TOTAL QUALITY MANAGEMENT
Chapter ONE
INTRODUCTION
TQM DEFINED
• Total Quality Management (TQM) is an enhancement to the traditional way of doing
business.
• Total—Made up of the whole.
Quality—Degree of excellence a product or service provides.
Management—Act, art, or manner of handling, controlling, directing, etc.
• It is the application of quantitative methods and human resources to improve all the
processes within an organization and exceed customer needs now and in the
future.
• TQM integrates fundamental management techniques, existing improvement
efforts, and technical tools under a disciplined approach.
GOLDEN RULE
• The Golden Rule is a simple but effective
way to explain it: Do unto others as you
would have them do unto you.
• TQM is defined as both a philosophy and a
set of guiding principles that represent the
foundation of a continuously improving
organization.
• Employees- Strong Competitive Position
• Customer-Quality at a reasonable price
• Suppliers- Timely Payment, Long term relationship
• Employees- Competitive Market Position
• Customers- Better Quality Products
• Suppliers- Income
BASIC APPROACHES OF TQM
A committed and
involved management An unwavering focus
Effective involvement
to provide long-term on the customer, both
and utilization of the
top-to-bottom internally and
entire work force.
externally.
organizational support.
Continuous
Establish performance
improvement of the Treating suppliers as
measures for the
business and partners.
processes.
production process.
CULTURAL CHANGE- A REQUIREMENT
OF TQM
GURUS OF TQM
SHEWHART
2. Professional career
at Western Electric
1. Walter A. and Bell Telephone
Shewhart, Laboratories, both
PhD divisions of AT&T
5. Developed
the PDSA
cycle for
learning and
3. Developed control improvement
chart theory with 4. Authored
control limits, Economic Control
assignable and of Quality of
chance causes of Manufactured
variation, and Product in 1931
rational subgroups
RONALD FISHER
1. Fisher
is not 3. DOE is one of the most
known as a powerful tools used by
many organizations in
quality guru
problem solving and
process improvements
4. Fisher published the
2. Created a solid books -Statistical Methods
foundation of statistical for Research Workers in
methods, such as design of 1925, The Design of
experiments (DOE) and Experiments in 1935 and
analysis of variance Statistical Tables in 1947.1
(ANOVA) in the 1930s
W. EDWARDS DEMING
5. Authored
books -Out of
1. A protégé the Crisisand
of Shewhart Quality,
Productivity, and
Competitive
Positionas
2. Credited with 4. His 14 points
providing the provide a theory for
foundation for the management to
Japanese quality improve quality,
miracle and productivity, and
resurgence as an competitive
economic power position
3. The best-
known quality
expert in the
world
Joseph M. Juran
1. Emphasized the 4. In 1951, the first
necessity for edition of Juran’s
management at all Quality Control
levels to be committed Handbook was
to the quality effort with published.
hands-on involvement
3. The Juran Trilogy for
2. Recommended
managing quality is
project improvements
carried out by the three
based on return on
interrelated processes
investment to achieve
of planning, control,
breakthrough results
and improvement
ARMAND V. FEIGENBAUM
Argues that total
quality control2 is Some of
necessary to Feigenbaum’s
achieve quality principles are
productivity, genuine
market management In 1951, he
penetration, and involvement, authored Total
competitive Quality begins by employee Quality Control.
advantage identifying the involvement, first-line
customer’s supervision
requirements and leadership, and
ends with a company-wide
product or service quality control.
in the hands of a
satisfied customer
KAORU ISHIKAWA
Borrowed the total quality
control concept and
adapted it for the Japanese
Best known for the
development of the cause The groups then met to
and effect diagram identify and solve quality
problems in their work
environment.
Developed the quality
circle concept where
working groups were
trained in SPC concepts.
PHILLIP B. CROSBY
Authored his first book, Quality is Free, in 1979
He argued that “doing it right the first time” is less expensive than the costs of
detecting and correcting nonconformities
In 1984, he authored Quality Without Tears, which contained his four absolutes of
quality management.
Four quality management absolutes are:
Quality is conformance to Prevention of nonconformance is The performance standard is zero the measurement of quality is the
requirements the objective not appraisal defects not “that’s close enough,” cost of nonconformance.
GENICHI TAGUCHI
Developed his loss function concept that combines cost,
target, and variation into one metric
Because the loss function is reactive, he developed the signal
to noise ratio as a proactive equivalent.
The cornerstone of Taguchi’s philosophy is the robust design of
parameters and tolerances
TQM FRAMEWORK
QUALITY
QUALITY DEFINED
• When a product surpasses our expectations we consider that quality.
Thus, it is somewhat of an intangible based on perception. Quality can be
quantified as follows:
• Q= P/ E
where Q= quality
P= performance
E= expectations
• A more definitive definition of quality is given in ISO 9000: 2000. It is
defined as the degree to which a set of inherent characteristics fulfills
requirements.
• Degree means that quality can be used with adjectives such as poor,
good, and excellent.
• Inherent is defined as existing in something, especially as a permanent
characteristic. Characteristics can be quantitative or qualitative.
• Requirement is a need or expectation that is stated; generally implied by
the organization, its customers, and other interested parties; or
obligatory.
DIMENSIONS OF QUALITY
OBSTACLES OF
TQM
IMPLEMENTATION
1. LACK OF MANAGEMENT
COMMITMENT
• In order for any organizational effort to succeed, there must be a substantial
management commitment of management time and organizational resources.
The purpose must be clearly and continuously communicated to all
personnel. Management must consistently apply the principles of TQM.
• Robert Galvin of Motorola said that only the CEO can ensure, even in times of
great pressure, that quality and customer satisfaction are preserved. In a
survey of 188 quality professionals, 66% reported that management’s
compensation is not linked to quality goals such as failure costs, customer
complaints, and cycle time reduction.
2. INABILITY TO CHANGE
ORGANIZATIONAL CULTURE
1. People change when they want to and to meet their own needs.
2. Never expect anyone to engage in behavior that serves the organization’s
values unless adequate reason (why) has been given.
3. For change to be accepted, people must be moved from a state of fear to
trust.
• It is difficult for individuals to change their way of doing things; it is much
more difficult for an organization to make a cultural change.
• Management by exhortation and inspiration will fail. Speeches, slogans, and
campaigns that are supposed to motivate people are only effective for a short
period of time. Impediments to a cultural change are the lack of effective
communication and emphasis on short-term results.
• Organizations that spend more time planning for the cultural aspects of
implementing a TQM program will improve their chances of success.
3. Improper Planning
• All constituents of the organization
must be involved in the
development of the implementation
plan and any modifications that
occur as the plan evolves.
• Of particular importance is the two-
way communication of ideas by all
personnel during the development
of the plan and its implementation.
Customer satisfaction should be the
goal rather than financial or sales
goals
5. LACK OF CONTINUOUS TRAINING
AND EDUCATION
• Training and education is an ongoing process for everyone in the
organization.
• Needs must be determined and a plan developed to achieve those needs.
• Training and education are most effective when senior management
conducts the training on the principles of TQM. Informal training occurs by
communicating the TQM effort to all personnel on a continual basis.
• In the study by Tamimi and Sebastianelli previously cited, lack of training in
group discussion and communication techniques, quality improvement skills,
problem identification, and the problem-solving method was the second
most important obstacle.
6. Incompatible Organizational 7. Ineffective Measurement
Structure and Isolated Individuals Techniques and Lack of
and Departments Access to Data and Results
• Differences between departments and • Key characteristics of the organization
individuals can create implementation should be measured so that effective
decisions can be made. In order to
problems. The use of multifunctional improve a process you need to
teams will help to break down long- measure the effect of improvement
standing barriers. ideas.
• Access to data and quick retrieval is
• Restructuring to make the organization necessary for effective processes.
more responsive to customer needs
• Peoples Bank of Bridgeport, CT found
may be needed. Individuals who do that extra inspection, training, and
not embrace the new philosophy can management encouragement did not
be required to leave the organization. help a high error rate. Finally the bank
investigated the root causes of the
• Adherence to the six basic concepts problem and corrected them, which
will minimize the problems over time.. virtually eliminated the problem.
8. PAYING INADEQUATE ATTENTION TO
INTERNAL AND EXTERNAL CUSTOMERS
• Organizations need to understand the changing needs and expectations of
their customers.
• Effective feedback mechanisms that provide data for decision making are
necessary for this understanding.
• One way to overcome this obstacle is to give the right people direct access
to the customers.
• Maruti Suzuki, the leading car manufacturing company in India, takes
significant efforts in training their service technicians and dealers’ sales staff
in order to ensure that their actions and interactions are in synchronization
with the changes in customer profiles and expectations. When an
organization fails to empower individuals and teams, it cannot hold them
responsible for producing results.
9. Inadequate Use of 10. Failure to Continually
Empowerment and Teamwork Improve
• Teams need to have the proper training • It is tempting to sit back and rest on
and, at least in the beginning, a
facilitator. Whenever possible, the your laurels. However, a lack of
team’s recommendations should be continuous improvement of the
followed.
processes, product, and/or service
• Individuals should be empowered to will even leave the leader of the
make decisions that affect the
efficiency of their process or the pack in the dust.
satisfaction of their customers.
• Solar Turbines, Inc. flattened its
• Will Rogers said it best, “Even if
organization by restructuring into work you’re on the right track, you’ll get
teams and delegating authority to the run over if you just sit there.”
point of customer contact or to the
work performed.
BENEFITS OF TQM
Improved quality
Employee satisfaction
Employee participation Productivity
Teamwork Communication
Working relationships Profitability
Customer satisfaction
Market share
