TQM - Session 4

4The Philosophy of TQM

TQM is a journey not a destination

— V. Daniel Hunt

Course Oultine- Session 4

4 TQM Basics Definition of TQM, Evolution of

TQM, Key Elements of TQM,

Benefits of TQM

Reading: Text Book, Chapter 3 ,

pg. (67-78)

Learning Objectives

After studying this chapter, you should be able to: Explain the evolution of TQM

Understand the key principles and key elements of TQM

Explain the core concepts of TQM

Discuss the Total Quality Management Excellence (TQMEX) Model

Find out the difference between TQM organization and traditional organization

Identify common barriers to implementation of TQM and prerequisites and benefits of TQM

TQM - Defined

TQM is an integrated effort designed to improve

quality performance at every level of the

organization.

Total = Quality involves everyone and all activities

in the company.

Quality = Conformance to Requirements (Meeting

Customer Requirements)

Management = Quality can and must be managed

Definition of TQM

TQM is a process for managing quality. It is viewed as a continuous way of life and a philosophy of perpetual improvement in everything we do.

According to the British Standard BS 7850, TQM is defined as “Management Philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization.

Definition of TQM

TQM is defined as a management approach that tries to achieve and sustain long term organizational success by encouraging employee feedback and participation, satisfying customer needs and expectations, respecting societal values and beliefs, a paradigm.

Five Pillars of TQM1. Product

2. Process

3. System

4. People

5. Leadership

TQM - System

focuses on meeting owners’/customers’ needs by providing quality services at a cost that provides value to the owners/customers

is driven by the quest for continuous improvement in all operations

recognizes that everyone in the organization has owners/customers who are either internal or external

views an organization as an internal system with a common aim rather than as individual departments acting to maximize their own performances

focuses on the way tasks are accomplished rather than simply what tasks are accomplished

Evolution of TQM – Four Stages

Quality Management Stages

Areas of Focus Scope

Inspection Detection Error Detection Sorting, grading, reblending Rectification Decision about salvage and

acceptance

Quality Control Maintaining Status quo

Quality standards Use of statistical methods Process performance Product testing

Quality Assurance Prevention Quality system (ISO 9000) Quality costing Quality planning and policies Problem solving Quality design

Total Quality Management

Quality as a Strategy

Quality Strategy Customers, employees and

suppliers involvement Involve all operations Empowerment and teamwork

Seven Phases in the Development of TQM

TQM – Principles

Customer focused organisation

Leadership

Involvement of people

Process approach

Systems approach to management

Continuous improvement

Factual approach to decision making

Mutually beneficial supplier relationship

TQM – Key Elements

Core Concepts of TQM

The core concepts of TQM are used to drive the process of continuous improvement and they are explained by the criteria such as:

Customer Satisfaction

Internal customer satisfaction

All work is process

Measurement

Synergy in team work

People make quality

Continuous improvement cycle

Prevention

TQMEX Model

5-S

BPM

QCCs

QMS

TPM

QM

OperationsManagement

QualityManagement

Traditional Organisation Vs TQM Organisation

Customer driven

Long-term orientation

Data-driven

Elimination of waste

Continuous improvement

Prevention

Cross-functional teams

High employee participation

Problem-solving

Systems Thinking

Leadership

Company-driven

Short-term orientation

Opinion-driven

Tolerance of waste

Fire fighting

Inspection

Fortressed departments

Top-down hierarchy

Blame

Isolation

Management

Prerequisites for TQM

Management must establish TQM as an objective and accept

responsibility

Top management must be able to overcome the obstacles

Participation by all

Dedicated resources

Management commitment

Requirement of cultural change

Continuous training

TQM Implementation

1. Train top management on TQM principles.

2. Assess the current: Culture, customer satisfaction, quality management system

3. Top management determines the core values and principles to be used and communicate them.

4. Develop TQM master plan based on steps 1, 2, 3.

5. Identify and prioritize customer needs and determine products or service to meet those needs.

TQM Implementation

6. Determine the critical processes to produce those products or services.

7. Create process improvement teams.

8. Managers should support effort by planning, training, time.... to the teams.

9. Integrate changes for improvement in daily process management and standardizations take place.

10. Evaluate progress against plan (step 8) and adjust as needed.

11. Constant employee awareness and feedback on status are provided and a reward/ recognition process is established.

TQM Implementation – Common Barriers

Lack of systems

Lack of Procedures

Inappropriate Organisation culture

Lack of organisation design

Lack of Management commitment

Benefits of TQM

Creates a good corporate culture

Better reviews from customer

Improved employee performance

Encourages a strategic approach to management

Provides high return on investment through improving

efficiency.

Works equally well for service and manufacturing sectors.

Allows organizations to take advantage of developments that

enable managing operations as cross-functional processes.