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Lesson 2

Total Quality Management (TQM) is a management philosophy focused on meeting customer needs and organizational objectives through integrated efforts to continuously improve processes and employees at all levels. TQM involves everyone in the company and all activities to deliver high quality products and services at reasonable prices for long-term success. It is considered both a journey of continuous improvement and a management approach that incorporates customer satisfaction, employee participation, and compliance with regulations.
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
20 views

Lesson 2

Total Quality Management (TQM) is a management philosophy focused on meeting customer needs and organizational objectives through integrated efforts to continuously improve processes and employees at all levels. TQM involves everyone in the company and all activities to deliver high quality products and services at reasonable prices for long-term success. It is considered both a journey of continuous improvement and a management approach that incorporates customer satisfaction, employee participation, and compliance with regulations.
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Total Quality

Management
The
Philosophy
of
Total Quality
Management

“T QM I S A J OURNEY NOT A
D ES T I NAT ION.”
V. D A N I E L H U N T
Objective
TOTAL
because it encompasses everything the
company does—all its processes and
employees at every level in the company at
all times
TQM
is a management philosophy that seeks to

TQM integrate all organizational functions


(marketing, finance, design, engineering,
production and customer service, etc.) to
focus on meeting customer needs and
organizational objectives
is a necessity. It is a journey that will never

TQM
end. It is a totally integrated effort directed
at gaining competitive advantage by
continuously improving every facet of an
organization’s activities.
is a management philosophy that enables organizations to gain
customer loyalty.

Organizations that practice the principles of TQM deliver high


levels of service and high-quality products at reasonable

TQM prices.

is considered a very important factor for the long-term


success of an organization.
One theory is that TQM was created as a result of a
misinterpretation of the Japanese words for “control” and
“management” since no difference exists between these words

TQM in Japanese.
Definitions of

TQM is an integrated
Total Quality involves everyone and all the activities
performed in the company.

effort designed to

Quality
improve quality
Conformance to the requirements
performance at
(meeting customer requirements).
every level of the
organization

Management Quality can and must be


managed.
Therefore TQM is
▪ is a process for managing
quality. It is viewed as a
continuous way of life and a
philosophy of perpetual
improvement in everything we
do.
Therefore TQM is
▪ is defined as a management
approach that tries to achieve and
sustain long-term organizational
success by encouraging employee
feedback and participation,
satisfying customer needs and
expectations, respecting societal
values and beliefs and obeying
governmental statutes and
regulations.
FIVE PILLARS OF TQM
Therefore TQM is
▪ is a management
philosophy, a paradigm and
an approach to continuous
improvement in business
through a new
management model
The Total Quality System
TQM is a comprehensive management system
which:
Focuses on meeting the needs of the owners’ or
customers’ by providing quality services at a cost
that offers value to the owners/customers
Is driven by the quest for continuous
improvement in all operations
Recognizes that everyone in the organization has internal or external owners or customers
Views an organization as an internal system with a common aim rather than as individual
departments acting to maximize their own performances
Focuses on the way tasks are accomplished rather than simply on what tasks are accomplished

Emphasizes on teamwork.
Evolution of Total Quality Management(Four Stages of TQM)

QUALITY MANAGEMENT AREAS OF FOCUS SCOPE


STAGE
1.Inspection Detection •Error detection
• Rectif ication
• Sorting, grading, reblending
• Decision about salvage and
acceptance
Evolution of Total Quality Management(Four Stages of TQM)

Inspection-based:

The quality movement traces its roots back to


medieval Europe, when craftsmen began
organizing themselves into unions called guilds in
the late thirteenth century

19th Century

The factory system, with its emphasis on product


inspection, began in Great Britain in the mid-
1750s and grew into the Industrial Revolution in
the early 1800s. In the early twentieth century,
manufacturers began to include quality processes
in quality practices.
Evolution of Total Quality Management(Four Stages of TQM)
Inspection-based:

19th Century
During the early days of manufacturing
-an operative’s work was inspected and a decision
whether to accept or reject it was made.

-As businesses expanded, so too did this role, and


full-time inspection jobs were created
This brought about the following other problems:
▪ Technical problems requiring specialized skills, often not
possessed by production workers, occurred.
▪ Some of the inspectors lacked training.
▪ Inspectors were ordered to accept defective goods to
increase output.
▪ Skilled workers were promoted to other roles, leaving less
skilled workers to perform operational jobs, such as
manufacturing.
Evolution of Total Quality Management(Four Stages of TQM)
Inspection-based:

19th Century
During the early days of manufacturing
-an operative’s work was inspected and a decision
whether to accept or reject it was made.

-As businesses expanded, so too did this role, and


full-time inspection jobs were created
This brought about the following other problems:
▪ Technical problems requiring specialized skills, often not
possessed by production workers, occurred.
▪ Some of the inspectors lacked training.
▪ Inspectors were ordered to accept defective goods to
increase output.
▪ Skilled workers were promoted to other roles, leaving less
skilled workers to perform operational jobs, such as
manufacturing.
Evolution of Total Quality Management(Four Stages of TQM)

Inspection-based:
PROBLEMS LED TO BIRTH TO INSPECTION DEPARTMENT

Chief Inspector
product acceptance, and
a need to address defect prevention emerged.

Work Manager

New Services:
Standard
Training
Recording of data
Accuracy of measuring equipment
Evolution of Total Quality Management(Four Stages of TQM)

QUALITY MANAGEMENT AREAS OF FOCUS SCOPE


STAGE
2. Quality Control Maintaining status quo • Quality standards
• Use of statistical methods
• Process performance
• Product testing
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:

Quality Control Department -evolved with an intention to


Undertake actions and
measures to control quality
in a desired manner.

Quality Control Manager -responsible for inspection and


quality control engineering
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:

1920 statistical theory began to be applied effectively to quality control


1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:

1920 statistical theory began to be applied effectively to quality control


1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:

1920 statistical theory began to be applied effectively to quality control


1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:

1920 statistical theory began to be applied effectively to quality control


1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:

1920 statistical theory began to be applied effectively to quality control


1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:

1920 statistical theory began to be applied effectively to quality control


1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation

is not an independent act; rather, it works in accordance with the


guidelines set by quality assurance. The whole idea is to see whether
planned quality is actually being achieved. Thus, quality assurance is
more comprehensive and quality control is a part of it.
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:
1920 statistical theory began to be applied effectively to quality control
1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Late 1960 Japan’s imports into the US and Europe increased signif icantly due to
Early 1970 its cheaper though better quality products compared to its Western
counterparts.
1979 The British Standard (BS) 5750 for quality systems had been published
1982 Britain’s world trade share was declining and this was having a
dramatic effect on the standard of living in the country
1983 National Quality Campaign was launched using the BS 5750 as its main
theme
The aim was to bring to the attention of industry the importance of
quality for competitiveness and survival in the world market
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:
1920 statistical theory began to be applied effectively to quality control
1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Late 1960 Japan’s imports into the US and Europe increased signif icantly due to
Early 1970 its cheaper though better quality products compared to its Western
counterparts.
1979 The British Standard (BS) 5750 for quality systems had been published
1982 Britain’s world trade share was declining and this was having a
dramatic effect on the standard of living in the country
1983 National Quality Campaign was launched using the BS 5750 as its main
theme
The aim was to bring to the attention of industry the importance of
quality for competitiveness and survival in the world market
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:
1920 statistical theory began to be applied effectively to quality control
1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Late 1960 Japan’s imports into the US and Europe increased signif icantly due to
Early 1970 its cheaper though better quality products compared to its Western
counterparts.
1979 The British Standard (BS) 5750 for quality systems had been published
1982 Britain’s world trade share was declining and this was having a
dramatic effect on the standard of living in the country
1983 National Quality Campaign was launched using the BS 5750 as its main
theme
The aim was to bring to the attention of industry the importance of
quality for competitiveness and survival in the world market
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:
1920 statistical theory began to be applied effectively to quality control
1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Late 1960 Japan’s imports into the US and Europe increased signif icantly due to
Early 1970 its cheaper though better quality products compared to its Western
counterparts.
1979 The British Standard (BS) 5750 for quality systems had been published
1982 Britain’s world trade share was declining and this was having a
dramatic effect on the standard of living in the country
1983 National Quality Campaign was launched using the BS 5750 as its main
theme
The aim was to bring to the attention of industry the importance of
quality for competitiveness and survival in the world market
Evolution of Total Quality Management(Four Stages of TQM)
System of Quality Control:
1920 statistical theory began to be applied effectively to quality control
1924 Shewart made the f irst sketch of a modern control chart
Later developed by Deming.
The early works of Shewart, Deming, Dodge and Romig constitutes
much of what comprises the theory of statistical process control (SPC)
1940 there was little use of these techniques in manufacturing companies
1950’s quality management practices developed rapidly in Japanese plants and
become a major theme in Japanese management philosophy.
1960 quality control and management had become a national preoccupation
Late 1960 Japan’s imports into the US and Europe increased signif icantly due to
Early 1970 its cheaper though better quality products compared to its Western
counterparts.
1979 The British Standard (BS) 5750 for quality systems had been published
1982 Britain’s world trade share was declining and this was having a
dramatic effect on the standard of living in the country
1983 National Quality Campaign was launched using the BS 5750 as its main
theme
The aim was to bring to the attention of industry the importance of
quality for competitiveness and survival in the world market
Total Quality Control

❑Emphasis is placed on the process and continuous


process improvement.
❑Total participation is required. Employees are
encouraged to generate ideas and implement them.
❑ It is flexible - processes and methods can be easily
changed.
❑The target is not absolute - good for a changing market.

Downside: Sometimes the end result is very


different from the original target - employees
tend to lose sight of the goal because they are
too focused on the process
Evolution of Total Quality Management(Four Stages of TQM)

QUALITY MANAGEMENT AREAS OF FOCUS SCOPE


STAGE
2. Quality Control Maintaining status quo • Quality standards
• Use of statistical methods
• Process performance
• Product testing
3. Quality Assurance Prevention • Quality system (ISO 9000)
• Quality costing
• Quality planning and
policies
• Problem solving
• Quality design
Evolution of Total Quality Management(Four Stages of TQM)

Quality Assurance:

THIINTERNATIONAL ORGANIZATION FOR STANDARDIZATION (ISO)9000


internationally recognized standard for quality management
systems. It comprises a number of standards that specify the
requirements for the documentation, implementation and
maintenance of a quality system

1987 standards were published for the f irst time


The aim was to effectively document the requirements of
the quality management system, which had to be
implemented to attain customer satisfaction
1994 standards were revised for the f irst time
2000 Based on actual experiences of several thousand
companies, these standards were revised again leading to
an improved version being published in 2000. These
standards were developed to assure quality.
Evolution of Total Quality Management(Four Stages of TQM)
QUALITY MANAGEMENT AREAS OF FOCUS SCOPE
STAGE
2. Quality Control Maintaining status quo • Quality standards
• Use of statistical methods
• Process performance
• Product testing
3. Quality Assurance Prevention • Quality system (ISO 9000)
• Quality costing
• Quality planning and
policies
• Problem solving
• Quality design
4. Total Quality Management Quality as Strategy • Quality strategy
• Customers, employees and
suppliers involvement
• Involve all operations
• Empowerment and
teamwork
Evolution of Total Quality Management(Four Stages of TQM)

Total Quality Management (TQM)

The birth of total quality in the United States


came as a direct response to the quality revolution
in Japan following World War II

The Japanese welcomed the inputs of Americans,


Joseph M. Juran and W. Edwards Deming, and
rather than concentrate on inspection, focused on
improving all organizational processes through the
people who used them
Evolution of Total Quality Management(Four Stages of TQM)
1969 the first international conference on quality control sponsored by Japan,
America and Europe was held in Tokyo
Total Quality Management Feigenbaum presented the paper, which used the term “total
(TQM) quality” for the f irst time, and referred to wider issues such
as planning, organization and management responsibility
Ishikawa presented a paper explaining how “total quality
control” in Japan was different in the sense that it implied
“company-wide quality control,” and he described how all
the employees, from the top management to the workers.
1970 the US industrial sectors of automobiles and electronics had
been broadsided by Japan’s high-quality competition
The US response, emphasizing not only statistics but
approaches that embraced the entire organization, became
known as total quality management (TQM)
20th TQM has developed in many countries to form holistic
centu frameworks aimed at helping organizations achieve
ry excellent performance, particularly in customer
relationships and business expansion.
Business Excellence Model. Europeam Foundation for
Quality Management EFQM, Malcolm Baldrige National
Quality Award
Evolution of Total Quality Management(Four Stages of TQM)
1969 the first international conference on quality control sponsored by Japan,
America and Europe was held in Tokyo
Total Quality Management Feigenbaum presented the paper, which used the term “total
(TQM) quality” for the f irst time, and referred to wider issues such
as planning, organization and management responsibility
Ishikawa presented a paper explaining how “total quality
control” in Japan was different in the sense that it implied
“company-wide quality control,” and he described how all
the employees, from the top management to the workers.
1970 the US industrial sectors of automobiles and electronics had
been broadsided by Japan’s high-quality competition
The US response, emphasizing not only statistics but
approaches that embraced the entire organization, became
known as total quality management (TQM)
20th TQM has developed in many countries to form holistic
centu frameworks aimed at helping organizations achieve
ry excellent performance, particularly in customer
relationships and business expansion.
Business Excellence Model. Europeam Foundation for
Quality Management EFQM, Malcolm Baldrige National
Quality Award
Evolution of Total Quality Management(Four Stages of TQM)
1969 the first international conference on quality control sponsored by Japan,
America and Europe was held in Tokyo
Total Quality Management Feigenbaum presented the paper, which used the term “total
(TQM) quality” for the f irst time, and referred to wider issues such
as planning, organization and management responsibility
Ishikawa presented a paper explaining how “total quality
control” in Japan was different in the sense that it implied
“company-wide quality control,” and he described how all
the employees, from the top management to the workers.
1970 the US industrial sectors of automobiles and electronics had
been broadsided by Japan’s high-quality competition
The US response, emphasizing not only statistics but
approaches that embraced the entire organization, became
known as total quality management (TQM)
20th TQM has developed in many countries to form holistic
centu frameworks aimed at helping organizations achieve
ry excellent performance, particularly in customer
relationships and business expansion.
Business Excellence Model. Europeam Foundation for
Quality Management EFQM, Malcolm Baldrige National
Quality Award
Evolution of Total Quality Management(Four Stages of TQM)
1969 the first international conference on quality control sponsored by Japan,
America and Europe was held in Tokyo
Total Quality Management Feigenbaum presented the paper, which used the term “total
(TQM) quality” for the f irst time, and referred to wider issues such
as planning, organization and management responsibility
Ishikawa presented a paper explaining how “total quality
control” in Japan was different in the sense that it implied
“company-wide quality control,” and he described how all
the employees, from the top management to the workers.
1970 the US industrial sectors of automobiles and electronics had
been broadsided by Japan’s high-quality competition
The US response, emphasizing not only statistics but
approaches that embraced the entire organization, became
known as total quality management (TQM)
20th TQM has developed in many countries to form holistic
centu frameworks aimed at helping organizations achieve
ry excellent performance, particularly in customer
relationships and business expansion.
Business Excellence Model. Europeam Foundation for
Quality Management EFQM, Malcolm Baldrige National
Quality Award
Evolution of Total Quality Management(Four Stages of TQM)
1969 the first international conference on quality control sponsored by Japan,
America and Europe was held in Tokyo
Total Quality Management Feigenbaum presented the paper, which used the term “total
(TQM) quality” for the f irst time, and referred to wider issues such
as planning, organization and management responsibility
Ishikawa presented a paper explaining how “total quality
control” in Japan was different in the sense that it implied
“company-wide quality control,” and he described how all
the employees, from the top management to the workers.
1970 the US industrial sectors of automobiles and electronics had
been broadsided by Japan’s high-quality competition
The US response, emphasizing not only statistics but
approaches that embraced the entire organization, became
known as total quality management (TQM)
20th TQM has developed in many countries to form holistic
centu frameworks aimed at helping organizations achieve
ry excellent performance, particularly in customer
relationships and business expansion.
Business Excellence Model. Europeam Foundation for
Quality Management EFQM, Malcolm Baldrige National
Quality Award
Evolution of Total Quality Management(Four Stages of TQM)
1969 the first international conference on quality control sponsored by Japan,
America and Europe was held in Tokyo
Total Quality Management Feigenbaum presented the paper, which used the term “total
(TQM) quality” for the f irst time, and referred to wider issues such
as planning, organization and management responsibility
Ishikawa presented a paper explaining how “total quality
control” in Japan was different in the sense that it implied
“company-wide quality control,” and he described how all
the employees, from the top management to the workers.
1970 the US industrial sectors of automobiles and electronics had
been broadsided by Japan’s high-quality competition
The US response, emphasizing not only statistics but
approaches that embraced the entire organization, became
known as total quality management (TQM)
20th TQM has developed in many countries to form holistic
century frameworks aimed at helping organizations achieve
excellent performance, particularly in customer
relationships and business expansion.
20th Business Excellence Model. Europeam Foundation for
century Quality Management EFQM, Malcolm Baldrige National
Quality Award
Evolution of Total Quality Management(Four Stages of TQM)
1969 the first international conference on quality control sponsored by Japan,
America and Europe was held in Tokyo
Total Quality Management Feigenbaum presented the paper, which used the term “total
(TQM) quality” for the f irst time, and referred to wider issues such as
planning, organization and management responsibility
Ishikawa presented a paper explaining how “total quality
control” in Japan was different in the sense that it implied
“company-wide quality control,” and he described how all the
employees, from the top management to the workers.
1970 the US industrial sectors of automobiles and electronics had
been broadsided by Japan’s high-quality competition
The US response, emphasizing not only statistics but
approaches that embraced the entire organization, became
known as total quality management (TQM)
20th TQM has developed in many countries to form holistic
century frameworks aimed at helping organizations achieve excellent
performance, particularly in customer relationships and
business expansion.
Business Excellence Model. Europeam Foundation for Quality
Management EFQM, Malcolm Baldrige National Quality Award
Total Quality Management (TQM)

❑Emphasis is placed on the target and achieving the target as


soon as possible.
❑The system is simple and straight-forward.
❑ Information delivery is accurate.
❑The process is considered after the goal has been
established..

Downside: Employees stop actively thinking


of and implementing process improvement -
they don’t want to risk making a mistake or
creating delays.
Evolution of Total Quality Management(Four Stages of TQM)
QUALITY MANAGEMENT AREAS OF FOCUS SCOPE
STAGE
1.Inspection Detection •Error detection
• Rectif ication
• Sorting, grading, reblending
• Decision about salvage and
acceptance
2. Quality Control Maintaining status quo • Quality standards
• Use of statistical methods
• Process performance
• Product testing
3. Quality Assurance Prevention • Quality system (ISO 9000)
• Quality costing
• Quality planning and
policies
• Problem solving
• Quality design
4. Total Quality Management Quality as Strategy • Quality strategy
• Customers, employees and
suppliers involvement
• Involve all operations
• Empowerment and
TQM Implementation at Tata Steel

Tata Steel, established in 1907, is Asia’s first integrated private sector


steel company and among the top global steel companies with an annual
crude steel capacity of nearly 30 million tonnes per annum (2015). It is the
world’s second most geographically diversified steel producer, with
operations in 26 countries and a commercial presence in over 50 countries.
The Tata Steel group, is a Fortune 500 company, with a turnover of $22.32
billion in 2015, and has over 80,000 employees across five continents. Tata
Steel has been practicing TQM since the late 1980s. Back then, the
company initiated several quality activities such as quality circles, ISO
certification, and quality improvement. In 2005, Tata Steel conducted a
TQM diagnosis along with the Union of Japanese Scientists and Engineers
that gave the company the status of its TQM implementation and helped it
uncover a lot of areas that required improvement in both processes and
culture.
TQM Implementation at Tata Steel
The TQM diagnosis directed the company to specifically look at the
following:
1. Strategic and policy management: Adopting the TQM philosophy as a
part of the competitive strategy was formally launched in the company
in late 1980s. It started by relooking at the balanced score card and
looking at areas that needed to change the business with massive effort
on education and training on TQM.
2. Daily management: The company established a standardized
approach for integrating daily management activities in various
functions such as operations, maintenance, customer services, and so
on.
3. People management: Tata Steel created guidelines and reference
manuals to have uniformity and alignment across the organization, as it
dealt with 35,000 employees in standardized approaches. People
engagements through improvement activities, such as quality circles,
suggestion management, knowledge manthan, and so on, were
executed.
SEVEN PHASES IN THE DEVELOPMENT OF
TQM
Quality

effect -The outcome of some act or


course of action

quality assurance
TOTAL QUALITY CONTROL
f irst popularized by Armand V. Feigenbaum, a
quality guru.

It clearly expands the domain of activities in the


context of quality. It positively involves other
functions and sections of businesses
the scope increases from QC to TQC, where
T stands for total involvement and practice of
quality principles in other sections and areas,
besides the production and quality departments
SEVEN PHASES IN THE DEVELOPMENT OF
TQM
The Japanese

understood the essence of quality and they not


only applied it as a companywide quality control
(CWQC) movement, but also extended it further.

The purpose and the intention of the drive were


very clear, to encompass the organization from top
to bottom.
One can say that they adopted an original concept,
nurtured it and expanded its domain even further.

Right from the beginning, many authors on TQM


have been treating it as an umbrella philosophy.
Hence, TQM is a better choice than CWQC or TQC.
SEVEN PHASES IN THE DEVELOPMENT OF
TQM
21th Century

the quality movement has only matured.


New quality systems have evolved upon the
foundations laid by Deming, Juran and the early
Japanese practitioners of quality. T

Some examples of this maturation are as follows:

2015 the ISO 9000 series of quality management standards was


revised to increase emphasis on customer satisfaction.
Beginning the Malcolm Baldrige National Quality Award added a
1995 business results criterion to its measures of judging an
applicant’s success.
1988 Six Sigma was a methodology developed by Motorola to
improve its business processes by minimizing defects. This
evolved into an organizational approach that achieved
majorbreakthroughs and significant bottom-line results.
SEVEN PHASES IN THE DEVELOPMENT OF TQM Some examples of this maturation are as follows:
20150 the ISO 9000 series of quality management standards was revised to increase emphasis on
customer satisfaction.
Beginning the Malcolm Baldrige National Quality Award added a business results criterion
1995 to its measures of judging an applicant’s success.
1988 Six Sigma was a methodology developed by Motorola to improve its business
processes by minimizing defects. This evolved into an organizational approach
that achieved majorbreakthroughs and signif icant bottom-line results. When
Motorola received a Baldrige Award in 1988, it shared its quality practices with
others.

Yoji Akao developed deployment of quality functions as a process for focusing


on customer wants or needs in the design or redesign of a product or service.
Sector-specific versions of the ISO 9000 series of quality management standards
were developed for such industries as automotive (QS 9000), aerospace (AS
9000) and telecommunications (TL 9000 and ISO/TS 16949) and for
environmental management (ISO 14000).
• Quality has moved beyond the manufacturing sector into areas such as
service, healthcare, education and government.
The Malcolm Baldrige National Quality Award has added education and
healthcare to its original categories of manufacturing, small business and
service. Many advocates are pressing for the adoption of another category, that
Phases in the Development of TQM
Principles of Total Quality Management

1. Customer-focused organization

• Identifying the customer’s needs


• Design a product, which responds to
the customer’s needs
• Produce and deliver the product as
per the design
• Enhance after-sales service and
handle complaints quickly
• Measure customer satisfaction
• Improve quality to delight the
customer
Principles of Total Quality Management 2. Leadership
An organization’s senior leaders need to set
directions and create clear and visible quality values,
high expectations and a customer-oriented approach

These values, directions and expectations need to


address all stakeholders
The leaders need to ensure the creation of
strategies, systems and methods for achieving
excellence
Strategies and values should help guide all activities
and decisions of the organization
The senior leaders must commit to the development
of the entire workforce and should encourage
participation, learning, innovation and creativity by
all employees.
Through their personal roles in planning, communication,
review or organizational performance and employee
recognition, the senior leaders need to serve as role
models reinforcing values and expectations, and building
leadership and initiative throughout the organization
Principles of Total Quality Management
People at all
3. Involvement of people levels are the
essence of an
one approach to improving quality and productivity.
organization and
their full
Involving people at all levels enables full utilization of
involvement
their abilities for the organization’s benefit
enables their
abilities to be
This can be done by providing a good
used forcorporate
the work
culture, providing an interesting organization’s
work system and
benefit.
work environment and building the capabilities of
people to perform the assigned tasks in the
organization

The process approach is a 4. Process approach


management strategy. When
managers use a process A desired result is achieved more efficiently when
approach, it means that they related resources and activities are managed as a
manage and control process.
the processes that make up
their organizations.
Principles of Total Quality Management
A system is a set
of interrelated
5. Systems approach to management but separate
parts working
Identifying, understanding and managing
towards aa system of
interrelated processes for a given objective
common
purpose.
contributes to the efficacy and efficiency of the
System approach to management organization.
views the organization as a unified,
purposeful system composed of
interrelated parts. 6. Continuous improvement

A permanent objective of the organization is that it


should continuously improve performance by
addressing the needs of all interested parties.
Principles of Total Quality Management

7. Factual approach to decision making

Effective decisions are based on the logical or


intuitive analysis of data and information

8. Mutually benef icial supplier relationships

The ability of the organization and its suppliers to


create value is enhanced by mutually benef icial
relationships.
Key Principles of Total Quality Management
Problem Solving and Process Improvement

60
PLAN –DO-STUDY-ACT CYCLE

PLAN
PLAN.
Begin by studying the current process.
Document that process
Then collect data on the process or problem
Next, Analyze the data and develop a plan for
improvement
Specify measures for evaluating the plan.
PLAN –DO-STUDY-ACT CYCLE

PLAN DO
DO.
Implement the plan, in a small scale, if possible
Document any changes made during this phase
Collect date systematically for evaluation
PLAN –DO-STUDY-ACT CYCLE

PLAN
PLAN DO
STUDY.
Evaluate the data collection during the do phase

STUDY Check how closely the results match the original goals of
STUDY the plan phase
Collect date systematically for evaluation
PLAN –DO-STUDY-ACT CYCLE

PLAN
PLAN DO
ACT.
If the results are successful, standardize the new method
and communicate the mew method to all people
STUDY ACT
associated with the process
Implement training for the new method
If the results are unsuccessful, revise the plan and repeat
the process or cease this project.
QUALITY TOOLS

FLOWCHART

• A diagram of the
steps in a process.

65
QUALITY TOOLS

CHECKSHEET
• A tool for organizing and
collecting data
• A tally of problems or
other events by category.

66
QUALITY TOOLS

HISTOGRAM
• A chart that shows an
empirical frequency
distribution

67
QUALITY TOOLS

PARETO CHART
• A diagram that arranges
categories from highest
to lowerst frequency of
occurance.

68
QUALITY TOOLS

SCATTER DIAGRAM
• A graph that shows the
degree and direction of
relationship between two
variables.

69
QUALITY TOOLS

CONTROL CHART
• A statistical chart of time-
ordered values of a
sample statistics.

70
QUALITY TOOLS
CAUSE AND EFFECT DIAGRAM

• A diagram used to
organize a search for the
cause(s) of a problem,
also knows as a fishbone
diagram

71
1. Ethics:
Key Elements of Total Quality Management
It is a combination of written and unwritten codes of
principles and values that govern decisions and
actions within a company

Business ethics boils down to knowing the difference


between right and wrong and choosing to do what is
right. It describes the actions of individuals within an
organization, as well as those of the organization as a
whole.

2. Integrity
It is the consistency of actions, values, methods,
measures, principles, expectations and outcomes

As a holistic concept, it judges the quality of a


system in terms of its ability to achieve its own goals

Integrity may be seen as the quality


I. Foundation: It includes ethics, integrity and of having a sense of honesty and
trust. truthfulness in regard to the
It fosters openness, fairness and sincerity and encourages motivation for one’s actions
the involvement of everyone in the organization
Key Elements of Total Quality Management

3. Trust
Builds a cooperative environment essential for TQM
Trust is a by-product of integrity and ethical conduct
It is a relationship based on reliance.

Trust fosters everybody’s participation and allows


empowerment that encourages pride of ownership
and commitment.
Trust fosters individual risk-taking for continuous
improvement and is essential to ensure customer
satisfaction.

I. Foundation: It includes ethics, integrity and


trust.
It fosters openness, fairness and sincerity and encourages
the involvement of everyone in the organization
Key Elements of Total Quality Management

Training is very important for employees to be highly


productive.

Teamwork offers continuous improvement in processes and


operations. The teams may be quality improvement
teams or excellence teams, problem solving teams or
natural work teams.
requires the manager to provide an inspiring vision,
make strategic decisions and instill values that guide
subordinates
II. Building Bricks: It includes leadership,
teamwork and training.
Leadership, teamwork and training are the building bricks
of TQM
Key Elements of Total Quality Management

TQM organizations mainly adopt three types of teams:

a. Problem-solving teams: These are temporary and formed to solve certain problems,
identify and overcome causes of those problems. They generally last from one week to
three months.

b. Quality improvement teams: These are temporary teams with the purpose of dealing with
specific problems that often recur. These teams are set up for a period of three to twelve
months

c. Natural work teams: These teams consist of small groups of skilled workers who share
tasks and responsibilities. These teams use concepts such as employee involvement teams,
self-managing teams and quality circles
Key Elements of Total Quality Management This type of communication is important because
it breaks down barriers between departments. It
also allows a more professional dealing with
customers and suppliers

The lower-level employees are


able to offer suggestions on
This is a dominant form of
the effects of TQM to the
communication in an
upper management using
organization. The
upward communication.
supervisors are able to
Supervisors must listen make the employees
effectively and incorporate the clearly understand TQM.
insights and constructive
criticism offered by the
employees in correcting the
situations that arise through the
use of TQM

III. Binding Mortar: It includes communication


Communication: It acts as a link between all the elements of
an organization. For communication to be effective, the
receiver must interpret the message in the way the sender
intended.
Key Elements of Total Quality Management

should be provided for both suggestions and


achievements, for both teams and individuals.

The most important responsibility on a supervisor is


that of according recognition to the employees under
him

IV. Roof: It includes recognition


Recognition is the last and final element of TQM. There can be a huge
change in self-esteem, productivity and quality when the contributors
are recognized. This recognition brings greater internal customer
satisfaction, which in turn leads to external customer satisfaction in
the organization.
Core Concept of Total Quality Management

1. Customer Satisfaction

TQM is focused on the requirements of the customer.

important to listen to them and do what is agreed upon

internal customers external customers

CONDUCT SURVEY:
ENERGY MATTER
R
E
F
L
E
C satisfaction, morale and motivation levels of employees and
T develops the concept of “employeeship” with core emphasis
on the principles of customer satisfaction
Core Concept of Total Quality Management

2. Internal Customer Satisfaction

it is necessary to achieve a successful internal working relationship in order to


satisfy the needs of the external customer

If the internal customers’ requirements are agreed and met, a chain of


quality is built that reaches out to the external customer.

Whether an organization supplies products or services, the people it


supplies internally are as real as its external customers.

Therefore, they also require speed, efficiency and accuracy. Hence, the idea
of the internal customer can be used as a focus for improvement
Core Concept of Total Quality Management

3. All work process

All processes contain inherent variability and one approach to


quality improvement is to progressively REDUCE VARIATION

First, this can be done by removing variation


due to special causes.

Secondly by driving down the common


cause of variation, thus bringing the process
under control and improving the capability.
Performance measurement is a fundamental building
Core Concept of Total Quality Management block of TQM and a total quality organization.

4. Measurement
In order to improve, one must first measure one’s present
performance.

This will help one focus both on satisfying internal customers


and meeting the requirements of external customers

SEVEN GENERIC WAYS (IN ADDITION TO THE COST OF QUALITY) IN


WHICH THE QUALITY OF OUTPUTS CAN BE MEASURED Two basic stems
in measurement
system:
• Defects (work not up to specification) 1. Develop key
indicators
• Rework (work requiring correction) satisfaction
• Scrap (work thrown away) 2. Collect data
regarding
• Lost items (work done again) perception
of quality
• Backlogs (work behind schedule) received by
cusrtomers
• Late deliveries (work after agreed time)
Core Concept of Total Quality Management

4. Measurement

In a successful total quality organization,


performance will be measured by the
improvements seen by the customer as
well as by the results delivered to other
stakeholders, such as the shareholders.
Core Concept of Total Quality Management

5. Synergy in Teamwork

The idea of synergy in teamwork, where the whole is greater


than the sum of its parts, is a key concept in TQM.
it is used to promote collaboration, consensus, “creative
conflict” and team winning

One of the strengths of using teams for TQM is that they can
combine the mutually exclusive individual qualities needed
for running businesses today
Core Concept of Total Quality Management

5. Synergy in Teamwork

1. provide opportunities for people to work together to achieve quality improvement.

2. People who work on their own or in a small group often have a compartmentalized picture of their
organization and the work that it does

3. They are quite unfamiliar with the work done even by people who are in their vicinity.
Consequently, they are unaware of the results of the poor quality of their work. B

4. Bringing people together within teams with the common goal of quality improvement aids
communication between people, departments and functional activities
5. Teamwork slowly breaks down the communication barriers and acts as a platform for change

6. Teamwork also enables a group of people to work as a task force as seen in cross-functional
teams, committees, etc. which look at cross-functional problems, solving problems and identifying
and adopting new ways of doing things.
Core Concept of Total Quality Management

5. Synergy in Teamwork

THE ESSENCE OF SYNERGY IS VALUING DIFFERENCE, THE


MENTAL, THE EMOTIONAL, AND PSYCHOLOGICAL
DIFFERENCE BETWEEN PEOPLE - RESPECT THEM, TO BUILD
ON STRENGTHS, WHICH COMPENSATE WEAKNESSES.
Core Concept of Total Quality Management

6. People Make Quality

• Change Management
• Leadership Quality
• Professionals Teams Employee
• Empowerment and Involvement

7. Continuous Improvement Cycle

The continuous cycle of establishing customer requirements, meeting and measuring them, measuring
success and continuing the improvement can be used both externally and internally to fuel quality
improvements

The continuous improvement cycle used repeatedly will lead to a new “chemistry” within the
organization so that the culture begins to change to one of continuous improvement
Core Concept of Total Quality Management

7. Prevention

At the heart of TQM is the conviction that it is possible to achieve defect-free work most
of the time(ZERO DEFECTS- Right first time”)

The “right first time” or zero defects policy is the result of an emphasis on prevention,
and the diligent use of measurement, process controls and the data-driven elimination
of waste and error. It serves as a goal for continuous improvement

Prevention is the goal of all quality assurance. Through planned and systematic action such as
documentation of work processes, or cost of quality audits, quality assurance prevents quality
problems
TOTAL QUALITY MANAGEMENT EXCELLENCE MODEL (TQMEX)

The 5 S is the key to total quality environment, a philosophy most Japanese


factories endorse and practice. Japanese factories well known for their
cleanliness and orderliness and; hence, are addressed as “parlours.”

The TQMEX Model advocates an integrated approach in order to support the transition to systems management,
which is an ongoing process of continuous improvement that begins when the company commits itself to managing
by quality.
TOTAL QUALITY MANAGEMENT EXCELLENCE MODEL (TQMEX)

is a holistic management discipline aimed at enhancing


or improving the efficiency of business processes.

1. leverage the benefits of technology to achieve


innovation, flexibility and operational efficiency
2. It attempts to continuously improve
processes—the ones that define, measure
and improve other processes.
3. It is a discipline that treats business processes as
assets when working towards the goal of improving
agility and operational performance.

The TQMEX Model advocates an integrated approach in order to support the transition to systems management,
which is an ongoing process of continuous improvement that begins when the company commits itself to managing
by quality.
TOTAL QUALITY MANAGEMENT EXCELLENCE MODEL (TQMEX)

is a holistic management discipline aimed at enhancing


or improving the efficiency of business processes.

BPM is a structured approach that employs


methods, policies, metrics, management practices
and software tools to manage and continuously
optimize an organization’s activities and processes.

The three areas where BPM plays a crucial role are


business strategy
1. Governance
2. structure
3. culture and values

The TQMEX Model advocates an integrated approach in order to support the transition to systems management,
which is an ongoing process of continuous improvement that begins when the company commits itself to managing
by quality.
TOTAL QUALITY MANAGEMENT EXCELLENCE MODEL (TQMEX)

is a small group of staff working together to


contribute
Circles aretoformed
the improvement
of of the enterprise,
toemployees
respect humanity
workingand to build a cheerful
workgroup
together inthrough the development of the staff’s
an operation
infinite potential.
who meet at intervals to
discuss problems
Theofbasic
quality and toactivities:
concept devise
solutions
• To for to the improvement and
contribute
improvements.
development of the enterprise.
• To respect humanity and to build worthwhile
lives and cheerful work areas.
• To give maximum recognition to human
capabilities and to draw out each individual’s
infinite potential

THE SEVEN QUALITY CONTROL TOOLS

The TQMEX Model advocates an integrated approach in order to support the transition to systems management,
which is an ongoing process of continuous improvement that begins when the company commits itself to managing
by quality.
THE SEVEN QUALITY CONTROL TOOLS
TOTAL QUALITY MANAGEMENT EXCELLENCE MODEL (TQMEX)

is a formalized system that documents


processes, procedures, and responsibilities for
achieving quality policies and objective

The purpose of ISO is to promote the development of


standardization and related activities in order to facilitate
easier international exchange of goods and services and to
develop cooperation in intellectual, scientific,
technological and economic activities.

The TQMEX Model advocates an integrated approach in order to support the transition to systems management,
which is an ongoing process of continuous improvement that begins when the company commits itself to managing
by quality.
TOTAL QUALITY MANAGEMENT EXCELLENCE MODEL (TQMEX)

a system of maintaining and improving the integrity


of production and quality systems through the
machines, equipment, processes, and employees
that add business value to an organization.

TPM implies utilizing plant capability to its


fullest extent to:
• Reduce equipment stoppages (both line
stoppages and stoppages for reworking)
• Quantitatively and qualitatively enhance
equipment capability
• Improve safety, health and environmental
factors in the expectation that such
improvements will contribute to better quality
and higher profits
• Utilize small-group activities and prevention

The TQMEX Model advocates an integrated approach in order to support the transition to systems management,
which is an ongoing process of continuous improvement that begins when the company commits itself to managing
by quality.
TOTAL QUALITY MANAGEMENT EXCELLENCE MODEL (TQMEX)

The TQMEX Model advocates an integrated approach in order to support the transition to systems management,
which is an ongoing process of continuous improvement that begins when the company commits itself to managing
by quality.
COMMON BARRIERS TO THE IMPLEMENTATION AND DEVELOPMENT OF A TQM PROGRAMME

Some programs have never been initiated and many have encountered common
barriers.
1. poor planning
2. lack of management commitment
3. resistance of the workforce
4. lack of proper training
5. teamwork complacency
6. use of an off-the-shelf programme
7. failure to change the organizational philosophy
8. lack of resources and lack of effective measurement of quality improvement.
PREREQUISITE FOR TQM
TQM IMPLEMENTATION To implement TQM must understand clearly that TQM is not a
management technique but a programme that initiates
change. Like any other programme that initiates change, it
needs to be designed, sequenced and managed.

The following points must be kept in mind for the successful working of TQM in any organization
TQM IMPLEMENTATION
BENEFITS OF TQM

1. Creates a good corporate culture


2. Better review from customer
3. Better performance from employees

The benefits derived from TQM are summarized below:


Wrap Up
Thank you
QUE S TIO NS?

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