The Philosophy of TQM

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The Philosophy ofTotal QualityManagement

Prof.Vinesh Jain

IBS, Dehradun


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The Philosophy of TQM

W. Edwards Deming Father of TQM

What we need to do is learn to work

in the system by which I mean thatevery body, every team, everyplatform, every division, every

component is there not for individualcompetitive profit or recognition butfor contribution to the system as awhole on a win-win basis


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Customer Quality MeasuresFeature Based Measures (have or havenot)

Determined by design

Eg.diamond (shape : Marquise or round)

Performance Measures (range of values)

Conformance to design or ideal value

Eg. diamond (4Cs Carat, Clarity, Color, Cut)


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Different Views of QualityCustomers View (more subjective view)

Producers View (more objective view)


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Different Views of Quality (contd.)Customers View (more subjective view)

Quality of the design (look, feel and function)

Consider both feature and performancemeasures to assess value

Value = Quality / Price (Determined by individualcustomer)


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Different Views of Quality (contd.)Producers View (more objective view)

Conformance to requirements (term coined byPhilip Crosby)

e.g # of defects per million products is a measure ofconformance.

Cost of quality (prevention, appraisal, scrapand warranty costs)

Prevention costs: training, writing quality procedures

Appraisal costs: inspecting and measuring productcharacteristics

Scrap and rework costs: internal costs of defective

productsWarrant costs: external costs for roduct failures in


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History of Quality ParadigmsCustomer craft quality paradigm

Mass production and inspection qualityparadigm

TQM or Customer-Driven Quality paradigm


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History of Quality Paradigms (contd.)Customer craft quality paradigm

Design and build each product for aparticular customer

Producer knows the customer directly


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History of Quality Paradigms (contd.)Mass production and inspection qualityparadigm

Focus on designing and building products for

mass consumption

Push products on the customer (limit customerchoices)

Quality is maintained by inspecting and detecting

bad productsMajor innovation to this paradigm : statisticalprocess control


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History of Quality Paradigms (contd.)TQM or Customer-Driven Quality paradigm

Potential customers determine what to designand build

Higher quality obtained by focusing onpreventing problems and continuouslyreducing variability in all organizationalprocesses.


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The Quality Hierarchy (Evolution)Prevention

Stop problems atsource;

greater design

emphasis(PROACTIVE)

DetectionFinding and Fixing

Mistakes(REACTIVE)

4. Total QualityManagement

3. QualityAssurance (QA)

2. Quality

Control(QC)

1. Inspection

Incorporates QC/QA activities intoa company wide system aimed atsatisfying the customer. (Involvesall organizational functions)

Planned and systematic actions toinsure that products or servicesconform to company requirements(eg reliability analysis)

Operational techniques to makeinspection more efficient and to

reduce the costs of quality .(eg. SPC)

Inspect products with theconformance of Quality Standards.


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Definition of TQMTQM is a management philosophy which seeksto integrate all organizational functions(marketing, finance, design, engineering,

production, customer services etc.) to focuson meeting customer needs andorganizational objectives.

It views organizations as a collection of

processes. It maintains that organizationsmust strive to continuously improve theseprocesses by incorporating the knowledge andexperiences of workers.


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The goal of TQM is to deliver thehighest value for the customer at thelowest cost, while achievingsustained profit and economicstability for the company.


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Objective of TQM

Do the right

things, rightthe first time,every time.


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Some Basic Tenets of TQMThe customerdetermines quality.

Improving quality requires the establishmentof effective quality metrics. We must speak

with data not just opinions.

People working within systems createquality.

Quality is a moving target. It requires acommitment toward sustained continuousimprovement.

Prevention not detection is the key toproducing high quality. We must design qualityinto products and reduce variability.


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Tools and Techniques of TQMKaizen

Quality Circles

Quality Improvement TeamsTotal Productivity Management


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Tools and Techniques of TQMKaizen

Continuous Improvement in process, skill sets,systems, and operations.

Quality Circles

Group oriented suggestion system for makingimprovements. QC is a small group thatvoluntarily performs quality control activitiesin the workplace.

Quality Improvement Teams

Improvement in Inter-Departmental

coordination.


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Principles of TQMSystematic Improvement

Customer Focused (to increase customer loyalty)

Continuous Improvement (for maintaining competitive

position in the market)

Problem Prevention

Universal responsibility

Designing Quality for products


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The Elements of TQM

Recognition

Training

Team Work

LeadershipTrust, Integrity &

EthicsCommunication

CommunicationCommunication

COM

MUNICATION

COM

MUNICATION


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Division of Elements of TQMFoundation

Ethics

IntegrityTrust

Building Bricks

Training

Teamwork

Leadership

Binding Mortar

Communication


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EthicsDiscipline concerned with good and bad in anysituation.

Integrity

Implies honesty, morals, values, fairness andadherence to the facts and sincerity.

Trust

By-product of integrity and ethical conduct.


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TrainingEmployees require training on: interpersonalskills, the ability to function within teams,problem solving, decision making, job

management performance analysis andimprovement, business economics andtechnical skills.


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TeamworkQuality Improvement Teams

Problem Solving Teams

Natural Work Teams


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CommunicationCommunication means a commonunderstanding of ideas between the senderand the receiver.

Ways of Communication in an Organization:

Downward Communication

Upward Communication

Sideways Communication


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RecognitionIt should be provided for both suggestions andachievements for teams as well as individuals.

Employees strive to receive recognition for

themselves and their teams.

As a person is recognized, there can be hugechanges in:

Self-esteem

Productivity

Quality

Amount of effort put to a task at hand.

Ways of Recognition


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Innovators of Modern QualityThinking

US Quality Innovators

Walter Shewhart (1920 1940s)

W.Edwards Deming (post WWII through 1980s)

Joseph M. Juran (consultant post WWII through1980s)

Philip Crosby(1980s)

Armand Feigenbaum (1970s 1980s)

Japanese Quality Innovators

Kaoru Ishikawa (post WWII through 1980s)


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How BPR differs from TQMThe primary focus of both BPR and TQM is oncustomers. Adequate response to thechanging needs of customers in a competitive

business environment is the key element ofsuccess in both. Unlike TQM, BPR is notexplicit in highlighting the concept of internalcustomers. The success of a reengineeredprocess, however, depends on internal

customer satisfaction.


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How BPR differs from TQM (contd.)Both BPR and TQM are process-oriented,cross-functional concepts. BPR attempts tobring about dramatic changes in existing

processes, the changes resulting from TQMare not always so. When a process does notperform satisfactorily, TQM applies differentsimple but useful techniques like Paretoanalysis, Ishikawa cause and effect diagram,

control charts, etc. BPR on the other hand,attempts to take drastic steps to improve theprocess which is phenomenally different fromthe earlier one.


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How BPR differs from TQM (contd.)Both BPR and TQM are process-oriented,cross-functional concepts. BPR attempts tobring about dramatic changes in existing

processes, the changes resulting from TQMare not always so. When a process does notperform satisfactorily, TQM applies differentsimple but useful techniques like Paretoanalysis, Ishikawa cause and effect diagram,

control charts, etc. BPR on the other hand,attempts to take drastic steps to improve theprocess which is phenomenally different fromthe earlier one.


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