Definition of tqm


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Definition of tqm

  1. 1. Origins of TQMTotal quality management has evolved from the quality assurance methods that were first developedaround the time of the First World War. The war effort led to large scale manufacturing efforts that oftenproduced poor quality. To help correct this, quality inspectors were introduced on the production line toensure that the level of failures due to quality was minimized.In 1924, Walter Shewhart developed a statistical chart for the control of product variables. Thischart is considered to be the beginning of statistical quality control.After the First World War, quality inspection became more commonplace in manufacturing environmentsand this led to the introduction of Statistical Quality Control (SQC), a theory developed by Dr. W.Edwards Deming. This quality method provided a statistical method of quality based on sampling. Whereit was not possible to inspect every item, a sample was tested for quality. The theory of SQC was basedon the notion that a variation in the production process leads to variation in the end product. If thevariation in the process could be removed this would lead to a higher level of quality in the end product.After World War Two, the industrial manufacturers in Japan produced poor quality items. In a response tothis, the Japanese Union of Scientists and Engineers invited Dr. Deming to train engineers in qualityprocesses. By the 1950‟s quality control was an integral part of Japanese manufacturing and was adoptedby all levels of workers within an organization.By the 1970‟s the notion of total quality was being discussed. This was seen as company-wide qualitycontrol that involves all employees from top management to the workers, in quality control. In the nextdecade more non-Japanese companies were introducing quality management procedures that based on theresults seen in Japan. The new wave of quality control became known as Total Quality Management,which was used to describe the many quality-focused strategies and techniques that became the center offocus for the quality movement.By the last decade of the 20th century, TQM was considered a fad by many business leaders. Butwhile the use of the term TQM has faded somewhat, particularly in the United States, itspractices continue.In the few years since the turn of the century, the quality movement seems to have maturedbeyond Total Quality. New quality systems have evolved from the foundations of Deming, Juranand the early Japanese practitioners of quality, and quality has moved beyond manufacturing intoservice, healthcare, education and government sectors.
  2. 2. Topic No: 01Definition of TQMTotal Quality Management (TQM) is a system approach to quality management. It is theimprovement of quality of not only the product, but also the total quality management of all theprocesses and functions in the organization such as the manufacturing, distribution,administration, communications, marketing, planning, training, procurement and so on. Totalquality management involves the participation of all the employees of the organization in thispurpose.TQM consists of three words. Analyzing the three words we have,Total: Made up of the wholeIn all functional areasAt all levels.Quality: Degree of excellence a product or service providesTo meet the customer requirements.Management: Act ,art ,or manner of handling, controlling, directing etc,Effective utilization of resources,To maintain existing level.To improve quality,Executive commitment.Therefore, TQM is the art of managing the whole to achieve excellence. The Golden rule is asimple but effective way to explain it: Do unto others as you would have them do unto you.TQMis defined as both a philosophy & a set of guiding principles that represent the foundation of acontinuously improving organization.
  3. 3. Numerous definitions have been given on Total Quality Management (TQM) by quality gurus,practitioners and academician.According to Besterfield (1995) defined, “TQM as both a philosophy and a set of guidingprinciples that represents the foundation of a continuously improving organization. It integratesfundamental management techniques, existing improvement efforts and technical tools under adisciplined approach.”Using a three-word definition, Wilkinson and Wither (1990) defines TQM as;Total : Every person is involved (its customers and suppliers).Quality : Customer requirements are met exactly.Management: Senior executives are fully committed.TQM stands for an overall integrated approach to all aspects of quality, all domains of system,including, organization, people, resources, time, hardware/software and even managementcommitments. TQM is a management approach of organization, centered on quality, based onthe participation of all its members and aiming at long term of success through customersatisfaction and benefits to the members of organization and society (ISO 8402/IS 13999).TQM sustains on four pillars: System, Top management commitment, Team work and SPC(statistical process control) tools. The links to these pillars are culture, communication,commitment and customer focus. Now show by graphically,Fig: Model on Total Quality Management (TQM)
  4. 4. TQM views an organization as a collection of processes. It maintains that organizations muststrive to continuously improve these processes by incorporating the knowledge and experiencesof workers. The simple objective of TQM is "Do the right things, right the first time, everytime".There are a number of evolutionary strands, with different sectors creating their own versionsfrom the common ancestor. TQM is the foundation for activities, which include:Commitment by senior management and all employeesMeeting customer requirementsReducing development cycle timesJust In Time ManufacturingQuality CirclesEmployee involvement and empowermentRecognition and celebrationChallenging quantified goals and benchmarking.In addition to, all above these discussions, Total Quality Management (TQM) is the applicationof quantitative methods & human resources to improve all the processes within an organization& exceed customer needs now & in the future.TQM integrates fundamental managementtechniques, existing improvement efforts & technical tools under a disciplined approach.Topic: 02Basic Approach: The six basic concepts of TQM:Total Quality Management is a management approach that originated in the 1950s and hassteadily become more popular since the early 1980s. Total Quality Management is a descriptionof the culture, attitude and organization of a company that strives to provide customers withproducts and services that satisfy their needs. The culture requires quality in all aspects of thecompanys operations, with processes being done right the first time and defects and wasteeradicated from operations.TQM mainly based on following six concepts.
  5. 5. In order to achieve excellence, six basic concepts of TQM are as follows:1. A committed & involved management to provide long-term top-to-bottom organizationalsupport.2. Focus customer requirements and product/service expectations, both internally & externally.3. Effective involvement & utilization of the entire work force.4. Continuous improvement of the business & production process.5. Treat suppliers as our partners6. Establish performance measures for the process.Now these six basic concepts are describe in detail to understand properly about TQM:1. Management leadership & commitment:Management must participate in the quality program. A quality council must be established todevelop a clear vision, set long term goal & direct the program. This requires management toactively participate in quality transformation. They have to outline the quality goals, qualityTQMPerformancemeasureLeadership &CommitmentCustomerfocusEmployeeinvolvementContinuousimprovementSupplierpartnership
  6. 6. policies and quality plans so that employees are constantly reminded that the customer, not theproduct, is the top priority (Besterfield, 1995).Quality goals give all employees clear indication of what is going to be achieved concerningquality. Quality policies when described in detail will provide guideline on how employees are toachieve that goal. Management commitment; requires developing management systems thatassure and ensure that quality is built into each and every process in organization. Thus,meaningful plans, such as performing an annual quality audit help top management acquire thenecessary insight into problems the company faces in realizing the quality plan.In short, management commitment and leadership represent a paradigm shift from the traditionalmanagement role and responsibilities towards a new role, supporting and enhancing the totalquality culture and environment.Characteristics of Successful Leaders1. Give attention to external and internal customers.2. Empower, not control subordinates. Provide resources, training, and work environment tohelp them do their jobs.3. Emphasize improvement rather than maintenance.4. Emphasize prevention.5. Encourage collaboration rather than competition.6. Train and coach, not direct and supervise.7. Learn from problems – opportunity for improvement.8. Continually try to improve communications.9. Continually demonstrate commitment to quality.10. Choose suppliers on the basis of quality, not price.11. Establish organisational systems that support quality efforts.12. Encourage & recognize team effort.These characteristics demonstrate successful quality leaders.2. Customer satisfaction:
  7. 7. The key to an effective TQM program is its focus on the customer. An excellent place to start isby satisfying internal customer. We must listen to the” voice of the customers” & emphasizedesign quality & defect prevention. Do it right the first time & every time, for customersatisfaction is the most important consideration.An organization must give its customers a quality product or service that meets their needs, atreasonable price, on-time delivery, and outstanding service. Listening to the „customers‟ andresponding quickly to their changing needs, expectations and perceptions is one of the TQMbasic approaches. By keeping close to their customer, companies can establish customer needs;gather information on customer trend and benchmarking them with their competitors. This canbe a winning strategy towards winning new customers and retaining customer loyalty.Increasingly, manufacturing and service organizations are using customer satisfaction as themeasure of quality. This fact is reflected in the Malcolm Baldridge National Quality Award,wherein customer satisfaction accounts for 30% of the total points. Total Quality Management(TQM) implies an organizational obsession with meeting or exceeding customer expectations, sothat customers are delighted.Fig: Customer satisfaction organizational diagram.CustomerFront-line representativeFunctionaloperational areasSeniormanagerCEO
  8. 8. 3. Employee Involvement:TQM is an organization wide challenge that is everyone‟s responsibility. All personnel must betrained in TQM, statistical process control (SPC) & other appropriate quality improvement skillsso they can effectively participate on project teams.Employee involvement is a process for empowering members of an organization to makedecisions and to solve problems appropriate to their levels in the organization (Richardson,1997). Empowerment is equally effective in service industries, where most frequently customerperception of quality stands or falls based on the action of the employee in a – one-on onerelationship with the customer. This can be achieved by making the employee part of theorganization, which is essential to the success of the organization. Employees who believe theyare important will be motivated to ensure that their efforts are consistent and dependable uponthe contributions made.Deming‟s fourteen points for management are worth remembering. The basis of his philosophyis contained in the following principle:1. Institute training on the job.2. Break down barriers between departments to build teamwork.3. Drive out fear in the workplace.4. Eliminate quotas on the shop floor.5. Create conditions that allow employees to have pride in their workmanship and abolishannual reviews and merit ratings and6. Institute a program of education and self-improvement.Benefits of Employee Involvement:Involving employees, empowering them, & bringing them into the decision-making processprovide the opportunity for continuous process improvement.Employee involvement improves quality & increases productivity because,1. Employees make better decisions using their expert knowledge of the process.2. Employees are more likely to implement & support decisions they had a part in making.3. Employees are better able to spot & pinpoint areas for improvement.4. Employees are better able to take immediate corrective action.5. Employee involvement reduces labor or management friction by encouraging moreeffective communication & cooperation.6. Employees are better able to accept change because they control the work environment.
  9. 9. All above these benefits of employee involvement make ensure in an organization by the TotalQuality Management (TQM).4. Continuous process Improvement:There must be a continual striving to improve all business & production process. Process refersto business & production activities of an organization. Business process such as purchasing,engineering, accounting, & marketing are areas where nonconformance can represent anopportunity for substantial improvement. Following figure shows a process model,Fig: Input & output process Model.INPUTMaterialMoneyInformationData etc.PROCESSPeopleEquipmentMethodProcedureEnvironmentMaterialOUTPUTInformationDataProductService, etc.OUTCOMESFEEDBACKCONDITIONS
  10. 10. Quality improvement projects such as on-time delivery, order entry efficiency, billing error rate,customer satisfaction, cycle time, scrap reduction & supplier management are good places tobegin. Technical techniques such as, statistical process control (SPC), benchmarking, qualityfunction deployment, ISO 9000 & designed experiments are excellent for problem solving.The most frequently used guidelines for quality management systems are the ISO 9000international standards, which emphasize the establishment of a well- documented, standardizedquality system. The role of the ISO 9000 standards within the TQM circle of continuousimprovement is presented in the following figure.Continuous improvement is a circular process that links the diagnostic, planning, implementationand evaluation phases. Within this circular process, the ISO 9000 standards are commonlyapplied in the implementation phase.Continuous improvement of all systems and processes in an organization is essential for TQMsuccess. A continuous improvement system gears the organization toward attainment of thevision (Richardson, 1997). The improvement system must not only be continuously applied, butalso consistently, throughout the organization. This requires a disciplined continuousimprovement system based on trust, with everyone in the organization striving to improve thesystem (Crosby, 1979).5. Supplier partnership:Customers & suppliers have the same goal to satisfy the end user. On the average 40% of thesales dollar is purchased product or service, therefore the supplier quality must be outstanding.The better the supplier‟s quality, the better the supplier‟s long-term position because thecustomer will have better quality. Because both the customer & supplier have limited resources,
  11. 11. they must work together as partners to maximize their return on investment. Suppliers focusshould be on quality & life-cycle costs rather than price.Dr. Kaoru Ishikawa has suggested ten principles to ensure quality products & services &eliminate unsatisfactory conditions between the customer & the supplier:1. Customer and supplier are fully responsible for Quality control.2. Customer and supplier should respect each other‟s independence.3. Supplier is entitled to complete information from the customer.4. Non-adversarial contract between customer and supplier is needed for quality, quantity,price, delivery method & payments.5. Supplier should provide quality to meet customer‟s satisfaction.6. Product quality evaluation methods should be decided by the mutual consent of both theparties.7. Amicable settlement of disputes between customer and supplier should be established inthe contract.8. Continuous information exchange will improve the product or service quality.9. To maintain an amicable relationship, both the parties should do procurement,production, and inventory planning.10. Best interest of the end user should be considered while doing business transactions.There are some conditions for the selection and evaluation of suppliers:1. Supplier knows management policy of the organization.2. Stable management system of supplier, respected by others.3. Supplier has the capability of dealing with technological innovations.4. Supplier can supply material meeting quality specifications.5. Supplier has capability to meet the amount of production.6. Supplier can breach corporate secrets.The core concept of TQM consisted of supplier & customer relationship. Now show thisrelationship by diagrammatically:
  12. 12. The core of TQM is the customer-supplier interfaces, both externally and internally, and at eachinterface lay a number of processes. This core must be surrounded by commitment to quality,communication of the quality message, and recognition of the need to change the culture of theorganization to create total quality.6. Performance Measures:The sixth & final concept of Total Quality Management (TQM) is performance measures.Managing an organization without performance measures is like a captain of a ship navigatingwithout instrument. The ship would most likely end up traveling in circles, as would anorganization.Performance measures such as uptime, percent nonconforming, absenteeism & customersatisfaction should be determined for each functional area. These measures should be posted foreveryone to see. Quantitative data are necessary to measure the continuous quality improvementactivity.Performance measurement is primarily managing outcome, and one of its main purposes is toreduce or eliminate overall variation in the work product or process. The goal is to arrive atsound decisions about actions affecting the product or process and its output.
  13. 13. Performance measures are used to achieve one or more of the following seven objectives:1. Establish baseline measures & reveal trends.2. Determine which process needs to be improved.3. Indicate process gains & losses.4. Compare goals with actual performance.5. Provide information for individual & team evaluation.6. Provide information to make informed decisions.7. Determine the overall performance of the organization.There are many tools to determine or measure the performance of employees an organization orindustry. Now briefly describe the two major tools of performance measures:Balanced Scorecard:The balanced scorecard is a popular tool for performance measurement. It uses four perspectivesfrom which to manage organizational performance including customers, finances, internalprocesses, and innovation and learning.The scorecard is built on the premise that using only financial measures is not sufficient toachieve an organizations strategic objectives. The scorecard measures how an organizationreaches its financial goals. Simply stated, what gets measured gets done.Benchmarking:The term benchmarking was originally used by early land surveyors, who used the term toidentify a fixed point from which all other measurements are made.In the late 1970s however, it took a broader meaning. Applied to an organization,benchmarking is a process to determine who else does a particular activity the best andemulating what they do to improve performance. A more formal definition is "simply thesystematic process of searching for best practices, innovative ideas and highly effectiveoperating procedures that lead to superior performance."Performance measurement touches all aspects of the organization, including programs, productsand services for internal and external customers, teams, departments and cross-functional projectteams. It focuses all activities on overall business results, constantly measuring and givingfeedback about results in relation to strategic goals.
  14. 14. All above these descriptions we have to understand that, these six basic concepts is the baselinefor Total Quality Management (TQM) to implement successfully in every sector.TQM views an organization as a collection of processes. It maintains that organizations muststrive to continuously improve these processes by incorporating the knowledge and experiencesof workers. TQM is now becoming recognized as a generic management tool, just as applicablein service and public sector organizations. The purpose of TQM is to provide a quality product orservice to customers, which will in turn increase productivity & lower cost. All these activities ofTQM are done by the help of these six basic concepts.
  15. 15. Topic No: 03Key principles of TQMTotal Quality Management (TQM) is the management of initiatives and programmers that areaimed at achieving the delivery of quality products and services. Several studies have attemptedto identify the key principles of TQM. There are three key principle of total qualitymanagement.These principles are guidelines used by many companies for quality disciplinepurposes. They aid companies in achieving long-term quality performance.Keyprincipleof TQMCustomersatisfactionEmployeeinvolvementContinuousprocessimprovement
  16. 16. 1.Customer satisfaction:The first and major TQM principle is to satisfy the customer--the person who pays for theproduct or service. The ultimate goal of TQM is to please customers. Meeting or exceedingcustomer requirements means shifting emphasis from the short-term to the long-term, from theproduct to the customers-listening to them, adapting to their needs. TQM teaches that customersatisfaction is not only a measure of quality; it is a whole new approach to doing business.A major long-term benefit of Total Quality Management relates to customer satisfaction. TQMaims at improving quality, and identifies the best measure of quality as matching customerexpectations in terms of service, product, and experience.There are three Total Quality Management components that work toward achieving customersatisfaction:It requires that your business understand what customers typically expect in a field,industry, or product line,It ensures your business has the expertise and the resources to consistently deliver theexpected product or service, andIt emphasizes the need for your business to clearly communicate to the customers exactlywhat you will deliver to avoid misunderstandingsCustomer voiceFig: Point of customer involvementPoint of CustomerinvolvementUnique design ofFeaturesUniqueconfigurationoptionSuppliersStages of manufacturing processDesign Fabrication Assembly DeliveryCustomers
  17. 17. In reality, we have many other customers. This includes everyone on our team starting with eachother as fellow employees, our outside sales representatives and distributors, our suppliers,insurance broker, attorney, banker, and consultants. We are all responsible for providing eachother with first-time quality. We provide each other with drawings, materials, work definition,reports, information, communication, and so forth, so that we can, in turn provide each otherwith goods and services.There are two distinct types of customers i.e. external and internal.Internal customers are within the company-the colleagues working together for delivering aservice or product for the external customer. We will, however, remain restricted to the externalcustomers here.Fig: customer/supplier chainThe above picture shows how important a cog is internal customer in the grand design of things.Internal customer helps change an input to a product which will be used by the externalcustomer.An external customer may be an individual or an enterprise that hires or purchases theproduct(s) or service(s) from another person or business in exchange of money.Customer satisfaction has several dimensions, for example:•Fitness for use•Reliability – which governs the life aspect of quality•Value for money spend by customer•After – sales service and support to the customer•Good packaging•Customer right to correct information and training•Maintainability of the product/services•Variety in product/services•Speed of service (quick response time)•Civility of service at all levels•Good image of the company and customer confidence in the organization based on pastperformance and demandsInputs fromExternalcustomersInternal customersOutputs fromExternalcustomers
  18. 18. Finally Customer satisfaction is not an objective statistics but more of a feeling or attitude. If acustomer is happy with a product or a service it has hired or purchase they will pay their billspromptly, which greatly improves cash flow-the lifeblood of any organization. Customers thatare satisfied will increase in number, buy more, and buy more frequently.2.Employee involvement:One of the important principle of TQM is employee involvement. This is contrast toconventional quality assurance management practices, where management takes all decisionsand workers just follow them to accomplish their jobs. This top-down management style is slow,inflexible, and has little room for competition, especially where survival in today‟s time-starved,customer driven market requires rapid response times from quality control in manufacturing orother businesses for the ever-changing needs of the customer.Employee involvement is very important in any TQM initiative, as it is a system whereinemployees are encouraged to use their expertise and knowledge to suggest methods forimprovements in their work areas. These suggestions could relate to improvements in the job, theproduct, the work atmosphere or the company as a whole. Many companies have ventured into aparticipation-style of management by involving employees in the problem solving and decisionmaking processes.Some of the most successful companies are those that have achieved a close relationship betweenworkers and the managers. The policies in these companies fostered teamwork, participation,continuous learning and flexibility.Involving employees, empowering them, and bringing them into decision making processprovides the opportunity for continuous process improvement. The untapped ideas, innovations,and creative thoughts of employees can make the difference between success and failure.Competition is so fierce that it would be unwise not use every available tool.Employee involvement improves quality and increases productivity, because:Employees make betterEmployees make better decisions using their expert knowledge of the process.Employees are more likely to implement and support decisions they had a part in making.Employees are better able to spot and pinpoint areas of for improvement.Employees are better able to take immediate corrective actions.Employee involvement reduces labor/management friction by encouraging more effectivecommunication and cooperation.Employee involvement increases morale by creating feeling of belonging to the organization.Employees are better able to accept change because they control the work environment.Employees have an increased commitment to unit goals because they are involved.
  19. 19. TQM and employee involvement are being successfully implemented not just in themanufacturing and service sectors, but also in public sectors and non-profit organisations. Notonly do employee play a vital part in business reengineering, but they also help to achieve costsavings, quality improvements and customer satisfaction.The best way to achieve excellence in any business is to engage every intelligence involved toimprove their surroundings.3.Continuous process ImprovementTQM is mainly concerned with continuous improvement in all work, from high level strategicplanning and decision-making, to detailed execution of work elements on the shop floor. It stemsfrom the belief that mistakes can be avoided and defects can be prevented. It leads tocontinuously improving results, in all aspects of work, as a result of continuously improvingcapabilities, people, processes, technology and machine capabilities.Continuous improvement must deal not only with improving results, but more importantly withimproving capabilities to produce better results in the future. The five major areas of focus forcapability improvement aredemand generationsupply generation,technology,operations andpeople capability.continuous improvement in an organization may be a lengthy process, and several steps areessential to its eventual success.1. Train employees in the methods of statistical process control (SPC) and other tools forimprovement quality.2. Make SPC methods a normal aspect of daily operations.3. Build work teams and employee involvement.4. Utilize problem-solving techniques within work teams.5. Develop a sense of operator ownership of the process.Here employee involvement is central to the philosophy of continuous improvement. However,the last two steps are crucial if the philosophy is to be the part of everyday operations.Continuous improvement process refers to the concept of having an ongoing effort to improveproducts, services or processes. To be successful, organizations need to employ continuousimprovement methods in todays ever changing business environment. There are four commonlyused tools for continuous improvements:The PDSA cycle
  20. 20. Six SigmaLeanTQMThe PDSA CycleThe Plan-Do-Study-Act (PDSA) cycle, also known as the Plan-Do-Check-Act (PDCA) cycle,Learning and Improvement cycle, Deming cycle or Shewhart cycle is a four-step problem-solving process. This method is a very powerful quality control tool that allows for continuousimprovement of business processes in an ever changing environment.Six SigmaSix Sigma is essentially a data-driven way of quality improvement that promotes defectpreventio rather than defect detection.LeanThe basic principle of lean is to eliminate all activities that dont add value and contribute wasteto the business.
  21. 21. TQMTotal Quality Management (TQM) is a management tool with the end goal of customersatisfaction. TQM strives for excellence in all parts of the company, down to the final product forthe customer.Continuous improvement is based on a Japanese Concept called Kaizen. It is basically composedof two words “KAI” means change and “ZEN” means better. In other words it means change forbetterment or improvement.Kaizen is a philosophy that defines management‟s role in continuously encouraging andimplementing small improvements involving everyone. It is the process of continuousimprovement in small increments that make the process more efficient, effective, undercontrol, and adaptable.Continuous improvement is constant, gradual and incremental improvement. It is undramatic,involves small steps, is a group effort, focuses on processes, and is driven by people. Eightypercent of improvements in an organization come from continuous improvement.Finally we can say that,Total quality management is a management system for a customer focused organization thatinvolves all employees in continual improvement of all aspects of the organization. TQM usesstrategy, data, and effective communication to integrate the quality principles into the culture andactivities of the
  22. 22. Topic 4:Differentiation between TQM based culture and Traditionalorganizational cultureTraditional organizational culture:Through tradition, history and structure, organizations build up their own culture. Traditionalorganizational culture refers to the general culture within a company or organization, andconsists of set of beliefs, values, and norms, together with symbols like dramatized events andpersonalities, that represents the unique character of an organization, and provides the context foraction in it and by it.TQM based culture:It is a proven technique to guarantee survival in a world-class competition. Total Quality is adescription of the culture attitude and organization of a company that strives to providecustomers with products and services that satisfy their needs. The culture requires quality in allaspects of the companys operations, with processes being done right the first time and defectsand waste eradicated from operations.:
  23. 23. Topics name Traditional organizationalcultureTQM based culture1.Focus Traditional organizationalculture focus on the internalprocesses, structures and rolesof an organization rather thanproduct quality. Production ofmore products and the costs ofthis process are mainconcerns.But the total qualitymanagement styles focus lesson mass production processesand more on the quality of theproduct.2.Role of manager The role of the manager in atraditional organizationalculture is to solve problems atthe top level, assign tasks tothe workers and control andplan production.In TQM based culture, therole of manager is toemphasize staff performanceand teamwork as prerequisitesfor quality products andservices.3.Decisions In traditional organizationalculture, decisions were shortterm because managers makestrategic positioning decisionsbased primarily on warfaremodels on the competition.In TQM based culture,decisions are long termbecause manager‟s focus onmarket segmentation andcustomer needs wants anddemands.4. Product Design In traditional organizationalculture, the product designprocess is internally driven,based on the assumption that"we know what is best for thecustomer."In TQM based culture,managers develop productsafter first determining whatcustomers need.5. Emphasis Traditional organizationalculture emphasis detectionwhich normally have flaws. Itis a rigid system with noscope for flexibility andadjustments.TQM based culture emphasisprevention and findingsolutions to correct the planand introduce it in the nextcycle so that the flaw iseliminated.6. Technology In that culture, managers usetechnology to help them dealwith the overly complexsystems that have grown up inthe organization.In that culture, Managers usetechnology only to optimizesystems for customer valueand to eliminate complexityrather than automate it orcomputerize it.7. Employee Involvement In traditional organizational In TQM based culture,
  24. 24. culture, employeeinvolvement programs areimplemented without a focusto contribute toSystem.employee involvement isstrategicallyFocuses and contributes tosystem purposes.8. Human ResourceManagementIn that culture, managersregard human resourcemanagement (HRM) as a staffresponsibility. HR Specialistsprocess paperwork to hire andfire, and handle personnelcomplaints.In that culture, line managersregard human resources ascritical resources andstrategically manage them asinputs to system.9. Structure Organizational structure isbased on specialization oftasks. The hierarchy is tall,with many levels of managers,and it emphasizes functionallines of authority.In that culture,Hierarchy is flat with fewerlevels of managers, and itemphasizes teamwork to servesuper ordinate objectives.10. Approach In traditional organizationalculture, managers accomplishimprovements through trialand error.In TQM based culture,managers use the scientificmethod to study proposedchanges and their effects.11. Response to Error In the old paradigm, if theycare at all, managers areintolerant of error. Theyregard error as a personalFailure and they respond withpunishment to instill fear inthose blamed.In the new paradigm, error isnot desired; however,managers view error as anopportunity for learning.People openly acknowledgeerror because managers do notassign personal blame, butseek to fix a process orsystem.12. Authority In traditional organizationalculture, managers imposeauthority from the top downvia rules and policies.In TQM based culture, topmanagers still hold authoritybut they impose it bycommunicating a vision,enabling people with systems,and empowering them tomake the vision real.
  25. 25. 13.Core aspect Traditional managementstyles implement changes allat once and after a long periodof time. The quality ofproducts and services ischanged only occasionally.Kaizen, or continuousimprovement, is the coreaspect of quality focusedmanagement styles. Thisprocess involves gradual andcyclical improvement toproducts, services andprocesses.14. Measurement Measurement systems arefocused on internal measures ofefficiency, productivity, cost,and profitability. This is thetradition of management byobjectives.Managers may use internallyfocused measures, but they arelinked to customer value in abroader measurement system.15. Culture In that culture emphasis socialand emotional issues that areregarded as irrational andsources of distraction away fromgoals and objectives.In that culture managersconnect organizational missionand purpose with eachindividuals sense of purpose,emotions, and social meaning.16. Control Organization control throughscoring individual performance,reviewing regular reports, andevaluating performance aseither good or bad.Managers statistically studyvariation to understand thecauses of poor performance andmake changes in systems toimprove performance.There are many other differences between the old or the traditional way of management to thetotal quality management. In the bigger picture, TQM has basically changed the culture and thethinking patterns of the organization. This change is substantial and will not be accomplished ina short period of time. Small organizations will be able to make the transformation much fasterthan large
  26. 26. Topic no: 5The Concept of QualityWe have all probably felt that sense of disappointment when something we have purchased doesnot live up to expectations. At the heart of meeting such expectations is the notion of quality.These expectations are based on the intended use and the selling price. Quality is perceiveddifferently by different people.” In a manufactured product, the customer as a user recognizes thequality of fit, finish, appearance, function, and performance. The quality of service may be ratedbased on the degree of satisfaction by the customer receiving the service.
  27. 27. When a product surpasses our expectations we consider that quality. Thus, it is somewhat of anintangible based on perception. Quality can be quantified as follows:Q = P / EWhere, Q = QualityP = PerformanceE = ExpectationsIf Q is greater than 1.0, then the customer has a good feeling about the product or service. Ofcourse, the determination of P and E will most likely be based on perception with theorganization determining performance and the customer determining expectations.A more definitive definition of quality is given in ISO 9000:2000. It is defined as the degree towhich a set of inherent characteristics fulfills requirements. Degree means that quality can beused with adjectives such as poor, good and excellent. Inherent is defined as existing insomething, especially as a permanent characteristic .Characteristics can be quantitative orqualitative. Requirement is a need or expectation that is stated; generally implied by theorganization, its customers, and other interested parties; or obligatory.The business meanings of quality have developed over time.Some interpretations are given below:Peter Drucker: "Quality in a product or service is not what thesupplier puts in. It is what the customer gets out and is willing to payfor."Feigenbaum (1983) defined quality as follows:Quality is total composite product (goods and services) characteristics, through which theproduct in use will meet the needs and expectations of the customers.A definition attributed to quality guru Crosby states the following:“Quality is conformance to requirements”.Another frequently used definition comes from Juran:“Quality is fitness for use”.American Society of Quality Control (ASQC) and American National Standard Institute(ANSI) defined:
  28. 28. “Quality is totality of features and characteristics of product (goods and services) that bears onits ability to satisfy given needs”.Approaches to define Quality:Harvard professor David Garvin, in his book Managing Quality summarized five principalapproaches to defining quality: transcendent, product based, user based, manufacturing orproduction based, and value based. Let‟s discuss each one of them:Figure: Approaches to define qualityApproachesTranscendentProductbasedUser basedProduction basedValue based
  29. 29. 1. Transcendent Approach:In transcendent approach the quality is absolute and universally recognizable. It is commonnotion used by laymen. There is no subjective judgment and is estimated by looking at theproduct.2. Product Based Approach:In product based approach the quality is viewed as quantifiable and measurable characteristics orattributes. The attributes of a particular product are in a specific category. These attributes areaccepted as bench of quality by the industry. Others in the same industry try to produce close tothis quality.3. User Based Approach:In user based approach the quality is defined as “Fitness for use”. Which is viewed from user‟sperspective and is dependent on how well does the product meet the needs of the consumer. It isalso known as Customer Oriented Approach.4. Production Based Approach:The production based approach means an outcome of engineering or operational excellence andis measured in terms of quality of conformance. Here the producer has specifications andproduces the product as per the specifications.5. Value Based Approach:In value based approach the quality is defined in terms of cost & price as well as a number ofother attributes. So according to this approach quality is satisfactory, if it provides desiredperformance at an acceptable price because customer looks at the total value proposition and notthe price alone.So at last we can say that, the concept of quality has developed over time differently by differentpeople, author, writer, organization etc. Therefore it is difficult to explain in a single word.iceBenefitsValuePr
  30. 30. Topic No: 6Nine Dimensions of QualityQuality has nine different dimensions. These dimensions are somewhat independent; therefore, aproduct can be excellent in one dimension and average or poor in another. Very few, if any,products excel in all nine dimensions. For example, the Japanese were cited for high-quality carsin the 1970s based only on the dimensions of reliability, conformance, and aesthetics. Therefore,quality products can be determined by using a few of the dimensions of quality.
  31. 31. Figure: The nine dimensions of Quality.Now a brief description of nine dimensions of quality is given below:1. Performance: Does the product or service do what it is supposed to do?Performance is the primary operating characteristics, which determines how well the product orservice performs the intended function. Example: For a car: It is speed, acceleration, brakingdistance, steering and handling, durability of batteries, fuel economy of cars, BHP of an engine,etc. For a restaurant: It is good food.Performance is often a source of contention between customers and suppliers, particularly whendeliverables are not adequately defined within specifications. The performance of a product ofteninfluences profitability or reputation of the end-user. As such, many contracts or specificationsinclude damages related to inadequate performance.2. Features: Does the product or services possess all of the features specified, or required for itsintended purpose?Features are the secondary characteristics of a product or service or “extra” items added to basicfeatures. Example: For a car: Design of seats, power options, a tape or CD deck, antilock brakes,Ninedimensionsof qualityPerformanceFeaturesConformanceReliabilityDurabilityServiceResponseAestheticsReputation
  32. 32. and reclining seats, look and color of a refrigerator etc. For a restaurant: It is linen tableclothsand napkins, creativity in design, attractiveness etc.While this dimension may seem obvious, performance specifications rarely define the featuresrequired in a product. Thus, it‟s important that suppliers designing product or services fromperformance specifications are familiar with its intended uses, and maintain close relationshipswith the end-users.3. Reliability: Will the product consistently perform within specifications?Reliability means the probability that a product will operate properly within an expected timeframe or survive over a specified period of time under stated conditions of use. Example: A TVwill work without repair for about seven years.In other word, reliability means consistency of performance overtime or average time for the unitto fail. Example: For a car: It is how often it needs repair. For an airline: It is how often flightsdepart on schedule.Reliability may be closely related to performance. For instance, a product specification maydefine parameters for up-time, or acceptable failure rates. It is a major contributor to brand orcompany image, and is considered a fundamental dimension of quality by most end-users.4. Conformance: Does the product or service conform to the specification?If it‟s developed based on a performance specification, does it perform as specified?If it‟s developed based on a design specification, does it possess all of the features defined?Conformance means the degree to which physical and performance characteristics of a productmatch pre-established standards, documentation, being on-time, customer‟s expectations etc.Example: For a part: It is whether this part is the right size. For a restaurant: It is whether themeat is cooked according to client request (e.g. "medium rare").5. Durability: How long will the product perform or last, and under what conditions?Durability means the amount of use one gets from a product before it physically deteriorates oruntil replacement or repaired is preferable. It is useful life of the product/service.Example: For a light bulb: It is how long it works before the filament burns out. For car:Corrosion resistance & long wear of upholstery fabric.Durability is closely related to warranty. Requirements for product durability are often includedwithin procurement contracts and specifications. For instance, fighter aircraft procured to operatefrom aircraft carriers include design criteria intended to improve their durability in thedemanding naval environment.6. Serviceability: Is the product relatively easy to maintain and repair?Serviceability means service after sale, during & before sales. It also means the ability to repair aproduct quickly, easily & competently.
  33. 33. Convenience and cost of repair and maintenance and is related to ease in resolving the customercomplains. Example: For a car: It is how quickly and easily it can be repaired and how long itstays repaired. For a mail order house: It is the speed and courtesy with which an overcharge iscorrected.As end users become more focused on Total Cost of Ownership than simple procurement costs,serviceability (as well as reliability) is becoming an increasingly important dimension of qualityand criteria for product selection.7. Aesthetics: How a product looks, appearance, feels, sounds, tastes or smells?Aesthetics means perceived quality: Subjective assessment resulting from image, advertising orbrand names. Example: For a product or service: It is its look, feel, sound, taste or smell.The way a product looks is important to end-users. The aesthetic properties of a productcontribute to a company‟s or brand‟s identity. Faults or defects in a product that diminish itsaesthetic properties, even those that do not reduce or alter other dimensions of quality, are oftencausing for rejection.8. Responsiveness:How well does the company react to unusual situations?How well customer service personnel able to respond to a customer‟s questions?Are the customer service personnel and the cashier friendly and courteous with customer?Responsiveness means human to human interface. Such as: Efficiency during meeting, fastdecision making, effective human resource management etc.9. Reputation:Reputation means perceived Quality: Indirect evaluation of quality (e.g. reputation). It alsomeans Subjective assessment of quality resulting from image, advertising, or brand names.Example: For a car: Top-rated car. For service: Award winning service department.So at last we can say that, the marketing has the responsibility of identifying the relativeimportance of each dimension of quality. These dimensions are then translated into therequirements for the development of a new product or the improvement of an existing one.