Total Quality Management

Dr. Atishwar Pandaram

Sch. of Management and Public
Administration

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 Cost Operations Strategy Time Line

Quality

Delivery

Flexibility

Service
What is next ?
Time line 1950s 1960s 1970s 1980s 1990s 2000s

OM Cost Value
paradigm Minimization | Maximization

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Definition of Quality:
Quality is a predictable degree of uniformity and dependability,
at low cost and suitable to the market (Deming)
Quality is fitness for use (Juran)
Quality is the conformance to requirements (Crosby)
Quality is the (minimum) loss imparted by a product to
society from the time the product is shipped. (Taguchi)
Quality is, in its essence, a way of managing the
organization (Feigenbaum)
Quality is correcting and preventing loss, not living with loss
(Hoshin)

ISO definition: Quality is the totality of characteristics of an

entity that bear on its ability to satisfy stated and implied
needs.
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 Defining Quality

Perfection Fast delivery

Providing a good, usable product
Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers
Total customer service and satisfaction
Compliance with policies and procedures
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 Why Quality Management
1. Question of survival in an intense competitive environment
- Today LPG (Liberalized, Privatized and
Globalized) system has made the global market a single
one allowing almost free exchange of goods and services.
Suppliers not only face competition in the local
market but also from the international market.
The emphasis is on delighting and winning over
customers. Just conforming to specification and
satisfying customers is no more enough.
2. Increase customer consciousness:
Customers are more educated now. The needs of
customers also keep on changing. Unless the
suppliers are capable of satisfying the changed needs,
they loose the customers and ultimately the market
share.
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3. Need for earning profit instead of making profit:

Cost price + profit = Sales price (SP)

In the buyer dominated market, this equation is no more
valid. The supplier organization can only make profit by
controlling the cost. The components of the cost price are
the material cost, labour cost and energy cost, etc. which
are very often difficult to control. One thing that can be
controlled is Quality cost.

Quality cost- cost incurred by organization by for making

non-conforming products. The cost of repair, reprocessing,
and scraping non-conforming products. To reduce quality
cost, the objective of the supplier should be to make things
right first time and every time - a TQM approach.

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 Why Quality
Quality Up

Processing
Image up
Time down
Service Rework &
cost down Inventory
Scrap cost
Down [assume-goods sold]
Sales down
Volume up Complaint &
Inspection &
test cost down Warranty cost
down
Price(?)
Scale Capital
Competition Productivity
Economies cost down-?
down Up---meaning?
up

Revenue Operation
up Cost down
Profits up 7
Deming Chain Reaction

Improve quality

Costs decrease

Productivity improves

Increase market share with better

quality and lower prices

Stay in business

Provide jobs and more jobs 8

 Dimensions of Quality
A: For Manufacturing Products
Performance: Products primary operating characteristics
Features: Secondary characteristics that supplement the
products basic functioning
Reliability: The probability of a products survival over
a specified period of time under stated conditions
of use
Durability: The amount of use one gets from a product
before it physically deteriorates or until
replacement is made.
Serviceability: The ability to repair a product quickly
and easily
Aesthetics: How a product looks, feels, tastes, or smells

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B: For a Service:
Time: For much much time must a customer wait?
Timeliness: Will a service be performed when promised?
Completeness: Are all items in an order included?
Courtesy: Do front-line employees greet each customer
cheerfully and politely.
Consistency: Are services delivered in the same fashion
to every customer.
Accessibility and convenience: Is the service easy to
obtain?
Accuracy: Are the services performed right the first time?
Responsiveness: Can the service personnel respond
quickly and resolve unexpected
problem?

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 Evolution of Quality
Time Events
Prior to Quality is an art
20th century Demand overcome potential production
An era of workmanship
F. Taylor, 1900s Scientific approach to management resulting in the
greater need for standardization, inspection and
supervision.
Shewart, 1930s Statistical beginning and study of quality control
Late 1930s Quality standard and approaches are introduced in
France and Japan. Beginning of SQC, reliability etc.
1942 Seminal work by Deming at the ministry of war in
USA, concept of acceptance sampling,
1944 Dodge and Deming carried out seminal work on
acceptance sampling
1945 Founding of Japan Standards Association
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1946 Founding of the ASQC (American Society for Quality
Control)
1950 Visit of Deming in Japan at the invitation of K. Ishikawa
1951 Quality assurance increasingly acceptable
1954 TQC in Japan (Feigenbaum and Juran), book
published in 1956
1957 Founding of European Organization for the control of
quality (France, Germany, Italy, Holland, England)
1961 The Martin Co. in USA introduced the zero-defect
approach. Quality motivation started in USA
1962 Quality Circles are started in Japan
1964 Ishikawa publishes a book on Quality Management
1970 Ishikawa publishes on basics of Quality circle, concepts
of Total quality is affirmed and devised in Japanese
industries.
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1970 to JIT and quality become crucial for competitiveness. A
1980 large number of US and European corporations are
beginning to appreciate the advance of Japans
industries.
1980+ Facing the challenges of quality management
Growth of economic based quality control
1990+ The management of quality has become a
necessity that is recognized at all levels of
management.
Increasing importance is given to off-line quality
management for the design of robust
manufacturing processes and products,
services.
The growth of process optimization.

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Total Quality Management, usually called TQM, aspects of
which are also called Continuous Improvement,
Reengineering, Customer Focused Management, High
Performance Administration, is a philosophy of management
which considers the pursuit of quality in the product or
service provided by the organization as its central and
overarching strategy.

TQM is the latest paradigm of management theory and can

be appropriately considered as Fourth Generation
Management.

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TQM categorization:

1.Customer focus

2. Total participation and

teamwork

3. Continuous
improvement
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Thank you very much

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