Total Quality Management

(TQM)

Prof. B. Raja Shekhar

B. Tech.(Civil), M.B.A, Ph.D.(Mngt.), M.Sc.(Psy.), Ph.D. (Psy.),FDP(IIMA),…

Dean

School of Management Studies &

Director, Internal Quality Assurance Cell (IQAC)

University of Hyderabad

Hyderabad-500 046

brsmsuh@gmail.com

098666 99983

www.profbrajashekhar.in

2

My Research work in Quality area

S.No. Research Area Research Scholar

1 Total Quality Management Gayatri Kandula

2 Railway Service Quality Devi Prasad Maruvada

3 Retail Service Quality Udaybhaskar Nallamilli

4 Higher Education Quality Subrahmanyam

Annamdevula

5 Healthcare Service Quality Ramaiah Ittamalla

6 Pharmaceutical Supply Chain

Service Quality

Umamaheswari Devi

Paramata

7 Bus Transport Quality Mahesh Ramalingam

8 Airlines Service Quality Subhash Chandra Mahapatra

9 Mobile Telecom Service Quality Suresh Kandulapati

10 Internet Banking Service Quality Srinivas Chalamalla

11 Tourism Service quality Chitti Seshu Jonnalagadda

12 Value creation in Hotel Industry Aditi Dang

“If Qualty is to be managed, it must be

understood first”

- David A. Garvin

What is Quality?

What are the

Dimensions of Quality?

Dimensions of Quality

(David A.Garvin, Harvard Business School)

1.Performance

2.Features

3.Reliability

4.Conformance

5.Durability

6.Serviceability

7.Aesthetics

8.Safety

9.Other perceptions

What are the

dimensions of Service

Quality?

Dimensions of Service Quality

1. Reliability – perform promised service dependably and accurately

2. Responsiveness - willingness/readiness to provide prompt service

3. Competence - possess knowledge and skill to perform the service

4. Access - approachability and ease of contact of service personnel

5. Courtesy - politeness, consideration, and friendliness of service personnel

6. Communication - keeping customers informed; listening to customers

7. Credibility - trustworthy, believable, honest

8. Security - freedom from danger, risk, or doubt

9. Understanding/knowing customer - knowing customer’s needs

10. Tangibles - physical evidence of service

(Parasuraman, A. Zeithaml, V., and Berry, L.)

What is Customer

Satisfaction?

What is Total Quality

Management?

TQM

Total quality management is a set of

systematic activities carried out by the entire

organization to effectively and efficiently

achieve company objectives so as to provide

products and services with a level of quality

that satisfies customers, at the appropriate

time and price.

The Japanese Union of Scientists and Engineers (JUSE)

TQM

Encompasses entire organization.

Stresses a commitment by management to have a

continuing, institution-wide, drive toward excellence

in all aspects that are important to the ultimate user.

The Emergence of Total Quality Management

Statistical methods applied to

manufacturing

(1920s-1940s)

Walter Shewhart

Pioneer of modern quality control

Increased emphasis on process

improvement

(1940s)

W. Edwards Deming

Japan’s reconstruction (1950s)

Deming assists Mac Arthur in Japan

Japan emerges as a

world quality leader

(1960s-1970s)

•Deming’s 14-point quality program

• Genichi Taguchi

Total quality control emerges in US

(1970s)

• Deming

• Juran’s quality costs

• Armand Feligebaum

Zero defects movement in US

(1980s)

Philip B. Crosby of US: Quality is free concept

Shigeo Shingo of Japan

TQM as understood in today’s

business

(1980s-present)

Ultimate goal is to create

Customer delight in each activity

Deming’s 14 Points on Total Quality

Management

1. Create constancy of purpose toward improvement of product and

service.

2. Adopt the new philosophy.

3. Cease dependence on mass inspection.

4. Improve the quality of incoming materials

5. Find the problems; constantly improve the system of production and

service

6. Institute modern methods of training and education for all.

7. Fear is a barrier to improvement so drive out fear by encouraging

effective two-way communication.

8. Break down barriers between departments and staff areas.

9. Institute modern methods of training and education for all. Use Modern methods of on-the-job training

10. Institute modern methods of supervision

11. Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management.

12. Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship.

13. Institute a vigorous program of education, and encourage self-improvement for everyone.

14. Top management's permanent commitment to ever-improving quality and productivity is importent

TQM

Constant drive

for continuous

improvement and

learning.

Concern for

employee

involvement and

development

Management

by Fact

Result Focus Passion to deliver

customer value /

excellence

Organisation

response

ability

Actions not just

words

(implementation) Process

Management

Partnership

perspective

(internal /

external)

BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

FOUR KEY PRINCIPLES

•Measure quality so you can affect it

•Focus on a moving customer

•Involve every employee

•Think long term - Act short term

Total Quality Management

1. Customer defined quality

2. Top management’s commitment

3. Quality as a strategic issue

4. All employees responsible for quality

5. Continuous improvement

6. Statistical quality control

7. Training & education for all employees

TQM

Wheel Customer

satisfaction

Benefits of TQM programme

To the customer To the company To the staff

Empowerment

More training more skills

Quality improves

Motivates staff

Increases productivity

Reduces costs

Reduces defects

Resolves problem

faster

Makes company a

leader

Fewer problems with

the products/services

Better customer care

Greater satisfaction

Human side of quality

The human quality should always include

the following three components :

Creativity - The joy of thinking

Physical activity - The joy of working with

sweat on the forehead.

Sociality - The joy of working together

Organizational

Practices

Quality

Principles

Employee Fulfillment

Attitudes

(e.g., Commitment)

How to Do

What to Do

user

Satisfaction

Achieving

Total Quality Management

Organizational Practices

Leadership

Mission statement

Effective operating procedure

Staff support

Training

Culture change

Manage tasks

Major breakthroughs

Will this improve

profits

Some how do it

Manage people

Small continuous

improvements

Will it improve customer

satisfaction

Right first time

FROM TO

Culture change

Spend company’s money

Suppress problems

Some how in time

I .

Talk about quality

Spend as if your own

money

Expose problems

Just in time techniques

We

Walk quality

FROM TO

Quality Circle

A QC is a self governing group of workers,

with or without their supervisors, who

voluntarily meet on a regular basis to identify ,

analyze and solve problems in their work

field.

Edwin B Flippo

Quality Circles- Objectives

To contribute to the improvement and development of the organization.

To enhance, develop and utilize human resources effectively.

To improve quality of work life.

Quality Circles

Quality control circles is a small group of

employees voluntarily performing quality

control activities within a single work unit.

The aim of QCC’s is to facilitate process

control , mutual and self development of

employees and improvement of their

workplace and productivity by full

participation of all members.

The Quality Circle Process

Organization 8-10 members

Same area Moderator

Presentation Implementation

monitoring

Solution Problem results

Problem analysis Cause & effect Data collection &

analysis

Problem Ide… n

List alternatives Consensus

Brainstorming

Training

Group processes Data collection Problem analysis

Issues In Implementing

QC’s

Understanding the concepts

Education

Execution Delays

Interference and interruption

Operational problems

QUALITY ASSURANCE

Quality assurance system

Quality definition

Quality design

Quality accomplishment

CORRECTIONS (TAKING MEASURES FOR CORRECTION)

THE ROLE OF THE MANAGEMENT IN THE QUALITY ASSURANCE

Quality Tools

Process analysis

Runs chart

Control chart

Pareto chart

Histogram

Scatter diagram

Fishbone chart

Presentation skills

Analysis skills

Brainstorming

Tools for Quality

QUALITY ASSURANCE

Quality assurance system

Q = f( 9 M factors)

Man

Materials

Machines-Equipment

Management

Methods

Measuring

Motivation

Money

Markets

CORRECTIONS ( TAKING MEASURES FOR

CORRECTION) Quality improvement

Q

P

D

A

C

P

D

A

C

P

D

A

C

P

D

A

C

Time

Quality Level

QUALITY ASSURANCE

Every next circle must be better

quality

Limitations

Lack of commitment from top management

Not obtaining employee buy-in and participation

Program stops with training

Expecting immediate results

Focus on techniques rather than the system

Thank you