Introduction TQM

7/25/2019 Introduction TQM

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Total Quality ManagementTotal Quality Management

Dr. Taqadus BashirDr. Taqadus Bashir

Assistant Professor,Assistant Professor,

Faculty of Management Sciences,Faculty of Management Sciences,

UoGUoG


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TQM: INTRODUCTION & CONCEPTTQM: INTRODUCTION & CONCEPT TQM is based on number of ideas.TQM is based on number of ideas.

It is the integration ofIt is the integration of all functions & processesall functions & processes within anwithin an

organization in order to achieve continuous improvement of theorganization in order to achieve continuous improvement of thequality of goods & services. And ultimate goal is ustomerquality of goods & services. And ultimate goal is ustomer

!atisfaction.!atisfaction.

The continuous process of reducing or eliminating errors inmanufacturing" streamlining supply chain management" improving

the customer e#perience and ensuring that employees are up$to$speed with their training. Total quality management aims to holdall parties involved in the production process as accountable forthe overall quality of the final product or service.

Total quality management %TQM was developed by 'illiam

(eming" a management consultant whose wor) had great impacton *apanese manufacturing. 'hile TQM shares much in commonwith the !i# !igma improvement process" it is not the same as !i#!igma. 'hile it focuses on ensuring that internal guidelines andprocess standards reduce errors" !i# !igma loo)s to reduce

defects.


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+ TQM means thin)ing about quality in terms of theTQM means thin)ing about quality in terms of the

enterpriseenterprise+ In the late ,-/s and early ,-0/s" the developedIn the late ,-/s and early ,-0/s" the developed

countries of 1orth America and 'estern 2uropecountries of 1orth America and 'estern 2uropesuffered economicallysuffered economicallyin the face of stiff competitionin the face of stiff competitionfrom *apan3sfrom *apan3s

ability to produce high$quality goods at competitive costability to produce high$quality goods at competitive cost. 4or the first time since the start of the Industrial. 4or the first time since the start of the Industrial5evolution" the 6nited 7ingdom became a net importer5evolution" the 6nited 7ingdom became a net importerof finished goods. The 6nited !tates undertoo) its ownof finished goods. The 6nited !tates undertoo) its ownsoul$searching" e#pressed most pointedly in thesoul$searching" e#pressed most pointedly in the

television broadcast of If *apan an... 'hy an3ttelevision broadcast of If *apan an... 'hy an3t'e8 4irms began ree#amining the techniques of quality'e8 4irms began ree#amining the techniques of qualitycontrol invented over the past 9/ years and how thosecontrol invented over the past 9/ years and how thosetechniques had been so successfully employed by thetechniques had been so successfully employed by the*apanese. It was in the midst of this economic turmoil*apanese. It was in the midst of this economic turmoilthat TQM too) root.that TQM too) root.

TQM HistoryTQM History
http://en.wikipedia.org/wiki/Early_1980s_recessionhttp://en.wikipedia.org/wiki/Early_1980s_recessionhttp://en.wikipedia.org/wiki/Japanese_post-war_economic_miraclehttp://en.wikipedia.org/wiki/Japanese_post-war_economic_miraclehttp://en.wikipedia.org/wiki/Japanese_post-war_economic_miraclehttp://en.wikipedia.org/wiki/Early_1980s_recession


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History & IntroductioncontdHistory & Introductioncontd TQM spread throughout the 6! 4ederal :overnment" resulting inTQM spread throughout the 6! 4ederal :overnment" resulting in

the following;the following;

The creation of the Malcolm


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CONCEPTCONCEPT The subsystems include all theThe subsystems include all the organizational functionsorganizational functionsin the lifein the life

cycle of a product, such as:cycle of a product, such as: DesignDesign PlanningPlanning ProductionProduction DistributionDistribution Field serviceField service

The management subsystems also require integration includingThe management subsystems also require integration including Strategy with a customer focusStrategy with a customer focus The tools of qualityThe tools of quality mployee involvement !the lin"ing process that integrates the whole#mployee involvement !the lin"ing process that integrates the whole#

$$ corollarycorollaryis that any product, process or service can be improved %is that any product, process or service can be improved %a successful org is the one that consciously see"s % e&ploitsa successful org is the one that consciously see"s % e&ploitsopportunities at all levelsopportunities at all levels

TheThe load-bearing structureload-bearing structureisis customer satisfactioncustomer satisfaction TheThe watch wordwatch word isis continuous improvementcontinuous improvement


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Key Issues & Terminologies related to TQMKey Issues & Terminologies related to TQM 'ost of (uality:'ost of (uality: as measure of non)quality ! if meeting customer requirements notas measure of non)quality ! if meeting customer requirements not

met# % a measure of how quality process is progressingmet# % a measure of how quality process is progressing

$ cultural change:$ cultural change: that appreciates primary needs to meet customer requirements,that appreciates primary needs to meet customer requirements,implements a management philosophy that ac"nowledges this emphasis, encouragesimplements a management philosophy that ac"nowledges this emphasis, encouragesemployee involvement % embraces the ethics of continuous improvementemployee involvement % embraces the ethics of continuous improvement

nabling mechanism of change:nabling mechanism of change: training % education, communication, recognition,training % education, communication, recognition,

management behavior, teamwor" % customer satisfaction programs*management behavior, teamwor" % customer satisfaction programs*

+mplementing T(:+mplementing T(:by defining mission, identifying output, identifying customers,by defining mission, identifying output, identifying customers,negotiating customer requirements, developing a -supplier specification. that detailsnegotiating customer requirements, developing a -supplier specification. that detailscustomer ob/ectives % determining the activities required to fulfill those ob/ectives*customer ob/ectives % determining the activities required to fulfill those ob/ectives*

anagement behavior:anagement behavior:acting as role model, use of quality processes % tools,acting as role model, use of quality processes % tools,encouraging communication, sponsoring feedbac" activities, fostering % providingencouraging communication, sponsoring feedbac" activities, fostering % providinga supporting environmenta supporting environment


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(uality control began from 0factory system1 that developed following -+ndustrial(uality control began from 0factory system1 that developed following -+ndustrial2evolution.2evolution.

Production methods were rudimentary at best at that timeProduction methods were rudimentary at best at that time

Products were made from non)standardized materials using non)standardizedProducts were made from non)standardized materials using non)standardizedmethodsmethods

2esult: products of varying quality % +nspection by customer was most common form2esult: products of varying quality % +nspection by customer was most common form

of ('of ('

uch later Frederic" Taylor developed his system of scientific management whichuch later Frederic" Taylor developed his system of scientific management whichemphasized productivity at the e&pense of quality* 'entralized departments chec"edemphasized productivity at the e&pense of quality* 'entralized departments chec"ed

quality at the end of production line* $n e&treme e&ample: 3awthorne wor"s atquality at the end of production line* $n e&treme e&ample: 3awthorne wor"s at

4estern lectric 'ompany5employed 678 people in 9;< in manufacturing plant4estern lectric 'ompany5employed 678 people in 9;< in manufacturing plant

% =;77 were in inspection department*% =;77 were in inspection department*

ethods of S(' % ($ were added much later*ethods of S(' % ($ were added much later*

Detecting manufacturing problem was over)riding focus*Detecting manufacturing problem was over)riding focus* Top management moved away from idea of managing to achieve quality> wor"forceTop management moved away from idea of managing to achieve quality> wor"force

had no sta"es at ithad no sta"es at it

'oncerns were largely limited to shop floor'oncerns were largely limited to shop floor

Traditional (' measures were !% still are# designed asTraditional (' measures were !% still are# designed as defense mechanismsdefense mechanisms totoprevent failure or eliminate defectsprevent failure or eliminate defects

Antecedents of Modern QMAntecedents of Modern QM


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Antecedents of Modern QMcontAntecedents of Modern QMcont

$ccountants were taught !% Still are# that e&penditure for defect prevention$ccountants were taught !% Still are# that e&penditure for defect prevention

were /ustified only if they were less than the cost of failure which was rarelywere /ustified only if they were less than the cost of failure which was rarely

computed*computed*

Following the 44++, quality of products produced in ?S$ declined asFollowing the 44++, quality of products produced in ?S$ declined as

manufacturers tried to "eep up with the demand for non)military goods thatmanufacturers tried to "eep up with the demand for non)military goods that

were not produced during war*were not produced during war*

$t this time a number of pioneers began to advance a methodology of (' in$t this time a number of pioneers began to advance a methodology of (' inmanufacturing % developed theories % practical techniques for improvedmanufacturing % developed theories % practical techniques for improved

quality*quality*

4* dward Demming, @oseph * @uran, $rmund A* Feingenbaum % Philip4* dward Demming, @oseph * @uran, $rmund A* Feingenbaum % Philip

'rosby*'rosby*

Demming1s death at age B in 9B proved to be a great loss for qualityDemming1s death at age B in 9B proved to be a great loss for quality


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QUALITY GURUQUALITY GURU(eming(emingthe best )nown of early pioneers is creditedthe best )nown of early pioneers is credited

with popularizing Q in *apan in early ,-9/s" today iswith popularizing Q in *apan in early ,-9/s" today is

regarded as national hero in that country & is theregarded as national hero in that country & is thefather of world famousfather of world famous (eming =rize for Quality(eming =rize for Quality..

>e is )nown best for developing a system of !Q>e is )nown best for developing a system of !Q

although his contribution substantially goes beyondalthough his contribution substantially goes beyond

these techniques. >is philosophy begins with topthese techniques. >is philosophy begins with topmanagement but maintains that a company must adoptmanagement but maintains that a company must adopt

,? points of his system at all levels.,? points of his system at all levels.

>e also believes that quality must be built into the>e also believes that quality must be built into the

product at all stages in order to achieve a high level ofproduct at all stages in order to achieve a high level ofe#cellence.e#cellence.


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>e defines quality as a predictable degree of uniformity &>e defines quality as a predictable degree of uniformity &dependability at low costs & suited to mar)et. >e taught that -@dependability at low costs & suited to mar)et. >e taught that -@of variations have common causes whereas ? have specialof variations have common causes whereas ? have specialcauses. >e opined that statistics is a management tool & it reliescauses. >e opined that statistics is a management tool & it relieson statistical process control as a mean of managing variations inon statistical process control as a mean of managing variations ina process.a process.

>e developed what is )nown as (eming hain 5eactionB as quality>e developed what is )nown as (eming hain 5eactionB as qualityimproves" cost will decrease & productivity will increase" resultingimproves" cost will decrease & productivity will increase" resulting

inin more Cobs"more Cobs"

greater mar)et sharegreater mar)et share

Dong$term survivalDong$term survival

Although itEs the wor)er who will ultimately produce qualityAlthough itEs the wor)er who will ultimately produce quality

products" but there will be wor)er pride & satisfaction rather thanproducts" but there will be wor)er pride & satisfaction rather thanestablishment of quantifiable goals.establishment of quantifiable goals.

Rather than worker, his overall approach focuses onRather than worker, his overall approach focuses onimprovement of process in a systemimprovement of process in a system being thebeing the cause ofcause ofprocess variationprocess variation

!e"in#$s !efinition of Qu%ity!e"in#$s !efinition of Qu%ity


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!e"in#$s Uni'ers% () Points for M%n%#e"ent!e"in#$s Uni'ers% () Points for M%n%#e"ent

,.,. reate consistency of purpose with a planreate consistency of purpose with a plan

F.F. Adopt new system of qualityAdopt new system of quality

G.G. ease dependence on mass inspectionease dependence on mass inspection?.?. 2nd the practice of choosing suppliers based solely on price2nd the practice of choosing suppliers based solely on price

9.9. Identify problems & wor) continuously to improve system.Identify problems & wor) continuously to improve system.

@.@. Adopt modern methods of training on CobAdopt modern methods of training on Cob

.. hange the focus from production numbers %quantity to qualityhange the focus from production numbers %quantity to quality0.0. (rive out fear(rive out fear

-.-.


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Qu%ity Guru *ur%nQu%ity Guru *ur%n Ci"e Deming he was also invited to @apan in 9=6 by ?nion of @apanese Scientists %Ci"e Deming he was also invited to @apan in 9=6 by ?nion of @apanese Scientists %

ngineers !@?S#* 3is lectures introduced managerial dimension of planning,ngineers !@?S#* 3is lectures introduced managerial dimension of planning,

organizing, controlling % focused on responsibility of management to achieve quality %organizing, controlling % focused on responsibility of management to achieve quality %

the need for setting goals*the need for setting goals*

3e defined quality as -3e defined quality as - Fitness for useFitness for useof terms of design, conformance, availability,of terms of design, conformance, availability,

safety % field use* So his concept more closely incorporates view point ofsafety % field use* So his concept more closely incorporates view point of customerscustomers

3e taught to measure everything % relies on systems % problem)solving techniques*3e taught to measure everything % relies on systems % problem)solving techniques*

?nli"e Demming, he focuses on top)down management % technical methods rather than?nli"e Demming, he focuses on top)down management % technical methods rather than

wor"er pride % satisfaction* 3e gave 97 steps to quality improvement:wor"er pride % satisfaction* 3e gave 97 steps to quality improvement:

9*9* uild awareness of opportunities to improveuild awareness of opportunities to improve

;*;* Set goals for improvementSet goals for improvement

B*B* Erganize to reach goalsErganize to reach goals

6*6* Provide trainingProvide training

=*=* 'arry out pro/ects to solve problems'arry out pro/ects to solve problems** 2eport progress2eport progress

G*G* Hive recognitionHive recognition


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@uran is founder of @uran +nstitute of 4ilton, 'onnecticut* 3e@uran is founder of @uran +nstitute of 4ilton, 'onnecticut* 3epromotes a concept "nown as anaging usiness Pro/ect (uality> apromotes a concept "nown as anaging usiness Pro/ect (uality> a

technique for e&ecuting cross)functional (uality improvementtechnique for e&ecuting cross)functional (uality improvement @uran1s contribution over longer term maybe greater than Deming1s@uran1s contribution over longer term maybe greater than Deming1s

because @uran has broader concept whereas Deming1s focus onbecause @uran has broader concept whereas Deming1s focus onstatistical process control more technical oriented*statistical process control more technical oriented*

Feigenbaum also achieved visibility through wor"Feigenbaum also achieved visibility through wor"with @apanese, but unli"e former two he used a totalwith @apanese, but unli"e former two he used a totalquality control approach that may very well be thequality control approach that may very well be theforerunner of today1s T(*forerunner of today1s T(*3e promoted a system for integrating efforts to develop, maintain3e promoted a system for integrating efforts to develop, maintain

% improve quality by various groups in an organization*% improve quality by various groups in an organization*

To do otherwise, according to Feigenbaum would be to inspect forTo do otherwise, according to Feigenbaum would be to inspect for% control quality after the fact rather than build it at an earlier% control quality after the fact rather than build it at an earlier

stage of processstage of process

!e"in# + *ur%n & ,ei#en-%u"!e"in# + *ur%n & ,ei#en-%u"


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$uthor of a popular boo":$uthor of a popular boo": (uality is Free(uality is Free

$chieved greater commercial success by promoting his views %$chieved greater commercial success by promoting his views %founding (uality 'ollege in 4inter Par", Florida*founding (uality 'ollege in 4inter Par", Florida*

3e argues that poor quality in the average firm costs about ;7I of3e argues that poor quality in the average firm costs about ;7I ofrevenues, most of which could be avoided by adopting good qualityrevenues, most of which could be avoided by adopting good quality

practices* 3is absolutes of (uality are:practices* 3is absolutes of (uality are:

(uality is defined as conformance to requirements, not -goodness.(uality is defined as conformance to requirements, not -goodness. The system for achieving quality is prevention, not appraisalThe system for achieving quality is prevention, not appraisal

The performance standard is zero defects, not -that1s close enough.The performance standard is zero defects, not -that1s close enough.

The measurement of quality is the price of non)conformance, not inde&es*The measurement of quality is the price of non)conformance, not inde&es*

3e stressed that motivation % planning does not dwell on statistical3e stressed that motivation % planning does not dwell on statistical

process control % several problem)solving techniques of Deming %process control % several problem)solving techniques of Deming %@uran*@uran*

3e states that3e states that quality is freequality is freebecause thebecause the small costs of preventionsmall costs of preventionwill always be lower than thewill always be lower than the costs of detection, correction, % failurecosts of detection, correction, % failure**

P.ii/ Cros-yP.ii/ Cros-y


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anagement 'ommitmentanagement 'ommitment (uality +mprovement Team(uality +mprovement Team

(uality measurement(uality measurement 'ost of quality'ost of quality (uality $ssurance(uality $ssurance

'orrective $ction'orrective $ction Jero defects planningJero defects planning Supervisor trainingSupervisor training Jero defects day !to signal employees that company has a new standard#Jero defects day !to signal employees that company has a new standard# Hoal settingHoal setting rror cause removalrror cause removal 2ecognition !give public, non financial appreciation to those who meet their quality goals or2ecognition !give public, non financial appreciation to those who meet their quality goals or

perform outstanding#perform outstanding#

(uality councils(uality councils Do it all over again !repeat from 9 to 9B to emphasize never ending process of qualityDo it all over again !repeat from 9 to 9B to emphasize never ending process of quality

improvement#improvement#

P.ii/ Cros-y$s () /ointsP.ii/ Cros-y$s () /oints


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Kow)a)days there is more concern for service quality as compared toKow)a)days there is more concern for service quality as compared toproduct quality in developed nationsproduct quality in developed nations

+t was reported in a research that will go out of their way to pay more+t was reported in a research that will go out of their way to pay morefor good service % strongest complaints of customers were registeredfor good service % strongest complaints of customers were registerednot for product but rather for servicenot for product but rather for service

+n many ways defining % controlling quality of service is more+n many ways defining % controlling quality of service is more

difficult than quality assurance of products*difficult than quality assurance of products* ?nli"e manufacturing the service industry has unique characteristics?nli"e manufacturing the service industry has unique characteristics

that ma"es process of (' less manageable but no less importantthat ma"es process of (' less manageable but no less important

Distinguishing characteristics are:Distinguishing characteristics are: ehavior of delivery personehavior of delivery person

+mage of organization+mage of organization

'ustomer present during the production process % performing the final inspection'ustomer present during the production process % performing the final inspection

easure of output is difficult to defineeasure of output is difficult to define

Aariance % acceptance range may not applyAariance % acceptance range may not apply

$d/ustment of control system if the customer is present$d/ustment of control system if the customer is present

er'ice Qu%ity + Product Qu%ityer'ice Qu%ity + Product Qu%ity


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Tom Peters: Search for ExcellenceTom Peters: Search for Excellence

Ta)ing a cue from (ominoEs =izza" theirTa)ing a cue from (ominoEs =izza" theirMichigan$based neighbor" (octorEsMichigan$based neighbor" (octorEs

>ospital in (etroit is promising to see its>ospital in (etroit is promising to see its

emergency room patients in F/ min oremergency room patients in F/ min or

care will be free otherwisecare will be free otherwise. (uring the. (uring the

,,ststthree wee)s of the offer" no patientthree wee)s of the offer" no patient

have been treated free of charge andhave been treated free of charge and

the number of patients has been up tothe number of patients has been up toG/G/


19/19Thank youThank you

Introduction TQM

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