Total Quality Management

Group Members:
Yash Acharekar - 167
Mahima Rao - 138
Chaitali Poojary - 129
Kareena Wasan -135
Pouras Kudtarkar - 147

Introduction
What is Total Quality Management?
● Total Quality Management (TQM) is the continual process of detecting and
reducing or eliminating errors in manufacturing, streamlining supply chain
management, improving the customer experience, and ensuring that
employees are up to speed with training.
● TQM consists of organization-wide efforts to “install and make permanent
climate where employees continuously improve their ability to provide on
demand products and services that customers will find of particular value.
● The standards set as a part of the TQM approach can reflect both internal
priorities and any industry standards currently in place.

History
● In the late 1970s and early 1980s, William Deming, a managing consultant,
created the term Total Quality Management.
● Developed countries of North America and Western Europe suffered
economically in the face of stiff competition from Japan’s ability to produce
high quality goods at competitive prices.
● If Japan Can…..Why can’t We?
● In the Spring of 1984, The United States Navy tried adopting TQM of
William Deming.
● Creation of the Malcolm Baldrige National Quality Award in 1987 and
Federal Quality Institute in June 1988.

Understanding TQM
● In TQM, “Total” emphasizes that departments in addition to production are
obligated to improve their operations.
● “Management” emphasizes that executives are obligated to actively
manage quality through funding, training, staffing, and goal-setting.
● Total Quality Management is a structured approach to overall
organizational management.
● Industry Standards can be defined at multiple levels and may include
adherence to various laws and regulations governing the operation of a
particular business.

8 Principles of Total Quality Management
1. Customer Focus
2. Total Employee Involvement
3. Process Centered
4. Integrated System
5. Decision Making Based on Facts
6. Continual Improvement
7. Strategic and Systematic Approach
8. Communication

1. CUSTOMER FOCUSED :
Trainingemployees Quality intothe design process Upgrading software

2. Total Employee Involvement:
Common goal
Total employeeengagement Moved fear Employeeempowerment
can only beobtained
Proper environment

3. Process Centered
A fundamental part of TQM is its focus on
Process thinking
Inputs from suppliers Process Output

4. Integrated System
An organization should have an integrated system that
provides effective total quality management.
QUALITY STANDARD
ISO9001
Implied system
It should be understood Applied across all functions and divisions

5. Decision Making Based on Facts
Total Quality Management requires that an organization
Frequentlycollect and analyze data Decision-makingaccuracy

6. Continual Improvement
● TQM focuses on Continual Improvement of Processes.
● Continual Improvement itself is a never ending process.
● Continual improvement drive helps organizations to become more
competitive and effective in meeting/ exceeding customer’s expectations.

7. Strategic & Systematic Approach
Quality Management Strategicor systematicapproach
System
Strategic planning or Strategic management
This includes-
Formationof a strategicplan Qualityas a core component

8. Communication
Effective communication Maintaining morale Motivating employees
playsa significant part
COMMUNICATION INVOLVES -
Strategies Practice Timeliness

STEPS IN IMPLEMENTING TQM
PLAN DO CHECK ACT
Objective and Implement Monitor and Adapt, Improve
processes to process measure process. and change
meet consumer Report result processes.
need and organizational
policies.

PLAN
● Identify the problem.
● What is going wrong in organization.
● Screening the ideas.
● Generating the solutions.
PLAN
In this phase
employees have to
come up with their
problems and queries

DO
● Test the potential solution
● Pilot study
● Testing in small geographic area
DO
In the doing
phase, employees
develop a solution
for the problems.

CHECK
● Study result
● Assessing whether we got the desired outcome or not.
● Analysing the pilot project.
CHECK
Checking phase is
the stage where
people actually do
a comparison
analysis of before
and after data.

ACT
● Implement the best solution
● Look for ways to make even better.
ACT
In this phase
employees document
their results and
prepare themselves
to address other
problems

Kaizen
● Japanese word - “improvement”
● Continuous effort by each and every employee (from the CEO to field staff)
to ensure improvement of all processes and systems of a particular
organization.
● Kaizen works on the basic principle -
“Change is for good”.

Five S of Kaizen
● SEIRI
● SEITION
● SEISO
● SEIKETSU
● SHITSUKE

Six Sigma
● Six Sigma is a quality management methodology used to help businesses
improve current processes, products or services by discovering and eliminating
defects.
● The goal is to streamline quality control in
manufacturing or business processes so there is
little to no variance throughout.

Six Sigma Methodology
● Define
● Measure
● Analyse
● Improve
● Control

The Six Sigma DMADV :
● Define
● Measure
● Analyse
● Design
● Verify

Companies that have Implemented TQM

Case Study - Ritz-Carlton

About Ritz-Carlton
● Founder - Cesar Ritz.
● 1898 - First Hotel in Paris.
● 1927 - Hotels in New York, Boston & Atlantic City as well as London &
Montreal.
● 1940 - Closure of all Hotels except one.
● 1983 - Name and Trademark purchased by William B Johnson.
● 1995 - Marriott acquired 49%
● 1998 - Marriott acquired remaining 51% of the company.
● 1997 - 34 hotels, 25 city hotels and 9 resorts.
● 2013 - Bangalore, India.
● 2019 - Pune, India

Ritz Commitment to Excellence
To achieve the objective of the Hotel, a philosophy was made known as Gold
Standards which includes the Credo, the Motto, the three steps of service and the 20
Ritz-Carlton basics.
1. THE CREDO
● Credo embodies essential characteristics of products and services provided by
Ritz-Carlton.
“The Ritz-Carlton hotel is a place where the genuine care and comfort of
our guests is our highest mission. We pledge to provide the finest personal
service and facilities for our guests who will always enjoy a warm, relaxed,
yet refined ambiance. The Ritz-Carlton experience enlivens the senses,
instills well-bring, and fulfills even the unexpressed wishes and needs of
our guests”

2. The Motto
“We are Ladies and Gentlemen serving Ladies and Gentlemen”
● It represents Ritz-Carlton’s philosophy and commitment to quality and
service.
3. The 3 Steps to Service
● Greet the Customers.
● Anticipate the needs of Customers.
● Fond Farewell.
4. The Basics
● 20 Carlton Basics.
● Code of Conduct.
● Commitment to Quality Service and Customer Satisfaction.

Employee Selection, Training & Staffing
The four steps taken to ensure high standards for quality includes:
1. Employee Selection.
● List of personality traits of the best employees that best fit each job.
● 55 open ended questions to identify the individuals natural talents.
1. Employee Orientation.
● 2 day orientation seminar.
● Followed by a “Day 21 Meeting”

3. Employee Training Certification.
● Training by fellow employee(certified by his/her manager).
● 30 day training process
● Technical training and exposure to the Gold Standards.
● Written & Skill Demonstration Test
4. Continuous Coaching
● Throughout the duration of employment.
● Daily updates.
“All these practices helped Ritz reduce turnover by 30% at a time when the
industry turnover was 110%”

TQM at Ritz-Carlton
● Customer Complaints.
● Embrace Traditional techniques of TQM.
● Change within management.
● Main Aim : Defect Free Service.
● Focused more on Customer Satisfaction.
● Progress towards Six Sigma.
● Devoting 25% of the schedule to Quality Enhancement Issues.
● Weekly review of Quality Standards and performance.
● Incentive System for Employees.

PROCESS CONTROL
● Quality Department.
● Quality Mascot was adopted for Mistakes, Rework, Breakdown,
Inefficiency and Variation.
THE DYNAMIC QUALITY INFORMATION SYSTEM
● Development of system to track defected data or services or feedback.
● Defects were reported daily and it was compiled into a Daily Quality
Production Report (DQPR)
● Inputs of the reports are given by employees.

PRODUCING THE DQPR
● All the detects gathered are filled in the Dynamic Quality Information
System.
● Tool for Improvement.
USING THE DQPR
● Employees charged with
instant pacification.
● Analyzing the defects and generating reports.

PROBLEM SOLVING
● Identification of Causes of Problems.
● Quality Improvement Teams are created.
● Common approach to eliminate problem are Six Step Problem solving
process.
CUSTOMER SATISFACTION
● Continuous Customer Feedback.
● Measures the level of satisfaction experienced by customers.
● Opinion Cards.
● Telephone Surveys conducted by J.D. Powers & Associates.
● Continual benchmarking between different hotels.

Benefits Of TQM
● Cost Reduction and Increased Profitability
● Facilitates Productivity
● Reduces Redundant Activities
● Promotes Innovation Process
● Market-Specific Products/Services
● Market-Specific Products/Services
● Promotes Continual Improvement
● Facilitates Competitive Edge
● Promotes Good-Will
● Facilitates Effective Communication and Employee Morale
● Facilitates Customer Satisfaction

Conclusion

Thank You!