Total Quality Management

• UNIT-1
• The concept of quality is multifaceted and can be
approached from various perspectives, but at its core,
quality refers to the degree of excellence or superiority
of something. In different contexts, it can encompass
several dimensions:
• Product or Service Quality:
• Fitness for Purpose: Quality can mean how well a product or service
fulfills its intended use or purpose. This includes reliability, durability,
and functionality.

• Conformance to Requirements: Meeting specified standards,

specifications, or customer expectations is a key aspect of quality.
This involves consistency and adherence to predefined criteria.

• Customer Satisfaction: Quality often relates to the level of

satisfaction experienced by customers when using a product or
service. Meeting or exceeding customer expectations is a significant
factor in determining quality.
• Manufacturing and Process Quality:
• Consistency and Precision: Quality in manufacturing involves
producing goods consistently to defined specifications, with
minimal variation and defects.

• Efficiency and Cost-Effectiveness: Quality is also related to the

efficiency of processes and the ability to deliver goods or services
within a reasonable cost while maintaining high standards.
• Management and Organizational Quality:
• Continuous Improvement: Quality management systems focus on
continuous improvement, such as through methodologies like Six
Sigma or Total Quality Management (TQM).

• Employee Involvement: Quality is often associated with involving

employees at all levels in a culture that prioritizes excellence,
innovation, and problem-solving.
• Perception and Expectation:
• Perceived Value: Quality can be subjective and is often linked to
perceived value. It's not just about meeting technical
specifications but also about how consumers perceive and
appreciate the product or service.

• Expectations Management: Aligning customer expectations with

what is feasible and deliverable is crucial. Sometimes, managing
expectations can be as important as meeting technical standards.
• Importance in Different Industries:

• Manufacturing: In manufacturing, quality is pivotal for ensuring

the consistency and reliability of products, reducing defects, and
meeting customer demands.

• Services: In service industries, quality is about delivering

consistent experiences, meeting customer needs, and providing
excellent service interactions.
• Software: Quality in software involves functionality, usability,
reliability, and performance to ensure the software meets user
requirements and operates without errors.

• In essence, quality is a comprehensive concept that goes beyond

meeting technical specifications. It encompasses meeting
customer needs, achieving excellence, continuous improvement,
and delivering value across various domains and industries.
NEED OF QUALITY
• Quality is like the North Star in any pursuit—it guides us toward
excellence.
• Quality ensures that what we offer or create meets or exceeds
expectations.
• It's about attention to detail, reliability, and the commitment to
delivering the best.
• When we prioritize quality, we build trust, satisfaction, and long-
term success.
Quality in production is crucial for several reasons

• Customer Satisfaction: High-quality products satisfy

customers' needs and expectations, leading to loyalty and
positive reviews. Satisfied customers are more likely to
return and recommend the product to others.
• Reduced Costs: Investing in quality from the outset
minimizes the chances of defects or errors, reducing the
need for rework or recalls. This, in turn, saves both time
and money in the long run.
• Brand Reputation: Consistently delivering high-quality
products enhances a brand's reputation and credibility. It
establishes trust and confidence among consumers.
• Competitive Advantage: In a competitive market, superior
quality can be a key differentiator. It can attract customers
who are willing to pay more for a reliable and well-made
product.
• Efficiency Improvement: Implementing quality control
measures can streamline production processes, leading to
increased efficiency and productivity.
• To ensure quality in production, companies often employ
various techniques like
• Total Quality Management (TQM),
• Six Sigma,
• Lean Manufacturing, and
• Continuous Improvement strategies.
• These methodologies focus on minimizing defects, improving
processes, and involving all employees in maintaining and
enhancing quality standards.
• Not only end product; it's an ongoing process that involves
every stage of production, from design and raw material
selection to manufacturing, testing, and delivery.
Dimensions of a Product:
• The dimensions of a product and the quality of a service are
both essential components of delivering value to
customers. They are:
• Performance: How well does the product function or
perform its intended purpose? This includes its primary
features and capabilities.
• Features: Additional elements or functionalities that
enhance the product's appeal or utility beyond its basic
function.
• Reliability: The consistency of performance over time and
under different conditions. A reliable product is dependable
and durable.
• Conformance: How well the product meets established
standards and specifications.
• Durability: The lifespan of the product and its ability to
withstand wear and tear.
• Serviceability: Ease of maintenance, repair, and support for
the product throughout its lifecycle.
• Aesthetics: The design, look, and feel of the product, which
contribute to its appeal.
Quality of Service:

• Tangibles: Physical aspects of service delivery, such as facilities,

equipment, and appearance of personnel.
• Reliability: Consistency and dependability in delivering the
promised service accurately and on time.
• Responsiveness: Promptness and willingness to help
customers and provide timely service.
• Assurance: Knowledge, competence, and credibility of service
providers to instill trust and confidence in customers.
• Empathy: Understanding and caring for customers' needs,
demonstrating a personalized approach.
• Customer Expectations: Meeting or exceeding customers'
expectations regarding the service provided.
• Both product and service quality dimensions aim to meet
or exceed customer expectations. While products are
tangible, services are intangible and rely heavily on
interactions and experiences. However, both must focus on
consistent performance, reliability, and meeting customer
needs.

• Companies often use quality management systems,

customer feedback mechanisms, employee training, and
continuous improvement strategies to ensure high
standards in both product and service delivery.
Concept of TQM Total Quality Management
• Total Quality Management (TQM) is a holistic approach to
managing quality throughout an organization. It's a
philosophy that involves every employee in the quest for
continuous improvement and customer satisfaction. Here are
its key principles:
• Customer Focus: Understanding and meeting customer needs
and expectations are central to TQM. This involves gathering
customer feedback, understanding their requirements, and
aligning products or services accordingly.
• Continuous Improvement: TQM promotes a culture of
continuous improvement in processes, products, and
services. It involves identifying areas for enhancement,
making incremental changes, and striving for perfection.
• Employee Involvement: Every employee plays a role in quality
improvement. TQM encourages involvement, empowerment, and
active participation of employees at all levels to contribute their
ideas and efforts toward quality enhancement.
• Process-Centered Approach: TQM emphasizes the importance of
efficient processes. It involves analyzing and improving processes to
enhance quality, reduce waste, and increase efficiency.
• Fact-Based Decision Making: TQM relies on data and facts rather
than assumptions or gut feelings. Decisions are made based on
thorough analysis and evidence.
• Supplier Relationships: TQM recognizes the significance of strong
supplier relationships. Collaborating with suppliers ensures the
quality of incoming materials and fosters mutual improvement.
• Leadership Commitment: Strong leadership support and
commitment are vital for the successful implementation of
TQM. Leaders set the vision, provide resources, and create
an environment conducive to quality improvement.

• Implementing TQM requires a long-term commitment and

a cultural shift within an organization. It involves training,
communication, establishing quality metrics, and creating
structures that support continuous improvement efforts.
• Successful TQM implementation can lead to improved
customer satisfaction, reduced costs due to fewer defects,
increased efficiency, and a more competitive position in the
market.
TQM
framework
TQM framework
• Total Quality Management (TQM) encompasses various principles and
methods that form a framework for achieving quality excellence.
Here's an outline of the key components within a TQM framework:
• Customer Focus: Understanding and meeting customer needs drive
TQM. This involves gathering customer feedback, conducting market
research, and aligning products or services to customer expectations.
• Continuous Improvement: Also known as Kaizen, this principle
emphasizes ongoing, incremental improvements in processes,
products, and services. It involves everyone in the organization and
aims for small, manageable changes that collectively lead to
significant improvements.
TQM framework
• Employee Involvement: TQM relies on the active participation
and engagement of all employees. It encourages a culture where
employees feel empowered to contribute ideas for improvement,
take ownership of their work, and participate in decision-making
processes.
• Process Management: TQM emphasizes the importance of
effective and efficient processes. It involves analyzing existing
processes, identifying areas for improvement, and implementing
changes to optimize workflow and eliminate waste.
• Supplier Relationships: Collaborating with suppliers is crucial in
TQM. Developing strong relationships with suppliers ensures the
quality of incoming materials, promotes mutual improvement,
and helps in creating a more integrated supply chain.
• Leadership Commitment: Leadership plays a critical role in driving
TQM. Leaders set the vision, establish a supportive environment for
quality initiatives, allocate resources, and serve as role models for
the organization.
• Data-Driven Decision Making: TQM relies on data and metrics to
make informed decisions. It involves collecting, analyzing, and
interpreting data to identify areas for improvement and measure
progress.
• Training and Development: TQM recognizes the importance of
continuous learning and development. Providing employees with
training and educational opportunities helps enhance their skills and
knowledge, enabling them to contribute more effectively to quality
improvement efforts.
• Implementing TQM often involves the Plan-Do-Check-Act (PDCA)
cycle, a continuous improvement model consisting of four steps:
planning, implementing, evaluating, and acting upon the results.
This cycle fosters ongoing improvement in processes and products.

• Successful implementation of TQM requires commitment from top

management, a focus on teamwork and collaboration, a willingness
to embrace change, and a dedication to meeting and exceeding
customer expectations.
Contribution of Edwards Deming to TQM
• W. Edwards Deming was
a key figure in the
development and
implementation of Total
Quality Management
(TQM) principles. His
contributions were
instrumental in
transforming approaches
to quality management.
• Dr. W. Edwards Deming offered 14 key principles for
management to follow to improve the effectiveness of a
business or organization significantly. They are:

• 1. Create constancy of purpose toward improvement of

product and service, with the aim to become competitive
and to stay in business, and to provide jobs.

• 2. Adopt the new philosophy. We are in a new economic

age. Western management must awaken to the challenge,
must learn their responsibilities, and take on leadership for
change.
• 3. Cease dependence on inspection to achieve quality.
Eliminate the need for inspection on a mass basis by
building quality into the product in the first place.

• 4. End the practice of awarding business on the basis of

price tag. Instead, minimize total cost. Move toward a
single supplier for any one item, on a long-term relationship
of loyalty and trust.

• 5. Improve constantly and forever the system of production

and service, to improve quality and productivity, and thus
constantly decrease costs.
• 6. Institute training on the job.
• 7. Institute leadership. The aim of supervision should be to
help people and machines and gadgets to do a better job.
Supervision of management is in need of overhaul, as well
as supervision of production workers.

• 8. Drive out fear, so that everyone may work effectively for

the company.

• 9. Break down barriers between departments. People in

research, design, sales, and production must work as a
team, to foresee problems of production and in use that
may be encountered with the product or service.
• 10. Eliminate slogans, exhortations, and targets for the
work force asking for zero defects and new levels of
productivity. Such exhortations only create adversarial
relationships, as the bulk of the causes of low quality and
low productivity belong to the system and thus lie beyond
the power of the work force.

• 11a. Eliminate work standards (quotas) on the factory floor.

Substitute leadership.

• 11b. Eliminate management by objective. Eliminate

management by numbers, numerical goals. Substitute
leadership.
• 12a. Remove barriers that rob the hourly worker of his right
to pride of workmanship. The responsibility of supervisors
must be changed from sheer numbers to quality.
• 12b. Remove barriers that rob people in management and
in engineering of their right to pride of workmanship. This
means, inter alia, abolishment of the annual or merit rating
and of management by objective.
• 13. Institute a vigorous program of education and self-
improvement.
• 14. Put everybody in the company to work to accomplish
the transformation. The transformation is everybody's job.
• 7. Institute leadership. The aim of supervision should be to
help people and machines and gadgets to do a better job.
Supervision of management is in need of overhaul, as well
as supervision of production workers.

• 8. Drive out fear, so that everyone may work effectively for

the company.

• 9. Break down barriers between departments. People in

research, design, sales, and production must work as a
team, to foresee problems of production and in use that
may be encountered with the product or service.
• Here are some of Deming's significant contributions to TQM:
• System of Profound Knowledge (SoPK): Deming introduced the
System of Profound Knowledge, consisting of four interrelated
components: appreciation for a system, understanding variation,
theory of knowledge, and psychology. This holistic approach
emphasizes the interconnectedness of elements within an
organization and the importance of understanding the broader
system.
• PDCA Cycle: Deming advocated the Plan-Do-Check-Act (PDCA) cycle,
a continuous improvement methodology. This cycle involves
planning a change, implementing it, observing its effects (checking),
and then acting on those observations to make further
improvements. The PDCA cycle is fundamental to TQM's continuous
improvement ethos.
• Focus on Continuous Improvement: Deming stressed the need for
continuous improvement in processes, products, and services. He
emphasized that achieving quality is an ongoing process rather than
a one-time goal, advocating for a culture of constant refinement.
• Elimination of Management by Objective (MBO): Deming challenged
the concept of management by objectives and targets, emphasizing
instead the need for leaders to focus on the long-term systemic
improvement of processes and systems.
• Statistical Process Control (SPC): Deming's work heavily involved
statistical methods and control mechanisms. He emphasized the
importance of understanding and managing variation in processes
through statistical tools like control charts, histograms, and Pareto
charts.
• Transformational Leadership: Deming advocated for a transformation
in leadership style, encouraging a shift from authoritarian
management to leadership that facilitates cooperation, trust, and
empowerment of employees.

• Quality as a Competitive Advantage: Deming's teachings highlighted

that quality should not be seen as an added cost but as a competitive
advantage. He believed that organizations that prioritize quality tend
to be more successful and competitive in the long run.

• Deming's teachings and philosophies profoundly influenced the field of

quality management, particularly in Japan where his ideas had a
significant impact on the post-war economic recovery. His emphasis on
continuous improvement, statistical analysis, and a systems approach
to management laid the foundation for modern TQM practices and
their widespread adoption globally.
• Joseph M. Juran, like Deming,
made significant contributions to
the field of Total Quality
Management (TQM). His work
focused on quality management
principles and practices that
complemented Deming's ideas.
• Here are some key contributions of Juran to TQM:
• Quality Trilogy: Juran introduced the concept of the Quality Trilogy,
consisting of three key processes: quality planning, quality control,
and quality improvement. This trilogy provides a structured
approach to managing quality across all levels of an organization.
• Fitness for Use: Juran emphasized the idea that quality should be
defined in terms of "fitness for use" or meeting customer needs and
expectations. He stressed the importance of understanding and
addressing customer requirements in determining quality standards.
• Cost of Quality (COQ): Juran popularized the concept of the Cost of
Quality. He categorized quality-related costs into prevention costs,
appraisal costs, internal failure costs, and external failure costs.
Understanding and managing these costs were integral to his
approach to quality management.
• Pareto Principle in Quality Management: Juran applied the Pareto
Principle (80/20 rule) to quality, suggesting that a significant
majority of problems arise from a small number of causes. He
advocated for focusing efforts on resolving these vital few issues to
achieve significant quality improvements.
• Quality Planning: Juran emphasized the importance of proactive
quality planning, which involves setting quality goals, identifying
processes that need improvement, and establishing methods to
achieve those goals.
• Management's Role in Quality: Similar to Deming, Juran emphasized
the responsibility of management in fostering a culture of quality
throughout an organization. He highlighted the need for leadership
commitment, involvement, and support for quality initiatives.
• Training and Education: Juran stressed the importance of providing
employees with training and education in quality management
principles. He believed that a knowledgeable and skilled workforce
was crucial for achieving and maintaining high-quality standards.
• Juran's contributions helped shape the understanding and
implementation of TQM. His focus on quality planning, customer
needs, cost management, and the role of management in quality
leadership complemented Deming's principles, providing a
comprehensive framework for organizations to achieve and sustain
high levels of quality and customer satisfaction.
• Philip B. Crosby was another influential figure in the field of Total
Quality Management (TQM), contributing significant ideas and
principles that shaped quality management practices. Here are
some key contributions of Crosby to TQM:
• Zero Defects: Crosby introduced the concept of "Zero Defects,"
emphasizing the importance of preventing errors and defects rather
than correcting them after they occur. He believed that
organizations should strive for perfection and eliminate defects at
the source.
• Quality is Free: Crosby proposed the idea that investing in quality
does not add extra costs but, in fact, saves money. His "Quality is
Free" concept suggested that the costs associated with poor quality,
such as rework, scrap, and customer dissatisfaction, outweigh the
investments made in prevention and quality improvement.
• The Four Absolutes of Quality Management: Crosby articulated four
principles known as the Four Absolutes of Quality Management,
which are:

• Quality is defined as conformance to requirements.

• The system for achieving quality is prevention, not appraisal.
• The performance standard is zero defects.
• The measure of quality is the price of non-conformance.
• Quality Improvement Process: He advocated for a structured
approach to quality improvement, emphasizing the importance of
defining quality standards, measuring performance against those
standards, and taking corrective actions to improve quality.
• Management Commitment: Crosby emphasized the crucial role of top management in fostering a quality-
oriented culture within an organization. He believed that management commitment and leadership were
essential for successful quality improvement initiatives.

• Education and Training: Similar to other TQM proponents, Crosby stressed the significance of educating and
training employees at all levels to understand quality principles, methods, and their roles in achieving
quality objectives.

• Quality Management Maturity Grid: Crosby introduced the Quality Management Maturity Grid, a tool that
helps organizations assess their level of maturity in quality management practices and identify areas for
improvement.

• Crosby's contributions, particularly the concepts of Zero Defects and Quality is Free, brought attention to
the importance of prevention and the cost of poor quality. His emphasis on management commitment,
education, and structured quality improvement processes influenced the evolution of TQM practices,
providing organizations with frameworks to achieve higher levels of quality and performance.
• mplementing Total Quality Management (TQM) can face several obstacles within an organization.
Some common challenges include:

• Resistance to Change: Resistance from employees and management to adopt new practices and
philosophies is a significant obstacle. TQM often requires a cultural shift towards continuous
improvement, which can be met with skepticism or reluctance.

• Lack of Leadership Commitment: Without visible and consistent support from top management,
TQM initiatives may struggle to gain traction. If leaders don't champion quality improvement
efforts, it becomes challenging to instill a culture of quality throughout the organization.

• Short-Term Focus vs. Long-Term Goals: Organizations may prioritize short-term financial gains
over long-term quality improvements. This focus on immediate results might hinder investments
in quality practices that yield benefits over time.
• Poor Communication: Inadequate communication about the goals, processes, and
benefits of TQM can lead to misunderstandings and lack of buy-in from employees.
Clear and effective communication is crucial for successful implementation.

• Lack of Employee Involvement: TQM requires active participation and contribution

from all employees. If employees are not engaged or empowered to participate in
improvement initiatives, the effectiveness of TQM can be limited.

• Resource Constraints: Insufficient resources—financial, technological, or human—

can hinder the implementation of TQM practices. Adequate investment in training,
technology, and infrastructure is crucial for successful adoption.
• Overemphasis on Tools and Techniques: Sometimes, organizations focus too much on
tools and techniques without understanding the underlying philosophy of TQM. Merely
implementing tools without a comprehensive understanding often leads to failure.

• Inadequate Measurement and Feedback Systems: Without proper metrics and

feedback mechanisms in place, it becomes challenging to assess the effectiveness of
TQM initiatives and make informed decisions for improvement.

• Overcoming these obstacles often requires a combination of leadership commitment,

cultural change, employee involvement, effective communication, and a long-term
strategic approach. Organizations that successfully navigate these challenges can realize
substantial benefits in terms of improved quality, customer satisfaction, and overall
performance.
• A customer's perception of quality plays a crucial role in shaping their satisfaction
and loyalty towards a product or service. It's not just about meeting technical
specifications but aligning with the customer's expectations and experiences. Here's
how customers perceive quality:

• Meeting Needs and Expectations: Customers perceive quality based on how well a
product or service meets their needs and fulfills their expectations. It's not solely
about the features but whether it solves their problems or delivers the promised
benefits.

• Reliability and Consistency: Consistency in performance and reliability influences a

customer's perception of quality. A product that consistently delivers its promised
function without failure or defects creates a positive perception.
• Perceived Value: Quality is often associated with value. Customers assess whether the
benefits they receive from a product or service justify the cost. Even a lower-priced
item can be perceived as high quality if it delivers on its intended purpose effectively.

• Service and Support: For services, the customer's perception of quality extends
beyond the core service to the overall experience, including interactions with
customer support or after-sales service. How well their issues are addressed impacts
their perception of quality.

• Brand Reputation: A brand's reputation significantly influences how customers

perceive quality. A brand with a history of delivering high-quality products or services
tends to create a positive perception even before the purchase.
• Aesthetics and Design: The visual appeal, design, and aesthetics of a product influence
a customer's perception of its quality. A well-designed product often suggests
attention to detail and higher quality.

• Word-of-Mouth and Reviews: Customers often rely on reviews, recommendations,

and word-of-mouth experiences of others to gauge the quality of a product or service.

• Understanding these facets of customer perception is vital for businesses aiming to

deliver high-quality products or services. It requires not only meeting technical
standards but also aligning with customer expectations, consistently providing value,
and ensuring a positive overall experience. Meeting or exceeding these expectations is
essential for building trust, loyalty, and positive brand perception among customers.
• Customer retention refers to the ability of a business to retain its existing
customers over a specified period. It's a critical metric that reflects the loyalty and
satisfaction of customers with a company's products or services. Here are
strategies to enhance customer retention:

• Exceptional Customer Service: Providing excellent customer service is crucial for

retaining customers. Promptly addressing queries, concerns, and issues creates a
positive experience and fosters loyalty.

• Personalization: Tailoring products or services to meet individual customer needs

and preferences enhances their satisfaction. Personalized communication and
offers show that you value their specific requirements.
• Consistent Quality: Maintaining consistent quality in products or services builds trust and
encourages customers to return. Reliability and meeting expectations are key factors in
customer retention.

• Loyalty Programs: Implementing loyalty programs, discounts, or rewards for repeat

purchases incentivizes customers to stay engaged with your brand.

• Regular Communication: Keeping in touch with customers through newsletters, updates, or

relevant content helps maintain a connection, reinforcing the value of your brand.

• Seek Feedback: Actively seek feedback from customers to understand their needs and
improve your offerings. Addressing their concerns demonstrates a commitment to their
satisfaction.
• Community Engagement: Building a community or forum around your brand encourages customer
interaction and fosters a sense of belonging, increasing their loyalty.

• Anticipate and Exceed Expectations: Go above and beyond in surprising customers with unexpected offers,
gestures, or solutions to their problems. This creates memorable experiences and strengthens loyalty.

• Employee Training: Ensure your employees are trained to provide exceptional service and are knowledgeable
about the products or services. Positive interactions with staff can significantly impact customer retention.

• Measure and Analyze: Use analytics and customer feedback to understand churn rates, identify reasons for
attrition, and refine strategies to improve retention.

• Remember, retaining customers is often more cost-effective than acquiring new ones. Prioritizing customer
satisfaction, providing value, and building long-term relationships can significantly contribute to a company's
success by fostering a loyal customer base.