WHAT IS TQM?

CONCEPT:
Purpose: To improve customer satisfaction
 International Organization for
Standardization standard ISO 8402:1994
 "A management approach of an organisation
centred 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 organisation and society.”
QUALITY is defined as
 Conformance to requirements- Philip Crosby
 Fitness for purpose – Dr.Juran
 Synonymous with customer needs and expectations -
RJ Mortiboys
 Predictable degree of uniformity and dependability
with a quality standard suited to the customer,
market at low cost
– Dr. Edward Deming
Contd…
QUALITY is defined as
 Meeting the (stated) requirements of the
customer- now and in the future (Mike
Robinson)
 The totality of features and characteristics of
a product or service that bears on its ability
to satisfy stated or implied needs” – ISO 8402
 conformance to specifications (British
Defense Industries Quality Assurance Panel)
Contd…
QUALITY is defined as
 The total composite product and service
characteristics of marketing, engineering,
manufacturing and maintenance through which the
product and service in use will meet the expectations
by the customer - Armand Feigenbaum.
 The totality of features and characteristics of a product
or service, that bears on its ability to satisfy given
needs. - American Society for Quality Control ( ASQC)
 Quality is not fine-tuning your product at the final
stage of manufacturing, before packaging and
shipping .

 Quality is in-built into the product at every stage

from conceiving –specification & design stages to
prototyping –testing and manufacturing stages.
Perspectives of Quality

 Judgemental criteria --- synonymous with superiority

 Product based criteria—attributes that are measurable
 User based criteria—fitness for use
 Value based criteria –as useful as competitors product
at lower prices
 Manufacturing based criteria – desirable outcome for
an engineer
Integrating perspectives on quality
by Garvin
 Performance
 Features
 Reliability
 Conformance
 Durability
 Serviceability
 Aesthetics
 Perceived quality
Nestlé Quality Policy
 1. Guarantee food safety and full compliance by respecting
our policies, principles and standards with full
transparency
 2. Ensure preference and consistency to delight consumers
and customers by valuing what they value and by offering
products, systems and services that always meet or exceed
their expectations
 3. Strive for zero defects and no waste by constantly looking
for opportunities to apply our continuous improvement
approach to deliver competitive advantage
 4. Engage everybody’s commitment across our complete
value chain and at all levels of our organization to build the
Nestlé Quality Culture.
TCS QUALITY POLICY
 To meet our commitment, we must:
 √alue our Customers through open communication,
timely responses and continual improvement.
 Appreciate and foster an environment of trust, integrity,
challenge and reward that attracts and retains the best
employees in all positions throughout the company.
 Leverage efficient technology applied to all business
processes in order to maintain a competitive advantage.
 Understand that our ultimate purpose is customer
satisfaction.
 Ensure that our Quality Management System serves our
customers’ needs.
TATA MOTORS QUALITY POLICY
 This policy shall be deployed through
 Continual improvement in product quality by process
control & variability reduction.
 Upgradation of manufacturing technology and skills
 Cost reduction through elimination of waste in all
Business processes.
 Development of Human Resources
 Development and participation of our suppliers.
Drivers of quality
 Competition in the market
 Knowledge explosion
 Threat for survival
 Demand from stakeholders
 Promise of greater profit
 Desire to de better
Quality in different areas
Why Quality?
Reasons for quality becoming a cardinal priority for
most organizations:
 Competition – Today’s market demand high quality
products at low cost. Having `high quality’
reputation is not enough! Internal cost of
maintaining the reputation should be less.
 Changing customer – The new customer is not only
commanding priority based on volume but is more
demanding about the “quality system.”
 Changing product mix – The shift from low volume,
high price to high volume, low price have resulted in
a need to reduce the internal cost of poor quality.
Why Quality?
 Product complexity – As systems have become
more complex, the reliability requirements for
suppliers of components have become more
stringent.
 Higher levels of customer satisfaction – Higher
customers expectations are getting spawned by
increasing competition.

Relatively simpler approaches to quality viz.

product inspection for quality control and
incorporation of internal cost of poor quality into
the selling price, might not work for today’s
complex market environment.
Quality is Central
for Business
 Quality is Central to
protecting and enhancing
the “Brand Reputation” of
Business.

 Quality issues can have a

huge impact on
profitability and in the
worst cases even the
survival of a Business.
 HISTORY OF TOTAL QUALITY
MANAGEMENT
 TQM involves methodology for continually
improving the quality of all processes, it draws on
a knowledge of the principles & practices of:
• The behavioural sciences
• The analysis of quantitative & non-quantitative
data
• Economics theories
• Process analysis
TQM TIMELINE
1920s: Some of the first seeds of quality management were
planted as the principles of scientific management swept
through U.S. industry.

1930s:Walter Shewhart developed the methods for statistical

analysis and control of quality.

1950s:
•W. Edwards Deming taught methods for statistical analysis and
control of quality to Japanese engineers & executives
•Joseph M. Juran taught the concepts of controlling quality and
managerial breakthrough
•Armand V. Feigenbaum’s book Total Quality Control was
published
•Philip B. Crosby’s promotion of zero defects paved the way for
quality improvement in many companies
 1968: Kaoru Ishikawa’s synthesis of the philosophy contributed to
Japan’s ascendancy as a quality leader

Today:
TQM is the name for the philosophy of a broad and systemic
approach to managing organizational quality.
Quality standards such as the ISO 9000 Series
and quality award programs such as the Deming Prize and
the Malcolm Baldridge National Quality Awards specify
principles and processes that comprise TQM. WALTER
SHEWHART

KAORU
ISHIKAWA

JOSEPH
JURAN
ARMAND
F. W.E. DEMING
PHILIP CROSBY
History of quality management
…To know the future, know the past!

 Before Industrial Revolution, skilled craftsmen

served both as manufacturers and inspectors,
building quality into their products through their
considerable pride in their workmanship.
 Industrial Revolution changed this basic concept to
interchangeable parts. Likes of Thomas Jefferson and
F. W. Taylor (“scientific management” fame)
emphasized on production efficiency and
decomposed jobs into smaller work tasks. Holistic
nature of manufacturing rejected!
History of quality management
 Statistical approaches to quality control started at
Western Electric with the separation of inspection
division. Pioneers like Walter Shewhart, George
Edwards, W. Edwards Deming and Joseph M. Juran were
all employees of Western Electric.
 After World War II, under General MacArthur's Japan
rebuilding plan, Deming and Juran went to Japan.
 Deming and Juran introduced statistical quality control
theory to Japanese industry.
 The difference between approaches to quality in USA
and Japan: Deming and Juran were able to convince the
top managers the importance of quality.
History of quality management
 Next 20 odd years, when top managers in USA
focused on marketing, production quantity and
financial performance, Japanese managers improved
quality at an unprecedented rate.
 Market started preferring Japanese products and
American companies suffered immensely.
 America woke up to the quality revolution in early
1980s. Ford Motor Company consulted Dr. Deming to
help transform its operations.
(By then, 80-year-old Deming was virtually unknown
in USA. Whereas Japanese government had
instituted The Deming Prize for Quality in 1950.)
History of quality management
 Managers started to realize that “quality of
management” is more important than “management of
quality.” Birth of the term Total Quality Management
(TQM).
 TQM – Integration of quality principles into
organization’s management systems.
 Early 1990s: Quality management principles started
finding their way in service industry. FedEx, The Ritz-
Carton Hotel Company were the quality leaders.
 TQM recognized worldwide: Countries like Korea, India,
Spain and Brazil are mounting efforts to increase quality
awareness.
The Three Quality Gurus- Deming
 William Edwards Deming Focus on SPC and
was an American engineer statistical tools
and management consultant.
 The best known of the “early” “14 Points” for
pioneers, is credited with
popularizing quality control management
in Japan in early 1950s.Today,
he is regarded as a national PDCA method
hero in that country and is  (PLAN-DO-CHECK-ACT)
the father of the world
famous Deming prize for
quality.
The Three Quality Gurus- Joseph
Juran
 Joseph Moses Juran was a
Romanian-born American
Pareto Principle
engineer and management
consultant. Cost of Quality
 Juran, like Deming was
invited to Japan in 1954 by the General management
union of Japanese Scientists approach as well as
and engineers.
 Juran defines quality as
statistics
fitness for use in terms of
design, conformance,
availability, safety and field
use. He focuses on top-down
management and technical
methods rather than worker
pride and satisfaction.
The Three Quality Gurus- Philip
Crosby:

 Philip Bayard Crosby was a businessman who

contributed to management theory and quality
management practices initiated the Zero
Defects program at the Martin Company.
 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 “that’s close enough”
MALCOLM BALDRIGE NATIONAL
QUALITY AWARD
 The Malcolm Baldrige National Quality
Award recognizes U.S. organizations in the
business, health care, education, and nonprofit
sectors for performance excellence. The Baldrige
Award is the only formal recognition of the
performance excellence of both public and private
U.S. organizations given by the President of the
United States.
 The award promotes awareness of performance
excellence as an increasingly important element in
competitiveness. It also promotes the sharing of
successful performance strategies and the benefits
derived from using these strategies.
DEMING’S 14 POINTS ON TQM
FOR TRANSFORMATION
DEMING’S 14 POINTS ON TQM
STEPS IN IMPLEMENTING TQM
OBTAIN CEO COMMITMENT

EDUCATE UPPER-LEVEL MGT

CREATE STEERING COMMITTEE

OUTLINE THE VISION STATEMENT, MISSION

STATEMENT & GUIDING PRINCIPLES

PREPARE A FLOW DIAGRAM OF

COMPANY PROCESSES
FOCUS ON THE OWNER/CUSTOMER &
SURVEYS
CONSIDER THE EMPLOYEE AS AN
INTERNAL OWNER/CUSTOMER

PROVIDE A QUALITY TRAINING

PROGRAM

ESTABLISH QUALITY IMPROVEMENT

TEAMS

IMPLEMENT PROCESS
IMPROVEMENTS

USE THE TOOLS OF TQM

KNOW THE BENEFITS OF TQM

BENEFITS OF TQM
 IMPROVE QUALITY
 EMPLOYEE PARTICIPATION & SATISFACTION
 TEAMWORK & WORKING RELATIONSHIPS
 PROFITABILITY & MARKET SHARE
 PRODUCTIVITY
 COMMUNICATION
OBSTACLES TO TQM
 LACK OF MANAGEMENT COMMITMENT
 LACK OF EMPLOYEE MOTIVATION
 INABILITY TO CHANGE ORGANISATION
CULTURE
 IMPROPER PLANNING
 LACK OF CONTINUOUS TRAINING &
EDUCATION
 INADEQUATE USE OF EMPOWERMENT &
TEAMWORK
TQM TODAY
 Characterized differently by each company that
practices it
 The primary philosophy
 Continuous improvement to exceed the customer
expectations
 Identify and correct issues at the earliest stage
 Incorporate quality into the final product
GROWTH OF TQM
 Japanese industries followed the path &
guidance of Joseph Juran & Edward Deming for
TQM, and by mid-1970s became a world leader
in most industries & consumer product
segments, for eg., Sony in Consumer
Electronics, Toyota & Honda in 4-wheeler
automobile industry, Honda & Yamaha in 2
wheeler industry etc.
 Gradually TQM spread to most of the world’s
industries in Korea, Europe and USA and it was
accepted as universal mantra for world class
performance and excelling in individual fields
of operations