15 03 2021

March 2021
• Definitions of TQM
• Introduction to TQM
• Principles of TQM
 How will you satisfy the customers of a split
air-conditioning domestic unit manufacturer?
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 Customer satisfaction
• Product : Domestic refrigerator
• Type : Double door
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 Primary elements of TQM

• Total quality management can be summarized

as a management system for a customer-
focused organization that involves all
employees in continual improvement.
• It uses strategy, data, and effective
communications to integrate the quality
discipline into the culture and activities of the
organization.
 Elements of TQM
• 1. Customer-focused
• The customer ultimately determines the level of
quality.
• No matter what an organization does to foster
quality improvement—training employees,
integrating quality into the design process,
upgrading computers or software, or buying
new measuring tools—the customer determines
whether the efforts were worthwhile.
• 2. Total employee involvement
• All employees participate in working toward
common goals.
• Total employee commitment can only be obtained
after fear has been driven from the workplace, when
empowerment has occurred, and management has
provided the proper environment.
• High-performance work systems integrate
continuous improvement efforts with normal
business operations.
• Self-managed work teams are one form of
empowerment.
• 3. Process-centered
• A fundamental part of TQM is a focus on process
thinking.
• A process is a series of steps that take inputs
from suppliers (internal or external) and
transforms them into outputs that are delivered
to customers (again, either internal or external).
• The steps required to carry out the process are
defined, and performance measures are
continuously monitored in order to detect
unexpected variation.
4. Integrated system
• Although an organization may consist of many
different functional specialties often organized
into vertically structured departments, it is the
horizontal processes interconnecting these
functions that are the focus of TQM.
• Micro-processes add up to larger processes,
and all processes aggregate into the business
processes required for defining and
implementing strategy.
• Everyone must understand the vision,
mission, and guiding principles as well as the
quality policies, objectives, and critical
processes of the organization.
• Business performance must be monitored
and communicated continuously.
• An integrated business system may be modeled
after the Baldrige National Quality
Program criteria and/or incorporate the 
ISO 9000 standards.
• Every organization has a unique work culture, and
it is virtually impossible to achieve excellence in
its products and services unless a good quality
culture has been fostered.
• Thus, an integrated system connects business
improvement elements in an attempt to
continually improve and exceed the expectations
of customers, employees, and other stakeholders.
5. Strategic and systematic approach
• A critical part of the management of quality is the
strategic and systematic approach to achieving an
organization’s vision, mission, and goals.
• This process, called strategic planning or strategic
management, includes the formulation of a strategic plan
that integrates quality as a core component.
6. Continual improvement
• A major thrust of TQM is continual process improvement.
• Continual improvement drives an organization to be both
analytical and creative in finding ways to become more
competitive and more effective at meeting stakeholder
expectations.
7. Fact-based decision making
• In order to know how well an organization is performing,
data on performance measures are necessary.
• TQM requires that an organization continually collect and
analyze data in order to improve decision making accuracy,
achieve consensus, and allow prediction based on past
history.
8. Communications
• During times of organizational change, as well as part of day-
to-day operation, effective communications plays a large
part in maintaining morale and in motivating employees at
all levels.
• Communications involve strategies, method, and timeliness.
• Five Principles of TQM
• In order to exceed customer expectations, an
organization must embrace five principles:
1. Produce quality work the first time
2. Focus on the customer
3. Have a strategic approach to improvement
4. Improve continuously
5. Encourage mutual respect and teamwork
• Producing quality work (the first time) means
quality is built into the processes for
producing products or providing services, and 
continual improvement measures are taken to
ensure the processes work every time.
• Employees are empowered to make decisions
to improve a process and are provided with
continual training to develop their skills.
• Example
• The purchasing department at XYZ Travel evaluates
data on client purchases to determine which
packages are most popular with clients.
• This helps them to determine what stays and what
goes.
• The information technology technicians monitor
the website continually to assess whether clients
are just browsing or actually making purchases.
• The IT staff also evaluate how long a booking takes
to determine whether changes need to be made to
the check-out process.
• Focusing on the customer involves designing products or
services that meet or exceed the customer's expectations.
• This involves the product itself, its functionality, attributes,
convenience and even the means by which the information
about a product is received by a client.
• The marketing department is responsible to get the cyber-
word out to potential clients. Marketers use a wide variety
of media sources, like social networking, email and even
texting, to get the word out about XYZ Travel’s website.
• If they notice traffic is not moving toward the website or
that clients are not staying online long enough, they will
make strong suggestions to the IT department and the
research and development department to make changes
immediately.
• By having a strategic approach to improvement,
processes are developed and tested to ensure the
product or service's quality. This also involves making
sure suppliers offer quality supplies needed to produce
products.
• Improving continuously means always analyzing the way
work is being performed to determine if more effective
or efficient ways are possible, making improvements and
striving for excellence all the time.
• Encouraging mutual respect and teamwork is important
because it fosters a single-organizational culture of
excellence by knowing that every employee from top to
bottom of the hierarchy holds the same core principles at
heart.
 The Eight Elements of TQM

To be successful in implementing TQM, an organization

must concentrate on the eight key elements:
1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication
 Key Elements

1. Foundation –: Ethics, Integrity and Trust.

2. Building Bricks –: Training, Teamwork and
Leadership.
3. Binding Mortar :Communication.
4. Roof –Recognition.
• I. Foundation
1. Ethics – Ethics is the discipline concerned
with good and bad in any situation.
• It is a two-faceted subject represented by
organizational and individual ethics.
• Organizational ethics establish a business code
of ethics that outlines guidelines that all
employees are to adhere to in the
performance of their work.
• Individual ethics include personal rights or
wrongs.
• 2. Integrity – Integrity implies honesty, morals,
values, fairness, and adherence to the facts and
sincerity.
• The characteristic is what customers (internal or
external) expect and deserve to receive.
• People see the opposite of integrity as duplicity.
• TQM will not work in an atmosphere of
duplicity.
3. Trust – Trust is a by-product of integrity and ethical
conduct.
• Without trust, the framework of TQM cannot be built.
• Trust fosters full participation of all members.
• It allows empowerment that encourages pride ownership
and it encourages commitment.
• It allows decision making at appropriate levels in the
organization, fosters individual risk-taking for continuous
improvement and helps to ensure that measurements
focus on improvement of process and are not used to
contend people.
• Trust is essential to ensure customer satisfaction. So, trust
builds the cooperative environment essential for TQM.
• II. Bricks
Basing on the strong foundation of trust, ethics and integrity, bricks are placed to
reach the roof of recognition. It includes:
• Training – Training is very important for employees to be highly productive.
• Supervisors are solely responsible for implementing TQM within their
departments, and teaching their employees the philosophies of TQM.
• Training that employees require are interpersonal skills, the ability to function
within teams, problem solving, decision making, job management performance
analysis and improvement, business economics and technical skills.
• Teamwork –. With the use of teams, the business will receive quicker and better
solutions to problems.
• Teams also provide more permanent improvements in processes and operations.
• In teams, people feel more comfortable bringing up problems that may occur,
and can get help from other workers to find a solution and put into place.
• Leadership: Leadership in TQM requires the manager to provide an inspiring
vision, make strategic directions that are understood by all and to instill values
that guide subordinates.
• III. Binding Mortar
Communication – It binds everything
together.
• Starting from foundation to roof of the TQM
house, everything is bound by strong mortar
of communication.
• The success of TQM demands communication
with and among all the organization members,
suppliers and customers.
• Communication includes, upward, downward
and sideways communication.
• IV. Roof
Recognition – Recognition is the last and final
element in the entire system. It should be
provided for both suggestions and achievements
for teams as well as individuals.
• Employees strive to receive recognition for
themselves and their teams.
• Detecting and recognizing contributors is the most
important job of a supervisor.
• As people are recognized, there can be huge
changes in self-esteem, productivity, quality and
the amount of effort exhorted to the task at hand.