INTRODUCTION TO TQM

QUALITY DEFINED
The dictionary has many definitions of quality. A short definition that is widely accepted is: Quality is customer satisfaction. Quality is a relative term, generally used with reference to the end-use of a product. For example, the gear used in the sugarcane juice extracting machine may not possess good surface finish, tolerance and accuracy as compared with the one used in the headstock of a lathe. Yet, it may be considered as having good quality. Quality should be aimed at the needs of the consumer, present the future (Edwards Deming). According to ISO 8402, quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Broadly, quality is: 1. 2. 3. 4. 5. Fitness for use (Juran) Grade Degree of Preference Degree of Excellence Conformity of Requirements (Philip Crosby)

THE TQMEX MODEL

The TQMEX model advocates an integrated approach for managing quality in order to support the transition to systems management. This is an ongoing process of continuous improvement that begins when the company commits itself to managing by quality. The model illuminates the elements that form the basis of understanding the TQM philosophy and its implementation across companies. Japanese 5-S Practice (5-S) Business Process Re-engineering (BPR). Quality Control Circles (QCCs). Quality Management System (QMS). Total Productive Maintenance (TPM).

TOTAL QUALITY MANAGEMENT (TQM)

TQM provides the overall concept

that fosters continuous

improvement in an organization. The TQM philosophy stresses a systematic, integrated, consistent, organization-wide perspective involving everyone and everything. It focuses primarily on local satisfaction of both internal and external customers within a management environment that seeks continuous improvement of all systems and processes.

CORE CONCEPTS OF TQM

Quality for Profit There is a great deal of profit to be made by quality improvements in products and services, business processes and people. Quality pays for itself in cost reduction: To gain an increase in profit P through increased sales requires a significant increase in operating cost (sales personal,

promotion/advertising, inventories, etc.). To make the same increase

in profit through quality improvement will require only a fraction of those operating costs, which in, any case, diminish over time. Quality pays for itself in sales growth: The more quality improves, the faster the sales increase accelerated by customer satisfaction. As quality reputation grows, marketing can emphasise increasing customer satisfaction as a major element in advertising and other promotions. Right First Time At the heart of TQM is the conviction that it is possible to achieve defect-free work most of the time. This is termed as right first time, every time or zero defects. The right first time or zero defects is a result of emphasis on prevention, and diligent use of measurement, process controls and data-driven elimination of waste and error. I serves as a goal for continuous improvement. Prevention is the aim of all quality assurance. Through planned and systematic action such as documentation of work processes, or cost of quality audits, quality assurance prevents quality problems. This can be summarized as below: Aim at defect-free work: It really is possible to achieve defect-free work most of the time.

Prevent culture must be created : Most poor quality can be avoided through good design, structured processes and trained people.

Acceptable Quality Levels Acceptable quality levels, which came into industry after the end of the Second World War, offer a diametrically opposite mindset to total quality. Instead of getting it right first time, focusing on zero defects, the company encourages defects by setting AQLs. In reality, defects are reduced and costs decline as quality improves. Acceptable quality is expensive, defects are reduced over time only by increasing costs through extensive inspection, checking and progress chasing. Cost of Quality The effective cost component of a manufactured product that is attributable to the quality aspect of the product from the point of view of the manufacturing organization can be called quality cost. This quality cost can be deemed as an aggregation of several component costs known as quality costs. The costs of poor quality are: 1. 2. 3. 4. Failure costs Appraisal costs Prevention costs Hidden costs