Total Quality
Management
PREPARED BY-
ABHISHEK K.
AJISHA D.
AMAL ROY
ANAND MOHAN
ANJALI H.
Approaches to define Quality
Transcendent Approach
◦ Quality is absolute and universally recognisable.
◦ It is a common notion used by layman
◦ There is no subjective judgement and is estimated by
looking at the product
Product Based Approach
◦ Attributes of a particular product in a specific category
◦ These attributes are accepted as benchmark of quality
by the industry
◦ Others in the same industry try to produce close to this
quality
Approaches to define Quality
User Based Approach
◦ Defined as “Fitness for use”
◦ Viewed from user’s perspective and is dependent on
how well does the product meet needs of the
consumer.
◦ Also known as Customer Oriented Approach
Production Based Approach
◦ An outcome of engineering or operational excellence
and is measured in terms of quality of conformance
◦ The producer has specifications and produces the
product as per the specifications
Approaches to define Quality
Value Based Approach
◦ Quality is viewed in context of price
◦ Quality is satisfactory, if it provides desired
performance at an acceptable price
◦ Customer looks at the total value proposition and
not the price alone
Benefits
Value
price
Attributes of Quality
Performance
◦ Product’s primary operating characteristics
Features
◦ Augmented product – The “bells & whistles” of the
product
Reliability
◦ Ability of the product to function at the specified
level of performance
Conformance
◦ Degree to which characteristics of the product meet
pre-established standards
Attributes of Quality
Durability
◦ Length of time a product can be used before it
deteriorates or becomes non functional
Serviceability
◦ Speed, competence & courtesy of providing ASS
Aesthetics
◦ Look, feel sound, taste, smell
Perceived Quality
◦ Resulting from advertisement, image, brand name,
earlier use, hearsay
What does TQM stand for ???
TQM stands for Total Quality Management i.e.,
Total stands for Involvement of all levels of
the organization
Quality here implies conformance to agreed
upon requirements
Management here means the best use of
available resources to achieve the above two
i.e., Total Quality.
Definition
Total Quality Management (TQM) is a
management strategy aimed at embedding
awareness of quality in all organizational
processes.
8
Explanation…
TQM requires that the company maintain
this quality standard in all aspects of its
business.
This requires ensuring that things are done
right the first time and that defects and
waste are eliminated from operations.
9
Evolution of TQM…
CRAFTSMEN & ARTISANS(E.g. : Artists, Sculptors,
working with metals & other materials who were very
Quality-conscious.
TRADESMEN (E.g.: Masons, Carpenters etc.)
ENGINEERING TRADES & PRACTICES ( E.g.: Foundry,
Smithy, Die-making, Mould-making, Stamping,
Forging, Turning, Milling, Drilling etc)
TQM Evolution…
Custom built articles/products having considerable control
over quality
Mass produced products with lesser level of quality control
Quality control department in factories
TQM based production facility i.e., enhancing the
organization through quality techniques that would in turn
prove beneficial in achieving the organization’s goals. An
example for this would be productivity and profitability
with minimum wastage.
ISO Quality Management Systems
Evolution Evolution of Quality Era
TQM
TQC &CWQC
TQC
SQC
Inspection
Foreman
Craftsma
n Years
1900 1920 1940 1960 1980
12
1990 2000
Evolution of Quality – Means &
Focus
197
1980 1985 1990 1995
2000
5
Productivit Quality TQC/TQM
Total
Quality y Quality
Circle
Quality
Employee
of
Involvemen
Work
t
life
Self Self
Directed Directed/Manag
Employees ed
EmpowermTeams Teams
ent
Operation Customers Innovations
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What’s the goal of TQM?
“Do the right
things right
the first
time, every
time.”
TQM is…
A comprehensive management system which :-
Focuses on meeting owners’/customers’ needs, by providing
quality services at a reasonable cost.
Focusses on continuous improvement
Recognizes the role of everyone in the organization
Views organization as an internal system with a common aim
Focusses on the way tasks are accomplished
Emphasizes team work
TQM focuses on…
CUSTOMER QUALITY
LEADERSHIP
SATISFACTION
POLICY
ORGANISATIO
N TRANING QUALITY COST
STRUCTURE
EMPLOYEE QUALITY
REWARD
INVOLVEMENT CIRCLES
TQM Beliefs
Following are the universal Total Quality Management beliefs:
Owner/customer satisfaction is the measure of quality
Everyone is an owner/customer.
Quality improvement must be continuous.
Analysis of the processes is the key to quality improvement.
Measurement, a skilled use of analytical tools, and employee involvement are critical sources
of quality improvement ideas and innovations
Sustained total quality management is not possible without active, visible, consistent, and
enabling leadership by managers at all levels
It is essential to continuously improve the quality of products and services that we provide to
our owners/customers
Gurus of TQM
Dr. W E Deming Dr. J M Juran Dr. Philip Crosby
Gurus of TQM
Dr. Genichi Taguchi Dr. Kaoru Ishikawa Dr. Masaaki Imai
Gurus of TQM
Dr. Shigeo ShingoDr. Yoshio Kondo
Dr .Armand V. Feigenbaum
Dr. James Harrington
The Deming Philosophy
The Deming philosophy consists of 14 points for management:
1. Create
and publish to all employees a statement of the aims and
purposes of the company. The management must demonstrate their
commitment to this statement
2. Learn the new philosophy.
3. Understand the purpose of inspection – to reduce the cost and improve
the processes.
4. End the practice of awarding business on the basis of price tag alone.
5. Improve constantly and forever the system of production and service.
The Deming philosophy
6. Institute training
7. Teach and institute leadership
8. Drive out [Link] an environment of innovation
9. Optimize the team efforts towards the aims and purposes of the company
[Link] exhortations for the workforce
[Link] numerical quotas for production
[Link] the barriers that rob pride of workmanship
[Link] learning and self improvement
[Link] action to accomplish the transformation
W E Deming – PDCA Cycle
Seven Deadly Sins
Lack of vision and mission as regards quality
& process improvement
Emphasis on short term profit
Personal performance appraisal systems
Mobility of management
Seven deadly sins (cont)
Running a company on visible figures alone
◦ Customer satisfaction level
◦ Employee morale
◦ Relationship with your vendors
◦ Confidence the market has in your company
Excess non-productive expenditure
Excessive cost of warranty
J M Juran
Developed the idea of trilogy
◦ Quality Planning
◦ Quality Improvement
◦ Quality Control
Conformance to specifications is necessary but
not sufficient requirement of a product.
Fitness for use by the consumer of the targeted
market segment is an essential requirement in
addition to conformance
J M Juran’s Trilogy
Juran’s 10 Points
Build awareness of need and opportunities for
improvement
Set goals for improvement
Organise the overall improvement programme
Provide the training
solve problems through project methodology
Report progress
Give recognition
Communicate results
Keep score
Institutionalise the improvement process
Philip Crosby
Do it right the first time
Zero Defects
Absolutes of QM
◦ Quality is defined as conformance to requirements, not as “goodness”or “elegance”
◦ The system for causing quality is prevention, not appraisal – Quality is Free
◦ The performance standard must be Zero Defects, not "that's close enough“
◦ The measurement of quality is the Price of Non-conformance, not indices.
◦ Cost of quality is only the measure of operational performance
Philip B. Crosby’s 14 points
Philip B. Crosby’s 14 Points
Make it clear that management is committed to
quality.
Form quality improvement teams with
representatives from each department.
Determine where current and potential quality
problems lie.
Evaluate the cost of quality and explain its use as
a management tool.
Philip B. Crosby’s 14 points (Cont)
Raise the quality awareness and personal concern
of all employees.
Take actions to correct problems identified through
previous steps.
Establish a committee for the zero defects
programme.
Train supervisors to actively carry out their part of
the quality improvement programme.
Philip B. Crosby’s 14 points (Cont)
Hold a ‘zero defects day’ to let all employees realise
that there has been a change.
Encourage all individuals to establish improvement
goals for themselves and their groups.
Encourage employees to communicate to
management the obstacles they face in attaining their
improvement goals.
Recognise and appreciate those who participate.
Establish quality councils to communicate on a regular
basis.
Do it all over again to emphasise that the quality
improvement programme never ends.
Quality TQM principles
People will produce quality goods and services when the
meaning of quality is expressed daily in their relations.
Inspection of the process is as important as inspection
of the product.
Probability of variation, can be understood by scientific
methods.
Workers work in the system to improve the
system; managers work on the system to improve the
system.
Quality TQM Principles (Cont)
Total quality management must be consistently
translated into guidelines provided to the whole
organization.
Envision what you desire , but start working from where you
actually are.
Cleaner site and safer place to work is also important.
Accept the responsibility for quality.
Use the principle of get it right, the first time, every time.
Understand that quality is a journey, not a destination
How to begin Continuous
Improvement
Start setting goals, and start meeting the goals you
have set.
Management indicate complete commitment to
Continuous Improvement (CI).
Identify stages
Establish responsibility
Set the datum
Pre-Plan
Regard each project as part of a cycle
Each worker regard himself or herself as a quality
inspector of his or her task
Reasons to Begin Now
The reasons to begin establishing quality improvement
processes are several.
For Management
• Provides an invaluable problem-solving tool.
• Dispels negative attitudes.
• Management becomes more aware of individual’s work
environment.
• Employees gain a sense of participation.
• Increases efficiency and productivity.
• Reduces turnover rate, tardiness, costs, errors, and
scrap & rework.
• Improves communications within and among all
departments.
Reasons (Cont)
• Develops management skills that were
never taught.
• Develops overall company awareness and
company unity.
• Rearranges priorities which once seemed
locked in place.
• Builds loyalty to the company.
• Reveals training requirements in all
departments.
• Lessens the number of defects
Reasons (Cont)
For employees
• Provides opportunity for personal growth and development.
• Increases innovation.
• Employees use their knowledge and skills for well-informed
decision-making
• Encourages decision-making at the most appropriate level.
• Increases motivation and acceptance of new ideas
• Increases job satisfaction.
• Recognizes employees for their talents.
• Develops mutual respect among employees, management
and customers.
• Promotes teamwork
Steps in implementing TQM
Obtain CEO Commitment
Educate Upper-Level Management
Create Steering Committee
Outline the Vision Statement, Mission Statement &
Guiding Principles
Prepare a Flow Diagram of Company Processes
Focus on the Owner/Customer (External) & Surveys
Steps in implementing TQM
(Cont)
Consider the Employee as an Internal
Owner/customer
Provide a Quality Training Program
Establish Quality Improvement Teams
Implement Process Improvements
Use the Tools of TQM
Know the Benefits of TQM
Obtain CEO Commitment.
Educate upper level management.
To educate the upper level management we
have to conduct the following:
◦ Undergo quality training
◦ Commit to TQM and provide the necessary resources.
◦ Assist in the development.
◦ Serve as a model of expected behaviour.
◦ Actively lead the way.
◦ Drive fear out of the organization
◦ Provide suitable recognition.
◦ Drive decision making and problem resolution
Create a steering committee
Upon completion of upper management’s
commitment and training, a steering
committee must be created to guide the
company through the process of
implementing TQM.
Steering committee roles are…….
Review and evaluate customer surveys.
Determine processes to be improved.
Appoint task process improvement teams.
Monitor process improvement.
Oversee employee recognition for quality improvement.
Communicate successes and progress
Outline the Vision Statement, Mission Statement, &
Guiding Principles
Important principles to consider including in
the company’s vision statement, mission
statement, and guiding principles are as
follows:
◦ Owner/customer Satisfaction.
◦ Improved Safety.
◦ Elimination of errors and defects.
◦ Doing things right, the first time.
◦ Reputation as the best in the field.
◦ Continuous Improvement.
◦ Employee Empowerment
Flow Diagram of Company Processes:
Focus on the Owner/Customer
(External) & Surveys
Focusing on a customer’s concerns Several areas
to survey, and to take care to provide or honour,
and they are listed here:
◦ Safe operating procedures
◦ Accident experience
◦ Attitude
◦ Professional competence
◦ Technical competence of the work force
◦ Overall responsiveness to owner/customer requests
◦ Planning
◦ Condition of equipment
◦ Timeliness
Successful TQM companies have asked their
owner/customers the following
questions:
How well do we deliver what we promise?
How often do we do things right the first time?
How often do we do things right on time?
How quickly do we respond to your request?
How accessible are we when you need to contact us?
How helpful and polite are we?
How well do we speak your language?
How well do we listen to you?
How hard do you think we work at keeping you a satisfied
owner/customer?
How much confidence do you have in our products or
services ? Etc
Consider the Employee as an Internal
Owner/Customer
In order to conduct an analysis of the internal
processes following steps should be applied:
List several of your internal owners/customers within
your company
Choose one of these owners/customers to focus on for
the application of this technique
Determine the Output s (products, services, information)
that must be provided to this internal owner/customer
Determine the work Processes your company uses to
produce these Outputs
Learn how your customer’s expectations are met and
how satisfaction is measures
Provide a Quality Training Program
The successful TQM company provides
training to employees in the order illustrated
in the list below:
Upper Management
Remaining Management
In-House Trainers & Facilitators
Front-Line Supervisors
Non-Supervisory Employees
Team Training
Training of Subcontractors & Suppliers
Establish Quality Improvement Teams
A quality improvement teams focuses on
following areas for improvement:
Increased Employee Value
Informed Employees
Technical Training
Quality Training
Employee Suggestions
Employee Participation
Higher Quality of Artistry
Personal Development
Quality Improvement Team Tasks
Identify the customers of the process
Determine customer expectations
Flowchart the process
Identify all of the inputs and interfaces
Identify the output(s)
Systematically review the procedures
currently being used in the process
Collect and analyze available quantitative
data
Quality Improvement Team
Tasks(Cont)
Determine the need for additional data
Identify the problem(s)
Determine the root cause of the problem
Determine potential solutions
Select a trial solution
Present recommendations to the steering
committee
Implement the solution on a pilot-project basis
Analyze the data to discern if there has been
improvement
Implement Process Improvements
The structural approach to process improvement is as
follows:
◦ Problem is brought to the attention of the steering committee
◦ Steering committee forms a team to examine the process and
make necessary recommendations for improvement
◦ Team meets, reviews its mission, and determines how often it
will meet
◦ Training is initiated for team members
◦ Team meets weekly for an hour or two to analyze the problem
and develop a solution
◦ Solution is initiated on a pilot basis
◦ Results of pilot study are examined
◦ Solution is implemented company-wide
Use of Tools:
Seven classical tools of quality and process
improvement are the following :
◦ Flow chart : Portrays all the steps in a process. Helps
understand the process.
◦ Cause and Effect Diagram : Portrays possible causes of
a process problem. Helps determine root cause
◦ Control Chart : Shows if a process has too much
variation
Seven Classical Tools (Contd…)
◦ Histogram : Portrays the frequency of occurrence.
Check Sheet : Tabulates frequency of occurrence.
◦ Pareto Diagram : Visually portrays problems and causes in
order of severity or frequency. Helps determine which
problem or cause to tackle first.
◦ Scatter Diagram : Helps determine if two variables are related.
◦ Run Chart : Shows variation and trends with time. Provides
baseline data, and helps to determine if a process is
improving or nots
Benefits of Quality
Higher customer satisfaction
Reliable products/services
Better efficiency of operations
More productivity & profit
Better morale of work force
Less wastage costs
Less Inspection costs
Improved process
More market share
Spread of happiness & prosperity
Better quality of life for all.
Cost of Quality
The reason for implementing the information
related to TQM into companies is :
• To make more money and/or to stay in business. If
one doesn’t implement TQM/CI, it will cost one’s
firm money.
Cost of Quality=Cost of Non-conformance
+Cost Prevention
Cost of non conformance
The Cost of non-conformance
Omissions
Errors
Poor Product Quality
Being Late
Cost of non conformance leads to
Rework
Recalls
Expediting
Removal of punch list items
Time extensions
Litigation costs and damages
Penalties and liquidated damages
Increased insurance costs
An interesting Note …
“What’s it going to cost us to do TQM?” you
ask. Well, what is it costing you now NOT to
do it? . . . What is your cost of quality?
IF you don’t have the “real” facts, the truth is
you really don’t know, . . . but you probably
sense what your cost of quality is costing
you. You can feel it, and it’s not a
comfortable feeling
Types of Quality Cost
The four types of quality costs are the
following:
Prevention Cost
• Cost associated with time spend in planning the
quality system
• Prevention cost consists of the following :
o Process control costs
o Information systems costs
o Training Costs
o General Management cost
Types of Quality Costs (Cont)
Appraisal Costs
• Cost incurred on measurement & analysis of data in order to
detect & correct problems.
• Appraisal costs consist of
oCost of maintaining, testing & inspection
oProcess control costs
Internal Failure Cost
• Incurred due to non-conformance.
• Internal failure Cost Include
oScrap and rework costs
oCost of corrective action
oDowngrading costs
Types of Quality costs (Cont)
External Failure Cost
• Occur when poor products reach customer
• External Failure Costs include the following :
o Costs of customer complaints and returns
o Product recall costs
o Warranty claims costs
o Product liability costs
Economics of Quality of
Conformance
Total Cost Prevention and appraisal cos
Optimum total cost
Internal & External Failure Cost
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Obstacles
Top management commitment
Changing Organization Culture
Improper planning
Continuous Training & education
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Obstacles (Cont)
Organization Structure & Departments
Data’s & Facts For Effective Decisions
Internal & External Customers-
Dissatisfaction
Empowerment & Teamwork
Continuous Improvement
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AN EXAMPLE
“It is the aim of ABB Kent Meters Ltd to supply
products and services which
completely satisfy our customers.”
Kent Meters Mission Statement
Conclusion
In a nutshell,
TQM will increase productivity, will
eliminate wastes, reduce non-conformances,
optimize costs, increase the profitability , will
enrich the employees life and will help the
industry to meet it’s societal obligation.
“Total Quality Management is a marathon and not a sprint”
“Quality is a journey, not a
Destination “
Thank You !!!
