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QUALITYMANAGEMENT (TQM)

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Total Quality Management TQM is a philosophy which applies

equally to all parts of the organization.

TQM can be viewed as anextension ofthe traditional approach to quality.

TQM places the customer at the forefrontof quality decision making.

Greater emphasis on the roles andresponsibilities of every member of staffwithin an organization to influencequality.

All staff are empowered.

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Elements of TQM Leadership

Top management vision, planning and support.

Employee involvement All employees assume responsibility for the

quality of their work.

Product/Process Excellence

Involves the process for continuousimprovement.

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Elements of TQM Continuous Improvement

A concept that recognizes that qualityimprovement is a journey with no end and that

there is a need for continually looking for newapproaches for improving quality.

Customer Focus on Fitness for Use Design quality

Specific characteristics of a product that determine

its value in the marketplace. Conformance quality

The degree to which a product meets its designspecifications.

f d l f

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A fundamental concept ofTQM

A set of inter-related resources and activities whichtransform inputs into outputs.

Any activity that accepts inputs, adds values to theseinputs for customers, and produces outputs for thesecustomers. The customers may be either internal or

external to the organization.

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CHARACTERISTICSwhat the customer looks in aproduct.

DIMENSIONS OF QUALITYFOR PRODUCTS & SERVICES

PerformanceFeatures

Reliability

Conformance

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QUALITYPREVENTION COSTS

Quality planning costsProduct design costsProcess costs

Training costsInformation costs

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FAILURE

COSTSScrap costsRework costs

Process failurecostsProcess downtime

costsPrice reduction

THE COST OF

QUALITY (CONT.)

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COSTS

Customer complaintcostsProduct return

costsWarranty claimcosts

Product liabilitycostsLost sales costs

THE COST OF

QUALITY (CONT.)

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PRINCIPLESCustomer-defined qualityManagement leadership

toward qualityStrategic quality planningEmployee responsibility

Continuous qualityimprovementCooperation between the

employees and the

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TQM & organizational Cultural ChangeTraditional Approach

Lack of communication

Control of staff

Inspection & fire fighting

Internal focus on rule

Stability seeking

Adversarial relations

Allocating blame

TQM

Open communications

Empowerment

Prevention

External focus on customer

Continuous improvement

Co-operative relations

Solving problems at their roots

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Custom e

rs

expecta

tionsfo

r

theprod u

ctor

service

Custom

ers

perceptions

of

theproduct

or

service

Custom

ers

percept i

on

sof

theproduc

tor

service

Customers

expecta

tion

s

fortheprodu

ct

orservice

Custom

ers

percept i

ons

ofthe

productorserv

ice

Gap

Perceived qualityis poor

Perceived qualityis good

Expectations >perceptions

Expectations =perceptions

Expectations