Total Quality

Management

PREPARED BY-

ABHISHEK K.
AJISHA D.
AMAL ROY
ANAND MOHAN
ANJALI H.
Approaches to define Quality
 Transcendent Approach
◦ Quality is absolute and universally recognisable.
◦ It is a common notion used by layman
◦ There is no subjective judgement and is estimated by
looking at the product

 Product Based Approach

◦ Attributes of a particular product in a specific category
◦ These attributes are accepted as benchmark of quality
by the industry
◦ Others in the same industry try to produce close to this
quality
Approaches to define Quality
 User Based Approach
◦ Defined as “Fitness for use”
◦ Viewed from user’s perspective and is dependent on
how well does the product meet needs of the
consumer.
◦ Also known as Customer Oriented Approach

 Production Based Approach

◦ An outcome of engineering or operational excellence
and is measured in terms of quality of conformance
◦ The producer has specifications and produces the
product as per the specifications
Approaches to define Quality
 Value Based Approach
◦ Quality is viewed in context of price
◦ Quality is satisfactory, if it provides desired
performance at an acceptable price
◦ Customer looks at the total value proposition and
not the price alone

Benefits
Value 
price
Attributes of Quality
 Performance
◦ Product’s primary operating characteristics
 Features
◦ Augmented product – The “bells & whistles” of the
product
 Reliability
◦ Ability of the product to function at the specified
level of performance
 Conformance
◦ Degree to which characteristics of the product meet
pre-established standards
Attributes of Quality
 Durability
◦ Length of time a product can be used before it
deteriorates or becomes non functional
 Serviceability
◦ Speed, competence & courtesy of providing ASS
 Aesthetics
◦ Look, feel sound, taste, smell
 Perceived Quality
◦ Resulting from advertisement, image, brand name,
earlier use, hearsay
 What does TQM stand for ???

 TQM stands for Total Quality Management i.e.,

 Total stands for Involvement of all levels of

the organization
 Quality here implies conformance to agreed

upon requirements
 Management here means the best use of

available resources to achieve the above two

i.e., Total Quality.
Definition

 Total Quality Management (TQM) is a

management strategy aimed at embedding
awareness of quality in all organizational
processes.

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Explanation…

 TQM requires that the company maintain

this quality standard in all aspects of its
business.

 This requires ensuring that things are done

right the first time and that defects and
waste are eliminated from operations.

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Evolution of TQM…

 CRAFTSMEN & ARTISANS(E.g. : Artists, Sculptors,

working with metals & other materials who were very
Quality-conscious.

 TRADESMEN (E.g.: Masons, Carpenters etc.)

 ENGINEERING TRADES & PRACTICES ( E.g.: Foundry,

Smithy, Die-making, Mould-making, Stamping,
Forging, Turning, Milling, Drilling etc)
TQM Evolution…
 Custom built articles/products having considerable control
over quality

 Mass produced products with lesser level of quality control

 Quality control department in factories

 TQM based production facility i.e., enhancing the

organization through quality techniques that would in turn
prove beneficial in achieving the organization’s goals. An
example for this would be productivity and profitability
with minimum wastage.

 ISO Quality Management Systems

Evolution Evolution of Quality Era
TQM

TQC &CWQC

TQC

SQC

Inspection

Foreman

Craftsma
n Years
1900 1920 1940 1960 1980
12
1990 2000
 Evolution of Quality – Means &
Focus
197
1980 1985 1990 1995
2000
5

Productivit Quality TQC/TQM

Total
Quality y Quality
Circle

Quality
Employee
of
Involvemen
Work
t
life
Self Self
Directed Directed/Manag
Employees ed
EmpowermTeams Teams
ent

Operation Customers Innovations

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What’s the goal of TQM?
“Do the right
things right
the first
time, every
time.”
TQM is…
 A comprehensive management system which :-
 Focuses on meeting owners’/customers’ needs, by providing
quality services at a reasonable cost.

 Focusses on continuous improvement

 Recognizes the role of everyone in the organization

 Views organization as an internal system with a common aim

 Focusses on the way tasks are accomplished

 Emphasizes team work

TQM focuses on…

CUSTOMER QUALITY
LEADERSHIP
SATISFACTION
POLICY

ORGANISATIO
N TRANING QUALITY COST
STRUCTURE

EMPLOYEE QUALITY
REWARD
INVOLVEMENT CIRCLES
TQM Beliefs
 Following are the universal Total Quality Management beliefs:

Owner/customer satisfaction is the measure of quality

Everyone is an owner/customer.

Quality improvement must be continuous.

Analysis of the processes is the key to quality improvement.

Measurement, a skilled use of analytical tools, and employee involvement are critical sources
of quality improvement ideas and innovations

Sustained total quality management is not possible without active, visible, consistent, and
enabling leadership by managers at all levels

It is essential to continuously improve the quality of products and services that we provide to
our owners/customers
Gurus of TQM

Dr. W E Deming Dr. J M Juran Dr. Philip Crosby

Gurus of TQM

Dr. Genichi Taguchi Dr. Kaoru Ishikawa Dr. Masaaki Imai

 Gurus of TQM

Dr. Shigeo ShingoDr. Yoshio Kondo

Dr .Armand V. Feigenbaum
Dr. James Harrington
The Deming Philosophy
The Deming philosophy consists of 14 points for management:

1. Create
and publish to all employees a statement of the aims and
purposes of the company. The management must demonstrate their
commitment to this statement

2. Learn the new philosophy.

3. Understand the purpose of inspection – to reduce the cost and improve

the processes.

4. End the practice of awarding business on the basis of price tag alone.

5. Improve constantly and forever the system of production and service.

The Deming philosophy
6. Institute training

7. Teach and institute leadership

8. Drive out fear.Create an environment of innovation

9. Optimize the team efforts towards the aims and purposes of the company

10.Eliminate exhortations for the workforce

11.Eliminate numerical quotas for production

12.Remove the barriers that rob pride of workmanship

13.Encouraging learning and self improvement

14.Take action to accomplish the transformation

W E Deming – PDCA Cycle
Seven Deadly Sins
 Lack of vision and mission as regards quality
& process improvement

 Emphasis on short term profit

 Personal performance appraisal systems

 Mobility of management
Seven deadly sins (cont)
 Running a company on visible figures alone
◦ Customer satisfaction level
◦ Employee morale
◦ Relationship with your vendors
◦ Confidence the market has in your company

 Excess non-productive expenditure

 Excessive cost of warranty

J M Juran
 Developed the idea of trilogy
◦ Quality Planning
◦ Quality Improvement
◦ Quality Control

 Conformance to specifications is necessary but

not sufficient requirement of a product.

 Fitness for use by the consumer of the targeted

market segment is an essential requirement in
addition to conformance
J M Juran’s Trilogy
Juran’s 10 Points
 Build awareness of need and opportunities for
improvement
 Set goals for improvement
 Organise the overall improvement programme
 Provide the training
 solve problems through project methodology
 Report progress
 Give recognition
 Communicate results
 Keep score
 Institutionalise the improvement process
Philip Crosby
 Do it right the first time

 Zero Defects

 Absolutes of QM

◦ Quality is defined as conformance to requirements, not as “goodness”or “elegance”

◦ The system for causing quality is prevention, not appraisal – Quality is Free

◦ The performance standard must be Zero Defects, not "that's close enough“

◦ The measurement of quality is the Price of Non-conformance, not indices.

◦ Cost of quality is only the measure of operational performance

 Philip B. Crosby’s 14 points
Philip B. Crosby’s 14 Points
 Make it clear that management is committed to
quality.

 Form quality improvement teams with

representatives from each department.

 Determine where current and potential quality

problems lie.

 Evaluate the cost of quality and explain its use as

a management tool.
 Philip B. Crosby’s 14 points (Cont)
 Raise the quality awareness and personal concern
of all employees.
 Take actions to correct problems identified through
previous steps.

 Establish a committee for the zero defects

programme.

 Train supervisors to actively carry out their part of

the quality improvement programme.
 Philip B. Crosby’s 14 points (Cont)
 Hold a ‘zero defects day’ to let all employees realise
that there has been a change.
 Encourage all individuals to establish improvement
goals for themselves and their groups.
 Encourage employees to communicate to
management the obstacles they face in attaining their
improvement goals.
 Recognise and appreciate those who participate.
 Establish quality councils to communicate on a regular
basis.
 Do it all over again to emphasise that the quality
improvement programme never ends.
Quality TQM principles
 People will produce quality goods and services when the
meaning of quality is expressed daily in their relations.

 Inspection of the process is as important as inspection

of the product.

 Probability of variation, can be understood by scientific

methods.

 Workers work in the system to improve the

system; managers work on the system to improve the
system.
Quality TQM Principles (Cont)
 Total quality management must be consistently
translated into guidelines provided to the whole
organization.

 Envision what you desire , but start working from where you

actually are.

 Cleaner site and safer place to work is also important.

 Accept the responsibility for quality.

 Use the principle of get it right, the first time, every time.

 Understand that quality is a journey, not a destination

How to begin Continuous
Improvement
 Start setting goals, and start meeting the goals you
have set.
 Management indicate complete commitment to

Continuous Improvement (CI).

 Identify stages
 Establish responsibility
 Set the datum
 Pre-Plan
 Regard each project as part of a cycle
 Each worker regard himself or herself as a quality

inspector of his or her task

Reasons to Begin Now
The reasons to begin establishing quality improvement
processes are several.
 For Management

• Provides an invaluable problem-solving tool.

• Dispels negative attitudes.

• Management becomes more aware of individual’s work

environment.
• Employees gain a sense of participation.
• Increases efficiency and productivity.

• Reduces turnover rate, tardiness, costs, errors, and

scrap & rework.

• Improves communications within and among all

departments.
Reasons (Cont)
• Develops management skills that were
never taught.
• Develops overall company awareness and
company unity.
• Rearranges priorities which once seemed
locked in place.
• Builds loyalty to the company.
• Reveals training requirements in all
departments.
• Lessens the number of defects
Reasons (Cont)
 For employees
• Provides opportunity for personal growth and development.
• Increases innovation.
• Employees use their knowledge and skills for well-informed
decision-making
• Encourages decision-making at the most appropriate level.
• Increases motivation and acceptance of new ideas
• Increases job satisfaction.
• Recognizes employees for their talents.
• Develops mutual respect among employees, management
and customers.
• Promotes teamwork
Steps in implementing TQM
 Obtain CEO Commitment

 Educate Upper-Level Management

 Create Steering Committee

 Outline the Vision Statement, Mission Statement &

Guiding Principles

 Prepare a Flow Diagram of Company Processes

 Focus on the Owner/Customer (External) & Surveys

Steps in implementing TQM
(Cont)
 Consider the Employee as an Internal
Owner/customer
 Provide a Quality Training Program
 Establish Quality Improvement Teams
 Implement Process Improvements
 Use the Tools of TQM
 Know the Benefits of TQM
Obtain CEO Commitment.
 Educate upper level management.
 To educate the upper level management we

have to conduct the following:

◦ Undergo quality training
◦ Commit to TQM and provide the necessary resources.
◦ Assist in the development.
◦ Serve as a model of expected behaviour.
◦ Actively lead the way.
◦ Drive fear out of the organization
◦ Provide suitable recognition.
◦ Drive decision making and problem resolution
Create a steering committee

 Upon completion of upper management’s

commitment and training, a steering
committee must be created to guide the
company through the process of
implementing TQM.
Steering committee roles are…….
 Review and evaluate customer surveys.

 Determine processes to be improved.

 Appoint task process improvement teams.

 Monitor process improvement.

 Oversee employee recognition for quality improvement.

 Communicate successes and progress

Outline the Vision Statement, Mission Statement, &
Guiding Principles

 Important principles to consider including in

the company’s vision statement, mission
statement, and guiding principles are as
follows:
◦ Owner/customer Satisfaction.
◦ Improved Safety.
◦ Elimination of errors and defects.
◦ Doing things right, the first time.
◦ Reputation as the best in the field.
◦ Continuous Improvement.
◦ Employee Empowerment
Flow Diagram of Company Processes:
Focus on the Owner/Customer
(External) & Surveys
 Focusing on a customer’s concerns Several areas
to survey, and to take care to provide or honour,
and they are listed here:
◦ Safe operating procedures
◦ Accident experience
◦ Attitude
◦ Professional competence
◦ Technical competence of the work force
◦ Overall responsiveness to owner/customer requests
◦ Planning
◦ Condition of equipment
◦ Timeliness
Successful TQM companies have asked their
owner/customers the following
questions:
 How well do we deliver what we promise?
 How often do we do things right the first time?
 How often do we do things right on time?
 How quickly do we respond to your request?
 How accessible are we when you need to contact us?
 How helpful and polite are we?
 How well do we speak your language?
 How well do we listen to you?
 How hard do you think we work at keeping you a satisfied
 owner/customer?
 How much confidence do you have in our products or

services ? Etc
Consider the Employee as an Internal
Owner/Customer
 In order to conduct an analysis of the internal
processes following steps should be applied:
 List several of your internal owners/customers within
your company
 Choose one of these owners/customers to focus on for
the application of this technique
 Determine the Output s (products, services, information)
that must be provided to this internal owner/customer
 Determine the work Processes your company uses to
produce these Outputs
 Learn how your customer’s expectations are met and
how satisfaction is measures
Provide a Quality Training Program
 The successful TQM company provides
training to employees in the order illustrated
in the list below:
 Upper Management
 Remaining Management
 In-House Trainers & Facilitators
 Front-Line Supervisors
 Non-Supervisory Employees
 Team Training
 Training of Subcontractors & Suppliers
Establish Quality Improvement Teams
 A quality improvement teams focuses on
following areas for improvement:
 Increased Employee Value
 Informed Employees
 Technical Training
 Quality Training
 Employee Suggestions
 Employee Participation
 Higher Quality of Artistry
 Personal Development
Quality Improvement Team Tasks
 Identify the customers of the process
 Determine customer expectations
 Flowchart the process
 Identify all of the inputs and interfaces
 Identify the output(s)
 Systematically review the procedures

currently being used in the process

 Collect and analyze available quantitative

data
Quality Improvement Team
Tasks(Cont)
 Determine the need for additional data
 Identify the problem(s)
 Determine the root cause of the problem
 Determine potential solutions
 Select a trial solution
 Present recommendations to the steering
committee
 Implement the solution on a pilot-project basis
 Analyze the data to discern if there has been
improvement
Implement Process Improvements
 The structural approach to process improvement is as
follows:
◦ Problem is brought to the attention of the steering committee
◦ Steering committee forms a team to examine the process and
make necessary recommendations for improvement
◦ Team meets, reviews its mission, and determines how often it
will meet
◦ Training is initiated for team members
◦ Team meets weekly for an hour or two to analyze the problem
and develop a solution
◦ Solution is initiated on a pilot basis
◦ Results of pilot study are examined
◦ Solution is implemented company-wide
Use of Tools:
 Seven classical tools of quality and process
improvement are the following :

◦ Flow chart : Portrays all the steps in a process. Helps

understand the process.

◦ Cause and Effect Diagram : Portrays possible causes of

a process problem. Helps determine root cause

◦ Control Chart : Shows if a process has too much

variation
Seven Classical Tools (Contd…)
◦ Histogram : Portrays the frequency of occurrence.
Check Sheet : Tabulates frequency of occurrence.

◦ Pareto Diagram : Visually portrays problems and causes in

order of severity or frequency. Helps determine which
problem or cause to tackle first.

◦ Scatter Diagram : Helps determine if two variables are related.

◦ Run Chart : Shows variation and trends with time. Provides

baseline data, and helps to determine if a process is
improving or nots
 Benefits of Quality
 Higher customer satisfaction
 Reliable products/services
 Better efficiency of operations
 More productivity & profit
 Better morale of work force
 Less wastage costs
 Less Inspection costs
 Improved process
 More market share
 Spread of happiness & prosperity
 Better quality of life for all.
Cost of Quality
 The reason for implementing the information
related to TQM into companies is :

• To make more money and/or to stay in business. If

one doesn’t implement TQM/CI, it will cost one’s
firm money.

 Cost of Quality=Cost of Non-conformance

+Cost Prevention
Cost of non conformance

 The Cost of non-conformance

 Omissions

 Errors

 Poor Product Quality

 Being Late
Cost of non conformance leads to
 Rework

 Recalls

 Expediting

 Removal of punch list items

 Time extensions

 Litigation costs and damages

 Penalties and liquidated damages

 Increased insurance costs

An interesting Note …
“What’s it going to cost us to do TQM?” you
ask. Well, what is it costing you now NOT to
do it? . . . What is your cost of quality?
 IF you don’t have the “real” facts, the truth is

you really don’t know, . . . but you probably

sense what your cost of quality is costing
you. You can feel it, and it’s not a
comfortable feeling
Types of Quality Cost
The four types of quality costs are the
following:
 Prevention Cost
• Cost associated with time spend in planning the
quality system

• Prevention cost consists of the following :

o Process control costs
o Information systems costs
o Training Costs
o General Management cost
Types of Quality Costs (Cont)
 Appraisal Costs

• Cost incurred on measurement & analysis of data in order to

detect & correct problems.
• Appraisal costs consist of
oCost of maintaining, testing & inspection
oProcess control costs

 Internal Failure Cost

• Incurred due to non-conformance.

• Internal failure Cost Include
oScrap and rework costs
oCost of corrective action
oDowngrading costs
Types of Quality costs (Cont)
 External Failure Cost

• Occur when poor products reach customer

• External Failure Costs include the following :
o Costs of customer complaints and returns
o Product recall costs
o Warranty claims costs
o Product liability costs
Economics of Quality of
Conformance
Total Cost Prevention and appraisal cos

Optimum total cost

Internal & External Failure Cost

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Obstacles
 Top management commitment

 Changing Organization Culture

 Improper planning

 Continuous Training & education

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Obstacles (Cont)
 Organization Structure & Departments

 Data’s & Facts For Effective Decisions

 Internal & External Customers-

Dissatisfaction

 Empowerment & Teamwork

 Continuous Improvement
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AN EXAMPLE

“It is the aim of ABB Kent Meters Ltd to supply

products and services which
completely satisfy our customers.”
Kent Meters Mission Statement
 Conclusion

In a nutshell,
TQM will increase productivity, will
eliminate wastes, reduce non-conformances,
optimize costs, increase the profitability , will
enrich the employees life and will help the
industry to meet it’s societal obligation.

“Total Quality Management is a marathon and not a sprint”

“Quality is a journey, not a
Destination “

Thank You !!!