TOTAL QUALITY MANAGEMENT

Introduction to TQM
• A new way of managing a business Total
quality was created in the united states.
• The Japanese adopted it as one of the pillars
of their industrial rebirth, to call their version
as TQM to emphasize its difference from the
American approach.
 Definition
• TQM is a set of systematic activities carried
out by the entire organization to effectively
and efficiently achieve company objective, so
as to provide products and services with a
level of quality that satisfy customers at the
appropriate time and price.
 TQM Evolvement
• The three basic strategies for success

• Make use of Reference models

• Apply the universal law of priorities

• Make maximum use of available resources.

• Apply the universal law of priorities
(ABC law)

Given that in every situation the important

factors are few and the unimportant are
many, any one who wishes to achieve success
must concentrate on few items that really
matter.
• Make maximum use of available resources.
• We must make the best use of available
resources.
• The most important resources - human
resources.
• Relates to the universal law of priorities what
is the most important factor in business?
Using reference model,
• In the western countries, profit is the priority
factor for American Companies.
• Having applied and examined the American
model , Japanes falls back on his own
resource, brain power.
• Profit is a business ultimate aim, and with out
profit a company cannot survive.
• For Japanese, True priority for the business is
customer.
• Can you imagine a business without
customers? E.g -Ban on some items, Floppy
disk, Film roll
• The customers as priority

• Customers are the real priority, as it is

customers who fuel a company’s activities.

• What does a customers want in order to be

satisfied?
• Quality (Includes safety)
• Price
• Service (Includes Delivery)
• Which of these takes precedence?
• Give priority to the quality of the product or
service.
• It quality holds top priority, the entire
organization should be centered on quality.
• Broader meaning of quality
• The word quality take on broader meaning.
• Traditional terms of rejects and defects on
the production line.
• In fact, every mistakes occurring any part of
the business impacts quality as a whole.
Accounting

• Delays in the submission of statements and

reports.
• Incorrect data entered into computers.
• Errors in statements and in reports.
• Design

• Variations due to errors.

• Mistakes in design
• Delays in issue of specifications.
• Sales

• Errors in drawing up a contract.

• Wrong description on production orders.
• Purchasing

• Delays in the receipt of materials.

• Incomplete description of materials.
• Quality becomes the fundamental goal of every company.
Quality includes the following.

• Competitiveness Performance
• Service Safety
• Delivery Concern for the environment
• Cost The stockholder’s interest.
• Morale
• Productivity
• Profit
• Product quality
• Quantity
• To achieve quality no mistakes should
be made in any part of the company.
• To quality is to be the highest priority then
what is the most practical activity for each
person in the company to carryout in the
interest of quality?
• American model attributes to priority to
control
• Should Quality control really take priority
over all others?
• Control is indeed important ( the lack of it
would be dangerous) but is it the most
important activity?
• Japanese gave highest priority is customer
satisfaction.
• It consists of two parts customer and
satisfaction,
• who is this customer?
• He is first and foremost ,a human being .
• So top priority is to satisfy by human beings.
• What are the basic characteristics of human
satisfaction?
• A pure and lasting satisfaction does not exist,
for as soon as a certain level of satisfaction is
achieved , a higher is sought , in a process
that continuous indefinitely,
• So among operations , that of improvement
of quality should take top priority.
• Keeping customer satisfied is an endless task.
• So the company must take the approach of
continuous quality improvement.
• Quality improvement should not , however
be limited to products ;
• rather it should be aimed at improving the
quality of all operations carried out by the
company .
• What instruments should the company adopt
to actively pursue constant improvement?
• Japanese used some superlative techniques
for quality control ,based on statistical
approach to problems.
• To use this technique, Japanese invest in a
massive training program in which the entire
work force of the company is given the tools
and knowledge to carry out continuous
quality improvement.
• Japanese senses that the training in QC
techniques is not enough and they want a
complete change in the mentality of all
employees.
• Japanese decides that, in order to bring
about such revolution in attitudes ,
management must take an active role in the
leader ship of quality related activities with
in the company .
• For management to take a leader ship role, it
has to establish the quality goals and then
guide the entire company in the direction of
these goals .
 Fundamental Principles of TQM
model.
• 1. The customer has given up top priority
;thus customer satisfaction is the goal .
• 2. Quality is the most important factor
governing customer satisfaction.
• 3. The meaning of quality is enlarged.
• 4. Responsibility for quality extends to all
employees in a company.
• 5. “Continuous improvement “ of quality is
the company’s priority objective.
• 6. Every individual is personally responsible
for quality improvement.
• 7. Quality control techniques are the
principal tools for managing the company
and the quality of its product.
• 8. All employees receive education and
training in quality control techniques.
• 9. Training is aimed at effecting a radical
change of mindset .
• 10. Top management champions quality.
• The quest for quality leads to better
productivity and lower costs.
• It is this discovery that really displaced as in
the western world.
• The Japanese suddenly appeared on the
international market with high quality
products and competitive prices.