What is TQM?

 TQM stands for Total Quality Management. It is one of the

most effective and least understood corporate strategies.
 It is a comprehensive process that can bring a company to
the forefront of the global market.

Definitions:

According to British Quality Association:

‘TQM is a corporate business management

philosophy which recognizes that customer needs and
business goals are inseparable. It is applicable within both
industry and commerce’.

Productions & Operations Mgmt

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What is TQM?

Definitions:

According to British Quality Association:

TQM is a management philosophy for continuously

improving overall business performance based on
leadership, supplier quality management, vision and plan
statement, evaluation, process control and improvement,
product design, quality system improvement, employee
participation, recognition and reward, education and
training, and customer focus.

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What is TQM?...
Definitions:
According to British Quality Association:
TQM is an operating philosophy, a goal, and a way of doing
business. For many companies, it is a major cultural change;
from ‘solving a crisis’ to ‘not having a crisis’. The typical ‘just do
it’ approach to business is replaced by clearly defined processes.
According to some common opinion,
TQM is nothing new - it is just a common sense way of
remaining in business. In fact, any well run company is already
doing TQM without even realizing it. TQM is still the Japanese
trick that the western firms are keen to copy.

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TQM Needs Commitment
 TQM has methods, but the most important criteria for
continuous improvement is commitment.
commitment The common reason
behind the failure of TQM is the lack of commitment from the
top management.
 If you are in middle management, then you must lobby your
CEO or boss. You must prove why it is important and have
him or her on your team talking up the plan. Your staff
wants to see your commitment. You lead, they will follow.
 The activities for each employee, including top management,
should be directed towards the same purpose or the vision.
 If people in a company do not have the same purpose, the
organization will be weak. a company that loses its purpose will
miss its goal, will make too many mistakes, and will lose customers.

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VARIOUS APPROACHES TO TQM (SELF-READING)
1. DEMING’S APPROACH TO TQM-
 Deming (1986) stressed the responsibilities of top management
to take the lead in changing processes and systems.
 It is the top management’s responsibility to create and
communicate a vision to move the firm towards continuous
improvement.
 Top management is responsible for most quality problems; it
should give employees clear standards for what is
considered acceptable work, and provide the methods to
achieve it.
 These methods include an appropriate working environment
and climate for work free of faultfinding, blame or fear.

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VARIOUS APPROACHES TO TQM….

1. DEMING’S APPROACH TO TQM…

 Deming (1986) also emphasized the importance of

identification and measurement of customer requirements,
creation of supplier partnership, use of functional teams to
identify and solve quality problems, enhancement of
employee skills, participation of employees, and pursuit of
continuous improvement.

 Deming (1986) advocated methodological practices,

including the use of specific tools and statistical methods in
the design, management, and improvement of process,
which aim to reduce the inevitable variation that occurs
from “common causes” and “special causes” in production.
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VARIOUS APPROACHES TO TQM…

1. DEMING’S APPROACH TO TQM…

 “Common causes” of variations are systemic and are

shared by many operators, machines, or products.
 They include poor product design, non-conforming incoming
materials, and poor working conditions. These are the
responsibilities of management.
 “Special causes” relate to the lack of knowledge or skill, or
poor performance.
 These are the responsibilities of employees.

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VARIOUS APPROACHES TO TQM….

1. DEMING’S APPROACH TO TQM…

 Deming proposed 14 points as the principles of TQM:

1. Create constancy of purpose towards 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.
3. Cease dependence on mass inspection to 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 towards 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.
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VARIOUS APPROACHES TO TQM…

1. DEMING’S APPROACH TO TQM…

 Deming proposed 14 points as the principles of TQM:

6. Institute training on the job.
7. Institute leadership. The aim of supervision should be to help
people and machines.
8. Drive out fear, so that people may work effectively for the
company.
9. Break down barriers between departments. People in research,
design, sales, and production must work as a team.
10. Eliminate slogans, exhortations, and targets for the workforce
asking for zero defects and new levels of productivity. Such
exhortations only create adversarial relationships.
11. Eliminate work standards (quotas) on the factory floor. Substitute
leadership. Eliminate management by objective. Eliminate
management by numbers, numerical goals. Substitute leadership.
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VARIOUS APPROACHES TO TQM….

1. DEMING’S APPROACH TO TQM…

 Deming proposed 14 points as the principles of TQM:

12. 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.
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.

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VARIOUS APPROACHES TO TQM…

2. JURAN’S APPROACH TO TQM

 TQM is the system of activities directed at achieving delighted
customers, empowered employees, higher revenues, and lower costs.
 Juran believed that main quality problems are due to management
rather than workers.
 The attainment of quality requires activities in all functions of a firm.
 Firm-wide assessment of quality, supplier quality management, using
statistical methods, quality information system, and competitive
benchmarking are essential to quality improvement.
 Juran’s approach is emphasis on team (QC circles and self-managing
teams) and project work, which can promote quality improvement,
improve communication between management and employees
coordination, and improve coordination between employees..

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VARIOUS APPROACHES TO TQM…

2. JURAN’S APPROACH TO TQM…

 He also emphasized the importance of top management commitment

and empowerment, participation, recognition and rewards.
 According to Juran, it is very important to understand customer needs.
 Identifying customer needs requires more vigorous analysis and
understanding to ensure the product meets customers’ needs and
is fit for its intended use, not just meeting product specifications.
 Thus, market research is essential for identifying customers’
needs.
 In order to ensure design quality, he proposed the use of
techniques including quality function deployment, experimental
design, reliability engineering and concurrent engineering.

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VARIOUS APPROACHES TO TQM…

2. JURAN’S APPROACH TO TQM…

 Juran considered quality management as three basic processes (Juran

Trilogy): Quality control, quality improvement, and quality planning.
 Juran defined four broad categories of quality costs, which can be
used to evaluate the firm’s costs related to quality. Such information
is valuable to quality improvement.
 The four quality costs are:

i. Internal failure costs (scrap, rework, failure analysis, etc.), associated

with defects found prior to transfer of the product to the customer;

ii. External failure costs (warranty charges, complaint adjustment,

returned material, allowances, etc.), associated with defects found
after product is shipped to the customer;

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VARIOUS APPROACHES TO TQM…

2. JURAN’S APPROACH TO TQM…

 The four quality costs are:

iii. Appraisal costs (incoming, in-process, and final inspection

and testing, product quality audits, maintaining accuracy
of testing equipment, etc.), incurred in determining the
degree of conformance to quality requirements;

iv. Prevention costs (quality planning, new product review,

quality audits, supplier quality evaluation, training, etc.),
incurred in keeping failure and appraisal costs to a
minimum.

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VARIOUS APPROACHES TO TQM…

3. CROSBY’S APPROACH TO TQM

 Crosby (1979) identified a number of important principles
and practices for a successful quality improvement program.
 For example, management participation, management
responsibility for quality, employee recognition, education,
reduction of the cost of quality (prevention costs, appraisal
costs, and failure costs),
 Emphasis on prevention rather than after-the-event inspection,
doing things right the first time, and zero defects.
 Crosby claimed that mistakes are caused by two reasons:
 Lack of knowledge (so, education
e and training)
 lack of attention (so, a personal commitment to excellence-zero
defects and attention to detail)

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VARIOUS APPROACHES TO TQM…

3. CROSBY’S APPROACH TO TQM…

 Crosby also stressed the importance of management style to successful

quality improvement.
 The key to quality improvement is to change the thinking of top
managers-to get them not to accept mistakes and defects, as this would
in turn reduce work expectations and standards in their jobs.
 Crosby presented the quality management maturity grid, which can be
used by firms to evaluate their quality management maturity.
 The five stages are: Uncertainty, awakening, enlightenment, wisdom and
certainty.
 These stages can be used to assess progress in a number of measurement
categories such as management understanding and attitude, quality
organization status, problem handling, cost of quality as percentage of sales,
and summation of firm quality posture.
 The quality management maturity grid and cost of quality measures are
the main tools for managers to evaluate their quality status.
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VARIOUS APPROACHES TO TQM….

4. FEIGENBAUM’S APPROACH TO TQM

 Feigenbaum (1991) defined TQM as:

An effective system for integrating the quality

development, quality maintenance, and quality-improvement
efforts of the various groups in a firm so as to enable marketing,
engineering, production, and service at the most economical
levels which allow for full customer satisfaction.
 He claimed that effective quality management consists of four
main stages:
 Setting quality standards;
 Appraising conformance to these standards;
 Acting when standards are not met;
 Planning for improvement in these standards.

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VARIOUS APPROACHES TO TQM…

4. FEIGENBAUM’S APPROACH TO TQM…

 The quality chain, he argued, starts with the identification of

all customers’ requirements and ends only when the product
or service is delivered to the customer, who remains satisfied.
 He claimed that effective TQM requires a high degree of effective
functional integration among people, machines, and information,
stressing a system approach to quality.
 A clearly defined total quality system is a powerful foundation for
TQM.
 Total quality system is defined as follows:
The agreed firm-wide operating work structure, documented in
effective, integrated technical and managerial procedures, for guiding the
coordinated actions of the people, the machines, and the information of the
firm in the best and most practical ways to assure customer quality
satisfaction and economical costs of quality.
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VARIOUS APPROACHES TO TQM…

4. FEIGENBAUM’S APPROACH TO TQM…

 Feigenbaum emphasized that efforts should be made towards the

prevention of poor quality rather than detecting it after the
event.
 There are two factors affecting product quality: The
technological-that
technological is, machines, materials, and processes; and
the human-that
human is, operators, foremen, and other firm personnel.
 Of these two factors, the human is of greater importance by far.

 Feigenbaum considered top management commitment, employee

participation, supplier quality management, information system,
evaluation, communication, use of quality costs, use of statistical
technology to be an essential component of TQM. He argued that
employees should be rewarded for their quality improvement
suggestions, quality is everybody’s job.
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VARIOUS APPROACHES TO TQM….

5. ISHIKAWA’S APPROACH TO TQM

 Ishikawa6 (1985) argued that quality management extends
beyond the product and encompasses after-sales service, the
quality of management, the quality of individuals and the firm
itself.
 He claimed that the success of a firm is highly dependent on
treating quality improvement as a never-ending quest.
 A commitment to continuous improvement can ensure that people
will never stop learning.
 He advocated employee participation as the key to the successful
implementation of TQM.
 Quality circles, he believed, are an important vehicle to achieve
this.
 Like all other gurus, he emphasized the importance of education,
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stating that quality begins and endsbywith it.
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VARIOUS APPROACHES TO TQM….

5. ISHIKAWA’S APPROACH TO TQM…

 He has been associated with the development and

advocacy of universal education in the seven QC tools
(Ishikawa, 1985). These tools are:
 Pareto chart;
 Cause and effect diagram (Ishikawa diagram);
 Stratification chart;
 Scatter diagram;
 Check sheet;
 Histogram;
 Control chart.

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VARIOUS APPROACHES TO TQM….

5. ISHIKAWA’S APPROACH TO TQM…

 Ishikawa’s concept of TQM contains the following six

fundamental principles:
Quality first-not short-term profits first;
Customer orientation-not producer orientation;
The next step is your customer-breaking down the barrier of
sectionalism;
Using facts and data to make presentations-utilization of
statistical methods;
Respect for humanity as a management philosophy, full
participatory management;
Cross-functional management.

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RELATIONSHIP BETWEEN ISO 9000 AND QUALITY
What is Quality ?
 Quality is a state of mind and can be delivered better by people who
are having fun than by people who live dull, regulated lives
surrounded by slogan and exhortations.
 Quality means satisfying the customer. According to TQM, the quality
is totally defined by the customer’s perceptions. It doesn’t matter
what we think, it matters what our customers think, and the
customers’ perceptions are constantly changing.
 It is up to us to make sure our organization is fast and flexible enough
to respond to their demand of better products/services.
 Quality management, as specified in ISO-9000, is about managing our
organization with the objective of satisfying our customers’ needs.

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What is ISO-9000?
 ISO-9000 is the generic name used to describe the International
Standard Organization (ISO) 9000 series of management system
standards.
 The peak standard of ISO-9000 series is ISO-9001,
 which is titled ‘Quality Systems—Model
Systems for quality assurance in
design/development, production, installation and servicing’.

 This is the standard to which an organization can be certificated

for the design, development, installation, and maintenance of
products and services (e.g., software development, operation,
and support)…[Jenner, Michael G.].

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RELATIONSHIP BETWEEN ISO 9000 AND QUALITY
 There are two principal approaches which can be adopted to
ensure that products and services meet the needs of the
customer.
 by means of quality control, and

 through quality assurance.

Quality Control Approach

 Techniques which are used to identify products that do not meet the
required specifications.
 The underlying philosophy behind these techniques is to carry out
inspections after the product has been produced.
 Consequently, the quality control approach to quality can result in
very high costs as a lot of resources would have already been utilized
to bring out the products that do not meet the required specifications.

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RELATIONSHIP BETWEEN ISO 9000 AND QUALITY

Quality Assurance Approach

 The very high costs to quality can be avoided in this approach.

 The focus is on the process that results in the product and not on the
product itself.
 By focusing on the process to ensure that only products and services
that meet customer needs will be produced,
 The approach seeks to eliminate the underlying weaknesses in the
process that may give rise to defective products and services.
 In short, the fundamental principle in quality assurance is prevention
and not remedial action after the defects have occurred.
 It is this quality assurance that is the principal goal of the ISO 9000
Standard.

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RELATIONSHIP BETWEEN ISO 9000 AND QUALITY
 For an organization to achieve quality assurance it must have an
efficient process governed by a well-planned, well-documented, and
well executed quality management system or ‘quality system’ in short.
 The ISO 9000 standard helps an organization to achieve quality
assurance by creating such a quality system.

ISO 9000 Concept.

 To achieve the goal of quality assurance, the needs of the customer must be
understood and a quality system created based on the ISO 9000 standard.
 The comprehensive coverage and the detailed documentation requirements of
the standard will help ensure that the input and the process for producing the
output will be controlled and the output verified so as to ascertain that it meets
customer needs.
 In this way the ISO 9000 standard will achieve a quality system that
ensures that the products and services of an organization are of consistent
quality.

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RELATIONSHIP BETWEEN ISO 9000 AND TQM
 ISO 9000 will help to build a strong foundation for the implementation
of TQM.
 TQM is a quality management process that is based on-
 The quality philosophy of customer orientation,
 Continuous improvement,
 Involvement of all aspects of the organization and
 An emphasis on teamwork.
 Among key organizational areas emphasized by TQM are management
support, strategic quality planning and process management.
 ISO 9000 also covers these areas with a particular emphasis on process
management.
 The quality system developed by ISO 9000 will enhance the
effectiveness and efficiency of process management, thereby
considerably assisting in the implementation of TQM.

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PRINCIPLES OF ISO 9000
 ISO 9000 embodies a few key principles which include:

Principle One:
One ISO 9000 is a standard for a quality system. It is not a product
or service standard which describes the specifications that the product or
service must have.
 Example, SMR is a standard for a type of rubber produced by Malaysia. This standard
lays down the specifications that this type of rubber must have in terms of color,
elasticity and the type of chemicals that it will contain. ISO 9000 on the other hand
only lays down the standard for the quality system that produces this rubber.

Principle Two:
Two ISO 9000 is based on documentation and is premised on the
following:
 Document what you do;
 Do what you document; and
 Prove it.

Principle Three:
Three ISO 9000 emphasizes prevention. The objective is to prevent
defects in quality and not attend to them after they have
occurred.

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PRINCIPLES OF ISO 9000

 ISO 9000 embodies a few key principles which include:

Principle Four:
Four ISO 9000 is a universal standard.
 It is able to achieve this universality because it only spells out broad
requirements and leaves the manner of fulfilling the requirements to
the organization.
 In other words, the focus of ISO 9000 is on what needs to be done
and not on how it is to be carried out.
 For example,

 The standard mandates corrective action to be carried out but

does not delineate the nature or details of the corrective action
itself.
 Being a universal standard ISO 9000 can be implemented in both
product based and service based organizations, including the Civil
Service.

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BENEFITS OF ISO 9000
 The implementation of ISO 9000 will bring about various benefits
which among others include:
Reduces firefighting and frees managers from constant intervention in the
operation of the business. (the staff will be given the means to control
their own operations);

Provides the means for enabling the right tasks to be identified and
specified in a way that will yield the right results. (The standard requires
planning in advance of the work and putting in place procedures,
standards and guidelines which help people choose the right things to do);

Provides a means of documenting the organization’s experience in a

structured manner that will provide a basis for education and training of
staff and the systematic improvement of performance. (This is taken care
of by the documentation requirements under the standard which not only
call for the quality system to be documented but also to be continually
reviewed and maintained);

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BENEFITS OF ISO 9000
Provides a means for identifying and resolving problems and preventing
their recurrence. (The standard calls for the installing of measures for detecting
deviations from practices and specifications, for discovering the cause of the deviations
and for planning and implementing corrective actions);

Provides the means for enabling people to perform tasks right the first time.
(achieved through the provision of work instructions, effective controls, appropriate
and adequate resources, training, motivation and a conducive environment);

Provides objective evidence that can be used to demonstrate the quality of

the organization’s products and services and to demonstrate to any external
evaluators that the various operations are under control. (The standard enables
this by identifying, producing and maintaining records of key operations); and

Provides data that can be used to determine the performance of operating

processes, products and services and for improving organizational
performance and customer satisfaction. (This is made possible through the
collection, analysis and review of the records generated by the quality system}.

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