Tqm1ppt

MG 1401 TOTAL QUALITY MANAGEMENT

1.Introduction

TOTAL QUALITY MANAGEMENT
TQM is an
enhancement of
traditional way of
doing business
TQM is for the most part
common sense.
Analyzing the three words, we have

• Total : made up of the whole

• Quality : degree of excellence a product or service provides

• Management : act, art, or manner of handling, controlling,
directing, etc.,

Therefore, TQM is the art of
managing the
whole to achieve
excellence.
ie., to manage in a total quality way.

Foundations-
Hard- management necessities
- four parts of a new model for TQM- 4 Ps
- improving Performance through
better Planning and
management of People and
Processes in which they work
Core- is Performance measures.
This core still needs to be surrounded by

Foundations- Soft-outcoms- 3Cs

• Commitment - to quality and meeting the customer
requirements
• Communications - of the quality message and recognition
of the need to change the
• Culture - of most organizations to create total Quality
These are the S which must encase the H of other three Ps.


New model for TQM
4 Ps - Hard
3 Cs - Soft H

S S

H

H
H

S

Thus, TQM is defined as both
• a philosophy and
a set of guiding principles that represent the
foundation of
continuously improving organizations
• It is the application of
quantitative methods and
human resources to
improve all the processes within the
organization and
exceed customer needs now and in the future
• It integrates
fundamental managing techniques,
existing improved efforts and
technical tools under the
disciplined approach

TQM Shewhart Bench Marking
Deming Information Technology
Juran Quality Management Systems
Figenbaum Environmental Management System
Ishikawa Quality Function Deployment
Crosby are Quality by Design
Taguchi Failure Mode & Effect Analysis
Products and service Liability
Begins with the knowledge Total Productive Maintenance
provided by
Management Tools
some of the
Tools and Statistical Process Control
Gurus Techniques Experimental Design
of quality Taguchi’s Quality Engineering

They contributed to the development of

Product or
Principles & Service Customer
Practices Realization

Approach
People and Relationship Continuous Process Improvement
Leadership Measure
Customer Satisfaction Performance measures
Employee Involvement
Supplier Partnership

TQM framework

Quality
Introduction: The initial thrust in the
Industrial scene was to
“ Produce and Flourish” and subsequently, it was to
“ Produce Quality and Flourish” and then
“ Assure Quality and Flourish” and now
“ Manage Quality and Flourish”
In the LPG era- (Liberalization, Privatization and Globalization)
It is mandatory for
Indian Industries to incorporate
Quality in each and every business activity
Quality has to be managed- it does not just happen
Fundamental parts of the recipe for success
• Understanding and commitment by senior management
• Effective leadership
• Teamwork
• Good process management
e.g., - watch -depends on wearer,
- jewelry- impression of wealth,
- timepiece- data including date,
- hospital- professionalism

Quality - definition
we must
define Quality in a way that it is
useful to the management,
we must recognize the need to include in the
assessment of Quality
- the true requirements of the
customer - the needs of the
expectations
Quality then, is simply meeting the
customer requirements
• expressed in many ways by other authors
• we are not able to give an unique definition for Quality
- because it is not a phenomena,
- it involves- a lot of - diverse parameters
- diverse set of people
- therefore we have a - diverse set of definitions
- when the expression Quality is used, we usually think in terms of
an excellent product or service that
fulfills or
exceeds our
expectation.

-these expectations are based on the
intended use and the
selling price.
e.g., plain steel washer & chrome plated steel washer
-when a product surpasses our
expectation we consider that Quality.

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
Perception: the organization determines performance
the customer determines expectations

• a more definitive definition is given in ISO 9000:2000
• “Quality is defined as the degree to which a set of inherent
characteristics fulfills requirement”
- 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 characteristics
- characteristics can be quantitative or qualitative
- requirement is need or expectation that is stated; generally
implied by the
organization, its
customers, and other
interested parties; or obligatory
Situations
• Doing the right things-(Products and services that reflect target
features based on the needs of intended customers)
• Doing the right things right- (using efficient processes)
• Doing the right things right, right way- (both functional
standards and customer’s expectations)
• No single definition of Quality applies in all situations

Helpful guides defined by Quality Gurus
1.“Fitness for purpose or use” - Dr .Joseph. M. Juran (1954)

2.“Quality should be aimed at the needs of the consumer, present
and future” -W. Edwards Deming (1950)
3.“The total composite product and service characteristics of
marketing, engineering, manufacture and maintenance
through which the product and service in use will meet the
expectation of the customer” - Armand V. Feigenbaum
4.“Conformance to requirement” -Philip B. Crosby(1979)
5.“Quality is the minimum loss imparted by a Product to
Society from the time the product is shipped”-
- Dr. Genichi Taguchi (1960)
6.“Quality is correcting and preventing loss, no living with
loss” -Hoshin

Other definitions
7. “Conformance to specifications and standards”
8. “Productivity, competitive costs, on time delivery and the
satisfaction of the customer”
9. “Getting everyone to do what they have accepted to do, for
the first time and every time”
10. “What the customer say it is”

Dimensions of Quality (Measuring Quality)
David A. Garvin’s NINE dimensions of quality
1 Performance : Main, operating, primary, important
characteristics, also called Functionality or Operationally
-mileage given by an automobile
-brightness of the picture
-power consumed by a water pump
-maximum speed, comfort in an automobile
2 Features: Secondary characteristics, added features,
enhancement, supplementing basic function
-power steering
-remote control
-air conditioner in a car
-free movie on a omni bus journey
3 Conformance: Meeting specifications or
industry standards, workmanship
-conformance to requirements
-an objective definition of quality
4 Reliability: Probability that a product is performing its
indented life and under stated conditions
-consistency of performance over time
-average time for the unit to fail

5 Durability : Useful life, including repair, before it
physically deteriorates or it is replaced
-conditions of use
6 Service : Solve problems, compliance, easy to repair,
easy to recondition, competence, courtesy, speed

7 Response : Human to human interface, quick to attend
customer’s complaint
-courtesy of the dealer
8 Aesthetics : Sensory characteristics
-such as exterior finish
-style
-colour
-smell
-taste
-feel etc.,
9 Reputation :Past performance and other intangibles,
recognized
-such as being ranked first
-brand image
-goodwill

Other dimensions are:
• Availability- measure of probability that the equipment is
kept in working condition
• Manufacturability- easy manufacturing, or service- includes
design, process planning, finishing, assembly, packing and
delivery
Dimensions of quality

Properties Characteristics

Measurable Non-measurable Functional Technical Psychological

variable attributes

-size -colour -durability -aesthetics
-weight -number -appealing
-strength defectives
-IQ, etc., -skills etc.,

• These dimensions are
somewhat independent.
• A product can be excellent in one dimension and
average or poor in another.
• Very few, if any,
excel in all dimensions.
• e.g., High quality cars in 1970s – Japanese were cited-based
on the dimensions of reliability, conformance and aesthetics

• Therefore, quality products can be determined by using
a few of the dimensions of the quality

• Marketing has the responsibility of
identifying the relative importance of each
dimension of quality
• These dimensions are then translated into
requirements for the development of a new product or
improvement of an existing one.

Quality planning
• In any organization quality planning is an essential activity
that decides its success in the market place
• should be formulated with customer satisfaction as the goal
rather than financial or sales goals

Traditional organization

Planning Design Engineering Manufacturing Supply Sales & marketing Service

Takes care
Identifies Design Prepares a Manufacture Supply To the customer
of after
the customer the detailed
sales service
requirement product Specification
& process
methodology

The design and engineering department have to simultaneously work with
Manufacturing department

However, the traditional approach cannot respond to the customers demand quickly.
So the interaction between all the departments is essential for an effective and
successful quality planning

Quality planning
A road map for quality planning as developed by Joseph M. Juran
Activities Existing product and service Outputs
Establish quality goals
(create new design/idea from old one)
List of quality goals
Apply measurement throughout

Identify ( the goals impacted) the
customers List of customers
(depending on the market potential)

Determine the customer’s needs
(Market research, input from technical expert
Discover the customer needs and satisfaction) List of customer’s needs

Develop product features
(to achieve high product sales with quality,
Optimize) Product designs

Develop process features
(concurrent engineering or simultaneous
engineering, optimize the process) Process designs

Establish process controls
(prove that the process can produce the
Product under operating conditions) Process ready to produce
Transfer the plans to the operating forces (groups)
Juran’s Quality Planning road map

Quality planning
The major tasks involved in the road map of quality planning
comprise the following broad activities

• Design practices: to build quality into product, to suit
customer and market needs and requirements

• Product and Process development: scaling up, commercial
run, handing over of design

• Measuring instruments and gauges: laboratory controls,
calibration and standards, control of precision and accuracy
of instruments

• Tools, jigs and fixtures: their design, try out, evaluation,
and certification prior to use in the shop

• Quality control: procedure during production

• Supplier quality: assurance

Quality planning
• Field quality: assurance covering customer education,
installation, commissioning and maintenance of hardware

• Customer relations: assurance, monitoring of information
to design, the changing needs of customers, their new
requirements, new application ideas etc.,

• Overall quality: assurance, audit of company

• Systems of quality improvement: Project identification,
project team, targets of results and time, resource
mobilization, monitoring of progress, evaluation and
control

• Quality costs: measurement and analysis, to achieve the
optimal product design

• Working methods and procedures of planning: all stages
right from design to delivery need to be documented as
quality manuals

Quality costs - Cost of quality (COQ)
The concept of Cost Of Quality (COQ) has been around for many
years
• Dr. Joseph M. Juran included a section on COQ in his “Quality

control handbook” in 1951
• The American Society for Quality (ASQ) established the
Quality Cost Committee under the
Quality Management Division in 1961
• Philip B. Crosby- popularized the use of COQ – in his book
“Quality is free” in 1979
He has written as “Quality is free, but only to those who are
willing to pay heavily for it”
• Several Current quality system standards
ISO 9000,
QS-9000,
AS-9000 refer the use of
COQ for quality improvement
Concept of COQ :
- the Costs due to the lack of quality or
- the Costs to ensure quality is produced

Model of quality costs, strategic objectives and
continuous improvement

Philip B. Crosby refers to the COQ as the-
1. “price of conformance”-
the prevention and appraisal costs
2. “price of non-conformance”-
the failure costs

- is the sum of the costs incurred by the company in
preventing poor quality
- the costs incurred to ensure and evaluate that the
quality requirements are met, and
- any other costs incurred as a result of poor quality being
produced
poor quality is defined as non-value added activities-
waste, errors or failures to meet
customer needs and requirements
- broken into three categories of PAF
COQ model is often referred as the PAF model
on

A
ti

pp
en

ra
ev

is
Pr

al

Failure
Internal, External

Prevention costs- refer to all activities specifically designed to
prevent poor quality in
products or services.
- an investment to
prevent failure to meet
customer requirements or
specifications and are associated with
designing, installing, maintaining and auditing a
quality system and
related activities.
- These actions are designed to
prevent defects, failures or
process wastes.
- Elements can include
statistical process control,
quality training,
quality system audits,
supplier certification,
determination of customer requirements and
design reviews.

Appraisal costs are associated with
measuring,
evaluating or
auditing
products or
services to assure
conformance to quality standards and
performance requirements.
- an investment to
prevent products or
services that are
defective in any way from
reaching the customer.
- Elements include
receiving inspection,
product testing and audits,
test equipment calibration,
monitoring service calls and
customer satisfaction surveys.

Failure costs result from
products or
services
not conforming to requirements or customer needs.
- They represent a
cost penalty incurred by an organisation because it has
failed to meet
quality standards.
There are two types of failure cost:
1.Internal failure costs - that occur
prior to delivery or shipment of the
product, or
furnishing of a
service,
to the customer and frequently represent
wastes.
Elements in this category include
scrap, rework, sorting, troubleshooting, excess inventory,
activities that do not add value, wasted material or time

2.External failure costs - that occur
after delivery of the
product, and
during or after the
furnishing of a service,
to the customer.
They include the results of
customer dissatisfaction, such as
loss of market share and
future custom opportunities.
Elements in this category include
returned goods, warranties, product recalls,
loss of reputation, loss of repeat sales, liability insurance
and complaint investigations.
External failure costs are the
most serious because they impact
the customer and are often
understated because they are
difficult to
quantify.
They must receive priority attention

Total quality cost is the sum of
Prevention,
Appraisal, &
Failure.
It is a key principle of
quality costs that
relatively small investments in
prevention activities result in
significant reductions in
failure costs, both internal and external.
Appraisal costs, such as
product testing and inspection or
excessive levels of signature approvals for
purchase requisitions or
loan approvals, likewise, can be
expected to
decrease as quality improves.

• Prevention cost • Appraisal cost
1. Planning 1. Purchasing appraisal
2. Preparation costs -receiving/
3. Design &Development- source inspection test of
Product/Service purchased items
4. Purchasing 2. Operations-M or S
5. Operations- inspection, tests, & audits
manufacturing / service during production &
6. Education& training delivery
3. External- field-trials,
7. Quality administration performance evaluations
staff- Quality of field stock &
Program planning, spare parts
performance reporting 4. Review of test and
8. Market research -in inspection data-reviewing
collection, continued inspection and test data
survey of quality needs prior to release of
including feedback, products
contract and 5. Miscellaneous quality
document review evaluations
9. Field testing -support area-dispatch
10.Preventive maintenance rooms, store rooms,
11.Evaluation packaging and shipping

Failure costs: costs associated with the product or service which
did not meet the requirements and the product
had to be fixed or replaced or the service had to be repeated
• Internal failures • External failures
-costs resulting from the failures found -when the customer finds the failure
before the product or service reaches -do not include any of the customer’s personal
the customer costs
i.e., non-conforming products such as costs of
scrap, rework, repair & r/c before reaching i.e., non-conforming after
the
the customer
• (a) Design failure costs delivery to the customer
inherent design inadequacies (a) Cost of investigations on customer
which includes design corrective actions, complaints-or user service
rework due to design changes, scrap due to
design changes and production liaison costs (b) Returned goods replacements
• (b) Purchase failure costs (c) Retrofit and recall costs-due to design
purchased material rejection cost deficiency the parts are redesigned’
i.e., rejection disposition, replacement, recalled or retrofitted
supplier corrective action, rework supplier (d) Warranty claims-repair costs, cleaning
rejects, uncontrolled material losses.
costs, price reduction negotiated
• (c) Operation failure costs
This covers major portion. (e) Liability costs-including liability
costs associated with non-conforming insurance-claims –damages suffered
discovered during the operation process (f) Penalty costs-according to contracts or
during government rules, proven lack
(g) Customer or user goodwill-dissatisfaction
material review, during corrective actions, of the customer
rework or repair, scrap costs, internal
failure labour costs (h) Lost sales-due to quality problems, profit
lost due to reduction in sales

Quality cost models
Cost per good unit of product cost

80

70

60

50

40
Optimal situation

30

20

10

60% 70% 80% 90% 100%
Quality conformance
100% defective 0% defective

Analysis techniques for quality costs

Optimum Quality costs
The PAF costs can be analyzed as shown in figure

0 100

( Quality conformance, 100%)

Quality cost analysis
• In the short term, there is a positive correlation between
quality improvement and the cost of conformance and
• a negative correlation between
quality improvement and the cost non-conformance.
In other words,
an improvement in the quality of the products will lead to
an increase in the cost of conformance that generated it.

This is because an improvement in the
quality level of a product might require
• extra investment in R&D,
• more spending in appraisal cost,
• more investment in failure prevention and so on.

But a quality improvement will lead to a decrease in the cost of
nonconformance because
1. fewer products will be returned from the customers,
2. therefore less operating cost of customer support and
3. there will be less internal rework.

Root cause analysis of quality costs

• PAF costs varies with organizations and products
• A costs have been budgeted in many companies
• Studies reveal that F costs are several time the A costs
• P costs are relatively low when comparing with the Total cost
• Relationship between I-F and E-F costs is significant
• The I-F cost point to a need for programs involved in
manufacturing, planning and production
• The E-F cost point to a need for programs involving

product design and field of service

• Hidden Quality cost – shown as iceberg floating in water

Techniques for cost estimation
1. Collecting data from accounting section
2. Collecting data from existing reports
3. Estimation of cost where data are not available

Hidden Quality cost

shown as Ice Berg floating in water

/Rejects 1/3 can be identified and
assessed
/Reprocessing

Water level

2/3 difficult to
Identify and ass

Quality cost model

Optimum segment

Total quality cost curve

optimum

Zone of improvement Zone of indifference Zone of high appraisal costs
Projects
Failure costs ~ 50% Failure costs < 40%
Failure costs > 70% Prevention cost ~ 10% Prevention cost > 50%
Prevention cost < 10% If no profitable projects Study cost per defect detected,
Find breakthrough can be found, shift Verify validity of standards,
Projects : pursue emphasis to control Reduce inspection,
Try audit of decisions

100% defective Quality of conformance 100% good

• The techniques for analyzing quality costs are quiet varied
• The most common techniques used are
Trend and Pareto analysis
• The objective of these
techniques is to
determine opportunities for
quality improvement
1. Trend analysis: involves simply
comparing
present cost levels to
past levels- -
can be accomplished by

cost category,

sub category,

product,
measurement base,

index,

Trend analysis

Quality cost

Year
Trend analysis-(a) By cost analysis

Trend analysis

Trend analysis by cost category


2.Pareto analysis:- named after
Alfredo Pareto (1848-1923) (Europe) - an Italian economist
Dr. Joseph Juran coined:
vital few and useful many (trivial)
-is a graph that
ranks data classifications in
descending order from
left to right
Other techniques:

3.Bar charts
A comparative
bar chart can be used to compare with the
bench marked cost for a similar item of a competing
organization
4. Pie charts can also be used

Pareto analysis – defective items

Vital few (85 %) Trivial many (15 %)

40 36%

35

30 27%

25
22%

20
Rough surface

Less polishing

Miss Shaping
Surface scars

Surface pits
Incomplete

Scratches
15

Others
Cracks

10

5 3% 1%
2% 2% 4% 3%

0

Pareto analysis

Grills Bumpers-R Bumpers-Fr Others

Objectives of Quality cost evaluation
1. To quantify the
size of the problem in a language that will have an
impact on top management
2. To identify the
area of major opportunities for cost reduction
3. To identify the
opportunities for
reducing customer dissatisfaction and
associated threat to
product salability
4. The assessment of quality cost will provide
information for
major areas for
potential improvement

Total Quality Management
• TQM is the art of
managing the
whole to achieve
excellence.

• It is defined as
“ a management philosophy of pursuing
continuous improvement in
each process
(marketing, finance, design, engineering, production,
customer service etc., ) through the
integrated efforts of
all individuals in the
organization with a focus of meeting
customer needs and
organizational objectives”


• It is a method by which management and
employees can become involved in the
continuous improvement of the
production of
goods and
service.

• It is a combination of quality and
management tools aimed at
increasing business and
reducing losses due to
useful practices

Integrated approach to TQM
• IA

Strategy Organization
Leadership Structure
Commitment
TQM
Managing
Suppliers Customers

People Systems

Attitudes ISO 9000
Behavior (Standards)
Involvement
Empowerment

Basic concepts of
1. A committed and
involved management to provide a long term top to bottom
organizational support
2. An unwavering focus on the customer, both
internally and externally
3. Effective involvement and
utilization of entire workforce
4. Continuous improvement of the
business and
production process (activities)
5. Treating
suppliers as partners
6. Establish performance measures for the
processes (activities)

Purpose of TQM

The purpose of TQM is to provide
quality product to the
customers which will in turn –
increase productivity-lower cost with a
higher quality product and lower price-
competitive position in the market place
This series of events will allow the
organization to achieve the
objectives of
profit and
growth with greater ease
In addition, the workforce will have
job security which will create a
satisfying place to
work

Basic concepts of TQM
1. Management commitment- the basic PDCA cycle-
developed by Shewart :
-Plan (drive, direct)
-Do (deploy, support, participate)
-Check (review)
-Act (recognize, communicate, revise)
2. Customer focus- Voice of customer-
“Do it right, the first time and every time”
to ensure customer satisfaction
-Supplier partnership
-Service relationship with internal as well as external customers
-Non compromise in quality
-Customer driven standards
-Customer retention
3. Employee (involvement) Empowerment
-Training and motivation
-Suggestion scheme
-Measurement, recognition and reward
-Teamwork- excellence teams
-Union involvement


4. Continuous process improvement
-Attain, maintain and improve standards
-PDSA cycle (Plan-Do-Study-Act)-modified by Deming
-Improvement strategies
-Problem-solving methods
-cross-functional process management
-Re-engineering
-Six sigma concept
5. Supplier partnership
-Customer / Supplier relations
-Supplier selection (restriction)
-Supplier rating
-Supplier certification
-Partnering relationship


6. Performance measures for the processes
-Reveal trends (graphs, control charts, process capability)
-Comparison of goals with performance
-Identification of processes to be improved
-Provide information-make informal decisions
-Adopt strategy
-Quality costs- measurement , analysis, and action to reduce
7. Fact based decision making
-SPC- Statistical Process Control
-DOE- Design Of Experiments
-FMEA- Failure Mode Effect Analysis
-The 7 statistical tools
-TOPS- Team Oriented Problem Solving
TOPS

Historical review
Quality era
Inspection SQC Quality assurance Strategic Quality
Characteristics
1800s 1930s 1950s Management 1980+
1.Primary
Detection Control Co-ordination Management
concern
To be A competitive
2.View of
A problem Solved pro active attack Opportunity
Quality
Product Uniform Designer’s role The market and
3.Emphasis
Uniformity Production Consumer needs
With less
Inspection Programs and
Gauging, Statistical systems Strategic planning
4.Methods
Measurement Quality Tools Goal setting

Inspection Manufacturing Everyone (Team)
5. Who is
Department & All departments in the organization
Responsible?
Engg. Depts

6. Operation
Inspects Controls Builds in quality Manages in quality
& approach
quality quality

History of quality
Sta Periods/ Terms Year Milestones/ events
ge
Started from Stone age Used strong, sharp stones comfortable size & shape
A Before industrial 1850s Cottage industry approach
revolution
B After industrial revolution 1870+ Skilled tradesman, standards, inspection
C After world war I 1919+ Statistical Quality Control
1924 W.A. Shewhart-developed a statistical chart (Bell Telephone lab)
H.F. Dodge and H.G. Roming-developed the area of acceptance
sampling as a substitute for 100% inspection
1943 Dr. Kaoru Ishikawa-developed fish bone diagram (C & E )

D After world war II 1945+ Reliability, maintainability
1946 American Society for Quality Control was formed (now ASQ)
1950 W. Edwards Deming (American)- SQC, reliability, dependability,
predictability& consistency of product and failure
Deming prize by Union of Japanese Scientists and Engineers
1951 Dr. Joseph Juran-authored Quality Control Hand book-defined
“fitness for use”
He developed TQM philosophy around his quality trilogy- quality
1954
planning, control and improvement
Dr. Genichi Taguchi-got Deming prize-Product design-Robust design
1960 of parameters and tolerances

E Quality 1960+ Quality motivation-1960-first Quality circles were formed for
Japanese workers
1962 Zero defect
1964 Dr. Kaoru Ishikawa-published book on “Quality management”

History of quality
Stage Periods/ Terms Year Milestones/ events

F Quality Systems 1979 Integrated quality program
Philip B. Crosby –authored book “Quality is free”
1980s Statistical Process Control-Automotive Industries
1983 Total Quality Control, TQM, Strategic planning
1984 Philip B. Crosby- authored Quality without Tears

G Quality Standards
Quality systems 1987 ISO 9000 –First release
Environmental
management 1996 ISO 14000
Systems

The status or priority for Quality, Cost and Delivery is a cycle as follows

Status/ 1960s 1980s 1990s 2000s
Priority
1 Cost Delivery Quality Cost
2 Delivery Quality Cost Delivery
3 Quality Cost Delivery Quality

QCD may look same in 1960s and 2000s. But now
in 2000s the Cost reduction is the focus after ensuring Quality and Delivery.

Principles of Total Quality Management
• Total Quality Management has 10 basic principles.
• They explain how it is implemented and the "rules" by which
it operates.
These are:
1. Agree Customer Requirements (more than
specifications)
2. Understand and Improve Customer Supplier chains
3. Do the Right Things
4. Do things Right First Time
5. Measure for success
6. Continuous Improvement is the goal
7. Management must lead
8. Training is essential
9. Communicate more effectively
10. Recognize successful involvement

The eight key elements Of TQM
• Total Quality Management is a management approach
-originated in the 1950's
-has steadily become more popular since the early 1980's.
• Total Quality is a description of the
- culture, attitude and organization of a company
- 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.
• To be successful implementing TQM, an
organization must concentrate on the eight key elements:
1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Communication
8. Recognition

TQM- eight key elements-four groups
• TQM has been coined to describe
a philosophy that makes
quality the driving force behind
leadership, design, planning, and improvement initiatives.

• For this, TQM requires the help of those eight key elements.

• These elements can be divided into
four groups according to their function.
They are:

I. Foundation - Ethics, Integrity and Trust.

II. Building Bricks - Training, Teamwork & Leadership.

III. Binding Mortar - Communication.

IV. Roof - Recognition.

TQM- key elements

Roof
Binding mortar

Building bricks

Foundation

Trust

I. Foundation - Ethics, Integrity and Trust
TQM is built on a foundation of
ethics, integrity and trust.
- It fosters openness, fairness and sincerity and allows
involvement by everyone.
- This is the key to unlocking the ultimate potential of TQM.
- These three elements move together, however,
each element offers something
different to the TQM concept.

1. Ethics - is the discipline concerned with
good and bad in any situation.
- It is a two-faceted subject represented by
organizational and individual ethics.

- Organizational ethics establish a
business code of ethics that outlines guidelines that all
employees are to adhere to in the
performance of their work.
- Individual ethics include
personal rights or
wrongs.

2. Integrity - implies
honesty, morals, values, fairness and
adherence to the facts and sincerity.
- The characteristic is what
customers (internal or external)
expect and deserve to receive.
People see the opposite of integrity as duplicity.
TQM will not work in an atmosphere of duplicity.

3. Trust - is a by-product of
integrity and ethical conduct.
- without trust, the framework of TQM cannot be built.

- fosters full participation of all members.

- allows empowerment that encourages
- pride ownership and it encourages
commitment.

- allows
decision making at
appropriate levels in the
organization,
- fosters individual risk-taking for
continuous improvement and helps to ensure that
measurements focus on
improvement of process and are
not used to contend
people.

- is essential to ensure
customer satisfaction.

- So,
trust builds the
cooperative environment essential for
TQM.

II. Building Bricks - Training, Teamwork &
Leadership
Basing on the strong foundation of
trust, ethics and integrity,
bricks are placed to reach the
roof of
recognition. It includes:
4. Training – is very important for
employees to be
highly productive.
- Supervisors are solely
responsible for implementing TQM within their departments,
and teaching their employees the philosophies of TQM.
- Training that employees require are
interpersonal skills, the ability to function within teams,
problem solving, decision making, job management
performance analysis and improvement, business
economics and technical skills.
- During the creation and formation of TQM,
employees are trained so that they can become
effective employees for the
company.

Leadership
5. Teamwork - is also a
key element of TQM to become
successful in
business
With the use of teams, the business will
receive quicker and
better solutions to
problems.
- provide more permanent improvements in
processes and operations.
In teams, people feel
more comfortable bringing up problems that may occur, and can
get help from other workers to
find a solution and
put into place.

There are Leadership
mainly three types of
teams that
TQM organizations adopt:
A. Quality Improvement Teams or Excellence Teams (QITS)
These are temporary teams with the purpose of dealing with
specific problems that
often re-occur.
These teams are set up for
period of three to twelve months
B. Problem Solving Teams (PSTs)
These are temporary teams to solve
certain problems and also to
identify and
overcome causes of
problems.
They generally last from
one week to three months.

Leadership
C. Natural Work Teams (NWTs)
These teams consist of
small groups of
skilled workers who share
tasks and
responsibilities.
These teams
use concepts such as
employee involvement teams,
self-managing teams and
quality circles.
These teams
generally work for
one to two hours a week.

Leadership
6. Leadership - It is possibly the
most important element in
TQM. It appears everywhere in
organization.
Leadership in
TQM requires the
manager to
provide an
inspiring vision, make
strategic directions that are understood by
all and to instill
values that guide
subordinates.
For TQM to be successful in the business, the
supervisor must be
committed in leading his
employees.

Leadership
A supervisor must understand TQM ,
believe in it and then
demonstrate their belief and
commitment through their daily practices of TQM .
The supervisor makes sure that
strategies, philosophies, values and goals are
transmitted down through out the
organization to
provide focus, clarity and direction.
A key point is that TQM has to be
introduced and led by
top management.
Commitment and
personal involvement is required from
top management in creating and deploying
-clear quality values and
goals consistent with the
objectives of the company and in creating and deploying
well defined systems, methods and
performance measures for achieving those goals.

III. Binding Mortar - Communication
7. Communication – It
binds everything together. Starting from
foundation to roof of the TQM house, everything is bound by
strong mortar of
communication.
It acts as a
vital link between
all elements of TQM
Communication means a
common understanding of ideas between the
sender and the receiver.
The success of TQM demands
communication with and among all the
organization members,
suppliers and
customers.
Supervisors must
keep open airways where employees can
send and receive information about the
TQM process.

Communication coupled with the sharing of correct information is
vital.
For communication to be credible the message must be clear and
receiver must interpret in the way the
sender intended.
There are different ways of communication such as:
A. Downward communication
B. Upward communication
C. Sideways communication

A. Downward communication –
This is the dominant form of
communication in an
organization.
Presentations and discussions - basically do it. By this the
supervisors are able to make the employees
clear about
TQM .

B. Upward communication –
By this the lower level of employees are able to provide
suggestions to
upper management of the affects of
TQM .
As employees provide
insight and constructive criticism,
supervisors must listen
effectively to correct the situation that comes about through the
use of TQM .
This forms a level of trust between supervisors and employees.
This is also similar to empowering communication, where
supervisors keep open ears and listen to others.

C. Sideways communication –
This type of communication is important because it
breaks down barriers between departments.
It also allows dealing with
customers and suppliers in a more professional manner.

IV. Roof –Recognition
8. Recognition –
Recognition is the
last and final element in the entire system.
It should be provided for both
suggestions and achievements for
teams as well as individuals.
Employees strive to receive
recognition for
themselves and their
teams.
Detecting and
recognizing contributors is the
most important job of a
supervisor.
As people are
recognized, there can be
huge changes in
self-esteem, productivity, quality and the
amount of
effort exhorted to the
task at hand.

IV. Roof –Recognition
Recognition comes in its
best form when it is
immediately following an action that
an employee has performed.
Recognition comes in different ways, places and time viz.,

· Ways - It can be by way of personal letter from
top management.
Also by award banquets, plaques, trophies etc.

· Places - Good performers can be
recognized in front of
departments, on
performance boards and also in front of
top management.
· Time - Recognition can given at
any time like in
staff meeting,
annual award banquets, etc.

Conclusion
We can conclude that these eight elements are
key in ensuring the
success of TQM in an organization and that the
supervisor is a huge part
in developing these elements in the
work place.
Without these elements,
the business entities
cannot be successful TQM implementers.
It is very clear from the above discussion that
TQM without involving
integrity, ethics and trust would be a
great remiss, in fact it
would be incomplete.
Training is the
key by which the
organization creates a
TQM environment.

Conclusion
Leadership and teamwork go hand in hand.
Lack of communication between departments, supervisors and
employees create a burden on the whole TQM process.

Last but not the least,
recognition should be given to
people who contributed to the
overall completed task.
Hence,
• lead by example,
• train employees to provide a quality product,
• create an environment where there is
no fear to share knowledge, &
• give credit where
credit is due- is the motto of a
successful
TQM organization.

Strategy vision values
Leadership skills
• Leadership qualities and leadership skills can be developed with leadership
training.
• For the model built up for considering the impact of leadership qualities and
leadership skills, see the graphic leadership qualities.

Leadership (Management commitment)
Good leaders are made, not born
With the desire and willpower,
one can become an effective leader
Good leaders develop through
a never ending process of
self study,
education,
training and
experience
Good leaders are
continually working and studying to improve their
leadership skills
They are NOT resting on their laurels
Definitions
Average people : Just do things
Managers : Do things right
Leaders : Do right things
A leader is more of a “thinker than a doer”

A leader strengthens and inspires the
followers to accomplish shared goals.
Leaders
shape,
promote,
protect and
exemplify the
organization’s values.
Leadership is
We, not me;
mission, not my show;
vision , not division; and
community, not domicile
Leaders should serve as
role models through their
ethical behaviour and the
personal involvement in
planning, communication,
training and development of future leaders,
review of organizational performance and
employee recognition.

ie., Leadership is a
process by which a person influences others to accomplish an
objective and directs the organization in a way that makes it
more cohesive and coherent.
Leaders carry out this
process by applying their leadership attributes such as
beliefs, values, ethics, character, knowledge and skills.

The position as a manager, supervisor, leader etc., will give the
authority to accomplish certain tasks and
objectives in the organization.
This power does not make as a leader, it simply the boss.
Leadership differs in that it makes the
followers want to achieve
high goals, rather than simply bossing people around.
Leader Vs Manager
“Leader create energy by inspiring ; Managers control and direct
energy:
“Leaders are essential ; Managers are necessary”
“Leaders do the right things ; Managers do things right”

Leadership concepts
In order to become successful,
leadership requires an understanding of human nature- the
basic needs,
wants and
abilities of people
To be effective, a leader understands that:
1. People, need security and independence at the same time.
2. People are sensitive to external rewards and
punishments and yet are also
strongly self-motivated
3. People like to hear a kind word of praise,
catch people doing something right, so you can
pat them on the back.
4. People can process only a few facts at a time; thus, a
leader needs to keep things simple.
5. People trust their gut reaction more than statistical data.
6. People distrust a
leader’s rhetoric (the art of oratory) if the words are
inconsistent with the
leader’s actions.

The seven habits of highly effective people
Principles

Habit 1: Be proactive
Being proactive means taking responsibility for your life
Proactive behaviour is a product of
conscious choice based on values
Proactive people let
carefully thought-about, selected and
internalized values tell them how to respond

Reactive behaviour is based on feelings
Reactive people let
circumstances, conditions or their
environment tell them how to respond
The language we use is a real indicator of our behaviour

Reactive Proactive
There’s nothing I can do Let’s look at our alternatives
She makes me so mad I control my feelings
I can’t I choose
I must I prefer
Things are getting worse What initiative can we use?

Habit 1: Be proactive

The 7 habits of Highly Effective People: Principles- Stephen R. Covey

Habit 2: Begin with the end in mind
You begin with a plan that will produce the appropriate end
Thus leadership is the first creation and
management the second
Leadership is
doing the right things, & management is doing things right
Develop a personal philosophy or creed.
Start by considering the examples given below:
1. Never compromise with honesty
2. Remember the people involved
3. Maintain a positive attitude
4. Exercise daily
5. Keep a sense of humour
6. Do not fear mistakes
7. Facilitate the success of subordinates
8. Seek devine help
9. Read a leadership book monthly

Habit 3: Put first things first

Habit 3: Put first things first
• Habit 1 says , “you’re the creator, you are in charge”
• Habit 2 is the first creation and is based on imagination
-leadership based on values
• Habit 3 is practicing self management and requires
habits 1 & 2 as prerequisites
It is the day by day, moment by moment management of your time
• Urgent : means it requires immediate attention
• Important: has to do with results that contribute to
your mission, goals, and values
• Effective, proactive people- spend most of their time in Q 2
thereby reducing time spent in Q 1
Write down your key roles for the week
List your objectives for each role using Q 2 activities – these
objectives should be tied to your personal goals or
philosophy developed in habit 2
Schedule time to complete the objectives
Adapt the weekly schedule to your daily activities

Habit 4: Think Win-Win
Win-Win is a
frame of mind and heart that constantly seeks
mutual benefit in
all human interactions
Win-Win embraces
five independent dimensions of life
1. Character: involves the trains of integrity; maturity; and
abundance mentality
2. Relationships: means that two parties trust each other and
are deeply committed to Win-Win
3. Agreements: require the five elements of desired results,
guidelines, resources, accountability and consequences
4. Systems
5. Processes: In order to obtain Win-Win, four step process is
needed
- see the problem from the other view point
- identify the key issues and concerns
- determine acceptable results
- seek possible new options to achieve those
results

Habit 5: Seek first to understand ,
then to be understood
Empathic listening is the key to effective communication
It focuses on learning how the other person sees the world,
how they feel
The essence is not that you agree with someone,
It is that you fully, deeply understand, that person,
emotionally as well as intelluctually
Next to physical survival is psychological survival
- to be understood
- to be affirmed
- to be validated
- to be appreciated
Second part: to be understood
Greek words: ethos - your personal credibility or
character
pathos- empathy you have with the other
person’s communication
logos - the logic or reasoning part of your
presentation

Habit 6: Snergy (unity)

• When there is
genuine understanding,
people reach solutions that are
better than
they could have achieved
acting alone

Habit 7: Sharpen the saw

Presenting and enhancing the
greatest asset you have, which is you
It’s renewing the four dimensions of your nature
1. Physical : follow good nutrition, rest, relaxation and
regular exercise
2. Spiritual : renewal comes from

prayer, meditation, and spiritual reading
3. Mental : continue to develop your intellect through
reading, seminars and writing
4. Social/ Emotional : does not require time, it does
require exercise

Role of senior management
Establish quality policies
Develop a leadership system
• In a TQM organization, all the employees are responsible for
quality especially
senior management and the
CEO (Chief Executive Officer)
• They must actively participate in the
implementation process of
TQM
• They must also actively participate in the
quality council and
other activities

Role of senior management

Roles:
1. MBWA-Management By Wandering Around
2. Strategy of decision making and problem solving
3. Strong information base
4. Provide the resources to train the employees
5. Award and recognition
6. Spend more time on quality
7. Listening internal and external customers and suppliers
8. Effective communication
9. Identify and encourage potential employees
10. Responsibility on quality
11. Role model
12. Minimize the resistance to changes
13. The S.Ms should periodically check whether the QI
programs are conducted as per the plan

Quality council
In order to build quality into the
culture, a
Quality council is established to provide
overall directions and
guidance
It is the driver for the TQM engine.

It consists of the
1. CEO - Chief Executive Officer
2. senior managers of the
functional areas such as-
design, marketing, finance, production, quality
3. a coordinator or
consultant and
4. union representative

A bright young person with
executive potential should be selected as the
coordinator and he will
report to the
CEO

Quality council
The coordinator builds the two way trust
-propose team needs to the council
-share council expectations with the team
-& brief the council on team progress
-assists the team leaders
-ensure empowerment
-discusses on the problems-to know their responsibilities

In small organizations where
managers may be responsible for more than one functional area,

the number of members will be
smaller
Therefore
a consultant may be employed rather than a
coordinator

Quality structure
• QS
•Chair person : CEO
Corporate •Members : Senior Managers who head
Quality specific functions
council
Chair person : Senior Manager of main
function of concerned
division who is member
Quality Quality Quality of the Corporative quality
Sub-council Sub-council Sub-council council

Division-1 Division-2 Division-3

Process Improvement Teams
&
Other Project Improvement Teams

Typical quality structure involving different levels of cross functional
participation by managers

Duties of Quality council
1. Develop the
core values, vision, mission & quality policy statements
2. Develop the
strategic long term plan with goals and
annual Q.I.P with
objectives
3. Create the
total education and training plan
4. Determine and
continually monitor the cost of poor quality
5. Determine the
performance measures for the organization,
approve those for functional areas and
monitor them
6. Continuously improve the
process of customer satisfaction
7. Establish
work group teams at
different levels and monitor their progress
8. Establish or revise the
recognition and reward system to account for the
new way of doing business

Duties of Quality council
Within 3 to 5 years, the activities of the
quality council will become so grained in the
culture of organization
When this state is achieved, a
separate QC is
no longer needed
Quality becomes the
first item on the
executive meeting
ie., The executive meeting becomes part of the QC
Quality Circles: These are at
grass root level
Apart from improvement of
product or service quality they concentrate on
mutual development
This will make them error free and bring them
closer creating a
healthier working environment

Quality statements
• Vision
Statements
• Mission
They are part of the Strategic planning process
• Quality policy
Once developed, they are only
occasionally reviewed and
updated
Small organizations may use only
quality policy statement
This can be included in the employee badge
They should be
developed using the
inputs from all the
employees
Vision statement: is a
short declaration of what an organization
aspires to be tomorrow
-It is the
ideal state that might never be reached, but
which you continually strive to achieve

Quality statements

Mission statement: -answers the following questions:
1. Who we are?
2. Who are the customers?
3. What we do?
4. How we do it?
- is usually one paragraph or less in length
-is easy to understand
-describes the function of organization
-provides a clear statement of purpose of
employees,
customers &
suppliers

Quality statements
Vision statement: Examples:
“The happiest place on earth”

“We will be the preferred provider of safe, reliable and cost effective products
and services that satisfy the electric-related needs of all customer segments.”

“To continuously enrich knowledge base of practitioners in mobility Industry and institutions
in the service of the humanity”

“To be a world-class organization, leading technological and socio-economic development of
the country by enhancing the global competitiveness of technical manpower and by ensuring
High quality technical education to all sections of the society”
Mission statement: Examples:
“Ford motor company is a worldwide leader in automatic and automotive-related products and
services as well as the newer industries such as aerospace, communications, and financial
services our mission is to improve continually our products and services to meet our customer’s
needs, allowing to prosper as a business and to provide a reasonable return to our share holders,
the owners of our business.”

“Facilitating world-class technical education through high quality institutions, academic excellence
and innovative research and developmental programmes, Technology forecasting and global
manpower planning, Promoting industry-institute interaction Inculcating entrepreneurship
•Making Indian technical education globally acceptable
•Providing affordable education to all
•To be a forward looking organization that has an efficient, flexible, and empowered manpower,
sensitive to stake holder’s expectations.”

Quality statements
Quality Policy statement: The quality policy is a
guide for everyone in the
organization as to-
how they should provide products and service to the
customers
- should be written by the CEO with feedback from the workforce
- should be approved by the Quality council
Common characteristics are:
1. Quality is first among equals
2. Meet the needs of internal and external customers
3. Equal or exceed the competition
4. Continually improve the quality
5. Include business and production practices
6. Utilize the entire work force
A quality policy is a requirement of ISO / QS 9000.

Quality statements
Quality policy statement: Examples
“Xerox is a quality company. Quality is the basic principles
of Xerox. Quality means providing our external and internal
customers with innovative products and services that fully
satisfy their requirements. Quality is the job of every employee.”
– Xerox corporation.

“We are committed to enhance customer satisfaction by
providing products and services to clearly established
requirements through customer focus and continual
improvement in all its process.”
-Chennai based leading manufacturer of engine bearings,
bushings and thrust washers.

Strategic planning
Strategic quality plans & Business plans are separable
If we ask quality strategy, quality plan
- they will show- business strategy, business plans
In fact, the term quality is not used too much.
The time horizon for strategic planning : is for 3 to 10 years
short term planning : is for 1 year or less
Strategy means a
direction,
Vision
guide or of
Present Strategic plan
course of action. future
Strategic planning is a
process by which
organizations develop
a vision,
mission,
objectives and goals for its
achievement.
-usually performed by the CEO and Executive Team.
-sets the long term direction of the organization

Seven steps to Strategic planning
!. Who are the customers?
Will the customer base change? 1. Customer needs
What they want?
How will the organization meet and exceed
expectations?
2. Customer positioning
2. Want to retain, reduce or expand.
Concentrate on the areas of
excellence.
3. Predict the future
3. Demographics, economic forecasts,
Technical assessment or projections

4. Current- future- identify the gap, 4. Gap analysis
analyze core values

5. By establishing goals and responsibilities
5. Closing the gap

6. Developed plan –should align with vision, 6. Alignment
Mission and core values

7. Implement-monitor 7. Implementation
-assess the progress and
take corrective action

8. Re-evaluation

SWOT analysis
S- Strength
Financial strength, market reputations, cost
leadership, talented workforce etc.,
W- Weakness
lack of guidance, weak management team, poorly
defined policies and procedures,
poor image in the market, weak financial position etc.,
O- Opportunity
potential avenues – for expanding market for the
product and service, fall of competitors, development of
new product
T- Threat
competitions, government regulations, poor supplier
partnership and changing behaviour of customers

The vision,
mission and
guiding principles serve as the foundation for
strategic planning

Deming’s Philosophy
(14 points)

Dr.W.Edwards Deming was a supreme
practitioner, whose teaching pointed
the Japanese towards the star of
quality management on which
their post-war breakthrough was based.

He taught SPC concepts and importance
of quality to leading CEOs (21) of Japanese
Industry in a seminar in 1950.

He summarised his ideas in these
Dr. W. Edwards Deming far-famed Fourteen Points.

The rest were developed and the original
ones modified over a period of time.

1. * “Create constancy of purpose towards improvement”.
-that means short-term out, long-term in.
2.* “Adopt the new philosophy”
-from top to bottom
3. * “Cease dependence on inspection”.
-you don’t inspect quality into products and services –

-you design it in and check only by statistical quality
control.
4. * “Move towards a single supplier for any one item.”
-playing many suppliers off against each other is a
mug’s game.
5. * “Improve constantly and forever”.
- however good you are, you can always do better.
6. * “Institute training on the job”
- the best place to learn.
7. * “Institute leadership”
- going well beyond supervision and its quotas and
targets.
8. * “Drive out fear”,
-which makes for bad work - and bad management.
9. * “Break down barriers between departments”:

10. * “Eliminate slogans”.
-exhortation is another counter-productive substitute
for real management.
11. * “Eliminate management by objectives”.
-relying on production and other targets is also
counter- productive.
12. * “Remove barriers to pride of workmanship”.
-the key to superior quality lies here –
and in the Fourteen Points,
which all encourage performance.
13. * “Institute education and self-improvement”
- which should go without saying.
14. * “The transformation is everyone’s job”

- and Deming really meant everyone, from and including the
top.
Simple, straightforward, not easy, but absolutely worth
the effort.
W.Edwards Deming’s 14 Points revolutionised an
economy.
What they did for Japan they can also do for you.

Barriers to TQM implementation
TQM extends beyond the scope of
quality control,
quality assurance,
quality management and
total quality.
Total quality embraces the aspect of
continuous improvement in all the
activities of an organization.
Organizations that have accepted and implemented this
philosophy are
far and few.
An organization complying with the
above statements have reached that
level of quality by applying
total quality management as part of their daily routines
without it being written into
policy or procedures.
It is a way of life for them.

Many companies and
organizations are striving to achieve this level.
There appears to be much confusion as to
what total quality management stands for.
Some people are trying to define TQM by placing items such as
change, corporate culture, into boxes.
This means that they see each of these as separate entities.
It must be understood that TQM should be seen as
a single integrated approach to the four areas of
management's organizational being.
Thus TQM must be seen in an organization as the
organizational consistency and
harmony which are
vital to corporate strategy and its
impact on the external market.
TQM should be seen as the
amalgamation of
teams, methods, internal markets and leadership.
You must adopt an holistic approach to the concept of TQM .


Common obstacles/barriers are:
1. Lack of top management commitment and
vision
2. Lack of motivation and involvement of
employees
(company culture and management style)
3. Flavour of month attitude
4. Department based thinking and actions
5. Poor appreciation of the concepts and
principles of TQM
6. Lack of structures for TQM activities
7. Deciding how to start
8. Gaining the involvement of non-manufacturing
departments
9. Ineffective leadership

Our TQM

• Discipline is most important always.
• You should spent your time judiciously.
• You should be attentive in the class.
- no discussions among yourselves.
• You should bring separate notebook for the subject.
• You should write/note down maximum points possible that
could be readable latter.
• Note books should be shown to me whenever I ask.
• You should write all tests, assignments for getting required
internal marks.
• Internal marks will be awarded based on your performance
only.
• You should not have an idea that the subject is theoretical
one and you could get pass marks easily.
• Every subject in the semester is important, pay attention to
all subjects equally.
• Wish you all the best.

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