An Assignment on
Total Quality Management
Submitted BySudarshan Kumar Patel
What is quality?
A frequently used definition of quality is “Delighting the customer by fully
meeting their needs andexpectations”. These may include performance,
appearance, availability, delivery, reliability, maintainability,cost effectiveness and
price. It is, therefore, imperative that the organization knows what these needs
andexpectations are. In addition, having identified them, the organization must
understand them, and measureits own ability to meet them.
The Three Quality GurusDeming:The best known of the “early” pioneers, is credited with popularizing
quality control in Japan in early 1950s.Today, he is regarded as a national hero in
that country and is the father of the world famous Deming prize for quality.
Juran: Juran, like Deming was invited to Japan in 1954 by the union of Japanese
Scientists and engineers.
Juran defines quality as fitness for use in terms of design, conformance,
availability, safety and field use. He focuses on top-down management and
technical methods rather than worker pride and satisfaction.
Quality is defined as conformance to requirements, not “goodness”
The system for achieving quality is prevention, not appraisal.
The performance standard is zero defects, not “that’s close enough”
The measurement of quality is the price of non-conformance, not indexes.
Commonality of Themes of Quality Gurus
1Inspection is never the answer to quality improvement, nor is “policing”.
2Involvement of leadership and top management is essential to the necessary
culture of commitment to quality.
3A program for quality requires organization-wide efforts and long term
commitment, accompanied by the necessary investment in training.
4Quality is first and schedules are second.
Five Approaches of Defining Quality
Harvard professor David Garvin, in his book Managing Quality summarized five
principal approaches to define quality Transcendent
Old Quality vs. New Quality
Difference between old quality (Rolls Royce, personal banker etc) and new quality
is that old was the work of craftsmen and the new is the work of a system (Toyota,
Big Mac, Boeing Aircraft, Disney World etc.). The old is expensive, made for the
few, using skilled hands, and is beautiful and functionally based. The new reduces
cost, made for the many by intelligent minds and should drive the economy and
make business more competitive.
Total Quality Management (TQM)
TQM is the way of managing for the future, and is far wider in its application than
just assuring product or service quality – it is a way of managing people and
business processes to ensure complete customer satisfaction at every stage,
internally and externally. TQM, combined with effective leadership, results in an
organization doing the right things right, first time.
The core of TQM is the customer-supplier interfaces, both externally and
internally, and at each interface lie a number of processes. This core must be
surrounded by commitment to quality, communication of the quality message, and
recognition of the need to change the culture of the organization to create total
quality. These are the foundations of TQM, and they are supported by the key
management functions of people, processes and systems in the organization.
Dimensions of Product Quality
1. Performance - Fulfillment of primary requirement
2. Features - Additional things that enhance performance
3. Conformance - Meeting specific standards set by the industry
4. Reliability - Consistence performance over a period of time
5. Durability - Long life and less maintenance
6. Service - Ease of repair, guarantee, and warranty
7. Response - Dealer customer relationship, human interface
8. Aesthetics - exteriors, packages
9. Reputation - Past performance, ranking, branding
Historical Review of TQM
1924 - After WWI, W.A. Sherwat of Bell Telephone statistical chart for the control
of various. Concepts of sample tests were followed. It was a failure in the initial
1946 - ASQC American Society for Quality Control, now ASQ. Frequent
meetings, conferences andpublications were made to public.
1950 - W.Edwards Deeming’s his guidance and lecture to Japan engineers
transformed qualityconcepts in the organization. His cycle ACT-PLAN-DOCHECK.
1954 - Joseph M.Juran Concept of efficient and productive. Juran Trilogy
Quality planning - Quality Control - Quality Improvement.
1960 - Quality control circles were formed. Zero defects concepts
1970 - Reactive approach to proactive approach. Shift from Japan to USA
1980 - SPC - Statistical Process Control. Concepts of parameter and tolerance.
Experiments 1990 -Concepts of certification of ISO, CMM etc.
2000 - Six sigma concept - Six Sigma stands for Six Standard Deviations (Sigma is
the Greek letter used torepresent standard deviation in statistics) from mean. Six
Sigma methodologiesprovide the techniquesand tools to improve the capability and
reduce the defects in any process.
Evolution of TQM
Benefits of TQM
Greater customer loyalty
Market share improvement
Higher stock prices
Reduced service calls
What is Six Sigma?
1. A goal of near perfection in meeting customer requirements.
2. A sweeping culture change effort to position a company for greater customer
satisfaction, profitability and competitiveness.
3. A comprehensive and flexible system for achieving, sustaining and maximizing
business success; uniquely driven by close understanding of customer needs,
disciplined use of facts, data, and statistical analysis, and diligent attention to
managing, improving and reinventing business processes.
Six Sigma DMAIC Process
Conclusion“Remember the earth revolves around the CUSTOMER. Quality begets customers
and customers beget quality. Let us all have action plans to support quality, this
will make the world happy and earn us the blessing of God Almighty.”
“Actions are direct reflection of one’s intentions”
ReferencesManagement Accounting- Ray Proctor
Management Accounting-Pauline Weetman
White Paper on TQM