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Total quality management
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  • 1. Total: Made up of the wholeQuality: Degree of excellence a product or serviceprovidesManagement: Act, Art, or manner ofhandling, controlling, directing etc.Therefore, TQM is the art of managing the whole toachieve excellence.
  • 2. Ford Motor Company had operating losses of$3.3 billion between 1980 and 1982.Xerox market share dropped from 93% in 1971to 40% in 1981.Attention to quality was seen as a way tocombat the competition.
  • 3.  “Do the right things right the first time, everytime.”
  • 4. BASIC APPROACH1- A committed and involved management to provide long-term top-to-bottom organizational support.2- An unwavering focus on the customer, both internally andexternally3- Effective involvement and utilization of the entire workforce.4- Continuous improvement of the business and productionprocess.5- Treating suppliers as partners6- Establish performance measures for the processes
  • 5. New And Old CulturesQuality Element : Previous State: TQMDefinition Product-Oriented Customer-OrientedPriorities Second to Service First among equalsand cost of service and costDecisions Short-Term Long-TermEmphasis Detection PreventionErrors Operations SystemResponsibility Quality control Every oneProblem Solving Managers TeamsProcurement Price Lifecycle costs,PartnershipManager’s Role Plan, assign, control Delegate, coach,and enforce facilitate and mentor
  • 6. -Awareness is necessary that the quality of theproduct or service must be improved.-Awareness comes about when an organizationloses market share or realizes that quality andproductivity go hand-in-hand.
  • 7. Usual Thinking in terms of an excellent productor service that fulfills or exceeds ourexpectations
  • 8. Q= P/EWhere,Q= QualityP= PerformanceE= Expectations
  • 9. The Dimensions of QualityDimension: Meaning and Example:Performance Primary product characteristics,suchas the brightness of the picture.Features Secondary characteristics, addfeatures such as remote controlConformance Meeting specifications or industrystandards, workmanshipReliability Consistency of performance overtime, average time for the unit tofailDurability Useful life, includes repair
  • 10. Historical Review:1924: W.A Shewhart of Bell Telephone Laboratories developeda statistical chart for the control of product variables.1942: Recognition of the value of statistical quality controlbecame apparent.1946: The American society for Quality Control was formed.1950: W.Edwards Deming gave a series of lectures onstatistical methods to Japanese engineers.1960: The first quality control circles were formed for thepurpose of quality improvement.
  • 11. One that opposes, stands in the way of, or holds upprogress.OR,an obstruction that stands in the way (and must beremoved)
  • 12. 1- People change when they want to and to meettheir own needs.2- Never expect anyone to engage in behavior thatserves the organization’s values unless adequatereason (why) has been given.3- For change to be accepted, people must be movedfrom a state of fear to trust.
  • 13. - All the constituents of organization must beinvolved in planning and its implementation.- Importance of Two-way communication during thedevelopment of plan and its implementation.- Customer satisfaction should be the goal ratherthan financial or sales goals.
  • 14. -Training and education ongoing process for everyone in organization.-Training and Education are most important whensenior management conducts the training on theprinciples of TQM.-Informal training occurs by communicating theTQM effort to all personnel on a continuous basis.
  • 15. 5-INCOMPATIBLE ORGANIZATIONAL STRUCTURE ANDISOLATED INDIVIDUALS AND DEPARTMENTS:-Differences between departments and individualscan create implementation problems.-Restructuring to make the organization moreresponsive to customer needs may be needed.-At Spartan Light Metal Products, Inc. inSparta, IL, product support teams composed ofthree members from design, quality andproduction are assigned to each customersegment.
  • 16. 6-Ineffective MeasurementTechniques and Lack ofAccess to Data and Results:-Key characteristics of the organization shouldbe measured so that effective decisions canbe made.-In order to improve a process you need tomeasure the effect of improvement of ideas.-Access to data and quick retrieval isnecessary for effective processes.
  • 17. -Organizations need to understand the changingneeds and expectations of their customers.-Effective feedback mechanisms that provide datafor decision making are necessary for thisunderstandingTo Overcome this Obstacle, give the right peopledirect access to the customers.
  • 18. -Teams need to have the proper training and, at leastin the beginning, a facilitator.-Whenever possible, the team’s recommendationsshould be followed.-Individuals should be empowered to make thedecisions that affect the efficiency of their process orthe satisfaction of their customers.
  • 19. -A lack of continuous improvement ofthe processes, product, and/or servicewill even leave the leader of the packin the dust.-Will Rogers said, “ Event if you’re onthe right track, you’ll get run over ifyou sit there”
  • 20. According to a survey in Georgia, the benefits are, Improved quality, Employee participation, Teamwork, Working Relationships, Customer Satisfaction, Employee Satisfaction, Profitability, Market Share, Productivity