Total Quality Management (TQM) involves all employees pursuing excellence in every aspect of an organization through quality planning, control, and improvement. Key principles include the customer defining quality, top management leadership, continuous quality improvement across all functions, statistical problem solving, and employee training. Juran identified quality planning, control, and improvement as aspects of quality systems. Quality policies must be consistent with company strategy. Deming emphasized statistical process control, breaking down barriers, and transforming company culture through education.

1. Total Quality Management(TQM)
• The word “total” conveys the idea that all
employees, throughout every function and level of
organization, pursue quality.
• The word “quality” suggests excellence in every
aspect of the organization.
• “Management” refers to the pursuit of quality
results through a quality management process,
including strategic, design, manufacturing, and
finance processes.

2. Principles of TQM
• The customer defines quality.
• Top management must provide the leadership for quality
• Quality is a strategic issue
• All functions of the company must focus on continuous
quality improvement
• Quality problems are solved through cooperation among
employees and management
• Use statistical quality control methods in problem solving
• Training and education of all employees are the basis for
CQI.

3. Juran Trilogy
Three aspects of quality managerial systems:
• quality planning
• quality control
• quality improvement

4. Elements of Quality Systems
• Policy, planning, organization, and administration
• Product design assurance and specification development
• Control of purchased materials and component parts
• Production quality control and assurance
• Customer contact
• Corrective and preventive action
• Employee selection, training, and motivation
• Legal requirements - product liability and user safety
• Sampling and other statistical techniques

5. Quality Policies
• Mission statement outlines the specific need the
firm’s product or service meets
• Corporate policies (apply to everyone)
• Departmental policies (not relevant to any other
department worker)
• Policies must be consistent with company’s
strategy (buying from a low-cost bidder may be
inconsistent with the strategy of high quality
products)

6. Deming’s 14 Points for Management
• Create and publish to all employees a statement of the
aims and purposes
• Adopt the new philosophy
• Understand the purpose of inspection
• End the practice of awarding business on the basis of price
tag alone
• Improve constantly the system of production and service
• Institute training
• Teach and institute leadership

7. Deming’s 14 Points (continued)
• Drive out fear, create trust, create climate for innovation
• Break down barriers between departments
• Eliminate slogans , numerical quotas for production and
other numerical goals
• Remove barriers between employee and his/her supervisor
• Encourage education and self-improvement
• Take action to accomplish the transformation

8. Deming’s View of Production as
a System
Suppliers Test of Design and Consumer
Materials materials redesign research
Equipment
distribution consumers
A
B Production, assembly, inspection
C
D Tests of processes, machines,
methods, costs

9. Quality Cost Analysis
• Prevention costs
• Appraisal costs
• Internal failure costs
• External failure costs
The major categories of cost as defined by the
ASQ

10. Employee Selection, Training,
Motivation
Motivation programs:
• zero defects
• quality control circles
• participative quality control
• employee involvement

11. Legal Requirements
• Product liability (examples: the Federal
Meat Inspection Act of 1977, the Radiation
Control for Health and Safety Act of 1968)
• User safety (The Consumer Safety
Commission - 1967)