•MBA Semester VII

Total Quality Management (8515)

•Notes by Awais Javed Satti
 TQM notes by Awais Javed Satti

Unit 1: Introduction to Total Quality

Management
1.1 Defining Total Quality Management
1.2 Basic Approaches of Total Quality
Management
1.3 Gurus of Total Quality Management
1.4 TQM Framework
1.5 Awareness about the improved quality
1.6 Historical Review
1.7 Obstacles in implementing TQM
1.8 Benefits of TQM
 TQM notes by Awais Javed Satti

Defining Quality

• The standard of something as measured

against other things of a similar kind; the
degree of excellence of something.
• In business, engineering, and manufacturing,
quality has a basic interpretation as the non-
inferiority or superiority of something; it's also
defined as being suitable for its intended
purpose while satisfying customer
expectations.

Q= P/E ( where Q is quality, P is performance and E is expectation)

Dimensions of Quality

TQM notes by Awais Javed Satti

 Dimensions of Quality
1. Performance:
It involves the various operating characteristics of the product. For a television set, for
example, these characteristics will be the quality of the picture, sound, and longevity of the
picture tube.
2. Features:
These are characteristics that are supplemental to the basic operating characteristics. In an
automobile, for example, a stereo CD player would be an additional feature.
3. Reliability:
Reliability of a product is the degree of dependability and trustworthiness of the benefit of the
product for a long period of time.
It addresses the probability that the product will work without interruption or breaking down.
4. Conformance:
It is the degree to which the product conforms to pre-established specifications. All quality
products are expected to precisely meet the set standards.
TQM notes by Awais Javed Satti
 Dimensions of Quality
5. Durability:
It measures the length of time that a product performs before a replacement becomes necessary.
The durability of home appliances such as a washing machine can range from 10 to 15 years.
6. Serviceability:
Serviceability is the ease of getting repairs, the speed of repairs, and the courtesy and
competence of the repairperson.
7. Aesthetics:
Aesthetics tells how a product looks, feels, sounds, smells or tastes. Automobile companies
make sure that in addition to functional quality, the automobiles are also artistically attractive.
8. Perceived quality:
An equally important dimension of quality is the perception of the quality of the product in the
mind of the consumer. Honda cars, Sony Walkman and Rolex watches are perceived to be high-
quality items by the consumers.

TQM notes by Awais Javed Satti

 TQM notes by Awais Javed Satti

Model of Quality
 TQM notes by Awais Javed Satti

Defining Total Quality Management

• Total – Made up of whole
• Quality – Degree of excellence of a product or service
• Management – Act, art or manner of handling, controlling and directing etc.
Therefore, TQM is the art of managing the whole to achieve excellence.

TQM is defined as the foundation of continuously improving organization. It is the

application of quantitative methods and human resources to improve all the process within an
organization to exceed the customer expectations about needs now and in the future.
Total quality management (TQM) has been defined as an integrated organizational effort
designed to improve quality at every level.
The process to produce a perfect product by a series of measures require an organized effort
by the entire company to prevent or eliminate errors at every stage in production is called
total quality management.
 TQM notes by Awais Javed Satti

Basic Approaches of TQM

TQM Requires six basic concepts
1. A committed and involved management to provide
long-term top-to-bottom organizational support.
2. An unwavering focus on the customer, both internally
and externally.
3. Effective involvement and utilization of the entire
workforce.
4. Continuous improvement of the business and
production process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.
 TQM notes by Awais Javed Satti

Produce quality work the first time.

Focus on the customer.

Principles of Have a strategic approach to

TQM improvement

Improve continuously.

Encourage mutual respect and

teamwork.
 TQM notes by Awais Javed Satti

Committed management.

Adopting and communicating about total quality management.

Closer customer relations.

Closer provider relations.

Benchmarking.
Characteristics Increased training.
of TQM
Open organization

Employee empowerment.

Flexible production.

Process improvements.

Process measuring
 TQM notes by Awais Javed Satti

Traditional Approach & TQM

Quality Element Previous State 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
Manager’s role Plan, assign, control, and Delegate, coach, facilitate, and
enforce mentor
 TQM notes by Awais Javed Satti

Key Elements of TQM

1. Focus on the customer
2. Employee involvement
3. Continuous improvement

The three aspects of TQM

Counting Tools, techniques, and training in their use for analyzing,
understanding, and solving quality problems
Customers Quality for the customer as a driving force and central concern

Culture Shared values and beliefs, expressed by leaders, that define and
support quality
 TQM notes by Awais Javed Satti

Gurus of Total Quality Management

1. Dr. Walter Shewhart
First of the Top Ten Quality Gurus is Dr. Walter Shewhart who developed the Plan, Do, Check,
Act (PDCA) cycle (known as “Plan-Do-Study-Act” in some circles) as well as theories of process
control and the Shewhart transformation process.
2. Dr. W. Edwards Deming
Dr. Deming developed his complete philosophy of management, which he encapsulated into his
“fourteen points” and the “seven deadly diseases of management”. He advanced the state of quality,
originally based on work done by Shewhart with his explanations of variation, use of control charts,
and his theories on knowledge, psychology and variation. Deming greatly helped to focus the
responsibility of quality on management and popularized the PDCA cycle, which led to it being
referred to as the “Deming Cycle”.
3. Dr. Joseph M. Juran
Dr. Juran developed the quality trilogy – quality planning, quality improvement, and quality
control. Quality assurance policy statement and procedures quality improvements that raise the level
of performance, which then must be controlled or sustained at that level in order to start the cycle
again.
 TQM notes by Awais Javed Satti

Gurus of Total Quality Management (cont.)

4. Armand V. Feigenbaum
Mr. Feigenbaum developed the idea of total quality control based on three steps to quality consisting
of quality leadership, modern quality technology, and an organizational commitment to quality.
5. Dr. Kaoru Ishikawa
Dr. Ishikawa developed the Ishikawa diagram, also known as the fishbone or cause-effect diagram. He
was known for popularizing the seven basic tools of quality and the philosophy of total quality.
6. Dr. Genichi Taguchi
Dr. Taguchi developed the “Taguchi methodology” of robust design, which focused on making the
design less sensitive to variation in the manufacturing process, instead of trying
to control manufacturing variation. This idea of “designing in quality” has become an important tenant
of six sigma today.
7. Shigeo Shingo
Shigeo Shingo developed lean concepts such as Single Minute Exchange of Die (SMED) or reduced
set-up times instead of increased batch sizes, as well as Poka-Yoke (mistake proofing) to eliminate
obvious opportunities for mistakes. He also worked with Taiichi Ohno to refine Just-In-Time (JIT)
manufacturing into an integrated manufacturing strategy, which is widely used to define the lean
manufacturing used in the Toyota production system (TPS).
 TQM notes by Awais Javed Satti

Gurus of Total Quality Management (cont.)

8. Philip B. Crosby
Philip B. Crosby was the quality guru that developed the idea of Cost of Poor Quality (COPQ) to
explain how “quality is free”.  He believed implementing quality improvement pays for itself through
the savings from the improvement, increased revenue from greater customer satisfaction, and the
improved competitive advantage that results. He popularized “zero defects” to define the goal of a
quality program as the elimination of all defects and not the reduction of defects to an acceptable
quality level.
9. Dr. Eliyahu M. Goldratt
Dr. Goldratt developed the Theory of Constraints which focuses on a single element in a process chain
as having the greatest leverage for improvement (i.e., “1% can have a 99% impact”). This compares to
the Pareto principle which states that 20% of the factors have an 80% effect on the process.
10. Taiichi Ohno
Last of the Top Ten Quality Gurus we will discuss is Taiichi Ohno. He developed the seven wastes
(muda), which are used in lean to describe non-value-added activity. He developed various
manufacturing improvements with Shigeo Shingo that evolved into the Toyota Production System.
 TQM notes by Awais Javed Satti

TQM Framework
 TQM notes by Awais Javed Satti

• An organization will not transform to TQM until it

becomes aware of the fact that the quality of the
product or service must be improved. Awareness
comes about when an organization losses market
share, or realizes that quality and productivity go hand

Awareness
by hand. It also occurs when it is mandated by the
management when it recognizes that TQM is a better
way to run business and compete in domestic and

of TQM world markets.

• TQM does not occurs overnight; there are no quick
remedies. It takes long time to build the appropriate
emphasis and techniques into the culture. Over
emphasis on short-term results and profits must be set
aside so long-term planning and constancy of purpose
will prevail.
 History of
1920s
TQM
Some of the first seeds of quality management were planted as the principles of scientific management swept through
U.S. industry.
Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose as
workers were deprived of a voice in the conditions and functions of their work.
The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by participation.
1930s Walter Shewhart developed the methods for statistical analysis and control of quality.
1950s W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and
executives. This can be considered the origin of TQM.
Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.
Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present understanding of TQM, was
published.
Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many companies.
1968 The Japanese named their approach to total quality "companywide quality control." It is around this time that the
term quality management systems arises.
Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality leader.
Today Quality standards such as the ISO 9000 series and quality award programs such as the Deming Prize and the Malcolm
Baldrige National Quality Award specify principles and processes that comprise TQM.
TQM as a term to describe an organization's quality policy and procedure has fallen out of favor as international
standards for quality management have been developed. Please see our series of pages on quality management
systems for more information.
 TQM notes by Awais Javed Satti

Quality Management philosophy was evolved

in Japan after second world war.
An American expert Edwards Deming helped
Japanese to apply concepts of TQM.
Evolution of In 1968 the Japanese shaped the phrase Total
Quality Control and became the world quality
the term leader.
In the 1980 the U.S. Navel Air Systems coined
TQM 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 concept and enhanced their
productivity and profitability remarkably.
 1. Lack of management commitment
2. Inability to change organizational culture
3. Improper planning
Obstacles in 4. Lack of continuous training and education
5. Isolated individuals and departments
Implementing 6. Ineffective measurement techniques
TQM 7. Paying inadequate attention to internal &
external customers
8. Inadequate use of empowerment and
teamwork
9. Failure to continually improve
 TQM notes by Awais Javed Satti

Improved quality
Employee participation
Team work
Working relationships
Benefits of Customer satisfaction
TQM Employee satisfaction
Productivity
Communication
Profitability
Market share