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Total Quality Management. Introduction. Definition. TQM Total – the whole Quality – degree of excellence/perfection Management – act or art of handling, controlling etc. Hence, TQM is “the art of managing the whole to achieve excellence.” The golden rule explains it better;

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  • TQM

    • Total – the whole

    • Quality – degree of excellence/perfection

    • Management – act or art of handling, controlling etc.

  • Hence, TQM is

    “the art of managing the whole to achieve excellence.”

  • The golden rule explains it better;

    • “Do unto others as you would have them do unto you”.


  • TQM is both a;

    • Philosophy

    • Set of guiding principles

      That represent the foundation of a continuously improving organization.

  • TQM is the application of quantitative methods and human resources to improve all the processes within an organization & exceed customer needs now and in the future.


  • Process

  • Sequence of interdependent and linked procedures which, at every stage, consume one or more resources (employee time, energy, machines, money) to convert inputs (data, material, parts, etc.) into outputs.

  • These outputs then serve as inputs for the next stage until a known goal or end result is reached.

  • Procedure

  • A fixed, step-by-step sequence of activities or course of action (with definite start and end points) that must be followed in the same order to correctly perform a task. Repetitive procedures are called routines.

Basic approach
Basic Approach

  • TQM requires SIX basic concepts;

    • A committed and involved management to provide long-term top-to-bottom organizational support.

    • An unwavering focus on the customer, both internally & externally.

    • Effective involvement & utilization of the entire work force.

    • Treating suppliers as partners.

    • Continuous improvement of the business and production process.

    • Establish performance measures of the processes.

Basic approach1
Basic Approach

  • Management Support

    • Quality council must be established

    • Quality goals be included in overall objectives

  • Customer focus

    • “voice of the customer” is the clue to “customer satisfaction”.

  • Entire work force involvement

    • All personnel must be trained in TQM.

    • Those affected by TQM program understand it better than anyone else; hence, they must be involved.

  • Suppliers as partners

    • On average 40% of sales dollar is purchased product; hence, supplier quality must be outstanding.

    • Move from “transactional” to “relational” partnership

Basic approach2
Basic Approach

5. Continuous Improvement

  • It’s not one shot. It must be continual and ubiquitous.

  • Good places to begin;

    • On-time delivery

    • Order entry efficiency

    • Billing error rate

    • Scrap reduction

    • Supplier management

  • Technical techniques shall be used for problem solving i.e.

    • Benchmarking

    • ISO 9000

      6. Performance measures shall be established e.g.:

  • Customer satisfaction

  • Percent non-conforming

  • Absenteeism

New vs old cultures1
New vs. Old Cultures

  • Small businesses can make this change faster.

  • This change will take time. It’s not an “over a night” solution.

  • A clear vision and missionare the key pre-requisites of this change.

Gurus of tqm
Gurus of TQM

  • Shewhart

    • Developed control chart theory (Chapter 8)

    • In 1931, authored Economic Control of Quality of Manufactured Product.

  • Deming

    • Best known for his 14 points theory for Quality, Productivity & Competitive position (Chapter 2)

    • Authored Out of the Crisis & Quality, Productivity & Competitive Position

  • Juran

    • The Juran trilogy (Chapter 6)

    • In 1961, authored Juran’s Quality Control Handbook.

Gurus of tqm1
Gurus of TQM

  • Ishikawa

    • Best known for the development of the Cause & Effect Diagram (Chapter 18)

    • Also developed the Quality Circle Concept (Chapter 4)

  • Crosby

    • Authored Quality is Free in 1979.

    • According to him, “Doing it right the first time” is less expensive than the cost of detecting & correcting the non-conformities.

    • In 1984, authored Quality without Tears.


  • Without realization, an organization will not begin the transformation to TQM.

  • Awareness comes about when a company;

    • Loses market share

    • Realizes that quality and productivity go hand-in-hand

  • Automation & other productivity enhancements might not help if you are unable to market your product or service because of poor quality.

  • To sum the whole thing up, “Customer wants Value”. Give it to him.


  • Quality and Productivity are not mutually exclusive. Rather, they are directly proportionate.

  • A measureof the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

  • Productivity is computed by dividing average output per period by the total costs incurredor resources (capital, energy, material, personnel) consumed in that period.


  • Quality and Productivity are not mutually exclusive. Rather, they are directly proportionate.

  • To survive both domestic & global markets, Quality improvement is indispensible.

  • Quality Improvement is not limited to the Conformance of the product to the specifications, it also involves the inherentquality in the design of the system.

  • Again,

    • TQM does not occur overnight.

    • There are no short cuts.

    • The overemphasis on short-term results & profits must be set aside for the sake of long term planning & consistency.

Defining quality
Defining Quality

  • Usually we think of excellent product or service that fulfills or exceeds our expectations.

  • Hence, if a product surpasses our expectations, we consider it quality.

  • Thus, Quality is somewhat of an intangible based on perception.

  • However, quantitatively

    • Q = P/ E

    • If Q is greater than 1.0, then the customer has a good feeling about the product. And vice versa.

Defining quality1
Defining Quality

  • ISO 9000:2000 definition

    • The degree to which a set of inherent characteristics fulfills requirements.

      • Degree – a quality that can be expressed in adjectives such as poor, good & excellent.

      • Inherent – existing in something as permanent.

      • Characteristics – quantitative or qualitative

      • Requirement – a stated or implied need by a person, organization itself.

Defining quality2
Defining Quality

  • The NINE Dimensions of Quality for a Slide Projector

Obstacles to tqm
Obstacles to TQM

  • Lack of Management commitment

  • Inability to change organizational culture

    • They are used to it. Change will be resisted.

    • Follow the basic concepts of change management;

      • People change when they want to and to meet their own goals.

      • Never expect anyone to engage in behavior that will serve organization’s values unless adequate reason is given to them.

      • For the change to be accepted, people must be moved from fear to change.

  • Improper planning

    • All constituents of the organization must be involved in the development of the implementation plan and any modifications that occur as the plan evolves.

Obstacles to tqm cont d
Obstacles to TQM (cont’d)

  • Lack of continuous training & education

  • Isolated individuals and departments

  • Paying inadequate attention to the customers

  • Inadequate use of empowerment (for the purpose of efficiency/productivity)

  • Failure to continually improve

    • “Even if you are on the right track, you will get run over if you just sit there.”

    • Never be satisfied.

Benefits of tqm
Benefits of TQM

  • Quality

  • Employee participation

  • Teamwork

  • Working relationship

  • Customer satisfaction

  • Employee satisfaction

  • Productivity

  • Communication

  • Profitability

  • Market share

Benefits of tqm1
Benefits of TQM

  • A survey of 600 companies (Award group) before and after Winning Award for Quality with companies (Control group) with no Award for Quality.

  • No difference was found in both Groups before the Award, but the difference is clear (shown in the table) after the Award.