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Total Quality Management (TQM)
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Content
Definition
 What’s the goal of TQM?
Objectives of TQM
Significance of TQM
Basic Tenets of TQM
Productivity and TQM
Elements of TQM
Three aspects of TQM
Total Quality Management
and Continuous Improvement
Continuous Improvement
versus Traditional Approach
Quality Throughout
Classification of TQM tools
Reasons for Failure
Benefits of TQM
What is TQM?
› TQM is the integration of all functions and processes within an
organization in order to achieve continuous improvement of the
quality of goods and services. The goal is customer satisfaction.
TQM Cont.
Total - made up of the whole
Quality - degree of excellence a product or service provides
Management - act, art or manner of planning, controlling, directing
Therefore, TQM is the art of managing the whole to achieve
excellence.
What’s the goal of TQM?
“Do the right things right the first time, every time.”
Total quality management (tqm)
Objectives of TQM
Meeting the customers requirements is the primary objective and the
key to organizational survival and growth.
The second objective of TQM is continuous improvement of quality.
The management should stimulate the employees in becoming
increasingly competent and creative.
Third, TQM aims at developing the relationship of openness and
trust among the employees at all levels in the organization.
Significance of TQM
› The importance of TQM lies in the fact that it encourages
innovation, makes the organization adaptable to change,
motivates people for better quality, and integrates the business
arising out of a common purpose and all these provide the
organization with a valuable and distinctive competitive edge.
Basic Tenets of TQM
The customer makes the ultimate determination of quality.
Top management must provide leadership and support for all quality
initiatives.
Preventing variability is the key to producing high quality.
Quality goals are a moving target, thereby requiring a commitment
toward continuous improvement.
 Improving quality requires the establishment of effective metrics. We
must speak with data and facts not just opinions.
Productivity and TQM
Traditional view:
• Quality cannot be improved without significant losses in
productivity.
TQM view:
• Improved quality leads to improved productivity.
Elements of TQM
Be customer focused
It requires the company to check customers attitudes regularly
and includes the idea of internal customers as well as external
ones.
Do it right the first time
This means avoiding rework, i.e., cutting the amount of
defective work.
Elements of TQM Cont.
Constantly improve
Continuous improvement allows the company gradually to get better
Quality is an attitude
Every one has to be committed to quality. That means changing the
attitude of the entire workforce, and altering the way the company
operates
Educate and train people
An unskilled workforce makes mistakes. Giving more skills to workers
means they can do a wider range of jobs, and do them better. It also
means educating staff in the principles of TQM, which is a whole new
style of working
Elements of TQM Cont.
Measure the work
Measurement allows the company to make decisions based on facts,
not opinion. It helps to maintain standards and keep processes within
the agreed tolerances
Telling staff what is going on
This involves improved communication. Typically, it includes team
briefing
Top management must be involved
If senior management is not involved, the program will fail.
Elements of TQM Cont.
Make it a good place
Many companies are full of fear. Staffs are afraid of the sack, their
boss and making mistakes. There is no point in running a TQM
program unless the company drives out fear
Introduce team work
Team work boosts employees morale. It reduces conflict and solves
problem by hitting them with a wider range of skills.
Organize by process, not by function
This element of TQM seeks to reduce the barriers that exist between
different departments, and concentrates on getting the product to the
customer.
The three aspects of TQM
Counting
Tools, techniques, and training in their use for analyzing,
understanding, and solving quality problems
Customers
Quality for the customer as a driving force and central concern.
Culture
Shared values and beliefs, expressed by leaders, that define and
support quality.
Total Quality Management
and Continuous Improvement
TQM is the management process used to make continuous
improvements to all functions.
TQM represents an ongoing, continuous commitment to
improvement.
The foundation of total quality is a management philosophy that
supports meeting customer requirements through continuous
improvement.
Continuous Improvement versus Traditional
Approach
Traditional Approach
Market-share focus
Individuals
Focus on ‘who” and “why”
Short-term focus
Product focus
Innovation
Continuous Improvement
Customer focus
Cross-functional teams
Focus on “what” and “how”
Long-term focus
Process improvement focus
Incremental improvements
Value-based Approach
Manufacturing
Dimensions
oPerformance
oFeatures
oReliability
oConformance
oDurability
oServiceability
oPerceived quality
Service Dimensions
oReliability
oResponsiveness
oAssurance
oEmpathy
oTangibles
Quality Throughout
“A Customer’s impression of quality begins with the initial
contact with the company and continues through the life of
the product.”
Customers look to the total package - sales, service during the
sale, packaging, deliver, and service after the sale.
Quality extends to how the receptionist answers the phone, how
managers treat subordinates, how courteous sales and repair
people are, and how the product is serviced after the sale.
“All departments of the company must strive to
improve the quality of their operations.”
Classification of TQM tools
Qualitative tools:
consist mainly of subjective inputs, which often do not intend to
measure something of a numerical nature.
Quantitative tools:
involve either the extension of historical data or the analysis of
objective data, which usually avoid personal biases that sometimes
contaminate qualitative tools.
Categories of TQM tools
Qualitative Tools
Flow chart
Cause & effect diagrams
Affinity diagram
Process action terms
Brainstorming
Task list
Quantitative Tools
Shewart cycle
Control charts
Scatter diagrams
Pareto charts
Sampling
Run chart
Histograms
Reasons for Failure
 TQM fails because:
Top management sees no reason for change.
 Top management is not concerned for its staff.
Top management is not committed to the TQM program.
The company loses interest in the program after six months.
The workforce and the management do not agree on what
needs to happen.
Urgent problems intervene.
Reasons for Failur Cont.
TQM is imposed on the workforce, which does not inwardly
accept it.
No performance measure or targets are set, so progress cannot
be measured.
Processes are not analyzed, systems are weak and procedures
are not written down.
Benefits of TQM
TQM has numerous benefits. It enables organizations to:
attain higher profitability and increased market share
improve customer satisfaction
improve organizational productivity
improve employee morale and job satisfaction
create a positive work culture
undertake systematic problem solving and decision making through project
teams
improve teamwork
Total quality management (tqm)

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Total quality management (tqm)

  • 1. Total Quality Management (TQM) Presented By: ID: 161-34-474 162-34-519 162-34-521 162-34-524 162-34-539
  • 2. Content Definition  What’s the goal of TQM? Objectives of TQM Significance of TQM Basic Tenets of TQM Productivity and TQM Elements of TQM Three aspects of TQM Total Quality Management and Continuous Improvement Continuous Improvement versus Traditional Approach Quality Throughout Classification of TQM tools Reasons for Failure Benefits of TQM
  • 3. What is TQM? › TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction.
  • 4. TQM Cont. Total - made up of the whole Quality - degree of excellence a product or service provides Management - act, art or manner of planning, controlling, directing Therefore, TQM is the art of managing the whole to achieve excellence.
  • 5. What’s the goal of TQM? “Do the right things right the first time, every time.”
  • 7. Objectives of TQM Meeting the customers requirements is the primary objective and the key to organizational survival and growth. The second objective of TQM is continuous improvement of quality. The management should stimulate the employees in becoming increasingly competent and creative. Third, TQM aims at developing the relationship of openness and trust among the employees at all levels in the organization.
  • 8. Significance of TQM › The importance of TQM lies in the fact that it encourages innovation, makes the organization adaptable to change, motivates people for better quality, and integrates the business arising out of a common purpose and all these provide the organization with a valuable and distinctive competitive edge.
  • 9. Basic Tenets of TQM The customer makes the ultimate determination of quality. Top management must provide leadership and support for all quality initiatives. Preventing variability is the key to producing high quality. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement.  Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.
  • 10. Productivity and TQM Traditional view: • Quality cannot be improved without significant losses in productivity. TQM view: • Improved quality leads to improved productivity.
  • 11. Elements of TQM Be customer focused It requires the company to check customers attitudes regularly and includes the idea of internal customers as well as external ones. Do it right the first time This means avoiding rework, i.e., cutting the amount of defective work.
  • 12. Elements of TQM Cont. Constantly improve Continuous improvement allows the company gradually to get better Quality is an attitude Every one has to be committed to quality. That means changing the attitude of the entire workforce, and altering the way the company operates Educate and train people An unskilled workforce makes mistakes. Giving more skills to workers means they can do a wider range of jobs, and do them better. It also means educating staff in the principles of TQM, which is a whole new style of working
  • 13. Elements of TQM Cont. Measure the work Measurement allows the company to make decisions based on facts, not opinion. It helps to maintain standards and keep processes within the agreed tolerances Telling staff what is going on This involves improved communication. Typically, it includes team briefing Top management must be involved If senior management is not involved, the program will fail.
  • 14. Elements of TQM Cont. Make it a good place Many companies are full of fear. Staffs are afraid of the sack, their boss and making mistakes. There is no point in running a TQM program unless the company drives out fear Introduce team work Team work boosts employees morale. It reduces conflict and solves problem by hitting them with a wider range of skills. Organize by process, not by function This element of TQM seeks to reduce the barriers that exist between different departments, and concentrates on getting the product to the customer.
  • 15. The three aspects of TQM Counting Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Customers Quality for the customer as a driving force and central concern. Culture Shared values and beliefs, expressed by leaders, that define and support quality.
  • 16. Total Quality Management and Continuous Improvement TQM is the management process used to make continuous improvements to all functions. TQM represents an ongoing, continuous commitment to improvement. The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.
  • 17. Continuous Improvement versus Traditional Approach Traditional Approach Market-share focus Individuals Focus on ‘who” and “why” Short-term focus Product focus Innovation Continuous Improvement Customer focus Cross-functional teams Focus on “what” and “how” Long-term focus Process improvement focus Incremental improvements
  • 19. Quality Throughout “A Customer’s impression of quality begins with the initial contact with the company and continues through the life of the product.” Customers look to the total package - sales, service during the sale, packaging, deliver, and service after the sale. Quality extends to how the receptionist answers the phone, how managers treat subordinates, how courteous sales and repair people are, and how the product is serviced after the sale. “All departments of the company must strive to improve the quality of their operations.”
  • 20. Classification of TQM tools Qualitative tools: consist mainly of subjective inputs, which often do not intend to measure something of a numerical nature. Quantitative tools: involve either the extension of historical data or the analysis of objective data, which usually avoid personal biases that sometimes contaminate qualitative tools.
  • 21. Categories of TQM tools Qualitative Tools Flow chart Cause & effect diagrams Affinity diagram Process action terms Brainstorming Task list Quantitative Tools Shewart cycle Control charts Scatter diagrams Pareto charts Sampling Run chart Histograms
  • 22. Reasons for Failure  TQM fails because: Top management sees no reason for change.  Top management is not concerned for its staff. Top management is not committed to the TQM program. The company loses interest in the program after six months. The workforce and the management do not agree on what needs to happen. Urgent problems intervene.
  • 23. Reasons for Failur Cont. TQM is imposed on the workforce, which does not inwardly accept it. No performance measure or targets are set, so progress cannot be measured. Processes are not analyzed, systems are weak and procedures are not written down.
  • 24. Benefits of TQM TQM has numerous benefits. It enables organizations to: attain higher profitability and increased market share improve customer satisfaction improve organizational productivity improve employee morale and job satisfaction create a positive work culture undertake systematic problem solving and decision making through project teams improve teamwork