Total Quality

Management

Presented By:

Brij Bhushan Singh (K - 13)

Harjeet Singh (K – 17)

Sameer Singh (J – 29)

1
 Introduction
n In today’s world due to insufficient quality or indifference to
quality lead to disputes, which imposes serious drain on
the financial resources of a company and limits profit
potential.

n To be competitive in today’s market, it is essential for

construction companies to provide more consistent
quality and value to their owners/customers.

n It is high time to develop better and more direct

relationships with our owners/customers, to initiate
more teamwork at the jobsite, and to produce better
quality work.

2


n Total – Made up of the whole(or) Complete i.e.

Organization wide
n Quality – Degree of Excellence a product or service
provides to the customer in present and future.
n Management – Act , art, or manner of handling ,
controlling, directing, etc.
TQM is the art of managing the whole to achieve

excellence.


3
Dimensions of
Quality
Durability- Useful life ,include repair.

Service-Resolution of problems,ease of repair.

Response- Human relations with Customers.

Aesthetics-Sensory Features.

Reputation- Past performance, Company

Image.
4
Definition:
"TQM is a management approach for an
organization, centered 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 organization
and to society."

5
 BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

FOUR KEY PRINCIPLES

•Measure quality so you can affect it

•Focus on a moving customer

•Involve every employee

•Think long term - Act short term

Evolution of
quality
Evolution Era
TQM

TQC & CWQC (Company wide

quality control)
TQC

SQC

Inspection

Foreman

Craftsman
Years
1900 1920 1940 1960 1980 1990 2000 8
Evolution of quality –
Means & Focus
1975 1980 1985 1990 1995 2000

Productivity Quality TQC/TQM

Total
Quality Quality
Circle

Quality
Employee
of
Involvement
Work life

Self Directed Self

Teams Directed/Managed
Employees Teams
Empowerment

Operation Customers Innovations 9

 Gurus of TQM
n Walter Shewart
u In 1920s, developed control charts

u Introduced the term “quality assurance”



n W. Edwards Deming
u Developed courses during World War II to teach
statistical quality-control techniques to engineers
and executives of companies that were military
suppliers
u Gave PDCA Cycle


n Joseph M. Juran
u Followed Deming to Japan in 1954

u Focused on strategic quality planning

10

 The Deming Cycle or PDCA Cycle

PLAN
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT DO
Adopt the change as a Implement the change on
permanent modification to a small scale and measure
the process, or abandon it. the effects

CHECK
Study the results to learn
what effect the change
had, if any.
Joseph M. Juran and the Cost Of Quality
 Prevention
n
Costs:
It includes those activities which removes and
prevent the defects from occurring in production
process.


n It includes activities like:

u Quality planning costs
« costsof developing and implementing
quality management program


u Product-design costs
« costsof designing products with quality
characteristics
13
 Cont….
u Process costs
« costsexpended to make sure productive
process conforms to quality
specifications


u Training costs
« costs of developing and putting on quality
training programs for employees and
management


u Information costs
« costs of acquiring and maintaining data
related to quality, and development of
reports on quality performance 14
 Appraisal Costs:
n These are the cost incurred to measure the
quality of product.


n It includes those activities to reduce the no. of

defective products.


n It includes following activities:

u Inspection and testing
« costsof testing and inspecting materials,
parts, and product at various stages
and at the end of a process.
 Cont….
u Test equipment costs
« costs of maintaining equipment used in
testing quality characteristics of products


u Operator costs
« costs of time spent by operators to gar data
for testing product quality, to make
equipment adjustments to maintain
quality, and to stop work to assess quality

16
 Internal Failure Costs: 
n These are the cost incurred when the product
defects are discovered, prior to the delivery of
products to customers.


n It include following costs

u Scrap costs
« costsof poor-quality products that must
be discarded, including labor, material,
and indirect costs
u Rework costs
« costsof fixing defective products to
conform to quality specifications.
 Cont….
u Process failure costs
« costsof determining why production
process is producing poor-quality
products


u Process downtime costs

« costs of shutting down productive process
to fix problem


u Price-downgrading costs
« costs of discounting poor-quality products—
that is, selling products as “seconds”
 18
 External Failure Costs:
n These are cost arises when low quality products
are delivered to the customers and it results in
customer dissatisfaction.


n It includes following costs:

u Customer complaint costs
« costsof investigating and satisfactorily
responding to a customer complaint
resulting from a poor-quality product
u Product return costs
« costsof handling and replacing poor-quality
products returned by customer

 Cont….
u Warranty claims costs
« costs of complying with product warranties


u Product liability costs

« litigation costs resulting from product
liability and customer injury


u Lost sales costs

« costs incurred because customers are
dissatisfied with poor quality products and
do not make additional purchases

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 Joseph M. Juran and the Cost Of Quality

Prevention
&
Total Appraisal Cost
Costs
Costs

Internal
&
External Failure Cost
Point of “Enough quality”

Production
Real Life

TQM has being implemented in



n TVS Group.
n Boeing Aircraft
n Reliance
n Tata
n L&T
n HMT
n ITI

“Gold in the Mine” 22

Obstacles
Top management commitment

Changing Organization Culture

Improper planning

Continuous Training & Education

23
Obstacles
Organization Structure & Departments

Data’s & Facts For Effective Decisions

Internal & External Customers-

Dissatisfaction

Empowerment & Teamwork

Continuous Improvement

24
Benefits
Improved Quality

Employee Participation

Team Work

Internal & External Customer Satisfaction

Productivity ,Communication

Profitability & Market Share

25
Quality is a Journey,
not a Destination