TQM Tools and
Techniques
BITS Pilani
Hyderabad Campus
Naga Vamsi Krishna Jasti
Asst. Professor
Mechanical Engineering Department
BITS Pilani
Hyderabad Campus
Introduction
Contents
 Introduction
 Define Quality and Quality perspectives
 Need and Awareness
 Old vs. TQM Approach
 Gurus of Quality
 History of quality management
 Obstacles to TQM implementation
 Benefits of TQM
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MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
TQM Course Goals
To enable you to
 Appreciate the importance of quality and understand its
historical evolution.
 Understand the basic principles & practices of TQM. The
main elements / practices required for any company
wanting to achieve excellence.
 Apply quantitative and qualitative tools and techniques in
appropriate ways to investigate and ultimately resolve
product or service quality concerns; and
 Evaluate the use of TQM initiatives, tools, and techniques
in an organization

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BITS Pilani, Hyderabad Campus
Course Overview
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BITS Pilani, Hyderabad Campus
Introduction
 TQM is both a philosophy and a set of guiding
principles for continuously improving the organization
 ...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.
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BITS Pilani, Hyderabad Campus
Introduction – contd.,
 It is an enhancement to the traditional way of doing business
 It is a proven technique which guarantee a survival in the
competitive world, if implemented properly
 TQM stands for
– Total - Made up of the whole
– Quality - degree of excellence a product or service
provides
– Management - Act, art or manner of planning, controlling,
directing,….
 Therefore, TQM is the art of managing the whole to achieve
excellence. TQM relies on common sense.
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BITS Pilani, Hyderabad Campus
What is quality?
 Some definitions that have gained wide acceptance in
various organizations: “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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BITS Pilani, Hyderabad Campus
Quality perspectives
Judgmental perspective
 “goodness of a product.”
 Shewhart’s transcendental definition of quality –
“absolute and universally recognizable, a mark of
uncompromising standards and high achievement.”
 Examples of products attributing to this image: Rolex
watches, Lexus cars.
Product-based perspective
 “function of a specific, measurable variable and that
differences in quality reflect differences in quantity of
some product attributes.”
 Example: Sony Bravia and Sansui 21 inch color
televisions.
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BITS Pilani, Hyderabad Campus
Quality perspectives – contd.,
User-based perspective
 “fitness for intended use.”
 Individuals have different needs and wants, and hence
different quality standards.
 Example – Hyundai Accent Vs Mercedez Benz or
BMW cars.
Value-based perspective
 “quality product is the one that is as useful as
competing products and is sold at a lesser price.”
 Example – Indigo Vs Kingfisher.
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BITS Pilani, Hyderabad Campus
Quality perspectives – contd.,
Manufacturing-based perspective
 “the desirable outcome of a engineering and
manufacturing practice, or conformance to
specification.”
 Engineering specifications are the key!
 Example: Diameter of a shaft = 20 +/- 0.5mm
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BITS Pilani, Hyderabad Campus
A better definition of quality
Proposed by Garvin
Garvin mentioned that quality can be defined
 Performance – Primary product characteristics
 Features – Secondary product characteristics
 Conformance – Meeting specifications or standards
 Reliability – Consistency of performance over time
 Durability – Useful life
 Service – Resolution of problem and complaints
 Response – Human to human interaction
 Aesthetics – Exterior finish
 Reputation – Past performance
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Basic concepts of TQM
What are the Basic Concepts of TQM. Explain?
 A committed and involved management to provide
long term top-to-bottom organizational support
 An unwavering focus on the customer – both internal
and external
 Effective involvement and utilization of the entire
work force
 Continuous improvement of the business and
production process
 Treating suppliers as partners
 Establish performance measures for the process
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BITS Pilani, Hyderabad Campus
TQM Language: Some Terms
 What do you mean by a customer?
 Anyone who is impacted by the product or process delivered
by an organization.
 External customer: The end user as well as intermediate
processors. Other external customers may not be purchasers
but may have some connection with the product.
 Internal customer: Other divisions of the company that receive
the processed product.
 What is a product?
 The output of the process carried out by the organization. It
may be goods (e.g. automobiles, missile), software (e.g. a
computer code, a report) or service (e.g. banking, insurance)
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BITS Pilani, Hyderabad Campus
TQM Language – contd.,
How is customer satisfaction achieved?
 Product features – Refers to quality of design.
– Examples in manufacturing industry: Performance,
Reliability, Durability, Ease of use, Esthetics etc.
– Examples in service industry: Accuracy, Timeliness,
Friendliness and courtesy, Knowledge of server etc.
 Freedom from deficiencies – Refers to quality of
conformance.
 Higher conformance means fewer complaints and
increased customer satisfaction.
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BITS Pilani, Hyderabad Campus
The Need for TQM
Why quality is becoming a cardinal priority for most
organizations. Explain?
 Competition – Today’s market demand high quality
products at low cost. Having `high quality’ reputation is
not enough! Internal cost of maintaining the reputation
should be less.
 Changing customer – The new customer is not only
commanding priority based on volume but is more
demanding about the “quality system.”
 Changing product mix – The shift from low volume, high
price to high volume, low price have resulted in a need to
reduce the internal cost of poor quality.
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BITS Pilani, Hyderabad Campus
Need – contd.,
 Product complexity – As systems have become more
complex, the reliability requirements for suppliers of
components have become more stringent.
 Higher levels of customer satisfaction – Higher
customers expectations are getting generate by
increasing competition.
 Relatively simpler approaches to quality viz. product
inspection for quality control and incorporation of
internal cost of poor quality into the selling price,
might not work for today’s complex market
environment.
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BITS Pilani, Hyderabad Campus
Awareness
 An organization will not begin TQM until it is aware that
quality of product/service has to be improved
 Awareness comes
– When organization starts losing market share
– Managers begin to understand quality and productivity
go hand in hand
– It is thrust upon by the customer
– Management understand that it is a better way to do
business
 Automation alone cannot increase profit/growth, if the
quality of product is poor
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BITS Pilani, Hyderabad Campus
Awareness – contd.,
 Quality and productivity are not mutually exclusive,
rather they are related
 Increase in quality level lead to increase in
productivity
 TQM cannot happen overnight. It takes a long time
and at least 4 to 5 years is required to establish it in an
organization
 During those time, short term profits and results
should not be focused rather a long term planning and
constancy of purpose should be maintained.
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Old vs. TQM Approach
Quality Element
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Previous Approach
TQM Approach
Definition
Priorities
Product-oriented
Customer-oriented
2nd to service and cost
Equals of service and cost
Decisions
Emphasis
Errors
Responsibility
Problem Solving
Short-term
Long-term
Detection
Prevention
Operations
System
Quality control
Everyone
Managers
Teams
Procurement
Price
Life-cycle costs,partnership
Manager’s Role
Plan, assign, control, and
enforce
Delegate, coach, facilitate
and mentor
MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
Gurus of Quality
 Walter Shewhart
• Father of Statistical Process Control (SPC)
• Worked at Western Electric and Bell Laboratories Limited
• Developed the control chart theory based on the concept of
special causes and common causes
 Deming
• Spread SPC and quality to the leading CEO’s of Japan
• Provided the foundation for Japan’s quality miracle
• Developed the 14 points for quality improvement, which
formed the basis of ISO 9000, QS 9000 and other quality
systems
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BITS Pilani, Hyderabad Campus
Gurus of Quality – contd.,
 Juran
• Worked at Western Electric and learnt about the
Shewhart’s techniques
• Stressed the necessity of all management at all levels to be
committed to quality
• Proposed the Quality Trilogy
 Feigenbaum
• Noted that quality begins with identifying the customer
needs and ends with a product/service meeting their needs
• Proposed the concept of Total Quality Control
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BITS Pilani, Hyderabad Campus
Gurus of Quality – contd.,
 Ishikawa
• Studied under Deming, Juran and Feigenbaum
• Helped the Japanese to adopt the quality control concepts
that were developed by the US
• Developed the cause and effect diagram
• He proposed the concept of quality circle team
 Crosby
• Quality is free, proposed 4 absolutes of quality
management
• Stressed on the importance of “doing it right first time”
and explained that it is less expensive than the cost of
detecting and correcting mistakes.
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BITS Pilani, Hyderabad Campus
Gurus of Quality – contd.,
 Taguchi
• Developed the concept of loss function, which combined
the concept of cost, target and variation
• Noted that quality is all about reducing the variation
• Proposed a method for the same based on the concept of
design of experiments (DOE).
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BITS Pilani, Hyderabad Campus
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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BITS Pilani, Hyderabad Campus
History – contd.,
 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.
 Japanese were badly defeated in World War II. Their
industrial and financial bases were in chaos.
 Japan had no natural resource and limited source of
food for their people.
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History – contd.,
 The quality movement began in Japan in 1946 with the
U.S. Occupation Force's mission to revive and restructure
Japan's communications equipment industry.
 Deming was invited by the Union of Japanese Scientists
and Engineers to Japan in 1947.
 In 1954, Joseph Juran of the USA raised the level of
quality management from factory to the total organization
in Japan.
 Deming and Juran introduced SPC to Japanese industry.
 The difference between approaches to quality in USA and
Japan: Deming and Juran were able to convince the top
managers the importance of quality.
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BITS Pilani, Hyderabad Campus
History – contd.,
 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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BITS Pilani, Hyderabad Campus
History – contd.,
 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 RitzCarton 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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Obstacles to TQM implementation
What are the major obstacles to TQM.Explain?
 Lack of management commitment
 Any organization change programme requires management
time and resources and it should be provided by the top
management
 The purpose of the change should be communicated to
every employees
 Every in great pressure, the quality and customer
satisfaction should be perceive
 Improper planning
 All constituents (levels) should be involved in the planning
 2 way communication of idea is required among everyone
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Obstacles – contd.,
Inability to change organization culture
 Changing the organization culture is very difficult
 Individual must change- but they are accustomed to one
particular way of performing and prefers that way only
 Management must understand the following
 People change only when their own needs are met
 For change to be accepted, people should be moved
from a state of fear to trust
 Individuals cannot change easily and naturally, the
organization also change its culture easily
 Lack of effective communication and emphasis on short
term results also prevent cultural change
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Obstacles – contd.,
 Paying inadequate attention to internal and external
customers
– Organization needs to understand the changing needs of
customers
– Effective feedback mechanism is necessary
 Inadequate use of empowerment and teams
– Team needs to have proper training and a facilitator
– Teams recommendations should be followed
– Individuals should be empowered to make decisions
 Failure to continually improve
– Lack of continuous improvement of product/services
will even make the leader to be behind the competition
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Obstacles – contd.,
 Lack of continuous training and education
– Training and education is an ongoing process
– Needs must be identified and plan must be made for
achieving that need
– Senior management must conduct the training to
explain about the principles of TQM
– Lack of training on group discussions and
communication, quality improvement skills, problems
solving skills etc. affect implementation
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Obstacles – contd.,
 Incompatible organization structure
– Differences between departments and individuals can
create problems
– Use of multi-functional team is required to resolve this
problem
– Individuals who do not embrace the new philosophy
should be made to leave the organization
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BITS Pilani, Hyderabad Campus
Benefits of TQM
 Improved profitability and market share
 Customer satisfaction
 Product quality
• Less waste and rework
• Higher profits
 Improved communication
 Employee involvement
• Training
• Teamwork
• Employee satisfaction
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BITS Pilani, Hyderabad Campus
Benefits of TQM – contd.,
Studies show that quality programs such as TQM can:
 Boost company revenues by as much as 40%.
 Decrease productivity costs by 20 to 50%.
 Cut production time by as much as 70%.
 Build strong customer loyalty.
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BITS Pilani, Hyderabad Campus
Benefits of TQM
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BITS Pilani, Hyderabad Campus
Benefits of TQM
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BITS Pilani, Hyderabad Campus
Case Study :
BIRLA CELLULOSIC KHARACH
 Incorporated in August 25, 1947, Grasim Industries commenced
operations at Gwalior in central India in 1948, with a small
rayon weaving unit using imported rayon.
 In 1954, GRASIM set its focus on the production of rayon, a
man-made fiber (Viscose Staple Fiber).
 Birla Cellulosic divided its implementation of TQM processes
into five distinct steps.
– Team formation
– Equipping teams
– Enliven Senses
– Competition
– Recognition
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Process of WCM/TQM Implementation
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BITS Pilani, Hyderabad Campus
Identification and implementation of TQM
Leadership :
 Visionary leadership showed new ways of achieving excellence to the whole
organization, providing a role model for all the initiatives being undertaken
by the organization.
 All employees of the organizations was Trained and empowered on TQM
Regular Improvements in Business Processes (PDCA)
 Birla Cellulosic adopted the Plan, Do, Check and Act (PDCA)Approach for
achieving continuous improvement in Business Processes.
Strength as an Organization to Attract Overseas Attention
Technological Edge
 Company’s consistent record of achievements in the area of Quality in
products and at the workplace helped it gain recognition internationally as a
quality-oriented organization. The company's international recognitions,
such as the Deming Prize, and its growing exports bear testimony to this
fact.
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BITS Pilani, Hyderabad Campus
Identification and implementation of TQM
Technological Edge
 The Birla Cellulosic VSF manufacturing facility at
Kharach is a state-of the-art manufacturing facility.
Birla Cellulosic’s primary objective was to redefine
the cellulosic fibre, in terms of quality, cost and its
applications.
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BITS Pilani, Hyderabad Campus
TQM Model implemented by organization
 The figure depicts the TQM model adopted by Birla Cellulosic.
The unique features of this model are as follows:
– It is an integration of TQM and TPM
– It covers all national and international award philosophies
– It focuses on stake/share holder's value performanceoriented model with respect to QCDIPESM ( Quality, Cost,
Delivery, Innovation, productivity, Environment, Safety and
Morale)
– Provides systems, which were totally aligned with the PDCA
Approach for consistent and sustainable growth
– Aligns the whole organization towards a culture of
excellence
– TQM concepts supported by a strong facilitating structure
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What is PDSA Or PDCA
 The plan–do–check–act cycle is a four–step model for carrying
out change. Just as a circle has no end, the PDCA cycle should
be repeated again and again for continuous improvement.
 It is one of the tool to achieve continuous improvement in the
organization.
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When to Use Plan–Do–Check–Act
 As a model for continuous improvement.
 When starting a new improvement project.
 When developing a new or improved design of a process,
product or service.
 When defining a repetitive work process.
 When planning data collection and analysis in order to
verify and prioritize problems or root causes.
 When implementing any change.
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Plan–Do( Study)–Check–Act Procedure
 Plan: Recognize an opportunity and plan a change.
 Do: Test the change. Carry out a small-scale study.
 Check or study: Review the test, analyze the results and
identify what you’ve learned.
 Act: Take action based on what you learned in the study
step: If the change did not work, go through the cycle
again with a different plan. If you were successful,
incorporate what you learned from the test into wider
changes. Use what you learned to plan new improvements,
beginning the cycle again.
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Step One: Plan
 Start by defining the problem and pinpointing the root cause using
the 5 Whys.
 You may need to take a more in-depth approach (such as CauseEffect Diagrams) if the issue is overly complex.
 Problem: Your customer received their order two weeks later than
you promised.
– Why? Production was delayed in Gwalior .
– Why? The factory received the raw rayon fiber they needed two
weeks later than anticipated.
– Why? The raw rayon supplier did not have the materials ready on
time.
– Why? They had trouble sourcing the raw martials needed to make
the raw rayon fiber.
– Why? Their sourcing manager is new and inexperienced.
 Counter-measure: You need to find a secondary raw rayon supplier
that is reliable.
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Step Two: Do
 Now that you have defined your problem and found the root cause, it
is time to brainstorm potential solutions. Once you have your options
laid out, determine which you believe will be most practical.
 Example: Continuing the scenario above, you need to find a rayon
supplier within China in the next 30 days. Your office is located in the
India. You have identified three options: 1) Find a supplier online, 2)
Send your sourcing manager to China to find a supplier or 3) Hire a
sourcing agent in china to find a supplier on your behalf.
 You must weigh the costs and risks of each option.
– What is your budget?
– Which option will allow you to successfully qualify a new
supplier in 30 days?
– What are your criteria for qualifying the new supplier?
– Who will draw up a contract?
 Choose the best option for your company.
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Step Three: Check or Study
 This step may also be referred to as the “study” phase (as
in the Deming Cycle).
 Assess the outcome of the pilot solution. If you realize
there is room for improvement, make necessary changes
and repeat the “do” and “check” phases until you feel you
have reached a comprehensive solution.
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Step Three: Check
 Example: You decided to hire a sourcing agent China to
locate and qualify a secondary raw rayon supplier on your
behalf. You need to determine if this was the best option.
 Did the sourcing agent accomplish the task to your
specifications?
 Are you satisfied with the amount of money and time
spent?
 Did anything go wrong? What obstacles had to be
overcome?
 What factors could you change to improve the process?
 Should you have sent your own sourcing manager instead?
Would it have been worth the cost?
 Perform an analysis to answer these questions.
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Step Four: Act
 The final step is to fully implement your solution. If you
are solving an isolated issue, congratulations! You are
finished.
 If you are striving for continuous improvement, you
should repeat the cycle from Step One: Plan to find
additional opportunities for improvement.
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Step Four: Act
 Example:
 Based on your analysis, you have determined that if you
need to quickly qualify a secondary supplier in the future,
it could be worthwhile to send your sourcing manager to
China instead of hiring a local agent.
 Head back to Step One of the Cycle to re-map your new
plan and use the knowledge you gained from your pilot
test to make improvements.
 When the situation arises again, implement your new plan
following the Cycle in its entirety.
 If that becomes your new standard process for qualifying
suppliers in a pinch, work continuously to identify areas of
weakness and room for improvement to perfect the
process.
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Benefits of Using PDCA
 Provides a standardized method to achieving continuous
improvement that can be used by employees in any
department to resolve new and recurring issues
 Prevents wasted time implementing ineffective or inferior
solutions
 Fosters teamwork through brainstorming and problemsolving
 Inexpensive – Overcome obstacles internally
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Quiz
 A 50 years customer want to buy a toy product to keep in
his showcase at home. His objective to show luxury life
style. He is located at Norway. The available toys are made
up of the following materials. Which type of toy he
prefers:
a) Plastic ( it is very delicate and less durability)
b) Iron with high surface finish
c) Titanium with high weight, more durable and high price
d) Wood
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Quiz
 A 5 years kid want to buy a toy product to play with it. The
available toys are made up of the following materials.
Which type of toy he prefers:
a) Plastic ( it is very delicate and less durability)
b) Iron with high surface finish
c) Titanium with high weight, more durable and high price
d) Wood
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Questions
 How you do say productivity and quality will go hand to
hand?
 How the quality of the product will reduce the price of the
component in the market?
 How can you say quality of service will improve the
customer satisfaction?
 Perform PDSA cycle on your company product or
production line.
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Summing Up
 Introduction
 Define Quality and Quality perspectives
 Need and Awareness
 Old vs. TQM Approach
 Gurus of Quality
 History of quality management
 Obstacles to TQM implementation
 Benefits of TQM
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BITS Pilani, Hyderabad Campus