TOTAL QUALITY MANAGEMENT

Presented By:Ms. Irum Shahzadi

1 lecture

QUALITY Quality is also defined as ability of product or degree of excellence in

the product or service that fulfills or exceeds the expectations of the

customer.

Quality is ‘ fitness for use ‘ of the product –Joseph Juran.

Quality refers to all those features of a product (or service) which are

required by the customer.

QUALITY AND CUSTOMER EXPECTATIONS

• Quality is not fine-tuning your product at the final stage of manufacturing, before packaging and shipping .

• Quality is in-built into the product at every stage..• Management of quality is TQM – there is no full stop and no break

in the chain!• One important reason is the customer quality level is not static and

his expectations keep changing.• Customer feedback has to be continuously sought and monitored -

not one-time only! Areas for improvement can be noted.• (Be Pro-active!...Complaints are a reactive method of finding out

there is a problem)

• “Do the things right the first time, every time.”

FOUR DETERMINANTS OF QUALITY

• Quality of product design– Is determined by the features that are included in the final

design of the product or service e.g. weight, color, size.• Quality of conformance to design– Is the result of how well the product/service meets its

specification. • Ease of use– Is determined by the ease of using the product or service, its

reliability, its operation, maintenance, safety alert.• Post-sale service – Is the level of service provided after the product/service has

been purchased e.g. responsiveness, rapid repair, spare parts

FOUR DETERMINANTS OF QUALITY

• Four determinants are important in determining quality. However quality of design is more important since it determines the ability to meet customer needs, which is the objective. If the quality of design does not meet customer needs, then it will not matter, if the products or service meets its design specification, is easy to use or is supported by good post-sale services.

8 DIMENSIONS OF QUALITY Performance – what a customer expect from the product to perform or is it

suitable for the intended job? Features – What else can it do? Some more desirable or secondary characteristics

i.e. remote control, bells and whistles of a product. Conformance –Is it made as per design? Or meet specified standards? the degree

to which physical and performance characteristics of a product match pre-established standards.

Reliability – How frequently will it fail? No breakdown or malfunction. consistency of performance over time.

Durability – How long will it last? useful life of product. Preferable until the customer has no further use for it.

Serviceability – How easy and cheap will it be to repair it? the speed, courtesy, and competence of repair work.

Aesthetics – how a product looks, feels, sounds, tastes, or smells. Perceived quality –Value in the eye of beholder. Does the company/product has

reputation? assessment of quality resulting from image, advertising, or brand names.

WHY QUALITYReasons for quality becoming a cardinal priority for most organizations:

• International Competition – Market are more competitive, in Customer-oriented market demand is defined by Users. Today’s market demands high quality products at low cost. Having `high quality’ reputation is not enough! Internal cost of maintaining the reputation should be less.

• Changing customer – The new customer is not only commanding priority based on volume but is more demanding about the “quality system.”

• Survival- Quality management is a necessity for survival and growth of the organization in a global environment.

EFFECTS OF POOR QUALITY

• Low customer satisfaction• Low productivity, sales & profit• Low morale of workforce• More re-work, material & labor costs• High inspection costs• Delay in shipping• High repair costs• Higher inventory costs• Greater waste of material

BENEFITS O QUALITY• Higher customer satisfaction• Reliable products/services• Improved process & better efficiency of operations• More productivity & profit• Better morale of work force• Less wastage costs• Less Inspection costs• More market share• Spread of happiness & prosperity• Better quality of life for all.

TQM DEFINITIONTotal Quality Management (TQM) is enhancement to the traditional way of doing business. TQM is the art of managing the whole to achieve excellence in the quality of products and services, which is applicable to all organizations.“An organization wide commitment to infusing quality into every activity through continuous improvement” (Daft, 2006)

Total:- Made up of whole or Involvement of all levels in the organization

Quality:-Degree of excellence a product or service provides or Conformance to agreed upon requirements

Management:- Act, art or manner of planning, organizing, directing and controlling.

INTRODUCTIONTQM is an approach or philosophy to improve the effectiveness of business as a whole. It is essentially a way of organizing and involving the whole organization, every department, every activity and every single person at every level. TQM ensures that the management adopts a strategic overview of the quality and focuses on prevention rather than inspection.It is the application of quantitative methods and human resources to improve all the processes within an organization and exceeds customer needs now and in future.

• This involves the continuous improvement of organizational processes, resulting in high quality products and services.

• The importance of TQM lies in the fact that it encourages innovation, makes the organization adaptable to change, motivates people for better quality, and integrates the business arising out of a common purpose and all these provide the organization with a valuable and distinctive competitive edge.

OBJECTIVES OF TQMKey Point: two main objectives:(1) Total Customer Satisfaction ( be customer focused)

through quality products and services. It is the primary objective and the key to organizational survival and growth.

(2) continuous improvements of quality into processes, systems, people, suppliers, partners, products, and services.

The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.

Measurement of Success:– 100% Customer Satisfaction

Method of Achievement:– Continuous Improvement

NEW TQM & OLD TQM APPROACH

• Product focus• Short-term focus• Detection• Focus on ‘who” and “why”• Status quo focus• Quality Control personnel• Individuals• Lack of Communication

• Customer focus• Long-term focus• Prevention• Focus on “what” and “how”• Process improvement focus• Every One• Cross-functional teams• Open communication

Traditional Approach TQM