A core definition of total quality management (TQM) describes a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.

1. TOTAL QUALITY MANAGEMENT & BUDGET
SUBMITTED BY: RAHUL PAL SUBMITTED TO: DR. HIMMAT SINGH CHAWRA
“TQM is the art of managing the whole to achieve excellence.”
Total- Made up of the whole.
Quality- Degree of excellence a product or service provides.
Management- Act, art or manner of planning, controlling, directing.
A Budget is a financial plan for a defined period of time, usually a year.

2. TOTAL QUALITY MANAGEMENT (TQM)
Definition: TQM has been defined as an integrated organization effort designed to improve quality at every
level.
“ The process to produce a perfect product by a series of measures require an organized effort by the entire
company to prevent or eliminate errors at every stage in production is called Total Quality Management
(TQM).”
 The Aim of TQM is “Prevention of defect rather than detection on defect.”
 TQM is very important for pharmaceutical industries to produce the better product and ensure the
maximum safety of health care system and also protect waste of money for both government and
individual customer.

3. PRINCIPLES OF TQM
1) Produce quality work the first time and every time.
2) Focus on the customer.
3) Have a strategic approach to improvement.
4) Improve continuously.
5) Encourage mutual respect and team work.
TQM mainly consists only three key element are, Focus on the customer, Employee Involvement and
Continuous improvement.

4. CATEGORIES OF TQM
 Total quality management ensures that every single employee is working towards the improvement of
work culture, process, services, systems and so ensure long term success.
 Total quality management can be divided into four categories:
 Plan
 Do
 Check
 Act
TQM categories are generally also referred to as PDCA cycle.

5. PLANNING PHASE DOING PHASE
 Planning is the most crucial phased to total
quality management.
 In this phase employees have to come up with
their problems and queries which need o be
addressed.
 Employees are required to do necessary
research and collect relevant data which would
help them find solutions to all the problems.
 In the doing phase, employees develop a
solution for the problems defined in planning
phase.
 Strategies are implemented to overcome the
challenges faced by employees.
 The effectiveness of solutions and strategies is
also measured in this stage.

6. CHECKING PHASE & ACTING PHASE
 Checking Phase: The stage where people actually do a comparison analysis of before and after data do
confirm the effectiveness of the processes and measure the results.
 Acting Phase: in this phase employees document their results and prepare themselves to address other
problems.

7. ADVANTAGES OF TQM
The advantages of implementing TQM are:
 Improvement Reputation: faults and problems are spotted and sorted quicker.
 Higher employee morale: workers are motivated by extra responsibility, team work and involvement in
decision of TQM
 Lower cost: decrease waste as fewer defective products and no need for separation.

8. RECENT APPROACHES
The main goal of TQM
“Do the right things right
the first time, every
time.”

9. BUDGET
 Budget is a written statement of planned activities of firm for a definite period of time.
 A budget is a financial plan for a defined period of time, usually a year for shown the data.
 Budget may also include-
 Sales volumes and revenues
 Resources quantities.
 Cost and expenses.
 Cash flows.

10. PURPOSE OF BUDGET
 To control resources.
 To communicate plans to various responsibility center managers.
 To motivate managers to strive to achieve budget goals.
 To evaluate the performance of managers.
 To provide visibility into the company’s performance.

11. TYPES OF BUDGET
 Sales Budget: An estimate of future sales, often broken down into both units and currency. It is used to
create industries sales goals.
 Production Budget: As estimate of the number of units that must be manufactured to meet the sales
goals. The production budget also estimates the various costs involved with manufacturing.
 Capital Budget: Used to determine whether an organization’s long-term investments such as new
machinery, replacement machinery, new plants and new products are worth pursuing.
 Revenue Budget: Consist of revenue receipts and the expenditure met from these revenues.

12. IMPORTANCE OF BUDGET
 Since budgeting allows you to create a spending plan for your money, it ensures that you
will always have enough money for the things you need and the things that are
important to you.
 Following a budget or spending plan will also keep you of debt or help you work your
way out of debt if you are currently in debt.

13. REFERENCE
 Total Quality Management by R.S. Nagarajan, A.A. Arivalangar, new age intranational publishers, 1st
edition, 2009, page no. 21.
 https://www.slideshare.net/hasibul34-524/total-quality-management-tqm-159683822
 https://www.slideshare.net/sayedasalma/budget-and-cost-control