Total quality management

Chapter 1

Concepts of TQM
Try…… their relations

Quality

Management
 Contents

• Introduction.
• Concepts of tqm.
• Benefits of tqm.
• Characteristics of tqm.
• Key elements of tqm.
• Tqm in pharma industry.
• Advantages.
• Disadvantages.
• Conclusion.
• References.

TOTAL QUALITY MANAGEMENT 3

 Introduction
Guilds of Medieval Europe
(From the end of 13th Century to Early 19th Century)
Total Quality Management (TQM)

Antecedents of Modern Quality Management

The Industrial Revolution

(From the end of 17th Century to 1800s)

Craftsmanship

The Factory System

The Taylor System

Total Quality Management (TQM)
Industrial Revolution: The Craftsmanship
Total Quality Management (TQM)

World War II
 Total Quality Management (TQM)

Post World War II

The Birth of Total Quality Management
The birth of the Total Quality Control in US was in direct response to a quality revolution
in Japan following WW-II as Japanese manufacturers converted from Producing Military
Goods for internal use to producing civilian goods for trade.
At first Japan had a widely held reputation for shoddy exports, and their goods were
shunned by international markets. This led Japanese organizations to explore new ways of
thinking about quality.
And from here starts the era of “Quality Gurus”!
 Total Quality Management (TQM)

What is a quality guru?

 A guru, by definition, is a good person, a wise person and a teacher.

 A quality guru should be all of these, plus have a concept and approach to
quality within business that has made a major and lasting impact.
 These gurus have done, and continue to do, that, in some cases, even
after their death.
 The Era of Quality Gurus
There have been three groups of gurus since the
1940’s:
Early 1950’s: Americans who took the messages
of quality to Japan

Late 1950’s: Japanese who developed new

concepts in response to the Americans

1970’s-1980’s: Western gurus who followed the

Japanese industrial success
Total Quality Management (TQM)

The Americans who went to Japan:

J. Edward Deming
Joseph M. Juran Armand V Feigenbaum
Total Quality Management (TQM)

Joseph Juran
Juran is a founder of the Juran Institute in Wilton,
Connecticut. He promoted the concept known as Business
Process Quality, which is a technique of Cross-Functional
Quality Improvement.

He was invited to Japan in 1954 by the Union of Japanese

Scientists and Engineers (JUSE)

He predicted the quality of Japanese goods would overtake

the quality of goods produced in US by Mid-1970s because of
Japan’s revolutionary rate of quality improvement
Total Quality Management (TQM)
W. Edward Deming
Deming, who had become frustrated with American managers when most programs of statistical
quality control were terminated once the war and government contracts came to an end, was invited
to Japan in 1954 by the Union of Japanese Scientists and Engineers (JUSE).

Deming was the main figure in popularizing quality control in Japan and regarded as national hero
in that country.

He believes that quality must be built I into the product at all stages in order to achieve a high level
of excellence.

His thoughts were highly influenced by Walter Shwartz who was the proponent of Statistical
Quality Control (SQC). He views statistics as a management tool and relies on statistical process
control as means in managing variations in a process.
 Total Quality Management (TQM)
W Edwards Deming placed great importance and responsibility on management, at both the individual and
company level, believing management to be responsible for 94% of quality problems. His fourteen point
plan is a complete philosophy of management, that can be applied to small or large organizations in the
public, private or service sectors:
1.Create constancy of purpose towards improvement of product and service
2.Adopt the new philosophy. We can no longer live with commonly accepted levels of delay, mistakes
and defective workmanship
3.Cease dependence on mass inspection. Instead, require statistical evidence that quality is built in
4.End the practice of awarding business on the basis of price
5.Find problems. It is management’s job to work continually on the system
6.Institute modern methods of training on the job
7.Institute modern methods of supervision of production workers, The responsibility of foremen must
be changed from numbers to quality
8.Drive out fear, so that everyone may work effectively for the company
9.Break down barriers between departments
10.Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without prov
methods
11.Eliminate work standards that prescribe numerical quotas
12.Remove barriers that stand between the hourly worker and their right to pride of workmanship
13.Institute a vigorous program of education and retraining
14.Create a structure in top management that will push on the above points every day
Total Quality Management (TQM)

Armand V Feigenbaum was the originator of “total quality

control”, often referred to as total quality.

He defined it as:
“An effective system for integrating quality
development, quality maintenance and quality
improvement efforts of the various groups within an
organization, so as to enable production and
service at the most economical levels that allow full
customer satisfaction”.

He saw it as a business method and proposed three steps to

quality:
• Quality leadership
• Modern quality technology
• Organisational commitment
 Try…..
What is difference between administration and management?
 Introduction

Total - made up of the whole

Quality - degree of excellence a product or service provides
Management - act, art or manner ( method) of planning,
controlling, directing,….

Therefore, TQM is the art of managing the whole to achieve

excellence.

TOTAL QUALITY MANAGEMENT 1

7
 The concept of TQM

• Produce quality work the first time.

• Focus on the customer.

• Have a strategic approach to improvement.

• Improve continuously.

• Encourage mutual respect and teamwork.

TOTAL QUALITY MANAGEMENT 1

8
 Various Definitions
 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.

 According to international organization for standards defined

tqm as, “TQM is a management approach for an organization,
centered on quality, based on the participation of all its
members and aiming at long-term success through customer
satisfaction and benefits to all members of the organization and
to the society. TOTAL QUALITY MANAGEMENT 5
 Characteristics of TQM
 Committed management.
 Adopting and about total quality
communicating management.
 Closer customer relations.
 Closer provider relations.
 Benchmarking.
 Increased training.
 Open organization
 Employee empowerment.
 Flexible production.
 Process improvements.
 Process measuring
TOTAL QUALITY MANAGEMENT 20
 Traditional approach and TQM
Quality element Previous state TQM
Definition Product-oriented Customer-oriented

Priorities Second to service and First among equals of

cost 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, Delegate, coach,
control, facilitate, and
and enforce mentor

TOTAL QUALITY MANAGEMENT 21

 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.

Shared values and beliefs,

Culture expressed by leaders, that define
and support quality.

TOTAL QUALITY MANAGEMENT 22

 Principles of tqm

1. Produce quality work the first time and every time.

2. Focus on the customer.

3. Have a strategic approach to improvement.

4. Improve continuously.

5. Encourage mutual respect and teamwork

TOTAL QUALITY MANAGEMENT 23

 The key elements of the TQM

 Focus on the customer.

 Employee involvement

 Continuous improvement

TOTAL QUALITY MANAGEMENT 24

 Focus on the customer

• It is important to identify the organization’s customers.

• External customers consume the organization’s

product
or service.

• Internal customers are employees who receive the output

of other employees.

TOTAL QUALITY MANAGEMENT 25

 Employee Involvement

• Since quality is considered the job of all employees,

the
employees should be involved in quality initiatives.

• Front line employees are likely to have the closest contact with
external customers and thus can make the most valuable
contribution to quality.

• Therefore, employees must have the authority to innovate and

improve quality.

TOTAL QUALITY MANAGEMENT 26

Continuous improvement

TOTAL QUALITY MANAGEMENT 27

Continuous improvement

TOTAL QUALITY MANAGEMENT 28

 CONTINUOUS IMPROVEMENT
• The mission for quality is a never-ending process in which people
are continuously working to improve the performance, speed and
number of features of the product or service.
• Continuous improvement means that small, incremental
(increasing) improvement that occurs on a regular basis will
eventually add up to vast (huge) improvement in quality.
• TQM is the management process used to make continuous
improvements to all functions.
• TQM represents an ongoing, continuous commitment to
improvement.
• The foundation of total quality is a management philosophy (idea)
that supports meeting customer requirements through continuous
improvement.

TOTAL QUALITY MANAGEMENT 29

 Continuous Process Improvement.
 View all work as process – production and business.

 Process – purchasing, design, invoicing, etc.

 Inputs – process – outputs.

 Process improvement – increased customer satisfaction.

 Improvement – 5 ways:
 reduce resources, reduce errors, meet expectations of
downstream customers, make process safer, make process
more satisfying to the person doing

TOTAL QUALITY MANAGEMENT 30

 THE TQM SYSTEM

Continuous
Objective Improvement

Principles Custom Process Total

er Improvem Involvem
Focus ent ent
Leadership
Elements Education and Training Supportive
structure
Communications Reward and
recognition
Measurement

TOTAL QUALITY MANAGEMENT 31

 BENEFITS OF TQM:

• Improved quality.
• Employee participation.
• Team work.
• Working relationships.
• Customer satisfaction.
• Employee satisfaction.
• Productivity.
• Communication.
• Profitability.
• Market share.

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