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Total Quality
Management

       Total Quality
       Management
       and Continuous
       Improvement


       Total Quality Management
Why TQM?
Ford Motor Company had operating losses
 of $3.3 billion between 1980 and 1982.
Xerox market share dropped from 93% in
 1971 to 40% in 1981.
Attention to quality was seen as a way to
 combat the competition.



              Total Quality Management
TQM: A “Buzzword” Losing
Popularity
   For many companies, the term TQM is
    associated with corporate programs (mid
    1980s ~ early 1990s) aimed at implementing
    employee teams and statistical process
    control.
   Unfortunately, many companies were
    dissatisfied with the perceived results of these
    programs, concluding TQM does not work.

    Question: Why were they dissatisfied?
              Were they justified?
                    Total Quality Management
TQM
   Total - made up of the whole
   Quality - degree of excellence a product
    or service provides
   Management - act, art or manner of
    planning, controlling, directing,….

Therefore, TQM is the art of managing
 the whole to achieve excellence.
                       excellence
                 Total Quality Management
What does TQM mean?
Total Quality Management means that
the organization's culture is defined by
and supports the constant attainment of
customer satisfaction through an
integrated system of tools, techniques,
and training. This involves the
continuous improvement of
organizational processes, resulting in
high quality products and services.
             Total Quality Management
What’s the goal of TQM?


“Do the right things right the first
 time, every time.”




              Total Quality Management
Another way to put it
   At it’s simplest, TQM is all managers
    leading and facilitating all contributors in
    everyone’s two main objectives:
    (1) total client satisfaction through
    quality products and services; and
    (2) continuous improvements to
    processes, systems, people, suppliers,
    partners, products, and services.
                  Total Quality Management
Productivity and TQM
   Traditional view:
    •   Quality cannot be improved without
        significant losses in productivity.
   TQM view:
    •   Improved quality leads to improved
        productivity.




                    Total Quality Management
Basic Tenets of TQM
   1. The customer makes the ultimate
    determination of quality.
   2. Top management must provide leadership
    and support for all quality initiatives.
   3. Preventing variability is the key to
    producing high quality.
   4. Quality goals are a moving target, thereby
    requiring a commitment toward continuous
    improvement.
   5. Improving quality requires the
    establishment of effective metrics. We must
    speak with data and facts not just opinions.
                   Total Quality Management
The three aspects of TQM

 Counting   Tools, techniques, and training in their
            use for analyzing, understanding, and
            solving quality problems

Customers     Quality for the customer as a
              driving force and central concern.


  Culture   Shared values and beliefs, expressed
            by leaders, that define and support
            quality.

            Total Quality Management
Total Quality Management
and Continuous Improvement
   TQM is the management process used to
    make continuous improvements to all
    functions.
   TQM represents an ongoing, continuous
    commitment to improvement.
   The foundation of total quality is a
    management philosophy that supports
    meeting customer requirements through
    continuous improvement.
                Total Quality Management
Continuous Improvement versus
Traditional Approach
       Traditional Approach                Continuous Improvement
   Market-share focus               Customer focus
   Individuals                      Cross-functional teams
   Focus on ‘who” and “why”         Focus on “what” and “how”
   Short-term focus                 Long-term focus
   Status quo focus                 Continuous improvement
   Product focus                    Process improvement
   Innovation                        focus
   Fire fighting
                                     Incremental improvements
                                     Problem solving


                        Total Quality Management
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.
   “All departments of the company must strive to
    improve the quality of their operations.”
                      Total Quality Management
Value-based Approach
   Manufacturing                     Service Dimensions
    Dimensions                         •   Reliability
    •   Performance                    •   Responsiveness
    •   Features                       •   Assurance
    •   Reliability                    •   Empathy
    •   Conformance                    •   Tangibles
    •   Durability
    •   Serviceability
    •   Aesthetics
    •   Perceived quality
                      Total Quality Management
The TQM System
Objective                       Continuous
                               Improvement




Principles    Customer       Process            Total
               Focus       Improvement       Involvement

                              Leadership
 Elements    Education and Training  Supportive structure
             Communications       Reward and recognition
                             Measurement




                      Total Quality Management

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Tqmv2

  • 1. Total Quality Management Total Quality Management and Continuous Improvement Total Quality Management
  • 2. Why TQM? Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition. Total Quality Management
  • 3. TQM: A “Buzzword” Losing Popularity  For many companies, the term TQM is associated with corporate programs (mid 1980s ~ early 1990s) aimed at implementing employee teams and statistical process control.  Unfortunately, many companies were dissatisfied with the perceived results of these programs, concluding TQM does not work. Question: Why were they dissatisfied? Were they justified? Total Quality Management
  • 4. TQM  Total - made up of the whole  Quality - degree of excellence a product or service provides  Management - act, art or manner of planning, controlling, directing,…. Therefore, TQM is the art of managing the whole to achieve excellence. excellence Total Quality Management
  • 5. What does TQM mean? Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services. Total Quality Management
  • 6. What’s the goal of TQM? “Do the right things right the first time, every time.” Total Quality Management
  • 7. Another way to put it  At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives: (1) total client satisfaction through quality products and services; and (2) continuous improvements to processes, systems, people, suppliers, partners, products, and services. Total Quality Management
  • 8. Productivity and TQM  Traditional view: • Quality cannot be improved without significant losses in productivity.  TQM view: • Improved quality leads to improved productivity. Total Quality Management
  • 9. Basic Tenets of TQM  1. The customer makes the ultimate determination of quality.  2. Top management must provide leadership and support for all quality initiatives.  3. Preventing variability is the key to producing high quality.  4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement.  5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions. Total Quality Management
  • 10. The three aspects of TQM Counting Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Customers Quality for the customer as a driving force and central concern. Culture Shared values and beliefs, expressed by leaders, that define and support quality. Total Quality Management
  • 11. Total Quality Management and Continuous Improvement  TQM is the management process used to make continuous improvements to all functions.  TQM represents an ongoing, continuous commitment to improvement.  The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement. Total Quality Management
  • 12. Continuous Improvement versus Traditional Approach Traditional Approach Continuous Improvement  Market-share focus  Customer focus  Individuals  Cross-functional teams  Focus on ‘who” and “why”  Focus on “what” and “how”  Short-term focus  Long-term focus  Status quo focus  Continuous improvement  Product focus  Process improvement  Innovation focus  Fire fighting  Incremental improvements  Problem solving Total Quality Management
  • 13. 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.  “All departments of the company must strive to improve the quality of their operations.” Total Quality Management
  • 14. Value-based Approach  Manufacturing  Service Dimensions Dimensions • Reliability • Performance • Responsiveness • Features • Assurance • Reliability • Empathy • Conformance • Tangibles • Durability • Serviceability • Aesthetics • Perceived quality Total Quality Management
  • 15. The TQM System Objective Continuous Improvement Principles Customer Process Total Focus Improvement Involvement Leadership Elements Education and Training Supportive structure Communications Reward and recognition Measurement Total Quality Management

Editor's Notes

  1. 03/19/12