Total Quality Management(TQM)

Total Quality Management(TQM)
• The word “total” conveys the idea that all
employees, throughout every function and level of
organization, pursue quality.
• The word “quality” suggests excellence in every
aspect of the organization.
• “Management” refers to the pursuit of quality
results through a quality management process,
including strategic, design, manufacturing, and
finance processes.
Principles of TQM
The customer defines quality.
Top management must provide the leadership for quality
Quality is a strategic issue
All functions of the company must focus on continuous
quality improvement
• Quality problems are solved through cooperation among
employees and management
• Use statistical quality control methods in problem solving
• Training and education of all employees are the basis for
Juran Trilogy
Three aspects of quality managerial systems:
quality planning
quality control
quality improvement
Elements of Quality Systems
Policy, planning, organization, and administration
Product design assurance and specification development
Control of purchased materials and component parts
Production quality control and assurance
Customer contact
Corrective and preventive action
Employee selection, training, and motivation
Legal requirements - product liability and user safety
Sampling and other statistical techniques
Quality Policies
• Mission statement outlines the specific need the
firm’s product or service meets
• Corporate policies (apply to everyone)
• Departmental policies (not relevant to any other
department worker)
• Policies must be consistent with company’s
strategy (buying from a low-cost bidder may be
inconsistent with the strategy of high quality
Deming’s 14 Points for Management
• Create and publish to all employees a statement of the aims
and purposes
• Adopt the new philosophy
• Understand the purpose of inspection
• End the practice of awarding business on the basis of price
tag alone
• Improve constantly the system of production and service
• Institute training
• Teach and institute leadership
Deming’s 14 Points (continued)
• Drive out fear, create trust, create climate for innovation
• Break down barriers between departments
• Eliminate slogans , numerical quotas for production and
other numerical goals
• Remove barriers between employee and his/her supervisor
• Encourage education and self-improvement
• Take action to accomplish the transformation
Deming’s View of Production as
a System
Test of
Design and
Production, assembly, inspection
Tests of processes, machines,
methods, costs
Quality Cost Analysis
Prevention costs
Appraisal costs
Internal failure costs
External failure costs
The major categories of cost as defined by the
Employee Selection, Training,
Motivation programs:
• zero defects
• quality control circles
• participative quality control
• employee involvement
Legal Requirements
• Product liability (examples: the Federal
Meat Inspection Act of 1977, the Radiation
Control for Health and Safety Act of 1968)
• User safety (The Consumer Safety
Commission - 1967)