Total Quality Management

By
M. Ali Hassan
alimba@live.com
 What is Quality?
Definitions of Quality
Fitness for use
Conformance to specifications
Minimum variations
Reduced errors or defects
Meeting customer satisfaction
Q=P/E
Where P is Performance of the product and E
is Expectation of the customer.
Dimensions of Quality
Performance
Features
Reliability
Competitive Value
Serviceability
Reputation
Conformance
Aesthetics
Sales Staff Response
 Myths about Quality

Quality Products have to cost more because

their production cost is higher.
Focus on Quality reduces Production
output.
Quality is only concerned with production of
products.
Some level of defects or errors are acceptable
even in a quality product or process.
 Quality and Productivity

Significance of Quality towards improving productivity

Productivity = Outputs of products or services
Inputs of resources (3Ms)
Inputs = Men, Material, and Money

*** To enhance productivity increase number of products

or decrease waste of resources ***

Concept of Zero Defect or Six Sigma

•Do you think Zero defect is conceivable ?
Quality Issues in Pakistan
Current Quality Conditions of businesses
 15 – 20% reject rate

 Obsolete or Inefficient technology

 High rework costs

 Low worker motivation

 Late deliveries

 Higher inventory costs

 Higher inspection and correction costs

Scenario of Pakistan under WTO!

What is Total Quality
Management?
TQM is a proven corporate business philosophy for
competitive success, based on systematic approach in
which everyone connected with organization is focused
towards customer satisfaction.
Total – Everyone in the organization – all people & all
processes
Quality – Degree to which an organization meets
customer expectations
Management – The process of planning, organizing,
staffing, leading and controlling the organizational
activities effectively and efficiently.
TQM - Continued
TQM is a concept of business leadership in which
products and services exceed customer expectation
delivered on time and at the most competitive cost
It is achieved by consistent commitment of top
management in developing a Quality Culture,
open communication, inter-departmental
coordination and treating suppliers as partners
It involves a systematic approach, using process
workers in measuring and controlling their process
and then improving it continuously
Elements of TQM
Commitment of top management
Customer satisfaction
Employee involvement and empowerment
Performance measures and Process controls
Continuous Process Improvement
Long-term Supplier Partnership
Team based work system
TQM Approach to Business
Difference in Traditional business
operations and TQM Operations
Traditional Operations:
Production – inspection – Sales
TQM Operations:
Customer Needs – Designing –
Processing – Testing – Supply- Sales -
Feedback
 What’s the Difference?
Quality Element Traditional Way TQM Way
Management Focus Quantity of Output Quality of Output

Responsibility QA Dept Everyone

Emphasis Detection Prevention
Decision making Individual, short-term Teams, Long-term

Procurement Criteria Lower Price Better Quality

Reward Basis Higher Output Quality Improvement

Manager’s Role Assign, Enforce, Delegate, Facilitate,

Control Mentor
Benefits of TQM
Greater Market share
More customer Retention
Less wastage, rework and scrap
Reduced production cost
Higher worker motivation
Less procurement related problems
Less R&D to production time
Unity of purpose among departments
Better Process Controls