Unit-1

Introduction to TQM
Introduction to TQM
• Total - Made up of the whole
• Quality- Degree of excellence a product or
service provides/Quality is fitness to
requirment
• Management- Act, Art or manner of handling,
controlling, directing, etc...
What is TQM
• TQM implies that everyone associated with the
organization is committed towards continual
improvement of the organization through
customer satisfaction.
Definition
• TQM is the management approach of an
organization, centered on quality, based on me
participation of all its members and aiming at
long-term success through customer
satisfaction. and benefits to all members of me
organization and to society.- ISO
• TQM is a management philosophy, a paradigm,
a continuous improvement approach to doing
business through a new management model.
Five Pillars of TQM
• Product
• Process
• System
• People
• Leadership
Basic Concept of TQM
1. Top management commitment
2. Focus on the customer – Both internal and
external
3. Effective involvement and utilization of entire
work force
4. Continuous improvement
5. Treating suppliers as partners
6. Establishing performance measures for the
processes
Basic Tenets of TQM
• The Customer makes the ultimate
determination of quality.
• Top management must provide leadership and
support for all quality initiatives.
• Preventing variability is the key to produce high
quality
• Quality goals are a moving target, commitment
towards continuous improvement
• Improving quality requires the establishment
of effective metrics.
TQM System
Customer
Improvement

Customer Focus Process

Total Improvement
Improvement

Leadership, Education and Training, Communications, Reward and

Recognition , Measurement
Dimensions of Quality
1. Performance: Primary product characteristics,
such as the brightness of the picture
2. Features: Secondary characteristics, added
features, such as remote control
3. Conformance: Meeting specifications or
industry standards, workmanship
4. Reliability : Consistency of performance over
time, average time of the unit to fail
5. Durability : Useful life, includes repair
6. Service: Resolution of problems and
complaints, ease of repair
7. Response: Human – to – human interface, such
as the courtesy of the dealer
8. Aesthetics : Sensory characteristics, such as
exterior finish
9. Reputation: Past performance and other
intangibles, such as being ranked first
Evolution of TQM
• Quality Management philosophy was evolved in
Japan after second world war.
• An American expert Edwards Deming helped
Japanese to apply concepts of TQM.
• In 1968 the Japanese shaped the phrase Total
Quality control and become the world quality
leader.
• In the 1980 the U.S Navel Air Systems coined
the TQM phrase. The Navy based most of the
principles on the Japanese Total Quality Control
Philosophy.
• In 80’s most companies in the world started
applying this concepts and enhanced their
productivity and profitability remarkably.
Benefits of TQM
Tangible Benefits Intangible Intangible Benefits
Benefits
· Improved product quality •Improved employee participation
· Improved productivity · Improved team work
· Reduced quality costs · Improved working relationships
· Increased market and customers · Improved customer satisfaction
· Increased profitability · Improved communication

· Reduced employee grievances · Enhancement of job interest

· Enhanced problem solving

capacity
· Better company image
TQM Implementation
1. Lack of management commitment
2. Lack of faith in and support to TQM activities
among management personnel
3. Failure to appreciate TQM as a cultural
revolution. In other words, inability to change
organizational culture
4. Misunderstanding about the concept of TQM
5. Improper planning
6. Lack of employees commitment
7. Lack of effective communication
8. Lack of continuous training and education
9. Lack of interest or incompetence of leaders
10. Ineffective measurement techniques and lack
of access to data and results
11. Non-application of proper tools and
techniques
12. Inadequate use of empowerment and team
work
 Traditional organization versus TQM
Organization-TQM Implementation
(i) Importance of people
• Traditional management views management as
a commodity and are passive contributors with
little autonomy,
• whereas in TQM practice, people are active
contributors and are recognized for their
creativity and intelligence.
(ii) Importance of quality:
• In traditional management, quality is the
adherence o internal specifications and
standards. Inspection is required to control
defects. There is no innovation in this regard.
• In TQM, quality is defined as products and
services that go beyond the present needs and
expectations of customers.
(iii) Importance of customers:
• Under traditional approach, customers are
always considered as outsiders to the
organisation and are the concern of market and
sales.
• TQM focuses essentially on customers rather
than any other source. It focuses its attention
on change in organizational culture for the
satisfaction of the customers.
(iv) Role of management:
• Management is always reluctant to change and
tries to maintain status-quo by resisting change
under traditional set-up.
• Under TQM, management provides for
continuous improvement and innovation in
processes and systems, products and services.
(v) Management-Union relations:
• Under traditional management, relations
between management and unions are usually
not cordial.
• In TQM approach, union becomes equal partner
in the success of an organisation. Union plays
an active role vis-a-vis management in
employees’ education, training and
development programmes etc.
(vi) Team work:
• There is functional hierarchy due to
hierarchical organisation structure. It tends to
create competition, conflict and adverse
relations between various functions under
traditional set up.
• However, under TQM, formal and informal
mechanisms encourage and facilitate team
work and team development throughout the
entire organisation.
(vii) Organizational structure:
• Traditional management stresses on
hierarchical and vertically structured
organizations.
• TQM, on the other hand, aims at to create a
culture of networking across and among
functions linked through a network of
collaborating (internal and external) suppliers
and customers.
(viii) Span of control:
• Many layers of authority are favoured by
traditional management with short span of
control.
• On the other hand, TQM suggests a flatter
organisation structure with a large spans of
control, where authority is pushed to as down
as possible and flexibility in operations is
encouraged.
 Quality Element Traditional Approach TQM

Definition Product Oriented Customer Oriented

Priorities Second to service and cost First among equals of

service and cost
Decisions Short-term Long term

Emphasis Detection Prevention

Errors Operations System

Responsibility Quality Control Everyone

Problem Solving Managers Teams

Procurement Price Life-cycle cost, Partnership

Managers Role Paln,Assign,Control and Delegate, Coach, Facilitate

Enforce and Mentor
Challenges in TQM Implementation
• Lack of Management commitment
• Inability to change organizational culture
• Improper planning
• Lack of continuous training and education
• Incompatible organizational structure and
isolated individuals and department
• Ineffective measurement techniques and lack of
access to data and results
• Paying inadequate attention to internal and
external customers
• Inadequate use of empowerment and team
work
• Failure to continually improve