Total Quality Management - TQM

Quality Defined:
“A subjective term for which each person has his or her own definition.
In technical usage, quality can have following meanings:
(1) “The characteristics of a product or service that bear on its ability to
satisfy stated or implied needs.”
(2) “A product or service free of deficiencies.”
(3) “To satisfy the need for which the product is manufactured”
J Hemwani, GPC, Betul (M.P.) 460001

Introduction
 Total - made up of the whole
 Quality - degree of excellence a product or service
provides
 Management - act, art or manner of planning,
controlling, directing,….
Therefore, TQM is the art of managing the whole to
achieve excellence.

Evolution of TQM
 The concept of quality has existed for many years, though its
meaning has changed and evolved over time.
 In the early twentieth century, quality management meant
inspecting products to ensure that they met specifications.
 In the 1940s, during World War II, quality became more
statistical in nature. Statistical sampling techniques were used
to evaluate quality, and quality control charts were used toto evaluate quality, and quality control charts were used to
monitor the production process.
 In the 1960s, with the help of so-called quality gurus, the
concept took on a broader meaning. Quality began to be
viewed as something that encompassed the entire
organization, not only the production process.

Evolution of TQM
 In the 1970s and 1980s, many U.S. industries lost market
share to foreign competition countries like Japan due to low
quality standards.
 In the auto industry, manufacturers such as Toyota and
Honda became major looser than many of the tools and
techniques that were used to identify quality problems and take
corrective action.corrective action.
 The exact origin of the term “total quality management” is
uncertain.
 It may have been first coined in the United Kingdom by the
Department of Trade and Industry during its 1983 or it may
have been first coined in the United States by the Naval Air
Systems Command in 1985.

 JC Penney was the first person who presented the
importance of Total Quality Management (TQM) in 1913.
 He proposed principles such as “customer satisfaction”,
“quality”, “fairness”, “value”, “related training” and “rewards
for performance” play an important role in an organization.
 In the early 1900s, “father of scientific management”,
Fredrick W. Taylor, also suggested other quality principles.J Hemwani, GPC, Betul (M.P.) 460001

Definition
 Total quality management (TQM) has been defined as an
integrated organizational effort designed to improve quality
at every level.
 The process to produce a perfect product by a series of
measures require an organized effort by the entire company
to prevent or eliminate errors at every stage in production
is called total quality management.is called total quality management.
 According to international organization for standards
defined tqm as, “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 the society.

Preparation stages in TQM Implementation
 Successful organizations have figured out that customer
satisfaction has a direct impact on the bottom line.
 Creating an environment that supports a quality culture
requires a structured, systematic process.
 Following are steps to implementing a quality management
system that will help to bring the process full circle.
1. Clarify Vision, Mission, and Values1. Clarify Vision, Mission, and Values
2. Identify Critical Success Factors (CSF)
3. Develop Measures and Metrics to Track CSF Data
4. Identify Key Customer Group
5. Solicit Customer Feedback

Preparation stages in TQM Implementation
6. Develop a Survey Tool
7. Survey Each Customer Group
8. Develop Improvement Plan
9. Resurvey
10. Monitor CSF10. Monitor CSF
11. Incorporate Satisfaction Data into Marketing Plans
12. Technology

TQM – Implementation
1. Clarify Vision, Mission, and Values:
 Employees need to know how and what they do is tied to
organizational strategy and objectives.
 All employees should know the vision and mission of the
organization, means where the organization is headed and
what are the hopes to be accomplished by them.
 Employees should know the operational values (principles)
that will steer its priorities and decision making.
 Develop a process to educate employees during new
employee orientation and communicate the mission, vision, and
values as a first step.

2. Identify Critical Success Factors (CSF)
 Critical success factors help an organization focus on those
things that help it meet objectives and move a little closer to
achieving its mission.
 These performance-based measures provide a gauge for
determining how well the organization is meeting objectives.determining how well the organization is meeting objectives.
 Some example of critical success factors are Financial
Performance, Customer Satisfaction, Process Improvement,
employee Satisfaction, Product Quality etc.

3. Develop Measures and Metrics to Track CSF Data
 Once critical success factors are identified, there need to be
measurements put in place to monitor and track progress.
 This can be done through a reporting process that is used to
collect specified data and share information with senior leaders.
 For example, if a goal is to increase customer satisfaction
survey scores, there should be a goal and a measure to
demonstrate the achievement of the goal.

4. Identify Key Customer Group
 Every organization has customers. Those that understand
who the key customer groups are can create products and
services based on customer requirements.
 The mistake a lot of organizations make is not acknowledging
employees as a key customer group.employees as a key customer group.
 Example Key Customer Groups are Employees, Customers,
Suppliers, Vendors, Volunteers , etc.

5. Solicit Customer Feedback
 The only way for an organization to know how well they are
meeting customer requirements is by simply asking the
question.
 Create a structured process to solicit feedback from each
customer group in an effort to identify what is important to
them.them.
 Organizations often make the mistake of thinking they know
what is important to customers and ask the wrong survey
questions.
 This type of feedback is obtained through customer focus
groups .

6. Develop a Survey Tool
 Develop a customer satisfaction survey tool that is based on
finding out what is important to customers.
 Customers might care more about quality than cost but if you
are developing a product and trying to keep the cost down and
skimping on the quality, you are creating a product that mightskimping on the quality, you are creating a product that might
not meet the needs of the customer.

7. Survey Each Customer Group
 Create a customized survey for each customer group. This
survey will help to establish baseline data on the customers’
perception of current practice.
 Now you will have a starting point for improvements and will
be able to demonstrate progress as improvement plans arebe able to demonstrate progress as improvement plans are
implemented.

8. Develop Improvement Plan
 Once the baseline is established you should develop an
improvement plan based on customer feedback from each
group.
 Improvement plans should be written in SMART goals format
with assignments to specific staff for follow-through.with assignments to specific staff for follow-through.
 Goals May Include Some of the Following: Process
Improvement initiatives, Management or staff Training or
Development, Performance Management, etc.

9. Resurvey
 After a period of time (12-18 months), resurvey key
customers to see if scores have improved.
 Customer needs and expectations change over time so being
in-tune to changing needs and expectations is critical to long-
term success.term success.

10. Monitor CSF
 It is important to monitor CSF monthly to ensure there is
consistent progress toward goals.
 This also allows for course correction should priorities and
objectives change during the review period.

11. Incorporate Satisfaction Data into Marketing Plans
 Once you’ve achieved some positive results with your
satisfaction data, use it as a marketing tool.
 A lot of successful organizations miss the boat by not letting
others know what they do well.
 Customers want to know how an organization’s internal
processes work, especially if those processes help to deliver an
outstanding product or service.

12. Technology
 Make sure technology is user-friendly and supports targeted
improvements.
 For example, a website should be easy to navigate as well as
easy to find (SEO) and the content should be easy to
understand.understand.

Final Thoughts
 Make sure employees understand the vision as well as their
role in supporting it.
 Look for ways to ensure that all internal processes are
standardized and that employees receive the training to
understand the standardization.understand the standardization.
 Successful quality initiatives require ongoing
Senior Leadership sponsorship and support through structure,
process, and staff transitions. Designated resources are also
critical in supporting these endeavors.

Customer
Focus
Fact Based Decision
Making
Employee
Empowerment
INTEGRATED TQM MODEL
Focus
Continuous
ImprovementManagement
Commitment
Empowerment

TQM MODEL’S – KEY ELEMENTS
 Management Commitment
1. Plan (drive, direct)
2. Do (deploy, support, participate)
3. Check (review)
4. Act (recognize, communicate, revise).
 Employee Empowerment
1. Training
2. Suggestion scheme
3. Measurement and recognition
4. Excellence teams

 Fact Based Decision Making
 1. SPC (statistical process control)
 2. DOE, FMEA
 3. The 7 statistical tools
 4. TOPS (Ford 8D – team-oriented problem solving)
 Continuous Improvement
 1. Systematic measurement and focus on CONQ
 2. Excellence teams
 3. Cross-functional process management
 4. Attain, maintain, improve standards

 Customer Focus
 1. Supplier partnership
 2. Service relationship with internal customers
 3. Never compromise quality
 4. Customer driven standards 4. Customer driven standards

TQM – CHARACTERISTICS
 Total quality management ensures that every single employee
is working towards the improvement of work culture,
processes, services, systems and so on to ensure long term
success. Following are the main characteristics of TQM
 Committed management.
 Adopting and communicating about total quality
management.
 Closer customer relations. Closer customer relations.
 Closer provider relations.
 Benchmarking.
 Increased training.
 Open organization.
 Employee empowerment.
 Flexible production.
 Process measurement and improvements.

Traditional approach and TQM
Element Traditional TQM
 Definition Product-oriented Customer-oriented
 Priorities Second to service First among equals
and cost of service and cost
 Decisions Short-term Long-term
 Emphasis Detection Prevention Emphasis Detection Prevention
 Errors Operations System
Responsibility Quality Control Everyone
Problem solving Managers Teams
Manager’s role Plan, assign, Delegate,coach
control and enforce facilitate, and mentor

TQM – PRINCIPLES
 The principles of the TQM approach are:
1. Focus on the Customer.
2. Employee Involvement.
3. Process-centred.
4. Integrated System.4. Integrated System.
5. Strategic and Systematic Approach.
6. Continuous Improvement.
7. Fact-based Decision Making.
8. Communications.

TQM – PRINCIPLES
1. Focus on the Customer:
 It is important to identify the organization’s customers.
 External customers consume the organization’s product or
service.
 Internal customers are employees who receive the output of Internal customers are employees who receive the output of
other employees.

TQM – PRINCIPLES
2. Employee Involvement:
 Since quality is considered as the job of all employees,
employees should be involved in quality initiatives.
 Front line employees are likely to have the closest contact
with external customers and thus can make the most valuable
contribution to quality.
Therefore, employees must have the authority to innovate and
improve quality.

TQM – PRINCIPLES
3. Process-centred:
 A fundamental part of TQM is a focus on process thinking.
 A process is a series of steps that take inputs from suppliers
(internal or external) and transforms them into outputs that are
delivered to customers (either internal or external).

TQM – PRINCIPLES
4. Integrated System:
 Every organization has a unique work culture, and it is
virtually impossible to achieve excellence in its products and
services unless a good quality culture has been fostered.
 Thus, an integrated system connects business improvement
elements in an attempt to continually improve and exceed the
expectations of customers, employees and other stakeholders.

TQM – PRINCIPLES
5. Strategic and Systematic Approach :
 A critical part of the management quality is the strategic and
systematic approach to achieving an organization’s vision,
mission and goals.
 This process, called strategic planning or strategic
management, includes the formulation of a strategic plan that
integrates quality as a core component.

TQM – PRINCIPLES
6. Continuous Improvement:
 The quest for quality is a never ending process in which
people are continuously working to improve the performance,
speed and number of features of the product or service.
 Continuous improvement means that small, incremental
improvement that occurs on a regular basis will eventually add
to a vast improvement in quality.

TQM – PRINCIPLES
7. Fact-based Decision Making:
 In order to know how well an organization is performing, data
on performance measures are necessary.
 TQM requires that an organization continually collect and
analyse data in order to improve decision making accuracy,
achieving consensus, and allow prediction based on past
history.

TQM – PRINCIPLES
8. Communications:
 During times of organizational change, as well as part of day
to day operation, effective communications plays a large part in
maintaining morale and in motivating employees at all levels.
 Communications involve strategies, method and timelines.

TQM – The 8 ELEMENTS
 To be successful implementing TQM, an organization must
concentrate on the eight key elements, which are as follows:
1. Ethics
2. Integrity
3. Trust
4. Training4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication

References:
1. Internet websites sources.
2. Slideshare.net

Total Quality Management - TQM

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