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Total Quality Management (TQM)

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23 views16 pages

Total Quality Management (TQM)

Uploaded by

Qamar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Total Quality Management (TQM)

What is Quality ?
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...
Total Quality Management (TQM)
Quality means different to different people. 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.
Total Quality Management (TQM)
W Edwards Deming placed great importance and responsibility on management, at both the individual and
company level, believing management to be responsible for 94% of quality problems. His fourteen
point plan is a complete philosophy of management, that can be applied to small or large organizations
in the public, private or service sectors:

1. Create constancy of purpose towards improvement of product and service


2. Adopt the new philosophy. We can no longer live with commonly accepted levels of delay, mistakes
and defective workmanship
3. Cease dependence on mass inspection. Instead, require statistical evidence that quality is built in
4. End the practice of awarding business on the basis of price
5. Find problems. It is management’s job to work continually on the system
6. Institute modern methods of training on the job
7. Institute modern methods of supervision of production workers, The responsibility of foremen must
be changed from numbers to quality
8. Drive out fear, so that everyone may work effectively for the company
9. Break down barriers between departments
10. Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity
without providing methods
11. Eliminate work standards that prescribe numerical quotas
12. Remove barriers that stand between the hourly worker and their right to pride of workmanship
13. Institute a vigorous program of education and retraining
14. Create a structure in top management that will push on the above points every day
Eight (8) Principles of QM
 Customer focus
 Leadership
 People involvement
 Process approach
 System approach to management
 Continual improvement
 Factual approach to decision making
 Mutually beneficial supplier relationships
Principles of QM (continued)
 Customer focus
Organizations depend on their customers and therefore should
understand current and future customer needs, should meet
customer requirements and strive to exceed customer
expectations.

THE CUSTOMER IS ALWAYS RIGHT!


Principles of QM (continued)
 Leadership
Leaders establish unity of purpose and direction of the
organization.

• Leaders should create and maintain the internal environment in such


a way that people can become fully involved and committed in
achieving the organization's objectives.

TO BECOME A REAL LEADER, NOT JUST THE BOSS!


Principles of QM (continued)
 People Involvement
People at all levels are the essence of an organization and their
full involvement enables their abilities to be used for the
organization's benefit.

IT’S EVERYBODY’S BUSINESS. UNITY MAKES STRENGTH.


Principles of QM (continued)
 Process Approach
A desired result is achieved more efficiently when activities and
related resources are managed as a process.

PROCESS APPROACH IS BASED IN THE PDCA PRINCIPLE:


PLAN DO CHECK ACT
Principles of QM (continued)
 System Approach to Management
Identifying, understanding and managing interrelated processes
as a system contributes to the organization's effectiveness
and efficiency in achieving its objectives.
Principles of QM (continued)
 Continual Improvement
Continual improvement of the organization's overall
performance should be a permanent objective.

WE ARE GOOD... BUT WE CAN BE EVEN BETTER!


Principles of QM (continued)
 Factual Approach to Decision Making
Effective decisions are based on the analysis of data and
information.

WE BELIEVE IN PEOPLE... BUT MUCH MORE IN THE FACTS.


Principles of QM (continued)
 Mutually Beneficial Supplier Relationships
An organization and its suppliers are interdependent and a
mutually beneficial relationship enhances the ability of both
to create value.

ONE HAND WASHES THE OTHER... AND BOTH WASH THE BODY!

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