Total Quality Management (TQM)

TOTAL QUALITY MANAGEMENT

 Total Quality Management is a management
approach that originated in the 1950's and
has become more popular since early
1980’s.

 Total Quality is a description of the culture,

attitude and organization of a company that
strives to provide customers with products
and services that satisfy their needs.
 TQM Defined

TQM is a management philosophy that seeks

to integrate all organizational functions
(marketing, finance, design, engineering, and
production, customer service, etc.) to focus
on meeting customer needs and
organizational objectives.
 TQM contd…
 Total Quality Management (TQM) is a
method by which management and
employees can become involved in the
continuous improvement of the production of
goods and services.
 It is a combination of quality and
management tools aimed at increasing
business and reducing losses due to
wasteful practices.
 TQM contd..
 Some of the companies who have
implemented TQM include Ford Motor
Company, Phillips Semiconductor, SGL
Carbon, Xerox, Motorola and Toyota Motor
Company etc.
 Ford operating losses were $3.3 billion in
1980-82.
 Xerox market share dropped from 93% to
40% from 1971 to 1981.
 Total Quality Management
 Continuous improvement must deal not only with
improving results, but more importantly with improving
capabilities to produce better results in the future.
 The five major areas of focus for capability improvement
are:-
 demand & supply generation
 technology, operations and people capability
 A central principle of TQM is that mistakes may be made
by people, but most of them are caused, or at least
permitted, by faulty systems and processes.
 The root cause of such mistakes can be identified and
eliminated, and repetition can be prevented by changing
the process.
 Total Quality Management
 There are three major mechanisms of
prevention of mistakes in process:
 Preventing mistakes (defects) from occurring (Mistake-
proofing or Poka-Yoke).
 Where mistakes can't be absolutely prevented, detecting
them early to prevent them being passed down the value
added chain (Inspection at source or by the next operation).
 Where mistakes recur, stopping production until the
process can be corrected, to prevent the production of more
defects. (Stop in time).
 Goal of TQM
 “Do the right things right the first time, every
time.”

 All managers and officers of the companies

or organisations endeavour to achieve
mainly two objectives as indicated below: -
 Total customer satisfaction
 Continuous improvement
 Principles of TQM
The key principles of TQM are as following:

Management Commitment
– Plan (drive, direct)
– Do (deploy, support, participate)
– Check (review)
– Act (recognize, communicate, revise)

Employee Empowerment
– Training
– Suggestion scheme
– Measurement and recognition
– Excellence teams
 Principles of TQM contd…
 Fact Based Decision Making
– SPC (Statistical Process Control)
– DOE: Design of Experiments (DOE) is a set of statistical tools
for planning, executing, analyzing, and interpreting
experimental tests to determine the impact of process factors
adopted on the outcomes of process.
– FMEA: Failure Mode and Effects Analysis (FMEA) is an
analytical method in quality management to find out possible
product defects before they occur.
– The 7 statistical tools.
– TOPS (Team Oriented Problem Solving): FORD 8D (08
disciplines of problem solving)
 Principles of TQM Contd….
 Continuous Improvement
– Systematic measurement and focus on Cost of Non
Quality (CONQ) (measure of costs specifically associated
with the achievement or non-achievement of product or
service quality)
– Excellence teams
– Cross-functional process management
– Attain, maintain, improve standards

 Customer Focus
– Supplier partnership
– Service relationship with internal customers
– Never compromise quality
– Customer driven standards
 Various areas of TQM

 Total Quality Control (TQC)

 Total Quality Improvement(TQM)
 Service Quality Improvement
 Quality Maintenance System(QMS)
 Software Quality Assurance(SQA)
 Quality Control

 Industrialization (Mass production)

 Inspection
 Statistical Process Control (SPC) was
introduced in 1924 by Walter A. Shewhart
(an American Physicist, Engineer and
statistician).
 Quality Management

 Improvement Plan at all levels of

organization
 Internal Motivation
 Preventive practice
 Quality Improvement
 Utilizing Statistical Process Control (SPC) that
monitors manufacturing processes with
technology and measures & controls the quality.
 Improving processes.
 Reducing waste.
 Individual Improvement projects
 Monitoring variations
 Quality Assurance

 George Edwards (inventor of the term)

 Assuring quality
 Standardization
 Quality Policies
 Division of responsibility
 Quality Management System

 ISO 9000 is to develop a quality

management system based on the good
practices in the previous three steps.
Total Quality Management

 All aspects of organization adopting

continuous improvement
 Change of organizational culture (shift
from internal measures of efficiency
towards assessment and improvement of
value to the customers
The TQMEX Model
(TQM’s Excellence Model)
 Logic of TQMEX
 In order to have a systematic approach to TQM, it is
necessary to develop a conceptual model.
 The idea was to develop a universally applicable
step-by-step guidelines by including recognised
practices in TQM.
 Japanese 5-S Practice (5-S)
 Business Process Re-engineering (BPR)
 Quality Control Circles (QCCs)
 Quality Management System (ISO 9001/2 )
 Total Productive Maintenance (TPM)
 5-S (Japanese Technique)

Japanese English Meaning Typical Example

Seiri Structurize Organization Throw away rubbish

Seiton Systemize Neatness 30-second retrieval of a

document

Seiso Sanitize Cleaning Individual cleaning

responsibility
Seiketsu Standardise Standarization Transparency of
storage
Shitsuke Self-discipline discipline Do 5-S daily
 How to implement 5-S in
organization

 Step 1 – get the commitment of the top

management and be prepared
 Step 2 – draw up a promotional campaign
 Step 3 – keep records
 Step 4 – 5-S training
 Step 5 – evaluation
BPR( Business Process Reengineering)
 BPR is concerned with re-defining and designing
your business process in order to meet the needs of
your customers effectively.
 It is more concerned with the business objectives
and systems, and should follow as Step 2
 Managers will rethink their traditional work methods
and commit themselves to a customer focused
process.
 BPR helps to cope with radical changes in
technology and competitive pressures.
 QCC(Quality Control Circles)
 QCCs are concerned with encouraging the
employees to participate in continuous improvement
and guide them through.
 They improve human resources capability to achieve
the business objectives.
 A small group of people usually from the same work
area working together voluntarily to contribute to the
identification, analysis and solution of work related
problems and the improvement of the enterprise.
 The Seven quality control tools: MAGNIFICENT
SEVEN
TPM (Total Productive Maintenance)

 TPM is a result of applying 5-S to equipment based

on a sound quality management system.
 TPM is a system of maintenance covering the entire
life of equipment in every division, including
planning, manufacturing and maintenance.
 In fact ISO 9001 requires procedures for process
control and inspection and testing equipment which
are part of TPM. Therefore TPM should be
implemented in Step 5.
Stages of TQM
Quality Monitoring variations
Control

Quality
Assurance Standards based

Quality
Process oriented
Improvement

Quality
Internally motivated
Management

Total Quality
Changed organizational culture
Management
 Managing TQM

What Does the TQM manager Need to

Know?

 Systems Thinking
 Understanding Variations
 Organizational Psychology
What Does the TQM manager Need to
Know?
Systems Thinking

Effective
Management

Understanding Organizational
Variations Psychology
 Systems Theory

Inputs Outputs

Supplies Process Customers

Feedback
Loop
 Understanding Variations

 Special cause variation

 Common cause variation
 Interpretation errors
 Process capability
 Example of probability (coin flipping)
 Individual and Organizational
Psychology

 Efficiency
 Work place harmony
 Characteristic requirements of a person for a
specific job
 Control Chart
A Control Chart is simply a Run Chart with statistically
determined upper and lower limit lines drawn on either side of
the process average. Being in control (means no data points
fall outside the control limits) simply means the process is
consistent and error free.
What Does the TQM Manager Need To Do?

Dr. W. Edwards Deming’s 14 points of management

1.Create constancy of purpose towards improvement of
product and service, with a plan to become competitive
and to stay in business.
2.Adopt the new philosophy.
3.Cease dependence on mass inspection.
4.End of the practice of awarding business on the basis
of price tag alone.
5.Improve constantly and forever the system of
production and service.
6.Institute training.
 Dr. W. Edwards Deming’s 14 points of
management contd…
7. Institute leadership.
8. Drive out fear
9. Break down barriers between department
10. Eliminate slogans, exhortations and numerical goals
that ask for new levels of productivity without providing
methods.
11. Eliminate numerical quotas.
12. Remove barriers to pride of workmanship.
13. Institute a vigorous program of educations and
retraining.
14. Take action to accomplish the transformation.
 KAIZEN (Japanese management
philosophy)
 KAIZEN means improvement.
 It means ongoing improvement involving,
everyone, including managers and workers.
 Kaizen and World war II.
 Kaizen is an umbrella concept covering most
of the Japanese practices that have recently
achieved such worldwide fame.
 Kanban- Just in time production
Q & A session