Concepts, Evolution and Acceptability in Developing Economies

TQM
Concepts, Evolution and Acceptability in Developing Economies
By Laraib, Aisha, Wasay & Mohid

What is TQM?
TQM can be defined as a continuous improvement process for acquiring excellence,

used by businesses to improve effectiveness and flexibility in areas of:
• Cost
• Reliability
• Quality
• innovative efficiency
• business effectiveness
Factors influencing implementation of TQM include dynamic global economy,
complex technology, increasing demand and customer expectations etc.
2
Oakland’s Pyramid
TQM is functionally viewed as an integration of two basic features – total quality

control and quality management
Customer-supplier chain
Management commitment
Quality systems
Statistical Process Control

(SPC)
Teamwork
3
Evolution of TQM
• Garvin’s Evolutionary Model for quality
Initial Stage
Developing quality Develop systems for
• inspecting Standard techniques
manuals and third-party
• sorting controlling process like SPC and TQM
• correcting certification
performance
standards
According to Zaire, TQM is formulated in terms of three aspects – continuous

improvement, value-added management and employee involvement
4
Difference Between Approaches
TQM TRADITIONAL MANAGEMENT
“Products conquer markets” approach Make products according to the markets
Profits follow Quality Quality follows Profit
Goal-directed environment, empowered

Monolithic, workers work and managers manage
employees
Process-oriented Result-oriented
Long span of control and lesser layers of Short span of control and many layers of
authority authority
Multi-skilled workforce, job rotation Division of labor

5
TQM’s Acceptability
• Global acceptance
• Sink – Practiced without understanding
• Dale – unwilling embrace TQM fundamentals
Studies:
India – 39 out of 1000 companies practice TQM
Spain and US – managers shared different views
6
TQM in Japan
• 1946 to 1950 – Statistical quality management

• 1955 to 1960 – TQM
- Top management involvement
- Emphasis on training and education
- The use of informal quality control circles
7
TQM in the US
• Focused on quality management in late 1970s

• Hayes – Capacity management and “thinking quality”
• Wheelwright – Strategic quality policy
• Gravin – further attention to quality management
• Failure due to top management
8
TQM in Europe
• Quality improvement processes and quality-related training

• Recent adoption of ISO 9000 and BS 5750
9
TQM in developing nations
• Failure to implement TQM practices

economic and political constraints
• Problems faces by firms

1. Social tension
2. Exploitation of workers
3. Traditional beliefs
4. Lack of trust, commitment and motivation
• Basic survival depends on quality
10
Implementation
• What do we want from TQM?

• What are the implications for the organization?
TQP (Total Quality Paralysis).
11
Stage 0: Understanding Stage 1: Developing a
Stage 2: Planning
the Organizational Strategic Plan for the
Assumptions
System TQM effort
Stage 5:
Stage 4: Specifying Stage 3: Specifying
Implementation
Tactical Objectives Strategic Objectives
Planning
Stage 8: Evaluation,
Accountability, follow
Stage 6: Project Stage 7: Measurement
through, ensuring
Management & Evaluation
effective
implementation 12
OAKLAND 13 Steps for TQM
1. Understanding of quality 10. Teamwork for quality

2. Commitment to quality 11. Capability for quality
3. Policy on Quality 12. Training for quality
4. Organization for quality 13. Implementation of TQM
5. Measurement cost of quality
6. Planning for quality
7. Design for quality
8. System for quality
9. Control of quality
13
Cautions & Challenges during Implementation
Luchsinger & Blois’s two cautions while implementing TQM:

1. Lack of Commitment to change efforts
2. Lack of Accountability structure
Burstein & Sedlack’s major challenges to TQM implementation:

3. Lack of comprehensive quality improvement education
4. Uneven top management support
5. Lack of customer orientation
6. Lack of clarity in measurement systems
7. Scant resources for required investment
14
Conceptual Frameworks for TQM Implementation
1. Effect of Interactive Environment on Business System
2. TQM and Productivity Linkage
3. Framework for Implementing TQM in an Organization
15
Case Study (Pakistan)
• TQM is being practiced by various corporate firms across different sectors

• Telecom Sector (Telenor)
• Performance Measures
• Customer satisfaction
• Developed & strengthened supplier relations
• Incentives & perks for employees
16
International Case Studies
Coca Cola Company Total

Quality Management
• Lack of a well designed quality system in • Focus aimed at the requirements of the
the beginning external customers while giving proper
consideration to internal customers
• keeping pace with the changes in the
market places by producing products • Benefits of TQM;
which are not only of high quality but are 1. Good reputation
environmental friendly 2. Strong brand name
• “A satisfied customer will always come 3. High number of customers
back and will come along with friends” 4. Global recognition
17
TQM IN AUSTRALIA
FACTORS CRITICAL TO SUCCESS
• Myth: managers will only pay attention to TQM when the company is facing
severe internal and external problems
• Dealing with cultural diversities
• “Without the right attitudes, very little will be achieved”
• Lack of dissemination of important information to all people within the
organization
• Establishment of a formal structure within the organization for the implementation
of TQM
• Variety of quality management practices, leadership training, quality indicators,
customer surveys & customer and supplier involvement, strategic alliances
18
Thank You 
19

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TQM

Concepts, Evolution and Acceptability in Developing Economies

By Laraib, Aisha, Wasay & Mohid

TQM can be defined as a continuous improvement process for acquiring excellence,

TQM is functionally viewed as an integration of two basic features – total quality

Statistical Process Control

• Garvin’s Evolutionary Model for quality

According to Zaire, TQM is formulated in terms of three aspects – continuous

TQM TRADITIONAL MANAGEMENT

“Products conquer markets” approach Make products according to the markets

Profits follow Quality Quality follows Profit

Goal-directed environment, empowered

Multi-skilled workforce, job rotation Division of labor

• 1946 to 1950 – Statistical quality management

• Focused on quality management in late 1970s

• Quality improvement processes and quality-related training

• Failure to implement TQM practices

• Problems faces by firms

• Basic survival depends on quality

• What do we want from TQM?

1. Understanding of quality 10. Teamwork for quality

Luchsinger & Blois’s two cautions while implementing TQM:

Burstein & Sedlack’s major challenges to TQM implementation:

1. Effect of Interactive Environment on Business System

2. TQM and Productivity Linkage

3. Framework for Implementing TQM in an Organization

• TQM is being practiced by various corporate firms across different sectors

Coca Cola Company Total

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