Total Quality Total Quality Management Management

(TQM)(TQM)Imran HussainImran Hussain

COMPETITION is the driving force in

business

A supplier’s competitiveness is

determined by QUALITY

Perception of QualityPerception of Quality

Once you get a reputation, it’s hard to lose it

What is Quality?What is Quality?

Totality of characteristics of an entity that bear

on its ability to satisfy stated and

implied needs

(ISO 8402 : 1994)

Meeting and exceeding the

implied and stated needs of the

customer

Meeting customer

requirements

A successful business meets all its customers’

requirements

Good service is RELIABILITY

Good service is PUTTING CUSTOMER

FIRST

Aim of supplier is to DELIGHT the

customer

Who is the Who is the Customer?Customer?

Suppliers and Customers

internal and external

Quality ChainQuality Chain

A small break in the internal chain can be

proportionately greater when they get

to the external customer/supplier

interface

Quality must be built in Quality must be built in from beginning of an from beginning of an

organization’s activities, organization’s activities, not ‘inspected in’ at the not ‘inspected in’ at the

endend

Quality is a two-way process

Focus oninputs vs. outputs

Use processes at the interfaces

Detection and quality control

Quality ControlQuality Control

Quality Control involves monitoring Quality Control involves monitoring specific project results to determine specific project results to determine if they comply with relevant quality if they comply with relevant quality standards, and identifying ways to standards, and identifying ways to eliminate causes of unsatisfactory eliminate causes of unsatisfactory resultsresults

Q: Have we done Q: Have we done job correctly?job correctly?

Q: Are we capable Q: Are we capable doing the job doing the job

correctly?correctly?

Total quality approach required

Total Quality Management Total Quality Management ApproachApproach

MethodsMethods MaterialsMaterials EquipmentEquipment Skills & knowledgeSkills & knowledge InstructionsInstructions ProcessesProcesses

ProcessProcess

InpuInputsts

OutpuOutputsts

Q: Are we capable Q: Are we capable doing the job doing the job

correctly?correctly?

Q: Do we continue Q: Do we continue to do the job to do the job

correctly?correctly?

YES or NO?YES or NO?

No need for No need for DETECTIONDETECTION

The customer/supplier chain is the core of

the Total Quality Management model

TQM Support MechanismTQM Support Mechanism

Systematic PlanningSystematic Planning Tools for measuring delivering and Tools for measuring delivering and

sustaining qualitysustaining quality Organizing for quality & developing teamsOrganizing for quality & developing teams Communication between all parts of the Communication between all parts of the

organizationorganization Commitment of the organization to a TQM Commitment of the organization to a TQM

approachapproach Recognition and perhaps change of the Recognition and perhaps change of the

organizations’ culture & environmentorganizations’ culture & environment

Inner band …Inner band …

TeamsTeamsToolsTools

SystemsSystems

Outer band …Outer band …

CommunicationCommunicationCommitmentCommitment

CultureCulture

Five Pillars of TQMFive Pillars of TQM

ProductProduct ProcessesProcesses OrganizationOrganization LeadershipLeadership CommitmentCommitment

TQMTQM

A management approach centered A management approach centered on quality, based on company-wide on quality, based on company-wide participation and aimed at long term participation and aimed at long term success through customer success through customer satisfaction (ISO)satisfaction (ISO)

TQMTQM

Based on company-wide Based on company-wide participationparticipation

TQM involves everyone in an TQM involves everyone in an organization -every function and organization -every function and every activityevery activity

Evolution of QualityEvolution of Quality

1200-1799

Guilds of Medieval Europe

1800-1899

Product Orientation

1900-1940

Process Orientation

1941-1945

Quality during World War II

1946-Present

Birth of Total Quality

Guilds of Medieval EuropeGuilds of Medieval Europe(1200-1799)(1200-1799)

Craftsmen across Europe organized into Craftsmen across Europe organized into unions called unions called GuildsGuilds

Guilds were responsible for developing Guilds were responsible for developing strict rules for product and service qualitystrict rules for product and service quality

Inspection committees enforced the rules Inspection committees enforced the rules by identifying flawless goods with a by identifying flawless goods with a special markspecial mark

A second quality mark came from the A second quality mark came from the craftsmen themselvescraftsmen themselves

Primary Focus:Primary Focus: Product Inspection Product Inspection

Product OrientationProduct Orientation(1800-1899)(1800-1899)

US quality practices in the 1800s US quality practices in the 1800s were shaped by several different were shaped by several different production methods:production methods: CraftsmanshipCraftsmanship The Factory SystemThe Factory System The Taylor SystemThe Taylor System

CraftsmanshipCraftsmanship

Early 19Early 19thth century- the approach century- the approach tended to follow the craftsmanship tended to follow the craftsmanship model in the European countriesmodel in the European countries

Masters maintained a form of quality Masters maintained a form of quality control by inspecting goods before control by inspecting goods before salesale

The Factory SystemThe Factory System This is a product of the industrial This is a product of the industrial

revolution in Europerevolution in Europe The craftsmen became factory workers The craftsmen became factory workers

and the shop owners their production and the shop owners their production supervisorssupervisors

Quality in the factory system was ensured Quality in the factory system was ensured through skilled laborers and through skilled laborers and supplemented by audits and/or inspectionssupplemented by audits and/or inspections

Large production departments employed Large production departments employed full-time inspectors who produced quality full-time inspectors who produced quality reports and reports and

Defective products were either reworked Defective products were either reworked or scrapped.or scrapped.

The Taylor SystemThe Taylor System In the late 19In the late 19thth century US broke from century US broke from

European tradition and adopted a new European tradition and adopted a new management approach by management approach by TaylorTaylor

Taylor’s goal was to increase productivity Taylor’s goal was to increase productivity without increasing the no. of skilled craftsmenwithout increasing the no. of skilled craftsmen

He achieved this by assigning factory planning He achieved this by assigning factory planning to specialized engineers and using displaced to specialized engineers and using displaced workers and supervisors to execute the workers and supervisors to execute the engineers plansengineers plans

This new approach led to remarkable rises in This new approach led to remarkable rises in productivityproductivity

BUT …BUT …

The Taylor SystemThe Taylor System

Workers once again stripped of their Workers once again stripped of their dwindling power and the new dwindling power and the new emphasis was on productivity which emphasis was on productivity which had an adverse effect on qualityhad an adverse effect on quality

Product OrientationProduct Orientation(1800-1899)(1800-1899)

Primary Focus: Primary Focus: Product InspectionProduct Inspection

Process OrientationProcess Orientation(1900-1940)(1900-1940)

Beginning of the 20Beginning of the 20thth century marked the century marked the inclusion of processes in quality practicesinclusion of processes in quality practices

Shewhart recognized that industrial Shewhart recognized that industrial processes yield data.processes yield data.

He determined that this data can be He determined that this data can be analyzed using statistical techniques to analyzed using statistical techniques to see if a process is stable or “in control” or see if a process is stable or “in control” or if is being affected by special causes that if is being affected by special causes that should be fixed.should be fixed.

His concepts are referred to as “Statistical His concepts are referred to as “Statistical Quality Control” (SQC)Quality Control” (SQC)

Primary Focus:Primary Focus: Product Inspection & Product Inspection & SQCSQC

Quality during World War IIQuality during World War II(1941-1945)(1941-1945)

After World War II had started, US enacted After World War II had started, US enacted legislation to help gear the civilian economy to legislation to help gear the civilian economy to military productionmilitary production

At that time contracts were awarded to At that time contracts were awarded to manufacturers who submitted the lowest bid. manufacturers who submitted the lowest bid. Products were inspected upon deliveryProducts were inspected upon delivery

The armed forces inspected virtually every unit of The armed forces inspected virtually every unit of product to ensure that it was safe for operationproduct to ensure that it was safe for operation

To ease this problem, the armed forces began to To ease this problem, the armed forces began to utilize sampling inspection to replace unit-by-unit utilize sampling inspection to replace unit-by-unit inspectioninspection

They adopted sampling tables and published them They adopted sampling tables and published them in a military standard in a military standard Mil-Std-105Mil-Std-105

They also helped their suppliers improve their They also helped their suppliers improve their quality by sponsoring training courses in quality by sponsoring training courses in Shewhart’s SQC techniquesShewhart’s SQC techniques

Primary Focus:Primary Focus: Sampling Inspection & SQC Sampling Inspection & SQC

Birth of Total QualityBirth of Total Quality(1946-Present)(1946-Present)

After World War II, major Japanese After World War II, major Japanese manufacturers converted from manufacturers converted from producing military goods for internal producing military goods for internal use to civilian goods for tradeuse to civilian goods for trade

Poor response from the world marketPoor response from the world market Japan started exploring new ways of Japan started exploring new ways of

thinking about quality (Deming and thinking about quality (Deming and Juran)Juran)

Rather than relying purely on product Rather than relying purely on product inspection, total quality focused on inspection, total quality focused on improving all organizational processes improving all organizational processes through the people who used themthrough the people who used them

Birth of Total QualityBirth of Total Quality(1946-Present)(1946-Present)

Juran, at a conference of the Juran, at a conference of the European organization for quality European organization for quality control in Sweden made the control in Sweden made the following predictionfollowing prediction

““The Japanese are headed for world The Japanese are headed for world quality leadership and will attain it quality leadership and will attain it in the next two decades because no in the next two decades because no one else is moving at the same pace”one else is moving at the same pace”

America’s ResponseAmerica’s Response Initially US clung to its assumption that Initially US clung to its assumption that

Japanese success was price related and Japanese success was price related and responded with strategies aimed at responded with strategies aimed at reducing domestic production costs and reducing domestic production costs and restricting imports. This did not prove restricting imports. This did not prove beneficialbeneficial

By the end of the 1970’s US reached a By the end of the 1970’s US reached a major quality crisis. major quality crisis.

They started to think “if Japan can.. Why They started to think “if Japan can.. Why can’t we?can’t we?

CEO of top US organizations then took an CEO of top US organizations then took an initiativeinitiative

ReferencesReferences

Total Quality Management – A Total Total Quality Management – A Total Quality Approach, Ch. 1, 2Quality Approach, Ch. 1, 2