Total Quality

Management

Aireen Y. Clores, M.B.A

HRTM Instructor
Dept. of Family & Consumer Sciences
 Some questions . . .

• Does higher quality has any relation with business

performance?
• Does higher quality means more cost and more
time Or quality is free?
• Operational problems faced by organizations can
be generalized?
• What management experts have advised to
improve aver all operation?
?
Shall we learn lesson from management
experts or try our own methods

Total Quality Management

 Contents

 Total Quality
 Quality Definition
 Quality Movements
 History of Quality Paradigms
 Quality Control & Assurance
 Total Quality Management
- Pillars of TQM
- Other components of TQM

Quality is never an accident; it is always the result of high intention, sincere

effort, intelligent direction and skillful execution; it represents the wise choice
of many alternatives. Will A Foster

Total Quality Management

 What is TQM?
Concern for
Constant drive Management employee
for continuous by Fact involvement and
development
improvement
and learning.

Organisation
Passion to deliver response
Result Focus customer value / ability
excellence

Actions not just words Partnership

(implementation) perspective
Process (internal /
Management external)
 Total Quality Management

TQM Philosophy

 Philosophy of TQM revolves around customer driven

management.
 Its major emphasis is on determining customer need or
expectation from the product.
 Total Quality is the culture of the organization.
 It is attitude of people how they perform their assigned
work with aims to provide, customers with products and
services that satisfy their needs.
 The culture change means all members of the organization
participate in the improvement of process, products, and
services.

Total Quality Management

 TQM Philosophy

“Do the right things, right

the first time, every time”

You must put a quality product into QC before you

can expect to get out one, otherwise wastage (or
rework) will be very high.

Total Quality Management

 Pillars of TQM

1- Customer Focus: Studying customer needs, gathering customer

requirements, and measuring and managing customer satisfaction.
Customer satisfaction is seen as the company's highest priority.
The company believes that it will only be successful if its customers
are satisfied.

2- Process Management: Develop a production process that

reduce the product variations. Applying the same process; the
same product should be produces with the same level of quality
every time.
Teams are process-oriented, and interact with their internal
customers to deliver the required results. Management's focus is on
controlling the overall process, and rewarding teamwork.

Total Quality Management

 Pillars of TQM

3- Employee Empowerment (Human side of Quality): TQM

environment requires a committed and well-trained work force that
participates fully in quality improvement activities.

On-going education and training of all employees supports the drive

for quality.

4- Continuous Improvement: TQM recognizes that product quality is

the result of process quality. As a result, there is a focus on
continuous improvement of the company's processes.
This will lead to an improvement in process quality. In turn this will
lead to an improvement in product quality. Measurement and
analysis id the tool that has been used for that.
 Pillars of TQM

T. Q. M.

Customer Process Employee Training

Focus Management & Empowerment

Continuous Improvement
(through measurement and analysis)

• Reduce rework activities (Cost reduction)

• Shorter development cycle (Cost reduction)
• Increased customer satisfaction (Quality improvement)
 Other elements of TQM

 Leadership
 Vision and Plan Statement
 Employee Participation
 Recognition and Reward
 Education and Training
 Supplier Quality Management
 Performance Evaluation
 Product Design

Total Quality Management

 LEARNING AND TQM

Learning

Process Improvement

Quality Improvement

Customer Shareholder Employee

Satisfaction Satisfaction Satisfaction
 BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

 Quality Definition

• Quality is the conformance to requirements.

(Crosby in 1979)

• Fitness for use. (Juran 1970)

• The degree to which a system, component, or

process meets specified requirements. (IEEE)

Total Quality Management

 Quality Gurus

• Walter A. Shewhrat (Father of Quality, 1920-1940s)

• Dr. W. Edwards Deming (14-points, 1945-1980s)

• Dr. Joseph M. Juran (TQM, post WWII – 1980s)

• Philip Crosby (Quality is Free, 1980s)

• Kaoru Ishikawa (Fish Bone, SPC, post WWII - 1980s)

Total Quality Management

 Quality Movements

• Japanese were badly defeated in World War II. Their industrial

and financial bases were in chaos.

• Japan had no natural resource and limited source of food for

their people.

• The quality movement began in Japan in 1946 with the U.S.

Occupation Force's mission to revive and restructure Japan's
communications equipment industry.

• Dr. Deming was invited by the Union of Japanese Scientists

and Engineers to Japan in 1947.

• In 1954, Dr. Joseph Juran of the United States raised the level
of quality management from the factory to the total
organization in Japan.
Total Quality Management
 Quality Movements

 Results from Japan’s implementation from American quality

experts led to an industrial revolution that eventually left the
American industry lagging behind.

 It was during the late 1980s that American industry began to

finally look to their quality experts for methods to improve
quality.

 In the late 1980s, an NBC documentary called If Japan Can

Why Can’t We brought national attention to the needs for
quality improvements for global competition.

Total Quality Management

 History of Quality Paradigms

1- Customer-Craft quality Paradigm

Design and build each product for a particular customer.
Producer knows the customer directly.

2- Mass production & inspection Paradigm

Focus on designing and building products for mass consumption.
- Push products on the customer (limit customer choices).

- Quality is maintained by inspecting and detecting bad products.

Major innovation to this paradigm: statistical process control

3- TQM Paradigm
Potential customers determine what to design and build.
Higher quality obtained by focusing on preventing defects and
continuously reducing variability in all processes.
Total Quality Management
 Quality Evolution

Incorporates QC/QA activities into a

Proactive Approach company-wide system aimed at
Total Quality
satisfying the customer.
Management
Prevention 4 (involves all organizational functions)
Stop defects at source.
Zero defects
Quality Planned and systematic actions to
Assurance insure that products or services
3
conform to company requirements

Reactive Approach Operational techniques to make

Quality inspection more efficient & to
Control reduce the costs of quality.
Detection 2
(example: SPC)
Finding & Fixing
mistakes
Inspection Inspect products
1
 Quality Control

 The purpose of quality control is to uncover

defects and have them corrected so that defect-
free products will be produced.
 Quality control is limited to looking at products .
 Quality control is testing the final product against
product quality standards.
 Quality control is operational techniques that are
used to fulfill requirements for product quality.

Juran says, software quality control is the process of

measuring actual quality, comparing this to some standard,
and then acting on the discrepancy.
Total Quality Management
 Quality Assurance

 Quality assurance is oriented toward preventing defects.

 It is defined by those activities that modify the development
processes to prevent the introduction of defects.
 Quality assurance is more concerned with the processes
that produce the final product, and making sure that quality
is part of each phase.
 QA is about maturing the process towards minimum defect.
 It is about balancing methodology, leadership, and
technology.
 It is about taking into account human factors as well as
technological ones.
Total Quality Management
FOUR KEY PRINCIPLES

•Measure quality so you can affect it

•Focus on a moving customer

•Involve every employee

•Think long term - Act short term

 THE CONCEPT OF QUALITY

• Perfection • Providing a good,

• Consistency usable product
• Eliminating waste • Doing it right the first
• Speed of delivery time
• Compliance with policies • Delighting or pleasing
and procedures customers
• Total customer service
and satisfaction
 THE IMPORTANCE OF QUALITY

• Quality drives market

share.

• Quality can also reduce

costs.

• As quality improves, so
does cost, resulting in
improved market share and
hence profitability and
growth.
 THE CASE FOR QUALITY
1 Success of competitors who take quality seriously

2 Rising expectations of customers

3 Quality differentiates companies from the

competition

4 Narrowing of supplier bases by quality conscious

companies

.
 THE CASE FOR QUALITY
5 Growing evidence that growth in market
share comes from sustained quality.

6 Cost advantages

7 High cost of catastrophic failure

8 Inspection poor substitute for right first time

 Leadership

• The ability of top management to establish, practice, and lead

a long-term vision for the firm, driven by changing customer
requirements, as opposed to an internal management control
role.
• Lack of top management commitment is one of the reasons for
the failure of TQM efforts (Brown et al. 1994).
• A predominant requirement for quality management is that
strong commitment from top management is vital.
• To be an effective leader in most modern firms, the top
manager must continue to develop and learn.
• Knowledge of the business and continual learning are
essential prerequisites to effective leadership (DuBrin, 1995).

Total Quality Management

 Leadership

• In order to effectively lead the firm, top management must be

committed to provide education and training to employees and
regarding them as valuable resources of the firm.
• Top management must be committed to allocating sufficient
resources to prevent, as well as repair, quality problems.
• Top management should discuss quality frequently; by having
session on the topic and asking questions about quality at
every staff meeting.
• Top management must train and coach employees to assess,
analyze, and improve work processes (Deming, 1986).

Total Quality Management

 Vision & Plan Statement

Vision statement describes how a firm wants to be seen in its

chosen business. Vision describes standards, values, and beliefs of
the organization.
Intent of a vision statement is to communicate the firm’s values,
aspirations and purpose, so that employees can make decisions
that are consistent with and supportive of these objectives.
Plan statement is a detailed road map of actions; what and how
organization intended execute that plan in future.
Organization may have many kinds of plan;
- Strategic business performance plan
- Quality goal plan
- Quality improvement plan

Total Quality Management

 Vision & Plan Statement

Strategic business performance plan can be divided into long-

and short-term business performance plans that include, for
example, market share, profits, annual sales, exports, and sales
growth.
Quality goal plan can involve, for example, conformity rate,
defect rate, internal failure costs, external failure costs,
performance, reliability, and durability.
Quality improvement plan aims for quality improvement, which
are actions taken throughout the organization to increase the
effectiveness and efficiency of activities and processes in order
to provide added benefits to both the organization and its
customers (ISO 8402, 1994).

Total Quality Management

 Employee Participation

 Employee participation can be defined as the degree to which

employees in a firm engage in various quality management
activities.
 By participating in quality management activities, employees
acquire new knowledge, see the benefits of the quality
disciplines, and obtain a sense of accomplishment by solving
quality problems.
 A remarkable characteristic of employee participation is
teamwork. Breakdown barriers between departments. People in
research, design, sales, and production must work as a team
(Deming’s 9th point).
 If several knowledgeable people are brought into the decision-
making process, a number of worthwhile possibilities may be
uncovered.

Total Quality Management

 Employee Participation

 TQM implementation practice is formation of short-term problem-

solving teams (SEPG).
 Problem-solving teams work on a wide variety of tasks, ranging
from cross-functional involvement in tackling quality problems to
solving within-functional quality problems.
 TQM firms create employee suggestion systems. Production
workers should regularly participate in operational decisions such
as planning, goal setting, and monitoring of performance.
 They are encouraged to make suggestions and take a relatively
high degree of responsibility for overall performance.
 Employees should be encouraged to inform managers or
supervisors concerning conditions that need correction (e.g.,
process defects, incompetent staff and poor tools).

Total Quality Management

 Recognition & Reward

 Recognition is defined as the public acknowledgment of superior

performance of specific activities.
 Reward is defined as benefits, such as increased salary, bonuses
and promotion, which are conferred for generally superior
performance with respect to goals (Juran and Gryna, 1993).
 Public recognition is an important source of human motivation.
 Important feature of any quality improvement program is the
showing of due recognition for improved performance by any
individual, section, department or division within the firm.
 A large majority of firms implementing TQM modify their
performance measurement and reward systems so that
achievement of specific quality goals can be assessed and
rewarded.

Total Quality Management

 Education & Training

 Training programs attempt to teach employees how to perform

particular activities or a specific job.
 Institute a vigorous program of education and self-improvement
(Deming’s 13th point).
 According to Deming, Japanese firms obviously regard their
employees as their most significant competitive assets and
provide good general orientation as well as training in specific
skills.
 According to Feigenbaum, a brief and general course for first-line
supervision is modern methods of planning and controlling
quality, concentrating essentially upon the physical elements
affecting product quality.

Total Quality Management

 Performance Evaluation

 Evaluation can identify the difference between actual and

the expected performance.
 Evaluation information should be communicated to
employees in order to encourage employees to make things
better.
 Uncontrolled variance in processes or outcomes is the
primary cause of quality problems and must be evaluated
and controlled by those who perform the firm’s front-line
work.

It is important to note that the major aim of

evaluation is improvement, NOT criticism.

Total Quality Management

 Product Design (SW Dv’mt)

 Product design translates customer expectations or

requirements into specific engineering and quality
characteristics, which can be called specifications.
 It is an important practice for design engineers to have some
marketing knowledge, making it easier for them to understand
customer needs, expectations, and future requirements.
 Different departments in a firm should participate in new
product design.
 Before production, new product design should be thoroughly
reviewed in order to avoid problems during production.

Total Quality Management

 Good Managers (Leaders)

1. Give priority attention to customers and their

needs
2. Empower, rather than control, subordinates.
3. Emphasize improvement rather than
maintenance.
4. They emphasize prevention.
5. Encourage collaboration rather than competition.
6. They train and coach, rather than direct and
supervise.

Total Quality Management

 Good Managers (Leaders)

7. Learn from problems.

8. They continually try to improve communications.
9. They continually demonstrate their commitment to
quality.
10. Choose suppliers on the basis of quality, not price.
11. Establish organizational systems to support the
quality effort.
12. Encourage and recognize team effort.

Total Quality Management

 Understand People

 People,normally, need security and independence at the same

time.
 People are sensitive to rewards and punishments and yet are
also strongly self-motivated.
 People like to hear a kind word of appreciation.
 People can process only a few facts at a time; thus, a leader
needs to keep things simple.
 People trust their gut reaction more than statistical data.
 People don’t trust a leader (or boss) if the words are
inconsistent with the his/her actions.

Total Quality Management

 Old vs. TQM Approach

Quality Element Previous Approach TQM Approach

Definition Product-oriented Customer-oriented

Priorities 2nd to service and cost Equals of service and cost

Decisions Short-term Long-term

Emphasis Detection Prevention
Errors Operations System
Responsibility Quality control Everyone
Problem Solving Managers Teams

Procurement Price Life-cycle costs,partnership

Manager’s Role Plan, assign, control, Delegate, coach, facilitate

and enforce and mentor

Total Quality Management

 QoQ vs Performance Improvement
By Herb Krasner

Software
10 Quality

Cost of Quality
Business
Performance
Improvement
Multiplier 5

1 2 3 4 5 6 7

Years

Total Quality Management

 Advantages of TQM

• create an organizational • higher productivity,

atmosphere of increased morale,
excitement and sense of reduced costs, and
accomplishment through greater customer
the rewarding of commitment may lead
creativity.
to greater public
• Eliminating errors and support and
doing things right the first
improvement of an
time saves time and
organization’s public
resources
image.
 Advantages of TQM

• gives employees the • Total Quality

experience of Management may be
problem solving and a "profit generator,"
using their knowledge even for public
and experiences in a organizations
collaborative effort
 Disadvantages of TQM

• Long-range plans advocated • TQM detractors also argue

by TQM may limit an that although Total Quality
organization’s flexibility and Management calls for
agility. organizational change, it does
– Objectives the plan was not demand radical
designed to accomplish organizational reform
are forgotten; – Real quality improvement
requires radical structural change,
achieving the such as flattening organizational
transformation structures. It requires liberation of
becomes the most employees from stifling control
important objective. systems and the tyranny of
functionalism, both of which stifle
teamwork.
 Disadvantages of TQM

• Total Quality Management • Total Quality Management

calls for the elimination of the calls for its implementation to
goals and objectives required be immediate and complete.
by Management-by-
Objectives. • Total Quality Management
develops its own bureaucracy.
TQM detractors contend its
• Total Quality Management statistical burden and committee
calls for the elimination of structure is cumbersome, slows
performance assessments organizational momentum, and
that rate employees in relation consumes too much time and
to each other. resources.
 Disadvantages of TQM

• Opponents of Total • Total Quality

Quality Management Management calls for a
cultural transformation.
maintain that it
– Some argue it creates a
appeals to egotism. process-crazed
organization, similar to a
cult, where the impression
is that only total
commitment to TQM can
save the organization from
ruin.
Thanks
ASSIGNMENT:
CASE ANALYSIS
The Reservation Nightmare  H. James Harrington, a noted quality
  consultant, related the following story in Quality
DISCUSSION QUESTIONS Digest magazine:
Summarize the service I called to make a flight reservation just an hour
failures associated with ago. The telephone rang five minutes before a
this experience. recorded voice answered. ‘’Thank you for
What might the travel calling ABC Travel services,’’ it said. ‘’To
agency have done to ensure the highest level of customer service,
guarantee a better service this call may be recorded for future analysis.’’
Next I was asked to select from one of the
experience for Mr.
following choices: ‘’ If the trip is related to
Harrington? How do your
company business, press 1.Personal business,
suggestions relate to the press 2. Group travel, press 3.” I pressed 1.
TQ principles?

 
•  
ASSIGNMENT:
CASE ANALYSIS I was then asked to select from the following
choices: “If this is a trip within the United States,
The Reservation 
press 1.International, press 2.Scheduled training,
Nightmare  press 3. Related to conference, press 4.” Because I
  was going to Canada I pressed 2.
DISCUSSION QUESTIONS Now two minutes into my telephone call, I was
Summarize the service instructed to be sure that I had my customer
identification card available. A few seconds passed
failures associated with and a very sweet voice came on, saying, “All
this experience. international operators are busy, but please hold
What might the travel because you are a very important customer.’’ The
voice was then replaced by music. About two
agency have done to
minutes later, another recorded message said, “Our
guarantee a better operators are still busy, but please hold and the first
service experience for available operator will take care of you.’’ more
Mr. Harrington? How do music. Then yet another message: ‘’ Our operators
your suggestions relate are still busy, but please hold. Your business is
important to us.’’ more bad music.
to the TQ principles?
ASSIGNMENT:
CASE ANALYSIS Finally the sweet voice returned, stating, ‘’to
speed up your service, enter your 19-digit
The Reservation 
costumer service number.’’ I frantically
Nightmare 
searched for their card, hoping that I could
  find it before I was cut off. I was lucky; I found
DISCUSSION QUESTIONS it and entered the number in time. The same
Summarize the service sweet voice came back to me, saying, ‘’ to
failures associated with confirm your service number, enter the last
this experience. four digits of your customer service number,
enter the last four digits of your social security
What might the travel number.” I pushed the four numbers on the
agency have done to keypad. The voice said: ‘’ Thank you. An
guarantee a better operator will be with you shortly. If your call is
service experience for Mr. emergency, you can call 1-800-CAL-HELP, or
Harrington? How do your push all of the buttons on the telephone at the
suggestions relate to the same time. Otherwise, please hold, as you
TQ principles? are a very important customer.” This time, in
place of music, I heard a commercial about
the service that the company provides.
ASSIGNMENT:
CASE ANALYSIS
The Reservation  At last, a real person answered
Nightmare 
the telephone and asked,’’ Can I
 
DISCUSSION QUESTIONS
help you? ‘’ I replied, ‘’ Yes, oh
Summarize the service yes.’’ He answered, “Please give
failures associated with me your 19-digit customer service
this experience. number, followed by the last digit
What might the travel of your social security number so
agency have done to I can verify who you are.’’ (I
guarantee a better
service experience for Mr. thought that I gave these
Harrington? How do your numbers in the first place to
suggestions relate to the speed up service. Why do I have
TQ principles? to rattle them off again?
ASSIGNMENT:
CASE ANALYSIS • I was now convinced that he would call
The Reservation  me Mr. 5523-3675-0714-1313-040. But,
Nightmare  to my surprise, he said: “Yes, Mr.
  Harrington. Where do you want to go and
DISCUSSION QUESTIONS
when?” I explained that I wanted to go to
Montreal the following Monday morning.
Summarize the service
He replied: ‘’ I only handle domestic
failures associated with
reservations. Our international desk has
this experience.
a new number: 1-800-1WE-GOTU. I’ll
What might the travel transfer you.’’ A few clicks later a
agency have done to message came on, saying. ‘’All of our
guarantee a better international operators are busy. Please
service experience for Mr. hold and your call will be answered in the
Harrington? How do your
order it was received. Do not hang up or
suggestions relate to the
redial, as it will only delay our response
TQ principles?
to your call. Please continue to hold, as
your business is important to us.”