TOTAL QUALITY

MANAGEMENT

JSS College of Pharmacy, Mysuru

 What is TQM
• Total quality management (TQM) is continuously
improving quality (CQI) by focusing on customer’s
requirement improving the processes which related
to these expectations and involving everyone in the
process of improvement.
• A people-focused management system that aims at
continual increase of customer satisfaction at
continually lower cost.

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 Some dimensions of product quality
• Performance
• Feature
• Reliability
• Conformance
• Durability
• Serviceability
• Appearance
• Safety
• Perception
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 Some dimension of quality: service
• Time and timeliness
• Completeness
• Courtesy
• Consistency
• Accessibility And Convenience
• Accuracy
• Responsiveness

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 Evolution of TQM
The historical evolution of Total Quality
Management has taken place in four stages :
• Quality inspection
• Quality control
• Quality assurance
• Total quality management

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 TQM – development
• The development of total quality management from
1950 onwards can be credited to the works of
various American experts.
• Among them, Dr. Edward Deming (1982), Dr. Joseph
Juran (1980) and Philip Crosby (1982) have
contributed significantly towards the continuous
development of the subject.

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 Quality Management Practices
Deming’s 14 Points
• Create constancy of purpose toward improvement of
product and service.
• Management must awaken to the challenge, learn their
responsibilities, and take on leadership for change.
• Cease reliance on mass inspection to achieve quality.
Eliminate the need for inspection on a mass basis by
building quality into the product.
• End the practice of awarding business on the basis of price
tags. Instead minimize total cost. Move toward a single
supplier for any one item, building a long term
relationship of loyalty and trust.
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Deming’s 14 Points Cont…
• Constantly improve the system of production
and service to improve quality and productivity
and thus constantly decrease costs.
• Establish on-the-job training.
• Institute leadership. The aim of supervisors
should be to help people, machines and gadgets
to do a better job.
• Drive out fear so that everyone may effectively
for the company.
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Deming’s 14 Points Cont…
• Break down barriers between departments.
People in research, design, sales, and
production must work as a team to foresee
problems that may be encountered with the
product or service.
• Eliminate slogans and targets for the work
force that ask for zero defects and new levels
of productivity. Such aims merely create
adversarial relationships.

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Deming’s 14 Points Cont…
• Leadership should substitute for work standards
(quotas) on the factory floor, management by
objectives, management by numbers and
numerical goals.
• Remove barriers that rob employees,
management, and engineering of their right to
pride of workmanship. Also, abolish annual review
or merit ratings and management by objectives.
The responsibility of supervisors must be changed
from merely looking at numbers to looking at
quality.
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Deming’s 14 Points Cont…
• Institute vigorous education and self-improvement
programs.
• Initiate employees to shoulder the responsibility of
accomplishing the transformation.

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Philosophy, principles and concepts of TQM

TQM is characterised by five principles :

1. Management’s commitment (leadership)
2. Focus on the customer and the employee
3. Focus on facts
4. Continuous improvements
5. Everybody’s participation

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 Management’s Commitment (Leadership)
• To outline quality goals, quality policies and quality plans in
accordance with the four sides of the TQM pyramid.
• Make action plans (Long term & short term plans).
• Make annual quality audit to understand the problems in realizing
the quality plan.
• Bench-marking (a continuous process, the purpose of which is to
measure services, products and procedures against the toughest
competitors or leading procedures in a given market).
• Know your own strengths and weaknesses.
• Know your competitors (opponents) and the best in the field.
• Learn from the best.
• Achieve leadership.

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 Focus on the Customer and the Employee
• In addition to focusing on external customers and
their expectations and demands, it is necessary to
focus on so-called internal customer (employees) and
supplier relations.
• To create customer satisfaction, it is not enough just
to live up to the customer’s expectations.

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 Focus on Facts
The quality process starts with measurements
• External customer’s satisfaction (CSI= Customer
Satisfaction Index) like service level, price, quality,
time of delivery etc.
• Internal customer’s satisfaction (ESI= Employee
Satisfaction Index) by survey, feedback,
performance level, complaints etc.
• Other quality measurements of the firm’s internal
processes, often called ‘quality checkpoints’ and
‘quality control points’.
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 Continuous Improvements
• Higher quality both should and can be achieved
through:
– Internal quality improvements
– External quality improvements
• The main aim of internal quality improvements is to
prevent defects and problems in the internal processes
which will lead to lower costs.
• As their name suggests, external quality improvements
and aimed at the external customer, the aim being to
increase customer satisfaction and thereby achieve a
bigger market share and with it, higher earnings.

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 Everybody’s Participation
• Involve all employees
• Educate and train all employees at all levels in:
– Identifying defects and problems.
– Finding the causes of defects and problems.
– Preventions, i.e. preventing the causes of defects
and problems. Educations and training to
employees facilitate them make suggestions and
implement quality improvements.
– Start again.

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The TQM Formula
TQM = CQI THROUGH
CUSTOMER FOCUS
+
PROCESS
IMPROVEMENT +
TOTAL INVOLVEMENT

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 Elements of TQM

• Top management commitment and involvement

• Customer involvement
• Design products for quality
• Design production processes for quality
• Control production processes for quality
• Develop supplier partnerships
• Customer service, distribution and installation
• Building teams of empowered employees
• Benchmarking (having internal standards) and
continuous improvement
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Continuous Improvements and their
Consequences

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Worst Case Non TQM v/s TQM

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 PLAN
Plan for CQI and build team to do the following :
• Set standards.
• Monitor current quality level and identify problem/s.
• Analyze root causes of problem/s.
• Generate solution/s.
DO : Implement chosen solution/s.
CHECK : Monitor success of solution.
ACT : Adjust solution/s to ensure success and
standardize effective solution/s.

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 THE COMPANY

IMPLEMENTATION OF TQM AT:

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 Rashtriya Ispat Nigam Limited
(Vizag Steel Plant)
• One of the leading public sector enterprises
under the Ministry of Steel, Government of
India
• Located in the state of Andhra Pradesh.

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 Why TQM at RINL?
• TQM was implemented in the company to achieve the
objectives of:

• Preparing the company's products and internal

processes to global standards

• Enhancing quality, productivity, and total performance

of the organization

• Enriching the quality of work life of its employees

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 How TQM was Implemented?
• The journey of TQM in the company began on September
15, 1995 with the setting up of the TQM Cell.
• To meet the quality planning requirements as well as to
facilitate continuous improvement, the company has
established, documented, implemented and maintained
the Quality Management System (QMS) in accordance
with the requirements of the International Standards.
• In order to verify and determine the effective
implementation and maintenance of the QMS, quality
audits were carried out at regular intervals by the Internal
Quality Auditors.

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 The company also implemented a number of
TQM tools such as :
• Formation of Quality Improvement
Projects(QIPs),
• Signing of MOUs
• ISO certification
• Benchmarking
• Employee involvement schemes
• House keeping
• The company embarked upon both external
and internal benchmarking for improving its
production, commercial,

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• It benchmarked with British Steel Co., South
Korea Steel Plant (POSCO)1 SAIL, and Tata
Steel for reduction in the rejection rate,
affrorestation, and improving manpower
productivity respectively.

• Annual improvement action plans were

implemented involving techniques like Kaizen
cycle time reduction for further improvement
in delivery and technological process
upgradation, leading to improvement in
quality of products and enhanced customer
focus.
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Kaizen is defined as a cycle of continuous
improvements focusing on analysing the
performance, brain storming improvement
opportunities, implementing improvement
and documentation of new standard operating
procedure and then repeating the cycle.

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 Tangible benefits of implementing TQM
• Increase in sales per year from Rs. 3263.66 cr to
Rs. 7867.6 cr

• Reduced manufacturing expenses from.

Rs. 3,94,706.6 cr to Rs. 3,46,158.86 cr

• Reduced net loss incurred by the company from

Rs. 6,97,525.90 cr to Rs. 4,00, 94.58 cr

• Reduced the defective products from 5.76% to

1.2%
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• Accident rates reduced from 113 to 107 (both
fatal and non-fatal)

• Customer complaint rates from 0.27 to 0.13

(of total sales)

• Increased productivity rate (tonnes per man

year) from 176 to 194 from the pre-TQM to
post-TQM period.

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Thank you

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