Chapter 6 - TQM

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CHAPTER – 6
TOTAL QUALITY MANAGEMENT
Introduction and Implementation of

Total Quality Management
Total Quality Management is a management approach that originated in the 1950's

and has steadily become more popular since the early 1980's. Total Quality is a
description of the culture, attitude and organization of a company that strives to
provide customers with products and services that satisfy their needs. The culture
requires quality in all aspects of the company's operations, with processes being done
right the first time and defects and waste eradicated from operations.
Total Quality Management, TQM, is a method by which management and employees

can become involved in the continuous improvement of the production of goods and
services. It is a combination of quality and management tools aimed at increasing
business and reducing losses due to wasteful practices.
Some of the companies who have implemented TQM include Ford Motor Company,
Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.
TQM Defined:
TQM is a management philosophy that seeks to integrate all organizational functions

(marketing, finance, design, engineering, and production, customer service, etc.) to
focus on meeting customer needs and organizational objectives.
TQM views an organization as a collection of processes. It maintains that organizations

must strive to continuously improve these processes by incorporating the knowledge and
experiences of workers. The simple objective of TQM is "Do the right things, right the
first time, every time". TQM is infinitely variable and adaptable. Although originally
applied to manufacturing operations, and for a number of years only used in that area,
TQM is now becoming recognized as a generic management tool, just as applicable in
service and public sector organizations.
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Principles of TQM:
The key principles of TQM are as following:
• Management Commitment
1. Plan (drive, direct)
2. Do (deploy, support, participate)
3. Check (review)
4. Act (recognize, communicate, revise)
• Employee Empowerment
1. Training
2. Suggestion scheme
3. Measurement and recognition
4. Excellence teams
• Fact Based Decision Making
1. SPC (statistical process control)
2. The 7 statistical tools
3. TOPS -Team Oriented Problem Solving
• Continuous Improvement
1. Systematic measurement and focus
2. Excellence teams
3. Cross-functional process management
4. Attain, maintain, improve standards
• Customer Focus
1. Supplier partnership
2. Service relationship with internal customers
3. Never compromise quality
4. Customer driven standards
The Concept of Continuous Improvement by TQM:
TQM is mainly concerned with continuous improvement in all work, from high level
strategic planning and decision-making, to detailed execution of work elements on the
shop floor. It stems from the belief that mistakes can be avoided and defects can be
prevented. It leads to continuously improving results, in all aspects of work, as a result of
continuously improving capabilities, people, processes, and technology and machine
capabilities.
A central principle of TQM is that people may make mistakes, but most of them are
caused, or at least permitted, by faulty systems and processes. This means that the root
cause of such mistakes can be identified and eliminated, and changing the process can
prevent repetition.
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There are three major mechanisms of prevention:
1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-

Yoke).
2. Where mistakes can't be absolutely prevented, detecting them early to prevent
them being passed down the value added chain (Inspection at source or by the
next operation).
3. Where mistakes recur, stopping production until the process can be corrected,
to prevent the production of more defects. (Stop in time).
Steps in Managing the Transition:
Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a
new system such as TQM:
1. Identifying tasks to be done,
2. Creating necessary management structures, and developing strategies for building
commitment,
3. Designing mechanisms to communicate the change, and
4. Assigning resources.
1. Task identification would include:

•A study of present conditions (assessing current reality, as described above);
•Assessing readiness, such as through a force field analysis;
•Creating a model of the desired state, in this case, implementation of TQM;
•Announcing the change goals to the organization; and
•Assigning responsibilities and resources. (This final step would include securing
outside consultation and training and assigning someone within the organization
to oversee the effort. This should be a responsibility of top management.)
2. Designing transition management structures is also a responsibility of top

management. Management must be heavily involved and committed as leaders rather
than relying on a separate staff person. An organization wide steering committee to
oversee the effort may be appropriate.
3. To communicate the change:

• Mechanisms beyond existing processes will need to be developed.
• Special all-staff meetings attended by executives and/or dialog sessions and
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• TQM newsletters may be an effective ongoing communication tool to keep

employees aware of activities and accomplishments.
4. Assigning of resources for the change effort is important with TQM:
Because, outside consultants will, almost always be required. Choose

consultants based on their prior relevant experience and their commitment to
adapting the process to fit unique organizational needs. While consultants will
be invaluable with initial training of staff and TQM system design, employees
(management and others) should be actively involved in TQM implementation,
perhaps after receiving training in change management which they can then pass
on to other employees.
Conclusion:
1. TQM encourages participation amongst shop floor workers and managers.

2. It evolves discipline and philosophy of management.
3. This results into planned and continuous improvement and assumes
4. That quality is the outcome of all activities that take place within an organization;
5. That all functions and all employees have to participate in the improvement
process;
6. That organizations need, both quality systems and a quality culture.
COMPARISON BETWEEN QUALITY CONTROL AND TQM
SR.NO QUALITY CONTROL TQM

1 Q.C. inspects quality after TQM designs and builds quality into the
production product and production system
2 Q.C. is reactive TQM is proactive
3 Q.C. focuses on consequences of TQM focuses on identifying and
poor quality eliminating causes of poor quality.
4 Some number of defects are Goal is zero defect
normal
5 Responsibility for quality is Quality is the responsibility of every one.
assigned to individuals or
departments.
6 Improving quality increases costs. Improving quality pays for itself.
*******************************************

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1

Introduction and Implementation of

Total Quality Management is a management approach that originated in the 1950's

Total Quality Management, TQM, is a method by which management and employees

TQM is a management philosophy that seeks to integrate all organizational functions

TQM views an organization as a collection of processes. It maintains that organizations

The key principles of TQM are as following:

The Concept of Continuous Improvement by TQM:

There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-

Steps in Managing the Transition:

1. Task identification would include:

2. Designing transition management structures is also a responsibility of top

3. To communicate the change:

• TQM newsletters may be an effective ongoing communication tool to keep

4. Assigning of resources for the change effort is important with TQM:

Because, outside consultants will, almost always be required. Choose

1. TQM encourages participation amongst shop floor workers and managers.

COMPARISON BETWEEN QUALITY CONTROL AND TQM

SR.NO QUALITY CONTROL TQM

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