TOTAL QUALITY MANAGEMENT

ORIGIN, EVOLUTION, OBJECTIVES,SIGNIFICANCE AND REASONS FOR

FAILURES

By
Shaik Khaja Mohiddin
Research Scholar in Acharya Nagarjuna University,
GUNTUR
Asso. Prof . Dept. of IT , VVIT , NAMBUR, GUNTUR
Email: mail2mohiddin@gmail.com
•What is TQM?
•Evolution of TQM
•Objectives of TQM
•Importance of TQM
•Elements of TQM
•Benefits of TQM
•7 important principles of TQM
•TQM Timeline
•Demmings 14 points on TQM
•INDIAN APPROACH TO TQM
•Western approach
•Japanese approach
•Reasons for Failure of TQM
•Conclusion
 Quality

Quality is “fitness for use”

(Joseph Juran)
Quality is “conformance to requirements”
(Philip B. Crosby)
Quality of a product or services is its ability to satisfy
the needs and expectations of the customer
 QUALITY IS ….the QUALIFIER!
•Doing it right first time and all the time. This boosts
Customer satisfaction immensely and increases efficiency of
the Business operations.

•Clearing the bar (Specification or Standard stipulated)

Excellence that is better than a minimum standard.

•Quality is excellence that is better than a minimum standard.

It is conformance to standards and ‘fitness of purpose’ .

•ISO 9000:2000 definition of Quality It is the degree to which

a set of inherent characteristics fulfills requirements.
 Quality and customer expectations

•Quality is not fine-tuning your product at the final stage of

manufacturing, before packaging and shipping.
•Quality is in-built into the product at every stage from
conceiving –specification & design stages to prototyping –
testing and manufacturing stages.
•TQM philosophy and guiding principles continuously
improve the Organization processes and result in customer
satisfaction.
•Quality is also defined as excellence in the product or service that
fulfills or exceeds the expectations of the customer.
•There are 9 dimensions of quality that may be found in products that
produce customer-satisfaction. Though quality is an abstract perception,
it has a quantitative measure:- Q = (P /E )
where
•Q=quality
•P= performance (as measured by the Mfgr.)
•E = expectations( of the customer)
 HISTORY OF TOTAL QUALITY MANAGEMENT

•TQM involves methodology for continually improving the

quality of all processes, it draws on a knowledge of the
principles & practices of:
•The behavioural sciences
•The analysis of quantitative & non-quantitative data
•Economics theories
•Process analysis
•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. ) .
•CUSTOM-BUILT :Articles/Products having considerable control over
Quality.
•MASS- PRODUCED: Products with less control over Quality
•QUALITY CONTROL : Department in Factories.
•TQM-BASED PRODUCTION: facility – enhancing the Organization
through Quality techniques to better achieve organization’s goals-eg.
Productivity and Profitability with min. wastage.

•ISO Quality Management Systems.

What is Total Quality Management ?
TQM is an approach to improving the
effectiveness and flexibilities of business as a
whole. It is essentially a way of organizing and
involving the whole organization, every
department, every activity and every single
person at every level. TQM ensures that the
management adopts a strategic overview of the
quality and focuses on prevention
rather than inspection.
 Total Quality Management is a management approach that
originated in the 1950's and has steadily become more popular
since the early 1980's.
 TQM is preferred method to increase the user satisfaction. It
reduces the defects of organization and increases the
productivity.
 Competition is getting harder and becoming global. Companies
now have to be more responsive, offer a better product and keep
improving.
 Total Quality management increases customer satisfaction by
boosting quality. It does this by motivating the workforce and
improving the way the company operates. In an increasingly
competitive market, firm with a continuous improvement culture
and external focus are more likely to survive and prosper. TQM
is considered an important catalyst in the context.
 Inspection
•To salvage
•Sorting, grading, reblending
•Corrective Actions
•Identify Sources of Non-conformance
Quality Control
•Develop Quality Manual
•Self-Inspection
•Product Testing
•Basic Quality Planning
•Use of Basic Statistics
•Paperwork Controls
 Quality Assurance
•Advanced Quality Planning
•Quality Systems Development
•Focus on Design
•Quality Costs
•Failure Mode and Effects Analysis
•Statistical Process Control
Total Quality Management
•Policy Deployment
•Involve Suppliers and Customers
•Involve all operations
•Process Management
•Performance Measurement
•Teamwork
•Employee involvement and development
Objectives of TQM
 Meeting the customer's requirements is the primary objective and
the key to organizational survival and growth.

 The second objective of TQM is continuous improvement of

quality. The management should stimulate the employees in
becoming increasingly competent and creative.

 Third, TQM aims at developing the relationship of openness and

trust among the employees at all levels in the organization.
Significance of TQM
The importance of TQM lies in the fact that
it encourages innovation, makes the
organization adaptable to change, motivates
people for better quality, and integrates the
business arising out of a common purpose and
all these provide the organization with a
valuable and distinctive competitive edge.
Elements of TQM
 Be customer focused
It requires the company to check customers'
attitudes regularly and includes the idea of
internal customers as well as external ones.

 Do it right the first time

This means avoiding rework, i.e., cutting the
amount of defective work.
 Constantly improve
Continuous improvement allows the company
gradually to get better.

 Quality is an attitude
Every one has to be committed to quality. That means
changing the attitude of the entire workforce, and
altering the way the company operates.

 Telling staff what is going on

This involves improved communication. Typically, it
includes team briefing.
 Educate and train people
An unskilled workforce makes mistakes. Giving more
skills to workers means they can do a wider range of
jobs, and do them better. It also means educating staff in
the principles of TQM, which is a whole new style of
working.

 Measure the work.

Measurement allows the company to make decisions
based on facts, not opinion. It helps to maintain
standards and keep processes within the agreed
tolerances.

 Top management must be involved

If senior management is not involved, the programme
will fail.
 Make it a good place to work
Many companies are full of fear. Staffs are afraid of the
sack, their boss and making mistakes. There is no point in
running a TQM program unless the company drives out
fear.

 Introduce team work

Team work boosts employees' morale. It reduces conflict
and solves problem by hitting them with a wider range of
skills. It pushes authority and responsibility downwards
and provides better, more balanced solutions.

 Organize by process, not by function

This element of TQM seeks to reduce the barriers that
exist between different departments, and concentrates on
getting the product to the customer.
 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.
 Effects of poor Quality

•Low customer satisfaction

•Low productivity, sales & profit
•Low morale of workforce
•More re-work, material & labor costs
•High inspection costs
•Delay in shipping
•High repair costs
•Higher inventory costs
•Greater waste of material
 7 Important Principles of TQM
1. Qualitycan and must be managed
Many companies have wallowed in a repetitive cycle of chaos and
customer complaints. They believe that their operations are simply
too large to effectively manage the level of quality. The first step in
the TQM process, then, is to realize there is a problem and that it can
be controlled.

2. Processes, not people, are the problem

If your process is causing problems, it won’t matter how many times
you hire new employees or how many training sessions you put
them through. Correct the process and then train your people on
these new procedures.
3. Don’t treat symptoms, look for the cure
If you just patch over the underlying problems in the process, you
will never be able to fully reach your potential. If, for example, your
shipping department is falling behind, you may find that it is
because of holdups in manufacturing. Go for the source to correct
the problem.
 7 Important Principles of TQM
4. Every employee is responsible for quality
Everyone in the company, from the workers on the line to the upper
management, must realize that they have an important part to play in
ensuring high levels of quality in their products and services. Everyone
has a customer to delight, and they must all step up and take
responsibility for them.

5. Quality must be measurable

A quality management system is only effective when you can quantify
the results. You need to see how the process is implemented and if it is
having the desired effect. This will help you set your goals for the future
and ensure that every department is working toward the same result.
 7 Important Principles of TQM
6. Quality improvements must be continuous
Total Quality Management is not something that can be done once and
then forgotten. It’s not a management “phase” that will end after a
problem has been corrected. Real improvements must occur frequently
and continually in order to increase customer satisfaction and loyalty.

7. Quality is a long-term investment

Quality management is not a quick fix. You can purchase QMS software
that will help you get things started, but you should understand that real
results won’t occur immediately. TQM is a long-term investment, and it
is designed to help you find long-term success.
 BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

 TQM TIME LINE
1920: Some of the first seeds of quality management were planted as
the principles of scientific management swept through U.S. industry.

1930: Walter Shewhart developed the methods for statistical analysis

and control of quality.

1950:
•W. Edwards Deming taught methods for statistical analysis and
control of quality to Japanese engineers & executives
•Joseph M. Juran taught the concepts of controlling quality and
managerial breakthrough
•Armand V. Feigenbaum’s book Total Quality Control was published
•Philip B. Crosby’s promotion of zero defects paved the way for
quality improvement in many companies
 1968: Kaoru Ishikawa’s synthesis of the philosophy contributed to
Japan’s ascendancy as a quality leader

Today:
TQM is the name for the philosophy of a broad and systemic
approach to managing organizational quality.
Quality standards such as the ISO 9000 Series
and quality award programs such as the Deming Prize and
the Malcolm Baldridge National Quality Awards specify principles
and processes that comprise TQM. WALTER
SHEWHART

KAORU
ISHIKAWA

JOSEPH
JURAN
ARMAND F.
W.E. DEMING
PHILIP CROSBY
 W. Edwards Deming’s 14 Points

1. Create constancy of purpose towards improvement of

product and services.
2. Adopt the new philosophy. We can no longer live with
commonly accepted levels of delays, mistakes, defective
workmanship.
3. Cease dependence on mass inspection. Require, instead,
statistical evidence that quality is built in.
4. End the practice of awarding business on the basis of price
tag.
 W. Edwards Deming’s 14 Points

5. Find problems. It is management’s job to work continually

on the system.
6. Institute modern methods of training on the job.
7. Institute modern methods of supervision of production
workers. The responsibility of foremen must be changed from
numbers to quality.
8. Drive out fear that everyone may work effectively for the
company.
 W. Edwards Deming’s 14 Points

9.Break down barriers between departments.

10.Eliminate numerical goals, posters and slogans for the
workforce asking for new levels of productivity without
providing methods.
11.Eliminate work standards that prescribe numerical quotas.
12.Remove barriers that stand between the hourly worker and
his right to pride of workmanship.
 W. Edwards Deming’s 14 Points

13. Institute a vigorous programme of education and

retraining.
14. Create a structure in top management that will push
everyday on the above 13 points.
 Deming’s view of a production as a system

Receipt & test of Design & Consumer

materials redesign Research

Suppliers, Production,
materials & assembly, Distribution Consumers
equipment inspection

Test of processes,
machines, methods, cost
 Deming’s Chain Reaction

Improve Quality
Provide jobs and Cost decreases because
more jobs of less rework, fewer
mistakes, fewer delays,
snags, better use of
Stay in business machine time and
materials

Productivity improves
Capture the market with
better quality and lower price
 The Deming Cycle or PDCA Cycle

PLAN
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT DO
Adopt the change as a Implement the change on
permanent modification to a small scale and measure
the process, or abandon it. the effects

CHECK

Study the results to learn

what effect the change
had, if any.
 INDIAN APPROACH TO TQM
HISTORICAL PERSPECTIVE
After independence 1950 - 1990 Business scenario
Industrial growth was very slow and sluggish, Insignificant market share
in world market . Thrust was towards
1)Self Reliance
2) Protection from competition
3) Nationalization

ECONOMIC REFORMS OF THE 1990s

The country’s door was opened towards foreign investments and the
thrust was towards :
1) Globalization
2) Competition
3) Privatization
 CRITICAL ISSUES FACED BY INDIAN INDUSTRIES
•GLOBAL MARKET SCENARIO
•TOTAL QUALITY MANAGEMENT
•PRODUCT INNOVATION
•HUMAN RESOURCE DEVELOPMENT
•NEW MARKETING STRATEGIES
 DEMING PRIZE

•It was established in December 1950 in honour of W. Edward Deming

•It was originally designed to reward to Japanese companies for major
advances in quality improvement
•Over the years it has grown, under the guidance of Japanese Union of
Scientists and Engineers (JUSE)and it is now available to non Japanese
companies as well
 INDIAN COMPANIES WINNER OF THE DEMING
APPLICATION PRIZE
•Sundram Clayton brakes division(Sundaram Brake Linings), the world's
first friction material company to win.
•TVS Motor Company
•MAHINDRA & MAHINDRA Ltd., the world's first tractor company
to win.
•Rane Brake Lining Ltd.
•SRF limited
•Rane Engine Valve Ltd
•Rane TRW Steering Systems Ltd.(SGD)
•Krishna Maruti Ltd., Seat Division
•Rane (Madras) Ltd.
•TATA STEEL, the first integrated steel plant in Asia to win Deming
award in 2008
•NATIONAL ENGINEERING INDUSTRIES LIMITED, part of the
150-year-old, multi-billion CK Birla Group. The first bearing
manufacturing company to win.
 MAHINDRA AND MAHINDRA
•It is one of the largest automobile manufactures in India by production
and a part of the Mahindra Group Conglomerate

•It has about more than 1,44,000 employees across more than 100
countries in the world
•It was originally set up as a steel company in Ludhiana in the year 1945
•Tractor division was sellers market
•Focus was more on quality
•No emphasis on development of new models
•Manufacturing activity was more inspection oriented detection
•Interaction with suppliers purely need based
•Sales and service activity lacked standardization
•Rework rejection percentages were high
•Employee involvement in improvement activity was very limited

OTHER MAJOR TQM INITIATIVES IN INDIA

•Quality in Manufacturing – RANBAXY

•Quality in Marketing – HINDUSTAN UNILEVER
•Quality as service – HDFC
•Quality in HRD – INFOSYS
•Quality in Hospitality – OBEROI GROUP OF HOTELS
Here companies were awarded the Deming Prize this year:
•Ashok Leyland, Pantnagar Plant (India)
•Toyota Motor Kyushu (Japan)
•Maruwa Electronic & Chemical (Japan)

Since 2000 organizations based in India have received the most Deming
Prizes; Japan is second, and Thailand is third.
Distribution of winning organizations since 2000 (including prizes for
2016)
•India – 22
•Japan – 16
•Thailand – 12
•China – 2
•USA – 2
•Singapore – 1
•Taiwan – 1
 LEARNING AND TQM

Learning

Process Improvement

Quality Improvement

Customer Shareholder Employee

Satisfaction Satisfaction Satisfaction
 BASIC PRINCIPLES OF TQM
1. Management Commitment
2. Employee Empowerment
Training
Suggestion scheme
Measurement and recognition
Excellence teams
3. Fact Based Decision Making
SPC (statistical process control)
TOPS (Team Oriented Problem Solving)
4. Continuous Improvement
Systematic measurement
Cross-functional process management
Maintain and improve standards
5. Customer Focus
Supplier partnership
Service relationship with internal customers
Never compromise quality
Process of TQM
 GROWTH OF TQM
▪Japanese industries followed the path & guidance of Joseph
Juran & Edward Deming for TQM, and by mid-1970s became a
world leader in most industries & consumer product segments,
for eg., Sony in Consumer Electronics, Toyota & Honda in 4-
wheeler automobile industry, Honda & Yamaha in 2 wheeler
industry etc.

▪Gradually TQM spread to most of the world’s industries in

Korea, Europe and USA and it was accepted as universal mantra
for world class performance and excelling in individual fields of
operations
 OBSTACLES FOR TQM

▪LACK OF MANAGEMENT COMMITMENT

▪LACK OF EMPLOYEE MOTIVATION
▪INABILITY TO CHANGE ORGANISATION CULTURE
▪IMPROPER PLANNING
▪LACK OF CONTINUOUS TRAINING & EDUCATION
▪INADEQUATE USE OF EMPOWERMENT & TEAMWORK
 Reasons for FAILURE

TQM fails because:

 Top management sees no reason for change.

 Top management is not concerned for its staff.

 Top management is not committed to the TQM programme.

 The company loses interest in the programme after six

months.
 The workforce and the management do not agree on what
needs to happen.

 Urgent problems intervene.

 TQM is imposed on the workforce, which does not inwardly

accept it.

 No performance measure or targets are set, so progress

cannot be measured.

 Processes are not analyzed, systems are weak and

procedures are not written down.
 What is ISO 9001:2008?

➢ ISO = International Organization for Standardization

➢ ISO has representation from 162 countries and has issued
many standards
➢ ISO 9001:2008 is a model for a quality management system.
 Who created the standard?

➢ International Organization for Standardization - Geneva

➢ Standards created in 1987
▪ To eliminate country to country differences
▪ To eliminate terminology confusion
▪ To increase quality awareness
 ISO 9000:2005 Consists of 3
Areas
➢ ISO 9000:2005 Quality Management Systems: fundamentals and
vocabulary
➢ ISO 9001:2008 Quality Management Systems – Requirements
(required for certification)
Management responsibility Resource management Product/service
realization
Measurement, analysis, improvement
➢ ISO 9004-2009 Quality Management Systems – Guidelines for
performance improvement
 Generic standards

ISO 9001 is a generic standards.

Generic means that the same standards can
be applied:
➢to any organization, large or small,
whatever its product or service,
➢in any sector of activity, and
➢whether it is a business enterprise, a public
administration, or a government department.
 Generic standards (cont.)

Generic also signifies that

➢no matter what the organization's scope of
activity
➢if it wants to establish a quality
management system, ISO 9001 gives the
essential features
 Certification and registration

➢ Certification is known in some countries as

registration.
➢ It means that an independent, external
body has audited an organization's
management system and verified that it
conforms to the requirements specified in
the standard (ISO 9001).
➢ ISO does not carry out certification and
does not issue or approve certificates,
 Accreditation

➢ Accreditation is like certification of the certification

body.
➢ It means the formal approval by a specialized body -
an accreditation body - that a certification body is
competent to carry out ISO 9001:2008 certification
in specified business sectors.
➢ Certificates issued by accredited certification bodies
- and known as accredited certificates - may be
perceived on the market as having increased
credibility.
➢ ISO does not carry out or approve
accreditation.
 Certification not a requirement

➢ Certification is not a requirement of ISO 9001.

➢ The organization can implement and take benefit from an
ISO 9001 system without having it certified.
➢ The organization can implement them for the internal
benefits without spending money on a certification
programme.
 Accreditation

➢ Accreditation is like certification of the certification body.

➢ It means the formal approval by a specialized body - an accreditation

body - that a certification body is competent to carry out ISO
9001:2008 certification in specified business sectors.
➢ Certificates issued by accredited certification bodies
- and known as accredited certificates - may be perceived on the market
as having increased credibility.
➢ ISO does not carry out or approve accreditation.
Certification not a requirement

➢ Certification is not a requirement of

ISO 9001.
➢ The organization can implement and take
benefit from an ISO 9001 system without
having it certified.
➢ The organization can implement them for
the internal benefits without spending
money on a certification programme.
 Certification is a business decision

➢ Certification is a decision to be taken for business reasons:

➢ if it is a contractual, regulatory, or market requirement,
➢ If it meets customer preferences
➢ if it will motivate staff by setting a clear goal.
Ten Steps to ISO Registration
10. Registration!

9. Final assessment by registrar

8. Take corrective actions

7. Pre-assessment by registrar

6. Submit quality manual for approval

5. Perform self-analysis audit

4. Select a third-party registrar and apply

3. Develop and implement the quality system

2. Select the appropriate standard

1. Set the registration objective

 What is a Quality Management System?

➢A Quality Management System is a web of

interconnected processes that are used to
manage a business.
 Operating Cycle of ISO.

➢ The Plan – Do – Check – Act (PDCA) cycle is the

operating principle of ISO's management system
standards

➢ Plan – establish objectives and make plans (analyze your

organization's situation, establish your overall objectives
and set your interim targets, and develop plans to
achieve them).
➢ Do – implement your plans (do what you planned to).
➢ Check – measure your results (measure/monitor how far
your actual achievements meet your planned objectives).
➢ Act – correct and improve your plans and how you put
them into practice (correct and learn from your mistakes
to improve your plans in order to achieve better results
next time).
 ISO 9001:2008
CONTINUAL
CONTINUALIMPROVEMENT
IMPROVEMENTOF
OFTHE
THEQUALITY
QUALITY
MANAGEMENT
MANAGEMENTSYSTEM
SYSTEM

Managemen Customers
t
responsibilit
Customers Clause 6 yClause 5
Measurement,
Resource
Resource analysis and Satisfaction
management
management improvement

Clause
8

Input Product Output

Requirements Product
Product
realizatio
n
Clause 7

Value adding activities

Information flow
 PROCESS REQUIREMENTS
With What? WHO?
(Materials / Equipment) Objectives Special Skills? /
and Competence?
Targets

Process
Inputs Outputs

How? Measure
Process
(Methods / Procedure) Linkages
 Management Principles

➢ A Quality Management Principle is a comprehensive and

fundamental rule or belief, for leading and operating an
organization, aimed at continually improving performance
over the long term by focusing on customers while
addressing the needs of all stakeholders.
 8 Management Principles
➢ Principle 1 : Customer Focus
➢ Principle 2 : Leadership
➢ Principle 3 : Involvement Of People
➢ Principle 4 : Process Approach
➢ Principle 5 : System approach to management
➢ Principle 6 : Continual Improvement
➢ Principle 7 : Factual approach to decision making
➢ Principle 8 : Mutually beneficial supplier
relationships
 Principle 1 : Customer Focus

➢Organizations depend on their customers

& therefore should understand current &
future customer needs, should meet
customer requirements & strive to exceed
customer expectations
 Principle 2 : Leadership

➢ Leaders establish unity & direction of the

organization. They should create &
maintain the internal environment in
which people can become fully involved
in achieving the organization's objectives.
 Principle 3 : Involvement Of
People

➢ People at all levels are the essence of

an organization and their full
involvement enables their abilities to
be utilized for the organization's
mutual benefit.
Principle 4 : Process Approach

➢ The application of a system of processes within

an organization, together with the identification
and interaction of these processes, and their
management to produce the desired outcome,
can be called “Process Approach”
 Principle 5 : System approach to
management

➢ Identifying, understanding & managing

interrelated processes as a system
contributes to the organization's
effectiveness & efficiency in achieving its
objectives.
 Principle 6 : Continual
Improvement

➢Continual Improvement of the organization's

overall performance should be the primary driver
of the organization’s Quality Management System

Continuous Continual Improvement

Improvemen
t
 Principle 7 : Factual approach to decision
making

➢ Effective decisions are based on the analysis of

data & information
 Principle 8 : Mutually beneficial
supplier relationships

➢ An organization & its suppliers are

interdependent, and a mutually beneficial
relationship enhances the ability of both
to create value
 Clauses of ISO 9001-2008

➢ 1.Scope
➢ 2.Normative References
➢ 3.Term & Definitions
➢ 4.Quality Management System
➢ 5.Management Responsibility.
➢ 6.Resources Management
➢ 7.Product Realization
➢ 8.Measurment,Analysis and Improvement
 CONCLUSION

Quality is a Journey,
not a Destination