Course Outline TQM

7/24/2019 Course Outline TQM

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Defning Total Quality Management

The concept o Total Quality Management

The philosophy behind Total Quality Management

Leading lights and their ideas

Principles o Total Quality Management

The core principles in achieving Total Quality Management

Prevention not correction

Customer ocus

Techniques used in Total Quality Management

Process improvement

Benchmaring

Cause and e!ect

Measurement

Cost o quality

"mplementing Total Quality Management

Principles into Leadership

Commitment and involvement

#rganisational culture

Benefts o Total Quality Management

To the customer $ improved quality

To employees $ increased satisaction


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To the organisation $ better perormance

Total quality management %TQM&

Total quality management is a management approach centred on quality' based on

the participation o an organisation(s people and aiming at long term success %")#

*+,-./00+&1 This is achieved through customer satisaction and benefts all

members o the organisation and society1

"n other 2ords' TQM is a philosophy or managing an organisation in a 2ay 2hich

enables it to meet staeholder needs and e3pectations e4ciently and e!ectively'

2ithout compromising ethical values1

TQM is a 2ay o thining about goals' organisations' processes and people to ensure

that the right things are done right frst time1 This thought process can change

attitudes' behaviour and hence results or the better1

5hat TQM is not

TQM is not a system' a tool or even a process1 )ystems' tools and processes are

employed to achieve the various principles o TQM1

5hat does TQM cover6

The total in TQM applies to the 2hole organisation1 Thereore' unlie an ")# 0,,,

initiative 2hich may be limited to the processes producing deliverable products'TQM applies to every activity in the organisation1 7lso' unlie ")# 0,,,' TQM covers

the sot issues such as ethics' attitude and culture1

5hat is the TQM philosophy6


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There are several 2ays o e3pressing this philosophy1 There are also several gurus

2hose in8uence on management thought in this area has been considerable' or

e3ample Deming' 9uran' Crosby' :eigenbaum' "shia2a and "mai1 The 2isdom o

these gurus has been distilled into eight principles defned in ")# 0,,,.-,,,1

The principles o quality management.

There are eight principles o quality management.

customer;ocused organisation ; organisations depend on their customers and

thereore should understand current and uture customer needs' meet customer

requirements and strive to e3ceed customer e3pectations

leadership ; leaders establish unity o purpose' direction and the internal

environment o the organisation1 They create the environment in 2hich people can

become ully involved in achieving the organisation(s ob


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organisation to2ards satisying all staeholders %customers' o2ners' shareholders'

suppliers' employees and society&1 The quality a2ard criteria o!ers measures o

perormance rather than a methodology1

5hy should a company adopt TQM6

7dopting the TQM philosophy 2ill.

mae an organisation more competitive

establish a ne2 culture 2hich 2ill enable gro2th and longevity

provide a 2oring environment in 2hich everyone can succeed

reduce stress' 2aste and riction

build teams' partnerships and co;operation

5hen should a company adopt TQM6

TQM can be adopted at any time ater e3ecutive management has seen the error o

its 2ays' opened its mind and embraced the philosophy1 "t cannot be attempted i

management perceives it as a quic f3' or a tool to improve 2orer perormance1

=o2 should a company adopt TQM6

Beore TQM is even contemplated

TQM 2ill orce change in culture' processes and practice1 These changes 2ill bemore easily acilitated and sustained i there is a ormal management system in

place1 )uch a system 2ill provide many o the acts on 2hich to base change and

2ill also enable changes to be implemented more systematically and permanently1

The frst steps


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"n order to ocus all e!orts in any TQM initiative and to yield permanent benefts' a

company must ans2er some undamental questions.

2hat is its purpose as a business6

2hat is its vision or the business6

2hat is its mission6

2hat are the actors upon 2hich achievement o its mission depends6

2hat are its values6

2hat are its ob


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>3amples o techniques include.

benchmaring

cost o quality

quality unction deployment

ailure mode e!ects analysis

design o e3periments

Measurements

7ter using the tools and techniques an organisation needs to establish the degreeo improvement1 7ny number o techniques can be used or this including sel;

assessment' audits and )PC1

Pitalls

TQM initiatives have been prone to ailure because o common mistaes1 These

include.

allo2ing e3ternal orces and events to drive a TQM initiative

an over2helming desire or quality a2ards and certifcates

organising and perceiving TQM activities as separate rom day;to;day 2or

responsibilities

treating TQM as an add;on 2ith little attention given to the required changes in

organisation and culture

senior management underestimating the necessary commitment to TQM


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Demings 14 Points on Total Quality

ManagementKnowledge Center>Learn About Quality>TQM> Deming's 14 Points

Demings 14 Points on Quality Managementa !ore !on!e"t on im"lementing total #uality management is a set o$

management "ra!ti!es to %el" !om"anies in!rease t%eir #uality and "rodu!ti&ity

1 Create !onstan!y o$ "ur"ose $or im"ro&ing "rodu!ts and ser&i!es

( Ado"t t%e new "%iloso"%y

) Cease de"enden!e on ins"e!tion to a!%ie&e #uality

4 *nd t%e "ra!ti!e o$ awarding business on "ri!e alone+ instead minimi,e total !ost by

wor-ing wit% a single su""lier

. /m"ro&e !onstantly and $ore&er e&ery "ro!ess $or "lanning "rodu!tion and ser&i!e

0 /nstitute training on t%e ob

2 Ado"t and institute leaders%i"

3 Dri&e out $ear

5rea- down barriers between sta$$ areas

16 *liminate slogans e7%ortations and targets $or t%e wor-$or!e

11 *liminate numeri!al #uotas $or t%e wor-$or!e and numeri!al goals $or management

1( 8emo&e barriers t%at rob "eo"le o$ "ride o$ wor-mans%i" and eliminate t%e annual rating

or merit system

1) /nstitute a &igorous "rogram o$ edu!ation and sel$9im"ro&ement $or e&eryone

14 Put e&erybody in t%e !om"any to wor- a!!om"lis%ing t%e trans$ormation
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TQM ; Total Quality Management

The origins o TQMare subd2ards Deming

9oseph 9uran

Philip B1 Crosby

@aoru "shia2a

>d2ard Deming 2as a student under the instruction o 5alter )he2art1 =e refned TQM

and got a chance in 9apan to try these approaches to management in mid /0A,(s1 7s

9apan(s quality and perormance levels surpassed previously dominated felds o 2or

controlled by the ?1)1' the ?1)1 companies too notice and adopted the TQM philosophy1

5hile many ailed to properly implement' some did succeed and a2ards such as the

Deming Prie' )hingo Prie' and Malcolm Baldridge 72ard recognies a e2 o them1

Total; >ncompasses the entire organiation' supply chain' human resources' "T'

processes' and product development1 >veryone is involved' practicing 2hat is preached'

and regular communication o the purpose driven goal1

Quality; defned by the beholder and can tae on many orms but in the case it is the

perception o the customer%s&1 The emphasis is on things being done right the frst time1

Management; continuous management 2ith cycle such as PDC7 cycle' Plan' Do'

Chec' 7ct also no2n as the )he2hart Cycle or Deming Cycle1

TQM is a structured system much lie a )i3 )igma program1 5hen all o its elements are

implemented properly' TQM is lie a 2ell;built house1 "t(s solid' strong' and e3ploits the

value o synergy1 The sum o the collective e!orts o everyone in the organiation is

greater than the sums that each individual can contribute1

Total Quality Management strives to ma3imie the competitiveness o an organiation

through the continual improvement o the quality o its products' services' people'processes' and environment1

TQM is not a 8avor o the month' and 2hen it is implemented in such a 2ay it earns a

poor reputation or all the 2rong root causes and the same applies or some )i3 )igma

programs1 Many companies strive or a2ards and decorations to bragging rights' public

relations' and customer appeal and sometimes this 2ors1 Quality requires a never


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ending pursuit o improvement and signifcant breathroughs that are sustainable oten

require a lot o time' education' and e!ort along 2ith di4cult choices1

The methodolgy includes everyone rom managerial to hourly 2ororce1 "t does not

necessarily mean that ero deects or absolute perection must be acheived as this can

be more costly and unpractical than maing balanced sustained gains1

TQM requires cross unctional cooperation and the elimination o corporate and

departmental silos1 =o2ever' it does not demand radical organiational realignment1 "t

needs the liberation o people rom sti8ing control systems and the tyranny o

unctionalism 2hich precludes team2or1 Public re2ards 2hould be provided %not

necesssary money& or long term success and remove praise or short term and

uncontrolled changes1

Dr1 Deming included /+ points in his boo #ut o the Crisis that he believed a

company(s leaders shall adhere in order to have successul total quality management1

/& Change is constant1 Constantly improve the system o operations and service1

Management and employees are obligated to continually loo or 2ays to reduce 2aste

and improve quality1

-& Create constancy o purpose or improvement o product and service1 Management

must change rom a short term ocus to delivering on the long term and creating

stability1 This requires dedication to innovation in all areas to best meet the needs o

citiens or clients1

& Cease dependence on mass inspection1 Create mistae proo processes and ocus on

proactive rather than being reactive1 "nspection is equivalent to planning or deectsE it

comes too late' and it is ine!ective and costly1

+& >nd the practice o a2arding contracts on the basis o price tag1 This is oten a

contradiction to the typical paradigm on modern supply chain management1 :requently'

this leads to supplies or services o lo2 quality1 "nstead' they should see the best

quality and 2or to achieve it 2ith a single supplier or any one item in a long;term

relationship1

A& 7dopt the ne2 philosophy in 2hich mistaes and negativism is unacceptable1Conront poor perormance and tae the courage to deal 2ith distracting con8ict1

F& "nstitute modern methods o training on the


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G& "nstitute modern methods o leadership1 Lo2er;level managers must be empo2ered

to inorm upper management about conditions that need correctionE once inormed'

management must tae action1 Barriers %such as reserved paring places or top

management& that prevent employees rom doing their mployees need to eel secure i they mae a mistae or o!er

suggestions on sensitive topics or positions1 They can not be araid to as questions to

understand or promote change1 People 2ill continue to do things the 2rong 2ay or to

not do them at all' the top perormers 2ill eventually leave1 "t is necessary or better

quality and productivity that people eel secure and have pride to 2ormanship1

0& Brea do2n barriers bet2een sta! areas1 >nsure that department or area goals do

not suboptimie another(s goals or an important customer satisfer1 >ach discipline must

2or together as a team or the company as a collective group to acheive the ideal

balanced scorecard1

/,& >liminate slogans' e3hortations' numerical goals and targets or the 2or orce1 Let

people put up their o2n slogans1 7lthough 2orers should not be given numerical goals'

the organiation itsel must have a goal. continuous improvement1

//& >liminate 2or standards and quotas1 Quotas ocus on quantity not quality1 They are

usually a guarantee o ine4ciency and high cost1 To hold a


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-& )uccessul TQM aligns itsel 2ith organiational management systems and human

resource management systems1

& )uccessul TQM becomes a system 2ithin itsel by deault or choice1

+& )uccessul TQM system brings t2o other management systems together 2ith abehavioral and cultural commitment to customer quality1

TQM is infnitely adaptable so each impementation is unique and needs to suit

the company. There can be some downalls that are mitigated by frst

understanding them1

TQM ocuses people(s attention on internal processes rather than on e3ternal results1 7n

asset o TQM is that it gets managers to attend to internal processes1 "t avoids being

number bound and too data driven' or the complete reliance on perormance evaluation

and measurement' and losing touch 2ith the voice o the customer and the shiting

preerences o ne2' lost' and potential customers1

TQM ocuses on minimum standards1 Hero deects and no re2or demands distract

people rom adding value and the price or perection may not be economical or

practical1

TQM does not demand entirely ne2 relationships 2ith outside partners1 5oring 2ith

suppliers is essential as mareting converts to relationship based strategies and

partnering 2ith e3pertise1

Deming's Deadly Diseases

Deming suggested that ?1)1 companies generally 2ere a!ected 2ith seven deadly

diseases and their rivals have a competitive advantage until they are understood and

eliminated1

/& :ailure to provide adequate time' human and fnancial resources to support the

purpose o quality improvement1

-& >3cessive health;care costs1 7 f3ed cost that many continue to struggle 2ith

providing at a!ordable rate1

& >3cessive legal costs1 These are unpredictable but signifcant cost that places burden

on shareholder success1

+& >mphasis on short;term profts and shareholder value1 Compensation and bonuses %i

any& should be based on short and long term perormance %I/ year&1

A& 7nnual perormance evaluations based on observations or valuations

should be requent' real;time' and based on correct acts and data that provide

equitable


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F& The lac o management continuity either rom turnover or change in direction1 "t is

di4cult or the loyalists o a company to trust the leadership 2hen steering in ne2

directions and never seeming to fnish and stabilie beore beginning another1

G& Management(s use o easily available data' 2ithout regards to 2hat is needed to

improve the process1 ?se o data but lac o understanding the root causes1>3amples.Pareto chartso deects but not 2hat causes the deects1
http://www.six-sigma-material.com/Pareto-Diagram.htmlhttp://www.six-sigma-material.com/Pareto-Diagram.html

Course Outline TQM

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