Quality is absolute and universally recognizable. It is often loosely related to a comparison of features and characteristics of products, as ANSI/ASQ defines as relative quality.For Example, high-priced German automobiles are often thought of as being of higher quality than the lower priced models of other manufacturers.A management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society which can be called as Total Quality Management(TQM).

1. TOTAL QUALITY MANAGEMENT
TQM
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PREPARED BY:AJAY KUMAR

2. Quality …………………
 Quality is the foundation of continued success.
 Quality is a journey of continuous improvement and innovation.
 Quality provides a very high return, but requires the investment of time
and resources.
 Quality requires committed leadership.
 Quality begins by meeting or exceeding the expectations of people.
 Quality requires teamwork and learning at all levels.
 Quality comes from the energy of a diverse community of motivated
and skilled people who are given and take responsibility
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3. Quality: Perspectives and Dimensions
1. ASQ and ANSI (American National Standards Institute)
Definition:
The totality of features and Characteristics of a product or service that
bears on its ability to satisfy given needs.
Features - Welcome attractions and advantages/comforts/benefits
- “Bells and Whistles” of a product
Characteristics – Quantifiable factors.
Ability to satisfy given needs – Reflects the value of the product or
service to the customer, including the economic value as well as safety,
reliability and maintainability.
ANSI / ASQ definition is operationally useful, but does not completely
describe the various viewpoints of quality that are commonly used.
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4. Quality is absolute and universally recognizable. It is
often loosely related to a comparison of features and characteristics
of products, as ANSI/ASQ defines as relative quality.
For Example, high-priced German automobiles are often thought of
as being of higher quality than the lower priced models of other
manufacturers.
If so, true quality cannot be precisely defined but can be recognized
only through experience.
This is not a useful definition, since quality cannot be measured,
compared, or analyzed.
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5. 5
2. Product based Definition
Quality is a precise and measurable variable.
The difference in quality reflect difference in
quantity of some product attribute.
Example: 1. # of stitches per inch on a shirt
2. # of cylinders in an engine.
As a result of this definition, Quality is often
mistakenly related to cost. i.e. the higher the cost,
the higher the quality. But it need not be.

6. Example:
 Sears, Roebuck & co has not become one of the world’s
largest retailers by selling the most expensive items, but has
gained a reputation for selling quality products.
 Food and services at many inexpensive restaurants would
be considered quality by many people.
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7. 3. User-Based Definition:
 Quality is determined by what a customer wants and what
he/she is willing to pay for.
Individuals have different wants and needs and hence
different quality standards.
This leads to a User-Based Definition.
 Quality is defined as “Fitness for intended use”, or how
well the product performs its intended function.
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8. Example:
Nissan developed automobiles to the taste of
1. American drivers (quick to start, high powered, easy to drive)
2. American stoves and refrigerators whose performance characteristics
were high, were not fit for use by Japanese since their kitchen and
kitchen doors are very small and narrow.
 Quality is meeting or exceeding customer expectations. This
quality concept of customer satisfaction has been fundamental
to Japanese success.
 External customers – Internal customers.
 According to international quality study Top Line Findings 58% of
business in Japan state that they develop new products and services
based on customer expectation while 40% for German firms and 22%
for U.S. firms.
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9. 4. Manufacturing –Based Definition:
 Quality is “conformance to specifications”
 Specifications are targets and tolerances determined by
designers of products and services.
 0.236 + 0.0-03 cm [0.233 to 0.239 cm is deemed
acceptable]
“On-time arrival” for an airplane might be specified as
with in 15 minutes of the scheduled arrival time.
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10. 5. Value-Based Definition:
 Quality is defined in terms of costs and prices.
 Thus a quality product is one that provides performance at an
acceptable price or conformance at an acceptable cost.
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11. Example:
1.One might purchase a computer “clone” rather than
name brand since it provides same performance at a
lower cost.
2. Yugo automobile, with a base price of 4000$, was
a failure in the US market because the quality of
conformance was not good despite its low cost.
 This definition is difficult to apply in practice
 However, two distinct concepts – quality and value
are focused in the definition.
 Product-Based definition of quality (2) is embedded
in the value-based definition(5). 11

12.  Five basic definitions focuses on different quality
dimensions. Hence conflicts are in evitable.
 Nevertheless, the most applicable definitions are
Fitness for use (user perspective) and conformance
to specifications (Manufacturing perspective).
Both are necessary for customer satisfaction.
However the input for “conformance to
specifications” is “Development of specification” from
the value-based definition of quality.
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13. Fig: The Production –Distribution cycle as an - Illustration where all –
Perspectives of quality are applicable.
PRODUCT FLOW
INFORMATION FLOW
3 5
1 4
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14. Therefore there exists a need for different definitions of
quality.
 Perspectives change at different points in an
organization.
 Reliance on a single definition is frequently a source
of problems.
 One needs to shift one’s perspective of quality as
products move from design to market.
 All views are necessary – and must be embodied in
an overall company philosophy namely, the Total Quality
Management (TQM).
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15. GRAVIN’S PRODUCT QUALITY DIMENSIONS
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16. 16

17. Service Quality Dimensions:
1. Time : How much time must a customer wait?
2. Timeliness : Will a package be delivered by 10.00 A.M. the next day?
3. Completeness: Are all items in the order included?
4. Courtesy : Do front-line employees greet every customers?
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18. 5. Consistency : Are services delivered in the same fashion for
every customers?
6. Accessibility and Convenience : Is the service easy to obtain?
7. Accuracy : Is the service performed right the first time?
8. Responsiveness : Can service personal react quickly to
unexpected problems?
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19. FIG: The Total Quality System Model
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20.  Improving customer satisfaction
 Enhancing the quality of goods and services
 Reducing waste and inventory, thus reducing costs
 Improving productivity
 Reducing product development time
 Increasing flexibility in meeting market demands
 Reducing work in process
 Improving customer service and delivery times
 Better utilizing human resources.
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Principles of Total Quality Management
(TQM)

21. TQM Dimensions
Design Customer needs
To meet
Control of process
Design
requirements
To ensure
Quality
Improvement
Quality
To enhance
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22. Total Quality Management Model
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23. TQM - Three paradigms
 Total: Made up of the whole (Involving the entire
organization, supply chain, and/or product life cycle)
 Quality: degree of excellence a product or
service provides
 Management: Act, art or manner of system with
steps like Plan, Organize, Control, Direct, etc
 Therefore, TQM is the art of managing the whole to
achieve excellence
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24. Definition
 The International Organization for Standards (ISO
8402:1994) defines TQM:
 A management approach for an organization,
centered on quality, based on the participation of
all its members and aiming at long-term success
through customer satisfaction, and benefits to all
members of the organization and to society
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25. Quality Throughout
 A Customer’s impression of quality begins with the
initial contact with the company and continues
through the life of the product
 Customers look to the total package - sales,
service during the sale, packaging, deliver, and
service after the sale
 Quality extends to how the receptionist answers
the phone, how managers treat subordinates, how
courteous sales and repair people are, and how
the product is serviced after the sale
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26.  Some of the definitions of Quality by researchers are:-
 Quality is fitness for use (Juran, 1974)
 Quality is conformance to requirements (Crossby. 1984)
 Quality means best for certain customer conditions.
These conditions are: The actual use and the selling
price of the product. (Feigenbaum, 1961)
 Quality is the capability of products or services to
knowingly satisfy those preconceived composite wants
of the user(s) that are intelligently related to the
characteristics of performance, and do not cause major
overt or covert reactions or actions by other people
(Johnson, 1987)
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27. Quality…
 The totality of features and characteristics of
products or services that bears on its ability to
satisfy given needs.
 It’s a immense field which can be seen by eyes,
felt by touch, listen by ear and also can be
tasted by tongue
 Hence quality is both a user-oriented and a
production oriented expression
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28. Quality therefore
 Defined by the customers
 A measure of achievement of customer
satisfaction.
 Fulfilling the customer’s need/requirement
 Value for money
 Keeping one’s word
 Ensuring zero defects
 An object which lies in the eyes of the beholder.
 Ensuring fitness for use
 Image of the company and costumer confidence
in the organization
 A precise and measurable variable
 Utility to the society
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29. Management
 The American Management Association defines
management as "the process of getting work
done through people."
 The verb manage comes from the Italian
maneggiare (to handle — especially a horse),
which in turn derives from the Latin manus (hand).
 The French word mesnagement (later
ménagement) influenced the development in
meaning of the English word management in the
17th and 18th centuries.
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30. Theories of
management
 Management theories can be divided into two sets
 One is the set that concentrates mainly on
efficiency and another is the set that concentrates
mainly on effectiveness
 Efficiency is about doing things the right way
 It involves eliminating waste and optimizing
processes
 Effectiveness is about doing the right things
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31. Theories of management
 A good management style is a blend of both
efficiency and effectiveness
 There is no point in acting efficiently if what
you are doing will not have the desired
effect
 Management techniques can be viewed as
either bottom-up, top-down, or collaborative
processes
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32. Scenario in India
 In India, largely the top down approach is popular
 In the top-down approach, the management makes
the decisions, which the employees have no choice
but to accept
 On the other hand, in the bottom-up approach,
employees submit proposals to their managers who, in
turn, funnel the best ideas further up the organization
 However the bottom-up approach is not a very popular
approach in India as most of the Indian businesses are
family run businesses
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33.  TQM is a management-oriented
strategy
 TQM acts as an umbrella under which
everyone in the organization can strive
for
 Customer satisfaction
 Reduce costs and wastage
 Increase the efficiency of services
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34.  Aims at embedding awareness of quality in all
organizational processes
 TQM, which originally hails from the Japanese,
saw the 1980's bring it to the healthcare domain
 In the 1950s, the Japanese asked W. Edwards
Deming, an American statistician and management
theorist, to help them improve their war torn
economy
 By implementing Deming's principles of total
quality management (TQM), Japan experienced
dramatic economic growth
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35.  In the 1980s, when the United States began to see a
reduction in its own world market share in relation to
Japan, American business rediscovered Deming
 Dr. Deming's teachings and philosophy can be seen
through the results they produced when they were
adopted by the Japanese
 Ford Motor Company was simultaneously
manufacturing a car model with transmissions made in
Japan and the United States
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36.  Soon after the car model was on the market, Ford
customers were requesting the model with Japanese
transmission over the USA-made transmission, and they
were willing to wait for the Japanese model
 As both transmissions were made to the same
specifications, Ford engineers could not understand the
customer preference for the model with Japanese
transmission
 It delivered smoother performance with a lower defect
rate.
 Finally, Ford engineers decided to take apart the two
different transmissions
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37.  The American-made car parts were all within
specified tolerance levels
 On the other hand, the Japanese car parts had
much closer tolerances than the USA-made parts
- e.g. if a part was supposed to be one foot long,
plus or minus 1/8 of an inch - then the Japanese
parts were within 1/16 of an inch
 This made the Japanese cars run more smoothly
and customers experienced fewer problems
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38.  Ford Motor Company was one of the first American
corporations to seek help from Deming
 In 1981, Ford's sales were falling
 Between 1979 and 1982, Ford had incurred $3 billion in
losses
 Dr. Deming to help jump-start a quality movement at Ford
 To Ford's surprise, Deming talked not about quality but
about management
 He told Ford that management actions were responsible for
85% of all problems in developing better cars.
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39.  In 1986 Ford came out with a profitable line of
cars, the Taurus-Sable line
 By 1986, Ford had become the most profitable
American auto company
 For the first time since the 1920s, its earnings had
exceeded those of arch rival General Motors (GM)
 Its earnings continued to exceed GM and
Chrysler's
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40. The Deming Prize (JAPAN):
 1951 – By the Union of Japanese Scientists and Engineers (JUSE)
 In appreciation of W. Edwards Deming’s achievements in SQC.
 For the companies which have successfully applied CWQC (Company
Wide Quality Control)
 The judging criteria consists of a check list of 10 major categories.
1. Policy and Objectives
2. Organization and its Operation
3. Education and its Extension
4. Assembling and Disseminating Information
5. Analysis
6. Standardization
7. Control
8. Quality Assurance
9. Effects
10. Future Plans.
Each category is broken down into sub categories.
 The Deming Prize was opened to overseas companies in 1984.
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41. The Malcolm Baldridge National Quality Award
(USA):
 Signed by president Reagan in 1987
 Named after secretary of commerce Malcolm Baldridge
who was killed in an accident shortly before the senate acted
on the legislation.
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42. 1991 Examination Categories/Items Maximum Marks
1.0 Leadership 100
1.1 Senior Executive Leadership 40
1.2 Quality Values. 15
1.3 Management for Quality 25
1.4 Public Responsibility. 20
2.0 Information and Analysis 70
2.1 Scope and Management of Quality Data and Information 20
2.2 Competitive Comparisons and Benchmarks 30
2.3 Analysis of Quality Data and Information 20
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43. 1991 Examination Categories/Items Maximum Marks
3.0 Strategic Quality Planning 60
3.1 Strategic Quality Planning Process 35
3.2 Quality Goals and Plans 25
4.0 Human Resource Utilization 150
4.1 Human Resource Management 20
4.2 Employee Involvement 40
4.3 Quality Education and Training 40
4.4 Employee Recognition and Performance Measurement 25
4.5 Employee Well-Being and Morale 25
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44. 5.0 Quality Assurance of Products and Services 140
5.1 Design and Introduction of Quality Products and Services 35
5.2 Process Quality Control 20
5.3 Continuous Improvement of Processes 20
5.4 Quality Assessment 15
5.5 Documentation. 10
5.6 Business Process and Support Service Quality 20
5.7 Supplier Quality 20
6.0 Quality Results 180
6.1 Product and Service Quality Results 90
6.2 Business Process, Operational, and Support Service
Quality Results 50
6.3 Supplier Quality Results 40
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45. 7.0 Customer Satisfaction 300
7.1 Determining Customer Requirements and Expectations 30
7.2 Customer Relationship Management 50
7.3 Customer Service Standards 20
7.4 Commitment to Customers 15
7.5 Complaint Resolution for Quality Improvement 25
7.6 Determining Customer Satisfaction 20
7.7 Customer Satisfaction Results 70
7.8 Customer Satisfaction Comparison 70
TOTAL POINTS 1000
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46. Year Manufacturing Small Business Service
1988 Motorola, Inc.
Westinghouse Commercial
Nuclear Fuel Division
Globe Metallurgical,
Inc
1989 Xerox Corporation Business
products and Systems
Milliken & Company
1990 Cadillac Motor Car Div.
IBM Rochester
Wallace Co., Inc Federal
Express
1991 Solectron Corporation
Zytec Corporation
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47. The European Quality Award:
 Instituted in 1991 by the European Foundation for Quality Management
(EFQM)
 Awarded to companies that demonstrate that its approach to TQM has
made a significant contribution towards satisfying the expectation of
customers, employees and others.
 The assessment is based on
 Customer Satisfaction
 Business results
 Processes
 Leadership
 People Satisfaction
 Resources
 People Management
 Policy and Strategy
 Impact on Society.
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48. Pitfalls in TQM
Perceived crisis in implementing TQM program arise from two sources.
1. The first is change
TQM requires a significant change of an organization.
Changes in its,
Methods, Processes, Attitudes and Behavior.
Changes is Painful (Pleasure).
2. The second is rising expectations
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49. THANK YOU
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