The Philosophy of TQM: TQM Is A Journey Not A Destination

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4

The Philosophy of TQM


TQM is a journey not a destination V. Daniel Hunt

Course Oultine- Session 4


4 TQM Basics Definition of TQM, Evolution of TQM, Key Elements of TQM, Benefits of TQM Reading: Text Book, Chapter 3 , pg. (67-78)

Learning Objectives
After studying this chapter, you should be able to:


Explain the evolution of TQM
Understand the key principles and key elements of TQM Explain the core concepts of TQM Discuss the Total Quality Management Excellence (TQMEX) Model Find out the difference between TQM organization and traditional organization Identify common barriers to implementation of TQM and prerequisites and benefits of TQM

TQM - Defined

TQM is an integrated effort designed to improve quality


performance at every level of the organization.

Total = Quality involves everyone and all activities in the company.

Quality = Conformance to Requirements (Meeting Customer Requirements)

Management = Quality can and must be managed

Definition of TQM
TQM is a process for managing quality. It is viewed as a continuous way of life and a philosophy of perpetual improvement in everything we do.

According to the British Standard BS

7850, TQM is defined as Management Philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization.

Definition of TQM
TQM is defined as a management approach that tries to achieve and sustain long term organizational success by encouraging employee feedback and participation, satisfying customer needs and expectations, respecting societal values and beliefs, a paradigm.

Five Pillars of TQM


1. 2. Product Process

3.
4. 5.

System
People Leadership

TQM - System

focuses on meeting owners/customers needs by providing quality services at a cost that provides value to the owners/customers is driven by the quest for continuous improvement in all operations recognizes that everyone in the organization has owners/customers who are either internal or external views an organization as an internal system with a common aim rather than as individual departments acting to maximize their own performances focuses on the way tasks are accomplished rather than simply what tasks are accomplished

Evolution of TQM Four Stages


Quality Management Stages Areas of Focus Scope

Inspection

Detection

Error Detection Sorting, grading, reblending Rectification Decision about salvage and acceptance Quality standards Use of statistical methods Process performance Product testing Quality system (ISO 9000) Quality costing Quality planning and policies Problem solving Quality design Quality Strategy Customers, employees and suppliers involvement Involve all operations Empowerment and teamwork

Quality Control

Maintaining Status quo

Quality Assurance

Prevention

Total Quality Management

Quality as a Strategy

Seven Phases in the Development of TQM

TQM Principles

Customer focused organisation Leadership Involvement of people Process approach Systems approach to management Continuous improvement Factual approach to decision making Mutually beneficial supplier relationship

TQM Key Elements

Core Concepts of TQM


The core concepts of TQM are used to drive the process of continuous improvement and they are explained by the criteria such as:

Customer Satisfaction Internal customer satisfaction

All work is process


Measurement Synergy in team work People make quality Continuous improvement cycle Prevention

TQMEX Model
5-S
Operations Management

BPM

QCCs
QMS
Quality Management

TPM QM

Traditional Organisation Vs TQM Organisation



Company-driven Short-term orientation Opinion-driven Tolerance of waste Fire fighting Inspection Fortressed departments Top-down hierarchy Blame Isolation Management

Customer driven
Long-term orientation Data-driven Elimination of waste

Continuous improvement
Prevention Cross-functional teams High employee participation

Problem-solving
Systems Thinking Leadership

Prerequisites for TQM



Management must establish TQM as an objective and accept responsibility Top management must be able to overcome the obstacles Participation by all Dedicated resources Management commitment Requirement of cultural change Continuous training

TQM Implementation
1. 2. Train top management on TQM principles. Assess the current: Culture, customer satisfaction, quality management system Top management determines the core values and principles to be used and communicate them. Develop TQM master plan based on steps 1, 2, 3. Identify and prioritize customer needs and determine products or service to meet those needs.

3.

4. 5.

TQM Implementation
6. 7. 8. 9. Determine the critical processes to produce those products or services. Create process improvement teams. Managers should support effort by planning, training, time.... to the teams. Integrate changes for improvement in daily process management and standardizations take place. Evaluate progress against plan (step 8) and adjust as needed. Constant employee awareness and feedback on status are provided and a reward/ recognition process is established.

10. 11.

TQM Implementation Common Barriers



Lack of systems Lack of Procedures Inappropriate Organisation culture Lack of organisation design Lack of Management commitment

Benefits of TQM

Creates a good corporate culture

Better reviews from customer


Improved employee performance Encourages a strategic approach to management

Provides high return on investment through improving efficiency.


Works equally well for service and manufacturing sectors. Allows organizations to take advantage of developments that enable managing operations as cross-functional processes.

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