Total Quality Management

UNIT-1
INTRODUCTION
Introduction:

• Total Quality Management (TQM) is a modern approach to business that ensures survival in competitive markets
• It requires a shift in management practices to transform the entire organization's culture and actions.
• TQM is about managing all aspects to achieve excellence.
• It embodies principles such as the Golden Rule—treating others as you would want to be treated.
• TQM combines philosophy and principles to build continuously improving organizations, employing quantitative
methods and human resources to exceed customer expectations
• It integrates management techniques, existing improvement efforts, and technical tools in a disciplined manner.
• TQM abbreviation:

Total—Made up of the whole.

Quality—Degree of excellence a product or service provides.
Management—Act, art, or manner of handling

An example: of Total Quality Management (TQM) in action could be a manufacturing company that implements
TQM principles to improve its production processes and customer satisfaction.

Initially, the company might conduct a thorough analysis of its operations to identify areas for improvement,
such as reducing defects, enhancing product design, and streamlining workflows.
They might then implement techniques like statistical process control to monitor and improve manufacturing
processes, employee training programs to ensure everyone understands and contributes to quality goals, and
regular customer feedback surveys to understand and address their needs better.

By consistently applying TQM principles throughout the organization, the company aims to achieve
excellence in product quality, customer satisfaction, and overall performance, thereby staying competitive
in the market.

Need For quality :

The goal of TQM is to deliver quality products or services to customers, leading to improved productivity and
cost reduction. This, in turn, enhances the organization's competitive position by offering higher quality at
lower prices. Consequently, the organization can achieve its profit and growth objectives more effectively.
Furthermore, job security for the workforce creates a satisfying work environment.

Basic concepts of TQM

1. Committed management providing long-term organizational support.
2. Customer focus, both internally and externally.
3. Effective utilization of the entire workforce.
Basic concepts of TQM
4. Continuous improvement of business and production processes.
5. Treating suppliers as partners.
6. Establishing performance measures for processes.

These principles offer a concise framework for organizational management. Each is briefly explained here
• Management's active involvement in quality initiatives is crucial, with the establishment of a quality council to
set goals and direct the program. TQM becomes ingrained in the organizational culture through continual efforts
and communication
• Emphasizing customer satisfaction, starting with internal customers, by listening to their needs and focusing on
design quality and defect prevention.
• TQM is a collective responsibility, requiring training for all personnel in relevant skills like statistical process
control. Involving internal customers and suppliers in project teams fosters a holistic approach to improvement.
• Continuous efforts to enhance all business and production processes, focusing on quality improvement projects
and utilizing technical techniques for problem-solving.
• Cultivating a partnering relationship with suppliers based on quality and lifecycle costs rather than price,
with a select number of suppliers to enable genuine collaboration.
• Implementing performance measures for each functional area, such as uptime and customer satisfaction,
with data posted visibly to track continuous improvement efforts
Evolution of quality
Defining Quality
When we mention "quality," we typically refer to a product or service that meets or surpasses our expectations,
considering its intended use and price. For instance, a customer anticipates different performance levels from a
basic steel washer compared to a chrome-plated one due to their varying grades.

When a product exceeds what we expect, we deem it as quality. Hence, it's somewhat subjective and based on
perception. Quality can be measured in the following ways:

Q=P/E
where
Q = quality
P = performance
E = expectations

If Q exceeds 1.0, it indicates the customer's positive perception of the product or service. The assessment of P and
E is typically subjective, with the organization evaluating performance and the customer setting expectations.

ISO 9000:2000 offers a clearer definition of quality, defining it as the extent to which inherent characteristics meet
specified requirements. The term "degree" suggests that quality can be described using adjectives like poor,
good, and excellent.
The Dimensions of Product and Service Quality
Gurus of TQM
1. Shewhart: Walter A. Shewhart is known for his foundational work in statistical quality control. He developed the
concept of control charts, which are graphical tools used to monitor and control processes over time. Shewhart also
introduced the Plan-Do-Study-Act (PDSA) cycle, which is a systematic framework for learning and improvement.

2. Fisher: Ronald Fisher made significant contributions to the field of statistics, particularly in experimental design
and analysis. His work laid the groundwork for statistical methods like design of experiments (DOE) and analysis of
variance (ANOVA), which are crucial in understanding variation and making data-driven decisions in quality
improvement.

3. Deming:W. Edwards Deming is often credited with sparking the Japanese quality revolution after World War II.
He emphasized the importance of statistical process control and introduced the concept of management by quality.
Deming's famous "14 Points" provide a comprehensive framework for organizations to improve quality, productivity,
and competitiveness.

4. Juran:Joseph M. Juran focused on the human aspect of quality management. He stressed the need for
management commitment to quality and advocated for hands-on involvement at all levels of an organization. Juran
also introduced the concept of the Juran Trilogy, which consists of quality planning, quality control, and
quality improvement.
Gurus of TQM
5. Feigenbaum:Armand V. Feigenbaum is known for his concept of total quality control (TQC), which emphasizes
that quality is everyone's responsibility within an organization. He emphasized the importance of customer
satisfaction and introduced principles such as management involvement and employee empowerment in quality
improvement efforts.

6. Ishikawa: Kaoru Ishikawa is best known for his contributions to quality tools and methodologies. He developed
the cause-and-effect diagram, also known as the Ishikawa or fishbone diagram, which is a visual tool used to identify
and analyze potential causes of problems. Ishikawa also popularized the concept of quality circles, which are small
groups of employees who work together to solve quality-related issues.

7. Crosby:Philip B. Crosby emphasized the importance of prevention over detection in quality management. He
introduced the concept that "quality is free," arguing that investing in quality upfront reduces costs associated with
defects and rework. Crosby's four absolutes of quality management provide a clear framework for organizations to
achieve and maintain high-quality standards.

8. Taguchi: Genichi Taguchi is known for his work on robust design and quality engineering. He developed the loss
function concept, which quantifies the cost of variability in product performance. Taguchi's methods focus on
designing products and processes that are robust to sources of variation, leading to improved quality and
reliability.
TQM FrameWork
Below Figure outlines the Total Quality Management (TQM) framework, which starts with insights from quality
gurus like Shewhart, Deming, Juran, Feigenbaum, Ishikawa, Crosby, and Taguchi. Their contributions led to the
development of principles, practices, tools, and techniques. Some of these methods are applied during product
and/or service realization. Feedback from internal and external stakeholders aids in continuously enhancing the
organization's system, products, and services.
Barriers to TQM
1. Management Commitment Deficiency: Successful organizational initiatives require significant time and resources
from management. Objectives must be consistently communicated to all staff. Robert Galvin of Motorola noted that
only the CEO can ensure quality and customer satisfaction, yet a survey found that 66% of quality professionals
reported management's compensation isn't linked to quality goals.

2. Resistance to Cultural Change:Changing organizational culture is arduous and can take up to five years. People
resist change as they become accustomed to existing processes. Management must grasp key change concepts,
including the need for trust for change acceptance. Mere motivational tactics like speeches and slogans are
short-lived. Effective communication and long-term focus are crucial for overcoming resistance to cultural change
in TQM implementation.

3. Improper Planning: Involvement of all organizational members in developing and modifying implementation plans
is crucial. Two-way communication during plan development is essential, with customer satisfaction prioritized over
financial or sales goals. For instance, Peterson Products saw a 25% sales increase by focusing on quality and
improving on-time delivery.

4. Lack of Continuous Training and Education:Ongoing training and education for all staff is vital. Needs assessment
and tailored plans are essential for effective training. Senior management conducting training on TQM
principles is most effective. Informal training through continual communication is also valuable.
Barriers to TQM
5. Incompatible Organizational Structure and Isolation: Differences between departments and individuals can hinder
implementation. Multifunctional teams can break down barriers. Restructuring may be necessary for better
responsiveness to customer needs. Spartan Light Metal Products, Inc. uses product support teams composed of
members from different departments.

6. Ineffective Measurement Techniques and Lack of Access to Data: Measuring key organizational characteristics is
crucial for effective decision-making. Access to data and quick retrieval are necessary for process improvement.
Peoples Bank of Bridgeport found that addressing root causes of problems rather than extra inspection and
training was more effective in reducing errors.

7. Inadequate Attention to Customers:Organizations must understand changing customer needs and expectations.
Effective feedback mechanisms are essential for this. Direct access to customers is beneficial. Maruti Suzuki trains its
service technicians and dealers' sales staff to align with changing customer profiles and expectations.

8. Underutilization of Empowerment and Teamwork: Proper training for teams and facilitation, particularly in the
beginning, is crucial. Team recommendations should be followed whenever possible. Individuals should be
empowered to make decisions affecting process efficiency and customer satisfaction. Solar Turbines, Inc.
flattened its organizational structure, empowering work teams and delegating authority to customer contact
points or work performers.
Benefits of TQM
1. Improved Quality: TQM leads to enhanced product and service quality, meeting or exceeding customer
expectations.
2. Employee Participation and Teamwork: TQM encourages involvement from all employees, fostering teamwork
and collaboration.
3. Better Working Relationships: TQM enhances relationships among employees and between different departments
within the organization.
4. Increased Customer Satisfaction: TQM focuses on meeting customer needs and preferences, resulting in higher
levels of satisfaction.
5. Enhanced Employee Satisfaction: Through involvement and recognition, TQM boosts employee morale and
satisfaction.
6. Improved Productivity: TQM streamlines processes, reduces waste, and enhances efficiency, leading to increased
productivity.
7. Effective Communication: TQM promotes open communication channels within the organization,
facilitating information sharing and problem-solving.
8. Enhanced Profitability: TQM contributes to improved financial performance through increased efficiency,
customer satisfaction, and market share.
9. Greater Market Share: By meeting customer needs effectively, TQM helps organizations gain a competitive edge
and expand their market share.
W. EDWARDS DEMING’S 14 POINTS

1. Create constancy of purpose for improving products and services.

2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single
supplier.
5. Improve constantly and forever every process for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for management.
12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.