Module 5

The concept of total quality

management
 Total quality management
Is a collection of methods that aims to improve a
business' internal and external relations.

A core definition of total quality management

(TQM) describes a management approach to
long–term success through customer satisfaction.
In a TQM effort, all members of an organization
participate in improving processes, products,
services, and the culture in which they work.
 Total Quality Management
Total quality management (TQM) is a system that was
developed by Dr. W. Edwards Deming. This system
was created because of a lack of quality in the
current management systems that were employed
in the era. With this system, more focus is given to
quality output instead of only focusing on the
amount of output that an employee has. The total
quality management approach looks at every aspect
of a business and aims to improve each level so that
everything can work together more in harmony.
FOCUS OF Total Quality Management

1. Customer Focus
2. Harmonic Company Operations
3. Fewer Wasted Resources
 Customer Focus
The total quality management approach focuses on
customers, both internal and external. External
customers are anyone who buys a product or service
from your company. Internal customers are other
people in the business who rely on each other in some
way or another. With total quality management, care is
taken to ensure that each customer interaction is based
on quality and satisfaction. If every external customer is
satisfied, repeat business will be the result. Satisfying
internal customers ensures that employees are happy in
their interactions with each other.
 Harmonic Company Operations
One of the major benefits of total quality management is
that it gets everyone in the business on the same
page. To implement this type of system, the upper-
level managers have to set the example for lower-level
employees. Careful planning must go into the process
of developing the system that will be used. The
managers are taught the core values first and then
pass these values onto their subordinates. When every
level of the company is working together, it increases
the output and quality of the company overall.
 Fewer Wasted Resources
By using total quality management, your company can
waste fewer resources and put out more quality
products. With this type of management system,
special emphasis is placed on ensuring that each
product is created to a certain standard. Products are
examined throughout the process so that they are all
made to this standard. This also ensures that faulty
products do not make it out into the market with your
customers. This leads to greater levels of customer
satisfaction and helps you save money on wasted
products.
Principles of total quality management:
Total quality management can be summarized as a
management system for a customer-focused
organization that involves all employees in continual
improvement. It uses strategy, data, and effective
communications to integrate the quality discipline
into the culture and activities of the organization.
Many of these concepts are present in modern
Quality Management Systems, the successor to TQM.
Here are the 8 principles of total quality management
 1. Customer-focused
The customer ultimately determines the level of
quality. No matter what an organization does
to foster quality improvement—training
employees, integrating quality into the design
process, upgrading computers or software, or
buying new measuring tools—the customer
determines whether the efforts were
worthwhile.
 2. Total employee involvement
All employees participate in working toward
common goals. Total employee commitment can
only be obtained after fear has been driven from
the workplace, when empowerment has
occurred, and management has provided the
proper environment. High-performance work
systems integrate continuous improvement
efforts with normal business operations. Self-
managed work teams are one form of
empowerment.
 3. Process-centered
A fundamental part of TQM is a focus on process
thinking. A process is a series of steps that take
inputs from suppliers (internal or external) and
transforms them into outputs that are
delivered to customers (again, either internal
or external). The steps required to carry out the
process are defined, and performance
measures are continuously monitored in order
to detect unexpected variation.
 4. Integrated system
Although an organization may consist of many
different functional specialties often organized
into vertically structured departments, it is the
horizontal processes interconnecting these
functions that are the focus of TQM.
 5. Strategic and systematic approach

A critical part of the management of quality is

the strategic and systematic approach to
achieving an organization’s vision, mission,
and goals. This process, called strategic
planning or strategic management, includes
the formulation of a strategic plan that
integrates quality as a core component.
 6. Continual improvement
A major thrust of TQM is continual process
improvement. Continual improvement drives
an organization to be both analytical and
creative in finding ways to become more
competitive and more effective at meeting
stakeholder expectations.
 7. Fact-based decision making
In order to know how well an organization is
performing, data on performance measures
are necessary. TQM requires that an
organization continually collect and analyze
data in order to improve decision making
accuracy, achieve consensus, and allow
prediction based on past history.
 8. Communications
During times of organizational change, as well as
part of day-to-day operation, effective
communications plays a large part in
maintaining morale and in motivating
employees at all levels. Communications
involve strategies, method, and timeliness.
 The critical control points in total quality
management
TQM tools illustrate and aid in the assimilation of complicated information such as:

1) Identification of your target audience

2) Assessment of customer needs
3) Competition analysis
4) Market analysis
5) Brainstorming ideas
6) Productivity changes
7) Various statistics
8) Staff duties and work flow analysis
9) Statement of purpose
10) Financial analysis
11) Model creation
12) Business structure
13) Logistic analysis

The list goes on, though essentially TQM tools can be used in any situation, for any
number of reasons, and can be extremely effective if used properly.
 Total Quality Management (TQM) Tools
Total quality management (TQM) tools help organizations to identify,
analyze and assess qualitative and quantitative data that is
relevant to their business. These tools can identify procedures,
ideas, statistics, cause and effect concerns and other issues
relevant to their organizations. Each of which can be examined
and used to enhance the effectiveness, efficiency, standardization
and overall quality of procedures, products or work environment
According to Quality America, Inc. the number of TQM tools is close
to 100 and come in various forms, such as brainstorming, focus
groups, check lists, charts and graphs, diagrams and other
analysis tools. In a different vein, manuals and standards are TQM
tools as well, as they give direction and best practice guidelines to
you and/or your staff
 1) Pie Charts and Bar Graphs
Used to identify and compare data units as they
relate to one issue or the whole, such as
budgets, vault space available, extent of funds,
etc.
 2) Histograms
To illustrate and examine various data element
in order to make decisions regarding them
Effective when comparing statistical, survey, or
questionnaire results.
 3) Run Chart
Follows a process over a specific period of time, such as accrual rates, to
track high and low points in its run, and ultimately identify trends, shifts
and patterns.

a) Pareto Charts / Analysis

Rates issues according to importance and frequency by prioritizing
specific problems or causes in a manner that facilitates problem
solving. Identify groupings of qualitative data, such as most frequent
complaint, most commonly purchased preservation aid, etc. in order to
measure which have priority.· Can be scheduled over select periods of
time to track changes. They can also be created in retrospect, as a
before and after analysis of a process change.
 4) Force Field Analysis
To identify driving and restraining forces occurring in
a chosen process in order to understand why that
particular process functions as it does. For example,
identifying the driving and restraining forces of
catering predominantly to genealogists. To identify
restraining forces that need to be eradicated, or
driving forces that need to be improved, in order to
function at a higher level of efficiency.
 5) Focus Groups
Useful for marketing or advertising organizations to
test products on the general public.

· Consist of various people from the general

public who use and discuss your product, providing
impartial feedback to help you determine
whether your product needs improvement or if it
should be introduced onto the market.
6) Brainstorming and Affinity Diagrams

Teams using creative thinking to identify various

aspects surrounding an issue.

An affinity diagram, which can be created

using anything from enabling software to post-
it notes organized on a wall, is a tool to
organize brainstorming ideas
 .7) Tree Diagram
To identify the various tasks involved in, and the full
scope of, a project.

· To identify hierarchies, whether of personnel,

business structure, or priorities.

· To identify inputs and outputs of a project,

procedure, process, etc
.8) Flowcharts and Modeling Diagrams
Assist in the definition and analysis of each step in a
process by illustrating it in a clear and comprehensive
manner.

· Identify areas where workflow may be blocked, or

diverted, and where workflow is fluid.

· Identify where steps need to be added or removed

to improve efficiency and create standardized workflow
 .9) Scatter Diagram

To illustrate and validate hunches

· To discover cause and effect relationships, as

well as bonds and correlations, between two
variables

· To chart the positive and negative direction of

relationships
 10) Relations Diagram
To understand the relationships between various
factors, issues, events, etc. so as to
understand their importance in the overall
organizational view.
 11) PDCA
· The Plan-Do-Check-Act style of management where each project or procedure is
planned according to needs and outcome, it is then tested, examined for
efficiency and effectiveness, and then acted upon if anything in the process
needs to be altered.

This is a cyclical style to be iterated until the process is perfected. All of these
TQM tools can be easily created and examined by using various types of
computer software or by simply mapping them out on paper. They can also be
easily integrated into team meetings, organizational newsletters, marketing
reports, and for various other data analysis needs. Proper integration and use of
these tools will ultimately assist in processing data such as identifying collecting
policies, enhancing work flow such as mapping acquisition procedures, ensuring
client satisfaction by surveying their needs and analyzing them accordingly, and
creating an overall high level of quality in all areas of your organization.