Total Quality Management - An Overview

Department Of I.E.M (WBUT)

In the late 1970s and early 1980s, the developed countries of North America and Western Europe suffered economically in the face of stiff competition from Japan's ability to produce high-quality goods at competitive cost. For the first

time since the start of the Industrial Revolution, the United Kingdom became a net importer of finished goods. The United States undertook its own soul-searching, expressed most pointedly in

the television broadcast of If Japan Can... Why Can't We? Firms began reexamining the techniques of quality control invented over the past 50 years and how those techniques had been so successfully employed by the Japanese. It was in the midst of this economic turmoil that TQM took root.


The exact origin of the term "total quality management" is uncertain.

It is almost certainly inspired by Armand V. Feigenbaum's multi-edition book Total Quality Control and Kaoru Ishikawa's What Is Total Quality Control? The Japanese Way .

It may have been first coined in the United Kingdom by the Department of Trade and Industry during its 1983 "National Quality Campaign“ or it may have been first coined in the United States by the Naval Air Systems Command to describe its quality-improvement efforts in 1985.


Total - made up of the whole

Quality - degree of excellence a product or

service provides

Management - act, art or manner of

planning, controlling, directing.

Therefore, TQM is the art of managing the whole to achieve excellence.

This involves the continuous improvement of organizational

processes, resulting in high quality products and services.


“Do the right things right the first time, every time.”

1. Be Customer focused2. Insure Total Employee

Involvement3. Process Centered4. Integrated system5. Strategic and systematic

approach6. Continual Improvement7. Fact Based Decision

Making


Counting : Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems

Customers : Quality for the customer as a driving force and central concern.

Culture : Shared values and beliefs, expressed by leaders, that define and support quality.


1. Competition

2. Changing customer

3. Changing product mix

4. Product complexity

5. Higher levels of customer satisfaction

Relatively simpler approaches to quality viz. product inspection for quality control and incorporation of internal cost of poor quality into

the selling price, might not work for today’s complex market environment.

Managing quality is fundamental to any activity and having a clear understanding

of the five aspects, measuring performance and taking action to

improve is essential to an organizations survival and growth.


Statistical approaches to quality control started at Western Electric with

the separation of inspection division.

Pioneers like Walter Shewhart, George Edwards, W. Edwards Deming

and Joseph M. Juran were all employees of Western Electric.

Deming and Juran introduced statistical

quality control theory to Japanese industry.

The difference between approaches to

quality in USA and Japan: Deming and

Juran were able to convince the top

managers the importance of quality.

W. Edwards Deming Joseph M. Juran

Next 20 odd years, when top managers in USA focused on

marketing, production quantity and financial performance,

Japanese managers improved quality at an unprecedented rate.


America woke up to the quality revolution in early 1980s. Ford Motor

Company consulted Dr. Deming to help transform its operations.

Birth of the term Total Quality

Management (TQM).

TQM – Integration of quality

principles into organization’s

management systems.

Early 1990s: Quality management principles started finding their way in service

industry. FedEx, The Ritz-Carton Hotel Company were the quality leaders.

Managers started to realize

that “quality of management”

is more important than

“management of quality.”

TQM recognized worldwide: Countries like Korea, India,

Spain and Brazil are mounting efforts to increase quality

awareness.


Quality perspectives


Definition of quality, “A product or a service possesses quality if it helps

somebody and enjoys a good and sustainable market.”


Pursue quality on two levels :

1. The mission of the firm as a whole is to achieve high product quality.

2. The mission of each individual department is to achieve high production quality.


Absolute’s of Management

• Quality means conformance to requirementsnot elegance.

• There is no such thing as quality problem.

• There is no such thing as economics of quality: it is always cheaper to do the job right the first time.

• The only performance measurement is the cost of quality: the cost of non-conformance.

Basic Elements of Improvement

Determination (commitment by the top management)

Education (of the employees towards Zero Defects (ZD))

Implementation (of the organizational processes towards ZD)

Phillip B. Crosby


• Improvement in all areas of business serves to enhance quality of the firm.

• Three things required for successful kaizen program: operating practices, total involvement, and training.

• Operating practices expose opportunities for improvement. JIT reveals waste and inefficiency as well as poor quality.

for gradual and orderly continuous improvement over a long period of time with

minimum financial investment, and with participation by everyone in the organization.


The Deming cycle: Originally developed by

Walter Shewart, but renamed in 1950s because

Deming promoted it extensively.

It is the PDCA cycle.

1. Plan – Study the current system; identifying problems; testing theories of causes; and developing solutions.

2. Do – Plan is implemented on a trial basis. Data collected and documented.

3. Check/Study – Determine whether the trial plan is working correctly by evaluating the results.

4. Act – Improvements are standardized and final plan is implemented.

Variation of PDSA cycle: FADE – Focus, Analyze, Develop, Execute cycle!


• Process map identifies the sequence of activities or the flow in a process.

• Objectively provides a picture of the stepsneeded to accomplish a task.

• Helps all employees understand how they fit into the process and who are their suppliers and customers.

• Can also pinpoint places where quality-related measurements should be taken.

• Also called process mapping and analysis.

• Very successfully implemented in various organizations. e.g. Motorola reduced manufacturing time for pagers using flow charts.


• Based on the 80-20 Pareto Distribution.

• Helpful in identifying the quality focus areas.

• Popularized by Juran.

• It is a histogram of the data from the largest frequency to the smallest.

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• Graphical components of the

regression analysis.

• Often used to point out relationship

between variables. Statistical

correlation analysis used to interpret

scatter diagrams.

Run Chart:

Measurement against

progression of time.

Control Chart: Add

Upper Control Limit and

Lower Control Limit to

the run chart.


Kaoru Ishikawa is best known for the development of

quality tools called cause-and-effect diagrams, also called fishbone or Ishikawa diagrams. These diagrams are used for quality problem solving.

He was the first quality guru to emphasize the importance of the “internal customer,” the next person in the production process. He was also one of the first to stress the importance of total company quality control, rather than just focusing on products and services.


Dr. Genichi Taguchi is a Japanese quality expert known for his work in the area of product design. Taguchi is known for applying a concept called design of experiment to product design.This method is an engineering approach that is based on developing robustdesign, a design that results in products that can perform over a wide range of conditions. of costs of conformance to specifications is incorrect, and proposed a different way to look at these costs.

Taguchi’s philosophy is based on the idea that it is easier to design a product that can perform over a wide range of environmental conditions than it is to control the environmental conditions.Taguchi has also had a large impact on today’s view of the costs of quality. He pointed out that the traditional view .


The Malcolm Baldrige National Quality Award was established in 1987, when Congress passed the Malcolm BaldrigeNational Quality Improvement Act. The award is named after the former Secretary of Commerce, Malcolm Baldrige, and is intended to reward and stimulate quality initiatives. It is designed to recognize companies that establish and demonstrate high quality standards. The award is given to no more than two companies in each of three categories: manufacturing, service, and small business. Past winners. include Motorola Corporation, Xerox, FedEx, 3M, IBM, and the Ritz-Carlton


• Created by International Organization for Standardization(IOS) which was created in 1946 to standardize quality requirement within the European market.

• IOS initially composed of representatives from 91 countries: probably most wide base for quality standards.

• Adopted a series of written quality standards in 1987 (first revised in 1994, and more recently (and significantly) in 2000).

• Prefix “ISO” in the name refers to the scientific term “iso” for equal. Thus, certified organizations are assured to have quality equal to their peers.


• Defines quality systems standards based on the premise that certain generic characteristics of management principles can be standardized.

• And that a well-designed, well-implemented and well managed quality system provides confidence that outputs will meet customer expectations and requirements.

• Standards are recognized by 100 countries including Japan and USA.

• Intended to apply to all types of businesses. (Recently, B2B firm bestroute.com

became the first e-commerce company

to get ISO certification.)


Created to meet five objectives:

Achieve, maintain, and seek to continuously improve product quality in relation to the requirements.

Improve the quality of operations to continually meet customers’ and stakeholders’ needs.

Provide confidence to internal management that quality requirements are being met.

Provide confidence to the customers that quality requirements are being met.

Provide confidence that quality system requirements are fulfilled.


Both TQM and BPR are customer-oriented. They both aim on improving the customer satisfaction. Also, they both suggest thinking outside in. On the other words, they both suggest to think from the customer's viewpoint. Also, both TQM and BPR are process-oriented. They both target to alter the processes, but not just on the product. Moreover, they both take team approach.

Nearly all BPR projects are initiated by top-down approach. Since BPR would results great changes, staff resistance is obvious. Therefore, top management's support and commitment are very important. For TQM, both top-down approach and bottom-up approach are possible.


The basic assumptions of TQM and BPR are different. TQM assumes that the existing practices or systems are principally right and useful. The target of TQM is to improve on the basis of the existing system. However, BPR takes an opposite assumption. BPR assumes the existing system is useless and suggests starting it over. Unlike TQM that aims on smoothly and incremental improvements, BPR aims on dramatic results.

TQM emphasis on the use of statistical process

control. However, there is no similar concern for BPR.

On the other hand, BPR emphasis more on the

enabling role of information technology.


TQM emphasis on total involvement, including all the stakeholders. The involvement even extends to suppliers and

customers. Also, TQM also suggests involving all the processes in the company, including human resources management, order fulfilling, manufacturing, marketing and customer management and others. However, for BPR, the project can be controlled to a

specified area only.


Standardization is one of the key points of TQM. TQM aims on standardize the practices, thus achieving a consistent performance. It also makes that there is

a certain degree of documentation for TQM. However, BPR emphasis on flexibility and believes that standardization would increase the complexity of

the process. Therefore, standardization is rare in BPR and the level of documentation is much lower.

TQM is a cultural issue. Once the culture is built, TQM is absorbed in the daily operation. However, BPR is a project. It is with a clear target

that should be achieved as soon as possible.


TQM and BPR are used by organizations with a different focus and after their implementation, achieving different results. Some organizations prefer TQM, others BPR. They are generally considered as two completely different approaches of process improvement that can not be integrated. Because of their common features, we can conclude that the integration is possible. Both approaches bring significant results in organizations that implement them. If organizations use the strengths of both methodologies for process improvement jointly, they could achieve more significant results as if they were used separately.

The aim of this presentation was to provide an overview what actually is Business Process Re-Engineering and Total Quality Management.


References :Google.com, BPR by Prof. Dr Majed El-Farra 2009, INNOREGIO by Sotiris Zigiaris, B P R H E L L A S S A, Youtube.com, Sciencedirect.com, TQM by R.R. Lakhe, TQM and BPR by William Wong, Kaizen and various Journals, Text Books.

Total Quality Management - An Overview

Engineering

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