Total Quality Management - TQM

Session Plan
Introduction to concepts of TQM

Standards and TQM

TQM Reasons for failure Measurement of Quality

What is TQM?
TQM is an integrated organizational approach in

delighting customers (both external and internal) by meeting their expectations on a continuous basis through everyone involved with the organizational working on continuous improvement in all products/processes along with proper problem solving methodology.
TO

DELIVER HIGHEST VALUE AT LOWEST COST is the main objective of TQM

Total Quality Management

TQM is a philosophy which applies equally to

all parts of the organization. TQM can be viewed as an extension of the traditional approach to quality. TQM places the customer at the forefront of quality decision making. Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality. All staff are empowered.

Significance of the term TQM

Total - The responsibility for achieving Quality rests with everyone a

business no matter what their function. It recognises 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.

Scope of TQM

Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time/ Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans

Principles of TQM
Produce quality work the first time. Focus on the customer. Have a strategic approach to improvement. Improve continuously. Encourage mutual respect and teamwork.

British Standards on TQM

BS 7850-1:1992 Total quality management. Guide to management principles. BS 7850-2:1994, ISO 9004-4:1993 Total quality management. Guidelines for quality improvement.

Elements of TQM
Leadership Top management vision, planning and support. Employee involvement All employees assume responsibility for the quality of their work. Product/Process Excellence Involves the process for continuous improvement.

Elements of TQM
Continuous Improvement A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality. Customer Focus on Fitness for Use Design quality
Specific characteristics of a product that determine its value

in the marketplace.

Conformance quality The degree to which a product meets its design specifications.

A fundamental concept of TQM from BS 7850 - a Process

A set of inter-related resources and activities which

transform inputs into outputs. (ISO 8402). Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization. (BS 7850)

"The Simple Process"

Controls

Inputs

Process

Outputs

Resources

Changing Role of the Process Owner

Process 1 Input from supplier As customer Process owner Output Input Process 1

As supplier

As customer
Process owner

Output to
As supplier customer

TQM & organizational Cultural Change

Traditional Approach Lack of communication Control of staff Inspection & fire fighting Internal focus on rule Stability seeking Adversarial relations Allocating blame TQM Open communications Empowerment Prevention External focus on customer Continuous improvement Co-operative relations Solving problems at their roots

Customers expectations for the product or service Gap Customers perceptions of the product or service

Expectations > perceptions Customers expectations of the product or service Customers perceptions of the product or service Expectations = perceptions

Perceived quality is poor

Source: Slack et al. 2004

Gap

Customers expectations for the product or service Expectations < perceptions

Perceived quality is governed by the gap between customers expectations and their perceptions of the product or service

Perceived quality is good

Customers perceptions of the product or service

Additional views of Quality in Services

Technical Quality versus Functional Quality Technical quality the core element of the good or service.
Functional quality customer perception of how the good

functions or the service is delivered.

Expectations and Perceptions Customers prior expectations (generalized and specific service experiences) and their perception of service performance affect their satisfaction with a service.
Satisfaction = (Perception of Performance) (Expectation)

Previous Experience

Word of mouth communications

Image of product or service

A Gap model of Quality

Customers expectations concerning a product or service Customers own specification of quality Gap 1

Customers perceptions concerning the product or service Gap 4

The actual product or service

Managements concept of the product or service Gap 2

organizations specification of quality

Gap 3

Continuous Improvement
Philosophy that seeks to make never-ending

improvements to the process of converting inputs into outputs.

Kaizen: Japanese

word for continuous improvement.

Implementing TQM
Successful Implementation of TQM
Requires total integration of TQM into day-to-day

operations.
Causes of TQM Implementation Failures
Lack of focus on strategic planning and core

competencies. Obsolete, outdated organizational cultures.

Obstacles to Implementing TQM

Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication.

Lack of real employee empowerment.

Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues.

Some criticisms of TQM

1. 2.

3.
4.

Blind pursuit of TQM programs Programs may not be linked to strategies Quality-related decisions may not be tied to market performance Failure to carefully plan a program

PDCA Cycle repeated to create continuous improvement

Performance

Plan Act

Do
Check

Continuous improvement

Time

Recognizing and rewarding Quality

Promotion of high quality goods and services
Malcolm Baldrige National Quality Award (MBNQA)

(United States)
Deming Prize (Japan) European Quality Award (European Union) ISO9000 certification

The integrated framework of the Baldrige Award criteria

Continual improvement of the quality management system

Customers (and other interested parties)

Customers (and other interested parties)

Management responsibility

Resource management
Requirements

Measurement, analysis and improvement

Satisfaction

Input
Key: Value adding activity information flow

Product realisation

Output

Product

Overview of the EFQM Excellence Model

Summary
TQM a way of working

Involves everyone
High prominence on customer Awards based upon TQM

THANK YOU