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Chapter 1 TQM

Total Quality Management (TQM) integrates all organizational functions to achieve continuous improvement in quality and customer satisfaction. Key figures in TQM include Edward Deming, Joseph Juran, and Philip Crosby, each contributing unique methodologies and principles. The benefits of TQM include enhanced customer satisfaction, improved operational efficiency, increased employee engagement, and a competitive advantage through superior quality.

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Felicity Bondoc
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16 views22 pages

Chapter 1 TQM

Total Quality Management (TQM) integrates all organizational functions to achieve continuous improvement in quality and customer satisfaction. Key figures in TQM include Edward Deming, Joseph Juran, and Philip Crosby, each contributing unique methodologies and principles. The benefits of TQM include enhanced customer satisfaction, improved operational efficiency, increased employee engagement, and a competitive advantage through superior quality.

Uploaded by

Felicity Bondoc
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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What is TQM?

TQM is the integration of all functions and


processes within an organization in order to
achieve continuous improvement of the quality
of goods and services. The goal is customer
satisfaction.

“No doubt , humans are always deficient”


• (Al-Quran)
The Three Quality Gurus

Edward Deming: the best known of the “early” pioneers, is credited


with popularizing quality control in Japan in early 1950s. Today, he is
regarded as a national hero in that country and is the father of the world
famous Deming prize for quality.

 He helped the Japanese to apply concepts of TQM.

 They concentrated on customer satisfaction and focused on


understanding customer's needs and expectation
The Deming Cycle
Also known as the Shewhart Cycle, the Deming Cycle,
often called the PDCA, was a result of the need to link
the manufacture of products with the needs of the
consumer along with focusing departmental resources in
a collegial effort to meet those needs.
The steps that the cycle follows are:
Plan: Design a consumer research methodology
which will inform the business
Do: Implement the plan to measure its performance.
Check: Check the measurements and report the findings
to the decision-makers.
Act/Adjust: Draw conclusion on the changes that need to
be made and implement them.
•JURAN
 Juran, like Deming was invited to Japan in 1954 by the union of
Japanese Scientists and engineers.
 Juran defines quality as fitness for use in terms of design,
conformance, availability, safety and field use. He focuses on top-
down management and technical methods rather than worker pride
and satisfaction.
The Juran Quality Trilogy

Juran is one who developed an approach for cross-functional management that


comprises three legislative processes:
1. Quality Planning: this is a process that involves creating awareness of the necessity to
improve, setting certain goals, and planning ways to reach those goals. This process has its
roots in the management's commitment to planned change that requires trained and
qualified staff.
2. Quality Control: this is a process to develop the methods to test the products for their
quality. Deviation from the standard will require changes and improvements.
3. Quality Improvement: this is a process that involves the constant drive to perfection.
Quality improvements need to be continuously introduced. Problems must be diagnosed
to the root causes to develop solutions. The Management must analyze the processes and
the systems and report back with recognition and praise when things are done right.
Philip Crosby: author of popular book Quality is Free.
His absolutes of quality are:

Quality is defined as conformance to requirements, not “goodness”;

 The system for achieving quality is prevention, not appraisal;

 The performance standard is zero defects, not “that’s close enough”;

 His concept encourages a proactive approach to quality


management, where the goal is to prevent defects rather than
merely reducing them after they occur.
Benefits of Total Quality Management (TQM)

 Enhances customer satisfaction and loyalty.


 Improves operational efficiency and reduces
costs.
 Fosters employee engagement and teamwork.
 Provides a competitive advantage through
superior quality.
1. Enhances Customer Satisfaction and Loyalty

• Understanding Customer Needs: TQM emphasizes a


customer-centric approach, encouraging organizations to
understand and meet customer expectations. This leads to
products and services that better satisfy customer needs.
• Consistent Quality: By implementing quality control
processes, organizations can consistently deliver high-quality
products and services. Consistency builds trust and reliability,
which are critical for customer loyalty.
• Feedback Mechanisms: TQM promotes the use of feedback
from customers to drive improvements. Organizations that
actively seek and respond to customer feedback can adapt
quickly to changing preferences, further enhancing satisfaction.
2. Improves Operational Efficiency and Reduces Costs

• Streamlined Processes: TQM encourages the identification


and elimination of waste in processes (often referred to as
"lean" practices). This leads to more efficient operations,
reducing time and resource consumption.
• Reduced Errors and Defects: By focusing on quality at every
stage of production, TQM helps organizations minimize errors
and defects. Fewer defects lead to lower costs associated with
rework, returns, and warranty claims.
• Better Resource Management: TQM promotes optimal use of
resources, including materials, labor, and time. Improved
efficiency translates into cost savings, which can enhance
profitability.
3. Fosters Employee Engagement and Teamwork

• Empowerment: TQM involves employees at all levels in


decision-making processes related to quality improvements.
When employees feel empowered to contribute ideas and
solutions, their engagement increases.
• Team Collaboration: TQM encourages teamwork across
departments. Collaborative efforts enhance communication
and problem-solving capabilities, leading to innovative
solutions and improved morale.
• Skill Development: Organizations that implement TQM often
invest in training and development for their employees. This
not only enhances individual skills but also fosters a culture of
continuous learning.
4. Provides a Competitive Advantage Through
Superior Quality

• Differentiation: In a competitive marketplace,


organizations that prioritize quality can differentiate
themselves from competitors. High-quality products and
services attract customers and can justify premium pricing.
• Brand Reputation: Consistent delivery of quality builds a
strong brand reputation. A positive reputation for quality
can lead to increased market share and customer loyalty.
• Adaptability: Organizations that practice TQM are often
more agile in responding to market changes. Their focus on
continuous improvement allows them to innovate and
adapt quickly, maintaining their competitive edge.

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