1

Quality And Total Quality Quality And Total Quality Management (TQM)Management (TQM)

2

What is qualityWhat 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 )

3

What is TQM?What is TQM?

TQM is an organization wide approach to continuously improving the quality of all the organization’s process, products, and services.

4

Fundamentals of QualityFundamentals of Quality Slide 1 of 3Slide 1 of 3

Fundamentals of QualityFundamentals of Quality Slide 1 of 3Slide 1 of 3

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.

5

Factors for Assessing QualityFactors for Assessing QualityFactors for Assessing QualityFactors for Assessing Quality

Product Factors• Aesthetics, features, performance,

reliability, serviceability, durability, conformance, and perceived quality.

Service Factors• Responsiveness, reliability, assurance,

empathy, and tangibles.

6

Cost of QualityCost of QualityCost of QualityCost of Quality

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

7

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.

8

Two primary Two primary responsibilities of responsibilities of

managers in a managers in a quality centered quality centered

companycompany

1.Participate in formulating strategies and policies to help the company win through total quality excellence

2.To deliver marketing quality alongside production quality

9

Manager’s roles in Manager’s roles in delivering high delivering high

quality goods and quality goods and serviceservice

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

10

Manager’s roles in delivering Manager’s roles in delivering high quality goods and high quality goods and

serviceservice

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

11

Basic premises Basic premises about quality about quality improvementimprovement

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

12

How establish How establish companies achieve companies achieve

high standards of high standards of qualityquality 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

13

What is TQM?What is TQM?

TQM is an organization wide approach to continuously improving the quality of all the organization’s process, products, and services.

14

The Key Ideas of The Key Ideas of TQMTQM

1. A System Approach2. The Tools of TQM3. A customer orientation4. The role of management5. Employee participation

15

A System A System ApproachApproach

TQM focus on improving three organizational systems :

a) The cultural/social system b) The technical system c) The management system

16

The Tools Of The Tools Of TQMTQM

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.

17

A Customer A Customer OrientationOrientation

A Focus on identifying customer needs and deliver customer satisfaction

18

The role of The role of managementmanagement

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

19

Employee Employee participationparticipation

TQM requires active employees involvement.TQM also requires empowerment – letting employees make decisions without asking for approval from managers

20

Hurdles in Hurdles in implementing implementing

TQMTQM1.Managers reluctance to

implement TQM e.g fear of failure or lack of knowledge

2.Employee resistance to change3.Interdepartmental conflicts4.Lack of understanding on the

basic principles of TQM