191ME71

TOTAL QUALITY MANAGEMENT

To understand the various principles, practices of TQM to achieve quality and to learn the various
statistical approaches for Quality control.
Course Outcomes:
The students will be able to:
CO1. Know the basics of TQM
CO2. Understand the principles of TQM
CO3. Improve their workplace with the help of 5S
CO4. Learn the six sigma and bench marking techniques
CO5. Familiarize Quality circles and QFD
CO6. Study the various quality systems
UNIT 1 - EVALUATION OF TQM
• Introduction
• – Need for quality
• – Evolution of quality
• – Definition of quality
• – Dimensions of manufacturing and service quality
• – Basic concepts of TQM
• – Definition of TQM
• – TQM Framework
• – Contributions of Deming, Juran and Crosby
• – Barriers to TQM
 Total Quality Management (TQM)
Antecedents of Modern Quality
Management
The Industrial Revolution
 Guilds of Medieval Europe (From the end of 17th Century to
(From the end of 13th Century to Early 19th Century)
1800s)
 The Industrial Revolution
(From the end of 17th Century to 1800s)
Craftsmanship
 The World War II
(From 1938 to 1945)
The Factory System
 Post World War Era
(After 1945)
The Taylor System
 Definitions of Quality

Quality means different to different people:

1. Customer-Based: Fitness for use, meeting customer expectations.

2. Manufacturing-Based: Conforming to design, specifications, or requirements. Having no

defects.

3. Product-Based: The product has something that other similar products do not that adds
value.

4. Value-Based: The product is the best combination of price and features.

5. Transcendent: It is not clear what it is, but it is something good...

 Quality - Definitions

• Quality is excellence that is better than a minimum

standard.
• It is conformance to standards and ‘fitness of
purpose’
• ISO 9000:2000 definition of quality- It is the
degree to which a set of inherent characteristics
fulfills requirements.
• Quality is ‘ fitness for use ‘ of the product –Joseph
Juran.
 Quality and customer expectations
• Quality is also defined as excellence in the product or
service that fulfills or exceeds the expectations of the
customer.
• There are 9 dimensions of quality that may be found in
products that produce customer-satisfaction.
• Though quality is an abstract perception, it has a
quantitative measure-
•
• where Q = quality, P = Performance(as measured by the
Manufacturer), and E = Expectations( of the customer).
• Quality is not fine-tuning your product at the final
stage of manufacturing,before packaging and
shipping .
• Quality is in-built into the product at every stage
from conceiving –specification & design stages to
prototyping –testing and manufacturing stages.
• TQM philosophy and guiding principles continuously
improve the Organisation processes and result in
customer satisfaction.
Needs for Quality
• Customer satisfaction and happiness
• Goodwill (image of the organisation) and high productivity
• Capturing the market
• Minimising the cost as well as losses
• Maximising the profit
• Recognising the role of everyone in the organisation
• Fixing a common goal for the entire organisation
• Emphasising teamwork among the staff
• Establishing performance measures for the employees
• Betterment of employees
• Increased viability.
Need / Importance for quality
• Producing superior quality products / service is vital to the continued
growth success of a company, therefore benefits of quality are given
below.
• 1. It gives a positive company image
• 2. It improves competitive ability both nationally and internationally
3. It increases market share, which translates into improved profits
• 4. Overall it reduces costs which also results in profits
• 5. It reduces problems & avoids unnecessary costs
• 6. It creates an atmosphere for high employee morale, which
improves productivity .
Evolution of Quality
Companywide quality control

08/08/2023
Sample Footer Text 11
 The Dimensions of Quality
Dimension Meaning and Example
Performance Primary product characteristics, such as the brightness of the
picture
Features Secondary characteristics, added features, such as remote
control
Conformance Meeting specifications or industry standards, workmanship
Reliability Consistency of performance over time, average time for the
unit to fail
Durability Useful life, includes repair
Service Resolution of problems and complaints, ease of repair
Response Human-to-human interface, such as the courtesy of the dealer
Aesthetics Sensory characteristics, such as exterior finish
Reputation Past performance and other intangibles, such as being ranked
first
 Service Quality
• Service can be defined as ‘any primary or Five key dimensions of service quality contribute to customer
complimentary activity that does not perceptions:
directly produce a physical product – that  Reliability: The ability to provide what was promised, dependably
is, the non-goods part of the transaction and accurately. Ex: providing
between buyer (customer) and seller error free invoices, making repairs correctly first time.
(provider).  Assurance: The knowledge and courtesy of employees, and their
ability to convey trust and
• Intangibility: inability to assess the confidence. Ex: ability to answer questions, having capability to do the
value gained from engaging in an activity necessary work, avoiding
using any tangible evidence possible fraud with the system of operations.
 Tangibles: The physical facilities of the equipment, and the
• Perish-ability: capacity cannot be stored
appearance of personnel. Attractive
for sale in the future. front office, well dressed employees, well designed forms etc.
• Inseparability: renders it impossible to  Empathy: The degree of caring and individual attention provided by
divorce the supply or production of the the customers. Ex:
service from its consumption. willingness to schedule deliveries at the customer’s convenience,
explaining technical jargon in a
• Variability: Differences in service in layman’s language.
terms of time and person.  Responsiveness: The willingness to help customers and provide
prompt service. Ex: acting
quickly to resolve problems, promptly crediting returned materials.
 Improving Service Quality

Organization: Customer Care: Communication:

1. Identify each market segment they 1. Meet the customers’ expectations 1. Optimize the trade-off between time and
are serving.
2. Get the customer’s point of view.
personal attention.
2. Write down the requirements. 2. Minimize the number of contact points
3. Deliver what is promised
3. Communicate the requirements
3. Provide pleasant, knowledgeable, and
4. Make the customer feel valued. enthusiastic employees.
4. Organise processes
5. Respond to all complaints 4. Write documents in customer-friendly
5. Organise physical spaces. language.
6. Over-respond to the customer
7. Provide a clean and comfortable customer
reception area.

Front Line People:

1. Hire people who like people
2. Challenge them to develop better methods
3. Give them the authority to solve the problems.
4. Serve them as internal customers
5. Be sure they are adequately trained.
6. Recognise and reward performance
 TQM Six Basic Concepts
1. A committed and involved management to provide long-term top-to-bottom organizational support.
• Management must participate in the quality program. A quality council must be established to develop a clear vision, set long-term goals, and direct the
program. Quality goals are included in the business plan. An annual quality improvement program is established and involves input from the entire work
force. Managers participate on quality improvement teams and also act as coaches to other teams. TQM is a continual activity that must be entrenched
in the culture—it is not just a one-shot program. TQM must be communicated to all people.
2. An unwavering focus on the customer, both internally and externally.
• An excellent place to start is by satisfying internal customers. We must listen to the “voice of the customer” and emphasize design quality and defect
prevention. Do it right the first time and every time, for customer satisfaction is the most important consideration.
3. Effective involvement and utilization of the entire work force.
• TQM is an organization-wide challenge that is everyone’s responsibility. All personnel must be trained in TQM, statistical process control (SPC), and other
quality improvement skills. Changing behavior is the goal. People must come to work not only to do their jobs but also how to improve their jobs.
People must be empowered at the lowest possible level to perform processes in an optimum manner.
4. Continuous improvement of the business and production process.
• Quality improvement projects, such as on-time delivery, order entry efficiency, billing error rate, customer satisfaction, cycle time, scrap reduction, and
supplier management, are good places to begin. Technical techniques such as SPC, benchmarking, quality function deployment, ISO 9000, and designed
experiments are excellent for problem solving.
5. Treating suppliers as partners.
• A partnering relationship rather than an adversarial one must be developed. Both parties have as much to gain or lose based on the success or failure of
the product or service. The focus should be on quality and life-cycle costs rather than price. Suppliers should be few in number so that true partnering
can occur.
6. Establish performance measures for the processes.
• Performance measures such as uptime, percent nonconforming, absenteeism, and customer satisfaction should be determined for each functional area.
These measures should be posted for everyone to see. Quantitative data are necessary to measure the continuous quality improvement activity.
Total Quality Management (TQM)
There are five ways of looking at quality definitions
I. Transcendent Definition:
"Quality is neither mind nor matter, but a third entity independent of the two…even through
Quality cannot be defined, you know what it is."
II. Product-Based Definition:
"Quality refers to the amounts of the unpriced attributes contained in each unit of the priced
attribute."
III. User-Based Definition:
"Quality is fitness for use." (J.M. Juran, ed., Quality Control Handbook, p2).
IV. Manufacturing-Based Definition:
"Quality [means] conformance to requirements." "Quality is the degree to which a specific
product conforms to a design or specification."
V. Value-Based Definition:
"Quality means best for certain customer conditions. These conditions are (a) the actual use
and (b) the selling price of the product."
 What is TQM?
 TQM is the enhancement to the traditional way of doing business.
 It is a proven technique to guarantee survival in the world-class competition.
 TQM is for the most part common sense.
 Analyzing three words (TQM), we have:
Total—Made up of the whole
Quality—Degree of excellence a product or service provides
Management—Act, art, or manner of handling, controlling directing, etc.

 Therefore TQM is the art of managing the whole to achieve the excellence.
What is TQM? (Continued)

 TQM is defined as both philosophy and a set of guiding principles that

represents the foundation of a continuously improving organization.

 It is the application of quantitative methods and human resources to

improve all the processes within an organization and exceed customer
needs now and in future.

 TQM integrates fundamental management techniques, existing

improvement efforts, and technical tools under disciplined approach.
 Total Quality Management (TQM)
In trying to define TQM is it is well worth considering the relevance and meaning of the three words in it's
title.:

Total - The responsibility for achieving Quality rests with everyone a business no matter what their
function. It recognizes the necessity to develop processes across the business, that together lead to the
reliable delivery of exact, agreed customer requirements. This will achieve the most competitive cost
position and a higher return on investment.

Quality - The prime task of any business is to understand the needs of the customer, then deliver the
product or service at the agreed time, place and price, on every occasion. This will retain current
customers, assist in acquiring new ones and lead to a subsequent increase in market share.

Management - Top management lead the drive to achieve quality for customers, by communicating the
business vision and values to all employees; ensuring the right business processes are in place; introducing
and maintaining a continuous improvement culture.
TQM Framework
Benefits of TQM:
• Improved quality
• Employee participation
• Team work
• Working relationship
• Customer satisfaction
• Employee satisfaction.
• Increased productivity
• Communication]
• Profitability
• Increased market share
The Quality Gurus (cont’d)
• W. Edwards Deming
• Advocated Statistical Process Control (SPC)
• Methods which signal shifts in a process that will likely lead to products and/or services not
meeting customer requirements.
• Emphasized an overall organizational approach to managing quality.
• Demonstrated that quality products are less costly than poor quality products.
• Identified 14 points critical for improving quality.
• The Deming Prize
• Highest award for industrial excellence in Japan.
 The Deming philosophy
• “A System of Profound Knowledge”
1. Appreciation for a system - A system is a set of functions or activities within an
organization that work together to achieve organizational goals. Management’s
job is to optimize the system. (not parts of system, but the whole!). System
requires co-operation.
2. Psychology – The designers and implementers of decisions are people. Hence
understanding their psychology is important.
3. Understanding process variation – A production process contains many sources
of variation. Reduction in variation improves quality. Two types of variations-
common causes and special causes. Focus on the special causes. Common
causes can be reduced only by change of technology.
4. Theory of knowledge – Management decisions should be driven by facts, data
and justifiable theories. Don’t follow the managements fads!

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 Deming’s 14-Point Program for Improving Quality
1. Create constancy of purpose for improvement of product and service.
2. Adopt the new philosophy.
3. Cease dependence on mass inspection.
4. End the practice of awarding business on the price tag alone.
5. Improve constantly and forever the system of production and training.
6. Institute training.
7. Institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations, and targets for the workforce.
11. Eliminate numerical quotas.
12. Remove barriers to pride in workmanship.
13. Institute a vigorous program of education and retraining.
14. Take action to accomplish the program.
The Quality Gurus (cont’d)
• Joseph M. Juran
• Emphasized the importance of producing quality products through an approach focused on
quality planning, control, and improvement.
• Defined product quality as “fitness for use” as viewed by the customer in:
• Quality of design • Quality of conformance
• Availability • Safety • Field use
• Categorized the cost of quality as:
• Cost of prevention
• Cost of detection/appraisal
• Cost of failure
The Juran philosophy
• Pursue quality on two levels:
1. The mission of the firm as a whole is to achieve high product quality.
2. The mission of each individual department is to achieve high production
quality.

• Quality should be talked about in a language senior management understands:

money (cost of poor quality).
• At operational level, focus should be on conformance to specifications through
elimination of defects- use of statistical methods.

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The Juran philosophy

Quality Trilogy –
1. Quality planning: Process of preparing to meet quality goals. Involves
understanding customer needs and developing product features.
2. Quality control: Process of meeting quality goals during operations. Control
parameters. Measuring the deviation and taking action.
3. Quality improvement: Process for breaking through to unprecedented levels of
performance. Identify areas of improvement and get the right people to bring
about the change.

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 The Crosby philosophy
• Philip Crosby
• Preached that “quality is free.”
• Believed that an organization can reduce overall costs by improving the overall quality of its
processes.
Absolute’s of Management
• Quality means conformance to requirements not elegance.
• There is no such thing as quality problem.
• There is no such thing as economics of quality: it is always cheaper to do the job right the first
time.
• The only performance measurement is the cost of quality: the cost of non-conformance.
Basic Elements of Improvement
• Determination (commitment by the top management)
• Education (of the employees towards Zero Defects (ZD))
• Implementation (of the organizational processes towards ZD)

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Three of the Quality Gurus Compared
Three of the Quality Gurus Compared (cont’d)
Three of the Quality Gurus Compared (cont’d)
 Obstacles / Barriers to Implementation of TQM

• Lack of Management Commitment

• Inability to Change Organizational Culture
• Improper Planning
• Lack of Continuous Training and Education
• 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 and Teamwork
• Failure to Continually Improve