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TQM UPDATED NOTES - Removed

Total Quality Management (TQM) is a philosophy and set of principles aimed at improving organizational culture and performance through management commitment, customer focus, workforce involvement, and continuous improvement. Key concepts include treating suppliers as partners and establishing performance measures to track quality improvements. Influential figures in TQM, such as Deming, Juran, and Crosby, have contributed foundational theories and practices that guide organizations in achieving excellence.

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26 views3 pages

TQM UPDATED NOTES - Removed

Total Quality Management (TQM) is a philosophy and set of principles aimed at improving organizational culture and performance through management commitment, customer focus, workforce involvement, and continuous improvement. Key concepts include treating suppliers as partners and establishing performance measures to track quality improvements. Influential figures in TQM, such as Deming, Juran, and Crosby, have contributed foundational theories and practices that guide organizations in achieving excellence.

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Unit 1

Principles and Practices


Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It is a
proven technique to guarantee survival in world-class competition. Only by changing the actions of
management will the culture and actions of an entire organization be transformed. TQM is for the most
part common sense. Analyzing the three words, we have
Total—Made up of the whole.
Quality—Degree of excellence a product or service provides.
Management—Act, art, or manner of handling, controlling, directing, etc.
Therefore, TQM is the art of managing the whole to achieve excellence. The Golden Rule is a simple
but effective way to explain it: Do unto others as you would have them do unto you.
TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a
continuously improving organization.

Basic Approach
TQM requires six basic concepts:
1. A committed and involved management to provide long-term top-to-bottom organizational support.
2. An unwavering focus on the customer, both internally and externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.
1. Management must participate in the quality program. A quality council must be established to develop
a clear vision, set long-term goals, and direct the program. Quality goals are included in the business
plan. An annual quality improvement program is established and involves input from the entire work
force. Managers participate on quality improvement teams and also act as coaches to other teams.
2. The key to an effective TQM program is its focus on the customer. An excellent place to start is by
satisfying internal customers. We must listen to the “voice of the customer” and emphasize design
quality and defect prevention. Do it right the first time and every time, for customer satisfaction is the
most important consideration.
3. TQM is an organization-wide challenge that is everyone’s responsibility. All personnel must be
trained in TQM, statistical process control (SPC), and other appropriate quality improvement skills so
they can effectively participate on project teams. Including internal customers and, for that matter,
internal suppliers on project teams is an excellent approach.
4. There must be a continual striving to improve all business and production processes. Quality
improvement projects, such as on-time delivery, order entry efficiency, billing error rate, customer
satisfaction, cycle time, scrap reduction, and supplier management, are good places to begin.
5. On the average 40% of the sales dollar is purchased product or service; therefore, the supplier quality
must be outstanding. A partnering relationship rather than an adversarial one must be developed. Both
parties have as much to gain or lose based on the success or failure of the product or service. The focus
should be on quality and life-cycle costs rather than price. Suppliers should be few in number so that
true partnering can occur.
6. Performance measures such as uptime, percent nonconforming, absenteeism, and customer
satisfaction should be determined for each functional area. These measures should be posted for
everyone to see. Quantitative data are necessary to measure the continuous quality improvement
activity.

Gurus of Total Quality Management


Shewhart
Walter A. Shewhart, PhD, spent his professional career at Western Electric and Bell Telephone
Laboratories, both divisions of AT&T. He developed control chart theory with control limits, assignable
and chance causes of variation, and rational subgroups. In 1931, he authored Economic Control of
Quality of Manufactured Product, which is regarded as a complete and thorough work of the basic
principles of quality control. He also developed the PDSA cycle for learning and improvement.
Ronald Fisher
In the conventional sense, Fisher is not known as a quality guru. However, he created a solid foundation
of statistical methods, such as design of experiments (DOE) and analysis of variance (ANOVA) in the
1930s. DOE is one of the most powerful tools used by many organizations in problem solving and
process improvements. Analysis of variance became widely known after being included in his book
Statistical Methods for Research Workers in 1925. Fisher also published The Design of Experiments in
1935 and Statistical Tables in 1947.
Deming
W. Edwards Deming, PhD, was a protégé of Shewhart. In 1950, he taught statistical process control and
the importance of quality to the leading CEOs of Japanese industry. He is credited with providing the
foundation for the Japanese quality miracle and resurgence as an economic power. Deming is the best-
known quality expert in the world. His 14 points provide a theory for management to improve quality,
productivity, and competitive position. He has authored a number of books including Out of the Crisis
and Quality, Productivity, and Competitive Position as well as 161 scholarly studies.
Juran
Joseph M. Juran, PhD worked at Western Electric from 1924 to 1941. There he was exposed to the
concepts of Shewhart. Juran traveled to Japan in 1954 to teach quality management. He emphasized the
necessity for management at all levels to be committed to the quality effort with hands-on involvement.
He recommended project improvements based on return on investment to achieve breakthrough results.
The Juran Trilogy for managing quality is carried out by the three interrelated processes of planning,
control, and improvement. In 1951, the first edition of Juran’s Quality Control Handbook was
published.
Feigenbaum
Armand V. Feigenbaum, PhD, argues that total quality control2 is necessary to achieve productivity,
market penetration, and competitive advantage. Quality begins by identifying the customer’s
requirements and ends with a product or service in the hands of a satisfied customer. In addition to
customer satisfaction, some of Feigenbaum’s quality principles are genuine management involvement,
employee involvement, first-line supervision leadership, and company-wide quality control. In 1951,
he authored Total Quality Control.
Ishikawa
Kaoru Ishikawa, PhD, studied under Deming, Juran, and Feigenbaum. He borrowed the total quality
control concept and adapted it for the Japanese. In addition, he authored SPC texts in Japanese and in
English. Ishikawa is best known for the development of the cause and effect diagram, which is
sometimes called an Ishikawa diagram. He developed the quality circle concept in Japan, whereby work
groups, including their supervisor, were trained in SPC concepts. The groups then met to identify and
solve quality problems in their work environment.
Crosby
Phillip B. Crosby authored his first book, Quality is Free, in 1979, which was translated into 15
languages. It sold 1.5 million copies and changed the way management looked at quality. He argued
that “doing it right the first time” is less expensive than the costs of detecting and correcting
nonconformities. In 1984, he authored Quality Without Tears, which contained his four absolutes of
quality management. These absolutes are: quality is conformance to requirements, prevention of
nonconformance is the objective not appraisal, the performance standard is zero defects not “that’s close
enough,” and the measurement of quality is the cost of nonconformance.

Taguchi
Genichi Taguchi, PhD, developed his loss function concept that combines cost, target, and variation
into one metric. Because the loss function is reactive, he developed the signal to noise ratio as a
proactive equivalent. The cornerstone of Taguchi’s philosophy is the robust design of parameters and
tolerances. It is built on the simplification and use of traditional design of experiments.

TQM Framework
Figure 1 shows the framework for the TQM system. It begins with the knowledge provided by gurus of
quality: Shewhart, Deming, Juran, Feigenbaum, Ishikawa, Crosby, and Taguchi. As the figure shows,
they contributed to the development of principles and practices and/or the tools and techniques. Some
of these tools and techniques are used in the product and/or service realization activity. Feedback from
internal/external customers or interested parties provides information to continually improve the
organization’s system, product and/or service.

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