Total Quality Management

-a continuous improvement process

Alberto P. Valenzuela Jr., MBA

 Quality
“Quality is defined as the totality of characteristics
& features of a product or process which
facilitates realization of given requirements.”
Quality --A Few Definitions
1. Conformance to requirements --Crosby
2. Fitness for use --Japan
3. I know it when I see it --Guaspari
4. Value to someone --Weinberg

Quality has no meaning except as defined by

the desires and needs of the customers."
Deming
DR. KAORU ISHIKAWA
developed the Ishikawa
diagram, also known as
the fishbone or cause-
effect diagram.
He was known for
popularizing the seven
basic tools of quality and
the philosophy of total
quality.
DR. W. Edwards Deming
developed his complete
philosophy of
management, which he
encapsulated into his
“fourteen points” and the
“seven deadly diseases of
management”. He
advanced the state of
quality, originally based on
work done by Shewhart
with his explanations of
variation, use of
control charts, and his
theories on knowledge,
psychology and variation.
DR. WALTER SHEWHART
developed the Plan, Do,
Check, Act (PDCA) cycle
(known as “Plan-Do-
Study-Act” in some
circles, as well as theories
of process control and the
Shewart transformation
process.
DR. JOSEPH M. JURAN
developed the quality
trilogy – quality planning,
quality improvement, and
quality control. Quality
management plans quality
improvements that raise
the level of performance,
which then must be
controlled or sustained at
that level in order to start
the cycle again.
SHIGEO SHINGO
developed lean concepts
such as Single Minute
Exchange of Die (SMED) or
reduced set-up times
instead of increased batch
sizes, as well as Poka-Yoke
(mistake proofing) to
eliminate obvious
opportunities for
mistakes. He also worked
with Taiichi Ohno to refine
Just- In-Time (JIT)
manufacturing into an
integrated manufacturing
strategy, which is widely
used to define the lean
manufacturing used
in the Toyota
production system
(TPS).
Taiichi Ohno
developed the seven
wastes (muda), which are
used in lean to describe
non- value-added activity.
He developed various
manufacturing
improvements with
Shigeo Shingo that
evolved into the Toyota
Production System.
PHILIP B. CROSBY
developed the idea of
“quality is free” which
asserts that implementing
quality improvement pays
for itself through the
savings from the
improvement, increased
revenue from greater
customer satisfaction, and
the improved competitive
advantage that results. He
popularized “zero defects”
to define the goal of a
quality program as the
elimination of all defects
and not the reduction of
defects to an acceptable
quality level.
DR. GENICHI
TAGUCHI
developed the “Taguchi
methodology” of robust
design, which focused on
making the design less
sensitive to variation in
the manufacturing
process, instead of trying
o control manufacturing
variation. This idea
of ”designing in quality” has
become an important tenant
of six sigma today
DR. ELIYAHU M.
GOLDRATT
developed the Theory of
Constraints which focuses on a
single element in a process
chain as having the greatest
leverage for improvement (i.e.,
“1% can have a 99% impact”).
This compares to the Pareto
principle which states that 20%
of the factors have an 80%
effect on the process.
ARMAND V. FEIGENBAUM
developed the idea of total
quality
control based on three steps to
quality consisting of quality
leadership, modern quality
technology, and an
organizational commitment to
quality.
What is Total Quality Management

“TQM is a approach to improve the effectiveness & flexibility of business as

a whole. TQM is way of organizing by involving everyone. A
comprehensive, organization-wide effort to improve the quality of
products and services, applicable to all organizations.

TQM is a comprehensive management system which:

 Focuses on meeting owners’/customers’ needs, by providing quality
services at a reasonable cost.
Focuses on continuous improvement.
Recognizes role of everyone in the organization.
Views organization as an internal system with a common aim.
Focuses on the way tasks are accomplished.
Emphasizes teamwork.
Evolution of TQM
• How is customer satisfaction achieved?
Two dimensions: Product features and Freedom
from deficiencies.
Product features – Refers to quality of design.
Examples in manufacturing industry:
Performance, Reliability, Durability, Ease of use
etc.
Examples in service industry: Accuracy, Timeliness,
Friendliness and courtesy, Knowledge of server
etc.

Freedom from deficiencies – Refers to quality of

conformance.
 Quality perspectives
Everyone defines Quality based on their
own perspective of it. Typical responses
about the definition of quality would include:
1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service
 Quality levels
At At organizational level, we need to ask following questions?
Which products and services meet your expectations?
Which products and services you need that you are not currently
receiving?

At process level, we need to ask:

What products and services are most important to the external
factors?
What processes produce those products and services?
What are the key inputs to those processes?
Which processes have most significant effects on the
organizations’s performance standards?
Quality levels
At
At the individual job level, we should
ask:
• What is required by the customer?
need to ask following
• How can the requirements be
measured?
• What is the specific standard for
each measure?
QUALITY PLANNING
At
• Determine who the customers are
• Determine the needs of the customer
• Develop product features that
need to ask followingto customer’s needs
responds
• Develop processes that are able to
produce those product features
• Fail-safing/Foolproofing : Pokayoke
• Transfer the resulting plan to the
operating forces
 QUALITY CONTROL
At
• Evaluate actual quality performance

• toCompare
need ask followingactual performance to quality
goals

• Take remedial actions

 QUALITY
IMPROVEMENT
At
• Establish the infrastructure to achieve annual
quality improvement
• Identify the improvement projects
need to ask following
• Project teams
• Provide the resources ,motivation, training
- Diagnose the causes
- Stimulate establishment of remedy
- Establish controls to retain the benefits
 TQM beliefs
Following are the universal Total Quality Management beliefs:
AtOwner/customer satisfaction is the measure of quality
Everyone is an owner/customer.
Quality improvement must be continuous.
Analysis of the processes is the key to quality improvement.
Measurement,
need a skilled use of analytical tools, and employee
to ask following
involvement are critical sources of quality improvement ideas
and innovations
Sustained total quality management is not possible without
active, visible, consistent, and enabling leadership by
managers at all levels
It is essential to continuously improve the quality of products
and services that we provide to our owners/customers.
 TQM principles
• People will produce quality goods and services when the meaning of quality
is expressed daily in their relations.
At
Inspection of the process is as important as inspection of the product.
Probability of variation, can be understood by scientific methods.
Workers work in the system to improve the system; managers work on the system
to improve the system.
needTotal
to ask management must be consistently translated into guidelines
following
quality
provided to the whole organization.
Envision what you desire , but start working from where you actually are.
Cleaner site and safer place to work is also important. Accept
the responsibility for quality.
Use the principle of get it right, the first time, every time.
Understand that quality is a journey, not a destination.
 Pitfalls to be avoided in TQM
At
Many companies have started on the road to quality but failed to achieve
success due to several factors, these are listed as follows:
• Lack of top management support.
• toLack
need of middle management support.
ask following
• Commitment in only one department.
• Short-term commitment .
• Haphazard approach .
• Failure to acquire the services of a competent statistician.
• Measure success and guide program.
• Failure to solicit worker input.
 Pitfalls to be avoided in TQM
(contd…)
At
• Over dependence on computerized quality control.

• Funding failure .

• No market research.
need to ask following
• No testing of incoming materials.

• Overselling hourly workers.

• Adversarial management.
 Cause-and-Effect Diagram
Used to identify potential causes for particular quality problem.
At

need to ask following

 Steps in implementing TQM
1 Obtain CEO Commitment
At
2 Educate Upper-Level Management
3 Create Steering Committee
4 Outline the Vision Statement, Mission Statement, & Guiding Principles
5 Prepare a Flow Diagram of Company Processes
6 Focus
need onfollowing
to ask the Owner/Customer (External) & Surveys
7 Consider the Employee as an Internal Owner/customer
8 Provide a Quality Training Program
9Establish Quality Improvement Teams
10 Implement Process Improvements
11 Use the Tools of TQM
12 Know the Benefits of TQM
 ADVANTAGES OF TQM
• Helps to face competition
At

• Reduction in Customer
complaints
need to ask following
• Highly Motivated Personnel
• Expansion and Diversification
 DISADVANTAGES OF TQM
• Conservative Attitude of Indian
At

Management
• Master and Servant Relationship
need to ask following
• Attitudes of Indian Society
At
Quality is a Journey, not a
Destination
need to ask following