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4The 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 TQM1. Product
2. Process
3. System
4. People
5. 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 Control Maintaining Status quo
Quality standards Use of statistical methods Process performance Product testing
Quality Assurance Prevention Quality system (ISO 9000) Quality costing Quality planning and policies Problem solving Quality design
Total Quality Management
Quality as a Strategy
Quality Strategy Customers, employees and
suppliers involvement Involve all operations Empowerment and teamwork
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
BPM
QCCs
QMS
TPM
QM
OperationsManagement
QualityManagement
Traditional Organisation Vs TQM Organisation
Customer driven
Long-term orientation
Data-driven
Elimination of waste
Continuous improvement
Prevention
Cross-functional teams
High employee participation
Problem-solving
Systems Thinking
Leadership
Company-driven
Short-term orientation
Opinion-driven
Tolerance of waste
Fire fighting
Inspection
Fortressed departments
Top-down hierarchy
Blame
Isolation
Management
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. Train top management on TQM principles.
2. Assess the current: Culture, customer satisfaction, quality management system
3. Top management determines the core values and principles to be used and communicate them.
4. Develop TQM master plan based on steps 1, 2, 3.
5. Identify and prioritize customer needs and determine products or service to meet those needs.
TQM Implementation
6. Determine the critical processes to produce those products or services.
7. Create process improvement teams.
8. Managers should support effort by planning, training, time.... to the teams.
9. Integrate changes for improvement in daily process management and standardizations take place.
10. Evaluate progress against plan (step 8) and adjust as needed.
11. Constant employee awareness and feedback on status are provided and a reward/ recognition process is established.
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.