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Total Quality Management

Dr. Taqadus Bashir


Assistant Professor,
Faculty of Management Sciences,

UoG

TQM: INTRODUCTION & CONCEPT

TQM is based on number of ideas.


It is the integration of all functions & processes within an
organization in order to achieve continuous improvement of the
quality of goods & services. And ultimate goal is Customer
Satisfaction.
The continuous process of reducing or eliminating errors in
manufacturing, streamlining supply chain management, improving
the customer experience and ensuring that employees are up-tospeed with their training. Total quality management aims to hold
all parties involved in the production process as accountable for
the overall quality of the final product or service.
Total quality management (TQM) was developed by William
Deming, a management consultant whose work had great impact
on Japanese manufacturing. While TQM shares much in common
with the Six Sigma improvement process, it is not the same as Six
Sigma. While it focuses on ensuring that internal guidelines and
process standards reduce errors, Six Sigma looks to reduce
defects.

TQM History

TQM means thinking about quality in terms of the


enterprise
In the late 1970s and early 1980s, the developed
countries of North America and Western Europe
suffered economically in the face of stiff competition
from Japan's
ability to produce high-quality goods at competitive cost
. For the first time since the start of the Industrial
Revolution, the United Kingdom became a net importer
of finished goods. The United States undertook its own
soul-searching, expressed most pointedly in the
television broadcast of If Japan Can... Why Can't
We? Firms began reexamining the techniques of quality
control invented over the past 50 years and how those
techniques had been so successfully employed by the
Japanese. It was in the midst of this economic turmoil
that TQM took root.

History & Introductioncontd

TQM spread throughout the US Federal Government, resulting in


the following:

The creation of the Malcolm Baldrige National Quality Award in


August 1987

The creation of the Federal Quality Institute in June 1988

The adoption of TQM by many elements of government and the


armed forces, including the United States Department of
Defense, United States Army and United States Coast Guard

TQM means thinking about quality from start-to-finish process that


integrates interrelated functions at all levels.
It is a system approach that considers every interaction between
the various elements of organization. Therefore the overall
effectiveness of the system is higher than sum of individual
outputs from the subsystems.

CONCEPT

The subsystems include all the organizational functions in the life


cycle of a product, such as:

The management subsystems also require integration including

Design
Planning
Production
Distribution
Field service

Strategy with a customer focus


The tools of quality
Employee involvement (the linking process that integrates the whole)

A corollary is that any product, process or service can be improved &


a successful org is the one that consciously seeks & exploits
opportunities at all levels
The load-bearing structure is customer satisfaction
The watch word is continuous improvement

Key Issues & Terminologies related to TQM

Cost of Quality: as measure of non-quality ( if meeting customer requirements not


met) & a measure of how quality process is progressing

A cultural change: that appreciates primary needs to meet customer requirements,


implements a management philosophy that acknowledges this emphasis, encourages
employee involvement & embraces the ethics of continuous improvement

Enabling mechanism of change: training & education, communication, recognition,


management behavior, teamwork & customer satisfaction programs.

Implementing TQM: by defining mission, identifying output, identifying customers,


negotiating customer requirements, developing a supplier specification that details
customer objectives & determining the activities required to fulfill those objectives.

Management behavior: acting as role model, use of quality processes & tools,
encouraging communication, sponsoring feedback activities, fostering & providing
a supporting environment

Antecedents of Modern QM

Quality control began from factory system that developed following Industrial
Revolution
Production methods were rudimentary at best at that time
Products were made from non-standardized materials using non-standardized
methods
Result: products of varying quality & Inspection by customer was most common form
of QC
Much later Frederick Taylor developed his system of scientific management which
emphasized productivity at the expense of quality. Centralized departments checked
quality at the end of production line. An extreme example: Hawthorne works at
Western Electric Companyemployed 40K people in 1928 in manufacturing plant
& 5200 were in inspection department.
Methods of SQC & QA were added much later.
Detecting manufacturing problem was over-riding focus.
Top management moved away from idea of managing to achieve quality; workforce
had no stakes at it
Concerns were largely limited to shop floor
Traditional QC measures were (& still are) designed as defense mechanisms to
prevent failure or eliminate defects

Antecedents of Modern QMcont

Accountants were taught (& Still are) that expenditure for defect prevention
were justified only if they were less than the cost of failure which was rarely
computed.
Following the WWII, quality of products produced in USA declined as
manufacturers tried to keep up with the demand for non-military goods that
were not produced during war.
At this time a number of pioneers began to advance a methodology of QC in
manufacturing & developed theories & practical techniques for improved
quality.
W. Edward Demming, Joseph M. Juran, Armund V. Feingenbaum & Philip
Crosby.
Demmings death at age 93 in 1993 proved to be a great loss for quality

QUALITY GURUS
Deming the best known of early pioneers is credited
with popularizing QC in Japan in early 1950s, today is
regarded as national hero in that country & is the
father of world famous Deming Prize for Quality.
He is known best for developing a system of SQC
although his contribution substantially goes beyond
these techniques. His philosophy begins with top
management but maintains that a company must adopt
14 points of his system at all levels.
He also believes that quality must be built into the
product at all stages in order to achieve a high level of
excellence.

Demings Definition of Quality

He defines quality as a predictable degree of uniformity &


dependability at low costs & suited to market. He taught that 96%
of variations have common causes whereas 4% have special
causes. He opined that statistics is a management tool & it relies
on statistical process control as a mean of managing variations in
a process.
He developed what is known as Deming Chain Reaction; as quality
improves, cost will decrease & productivity will increase, resulting
in
more jobs,
greater market share
Long-term survival

Although its the worker who will ultimately produce quality


products, but there will be worker pride & satisfaction rather than
establishment of quantifiable goals.

Rather than worker, his overall approach focuses on


improvement of process in a system being the cause of
process variation

Demings Universal 14 Points for Management


1. Create consistency of purpose with a plan
2. Adopt new system of quality
3. Cease dependence on mass inspection
4. End the practice of choosing suppliers based solely on price
5. Identify problems & work continuously to improve system.
6. Adopt modern methods of training on job
7. Change the focus from production numbers (quantity) to quality
8. Drive out fear
9. Break down barriers between departments
10. Stop requesting improved productivity without providing methods
to achieve it
11. Eliminate work standards that prescribe numerical quotas
12. Remove barriers to pride of workmanship
13. Institute vigorous education & re-training
14. Create a structure in top management that will emphasize
preceding 13 points

Quality Guru Juran

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Like Deming he was also invited to Japan in 1954 by Union of Japanese Scientists &
Engineers (JUSE). His lectures introduced managerial dimension of planning,
organizing, controlling & focused on responsibility of management to achieve quality &
the need for setting goals.
He defined quality as Fitness for use of terms of design, conformance, availability,
safety & field use. So his concept more closely incorporates view point of customers
He taught to measure everything & relies on systems & problem-solving techniques.
Unlike Demming, he focuses on top-down management & technical methods rather than
worker pride & satisfaction. He gave 10 steps to quality improvement:
Build awareness of opportunities to improve
Set goals for improvement
Organize to reach goals
Provide training
Carry out projects to solve problems
Report progress
Give recognition
Communicate results
Keep score
Maintain momentum by making annual improvement part of regular systems & processes of company

Deming VS Juran & Feigenbaum

Juran is founder of Juran Institute of Wilton, Connecticut. He


promotes a concept known as Managing Business Project Quality; a
technique for executing cross-functional Quality improvement
Jurans contribution over longer term maybe greater than Demings
because Juran has broader concept whereas Demings focus on
statistical process control more technical oriented.

Feigenbaum also achieved visibility through work


with Japanese, but unlike former two he used a total
quality control approach that may very well be the
forerunner of todays TQM.
He promoted a system for integrating efforts to develop, maintain
& improve quality by various groups in an organization.
To do otherwise, according to Feigenbaum would be to inspect for
& control quality after the fact rather than build it at an earlier
stage of process

Philip Crosby

Author of a popular book: Quality is Free


Achieved greater commercial success by promoting his views &
founding Quality College in Winter Park, Florida.
He argues that poor quality in the average firm costs about 20% of
revenues, most of which could be avoided by adopting good quality
practices. His absolutes of Quality are:

Quality is defined as conformance to requirements, not goodness


The system for achieving quality is prevention, not appraisal
The performance standard is zero defects, not thats close enough
The measurement of quality is the price of non-conformance, not indexes.

He stressed that motivation & planning does not dwell on statistical


process control & several problem-solving techniques of Deming &
Juran.
He states that quality is free because the small costs of prevention
will always be lower than the costs of detection, correction, & failure.

Philip Crosbys 14 points

Management Commitment
Quality Improvement Team
Quality measurement
Cost of quality
Quality Assurance
Corrective Action
Zero defects planning
Supervisor training
Zero defects day (to signal employees that company has a new standard)
Goal setting
Error cause removal
Recognition (give public, non financial appreciation to those who meet their quality goals or
perform outstanding)
Quality councils
Do it all over again (repeat from 1 to 13 to emphasize never ending process of quality
improvement)

Service Quality VS Product Quality

Now-a-days there is more concern for service quality as compared to


product quality in developed nations
It was reported in a research that will go out of their way to pay more
for good service & strongest complaints of customers were registered
not for product but rather for service
In many ways defining & controlling quality of service is more
difficult than quality assurance of products.
Unlike manufacturing the service industry has unique characteristics
that makes process of QC less manageable but no less important
Distinguishing characteristics are:

Behavior of delivery person


Image of organization
Customer present during the production process & performing the final inspection
Measure of output is difficult to define
Variance & acceptance range may not apply
Adjustment of control system if the customer is present

Tom Peters: Search for Excellence


Taking

a cue from Dominos Pizza, their


Michigan-based neighbor, Doctors
Hospital in Detroit is promising to see its
emergency room patients in 20 min or
care will be free otherwise. During the
1st three weeks of the offer, no patient
have been treated free of charge and
the number of patients has been up to
30%

Thank you