This document presents information on Total Quality Management (TQM). TQM is a management framework that focuses on continuous improvement and delivering customer satisfaction through efforts across the entire organization. The key principles of TQM include defining processes, monitoring performance data, and using that data to drive process improvements. TQM aims to eliminate waste and increase efficiencies by ensuring processes produce quality products the first time. Examples provided are Toyota, which was awarded a quality prize for its TQM efforts, and Tata Steel, which reported $150 million in bottom line impact from its TQM initiatives.

1. MAHARSHI DAYANAND UNIVERSITY
PRESENTATION
ON
TOTAL QUALITY MANAGEMENT
Submitted By –
Rupesh
(21760)

2. Total Quality Management
 Total Quality Management (TQM) is a management framework based on the belief
that an organization can build long-term success by having all its members, from
low-level workers to its highest ranking executives, focus on improving quality and,
thus, delivering customer satisfaction.
 TQM requires organizations to focus on continuous improvement, or kaizen. It
focuses on process improvements over the long term, rather than simply
emphasizing short-term financial gains.

3. Principles of TQM
 TQM prescribes a series of ways for organizations to accomplish this, with the
pathway to successful continuous improvement centered on the use of strategy,
data and effective communication to install a discipline of quality into the
organization's culture and processes.
 More specifically, TQM puts a spotlight on the processes that organizations use to
produce their products, and it calls for organizations to define those processes,
continuously monitor and measure their performance, and use that performance
data to drive improvements. Furthermore, it calls for all employees, as well as
all organizational departments, to be part of this process.
 TQM's objectives are to eliminate waste and increase efficiencies by ensuring
that the production process of the organization's product (or service) is done
right the first time.
 This management framework was initially applied to companies in the
manufacturing sector, but, over the decades, organizations in other sectors have
adopted it, as well.

5. Understanding Total Quality Management
(TQM) :
 Total quality management is a structured approach to overall organizational
management. The focus of the process is to improve the quality of an
organization's outputs, including goods and services, through the continual
improvement of internal practices. The standards set as part of the TQM
approach can reflect both internal priorities and any industry standards
currently in place.
 Industry standards can be defined at multiple levels and may include
adherence to various laws and regulations governing the operation of a
particular business. Industry standards can also include the production of
items to an understood norm, even if the norm is not backed by official
regulations.

6. What Does Total Quality Management Do?
 TQM oversees all activities and tasks needed to maintain a desired level of
excellence within a business and its operations. This includes the
determination of a quality policy, creating and implementing quality planning
and assurance, and quality control and quality improvement measures.
 Various iterations of TQM have been developed, each with its own set of
principles. Still, certain core elements persist. These include, among others:
Good leadership; a focus on quality; putting the customer first; error-
correction and improvement as an on-going process; and job training

7. Importance of TQM
 TQM can have an important and beneficial effect on employee and
organizational development. By having all employees focus on quality
management and continuous improvement, companies can establish and uphold
cultural values that create long-term success to both customers and the
organization itself. TQM’s focus on quality helps identify skills deficiencies in
employees, along with the necessary training, education or mentoring to
address those deficiencies.
 With a focus on teamwork, TQM leads to the creation of cross-functional teams
and knowledge sharing. The increased communication and coordination across
disparate groups deepens institutional knowledge and gives companies more
flexibility in deploying personnel.

9. Benefits of TQM
 Less product defects. One of the principles of TQM is that creation of
products and services is done right the first time. This means that products
ship with fewer defects, which reduce product recalls, future customer
support overhead and product fixes.
 Satisfied customers. High-quality products that meet customers’ needs
results in higher customer satisfaction. High customer satisfaction, in turn,
can lead to increased market share, revenue growth via upsell and word-of-
mouth marketing initiated by customers.
 Lower costs. As a result of less product defects, companies save cost in
customer support, product replacements, field service and the creation of
product fixes. The cost savings flow to the bottom line, creating higher profit
margins.
 Well-defined cultural values. Organizations that practice TQM develop and
nurture core values around quality management and continuous
improvement. The TQM mindset pervades across all aspects of an
organization, from hiring to internal processes to product development.

10. Examples of TQM
 Automobile manufacturer Toyota is one example of TQM. The adoption of TQM and
kaizen at Toyota led to higher product and work quality at all levels of the
organization. Toyota adopted a related practice called statistical quality control
(SQC) in 1949. In 1951, Toyota launched the Creative Idea Suggestion System, which
was based on a suggestion system used at Ford.
 In 1965, Toyota was awarded the Deming Application Prize for major advances in
quality improvement. In 1994, the "Toyota Group Executive TQM Training Course"
was established, providing TQM training for new executives. Toyota's TQM initiatives
continue to the current day. In 2011, Toyota announced that more than 40 million
suggestions (to date) were generated by the Creative Idea Suggestion System.
 Another example of TQM is Tata Steel, a steel-making company based in India and a
subsidiary of the Tata Group. Tata Steel adopted TQM in the 1980s. The company
was awarded the Deming Application Prize in 2008. Tata Steel used TQM
methodologies to gain a deep understanding of customers. They sought to ensure
value creation in a system that covered customers and suppliers.
 In 2008, Tata Steel created the Performance Improvement Committee (PIC) to drive
continuous performance improvement. Performance Improvement (PI) Groups were
established for iron making, steel making, flat rolling, long rolling, maintenance and
more.
 As part of their 2008-2009 annual report, Tata Steel reported that their TQM
initiatives resulted in a $150MM bottom line impact on their business.