Introduction to TQM

1. Total Quality
Management (TQM)
CHAPTER 1
I N T R O D U C T I O N T O T O T A L Q U A L I T Y M A N A G E M E N T

2. Total Quality Management (TQM)
What is Quality ?

3. Quality means different to different people
1. Customer-Based: Fitness for use, meeting customer expectations.
2. Manufacturing-Based: Conforming to design, specifications, or
requirements. Having no defects.
3. Product-Based: The product has something that other similar
products do not that adds value.
4. Value-Based: The product is the best combination of price and
features.
5. Transcendent: It is not clear what it is, but it is something good...
Definitions of Quality

4. Defining Quality
The Quality can be quantified as follows:
Q = (P / E),
Where, Q- Quality, P- Performance and E- Expectations
If Q is greater than 1 then the customer has a good feeling about the product or service. It should be
noted
that based on perception P is determined by the organization and E determined by the customer.
As per ISO 9000:2000, quality is defined as the degree to which a set of inherent characteristics
fulfill
requirements.
Degree means that quality can be used with adjectives such as poor, good and excellent.
Inherent is defined as existing in something, especially as a permanent characteristic. Characteristics
can be
quantitative or qualitative. Requirement is a need or expectation that is stated; generally implied by the
organization, its customers and other interested parties; or obligatory.

5. Dimensions of Quality
Dimension Meaning and Example
Performance Performance refers to a product's primary operating characteristics. For an
automobile, performance would include traits like acceleration, handling, cruising
speed, and comfort.
Features Secondary characteristics, added features, such as remote control
Conformance Meeting specifications or industry standards
Reliability Consistency of performance over time, average time for the unit to fail
Durability Useful life, includes repair
Service Resolution of problems and complaints, ease of repair
Response Human-to-human interface, such as courtesy of the dealer
Aesthetics Sensory characteristics, such as exterior finish
Reputation Past performance and other intangibles, such as being ranked first

6. Total Quality Management (TQM)
Quality means different to different people. There are five ways of looking at quality definitions
1. Transcendent Definition "Quality is neither mind nor matter, but a third entity independent of
the two…even through Quality cannot be defined, you know what it is."
2. Product-Based Definition: "Quality refers to the amounts of the unpriced attributes contained
in each unit of the priced attribute."
3. User-Based Definition: "Quality is fitness for use." (J.M. Juran, ed., Quality Control Handbook,
p2).
4. Manufacturing-Based Definition: "Quality [means] conformance to requirements." "Quality is
the degree to which a specific product conforms to a design or specification."
5. Value-Based Definition: "Quality means best for certain customer conditions. These conditions
are (a) the actual use and (b) the selling price of the product."

7. What is TQM?
•TQM is the enhancement to the traditional way of doing business.
•It is a proven technique to guarantee survival in the world-class competition.
•TQM is for the most part common sense.
•Analyzing three words (TQM), we have:
• Total—Made up of the whole
• Quality—Degree of excellence a product or service provides
• Management—Act, art, or manner of handling, controlling, directing, etc.
•Therefore, TQM is the art of managing the whole to achieve the excellence.

8. What is TQM? (Continued)
•TQM is defined as both philosophy and a set of guiding principles
that represents the foundation of a continuously improving
organization.
•It is the application of quantitative methods and human resources to
improve all the processes within an organization and exceed
customer needs now and in future.
•TQM integrates fundamental management techniques, existing
improvement efforts, and technical tools under disciplined approach.

9. Total Quality Management (TQM)
In trying to define TQM is it is well worth considering the relevance and meaning of the three
words in its title:
Total - The responsibility for achieving Quality rests with everyone a business no matter what
their function. It recognizes the necessity to develop processes across the business, that
together lead to the reliable delivery of exact, agreed customer requirements. This will achieve
the most competitive cost position and a higher return on investment.
Quality - The prime task of any business is to understand the needs of the customer, then
deliver the product or service at the agreed time, place and price, on every occasion. This will
retain current customers, assist in acquiring new ones and lead to a subsequent increase in
market share.
Management - Top management lead the drive to achieve quality for customers, by
communicating the business vision and values to all employees; ensuring the right business
processes are in place; introducing and maintaining a continuous improvement culture.

10. Basic Principles
The TQM programme is a continual activity that
must be entrenched as culture and requires the
following six basics principles and concepts knitted
by effective communication:
1. Top management Commitment- Leadership
2. Focus on customer- Customer Satisfaction
3. Effective involvement and utilization of entire
employee
4. Continuous improvement
5. Treating suppliers as partners
6. Establishing performance measures for the
processes

11. Post World War II
The Birth of Total Quality Management
The birth of the Total Quality Control in US was in direct response to a quality
revolution in Japan following WW-II as Japanese manufacturers converted from
Producing Military Goods for internal use to producing civilian goods for trade.
At first Japan had a widely held reputation for shoddy exports, and their goods
were shunned by international markets. This led Japanese organizations to
explore new ways of thinking about quality.
And from here starts the era of “Quality Gurus”!

12. The Era of Quality Gurus
There have been three groups of gurus since the 1940’s:
Early 1950’s: Americans who took the messages of quality to Japan
Late 1950’s: Japanese who developed new concepts in response to
the Americans
1970’s-1980’s: Western gurus who followed the Japanese industrial
success

13. The Americans who went to Japan
J. Edward Deming
Joseph M. Juran Armand V Feigenbaum

14. Joseph Juran
Juran is a founder of the Juran Institute in Wilton,
Connecticut. He promoted the concept known as Business
Process Quality, which is a technique of Cross-Functional
Quality Improvement.
He was invited to Japan in 1954 by the Union of Japanese
Scientists and Engineers (JUSE)
He predicted the quality of Japanese goods would overtake
the quality of goods produced in US by Mid-1970s because of
Japan’s revolutionary rate of quality improvement

15. Joseph Juran
Juran’s ten steps to quality improvement are as follows:
1. Build awareness of opportunities to improve.
2. Set goals for improvement.
3. Organize to reach goals.
4. Provide training.
5. Carry out projects to solve problems.
6. Report progress.
7. Give recognition.
8. Communicate results.
9. Keep score.
10. Maintain momentum by making annual improvement part of the regular systems and processes
of the company

16. W. Edward Deming
Deming, who had become frustrated with American managers
when most programs of statistical quality control were
terminated once the war and government contracts came to an
end, was invited to Japan in 1954 by the Union of Japanese
Scientists and Engineers (JUSE).
Deming was the main figure in popularizing quality control in
Japan and regarded as national hero in that country.
He believes that quality must be built I into the product at all
stages in order to achieve a high level of excellence.
His thoughts were highly influenced by Walter Shwartz who
was the proponent of Statistical Quality Control (SQC). He views
statistics as a management tool and relies on statistical process
control as means in managing variations in a process.

17. W. Edward Deming

20. Armand V Feigenbaum
Armand V Feigenbaum was the originator of “total quality control”,
often referred to as total quality.
He defined it as:
“An effective system for integrating quality development,
quality maintenance and quality improvement efforts of the
various groups within an organization, so as to enable
production and service at the most economical levels that allow
full customer satisfaction”.
He saw it as a business method and proposed three steps to quality:
• Quality leadership
• Modern quality technology
• Organizational commitment

21. Japanese who developed new concepts in response
to the Americans
Dr Kaoru Ishikawa Dr Genichi Taguchi Shigeo Shingo

22. Dr Kaoru Ishikawa made many contributions to quality, the most noteworthy being his total quality
viewpoint, company wide quality control, his emphasis on the human side of quality, the Ishikawa
diagram and the assembly and use of the “seven basic tools of quality”:
◦ Pareto analysis which are the big problems?
◦ Cause and effect diagrams what causes the problems?
◦ Stratification how is the data made up?
◦ Check sheets how often it occurs or is done?
◦ Histograms what do overall variations look
like?
◦ Scatter charts what are the relationships
between factors?
◦ Process control charts which variations to control and
how?
Dr Kaoru Ishikawa

23. Ishikawa Diagram (Cause & Effects Diagram)
Also known as Fishbone Analysis

24. Shigeo Shingo
Shingo is strongly associated with Just-in-Time manufacturing,
and was the inventor of the single minute exchange of die (SMED)
system, in which set up times are reduced from hours to minutes,
and the Poka-Yoke (mistake proofing) system.
In Poka Yoke, defects are examined, the production system
stopped and immediate feedback given so that the root causes of
the problem may be identified and prevented from occurring
again.

25. Dr Genichi Taguchi
Taguchi believed it is preferable to design product that is robust or
insensitive to variation in the manufacturing process, rather than
attempt to control all the many variations during actual
manufacture.
“Taguchi methodology” is fundamentally a prototyping method
that enables the designer to identify the optimal settings to
produce a robust product that can survive manufacturing time
after time, piece after piece, and provide what the customer
wants.

26. Western gurus who followed the Japanese
industrial success
Philip B Crosby Tom Peters

27. Philip B Crosby
Crosby is known for the concepts of “Quality is Free” and “Zero Defects”, and his
quality improvement process is based on his four absolutes of quality:
◦ Quality is conformance to requirements
◦ The system of quality is prevention
◦ The performance standard is zero defect
◦ The measurement of quality is the price of non-conformance

28. Crosby’s 14 Points

30. Tom Peters
Tom Peters identified leadership as being central to the quality improvement
process, discarding the word “Management” for “Leadership”. The new role is of a
facilitator, and the basis is “Managing by walking about” (MBWA), enabling the
leader to keep in touch with customers, innovation and people, the three main
areas in the pursuit of excellence.
He believes that, as the effective leader walks, at least 3 major activities are
happening:
◦ Listening suggests caring
◦ Teaching values are transmitted
◦ Facilitating able to give on-the-spot help

31. The Trends Accelerating Use of TQM: 1970s the era of Hue & Cry!
“If Japan Can… Why Can’t We?”
 At first U.S. manufacturers held onto to their assumption that Japanese
success was price-related, and thus responded to Japanese competition with
strategies aimed at reducing domestic production costs and restricting imports.
 This, of course, did nothing to improve American competitiveness in quality.
 As years passed, price competition declined while quality competition
continued to increase.
 By the end of the 1970s, the American quality crisis reached major proportions,
attracting attention from national legislators, administrators and the media.
 A 1980 NBC-TV News special report, “If Japan Can… Why Can’t We?”
highlighted how Japan had captured the world auto and electronics markets.
Finally, U.S. organizations began to listen.

32. The American Response
The US Business Community Wakes up in 1980s from Deep Slumber
The chief executive officers of major U.S. corporations stepped forward to
provide personal leadership in the quality movement.
The U.S. response, emphasizing not only statistics but approaches that embraced
the entire organization, became known as Total Quality Management (TQM).
Several other quality initiatives followed. The ISO 9000 series of quality-
management standards, for example, were published in 1987.

33. The American Response
The US Business Community Wakes up in 1980s from Deep Slumber
Several other quality initiatives followed. The ISO 9000 series of quality-management standards, for
example, were published in 1987. The Baldrige National Quality Program and Malcolm Baldrige
National Quality Award were established by the U.S. Congress the same year. American companies
were at first slow to adopt the standards but eventually came on board.
The major rationale behind establishment of this law was intense foreign competition especially
from Japan.
The award has set a national standard for quality, and hundreds of major corporations used the
criteria in application form as a basic management guide for quality improvement programs.
Meeting criteria is not an easy matter. A perfect score is 1000

34. Baldrige Award Points Scale
Examination Categories/Items _____ Point Values
1.0 Leadership 95
1.1 Senior Executive Leadership 45
1.2 Management for quality 25
1.3 Public Responsibility and corporate citizenship 25
2.0 Information and Analysis 75
2.1 Scope and management of quality and performance data 15
information.
2.2 Competitive comparisons and benchmarking 20
2.3 Analysis and uses of company-level data 40
3.0 Strategic Quality Planning 60
3.1 Strategic quality and company performance planning process 35
3.2 Quality performance plans 25

35. Examination Categories/Items Point Values
4.0 Human Resource Development and Management 150
4.1 Human resource planning and management 20
4.2 Employee involvement 40
4.3 Employee education and training 40
4.4 Employee performance and recognition 25
4.5 Employee well-being and satisfaction 25
5.0 Management of Process Quality 140
5.1 Design and introduction of quality products and services 40
5.2 Process management: product and service production and 35
delivery processes
5.3 Process management: business processes and support services 30
5.4 Supplier quality 20
5.5 Quality assessment 15

36. Examination Categories/Items Point Values
6.0 Quality and Operational Results 180
6.1 Product and service quality results 70
6.2 Company operational results 50
6.3 Business process and support service results 25
6.4 Supplier quality results 35
7.0 Customer Focus and Satisfaction 300
7.1 Customer expectation: current and future 35
7.2 Customer relationship management 65
7.3 Commitment to customer 15
7.4 Customer satisfaction determination 30
7.5 Customer satisfaction results 85
7.6 Customer satisfaction comparison 70

37. Why Apply for Baldrige Award?
We applied for the Award, not with the idea of winning, but with the goal of receiving the
evaluation of the Baldrige Examiners. That evaluation was comprehensive, professional, and
insightful...making it perhaps the most cost-effective, value-added business consultation
available anywhere in the world today.
Bob Barnett
Executive Vice President
Motorola, Inc.
2003 Baldrige Award Ceremony

38. Discussion
1. What are the common themes of all the quality points?
2. Is quality enough to guarantee success?

39. Case Study