Total Quality Management (TQM) is an enhancement to the traditional way of doing

business.

Total - Made up of the whole

Quality - Degree of Excellence a Product or Service provides.
Management - Art of handling, controlling, directing etc.
TQM is the application of quantitative methods and human resources to improve all the
processes within an organization and exceed customer needs now and in the future.

DEFINING QUALITY:

Quality can be quantified as follows

Q=P/E

Where
Q = Quality

P = Performance

E = Expectation

DIMENSIONS OF QUALITY:

Dimension Meaning and Example

Performance Primary product characteristics, such as the
brightness of the picture
Features Secondary characteristics, added features, such

as remote control

Conformance Meeting specifications or industry standards,

workmanship

Reliability Consistency of performance over time,

average time of the unit to fail

Durability Useful life, includes repair

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 Service Resolution of problems and complaints, ease of repair
Response Human – to – human interface, such as the
Courtesy of the dealer
Aesthetics Sensory characteristics, such as exterior finish

Reputation Past performance and other intangibles, such

as being ranked first

QUALITY PLANNING:

The following are the important steps for quality planning.

1. Establishing quality goals.

2. Identifying customers.
3. Discovering customer needs.
4. Developing product features.
5. Developing process features.
6. Establishing process controls and transferring to operations.

IMPORTANT POINTS TO BE NOTED WHILE QUALITY PLANNING:

1. Business, having larger market share and better quality, earn returns much higher

than their competitors.

2. Quality and Market share each has a strong separate relationship to profitably.

3. Planning for product quality must be based on meeting customer needs, not just

meeting product specifications.

4. For same products. We need to plan for perfection. For other products, we

need to plan for value.

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QUALITY COSTS

 Quality costs are defined as those costs associated with the non- achievement of
product/service quality as defined by the requirements established by the
organization and its contracts with customers and society.

 Quality costs is a cost for poor product of service.

ELEMENTS OF QUALITYCOST:

 Cost of prevention

 Cost of appraisal

 Cost of internal failures

 Cost of external failures.

ANALYSIS OF QUALITY COSTS:

 Trend analysis

 Pareto analysis

1. PREVENTION COST

 Marketing /Customer / User.

 Product / Service / Design Development.

 Purchasing

 Operations (Manufacturing or Service) Quality

 Administration.

2. APPRAISAL COST

 Purchasing Appraisal Costs.

 Operations Appraisal Cost

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  External Appraisal Costs

 Review of Test and Inspection Data

 Miscellaneous Quality Evaluations

3. INTERNAL FAILURE COST

 Product or Service Design Failure

Costs (Internal)

 Purchasing Failure Costs

 Operations (Product or Service) Failure Costs

4. EXTERNAL FAILURE COST

 Complaint Investigations of Customer or User Service Returned Goods

 Retrofit and Recall Costs

 Warranty Claims

 Liability Costs

 Penalties

 Customer or User Good

will

 Lost Sales

ANALYSIS TECHNIQUES OF QUALITY COST

The purpose of quality cost analysis is to determine the cost of

maintaining a certain level of quality.

Such activity is necessary to provide feedback to management on the

performance of quality assurance and to assist management in identifying
opportunities.

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 INDEX NUMBERS:
Index Numbers are often used in a variety of applications to measure prices,
costs (or) other numerical quantities and to aid managers in understanding how
conditions in one period compare with those in other periods.
A simple type of index is called a relative index

Table No.1 Simple Index

Cost Index in quarter t = (Cost in quarter t / Base period cost) x 100

Table No.2 Cost Relative Index

TREND ANALYSIS:
 Good visual aids are important communication tools.

 Graphs are particularly useful in presenting comparative results to management.

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 Trend Analysis is one where Time-to-Time comparisons can be made which illustrates

Figure1.1 Trend Analysis -Watches

PARETO ANALYSIS:
Joseph Juran observed that most of the quality problems are generally
created by only a few causes. For example, 80% of all internal failures are due
to one (or) two manufacturing problems.

Identifying these “vital few” and ignoring the “trivial many” will make the
corrective action give a high return for a low money input.

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 Figure 1.2. Pareto Diagram
BASIC CONCEPTS OF TOTAL QUALITY MANGEMENT:
 Top Management commitment to quality in all aspects
 Customers focus of the organisation
 Process focus and improvement
 Measurement of Performance
 Employee involvement and empowerment
 Continuous Improvement
 Bench Marking
 Teams
 Supplier Teaming
 Training of employees
 Inventory management
 Communication
 Quality cost

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 PILLARS OF TQM:

 Problem solving discipline

 Interpersonal skills

 Teamwork

 Quality Improvement Process

PRINCIPLES OF TQM:

 Customer‟s requirements must be met the first time, every time.

 There must be agreed requirements, for both internal and external
customers.

 Everybody must be involved, from all levels and across all functions.

 Regular communication with staff at levels is must. Two way

communication at all levels must be promoted.

 Identifying training needs and relating them with

individual capabilities and requirements is must.

 Top management‟s participation and commitment is

must.

 A culture of continuous improvement must be established.

 Emphasis should be placed on purchasing and supplier management every job

must add value.

 Quality improvement must eliminate wastes and

reduce total cost. There must be a focus on the
prevention of problems.

 A culture of promoting creativity must be established.

 Performance measure is a must at organization, department and individual levels.

 It helps to asses and meet objectives of quality.

 There should be focus on team work.

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 SIX BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT

1. Management Commitment
2. Customer Focus
3. Involvement and utilization of entire work force
4. Continuous Improvement
5. Treating Suppliers as Partners
6. Establish Performance Measures for the processes

GURUS OF TQM :

SHEWHART - Control chart theory PDCA Cycle

DEMING - Statistical Process Control

JURAN - Concepts of SHEWHART

Return on Investment ( ROI )

FEIGANBAUM
- Total Quality Control

Management involvement

Employee involvement

Company wide quality control

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 ISHIKAWA - Cause and Effect Diagram

Quality Circle concept

CROSBY - “Quality is Free”

Conformance to requirements

TAGUCHI - Loss Function concept

Design of Experiments

OBSTACLES IN IMPLEMENTING TQM :

 Lack of Management Commitment
 Inability to change organizational culture
 Improper Planning
 Lack of continuous training and education
 Incompatible organizational structure and isolated individuals and departments
 Ineffective measurement techniques and lack of access to data and results.
 Paying inadequate attention to internal and external customers
 Inadequate use of empowerment and teamwork
 Failure to continually improve

BENEFITS OF TQM:
 Improved quality
 Employee participation
 Team work
 Working relationship
 Customer satisfaction
 Employee satisfaction
 Productivity
 Communication

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  Profitability
 Market Share

LEADERSHIP:

CHARACTERISTIC EXPECTATION
Delivery Delivered on schedule in undamaged condition Installation Proper
instructions on setup, or technicians supplied for complicated products Use Clearly-written
training manuals or instructions provided on proper use Field repair Properly-trained
technicians to promptly make quality repairs. Customer Service Friendly service
representatives to answer questions Warranty Clearly stated with prompt service on claims.

LEADERSHIP ROLES:

1. Producer role.
2. Director role.
3. Coordinator role roles.
4. Checker role.
5. Stimulator role.
6. Mentor role.
7. Innovator role.
8. Negotiator
role

LEADERS
 Shape the Organization’s value

 Promote the Organization’s value

 Protect the Organization’s value and

 Exemplifies the Organization values

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CHARACTERISTICS OF QUALITY LEADERS:

1. They give priority attention to external and internal customers and their needs.
2. They empower, rather than control, subordinates.
3. They emphasis improvement rather than maintenance.
4. They emphasis prevention.
5. They emphasis collaboration rather than competition.
6. They train and coach, rather than direct and supervise.
7. They learn from the problems.
8. They continually try to improve communications.
9. They continually demonstrate their commitment to quality.
10. They choose suppliers on the basis of quality, not price.
11. They establish organizational systems to support the quality effort.
12.They encourage and recognize team effort.

LEADERSHIP CONCEPTS:

A leader should have the following concepts

1. People, Paradoxically, need security and independence at the same time.
2. People are sensitive to external and punishments and yet are also strongly self- motivated.
3. People like to hear a kind word of praise. Catch people doing something right, so you can
pat them on the back.
4. People can process only a few facts at a time; thus, a leader needs to keep things simple.
5. People trust their gut reaction more than statistical data.
6. People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions.

THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE:

1. Be Proactive
2. Begin with the End in mind
3. Put First Things First
4. Think Win – Win
5. Seek First to Understand, then to Be Understood
6. Synergy
7. Sharpen the Saw (Renewal)

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ROLE OF SENIOR MANAGEMENT
1. Management by Wandering Around (MBWA).
2. Strategy of problem solving and decision making.
3. Strong information base.
4. Recognition and Reward system.
5. Spending most of the time on Quality.
6. Communication.
7. Identify and encourage potential employee.
8. Accept the responsibility.
9. To play a role model.
10.Remove road blocks.
11.Study TQM and investigate how TQM is implemented elsewhere.
12.Establish policies related to TQM.
13.Establish “priority of quality” and customer satisfaction as the basic policy.
14.Assume leadership in bringing about a cultural change.
15.Check whether the quality improvement programmes are conducted as planned.
16.Become coaches and cheer leaders to implement TQM.
17.Generate enthusiasm for TQM activities.
18. Visit other companies to observe TQM functioning.
19. Attend TQM training programme.
20.Teach others for the betterment of society and the surroundings.

QUALITY COUNCIL

A quality council is established to provide overall direction. The council is composed of

Chief Executive Officer
 Senior Managers
 Coordinator or Consultant
 A representative from the Union
Duties of the council are
 Develop the core values, vision statement, mission statement and quality policy
statement
 Develop the strategic long term plan with goals and Annual Quality
 Improvement Program with objectives

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  Create the total education and training plan
 Determine and monitor the cost of poor quality
 Determine the performance measures
 Determine projects those improve the process
 Establish multifunctional project and work group teams
 Revise the recognition and rewards system
A typical meeting agenda will have the following items
 Progress report on teams
 Customer satisfaction report
 Progress on meeting goals
 New project teams

 Benchmarking report

Within three to five years, the quality council activities will become
ingrained in the culture of the organization.

QUALITY STATEMENTS:

VISION STATEMENT:
It is short declaration of what an organization aspires to be tomorrow
Example: Disney Theme Park – Happiest place on earth
Polaroid – Instant Photography
Successful visions provide a guideline for decision making

MISSION STATEMENT:

It answers the following questions

 Who are the

customers?

 What we do?
 How we do it?

It describes the function of the organization. It provides a clear statement of

purpose for employees, customers & suppliers

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It describes the function of the organization. It provides a clear statement of purpose for
employees, customers and suppliers

A simpler mission statement is

To meet customers transportation and distribution needs by being the best at moving
their goods on time, safely and damage free

QUALITY POLICY STATEMENT:

It is guide for everyone in the organization as to how they should provide products
and services to the customers.
Common characteristics are
 Quality is first among equals
 Meet the needs of the internal & external customers
 Equal or exceed competition
 Continuously improve the quality

 Utilize the entire workforce

STRATEGIC QUALITY PLANNING

Goals – Long term planning (Eg: in the war)
Objectives – Short term planning (Eg: Capture the bridge)
Goals should
 Improve customer satisfaction, employee satisfaction and process
 Be based on statistical evidence
 Be measurable
 Have a plan or method for its achievement
 Have a time frame for achieving the goal

 Finally, it should be challenging yet achievable

SEVEN STEPS TO STRATEGIC QUALITY PLANNING:

 Customer needs
 Customer positioning
 Predict the future

 Gap analysis

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  Closing the gap

 Alignment

 Implementation

TQM IMPLEMENTATION:

Begins with Management Commitment

Leadership is essential during every phase of the implementation process and particularly at
the start
Senior Management should develop an implementation plan. Timing of the implementation
process is very important
1) Create and publish the Aims and Purposes of the organization.
2) Learn the New Philosophy.
3) Understand the purpose of Inspection.
4) Stop awarding business based on price alone.
5) Improve constantly and forever the System.
6) Institute Training.
7) Teach and Institute Leadership.
8) Drive out Fear, Create Trust and Create a climate for innovation.
9) Optimize the efforts of Teams, Groups and Staff areas.
10) Eliminate exhortations for the Work force.
11) Eliminate numerical quotas for the work force.
12) Eliminate Management by objectives.
13) Remove Barriers that rob people of pride of workmanship.
14) Encourage Education and Self-improvement for everyone. Take action to
accomplish the transformation.

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