Total quality management (TQM) is an approach to managing an organization that aims to achieve excellence by focusing on the needs of customers, both internal and external. It involves commitments from leadership as well as participation from the entire workforce. Key aspects include continuous improvement, treating suppliers as partners, establishing performance measures, and making decisions with a long-term focus on preventing errors. Barriers to implementing TQM include resistance to change, lack of communication and training, incompatible organizational structures, ineffective measurement, and failure to continuously improve processes. Overcoming these obstacles can provide benefits such as improved quality, employee participation, customer satisfaction, and profitability.
1. 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.
Therefore, TQM is the art of managing the whole to
achieve excellence.
2. Ford Motor Company had operating losses of
$3.3 billion between 1980 and 1982.
Xerox market share dropped from 93% in 1971
to 40% in 1981.
Attention to quality was seen as a way to
combat the competition.
3. “Do the right things right the first time, every
time.”
4. BASIC APPROACH
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
process.
5- Treating suppliers as partners
6- Establish performance measures for the processes
5. New And Old Cultures
Quality Element : Previous State: TQM
Definition Product-Oriented Customer-Oriented
Priorities Second to Service First among equals
and cost of service and cost
Decisions Short-Term Long-Term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality control Every one
Problem Solving Managers Teams
Procurement Price Lifecycle costs,
Partnership
Manager’s Role Plan, assign, control Delegate, coach,
and enforce facilitate and mentor
6. -Awareness is necessary that the quality of the
product or service must be improved.
-Awareness comes about when an organization
loses market share or realizes that quality and
productivity go hand-in-hand.
7. Usual Thinking in terms of an excellent product
or service that fulfills or exceeds our
expectations
9. The Dimensions of Quality
Dimension: Meaning and Example:
Performance Primary product characteristics,such
as the brightness of the picture.
Features Secondary characteristics, add
features such as remote control
Conformance Meeting specifications or industry
standards, workmanship
Reliability Consistency of performance over
time, average time for the unit to
fail
Durability Useful life, includes repair
10.
11. Historical Review:
1924: W.A Shewhart of Bell Telephone Laboratories developed
a statistical chart for the control of product variables.
1942: Recognition of the value of statistical quality control
became apparent.
1946: The American society for Quality Control was formed.
1950: W.Edwards Deming gave a series of lectures on
statistical methods to Japanese engineers.
1960: The first quality control circles were formed for the
purpose of quality improvement.
12.
13. One that opposes, stands in the way of, or holds up
progress.
OR,
an obstruction that stands in the way (and must be
removed)
14.
15. 1- People change when they want to and to meet
their own needs.
2- Never expect anyone to engage in behavior that
serves the organization’s values unless adequate
reason (why) has been given.
3- For change to be accepted, people must be moved
from a state of fear to trust.
16. - All the constituents of organization must be
involved in planning and its implementation.
- Importance of Two-way communication during the
development of plan and its implementation.
- Customer satisfaction should be the goal rather
than financial or sales goals.
17. -Training and education ongoing process for every
one in organization.
-Training and Education are most important when
senior management conducts the training on the
principles of TQM.
-Informal training occurs by communicating the
TQM effort to all personnel on a continuous basis.
18. 5-INCOMPATIBLE ORGANIZATIONAL STRUCTURE AND
ISOLATED INDIVIDUALS AND DEPARTMENTS:
-Differences between departments and individuals
can create implementation problems.
-Restructuring to make the organization more
responsive to customer needs may be needed.
-At Spartan Light Metal Products, Inc. in
Sparta, IL, product support teams composed of
three members from design, quality and
production are assigned to each customer
segment.
19. 6-Ineffective Measurement
Techniques and Lack of
Access to Data and Results:
-Key characteristics of the organization should
be measured so that effective decisions can
be made.
-In order to improve a process you need to
measure the effect of improvement of ideas.
-Access to data and quick retrieval is
necessary for effective processes.
20. -Organizations need to understand the changing
needs and expectations of their customers.
-Effective feedback mechanisms that provide data
for decision making are necessary for this
understanding
To Overcome this Obstacle, give the right people
direct access to the customers.
21. -Teams need to have the proper training and, at least
in the beginning, a facilitator.
-Whenever possible, the team’s recommendations
should be followed.
-Individuals should be empowered to make the
decisions that affect the efficiency of their process or
the satisfaction of their customers.
22. -A lack of continuous improvement of
the processes, product, and/or service
will even leave the leader of the pack
in the dust.
-Will Rogers said, “ Event if you’re on
the right track, you’ll get run over if
you sit there”
23. According to a survey in Georgia, the benefits are,
Improved quality,
Employee participation,
Teamwork,
Working Relationships,
Customer Satisfaction,
Employee Satisfaction,
Profitability,
Market Share,
Productivity