Task: Investigate the advantages and disadvantages of TQM and the

EFQM model; andCompare the EFQM model

with TQM indicating the benefits and weaknesses of each approach

Team3

An effective system for integrating the quality development, quality

maintenance and quality improvement efforts of the various groups in an organisation so as to

enable production and service at the most economical levels which allow

for full customer satisfaction.

Deming’s basic philosophy:Quality and productivity increase as ‘process

variability’ (the unpredictability of the process) decrease.

The need for statistical control methods, participation, education, openness and purposeful improvement.

The elements of TQMMeeting the needs and expectations of

customers.Covering all parts of the organisation.Including every person in the organisation.Examining all costs which are related to

quality, especially failure costs.Getting things ‘right first time’.Developing the system and procedures which

support improvement

TQM Process1 Establish need to change•Perceptions•Cost of quality•Systems audit

2 Gain and sustain commitment•Vision•Top team•Next levels

3 Planned improvement•Education and training•Teams•Measurement•Communication and recognition

4 Review

DO IT ALL OVER AGAIN!!

Tools of TQM Benchmarking

The PDCA Cycle

Advantages of TQMFOR Organization:Provision of fundamental way of conducting

business, making the organization more competitive and viable

Improves productivity & reputationOptimised resource configuration & Lower

costsReduce overall operation cycleImprove customer satisfactionReduce job division & improve cooperation

Advantages of TQMTrain workers & improve organizational

cultureAccelerate vertical communicationGenerate improved products and services,

lower costs, more satisfied customers, and empowered employees;

Increases return on investment and market share

Focus on importance of responsibility

Advantages of TQMFOR Workforce:More productive and successful workforce

strategy Worker’s ideas in improving the decision

making process is accomplished;Employees in quality circles are more motivatedProcess improvement methods that reduce or

eliminate problems (improves the efficiency of the process and better results)

Higher employee morale

Advantages of TQMWorkforce is proactive - prevention

orientated (it helps to prevent accidents/quality rejects)

Intrinsic motivation and improved attitudes throughout the workforce (improved work conditions means employees are motivated to perform better)

Enhanced communication (it encourages discussion among employees/between managers and employees)

Disadvantages of TQMFails to meet specific requirementsInitial introduction Costs:- Training workforce- Machine- Material improvementBenefits may not be seen for several yearsWorkers may be resistant to changeHistorically many TQM initiatives fail, or at

least are not entirely successful.

What is EFQM?The European Foundation for Quality Management

(1988, 14), (2000, >800) – non-profit organisationIs committed to promoting Quality as the

fundamental process for continuous improvement within a business

Stimulate & assist Mngt in applying innovative principles of TQM suited for European environment

AIM:Improve the competitiveness of European

private&public sector organisations

EFQM Excellence Model Provides a valuble framework for addressing

key operational activities of construction of organisations

Has been used in:ManufacturingBanking & FinanceEducationManagement & Consultancy

Excellent results with respect to Performance, Customers, People and Society are achieved through Leadership driving Policy and

Strategy, that is delivered through People, Partnerships and Resources, and Processes.

9 Criteria:LeadershipPolicy and StrategyPeoplePartnership and resourcesProcessesCustomer ResultsPeople ResultsSociety ResultsKey Performance Results

EFQM ModelDepicts an organisation in 4 ways:1.As an entity in itself2.As set of measures3.As frameworks of processes4.As teams of people

Evaluation Tool - RADAR

Advantages of EFQMIt is an integrated model that combines

different elements and logically links them together

It is visible and easy to understand and its spans almost all facets of the organization with detailed guidelines

It presents a vivid and holistic view of the organization and clearly defines the different elements

It is flexible and largely based on continuous improvement

Advantages of EFQMClearly defines the organizations goals,

how to achieve them, the possible results and the systematic link between them.

It presents a platform for comparing and competing with other organizations (it is widely used in Europe so one can compare with other users of the model)

Adoption of the model leads to qualification for the EFQM quality award.

Disadvantages of EFQMSeveral activities need to be considered at

the same timeSenior management need to be actively

committed to implementing the model and undertaking self assessment

Adoption of the model requires training of all the company personnel because everyone is expected to be involved

Disadvantages of EFQMThe model doesn’t stress on promoting

changes, but only focus on how to improve with the existing resources

Implementation of the model is time consuming and expensive. The system is complex and requires specialised training and careful planning.

Subjective process (input might be biased)

ComparisonBenefits Weaknesses

TQM EFQM Model TQM EFQM Model

Investment in prevention

Self-assessment Expensive Needs more specialized training

Benchmarking

Can be more focused on specific area

Benefits prolonged by time

Only for European companies

Avoid from employee resistance

Competitiveness

Thank youAny Questions???