tqm

1. Total Quality ManagementTotal Quality Management
Submitted By:
Mradul KankaneMradul Kankane
St.Peters Institute Of Pharmaceutical SciencesSt.Peters Institute Of Pharmaceutical Sciences
Hanamkonda, WarangalHanamkonda, Warangal
506001506001

2. ContentsContents
 DefinitionDefinition
 MethodologyMethodology
 ConceptsConcepts
 Total Quality ManagementTotal Quality Management
 ConceptConcept
 SummarySummary
 ReferencesReferences

3. Definition - QualityDefinition - Quality
 Definition of quality is dependent on theDefinition of quality is dependent on the
people defining itpeople defining it
 There is a lack of a single, universal definitionThere is a lack of a single, universal definition
of qualityof quality
 5 common definitions include5 common definitions include
 Conformance to specificationsConformance to specifications
 Fitness for useFitness for use
 Value for price paidValue for price paid
 Support servicesSupport services
 Psychological criteriaPsychological criteria

4.  Conformance to specificationsConformance to specifications
 Does product/service meet targets and tolerancesDoes product/service meet targets and tolerances
defined by designers?defined by designers?
 Fitness for useFitness for use
 Evaluates performance for intended useEvaluates performance for intended use
 Value for price paidValue for price paid
 Evaluation of usefulness vs. price paidEvaluation of usefulness vs. price paid
 Support servicesSupport services
 Quality of support after saleQuality of support after sale
 PsychologicalPsychological
 e.g. Ambiance, prestige, friendly staffe.g. Ambiance, prestige, friendly staff

5. Quality GurusQuality Gurus

6. Deming’s 14 PointsDeming’s 14 Points
 Create constancy of purpose toward improvement ofCreate constancy of purpose toward improvement of
product and service, with the aim to becomeproduct and service, with the aim to become
competitive and to stay in business, and to providecompetitive and to stay in business, and to provide
jobs.jobs.
 Adopt the new philosophy. We are in a newAdopt the new philosophy. We are in a new
economic age. Western management must awaken toeconomic age. Western management must awaken to
the challenge, must learn their responsibilities, andthe challenge, must learn their responsibilities, and
take on leadership for change.take on leadership for change.
 Cease dependence on inspection to achieve quality.Cease dependence on inspection to achieve quality.
Eliminate the need for inspection on a mass basis byEliminate the need for inspection on a mass basis by
building quality into the product in the first place.building quality into the product in the first place.

7.  End the practice of awarding business on the basis ofEnd the practice of awarding business on the basis of
price tag. Instead, minimize total cost. Move toward aprice tag. Instead, minimize total cost. Move toward a
single supplier for any one item, on a long-termsingle supplier for any one item, on a long-term
relationship of loyalty and trust. Improve constantlyrelationship of loyalty and trust. Improve constantly
and forever the system of production and service, toand forever the system of production and service, to
improve quality and productivity, and thus constantlyimprove quality and productivity, and thus constantly
decrease costs.decrease costs.
 Institute training on the job.Institute training on the job.
 Institute leadership (see Point 12 and Ch. 8). The aimInstitute leadership (see Point 12 and Ch. 8). The aim
of supervision should be to help people and machinesof supervision should be to help people and machines
and gadgets to do a better job. Supervision ofand gadgets to do a better job. Supervision of
management is in need of overhaul, as well asmanagement is in need of overhaul, as well as
supervision of production workers.supervision of production workers.

8.  Drive out fear, so that everyone may work effectivelyDrive out fear, so that everyone may work effectively
for the company.for the company.
 Break down barriers between departments. People inBreak down barriers between departments. People in
research, design, sales, and production must work as aresearch, design, sales, and production must work as a
team, to foresee problems of production and in useteam, to foresee problems of production and in use
that may be encountered with the product or service.that may be encountered with the product or service.
 Eliminate slogans, exhortations, and targets for theEliminate slogans, exhortations, and targets for the
work force asking for zero defects and new levels ofwork force asking for zero defects and new levels of
productivity. Such exhortations only createproductivity. Such exhortations only create
adversarial relationships, as the bulk of the causes ofadversarial relationships, as the bulk of the causes of
low quality and low productivity belong to the systemlow quality and low productivity belong to the system
and thus lie beyond the power of the work force.and thus lie beyond the power of the work force.
 Eliminate work standards (quotas) on the factoryEliminate work standards (quotas) on the factory
floor. Substitute leadership.floor. Substitute leadership.
 Eliminate management by objective. EliminateEliminate management by objective. Eliminate
management by numbers, numerical goals.management by numbers, numerical goals.
SubstituteSubstitute leadership.leadership.

9.  Remove barriers that rob the hourly worker of hisRemove barriers that rob the hourly worker of his
right to pride of workmanship. The responsibility ofright to pride of workmanship. The responsibility of
supervisors must be changed from sheer numbers tosupervisors must be changed from sheer numbers to
quality.quality.
 Institute a vigorous program of education and self-Institute a vigorous program of education and self-
improvement.improvement.
 Put everybody in the company to work to accomplishPut everybody in the company to work to accomplish
the transformation. The transformation is everybody'sthe transformation. The transformation is everybody's
job.job.

10. Evolution of TQMEvolution of TQM

11. Cost of QualityCost of Quality
 Quality affects all aspects of the organizationQuality affects all aspects of the organization
 Quality has dramatic cost implications of;Quality has dramatic cost implications of;
 Quality control costsQuality control costs
 Prevention costsPrevention costs
 Appraisal costsAppraisal costs
 Quality failure costsQuality failure costs
 Internal failure costsInternal failure costs
 External failure costsExternal failure costs

12. TQM MethodologyTQM Methodology
 TQM Focuses on identifying quality problem rootTQM Focuses on identifying quality problem root
causescauses
 Encompasses the entire organizationEncompasses the entire organization
 Involves the technical as well as peopleInvolves the technical as well as people
 Relies on seven basic concepts ofRelies on seven basic concepts of
 Customer focusCustomer focus
 Continuous improvementContinuous improvement
 Employee empowermentEmployee empowerment
 Use of quality toolsUse of quality tools
 Product designProduct design
 Process managementProcess management
 Managing supplier qualityManaging supplier quality

13. TQM Methodology - conceptsTQM Methodology - concepts
 Focus on CustomerFocus on Customer
 Identify and meet customer needsIdentify and meet customer needs
 Stay tuned to changing needs, e.g. fashion stylesStay tuned to changing needs, e.g. fashion styles
 Continuous ImprovementContinuous Improvement
 Continuous learning and problem solving, e.g.Continuous learning and problem solving, e.g.
Kaizen, 6 sigma, benchmarkingKaizen, 6 sigma, benchmarking

14. TQM Methodology– ConceptsTQM Methodology– Concepts
(continued)(continued)
 Employee EmpowermentEmployee Empowerment
 Empower all employees; external and internalEmpower all employees; external and internal
customerscustomers
 Teams formed around processes – 8 to 10 peopleTeams formed around processes – 8 to 10 people
 Meet weekly to analyze and solve problemsMeet weekly to analyze and solve problems
 Quality ToolsQuality Tools
 Ongoing training on analysis, assessment, andOngoing training on analysis, assessment, and
correction, & implementation toolscorrection, & implementation tools
 Studying practices at “best in class” companiesStudying practices at “best in class” companies
 Plan-Do-Study-ActPlan-Do-Study-Act

15. Ways of Improving QualityWays of Improving Quality
 Plan-Do-Study-Act Cycle (PDSA)Plan-Do-Study-Act Cycle (PDSA)
 Also called theAlso called the Deming WheelDeming Wheel after originatorafter originator
 Circular, never ending problem solving processCircular, never ending problem solving process
 Seven Tools of Quality ControlSeven Tools of Quality Control
 Tools typically taught to problem solving teamsTools typically taught to problem solving teams
 Quality Function DeploymentQuality Function Deployment
 Used to translate customer preferences to designUsed to translate customer preferences to design

16. PDSA DetailsPDSA Details
 PlanPlan
 Evaluate current processEvaluate current process
 Collect procedures, data, identify problemsCollect procedures, data, identify problems
 Develop an improvement plan, performance objectivesDevelop an improvement plan, performance objectives
 DoDo
 Implement the plan – trial basisImplement the plan – trial basis
 StudyStudy
 Collect data and evaluate against objectivesCollect data and evaluate against objectives
 ActAct
 Communicate the results from trialCommunicate the results from trial
 If successful, implement new processIf successful, implement new process

17. PDSA (continued)PDSA (continued)
 Cycle is repeatedCycle is repeated
 After act phase, start planning and repeat processAfter act phase, start planning and repeat process

18. Seven Tools of Quality ControlSeven Tools of Quality Control
 Cause-and-Effect DiagramsCause-and-Effect Diagrams
 FlowchartsFlowcharts
 ChecklistsChecklists
 Control ChartsControl Charts
 Scatter DiagramsScatter Diagrams
 Pareto AnalysisPareto Analysis
 HistogramsHistograms

19. Cause-and-Effect DiagramsCause-and-Effect Diagrams
 CalledCalled Fishbone DiagramFishbone Diagram
 Focused on solving identified quality problemFocused on solving identified quality problem

20. FlowchartsFlowcharts
 Used to document the detailed steps in a processUsed to document the detailed steps in a process
 Often the first step in Process Re-EngineeringOften the first step in Process Re-Engineering

21. ChecklistChecklist
 Simple data check-off sheet designed to identifySimple data check-off sheet designed to identify
type of quality problems at each work station; pertype of quality problems at each work station; per
shift, per machine, per operatorshift, per machine, per operator

22. Control ChartsControl Charts
 Important tool used inImportant tool used in Statistical ProcessStatistical Process ControlControl
– Chapter 6– Chapter 6
 The UCL and LCL are calculated limits used toThe UCL and LCL are calculated limits used to
show when process is in or out of controlshow when process is in or out of control

23. Scatter DiagramsScatter Diagrams
 A graph that shows how two variables are related toA graph that shows how two variables are related to
one anotherone another
 Data can be used in a regression analysis toData can be used in a regression analysis to
establish equation for the relationshipestablish equation for the relationship

24. Pareto AnalysisPareto Analysis
 Technique that displays the degree of importance for eachTechnique that displays the degree of importance for each
elementelement
 Named after the 19Named after the 19thth
century Italian economistcentury Italian economist
 Often called the 80-20 RuleOften called the 80-20 Rule
 Principle is that quality problems are the result of only a fewPrinciple is that quality problems are the result of only a few
problems e.g. 80% of the problems caused by 20% of causesproblems e.g. 80% of the problems caused by 20% of causes

25. HistogramsHistograms
 A chart that shows the frequency distribution ofA chart that shows the frequency distribution of
observed values of a variable likeobserved values of a variable like service timeservice time atat
a bank drive-up windowa bank drive-up window
 Displays whether the distribution is symmetricalDisplays whether the distribution is symmetrical
(normal) or skewed(normal) or skewed

26. Total Quality Mangement (TQM)Total Quality Mangement (TQM)
 Total quality management (TQM) is continuouslyTotal quality management (TQM) is continuously
improving quality (CQI) by focusing on customers’improving quality (CQI) by focusing on customers’
requirements, improving the processes which relaterequirements, improving the processes which relate
to these expectations and involving everyone in theto these expectations and involving everyone in the
process of improvement.process of improvement.
 TQM is an overall philosophy and managementTQM is an overall philosophy and management
system. CQI may be used as a structured approach tosystem. CQI may be used as a structured approach to
implement TQMimplement TQM

27. The TQM FormulaThe TQM Formula
TQMTQM = CQI through= CQI through
Customer Focus +Customer Focus +
Process Improvement +Process Improvement +
Total InvolvementTotal Involvement

28. The Concepts of TQMThe Concepts of TQM
 Quality – Meeting the customers’ requirements
reliably and in a continuously improving manner
 Process -- Steps/activities which convert inputs into a
valuable output for customers
 Customer -- Persons/entities who use or benefit from
the output of a process; may be internal or external to
the work team
 Supplier -- Persons/entities who provide inputs to a
process; may be internal or external to the work team

29. Process ManagementProcess Management
 Quality products come from quality sourcesQuality products come from quality sources
 Quality must be built into the processQuality must be built into the process
 Quality at the source is belief that it is better toQuality at the source is belief that it is better to
uncover source of quality problems and correct ituncover source of quality problems and correct it
 TQM extends to quality of product from company’sTQM extends to quality of product from company’s
supplierssuppliers

30. Managing Supplier QualityManaging Supplier Quality
 TQM efforts must extend to a firm’s suppliersTQM efforts must extend to a firm’s suppliers
 Suppliers should meet pre-specified quality criteria,Suppliers should meet pre-specified quality criteria,
such as certificationsuch as certification
 Inspection of incoming material is a waste of timeInspection of incoming material is a waste of time
and effortand effort
 Firm may have in-plant representative at supplierFirm may have in-plant representative at supplier

31. ISO StandardsISO Standards
 ISO 9000 Standards:ISO 9000 Standards:
 Certification developed by International Organization forCertification developed by International Organization for
StandardizationStandardization
 Set of internationally recognized quality standardsSet of internationally recognized quality standards
 Companies are periodically audited & certifiedCompanies are periodically audited & certified
 ISO 9000:2000 QMS – Fundamentals andISO 9000:2000 QMS – Fundamentals and
StandardsStandards
 ISO 9001:2000 QMS – RequirementsISO 9001:2000 QMS – Requirements
 ISO 9004:2000 QMS - Guidelines for PerformanceISO 9004:2000 QMS - Guidelines for Performance
 More than 40,000 companies have been certifiedMore than 40,000 companies have been certified
 ISO 14000:ISO 14000:
 Focuses on a company’s environmental responsibilityFocuses on a company’s environmental responsibility

32. Quality Awards and StandardsQuality Awards and Standards
 Malcolm Baldrige National Quality AwardMalcolm Baldrige National Quality Award
(MBNQA)(MBNQA)
 The Deming PrizeThe Deming Prize
 ISO 9000 CertificationISO 9000 Certification
 ISO 14000 StandardsISO 14000 Standards

33. MBNQAMBNQA
 Award named after the former Secretary ofAward named after the former Secretary of
Commerce – Regan AdministrationCommerce – Regan Administration
 Intended to reward and stimulate quality initiativesIntended to reward and stimulate quality initiatives
 Given to no more that two companies in each of threeGiven to no more that two companies in each of three
categories; manufacturing, service, and smallcategories; manufacturing, service, and small
businessbusiness
 Past winners; Motorola Corp., Xerox, FedEx, 3M,Past winners; Motorola Corp., Xerox, FedEx, 3M,
IBM, Ritz-CarltonIBM, Ritz-Carlton

34. The Deming PrizeThe Deming Prize
 Given by the Union of Japanese Scientists andGiven by the Union of Japanese Scientists and
Engineers since 1951Engineers since 1951
 Named after W. Edwards Deming who workedNamed after W. Edwards Deming who worked
to improve Japanese quality after WWIIto improve Japanese quality after WWII
 Not open to foreign companies until 1984Not open to foreign companies until 1984
 Florida P & L was first US company winnerFlorida P & L was first US company winner

35. Manufacturing Quality vs. ServiceManufacturing Quality vs. Service
QualityQuality
 Manufacturing quality focuses on tangible productManufacturing quality focuses on tangible product
featuresfeatures
 Conformance, performance, reliability, featuresConformance, performance, reliability, features
 Service organizations produce intangible productsService organizations produce intangible products
that must be experiencedthat must be experienced
 Quality often defined by perceptional factors likeQuality often defined by perceptional factors like
courtesy, friendliness, promptness, waiting time,courtesy, friendliness, promptness, waiting time,
consistencyconsistency

36. TQM Within OMTQM Within OM
 TQM is broad sweeping organizational changeTQM is broad sweeping organizational change
 TQM impactsTQM impacts
 Marketing – providing key inputs of customer informationMarketing – providing key inputs of customer information
 Finance – evaluating and monitoring financial impactFinance – evaluating and monitoring financial impact
 Accounting – provides exact costingAccounting – provides exact costing
 Engineering – translate customer requirements into specificEngineering – translate customer requirements into specific
engineering termsengineering terms
 Purchasing – acquiring materials to support productPurchasing – acquiring materials to support product
developmentdevelopment
 Human Resources – hire employees with skills necessaryHuman Resources – hire employees with skills necessary
 Information systems – increased need for accessibleInformation systems – increased need for accessible
informationinformation

37. SummarySummary
 TQM is different from the old concept of quality as itTQM is different from the old concept of quality as it
focus is on serving customers, identifying the causesfocus is on serving customers, identifying the causes
of quality problems, and building quality into theof quality problems, and building quality into the
production processproduction process
 Four categories of quality cost of prevention,Four categories of quality cost of prevention,
appraisal, internal and external costsappraisal, internal and external costs
 Seven TQM notable individuals include Walter A.Seven TQM notable individuals include Walter A.
Shewhart, W. Edwards Demings, Joseph M. Juran,Shewhart, W. Edwards Demings, Joseph M. Juran,
Armand V. Feigenbaum, Philip B. Crosby, KaoruArmand V. Feigenbaum, Philip B. Crosby, Kaoru
Ishikawa, and Genichi TaguchiIshikawa, and Genichi Taguchi

38.  Seven features of TQM combine to createSeven features of TQM combine to create
TQM philosophy; customer focus, continuousTQM philosophy; customer focus, continuous
improvement, employee empowerment, use ofimprovement, employee empowerment, use of
quality tools, product design, processquality tools, product design, process
management, and managing supplier qualitymanagement, and managing supplier quality
 QFD is a tool used to translate customer needsQFD is a tool used to translate customer needs
into specific engineering requirementsinto specific engineering requirements
 Reliability is the probability that the productReliability is the probability that the product
will functions as expectedwill functions as expected
 The Malcom Baldridge Award is given toThe Malcom Baldridge Award is given to
companies to recognize excellence in qualitycompanies to recognize excellence in quality
management.management.

39. ReferencesReferences
 www.google.comwww.google.com
 www.E-book.comwww.E-book.com
 www.deming.orgwww.deming.org
 www.pdf-search.comwww.pdf-search.com
 www.ppt-search.comwww.ppt-search.com