Lecture 2: Total Quality Management

Customer satisfaction

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Outline
Definition of TQM

Three Key Philosophies

Traditional view of quality vs TQM

The TQM Approach

Characteristics of TQM Seven Basic Tools of TQM

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Total Quality Management

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

It extends to customers as well as to suppliers

The top management must have sincere commitment towards achieving quality

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Three key philosophies

1. Never-ending
improvement
push to improve continuous

2. Involvement of everyone in the organization from

the top most executive to the bottom most workers

3. A goal of customer satisfaction meeting or exceeding
customer expectations

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Traditional view of quality vs TQM

Traditional looking only at the quality of the final
products and services Production and Quality Control departments are responsible

TQM looking at the quality of every aspect of the

process that produces the product or service All departments are responsible

TQM intends to prevent poor quality from occurring

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How is quality affected by all departments?

Marketing:

has direct contact with the external customers, can identify customer requirements design specifications

Engineering: converts customer requirements to exact Purchasing: responsible for selecting right quality
materials, at the right time from the right suppliers

Manufacturing Engineering: responsible for selecting the

right processes, process parameters, and processing tools to satisfy the design specifications

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How is quality affected by all departments?

Production Activity Control or Shop Floor Control:

responsible for effective inspection and functional check to ensure conformance to specifications

Logistics: responsible for packaging, transportation, and

delivery timing

Installation and after-sales-service: responsible for

ensuring intended operation by installing the product properly and maintaining it through service

Quality cannot be achieved by concentrating on

inspection alone, or product alone,..,or supplier control alone
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design

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The TQM Approach

Find out what the customer wants

Design a product or service that meets or exceeds

customer wants

Design processes that facilitates doing the job right

the first time

Keep track of results to use them to guide

improvement in the systems

Extend these concepts to suppliers and to distribution

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TQM Wheel

Customer
satisfaction

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Characteristics of TQM

Continual Improvement

Customer Focus
Organization-wide activity Employee empowerment Team Approach Competitive Benchmarking Knowledge of Tools Internal and External Customers Long-term Relationship with the Suppliers
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Seven Basic Tools of TQM

As much as 95% of quality related problems can be
solved with seven fundamental quantitative tools Kaoru Ishikawa

These tools can be used to analyze and subsequently

eliminate problems from the production systems

Understanding and using these tools does not require

advanced knowledge of statistics

They involve tabulating, depicting, and describing data

sets

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Seven Basic Tools of TQM (Contd)

1. Check Sheet

2. Histogram
3. Pareto Analysis 4. Process Flow Chart

5. Cause-and-Effect Diagram
6. Scatter Diagram 7. Control Chart
Some experts include the following in lieu of one of the above:

8. Stratification Analysis

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Seven Basic Tools of TQM (Contd)

The objectives of these tools are to answer to a series of
questions, known as 5W2H.

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