Quality And Total Quality

Management (TQM)

What is quality
Quality is the totality of
features and characteristics of
a product or service that bear
on its ability to satisfy stated or
implied needs. ( The American
Society For Quality Control )
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What is TQM?
TQM is an organization wide
approach to continuously
improving the quality of all
the organizations process,
products, and services.

Fundamentals
Fundamentals of
of Quality
Quality
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Consumer Perspective
Quality can be defined as the degree to
which the product or service meets the
expectations of the customer.

Producer Perspective
Quality can be defined as the degree to
which the product or service conforms
to design specifications.
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Factors
Factors for
for Assessing
Assessing Quality
Quality

Product Factors
Aesthetics, features, performance,
reliability, serviceability, durability,
conformance, and perceived quality.

Service Factors
Responsiveness, reliability, assurance,
empathy, and tangibles.

Cost
Cost of
of Quality
Quality

Prevention Costs
Appraisal Costs
Internal-Failure Costs
External-Failure Costs

 Prevention cost -Costs to prevent defective

output from occurring.
Appraisal cost Cost to assess the quality of
the product
Internal-failure cost Cost to repair or
dispose the defective output before delivery to
the customer.
External-failure cost -Cost resulting from
defective output that is not detected prior to
delivery to the customer.
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Two primary
responsibilities of
managers in a quality
centered company

1.Participate in formulating
strategies and policies to help
the company win through
total quality excellence
2.To deliver marketing quality
alongside production quality
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Managers roles in
delivering high quality
goods and service

1.Identify customer needs in well

defined target market
2.Communicate customer expectation
accurately to the product designers
3.Make sure customer orders are filled
in correctly and the products deliver
on time
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Managers roles in delivering high

quality goods and service

4.Make sure customers receive

proper instructions and training on
how to use the products
5.Measure company/product image
and customer satisfaction on a
continuous basis
6.Continuously improve product quality
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Basic premises about

quality improvement
1.Quality must be perceived by customers
2.Quality must be reflected in every company activity, not
just in its products
3.Quality requires total employee commitment
4.Quality requires high quality partners
5.Quality can always be improved
6.Quality improvement requires quantum leaps.
7.Quality does not cost more

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How establish companies

achieve high standards of
quality
1.They formulated a vision of quality in their mission
statement
2.Top mgt involvement from the start of the quality drive
3.Focused on customer needs
4.Develop effective planning and implementation to achieve
the goal
5.They trained their employees to use statistical process
control tools
6.Provide empowerment
7.Reward their employees for quality performance
8.Made quality improvement an on going challenge

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What is TQM?
TQM is an organization wide
approach to continuously
improving the quality of all
the organizations process,
products, and services.

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The Key Ideas of TQM

1. A System Approach
2. The Tools of TQM
3. A customer orientation
4. The role of management
5. Employee participation
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A System Approach
TQM focus on improving three
organizational systems :
a) The cultural/social system
b) The technical system
c) The management system
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The Tools Of TQM

1.The fishbone diagram- also known
as the cause-and-effect diagram
that helps shows possible causes
of a problem.
2.Benchmarking-Comparing your
products and processes against
the best in the world.
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A Customer
Orientation
A Focus on identifying
customer needs and
deliver customer
satisfaction

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The role of
management
1.Identify customer needs in well defined target market
2.Communicate customer expectation accurately to the
product designers
3.Make sure customer orders are filled in correctly and the
products deliver on time
4.Make customers receive proper instructions and training
on how to use the products
5.Measure company/product image and customer
satisfaction on a continuous basis
6.Continuously improve product quality

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Employee
participation
TQM requires active employees
involvement.TQM also
requires empowerment
letting employees make
decisions without asking for
approval from managers
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Hurdles in
implementing TQM
1.Managers reluctance to
implement TQM e.g fear of failure
or lack of knowledge
2.Employee resistance to change
3.Interdepartmental conflicts
4.Lack of understanding on the
basic principles of TQM
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