Total Quality Management

Practices and Principles

INTRODUCTION TO TQM
What is TQM?
TQM is the integration of all functions and processes
within an organization in order to achieve
continuous improvement of the quality of goods
and services. The goal is customer satisfaction.
No doubt , humans are always deficient
(Al-Quran)

Total quality Management

(TQM)
Is an enhancement of traditional way of
doing business.
It is a proven technique to guarantee
survival in world-class competition.
It is for the most part of common-sense
It is defined as a set of philosophy and
a set of guiding principles that
represents the foundation of a
continuously improving organization

Total quality Management

(TQM)
It is the art of managing the whole to
achieve excellence
It is the application of quantitative
methods and human resources to
improve the overall process in the
organization and exceed customer
expectations in the near future.

TQM
Total = made up of the whole
Quality = Degree of excellence of a
product or
service
Management = act or manner of
handling,
controlling and
directing, etc..

Approach
TQM requires six basic concepts:
A committed and involved top
management to provide long-term
top to bottom organizational support
An unwaivering focus on the
customer both internally and
externally
Effective involvement and utilization
of the entire workforce

Approach
TQM requires six basic concepts:
Continuous improvement of the
business and production process
Treating suppliers as partners
Establish performance measures for
the process

New and Old Culture

Quality Element

Previous State

TQM

Definition

Product oriented

Customer Oriented

Priorities

Second to Service
and Cost

First among equals of

Service and Cost

Decision

Short-term

Long-term

Emphasis

Detection

Prevention

Errors

Operations

System

Responsibility

Quality Control

Everyone

Problem Solving

Managers

Teams

Procurement

Price

Life-Cycle Cost and

Partnership

Managers Role

Plan, Assign, Control

and Enforce

Delegate, Coach,
facilitate and mentor

Defining Quality
When we talk about quality we think of
a n excellent product or service that
fulfills or exceeds our expectations
Quality can be quantified as follows:

Q= P/E
Where: Q=Quality
P = Performance
E = Expectations

Defining Quality
If quality is greater than 1 then the
customer has a good feeling about
the product or service
The determination of P and E will
most likely be based on perception
with the organization determining
performance and the customer
determining expectations

Dimensions of Quality

Performance
Features
Conformance
Reliability
Durability
Service
Response
Aesthetics
Reputation

Performance
It is the primary product
characteristics
It is the main aspect of the product
that convinced the buyer to purchase
it
An example of this would be the
brightness of the picture of you
bought a TV set

Features
It is known as the secondary product
characteristic
An example would be the remote
control included to the package if
youre going to buy a tv set
Aside from that under the mobile
industry other features would be the
wifi, bluetooth, TV out and others

Conformance
It pertains to the compliance or
meeting the specifications of the
standards of the industry or
workmanship
For some companies before they sell
their product in the market it should
pass the ISO standards also known
as International Organization for
Standardization

Reliability
It is the consistency of performance
over time
It also pertains to the average time
before the unit fails or stop working
A good example of this one would be
the machineries being used in
factories they have a specific number
of years until they fail

Durability
It refers to the useful life of the
machine including the repairs
When its useful life is longer then it is
more durable
Another measure of this aspect
would be the known brands of
different product

Service
It is the resolution of problems and
complaints
It includes the service centers of the
products which allows the customers
to easily bring the defective product
or malfunctioned service

Response
It is all about the human to human
interface
It also includes the courtesy of the
service provider
Knowing how to interact with your
customer is the key aspect under this
area
Follow the golden rule: Do unto
others what you want others do unto
you

Aesthetics
It refers to the sensory
characteristics of the product
It includes the color, texture and
smell of the product that the
company is selling

Reputation
It is about the past performance of
the company which is a basis used
by the customer in purchasing the
product or service
Customers or buyers purchases
items that is being offered by known
companies rather than buying
unknown brands.

TOTAL QUALITY MANAGEMENT

MUST

KNOW CONCEPTS FOR Managers

The Three Quality Gurus

Deming:

the best known of the early pioneers, is

credited with popularizing quality control in Japan in early
1950s.Today, he is regarded as a national hero in that
country and is the father of the world famous Deming prize
for quality.

JURAN
Juran, like Deming was invited to Japan in
1954 by the union of Japanese Scientists and
engineers.
Juran defines quality as fitness for use in terms
of design, conformance, availability, safety
and field use. He focuses on top-down
management and technical methods rather than
worker pride and satisfaction.

Philip Crosby: author of popular book Quality is Free. His absolutes

of quality are:

Quality is defined as conformance to

requirements, not goodness
The system for achieving quality is
prevention, not appraisal.
The performance standard is zero defects, not
thats close enough
The measurement of quality is the price of
non-conformance, not indexes.

Commonality of Themes of Quality Gurus

Inspection is never the answer to quality improvement, nor
is policing.
Involvement of leadership and top management is essential
to the necessary culture of commitment to quality.
A program for quality requires organization-wide efforts
and long term commitment, accompanied by the necessary
investment in training.
Quality is first and schedules are second.

DIFINITION OF QUALITY
The concept and vocabulary of quality are elusive. Different people
interpret quality differently. Few can define quality in measurable
terms that can be proved operationalized. When asked what
differentiates their product or service;
The banker will answer service
The healthcare worker will answer quality health care
The hotel employee will answer customer satisfaction
The manufacturer will simply answer quality product

Five Approaches of Defining Quality

Harvard professor David Garvin, in his book
Managing Quality summarized five principal
approaches to define quality.

Transcendent
Product based
User based
Manufacturing based
Value based

Transcendental view
Those who hold the transcendental view would say I cant
define it, but I know it when I see it
Advertisers are fond of promoting products in these terms.
Where shopping is a pleasure (supermarket). We love to
fly and it shows" (airline).
Television and print media are awash with such indefinable
claims and therein lies the problem:
Quality is difficult to define or to operationalize. It thus
becomes elusive when using the approach as basis for
competitive advantage. Moreover, the functions of design,
production and service may find it difficult to use the
definition as a basis for quality management.

PRODUCT BASED
Quality is viewed as a quantifiable or measurable
characteristic or attribute. For example durability or
reliability can be measured and the engineer can design to
that benchmark.
Quality is determined objectively.
Although this approach has many benefits, it has limitation
as well. Where quality is based on individual taste or
preference, the benchmark for measurement may be
misleading.

USER BASED
It is based on idea that quality is an individual matter
and products that best satisfy their preferences are
those with the highest quality. This is rational
approach but leads to two problems;

Consumer preference vary widely and it is

difficult to aggregate these preferences into
products with wide appeal. This leads to the
choice between a niche strategy or a market
aggregation approach which tries to identify those
product attributes that meet the needs of the
largest number of consumers.

System
MANAGEMENT
OF PROCESS
QUALITY
Driver
SENIOR
EXECUTIVE
LEADERSHIP

HUMAN
RESOURCE
DEVELOPMENT
AND
MANAGEMENT
STRATEGIC
QUALITY
PLANNING

CUSTOMER
FOCUS
AND
SATISFACTION

QUALITY
AND
OPERATIONAL
RESULTS

INFORMATION
AND ANALYSIS

System Approach for TQM

MANUFACTURING BASED

Manufacturing-based
definitions
are
concerned primarily with engineering and
manufacturing practices and use the
universal definition of conformance to
requirements.
Requirements or specifications are
established by design and any deviation
implies a reduction in quality.

MANUFACTURING BASED

The concept applies to services as well as

product. Excellence in quality is not
necessarily in the eye of the beholder but
rather in the standards set by the
organization.
This approach has the serious weakness.
The consumers perception of quality is
equated with conformance and hence is
internally focused.

Value Based
It is defined in term of costs and prices as well
as number of other attributes. Thus, the
consumers purchased decision is based on
quality at an acceptable price. This approach is
reflected in the popular Consumer Reports
magazine which ranks products and services
based on two criteria: Quality and Value.
The highest quality is not usually the best
value. That designation is assigned to the
best- buy product or service.

Characteristics of TQM Leader

Visible, Committed and Knowledgeable

A Missionary Zeal
Aggressive Targets
Strong Drivers
Communication of Values
Organization
Customers Contact

Total Quality Organizations HRM

Five Principles are:
Quality Work the First Time
Focus on the Customer
Strategic Holistic Approach to Improvement
CI as a Way of Life
Mutual Respect and Teamwork

Customer Satisfaction
Three Part System
Human Resource
Management

Company Operations
(Processes)

Customer Expectations

Customer Satisfaction

Indicators for Customer Satisfaction

Frontline empowerment
Excellent hiring, training, attitude and morale for front line
employees
Proactive customer service system
Proactive management of relationship with customers
Use of all listening posts
Quality requirements of market segment
Commitment to customers
Understanding customer requirements
Service standards meeting customers requirements

Cost of Quality
Three Views of quality Costs

Higher quality means higher cost.

Quality attributes such as performance and features
cost more in terms of labor, material, design and other
costly resources.
The additional benefits from improved quality do not
compensate for additional expense.
The cost of improving quality is less than the
resulting savings.
The saving result from less rework, scrap and other
direct expenses related defects.
This is said to account for the focus on continuous
improvement of processes in Japanese firms.

Three Views of quality Costs

Quality costs are those incurred in excess of those
that would have been incurred if the product were
built or the service performed exactly right the first
time.
This view is held by adherents of TQM philosophy.
Costs include not only those that are direct, but also
those resulting from lost customers, lost market share
and the many hidden costs and foregone opportunities
not identified by modern cost accounting systems.

Quality Costs

COST OF QUALITY IS THE COST OF

NON QUALITY

1: 10:100 Rule
A stitch in time saves nine

Benefits of TQM

Greater customer loyalty

Market share improvement
Higher stock prices
Reduced service calls
Higher prices
Greater productivity

Conclusion
Remember the earth revolves around the
CUSTOMER. Quality begets customers and
customers beget quality. Let us all have action
plans to support quality, this will make the
world happy and earn us the blessing of God
Almighty.
Actions are direct reflection of ones
intentions (Al-Quran)

Who is Dr. Edward Deming

He is a protg of Dr. Walter
Shewhart who pioneered Statistical
Process Control (SPC) at Bell
Laboratories
He taught Statistical Quality Control
as a part of the wartime production
efforts SPC concepts and the
importance of quality to the leading
CEOs of Japanese industry

Demings 14 point theory

Create and Publish the aims of the organization

Learn the new philosophy
Understand the purpose of inspection
Stop awarding the business based on price
alone
Improve constantly and forever the system
Institute training
Teach and institute leadership
Drive out fear, create trust and create a climate
for innovation

Demings 14 point theory

Optimize the efforts of teams, groups and
staff areas
Eliminate exhortations for the work force
Eliminate numerical quotas for the workforce
Eliminate management by objective
Remove barriers that rob people of pride of
workmanship
Encourage education and self-improvement
for everyone
Take action to accomplish the transformation

Obstacles to TQM
accdg. To Robert J. Masters

Lack of Management
Commitment
Improper Planning
Inability to Change
Organizational Culture
Lack of Continuous Training and
Education

Obstacles to TQM
accdg. To Robert J. Masters

Incompatible Organizational
Structure and Isolated Individuals
and Departments
Ineffective Measurement
Techniques and Lack of Access to
data and Results
Paying Inadequate attention to
internal and external customers
Inadequate use of empowerment