Total quality management TQM
What is Quality
• Quality of products or services are not
determined by producing companies.
• Determined by customers.
• It is customers perception of the degree to
which the product or service meets his/ her
• Need to know about
dimensions, determinants and costs of quality
to understand about the nature of quality.
Dimensions of product quality
• Performance - how well the product or service performs
customers intended use. Eg. Speed of the printer.
• Features- the special characteristics that appeal to
• Reliability – likely hood of break down
• Serviceability- speed, cost of repairs.
• Durability- length of time or amount of use before needing
to be replaced or repaired.
• Appearance – effect on human senses, the
look, feel, taste, smell, or sound.
• Customer service – treatment received before, during and
• Safety - how well product protect user before, during and
Determinants of quality
• Quality of design – Determine what its
customers wants after identifying the
• Quality capability of production processes.
• Quality of conformance
• Quality of customer service.
• Organization quality culture.
Costs of quality
• Costs associated with service and quality.
• Some costs associated with preventing poor
quality, some costs occur after poor quality
• Scrap and rework
• Defective products in hands of customers.
• Detecting defects
• Preventing defects.
Traditional quality management.
• Rigorous inspection system, discard bad
• But still bad products are produced.
• DO IT RIGHT THE FIRST TIME.
• Product of superior quality will come out and
inspection do not discard rather give feed
back on output.
• Again inspection is human error prone and
hence this way was abandoned.
Total quality management TQM
• Organisation structures, organisational climates, with
product quality programs becoming global leaders in
quality, and such efforts referred as TQM.
• Six sigma in motorola
• Xerox – leader ship through quality
• Intel – perfect design quality
• HP- Total quality control
• Objective is build an organization that produces
products and services that are considered best in class
by its customers.
• Means every piece of business done right at first time,
and every piece of business continue to improve.
Elements of TQM
Top management commitment and involvement .
Designs products for quality
Design production process for quality
Control production process for quality.
Developing supplier partnerships
Customer service, distribution, installation.
Building teams of empowered employees.
Bench marking and continuous improvement.
Quality product function
• System for identifying customer wants and
eliminating wasteful product features.
• Every possible customer expectation is listed.
• Expectation are broken into more and more
• Also involves a weighting of customer
demands and customer rating of product
functional characteristics compared to
• Aim to identify product characteristics that
Designing products for quality
• Designing for robustness – means it should work in all
• Designing for production – means minimum parts with less
complication, faciliating easier assembly.
• Designing for reliability- each part of a product is designed
for given level of component reliability,
• the probability that a type of part will not fail in a given
time period or no of trials under ordinary conditions of use.
• Measured by CR= 1-FR ( FR – Failure rate)
• FR = No of failures/ number tested.
• FRn = number of failures/ unit hours of operation.
• MTBF ( meantime between failures)
• MTBF = 1/ FRn or Unit hours of operation/ no of failures.
• Example automobile tyre with 20000 mile span , 1% fail
with in span , we call tyre has reliability level of 0.99
• When component parts are combined into product
, the combined reliability forms the basis of product or
system reliability (SR)
• When critical components those which can directly
cause products to fail are combined into product - SR
is product of individual CR.
• SR = CR1 x CR2 x CR3 x CR4 = 0.99 ^ 4.
how to increase the reliability of products.
• Overdesign – means enhancing the design to avoid
particular type of failure.
• Design amplification - means reduction of the number
of interacting components.
• Provide redundant components , components with low
reliability will have back up. Approached in electronic
Designing and controlling production processes.
• Production process is internal customer.
• Production variation can be obstacle in making
products that are acceptable to customers.
• Two types are controllable and uncontrollable.
• Controllable like machine malfunctions, bad
materials, incorrect work methods can be
reduced with diligence from workers and
• Uncontrollable like friction, vibration, chance
variation, other natural causes can be reduced by
redesigning or replacing existing production
• Production process ability to produce
products within the desired expectation of
• PCI ( PROCESS CAPABILITY INDEX) Is the
measure of process capability.
Developing supplier partnerships.
• Suppliers important aspects of TQM program.
• Ford had Q-I list ( quality interface list)
Customer service , distribution, installation.
• Packaging, shipping and installation must be included in
TQM because of poor product performance.
Building teams of empowered employee.
• Employee training, work teams, empowerment, quality at
source, and quality circles.
• Training at all levels from shop floor to board room.
• Mandatory that the management draw out and apply all
the ability and energy of their employees. Employees from
blue collar workers, office
workers, managers, engineers, scientists, form core
resource which is the power of achieving excellence in
superior product quality.
• Employees should come forward to accept responsibility.
• But managers should give authority to act.
Quality at source.
• Aim to put the production worker in the
drivers seat in controlling product quality.
• Every workers job becomes a quality control
station, identifying their own defects and
reworking them into non defectives and
correcting any causes of defects.
• Statistical quality techniques at work station
• Worker empowered to stop production line to
avoid producing defective parts.
• Workers and managers average around nine
memebrs are organised into quality circles.
• Small group of employees analyse their quality
problems, work to solve the problems and
implement programs to improve product quality.
• 1. assign product quality assignment to
• 2. can lead production worker more committed
• 3. QC person can work on the way which can
direct impact on quality than passing to some
• 4. it removes obstacle to co-operation between
QC D and production.
QC Circles features.
• QC circle volunteer to meet regularly
• to undertake work related product, to advance the
company, improve working conditions, and spur
mutual self development
• Often meet away from job , combine meetings with
social or atheletic activities.
• Tend to select their own projects for investigation and
depend on management for implementing
• Areas can be productivity, tool design, safety,
maintenance, enviroment protection.
• Membership is voluntary, no direct cash incentives.
• Members give reason as personal satisfaction and
recognition given at regional and national meetings.
BENCH MARKING AND CONTINUOUS
• Practice of establishing international standards of
performance by looking to how world class
companies run their businesses.
• Once bench mark is set plan should be developed
towards best practices, essential element of TQM
is set in motion that is continuous improvement.
• Accept modest beginnings, make small
incremental improvements towards excellence.
• Gradual changes avoid frustuation and
abondonment is avoided.
Quality management in services.
TQM in services is not with out difficulties.
Eg, determine the quality of flight attendant.
Standards don’t exist many times.
Rather customer set their own standards, comparing the
service they receive with service they wished to receive .
Another complicating factor is that perceived quality of
some services is affected by sorroundings .
Quiet, soft music,
• cleanliness of facilities,
• All the above factors can determine the
perceived quality of services more than the
actual quality of the service.
• Hospitality industry invest heavily in designing
and maintaining facilities.
• Services are labor intensive and they tend to
come in direct contact with customers, the
performance of service employees determines
in large part of quality of services.
Elements of quality program in services.
• 1. Customer surveys through questionnaire and
• 2. mystery shoppers. Employees pretend to customer
and monitor quality.
• 3. statistical control charts to monitor thins the amount
of time , taken to process customer checkin, billing,
• 4. Service recovery. Actions taken to resolve problems,
alter negative attitutes, and retain customers who are
dissatisfied with quality of service.
• examples are refunds for service provided, service
again free of charge, coupons of free service in future,
telephone calls from managers, letters of apology from
management and other free products.