Chapter 2

TQM

Definition of TQM
Total Quality Management (TQM) is an
enhancement to the traditional way of doing
business. It is a proven technique to
guarantee survival in world-class competition.
Total-Made up of the whole.
Quality-Degree of excellence a product or
service provides
Management-Act, art, or manner of-handling,
controlling, directing, etc.
TQM is the art of managing the whole to
achieve excellence.

Definition of TQM
TQM is defined as both a philosophy and a
set of guiding principles that represent the
foundation of a continuously improving
organization.
It is the application of quantitative methods
and human resources to improve all the
processes within an organization and exceed
customer needs now and in the future.
TQM integrates fundamental management
techniques, existing improvement efforts, and
technical tools under a disciplined approach.

Basic concepts
1. A committed and involved management to
provide long-term top-to-bottom organizational
support.
2. An unwavering focus on the customer, both
internally and externally.
3. Effective involvement and utilization of the
entire work force.
4. Continuous improvement of the business and
production processes.
5. Treating suppliers as partners.
6. Establishing performance measures for the
processes.

Scope of TQM activity

Principle and practices
Tools and techniques

Leadership
To achieve never-ending quality
improvement, the CEO must be directly
involved in the organization and
implementation of the quality improvement
activity.
Behaviors or characteristics that successful
leaders on page 28

Customer satisfaction
Specified the target customers
who is our customers?
What do they need?
How do we satisfy their needs?
What corrective action is necessary?
Customer feedback. Feedback program should
have the objective to
Discover customer dissatisfaction.
Discover relative priorities of product quality with
other attributes like price and delivery.
Identify customer needs.
Determine opportunities for improvement

Customer satisfaction
Customer complaints. Every company
should have a procedure for using
complaints.
Accept complaints
Feedback complaint information to all people in
organization
Analyze complaints by doing the detective work
Eliminate the root of cause. More inspection may
not corrective action.
Report result of all investigation and solution to
everyone.

Customer satisfaction
Service after the sale
one characteristic of customer satisfaction occurs
after the sale. We can increate it by being the
best-beyond performance, delivery, and price.

Final comment
Know your customer, listen to them, and when
necessary, educate them. So they can determine
their needs and ultimately judge your ability to
satisfy those needs.

Employee involvement
Project teams
Department or operational areas have standing or
ad hoc teams. Standing team might have weekly
meeting to discuss control chart patterns,
complaints, downtime, on-time delivery, etc. The
composition of as hoc teams will be a function of
the desired improvement.
Education and training
Education and training is important for TQM.
Different level of management, and different
function would need different knowledge.
Timing for training is also important for level of
success.
Suggestion system and Final comments must be
provided to increase the potential for quality
improvement.

CONTINUOUS PROCESS
IMPROVEMENT
Process refers to business and production
activities of all organizations. Business
processes such as purchasing, engineering,
accounting, and marketing are areas where
nonconformance can represent an opportunity
for substantial improvement.
Figure 2-3 shows input/output process model
Inputs may be materials, money, information,
data, etc. Outputs may be information, data,
products, services, etc.

CONTINUOUS PROCESS
IMPROVEMENT
Outputs usually require performance
measures. They are designed to achieve
certain outcomes such as customer
satisfaction.
Feedback is necessary to improve the process
Process definition begins with defining the
internal and/or external customers.

CONTINUOUS PROCESS
IMPROVEMENT
The process is the interaction of some
combination of people, materials, equipment,
method, measurement, and the environment
to produce an outcome such as a product,
service, or an input to another process. In
addition to having measurable input and
output, a process must have value-added
activities and repeatability.

CONTINUOUS PROCESS
IMPROVEMENT
There are five basic ways to define an
improvement :

reduce resources,
reduce errors,
meet or exceed expectations of customers
make the process safer
make the process more satisfying to the
person doing it.

CONTINUOUS PROCESS
IMPROVEMENT
Problem-solving method applied to improve
process has seven phases:

Identify the opportunity

Analyze the current process
Develop the optimal solution(s)
Implement changes

CONTINUOUS PROCESS
IMPROVEMENT
Study the results
Standardize the solution
Plan for the future

Supplier partnership
In most companies, supplier
management is very important.
Especially in JIT environment, the
supplier quality must be excellent, and
the supplier must reduce the setup
time.
Supplier selection criteria
Capability and capacity to provide quality product
Suppliers control of its suppliers
Suppliers accessibility

Performance measures
Performance measure are importance to
identify potential project, to justify
project resource allocation, and to
assess the improvement results

Implementation
The TQM implementation process begins with
senior management's and, most important,
the CEO's commitment. Leadership is
essential during every phase of the
implementation process and particularly at
the start.
If senior management has not been educated
in the TQM concepts, that should be
accomplished next.
Timing of the implementation process can be
very important. Is the organization ready to
embark on the total quality journey? There
may be some foreseeable problems

Implementation
The formation of the quality council has to be
established.
The development of core values, a vision
statement, a mission statement, and a quality
policy statement, with input from all
personnel, should be completed first.

Seven Steps to Strategic Planning

1. Customer Needs. The planning should
discover the future needs of the customers.
2. Customer Positioning. The planners
determine where the organization wants to
be in relation to the customers.
3. Predict the Future. The planners must look
into their crystal balls to predict future
conditions that will affect their product or
service. Demographics, economic forecasts,
and technical assessments or projections are
tools that help predict the future.

Seven Steps to Strategic Planning

4. Gap Analysis. This step requires the planners to
identify the gaps between the current state and
the future state of the organization.
5. Closing the Gap. The plan can now be
developed to close the gap by establishing goals
and responsibilities.

Seven Steps to Strategic Planning

6. Alignment. As the plan is developed, it
must be aligned with the mission, vision, and
core values of the organization.
7. Implementation. Resources must be
allocated to collecting data, designing
changes, and overcoming resistance to
change and also monitoring activity to ensure
that progress is being made.

TQM Compared to ISO 9001

ISO 9000 is a Quality System Management
Standard. TQM is a philosophy of perpetual
improvement. The ISO Quality Standard sets in
place a system to deploy policy and verifiable
objectives. An ISO implementation is a basis for a
Total Quality Management implementation. Where
there is an ISO system, about 75 percent of the steps
are in place for TQM. The requirements for TQM can
be considered ISO plus. Another aspect relating to
the ISO Standard is that the proposed changes for
the next revision (1999) will contain customer
satisfaction and measurement requirements. In
short, implementing TQM is being proactive
concerning quality rather than reactive.