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Total Quality Management


Total Made up of the whole(or)

Complete. Quality Degree of Excellence a product or service provides to the customer in present and future. Management Act , art, or manner of handling , controlling, directing, etc. achieve excellence.

TQM is the art of managing the whole to

"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." Definition TQM is composed of three paradigms: Total: Organization wide Quality: With its usual Definitions, with all its complexities (External Definition) Management: The system of managing with steps like Plan, Organise, Control, Lead, Staff, etc.

Definition Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes.

TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.

Evolution of quality Era


TQC &CWQC TQC SQC Inspection Foreman Craftsman

1900 1920 1940 1960 1980 1990 2000 6

Evolution of quality Means & Focus

1975 1980 1985 1990 1995 2000

Productivity Quality Circle Quality of Work life


Total Quality


Employee Involvement

Self Self Directed Directed/Managed Teams Employees Teams Empowerment




Kanos Model

Umbrella Model of TQM



Quality Assurance ProblemSolving tools

Customer Satisfaction

Taguchi Methods

Basic Approach

A committed and involved management to provide long-term top - to - bottom organizational support. An unwavering focus on the customer, both internally and externally. Effective involvement and utilization of the entire work force.

Basic Approach

Continuous improvement of the business and production process. Treating supplier as partners.
Establish performance measures for the processes.


New and Old Cultures

Quality Element TQM

Definition -Product


Priorities -Service &Cost Quality Decisions- Short Long

12 Prevention

Emphasis- Detection

New and Old Cultures

ErrorsOperations System Responsibility- QC Every Body Problem Solving - Managers Teams Procurement- Price Partners/JIT Managers Role- Plan Delegate Assign Coach Enforce Mentor

Real Life

TQM has being implemented in TVS Group. Boeing Aircraft Reliance

Tata ITI



Gurus of TQM

Walter.A.Shewhart -TQC &PDSA W.Edwards Deming- 14 Points & PDCA Joseph.M.Juran-Jurans Trilogy A.Feiganbaum-Customer requirement,CWQC,Employee Involvement, TQC.

Gurus of TQM

Kaoru Ishikawa-Disciple of Juran & Feigenbaum. TQC in Japan, SPC, Cause &Effect Diagram,QC. Philips.B.Crosby. Four AbsolutesQuality-Req, Prevention of NC,Zero Defects & Measure of NC. Taguchi.G-Loss Function.


ISO 9000:2000 Quality is the degree to which a set of inherent characteristics fullfils requirements. Quantified Q=P/E P-Performance E-Expectations Joseph M. Juran Quality is fitness for use or purpose



Philips B
Quality is Conformance to requirements

W.Edwards Deming
A predictable degree of uniformity and dependability at low cost and suited to market


Dimensions of Quality
Product- TV
Performance - Primary Characteristics,such as brightness Features Secondary Characteristics,Remote Control Conformance-Meeting Specifications or Standards Reliability Consistency of Performance over time-fail Durability- Useful life ,include Repair. Service


Dimensions of Quality
Durability- Useful life ,include repair.

Service-Resolution of problems,ease of repair.

Response- Human relations with Customers.

Aesthetics-Sensory Features.

Reputation- Past performance, Company Image.


Quality Cost

Prevention Cost Planning, Document, Control, Training Appraisal Cost Inspection & Tests, Installation, Calibration, M/c Depreciation, Reports & Rejects. Internal Failure Cost Scraps, Repair Rework, Design Changes, Defect Failure Analysis, Retests & ReInspection, Downgrading, Down Time. External Failure Cost Complaints, Goodwill, Failures, Services & Replacement, Guarantee & Warranty, Compensation, Recall, Loss of Sales, Seconds Sales.

Economics of Quality of Conformance

Total Cost Prevention & Appraisal Cost

Optimum Total Cost

Internal & External Failure Cost


Top management commitment Changing Organization Culture

Improper planning Continuous Training & Education


Organization Structure & Departments

Datas & Facts For Effective Decisions

Internal & External CustomersDissatisfaction Empowerment & Teamwork Continuous Improvement

Improved Quality Employee Participation

Team Work
Internal & External Customer Satisfaction Productivity ,Communication

Profitability & Market Share



An olympic gold Nobel Prize The state of quality of excelling or being exceptionally good or of extreme merit


Companies which Excelled

Toyota Nippon Honda Sony Telco L&T Maruti Hero Honda



Provide outstanding products and services to customers? Bestow unparalleled benefits on employees Did they dominate competitors? Did their annual reports consistently display record growth and earnings?

Individuals not organisations create excellence Lead others along path of excellence Cultivate others who will later assume control


Foundations of Excellence

Strategic thinking(ST) and culture building(CB) Strategy is that approach to business that stresses the impact of competitive advantage Culture is careful attention to organizational and peoples need


To unite strategy and culture develop a vision of the firms functions To implement the strategy to make that vision a reality, nurture a corporate culture that is motivated by and dedicated to the vision Eg: Toyota : GM

Transform mediocre organisation into excellent ones Convert crisis into opportunity Shape vision into utility Executives- think strategically Build cultures creatively- not both simutaneously


ST and CB- How Do they Work?

ST- satisfy customer needs Gain sustainable advantage over competitors Capitalise on company strengths CB- instill collective commitment ot a common purpose foster distinctive competence among employees Establish consistency- helps attract, keep,develop leaders at all levels


Six fundamental skill 1. set goals, policies & procedures 2. organise, motivate and control people 3. analyse situations, formulate strategic and operational plans 4. respond to change through new strategies and reorganisation 5. implement change by issuing new policies and procedures 6. get results, growth, profitability and return on investment

New Skills

Creative insight Sensitvity Vision Versatility Focus Patience


Why Japancould do it, India couldnt

Quest for excellence Dedication to work principles Helped establish a culture of excellence No special advantage for Japanese- they simply examine a process of doing a jo, then try to improve it Quality is both thinking why something is done, why it is done this way, then thinking differently to improve it-Toyota

Factors of Excellence recap.

Strategy and culture are foundations of excellence To build excellent organisational culture, six new age skills-creative insight, sensitivity, vision, focus and patience needed creativity and innovation are other essential features of excellent organisations



Excellent organisations are adaptive to innovative changes Recognition and reward are people oriented in these org. Team work and group activities MBWA with employees and customers Believe in Quality Excellent org. are TQM oriented

Poor Quality leads to

Low customer satisfaction and low market share Low productivity, revenue and profit Low morale of work force More rework, material and labour costs High process bottlenecks, delay in product shipment High analysis and repair costs high material wastage and scrap high inspection costs

What is Quality?

Quality, cost and Productivityfundamental concerns of management world wide Q of products and services Org. which manage productivity and q on a continuous basis able to compete in the long run


New concept of quality calls for.

Well designed products with functional perfectionright the first time Prompt satisfaction of customers expectation Excellence in service absolute empathy with customers Customer satisfaction---- delight


Evolution of Quality

Developed from operators inspection(1900) to verification by supervisors (1920) QC departments and 100% inspection (1940) SQC(1960) Quality circles (1980) TQM,Q-management systems(1990)


Evolution of quality Means & Focus

1975 1980 1985 1990 1995 2000

Productivity Quality Circle Quality of Work life


Total Quality


Employee Involvement

Self Self Directed Directed/Managed Teams Employees Teams Empowerment



Innovations 43

Evolution of quality Era


TQC TQC SQC Inspection Foreman Craftsman

1900 1920 1940 1960 1980 1990 2000 44

Why company put effort to improve Quality..



Quality Cost Productivity

Quality Price After sales service


Definitions of Quality
Quality is fitness for use or purpose- Joseph M.Juran Quality is Conformance to requirements- Philip B.Crosby A predictable degree of uniformity and dependability at low cost and suited to market-W.Edwards Deming The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs of the customers -ISO8420:Quality Vocabulary


New definition of Quality

Little q- old thinking- Q is about products, its technical, for inspectors, led by experts, good quality is of high grade, quality is about control Big Q- New thinking-Q is about organisations,q ia strategic, q is for every one, is led by management, q is appropriate grade About continuous improvement, quality culture emphasis on customer requirement at affordable price

Good quality process changes the way things are done by

Driving business from customer needs Setting a clear vision Utilise contributions of all employees Managing well beyond company boundaries Managing processes to their optimal capability partnering with customers and suppliers Developing workers to manage and managers to lead break down hierarchy and functional divisions Faster, leaner and more responsive to market opportunities Integrate all above for competitive advantage

Quality is not magic.

Relationship to be established between cost and productivity.. Quality cannot do things like Pull new customers out of the hat Vanish away regretted decisions Trick customers Solve all problems overnight Transform difficult people into angels Manage the business for us

Symptoms of non quality business..

Complaints- irate customers Wasted time Frustration- time wasted in rework and repair Hassle- always fires to put out Confusion- no one seems to know what is going on Overload- you always have too much to do Underload your staff dump their problems on your desk Neglect- no one wants to hear your problems



TQM a characteristic of most successful business world over Changing demands of customers Penetration of Asian tigers Stringent cost management Quality and reliability overriding factors Customer specifications Speed and dependability of service and delivery

TQM and Indian Scriptures

TQM has roots in ancient Indian scriptures Total meaning 100% is whole space or advaita Quality will pull down boundary which Dharma gives the permission to achieve Karma and purushartha- management- what one must perform to get the needed results West only discovers what the East already knows

From the VedasProfit is compensation for service to society Companies exist to satisfy the needs of the people Every person has immense potential(Aham Brahamasmi) My customer is not different from me(Advaita) The world is my house(Vasudev kutumbakam) Hence covers all all TQM aspects like social cost benefit,HRD,customer focus and globalisation


Failed attempts to implement TQM.

Lack of commitment from senior management Inadequate planning Inability to change Failure to identify and establish customer needs Failure to progress beyond registration to quality systems standard-ISO-9000


ISO-9000 and TQM

ISO9000 Not necessarily customer focused Not integrated with corporate strategy Technical systems and procedures focused Employee involvement not necessary No focus on continuous improvement in ISO 9000


Definitely customer focused Integral to company strategy Philosophy, techniques, concepts and tools focused Emphasis on employee involvement and empowerment Continuous improvement and TQM is a never ending journey

Quality department responsible for quality

Three step maxim of ISO-1. document what you do 2. do only what you document 3. demo that u have done it with documentary proof

Every one is responsible

Customer satisfaction and economic costs are TQMs two distinguishing features

ISO is a technical and physical systems standards

TQM is a philosophy approach is behavioural and human


TQM can be conceptualised into the following three process.

Quality Process for understanding who the customers are, what are his/ her needs and taking steps to completely satisfy the needs of this customer Management process for continuous improvement to keep pace with changing requirements, competitive environments and technological advances


People Process -it is initiating and maintaining theTQM. It is carried out through involvement of all employees on the basis of three values, intellectual honesty, self control and respect for others.


Total Quality Activities

Supplier development

Process development

Supplier assessment Suplier improvement Supplier partnership

Process control Process improvement Process re-engineering


Policy deployment

People development

Leadership and culture Quality systems Measurement and assessment

Teamwork and involvement Training and education Empowerment and recognition


Customer focus

Customer requirements Customer satisfaction Customer loyalty


Three Steps to TQM

Understand six basic concepts underlying all total quality success Address six management elements that must be integrated into practices and systems of your managers Review and plan six stages of converting from the existing situation to the launch of these new methods

Six key concepts

Customers (external and internal ) Never ending improvement Control of business process Upstream preventive management Ongoing preventive action Leadership and team work management


Six key elements of TQM

Communication of missions, aims and objectives by performance target, ongoing communication and review mechanism Collection and collation of external intelligence- from market, competitors, customers, environment and society Measurement of internal performance- of company, department, group, individual, process and product/service as measured by quality costs, process management, auditing and statistical process control


Identification of improvement opportunities-by formal and informal systems, no blame culture, prioritisation of ideas, allocation of resourses and involvement of all ( cross dept., defined roles, individuals and meeting agendas Implementation of changes- leadership style, team building, project management, team working, problem solving , monitoring and process management Steering and coordination of total quality programmes- by prioritisation, review recognition, display of performance by news letters, charts etc.

Six Key Stages..

Statement of intent-executive statement of the intention to evaluate the possible benefits of the new approach to bussiness Awareness- Directors, executives and senior managementtrained in the concepts, tools and techniques of TQ Diagnosis-identification and quantification of the possible benefits of the TQ approach to businessindividual reviews carried out eg..external customer satisfaction,staff attitudes, morales, internal and external communication, market standing, interfaces with suppliers

Initial Strategy- the diagnosis indicates to the senior management-a) what the organisation does best/worst.b) major improvement opportunities c) initial bases of performance .d) a basis for planning the way forward Management concensus- a major executive and senior management forum evaluate and accept the quantification of the need for change(stage 3) and proposals for strategy and management frame work(stage4) could be as a straight forward board meeting or an offsite conference

Launch- trg and communication cascade down to achieve management and staff commitment in organisation- establish awareness in each employee of TQM concepts- know their aims, objectives, strategies and management framework


Achieving TQM..

Understand the six concepts Address the six management elements Launch the six stage plan


TQM Models

Fuji Xerox model-TQM a simple blend of charisma and process discipline Continuous harnessing of the three forces: vision, sensitivity and technology Fountain head for Xerox wide leadership through quality movement


Norman Rickad Model

Fishbone frame work showing six key enablers that constituted TQM implementation at Modi Xerox Training, quality network, role modeling or senior management, recognition and rewards, communication, standards and measures This leads to two priorities- Customer satisfaction and employee satisfaction four business results- revenue, profit, return on assets and market share

Eicher Group model

Three Legged Stool model Elements of TQM constitutes the three legs SPC JIT Total employee involvement-leader ship, teamwork, people satisfaction through empowerment Also implemented by Toyota

Operational Model

Uses the three elements- total participation, problem solving tools, management support and commitment at three angles of a triangle centre of the triangle shows the Quality Management systems


Diamond Model

Four characteristics of TQM Totality Documentation Foundation improvements


Umbrella model(Atkinson, 1990)

Under the umbrella all elements of TQM- JIT, TEI,SPC, Kaizen, customer satisfaction, quality assurance, Taguchi methods, quality circles are included


Umbrella Model of TQM



Quality Assurance ProblemSolving tools

Customer Satisfaction

Taguchi Methods

Accelerated Business Improvement Model ( Smith, 1995)

smith model comprises of belief, strategy, leadership, customer satisfaction, process, people, discipline, energy and change. Keeps belief in the centre and other elements are surrounded by energy, change and accelerated business improvement Lots of energy is needed to bring a change for implementing other elements of the model


Kanos Model

Dr. Noriaki Kano, Professor of Tokyo university and member, Deming prize committee Sound intrinsic technology and skills to have strong company processes TQM foundation should have motivation for quality On these foundation stands the three pillars of TQM- promotional vehicle, technology, concepts


Basic concepts- customer first, management by facts, focus on prevention, employee involvement through respect and cross functional management Promotional vehicles- policy management, daily management, team activity , vendor quality Basic technology forms the third pillar


Kanos Model


Westing house Model of TQM

Three major dimensions: Requirements, Measurements and imperatives Requirements: customer satisfaction, stakeholder values, employee satisfaction and public approval Measures: Value/price ratios, value cost ratios and error free performance Imperatives: customer orientation, HR excellence, product- process leadership and management leadership

Itoh Model

This model shows portion of time spent by different management levels on different activities Major activities shown are routine or maintenance, improvement and breakthrough development activities Top management spends more time on breakthrough and development activities Lower management spends more time on routine and development activities Improvement activities are equally distributed among all levels of management 82

Peratac TQM Model

Three typical steps: Understand six key concepts Address six management elements Launch six stage plan


Kehoes Model

Dennis F. Kehoe (1996)- dimensions of quality management as people, techniques and systems These dimensions to be supported by training and understanding, teamwork, communications, improvement and commitment


Oakland Model for TQM

Defines TQM as a pyramid with 5 distinct components: 1. Management commitment: leading and introducing change has to come from senior management team 2. Customer supplier chains: This is at the heart of the Oakland pyramid. Reflects process ownership, process management, and process improvement

3.Systems: documented set of procedures and standards of doing things right, first time and every time 4. SPC tools: need to continuously measure and control conformance to customer requirements and agreed standards. They help to quickly correct defective measssures and keep performance on track 5. Team work: A culture based on continuous improvement has to be cultivated, encouraged and implemented in the organisation


Building Blocks Model

Proposed by Zairi(1991) Looks at TQM from three levels TQM depends on various building blocks which together determines the strength and safety/security of the organisation Weakness in one area will have a disastrous effect on the TQM programme


Three levels

1. Total quality- the Foundation: ethos of TQM is internal improvement, introduction of a change, flexibility and adaptability. Heart of the TQM is the human creativity machine 2. Total quality- the Pillars: the pillars of TQM are the means by which human creativity inputs are channelled through and converted into outputs which benefit end customer. Pillars are the quality systems like procedures, documentation, recording and analysis, workplace design, ergonomics, tech innovation, 88 strength of customer supply chain

Total quality the Top: similar to roof of building ; most important part. Shields the organisation from external adverse factors. This part has to be weather proof (not affected by adverse changes in market place) and should not deteriorate( adapt to new market patterns) includes- leadership, quality planning, vision for world class competitiveness