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Total Quality ManagementbyDr. Asif MahmoodInstitute of Business & ManagementUniversity of Engineering and Technology, LahoreChapter 1: TQM Introduction & Basic Concepts

What is an Organization?An organization is an entity where two or more persons work together to achieve a goal or a common purpose.Unit of Organization:

People Purpose Process POLCAPlanningOrganizingLeadingControllingAssuringHistorical Evolution of Total QualityManagementThe historical evolution of Total Quality Management has taken place in four stagesQuality InspectionQuality ControlQuality AssuranceTotal Quality ManagementHistorical Evolution of Total QualityManagementQuality InspectionOne or more characteristics of a product, service or activity are examined, measured, tested or assessed and compared with specified requirements to assess conformity with a specification or performance standard.In a manufacturing environment the system is applied to incoming goods and materials, manufactured components and assemblies at appropriate points in the process and before finished goods are passed into the warehouse.In service, commercial and public service-type situations the system is also applied at key points, sometimes called appraisal points, in the production and delivery processes.

Historical Evolution of Total QualityManagementQuality InspectionThe system is an after-the-event screening process with no prevention content other than identification of suppliers, operations, or workers, who are producing non-conforming products/services.There is an emphasis on reactive quick-fix corrective actions and the thinking is department-based. Simple inspection-based systems are usually wholly in-house and do not directly involve suppliers or customers in any integrated way.

Historical Evolution of Total QualityManagementQuality ControlWith quality control there were some development from the basic inspection activity in terms of sophistication of methods and systems, self-inspection by approved operators, use of information and the tools and techniques which are employed.While the main mechanism for preventing off-specification products and services from being delivered to customers is screening inspection, quality control measures lead to greater process control and a lower incidence of non-conformance.Considerable effort is expended on after-the-event inspecting, troubleshooting, checking, and testing of the product or service and providing reactive quick fixes to ensure that only conforming products and services are delivered to the customer.Historical Evolution of Total QualityManagementQuality ControlThere is a lack of creative and systematic work activity, with planning and improvements being neglected and defects being identified late in the process, with all the financial implications of this in terms of the working capital employed.In this type of approach a non-conforming product must be made and a service delivered before the process can be adjusted. This is inherently inefficient in that it creates waste in all its various formsThe action is after-the-event and backward looking.

Historical Evolution of Total QualityManagementQuality AssuranceA lasting and continuous improvement in quality can only be achieved by directing organizational efforts towards planning and preventing problems from occurring at source.Examples include:a comprehensive quality management system to increase uniformity and conformity,use of the seven quality control tools (histogram, check sheet, Pareto analysis, cause-and-effect diagram, flow chart, control chart and scatter diagram),statistical process control,failure mode and effects analysis (FMEA), and the gathering and use of quality costs.Historical Evolution of Total QualityManagementQuality AssuranceA shift in emphasis from mere detection towards prevention of non-conformances.It is a prevention-based system which improves product and service quality, and increases productivity by placing the emphasis on product, service and process design.This is a proactive approach compared with detection, which is reactive.There is a clear change of emphasis from downstream to the upstream processes and from product to process.Historical Evolution of Total QualityManagementTotal Quality Management (TQM)It involves the application of quality management principles to all aspects of the organization, including customers and suppliers, and their integration with the key business processes.The spread of the TQM philosophy would also be expected to be accompanied by greater sophistication in the application of tools and techniques, increased emphasis on people (the so-called soft aspects of TQM), process management, improved training and personal development and greater efforts to eliminate wastage and non-value-adding activities.Simply, TQM is the mutual co-operation of everyone in an organization and associated business processes to produce value-for-money products and services which meet and hopefully exceed the needs and expectations of customers.TQM TermTotal - made up of the wholeQuality - degree of excellence a product or service providesManagement - act, art or manner of planning, controlling, directing etc.

So, TQM is a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

TQMHistorical Evolution of Total QualityManagement

Four Levels in Evolution of TQMMeaning of Quality:It is conformance to standards Quality is fitness for use of the product Joseph Juran. 14Meaning of Quality:Customers PerspectiveQuality is also defined as excellence in the product or service that fulfills or exceeds the expectations of the customer.3-16Meaning of Quality:Producers PerspectiveQuality of ConformanceMaking sure a product or service is produced according to designif new tires do not conform to specifications, they wobbleif a hotel room is not clean when a guest checks in, the hotel is not functioning according to specifications of its design3-17Fitness forConsumer UseProducers PerspectiveConsumers PerspectiveQuality of Conformance

Conformance to specificationsCostQuality of Design

Quality characteristicsPriceMarketingProduction Meaning of QualityMeaning of QualityConsumers and Producers Perspectives3-18Dimensions of Quality:Manufactured ProductsPerformance basic operating characteristics of a product; how well a car is handled or its gas mileageFeatures extra items added to basic features, such as a stereo CD or a leather interior in a carReliabilityprobability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years3-19Conformance degree to which a product meets preestablished standardsDurabilityhow long product lasts before replacementServiceabilityease of getting repairs, speed of repairs, courtesy and competence of repair personDimensions of Quality:Manufactured Products (cont.)3-20Aestheticshow a product looks, feels, sounds, smells, or tastesSafety assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobilesPerceptionssubjective perceptions based on brand name, advertising, and the likeDimensions of Quality:Manufactured Products (cont.)3-21Dimensions of Quality:ServiceTime and TimelinessHow long must a customer wait for service, and is it completed on time?Is an overnight package delivered overnight?Completeness:Is everything customer asked for provided?Is a mail order from a catalogue company complete when delivered?3-22Dimensions of Quality:Service (cont.)Courtesy:How are customers treated by employees?Are catalogue phone operators nice and are their voices pleasant?ConsistencyIs the same level of service provided to each customer each time?Is your newspaper delivered on time every morning?3-23Accessibility and convenienceHow easy is it to obtain service?Does a service representative answer you calls quickly?AccuracyIs the service performed right every time?Is your bank or credit card statement correct every month?ResponsivenessHow well does the company react to unusual situations?How well is a telephone operator able to respond to a customers questions?Dimensions of Quality:Service (cont.)TQM Six Basic ConceptsManagement commitment to TQM principles and methods and long term quality plans for the organizationFocus on Customersinternal & externalQuality at all levels of the workforceContinuous improvement of the production/business processTreating suppliers as partnersEstablish performance measures for the process25Demings Chain Reaction/Tangible BenefitsImprove quality Decrease costs due to less rework, fewer mistakes, fewer delays and snags, and better use of time and materialsImprove productivityCapture the market with better quality and lower pricesStay in businessProvide steady jobs and more jobs.3-26Lack of Management CommitmentInability to Change Organizational CultureImproper PlanningLack of Continuous Training and EducationIncompatible Organizational Structure and Isolated Individuals and DepartmentsIneffective Measurement Techniques and Lack of Access to Data and ResultsPaying Inadequate Attention to Internal and External CustomersInadequate Use of Empowerment and TeamworkFailure to Improve ContinuallyObstacles to TQM Implementation