Total Quality Management

Dr. Vaishali P. Nagulwar

Assistant Professor,
Government College of Pharmacy, Amravati, M.S.
India-444 604
International Organization For Standardization
ISO 8402:1994

Management approach of an organization centered

on quality, based on the participation of all its
members and aiming at long term success through
customer satisfaction and benefits to all members
of the organization and society.
A fundamental concept of TQM from BS 7850

A Process- A set of inter-related resources and activities which

transform inputs into outputs. (ISO 8402)

The Simple Process- Any activity that accepts inputs, adds values
to these inputs for customers, and produces outputs for these
customers. The customers may be either internal or external to
the organization. (BS 7850)

Controls

Inputs Process Outputs

Resources
Recognizing and rewarding Quality
Promotion of high quality goods and services

Deming Prize - 1951(Japan)- aims to achieve

organizational quality
Malcolm Baldrige National Quality Award (MBNQA)-1987
(United States)- aims to achieve organizational performance
via business results, because American firms demand that
TQM must have an impact on business results such as profit,
market share, sales, and revenue
European Quality Award -1992(European Union)- aims to
achieve business excellence
ISO9000 certification 1987 - aims to set up quality system in
organizations
Baldrige Excellence Framework
In the United States, the Baldrige Award,
created by Public Law 100-107,annually
recognizes American businesses, education
institutions, health care organizations, and
government or nonprofit organizations that
are role models for organizational performance
excellence.

Organizations are judged on criteria from 7

categories:
Leadership
Strategy
Customers
Measurement, analysis, and knowledge management
Workforce
Operations
Results
Total Quality Management (TQM)
It 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.

As a current focus of e- business, TQM is based on quality

management from the customer's point of view.

There are approximately 350,000 ISO 9000-certified

organizations in over 150 countries.

The Technical Committee (TC) behind ISO 9000 is TC 176.

Implementing TQM approach come from the teachings of such
quality leaders as-

Philip B. Crosby

W. Edwards Deming

Armand V. Feigenbaum

Kaoru Ishikawa

Joseph M. Juran

History began initially as a term coined by the Naval Air Systems

Command to describe its Japanese-style management approach
to quality improvement.
1920s- Start of quality management as the principles of scientific management swept
through U.S. industry.

1930s-Walter Shewhart developed methods for statistical analysis and control of quality.

1950s-W. Edwards Deming taught methods for statistical analysis and control of quality to
Japanese engineers and executives.

Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.

Armand V. Feigenbaums book Total Quality Control, a forerunner for the present
understanding of TQM, was published.

Philip B. Crosbys promotion of zero defects paved the way for quality improvement in
many companies.

1968- Kaoru Ishikawas synthesis of the philosophy contributed to Japans ascendancy as a

quality leader.

Today- Quality standards ISO 9000 series and quality award programs -Deming Prize and
the Malcolm Baldrige National Quality Award specify principles and processes that
comprise TQM.
 Demings 14 Points on Quality Management
1. Create constancy of purpose for improving products and services.

2. Adopt the new philosophy.

3. Cease dependence on inspection to achieve quality.

4. End the practice of awarding business on price alone; instead,

minimize total cost by working with a single supplier.

5. Improve constantly and forever every process for planning,

production and service.

6. Institute training on the job.

7. Adopt and institute leadership.

Demings 14 points on Quality Management
9. Drive out fear.

10. Break down barriers between staff areas.

11. Eliminate slogans, exhortations and targets for the workforce.

12. Eliminate numerical quotas for the workforce and numerical

goals for management.

13. Remove barriers that rob people of pride of workmanship, and

eliminate the annual rating or merit system.

14. Institute a vigorous program of education and self-improvement

for everyone. Put everybody in the company to work
accomplishing the transformation.
The Primary Elements of TQM
Seven principles - Gerald F. Smith Quality Problem Solving-

(i) Strive the quality in all things.

(ii) The customer is the criterion of quality.

(iii) Improve the process or system by which products are produced.

(iv) Quality improvement is continuous and never ending activity.

(v) Workers, involvement is essential.

(vi) Ground decisions and actions in knowledge.

(vii) Encourage team work and co-operation.

Five Principles of TQM to exceed
customer expectations:

Produce quality work the first time

Focus on the customer

Have a strategic approach to

improvement

Improve continuously

Encourage mutual respect and

teamwork
According to Certified Manager of Quality/Organizational Excellence
Handbook following are the direct and indirect benefits , TQM can offer
organizations:

Strengthened competitive position

Adaptability to changing or emerging market conditions and to
environmental and other government regulations
Higher productivity
Enhanced market image
Elimination of defects and waste
Reduced costs and better cost management
Higher profitability
Improved customer focus and satisfaction
Increased customer loyalty and retention
Increased job security
Improved employee morale
Enhanced shareholder and stakeholder value
Improved and innovative processes
Five Strategies To Develop the TQM Process

Strategy 1: The TQM element approach(1980s)

Quality circles, statistical process control, Taguchi methods, quality function
deployment

Strategy 2: The guru approach

Managers might study Demings 14 points

Strategy 3: The organization model approach (Late 1980s)

Initial recipients of the Malcolm Baldrige National Quality Award

Strategy 4: The Japanese total quality approach

Florida Power and Light won the Deming Prize

Strategy 5: The award criteria approach

Deming Prize, European Quality Award,
or Malcolm Baldrige National Quality Award, to identify areas for
improvement
Total Quality Management (TQM) Tools-
Help organizations to identify, analyze and assess qualitative and
quantitative data that is relevant to their business.

Each of which can be examined and used to enhance the

effectiveness, efficiency, standardization and overall quality of
procedures, products or work environment, in accordance with ISO
9000 standards (SQ, 2004).
TQM tools illustrate and aid in the assimilation of complicated
information such as:

1) Identification of your target audience

2) Assessment of customer needs
3) Competition analysis
4) Market analysis
5) Brainstorming ideas
6) Productivity changes
7) Various statistics
8) Staff duties and work flow analysis
9) Statement of purpose
10) Financial analysis
11) Model creation
12) Business structure
13) Logistic analysis
1- Pareto chart
2- Histogram
3- Fish Bone
4- Flow Chart
5-Check points
6- Scatter Diagram
7- Control Charts
1- Activity Network Diagram
2- Affinity diagram
3- Interrelationship Diagram
4- Matrix Diagram
5- Priorities Matrix
6- Process Decision
7- Tree Diagram
1- Root cause analysis
2- Five Whys
3- PDCA-PDSA
4- SIPOC
5- FMEA
1- Creative thinking
2- Brainstorming
3- Mind Mapping
4- Analogies
5- Lateral thinking
6- Triz
7- SCAMPER
1- Anova
2- balanced-scorecard
3- Capability
4-Chi-Square
5-Kanban
6-Level-Mix
7-Mistake-proofing
8-OEE
9-One-Piece-Flow
10-Priorities-matrix
11-Quick-Changeover
12-project-selection
13-Regression
14-SMED
15-Spaghetti
16-Standard-Work
17-Statistical-Process-Control
18-Takt-Time
19-Total-Productive-Maintenance
20- value-stream-mapping
21- CAPA
SWOT-

It focuses on the internal strengths and weaknesses of you, your staff, your
products, and your business

At the same time, it looks at the external opportunities and threats that may
have an impact on your business, such as market and consumer trends, changes
in technology, legislation, and financial issues

It is a good way to better understand a business and its markets

The essence of the SWOT analysis is to discover

What you do well

How you could improve

Whether you are making the most of the opportunities around you

Whether there are any changes in your market such as -

Technological developments,

Mergers of businesses,

Unreliability of suppliersthat may require corresponding

changes in your business.
Benchmarking

It is the process of comparing the cost, cycle time,

productivity, or quality of a specific process or method
to another that is widely considered to be an industry
standard or best practice.

It provides a snapshot of the performance of your business and helps you

understand where you are in relation to a particular standard.

Also referred as "best practice benchmarking" or "process benchmarking-

process used in management and particularly strategic management, in which
organizations evaluate various aspects of their processes in relation to best
practice, usually within a peer group defined for the purposes of comparison.

This then allows organizations to develop plans on how to make improvements

or adopt best practice, usually with the aim of increasing some aspect of
performance.
Benchmarking is often treated as a continuous process in which organizations
continually seek to challenge their practices.
Types of benchmarking
1) Process benchmarking

2) Financial benchmarking

3)Performance benchmarking

4) Product benchmarking

5)Strategic benchmarking

6)Functional benchmarking
The 5 requirements for effective leadership
Developing and publishing corporate beliefs,
values and objectives, often as a mission
statement

Personal involvement and acting as role models for a culture of

total quality

Developing clear and effective strategies and supporting plans

for achieving the mission and objectives.

Reviewing and improving the management system

Communicating, motivating and supporting people and

encouraging effective employee participation
Advantage of TQM:
01.Improves reputation- faults and problems are spotted and sorted
quicker.
02.Higher employee morale- workers motivated by extra responsibility,
team work and involvement in decisions of TQM
03.Lower cost decrease waste as fewer defective products and no need
for separate.
04.Quality control inspector

Disadvantage of TQM:
01.Initial introduction cost.

02.Benefits may not be seen for several years.

03.Workers may be resistant to change.

Total Quality Management in Pharmaceuticals
Implementation of an effective quality assurance policy
is the most important goal of pharmaceutical industry.

The concept of quality assurance and quality control

together develops towards assuring the quality, safety
and efficacy of pharmaceutical products.

Thus, quality is critically important ingredient to organizational success

today which can be achieved by total quality management (TQM), an
organizational approach that focuses on quality as an over arching goal,
aimed at the prevention of defects rather than detection of defects.

It is a philosophy and practice of integrative quality management

system adopted worldwide in pharmaceutical industries along with other
regulatory requirements.
Eight dimensions of quality Organizational success
1.Performance: Products primary operating characteristics.

2. Features: Supplements to a products basic functioning

characteristics.

3. Reliability: A probability of not malfunctioning during a specified

period.

4. Conformance: The degree to which a products design and operating

characteristics meet established standards.

5. Durability: A measure of product life.

6. Serviceability: The speed and ease of repair.

7. Aesthetics: How a product looks, feel, tastes and smells.

8. Perceived quality: As seen by a customer.

 TQM- Review of Pharmaceutical Industries

1. Sudhanshu Bala Singh & Dr. R. S. Dhalla-

Surveyed and reviewed various Quality Management practices
including ISO implementation in Indian pharmaceutical industries
to explore the relationship between Total Quality Management
practices & performance of the company.
It also attempts to identify and analyze the significant factors
affecting Total Quality Management implementation in Indian
Pharmaceutical Industries.
Another concept of TQM is continuous improvement or KAIZEN- A
regular habit of thinking new ideas.
There are two approaches adopted by the companies for
continuous improvement:
a. The PDCA cycle: Plan-Do-Check-Act and
b. Benchmarking
2. Motwani et al. (1994) conducted a study-

To identify the degree to which quality management practices were

present in Indian manufacturing organizations.

The study showed that the modern concepts of quality management

were practiced by the large Indian manufacturing organizations.

Quality certification is becoming an acceptable way of enforcing quality

concepts in India.

According to a 1995 survey (Confederation of Indian Industries, 1995)

among ISO 9000 certified companies, 54 % of 330 respondents stated
that there had been an improvement in their product and process quality
after obtaining certification.
3. Gupta A. conducted study on-

Quality Management Practices of ISO vs non- ISO organizations in

India suggest that ISO and non- ISO organizations do differ in their
quality management practices.

ISO 9000 registered manufacturing organizations in this study had

formal commitment to quality management.
4. Relationship of Total Quality Management With
Companys performance in Indian Pharmaceutical
Industries- (Sudhanshu Bala Singh & Dr. R. S. Dhalla )

An attempt has been made to survey and review the Quality

Management Practices including ISO implementation, and further
analyze the significant factors affecting the implementation of TQM
in Indian pharmaceutical industries.

1. The questionnaire used in the works of Kakkar and Narang

(2007) was modified and customized to the specific
requirements of the Indian Pharmaceutical Industry.

2. This questionnaire was circulated to select respondents in the

Indian pharmaceutical industry as part of the pilot study.

3. Based on the responses received in the pilot study, the main

factors affecting the implementation of TQM were:
Top Management Commitment
Leadership
Quality Management
People Management and Training
Customer Focus
Supplier Quality
5. S. Poongothai et als survey
Two generic drug manufacturing companies situated within Chennai
(Orchid chemicals and Pharmaceuticals Ltd & Madras Pharmaceuticals Ltd.)
on the road to TQM implementation were chosen and responses from 100
employees from top management to the lowest level were collected.

Pearsons correlation- to study the effect of TQM principles on some of its

well known recompenses.

On analysis of the views of the respondents, it was shown that the TQM
principles and its effects have direct correlation with each other.

Conclusion was
TQM encourages participation amongst all the employees and
customers.
Using quality management, rework reduction to nearly zero is an
achievable goal.
The negative cost of quality, which includes errors, delays, rework, etc., is
estimated to be 30 % of the cost of construction, not including dissatisfied
customers who do not come back.
There is high correlation between TQM principles such as training for
process improvement, supplier management with reduced number of
defects, cost of production and employee morale.
Total Quality Management Resources
BOOKS
The Certified Manager of Quality/Organizational Excellence Handbook, Fourth Edition
From Quality to Business Excellence: A Systems Approach to Management
Juran, Quality, and a Century of Improvement
Insights to Performance Excellence 2013-2014
STANDARDS
ANSI/ISO/ASQ Q9001-2008: Quality management systems Requirements
ANSI/ISO/ASQ QE19011S-2008: Guidelines for management systems auditing U.S. Version
with supplemental guidance added
CERTIFICATION
Manager of Quality/Organizational Excellence Certification CMQ/OE
COURSES
Quality 101
Introduction to Quality Management
Certified Manager of Quality/Organizational Excellence Certification Preparation
ARTICLES
A Comprehensive Approach to Quality Aims at Inclusive Growth: Continual Improvement as a
Management Imperative OPEN ACCESS
Adapting TQM to Change Indian Bureaucracy: A View From Inside
Guru Guide OPEN ACCESS
Total Quality, Total Commitment OPEN ACCESS
TQM and Teamwork Effectiveness: The Intermediate Role of Organizational Design
References
1. http://asq.org/Knowledge-centre

2. Principles of Total Quality Management in Small Business Environment, John T.

Williams, Demand Media

3. Sudhanshu Bala Singh , Dr. R. S. Dhalla, Effect of Total Quality Management on

Performance of Indian Pharmaceutical Industries, Proceedings of the 2010
International Conference on Industrial Engineering and Operations Management.
Dhaka, Bangladesh, January 9 10, 2010.

4. Asian Journal of Biochemical and Pharmaceutical Research Issue 2 (Vol. 1)

2011,Total Quality Management: The Path for Continuous Quality Enhancement In
Pharmaceutical Sector, S. Poongothai R. Ilavarasan L. Karthikeyan S.Arul