TOTAL QUALITY MANAGEMENT PMS

Principles of Total Quality Management

Customer Satisfaction

The customer ultimately determines the

level of quality. No matter what an
organization does to foster quality
improvement — training employees,
integrating quality into the design
process, or upgrading computers or
software — the customer determines
whether the efforts were worthwhile.
Employee Commitment

All employees participate in working

toward common goals. Total employee
commitment can only be obtained after
fear has been driven from the
workplace, when empowerment has
occurred, and when management has
provided the proper environment.
 Fact-Based Decision Making

In order to know how well an

organization is performing, data on
performance measures are necessary.
TQM requires that an organization
continually collect and analyze data in
order to improve decision making
accuracy, achieve consensus, and allow
prediction based on past history.
Strategic Thinking
A critical part of the management of quality is the strategic and systematic
approach to achieving an organization’s vision, mission, and goals. This process,
called strategic planning or strategic management, includes the formulation of a
strategic plan that integrates quality as a core component.
Integrated System

Although an organization may consist

of many different functional specialties
often organized into vertically
structured departments, it is the
horizontal processes interconnecting
these functions that are the focus of
TQM.
Process-Centered
A fundamental part of TQM is a focus on process thinking. A process is a
series of steps that take inputs from suppliers (internal or external) and
transforms them into outputs that are delivered to customers (internal or
external). The steps required to carry out the process are defined, and
performance measures are continuously monitored in order to detect
unexpected variation.
Continuous Improvement

A large aspect of TQM is continual

process improvement. Continual
improvement drives an organization to
be both analytical and creative in
finding ways to become more
competitive and more effective at
meeting stakeholder expectations.
Effective Communication
During times of organizational change, as well as part of day-to-day operation,
effective communications plays a large part in maintaining morale and in
motivating employees at all levels. Communications involve strategies, method,
and timeliness.
 OUTLINE
TOTAL ▪ TQM Models
🢝 Baldrige Criteria for Performance
QUALITY Excellence
MANAGEMENT 🢝 European Foundation for Quality
Management (EFQM)
🢝 International Organization for
Standardization (ISO 9001)
🢝 The Deming Prize Award
🢝 The Oakland Model of TQM
▪ Role of Managers in TQM
▪ Role of Employees in TQM
▪ Case Study on TQM: Philippine
Setting- The MERALCO Success Story
TQM MODEL: THE BALDRIGE CRITERIA FOR
PERFORMANCE EXCELLENCE (USA)
• a framework comprised of 7 criteria used to develop and/or
improve overall performance and business processes; systems
perspective
• named after Malcolm Baldrige, former US Secretary of
Commerce recognized for his contributions as an advocate of
organizational assessment and quality management as a key
to U.S.’ prosperity and sustainability.

• The Malcolm Baldrige National Quality Award is the highest

level of national recognition that an organization can receive
for performance excellence.
TQM MODEL: THE BALDRIGE
FRAMEWORK
CRITERIA:
1. Leadership
2. Strategy
3. Customers
4. Measurement, Analysis, &
Knowledge Management
5. Workforce
6. Operations
7. Results
-focuses on seven critical
organizational areas
 TQM MODEL:

The Baldrige framework

is based on core values
and concepts that
represent beliefs and
behaviors found in high-
performing
organizations:
TQM MODEL: THE BALDRIGE CRITERIA
FOR PERFORMANCE EXCELLENCE
FOUR DIMENSIONS FOR EVALUATING & IMPROVING PROCESSES
1. Approach: How do you accomplish your organization’s work? How effective
are your key approaches?
2. Deployment: How consistently are your key processes used in relevant parts
of your organization?
3. Learning: How well have you evaluated and improved your key approaches?
How well have improvements been
shared within your organization?
4. Integration: How well do your approaches align with your current and future
organizational needs? How well are processes and operations harmonized
across your organization?
 TQM MODEL: THE BALDRIGE AWARD
Established by U.S. Congress in The Baldrige Award originally
1987 to recognize companies for included manufacturing, service,
Mid-1980s; U.S. Leaders
their achievements in quality and small business
recognized growing need for
and business performance and organizations; scope expanded
American companies to focus on
to raise awareness about the to education and health care
quality in order to thrive against
importance of quality and organizations in 1998; eventually
competitors
performance excellence in added non-profit organizations &
gaining a competitive edge. government agencies in 2007.
Org.'s role-model management
systems- continuous
18 annual awards across 6 improvement in the delivery of
industries—manufacturing, products and/or services,
The award is not given for
service, small business, demonstrate efficient & effective
specific products or services.
education, health care, and non- operations, and provide a way of
profit; engaging and responding to
customers and other
stakeholders.
TQM MODEL:
2019 BALDRIGE AWARD RECIPIENTS
Center for Organ
Adventist Health White City of Germantown,
Recovery & Education
Memorial, Los Angeles, Germantown,
(CORE), Pittsburgh,
California Tennessee
Pennsylvania
(Health care) (Non-profit)
(Non-profit)

Howard Community Illinois Municipal

Mary Greeley Medical
College, Columbia, Retirement Fund, Oak
Center, Ames, Iowa
Maryland Brook, Illinois
(Health care)
(Education) (Non-profit)
TQM MODEL: EUROPEAN FOUNDATION
FOR QUALITY MANAGEMENT (EFQM)
🢝 -1992; the EFQM Excellence Model is a practical tool that
indicates the position of business organizations on a path of
excellence
🢝 -helps them to determine their shortcomings and encourages
appropriate solutions
🢝 -now used widely as an organizational framework in Europe
🢝 -provides a basis for both national and regional quality awards
🢝 -the prominent theme of the model is customer satisfaction,
employee satisfaction and excellent business results in society
TQM MODEL: EUROPEAN FOUNDATION
FOR QUALITY MANAGEMENT (EFQM)
TQM MODEL: INTERNATIONAL ORGANIZATION
FOR STANDARDIZATION (ISO)
an independent, non-governmental international organization

membership of 162 national standards bodies.

member-experts share knowledge and develop voluntary,
consensus-based, market-relevant International Standards
standards developed support innovation and provide solutions to
global challenges.
has published more than 21,000 International Standards across
industries (from technology, food safety, agriculture, to
healthcare)
TQM MODEL: ISO 9001
published in 1987; regularly updated- the latest version is ISO 9001:2015
it incorporates elements such as a stronger focus on stakeholders and the wider
context of an organization to fit the evolving needs of modern business
a standard that sets out the requirements for a quality management system
it helps businesses and organization be more efficient and improve customer
satisfaction.
it does not specify what the objectives relating to “ quality ” or “ meeting customer
needs ” should be
it requires organizations to define the objectives themselves and continually
improve their processes in order to reach their objectives/goals
TQM MODEL: ISO 9001
ISO 9001 Model of Process Based Quality Management System
THE OAKLAND MODEL OF TQM
Core of the Model: Customer
(both externally and
internally) - supplier interfaces

Management necessities
(teams, tools and system) are
represented in the
surrounding triangle;

Outer shell consists of culture,

communication and
commitment
ROLE OF MANAGERS IN TQM

FACILITATOR ROLE MODEL

MANAGERS
TRAINER ADVOCATE
(program benefits)
ROLE OF EMPLOYEES IN TQM

PARTICIPANT CONTRIBUTOR
(program) (ideas/solutions)
EMPLOYEES
LEARNER RESPONDENT
(customer &
(customer needs)
products)
CASE STUDY ON TQM:
PHILIPPINE SETTING- MERALCO
MERALCO ELECTRIC COMPANY
COMPANY PROFILE
🢝 is the largest private sector electric distribution utility company in the Philippines
🢝 1903- established as Manila Electric Railroad and Light Company to provide electric light and
power and an electric street railway system to Manila and its suburbs; 117 years of existence
🢝 Services 36 cities and 75 municipalities
🢝 Has a franchise area of over 9,685 km2 that includes industrial, commercial, and population
centers.
🢝 has recorded a market capitalization of PhP428.3 billion (US$8.1 billion) by year-end 2018

Company Mission, Vision, Values & Principles

Mission & Vision
Our Mission is to provide our customers the best value in energy, products and services.
Our Vision is to be a world-class company and the service provider of choice.
CASE STUDY ON TQM:
PHILIPPINE SETTING- MERALCO
MERALCO ELECTRIC COMPANY
TQM Application- 1990
● In 1990, the company embarked on a 10-year transformation program based on
the principles of re-engineering and TQM (de la Llana, 1998).
● Internally, they referred to the program as “Total Quality”
● Target: to ensure power supply adequacy, increase market base, and promote
diversity, operational efficiency, and people development
● Implementation plan: the management changed its policies to adapt the TQM
values of integrity, quality, productivity, team work, and malasakit (concern for
others).
● Behaviors aligned with TQM values were encouraged among employees and
were factored in for their performance management system
● Communication lines were opened through monthly general assemblies, round
table discussions & interviews
CASE STUDY ON TQM:
PHILIPPINE SETTING- MERALCO
MERALCO ELECTRIC COMPANY
TQM Application- 1990
● Work Improvement Teams were formed by Management
○ at one point, this comprised 31% of the target employee population
○ Teams were picked, oriented, and trained for the assigned tasks
○ Teams were given the autonomy in improving their functions and ownership
of their processes- the conditions proved to be helpful and were critical in
successfully implementing successful work teams
● Other Enablers (Sexton, 1994):
○ a set of shared values and vision
○ shared benefits
○ managerial faith in employees
○ an organization which supported risk taking
CASE STUDY ON TQM:
PHILIPPINE SETTING- MERALCO
MERALCO ELECTRIC COMPANY
TQM Application- 1995 Meralco’s Historical Highlight
More than ever, much of Meralco's management has been directed towards enabling the
organization to react nimbly to the changing structures and environments in which it
operates, despite its continuing status as one of the oldest and biggest Philippine
companies.
Drives have gone under different names and slogans, e.g, TQM, re-engineering,
Meralco Transformation Program, etc., but they share certain common emphases:
customer satisfaction, world-class efficiency and productivity, performance-driven
rewards, good corporate citizenship, transparent good governance, and process,
organizational and human resource development towards these values.
 CASE STUDY ON TQM:
PHILIPPINE SETTING- MERALCO
MERALCO ELECTRIC COMPANY
TQM Application- Corporate Values: Part of their corporate values is Customer
Service
Customer Service: Meralco believes that their customers are their reason for being. They are passionate about
knowing and understanding their customers, responding to their needs, and ensuring total customer satisfaction
and loyalty.

Principles of Service: Meralco’s customers are everything to them. Therefore, customers should always be
treated with dignity. The company must be fully responsive to their needs. Meralco has the responsibility to:
● Provide the customers with the highest quality products and services, consistent with their requirements
and with international standards;
● Treat the customers fairly, courteously and with integrity in all of its business transactions;
● Act promptly on their immediate concerns and be receptive to their long-term needs and interests; and
● Make every effort to ensure that the health, safety and general well-being of its customers are enhanced
by its products and services.
 CASE STUDY ON TQM:
PHILIPPINE SETTING- MERALCO
MERALCO ELECTRIC COMPANY
TQM Application- Corporate Values: Part of their corporate values is Malasakit
Malasakit: Meralco’s employees identify themselves with the company; giving total dedication and commitment
to it, exemplified by performing their very best in every endeavor; with great concern for the company, its
resources and its stakeholders: customers, employees, investors and the communities they serve.

Principles of Community
The Community is Meralco’s business environment and the society they serve. The company has the
responsibility to:
● Uphold and maintain at all times the highest standards of business ethics;
● Fulfill with dedication and commitment their social responsibilities;
● Undertake activities that support and contribute to the economic and social development of the country;
● Employ proactive measures and cooperate with the government and non-government institutions in
activities to serve society towards a collective benefit.
REFERENCES

Pratt, M. Rouse, M. Shiao, D. 2019. Total Quality Management https://searchcio.techtarget.com/definition/Total-

Quality-Management

Hashmi, K. Introduction And Implementation Of Total Quality Management.

https://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-and-implementation-total-quality-
management-tqm/

Westcott, R. 2013. Journal. The Certified Manager of Quality/Organizational Excellence Handbook, ASQ Quality
Press.https://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-and-implementation-total-
quality-management-tqm/

The 8 crucial TQM elements for TQM's success - You must know. (2020, April 30). EDUCBA.
https://www.educba.com/the-8-crucial-tqm-elements/

Article: Understanding the most important elements of TQM. (2017, February 17). SixSigma.us.
https://www.6sigma.us/six-sigma-articles/understanding-most-important-elements-of-tqm/
REFERENCES
Garg, K. K., Mishra, P., & Sehrawat, S. (2013). The Quest for Excellence: A Case Study of TQM Practice in Tata
Steel. Opinion: International Journal of Management, 3(1), 24-29.

Padhi, N. (2012, September 5). The eight elements of TQM. iSixSigma.

https://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/

Shiao, D., & Pratt, M. K. (2019, August 26). What is total quality management and why is it important? SearchCIO.
https://searchcio.techtarget.com/definition/Total-Quality-Management

Thomson, J. (2019, March 4). Key elements of total quality management. The Good Men Project.
https://goodmenproject.com/business-ethics-2/key-elements-of-total-quality-management/

Total quality management: Meaning, principal, importance and concept. (2019, September 20). Toppr-guides.
https://www.toppr.com/guides/business-management-and-entrepreneurship/recent-trends-in-management/total-
quality-management/

Varma, G. R., & Ravi, J. (2017). Total Quality Management in Nestle. International Journal of research in
management Studies, 2(6), 9-15.