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  • 1. 1 An Assignment on Total Quality Management Submitted BySudarshan Kumar Patel PGDMA-1320
  • 2. 2 What is quality? A frequently used definition of quality is “Delighting the customer by fully meeting their needs andexpectations”. These may include performance, appearance, availability, delivery, reliability, maintainability,cost effectiveness and price. It is, therefore, imperative that the organization knows what these needs andexpectations are. In addition, having identified them, the organization must understand them, and measureits own ability to meet them. The Three Quality GurusDeming:The best known of the “early” pioneers, is credited with popularizing quality control in Japan in early 1950s.Today, he is regarded as a national hero in that country and is the father of the world famous Deming prize for quality. Juran: Juran, like Deming was invited to Japan in 1954 by the union of Japanese Scientists and engineers. Juran defines quality as fitness for use in terms of design, conformance, availability, safety and field use. He focuses on top-down management and technical methods rather than worker pride and satisfaction. Philip Crosby: Quality is defined as conformance to requirements, not “goodness” The system for achieving quality is prevention, not appraisal. The performance standard is zero defects, not “that’s close enough” The measurement of quality is the price of non-conformance, not indexes.
  • 3. 3 Commonality of Themes of Quality Gurus 1Inspection is never the answer to quality improvement, nor is “policing”. 2Involvement of leadership and top management is essential to the necessary culture of commitment to quality. 3A program for quality requires organization-wide efforts and long term commitment, accompanied by the necessary investment in training. 4Quality is first and schedules are second. Deming Juran Philip Crosby Five Approaches of Defining Quality Harvard professor David Garvin, in his book Managing Quality summarized five principal approaches to define quality Transcendent  Product based  User based  Manufacturing based  Value based
  • 4. 4 Old Quality vs. New Quality Difference between old quality (Rolls Royce, personal banker etc) and new quality is that old was the work of craftsmen and the new is the work of a system (Toyota, Big Mac, Boeing Aircraft, Disney World etc.). The old is expensive, made for the few, using skilled hands, and is beautiful and functionally based. The new reduces cost, made for the many by intelligent minds and should drive the economy and make business more competitive. Total Quality Management (TQM) TQM is the way of managing for the future, and is far wider in its application than just assuring product or service quality – it is a way of managing people and business processes to ensure complete customer satisfaction at every stage, internally and externally. TQM, combined with effective leadership, results in an organization doing the right things right, first time.
  • 5. 5 The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface lie 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 the organization to create total quality. These are the foundations of TQM, and they are supported by the key management functions of people, processes and systems in the organization. Dimensions of Product Quality 1. Performance - Fulfillment of primary requirement 2. Features - Additional things that enhance performance 3. Conformance - Meeting specific standards set by the industry 4. Reliability - Consistence performance over a period of time 5. Durability - Long life and less maintenance 6. Service - Ease of repair, guarantee, and warranty 7. Response - Dealer customer relationship, human interface 8. Aesthetics - exteriors, packages 9. Reputation - Past performance, ranking, branding Historical Review of TQM 1924 - After WWI, W.A. Sherwat of Bell Telephone statistical chart for the control of various. Concepts of sample tests were followed. It was a failure in the initial stages. 1946 - ASQC American Society for Quality Control, now ASQ. Frequent meetings, conferences andpublications were made to public. 1950 - W.Edwards Deeming’s his guidance and lecture to Japan engineers transformed qualityconcepts in the organization. His cycle ACT-PLAN-DOCHECK. 1954 - Joseph M.Juran Concept of efficient and productive. Juran Trilogy Quality planning - Quality Control - Quality Improvement. 1960 - Quality control circles were formed. Zero defects concepts 1970 - Reactive approach to proactive approach. Shift from Japan to USA 1980 - SPC - Statistical Process Control. Concepts of parameter and tolerance. Experiments 1990 -Concepts of certification of ISO, CMM etc. 2000 - Six sigma concept - Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used torepresent standard deviation in statistics) from mean. Six
  • 6. 6 Sigma methodologiesprovide the techniquesand tools to improve the capability and reduce the defects in any process. Evolution of TQM Benefits of TQM       Greater customer loyalty Market share improvement Higher stock prices Reduced service calls Higher prices Greater productivity What is Six Sigma? 1. A goal of near perfection in meeting customer requirements.
  • 7. 7 2. A sweeping culture change effort to position a company for greater customer satisfaction, profitability and competitiveness. 3. A comprehensive and flexible system for achieving, sustaining and maximizing business success; uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving and reinventing business processes. Six Sigma DMAIC Process Conclusion“Remember the earth revolves around the CUSTOMER. Quality begets customers and customers beget quality. Let us all have action plans to support quality, this will make the world happy and earn us the blessing of God Almighty.” “Actions are direct reflection of one’s intentions” (Al-Quran).
  • 8. 8 ReferencesManagement Accounting- Ray Proctor Management Accounting-Pauline Weetman White Paper on TQM