Chapter 1: TQM Introduction &

Basic Concepts

TOTAL QUALITY
MANAGEMENT
BY
DR. ASIF MAHMOOD

Institute of Business & Management

University of Engineering and Technology,

Lahore

WHAT IS AN ORGANIZATION?

An organization is an entity where two or

more persons work together to achieve a
goal or a common purpose.

UNIT OF ORGANIZATION:

People

Purpose

Process

POLCA
Planning

Organizing
Leading

Controlling
Assuring

HISTORICAL EVOLUTION OF TOTAL QUALITY

MANAGEMENT

The historical evolution of Total Quality

Management has taken place in four stages
1.
2.
3.
4.

Quality Inspection
Quality Control
Quality Assurance
Total Quality Management

HISTORICAL EVOLUTION OF TOTAL QUALITY

MANAGEMENT
1.

Quality Inspection

.One

or more characteristics of a product, service or

activity are examined, measured, tested or assessed and
compared with specified requirements to assess
conformity with a specification or performance standard.
.In a manufacturing environment the system is applied
to incoming goods and materials, manufactured
components and assemblies at appropriate points in the
process and before finished goods are passed into the
warehouse.
.In service, commercial and public service-type situations
the system is also applied at key points, sometimes
called appraisal points, in the production and delivery
processes.

HISTORICAL EVOLUTION OF TOTAL QUALITY

MANAGEMENT
1.

Quality Inspection

.The

system is an after-the-event screening process with

no prevention content other than identification of
suppliers, operations, or workers, who are producing nonconforming products/services.
.There is an emphasis on reactive quick-fix corrective
actions and the thinking is department-based. Simple
inspection-based systems are usually wholly in-house
and do not directly involve suppliers or customers in any
integrated way.

HISTORICAL EVOLUTION OF TOTAL QUALITY

MANAGEMENT
2.

Quality Control

With quality control there were some development from the

basic inspection activity in terms of sophistication of methods
and systems, self-inspection by approved operators, use of
information and the tools and techniques which are employed.
While the main mechanism for preventing off-specification
products and services from being delivered to customers is
screening inspection, quality control measures lead to greater
process control and a lower incidence of non-conformance.
Considerable effort is expended on after-the-event inspecting,
troubleshooting, checking, and testing of the product or
service and providing reactive quick fixes to ensure that only
conforming products and services are delivered to the
customer.

HISTORICAL EVOLUTION OF TOTAL QUALITY

MANAGEMENT
2.

Quality Control

There

is a lack of creative and systematic work activity,

with planning and improvements being neglected and
defects being identified late in the process, with all the
financial implications of this in terms of the working
capital employed.
In this type of approach a non-conforming product
must be made and a service delivered before the
process can be adjusted. This is inherently inefficient in
that it creates waste in all its various forms
The action is after-the-event and backward looking.

HISTORICAL EVOLUTION OF TOTAL QUALITY

MANAGEMENT
3.

Quality Assurance

lasting and continuous improvement in quality can only

be achieved by directing organizational efforts towards
planning and preventing problems from occurring at
source.
Examples include:

a comprehensive quality management system to increase

uniformity and conformity,
use of the seven quality control tools (histogram, check sheet,
Pareto analysis, cause-and-effect diagram, flow chart, control chart
and scatter diagram),
statistical process control,
failure mode and effects analysis (FMEA), and
the gathering and use of quality costs.

HISTORICAL EVOLUTION OF TOTAL QUALITY

MANAGEMENT
3.

Quality Assurance

shift in emphasis from mere detection towards

prevention of non-conformances.
It is a prevention-based system which improves
product and service quality, and increases
productivity by placing the emphasis on product,
service and process design.
This is a proactive approach compared with
detection, which is reactive.
There is a clear change of emphasis from
downstream to the upstream processes and from
product to process.

HISTORICAL EVOLUTION OF TOTAL QUALITY

MANAGEMENT
4.

Total Quality Management (TQM)

It involves the application of quality management principles
to all aspects of the organization, including customers and
suppliers, and their integration with the key business
processes.
The spread of the TQM philosophy would also be expected to
be accompanied by greater sophistication in the application
of tools and techniques, increased emphasis on people (the
so-called soft aspects of TQM), process management,
improved training and personal development and greater
efforts to eliminate wastage and non-value-adding activities.
Simply, TQM is the mutual co-operation of everyone in an
organization and associated business processes to produce
value-for-money products and services which meet and
hopefully exceed the needs and expectations of customers.

TQM TERM

Total - made up of the whole

Quality - degree of excellence a product or service
provides
Management - act, art or manner of planning,
controlling, directing etc.

So, TQM is a philosophy that involves everyone in an

organization in a continual effort to improve quality and
achieve customer satisfaction.

HISTORICAL EVOLUTION OF TOTAL QUALITY

MANAGEMENT

FOUR LEVELS IN EVOLUTION OF TQM

MEANING OF QUALITY:

It is conformance to standards

Quality is fitness for use of the product Joseph

Juran.

MEANING OF QUALITY:
CUSTOMERS PERSPECTIVE

Quality is also defined as excellence in the

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

MEANING OF QUALITY:
PRODUCERS PERSPECTIVE
o

Quality of Conformance

Making sure a product or service is produced according to

design
if new tires do not conform to specifications, they wobble
if a hotel room is not clean when a guest checks in, the hotel is
not functioning according to specifications of its design

3-16

MEANING OF QUALITY
CONSUMERS AND PRODUCERS PERSPECTIVES

Meaning
Meaning of
of Quality
Quality

Production
Production

Producers
Producers Perspective
Perspective

Consumers
Consumers Perspective
Perspective

Quality
Quality of
of Conformance
Conformance

Quality
Quality of
of Design
Design

Conformance to
specifications
Cost

Quality characteristics
Price

Fitness
Fitness for
for
Consumer
Consumer Use
Use
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Marketing
Marketing

DIMENSIONS OF QUALITY:
MANUFACTURED PRODUCTS
o

Performance

basic operating characteristics of a product;

how well a car is handled or its gas mileage

Features

extra items added to basic features, such as a

stereo CD or a leather interior in a car

Reliability

probability that a product will operate properly

within an expected time frame; that is, a TV
will work without repair for about seven years
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DIMENSIONS OF QUALITY:
MANUFACTURED PRODUCTS (CONT.)

Conformance

o
o

degree to which a product meets pre

established standards

Durability

how long product lasts before replacement

ease of getting repairs, speed of repairs,

courtesy and competence of repair person

Serviceability

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DIMENSIONS OF QUALITY:
MANUFACTURED PRODUCTS (CONT.)
o

Aesthetics

how a product looks, feels, sounds,

smells, or tastes

Safety

assurance that customer will not suffer

injury or harm from a product; an
especially important consideration for
automobiles

Perceptions

subjective perceptions based on brand

name, advertising, and the like
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DIMENSIONS OF QUALITY:
SERVICE
o

Time and Timeliness

How long must a customer wait for service,

and is it completed on time?
Is an overnight package delivered overnight?

Completeness:

Is everything customer asked for provided?

Is a mail order from a catalogue company
complete when delivered?
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DIMENSIONS OF QUALITY:
SERVICE (CONT.)
o

Courtesy:

How are customers treated by employees?

Are catalogue phone operators nice and are
their voices pleasant?

Consistency

Is the same level of service provided to each

customer each time?
Is your newspaper delivered on time every
morning?
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DIMENSIONS OF QUALITY:
SERVICE (CONT.)
o

Accessibility and convenience

How easy is it to obtain service?

Does a service representative answer you calls quickly?

Accuracy

Is the service performed right every time?

Is your bank or credit card statement correct every
month?

Responsiveness

How well does the company react to unusual situations?

How well is a telephone operator able to respond to a
customers questions?

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TQM SIX BASIC CONCEPTS

Management commitment to TQM principles and
methods and long term quality plans for the
organization
Focus on Customersinternal & external
Quality at all levels of the workforce
Continuous improvement of the production/business
process
Treating suppliers as partners
Establish performance measures for the process

DEMINGS CHAIN REACTION/TANGIBLE

BENEFITS

Improve
quality

Capture the
market with
better quality
and lower prices

Decrease costs due to less

rework, fewer mistakes,
fewer delays and snags, and
better use of time and
materials

Stay in
business

Improve
productivity

Provide steady
jobs and more jobs.

25

OBSTACLES TO TQM
IMPLEMENTATION
o

Lack of Management Commitment

Inability to Change Organizational Culture

Improper Planning

Lack of Continuous Training and Education

Incompatible Organizational Structure and Isolated Individuals

and Departments

Ineffective Measurement Techniques and Lack of Access to Data

and Results

Paying Inadequate Attention to Internal and External Customers

Inadequate Use of Empowerment and Teamwork

Failure to Improve Continually

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