This document provides an introduction to total quality management. It discusses the historical development of quality management from focusing on inspection and correction to viewing quality as the responsibility of the entire organization. Total quality management aims to meet and exceed customer expectations by empowering all employees to identify and solve quality problems through an integrated effort using teams. Quality circles are one type of team composed of volunteers who work to solve quality problems. Total quality management differs from conventional quality management in empowering employees rather than reprimanding them for identifying issues.

1. INTRODUCTION TO TOTAL
QUALITY MANAGEMENT
Lesson 5

2. CONCEPT
The standard of something as measured against other things of a
similar kind; the degree of excellence of something.
1. Quality Management (QM)
2. Quality Assurance (QA)
3. Quality Control (QC)

3. HISTORICAL REVIEW
In the 1940s, during World War II, quality became more statistical in
nature.
In the 1960s, with the help of so-called “quality gurus,” the concept
took on a broader meaning. Quality began to be viewed as something
that encompassed the entire organization.
The meaning of quality for businesses changed dramatically in the
late 1970s. Before then quality was still viewed as something that
needed to be inspected and corrected.
The 1970s and 1980s many U.S. industries lost market share to
foreign competition.
ince the 1970s, competition based on quality has grown in
importance and has generated tremendous interest, concern, and

4. FRAMEWORK
Meeting and exceeding customer expectations by involving everyone
in the organization through an integrated effort. Total quality
management (TQM) is an integrated organizational effort designed to
improve quality at every level.
PHILOSOPHY
Empower all employees to seek out quality problems and correct
them.
TEAMS
The contributions of teams are considered vital to the success of the
company.
Teams vary in their degree of structure and formality, and different
types of teams solve different types of problems.

5. QUALITY CIRCLE TEAM
One of the most common types of teams is the quality circle, a team
of volunteer production employees and their supervisors whose
purpose is to solve quality problems. The circle is usually composed
of eight to ten members, and decisions are made through group
consensus. The teams usually meet weekly during work hours in a
place designated for this purpose. They follow a pre-set process for
analyzing and solving quality problems

6. TQM VS CONVENTIONAL QUALITY
MANAGEMENT
Empower all employees to
seek out quality problems and
correct them.
Employees were afraid to
identify problems for fear that
they would be reprimanded.

7. BENEFITS AND COSTS OF TQM
Appraisal costs
•Incurred in the process of
uncovering defects.
•Include the cost of quality
inspections, product testing, and
performing audits.
•The costs of worker time spent
measuring quality and the cost of
equipment used for quality
appraisal.
Internal failure costs
•Discovering poor product quality
before the product reaches the
customer site.
•Rework, which is the cost of
correcting the defective item.
•The item is so defective that it
cannot be corrected and must be
thrown away.

8. BARRIERS TO TQM
IMPLEMENTATION
Other decisions within operations management.
Dictates how all other areas of operations management will support
this commitment.
Needs to incorporate customer-defined quality.
Job design is affected.
Supply chain management is affected.