Total Quality Management

P. M. Sagare
M. Tech. PLM
Total Quality Management

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.

Changing the actions of management will transform the culture and actions of an entire organization.

TQM is for the most part common sense.

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.
Total Quality Management

TQM is defined as both a philosophy and a set of guiding principles that represent the foundation
of a continuously improving organization.

It is the application of quantitative methods and human resources to improve all the processes
within an organization and exceed customer needs now and in the future.

TQM integrates fundamental management techniques, existing improvement efforts, and

technical tools under a disciplined approach.
Total Quality Management

TQM requires six basic concepts:

1. A committed and involved management to provide long-term top-to-bottom organizational support.

2. An unwavering focus on the customer, both internally and externally.
3. Effective involvement and utilization of the entire work force.
4.. Continuous improvement of the business and production process
5. Treating suppliers as partners.
6. Establish performance measures for the processes.
Total Quality Management

TQM requires six basic concepts:

1. A committed and involved management to provide long-term top-to-bottom organizational support.

 Management must participate in the quality program.

 A quality council must be established to develop a clear vision, set long-term goals, and direct the
program.
 Quality goals are included in the business plan.
 An annual quality improvement program is established and involves input from the entire work
force.
 Managers participate on quality improvement teams and also act as coaches to other teams.
 TQM is a continual activity that must be entrenched in the culture—it is not just a one-shot
program.
 TQM must be communicated to all people.
Total Quality Management

TQM requires six basic concepts:

2. An unwavering focus on the customer, both internally and externally.

 The key to an effective TQM program is its focus on the customer.

 An excellent place to start is by satisfying internal customers.
 We must listen to the “voice of the customer” and emphasize design quality and defect prevention.
 Do it right the first time and every time, for customer satisfaction is the most important
consideration.
Total Quality Management

TQM requires six basic concepts:

3. Effective involvement and utilization of the entire work force.

 TQM is an organization-wide challenge that is everyone’s responsibility.

 All personnel must be trained in TQM, Statistical Process Control (SPC), and other appropriate
quality improvement skills so they can effectively participate on project teams.
 Including internal customers and, for that matter, internal suppliers on project teams is an excellent
approach.
 Those affected by the plan must be involved in its development and implementation. They
understand the process better than anyone else.
 Changing behavior is the goal. People must come to work not only to do their jobs, but also to
think
about how to improve their jobs.
 People must be empowered at the lowest possible level to perform processes in an optimum
manner.
Total Quality Management

TQM requires six basic concepts:

4.. Continuous improvement of the business and production process

 There must be a continual striving to improve all business and production processes.
 Quality improvement projects, such as
o on-time delivery,
o order entry efficiency,  Technical techniques such as
o billing error rate, o SPC,
o customer satisfaction, o benchmarking,
o cycle time, o quality function deployment,
o scrap reduction, and o ISO 9000, and
o supplier management, o designed experiments
are good places to begin. are excellent for problem solving.
Total Quality Management

TQM requires six basic concepts:

5. Treating suppliers as partners.

 On the average 40% of the sales dollar is purchased product or service; therefore, the supplier
quality must be outstanding.
 A partnering relationship rather than an adversarial one must be developed.
 Both parties have as much to gain or lose based on the success or failure of the product or service.
 The focus should be on quality and life-cycle costs rather than price.
 Suppliers should be few in number so that true partnering can occur.
Total Quality Management

TQM requires six basic concepts:

6. Establish performance measures for the processes.

 Performance measures such as

o uptime,
o percent nonconforming,
o absenteeism, and
o customer satisfaction
should be determined for each functional area.

 These measures should be posted for everyone to see.

 Quantitative data are necessary to measure the continuous quality improvement activity.
Total Quality Management
• The purpose of TQM is to provide a quality product and/or service to customers, which will, in
turn, increase productivity and lower cost.
• With a higher quality product and lower price, competitive position in the marketplace will be
enhanced.
• This series of events will allow the organization to achieve the objectives of profit and growth with
greater ease.
• In addition, the work force will have job security, which will create a satisfying place to work.
Total Quality Management

Experts/Gurus in Total Quality Management

Walter A. Shewhart 1931 Economic Control of Quality of Manufactured Product
Ronald Fisher 1925 Statistical Methods for Research Workers
1930
Design of Experiments (DOE)
Analysis of Variance (ANOVA)
1935 Design of Experiments (DOE)
1947 Design of Experiments (DOE)
W. Edwards Deming 1950 Statistical Process Control
Joseph M. Juran 1951 Juran’s Quality Control Handbook
Armand V. Feigenbaum 1951 Total Quality Control
Kaoru Ishikawa Statistical Process Control
Phillip B. Crosby 1979
Genichi Taguchi Robust Design of Parameters and Tolerances
TQM Framework

TQM Framework
 unable to market its Even after enhancements in
If Quality is Poor, product or service Automation and other productivity

Improvements in Quality increased Productivity & other benefits

Quality improvement = conformance of the product or service to specifications

+
inherent quality in the design of the system
 Quality
Quality can be quantified as
where
Q = quality
Q=P/E P = performance
E = expectations

ISO 9000: 2000

Quality is defined as the degree to which a set of inherent characteristics fulfills requirements.
Degree means that quality can be used with adjectives such as poor, good, and excellent.
Inherent is defined as existing in something, especially as a permanent characteristic.
Characteristics can be quantitative or qualitative.
Requirement is a need or expectation that is stated
Quality has nine different dimensions. Dimensions of Quality
1
2
3
4
5
6
7
8
9

Quality products can be determined by using a few of the dimensions of quality.

 Customer Satisfaction
The most important asset of any organization is its customers.
An organization’s success depends on
o how many customers it has,
o how much they buy, and
o how often they buy.

Customers that are satisfied

o will increase in number,
o buy more, and
o buy more frequently.

Satisfied customers also pay their bills promptly, which greatly improves cash flow.

Increasingly, manufacturing and service organizations are using customer satisfaction as

the measure of quality.
 Customer Satisfaction

Customer Satisfaction Organizational Diagram

 Customer Satisfaction
An organization must give its customers a quality product or service that
meets their needs at a reasonable price, which includes on-time delivery
and outstanding service.
The organization needs to continually
examine their quality system to see if it is
responsive to ever-changing customer
requirements and expectations…

Customer satisfaction, not increasing profits, satisfied customers

must be the primary goal of the organization. will lead to increased profits

Anticipating the future needs of the customer will enhance Quality – Dr. Deming
 Customer Satisfaction
• Customer satisfaction is subjective, it is hard to measure.
• There are so many facets to a customer’s experience
with a product or service that need to be measured
individually to get an accurate total picture of customer
satisfaction.
• Whether or not a customer is satisfied cannot be classed
as a yes or no answer.
• Errors can occur when customer satisfaction is
Customer Satisfaction Model, Teboul model
simplified too much.
 Customer Satisfaction
Translating Needs into Requirements

The Kano model - conceptualizes customer requirements

“Customers don’t buy products, they buy results.”

Peter Drucker

People don’t buy products; they buy transportation or

status.

Kano Model
 Customer Satisfaction

Voice of Customer
 Employee Involvement
• Employee involvement is one approach to improving quality and productivity.
• Its use is credited for contributing to the success enjoyed by the Japanese in
the world marketplace.
• Employee involvement is not a replacement for management nor is it the final
word in quality improvement.
• It is a means to better meet the organization’s goals for quality and
productivity at all levels of an organization.
 Employee Involvement
 Motivation
 Empowerment
 Teams
 Suggestion Systems
 Recognition & Reward
 Gain-sharing
 Performance Appraisal
 Unions & Employee Involvement
 Motivation
Employee Involvement
Maslow’s Hierarchy of Needs - Motivation
 One of the first and most popular motivational
theories was developed by Abraham Maslow.
 He stated that motivation could best be explained
in terms of a hierarchy of needs and that there
were five levels.
 These levels are
1. survival,
2. security,
3. social,
4. esteem, and
Maslow’s Hierarchy of Needs
5. self-actualization.
Once a given level is satisfied, it can no longer
motivate a person.
 Motivation
Employee Involvement
Maslow’s Hierarchy of Needs - Motivation
 Level 1 – Survival Level 5

Means food, clothing, and shelter, Level 4

Which is usually provided by a job.
Level 3
Proper lighting, heating/air conditioning,
Ventilation, phone system, data/voice access, and Level 2
computer information system.
Level 1

Maslow’s Hierarchy of Needs

 Motivation
Employee Involvement
Maslow’s Hierarchy of Needs - Motivation
 Level 2 – Security Level 5

Mean a safe place to work and job security, Level 4

which are very important to employees.
Having a safe work environment that may Level 3
include ergonomic adjustable furniture.
When the organization demonstrates an interest Level 2
in the personal well-being of employees, it is a
Level 1
motivating factor.
A threat of losing one’s job certainly does not
Maslow’s Hierarchy of Needs
enhance motivation.
 Motivation
Employee Involvement
Maslow’s Hierarchy of Needs - Motivation
 Level 3 – Social Level 5

Giving an individual the opportunity to be part Level 4

of the group by feeling important and needed
will motivate that person. Level 3

Employees should be provided with both formal Level 2

social areas such as a cafeteria and conference
Level 1
rooms and informal areas such as water coolers
and bulletin boards.
Maslow’s Hierarchy of Needs

Being a member of a team is a good way

to bring employees into the group.
 Motivation
Employee Involvement
Maslow’s Hierarchy of Needs - Motivation
 Level 4 – Esteem Level 5

Relates to pride and self-worth. Level 4

Everyone, regardless of position or job
assignment, wants to be recognized as a person Level 3
of value to the organization.
Where possible, employees should be given Level 2
offices or personal spaces with aesthetics.
Level 1
Business cards, workspace size, and office
protocols also provide employees with a certain
Maslow’s Hierarchy of Needs
level of self-esteem within an organization.
Seeking advice or input into business or
production processes
 Motivation
Employee Involvement
Maslow’s Hierarchy of Needs - Motivation
 Level 5 – Self-Actualization Level 5

Individuals must be given the opportunity to go Level 4

as far as their abilities will take them.
Many organizations have a policy of promoting Level 3
from within.
It is important to note that as employees move Level 2
up the hierarchy, they will immediately revert
Level 1
back to the previous level if they feel
threatened.
Maslow’s Hierarchy of Needs
For example, if an employee is satisfied in Level
3, a rumor of downsizing may cause an
immediate return to Level 2.
 Motivation
Employee Involvement
Herzberg’s Two-Factor Theory - Motivation
Extended the general work of Maslow.
He found that people were motivated by recognition, responsibility, achievement,
advancement, and the work itself. These factors were labeled motivators.
bad feelings were associated with low salary, minimal fringe benefits, poor working
conditions, ill-defined organizational policies, and mediocre technical supervision.

Dissatisfiers must be taken care of before motivators can be actuated.

 Motivation
Employee Involvement
Herzberg’s Two-Factor Theory - Motivation
Concepts to achieve a motivated work force are as follows:
1. Know thyself
2. Know your employees
3. Establish a positive attitude
4. Share the goals
5. Monitor progress
6. Develop interesting work
7. Communicate effectively
8. Celebrate success