UNIT 1

TQM-History and Evolution

 Activity
• Top 5 quality brand chocolate companies –India
and abroad
• Top 5 quality brand apparel companies –India and
abroad.
• Top 5 quality brand automotive companies –India
and abroad.
• Top 5 quality brand hotels –India and abroad.
• Top 5 quality brand tourism companies –India
and abroad.
• Top 5 quality brand film producing companies –
India and abroad.
• Top 5 universities in India
 Introduction
• Poor quality status are seen everywhere like
prematurely expiring light bulbs, late trains and
aeroplanes etc.
• Shows real cost of quality failure
• Consumers have become intolerant to such poor
quality services
• In global competitive market place, demands for
customers are ever increasing.
• Customers do look out for improved and good
quality product and services
• Organizations who are capable are providing the
above are able to survive in the global markets
 Cont.…
• Such companies maintain competitive edge a
company has an advantage over
its competitors.
• Meeting customers expectation, one of the
important dimension of quality and essential
task in business.
• This stimulated the quality performance in
1970s and 80s
 Quality - meaning
• Originates from Latin word “quails” meaning
such as the thing really is”.
• Quality means excellence
• Involves meeting customers expectations
• Applies to products, people, processes and
environments
• Quality is ever-changing state
• Compare ROLL-ROYCE AND TOYOTA COROLLA
Small “q” and Big “Q” meaning-quality
• Small “q” means firms approach to quality and
product quality.
• It emphasis that goods produced are fit to be
sent to the customers.
• Helps to find methods to prevent recurrence
of defects.
• It exists in situation where demand exceeds
supply.
• Absence of feedback.
 Big “Q” meaning
• Includes product quality, process and
consumers.
• Its approach its very broad as it talks about
total quality management.
• It concentrates on customer satisfaction.
• Leads to zero defects.
• Existence of proper Feedback that enables the
utilisation of feedback information.
 MEANING OF TQM
• describes a management approach to long–
term success through customer satisfaction.
• In a TQM effort, all members of an
organization participate in improving
processes, products, services, and the culture
in which they work.
• In simpler manner, giving people and society
good things through quality
 Features
• Improving
• Quality centric
• Customer satisfaction
• Team work and employee involvement
• Cyclic process
• Helps in making and taking better decisions
• Systems in quality management are
dependant on each other
 6 BASIC CONCEPTS-TQM
• COMMITTED AND INVOLVED OVERALL
ORGANIZATIONAL SUPPORT
• CUSTOMER FOCUS
• EFFECTIVE INVOLVEMENT AND UTILISATION
OF THE ENTIRE WORKFORCE(EMPLOYEE
INVOLVEMENT)
• CONTINOUS IMPROVEMENT
• TREATING SUPPLIERS AS PARTNERS (SUPPLIER
PARTNERSHIP)
• PERFORMANCE MEASUREMENT
PRINCIPLES OF TQM
 Principles of TQM-DEMING
• 1. Customer-focused
• The customer ultimately determines the level
of quality.
• training employees, integrating quality into
the design process, upgrading computers or
software, or buying new measuring tools—the
customer determines whether the efforts
were worthwhile
 Concepts….
• 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, proper environment.
• High-performance work systems integrate
continuous improvement efforts with normal
business operations.
 Cont.…
• 3. Process-cENtered
• A fundamental part of TQM is a focus on process thinking.
• 4. Integrated system
• It is a horizontal process
• vision, mission, quality policies, objectives, and critical
processes of the organization.
• Business performance must be monitored and communicated
continuously.
• unique work culture
• Thus, an integrated system connects business improvement
elements in an attempt to continually improve and exceed
the expectations of customers, employees, and other
stakeholders.
 Cont.…
• 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
 Cont.….
• 6. Continual improvement
• 7. Fact-based decision making
• In order to know how well an organization is
performing, data on performance measures are
necessary.
• 8. Communications
• effective communications plays a large part in
maintaining morale and in motivating employees
at all levels.
 Deming's 14-Point Philosophy
• Dr. W. Edwards Deming. A statistician who went to
Japan to help with the census after World War II.
• Deming also taught statistical process control to
leaders of prominent Japanese businesses.
• His message was this: By improving quality,
companies will decrease expenses as well as
increase productivity and market share.
• Japanese businesses like Toyota, Fuji, and Sony saw
great success.
 1.Create a constant purpose toward
improvement
• .Plan for quality in the long term.
• Resist reacting with short-term solutions.
• Don't just do the same things better – find
better things to do.
• Predict and prepare for future challenges, and
always have the goal of getting better.
 2. Adopt the new philosophy.
• Embrace quality throughout the organization.
• Put your customers' needs first, rather than
react to competitive pressure – and design
products and services to meet those needs.
• Be prepared for a major change
• Create your quality vision, and implement it.
3. Stop depending on inspections.
• Inspections are costly and unreliable – and
they don't improve quality, they merely find a
lack of quality.
• Build quality into the process from start to
finish.
 4. Use a single supplier for any one
item.
• Look at suppliers as your partners in quality.
Encourage them to spend time improving
their own quality
• Analyse the total cost to you, not just the
initial cost of the product.
• Use quality statistics to ensure that suppliers
meet your quality standards
5. Improve constantly and forever.
• Continuously improve your systems and
processes. Deming promoted the Plan-Do-
Check-Act approach to process analysis and
improvement.
• Emphasize training and education so everyone
can do their jobs better.
• Use kaizen as a model to reduce waste and to
improve productivity, effectiveness, and
safety.
 6. Use training on the job.
• Train for consistency to help reduce variation.
• Build a foundation of common knowledge.
• Allow workers to understand their roles in the
"big picture."
• Encourage staff to learn
 7.Implement leadership.
• Expect your supervisors and managers to
understand their workers and the processes
they use.

• 8. Eliminate fear.
• 9. Break down barriers between
departments.
• 10. Get rid of unclear slogans.
 11. Remove barriers to pride of
workmanship.
• Allow everyone to take pride in their work
without being rated or compared.
• Treat workers the same
• 12. Implement education and self-
improvement.
• Improve the current skills of workers.
• Encourage people to learn new skills.
• Build skills to make your workforce more
adaptable to change
 13. Make "transformation"
everyone's job.
• Improve your overall organization by having
each person take a step toward quality.
• Analyse each small step, and understand how
it fits into the larger picture.
• Use effective change management principles
 JURAN
• Dr.Joseph Juran greatest contributor to TQM
• Wrote 12 books
• He defined TQM as 1. product performance that
results in customer satisfaction 2. freedom from
product defects, avoid customer dissatisfaction –
fitness of use
• Fitness of use has 5 qualities
• 1. quality of design- product specific
• 2.quality of conformance(following international
standards)
• 3. availability- reliability, maintainability and
logistical support
 Cont.…
• 4. safety-reflects the threat of harm to the
user of the product.
• 5. Field service: condition of the product once
it reaches the customers hand depending on
packaging, storage, field support and
maintenance.
Juran's quality trilogy diagram
 CONT..
• Quality planning: leads to identification of
customers, their needs, product features,
accident features.
• He insisted that employees should know
about products.
• Quality control: what to control? How,
data evaluation, measure actual and estimated
performance and interpret.
Quality improvement: leads to maintenance
 PHILIP CROSS BY
• 3RD MAJOR Contributor
• His points are: quality should lead to customer
satisfaction.
• Quality lies in functional departments and not in
quality dept.
• 15-20% of sales revenues are spent on quality costs,
should be reduced.
• Successful quality lead to thorough study and
evaluation of current processes
• Performance standard is always is “zero defect”
 Genichi Taguchi contribution
• Major contribution is “Design of experiments”
• He originated quality engineering which combines
engineering and statistical methods
• It is used in manufacturing companies.
• He speaks about target value
• If target value is not achieved then it a loss.
• The loss has to be faced by consumers like shortage
of product life, increased maintenance and repair
costs.
• This leads to reduction in market share, goodwill.
 KAORU ISHIKAWA
• Japanese quality authority till 1989
• He acknowledge DEMING AND JURANG work
• He brought the concept of CWQC-company wide
quality control
• It is an auditing process used to select companies
for Deming’s prize
• He also initiated the concept QUALITY CONTROL
CIRCLES
• Also introduced cause and effects and fish bone
diagrams.
• He insisted on trademarks concept, bottom up view
of quality management.
 A.V.FEIGENBAUM AND TQM
• He highlighted on 3 concepts:
• Quality leadership: he insisted on sound planning
which reduces failures.
• Modern quality technology: helps to solve 80-90
percent of the problems.
• Needs integration of staffs, engineers and shop
floors workers.
• Organizational commitment: continuous training
and motivation, integration of quality leads to
commitment.
 Dr.Shewharat and TQM
• A mathematician at Bell Labs
• He introduced statistical process control
• He combined statistics and quality
• Helps to identify defective activities.
 Who is a customer?
• One who purchases a product or service
• This is a traditional definition and concept
• There is a purchase transaction between buyer and
seller or commodity provider.
• According to TQM : one type of customer is known
as the external customer who exists outside the
organization and buys its products.
• 2.internal customer who are involved in processes
and service
 Basic requirements of internal and
external customers
• High levels of quality: all dimensions should be
concentrated.
• A high degree of flexibility: handling external
customers is important.
• High levels of service in delivery: 2 types 1.
subjective measures of customer service include
humanity in service delivery.
• 2. objective measures include having required item
in stock.
• Quick response (speed) : timely and quick delivery
and quickly introducing attractive new goods and
services
 Customer perception on quality
• According to American Society for Quality lists the
factors of quality according to customers:
• 1. performance 2. features 3. service 4. warranty
• 5. price 6. reputation –brand image 7.fitness of use
8. Availability 9.reliability and maintainability.
Total customer satisfaction depends on the entire
experience of the organization.
 Key excellence indicators of customer
satisfaction
• Service standards derived from customers
• Understanding customer requirements
• Front line empowerment
• Infrastructure support for Front line
employees.
• Attention to hiring, training, attitude and
morale.
• Introducing customer awards
 Cont…
• Proactive management of relationships with
customer.
• Commitment to customers.
Model of customer satisfaction
 Cont…
• This model highlights customer satisfaction through
product features:
• 1. Basic features: include which customers expect to
have and providing basic features will not result in
customer satisfaction.
• 2. performance features is directly related customer
satisfaction.
• 3.excitement features are convenience features that
make pleasant for the consumers to use the
product. This is available with little added cost
 Cont..
• This model talks about customer satisfaction
in 3 ways: 1. explicit requirements-ie written
or verbal which helps to identify the products.
• 2. innovation which helps to know the
perceptions of customer satisfaction-curved
line
• 3. the least curved line which is the unstated
requirements.
 Service quality in TQM
• Service industries dominate our economy.
• It accounts to 75-80 percent in the near future.
• Quality management and quality improvement are
mandatory for success of the service sector.
• Service concept is a combination of both technical
and human behavioural aspects.
• Service can be defined as “a social act which takes
place in direct contact between customer and
representatives of the service company”
 Benefits of good service-organization
point of view
• Enhances customer loyalty-20-80 rule
• Present customers helps to increase the
business
• Better relationship and rapport with
customers will enable staff to identify
customer needs and suggest relevant products
and services
• Good service enhances corporate image
 Cont..
• Employees will have job satisfaction and morale,
commitment to the company, good employer –
employee relationship and increased loyalty
reduces employee turnover, costs of training,
selection and recruitment.
 Service quality
• Is concerned with meeting customer needs
and requirements and with how well the
service level delivered matches customer
expectations.
• Eg: in banking services a checking account is a
core service product whereas additional
services provided by banks are ATM, 24 hours
telephone services relating to accounts,
Debit/credit card services.
 Ten determinants of service quality
• Reliability
• Responsiveness
• Competence
• Access
• Courtesy
• Communication
• Credibility
• Security
• Understanding and knowing the customer
• tangibles
 Factors affecting service quality and
customer satisfaction
• 1. HYGIENE FACTORS: cleanliness in hotels,
train arrival time.
• 2.ENHANCING FACTORS: eg: welcome of a
waiter in a hotel. This if not delivered will not
dissatisfy an customer.
• 3.DUAL THRESHOLD FACTORS: eg those for
which failure to deliver will cause
dissatisfaction and delivery above a certain
level will enhance customer’s perception and
leads to satisfaction.
 FIVE STARS OF SERVICE QUALITY
• Tangibles – Appearances of written materials,
personnel, equipment and physical facilities.

Empathy – Caring and personal attention given to the

customers.

Assurance – Courtesy and employees' knowledge as

well as their ability to inspire confidence and trust.

Responsiveness – Readiness to provide services and

quick aid to the customers.

Reliability – Ability of doing the promised services

correctly.
 CONTINOUS IMPROVEMENT (KAIZEN)
• Japanese concept called KAIZEN
• It is a philosophy of continually seeking ways to
improve operations.
• It applies to process improvement.
• It identifies benchmark of excellent practice and
provides a sense of ownership.
• It also focuses on problems with customers or
suppliers.
• It is inherent part of total quality management.
• It helps to perform better.
 benefits
• It performs at its best.
• Frustration and abandonment are avoided.
• It leads to gradual and continuous progress
through incremental improvements
• It helps the companies to compete globally.
• Helps the organizations to train its employees.
• Helps to solve problems within work teams.
• Provides a sense of ownership.
PDCA
 When to Use Plan–Do–Check–Act

• As a model for continuous improvement.

• When starting a new improvement project.
• When developing a new or improved design of a
process, product or service.
• When defining a repetitive work process.
• When planning data collection and analysis in
order to verify and prioritize problems or root
causes.
• When implementing any change.
 Plan–Do–Check–Act Procedure
• Plan. Recognize an opportunity and plan a change.
• Do. Test the change. Carry out a small-scale study.
• Check. Review the test, analyze the results and identify
what you’ve learned.
• Act. Take action based on what you learned in the study
step: If the change did not work, go through the cycle
again with a different plan.
• If you were successful, incorporate what you learned
from the test into wider changes.
• Use what you learned to plan new improvements,
beginning the cycle again.