TOTAL QUALITY MANAGEMENT

Quality
It is the degree to which a set of inherent characteristics fulfills the requirements.
Degree means that quality can be used with adjectives like poor, good, and excellent.
Inherent is defined as existing in something, especially as a permanent characteristics.
Characteristics can be quantitative or qualitative
Requirement is a need or expectation that is stated; generally implied by the organization,
its customers, and other interested parties. Or obligatory.

Quality can be quantified as Q = P / E
where Q = Quality,
P = Performance and
E = Expectation
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Total Quality Management
TQM is an enhancement to the traditional way of doing business. It is a proven technique to
guarantee survival in world class competition. Only by changing the actions of management
will the culture and actions of an entire organization be transformed.

Total : Made up of the whole
Quality : Degree of excellence a product or service provides
Management : Act, art or manner of handling , controlling ,directing etc.

So TQM is the art of managing the whole to achieve excellence. It is both a philosophy and a
set of guiding principles that represent the foundation of continuously improving the
organization. It is the application of quantitative methods and human resources to improve all
the processes within the organization and exceed customer needs now and in the near
future.

TQM integrates fundamental management techniques, existing improvement efforts, and
technical tools under a disciplined approach.
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Basic concepts of TQM
A committed and involved management to provide long term top-to-bottom organizational
support : LEADERSHIP

An unwavering focus on the customer, both internally and externally : CUSTOMER
SATISFACTION

Effective involvement and utilization of the entire work force : EMPLOYEE INVOLVEMENT

Continuous improvement of the business and production process : CONTINUOUS
PROCESS IMPROVEMENT

Treating suppliers as partners : SUPPLIER PARTNERSHIP

Establish performance measures for the processes : PERFORMANCE MEASURES
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New and Old Cultures
Quality Element > Previous State > TQM

Definition > Product oriented > Customer oriented

Priorities > Second to service and cost > First among equals of service and cost

Decisions > Short term > Long term

Emphasize > Detection > Prevention

Errors > Operations > System

Responsibility > Quality Control > Everyone

Problem solving > Managers > Teams

Procurement > Price > Life cycle costs , partnership

Managers Role > Plan, assign, control and enforce > Delegate , coach, facilitate, and
mentor
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Gurus of TQM
Walter A. Shewart Ph.D. : Control Chart Theory, PDSA Cycle



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Gurus of TQM
W. Edwards Deming Ph.D.: 14 points of theory of management to improve quality,
productivity and competitive position


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Gurus of TQM
Joseph M. Juran Ph.D. : Juran Trology




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Gurus of TQM
Armand V. Feigenbaum Ph.D. : Author of Total Quality Control



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Gurus of TQM
Kaoru Ishikawa Ph.D. : Author of Quality is Free and Quality Without Tears ; Fishbone /
Ishikawa diagram for analysing cause and effect




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Gurus of TQM
Genichi Taguchi Ph.D. : Taguchi philosophy


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TQM Framework
Gurus

Principles and Practices

Tools and techniques

Product or Service realization

Customer
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Dimensions of Quality
Performance : Primary product characteristics, such as brightness of the picture

Features : Secondary characteristics , added features, such as remote control

Conformance : Meeting specifications or industry standards , workmanship

Reliability : Consistency of performance over time, average time for the unit to fail

Durability : Useful life, includes repair

Service : Resolution of problems and complaints, ease of repair

Response : Human-to-human interface, such as the courtesy of the dealer

Aesthetics : Sensory characteristics, such as exterior finish

Reputation : Past performance and other intangibles , such as being ranked first

Adapted from : David A. Garvin, Managing Quality : The Strategic and Competitive
Edge (New York : Free Press : 1988)
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Quality Costs
Cost of Quality (COQ) :

Cost of prevention

Cost of appraisal

Cost of internal failure

Cost of external failure

Analysis techniques for quality costs

Trend analysis

Pareto analysis
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Obstacles / Barriers to implementing TQM
Lack of management commitment

Inability to change organizational culture

Improper planning

Lack of continuous training and education

Incomplete organizational structure and isolated individuals and departments

Ineffective measurement techniques and lack of access to data and results

Paying inadequate attention to internal and external customers

Inadequate use of empowerment and teamwork

Failure to continually improve
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Deming Prize
The Deming prize, established in December 1950 in honor of W. Edwards Deming, was
originally designed to reward Japanese companies for major advances in quality
improvement. Over the years it has grown, under the guidance of Japanese Union of
Scientists and Engineers (JUSE) to where it is now also available to non-Japanese
companies, albeit usually operating in Japan, and also to individuals recognized as having
made major contributions to the advancement of quality. The awards ceremony is broadcast
every year in Japan on national television.

Two categories of awards are made annually, the Deming Prize for Individuals and the
Deming Application Prize.

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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. It is administered
by the Baldrige Performance Excellence Program, which is based at and managed by the
National Institute of Standards and Technology, an agency of the U.S. Department of
Commerce. Up to 18 awards may be given annually across six eligibility categories
manufacturing, service, small business, education, health care, and nonprofit. As of 2010, 91
organizations had received the award.

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Quality Planning
The road map consists of structured and sequential steps

Output of each preceding activity or step becomes the input for the next step and so on

This quality planning road map is applicable to all industries in both the manufacturing and
service sectors. It is applicable at all levels in an organization, such as corporate, division,
department, job and in all functional areas like marketing, finance,production / operations and
human resources (HR)

The quality planning road map can be applied at the following levels

Supervisory and worker level

Functional level

Multifunctional systems and

Major programs
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Supervisory and Worker Levels
Each employee is assigned a job .Large number of jobs require quality planning as well as
re-planning as the job may be dynamic. In some cases the employees themselves are
training to plan their jobs.

The concepts and tools which are used for quality planning at this stage are
Self control concept
Triple role concept


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Self control concept
The self control concept emphasizes that the person should have full control as well as
mastery over the attainment of planned results of the assigned job. Inorder to achieve self
control, a person should be provided with

Knowledge of what he is supposed to do
Knowledge of what others are doing and
Means for regulating either of the above two, if the failure to meet the objectives results

The triple role concept
It stresses that each employee holding a job should be able to carry out the following 3 roles
As a customer (getting inputs from suppliers)
As a processor
As a supplier (Creating products to customers)
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Leadership is the capacity to turn vision to reality
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The ultimate measure of leaders is not where you stand in moments of comfort and
conveniences, but where they stand in terms of challenge and controversy.
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Dr. Edward Deming
Dr. W. Edwards Deming: (1900-1993) is considered to be the Father of Modern Quality. Dr.
Deming preached that to achieve the highest level of performance requires more than a
good philosophy the organization must change its behavior and adopt new ways of doing
business.
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Point 1: Create constancy of purpose toward
improvement of the product and service so as to
become competitive, stay in business and
provide jobs.

Point 2: Adopt the new philosophy. We are in a
new economic age. We no longer need live with
commonly accepted levels of delay, mistake,
defective material and defective workmanship.

Point 3: Cease dependence on mass inspection;
require, instead, statistical evidence that quality is
built in.

Point 4: Improve the quality of incoming
materials. End the practice of awarding business
on the basis of a price alone. Instead, depend on
meaningful measures of quality, along with price.

Point 5: Find the problems; constantly improve
the system of production and service. There
should be continual reduction of waste and
continual improvement of quality in every activity
so as to yield a continual rise in productivity and a
decrease in costs.

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Point 6: Institute modern methods of training and
education for all. Modern methods of on-the-job
training use control charts to determine whether a
worker has been properly trained and is able to
perform the job correctly. Statistical methods must
be used to discover when training is complete.

Point 7: Institute modern methods of supervision.
The emphasis of production supervisors must be
to help people to do a better job. Improvement of
quality will automatically improve productivity.
Management must prepare to take immediate
action on response from supervisors concerning
problems such as inherited defects, lack of
maintenance of machines, poor tools or fuzzy
operational definitions.
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Point 8 : Fear is a barrier to improvement so
drive out fear by encouraging effective two-way
communication and other mechanisms that will
enable everybody to be part of change, and to
belong to it.

Fear can often be found at all levels in an
organization: fear of change, fear of the fact that it
may be necessary to learn a better way of
working and fear that their positions might be
usurped frequently affect middle and higher
management, whilst on the shop-floor, workers
can also fear the effects of change on their jobs.

Point 9: Break down barriers between
departments and staff areas. People in different
areas such as research, design, sales,
administration and production must work in teams
to tackle problems that may be encountered with
products or service.

Point 10: Eliminate the use of slogans, posters
and exhortations for the workforce, demanding
zero defects and new levels of productivity
without providing methods. Such exhortations
only create adversarial relationships.

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Point 11: Eliminate work standards that prescribe
numerical quotas for the workforce and numerical
goals for people in management. Substitute aids
and helpful leadership.

Point 12: Remove the barriers that rob hourly
workers, and people in management, of their right
to pride of workmanship. This implies, abolition of
the annual merit rating (appraisal of performance)
and of management by objectives.

Point 13: Institute a vigorous program of
education, and encourage self-improvement for
everyone. What an organization needs is not just
good people; it needs people that are improving
with education.

Point 14: Top management's permanent
commitment to ever-improving quality and
productivity must be clearly defined and a
management structure created that will
continuously take action to follow the preceding
13 points.

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Quality Council
Quality Council is a team to provide overall direction for achieving the total quality culture

Composition :
Chief Executive Officer (CEO)
Senior Managers of the functional areas eg design, manufacturing etc
Coordinator or consultant

Duties
To establish the corer values and quality statements
To establish the strategic long term plan with goals and the annual quality improvements
program with objectives
To plan the training and education programs
To determine and monitor the cost of poor quality
To perform and monitor the performance measures for each functional areas of the
organization
To establish multifunctional project and departmental teams and monitor their progress
To establish / revise the recognition and reward system periodically
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What is strategy ? Literal meaning
The science and art of using all the forces of a nation to execute approved plans as
effectively as possible during peace or war. The science and art of military command as
applied to the overall planning and conduct of large-scale combat operations.

A plan of action resulting from strategy or intended to accomplish a specific goal.

The art or skill of using stratagems in endeavors such as politics and business

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What is the relation of Strategic Planning and Total Quality
Management?

When an organization chooses to make quality a major competitive edge (differentiation), it
becomes the central issue in strategic planning. This is especially reflected in vision, mission
and policy guidelines of an organization.

An essential idea behind strategic quality planning is that the product is customer value
rather than a physical product or service. This feat cannot be achieved unless an
organization creates a culture of quality and no strategy and plan can be worthwhile unless it
is carefully implemented.

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Seven steps to Quality Planning

Discover customer needs

Customer positioning

Predict the future

Gap analysis

Closing the gap

Alignment

Implementation
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1. Customer Needs: The first step is to discover the future needs of the customers. Who will
they be? Will your customer base change? What will they want? How will they want? How
will the organization meet and exceed expectations?
2. Customer Positioning: Next, the planners determine where organization wants to be in
relation to the customers. Do they want to retain, reduce, or expand the customer base.
Product or services with poor quality performance should be targeted for breakthrough or
eliminated. The organizations needs to concentrate its efforts on areas of excellence.
3. Predict the future: Next planners must look into their crystal balls to predict the future
conditions that will affect their product or service. Demographics, economics forecasts, and
technical assessments or projections are tools that help predict the future.
4. Gap Analysis : This step requires the planner to identify the gaps between the current
state and the future state of the organization. An analysis of the core values and concepts is
an excellent technique for pinpointing gaps.
5. Closing the Gap: The plan can now be developed to close the gap by establishing goals
and responsibilities. All stakeholders should be included in the development of the plan.
6. Alignment: As the plan is developed, it must be aligned with the mission, vision, and core
values and concepts of the organization. Without this alignment, the plan will have little
chance of success.
7. Implementation: This last step is frequently the most difficult. Resources must be
allocated to collecting data, designing changes, and overcoming resistance to change. Also
part of this step is the monitoring activity to ensure that progress is being made. The
planning group should meet at least once a year to assess progress and take any corrective
action.

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Quality Statements
Quality statements are part of strategic planning process and once developed, are
occasionally reviewed and updated.

There are three types of quality statements:
1. Vision statement
2. Mission statement
3. Quality policy statement

The utilization of these statements varies from organization to organization. Small
organization may use only the quality policy statement

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Vision Statement

The vision statement is a short declaration what an organization aspires to be tomorrow. A
vision statement, on the other hand, describes how the future will look if the organization
achieves its mission.

Successful visions are timeless, inspirational, and become deeply shared within the
organization, such as:

IBMs Service
Apples Computing for the masses
Disney theme parks the happiest place on the earth, and
Polaroids instant photography

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Mission Statement
A mission statement concerns what an organization is all about. The statement answers the
questions such as: who we are, who are our customers, what do we do and how do we do it.
This statement is usually one paragraph or less in length, easy to understand, and describes
the function of the organization. It provides clear statement of purpose for employees,
customers, and suppliers.

An example of mission statement is:
Ford Motor Company is a worldwide leader in automatic and automotive related products
and services as well as the newer industries such as aerospace, communications, and
financial services. Our mission is to improve continually our products and services to
meet our customers needs, allowing us to prosper as a business and to provide a
reasonable return on to our shareholders, the owners of our business.

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Quality Policy
The quality policy is a guide for everyone in the organization as to how they should provide
products and services to the customers. It should be written by the CEO with feedback from
the workforce and be approved by the quality council. A quality policy is a requirement of ISO
9000.

A simple quality policy is:

Xerox is a quality company. Quality is the basic business principle for Xerox. Quality
means providing our external and internal customers with innovative products and
services that fully satisfy their requirements. Quality is the job of every employee.

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Customer Satisfaction

Customer satisfaction model

Internal and external customers

Customer perception of quality

Performance
Features
Service
Warranty
Price
Reputation


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Customer complaints / Tools used for collecting customer
complaints
Comment card

Customer questionnaire

Focus groups

Toll free telephone numbers

Customer visits

Report cards

Internet and computer

Employee feedback
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Thank You