CHAPTER 1

INTRODUCTION TO TOTAL
QUALITY MANAGEMENT
Group 4 First
Reporter
 PRAYER
Heavenly Father,

As we gather together as a group to present our report, we

ask for Your guidance and strength. Please bless our efforts
and help us convey our message clearly and effectively.
Grant us the confidence to speak with clarity and the
wisdom to answer any questions with grace. May our
presentation be a reflection of our hard work and
dedication, and may it bring positive results for all involved.

In Your name, we pray. Amen.

 CONTENT
INTRODUCTION OF TQM
A. Defining Quality
B. Defining TQM
C. Shifting from Traditional Management to TQM
D. TQM and Reengineering
"Have you ever received a
product or service that you were
really happy with because it met
all your expectations? What was
it, and what made it so great?"
TOTAL QUALITY MANAGEMENT (TQM)

Total quality Management (TQM) is not a

fresh idea. The approaches advocated by
Deming, Juran, Crosby, and others have long
been used by well effective manager.

Quality is currently everyone’s task, not just

the inspection department. People are
anticipated to seriously weigh up their jobs
and make the first move to improve their part
of the process.

01
DEFINING QUALITY
Quality is a lot more than the
nonexistence of defects which allow
companies to meet customers
expectations.

Quality will let companies to re-

establish pride and loyalty in their
organizations.

01
 FIVE PRINCIPAL APPROACHES TO DEFINING
QUALITY NAMELY BY HARVARD PROFESSOR
DAVID GARIN

1. Transcendent - Most people would agree

that the Mona Lisa or Michaelangelo’s David
are works of art which represent quality
because people travel from around the
world to view them.
2. Product-based - Quality is oberved as a
quantifiable or measurable characteristic or
APPROACHES attribute.
TO QUALITY
DEFINITION
3. User-based - This definition is founded on the idea that
quality is an individual issue and products that best please
their preferences (perceived quality) are those with the
highest quality.

4. Manufacturing-based - it focuses mainly on engineering

and manufacturing practices and uses the universal
definition of conformance requirements.

5. Value-based - It is defined using cost and prices as well

as the number of attributes.
Quality Types - is a
meeting and exceeding
customer expectations
at a price that he is
willing to pay to
possess the product or
services.
 THREE TYPES OF QUALITY
Quality Design - it is all about characteristics that the product or service
must minimally have to satisfy the requirements of the customer based
on market research.

Quality of Conformance - it is basically meeting the standards or user-

based characteristics defined in the design phase after the product is
manufactured or while the service is delivered.

Quality of Performance - it is how sound the product or service

performes when put to use.
Quality levels - it is
focused in organization
must evaluate at three
levels namely
organizations process
and individual.
ORGANIZATIONAL LEVEL

1. Products or services that meet customer expectations.

2. Products or services that do not meet customer expectations.

3. Products or services that are needed by the customers but they

do not receive.

4. Products or services that are not needed by the customers but

they do not receive.
PROCESS LEVEL
The following issues may help define quality at this level:

1. Products or services that are most important to external

customer.

2. Processes that produce those products or services.

3. The key inputs to the process.

4. Processes that have the most major effect on the

organizations customers-drive performance standards.

5. The internal customers and their needs.

PERFORMER/JOB/TASK DESIGN LEVEL

Nearly all people desire to do high-

quality work, but often times they are
limited by system that do not support
it. Individuals are one of the vital
components of human performance
system. Developing standards to
measure each individuals key output is
a necessity to define individual quality.
THREE ISSUES HAVE TO BE ANSWERED FOR EACH
OUTPUT OF THE INDIVIDUAL TASKS IN ORDER TO
DEVELOP INDIVIDUAL QUALITIES WHICH ARE:

1. The requirements of both internal and external

customers
2. The manner of measuring the requirements
3. The specific standards for each measure
UNDER THE HUMAN PERFORMANCE SYSTEM, THE
QUALITY OF EACH INDIVIDUAL WORK OR
PERFORMANCE IS SHAPED BY THESE FACTORS:

1. The input an individual receives which consists of how clear

the performance expectations are, the reasoning of the
work procedures, the sufficiency of resources, the
appropriateness of skills and knowledge and how clear the
cues that prompt performance
2. The positive/negative results for performing as desired/not
desired.
3. The feedback an individual obtains such as the nature of
the information given, when and how frequent it is given and
the manner in which it is provided.
4. An individual's physical, mental and emotional capacity
QUALITY PARADIGM
QUALITY PARADIGM

1. CUSTOM-CRAFT PARADIGM - The product or services

and performance should be exactly as what customer
demands. Each product unit is design and built exactly
the way the customers wants it. It requires skill
craftperson, basic hand tools, and demand for unique
product.
QUALITY PARADIGM

2. MASS PRODUCTION AND SORTING

PARADIGM - focuses on production rate without
direct involvement of the customer. Products are
designed and built based on how the customer
defined the products.
QUALITY PARADIGM

3. STATISTICAL QUALITY CONTROL PARADIGM -

This paradigm is comparable to the mass production
and sorting paradigm except that more emphasis is
given on production process.
QUALITY PARADIGM

4. TOTAL QUALITY MANAGEMENT PARADIGM -

This paradigm focuses to mass production and
statistical methods. Possible customers participate
in product definition, creation and performance
evaluation stages to inform the producer what to
design and build.
QUALITY PARADIGM

5. TECHNO-CRAFT PARADIGM - This paradigm is

the socio-technical complement to the customer-
craft paradigm with the intention of reducing delivery
time.
COST OF QUALITY

Is a method that permits an organization to

decide on the level to which is resources are
used for activities that avoid poor quality,
that assess the quality of the organization's
product's or services, and that result from
internal and external failures.
RELATED ACTIVITIES THAT INCUR COSTS

1. Prevention Costs ~ these are incurred to prevent

or avoid failure problems, prevention activities
lead to reduce of failure and appraisal costs.

a. Product or Service Requirements

b. Quality Planning
c. Quality Assurance
d. Training
RELATED ACTIVITIES THAT INCUR COSTS

2. Appraisal Costs - These costs are associated with

measuring and monitoring activities related to
quality standards and performance requirements.

a. Verification
b. Quality audits
c. Supplier Rating Services
RELATED ACTIVITIES THAT INCUR COSTS

3. Internal failure Costs ~ These costs are acquired

to treat defects revealed earlier when the product
or service is delivered to the customer.

a. Waste
b. Scrap.
c. Rework or Rectification
d. Failure Analysis
RELATED ACTIVITIES THAT INCUR COSTS

4. External Failure Costs ~ These are costs obtained

to treat defects exposed by customers.

a. Repairs and Serving

b. Warranty Claims
c. Complaints
d. Returns
 DEFINING TOTAL QUALITY
MANAGEMENT

Total Quality Management (TQM) is an all-inclusive and well thought-out means to

organizational management.

TQM combines basic management techniques, current improvement efforts and

technical tools in a disciplined approach focused on continuous process improvement.

Essential to the TQM approach is the transformation in management philosophy

regarding the “responsibility for quality.”
THE PRIMARY ELEMENTS
OF TQM
1. Foundation - the entire process of total
quality management is built on a strong
foundation of ethics, integrity and trust.
2. Building Brick - bricks are placed on a
strong foundation to reach the roof of
recognition, leadership, teamwork,and training
are the building bricks of TQM.
3. Binding mortar - binding mortar binds all
the elements together.
4. Roof - includes recognition which brings
greater internal customer satisfaction.
 CORE CONCEPTS OF
TQM
1.Customer satisfaction
2.Internal Customer Satisfaction
3. All work is process
4. Measurement
5. Synergy in teamwork
6. People make quality
7. Continuous improvement
8.Prevention
SHIFTING FROM
TRADITIONAL
MANAGEMENT TO TQM

Traditional management styles are all essentially

management by results.

Quality-focused management is predicated instead on the

quality of the product and the satisfaction of the customer.

Changing from a traditional style to a quality-focused style

of management requires re-education of managers to
become leaders instead of bosses as well as clear
communication of the company's quality vision.
TOTAL QUALITY OF MANAGEMENT
HAS CHANGES

1.Traditional way of management focused on internet activities.

2. Traditionally people thought bad products are due to the workers

who do not perform their job properly.

3.Total Quality Management is an organization wide movement. All

the organization has to be in agreement to apply TQM principles.

4. TQM believes in quality assurance rather than checking.

5. Unlike in traditional management style, total quality management

makes decisions on facts and figures.

6. TQM depends on cyclic thinking. Also it is continuous.

 TQM AND REENGINEERING

Reengineering sometimes called Business Process

Reengineering (BPR), involves a complete rethinking and
transformation of key of business processes.

Reengineering basically means starting over-throwing

out all the thinking of how work was done and deciding
how it can be done now.

It is very important to understand that reengineering is

not a disconnect discipline. It is, in fact, a subset of TQM
SIMILARITY AND DIFFERENCE BETWEEN REENGINEERING AND TQM
Some people have said that both TQM and
Reengineering are the same , while others
have argued that they are incompatible.
Michael Hammer argues that the concepts
are compatible and actually complement
each other. Both concepts have the same
focus - customer satisfaction.
 FIGURE 3 HOW TQM AND
REENGINEERING FIT TOGETHER
REENGINEERING VS. TQM
THANK'S FOR GROUP 4

LISTENING!