In TQM the responsibility for quality is given to everyone, each and

every employee, from top management to the lowest position in
the organization.
• TQM is accomplished using a team organization with both
management and the employees as members of “Quality Team”
which focus on continuous process enhancement.
• Communication must be encouraged to let employees and
management to work jointly to attain the shared goal of continuous
process improvement.
• TQM necessities may be defined independently for a specific
organization or may be in loyalty to established standards, like the
International Organization for Standardization’s ISO 9000 series.

• TQM can be apply to any type of organization; it originated in the

manufacturing sector and has since been adapted for use in almost
every type of organization imaginable, including schools, highway
maintenance, hotel management, and churches. As a current focus
of e-business, TQM is based on quality management from the
customer’s point of view.
The Primary
Elements of TQM
• Quality is a necessary parameter which helps organizations
outshine their competitors and survive the fierce competition.

• The achievement of TQM depends on following eight

elements which are further classified into following four
groups.
 Foundation
• The entire process of total quality management is built on a
strong foundation of ethics, integrity and trust. TQM involves
every single employee irrespective of his designation and level
in the hierarchy.
1. Ethics • Ethics is a combination of
written and unwritten codes
of principles that govern
decisions and actions within a
company. It is an
understanding of the
difference of good and bad
decision making and
behaviour at the business
world. It boils down to
following the code of conduct
of organization and adheres
to rules and regulations. It
describes the actions of
individuals within an
organization as well as those
of the organization as a
whole.
2. Integrity
• Integrity is the consistency of
actions, values, methods,
measures, principles,
expectations and outcomes at
workplace. There is a need to
respect organization’s policies.
Avoid spreading unnecessary
rumors about fellow workers.
TQM does not work in an
environment where
employees criticize and
backstab each other.
3. Trust
• Trust is one of the most important factors
necessary for implementation of TQM because it
builds a cooperative environment. It is a
relationship based on reliance. Employees need
to trust each other to ensure participation of
everybody and allows empowerment that
encourages pride of ownership and commitment.
Trust fosters individual risk-taking for continuous
improvement and is essential to ensure customer
satisfaction. Trust improves relationship among
employees and eventually helps in better
decision making which further helps in
implementing TQM successfully.
 Building Bricks of TQM
• Bricks are placed on a strong foundation to reach the roof of
recognition. The foundation needs to be strong enough to
hold the bricks and support the roof. Leadership, teamwork
and training are the building bricks of TQM.
 1. Leadership
• Leadership provides a direction to the entire process of TQM. It is about
raising the aspirations of followers and enthusing people with a desire
to reach the goals. Leadership in TQM requires the manager to provide
an inspiring vision, making strategic decisions and instill values that
guide subordinates. TQM needs to have a supervisor who acts as a
strong source of inspiration for other members and can assist them in
decision making. A leader himself needs to believe in the entire process
of TQM for others to believe in the same. Proper downloads, briefs
about TQM must be given from to time to employees to help them in its
successfully implementation. TQM initiatives have to be introduced and
led by the top management.
2. Teamwork
• Team work is a crucial element of TQM. Rather than working
individually, employees need to work in teams. When
individuals work in unison, they are in a position to brainstorm
ideas and come up with various solutions which would
improve existing processes and systems. Team members ought
to help each other to find a solution and put into place.
Teamwork offers contiguous improvement in processes and
operations.

The team may be:

• Problem-solving – These are temporary and formed to solve
certain problems, identify and overcome causes of those
problems. They generally last from one week to three
months.
• Quality improvement- These are temporary teams with the
purpose of dealing with specific problems that often recur.
These teams are set up for a period of three to twelve
months.
• Natural work- these teams consist of small groups of skilled
workers who share tasks and responsibilities. These teams use
concepts such as employee involvement teams, self-managing
teams and quality circles.
3. Training
• Employees need to be trained on TQM to become highly
productive. Managers need to make their fellow workers
aware of the benefits of TQM and how would it make a
difference in their product quality and eventually yield profits
for their organization. Employees need to be trained on
interpersonal skills, the ability to work as a team member,
technical know-how, decision-making skills, problem solving
skills and so on. Training enables employees to implement
TQM effectively within their departments and also make them
indispensable resources.
 Binding Mortar of TQM
• Binding mortar binds all the elements together.
Communication binds everything together, starting from the
foundation and going up to the roof. Communication is the
vital link between all the TQM elements and must be
prevalent in an organization in order for TQM to work the way
it should. The channels of communication need to be credible
and easily interpreted for all members of the organization.
• Communication binds employees and extracts the best out of
them. Information needs to be passed on from the sender to
the recipient in its desired form. Small misunderstandings in
the beginning lead to major problems later on. Employees
need to interact with each other to come up with problems
existing in the system and find their solutions as well. Three
types of communication takes place between employees:
1. Downward communication
• This is the dominant form of communication in an
organization. Presentations and discussions are two examples
of this form of communication. Flow of information takes
place from the management to the employees. The
supervisors are able to make the employees clearly
understand TQM using this type of communication.
2. Upward communication
• Flow of information takes place from the
lower-level employees to the top
management. The lower-level employees
are able to offer suggestions on the
effects of TQM to the upper level
management using this type of
communication. Supervisors should listen
effectively and incorporate the insights
and constructive criticism offered by the
employees in correcting the situations
that arise through the use of TQM. This
creates a level of trust between
supervisors and employees. This is also
similar to empowering communication,
where supervisors listen to others.
3. Sideways/lateral
communication-
• Sideways/lateral communication- Communication also takes
place between various departments. This type of
communication is important because it breaks down barriers
between departments. It also allows a more professional
dealing with customers and suppliers.
Roof
• It includes recognition which brings greater internal customer
satisfaction which in turn leads to external customer
satisfaction in the organization. There can be a huge change in
self-esteem, productivity and quality when the contributors
are recognized.

• Recognition is the final element of TQM. Recognition is the

most important factor which acts as a catalyst and drives
employees to work hard as a team and deliver their lever best.

• They should be suitably rewarded to expect a brilliant

performance from them even the next time.
Core Concepts of TQM
• Each of the following core concepts of TQM can be used to drive
the process of continuous improvement and to develop a
framework for quality improvement over many years.

• 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.
Companies have to give identical importance to the internal as well
as the external customers. A better technique for companies to use
their customers is to learn what is significant to them and then,
equal their performance to the customer’s satisfactions.
• Many forward-looking companies of the world have started
the process of carrying out a survey known as “energy meter”
which reflects the satisfaction, morale, and motivation levels
of employees and develops the model of “employeeship” with
core stress on the principles of customer satisfaction. Further,
on the external customer front, survey are carried out among
the customers for identifying their satisfaction, expectations
and the causes for low customer satisfaction. For that reason,
the satisfaction index is compiled and product quality are
monitored to improve customer satisfaction.
Core Concepts of TQM
• 2. Internal customer satisfaction - Customers are not only external
customers, but the people outside who are the end user of a firm's
products and services. There is also the internal customer, the person
within the company who receives the work of another and adds his
contribution to the product or service before passing it on to
someone else. It is essential to attain a successful internal working
relationship in order to satisfy the needs of the external customer the
internal customers' requirements are agreed and met a chain of
quality is built that reaches out to the external customer. Whether an
organization supplies products or services, the people it supplies
internally are as real as its external customers. Therefore, they also
require speed, efficiency and accuracy. That's why the idea of the
internal customer can be used as a highlight for improvement.
Core Concepts of TQM
• 3. All work is process - Another possible focal point of improvement
is that of business processes. A process is a combination of
methods, materials manpower and machines that work collectively
to produce a product or service. All processes include natural
variability and one approach to quality improvement is to
progressively reduce variation. First, this can be done by removing
variation due to special causes and secondly by driving down the
common cause of variation, thus bringing the process under control
and improving the capability.
Core Concepts of TQM
• 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. There are seven generic ways in which the
quality of outputs can be measured:
• a. Defects-work not up to specification
• 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
• Synergy in teamwork - The idea of synergy in teamwork, where the
whole is greater than the sum of the parts, is a key concept in TOM.
Here, it is used to promote collaboration, consensus,"creative conflict"
and team winning. One! of the strength of using teams for TQM is that
they can merge the mutually restricted individual qualities needed for
running business today. Teamwork can provide opportunities for
people to work together to reach quality improvement. People who
work on their own or in a small group often have a
compartmentalized picture of their organization and the work that it
does. They are quite strange with the work done even by people who
are in their vicinity. Consequently, they are unacquainted of the
results of the poor quality of their work.
• Bringing people together within teams with the common goal of
quality improvement aids communication between people,
departments and functional activities. Teamwork gradually breaks
down the communication barriers and acts as a platform of change.
Teamwork also enables a group of people to work as a task force as
seen in cross-functional teams, committees and others which look
at cross-functional problems, solving problems and identifying and
adopting new ways of doing things. In this connection, quality
circles and quality improvement tools facilitates team-building
processes in organizations.
Core Concepts of TQM

• 6. People make quality-Most of the quality problems within an

organization are not usually within the control of an individual
employee. The system often comes in the way of employees who
are trying to do a good job. In such a situation, motivation by itself
cannot work. Therefore, managers are required to ensure that all
necessary is prepared to let people to produce quality. This creates
an environment where people are eager to Lake responsibility for
the quality of their own work. Releasing the talents of everyone
within the organization in this way can generate a culture for quality
improvement.
Core Concepts of TQM

• 7. Continuous improvement cycle - 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.
The continuous improvement cycle used over and over again will
lead to a fresh "chemistry within the organization so that the
culture starts to change to one of continuous improvement.
Core Concepts of TQM
• 8. Prevention - At the heart of TOM is the conviction that it is
possible to achieve defect-free work most of the time. This is
termed "right first time, every time" or zero defects. The "right first
time, every time" or zero defects policy is the results of an
emphasis on prevention, and the diligent use of measurement,
process controls and the data-driven elimination of waste and error.
It serves as a goal for continuous improvement. Prevention is the
goal of all quality assurance. Through planned and systematic action
such as documentation of work processes or cost of quality audits,
quality assurance prevents quality problems.
Benefits of TQM
• There are many benefits of TQM. Essentially, TQM refers to
the total quality in fulfilling the needs of the customers, the
quality of the products and the quality of life. Having these
focuses leads to better business results and also benefits
business in several different ways. Here are some benefits of
TQM:
• 1. Creates a good corporate culture TQM is an approach where the
customer is the center point of the business rather than the
department. Therefore, quality is transformed from an issue of the
production department to a strategic business entity to meet global
challenges. The TQM philosophy revolves around developing a
culture that supports total commitment to customer satisfaction
through continuous improvement.
• 2. Better reviews from customers - Another benefit of TQM is that
customers and clients are highly satisfied with the performance.
Given the quality assurance testing procedures, the products of the
company will constantly meet the requirements and needs of
clients and customers. Therefore, the customers stay with the
company longer, deepen their relationship with the company and
demonstrate less price sensitivity while recommending the
company's products or services to others. Customer satisfaction
and high performance results also possibly lead to high reviews in
different publications and newspapers which further enhances the
image of the company and in turn that of the business.
• 3. Better performance from employees - Through TOM, there
is often more attention placed on meeting the needs of the
employees or internal customers. The training given to the
employees as part of the program can boost employee morale
at the workplace resulting in employees working harder to
achieve the goals of TQM.
SHIFTING FROM
TRADITIONAL
MANAGEMENT TO
TQM
• Traditional management styles are all essentially management
by results. Managers feel justified in letting quality standards
slip, adjusting output to meet quotas, and generally forfeiting
the right production standards and procedures to pander to
results. This management style is predicated on the "ends
justify the means" philosophy. This "charade of conformance"
fosters dishonesty and a juggling of the facts.
• Quality-focused management is predicated instead on the quality of
the product and the satisfaction of the customer. In this style, the
goal is to produce an extremely high quality product without cutting
comers on quality and without pandering to profits. This is a radical
departure from traditional styles, which applaud profits above
quality and virtually every other consideration. In quality-focused
management, profits improve because the product is better and the
customer is willing to pay for it. This type of management requires
detailed quality measurement and observance to consistent quality
standards, since any drop in quality will be detected by customers
and will weaken the success of this style.
• Changing from a traditional style to a quality-focused style of
management requires re-education of managers to become leaders
instead of bosses as well as clear communication of the company's
quality vision. The quality goal must be championed by everyone,
beginning from the top down to the lowest worker. The alteration
to a quality-focused style forces sweeping changes in every aspect
of a company's management from the selection of personnel to the
function of teams within the company, but the end result is a
better-quality product, a pleased customer, and a company that
operates with greater integrity.
• Total quality management has changed the traditional
management style forever. It was a very essential movement
those days. Some of these changes are essential even today.
Few of these changes are discussed below.
• 1. Traditional way of management focused on internal activities.
Quality had a meaning which was totally internally defined.
Products or services provided by organization were assumed to be
good in quality, if this organization has done its best in producing
that product or service. But in total quality management, focus is
the customer. So that final decider of the quality is the customer.
Fitting to the customer requirement was the least requirement
while delighting them is the ultimate goal.
• 2. Traditionally people thought bad quality products are due to the
workers who do not perform their job properly. One of the major
differences between total quality management and traditional
management style is the assignment of the responsibility of the
quality to the management. Especially responsibility of the quality
goes into the middle level management in the operational level.
• 3. Total quality management is an organization wide
movement. All the organization has to be in agreement to
apply TQM principles. Total quality management, unlike
traditional management calls for high amount of team
working Team building, especially cross functional teams is
feature of TQM. These teams will present the necessary thrust
to the implementation process and will push the system
forward, with very less struggle.
• 4. TQM believes in quality assurance rather than checking. Quality is
inbuilt to the system, so that products are assured to be in good
quality. Some decision like narrowing down the supplier base is
total quality management concepts used for this purpose, which is
revolutionary still today.

• 5. Unlike in traditional management style, total quality

management makes decisions on facts and figures. Therefore
problems are identified properly. Therefore solutions are well
planned.
• 6. TQM depends on cyclic thinking. Also it is continuous. Therefore
improvements are small, stable and continuous in nature. This is
also known as Kaizen. These events are used in teambuilding, brain
storming and decision making.

• There are many other differences between the old or the traditional
way of management to the total quality management. In the bigger
picture, TQM has basically changed the culture and the thinking
patterns of the organization.
 TQM AND REENGINEERING
• Reengineering sometimes called Business Process
Reengineering (BPR) involves a complete rethinking and
transformation of key business processes leading to strong
horizontal coordination and greater flexibility in responding to
changes in environment. Because work is originated around
processes rather than function, reengineering often involves a
shift to horizontal structure based on teams.
• Reengineering basically means starting over-throwing out all
the thinking of how work was done and deciding how it can
best be done now. It entails identifying customer needs and
them crafting how it can best be done now. It requires
identifying customer needs then designing processes and
supporting people to meet those needs.
• Banks and insurance companies, manufacturing and mining companies,
and service companies throughout the world, all have achieved
breakthroughs in speed, flexibility, innovation and quality through
reengineering.
• It is very important to understand that reengineering is not a disconnect
discipline. It is, in fact, a subset of TOM. The essential difference
between (Business Process) Reengineering and TQM is that
reengineering aims at quantum 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.
• The two approaches to improve performance are not mutually
exclusive; it makes sense to use them in tandem. Reengineering can be
used to first produce good basic design that dramatically improves a
business process. Total quality programs can be used to work out bugs,
perfect the processes, and gradually improve both efficiency and
effectiveness
Similarity and
Difference between
Reengineering and
TQM
• Some people have said that both TQM and Reengineering are the
same, while others have argued that they are incompatible. Michael
Hammer argues that the two concepts are compatible and actually
complement each other. Both concepts have the same focus -
customer satisfaction.
• TQM has contributed the concept of teamwork, worker
participation and empowerment, cross-functionality, process
analysis and measurement, supplier involvement and
benchmarking. Also, TQM has emphasized the need for a "total"
view of the organizations in its approach to problem solving. TQM
has also influenced company culture and values by exposing
organizations to the need for change.
• TQM has advocated continuous and incremental improvement of
processes (Kaizen) whereas reengineering is about radical
discontinuous change (breakthrough improvement) through
process innovation. TQM and reengineering fit together over time
in the life of a process.
• First, the process is enhanced until its useful life time is over, at
which point it
is reengineered. Then enhancement is resumed and the entire cycle
repeats again.
Hammer points out that this is not a once-in-a-life time endeavor.
As business
circumstances change in major ways, so must process design.
How TQM and Reengineering Fit
Together
• The differences that have been identified may generate an idea that
reengineering
is outside the area of quality management. Hammer, the
reengineering guru,
together with quality gurus such as Deming and Juran, all agree that
innovation
and break-through in processes are indispensable parts of quality
management.
TQM assumes that the design of the process is sound and that all it
needs is
some improvement or enhancement. But if the world has changed
dramatically
since the process was first (or most recently designed, the current
design may
be incompetent of delivering the necessary performance
Reengineering is then
essential.
 Table 1 Reengineering vs. TQM
Reengineering (BPRE) TQM (CPI)
Similarities:
Basis of analysis Processes Processes
Performance measurement Rigorous Rigorous
Organizational change
Behavioral change Significant Significant
Time investment Significant Significant
Substantial Substantial

Differences:
Level of change Radical Incremental
Starting point Participation Clean slate Existing process Bottom-up
Typical scope Top-down Narrow, within functions
Risk Broad, cross-functional Moderate
Primary enabler High Statistical control Cultural
Type of change Information technology
Cultural and structural
• TQM is the way of achieving the objective of "total quality of
achieving the objective of "total quality". The techniques used for
continuous improvement and process reengineering are the tools
of TQM. In Japan, continuous improvement is referred to as Kaizen.
This is incremental, continuous improvement. According to Masaaki
Imai, who coined Kaizen" means improvement. It means continuous
improvement involving everyone, both managers and workers.
Kaizen strategy maintains and improves the working standard
through small gradual improvements. In general, improvement can
be defined as Kaizen and innovation.
• Kaizen means gradual, incremental, continuous improvement.
Innovation calls for the radical improvements as a result of
large investments in technology and/or equipment. But the
modern approach to total quality management includes both
incremental and breakthrough improvements under the term
"continuous improvement".
• When reengineering is implemented, the objective of total quality
must always be foremost to ensure success. Otherwise,
implementation can be costly and still not yield acceptable or long-
term results. Process reengineering emphasizes radically changing
to the existing processes under the assumption that those changes
will definitely improve the firm's global performance or the
performance of one of its specific processes.
• However to be effective, a firm's internal organization and
processes should directly and formally linked to enhancing
profitability through the fulfillment of its customers' needs. If this
relationship is at s' needs. If this relationship is correctly and
explicitly established from the beginning, then reengineering can be
one of the best tools to achieve total quality and it will significantly
improve the performance of a firm.