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TOTAL QUALITY MANAGEMENT
SUBMITTED BY
NEERAJ SHARMA
ROLL NO 14240157002
M .PHIL (MANAGEMENT)
Dr. Zargari
INTRODUCTION TO TQM
What is TQM?
TQM is the integration of all functions and
processes within an organization in order to
achieve continuous improvement of the quality
of goods and services. The goal is customer
satisfaction.
“ No doubt , humans are always deficient”
Dr. Zargari
The Three Quality Gurus
 Deming: 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.
Dr. Zargari
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.
Dr. Zargari
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.
Dr. Zargari
Commonality of Themes of Quality Gurus
 Inspection is never the answer to quality improvement,
nor is “policing”.
 Involvement of leadership and top management is
essential to the necessary culture of commitment to
quality.
 A program for quality requires organization-wide
efforts and long term commitment, accompanied by
the necessary investment in training.
 Quality is first and schedules are second.
Dr. Zargari
DIFINITION OF QUALITY
 The concept and vocabulary of quality are elusive.
Different people interpret quality differently. Few can
define quality in measurable terms that can be proved
operationalized. When asked what differentiates their
product or service;
The banker will answer” service”
The healthcare worker will answer “quality health
care”
The hotel employee will answer “customer
satisfaction”
The manufacturer will simply answer “quality
product”
Dr. Zargari
OBJECTIVES OF QUALITY
 TO DETERMINE WHAT AND
WHERE IMPROVEMENTS ARE CALLED.
 TO ANALYZE HOW OTHER
ORGANIZATIONS ACHIEVE THEIR HIGH PERFORMANCE
LEVELS.
 TO USE THIS INFORMATION TO IMPROVE PERFORMANCE
Dr. Zargari
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
Dr. Zargari
Transcendental view
 Those who hold the transcendental view would say “I
can’t define it, but I know it when I see it”
 Advertisers are fond of promoting products in these
terms.
“Quality is difficult to define or to operationalize. It
thus becomes elusive when using the approach as basis
for competitive advantage. Moreover, the functions of
design, production and service may find it difficult to
use the definition as a basis for quality management.”
Dr. Zargari
PRODUCT BASED
 Quality is viewed as a quantifiable or
measurable characteristic or attribute. For
example durability or reliability can be
measured and the engineer can design to that
benchmark.
 Quality is determined objectively.
 Although this approach has many benefits, it
has limitation as well. Where quality is based
on individual taste or preference, the benchmark
for measurement may be misleading.
Dr. Zargari
MANUFACTURING BASED
 definitions are concerned primarily with
engineering and manufacturing practices
“conformance to requirements”. Requirements or
specifications are established by design and any
deviation implies a reduction in quality. The
concept applies to services as well as product.
Excellence in quality is not necessarily in the eye
of the beholder but rather in the standards set by
the organization.
 This approach has the serious weakness. The
consumer’s perception of quality is equated with
conformance and hence is internally focused
Dr. Zargari
Value Based
 It is defined in term of costs and prices as well
as number of other attributes. Thus, the
consumer’s purchased decision is based on
quality at an acceptable price. This approach is
reflected in the popular Consumer Reports
magazine which ranks products and services
based on two criteria: Quality and Value.
 The highest quality is not usually the best value.
That designation is assigned to the “best- buy”
product or service.
Dr. Zargari
Characteristics of TQM Leader
Total quality management involves a continuous
focus on optimizing quality, both of processes and
products. While perfection is impossible,
monitoring and improving organizational
strategies can make a company more attractive to
consumers, providing a competitive edge. As with
any organizational initiative, strong leadership can
help ensure success.
Dr. Zargari
TQM Leader
 CLEAR GOAL-SETTING:- excellent leaders establish
clear, well-defined objectives for quality
improvement. For example, improving customer
service might be too general a goal. Instead, an
effective leader might divide customer service
process into various categories and then define
measurable and objective quality benchmarks for
each category.
Dr. Zargari
TQM Leader
 COMMUNICATIVE:-Excellent leaders must have
the communication skills to give marching orders
in ways that inspire and motivate rather than
discourage followers. Leaders also should play a
strong role in drafting new policy initiatives and
guideline changes, which will help ensure the
organization’s new focus on quality has the best
chance of succeeding.
Dr. Zargari
TQM Leader
 AGGRESSIVE:-Excellent leaders know that total
quality management is essentially a continuous
overhaul, and no process is so good that it can’t be
improved. For that reason, excellent leaders must
aggressively pursue change, circumventing or
eliminating any institutional barriers that hinder
organizational growth and development. Stubborn
managers who resist change might need replacing,
for example, and a strong leader won't hesitate to
fire such people when necessary.
Dr. Zargari
TQM Leader
 DEEPLY COMMITTED TO CHANGE:- Total quality
management doesn’t work if only a few
departments of an organization focus on self-
improvements. The entire organization must work
together to make improvements at every stage,
level and department. In other words, leaders
must be committed enough to make changes
throughout the entire organization, not just make
improvements to a few small areas.
Dr. Zargari
TQM Leader
 PERSONALLY INVOLVED:-Excellent leaders are in
the thick of things, working alongside their
followers to improve the organization. From
designing training and education protocols to
analyzing results of new initiatives, leaders must
be personally involved to ensure high standards
are upheld and to inspire followers to keep
working hard. By acting as both a teacher and a
role model, an effective leader inspires workers to
achieve higher quality standards.
Dr. Zargari
INDICATORS FOR CUSTOMER SATISFACTION
 Frontline empowerment.
 Excellent hiring, training, attitude and morale for front line
employees.
 Proactive customer service system.
 Quality requirements of market segment.
 Commitment to customers.
 Understanding customer requirements.
Dr. Zargari
COST OF QUALITY
Higher quality means higher cost.
 Quality attributes such as performance and features
cost more in terms of labor, material, design and other
costly resources.
 The additional benefits from improved quality do not
compensate for additional expense.
The cost of improving quality is less than the
resulting savings.
 The saving result from less rework, scrap and other
direct expenses related defects.
 This is said to account for the focus on continuous
improvement of processes in Japanese firms.
Dr. Zargari
Quality Costs
 Costs include not only those that are direct, but
also those resulting from lost customers, lost
market share and the many hidden costs and
foregone opportunities not identified by modern
cost accounting systems.
Dr. Zargari
Quality Costs
Types of Quality Costs
The cost of quality is generally classified into four
categories
1. Cost of Prevention
2. Cost of Appraisal
3. Cost of Internal Failure
4. Cost of External Failure
Dr. Zargari
Quality Costs
Cost of Prevention
 Prevention costs include those activities which remove
and prevent defects from occurring in the production
process.
 Included are such activities as quality planning,
production reviews, training, and engineering analysis,
which are incurred to ensure that poor quality is not
produced.
Appraisal
 Those costs incurred to identify poor quality products
after they occur but before shipment to customers. e.g.
Inspection activity.
Dr. Zargari
Quality Costs
Internal Failure
 Those incurred during the production process.
 Include such items as machine downtime, poor
quality materials, scrap, and rework.
External Failure
 Those incurred after the product is shipped.
 External failure costs include returns and
allowances, warranty costs, and hidden costs of
customer dissatisfaction and lost market share.
Dr. Zargari
Benefits of TQM
 Greater customer loyalty:-
 Market share improvement:-
 Higher stock prices:
 Reduced service calls
 Higher prices
 Greater productivity
Dr. Zargari
QUALITY CONTROL
 QUALITY CONTROL HELPS ACHIEVE THE QUALITIES
OBJECTIVES OF THE PRODUCTION SYSTEM BY
KEEPING A CHECK ON ALL THESE PARTS OF A
PRODUCTION SYSTEM THAT MAY HAVE AN
IMPACT ON THE QUALITY OF PRODUCT.
Dr. Zargari
QUALITY CIRCLES
 QUALITY CIRCLES ARE SMALL GROUPS OF
EMPLOYEES WHO MEET REGURLARY FOR SOLVING
DIFFERENT PROBLEMS RELATED MAINLY WITH
COST QUALITY EFFICIENCY , EQUIPMENT, TOOLS ,
MORALE, PROCESS CONTROL,MISSED WORK,
SAFETY, LEARNING AND MAINTENANCE ETC.
Dr. Zargari
QUALITY CONTROL PROCESS
 PREPARATION OF POLICIES REGARDING QUALITY.
 FIXATION OF QUALITY STANDARED RELATING TO
MATERIALS AND PROCESS.
 DESIGNING THE PRODUCTIVE SYSTEM.
 INSPECTION AND CONTROL OF MATERIALS.
 PRODCTION OF GOODS AND SERVICES.
 INSPECTION OF THE FINALPRODUCT.
Dr. Zargari
OBJECTIVES OF QUALITY CONTROL
 INCREASED SALES VOLUME.
 INCREASED PROFIT.
 IMPROVING COMPANY IMAGE.
 IMPROVING THE PRODUCTION SYSTEM.
 BETTER PRECUREMENT OF MATERIALS.
 REDUCE THE COST OF INSPECTION AND LOSSES.
Dr. Zargari
ADVANTAGES OF QUALITY CONTROL
QUALITY CONTROL IS HELPFUL BOTH FOR PRODECER AND
CONTOMERRS.THE PRODUCERS WILL FIND THE WIDER
MARKETS IF GOODS ARE OF BETTER QULAITY.THE CUSTOMERS
FEEL SATISFIED BY THE USE OF QUALITY GOODS.
 CUSTOMERS SATISFACTION.
 QUALITY CONCIOUSNESS.
 JOB SATISFACTION TO WORKERS.
 REDUCTION IN INSPECTION COSTS AND SAVING IN WASTAGES SCRAP.
 BETTER UTILIZATION OF RESOURCES.
 REDUCTION IN PRODUCTION COST.
 INCREASE SALE.
 BETTER INDUSTRIAL RELATION.
Dr. Zargari
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”
total quality management

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total quality management

  • 1. TOTAL QUALITY MANAGEMENT SUBMITTED BY NEERAJ SHARMA ROLL NO 14240157002 M .PHIL (MANAGEMENT)
  • 2. Dr. Zargari INTRODUCTION TO TQM What is TQM? TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction. “ No doubt , humans are always deficient”
  • 3. Dr. Zargari The Three Quality Gurus  Deming: 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.
  • 4. Dr. Zargari 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.
  • 5. Dr. Zargari 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.
  • 6. Dr. Zargari Commonality of Themes of Quality Gurus  Inspection is never the answer to quality improvement, nor is “policing”.  Involvement of leadership and top management is essential to the necessary culture of commitment to quality.  A program for quality requires organization-wide efforts and long term commitment, accompanied by the necessary investment in training.  Quality is first and schedules are second.
  • 7. Dr. Zargari DIFINITION OF QUALITY  The concept and vocabulary of quality are elusive. Different people interpret quality differently. Few can define quality in measurable terms that can be proved operationalized. When asked what differentiates their product or service; The banker will answer” service” The healthcare worker will answer “quality health care” The hotel employee will answer “customer satisfaction” The manufacturer will simply answer “quality product”
  • 8. Dr. Zargari OBJECTIVES OF QUALITY  TO DETERMINE WHAT AND WHERE IMPROVEMENTS ARE CALLED.  TO ANALYZE HOW OTHER ORGANIZATIONS ACHIEVE THEIR HIGH PERFORMANCE LEVELS.  TO USE THIS INFORMATION TO IMPROVE PERFORMANCE
  • 9. Dr. Zargari 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
  • 10. Dr. Zargari Transcendental view  Those who hold the transcendental view would say “I can’t define it, but I know it when I see it”  Advertisers are fond of promoting products in these terms. “Quality is difficult to define or to operationalize. It thus becomes elusive when using the approach as basis for competitive advantage. Moreover, the functions of design, production and service may find it difficult to use the definition as a basis for quality management.”
  • 11. Dr. Zargari PRODUCT BASED  Quality is viewed as a quantifiable or measurable characteristic or attribute. For example durability or reliability can be measured and the engineer can design to that benchmark.  Quality is determined objectively.  Although this approach has many benefits, it has limitation as well. Where quality is based on individual taste or preference, the benchmark for measurement may be misleading.
  • 12. Dr. Zargari MANUFACTURING BASED  definitions are concerned primarily with engineering and manufacturing practices “conformance to requirements”. Requirements or specifications are established by design and any deviation implies a reduction in quality. The concept applies to services as well as product. Excellence in quality is not necessarily in the eye of the beholder but rather in the standards set by the organization.  This approach has the serious weakness. The consumer’s perception of quality is equated with conformance and hence is internally focused
  • 13. Dr. Zargari Value Based  It is defined in term of costs and prices as well as number of other attributes. Thus, the consumer’s purchased decision is based on quality at an acceptable price. This approach is reflected in the popular Consumer Reports magazine which ranks products and services based on two criteria: Quality and Value.  The highest quality is not usually the best value. That designation is assigned to the “best- buy” product or service.
  • 14. Dr. Zargari Characteristics of TQM Leader Total quality management involves a continuous focus on optimizing quality, both of processes and products. While perfection is impossible, monitoring and improving organizational strategies can make a company more attractive to consumers, providing a competitive edge. As with any organizational initiative, strong leadership can help ensure success.
  • 15. Dr. Zargari TQM Leader  CLEAR GOAL-SETTING:- excellent leaders establish clear, well-defined objectives for quality improvement. For example, improving customer service might be too general a goal. Instead, an effective leader might divide customer service process into various categories and then define measurable and objective quality benchmarks for each category.
  • 16. Dr. Zargari TQM Leader  COMMUNICATIVE:-Excellent leaders must have the communication skills to give marching orders in ways that inspire and motivate rather than discourage followers. Leaders also should play a strong role in drafting new policy initiatives and guideline changes, which will help ensure the organization’s new focus on quality has the best chance of succeeding.
  • 17. Dr. Zargari TQM Leader  AGGRESSIVE:-Excellent leaders know that total quality management is essentially a continuous overhaul, and no process is so good that it can’t be improved. For that reason, excellent leaders must aggressively pursue change, circumventing or eliminating any institutional barriers that hinder organizational growth and development. Stubborn managers who resist change might need replacing, for example, and a strong leader won't hesitate to fire such people when necessary.
  • 18. Dr. Zargari TQM Leader  DEEPLY COMMITTED TO CHANGE:- Total quality management doesn’t work if only a few departments of an organization focus on self- improvements. The entire organization must work together to make improvements at every stage, level and department. In other words, leaders must be committed enough to make changes throughout the entire organization, not just make improvements to a few small areas.
  • 19. Dr. Zargari TQM Leader  PERSONALLY INVOLVED:-Excellent leaders are in the thick of things, working alongside their followers to improve the organization. From designing training and education protocols to analyzing results of new initiatives, leaders must be personally involved to ensure high standards are upheld and to inspire followers to keep working hard. By acting as both a teacher and a role model, an effective leader inspires workers to achieve higher quality standards.
  • 20. Dr. Zargari INDICATORS FOR CUSTOMER SATISFACTION  Frontline empowerment.  Excellent hiring, training, attitude and morale for front line employees.  Proactive customer service system.  Quality requirements of market segment.  Commitment to customers.  Understanding customer requirements.
  • 21. Dr. Zargari COST OF QUALITY Higher quality means higher cost.  Quality attributes such as performance and features cost more in terms of labor, material, design and other costly resources.  The additional benefits from improved quality do not compensate for additional expense. The cost of improving quality is less than the resulting savings.  The saving result from less rework, scrap and other direct expenses related defects.  This is said to account for the focus on continuous improvement of processes in Japanese firms.
  • 22. Dr. Zargari Quality Costs  Costs include not only those that are direct, but also those resulting from lost customers, lost market share and the many hidden costs and foregone opportunities not identified by modern cost accounting systems.
  • 23. Dr. Zargari Quality Costs Types of Quality Costs The cost of quality is generally classified into four categories 1. Cost of Prevention 2. Cost of Appraisal 3. Cost of Internal Failure 4. Cost of External Failure
  • 24. Dr. Zargari Quality Costs Cost of Prevention  Prevention costs include those activities which remove and prevent defects from occurring in the production process.  Included are such activities as quality planning, production reviews, training, and engineering analysis, which are incurred to ensure that poor quality is not produced. Appraisal  Those costs incurred to identify poor quality products after they occur but before shipment to customers. e.g. Inspection activity.
  • 25. Dr. Zargari Quality Costs Internal Failure  Those incurred during the production process.  Include such items as machine downtime, poor quality materials, scrap, and rework. External Failure  Those incurred after the product is shipped.  External failure costs include returns and allowances, warranty costs, and hidden costs of customer dissatisfaction and lost market share.
  • 26. Dr. Zargari Benefits of TQM  Greater customer loyalty:-  Market share improvement:-  Higher stock prices:  Reduced service calls  Higher prices  Greater productivity
  • 27. Dr. Zargari QUALITY CONTROL  QUALITY CONTROL HELPS ACHIEVE THE QUALITIES OBJECTIVES OF THE PRODUCTION SYSTEM BY KEEPING A CHECK ON ALL THESE PARTS OF A PRODUCTION SYSTEM THAT MAY HAVE AN IMPACT ON THE QUALITY OF PRODUCT.
  • 28. Dr. Zargari QUALITY CIRCLES  QUALITY CIRCLES ARE SMALL GROUPS OF EMPLOYEES WHO MEET REGURLARY FOR SOLVING DIFFERENT PROBLEMS RELATED MAINLY WITH COST QUALITY EFFICIENCY , EQUIPMENT, TOOLS , MORALE, PROCESS CONTROL,MISSED WORK, SAFETY, LEARNING AND MAINTENANCE ETC.
  • 29. Dr. Zargari QUALITY CONTROL PROCESS  PREPARATION OF POLICIES REGARDING QUALITY.  FIXATION OF QUALITY STANDARED RELATING TO MATERIALS AND PROCESS.  DESIGNING THE PRODUCTIVE SYSTEM.  INSPECTION AND CONTROL OF MATERIALS.  PRODCTION OF GOODS AND SERVICES.  INSPECTION OF THE FINALPRODUCT.
  • 30. Dr. Zargari OBJECTIVES OF QUALITY CONTROL  INCREASED SALES VOLUME.  INCREASED PROFIT.  IMPROVING COMPANY IMAGE.  IMPROVING THE PRODUCTION SYSTEM.  BETTER PRECUREMENT OF MATERIALS.  REDUCE THE COST OF INSPECTION AND LOSSES.
  • 31. Dr. Zargari ADVANTAGES OF QUALITY CONTROL QUALITY CONTROL IS HELPFUL BOTH FOR PRODECER AND CONTOMERRS.THE PRODUCERS WILL FIND THE WIDER MARKETS IF GOODS ARE OF BETTER QULAITY.THE CUSTOMERS FEEL SATISFIED BY THE USE OF QUALITY GOODS.  CUSTOMERS SATISFACTION.  QUALITY CONCIOUSNESS.  JOB SATISFACTION TO WORKERS.  REDUCTION IN INSPECTION COSTS AND SAVING IN WASTAGES SCRAP.  BETTER UTILIZATION OF RESOURCES.  REDUCTION IN PRODUCTION COST.  INCREASE SALE.  BETTER INDUSTRIAL RELATION.
  • 32. Dr. Zargari 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”