ICT role in 21st century education and it's challenges.
Definition of tqm
1. Origins of TQM
Total quality management has evolved from the quality assurance methods that were first developed
around the time of the First World War. The war effort led to large scale manufacturing efforts that often
produced poor quality. To help correct this, quality inspectors were introduced on the production line to
ensure that the level of failures due to quality was minimized.
In 1924, Walter Shewhart developed a statistical chart for the control of product variables. This
chart is considered to be the beginning of statistical quality control.
After the First World War, quality inspection became more commonplace in manufacturing environments
and this led to the introduction of Statistical Quality Control (SQC), a theory developed by Dr. W.
Edwards Deming. This quality method provided a statistical method of quality based on sampling. Where
it was not possible to inspect every item, a sample was tested for quality. The theory of SQC was based
on the notion that a variation in the production process leads to variation in the end product. If the
variation in the process could be removed this would lead to a higher level of quality in the end product.
After World War Two, the industrial manufacturers in Japan produced poor quality items. In a response to
this, the Japanese Union of Scientists and Engineers invited Dr. Deming to train engineers in quality
processes. By the 1950‟s quality control was an integral part of Japanese manufacturing and was adopted
by all levels of workers within an organization.
By the 1970‟s the notion of total quality was being discussed. This was seen as company-wide quality
control that involves all employees from top management to the workers, in quality control. In the next
decade more non-Japanese companies were introducing quality management procedures that based on the
results seen in Japan. The new wave of quality control became known as Total Quality Management,
which was used to describe the many quality-focused strategies and techniques that became the center of
focus for the quality movement.
By the last decade of the 20th century, TQM was considered a fad by many business leaders. But
while the use of the term TQM has faded somewhat, particularly in the United States, its
practices continue.
In the few years since the turn of the century, the quality movement seems to have matured
beyond Total Quality. New quality systems have evolved from the foundations of Deming, Juran
and the early Japanese practitioners of quality, and quality has moved beyond manufacturing into
service, healthcare, education and government sectors.
2. Topic No: 01
Definition of TQM
Total Quality Management (TQM) is a system approach to quality management. It is the
improvement of quality of not only the product, but also the total quality management of all the
processes and functions in the organization such as the manufacturing, distribution,
administration, communications, marketing, planning, training, procurement and so on. Total
quality management involves the participation of all the employees of the organization in this
purpose.
TQM consists of three words. Analyzing the three words we have,
Total: Made up of the whole
In all functional areas
At all levels.
Quality: Degree of excellence a product or service provides
To meet the customer requirements.
Management: Act ,art ,or manner of handling, controlling, directing etc,
Effective utilization of resources,
To maintain existing level.
To improve quality,
Executive commitment.
Therefore, TQM is the art of managing the whole to achieve excellence. The Golden rule is a
simple but effective way to explain it: Do unto others as you would have them do unto you.TQM
is defined as both a philosophy & a set of guiding principles that represent the foundation of a
continuously improving organization.
3. Numerous definitions have been given on Total Quality Management (TQM) by quality gurus,
practitioners and academician.
According to Besterfield (1995) defined, “TQM as both a philosophy and a set of guiding
principles that represents the foundation of a continuously improving organization. It integrates
fundamental management techniques, existing improvement efforts and technical tools under a
disciplined approach.”
Using a three-word definition, Wilkinson and Wither (1990) defines TQM as;
Total : Every person is involved (its customers and suppliers).
Quality : Customer requirements are met exactly.
Management: Senior executives are fully committed.
TQM stands for an overall integrated approach to all aspects of quality, all domains of system,
including, organization, people, resources, time, hardware/software and even management
commitments. TQM is a management approach of organization, centered on quality, based on
the participation of all its members and aiming at long term of success through customer
satisfaction and benefits to the members of organization and society (ISO 8402/IS 13999).
TQM sustains on four pillars: System, Top management commitment, Team work and SPC
(statistical process control) tools. The links to these pillars are culture, communication,
commitment and customer focus. Now show by graphically,
Fig: Model on Total Quality Management (TQM)
4. TQM views an organization as a collection of processes. It maintains that organizations must
strive to continuously improve these processes by incorporating the knowledge and experiences
of workers. The simple objective of TQM is "Do the right things, right the first time, every
time".
There are a number of evolutionary strands, with different sectors creating their own versions
from the common ancestor. TQM is the foundation for activities, which include:
Commitment by senior management and all employees
Meeting customer requirements
Reducing development cycle times
Just In Time Manufacturing
Quality Circles
Employee involvement and empowerment
Recognition and celebration
Challenging quantified goals and benchmarking.
In addition to, all above these discussions, Total Quality Management (TQM) is the application
of quantitative methods & human resources to improve all the processes within an organization
& exceed customer needs now & in the future.TQM integrates fundamental management
techniques, existing improvement efforts & technical tools under a disciplined approach.
Topic: 02
Basic Approach: The six basic concepts of TQM:
Total Quality Management is a management approach that originated in the 1950's and has
steadily become more popular since the early 1980's. Total Quality Management is a description
of the culture, attitude and organization of a company that strives to provide customers with
products and services that satisfy their needs. The culture requires quality in all aspects of the
company's operations, with processes being done right the first time and defects and waste
eradicated from operations.TQM mainly based on following six concepts.
5. In order to achieve excellence, six basic concepts of TQM are as follows:
1. A committed & involved management to provide long-term top-to-bottom organizational
support.
2. Focus customer requirements and product/service expectations, both internally & externally.
3. Effective involvement & utilization of the entire work force.
4. Continuous improvement of the business & production process.
5. Treat suppliers as our partners
6. Establish performance measures for the process.
Now these six basic concepts are describe in detail to understand properly about TQM:
1. Management leadership & commitment:
Management must participate in the quality program. A quality council must be established to
develop a clear vision, set long term goal & direct the program. This requires management to
actively participate in quality transformation. They have to outline the quality goals, quality
TQMPerformance
measure
Leadership &
Commitment
Customer
focus
Employee
involvement
Continuous
improvement
Supplier
partnership
6. policies and quality plans so that employees are constantly reminded that the customer, not the
product, is the top priority (Besterfield, 1995).
Quality goals give all employees clear indication of what is going to be achieved concerning
quality. Quality policies when described in detail will provide guideline on how employees are to
achieve that goal. Management commitment; requires developing management systems that
assure and ensure that quality is built into each and every process in organization. Thus,
meaningful plans, such as performing an annual quality audit help top management acquire the
necessary insight into problems the company faces in realizing the quality plan.
In short, management commitment and leadership represent a paradigm shift from the traditional
management role and responsibilities towards a new role, supporting and enhancing the total
quality culture and environment.
Characteristics of Successful Leaders
1. Give attention to external and internal customers.
2. Empower, not control subordinates. Provide resources, training, and work environment to
help them do their jobs.
3. Emphasize improvement rather than maintenance.
4. Emphasize prevention.
5. Encourage collaboration rather than competition.
6. Train and coach, not direct and supervise.
7. Learn from problems – opportunity for improvement.
8. Continually try to improve communications.
9. Continually demonstrate commitment to quality.
10. Choose suppliers on the basis of quality, not price.
11. Establish organisational systems that support quality efforts.
12. Encourage & recognize team effort.
These characteristics demonstrate successful quality leaders.
2. Customer satisfaction:
7. The key to an effective TQM program is its focus on the customer. An excellent place to start is
by satisfying internal customer. We must listen to the” voice of the customers” & emphasize
design quality & defect prevention. Do it right the first time & every time, for customer
satisfaction is the most important consideration.
An organization must give its customers a quality product or service that meets their needs, at
reasonable price, on-time delivery, and outstanding service. Listening to the „customers‟ and
responding quickly to their changing needs, expectations and perceptions is one of the TQM
basic approaches. By keeping close to their customer, companies can establish customer needs;
gather information on customer trend and benchmarking them with their competitors. This can
be a winning strategy towards winning new customers and retaining customer loyalty.
Increasingly, manufacturing and service organizations are using customer satisfaction as the
measure of quality. This fact is reflected in the Malcolm Baldridge National Quality Award,
wherein customer satisfaction accounts for 30% of the total points. Total Quality Management
(TQM) implies an organizational obsession with meeting or exceeding customer expectations, so
that customers are delighted.
Fig: Customer satisfaction organizational diagram.
Customer
Front-line representative
Functional
operational areas
Senior
manager
CEO
8. 3. Employee Involvement:
TQM is an organization wide challenge that is everyone‟s responsibility. All personnel must be
trained in TQM, statistical process control (SPC) & other appropriate quality improvement skills
so they can effectively participate on project teams.
Employee involvement is a process for empowering members of an organization to make
decisions and to solve problems appropriate to their levels in the organization (Richardson,
1997). Empowerment is equally effective in service industries, where most frequently customer
perception of quality stands or falls based on the action of the employee in a – one-on one
relationship with the customer. This can be achieved by making the employee part of the
organization, which is essential to the success of the organization. Employees who believe they
are important will be motivated to ensure that their efforts are consistent and dependable upon
the contributions made.
Deming‟s fourteen points for management are worth remembering. The basis of his philosophy
is contained in the following principle:
1. Institute training on the job.
2. Break down barriers between departments to build teamwork.
3. Drive out fear in the workplace.
4. Eliminate quotas on the shop floor.
5. Create conditions that allow employees to have pride in their workmanship and abolish
annual reviews and merit ratings and
6. Institute a program of education and self-improvement.
Benefits of Employee Involvement:
Involving employees, empowering them, & bringing them into the decision-making process
provide the opportunity for continuous process improvement.
Employee involvement improves quality & increases productivity because,
1. Employees make better decisions using their expert knowledge of the process.
2. Employees are more likely to implement & support decisions they had a part in making.
3. Employees are better able to spot & pinpoint areas for improvement.
4. Employees are better able to take immediate corrective action.
5. Employee involvement reduces labor or management friction by encouraging more
effective communication & cooperation.
6. Employees are better able to accept change because they control the work environment.
9. All above these benefits of employee involvement make ensure in an organization by the Total
Quality Management (TQM).
4. Continuous process Improvement:
There must be a continual striving to improve all business & production process. Process refers
to business & production activities of an organization. Business process such as purchasing,
engineering, accounting, & marketing are areas where nonconformance can represent an
opportunity for substantial improvement. Following figure shows a process model,
Fig: Input & output process Model.
INPUT
Material
Money
Information
Data etc.
PROCESS
People
Equipment
Method
Procedure
Environment
Material
OUTPUT
Information
Data
Product
Service, etc.
OUT
COMES
FEEDBACK
CONDITIONS
10. Quality improvement projects such as on-time delivery, order entry efficiency, billing error rate,
customer satisfaction, cycle time, scrap reduction & supplier management are good places to
begin. Technical techniques such as, statistical process control (SPC), benchmarking, quality
function deployment, ISO 9000 & designed experiments are excellent for problem solving.
The most frequently used guidelines for quality management systems are the ISO 9000
international standards, which emphasize the establishment of a well- documented, standardized
quality system. The role of the ISO 9000 standards within the TQM circle of continuous
improvement is presented in the following figure.
Continuous improvement is a circular process that links the diagnostic, planning, implementation
and evaluation phases. Within this circular process, the ISO 9000 standards are commonly
applied in the implementation phase.
Continuous improvement of all systems and processes in an organization is essential for TQM
success. A continuous improvement system gears the organization toward attainment of the
vision (Richardson, 1997). The improvement system must not only be continuously applied, but
also consistently, throughout the organization. This requires a disciplined continuous
improvement system based on trust, with everyone in the organization striving to improve the
system (Crosby, 1979).
5. Supplier partnership:
Customers & suppliers have the same goal to satisfy the end user. On the average 40% of the
sales dollar is purchased product or service, therefore the supplier quality must be outstanding.
The better the supplier‟s quality, the better the supplier‟s long-term position because the
customer will have better quality. Because both the customer & supplier have limited resources,
11. they must work together as partners to maximize their return on investment. Suppliers focus
should be on quality & life-cycle costs rather than price.
Dr. Kaoru Ishikawa has suggested ten principles to ensure quality products & services &
eliminate unsatisfactory conditions between the customer & the supplier:
1. Customer and supplier are fully responsible for Quality control.
2. Customer and supplier should respect each other‟s independence.
3. Supplier is entitled to complete information from the customer.
4. Non-adversarial contract between customer and supplier is needed for quality, quantity,
price, delivery method & payments.
5. Supplier should provide quality to meet customer‟s satisfaction.
6. Product quality evaluation methods should be decided by the mutual consent of both the
parties.
7. Amicable settlement of disputes between customer and supplier should be established in
the contract.
8. Continuous information exchange will improve the product or service quality.
9. To maintain an amicable relationship, both the parties should do procurement,
production, and inventory planning.
10. Best interest of the end user should be considered while doing business transactions.
There are some conditions for the selection and evaluation of suppliers:
1. Supplier knows management policy of the organization.
2. Stable management system of supplier, respected by others.
3. Supplier has the capability of dealing with technological innovations.
4. Supplier can supply material meeting quality specifications.
5. Supplier has capability to meet the amount of production.
6. Supplier can breach corporate secrets.
The core concept of TQM consisted of supplier & customer relationship. Now show this
relationship by diagrammatically:
12. The core of TQM is the customer-supplier interfaces, both externally and internally, and at each
interface lay a number of processes. This core must be surrounded by commitment to quality,
communication of the quality message, and recognition of the need to change the culture of the
organization to create total quality.
6. Performance Measures:
The sixth & final concept of Total Quality Management (TQM) is performance measures.
Managing an organization without performance measures is like a captain of a ship navigating
without instrument. The ship would most likely end up traveling in circles, as would an
organization.
Performance measures such as uptime, percent nonconforming, absenteeism & 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.
Performance measurement is primarily managing outcome, and one of its main purposes is to
reduce or eliminate overall variation in the work product or process. The goal is to arrive at
sound decisions about actions affecting the product or process and its output.
13. Performance measures are used to achieve one or more of the following seven objectives:
1. Establish baseline measures & reveal trends.
2. Determine which process needs to be improved.
3. Indicate process gains & losses.
4. Compare goals with actual performance.
5. Provide information for individual & team evaluation.
6. Provide information to make informed decisions.
7. Determine the overall performance of the organization.
There are many tools to determine or measure the performance of employees an organization or
industry. Now briefly describe the two major tools of performance measures:
Balanced Scorecard:
The balanced scorecard is a popular tool for performance measurement. It uses four perspectives
from which to manage organizational performance including customers, finances, internal
processes, and innovation and learning.
The scorecard is built on the premise that using only financial measures is not sufficient to
achieve an organization's strategic objectives. The scorecard measures how an organization
reaches its financial goals. Simply stated, what gets measured gets done.
Benchmarking:
The term benchmarking was originally used by early land surveyors, who used the term to
identify a fixed point from which all other measurements are made.
In the late 1970's however, it took a broader meaning. Applied to an organization,
benchmarking is a process to determine who else does a particular activity the best and
emulating what they do to improve performance. A more formal definition is "simply the
systematic process of searching for best practices, innovative ideas and highly effective
operating procedures that lead to superior performance."
Performance measurement touches all aspects of the organization, including programs, products
and services for internal and external customers, teams, departments and cross-functional project
teams. It focuses all activities on overall business results, constantly measuring and giving
feedback about results in relation to strategic goals.
14. All above these descriptions we have to understand that, these six basic concepts is the baseline
for Total Quality Management (TQM) to implement successfully in every sector.
TQM views an organization as a collection of processes. It maintains that organizations must
strive to continuously improve these processes by incorporating the knowledge and experiences
of workers. TQM is now becoming recognized as a generic management tool, just as applicable
in service and public sector organizations. The purpose of TQM is to provide a quality product or
service to customers, which will in turn increase productivity & lower cost. All these activities of
TQM are done by the help of these six basic concepts.
15. Topic No: 03
Key principles of TQM
Total Quality Management (TQM) is the management of initiatives and programmers that are
aimed at achieving the delivery of quality products and services. Several studies have attempted
to identify the key principles of TQM. There are three key principle of total quality
management.These principles are guidelines used by many companies for quality discipline
purposes. They aid companies in achieving long-term quality performance.
Key
principle
of TQM
Customer
satisfaction
Employee
involvement
Continuous
process
improvement
16. 1.Customer satisfaction:
The first and major TQM principle is to satisfy the customer--the person who pays for the
product or service. The ultimate goal of TQM is to please customers. Meeting or exceeding
customer requirements means shifting emphasis from the short-term to the long-term, from the
product to the customers-listening to them, adapting to their needs. TQM teaches that customer
satisfaction is not only a measure of quality; it is a whole new approach to doing business.
A major long-term benefit of Total Quality Management relates to customer satisfaction. TQM
aims at improving quality, and identifies the best measure of quality as matching customer
expectations in terms of service, product, and experience.
There are three Total Quality Management components that work toward achieving customer
satisfaction:
It requires that your business understand what customers typically expect in a field,
industry, or product line,
It ensures your business has the expertise and the resources to consistently deliver the
expected product or service, and
It emphasizes the need for your business to clearly communicate to the customers exactly
what you will deliver to avoid misunderstandings
Customer voice
Fig: Point of customer involvement
Point of Customer
involvementUnique design of
Features
Unique
configuration
option
Suppliers
Stages of manufacturing process
Design Fabrication Assembly Delivery
Customers
17. In reality, we have many other customers. This includes everyone on our team starting with each
other as fellow employees, our outside sales representatives and distributors, our suppliers,
insurance broker, attorney, banker, and consultants. We are all responsible for providing each
other with first-time quality. We provide each other with drawings, materials, work definition,
reports, information, communication, and so forth, so that we can, in turn provide each other
with goods and services.
There are two distinct types of customers i.e. external and internal.
Internal customers are within the company-the colleagues working together for delivering a
service or product for the external customer. We will, however, remain restricted to the external
customers here.
Fig: customer/supplier chain
The above picture shows how important a cog is internal customer in the grand design of things.
Internal customer helps change an input to a product which will be used by the external
customer.
An external customer may be an individual or an enterprise that hires or purchases the
product(s) or service(s) from another person or business in exchange of money.
Customer satisfaction has several dimensions, for example:
•Fitness for use
•Reliability – which governs the life aspect of quality
•Value for money spend by customer
•After – sales service and support to the customer
•Good packaging
•Customer right to correct information and training
•Maintainability of the product/services
•Variety in product/services
•Speed of service (quick response time)
•Civility of service at all levels
•Good image of the company and customer confidence in the organization based on past
performance and demands
Inputs from
External
customers
Internal customers
Outputs from
External
customers
18. Finally Customer satisfaction is not an objective statistics but more of a feeling or attitude. If a
customer is happy with a product or a service it has hired or purchase they will pay their bills
promptly, which greatly improves cash flow-the lifeblood of any organization. Customers that
are satisfied will increase in number, buy more, and buy more frequently.
2.Employee involvement:
One of the important principle of TQM is employee involvement. This is contrast to
conventional quality assurance management practices, where management takes all decisions
and workers just follow them to accomplish their jobs. This top-down management style is slow,
inflexible, and has little room for competition, especially where survival in today‟s time-starved,
customer driven market requires rapid response times from quality control in manufacturing or
other businesses for the ever-changing needs of the customer.
Employee involvement is very important in any TQM initiative, as it is a system wherein
employees are encouraged to use their expertise and knowledge to suggest methods for
improvements in their work areas. These suggestions could relate to improvements in the job, the
product, the work atmosphere or the company as a whole. Many companies have ventured into a
participation-style of management by involving employees in the problem solving and decision
making processes.
Some of the most successful companies are those that have achieved a close relationship between
workers and the managers. The policies in these companies fostered teamwork, participation,
continuous learning and flexibility.
Involving employees, empowering them, and bringing them into decision making process
provides the opportunity for continuous process improvement. The untapped ideas, innovations,
and creative thoughts of employees can make the difference between success and failure.
Competition is so fierce that it would be unwise not use every available tool.
Employee involvement improves quality and increases productivity, because:
Employees make better
Employees make better decisions using their expert knowledge of the process.
Employees are more likely to implement and support decisions they had a part in making.
Employees are better able to spot and pinpoint areas of for improvement.
Employees are better able to take immediate corrective actions.
Employee involvement reduces labor/management friction by encouraging more effective
communication and cooperation.
Employee involvement increases morale by creating feeling of belonging to the organization.
Employees are better able to accept change because they control the work environment.
Employees have an increased commitment to unit goals because they are involved.
19. TQM and employee involvement are being successfully implemented not just in the
manufacturing and service sectors, but also in public sectors and non-profit organisations. Not
only do employee play a vital part in business reengineering, but they also help to achieve cost
savings, quality improvements and customer satisfaction.
The best way to achieve excellence in any business is to engage every intelligence involved to
improve their surroundings.
3.Continuous process Improvement
TQM is mainly concerned with continuous improvement in all work, from high level strategic
planning and decision-making, to detailed execution of work elements on the shop floor. It stems
from the belief that mistakes can be avoided and defects can be prevented. It leads to
continuously improving results, in all aspects of work, as a result of continuously improving
capabilities, people, processes, technology and machine capabilities.
Continuous improvement must deal not only with improving results, but more importantly with
improving capabilities to produce better results in the future. The five major areas of focus for
capability improvement are
demand generation
supply generation,
technology,
operations and
people capability.
continuous improvement in an organization may be a lengthy process, and several steps are
essential to its eventual success.
1. Train employees in the methods of statistical process control (SPC) and other tools for
improvement quality.
2. Make SPC methods a normal aspect of daily operations.
3. Build work teams and employee involvement.
4. Utilize problem-solving techniques within work teams.
5. Develop a sense of operator ownership of the process.
Here employee involvement is central to the philosophy of continuous improvement. However,
the last two steps are crucial if the philosophy is to be the part of everyday operations.
Continuous improvement process refers to the concept of having an ongoing effort to improve
products, services or processes. To be successful, organizations need to employ continuous
improvement methods in today's ever changing business environment. There are four commonly
used tools for continuous improvements:
The PDSA cycle
20. Six Sigma
Lean
TQM
The PDSA Cycle
The Plan-Do-Study-Act (PDSA) cycle, also known as the Plan-Do-Check-Act (PDCA) cycle,
Learning and Improvement cycle, Deming cycle or Shewhart cycle is a four-step problem-
solving process. This method is a very powerful quality control tool that allows for continuous
improvement of business processes in an ever changing environment.
Six Sigma
Six Sigma is essentially a data-driven way of quality improvement that promotes defect
preventio rather than defect detection.
Lean
The basic principle of lean is to eliminate all activities that don't add value and contribute waste
to the business.
21. TQM
Total Quality Management (TQM) is a management tool with the end goal of customer
satisfaction. TQM strives for excellence in all parts of the company, down to the final product for
the customer.
Continuous improvement is based on a Japanese Concept called Kaizen. It is basically composed
of two words “KAI” means change and “ZEN” means better. In other words it means change for
betterment or improvement.
Kaizen is a philosophy that defines management‟s role in continuously encouraging and
implementing small improvements involving everyone. It is the process of continuous
improvement in small increments that make the process more efficient, effective, under
control, and adaptable.
Continuous improvement is constant, gradual and incremental improvement. It is undramatic,
involves small steps, is a group effort, focuses on processes, and is driven by people. Eighty
percent of improvements in an organization come from continuous improvement.
Finally we can say that,
Total quality management is a management system for a customer focused organization that
involves all employees in continual improvement of all aspects of the organization. TQM uses
strategy, data, and effective communication to integrate the quality principles into the culture and
activities of the organization.
www.bexcellence.org/Total-quality-management.html
www.brighthubpm.com/methods-strategies/99647-analysis-of-tqm-quality-concepts/
www.ehow.com/list_7419852_eight-principles-quality-management-system.html
http://www.businessdictionary.com/definition/key-principles-of-quality-
management.html#ixzz29xFCajiX
smallbusiness.chron.com/principles-total-quality-management-small-business-environment-4678.html
22. Topic 4:
Differentiation between TQM based culture and Traditional
organizational culture
Traditional organizational culture:
Through tradition, history and structure, organizations build up their own culture. Traditional
organizational culture refers to the general culture within a company or organization, and
consists of set of beliefs, values, and norms, together with symbols like dramatized events and
personalities, that represents the unique character of an organization, and provides the context for
action in it and by it.
TQM based culture:
It is a proven technique to guarantee survival in a world-class competition. Total Quality is a
description of the culture attitude and organization of a company that strives to provide
customers with products and services that satisfy their needs. The culture requires quality in all
aspects of the company's operations, with processes being done right the first time and defects
and waste eradicated from operations.
: http://businesscasestudies.co.uk/business-theory/strategy/corporate-and-organisational-
culture.html#ixzz2AO6FH900
www.organizationalculture101.com/definition-of-organizational-culture.html
www.studymode.com/subjects/total-quality-culture-definition-page1.html
23. Topics name Traditional organizational
culture
TQM based culture
1.Focus Traditional organizational
culture focus on the internal
processes, structures and roles
of an organization rather than
product quality. Production of
more products and the costs of
this process are main
concerns.
But the total quality
management styles focus less
on mass production processes
and more on the quality of the
product.
2.Role of manager The role of the manager in a
traditional organizational
culture is to solve problems at
the top level, assign tasks to
the workers and control and
plan production.
In TQM based culture, the
role of manager is to
emphasize staff performance
and teamwork as prerequisites
for quality products and
services.
3.Decisions In traditional organizational
culture, decisions were short
term because managers make
strategic positioning decisions
based primarily on warfare
models on the competition.
In TQM based culture,
decisions are long term
because manager‟s focus on
market segmentation and
customer needs wants and
demands.
4. Product Design In traditional organizational
culture, the product design
process is internally driven,
based on the assumption that
"we know what is best for the
customer."
In TQM based culture,
managers develop products
after first determining what
customers need.
5. Emphasis Traditional organizational
culture emphasis detection
which normally have flaws. It
is a rigid system with no
scope for flexibility and
adjustments.
TQM based culture emphasis
prevention and finding
solutions to correct the plan
and introduce it in the next
cycle so that the flaw is
eliminated.
6. Technology In that culture, managers use
technology to help them deal
with the overly complex
systems that have grown up in
the organization.
In that culture, Managers use
technology only to optimize
systems for customer value
and to eliminate complexity
rather than automate it or
computerize it.
7. Employee Involvement In traditional organizational In TQM based culture,
24. culture, employee
involvement programs are
implemented without a focus
to contribute to
System.
employee involvement is
strategically
Focuses and contributes to
system purposes.
8. Human Resource
Management
In that culture, managers
regard human resource
management (HRM) as a staff
responsibility. HR Specialists
process paperwork to hire and
fire, and handle personnel
complaints.
In that culture, line managers
regard human resources as
critical resources and
strategically manage them as
inputs to system.
9. Structure Organizational structure is
based on specialization of
tasks. The hierarchy is tall,
with many levels of managers,
and it emphasizes functional
lines of authority.
In that culture,
Hierarchy is flat with fewer
levels of managers, and it
emphasizes teamwork to serve
super ordinate objectives.
10. Approach In traditional organizational
culture, managers accomplish
improvements through trial
and error.
In TQM based culture,
managers use the scientific
method to study proposed
changes and their effects.
11. Response to Error In the old paradigm, if they
care at all, managers are
intolerant of error. They
regard error as a personal
Failure and they respond with
punishment to instill fear in
those blamed.
In the new paradigm, error is
not desired; however,
managers view error as an
opportunity for learning.
People openly acknowledge
error because managers do not
assign personal blame, but
seek to fix a process or
system.
12. Authority In traditional organizational
culture, managers impose
authority from the top down
via rules and policies.
In TQM based culture, top
managers still hold authority
but they impose it by
communicating a vision,
enabling people with systems,
and empowering them to
make the vision real.
25. 13.Core aspect Traditional management
styles implement changes all
at once and after a long period
of time. The quality of
products and services is
changed only occasionally.
Kaizen, or continuous
improvement, is the core
aspect of quality focused
management styles. This
process involves gradual and
cyclical improvement to
products, services and
processes.
14. Measurement Measurement systems are
focused on internal measures of
efficiency, productivity, cost,
and profitability. This is the
tradition of management by
objectives.
Managers may use internally
focused measures, but they are
linked to customer value in a
broader measurement system.
15. Culture In that culture emphasis social
and emotional issues that are
regarded as irrational and
sources of distraction away from
goals and objectives.
In that culture managers
connect organizational mission
and purpose with each
individual's sense of purpose,
emotions, and social meaning.
16. Control Organization control through
scoring individual performance,
reviewing regular reports, and
evaluating performance as
either good or bad.
Managers statistically study
variation to understand the
causes of poor performance and
make changes in systems to
improve performance.
There are many other differences between the old or the traditional way of management to the
total quality management. In the bigger picture, TQM has basically changed the culture and the
thinking patterns of the organization. This change is substantial and will not be accomplished in
a short period of time. Small organizations will be able to make the transformation much faster
than large organizations.
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26. Topic no: 5
The Concept of Quality
We have all probably felt that sense of disappointment when something we have purchased does
not live up to expectations. At the heart of meeting such expectations is the notion of quality.
These expectations are based on the intended use and the selling price. Quality is perceived
differently by different people.” In a manufactured product, the customer as a user recognizes the
quality of fit, finish, appearance, function, and performance. The quality of service may be rated
based on the degree of satisfaction by the customer receiving the service.
27. When a product surpasses our expectations we consider that quality. Thus, it is somewhat of an
intangible based on perception. Quality can be quantified as follows:
Q = P / E
Where, Q = Quality
P = Performance
E = Expectations
If Q is greater than 1.0, then the customer has a good feeling about the product or service. Of
course, the determination of P and E will most likely be based on perception with the
organization determining performance and the customer determining expectations.
A more definitive definition of quality is given in ISO 9000:2000. It 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; generally implied by the
organization, its customers, and other interested parties; or obligatory.
The business meanings of quality have developed over time.
Some interpretations are given below:
Peter Drucker: "Quality in a product or service is not what the
supplier puts in. It is what the customer gets out and is willing to pay
for."
Feigenbaum (1983) defined quality as follows:
Quality is total composite product (goods and services) characteristics, through which the
product in use will meet the needs and expectations of the customers.
A definition attributed to quality guru Crosby states the following:
“Quality is conformance to requirements”.
Another frequently used definition comes from Juran:
“Quality is fitness for use”.
American Society of Quality Control (ASQC) and American National Standard Institute
(ANSI) defined:
28. “Quality is totality of features and characteristics of product (goods and services) that bears on
its ability to satisfy given needs”.
Approaches to define Quality:
Harvard professor David Garvin, in his book Managing Quality summarized five principal
approaches to defining quality: transcendent, product based, user based, manufacturing or
production based, and value based. Let‟s discuss each one of them:
Figure: Approaches to define quality
Approaches
Transcendent
Product
based
User basedProduction based
Value based
29. 1. Transcendent Approach:
In transcendent approach the quality is absolute and universally recognizable. It is common
notion used by laymen. There is no subjective judgment and is estimated by looking at the
product.
2. Product Based Approach:
In product based approach the quality is viewed as quantifiable and measurable characteristics or
attributes. The attributes of a particular product are in a specific category. These attributes are
accepted as bench of quality by the industry. Others in the same industry try to produce close to
this quality.
3. User Based Approach:
In user based approach the quality is defined as “Fitness for use”. Which is viewed from user‟s
perspective and is dependent on how well does the product meet the needs of the consumer. It is
also known as Customer Oriented Approach.
4. Production Based Approach:
The production based approach means an outcome of engineering or operational excellence and
is measured in terms of quality of conformance. Here the producer has specifications and
produces the product as per the specifications.
5. Value Based Approach:
In value based approach the quality is defined in terms of cost & price as well as a number of
other attributes. So according to this approach quality is satisfactory, if it provides desired
performance at an acceptable price because customer looks at the total value proposition and not
the price alone.
So at last we can say that, the concept of quality has developed over time differently by different
people, author, writer, organization etc. Therefore it is difficult to explain in a single word.
ice
Benefits
Value
Pr
30. Topic No: 6
Nine Dimensions of Quality
Quality has nine different dimensions. These dimensions are somewhat independent; therefore, a
product can be excellent in one dimension and average or poor in another. Very few, if any,
products excel in all nine dimensions. For example, the Japanese were cited for high-quality cars
in the 1970s based only on the dimensions of reliability, conformance, and aesthetics. Therefore,
quality products can be determined by using a few of the dimensions of quality.
31. Figure: The nine dimensions of Quality.
Now a brief description of nine dimensions of quality is given below:
1. Performance: Does the product or service do what it is supposed to do?
Performance is the primary operating characteristics, which determines how well the product or
service performs the intended function. Example: For a car: It is speed, acceleration, braking
distance, steering and handling, durability of batteries, fuel economy of cars, BHP of an engine,
etc. For a restaurant: It is good food.
Performance is often a source of contention between customers and suppliers, particularly when
deliverables are not adequately defined within specifications. The performance of a product often
influences profitability or reputation of the end-user. As such, many contracts or specifications
include damages related to inadequate performance.
2. Features: Does the product or services possess all of the features specified, or required for its
intended purpose?
Features are the secondary characteristics of a product or service or “extra” items added to basic
features. Example: For a car: Design of seats, power options, a tape or CD deck, antilock brakes,
Nine
dimensions
of quality
Performance
Features
Conformance
Reliability
DurabilityService
Response
Aesthetics
Reputation
32. and reclining seats, look and color of a refrigerator etc. For a restaurant: It is linen tablecloths
and napkins, creativity in design, attractiveness etc.
While this dimension may seem obvious, performance specifications rarely define the features
required in a product. Thus, it‟s important that suppliers designing product or services from
performance specifications are familiar with its intended uses, and maintain close relationships
with the end-users.
3. Reliability: Will the product consistently perform within specifications?
Reliability means the probability that a product will operate properly within an expected time
frame or survive over a specified period of time under stated conditions of use. Example: A TV
will work without repair for about seven years.
In other word, reliability means consistency of performance overtime or average time for the unit
to fail. Example: For a car: It is how often it needs repair. For an airline: It is how often flights
depart on schedule.
Reliability may be closely related to performance. For instance, a product specification may
define parameters for up-time, or acceptable failure rates. It is a major contributor to brand or
company image, and is considered a fundamental dimension of quality by most end-users.
4. Conformance: Does the product or service conform to the specification?
If it‟s developed based on a performance specification, does it perform as specified?
If it‟s developed based on a design specification, does it possess all of the features defined?
Conformance means the degree to which physical and performance characteristics of a product
match pre-established standards, documentation, being on-time, customer‟s expectations etc.
Example: For a part: It is whether this part is the right size. For a restaurant: It is whether the
meat is cooked according to client request (e.g. "medium rare").
5. Durability: How long will the product perform or last, and under what conditions?
Durability means the amount of use one gets from a product before it physically deteriorates or
until replacement or repaired is preferable. It is useful life of the product/service.
Example: For a light bulb: It is how long it works before the filament burns out. For car:
Corrosion resistance & long wear of upholstery fabric.
Durability is closely related to warranty. Requirements for product durability are often included
within procurement contracts and specifications. For instance, fighter aircraft procured to operate
from aircraft carriers include design criteria intended to improve their durability in the
demanding naval environment.
6. Serviceability: Is the product relatively easy to maintain and repair?
Serviceability means service after sale, during & before sales. It also means the ability to repair a
product quickly, easily & competently.
33. Convenience and cost of repair and maintenance and is related to ease in resolving the customer
complains. Example: For a car: It is how quickly and easily it can be repaired and how long it
stays repaired. For a mail order house: It is the speed and courtesy with which an overcharge is
corrected.
As end users become more focused on Total Cost of Ownership than simple procurement costs,
serviceability (as well as reliability) is becoming an increasingly important dimension of quality
and criteria for product selection.
7. Aesthetics: How a product looks, appearance, feels, sounds, tastes or smells?
Aesthetics means perceived quality: Subjective assessment resulting from image, advertising or
brand names. Example: For a product or service: It is its look, feel, sound, taste or smell.
The way a product looks is important to end-users. The aesthetic properties of a product
contribute to a company‟s or brand‟s identity. Faults or defects in a product that diminish its
aesthetic properties, even those that do not reduce or alter other dimensions of quality, are often
causing for rejection.
8. Responsiveness:
How well does the company react to unusual situations?
How well customer service personnel able to respond to a customer‟s questions?
Are the customer service personnel and the cashier friendly and courteous with customer?
Responsiveness means human to human interface. Such as: Efficiency during meeting, fast
decision making, effective human resource management etc.
9. Reputation:
Reputation means perceived Quality: Indirect evaluation of quality (e.g. reputation). It also
means Subjective assessment of quality resulting from image, advertising, or brand names.
Example: For a car: Top-rated car. For service: Award winning service department.
So at last we can say that, the marketing has the responsibility of identifying the relative
importance of each dimension of quality. These dimensions are then translated into the
requirements for the development of a new product or the improvement of an existing one.