This document provides an overview of total quality management (TQM). It begins with defining TQM as attaining customer satisfaction through continuous improvements across all areas of an organization. The main features of TQM are outlined as being customer-oriented, organization-wide, having a strategic focus, changing corporate culture, emphasizing process management, and continuous improvement. A total quality organization is defined as one that continuously satisfies customers efficiently by integrating its management, social, and technical systems. The document then discusses 10 fundamental principles of quality and the roles and responsibilities of top management in leading a TQM initiative.

1. PRESENTATION OUTLINE
1. Fundamentals of
Total Quality Management.
2. Total Quality Management Model.
3. Top Management’s Role in
Total Quality Management.
4. Strategic Quality Planning.
5. Quality Culture.

2. WHAT IS TOTAL QUALITY
MANAGEMENT?
Total Quality Management is
the systematic and integrated
approach of attaining customer
satisfaction at minimum cost
through continuous
improvements in all areas
of an organization’s
operations, products and
services.
 Ranjit Singh Malhi

3. MAIN FEATURES OF
TOTAL QUALITY MANAGEMENT
1. Customer-oriented.
2. Organization-wide.
3. Strategic Focus.
4. Change in Corporate Culture.
5. Process Management.
6. Continuous Improvement.

4. WHAT IS A TOTAL QUALITY
ORGANIZATION?
A Total Quality Organization is one
which continuously delights its
customers in an efficient manner
by integrating its various systems,
particularly the management
system, social system (people)
and the technical system (work
processes), into a functional whole.
 Ranjit Singh Malhi

5. 10 FUNDAMENTAL
PRINCIPLES OF QUALITY
1. Quality improvement begins
with top management’s visible
commitment and explicit involvement.
2. Quality is defined and judged by
the customers.
3. Quality involves doing the right things
right, first time, every time.

6. 4. The ultimate creators of quality
products and services are people.
5. A Culture of Quality is necessary
for creating and sustaining a work
environment that is conducive to
long-lasting quality improvement.
6. The system for improving quality is
prevention of errors and defects,
not inspection.

7. 7. Quality is process improvement and
Management by Fact.
8. TQM organizations are essentially
learning organizations.
9. Quality is teamwork.
10. Quality improvement is a
never-ending process.

8. THE RACE TO
QUALITY IMPROVEMENT
To compete and win, we must redouble
our efforts – not only in the quality of
our goods and services, but in the
quality of our thinking, in the quality
of our response to customers, in the
quality of our decision-making, in the
quality of everything we do.
 E. S. Woolard
Ex-CEO
E.I. DuPont

9. IS YOUR ORGANIZATION
QUALITY-DRIVEN?
1. Do you know clearly what are your
customers’ key requirements?
2. Are your customers’ requirements
being met?
3. Do you have a clear mission and
verifiable corporate quality goals?

10. 4. Do you have challenging and
verifiable performance standards?
5. Are fellow employees treated as
customers?
6. Do you measure performance?
7. Are recognition and reward
systems based on quality work
or job performance?

11. 8. Are your frontline staff empowered
to serve customers well?
9. Is your corporate culture conducive
to continuous quality improvement?
10. Are your employees
provided with adequate
and relevant training?

12. TQM : THE SYSTEM MODEL
1. Social System

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Corporate culture
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Teamwork
Personal Quality
Employee participation and
development
Empowerment
Reward and recognition system
Communication

13. 2. Technical System

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Technology
Work processes
Decision-making processes
Job definition and responsibilities
3. Management System

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Strategic quality planning
Leadership
Policies
Organizational structure
Managerial control

14. TOTAL QUALITY MANAGEMENT MODEL
Process Improvement
•
•
•
•
Quality
Management
System
Strategic Quality Management
SWOT Analysis
• Corporate Goals
Customer Survey
• Corporate Values
• Departmental Purpose
Benchmarking
Analysis
Mission
Statement
• ISO 9000
• Process
Reengineering
Top Management's
Visible Commitment
•
•
•
•
Corporate Quality Council
Allocating Resources for QIPs
Monitoring Quality
Role Modelling
• Technology
• Quality Improvement
• Personal Quality
• Empowerment
• Training
• Teamwork
Projects
• Measurement &
Human Resource
Management
• Open & Honest
Communication
Evaluation
• Corrective Action
• Reward & Recognition
System
Continuous Improvement

15. TOTAL QUALITY MANAGEMENT MODEL
CUSTOMER-ORIENTED
SELF-RENEWAL (Physical, Mental, Spiritual, Social)
C
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GETTING ORGANIZED
• Top Management’s Commitment
• Organizational Quality Awareness
• Quality Management Structure
•
•
•
•
ORGANIZATIONAL DIAGNOSIS
SWOT Analysis
Key Business Processes
Benchmarking
Quality Improvement Opportunities
ORGANIZATIONAL QUALITY PLAN
• Mission Statement & Quality Goals
• Strategies & Quality Indicators
• Quality Improvement Projects
IMPLEMENTATION
• Process Management
• Coordination
• Communication
REVIEW PROGRESS
• Measurement
• Reporting Results
• Corrective Action
QUALITY CULTURE
T
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&
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16. IMPORTANCE OF
TOTAL QUALITY LEADERSHIP
1. Management is responsible for
80-85% of all quality problems.
2. Actions of employees greatly depend
on top management’s attitude towards
quality.
3. Top management determines the
various systems in which people work.

17. FIVE PRACTICES OF
EXEMPLARY LEADERSHIP
1. Model the Way


Find your voice by clarifying your
personal values
Set the example by aligning actions
with shared values
2. Inspire a Shared Vision


Envision the future by imagining exciting
and ennobling possibilities
Enlist others in a common vision by
appealing to shared aspirations

18. 3. Challenge the Process
 Search for opportunities by seeking
innovative ways to change, grow, and
improve
 Experiment and take risks by
constantly generating small wins and
learning from mistakes
4. Enable Others to Act

Foster collaboration by promoting
cooperative goals and building trust

Strengthen others by sharing power
and discretion

19. 5. Encourage the Heart

Recognize contributions by
showing appreciation for
individual excellence

Celebrate the values and victories
by creating a spirit of community
 J. M. Kouzes & B. Z. Posner

20. TOP MANAGEMENT’S ROLE IN TQM
1. Top Management’s Visible Commitment

Form high-powered steering committee
to lead the quality initiative

Establish quality improvement as
a major corporate goal


Benchmark world-class quality companies

Proper quality management structure
Conceive and communicate the
strategic quality plan

21. 
Allocate adequate resources for quality
improvement projects

Undergo quality training and cascade
it down the organization



Walk the talk

Federal Express, Rank Xerox, Honda
Motor Company
Monitor quality performance
Recognize and reward superior quality
performance

22. 2. Strategic Quality Planning

SWOT Analysis

Clear, compelling and shared vision

Specific and verifiable key
quality goals

Strategies for attaining
vision and quality goals


Improving key business processes
General Electric, Sony, Philip Morris

23. 3. Customer-Driven Organization

Undertake market research (opinion
surveys and focus groups) to
determine customers’ requirements

Prioritize needs and expectations
of customers

Create customer-friendly and
hassle-free service delivery systems

24. 
Act quickly on customers’
complaints

Continuously listen to
customers

Nordstrom, Rubbermaid, Walt
Disney, Marriott

25. 4. Excellent Work Processes
 Identify and improve major
work processes
 Eliminate unnecessary work
procedures
 Build quality into work processes
 3M, Dell Computer, Motorola,
Duke Power

26. 5. Quality Culture
 Customer-focus
 Doing the right things right the
first time and every time
 Open and honest communication
 Teamwork
 Basing rewards on performance
 Procter & Gamble, Hewlett-Packard,
General Electric, Nordstrom

27. 6. Teamwork
 Break down departmental
barriers
 Establish cross-functional quality
improvement teams
 Quality Circles
 Ford, Saturn Corporation, General
Electric, Boeing, 3M

28. 7. Motivating and Empowering People
 Hire the right people
 Provide relevant and adequate training
 Encourage employee participation
(Quality Circles and Quality
Improvement Teams)
 Push decision making to the lowest
practical level
 Employee suggestion schemes

29.  Challenging jobs
 Regard employees as internal customers
 Provide specific and timely performance
feedback
 Federal Express, Dana Corporation,
Toyota, Milliken, General Electric,
Wal-Mart, Johnson & Johnson

30. 8.
Performance Management System
 Establish customer-oriented,
challenging and verifiable
performance standards
 Mutually agreed upon by
management and employees
 Measure performance
 Take corrective action
 General Electric, Federal Express,
Motorola

31. 9. Rewards and Recognition
 Clear recognition and
criteria
 Link rewards directly with
performance
 Catch people doing things right
 Recognize both individual and
team achievements
reward

32.  Monetary benefits
(bonuses, pay increase,
sharing)
profit
 Non-monetary recognition
(congratulatory notes, mementos,
special lunches or dinners)
 Exxon Chemicals Ltd. UK,
Rank Xerox

33. 10. Learning Organization

Training and retraining

Start with senior management and
cascade down the organization

Encourage risk-taking and toleration
of mistakes

Promote rapid sharing of information

Federal Express, Singapore Airlines,
Motorola

34. 11. Being Innovative, Responsive and
Adaptive

Anticipate and adapt quickly
to changing situations

Encourage employees to challenge
the status quo

Treat information as the main
strategic advantage

Southwest Airlines, IBM, 3M, Samsung

35. 12. Modelling the Way

Honest, competent and inspiring

Walk your talk

Open to constructive
criticism

Agent of change

Lifelong learner

Herb Kelleher, Sam Walton,
Jack Welch

36. STRATEGIC QUALITY PLANNING

Organizational Vision and
Mission Statement

Key Quality Goals

Strategies for attaining
Vision and Quality Goals

Serving customers’ real needs

37. EXAMPLE OF AN
EFFECTIVE VISION STATEMENT
McDonald’s vision is to be the
world’s best quick service restaurant
experience. Being the best means
providing outstanding quality,
service, cleanliness, and value, so
that we make every customer in
every restaurant smile.
 McDonald

38. EXAMPLE OF AN
EFFECTIVE VISION STATEMENT
Our vision is to be earth’s most
customer centric company; to
build a place where people can
come to find and discover
anything they might want to buy
online.
 Amazon

39. EXAMPLES OF MISSION STATEMENTS
Our mission is to provide any
customer a means of moving people
and things up, down, and sideways
over short distances with higher
reliability than any similar enterprise
in the world.

Otis Elevator
To deliver a high-quality
pizza, hot, within 30 minutes,
at a fair price.

Domino’s Pizza

40. WHAT IS A QUALITY CULTURE?
A Quality Culture is a system
of shared values, beliefs and
norms that are conducive for
creating a Total Quality
Organization.

41. CORE VALUES OF
A QUALITY CULTURE
 Customer focus
 Doing the right things right the
first time
 Open and honest communication
 Teamwork
 Employee involvement
and empowerment

42.  Creative and fact-based problem
solving
 Continuous improvement
 Building quality into work processes
 Basing rewards and promotions
on quality work
 Responding positively to change

43. STEPS IN CREATING AND
SUSTAINING A QUALITY CULTURE
1. Recognizing the need for change
 Compelling reasons for
culture change
 Broad desired outcomes
 Leaders should create a
sense of urgency
 Formulate a compelling and
clear organizational vision

44. 2. Diagnosing existing
organizational culture
 How is quality viewed?
 Current values, beliefs and
norms to be retained
 Current values, beliefs and
norms to be changed
 Involve all stakeholder groups
(managers, employees, customers)

45. 3. Determining the desired culture which
supports organizational vision and
strategy
 Specify acceptable and unacceptable
behaviours
 Close gaps between current and
desired organizational culture
 Ensure new culture is aligned
with organizational vision and
strategy

46. 4. Communicating the desired culture
to all organizational members
 Few and compelling messages
 Centred upon organizational
vision, goals and core values
5. Modelling of desired behaviour
by leaders
 Leaders model desired behaviour
in what they say and do

47. 6. Conducting appropriate training
to imbibe new culture
 Start with top management and
cascade down the organization
 Related to actual work performed
by employees and desired culture
7. Reinforcing the desired
behaviour
 Recognition and reward
systems

48. 8. Evaluating progress towards
desired culture
 Continually monitor and evaluate
cultural change efforts
 Take corrective action
(if necessary)