Total Quality Management (TQM) Defined

• It is an effective system for integrating the quality development, quality

maintenance and quality improvement efforts of various groups in an
organization so as to enable marketing, engineering, production & service at
the most economical levels which allow for full customer satisfaction.

• Total quality management is defined as managing the entire organization so

that it excels on all dimensions of products and services that are important to
the customer

Elements of TQM: -
1. Customer Satisfaction
2. Employees Involvement
3. Total Organization Involvement
4. Morale of employees
5. Quality Control Circles and suggestion system
6. Higher Revenue
7. Lower Cost
8. Quality Control
9. Control of production
10. Quality Planning
11. Quality Implementation
12. Quality Improvement
13. Quality Assurance System
14. Vendor Control and Quality in Procurement
15. Customer Relationship Management
16. Measurement information analysis
17. Strategic quality management
18. Leadership
19. Quality education and training

Scope of TQM: -
TQM guides the coordinated actions of people, machines and information to
identify and fulfill customers’ quality requirements.
TQM is applied to many stages of industrial cycle that are listed below: -
- Marketing
- Engineering
- Purchasing
- Manufacturing
- Mechanical
- Shipping
- Installation & Product Service

Ways to TQM:-
1. Adopt new philosophy of ‘not to allow defects to occur’.
2. Create consistency of purpose for improvement.
 3. Improving production and service quality, should a continuous process.
4. Cease dependence on mass inspection. Adopt Statistical Quality Control.
5. Insist quantifiable evidence from the suppliers about the quality of their
product.
6. All employees should be trained, retrained and refresher courses to be
arranged.
7. Adopt proper communication system.
8. Encourage Productivity.
9. Provide proper tools to all the employees.
10. Encourage coordination between departments.
11. Permanent commitment of Top Management to Quality.
12. Respect towards ‘Work’& ‘Humanity’.
13. Adopt consumer orientation and not the product orientation.
14. Objective should be, ‘Quality First’ and not the ‘Short Term Profits’.
15. Use Facts & Data.

Benefits of TQM: -
Benefits of TQM can be classified in the following categories: -
- Customer Satisfaction Oriented Benefits.
- Economic Improvements Oriented Benefits.

Customer Satisfaction Oriented Benefits: -

o Improvement in Product Quality
o Improvement in Product Design.
o Improvement in Product Flow
o Improvement in Product Service
o Improvement in Morale and Quality Consciousness.
o Improvement in Market Place Acceptance.

Economic Improvements Oriented Benefits: -

o Reduction in Operating Costs
o Reduction in Operating Losses.
o Reduction in Field Service Costs.
o Reduction in Liability Exposure.

Quality Specifications
Design quality: Inherent value of the product in the marketplace
Dimensions include: Performance, Features, Reliability, Durability,
Serviceability, Response, Aesthetics, and Reputation.
Conformance quality: Degree to which the product or service design
specifications are met

Six Sigma Quality

A philosophy and set of methods companies use to eliminate defects in their
products and processes
Seeks to reduce variation in the processes that lead to product defects
The name, “six sigma” refers to the variation that exists within plus or minus three
standard deviations of the process outputs
Six Sigma allows managers to readily describe process performance using a
common metric: Defects Per Million Opportunities (DPMO)

Six Sigma Quality: DMAIC Cycle

Define, Measure, Analyze, Improve, and Control (DMAIC)
Developed by General Electric as a means of focusing effort on quality using a
methodological approach
Overall focus of the methodology is to understand and achieve what the
customer wants

Analytical Tools for DMAIC Cycle

Flow Chart
Run Chart
Pareto Analysis
Checksheet
Histogram
Cause & Effect Diagram
Control Charts

Other Six Sigma Tools

Opportunity Flow Diagram used to graphically show those activities that add
value from those that are performed (and maybe could be reduced or
removed) that do not add value to the finished product
Failure Mode and Effect Analysis (DMEA) is a structured approach to identify,
estimate, prioritize, and evaluate risk of possible failures at each stage in the
process
Design of Experiments (DOE) a statistical test to determine cause-and-effect
relationships between process variables and output

Six Sigma Roles and Responsibilities

Executive leaders must champion the process of improvement
Corporation-wide training in Six Sigma concepts and tools
Setting stretch objectives for improvement
Continuous reinforcement and rewards

ISO 9000
Series of standards agreed upon by the International Organization for
Standardization (ISO)
Adopted in 1987
More than 100 countries
A prerequisite for global competition?
ISO 9000 directs you to "document what you do and then do as you
documented"

Three Forms of ISO Certification

1. First party: A firm audits itself against ISO 9000 standards
2. Second party: A customer audits its supplier
3. Third party: A "qualified" national or international standards or certifying
agency serves as auditor

External Benchmarking Steps

1. Identify those processes needing improvement
2. Identify a firm that is the world leader in performing the process
3. Contact the managers of that company and make a personal visit to interview
managers and workers
4. Analyze data

Service Quality Measurement: Servqual

A perceived service quality questionnaire survey methodology
Examines “Dimensions of Service Quality” including: Reliability,
Responsiveness, Assurance, Empathy, and Tangibles (e.g.,
appearance of physical facilities, equipment, etc.)
New version of this methodology is called “e-Service Quality” dealing service on
the Internet
Dimensions of Service Quality on the e-Service methodology include: Reliability,
Responsiveness, Access, Flexibility, Ease of Navigation, Efficiency,
Assurance/Trust, Security/Privacy, Price Knowledge, Site Aesthetics, and
Customization/Personalization