◄Extensive and structural management approach that focuses and continuous quality improvement of

product and services to continuous feedback.

Total Quality Management ◄An all inclusive and well thought-out means to organizational management that searches to advance
the quality of process, products, services, and culture through continuing minor changes in reply to
constant feedback
Total Whole, entire complete
Quality Standard, excellence
Management POSDICON (Planning ,Organizing, Staffing, Directing, Controlling)
1.Focus on Customer
2.Employee Involvement
3.Process Centered
4.Integrated System
5.Strategic and Systematic 8 TQM Principles
Approach
6.Decision Making based on facts
7.Communication
8.Continuous Improvement
◄Nonexistence of defect; Controlled process improvement; nonstop improvement of all systems
Quality
◄Focus on continuous process enhancement
5 Approaches to Quality Definition♦
1.Transcendent(tal outlook) ♦I can’t define it, but I know when I see it
2.Product-based ♦Observed as a quantifiable or measurable characteristic or attribute
3.User-based ♦Quality is an individual issue and products that best please their preferences
4.Manufacturing-based ♦Focused mainly with engineering and manufacturing practices "Conformance requirements"
5.Value-based ♦Costs and prices as well as the number of attributes
3 Types of Quality♦
♦Set characteristics that the product or service must minimally have to satisfy the requirements of the
1.Quality of Design (Before)
customer based on market research
2.Quality of Conformance(During) ♦Basically meeting the standards or user-base characteristics
3.Quality of Performance(After) ♦How sound the product functions or service performs when put to use
3 Quality Levels♦
1.Organizational Level ♦Revolve around its customers quality requirements
2.Process Level ♦Units of organization are categorized into functions(Marketing, Operations, Finance, HR)
3.Performance/Job/Task Design ♦Nearly all people desire to do high-quality work, but often times they are limited by systems that do
Level not support it.
5 Quality Paradigms♦
1.Custom-Craft Paradigm ♦Focus is on the product or service and performance should be exactly as what customer demands
2.Mas Production and Sorting
♦Focus in on product rate without direct involvement of the customer
Paradigm
3.Statistical Quality Control ♦Comparable to the mass production and sorting paradigm except that more emphasis is given to
Paradigm product process
4.Total Quality Management
♦Focuses on customers and suppliers in addition to mass production and statistical methods
Paradigm
5.Techno-Craft Paradigm ♦Socio-technical complement to custom-craft paradigm
Method that permits an organization to decide on the level to which its resources are used for activities
Cost Quality
that avoid poor quality
4 Quality-related activities that incur costs♦
1.Prevention Costs ♦Incurred to prevent or avoid failure problems
1.1.Product or service
☼Established for qualifications for inward bound materials, process, finished products, and services
requirements
1.2.Quality Planning ☼Drawing of plans for quality, reliability, operations, production, and inspection
1.3.Quality assurance ☼Planning and continuance of quality system
1.4.Training ☼Development, preparation, and continuance of programs
♦Associated with measuring and monitoring activities related to quality standards and performance
2.Appraisal Costs
requirements
2.1.Verification ☼Checking of inward bound materials, process setup, and products against contracted specifications
2.2.Quality Audits ☼Confirmation that the quality system is operating properly
2.3.Supplier Rating ☼Appraisal and endorsement of suppliers of product and services

3.Internal Failure Costs ♦Acquired to treat defects revealed earlier when the product or serviced is delivered to the customer

☼Performance of needless work or holding of stock as an outcome of errors, poor organization, or

3.1.Waste
communication
 3.2.Scrap ☼Faulty product or material that cannot be repaired, used or sold
3.3.Rework of rectification ☼Improvement of flowed materials or errors
3.4.Failure Analysis ☼Activity necessary to ascertain the reasons of internal product or service failure
4.External Failure Costs ♦Obtained to treat defects exposed by customers; fail to attain design quality standard
4.1.Repairs and Servicing ☼Both returned products and those in the field
4.2.Warranty Claims ☼Failed products that are replaced or services that are performed under guarantee
4.3.Complaints ☼All work and costs connected with the handling and servicing customer's complaints
4.4.Returns ☼Handling and investigation of discarded or recalled products
2 Main Components of Cost of Quality♦
1.Cost of Conformance ♦Cost of making available products or services based on required standards
2.Cost of non-conformance ♦Failure costs linked with a process not functioning based on required standards
Total costs acquired by investing in prevention of non-conformance to requirements and appraisal of a
Quality Costs
product
5 Primary Elements of TQM♦
1.Foundation ♦Entire process of TQM is build on strong foundation of ethics, integrity and trust
1.1.Ethics Combination of written and unwritten codes of principles
1.2.Integrity Consistency of actions, values, methods, measures, principles, expectation and outcome at work place
One of the most important factors necessary for implementation of TQM because it builds cooperative
1.3.Trust
environment
2.Building Bricks ♦Placed on a strong foundation to reach the roof of recognition
2.1.Leadership ☼Provides a direction to the entire process of TQM
2.2.Teamwork ☼Crucial element of TQM; Rather than working individually employees need to work in Teams
2.2.1.Problem Solving ►Temporary and formed to solve certain problems
2.2.2.Quality Improvement ►Temporary teams with the purpose of dealing with specific problems that often occur
2.2.3.Natural Work ►Consist of small groups of skilled workers who share tasks and responsibilities
2.3.Training ☼Employee need to be trained on TQM to become highly productive
3.Binding Mortar ♦Binds all the element together; Communication binds everything
3.1.Downward communication ☼Dominant form of communication in an organization
3.2.Upward communication ☼Flow of information takes place from the lower-level employees to the top level mgmt.
3.3.Sideways/lateral ☼Communication also takes place between various departments; breakdowns barriers between
communication departments
4.Roof Includes recognition which brings greater internal customer satisfaction
◄Final element of TQM
5.Recognition ◄Most important factor which acts as a catalyst and drives employees to work hard as a team and
deliver their lever best
8 Core concept of TQM♦
1.Customer Satisfaction ♦In order to meet customer requirements, it is imperative to listen to them and do what is agreed upon
♦Customer are not only external customers, but the people outside who are end user of a firm's
2.Internal Customer Satisfaction
products and services
3.All work is process ♦Another possible focal point of improvement is that of business process.
4.Measurement ♦In order to improve, one must first measure one's present performance
♦The idea of synergy in teamwork, where the whole is greater that the sum of its parts, is a key
5.Synergy in teamwork
concept in TQM
♦Most of the quality problems within an organization are not usually within the control of an individual
6.People make quality
employee
♦The continuous cycle of instituting customer requirements, meeting and measuring them, measuring
7.Continuous Improvement
success and continuing the improvement can be used both externally to stimulate quality improvement
8.Prevention ♦At the heart of TQM is the conviction that it is possible to achieve defect-free work most of a time

1.Creates a good corporate culture

2.Better reviews from customers 3 Benefits of TQM

3.Better performance from
employees
Starting over-throwing out all the thinking of how work was done and deciding how it can be best be
Reengineering
done now
Business Process
Reengineering sometimes called as?
Reengineering(BPR)