OPERATIONS MANAGEMENT AND TOTAL QUALITY MANAGEMENT

COURSE MATERIAL 7
INTRODUCTION TO TOTAL QUALITY MANAGEMENT

OVERVIEW OF TQM

 Quality Management philosophy was evolved in Japan after second world war.
 An American expert Edwards Deming helped Japanese to apply concepts of TQM.
 In the 1980 the U.S. Naval Air Systems coined the TQM phrase. The Navy based most
of the principles on the Japanese Total Quality Control philosophy.
 In 80’s most companies in the world started applying this concept and enhanced their
productivity and profitability remarkably.

TOTAL QUALITY MANAGEMENT:

 Is the enhancement to the traditional way of doing business.

 It describe a management approach to long term success through customer satisfaction.
o TOTAL: made up of whole or involvement of all levels in the organization.
o QUALITY: degree of excellence a product or service provides or conformance to
agreed upon requirements.
o MANAGEMENT: act, art or manner of handling, controlling, and directing.

GURUS OF TQM

 Dr. Walter Shewhart (1891-1967) USA

o Achievement: Control Charts
 with control limits, assignable and chance causes of variation, and
rational subgroups, he authored Economic Control of Quality of
Manufactured Product, which is regarded as a complete and though work
of the basic principles of quality control.
 Dr. Edward Deming (1900-1993) USA
o Achievement: PDSA cycle (PLAN, DO, STUDY, ACT)
 Credited for providing the foundation for Japanese quality miracle and
resurgence as an economic power.
o Best known quality expert in the world.
o Author of Deming 14 points of TQM that provides a theory for management to
improve quality, productivity, and competitive position.
 Joseph M Juran (1904 – 2008) USA
o Achievement: Juran Trilogy
 Is carried out by managing quality by three interrelated processes of
planning, control, and improvement.
 Philip Crosby (1926 – 2001) USA
o Achievement: Zero Defect philosophy
o Argued that doing it right the first time is less expensive than the costs of
detecting and correcting nonconformities.
 Kaoru Ishikawa (1915 – 1987) Japan
o Achievement: Fish bone diagram
 Genichi Taguchi
o Developed loss function concept that combines cost, target, and variation into
one metric.

ROLE OF TQM LEADERS

 All are responsible for quality improvement especially the senior management and
CEO’s
  Senior management must practice MBWA (management by wandering around – refers
to a style of business management which involves managers wandering around, in an
unstructured manner, through the work place /s to check with employees about the
status of ongoing work)
 Ensure that the team’s decision is in harmony with the quality statement of the
organization
 Senior tQM leaders must read TQM literature and attend conferences to be aware of
TQM tools and methods
 Senior managers must take part in award and recognition ceremonies for celebrating the
quality successes of the organization
 Coaching others and teaching in TQM seminars
 They must live and communicate TQM

PRIMARY ELEMENTS OF TQM

 TQM can be summarized as a management system for a customer-focused organization

that involves all employees in continual improvement.
o It uses strategy, data, and effective communications to integrate the quality discipline
into the culture and activities of the organization. Many of these concepts are present
in modern quality management systems, the successor to TQM.

8 PRINCIPLES OF TQM
1. Customer Focused:
 The customer ultimately determines the level of quality. No matter what an
organization does to foster quality improvement—training employees, integrating
quality into the design process, or upgrading computers or software—the
customer determines whether the efforts were worthwhile.
2. Total Employee Involvement:
 All employees participate in working toward common goals. Total employee
commitment can only be obtained after fear has been driven from the workplace,
when empowerment has occurred, and when management has provided the
proper environment. High-performance work systems integrate continuous
improvement efforts with normal business operations. Self-managed work teams
are one form of empowerment.
3. Process- Centered:
 A fundamental part of TQM is a focus on process thinking. A process is a series
of steps that take inputs from suppliers (internal or external) and transforms them
into outputs that are delivered to customers (internal or external). The steps
required to carry out the process are defined, and performance measures are
continuously monitored in order to detect unexpected variation.
4. Integrated System:
 Although an organization may consist of many different functional specialties
often organized into vertically structured departments, it is the horizontal
processes interconnecting these functions that are the focus of TQM.
5. Strategic and systematic approach:
 A critical part of the management of quality is the strategic and systematic
approach to achieving an organization’s vision, mission, and goals. This process,
called strategic planning or strategic management, includes the formulation of a
strategic plan that integrates quality as a core component.
6. Continual improvement:
 A large aspect of TQM it drives an organization to be both analytical and creative
in finding ways to become more competitive and more effective at meeting
stakeholder expectations.
7. Fact-based decision making:
 In order to know how well an organization is performing, data on performance
measures are necessary. TQM requires that an organization continually collect
and analyze data in order to improve decision making accuracy, achieve
consensus, and allow prediction based on past history.
8. Communications:
  During times of organizational change, as well as part of day-to-day operation,
effective communications plays a large part in maintaining morale and in
motivating employees at all levels. Communications involves:
i. Strategies
ii. Methods
iii. Timeliness
Note: These elements are considered so essential to TQM that many organizations define
them, in some format, as a set of core values and principles on which the organization is to
operate.

BENEFITS OF TQM

 Strengthened competitive position

 Adaptability to changing or emerging market conditions and to environmental and other
government regulations
 Higher productivity
 Enhanced market image
 Elimination of defects and waste
 Reduced costs and better cost management
 Higher profitability
 Improved customer focus and satisfaction
 Increased customer loyalty and retention
 Increased job security
 Improved employee morale
 Enhanced shareholder and stakeholder value
 Improved and innovative processes

W.EDWARDS DEMING’S 14 POINTS FOR TQM OR ( DEMING MODEL OF QUALITY MNGT)

a core concept on implementing total quality management (TQM), is a set of
management practices to help companies increase their quality and productivity.

1. Create constancy of purpose for improving products and services.

2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total cost by
working with a single supplier.
5. Improve constantly and forever every process for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for management.
 12. Remove barriers that rob people of pride of workmanship, and eliminate the annual
rating or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.

NOTE:
These total quality management principles can be put into place by any organization to more
effectively implement total quality management.

OBSTACLES OF TQM:

 Lack of management commitment

 Inability to change organizational culture
 Improper planning
 Lack of continuous training and education
 Incompatible organizational structure and isolated individuals and departments
 Paying inadequate attention to customers
 Inadequate use of empowerment and team work
 Failure to continually improve

References:
https://www.kbmanage.com/concept/management-by-walking-around
https://www.slideshare.net/ZubairNoorMemon/lecture-of-tqm
https://asq.org/quality-resources/total-quality-management
https://asq.org/quality-resources/total-quality-management/tqm-gets-results
https://asq.org/quality-resources/total-quality-management/deming-points
https://www.slideshare.net/ZubairNoorMemon/introduction-to-tqm-11872411

This reflection paper is an analysis of what you learned from our studies. Your answers will
come from a few questions, and it is as follows: What are the important things you learned from
the topics we discussed? How do you think you can apply your lessons in your personal and
professional life?