Course Manual

Development of Productivity Practitioners:

Basic Program
A Self-Paced eLearning Course
(Foundation for Certification of Productivity Practitioners)
 Module 6 – Introduction to Total
Quality Management (TQM)

Introduction to
Total Quality Management (TQM)
This module allows you to gain a basic appreciation of TQM
as the next higher level in the productivity and quality
improvement journey.

Please note that as a potential Productivity Practitioner,

you are encouraged to take on a higher and more strategic
role for quality.
 Module 6 – Introduction to Total
Quality Management (TQM)

Learning Objectives
At the end of the module, participants will be able to:

1. Define Total Quality Management (TQM)

2. Cite the principles of TQM
3. Relate TQM as an integrating framework for productivity and
quality improvement
4. Explain the Business Excellence Framework and its 7 TQM -
aligned standards/categories as a tool for organizational
performance assessment
 Module 6 – Introduction to Total
Quality Management (TQM)

Outline
• Concept and Principles of Total Quality Management
(TQM)
• TQM as Integrating Framework for Productivity
& Quality Improvement
• TQM-aligned Standards of the Business Excellence
(BE) Framework
 Module 6 – Introduction to Total
Quality Management (TQM)

Concept and Principles of

Total Quality Management (TQM)
 What is TQM?

A managerial approach centered on quality,

based on participation of all members and
aiming at long term success through customer
satisfaction and benefits to all stakeholders of
the organization.

• Adapted from ISO

Guidelines
 What is TQM?

A holistic quality management framework

that:
– fosters continuous improvement in an
organization
– focuses on a systematic, integrated, consistent
organization-wide perspective involving
everyone as underlying philosophy
– focuses on total customer satisfaction (Internal
and External)
 TQM Principles & Core Concepts
Principles Core Concepts
Customer Satisfaction,
Delight the Customer Internal Customers are real
All work is a Process,
Management by Fact Measurement is key
People-based Team work,
Management People make Quality
Continuous Continuous Improvement
Improvement Cycle; Prevention of and
Finding Solutions to Problems
Top Management Leadership drives Quality
Commitment
 TQM Principles & Core Concepts

Principle 1: Delight the customer

This means that the organization goes beyond just
satisfying the expectations of its customers.

• It does not only meet explicit requirements of

customers which is conformance
• It also meets implicit requirements which is total
satisfaction
 TQM Principles & Core Concepts

Principle 1: Delight the customer

• It deals with both external and internal customers.
− External customers: the ultimate users of the products
or service
− Internal customers: the persons or processes affected by the
products or service

• The approach to quality is: ‘next process is customer’

− Treat the next process as your customer. Do not send a

defective input, intermediate or final product to the next
process.
− Do not argue with customers, follow what they want as long
as it is reasonable.
 TQM Principles & Core Concepts

Principle 2: Management by Fact

This means that management decisions are based

on data, and factual information

• Measure all work processes that you manage

• Speak with data
• Take action based on facts
 TQM Principles & Core Concepts

Principle 3: People-Based Management

People make quality happen

• Everyone in the organization is responsible

for quality (top to bottom, and bottom-up)

• Teamwork is key to improve quality

 TQM Principles & Core Concepts

Principle 4: Continuous Improvement

Improving the way things are done at every level is
a way of life in the organization

• There is an institutionalized problem-solving

process using the PDCA framework

• People are engaged in preventing and finding solutions to

problems in the workplace

• Quality is given the highest priority

When there is an argument, Quality should be the arbiter
 TQM Principles & Core Concepts

Principle 5: Top Management Commitment

Quality starts at the Top

• Leadership must drive Quality

• Leaders should be role-models and practice
Quality themselves
 TQM as an Integrating Framework
for P&Q Improvement

Total Quality Management (TQM)

as an Integrating Framework
for Productivity & Quality Improvement
 TQM as an Integrating Framework
for P&Q Improvement

TQM provides a harmonized and integrated approach that

links together all improvement initiatives on Productivity
and Quality (P&Q) in an organization.

• It ensures that the improvement efforts are managed

well and sustained

• It brings P&Q improvement efforts to a higher level of

performance
 TQM as an Integrating Framework
for P&Q Improvement

• It facilitates:
− periodic assessment of the impact of P&Q
improvement efforts on the organization and
its customers
− analysis of results of the assessment leading
to identification of strengths and opportunities for
improvement (OFIs)
− replication of strengths or good practices in critical areas
in the organization and identification of counter measures
to properly address the OFIs
TQM-Aligned Standards of the Business
Excellence Framework

TQM-aligned Standards of the Business

Excellence (BE) Framework
 TQM is Business Excellence:
A Pathway toward
Organizational Transformation

Sustaining the gains of productivity and quality improvement of an organization can

be done strategically by aligning with the seven (7) standards or criteria categories
toward
organizational performance excellence.
 TQM is Business Excellence

TQM-aligned principles are translated

as standards of the Business Excellence
(BE) Framework which could be used
as a tool for organizational performance
assessment.
Many countries with National
Quality Awards (NQAs)
operationalize TQM through the
Business Excellence (BE)
Framework
• Joining NQA is a good opportunity for an
organization to understand its current
performance based on the seven (7)
Malaysia
standards or criteria categories of BE
 The Business Excellence Framework
A Systems Perspective
ORGANIZATIONAL PROFILE:
ENVIRONMENT, RELATIONSHIPS,
and CHALLENGES

5
2
Strategic Workforce
Planning Focus
7
1
Organizational
Leadership
Performance
Results
3 6
Customer and Process
People Focus Management

4
Measurement, Analysis, and Knowledge Management

based on the USA’s Malcolm Baldrige National Quality Award or MBNQA

 TQM-Aligned Standards of the
Business Excellence Framework
1.0 Leadership

1.1 1.2
1.2
1.1 Governance
Governanceand
andSocial
Social
Senior Leadership
Senior Leadership Responsibilities
(How
(Howdo
doyour
yoursenior
seniorleaders
leaders
Responsibilities
(How
(Howdo
doyou
yougovern
govern&&address
addressyour
your
lead?)
lead?) social responsibilities?)
social responsibilities?)

 Vision and Values  Organizational Governance

 Communication and  Legal and Ethical Behavior
Organizational  Support of Key Communities
Performance
 TQM-Aligned Standards of the
Business Excellence Framework
2.0 Strategic Planning

2.1
2.1 2.2
2.2
Strategy Development
Strategy Development Strategy
StrategyDeployment
Deployment
(How
(Howdo
doyou
youdevelop
developyour
your (How
(Howdo
doyou
youdeploy
deployyour
your
strategy?)
strategy?) strategy?)
strategy?)

 Strategy Development Process  Action Plan Development and

 Strategic Objectives Deployment
 Action (short-and longer-term)
Plans
 Key Human Resource Plans
 Key Performance Indicators
 Performance Projection
 TQM-Aligned Standards of the
Business Excellence Framework

3.0 Customer and Market Focus

3.2
3.2
3.1
3.1 Customer
Customer&&Market
Market
Customer
Customer&&Market
Market Relationships
Relationships&&
Sector Knowledge
Sector Knowledge Satisfaction
Satisfaction
(How (How
(Howdodoyou
youbuild
(Howdo
doyou
youobtain
obtaincustomer
customer build
&&market relationships,
relationships, manage&&
manage
market sector knowledge?)?)
sector knowledge
grow
growcustomer
customersatisfaction
satisfaction
and loyalty?)
and loyalty?)
 Customer Segments  Customer & Market Relationship
 Listening and Learning Strategies Building
 Keep Current with Market Needs and
 Accessibility and Complaint Management
Directions  Customer & Market Satisfaction
Determination
 Keep Current with Market Needs and
Directions
 TQM-Aligned Standards of the
Business Excellence Framework
4.0 Measurement, Analysis, and
Knowledge Management
4.2
4.2
Management
Managementofof
4.1 Information,
Information,Information
Information
4.1 Technology,
Measurement,
Measurement,Analysis,
Analysis, Technology,andand
and Knowledge
and Improvement ofof
Improvement Knowledge
Organizational
Organizational  Management of Information
Performance
Performance Resources
 Data & info availability & accessibility
 Performance Measurement  Hardware & software: reliable, secure &
user-friendly
- tracking daily operations, overall
organizational performance
 Data, Information and Knowledge
Management
- effective use of key comparative data  accuracy, integrity & reliability, timeliness,
security, & confidentiality
and information
 collection and transfer of workforce
 Performance Analysis, Review & knowledge
Improvement
 transfer of relevant knowledge from and to
customers, suppliers, partners, &
collaborators
- support senior leaders’ organizational  rapid identification, sharing &
performance review and strategic implementation of best practices
planning  assembly & transfer of relevant knowledge
for use in strat planning
 TQM-Aligned Standards of the
Business Excellence Framework
5.0 Workforce Focus

5.1
5.1 5.2
5.2
Workforce
Workforce Workforce
Workforce
Engagement
Engagement Environment
Environment
(How
(Howdo
doyou
youengage
engageyour (How
your (Howdo
doyou
youbuild
buildan
aneffective
effective
workforce to achieve
workforce to achieve &&supportive workforce
supportive workforce
organizational
organizational&&personal
personal environment?)
environment?)
success?)
success?)
 Workforce Capability &
 Workforce Enrichment
Capacity
 Workforce & Leader
Development  Workforce Climate
 Assessment of Workforce
Engagement
 TQM-Aligned Standards of the
Business Excellence Framework
6.0 Process Management

6.2
6.2
Work Process
Work Process
6.1
6.1 Management
Work Management&&
Work SystemsDesign
Systems Design Improvement
Improvement
(How
(Howdo
doyou
youdesign
designyour
your (How
work systems?) (Howdodoyou
youmanage
manage&&
work systems?) improve
improveyour
yourkey
key
organizational work
organizational work
processes?)
processes?)

 Core Competencies
 Work Process Management
 Work Process Design
 Work Process Improvement
 Emergency Readiness
 TQM-Aligned Standards of the
Business Excellence Framework
7.0 Results
7.2
7.2
7.1
7.1 Market 7.3
7.3
Service
Service Market&&Other
Other Financial
Financial &
& Field
Field
Customer-
Customer-
Outcomes
Outcomes Focused Performance
Performance
Focused Outcomes
Outcomes
Outcomes
Outcomes

Performance Levels, Trends and Comparative Data

7.4 7.5 7.6

7.6
7.4 7.5 Governance
Workforce-
Workforce- Process
Process Governance&&
Focused Effectiveness Social
Social
Focused Effectiveness Responsibility
Responsibility
Outcomes
Outcomes Outcomes
Outcomes Outcomes
Outcomes
 A Point for Reflection

As a member of my department, how do

I get myself engaged in the P&Q
improvement initiatives which are
integrated through TQM that will propel
my organization toward performance
excellence ?
 End of Module 6

Congratulations for finishing your lessons on

Module 6!

You are now ready to take the quiz to see how far
you have absorbed the content of this module.

There are 10 questions.

Please tick/encircle the letter of
the correct answer.
 End of Module 6
But wait…
You are encouraged to email to
[email protected]
if you have questions and/or points for clarification on
any of the lessons
taken up in this Module.
If none, you may now close Module 6
and proceed to the Module 6 Quiz
 Module 6 - Quiz
Multiple Choice: Choose the letter that you think corresponds to the correct answer.
1. Total Quality Management (TQM) principles 3. Productivity & quality brings an organization to the
include ____________. next level of performance through TQM. However, it
will not work well if________________.
a. a concept that does not foster
continuous improvement in the organization. a. not everyone is involved
b. a systematic, integrated, b. its primary focus includes satisfaction of internal
consistent organization-wide perspective & external customers
involving top management only. c. top management is less committed to set & fulfill
c. a primary focus on total customer strategies
satisfaction. (Internal and External) d. a only
d. not necessarily aligning with business e. a & c only
excellence standards.
4. National Quality Awards (NQAs) operationalize TQM.
e. None of the above
NQAs are based on the seven (7) criteria categories of
Business Excellence (BE) Framework. What is the title of
2. One principle of TQM is people-based criteria category no. 4?
management.
a. True a. Strategic Planning
b. False b. Customer and Market Focus
c. Uncertain c. Organizational/Business Results
d. Maybe d. Measurement, Analysis, and Knowledge
e. None Management
e. Leadership
 Module 6 - Quiz
Multiple Choice: Choose the letter that you think corresponds to the correct answer.
5. The criteria category of the BE Framework 7. Under TQM, P&Q improvement efforts
that requires satisfaction of an can be sustained through the basic
organization’s customers is__________. tools & techniques gearing-up for
business excellence.
a. 1 - Leadership a. True
b. 2 – Strategic Planning b. False
c. 3 – Customer & Market Focus c. Uncertain
d. 4 – Measurement, Analysis & KM d. Maybe
e. 5 – People e. None of the above

6. The TQM principle that requires “speaking 8. In applying TQM principle - ‘delight the
with data”. customer’, the approach to quality is
______________.
a. Management by fact a. Control quality during inspection
b. Continuous improvement b. Next process is customer
c. People-based management c. Build quality into the process
d. Top Management Commitment d. a only
e. Delight the Customer e. b & c only
 Module 6 - Quiz
Multiple Choice: Choose the letter that you think corresponds to the correct answer.

9. The BE Framework includes seven (7) 10. Work Process Management & Improvement is
components that serve as yardstick for likewise a critical aspect to consider in the
performance excellence except one of the assessment using the criteria categories of the BE
following: Framework. What is this category?

a. Strategic Planning a. Process Management

b. Business/Organizational Results b. Workforce Focus
c. Quality Management Systems c. Leadership
d. Customer & Market Focus d. Strategic Planning
e. Workforce Focus e. None of the above
 End of Module 6

After taking the quiz,

you are encouraged to What are my Top 3
reflect and answer Takeaways or my
the question on this slide.
Write your answer on your Most Significant
productivity journal. Learnings from this
module?