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TOTAL QUALITY MANAGEMENT
By… Prof. Raghavendran.V
MBA Department
TQM

WHAT IS

???

Any Answers
2

TQM by Prof. Raghavendran.V
Quality in simple definition can be defined as a measure
of excellence or a state of being free from defects &
deficiencies.

3

For example:
 Bike needs periodic check up!!
 Senior citizen needs regular health check up!!
 A newly upgraded computer is known for user
friendly!!
TQM by Prof. Raghavendran.V
Do we understood about the word Quality??
But,

What is TQM???
OOPS!!!!  I’ve no answer for
this!!!!
4

TQM by Prof. Raghavendran.V
TQM stand as….
Total: Made up of the whole.
Quality: Degree of excellence of a product or service
provides
Management: Act/ Art, Manner of handling, controlling &
directing it
5

 You are aware about it now  

TQM by Prof. Raghavendran.V
Now we can define that Total Quality Management is
an enhancement to the traditional way of doing
things.

6

TQM is defined as both philosophy and set of guiding
principles that represent the foundation of a
continuously improving organization. It is application
of quantitative methods & human resources to
improve all the processes within an organization and
customers.
Thus TQM integrates fundamental management
techniques, existing improvement efforts.
TQM by Prof. Raghavendran.V
Basic Approach or Principles(6)
A committed and involved management to provide
long term top-to-bottom organizational support.
2) An unwavering focus on the customer, both
internally & externally.
3) Effective involvement & utilization of the entire work
force.
4) Continuous improvement of the business and
production process.
5) Treating suppliers & Vendors as partners.
TQM by Prof. Raghavendran.V
6) Establishing the performance measures.
1)

7
Quality old & new cultures
Element

From 2 Decade’s

Definition

Product oriented

Customer oriented

Priorities

Second to service & cost

First

Decisions made

Short term

Long term

Emphasis

Detection

Prevention

Errors

Operations

System

Responsibility

Quality control

Every one

Problem solving

Managers only

Teams

Procurement

Price

Life cycle cost, partnership

Manager’s role

8

Previous to 2 decade’s

Plan, assign, control & enforce

Delegate, mentoring, coaching
& facilitate.

TQM by Prof. Raghavendran.V
Quality Dimensions of the
Products
1.
2.
3.
4.
5.

6.
7.
8.
9

Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics &
Perceived Quality

TQM by Prof. Raghavendran.V
Quality Dimensions of the
Services










10

Reliability
Responsiveness
Competence
Access
Courtesy
Communication
Credibility
Security
Knowing the Customer
Tangibility

TQM by Prof. Raghavendran.V
Importance of Quality in Business &
Commerce
 There exists relationship between quality,

profitability and Market share.
 Customer driven quality
 Conformance or internal specification quality

11

TQM by Prof. Raghavendran.V
Price advantage
Customer Driven
Quality

Market share
Customer Value

Customer
Attributes &
Design
Specifications

Specification
Quality

12

TQM by Prof. Raghavendran.V

Eco
nom
ies
of
Scal
e

Profitability &
Growth

Lower Cost of
Quality
Specification
Quality
Lower Cost of
quality

Investment in Improved
Quality
Cost of Quality
 "The cost of quality, It’s a term that's widely used – and widely

13

misunderstood.
 The "cost of quality" isn't the price of creating a quality product or
service. It's the cost of NOT creating a quality product or service.
 Every time work is redone, the cost of quality increases. Obvious
examples include:
 The reworking of a manufactured item.
 The retesting of an assembly.
 The rebuilding of a tool.
 The correction of a bank statement.
 The Raghavendran.V
TQM by Prof.reworking of a service, such as the reprocessing of a loan
operation or the replacement of a food order in a restaurant.
Quality & Competitive Advantage
Competitive
Advantage & Quality

Clarifying the
Quality theme into
an operations
objective

Factors Affecting the
Quality

Understanding the
relationships among
factors affecting
Quality

Action to Improve
and Assure the
conformance to
objectives

Results

14

TQM by Prof. Raghavendran.V

Analysis
Evolution of TQM
From holistic historical review quality revolution, we
can deduce that Quality can be classified into four
evolutionary phases:
1. Inspection
2. Quality Control
3. Quality assurance
4. Total quality Management
15

TQM by Prof. Raghavendran.V
Inspection Phase:
During the early days of manufacturing, an operative’s work was
inspected and a decision made whether to accept or reject it. As
businesses became larger, so to do this role a full time
inspection jobs were created. Accompanying the creation of
inspection functions, other problems arose:
 More technical problems occurred, requiring specialized skills, often not

possessed by production workers.
 The inspectors lacked training.
 Inspectors were ordered to accept defective goods, to increase output.
 Skilled workers were promoted into other roles, leaving less skilled workers
to perform the operational jobs, such as manufacturing.

16

These changes led to the birth of the separate inspection
department with a “chief inspector”, reporting to either the person
TQM by Prof. Raghavendran.V
in charge of manufacturing or the manager. With the creation of
Quality Control Phase:
 Quality Control department evolved, in charge of

which was a “quality control manager”, with
responsibility for the inspection services and quality
control engineering. In the 1920’s statistical theory
began to be applied effectively to quality control, and
in 1924 Shewhart made the first sketch of a modern
control chart.
OBJECTIVES:
 Establish standards of quality which are acceptable.
 Setting & Resetting of processes & Machinery
 To keep up the quality of products during Manufacturing
17

process.
TQM by Prof. Raghavendran.V
Quality Control

18

Importance
 Increases the profits
 Enables the industry to
complete successfully.
 Reduces cost of
production
 Reduces operation
losses by keeping scrap
& wastes.
 Improves product
design
TQM by Prof. Raghavendran.V
 Reduces bottle necks

Functions
 Advises on inspection &
quality control policy
formulated.
 Sets inspection
standards in the light of
engineering tolerances.
 Prepares budget
request & controls
operating expenses.
 Select gauges and
instrument for
inspection.
 SQC are used
Quality Assurance Phase
 Quality assurance focuses on avoiding defects

19

appearance prior to its occurrence by planned
and systematic production processes that provide
confidence in a product's suitability for its
intended purpose. Quality assurance is
considered the third step in the evolution toward
TQM. It is different from quality control. Quality
assurance is evident before and during the event
process
 Itby Prof. Raghavendran.V
TQM has progressed in the following areas:
Quality Assurance Division
Delegate
d
Inspectio
n

Quality
Manage
ment

Product
Assuranc
e

Quali
ty
Assu
rance
Divisi
on

Central
Material
Inspecti
on
20

TQM by Prof. Raghavendran.V

Measurin
g
Instrume
nts

Reliabilit
y
Engineeri
ng

Material
Analysis
Functions of QA

21

Staff Functions
 Product Evaluation
 Standardization
 Calibration &
Maintenance
 Inwards goods
inspection
 Qualification Approval
 Environments tests
 Physical & Chemical
TQM by Prof. Raghavendran.V
Test

Line Functions
 Control & Production







Process
Inspection & testing
Installation & training
Spare parts support
Technical literature
Analysis of routine
problems on line and
Total Quality Management Phase
 After entering World War II in December 1941,

22

the United States government ratified legislation
to help gear the national economy to military
production. At that time, military contracts were
awarded to manufacturers who submitted the
lowest competitive bid. Products were inspected
to meet requirements upon delivery.
 During this period, quality was defined in terms of
safety. The armed forces inspected virtually every
TQM by Prof. Raghavendran.V
unit of product to ensure its safety for operation.
Phase

INSPECTION

QUALITY
CONTROL

QUALITY
ASSURANCE

TQM

Objective

Measurements of
specifications

Control of process

Distribution of
Quality
responsibility to
functional areas.

Continuous
improvement @
every level, @ place
@ stages.

Focus

Uniform Product
Quality

Reduction in
inspection work

Evaluation at all
stages

Customer
Satisfaction ( I& E)

Tools

Gauges and
measurement
Techniques

SQC tools &
Technique

Quality Planning
documentation &
Quality Systems

Commitment,
Participation,
motivation,
Education &
Training

Inspection
department

Production
Department

All Departments

Top Management
leadership

Inspection, Sorting
and Grading

Trouble shooting &
Controlling the
quality

Assuring to build
quality by Planning
Programme design
& control

Strategic
management, team
involvement and
action research

Criterion

Responsibility for
Quality
Approach

23

TQM by Prof. Raghavendran.V
Obstacles of TQM
Lack of management Commitment
2. Inability to change organizational culture
3. Improper planning
4. Lack of continuous training & Education
5. Incompatible organizational structure
6. Ineffective measurement techniques & Lack of
access to data & results.
7. Paying inadequate attention to internal & external
customers.
TQM by Prof. Raghavendran.V
1.

24
Assignment time:
Explain in detail about Benefits

of TQM??
Of the 6 basic TQM concepts,
which were the most effective in
world war II? explain
Brief out historic review of TQM.
25

TQM by Prof. Raghavendran.V
Module -1 completed
By Prof. Raghavendran.V

26

TQM by Prof. Raghavendran.V

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VTU MBA-TQM 12MBA42 Module 1

  • 1. TOTAL QUALITY MANAGEMENT By… Prof. Raghavendran.V MBA Department
  • 2. TQM WHAT IS ??? Any Answers 2 TQM by Prof. Raghavendran.V
  • 3. Quality in simple definition can be defined as a measure of excellence or a state of being free from defects & deficiencies. 3 For example:  Bike needs periodic check up!!  Senior citizen needs regular health check up!!  A newly upgraded computer is known for user friendly!! TQM by Prof. Raghavendran.V
  • 4. Do we understood about the word Quality?? But, What is TQM??? OOPS!!!!  I’ve no answer for this!!!! 4 TQM by Prof. Raghavendran.V
  • 5. TQM stand as…. Total: Made up of the whole. Quality: Degree of excellence of a product or service provides Management: Act/ Art, Manner of handling, controlling & directing it 5  You are aware about it now   TQM by Prof. Raghavendran.V
  • 6. Now we can define that Total Quality Management is an enhancement to the traditional way of doing things. 6 TQM is defined as both philosophy and set of guiding principles that represent the foundation of a continuously improving organization. It is application of quantitative methods & human resources to improve all the processes within an organization and customers. Thus TQM integrates fundamental management techniques, existing improvement efforts. TQM by Prof. Raghavendran.V
  • 7. Basic Approach or Principles(6) A committed and involved management to provide long term top-to-bottom organizational support. 2) An unwavering focus on the customer, both internally & externally. 3) Effective involvement & utilization of the entire work force. 4) Continuous improvement of the business and production process. 5) Treating suppliers & Vendors as partners. TQM by Prof. Raghavendran.V 6) Establishing the performance measures. 1) 7
  • 8. Quality old & new cultures Element From 2 Decade’s Definition Product oriented Customer oriented Priorities Second to service & cost First Decisions made Short term Long term Emphasis Detection Prevention Errors Operations System Responsibility Quality control Every one Problem solving Managers only Teams Procurement Price Life cycle cost, partnership Manager’s role 8 Previous to 2 decade’s Plan, assign, control & enforce Delegate, mentoring, coaching & facilitate. TQM by Prof. Raghavendran.V
  • 9. Quality Dimensions of the Products 1. 2. 3. 4. 5. 6. 7. 8. 9 Performance Features Reliability Conformance Durability Serviceability Aesthetics & Perceived Quality TQM by Prof. Raghavendran.V
  • 10. Quality Dimensions of the Services           10 Reliability Responsiveness Competence Access Courtesy Communication Credibility Security Knowing the Customer Tangibility TQM by Prof. Raghavendran.V
  • 11. Importance of Quality in Business & Commerce  There exists relationship between quality, profitability and Market share.  Customer driven quality  Conformance or internal specification quality 11 TQM by Prof. Raghavendran.V
  • 12. Price advantage Customer Driven Quality Market share Customer Value Customer Attributes & Design Specifications Specification Quality 12 TQM by Prof. Raghavendran.V Eco nom ies of Scal e Profitability & Growth Lower Cost of Quality Specification Quality Lower Cost of quality Investment in Improved Quality
  • 13. Cost of Quality  "The cost of quality, It’s a term that's widely used – and widely 13 misunderstood.  The "cost of quality" isn't the price of creating a quality product or service. It's the cost of NOT creating a quality product or service.  Every time work is redone, the cost of quality increases. Obvious examples include:  The reworking of a manufactured item.  The retesting of an assembly.  The rebuilding of a tool.  The correction of a bank statement.  The Raghavendran.V TQM by Prof.reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant.
  • 14. Quality & Competitive Advantage Competitive Advantage & Quality Clarifying the Quality theme into an operations objective Factors Affecting the Quality Understanding the relationships among factors affecting Quality Action to Improve and Assure the conformance to objectives Results 14 TQM by Prof. Raghavendran.V Analysis
  • 15. Evolution of TQM From holistic historical review quality revolution, we can deduce that Quality can be classified into four evolutionary phases: 1. Inspection 2. Quality Control 3. Quality assurance 4. Total quality Management 15 TQM by Prof. Raghavendran.V
  • 16. Inspection Phase: During the early days of manufacturing, an operative’s work was inspected and a decision made whether to accept or reject it. As businesses became larger, so to do this role a full time inspection jobs were created. Accompanying the creation of inspection functions, other problems arose:  More technical problems occurred, requiring specialized skills, often not possessed by production workers.  The inspectors lacked training.  Inspectors were ordered to accept defective goods, to increase output.  Skilled workers were promoted into other roles, leaving less skilled workers to perform the operational jobs, such as manufacturing. 16 These changes led to the birth of the separate inspection department with a “chief inspector”, reporting to either the person TQM by Prof. Raghavendran.V in charge of manufacturing or the manager. With the creation of
  • 17. Quality Control Phase:  Quality Control department evolved, in charge of which was a “quality control manager”, with responsibility for the inspection services and quality control engineering. In the 1920’s statistical theory began to be applied effectively to quality control, and in 1924 Shewhart made the first sketch of a modern control chart. OBJECTIVES:  Establish standards of quality which are acceptable.  Setting & Resetting of processes & Machinery  To keep up the quality of products during Manufacturing 17 process. TQM by Prof. Raghavendran.V
  • 18. Quality Control 18 Importance  Increases the profits  Enables the industry to complete successfully.  Reduces cost of production  Reduces operation losses by keeping scrap & wastes.  Improves product design TQM by Prof. Raghavendran.V  Reduces bottle necks Functions  Advises on inspection & quality control policy formulated.  Sets inspection standards in the light of engineering tolerances.  Prepares budget request & controls operating expenses.  Select gauges and instrument for inspection.  SQC are used
  • 19. Quality Assurance Phase  Quality assurance focuses on avoiding defects 19 appearance prior to its occurrence by planned and systematic production processes that provide confidence in a product's suitability for its intended purpose. Quality assurance is considered the third step in the evolution toward TQM. It is different from quality control. Quality assurance is evident before and during the event process  Itby Prof. Raghavendran.V TQM has progressed in the following areas:
  • 21. Functions of QA 21 Staff Functions  Product Evaluation  Standardization  Calibration & Maintenance  Inwards goods inspection  Qualification Approval  Environments tests  Physical & Chemical TQM by Prof. Raghavendran.V Test Line Functions  Control & Production      Process Inspection & testing Installation & training Spare parts support Technical literature Analysis of routine problems on line and
  • 22. Total Quality Management Phase  After entering World War II in December 1941, 22 the United States government ratified legislation to help gear the national economy to military production. At that time, military contracts were awarded to manufacturers who submitted the lowest competitive bid. Products were inspected to meet requirements upon delivery.  During this period, quality was defined in terms of safety. The armed forces inspected virtually every TQM by Prof. Raghavendran.V unit of product to ensure its safety for operation.
  • 23. Phase INSPECTION QUALITY CONTROL QUALITY ASSURANCE TQM Objective Measurements of specifications Control of process Distribution of Quality responsibility to functional areas. Continuous improvement @ every level, @ place @ stages. Focus Uniform Product Quality Reduction in inspection work Evaluation at all stages Customer Satisfaction ( I& E) Tools Gauges and measurement Techniques SQC tools & Technique Quality Planning documentation & Quality Systems Commitment, Participation, motivation, Education & Training Inspection department Production Department All Departments Top Management leadership Inspection, Sorting and Grading Trouble shooting & Controlling the quality Assuring to build quality by Planning Programme design & control Strategic management, team involvement and action research Criterion Responsibility for Quality Approach 23 TQM by Prof. Raghavendran.V
  • 24. Obstacles of TQM Lack of management Commitment 2. Inability to change organizational culture 3. Improper planning 4. Lack of continuous training & Education 5. Incompatible organizational structure 6. Ineffective measurement techniques & Lack of access to data & results. 7. Paying inadequate attention to internal & external customers. TQM by Prof. Raghavendran.V 1. 24
  • 25. Assignment time: Explain in detail about Benefits of TQM?? Of the 6 basic TQM concepts, which were the most effective in world war II? explain Brief out historic review of TQM. 25 TQM by Prof. Raghavendran.V
  • 26. Module -1 completed By Prof. Raghavendran.V 26 TQM by Prof. Raghavendran.V