1. TOTAL QUALITY MANAGEMENT:TOTAL QUALITY MANAGEMENT:
TQMTQM
Origins, Evolution & Key ElementsOrigins, Evolution & Key Elements
Professor Jayashree Sadri and Dr. SorabProfessor Jayashree Sadri and Dr. Sorab
SadriSadri

2. What is Quality?
Quality is “fitness for use”
(Joseph Juran)
Quality is “conformance to requirements”
(Philip B. Crosby)
Quality of a product or services is its ability to satisfy
the needs and expectations of the customer

3. Evolution of Quality Management
Inspection
Quality
Control
Quality
Assurance
TQM
Salvage, sorting, grading, blending, corrective
actions, identify sources of non-conformance
Develop quality manual, process performance
data, self-inspection, product testing, basic
quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
planning, comprehensive quality manuals, use of
quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.
Policy deployment, involve supplier & customers,
involve all operations, process management,
performance measurement, teamwork, employee
involvement.

4. Deming’s view of a production as a system
Consumer
Research
Design &
redesign
Receipt & test of
materials
Suppliers,
materials &
equipment
Production,
assembly,
inspection
Distribution Consumers
Test of processes,
machines, methods, cost

5. Improve Quality
Productivity improves
Provide jobs and
more jobs
Deming’s Chain Reaction
Cost decreases because
of less rework, fewer
mistakes, fewer delays,
snags, better use of
machine time and
materials
Stay in business
Capture the market with
better quality and lower price

6. PLAN
CHECK
DOACT
The Deming Cycle or PDCA Cycle
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
Implement the change on
a small scale and measure
the effects
Adopt the change as a
permanent modification
to the process, or
abandon it.
Study the results to
learn what effect the
change had, if any.

7. W. Edwards Deming’s 14 Points
Create constancy of purpose towards improvement
of product and services.
Adopt the new philosophy. We can no longer live
with commonly accepted levels of delays, mistakes,
defective workmanship.
Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
End the practice of awarding business on the basis of
price tag.
1)
2)
3)
4)

8. W. Edwards Deming’s 14 Points
Find problems. It is management’s job to work
continually on the system.
Institute modern methods of training on the job.
Institute modern methods of supervision of
production workers. The responsibility of foremen
must be changed from numbers to quality.
Drive out fear that everyone may work effectively for
the company.
5)
6)
7)
8)

9. Break down barriers between departments.
Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity
without providing methods.
Eliminate work standards that prescribe numerical
quotas.
Remove barriers that stand between the hourly
worker and his right to pride of workmanship.
9)
10)
11)
12)
W. Edwards Deming’s 14 Points

10. Institute a vigorous programme of education and
retraining.
Create a structure in top management that will push
everyday on the above 13 points.
13)
14)
W. Edwards Deming’s 14 Points

11. Deming’s System of Profound Knowledge
Appreciation for
system
Knowledge
about variation
Theory about
knowledge
Knowledge of
psychology

12. Joseph M. Juran and the Cost Of Quality
2 types of costs:
Unavoidable Costs: preventing defects (inspection,
sampling, sorting, QC)
Avoidable Costs: defects and product failures
(scrapped materials, labour for re-work, complaint
processing, losses from unhappy customers
“Gold in the Mine”

13. Joseph M. Juran and the Cost Of Quality
100% defective Point of “Enough
quality”
Total
Costs
Unavoidable
costs
Avoidable
costs
Costs

14. What is TQM?
Constant drive
for continuous
improvement and
learning.
Concern for
employee
involvement and
development
Management
by Fact
Result Focus
Passion to deliver
customer value /
excellence
Organisation
response
ability
Actions not just
words
(implementation)
Process
Management
Partnership
perspective
(internal /
external)

15. Learning
LEARNING AND TQM
Process Improvement
Quality Improvement
Customer
Satisfaction
Shareholder
Satisfaction
Employee
Satisfaction

16. BASIC PRINCIPLES OF TQM
Approach Management Led
Scope Company Wide
Scale Everyone is responsible for Quality
Philosophy Prevention not Detection
Standard Right First Time
Control Cost of Quality
Theme On going Improvement

17. FOUR KEY PRINCIPLESFOUR KEY PRINCIPLES
•Measure quality so you can affect it
•Focus on a moving customer
•Involve every employee
•Think long term - Act short term

18. THE CASE FOR QUALITY
1 Success of competitors who take quality seriously
2 Rising expectations of customers
3 Quality differentiates companies from the
competition
4 Narrowing of supplier bases by quality conscious
companies
.

19. 5 Growing evidence that growth in market
share comes from sustained quality.
6 Cost advantages
7 High cost of catastrophic failure
8 Inspection poor substitute for right first time
THE CASE FOR QUALITY

20. SEVEN DEADLY SINS OF TQMSEVEN DEADLY SINS OF TQM
•Flight to nowhereFlight to nowhere
•One size fits allOne size fits all
•Substituting TQM for leadershipSubstituting TQM for leadership
•Inside - Out indicatorsInside - Out indicators
•Mandatory religionMandatory religion
•Quality kept as a separate activityQuality kept as a separate activity
•Teaching to the testTeaching to the test
Booz-Allen & HamiltonBooz-Allen & Hamilton

21. IS QUALITY A SOUND INVESTMENT?
Year Company Stock Growth (Oct 94)
1988 Motorola 373.0%
1988 Westinghouse (CNFD) - 49.6%
1989 Xerox (BPS) 75.9%
1990 General Motors 1.6%
1990 Federal Express 10.6%
1990 IBM (IBM Rochester) - 34.9%
1991 Selectron 526.9%
1992 AT&T (UCS) 32.2%
1992 AT&T (TSBU) 32.2%
1992 Texas Instruments (DS&E) 106.8%
1993 Zyta 8.4%
1994 Eastman Chemical 18.5%
Total Stock Value £23016 (91.8% growth)
Standard & Poor 500 Stock value £15911 (32.6% growth)
Source: US Dept. of Commerce Study 1995

22. Project Quality AssuranceProject Quality Assurance
Project Quality PlanProject Quality Plan
PQPPQP
Q

23. Project Quality PlanProject Quality Plan
DefinitionDefinition
• The project quality plan is a documented description
of the project management system and must be
approved by the AEM, in part to demonstrate his
commitment to quality but primarily it is the means by
which technical and administrative authorities are
delegated through out the project.
• All projects shall have quality plan.
• Project engineer shall develop and update the PQP.
.

24. Relationships between project quality plansRelationships between project quality plans
PQP
ADCO
PQP
Designer
PQP
construction
contractor
Suppliers
quality plans

25. Preparation of a project quality planPreparation of a project quality plan
Confirm project objectives
Plan the project allocate resources
Identify critical activities
Define standards and controls
Audits
Close-out
AEM/PE/HEAEM/PE/HE
AEM/PEAEM/PE
HE/HC/PEHE/HC/PE
DE/CE/PEDE/CE/PE
QA/SCE/PEQA/SCE/PE
PEPE

26. CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN
1.1.COVER SHEET + REVISION CONTROLCOVER SHEET + REVISION CONTROL
1.1 Document purpose1.1 Document purpose
1.2 Policy statement1.2 Policy statement
2.2.INTRODUCTIONINTRODUCTION
2.12.1 BackgroundBackground
2.22.2 Project ScopeProject Scope
2.32.3 Project Objectives & ConstraintsProject Objectives & Constraints
2.42.4 QA Standards (Consider putting in DocumentQA Standards (Consider putting in Document
purpose)purpose)

27. CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN
3.3. EXECUTION STRATEGYEXECUTION STRATEGY
3.13.1 Project Management risks.Project Management risks.
3.23.2 Critical Activities.Critical Activities.
3.33.3 Control Strategy.Control Strategy.
3.43.4 Cost & Schedule.Cost & Schedule.
3.53.5 HSE Plan.HSE Plan.
3.63.6 Commissioning & Hand-over.Commissioning & Hand-over.

28. CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN
4.4.ORGANISATION, RESPONSIBILITES &ORGANISATION, RESPONSIBILITES &
INTERFACESINTERFACES
4.14.1 Table with namesTable with names
4.24.2 External interfacesExternal interfaces
4.34.3 Definition of specific roles and responsibilities.Definition of specific roles and responsibilities.
5.5. QUALITY REFERENCE SYSTEMQUALITY REFERENCE SYSTEM
5.15.1 Controlling DocumentsControlling Documents
5.25.2 Applicable Procedures (Check list based)Applicable Procedures (Check list based)
6.6.INTEGRATION OF CONTRACTORS & SUPPLIERSINTEGRATION OF CONTRACTORS & SUPPLIERS
6.16.1 Define Contractor interfaces.Define Contractor interfaces.

29. CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN
7.7.AUDITS & REVIEWSAUDITS & REVIEWS
This section should include schedule for:This section should include schedule for:
* PHSER* PHSER * HSEIA* HSEIA
* HAZOP* HAZOP * VE* VE
* TECHNICAL REVIEWS* TECHNICAL REVIEWS * QA AUDITS* QA AUDITS
* LESSONS LEARNT REVIEW.* LESSONS LEARNT REVIEW.
8.8. QUALITY IMPROVEMENTQUALITY IMPROVEMENT
8.1 LESSONS LEARNT8.1 LESSONS LEARNT
8.2 CLOSE-OUT REPORT8.2 CLOSE-OUT REPORT

30. CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN
PREPARATION & APPROVALS:PREPARATION & APPROVALS:
PREPARE:PREPARE: PE, PM and / or Team LeadersPE, PM and / or Team Leaders
ENDORSE:ENDORSE: AEMAEM
APPROVE:APPROVE: EPMEPM
TimingTiming
The nominated PE, PM or Team leader shallThe nominated PE, PM or Team leader shall
develop the PQPdevelop the PQP
immediately after receiving the PID document andimmediately after receiving the PID document and
approval of theapproval of the
project in the Business Plan.project in the Business Plan.

31. Quality is a Journey,
not a Destination