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Total Quality Management

Total QualityTotal QualityManagementManagement

ByBy

A.SAINATHA.SAINATH

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What is Quality?What is Quality?Dictionary has many definitions: Essential characteristic,Dictionary has many definitions: Essential characteristic,

Superior, etc.Superior, etc.Some definitions that have gained wide acceptance in variousSome definitions that have gained wide acceptance in various

organizations: organizations: Quality is customer satisfactionQuality is customer satisfaction, , Quality isQuality isFitness for UseFitness for Use..

Thequality of a product or service isThequality of a product or service isa customers perception of thedegree toa customers perception of thedegree towhich theproduct or servicemeetshiswhichtheproduct orservicemeetshisorherexpectations.orherexpectations.

The American National Standards Institute (ANSI) and theThe American National Standards Institute (ANSI) and theAmerican Society for Quality (ASQ) define quality as:American Society for Quality (ASQ) define quality as:

The totality of features and characteristics of a product orThe totality of features and characteristics of a product orservice that bears on its ability to satisfy given needs.service that bears on its ability to satisfy given needs.

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Some Dimensions of ProductSome Dimensions of Product

QualityQuality PerformancePerformance

FeaturesFeatures

ReliabilityReliability ServiceabilityServiceability

DurabilityDurability

AppearanceAppearance

Customer serviceCustomer service

SafetySafety

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Determinants of QualityDeterminants of Quality

QualityofdesignQualityofdesign

Quality capabilityofproductionprocessesQualitycapabilityofproductionprocesses QualityofconformanceQualityofconformance

Qualityofcustomer serviceQualityofcustomer service

Organizational qualitycultureOrganizational qualityculture

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TQM: A Buzzword LosingTQM: A Buzzword Losing

PopularityPopularity Formanycompanies, the term TQM isFormanycompanies, the term TQM is

associated with corporateprograms (mid 1980sassociated with corporateprograms (mid 1980s~ early 1990s) aimed at implementing employee~ early 1990s) aimed at implementing employee

teams and statistical process control.teams and statistical process control. Unfortunately, manycompanies weredissatisfiedUnfortunately, manycompanies weredissatisfied

with theperceivedresults of theseprograms,with theperceivedresults of theseprograms,concluding TQM does not work.concluding TQM does not work.

Question: Why were theydissatisfied?Question: Why were theydissatisfied?Were they justified?Were they justified?

Quadir Mohiuddin

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Why Quality?Why Quality?

Reasons for quality becoming a cardinal priority for mostReasons for quality becoming a cardinal priority for mostorganizations:organizations:

CompetitionCompetitionTodays market demand high quality productsTodays market demand high quality productsat low cost. Having `high quality reputation is not enough!at low cost. Having `high quality reputation is not enough!Internal cost of maintaining the reputation should be less.Internal cost of maintaining the reputation should be less.

Changing customerChanging customerThe new customer is not onlyThe new customer is not onlycommanding priority based on volume but is more demandingcommanding priority based on volume but is more demandingabout the quality system.about the quality system.

Changing product mix

Changing product mix

The shift from low volume, high

The shift from low volume, highprice to high volume, low price have resulted in a need toprice to high volume, low price have resulted in a need to

reduce the internal cost of poor quality.reduce the internal cost of poor quality.

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Why Quality?Why Quality?

Product complexityProduct complexity As systems have become more complex,As systems have become more complex,the reliability requirements for suppliers of components havethe reliability requirements for suppliers of components have

become more stringent.become more stringent.

Higher levels of customer satisfactionHigher levels of customer satisfaction Higher customersHigher customers

expectations are getting spawned by increasing competition.expectations are getting spawned by increasing competition.

Relatively simpler approaches to quality viz. product inspectionRelatively simpler approaches to quality viz. product inspectionfor quality control and incorporation of internal cost of poorfor quality control and incorporation of internal cost of poorquality into the selling price, might not work for todaysquality into the selling price, might not work for todays

complex market environment.complex market environment.

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TQMTQM

TotalTotal -- Madeupof thewholeMadeupof thewhole

QualityQuality -- degreeofexcellencea productordegreeofexcellencea productor

serviceprovidesserviceprovides ManagementManagement -- Act, artormannerofAct, artormannerofplanning, controlling, directing,.planning, controlling, directing,.

Therefore, TQM is the art of managingTherefore, TQM is the art of managingthe whole to achieve excellencethe whole to achieve excellence..

Quadir MohiuddinTotal Quality Management

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Quality perspectivesQuality perspectives

Everyone defines Quality based on their own perspective of it.Everyone defines Quality based on their own perspective of it.Typical responses about the definition of quality wouldTypical responses about the definition of quality wouldinclude:include:

1.1. PerfectionPerfection

2.2. ConsistencyConsistency

3.3. Eliminating wasteEliminating waste

4.4. Speed of deliverySpeed of delivery

5.5. Compliance with policies and proceduresCompliance with policies and procedures

6.6. Doing it right the first timeDoing it right the first time

7.7. Delighting or pleasing customersDelighting or pleasing customers

8.8. Total customer satisfaction and serviceTotal customer satisfaction and service

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Total Quality ManagementTotal Quality Management

A setofprinciples andpracticesA setofprinciples andpractices

whosecore ideas includewhosecore ideas includeunderstanding customerneeds,understanding customerneeds,doing things right thefirstdoing things right thefirst

time,and striving forcontinuoustime,and striving forcontinuousimprovement.improvement.

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What does TQM mean?What does TQM mean?

Total Quality Managementmeans that theTotal Quality Managementmeans that theorganization's culture is defined by andorganization's culture is defined by andsupp

orts theconstant attainmentofsupp

orts theconstant attainmentofcustomer satisfaction through ancustomer satisfaction through anintegrated systemof tools, techniques,integrated systemof tools, techniques,and training. This involves thecontinuousand training. This involves thecontinuous

improvementoforganizational processes,improvementoforganizational processes,resulting in high qualityproducts andresulting in high qualityproducts andservices.services.

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Whats the goal of TQM?Whats the goal of TQM?Whats the goal of TQM?Whats the goal of TQM?

Do the right thingsDo the right things rightright the firstthe first

time, every time.time, every time.


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Another way to put itAnother way to put itAnother way to put itAnother way to put it

At its simplest, TQM is all managersAt its simplest, TQM is all managersleading andfacilitating all contributors inleading andfacilitating all contributors ineveryones twomainobjectives:everyones twomainobjectives:

(1)(1) total client satisfactiontotal client satisfaction throughthroughqualityproducts and services; andqualityproducts and services; and

(2)(2) continuous improvementscontinuous improvements totoprocesses,systems, people,suppliers,processes,systems, people,suppliers,partners, products,andservices.partners, products,andservices.


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Productivity and TQMProductivity and TQM

Traditional view:Traditional view:

Qualitycannot be improvedwithoutQualitycannot be improvedwithoutsignificant losses inproductivity.significant losses inproductivity.

TQM view:TQM view:

Improvedquality leads to improvedImprovedquality leads to improvedproductivity.productivity.


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Basic Tenets of TQMBasic Tenets of TQM

1. Thecustomermakes theultimate1. Thecustomermakes theultimatedeterminationofquality.determinationofquality.

2. Top Managementmustprovide leadership2. Top Managementmustprovide leadershipand supportfor all quality initiatives.and supportfor all quality initiatives.

3. Preventing variability is thekey toproducing3. Preventing variability is thekey toproducinghigh quality.high quality.

4. Quality goals area moving target, thereby4. Quality goals area moving target, therebyrequiring a commitment towardcontinuousrequiring a commitment towardcontinuous

improvement.improvement. 5. Improving quality requires theestablishment5. Improving quality requires theestablishment

ofeffectivemetrics. Wemust speakwith dataofeffectivemetrics. Wemust speakwith dataandfacts not justopinions.andfacts not justopinions.


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The three aspects of TQMThe three aspects of TQM

Counting

Customers

Culture

Counting

Customers

Culture

Tools, techniques, and training intheir use for analyzing,

understanding, and solving quality

problems

Quality for the customer as adriving force and central concern.

Shared values and beliefs,

expressed by leaders, that defineand support quality.

Quadir Mohiuddin


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Total Quality ManagementTotal Quality Management

and Continuous Improvementand Continuous Improvement TQM is themanagementprocess used toTQM is themanagementprocess used to

makecontinuous improvements to allmakecontinuous improvements to allfunctions.functions.

TQM represents anongoing, continuousTQM represents anongoing, continuouscommitment to improvement.commitment to improvement.

Thefoundationof total quality is aThefoundationof total quality is a

managementphilosophy that supportsmanagementphilosophy that supportsmeeting customerrequirements throughmeeting customerrequirements throughcontinuous improvement.continuous improvement.


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Continuous Improvement versusContinuous Improvement versus

Traditional ApproachTraditional Approach

MarketMarket--sharefocussharefocus

IndividualsIndividuals

Focus on whoandFocus on whoandwhywhy

ShortShort--termfocustermfocus

Status quofocusStatus quofocus

ProductfocusProductfocus

InnovationInnovation

FirefightingFirefighting

CustomerfocusCustomerfocus

CrossCross--functional teamsfunctional teams

Focus onwhat andhowFocus onwhat andhow LongLong--termfocustermfocus

Continuous improvementContinuous improvement

Process improvementfocusProcess improvementfocus

Incremental improvementsIncremental improvements

Problem solvingProblem solving

Traditional Approach Continuous ImprovementContinuous ImprovementContinuous ImprovementContinuous Improvement

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Elements of TQMElements of TQM

Topmanagementcommitment andTopmanagementcommitment andinvolvementinvolvement

Customer involvementCustomer involvement Designproducts forqualityDesignproducts forquality

Designproductionprocesses forqualityDesignproductionprocesses forquality

Control productionprocesses forqualityControl productionprocesses forquality

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Develop supplierpartnershipsDevelop supplierpartnerships

Customer service, distribution andCustomer service, distribution andinstallationinstallation

Building teams ofempoweredBuilding teams ofempowered

employeesemployeesBenchmarking andcontinuousBenchmarking andcontinuous

improvementimprovement

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Quality ThroughoutQuality Throughout

ACustomers impressionofquality begins withACustomers impressionofquality begins withthe initial contactwith thecompany andthe initial contactwith thecompany andcontinues through the lifeof theproduct.continues through the lifeof theproduct.

Customers look to the total packageCustomers look to the total package -- sales, servicesales, serviceduring thesale, packaging, deliver, and serviceafterduring thesale, packaging, deliver, and serviceafterthesale.thesale.

Qualityextends to how thereceptionist answers theQualityextends to how thereceptionist answers thephone, howmanagers treat subordinates, howphone, howmanagers treat subordinates, how

courteous sales andrepair peopleare, and how thecourteous sales andrepair peopleare, and how theproduct is serviced after thesale.product is serviced after thesale.

All departments of thecompanymust strivetoAll departments of thecompanymust strivetoimprove thequalityof theiroperations.improve thequalityof theiroperations.


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ValueValue--based Approachbased Approach

ManufacturingManufacturingDimensionsDimensions

PerformancePerformance

FeaturesFeatures

ReliabilityReliability

ConformanceConformance

DurabilityDurability

ServiceabilityServiceability

AestheticsAesthetics

PerceivedqualityPerceivedquality

ServiceDimensionsServiceDimensions

ReliabilityReliability

ResponsivenessResponsiveness

AssuranceAssurance

EmpathyEmpathy

TangiblesTangibles


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The TQM SystemThe TQM System

Customer

Focus

Process

Improvement

Total

Involvement

Leadership

Education and Training Supportive structureCommunications Reward and recognition

Measurement

ContinuousImprovement

Objective

Principles

Elements


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History of quality managementHistory of quality management

To know the future, know the pastTo know the future, know the past!!

Before Industrial Revolution, skilled craftsmen served both asBefore Industrial Revolution, skilled craftsmen served both asmanufacturers and inspectors, building quality into theirmanufacturers and inspectors, building quality into their

products through their considerableproducts through their considerablepride in theirpride in theirworkmanshipworkmanship..

Industrial Revolution changed this basic concept toIndustrial Revolution changed this basic concept tointerchangeable partsinterchangeable parts. Likes ofThomas Jefferson and F. W.. Likes ofThomas Jefferson and F. W.T

aylor (scientific management fame) emphasized onT

aylor (scientific management fame) emphasized onproduction efficiency and decomposed jobs into smaller workproduction efficiency and decomposed jobs into smaller worktasks. Holistic nature of manufacturing rejected!tasks. Holistic nature of manufacturing rejected!

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Statistical approaches to quality controlStatistical approaches to quality controlstarted at Westernstarted at WesternElectric with the separation of inspection division. PioneersElectric with the separation of inspection division. Pioneerslike Walter Shewhart, George Edwards, W. Edwards Deminglike Walter Shewhart, George Edwards, W. Edwards Demingand Joseph M. Juran were all employees of Western Electric.and Joseph M. Juran were all employees of Western Electric.

After World War II, under General MacArthur's JapanAfter World War II, under General MacArthur's Japanrebuilding plan, Deming and Juran went to Japan.rebuilding plan, Deming and Juran went to Japan.

Deming and Juran introduced statistical quality control theoryDeming and Juran introduced statistical quality control theoryto Japanese industry.to Japanese industry.

T

he difference between approaches to quality in USA andT

he difference between approaches to quality in USA andJapan: Deming and Juran were able toJapan: Deming and Juran were able to convince the topconvince the topmanagers the importance of qualitymanagers the importance of quality..

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Next 20 odd years, when top managers in USA focused onNext 20 odd years, when top managers in USA focused onmarketing, production quantity and financial performance,marketing, production quantity and financial performance,Japanese managers improved qualityJapanese managers improved quality at an unprecedented rate.at an unprecedented rate.

Market started preferring Japanese products and AmericanMarket started preferring Japanese products and American

companies suffered immensely.companies suffered immensely. America woke up to the quality revolution in early 1980s.America woke up to the quality revolution in early 1980s.Ford Motor Company consulted Dr. DemingFord Motor Company consulted Dr. Demingto help transformto help transformits operations.its operations.

(By then, 80(By then, 80--yearyear--old Deming was virtually unknown in USA.old Deming was virtually unknown in USA.Whereas Japanese government had instituted The DemingWhereas Japanese government had instituted The DemingPrize for Quality in 1950.)Prize for Quality in 1950.)

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Managers started to realize that quality of management isManagers started to realize that quality of management ismore important than management of quality. Birth of themore important than management of quality. Birth of thetermterm Total Quality Management (TQM)Total Quality Management (TQM)..

TQMTQM Integration of quality principles into organizationsIntegration of quality principles into organizations

management systemsmanagement systems.. Early 1990s: Quality management principles started findingEarly 1990s: Quality management principles started finding

their way intheir way inservice industryservice industry. FedEx, The Ritz. FedEx, The Ritz--Carton HotelCarton HotelCompany were the quality leaders.Company were the quality leaders.

TQM recognized worldwideTQM recognized worldwide: Countries like Korea, India,: Countries like Korea, India,Spain and Brazil are mounting efforts to increase qualitySpain and Brazil are mounting efforts to increase qualityawareness.awareness.

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Evolution of TQM philosophiesEvolution of TQM philosophies

The Deming PhilosophyThe Deming Philosophy

Definition of quality, A product or a service possesses quality ifDefinition of quality, A product or a service possesses quality if

it helps somebody and enjoys a good and sustainable market.it helps somebody and enjoys a good and sustainable market.

Improve quality Decrease cost because

of less rework, fewer

mistakes.

Productivity improves

Capture the market

with better quality

and reduced cost.

Stay in

business

Long-term

competitive

strength

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The Deming philosophyThe Deming philosophy

14 points for management:14 points for management:

1.1. Create and publish to all employees aCreate and publish to all employees astatement of the aimsstatement of the aimsand purposesand purposes of the company. The management mustof the company. The management mustdemonstrate their commitment to this statement.demonstrate their commitment to this statement.

2.2. LearnLearn the new philosophy.the new philosophy.

33 Understand theUnderstand thepurpose of inspectionpurpose of inspection to reduce the cost andto reduce the cost andimprove the processes.improve the processes.

4.4. End Endthe practice of awarding business on thethe practice of awarding business on the basis of pricebasis of price

tagtagalone.alone.5.5. Improve constantlyImprove constantly and forever the system of production andand forever the system of production and

service.service.

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6.6. Institute trainingInstitute training

7.7. Teach and instituteTeach and institute leadershipleadership..

8.8. Drive out fear. Create anDrive out fear. Create an environment of innovationenvironment of innovation..

9.9. Optimize the team effortsOptimize the team efforts towards the aims and purposes oftowards the aims and purposes ofthe company.the company.

10.10. Eliminate exhortations for the workforce.Eliminate exhortations for the workforce.

11.11. EliminateEliminate numerical quotasnumerical quotas for production.for production.

12.12. Remove the barriers that robRemove the barriers that robpride of workmanshippride of workmanship..

13.13. EncourageEncourage learning and selflearning and self--improvementimprovement..

14.14. Take action to accomplish the transformation.Take action to accomplish the transformation.

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A System ofProfound KnowledgeA System ofProfound Knowledge

1.1. Appreciation for a systemAppreciation for a system -- A system is a set of functions orA system is a set of functions or

activities within an organization that work together toactivities within an organization that work together to

achieve organizational goals. Managements job is toachieve organizational goals. Managements job is tooptimize the systemoptimize the system. (not parts of system, but the whole!).. (not parts of system, but the whole!).

System requiresSystem requires coco--operationoperation..

2.2. PsychologyPsychologyThe designers and implementers of decisionsThe designers and implementers of decisions

arearepeoplepeople. Hence understanding their psychology is. Hence understanding their psychology is

important.important.

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3.3. Understanding process variationUnderstanding process variation A production processA production process

contains many sources of variation.contains many sources of variation. Reduction in variationReduction in variation

improves qualityimproves quality. Two types of variations. Two types of variations-- common causescommon causes

and special causesand special causes. Focus on the special causes. Common. Focus on the special causes. Common

causes can be reduced only by change of technology.causes can be reduced only by change of technology.

4.4. Theory of knowledgeTheory of knowledge Management decisions should beManagement decisions should be

driven bydriven byfacts, data and justifiable theoriesfacts, data and justifiable theories. Dont follow. Dont follow

the managements fads!the managements fads!

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The Juran philosophyThe Juran philosophy

Pursue quality on two levels:Pursue quality on two levels:

1.1. TheThe mission of the firmmission of the firm as a whole is to achieve highas a whole is to achieve highproductproductqualityquality..

2.2. TheThe mission of each individual departmentmission of each individual departmentis to achieve highis to achieve high

production qualityproduction quality..

Quality should be talked about in a language seniorQuality should be talked about in a language seniormanagement understands:management understands: money (cost of poor quality)money (cost of poor quality)..

At operational level, focus should be on conformance toAt operational level, focus should be on conformance to

specifications through elimination of defectsspecifications through elimination of defects-- use ofuse ofstatistical methods.statistical methods.

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The Juran philosophyThe Juran philosophy

Quality TrilogyQuality Trilogy

1.1. Quality planningQuality planning: Process of preparing to meet quality goals.: Process of preparing to meet quality goals.Involves understanding customer needs and developingInvolves understanding customer needs and developing

product features.product features.

2.2. Quality controlQuality control: Process of meeting quality goals during: Process of meeting quality goals duringoperations. Control parameters. Measuring the deviation andoperations. Control parameters. Measuring the deviation andtaking action.taking action.

3.3. Quality improvementQuality improvement: Process for breaking through to: Process for breaking through tounprecedented levels of performance. Identify areas ofunprecedented levels of performance. Identify areas ofimprovement and get the right people to bring about theimprovement and get the right people to bring about thechange.change.

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The Crosby philosophyThe Crosby philosophy

Absolutes of ManagementAbsolutes of Management

Quality meansQuality means conformance to requirementsconformance to requirements not elegance.not elegance.

There is no such thing asThere is no such thing as quality problemquality problem..

There is no such thing as economics of quality: it is always

There is no such thing as economics of quality: it is alwayscheaper to do thecheaper to do thejob right the first timejob right the first time..

The only performance measurement is theThe only performance measurement is the cost of qualitycost of quality: the: thecost of noncost of non--conformance.conformance.

Basic Elements of ImprovementBasic Elements of Improvement

DeterminationDetermination (commitment by the top management)(commitment by the top management) EducationEducation (of the employees towards Zero Defects (ZD))(of the employees towards Zero Defects (ZD))

ImplementationImplementation (of the organizational processes towards ZD)(of the organizational processes towards ZD)

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QUALITY GURUQUALITY GURU

A guru, bydefinition, is a goodperson, aA guru, bydefinition, is a goodperson, awiseperson and a teacher.Aquality guruwiseperson and a teacher.Aquality gurushould be all of these, plus havea conceptshould be all of these, plus havea conceptand approach toqualitywithin business thatand approach toqualitywithin business thathas madea major and lasting impact. Thehas madea major and lasting impact. Thegurus mentioned in this section havedone,gurus mentioned in this section havedone,

andcontinue todo, that, in somecases,andcontinue todo, that, in somecases,even after theirdeath.even after theirdeath.

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The gurusThe gurus

Therehavebeen threegroups ofgurus since theTherehavebeen threegroups ofgurus since the1940s:1940s:

Early1950s Americanswho took theEarly1950sAmericanswho took the

messagesof qualityto Japanmessagesofqualityto Japan

Late 1950sJapanese who developednewLate 1950sJapanese who developednewconceptsinresponse tothe Americansconceptsinresponse tothe Americans

1970s1970s--1980sWesternguruswho1980sWesternguruswhofollowedthe Japanese industrialsuccessfollowedthe Japanese industrialsuccess

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W. Edwards DemingW. Edwards Deming

Assisted Japan in improving productivity andAssisted Japan in improving productivity andqualityquality

Philip B. CrosbyPhilip B. Crosby

InIn QualityIsFreeQualityIsFree contendsthatacompanycontendsthatacompanyshould havethegoalofzerodefectsshould havethegoalofzerodefects

Armand V. FeigenbaumArmand V. Feigenbaum Developed theconceptof total qualitycontrolDeveloped theconceptof total qualitycontrol

Quality Gurus

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GurusGurus (continued)(continued)

Kaoru IshikawaKaoru Ishikawa

Developed theconceptofDeveloped theconceptofqualitycirclesqualitycircles andanduseofuseoffishbonediagramsfishbonediagrams

Joseph M. JuranJoseph M. Juran

WroteWroteQuality ControlHandbookQuality ControlHandbook

Genichi TaguchiGenichi Taguchi

Associatedwith robustproductdesignAssociatedwith robustproductdesign

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