Total Quality Management
Introduction
“Quality is customer satisfaction,” “Quality is Fitness for
Use.”
• The American National Standards Institute (ANSI) and The American Society
for Quality (ASQ) define quality as:
“The totality of features and characteristics of a product or service that bears
on its ability to satisfy given needs.”
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Introduction
• What is TQM?
A comprehensive, organization-wise effort to improve the quality of products and
services, applicable to all organizations.
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Total
Involvement
& Input of
everyone in
the
Organization.
Top
management
to its
Emplyoees.
Quality
Fully
meeting
customer
needs and
requirements
all the time.
Management
Way we act
& operate
our policies
& procedures
including our
training and
instruction to
all our
employees.
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History of quality management
…To
know the future, know the past!
• Before Industrial Revolution, skilled craftsmen served both as manufacturers and
inspectors, building quality into their products through their considerable pride in their
workmanship.
• Industrial Revolution changed this basic concept to interchangeable parts. Likes of
Thomas Jefferson and F. W. Taylor (“scientific management” fame) emphasized on
production efficiency and decomposed jobs into smaller work tasks. Holistic nature of
manufacturing rejected!
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History of quality management
• Statistical approaches to quality control started at
Western Electric with the separation of inspection
division. Pioneers like Walter Shewhart, George
Edwards, W. Edwards Deming and Joseph M. Juran
were all employees of Western Electric.
• After World War II, under General MacArthur's Japan
rebuilding plan, Deming and Juran went to Japan.
• Deming and Juran introduced statistical quality control
theory to Japanese industry.
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History of quality management
• The difference between approaches to quality in USA and Japan: Deming and Juran were
able to convince the top managers the importance of quality.
• Next 20 odd years, when top managers in USA focused on marketing, production quantity
and financial performance, Japanese managers improved quality at an unprecedented rate.
• Market started preferring Japanese products and American companies suffered immensely.
• America woke up to the quality revolution in early 1980s. Ford Motor Company consulted
Dr. Deming to help transform its operations.
(By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese government
had instituted The Deming Prize for Quality in 1950.)
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History of quality management
• Managers started to realize that “quality of management” is more important than
“management of quality.” Birth of the term Total Quality Management (TQM).
• TQM – Integration of quality principles into organization’s management systems.
• Early 1990s: Quality management principles started finding their way in service
industry. FedEx, The Ritz-Carton Hotel Company were the quality leaders.
• TQM recognized worldwide: Countries like Korea, India, Spain and Brazil are
mounting efforts to increase quality awareness.
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Principles of Total Quality Management (TQM)
• TQM is broadly based on the following principles:
1. Customer Centric Approach – Consumers are the
ultimate judge to determine whether products or services
are of superior quality or not. No matter how many
resources are pooled in training employees, upgrading
machines and computers, incorporating quality design
process and standards, bringing new technology, etc.; at
the end of the day, it is the customers who have the final
say in judging your company. Companies must
remember to implement TQM across all fronts keeping
in mind the customers.
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2. Employee Involvement – Ensuring total employee
involvement in achieving goals and business objectives
will lead to employee empowerment and active
participation from the employees in decision making and
addressing
quality
related
problems.
Employee
empowerment and involvement can be increased by
making the workspace more open and devoid of fear.
3. Continual Improvement – A major component of
TQM is continual improvement. Continual improvement
will lead to improved and higher quality processes.
Continual improvement will ensure companies will find
new ways and techniques in producing better quality
products, production, be more competitive, as well as
exceed customer expectations.
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4. Strategic Approach to Improvement – Businesses
must adopt a strategic approach towards quality
improvement to achieve their goals, vision, and mission.
A strategic plan is very necessary to ensure quality
becomes the core aspect of all business processes.
5. Integrated System – Businesses comprise of various
departments with different functionality purposes. These
functionalities
are
interconnected
with
various
horizontal processes TQM focuses on. Everyone in the
company should have a thorough understanding of the
quality policies, standards, objectives, and important
processes. It is very important to promote a quality
work culture as it helps to achieve excellence and
surpass customer expectations. An integrated system
ensures continual improvement and helps companies
achieve a competitive edge
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6. Decision Making – Data from the performance
measurement of processes indicates the current health of
the company. For efficient TQM, companies must collect
and analyze data to improve quality, decision making
accuracy, and forecasts. The decision making must be
statistically and situational based in order to avoid any
room for emotional based decisions.
7. Communications – Communication plays a crucial
role in TQM as it helps to motivate employees and
improve their morale during routine daily operations.
Employees need to be involved as much as possible in the
day to day operations and decision making process to
really give them a sense of empowerment. This creates
the environment of success and unity and helps drive the
results the TQM process can achieve.
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The Difference Between Traditional &
Total Quality Management
Quality Defined by Company vs. Customer
With traditional quality management, the company defines its quality standards and determines whether a particular
product is acceptable.
In total quality management, customers determine a product’s quality.
A company can change its standards, train employees or revise its processes, but if customers aren’t satisfied, then the
organization isn’t producing a quality product.
Emphasizing Short-Term vs. Long-Term Success
Traditional quality management emphasizes the achievement of short-term objectives, such as the number of products
produced or profits earned in a quarter.
Total quality management looks at long-term improvements in how a product is produced and the sustained satisfaction of
customers.
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Improving People vs. Improving Processes
If defects are found through traditional quality management, managers identify who is responsible and hold them
accountable.
With total quality management, managers and employees look at how they can improve quality by changing the processes
used to produce a product.
Managing With Fear vs. Motivating With Rewards
In traditional quality management, managers rely their on authority as supervisors to tell employees what to do. They may
even use fear to motivate and threaten to discipline or even to fire employees.
 In total quality management, employees are given opportunities to improve themselves. They are rewarded for the
achievement of individual, departmental or organizational goals.
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Accountability of the Few vs. Responsibility of the Many
With traditional management, only the employees who are directly involved in producing a product are responsible for its
quality.
With total quality management, everyone in an organization – including the top executives – are responsible for the quality
of each product that the company produces.
Acting on Instincts vs. Deciding by Facts
In traditional quality management, supervisors and employees solve problems and act based on their individual knowledge,
skills and instincts.
In total quality management, multiple employees, teams or departments solve problems and make decisions based on
substantive data.
Isolation vs. Cooperation
Each employee has a specific role that is narrowly defined by a supervisor in traditional quality management.
Total quality management involves managers and employees working together in an integrated capacity that involves more
than one role or responsibility at a time.
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Correcting Errors vs. Getting It Right the First Time
Traditional quality management requires the reproduction of any product with defects.
Total quality management emphasizes eliminating waste and increasing efficiencies so that a product is produced correctly
the first time.
Fighting Fires vs. Continuously Improving
Traditional quality management addresses problems as they arise, resolving them on a case-by-case basis.
Total quality management emphasizes continuous process improvement, resolving issues systematically.
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Thank You
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