Total Quality Management (TQM)

TOTAL QUALITY
MANAGEMENT
© Operational Excellence Consulting. All rights reserved.

© Operational Excellence Consulting
LEARNING OBJECTIVES
2
Identify key leaders in the field of quality
and their philosophies
2
Identify characteristics of the TQM
philosophy
3
Explain the meaning of Total Quality
Management (TQM)
1
Understand the importance of process
management and measuring the cost of
quality
4
Describe Total Quality leadership
attitudes and behaviors
6
Identify methods and tools for Total
Quality
7
Describe the key business excellence
and quality management models
5
Define the steps for TQM
implementation
8
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg

CONTENTS
3
Customer Focus
2
Employee Involvement & Empowerment
3
Introduction to TQM
1
Process Management
4
Cost of Quality
5
Total Quality Leadership
7
TQM Implementation
8
Business Excellence & Quality
Management Models
6
Methods & Tools for Total Quality
9
Key Takeaways
10

“
Quality is not an act, it is a
habit.”
ARISTOTLE
4

CHANGING SCENARIO OF ORGANIZATIONS
5
TODAY TOMORROW
YESTERDAY
Continuous Improvement Breakthrough Improvement
Incremental Improvement
Cost Management Value Creation
Cost Reduction
Use of Information Use of Knowledge
Use of Data
QCs Across Departments IQCs Across Organizations
QCs at Rank & File
A Quality Workforce A World-class Workforce
A Committed Workforce
Quality Management Innovation & Quality
Quality Control
Training for Development Training for Employability
Training for Employment
A Quality Mindset An Innovation Mindset
Problem-solving Mindset
Where is your organization now?

THE EVOLUTION OF TOTAL QUALITY MANAGEMENT
6
Business Excellence
Models
Learning
Organizations
1940’s 1960’s 1980’s 2000’s
1900’s
Industrial
Engineering
Business Process
Reengineering
Lean &
Six Sigma
Quality
System
Total Quality
Management
Design of
Experiments
Statistical
Process
Control
Quality
Control
Benchmarking &
Best Practices

WHAT IS TOTAL QUALITY MANAGEMENT (TQM)?
7
A management philosophy
that Quality and Customers
are fundamental business
principles for the company
Quality means providing our
external and internal
customers with products and
services that fully satisfy their
requirements
Aims at continuous
improvement through
systematic company-wide
employee involvement that will
deliver the best product and
service with total customer
satisfaction at the lowest cost

TQM IS NOT A FAD
8
Successful Lean organizations in
Japan are built on a strong
foundation of TQM.

© Operational Excellence Consulting 9
CHARACTERISTICS OF TQM
Focuses on meeting
customers’ needs, by
providing quality products and
services at a reasonable cost
Focuses on continuous
improvement
Recognizes role of everyone
in the organization
Views organization as an
integrated system with a
common aim
Focuses on the way tasks are
accomplished
Emphasizes teamwork

WHAT TQM IS NOT
10
● A flavor of the month
● The job of the QA department
● 100 percent inspection
● An ISO 9000 quality
management system
● Churning out tons of Standard
Operating Procedures
● A machine vision system
● Requiring supervisors to
constantly “police” the operators
● A rigorous Six Sigma Green Belt
certification program
● Another one of those “Extra
Curricula Activities”

QUALITY IN VARIOUS INDUSTRIES
11
AIRLINES
§ On-time
§ Comfortable
§ Low-cost service
HEALTHCARE
§ Correct diagnosis
§ Low waiting time
§ Low cost
POSTAL SERVICES
§ Fast delivery
§ Correct delivery
§ Cost containment
CONSUMER PRODUCTS
§ Defect-free
§ Properly made
§ Cost effective
INSURANCE
§ Payout on-time
§ Fast processing
§ Reasonable cost
TELCO
§ Low outage
§ Low-cost service
§ Customer service

IMPETUS FOR IMPLEMENTING TQM
12
INCREASED
COMPETITIVENESS
CHANGING
PRODUCT MIX
CUSTOMER
DEMANDS
GLOBALLY
INTEGRATED ECONOMY
Impetus
for TQM

THE QUALITY GURUS
THE QUALITY
PIONEERS
J. M. Juran
A. V. Feigenbaum
W. E. Deming
P. B. Crosby
G. Taguchi
K. Ishikawa

“
Quality comes not from
inspection, but from
improvement of the
production process.”
W. EDWARDS DEMING
14

DEMING’S 14 POINTS FOR TQM
15
1
Create constancy of purpose for improving products
and services. 8 Drive out fear.
2 Adopt the new philosophy. 9 Break down barriers between staff areas.
3
Cease dependence on inspection to achieve
quality. 10
Eliminate slogans, exhortations and targets for the
workforce.
4
End the practice of awarding business on price
alone; instead, minimize total cost by working with a
single supplier.
11
Eliminate numerical quotas for the workforce and
numerical goals for management.
5
Improve constantly and forever every process for
planning, production and service. 12
Remove barriers that rob people of pride of
workmanship, and eliminate the annual rating or
merit system.
6 Institute training on the job. 13
Institute a vigorous program of education and self-
improvement for everyone.
7 Adopt and institute leadership. 14
Put everybody in the company to work
accomplishing the transformation.

“
All improvement happens
project by project and in no
other way.”
JOSEPH M. JURAN
16

JURAN TRILOGY – QUALITY PLANNING, QUALITY CONTROL & QUALITY
IMPROVEMENT
17
Quality
Improvement
Time
Original Zone of
Quality Control
New Zone of
Quality Control
Cost
of
Poor
Quality
Sporadic Spike
Chronic Waste
Quality Planning Quality Control (During Operations)
Lessons Learned
Source: J. M. Juran

JURAN’S 10 STEPS TO QUALITY IMPROVEMENT
18
Set goals for improvement
2
Organize to meet goals that have been
set
3
Build awareness of both the need for
improvement and opportunities for
improvement
1
Provide training
4
Implement projects aimed at solving
problems
5
Give recognition
7
Communicate results
8
Report progress
6
Keep score
9
Maintain momentum by building
improvement into company’s regular
systems
10
Source: J. M. Juran

“
Quality has to be caused,
not controlled.”
PHILIP B. CROSBY
19

CROSBY’S FOUR ABSOLUTES OF QUALITY
20
Quality performance standard is zero
defects. Errors should not be
tolerated.
Quality comes from prevention,
which is a result of training,
discipline, example, leadership and
more.
Quality measurement is the price of
non-conformance.
Quality means conformance to
requirements.
1 2
4 3

CROSBY’S 14 STEPS TO QUALITY IMPROVEMENT
21
1
Make it clear that management is committed to
quality for the long term. 8
Train supervisors to carry out their responsibilities in
the quality program.
2 Form cross-departmental quality teams. 9
Hold a Zero Defects Day to ensure all employees
are aware there is a new direction.
3 Identify where current and potential problems exist. 10
Encourage individuals and teams to establish both
personal and team improvement goals.
4
Assess the cost of quality and explain how it is used
as a management tool. 11
Encourage employees to tell management about
obstacles they face in trying to meet quality goals.
5
Increase the quality awareness and personal
commitment of all employees. 12 Recognize employees who participate.
6 Take immediate action to correct problems identified. 13
Implement quality councils to promote continual
communication.
7 Establish a zero defects program. 14
Repeat everything to illustrate that quality
improvement is a never-ending process.

“
As with many other things,
there is a surprising amount
of prejudice against quality
control, but the proof of the
pudding is still in the eating.”
KAORU ISHIKAWA
22

ISHIKAWA’S 6 PRINCIPLES FOR QUALITY TRANSFORMATION
23
Quality first – not short-term profit
first.
1
Using facts and data to make
presentations – utilization of
statistical methods.
4
Consumer orientation – not
producer orientation. Think from
the standpoint of the other party.
2
Respect for humanity as a
management philosophy – full
participatory management.
5
The next process is your customer
– breaking down the barrier of
sectionalism.
3 Cross-function management.
6
Source: Kaoru Ishikawa

COMMONALITY OF THEMES OF QUALITY GURUS
24
Quality Cannot
Be Inspected In
Leadership
Commitment
Quality First
Approach
Total Employee
Involvement
A program for quality
requires organization-
wide efforts and long
term commitment,
accompanied by the
necessary investment
in training
Inspection is never
the answer to quality
improvement, nor is
“policing”
Involvement of
leadership and top
management is
essential to the
necessary culture of
commitment to quality
Quality come first,
before schedules and
costs

ISO 9001 QUALITY MANAGEMENT PRINCIPLES
1.
Customer
Focus
2.
Leadership
3.
Engagement of
People
4.
Process
Approach
5.
Improvement
7.
Relationship
Management
QUALITY
MANAGEMENT
PRINCIPLES
6.
Evidence-based
Decision Making

TRADITIONAL INSPECTION IS A POOR SUBSTITUTE FOR QUALITY
26
Traditional 100% inspection does not
provide 100% defect-free products.

ACTION!
1. Individually, count the number of ‘f’s in the following
paragraph:
The necessity of training farm hands for first-class farms in the
fatherly handling of farm livestock is foremost in the minds of
farm owners. Since the forefathers of the farm owners trained
the farm hands for first-class farms in the fatherly handling of
farm livestock, the farm owners feel they should carry on with
the family tradition of training farm hands of first-class farms in
the fatherly handling of farm livestock because they believe it
is the basis of good fundamental farm management.
2. How many ‘f’s have you counted? Has everyone got the same
number? Can quality be inspected in? Is it easy to catch
defects?
ACTIVITY 1: THE INSPECTION EXERCISE
27
Time allowed:
1 min

TQM IS A PARADIGM SHIFT
28
Traditional Organization TQM Organization
Strategy Profit-focused Customer Focus
Structure Hierarchical Flat and Flexible
System Piece-meal Integrated and Aligned
Style Top-down Top-down and Bottom-up
Staff Organized by Functions Organized by Teams
Skills Narrow Broad
Shared Values Less Congruent / Reactive More congruent / Proactive

TQM IMPERATIVES
29
TQM
IMPERATIVES
Management
Commitment
Customer
Focus
Management-
By-Fact
Teamwork
Continuous
Improvement

Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING

Total Quality Management (TQM)

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