TOTAL QUALITY

MANAGEMENT
BY
Dr. Zurah Mohammed
 1.0. INTRODUCTION
 Managers deal with a myriad of challenges as they play their
management functions. Such as:-globalization; ecological;
quality; productivity; ethics’; social responsibility;
innovation; change; technological; knowledge management;
HR diversity; and multi-cultural aspects.
 Quality is central to competition, reputation and survival.
 Customers are now more enlightened.
 They demand higher performance; faster pdt dvt, tech. no
defects.
 Address pdt:- salability; produceability; acceptability;
operability; availability; reliability and maintainability.
INTRODUCTION TO QUALITY
 Despite being in use for nearly 50 years, the term TQM
still poses problems of definition for writers on quality,
and consequently often remain a rather abstract term.
 There are a number of well-known quality definitions.
ISO 8402 [ISO, 1986] defines quality as "the totality of
features and characteristics of a product or service that
bears on its ability to meet a stated or implied need".
 [Crosby, 1979] defines quality as "conformance to
requirement". [Juran, 1988] defines quality as "fitness
for use".
DEFINITIONS.;
 Japanese companies found the old definition of quality
"the degree of conformance to a standard" too narrow
and consequently have started to use a new definition of
quality as "user satisfaction" [Wayne, 1983].

 A core definition of total quality management (TQM)

describes a management approach to long–term success
through customer satisfaction.
DEFINITION OF TOTAL QUALITY
MANAGEMENT (TQM)
 Total Quality Management (TQM) is a comprehensive
and structured approach to organizational management
that seeks to improve the quality of products and
services through ongoing refinements in response to
continuous feedback.
 TQM requirements may be defined separately for a
particular organization or may be in adherence to
established standards, such as the International
Organization for Standardization's ISO 9000 series.
 In a TQM effort, all members of an organization TO

participate in improving processes, products, services,

and the culture in which they work.
 WHAT IS TOTAL QUALITY
MANAGEMENT

 Total : Make up of the whole.

 Quality : Degree of excellence a product or service provides.
 Management : It is a process of planning, organizing, directing and controlling.
 Therefore, TQM is the art of managing the whole to achieve excellence. TQM covers all
the set rules, regulations, guidelines and principles that contribute in improving the
organization continuously.
 It is a continuous process of improvement for individuals, groups of people and the whole
organisation. It is the application of quantitative methods and human resources to improve
all the processes within an organization to satisfy the needs of customers consistently.
THE EIGHT ELEMENTS OF TQM

1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication
9.  
BUILDING BLOCKS OF TQM
EXPLANATION
 TQM requires the help of those eight key elements.
These elements can be divided into four groups
according to their function.
 The groups are:

I. Foundation – It includes: Ethics, Integrity and Trust.

II. Building Bricks – It includes: Training, Teamwork and
Leadership.
III.Binding Mortar – It includes: Communication.
IV. Roof – It includes: Recognition.
Quality Perspectives:
1. Transcendent Perspective: Philosophical, perceptual, cultural,
moral or religious connotation.
2. Product- Based Perspective: a product is a bundle of need-
satisfying attributes i.e. ability to satisfy needs.
3. User-Based Perspective: the ability of a product to satisfy
customer needs
4. Manufacturing-Based Perspective: the product’s degree of
conformance to manufacturing specs,.
5. Value-Based Perspective: Does the customer get value for their
money?
6. Social/ecological Loss-Perspective: social/ecological loss a
product causes to society.
7. The Slogan-Perspective: obsession with quality,.
EVOLUTION OF T.Q.M
 Pre 1900-quality an integral element of craftsmanship
 1900-1920-Q.C by foremen

 1920-1940-inspection based quality control

 1940-1960-S.P.C

 1960-1980-Q.A

 1980-1990-T.Q.M

 1990-2000-T.Q.M and culture of continuous

improvement.
 2000-present-Organization wide quality management
 DIMENSIONS OF QUALITY (JUDGING
QLTY)
1. Performance: Refers to the efficiency of a product i.e. if it achieves its
intended purpose
2. Special/Extra Features: attributes that enhances the product’s basic
performance
3. Reliability: capability of a product to perform consistently over its life
cycle.
4. Conformance: How well does the product correspond to design
specification or manufacturing specifications?
5. Durability: time period/longevity of a product usage
6. Serviceability: ease of repair including frequency, cost and difficulty.
7. Aesthetics: sensory attributes:- texture, sound, smell, &taste.
8. Perceived quality: customers’ experience & opinion
-In services: Responsiveness; Assurance; Empathy; Availability;
Professionalism; Timeliness; Completeness and Pleasantness
BENEFITS OF T.Q.M

 Improved customer satisfaction

 enhanced quality goods/services
 reduced waste and inventory
 Improved productivity
 Reduced product development time
 Reduced work in-progress
 Better utilization of human resources
CRITICISMS OF TQM

 a. Only focus on quality but there are other

important activities e.g. changes in market
 b. Creates a cumbersome bureaucracy of councils,
committees and documentations to quality.
 c. Delegates determination of quality to quality
experts because TQM is complicated
 d. Some Regard T.Q.M as management by stress
and a way of de-unionizing workers.
 2.0. THE COST OF QUALITY
1. Internal Failure Costs: producing defective products, detected
within the organization before the product is delivered to the
customers. E.g. downtime; scrap; re-works; re-inspection;
downgrading costs; and waste among others.
2. External Failure Costs: incurred when the product fails to perform
satisfactorily after being transferred to the customer e.g. loss of
goodwill; warranty charges; liability; cost of returns inwards; and
customer complaints.
3. Appraisal Costs: associated with measuring, evaluating inputs,
products and components to determine their degree of conformance
to specified standards such as: inspection of inputs, process, and
facilities as well as quality audits.
4. Prevention Costs: incurred in planning, implementing, and
maintaining a quality system e.g. quality planning; cost of
determining product and service requirements; product design and
review; process design and review;.
SUPPLY CHAIN MANAGEMENT AND
T.Q.M
What is supply chain management?

Since 1980’s, the competition between enterprises has

become the one between supply chains. Therefore, the
implementation of total quality management (TQM) in
supply chain system but not only in enterprise has become
an exquisite premise for the survival of enterprise.
SUPPLY CHAIN AND TQM PRINCIPLES
 Customer focus - Customer focus is the core principle and
idea of TQM because quality effort comes of customer’s
needs and ends with customer’s acceptance.
 Leadership - The effective of quality management depend
on the effective of leadership because quality effort can get
actual effect only with the recognition and support of the
leadership.
 Involvement of people - The exertion of enthusiasm and
creativity of all the employees is the precondition of the
actual effect of quality management. In supply chain
circumstance, an up-and-coming excelsior work
atmosphere should be established to inspire the enthusiasm
and creativity of the employees of all the members.
CONT.
 Process management- The focus of modern quality view is
the process quality management but not the product itself of
traditional quality view. It is the requirement of the quality
management system of ISO9004:2000 and the essential
difference of modern and traditional quality view.
 System management- The application of system approach in
quality management is to view the quality management
system as a big and holistic system, identify and manage the
sub-systems respectively.
 Continual improvement- Continual improvement is one of
the focuses of modern quality research and practice.
Enterprise must improve the quality of product and service
continually and reduce the cost to make customer satisfactory.
CONT.
 Factual approach to decision making - The sufficient
and adequate data and information is the foundation of
making right and effective decisions.
 Mutually beneficial supplier relationships- What
impact can suppliers have in achieving quality? TQM
authorities recommend that organizations work directly
with raw material suppliers to ensure that their materials
are of the highest quality possible.
 3.0 THEORETICAL QUALITY MANAGEMENT
FRAMEWORKS
3.1. Edward Deming
 Two main causes of quality problems. Common causes are those relating to production
equipment and system which are a responsibility of management, while special causes relate
to the operators.
 Applied SPC and developed the PDCA, Cycle .
Proposed a fourteen point strategy for management :
i. Create constancy of purpose towards improvement of product and service
ii. Adopt a new philosophy for economic stability
iii. Cease dependence on mass inspection to achieve quality
iv. End the practice of awarding business on the basis of price
v. Continuous improvement
vi. Institute modern methods of job related training
vii. Institute modern methods of leadership
viii. Drive out fear of failure
ix. Break down barriers between individuals and departments
x. Eliminate the use of slogans, posters and exhortations
xi. Eliminate numerical quotas, work standards and management by objectives or numerical goals
xii. Remove barriers that rob workers of the right to pride in their workmanship
xiii. Institute education and re-training programmes
xiv. Take action to accomplish the transformation
DEMING'S SYSTEM OF PROFOUND
KNOWLEDGE
 One of Deming's essential theories is his System of
Profound Knowledge, which includes appreciation for a
system, knowledge about variation (statistics), theory of
knowledge, and psychology (of individuals, groups,
society, and change).
 Although the Fourteen Points are probably the most

widely known of Dr. Deming's theories, he actually

taught them as a part of his System of Profound
Knowledge. His knowledge system consists of four
interrelated parts: (1) Theory of Optimization; (2)
Theory of Variation; (3) Theory of Knowledge; and (4)
Theory of Psychology.
DEMING'S SEVEN DEADLY DISEASES

- Lack of constancy of purpose to plan and deliver

products and services that will help a company survive
in the long term.
- Emphasis on short-term profits caused by short-term
thinking (which is just the opposite of constancy of
purpose), fear of takeovers, worry about quarterly
dividends, and other types of reactive management.
- Performance appraisals (i.e., annual reviews, merit
ratings) that promote fear and stimulate unnecessary
competition among employees.
CONT.
- Mobility of management (i.e., job hopping), which
promotes short-term thinking.
- Management by use of visible figures without concern
about other data, such as the effect of happy and
unhappy customers on sales, and the increase in overall
quality and productivity that comes from quality
improvement upstream.
- Excessive medical costs, which now have been
acknowledged as excessive by federal and state
governments, as well as industries themselves.
- Excessive costs of liability further increased by lawyers
working on contingency fees
 3.2. JOSEPH JURAN
 Dr. Juran was born on December 24, 1904 in Braila, Romania.

 He moved to the United States in 1912 at the age of 8.

 Juran's teaching and consulting career spanned more than seventy

years, known as one of the foremost experts on quality in the world.
DEFINITION OF QUALITY ACCORDING TO JJ.
 Juran defined quality as fitness for use.

Quality doesn’t happen by accident but must be planned.

 Quality problems are traceable to management appl. Pareto

 Mgt should pursue quality improvement both at orgnal & at dptal

levels
JURAN QUALITY PHILOSOPHIES
Associated with Quality Trilogy and Quality planning
road Map.
Quality Triology
a.) Quality Planning: creation of a road map which
recognizes both internal and external customers and creates
a process that will be able to meet established goals.
b.) Quality Control: The subjects or product characteristics to
be controlled are identified as well as the units for
measurement.
c.) Quality Improvement: This relates to those activities
leading to continuous improvement of quality, training,
communicating results.
QUALITY PLANNING ROAD MAP.
 Juran's Quality Planning Road Map can be used by individuals and
teams throughout the world as a checklist for understanding
customer requirements, establishing measurements based on
customer needs, optimizing product design, and developing a
process that is capable of meeting customer requirements
 Juran's Quality Trilogy and Quality Roadmap are not enough. An
infrastructure for Quality must be developed, and teams must work
on improvement projects.
 The infrastructure should include a quality steering team with top
management leading the effort, quality should become an integral
part of the strategic plan, and all people should be involved. As
people identify areas with improvement potential, they should team
together to improve processes and produce quality products and
services.
 3.3. PHILIP CROSBY
 Defined quality as conformance to customer requirements.
 He believed that quality is free.
 Philosophy is encapsulated in his five absolutes & vaccination serum.

The Five Absolutes of Quality

1. Definition of quality:. the product should meet customer needs.
2. There is no such thing as quality problem: poor management is the source of
quality problems. Problems don’t create themselves
3. It is cheaper to do Right the First Time: quality needs to be designed into a
product rather than flaws being inspected out
4. The Only Performance Measure is the Cost of Quality: quality costs should be
measured and will constitute non-conformance.
5. Zero Defect performance: this will be achieved if the product conforms to
customer specification and requirements.
vaccination serum:
 Integrity: provide customers with what is promised in quality terms
 Systems: prepare all systems and procedures to conform with standards
 Communication: inform stakeholders about progress of quality.
 Operations: empower suppliers and employees
 Policies: the policies on quality should always be clearly explained.
PHILIP CROSBY PHILOSOPHIES
 To support his Four Absolutes of Quality Management,
Crosby developed the Quality Management Maturity
Grid and Fourteen Steps of Quality Improvement.
 Crosby sees the Quality Management Maturity Grid as a
first step in moving an organization towards quality
management.
 3.4. ARMAND V. FEIGENBAUM

 Came up with the idea of Total Quality Control (TQC)

 involvement of all functional areas of management in quality
processes
 should be built into a product rather than defects inspected out.

 He defined quality as “best for the customer use and price”

Developed a 4 step approach.

1. Set quality standards

2. Appraise performance on the basis of the standards

3. Act on any deviations from the standards

4. Plan on making further improvements

 3.5. KAORU ISHIKAWA

 A professor of engineering at the University of Tokyo and a student of

Dr. W. Edwards Deming,
 Ishikawa was active in the quality movement in Japan, and was a

member of the Union of Japanese Scientists and Engineers.

 He was awarded the Deming Prize, the Nihon Keizai Press Prize, and

the Industrial Standardization Prize for his writings on quality control,

and the Grant Award from the American Society for Quality Control
for his educational program on quality control.
 Ishikawa defines quality as “not only the quality of the product, but
also of the after sales service, quality of management, the company
itself and human beings”. :
 Holistic; and Participation; approach and simple Communication.
TOOLS OF QUALITY CONTROL
Proposed TQC using the following tools:
1. Pareto Charts: Used to identify principal causes of problems.

2. Ishikawa/Fishbone) diagram: used to show cause and effect

3. Stratification: this is a layered chart.

4. Check Sheets: used to record quality aspects of a

product/process
5. Histograms: These are graphs of various range values of
quality
6. Scatter Diagrams: frequency of various ranges of quality
values
7. Control Charts: Used in SPC showing variations of upper and
lower acceptable performance or indicators.
QUALITY CIRCLES
 He promoted the use of Quality Circles to:
 (1) Support improvement;
 (2) Respect human relations in the workplace; (3)

Increase job satisfaction; and

 (4) More fully recognize employee capabilities and

utilize their ideas.

 Quality Circles are effective when management

understands statistical techniques and act on

recommendations from members of the Quality Circles.
OTHERS
3.7. John Oakland
 Customer satisfaction should be the most important parameter of every
decision making and suggests that 1/3 of organizational time and efforts is
wasted in error rectification, re-work and inspection.
3.8 Shigeo Shingo
 Shingo came up with the idea of re-engineering for quality and is known
for his contributions in the Just-time concept in procurement.
 “Poka-Yoke”, : mistake-proofing or defects=0. tracing errors to the
source.
3.8. Genichi Taguchi
 Taguchi defines quality as the loss a society suffers a product is shipped.
 His main concern is customer satisfaction, loss of reputation, pollution
and externalities.
 He perceives quality as a societal rather than an organizational issue
BARRIERS / OBSTACLES IN IMPLEMENTATION OF TQM

 Lack of management commitment –

 Inability to change organizational culture-
 Improper planning-.
 Lack of continuous training and education -
Incompatible organizational structures and isolated
individuals and department –
 The use of multifunctional teams can help to break this
barrier-
 Ineffective measurement techniques and lack of access
to data and results –
 Paying inadequate attention to internal and external
customers –
 Inadequate use of empowerment and teamwork -
Thank you