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Total Quality Management

Dale H. Besterfield 3/e

Ahmad Usman (a.usman@live.com)

Buying a Quality Product?

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Who Is Better?

McDonald or KFC

Who Is Better?

What is Quality?
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Defining Quality
Quality is a predictable degree of uniformity and dependability, at low cost and suited to the market Deming
Quality is fitness for use Juran Quality is conformance to requirements Crosby
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Defining Quality

The degree to which a set of inherent characteristics fulfills requirements. ISO 9000:2000

Quality can be Quantified

Q = P/E
Where Q = Quality P = Performance E = Expectations If Q is greater than 1.0, then the customer has a good feeling about the product or service.
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8 Dimensions of Product Quality

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5 Dimensions of Service Quality

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Responsiveness Reliability
Empathy

Tangibility

Assurance
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Historical Review

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Changing focus of Quality Management

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M A N U F A C T U R E R

Reject

Customer

M A N U F A C T U R E R

M A N U F A C T U R E R

M A N U F A C T U R E R

Choices

Customer

MM M AA A M A NN N N UU U U FF F F AA A A CC C C TT T T UU U U RR R R EE E E R RR R

Reject

Customer

MMM M AAAA NNNN UUUU FFF F AAAA C C CC TTT T UUUU RRRR E E E ER RRR

Reject

QC

Reject

Customer

Self QC
M A N U F A C T U R E R

Self QC

Self QC

Self QC

Marketing

Production Planning

Buying

Storage
Self QC

Manufacturing
Reject Reject Self QC

Sales

Customer

M A N U F A C T U R E R

Marketing

Production Planning

Buying

Storage

HR

Finance Engineering

Manufacturing

Sales

Customer

Total Quality Management

Introduction

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Quality is not just the baby of Quality or Laboratory Department

Total Quality
PURCHASE STORE ENGINEERING PRODUCTION DISPATCH MARKETING
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Total Quality Management

Analyzing the three words, we have:
Total: Made up of the whole Quality: Degree of Excellence a product or service provides Management: Act, art or manner of planning, organizing, leading, staffing and controlling.
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Total Quality Management

So we can say that Total Quality Management is the art of managing the whole to achieve excellence.

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TQM Defined

An integrated effort designed to improve quality performance at every level of the organization.

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The Goal is

Doing it right the first time and every time.

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Basic Approach: QM Principles

Top Management Commitment Customer Focus

Employee Involvement

Continuous Process Improvement

Supplier Partnership

Performance Measures
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Awareness about TQM

Awareness comes about when an organization: Loses profitability, market share or, Realizes that quality and productivity go hand-inhand or, When it is the requirement of the customer to implement it or, When management realizes that TQM is a better way to run business and to compete in domestic and world markets. Japanese learned this from practical experience. 29

Quality as a competitive advantage

Competitive advantage is the firms ability to achieve superiority over its competitors.
Michael Porter suggested two main sources of competitive advantages: Cost leadership Differentiation

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The acceptance inspection model

Process
Acceptance Sampling

Inspection

Pass the inspection? Yes Acceptance

No

Repair, rework, scrap, reject

Next process

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Obstacles to implement 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
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Benefits of implementing TQM

Improved Quality of products and services Increased employee participation Improved Teamwork Better working relationships

Increased customer satisfaction

Improved employee satisfaction

Increased productivity
Better communication Increased profitability and market share

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Additional notes
ASQ- American Society for Quality PIQC- Pakistan Institute of Quality Control
Both organizations, through their publications, conferences and training sessions, have promoted the use of quality for all types of manufacturing and services concerns in America and Pakistan 35 respectively.

Some words about Quality!

Quality is a continuous journey and hence not a destination.
Quality is everybodys business.

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