Session X

“Total Quality Management”

Total Quality Management

(TQM)

Objectives TQM components

1. Improve the performance of the organization

2. Identify means of continuous organization improvements

3. Support the organizations in its efforts to obtain the ISO 9001-2008

4. Support the organization in implementing total quality management systems

5. Follow up the overall organization performance

Development of the Concept of Quality

The concept of quality developed over the past years

from a concept that describes the quality of the

product to a concept highlighting the quality of

operations and finally to a term that includes all

matters related to quality in general.

The Historical Development of (TQM)

1975 1980 1985 1990 1995 2000

Process Customers Innovation

Quality of

Working

Environment

Quality

Circles

Productivity

Employee

involvement

Quality

Control

Employee

Empowerment

Quality

Assurance

Self-direction

Teams

TQM

Self-

management

Teams

Total Quality Management

• TQM is the correct work performance which takes the feedback of the beneficiary into account to assess the level of improved performance

• TQM is a form of collaborative business performance depending on the joint capacity of both management and employees with a view to continuous improvement in quality and productivity through organization teams

• Continued development of quality, productivity and efficiency

• Strong and sustained focus on meeting and satisfying customer needs through the continuous development of final operational results to correspond to the needs of the client/customer

Total Quality Management

• ManagementDevelop and maintain the organization's potential to improve the quality

on a continuous basis

• QualitySatisfying customer needs

• TotalQuality in all its facets starting from the identification of customer needs

and ending with assessing whether the customer is satisfied or

dissatisfied with the services or products provided to him

TQM and ISO 9001

• ISO assures quality of operations and quality of the processes involved in the provision of services to clients

• Total Quality Management works to assure quality for all organization elements to achieve the highest degree of satisfaction for services provided to customers

TQM and ISO 9001

ISO9001

TQM

Organization

Input

Mission

Output

Management

Culture

Personnel

Systems

Process

Factors

Actors

Support

Rule

s

Regula

tions

Restr

ictions

Polic

ies

Positiv

e I

nfluence

Structure

The Quality of Outcomes

The quality of outcomes refers to the results

achieved by an organisation

Generally, criteria for determining the quality of

outcomes include:

• Are objectives being met?

• Do results show a positive trend over time?

• Are results better or at least as good as those of competitors or

comparable companies?

• Do results give impulses for (continuous) improvement?

The Quality of Outcomes

• Though we generally focus on product and / or service quality,

they can usually only be achieved if process and structural

quality are given. The quality of outcomes is achieved, if all of

the other types of quality are also achieved.

• This is a basic idea of quality management – but it is

implemented by applying a systematic approach described by

the cycle of Plan-Do-Check-Act

TQM and Plan-Do-Check-Act

Do

CheckAct

Plan

The Process Model of ISO 9001

Management

Responsibility

Resource

Management

Measurement, Analysis, and Improvement

Product RealizationInputProduct /Service

Output

Continual Improvement of the

Quality Management System

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EFQM Excellence Model

Committment of Leadership to the TQM process, results and continual

improvement

Demonstrated through:

Communicating the importance of meeting customer requirements as

well as all statutory and regulatory requirements

Establishing a Quality Policy

Ensuring that Quality Objectives are established

Conducting Management Reviews regarding the effectiveness and

improvement of TQM for the organisation

Ensuring the availability of resources for TQM, including

• Financial resources where appropriate

• Training and development of the organisation‘s people for TQM

General Principles of TQM – Committment

of Leadership

Business and Customers

Customers and their requirements

• Who are your customers?

• What are their requirements –

now?

• What are their requirements – in

the future?

• Will these customers also be

your customers in the future?

• How do you determine the

satisfaction of your different

customer groups?

Your Business

• What are the main

business activities?

• What are the main

requirements for

providing new services

and products?

• How do you

define/describe new

services and activities?

TQM Implementation Constraints

• Lack of commitment on the managers’ side

• Anti-change forces inside the organization

• Insufficient planning

• Necessity for continuous training sessions

TQM benefits

• Productivity improvement

• Participation of employees

• Teamwork

• Satisfaction of internal and external clients

• Profit maximization

• Market share growth

The Principles of Total Quality Management

• Customer Focus

• Leadership

• Involvement of People

• Process Approach

• System Approach to Management

• Continual Improvement

• Factual Approach to Decision Making

• Mutually Beneficial Supplier Relationships

Customer Focus

Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.

Leadership

Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization‘s objectives.

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.

Process Approach

A desired result is achieved more efficiently when activities and related resources are managed as a process

System Approach Management

Identifying, understanding and managing interrelated processes in a system contributes to the organization‘s effectiveness and efficiency in achieving its objectives.

Continual Improvement

Continual improvement of the organization‘s overall performance should be a permanent objective of the organization.

Factual Approach to Decision Making

Effective decisions are based on the analysis of data and information

Mutually Beneficial Supplier Relationships

An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.