Total Quality
Management
Total Quality Management
Total Quality Management
TQM is a philosophy which applies equally
to all parts of the organization.
TQM can be viewed as an extension of the
traditional approach to quality.
TQM places the customer at the
forefront of quality decision making.
Greater emphasis on the roles and
responsibilities of every member of staff
within an organization to influence quality.
All staff are empowered.
Total Quality Management
Doing things right..
.FIRST time.
Internetix (2005)
Why TQM?
Ford Motor Company had operating
losses of $3.3 billion between 1980
and 1982.
Xerox market share dropped from 93%
in 1971 to 40% in 1981.
Attention to quality was seen as a way
to combat the competition.
Total Quality Management
Elements of TQM
Leadership
Top management vision, planning and support.
Employee involvement
All employees assume responsibility for the quality
of their work.
Product/Process Excellence
Involves the process for continuous improvement.
Elements of TQM
Continuous Improvement
A concept that recognizes that quality improvement is a
journey with no end and that there is a need for continually
looking for new approaches for improving quality.
Customer Focus on Fitness for Use
Design quality
Specific characteristics of a product that determine its value in the
marketplace.
Conformance quality
The degree to which a product meets its design specifications.
A fundamental concept of TQM
from BS 7850 - a Process
A set of inter-related resources and activities
which transform inputs into outputs. (ISO 8402).
Any activity that accepts inputs, adds values to
these inputs for customers, and produces outputs
for these customers. The customers may be either
internal or external to the organization. (BS 7850)
"The Simple Process"
Control
s
Input
s
Proces
s
Resources
(Source: BS 7850: 1992, Total Quality
Management)
Output
s
Changing Role of the Process Owner
Input
from
supplier
Process
1
As
customer
Process
owner
As
supplier
Outpu
t
Input
Process
1
As
customer
Process
owner
Output
As supplier to
custome
r
(Source: BS 7850: 1992, Total Quality Management)
TQM & organizational Cultural Change
Traditional Approach
TQM
Lack of communication
Open communications
Control of staff
Empowerment
Inspection & fire fighting
Prevention
Internal focus on rule
External focus on customer
Stability seeking
Continuous improvement
Adversarial relations
Co-operative relations
Allocating blame
Solving problems at their roots
Gap
Expectations >
perceptions
Perceived quality
is poor
Gap
Expectations =
perceptions
Source: Slack et al. 2004
Customers
perceptions of the
product or service
Customers
expectations
for the product
or service
Customers
perceptions of
the product or
service
Customers
expectations of
the product or
service
Customers
perceptions of
the product or
service
Customers
expectations for
the product or
service
Perceived quality is governed by the gap between customers
expectations and their perceptions of the product or service
Expectations <
perceptions
Perceived quality is
good
Additional views of Quality in Services
Technical Quality versus Functional Quality
Technical quality the core element of the good or service.
Functional quality customer perception of how the good
functions or the service is delivered.
Expectations and Perceptions
Customers prior expectations (generalized and specific service
experiences) and their perception of service performance affect
their satisfaction with a service.
Satisfaction = (Perception of Performance) (Expectation)
Word of mouth
communications
Previous
Experience
Image of product
or service
Customers
perceptions
concerning the
product or service
Customers
expectations
concerning a
product or service
A Gap model
of Quality
Gap 4
Customers own
specification of
quality
Gap 1
organizations
specification of
quality
Managements
concept of the
product or service
The actual product
or service
Gap 3
Gap 2
Source: Parasuraman, Zeithman and Berry.
1985
Continuous
Improvement
Philosophy that seeks to make never-ending
improvements to the process of converting
inputs into outputs.
Kaizen: Japanese
word for continuous
improvement.
Implementing TQM
Successful Implementation of TQM
Requires total integration of TQM into day-to-day
operations.
Causes of TQM Implementation Failures
Lack of focus on strategic planning and core
competencies.
Obsolete, outdated organizational cultures.
Obstacles to Implementing TQM
Lack of a company-wide definition of quality.
Lack of a formalized strategic plan for change.
Lack of a customer focus.
Poor inter-organizational communication.
Lack of real employee empowerment.
Lack of employee trust in senior management.
View of the quality program as a quick fix.
Drive for short-term financial results.
Some criticisms of
TQM
1. Blind pursuit of TQM programs
2. Programs may not be linked to
strategies
3. Quality-related decisions may not be
tied to market performance
4. Failure to carefully plan a program
Performance
PDCA Cycle repeated to
create continuous
improvement
Plan
Act
Do
Check
Continuous
improvement
Time
Recognizing and
rewarding Quality
Promotion of high quality goods and
services
Malcolm Baldrige National Quality Award
(MBNQA) (United States)
Deming Prize (Japan)
European Quality Award (European Union)
ISO9000 certification
The integrated framework of the
Baldrige Award criteria
Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)
Continual
Continualimprovement
improvementof
ofthe
thequality
qualitymanagement
management system
system
Customers
(and other
interested
parties)
Customers
(and other
interested
parties)
Management
responsibility
Measurement,
analysis and
improvement
Resource
management
Requirements
Input
Key:
Value adding activity
information flow
Product
realisation
Product
Satisfac
tion
Output
Source: BS EN ISO
9001:2000
TQM: A Buzzword Losing
Popularity
For many companies, the term TQM is associated
with corporate programs (mid 1980s ~ early 1990s)
aimed at implementing employee teams and
statistical process control.
Unfortunately, many companies were dissatisfied
with the perceived results of these programs,
concluding TQM does not work.
Question: Why were they dissatisfied?
Were they justified?
Total Quality Management
TQM
Total - made up of the whole
Quality - degree of excellence a product or
service provides
Management - act, art or manner of planning,
controlling, directing,.
Therefore, TQM is the art of managing the
whole to achieve excellence.
excellence
Total Quality Management
What does TQM mean?
Total Quality Management means that the
organization's culture is defined by and
supports the constant attainment of
customer satisfaction through an integrated
system of tools, techniques, and training.
This involves the continuous improvement of
organizational processes, resulting in high
quality products and services.
Total Quality Management
Another way to put it
At its simplest, TQM is all managers
leading and facilitating all
contributors in everyones two main
objectives:
(1) total client satisfaction through quality
products and services; and
(2) continuous improvements to processes,
systems, people, suppliers, partners, products,
and services.
Total Quality Management
Productivity and TQM
Traditional view:
Quality cannot be improved without
significant losses in productivity.
TQM view:
Improved quality leads to improved
productivity.
Total Quality Management
Basic Tenets of TQM
1. The customer makes the ultimate
determination of quality.
2. Top management must provide leadership
and support for all quality initiatives.
3. Preventing variability is the key to producing
high quality.
4. Quality goals are a moving target, thereby
requiring a commitment toward continuous
improvement.
5. Improving quality requires the
establishment of effective metrics. We must
speak with data and facts not just opinions.
Total Quality Management
The three aspects of
TQM
Counting
Customers
Culture
Tools, techniques, and training in
their use for analyzing,
understanding, and solving quality
problems
Quality for the customer as a
driving force and central concern.
Shared values and beliefs,
expressed by leaders, that define
and support quality.
Total Quality Management
Total Quality Management
and Continuous Improvement
TQM is the management process used to make
continuous improvements to all functions.
TQM represents an ongoing, continuous
commitment to improvement.
The foundation of total quality is a
management philosophy that supports meeting
customer requirements through continuous
improvement.
Total Quality Management
Continuous Improvement versus
Traditional Approach
Continuous Improvement
Traditional Approach
Market-share focus
Individuals
Focus on who and why
Short-term focus
Status quo focus
Product focus
Innovation
Fire fighting
Customer focus
Cross-functional teams
Focus on what and how
Long-term focus
Continuous improvement
Process improvement
focus
Incremental improvements
Problem solving
Total Quality Management
Quality Throughout
A Customers impression of quality begins with
the initial contact with the company and
continues through the life of the product.
Customers look to the total package - sales, service
during the sale, packaging, deliver, and service after
the sale.
Quality extends to how the receptionist answers the
phone, how managers treat subordinates, how
courteous sales and repair people are, and how the
product is serviced after the sale.
All departments of the company must strive to
improve the quality of their operations.
Total Quality Management
Value-based Approach
Manufacturing
Dimensions
Service Dimensions
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality
Reliability
Responsiveness
Assurance
empathy
Tangibles
Total Quality Management
The TQM System
Continuous
Improvement
Objective
Principles Customer
Focus
Process
Total
Improvement Involvement
Leadership
Education and Training
Supportive structure
Elements
Communications
Reward and recognition
Measurement
Total Quality Management
