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Authors

DR. GUNMALA SURI

DR. PUJA CHHABRA SHARMA

Total Quality Management

Dr. Gunmala Suri & Dr. Puja Chhabra Sharma

Chp- 1

Introduction to TQM

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Section - I

Chapter

1
Introduction to
TQM
Total Quality Management
Dr. Gunmala Suri & Dr. Puja Chhabra Sharma

Introduction
TQM
About theto Book

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The purpose of this book is to provide a comprehensive guide &

text book on Total Quality Management to meet the dual needs of
the practitioners & management students alike. The authors with
their rich experience of industry & academia have realized that,
despite a plethora of books on Total Quality Management,
students & practitioners still experience difficulty in finding out an
easily understandable book covering, by and large, the
fundamentals & the course structure prescribed by various
universities. Keeping these needs in view, the authors have
endeavoured to bring out this book encompassing the important
concepts of Total Quality Management making it a must for
practitioners as a reference guide and as a simple yet
comprehensive text book for students.
Total Quality Management
Dr. Gunmala Suri & Dr. Puja Chhabra Sharma

Introduction
TQM
About theto Author

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Dr. Gunmala Suri is presently working at

University Business School, Punjab University,
Chandigarh.
Dr. Suri is Ph.D.in Business Economics and her
research interest are Quality Management, IPR and
Knowledge Management.
She has more than 50 research paper published in national and
international journals of repute and has attended several
conferences in India & Abroad and her work acquired best paper
award also.
She was awarded Common Wealth Fellowship; Indo- Swiss
Bilateral Programme Fellowship and has been Visiting Fellow to
Corvinus University of Budapest , Department of information
Systems, Hungary & University of Lausanne, Switzerland.
Total Quality Management
Dr. Gunmala Suri & Dr. Puja Chhabra Sharma

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About theto Author

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Dr. Puja Chhabra Sharma is Presently working at

the Ansal University, Gurgaon. She has earned
Masters
in Commerce & Human
Resource
Management from St. Johns College, Agra &
Jamna Lal Bajaj Institute of Management, Mumbai,
representively and was awarded Ph.D. in Quality
Management from CSS University, Meerut.
Prior to her current assignment, Dr. Sharma served the Indian
Navy for 14 years as one of the pioneer batch of women officers,
& holds distinguished rank of Commander. During her Naval
Service, she was Deputy Director in the Directorate of logistics
support at the Naval Headquarters; New Delhi and involved in a
whole gamut of Naval Logistics activities. She has been an
Adjunct Faculty at Valparasio University. Indiana State, USA and
University of CAXIAS DO SUL, RS, Brazil.
Total Quality Management
Dr. Gunmala Suri & Dr. Puja Chhabra Sharma

Introduction
Contentsto TQM

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SECTION I
CHAPTER
CHAPTER
CHAPTER
CHAPTER
CHAPTER

1
2
3
4
5

:
:
:
:
:

INTRODUCTION TO TQM
TQM-A RAOD MAP TO EXCELLENCE
QUALITY GURUS
COST OF QUALITY
QUALITY LEADERSHIP

SECTION II
CHAPTER 6 : TQM IMPLEMENTATION
CHAPTER 7 : CREATING QUALITY CULTURE
CHAPTER 8 : CUSTOMER FOCUS & CUSTOMER
SATISFACTION
CHAPTER 9 : TQM & QUALITY IMPROVEMENT
CHAPTER 10 : QUALITY CONTROL AND PROBLEM
SOLVING: TOOLS & TECHNIQUES
Total Quality Management
Dr. Gunmala Suri & Dr. Puja Chhabra Sharma

Introduction
Contentsto TQM

CHAPTER
CHAPTER
CHAPTER
CHAPTER
CHAPTER

11
12
13
14
15

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:
:
:
:
:

BUSINESSS PROCESS RE-ENGINEERING (BPR)

SIX SIGMA (6)
Quality Function Deployment (QFD)
VALUE ENGGINEERING AND VALUE ANALYSIS
TOTAL PRODUCTIVE MAINTENANCE
SECTION III
CHAPTER 16
:
QUALITY MAMAGEMENT SYSTEMS
CHAPTER 17
:
QUALITY SYSTEM AUDIT
CHAPTER 18
:
ENVIRONMENTAL MANAGEMENT
SYSTEM & TOTAL QUALITY CONTROL
CHAPTER 19
:
HUMAN RESOURCE DEVELOPMENT &
QUALITY CIRCLES
CHAPTER 20
:
QUALITY AWARDS
SECTION IV
CHAPTER 21
:
TQM Case Studies in Indian Industries

Total Quality Management

Dr. Gunmala Suri & Dr. Puja Chhabra Sharma

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INTRODUCTION
Total Quality Management (TQM) is an integrative philosophy of
management for continuously improving quality of products
and processes to achieve customer satisfaction. It is based on
a premise that an organization must build quality into its
products and processes, and that everyone in the organisation
has a responsibility in this effort. Customer is the focus of all
the efforts to improve the product and process quality. Basic
philosophy of TQM is applicable to any type of organisation;
manufacturing or service, small or large, public or private. TQM
is applicable to a wide range of organisations, regardless of the
type of industry: repetitive or customized
production, high volume or low volume.
Total Quality Management
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QUALITY
A frequently used definition of quality is Delighting the
customer by fully meeting their needs and expectations.
These may include performance, appearance, availability,
delivery, reliability, maintainability, cost effectiveness and
price. It is, therefore, imperative that the organization
knows what these needs and expectations are. In addition,
having identified them, the organization must understand
them, and measure its own ability to meet them.

Total Quality Management

Dr. Gunmala Suri & Dr. Puja Chhabra Sharma

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TOTAL QUALITY MANAGEMENT (TQM)

Total Quality Management is a philosophy, a set of tools and
a process whose output yields customer satisfaction and
continuous improvement. This philosophy and process
differs from traditional philosophies and processes in that
everyone in the organisation can and must practice it. Total
Quality Management is the latest, most comprehensive and
most complete approach to organizational excellence. Total
Quality is typically a company wide effort seeking to install
and make permanent a climate where employees
continuously improve their ability to provide on demand
products and services that customers will find of particular
value. (Ciampa 1998).
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TQM Involves Six Initiatives:

1. A committed and involved management will have to
provide
long-term
top-to-bottom
organizational
support.
2. An unwavering focus on the customer, both internally
and externally.
3. Effective involvement and utilization of the entire work
Force.
4. Continuous improvement of the business and
production process.
5. Treating suppliers as partners.
6. Establishing performance measures for the processes.
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COMPETITIVE ADVANTAGE
Competitive advantage denotes a firms ability to achieve market
superiority over its competitors. In the long-run, a sustainable
competitive advantage provides superior performance. A robust
competitive advantage has six characteristics:
a) It is driven by customer wants and needs.
b) It makes a significant contribution to the success of the
business.
c) It matches the organisations unique resources with the
opportunities in the environment.
d) It is durable, lasting, and difficult for competitors to copy.
e) It provides a basis for further improvement.
f) It provides direction and motivation to the entire organization.
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COST LEADERSHIP
Many firms gain competitive advantage by establishing
themselves as the low-cost leader in an industry. These
firms produce high volumes of mature products and
achieve their competitive advantage through low prices.
Such firms often enter markets that were established by
other firms. They emphasize achieving economies of scale
and finding cost advantages from all sources. Low cost
can result from high productivity and high capacity
utilization.

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DIFFERENTIATION
To achieve differentiation, a firm must be unique in its
industry along some dimensions that are widely valued by
customers. It selects one or more attributes that
customers perceive as important and positions itself
uniquely to meet these needs. As a result, it can command
premium prices and achieve higher profits.
However, a firm that uses differentiation as its source of
competitive advantage cannot ignore cost.

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QUALITY AS COMPETITIVE ADVANTAGE

The role of quality in achieving competitive advantage
was demonstrated by several research studies. PIMS
Associates, Inc., a subsidiary of the Strategic Planning
Institute, maintains a data base of 1,200 companies and
studies the impact of product quality on corporate
performance. PIMS researchers have found that
Product quality is the most important determinant of
business profitability. Businesses offering premiumquality products and services usually have large market
share and were early entrants into their markets.
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QUALITY AND DIFFERENTIATION

STRATEGIES

Competitive advantage is gained from meeting or

exceeding customer expectations the fundamental
definition of quality. A business may concentrate on any of
several quality-related dimensions in order to differentiate
itself from its competitions. The key dimensions are:
1. Superior product design,
2. Outstanding service,
3. High flexibility and variety,
4. Continuous innovation; and
5. Rapid response time competitiveness
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QUALITY STRATEGIES AND BUSINESS

RESULTS

Baldrige Award winners have demonstrated that total

quality leads to competitive advantage and improved
business performance. Baldrige finalists explored four
measurable areas of a companys operations that could
demonstrate the impact of TQ practices on corporate
performance (Dale H. Besterfield, 2008).
1. Employee relations;
2. Operating procedures;
3. Customer satisfaction; and
4. Financial performance.
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ADVANTAGE OF TQM
The advantages of TQM correlate directly to bottom-line savings. In
todays information-driven economy, companies uncover the most
opportunities and ultimately derive the most value from Total
Quality Management. An effective TQM program should help a
company to do one or more of the following:
1.
2.
3.
4.

Foster innovation by encouraging free flow of ideas.

Improve customer service by streamlining response time.
Boost revenues by getting products and services to market faster.
Enhance employee retention rates by recognizing the value of
employees knowledge and rewarding them for it.
5. Streamline operations and reduce costs by eliminating redundant
or unnecessary processes.
6. A creative approach to TQM can result in improved efficiency,
higher productivity and increased revenues in practically any
business.
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PEOPLE ORIENTATION
If we study excellent organizations in America, UK Japan
and India we find a common thread running through all of
them the people orientation. These organisations
express their special concern for the people. These
organisations have undone the detrimental effects of
Taylorism which was once universally accepted as a
tool for effective management and high productivity. All
excellent organisations have been able to break the
barrier of mistrust between labor and management.
Employees are accepted as partners to maintain a high
level of performance and open management is sincerely
practiced. Participation in the real sense is the way of life
in the organizations performing excellent.
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FUNDAMENTALS OF TQM
TQM principles can be explained by examining companies that
have been successful. Some Indian companies, which have
won the Golden Peacock National Quality Award from Quality
Council of India (QCI) and Institute of Director (IOD), are Telco,
Philips, Bharat Electronics, Kirloskar, SAIL and EIL. For this
purpose, we may examine the Malcolm Baldrige Award winners
in the USA like Motorola; the Deming prizewinners like Toyota
and the European Quality Award winners like Corning. On
examining these companies, the following fundamentals of
TQM are found common:

Management by Fact
PDCA Cycle
Focus on Prevention
Employees Involvement
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TQM PHILOSOPHY
TQM, however, is a complex issue. There are many
examples of its successful introduction in the US, the UK,
and Western Europe. Indeed Japanese investment in
these countries has proved TQMs adaptability, giving a lie
to the view that it is inextricably coupled to an eastern
work ethic and culture. Western workers can be as useful
as their far eastern counterparts in achieving the
possibilities to be realised from a focus on Total Quality.
The western world claims that the TQM concept originated
in West and exported to East after the Second World War
when spurned by western industrialists as impracticable.
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End of Chapter

1
THANKS
Total Quality
Management
PPTs By: Afaque Alam

Dr. Gunmala Suri & Dr. Puja Chhabra Sharma

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