TOTAL QUALITY

MANAGEMENT
TQM
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 WHAT IS TQM?

 A core definition of total quality management (TQM) describes a

management approach to long-term success through customer
satisfaction.
 All the members of an organization participate in improving
processes, products, services and the culture in which they work.
 Enhance market image, improve customer satisfaction, reduce
wastages, Increase loyalty of customer.
 OBJECTIVES OF TQM

 Meeting customer requirements.

Customer Customer Positive

Recommendation
satisfaction loyalty WOM

 The secondary objective is continuous improvement.

 Develop relationship of openness and trust among the employees.

 CONCEPTS OF TQM

1. Continual improvement: Ongoing

improvement of products, services or processes in incremental way
than a sudden breakthrough.
• Plan : Identify opportunity for change
• Do : Implement change on small scale
• Check : Use data, analyze to check if change made difference
• Act : If successful, implement In large scale
 CONCEPTS OF TQM

2. Employee empowerment: The ways in

which organizations provide their employees with a certain degree
of autonomy and control.
A key principle - Providing employees the means for making important
decisions and helping ensure those decisions are correct.
 CONCEPTS OF TQM

3. Benchmarking: Benchmarking is a
systematic method by which an organization can measure
themselves against the best industry practices..
• Moving from where we are to where we want to be.
• It inspires the managers and organizations to compete.
 CONCEPTS OF TQM

4. Just In Time (JIT) An inventory management

method in which goods are received from suppliers only as they are
needed.
• The objective being to reduce inventory holding costs and increase
inventory turnover.
• Requires careful planning of the entire supply chain.
HOW DOES JIT
WORK?
 CONCEPTS OF TQM

5. Taguchi concept: Taguchi method of quality control focuses on

design and development to create efficient, reliable products.
Its founder, Genichi Taguchi, considers design to be more important
than the manufacturing process in quality control.
L = D2*C
L =Loss to society
D = Distance form target value
C = Cost
 PRIMARY ELEMENTS OF TQM

• Customer-focused: The customer

determines the whether the efforts of the improvement were worth-
while or not.

• Strategic and systematic approach: Includes

formulation of strategic plan that integrates quality as a core
component.
 PRIMARY ELEMENTS OF TQM

• Fact-based decision making: TQM requires that

an organization continually collect and analyze data in order to
improve decision making accuracy.

• Communications: Effective
communications plays a large part in maintaining morale and in
motivating employees at all levels.
 TOOLS OF TQM

1. Pareto Analysis
Named after Vilfredo Pareto-an Italian
economist.
Pareto analysis states that 80% of a project's
benefit or results are achieved from 20% of the
work-or conversely.
Thus, effort aimed at the right 20% can solve
80% of the problems.
 TOOLS OF TQM

2. Scatter diagram
The scatter diagram graphs pairs of numerical data, with one variable on
each axis, to look for a relationship between them.
Diagram between two variables as Productivity and Absenteeism.
Productivity

Absenteeism
 TOOLS OF TQM

3. Cause and effect diagram

(Ishikawa diagram)

The cause-and-effect diagram is a

method for analyzing process
dispersion. The diagram's purpose is
to relate causes and effects.
 TOOLS OF TQM

4. Statistical Process Control (SPC)

Statistical process control (SPC) is a method of quality control which
employs statistical methods to monitor and control a process.

This helps to ensure that the process operates efficiently, producing

more specification-conforming products with less waste (rework or
scrap).
 TOOLS OF TQM

5. Check sheet
Organized method of recording data, in which defects are recorded on
hourly basis in Log Sheet of each department.
Check sheet makes it easy to collect data for specific purpose and to
present it in a way that automatically converts it into useful information.
TOOLS OF TQM
 BENEFITS OF TQM

1. Less product defects: The products ship with fewer defects, which
reduce product recalls, future customer support overhead and
product fixes.

2. Satisfied customers: High-quality products meets customers needs

and results in higher customer satisfaction.
 BENEFITS OF TQM

3. Lower cost: Less defects means companies save cost in customer

support, product replacements, field service.

4. Well-defined cultural values: Organizations that practice TQM

nurture core values around quality management and continuous
improvement.
 ENDNOTE

Successful implementation of these Total Quality Management

concepts will not come overnight.
TQM often represents a large cultural shift, so the changes have to be
implemented in phases to lessen the impact.