Mis-306 [Total Quality Management] Chapter-01 Introduction Definition: Total Quality Management (TQM) is the art of managing the entire organization to achieve excellence by improving processes, meeting customer needs, and transforming the culture through effective management actions. Total Quality Management (TQM) is an enhancement to the traditional way of doing business. Total Quality Management (TQM) is a way of doing business that helps companies compete globally. It involves changing how management works to transform the entire organization. TQM is for the most part common sense. Analyzing the three words, we have: 1. Total—Made up of the whole: This means considering the entire organization, not just individual parts. 2. Quality—Degree of excellence a product or service provides: Quality refers to the level of excellence that a product or service provides. It's about meeting or exceeding customer expectations. 3. Management—Act, art, or manner of handling, controlling, directing, etc.: Management is the way things are handled, controlled, and directed in an organization. So, TQM is about managing the entire organization in a way that achieves excellence. It's like following the Golden Rule: treating others the way you want to be treated. TQM is the art of managing the whole to achieve excellence. TQM is both a philosophy and a set of guiding principles that form the basis of an organization's continuous improvement. It involves using quantitative methods and human resources to improve all processes within the company and meet customer needs now and in the future. TQM brings together management techniques, improvement efforts, and technical tools in a structured and disciplined approach. Basic Approach: TQM requires six basic concepts: 1. A committed and involved management to provide long-term top-to-bottom organizational support: Management must actively support the quality program, set goals, and participate in improvement teams. 2. An unwavering focus on the customer, both internally and externally: The program emphasizes satisfying both internal and external customers, listening to their needs, and striving for defect prevention. 3. Effective involvement and utilization of the entire work force: All employees should be trained in quality improvement skills, involved in project teams, and empowered to make process improvements. 4. Continuous improvement of the business and production process: There should be a constant effort to improve all business and production processes using techniques like SPC, benchmarking, and ISO 9000. 5. Treating suppliers as partners: Suppliers should be treated as partners, focusing on quality and longterm costs rather than price, with a limited number of suppliers to foster collaboration. 1 6. Establish performance measures for the processes: Establish performance measures for the processes means setting up metrics or indicators to evaluate and monitor the effectiveness and efficiency of the organization's processes. To track and improve quality, it's important to measure metrics like uptime, nonconforming rate, absenteeism, and customer satisfaction, displaying them openly for everyone to see, using quantitative data for continuous improvement. New and Old Cultures: Quality Element Definition Previous State 1. In the previous state, the focus was on the product. Priorities 2. In the previous state, quality was secondary to service and cost. Decisions 3. The previous state had a shortterm decision-making approach. Emphasis 4. The previous state focused on detecting errors. Errors Responsibility 5. Operations. 6. In the previous state, quality control was the responsibility of specific individuals or departments. 7. Problems solved by Managers. Problem Solving Procurement 8. In the previous state, price was the main consideration in procurement decisions. 2 TQM 1. While in TQM, the focus is on meeting customer needs. 2. Whereas in TQM, quality is given equal importance to service and cost. 3. While TQM emphasizes long-term decisionmaking. 4. While TQM emphasizes preventing errors from occurring. 5. System. 6. Whereas in TQM, everyone in the organization shares the responsibility for quality. 7. Whereas TQM encourages collaborative problem-solving through teams. 8. Whereas TQM considers life-cycle costs and fosters partnerships with suppliers. Manager’s Role 9. In the previous state, managers primarily planned, assigned, controlled, and enforced quality. 9. Whereas in TQM, managers delegate, coach, facilitate, and mentor to support quality improvement efforts. Gurus of TQM 1. Shewhart: Developed control chart theory and the PDSA cycle for learning and improvement. Emphasized control limits, causes of variation, and rational subgroups. 2. Fisher: Created a foundation for statistical methods, including design of experiments (DOE) and analysis of variance (ANOVA). His work became widely known through publications such as "Statistical Methods for Research Workers." 3. Deming: Taught statistical process control and the importance of quality to Japanese industry. Credited with providing the foundation for the Japanese quality miracle. Developed the "Deming 14 Points" theory for management to improve quality, productivity, and competitive position. 4. Juran: Emphasized the commitment of management at all levels to quality. Recommended project improvements based on return on investment. Introduced the Juran Trilogy of planning, control, and improvement for managing quality. 5. Feigenbaum: Advocated for total quality control and emphasized customer satisfaction. Proposed principles such as genuine management involvement, employee involvement, and company-wide quality control. 6. Ishikawa: Adapted the total quality control concept for the Japanese context. Introduced the cause-andeffect diagram (Ishikawa diagram) and popularized the quality circle concept. 7. Crosby: Argued for the importance of "doing it right the first time" and prevention of nonconformities. Introduced the concept of "zero defects" as the performance standard for quality management. 8. Taguchi: Developed the loss function concept and the signal-to-noise ratio as a proactive measure. Emphasized robust design of parameters and tolerances using traditional design of experiments. Each guru made significant contributions to the field of quality management, introducing theories, methods, and principles that have shaped modern quality practices. 3