Chapter 1:

Overview of
Total Quality
Management
Souman Guha
Lecturer, Department of Management,
Bangladesh University of Professionals
 Discussion Points

• Basic Concepts of Total

Quality Management
(TQM)
• Overview of TQM
Framework
• Contribution of Quality
gurus in TQM journey
• Benefits of TQM

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 What’s Quality to you?

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 Can a Flagship killer phone
really kill a phone?

Do we expect all features in one phone?

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 Quality means different to different people

1. Customer-Based: Fitness for use, meeting customer expectations.

2. Manufacturing-Based: Conforming to design, specifications, or requirements. Having

no defects.

3. Product-Based: The product has something that other similar products do not that adds
value.

4. Value-Based: The product is the best combination of price and features.

5. Transcendent: It is not clear what it is, but it is something good...

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 A well-earned reputation for high quality, durability and sophistication
Precision in manufacturing, Precise Engineering

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 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.

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 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.

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 What is your favorite Valyrian steel weapon?

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 Evolution of TQM

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 Six Basic Approach

A committed and involved

An unwavering focus on the Effective involvement and
management to provide long-
1 term top-to-bottom 2 customer, both internally and 3 utilization of the entire work
externally. force
organizational support.

Continuous improvement of
Establish performance
4 the business and production 5 Treating suppliers as partners. 6 measures for the processes.
process.

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 A Generic Process Model

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 CULTURAL CHANGE- A REQUIREMENT OF TQM
Quality Element Previous State TQM
Definition Product oriented Customer Oriented
Priorities Second to Service and Cost First among equals of service
and cost
Decisions Short-term Long-term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem solving Managers Team
Procurement Price Life cycle Costs, Partnership
Manager’s Role Plan, assign, control, and Delegate, coach, facilitate and
enforce mentor

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Gurus of TQM

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 1. Walter A. Shewhart

▪ Professional career at Western Electric and Bell

Telephone Laboratories, both divisions of AT&T
▪ Developed control chart theory with control limits,
assignable and chance causes of variation, and rational
subgroups
▪ Authored Economic Control of Quality of Manufactured
Product in 1931
▪ Developed the PDSA cycle for learning and
improvement
▪ Father of Quality Control

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 2. Ronald Fisher
▪ Fisher is not known as a quality guru
▪ Created a solid foundation of statistical
▪ methods, such as design of experiments (DOE) and analysis of variance
(ANOVA) in the 1930s
▪ DOE is one of the most powerful tools used by many organizations in
problem solving and process improvements
▪ Fisher published the books -Statistical Methods
▪ for Research Workers in 1925, The Design of Experiments in 1935 and
Statistical Tables in 1947.1

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 3. W. Edwards Deming
▪ A protégé of Shewhart
▪ Credited with providing the foundation for the Japanese quality miracle
and resurgence as an economic power
▪ The best- known quality expert in the world
▪ His 14 points provide a theory for management to improve quality,
productivity, and competitive position
▪ Authored books -Out of the Crisis and Quality, Productivity, and
Competitive Position

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 4. Joseph M. Juran
▪ Emphasized the necessity for management at all levels to be committed
to the quality effort with hands-on involvement
▪ Recommended project improvements based on return on investment to
achieve breakthrough results
▪ The Juran Trilogy for managing quality is carried out by the three
interrelated processes of planning, control, and improvement
▪ In 1951, the first edition of Juran’s Quality Control Handbook was
▪ published.

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 5. ARMAND V. FEIGENBAUM
▪ Argues that total quality control is necessary to achieve productivity,
market penetration, and competitive advantage
▪ Quality begins by identifying the customer’s requirements and ends
with a product or service in the hands of a satisfied customer
▪ Some of Feigenbaum’s quality principles are genuine management
involvement, employee involvement, first-line supervision leadership,
and company-wide quality control
▪ In 1951, he authored Total Quality Control.

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 6. KAORU ISHIKAWA
▪ Borrowed the total quality control concept and adapted it for the
Japanese
▪ Best known for the development of the cause and effect diagram
▪ Developed the quality circle concept where working groups were trained
in SPC concepts
▪ The groups then met to identify and solve quality problems in their work
environment.

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 7. 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

1. Quality is conformance to requirements

2. Prevention of the non-conformance is the objective not appraisal
3. The performance standard is zero defects, not that’s close enough
4. The measurement of quality is the cost of non-conformance
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 8. 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

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 TQM Framework

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 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

• Q= quality
• P= performance
• E= expectations

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 Quality Defined
▪ 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.

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 Dimensions of Quality

Dimensions Meaning and Example

Performance Primary product characteristics, such as the brightness of the picture
Features Secondary characteristics, added features, such as remote control.
Conformance Meeting specifications or industry standards, workmanship
Reliability Consistency of performance over time
Durability Useful life, includes repair
Service Resolution of problems and complaints, ease of repair
Response Human to human interface, such as the courtesy of the dealer.
Aesthetics Secondary characteristics, such as exterior finish
Reputation Past performance and other intangibles, such as being ranked first

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 REVISITING TQM
PRINCIPLES

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 Obstacles of TQM
Incompatible organizational structure Failure to continually
Lack of Management Commitment and isolated individuals and improve
departments.

Ineffective Measurements techniques

Inability to change organizational Culture
and Lack of access to data and results

Paying inadequate attention to internal

Improper Planning
and external customers

Inadequate use of Empowerment and

Lack of Continuous training and Education
Teamwork

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 Benefits of TQM

Description Control Award

Growth in Operating 43% 91%
Income
Increase in Sales 32% 69%
Increase in Total Assets 37% 79%

Award group (after Award) outstripped the Control Group (non-award winners of
similar size) with stock price performance 114% while S&P was 80%

Only 30% of the manufacturing organizations have successfully implemented TQM

Source: Hendricks, K. B., & Singhal, V. R. (2001). Firm characteristics, total quality management, and financial
performance. Journal of operations management, 19(3), 269-285.

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 Benefits of TQM
Market Share

Improved Quality Customer Satisfaction

Profitability

Employee Participation Employee satisfaction

Teamwork Productivity

Working Relationships Communication

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 The linkage between
TQM and productivity

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 TQM Pioneering
Organization
"Quality is a way of life in a business, not an advertising term."--
Robert W. Galvin, President, Motorola Inc., October 1962, Quality
Assurance magazine.

Participative Management
Introduced Concept of SIX Program (PMP) team to
40% of quality training
SIGMA (no more than 3.4 assess quality goals, identify
devoted to quality matters
defects per million) new initiatives, problem
resolution

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Imagine a quality system that:
—tells companies when and how their customers’ needs evolve
—creates more capacity in the whole organization by automating data collection,
analysis, trending, and reporting—so designers can design, engineers can build, and
salespeople can sell
—embeds compliance within flexible, user-friendly, organically built business workflows
—naturally fulfills the spirit—not only the letter—
of the regulations

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 Case:
Smart
quality:
Reimagining
the way
quality
works

Source:
McKinsey
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Recommended Book
for Further Reading

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 END OF DOCUMENT

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