INTRODUCTION OF TOTAL QUALITY customers face with the product

MANAGEMENT performance.
QUALITY 2. QUALITY OF CONFORMANCE
- Non-existence of defects - Quality control from raw materials to
- Meet customer expectation finished products.
- Need controlled process improvement a) Defect Detection - Inspection, testing
to exceed customers expectations or statistical data analysis collected
- Pride and Loyalty (Customer’s Loyalty) from process.
- Nonstop improvement b) Defect Root Cause Analysis - Root
- Can only be observed through the eyes cause behind the presence of defects
of the customers. is investigated, corrective actions to
prevent recurrence of the defect.
APPROACH TO QUALITY DEFINITION c) Defect Preventions - Deter the
- In his book Managing Quality, Harvard occurrence defects and is usually
Professor, David Gavin summarized achieved using statistical process
five principles approact to defining control techniques.
quality. 3. QUALITY OF PERFOMANCE
1. TRACENDENT - How sound the product functions or
- Innane excellence service performs when put in use.
- Absolute/Universally recognized - Measure the degree from the angle of
- Through experience quality of design together with the
2. PRODUCT-BASED quality of conformance.
- Quantifiable or measurable - Focuses on meeting the customer’s
characteristic expectations.
- Durability – how long it will last QUALITY LEVELS
- Reliability – likelihood it will fail - Quality focused organization must
3. USER-BASED evaluate at three namely
- Founded on the idea that quality is an organizations, process and individuals.
individual issue and what best please - Resolve around its customer quality
their preference (perceived quality) is requirement.
those with the highest quality. - A customer is anyone who receive on
- Customer preference differ extensirely. or more of the organization’s product
- Quality and customer satisfaction is or service who could be an internal or
not the same. external one.
4. MANUFACTURING-BASED - Timeliness, accessibility and value for
- Focused mainly on engineering and money are quality features for a
manufacturing practices. customer.
- Superiority in quality is not - Benchmarking should be continuing
automatically in the eye of the to compete and deliver demanded
beholder but rather in the stahdards customer requirements.
set by the organization. - Customer Feedback is also essential
5. VALUE-BASED to ensure that organization quality
- Defined using costs and prices as well management is constant concern.
as the number of attributes - Feedback on a regular basis must
- Based on 5 criteria quality and value. come from both internal and external
QUALITY TYPES customers.
- Quality meeting and exceeding 1. PROCESS LEVEL
customer expectation at a price that - Units of the organization are
he/she is willing to pay to process the categorized into function or
product or service. department like marketing, operation,
1. QUALITY OF DESIGN finance and human resources.
- Set characteristics must minimally - Cross-functional
have to satisfy the requirement of the 2. PERFORMANCE/JOB/TASK DESIGN
custom based on market research. LEVEL
- Must be simple and less expensive. - Individuals are one of the vital
- Influenced by many factors: product components of the human
type, cost, profit, policy, demand of the performance system.
product, availability of parts and
product reliability.
a) Market Research - Indicates custom - Accuracy, completeness,
needs. innovativeness, reliability, ease of use,
b) Sales Call Analysis - Provides timeliness, volume, rate, cost, and
investigation about problems flexibility.
 QUALITY PARADIGM - Associated with measuring and
1. CUSTOM-CRAFT PARADIGM monitoring
- Focus on the product or service and - Take place from spotting defects rather
performance should be exactly as what than prevention.
customer demands. - Disassociated with supplies and
- Customized for individuals. customer evaluation of purchase
2. MASS PRODUCTION AND SORTING materials process, produced and
PARADIGM service to ensure conformance.
- Focused on production rate without a) Verificaiton - Checking of inward
direct involvement of the customer. bound material, process setup and
- Efficient but checks for quality later. products against contracted
3. STATICAL QUALITY CONTROL specifications.
PARADIGM b) Quality Audits - Confirmation that the
- Comparable to mass production and quality system is operating properly.
sorting paradigm except that more c) Supplier Rating - Appraisal and
emphasis is given to production endorsement of supplier of products
process. and services.
- Uses data to maintain consistent INTERNAL FAILURE COSTS
quality. - Acquired to treat defects revealed
4. TOTAL QUALITY MANAGEMENT earlier when the product or services is
PARADIGM delivered to the customers.
- Focuses on customers and suppliers in - The result of work fails to attain design
addition to mass prodiction and quality standard and are noticed before
statistical methods. they are transferred to the customers.
- Everyone is the organization works a) Waste - Performance of needless work
towards quality. or holding of stock as an outcome of
5. TECHNO-CRAFT PARADIGM errors, poor organization or
- Socio-technical complement to be communication.
custom-craft paradigm with the b) Scrap - Faulty product or material that
intention of reducing delivery time. cannot be repaired, used or sold.
- Blend technology and skills for quality. c) Rework or Rectification -
COST OF QUALITY Improvement of flawed material or
- Method permits: Organizational errors.
- Decide on the level on to which its d) Failure Analysis - Actiuity necessary
resources are used for activities that to ascertain the reasons of internal
avoid quality. product or service failure.
- Assess the quality of organization EXTERNAL FAILURE COSTS
products and services. - Obtained to treat defects exposed by
- Result from internal and external customers.
failures. - Occur when products or service that
fail to attain quality design standard
PREVENTION COST are not discovered until after transfer
- Incurred to prevent or avoid failure to the customer.
problems. a) Repair and Servicing - Both returned
- Preventin activities lead to reduce of products are those in the field.
failure and appraisal cost. b) Warranty Claims - Failed products
- Associated with design, that are replaced or service that are
implementation and maintenance of reperformed under guarantee.
quality management system. c) Compliant - All works and costs
- Planned and incurred before actual connected with handling and servicing
operation and they could include: customer complaints.
a) Product or Service Requirements - d) Returns - Handling and investigation
Establishment of quantifications for of discarded or recalled products,
inward bound materials, processes, including transparent cost.
finished products and services.
b) Quality Planning - Drawing of plans TWO MAJOR COMPONENTS
for quality, reliability, operation, 1. COST OF CONFORMANCE
production and inspection. - Cost of making available products or
c) Quality Assurance - Planning and service based on required standard.
continuance of the quality system. - Good amount spent (Prevention Cost
d) Training - Development, preparation and Appraisal Cost)
and continuance of programs.
APPRAISAL COST
2. COST OF NON-CONFORMANCE
 - Failure costs linked with a process not expectations and customer at
functioning based on required workplace.
standards. - Need to respect organization’s policies.
- Pointless amount spent (Internal and - Avoid spreading unnecessary rumors
External Cost) about fellow workers.
QUALITY COST  TRUST – It builds a cooperative
- Total cost acquired by investing in environment.
the prevention of non-conformance to - Relationship based on reliance.
requirement and appraisal of a product BUILDING BRICKS
or service for conformance to - Placed on a strong foundation to reach
requirements and failure to meet roof or recognition.
- requirements. - Foundation needs to be strong enough
TOTAL QUALITY MANAGEMENT to hold the bricks and support the roof,
- All-inclusive and well though-out leadership, teamwork, and training.
means to organizational management.  LEADERSHIP – Provide direction to
- Searches to advance quality processes, entire process of TQM.
products, services and culture. - Raising the aspirations of followers and
- Through continuous minor changes in enthusing people with a desire to reach
reply to constant feedback. the goals.
- Consist of continuous process - Requires the manager to provide an
enhancement activities concerning inspiring vision, make strategic
managers and worker alike in an decisions and instill values that guide
organization in a completely integrated subordinates.
effort toward improving performance - Needs to have a supervisor who acts
at all level. as a strong source of inspiration for
- Combines basic management other members and can assist them in
techniques, current improvement effort decision making.
and technical tools in a disciplined - Needs to believe in the entire process
approach focused on continuous of TQM for others to believe in the
process improvement. same.
- Enhancement program: aim to  TEAMWORK - Crucial element of TQM.
satisfying such cross-functional goal. - Rather than working individually,
- Begin with a focus on the customer employees need to work in teams.
and is boundless, with a life-time - When individuals work in unison,
dedication to continuous improvement. they are in a position to brainstorm
- Merge a participative philosophy of ideas and come up with various
management contributed to Dr. solutions which would improve existing
Edward Deming with importance on processes and systems.
quantitative technique and employee - Team members ought to help each
involvement to see better the quality other to find a solution and put into
of good and service. place.
- Accomplished using a team a) Problem-Solving - These are
organization with both management temporary and formed to solve certain
and the employees as members of problems, identify and overcome
“Quality Teams” which focus on all of causes of those problems. They
its process. generally last from one week to
three months.
PRIMARY ELEMENT OF TQM b) Quality Improvement - Temporary
- TQM: necessary parameter that helps teams with the purpose of dealing with
organization outshine their competitor specific problems that often recur.
and survive the competition. These teams are set up for a period of
FOUNDATION three to twelve months.
- Strong foundation of ethics, integrity c) Natural Work - Consist of small
and trust. groups of skilled workers work who
 ETHICS – Written and unwritten codes share tasks and responsibilities. These
of principles that govern decision teams use concepts such as employee
action within a company. involvement teams, self-managing
- Understanding of good and bad teams and quality circles.
decision  TRAINING - Employees need to be
trained on TQM to become highly
productive.
 INTEGRITY – Consistency of actions, - Workers aware of the benefits of TQM.
values, methods, measures, principles,
- Need to be trained on interpersonal which in turn leads to external
skills, the ability to work as a team customer satisfaction in the
member, technical know-how, organization.
decision- making skills, problem - Huge change in self-esteem,
solving skills and so on. productivity and quality when the
- Enables employees to implement TQM contributors are recognized.
effectively within their departments - Recognition is the final element of
and also make them indispensable TQM.
resources. - Recognition is the most important
BINDING MORTAL factor which acts as a catalyst and
- Binds all the elements together. drives employees to work hard as a
- Communication binds everything team and deliver their lever best.
together, starting from the foundation - Every individual is hungry for
and going up to the roof. appreciation and recognition.
- Communication is the vital link - Employees who come up with
between all the TQM elements and improvement ideas and perform
must be prevalent in an organization in exceptionally well must be appreciated
order for TQM to work the way it in front of all.
should. - They should be suitably rewarded to
- Channels of communication need to be expect a brilliant performance from
credible and easily interpreted for all them even the next time.
members of the organization. CORE COCEPTS OF TQM
- Communication binds employees and 1. CUSTOMER SATISFACTION - TQM is
extracts the best out of them. centered on the requirements of the
- Information needs to be passed on customer; in order to meet customer
from the sender to the recipient in its requirements, it is imperative to listen
desired form. to them and do what is agreed upon.
- Small misunderstandings in the Companies have to give identical
beginning lead to major problems later importance to the internal as well as
on. the external customers.
 DOWNWARD COMMUNICATION - 2. INTERNAL CUSTOMER
Dominant form of communication in an SATISFACTION - Customers are not
organization. only external customers, but the
- Presentations and discussions are two people outside who are the end user of
examples of this form of a firm's products and services.
communication. - There is also the internal customer, the
- Flow of information takes place from person within the company who
the management to the employees. receives the work of another and adds
- Supervisors are able to make the his contribution to the product or
employees clearly understand TQM service before passing it on to
using this type of communication. someone else.
 UPWARD COMMUNICATION - Flow of 3. ALL WORK IN PROCESS - A process
information takes place from the lower- is a combination of methods, materials
level employees to the top-level manpower and machines that work
management. collectively to produce a product or
- Lower-level employees are able to offer service.
suggestions on the effects of TQM to 4. MEASUREMENT - In order to improve,
the upper-level management using this one must first measure one's present
type of communication. performance.
- Supervisors should listen effectively - This will help one focus both on
and incorporate the insights and satisfying internal customers and
constructive criticisms offered by the meeting the requirements of external
employees in correcting the situations customers.
that arise through the use of TQM. - There are seven generic ways in which
 SIDEWAY/LATERAL the quality of outputs can be
COMMUNICATION - Communication measured:
also takes place between various a) Defects - work not up to
departments. specification
- This is important because it breaks b) Rework - work requiring correction
down barriers between departments. c) Scrap - work thrown away
ROOF d) Lost items - work done again
- Includes recognition which brings e) Backlogs - work behind schedule
greater internal customer satisfaction
 f) Late deliveries - work after agreed
time
g) Surplus items - work not required

5. SYNERGY IN TEAMWORK - The idea

of synergy in teamwork, where the
whole is greater than the sum of the
parts, is a key concept in TQM.
6. PEOPLE MAKE QUALITY - Most of the
quality problems within an organization
are not usually within the control of an
individual employee.
7. CONTINUOUS IMPROVEMENT
CYCLE - The continuous cycle of
instituting customer requirements,
meeting and measuring them,
measuring success and continuing the
improvement can be used both
externally and internally to stimulate
quality improvements.
8. PREVENTION - Possible to achieve
defect-free work most of the time.
- This is termed "right first time,
every time" or zero defects. The
"right first time, every time" or zero
defects policy is the results of an
emphasis on prevention, and the
diligent use of measurement, process
controls and the data-driven
elimination of waste and error.
BENEFITS OF TQM
 CREATES GOOD CORPORSTE
CULTURE - TQM is an approach where
the customer is the center point of the
business rather than the department.
 BETTER REVIEWS FROM
CUSTOMER - Another benefit of TQM
is that customers and clients are highly
satisfied with the performance.
 BETTER PERFORMANCE FROM
EMPLOYEES - Through TQM, there is
often more attention placed on
meeting the needs of the employees or
internal customers.
SHIFTING FROM TRADITIONAL
MANAGEMENT TO TQM
- Traditional management styles are all
essentially management by results.
- Managers feel justified in letting
quality standards slip, adjusting output
to meet quotas, and generally
forfeiting the right production
standards and procedures to pander to
results.
- This management style is predicated
on the "ends justify the means"
philosophy.
- This "charade of conformance"
fosters dishonesty and a juggling of the
facts.