TOTAL QUALITY MANAGEMENT

Presented By:

Ms. Irum Shahzadi

Lecture For MBA 4th

27.03.2013

Contents

• Background and Historical review of Quality Management,

• Total Quality Management (Definition),

• Goal of the TQM,

• 8 Principles of Total Quality Management.

Evaluation of Quality Management

• In 1924, W. Shewhart and Roming of Bell Telephone Laboratories, USA developed a statistical chart for the control of product variables.• World War II caused a dramatic increase in emphasis on

quality control.• In 1946,the American Society for Quality Control was

formed.• In 1950, W. Edwards Deming (American), who learnt QC

from Shewhart, taught to Japanese engineers and CEO’s (14 points)• Dr. Armand Feiganbaum wrote “ Total Quality

Management” in 1950.• In 1954,Joseph Juran taught Japanese managements their

responsibility to achieve quality. (10 points)

• In 1960, the first quality control circles were formed. • 1970’s US managers were learning from Japan Quality

implementation miracles.

• Dr. Ishikawa was student of Deming, Juran and Feiganbaum. He is best known for “Cause and effect Diagram.

• Dr. Philip Crosby wrote “Quality is Free” in 1979. (14 points)

• In 1980’s TQM principles and methods became popular.

• In 1990’s ,the ISO 9000 model became the world-wide standard for QMS.

Evaluation of Quality Management

Total Quality Management (Definition)

“TQM refers to an integrated approach by management to focus all functions and levels of an organization on quality and continuous

improvement for the sake of ensuring a product’s quality throughout its life cycle.”

“Concerning all systems, processes and resources to bring constant improvement in the quality of each and every function, activity,

product or service of a company to satisfy internal as well as external customers to achieve the organizational goals.”

The foundation of total quality management is to supports meeting customer requirements through continuous improvement.

Key Point: two main objectives:

(1) Total Customer Satisfaction through quality products and services; (2) continuous improvements to processes, systems, people, suppliers, partners, products, and services.

Total Quality Management (Definition)

TQM is an on going management process used to

make continuous improvements to all functions.

“Do the things right the first time, every time.”

The culture requires quality in all aspects of the company's operations, with processes being done right the first time and

defects and waste eradicated from operations.

What’s the goal of TQM?

8 Principles of Total Quality Management• Principles of TQM

1.1. Customer-oriented

2.2. Leadership Role

3.3. Involvement of people

4.4. Continuous improvement

5.5. Mutual beneficial Supplier Relationship

6.6. Process approach

7.7. System approach to Mgt

8.8. Factual decision making

To be successful implementing TQM, an organization must concentrate on the eight key elements

1. Customer focus

"Organizations depend on their customers and therefore should

understand current and future customer needs, meet customer

requirements and strive to exceed customer expectations".

An excellent place to start is by satisfying internal customers.

We must listen to the “ voice of the customers” and emphasize

design quality and defect prevention for customer satisfaction.

1. Customer focus

Steps in application of this principle are ...

Understand customer needs and expectations for products.Ensure a balanced approach among customers and other stake holders (owners, people, suppliers, local communities and society at large) needs and expectations.Communicate these needs and expectations throughout the organization.Measure customer satisfaction & act on results, andManage customer relationships.

2. Leadership Role

"Leaders establish unity of purpose and provide direction and long

term (Top to Bottom) support for all quality initiatives. They should

create and maintain the internal environment in which people can

become fully involved in achieving the organization's objectives." Quality goals are a moving target (a journey), thereby requiring a commitment toward continuous improvement. A quality council must be established to develop a clear vision and to direct the program.Quality goals are included in the business plan. An annual quality improvement program is established and involves input from the entire work force. TQM is a continual activity that must be entrenched in the culture

2. Leadership RoleSteps in application of this principle are ... Be proactive and lead by example.Understand and respond to changes in the external environment.Consider the needs of all stake holders including customers, owners, people, suppliers, local communities and society at large.Establish a clear vision of the organization's future, shared values and ethical role models at all levels of the organization.Build trust and eliminate fear.Provide people with the required resources and freedom to act with responsibility and accountability.Inspire, encourage and recognize people's contributions.Promote open and honest communication.Educate, train and coach people.Set challenging goals and targets, and implement a strategy to achieve these goals and targets.

3. Involvement of People

"People at all levels are the essence of an organization and their full

involvement enables their abilities to be used for the organization's benefit".

To become successful in business, teamwork is also a key element of TQM.

Insure employee involvement by giving them authority, removing fear from

work place, then empower employee. Then provide the proper environment.

Quality is not only the responsibility of Quality Control, each employee

working in the organization personally responsible for the task assigned.

With the help of employee involvement, business will receive quicker and

better solutions to problems. Only employees can provide more permanent

improvements in processes and operations.

3. Involvement of PeopleSteps in application of this principle are...

Accept ownership and responsibility to solve problems.Actively seek opportunities to make improvements, and enhance competencies, knowledge and experience.Freely share knowledge & experience in teams.Focus on the creation of value for customers.Be innovative in fostering the organization's objectives.Improve the way of representing the organization to customers, local communities and society at large.Help people derive satisfaction from their work, andMake people enthusiastic and proud to be part of the organization

4. Continuous improvement

"Continual improvement should be a permanent objective of the

organization. There must be a continues striving to improve all

business and production processes”. Quality improvement projects are good place to begin e.g. on time delivery, order entry efficiency, billing error rate, customer satisfaction, scrape reduction, supplier management. Technical techniques such as SPC, bench marking, quality function deployment, ISO 9000 are excellent problem solvingContinuous attempt made to improve quality by new technology or methods e.g. using analytical, quality tools and creative thinking to become more efficient and effective.

4. Continuous improvementSteps in application of this principle are ...

Make continual improvement of products, processes and systems an objective for every individual in the organization and then apply it. Use periodic assessments against established criteria of excellence to identify areas for potential improvement.Continually improve the efficiency and effectiveness of all processes.Promote prevention based activities.Provide every member of the organization with appropriate education and training about the methods and tools of continual improvement such as the Plan-Do-Check-Act cycle , problem solving , process re-engineering, and process innovation.Establish measures and goals to guide and track improvements, andRecognize improvements.

5. Mutual Beneficial Supplier Relationship

"An organization and its suppliers are interdependent, and a mutually beneficial relationship enhances the ability of both to

create value." Communication means a common understanding of ideas between the sender and the receiver. Its communication which binds everything together and create a vital link between all elements of TQM.Supplier relationship, communication strategy and method and timeliness must be well defined. Supplier quality must be outstanding and should in few in numbers.

5. Mutual Beneficial Supplier Relationship

Steps in application of this principle are ...

Identify and select key suppliers.Establish supplier relationships that balance short-term gains with long-term considerations for the organization and society at large.Create clear and open communications.Initiate joint development and improvement of products and processes.Jointly establish a clear understanding of customers' needs.Share information and future plans, andRecognize supplier improvements and achievements.

“A desired result is achieved more efficiently when related

resources and activities are managed as a process."

 

6. Process approach

Steps in application of this principle are ... Define the process to achieve the desired result.Identify and measure the inputs and outputs of the process.Identify the interfaces of the process with the functions of the organization.Evaluate possible risks, consequences and impacts of processes.Establish clear responsibility, authority, and accountability for managing the process.Identify internal and external customers, suppliers and other stake holders of the process, andWhen designing processes consider process steps, flow of activities, control measures, training needs, information and other resources to achieve the desired result.

6. Process approach

"Identifying, understanding and managing a system of interrelated

processes for a given objective improves the organization's

effectiveness and efficiency."

Strategic and systematic approach is necessary for the successful

implementation of TQM. Integration of all process into system is

necessary. Strategic plan must integrate quality as core component.

 

7. System approach to Management

Steps in application of this principle are ...

Define the system by identifying processes that affect a given objective. Structure the system to achieve the objective in the most efficient way.Understand the interdependencies among the processes of the system. Continually improve the system through measurement and evaluation, andEstimate the resource requirements and establish resource constraints prior to action.

7. System approach to Management

"Effective decisions are based on the analysis of data and information."

Decision making must be ONLY on data, not personal or situational

thinking….You must speak with data and facts not just opinions.

The results of TQM should be shared with all relevant members of the

organization.

 

8. Factual approach to decision making

Steps in application of this principle are ...

Take measurements, collect data and information relevant to the

objective.

Ensure that the data and information are sufficiently accurate, reliable

and accessible.

Analyze the data and information using valid methods.

Understand the value of appropriate statistical techniques, and

Make decisions and take action based on the results of logical analysis

balanced with experience and intuition.

8. Factual approach to decision making