3. CONCEPT OF TOTAL QUALITY
MANAGEMENT
• While there are some differences in total quality management principles and
their approaches to implementation, the basic concept of total quality
management is common ( Shortell et al, 1995).Continuous improvement of
quality Foremost among TQM concepts is the idea of continuous improvement
of quality.
• The underlying aim of total quality management is to improve the quality of
products and services in any organization. By so doing, productivity,
employability and customer service are improved. When an organization
focuses on this concept of total quality management, they are able to achieve
the best . Focus on the customer Another TQM concept is a central focus on
the customer. The customers are the internal and external recipients of an
organization’s products.
4. • Therefore, the needs of customers and their desires define quality for the organization. In
turn, the organization uses this ‘definition’ to meet and exceed the customer’s
expectations . Operations improvement Furthermore, systematic improvement of
operations is another concept of total quality management. Every work done in an
organization follows a chain or process. These processes account for 80-85% of the
quality of work and productivity of employees. This concept establishes that work
processes should be studied, through individuals or teams, to identify lapses or
complexities.
• As such, solutions can be proffered to prevent them from occurring in the future, the cost
will be reduced and quality achieved . Humana resources The concept of human
resources development is one of the concepts of total quality management.
Organizations that employ total quality management principles are committed to
employee learning and development. These principles require that management trust
that well-trained staff can do the jobs assigned to them properly. In addition, human
resource development includes providing the training required in a quality improvement
work environment as well as extensive education to help employees keep up-to-date on
their jobs.
5. WHAT IS TOTAL QUALITY ?
• Total – made up of the whole
• Quality – degree of excellence a product or service provides
• In combination it is the overall degree of excellence and how a product
or service all over performs
7. WHAT IS TOTAL QUALITY MANAGEMENT (TQM)?
• A core definition of total quality management (TQM) describes a
management approach to long-term success through customer
satisfaction. In aTQM effort, all members of an organization participate
in improving processes, products, services, and the culture in which they
work.
• Total Quality ManagementTQM, also known as total productive
maintenance, describes a management approach to long-term success
through customer satisfaction. In aTQM effort, all members of an
organization participate in improving processes, products, services, and
the culture in which they work.
8. • Total quality management (TQM) consists of
organization-wide efforts to install and make
permanent climate in which an organization
continuously improves its ability to deliver
high-quality products and services to
customers. While there is no widely agreed-
upon approach, TQM efforts typically draw
heavily on the previously developed tools and
techniques of quality control. TQM enjoyed
widespread attention during the late 1980s
and early 1990s before being overshadowed
by ISO 9000.
9. OBJECTIVES OF TOTAL QUALITY MANAGEMENT
• Total customer satisfaction.
• Total range of products and services.
• Addressing all aspects of dimensions of quality.
• Addressing the quality aspect in everything – products, services, processes,
people, resources and interactions.
• Satisfying all customers – internal as well as external
• Addressing the total organizational issue of retaining customers and
Improving profits, as well as generating new business for the future.
• Involving everyone in the organization in the attainment of the said objective.
• Demanding total commitment from all in the organization towards the
achievement of the objective.
10. Total Quality Management (TQM) Components
• TQM has four basic components
1. Put customers first
2. Make Continuous Improvement
3. Aim for zero defects
4. Training and development
11. Put customers first
• A quality product or service satisfies customer’s needs and expectations.
Whether a product or service is of high or low quality, will be decided by how
it made the consumer feel and whether consumer expectations were
satisfied or exceeded. If customers are not put first, then customer
expectations will be difficult to satisfy and consequently quality will not be
achieved.
12. Make Continuous Improvement
• There are no limits to continuous improvement. aTQM organisation will
continuously strive to improve their product/service and increase the quality
standards. ATQM organisation will also view change positively whether the
change involves a process change or a change in customer needs and
expectations; this is because changes will enable the organisation to
develop and explore quality.
13. Aim for Zero Defects
• Defects are expensive because they will lower the customer’s confidence in
the product.Also it is more expensive to rectify defects than it is to prevent
them occurring in the first place. Zero defects can be achieved through a
combination of quality assurance and quality control
14. Training and Development
• ATQM organisation employee will need to understand howTQM is to be
achieved or maintained and how they as an employee will ensure that the
organisation emulatesTQM. Unless each employee accepts and believes in
TQM it will be difficult for the organisation to practiceTQM.
15. Need and significance of total quality management
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
16. Benefits of Total quality management
The benefits of TQM include:
• 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.
17. Example 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.