TQM, Lecture-2+3

Total Quality Management
Lecture: 2+3
By Engr. Shakeel Ahamd
Total Quality Management
Total: Everyone associated with the company is involved
in CONTINUOUS IMPROVEMENT (including its customers &
suppliers if feasible)
Quality: Customer’s expressed and implied needs and

requirements are met fully.
Management: Executives are fully committed.

TQM is a system approach for the continuous improvement of
all organizational processes through total participation of all
employees, resulting in high quality products and services to
attain customer satisfaction.
Who Determines Quality
The Customer:
“Any one who receive or is affected by the product, service, or process.”
Customers’ Needs:
Expected Needs:
Expected needs are typically what one gets by just asking customers what they
want.
Stated Needs:
Stated needs are the obvious / compulsory requirements. For example, if meal is
served hot, customers hardly notice it. If it's cold or too hot, dissatisfaction
occurs. Expected requirements must be fulfilled.
Latent Needs
– Beyond the customer's expectations.
– If provided , customer would be excited
– If not ,they would not affected
TQM Evaluation
QUALITY CONTROL VS QUALITY
ASSURANCE
Quality Control Quality Assurance
 Product  Process
 Reactive  Proactive
 Line function  Staff function
 Find Defects  Prevent defects
Principles of TQM
1. Customer-Focused Organisation
2. Leadership
3. Involvement of People
4. Process Approach
5. System Approach to Management
6. Continual Improvement
7. Factual Approach to Decision Making and
8. Mutually Beneficial Supplier Relationships.
Customer-Focused Organization
Organizations depend on their customers and therefore should understand
current and future needs of the customer, meet customer requirements and
strive to exceed customer expectations“
Steps in application of this principle are:

1. Understand customer needs and expectations for products, delivery, price,
dependability, etc.
2. Ensure a balanced approach among customers and other stake holders
(owners, people, suppliers, local communities and society at large) needs
and expectations.
3. Communicate these needs and expectations throughout the organization.
4. Measure customer satisfaction & act on results, and
5. Manage customer relationships.
Leadership
Leaders establish unity of purpose and direction of the organization.
They should create and maintain the internal environment in which
people can become fully involved in achieving the organization's
objectives.“
1. Be proactive and lead by example.

2. Understand and respond to changes in the external environment.
3. Consider the needs of all stake holders including customers, owners,
people, suppliers, local communities and society at large.
4. Establish a clear vision of the organisation's future.
Involvement of People
People at all levels are the essence of an organization and their full involvement
enables their abilities to be used for the organization's benefit".
 Steps in application of this principle are:

1. Accept ownership and responsibility to solve problems.
2. Actively seek opportunities to make improvements, and enhance
competencies, knowledge and experience.
3. Freely share knowledge & experience in teams.
4. Focus on the creation of value for customers.
5. Be innovative in furthering the organization's objectives.
6. Improve the way of representing the organization to customers, local
communities and society at large.
7. Help people derive satisfaction from their work, and
8. Make people enthusiastic and proud to be part of the organization.
Process Approach
A desired result is achieved more efficiently when related resources and activities are
managed as a process."
Define the process to achieve the desired result.

1. Identify and measure the inputs and outputs of the process.
2. Identify the interfaces of the process with the functions of the organisation.
3. Evaluate possible risks, consequences and impacts of processes on customers,
suppliers and other stake holders of the process.
4. Establish clear responsibility, authority, and accountability for managing the process.
5. Identify internal and external customers, suppliers and other stake holders of the
process, and
6. When designing processes, consider process steps, activities, flows, control
measures, training needs, equipment, methods, information, materials and other
resources to achieve the desired result.
System Approach to Management
Identifying, understanding and managing a system of interrelated processes
for a given objective improve the organization's effectiveness and efficiency."
1. Define the system by identifying or developing the processes that affect a

given objective.
2. Structure the system to achieve the objective in the most efficient way.
3. Understand the interdependencies among the processes of the system.
4. Continually improve the system through measurement and evaluation, and
5. Estimate the resource requirements and establish resource constraints
prior to action.
Continual Improvement
Continual improvement should be a permanent objective of the organisation."

1. Make continual improvement of products, processes and systems an objective for every
individual in the organization.
2. Apply the basic improvement concepts of incremental improvement and breakthrough
improvement.
3. Use periodic assessments against established criteria of excellence to identify areas for
potential improvement.
4. Continually improve the efficiency and effectiveness of all processes.
5. Promote prevention based activities.
6. Provide every member of the organisation with appropriate education and training, on
the methods and tools of continual improvement such as the Plan-Do-Check-Act cycle,
problem solving, process re-engineering, and process innovation.
7. Establish measures and goals to guide and track improvements, and
8. Recognise improvements.
Factual Approach to Decision Making
Effective decisions are based on the analysis of data and information."

1. Take measurements and collect data and information relevant to the
objective.
2. Ensure that the data and information are sufficiently accurate,
reliable and accessible.
3. Analyse the data and information using valid methods.
4. Understand the value of appropriate statistical techniques, and
5. Make decisions and take action based on the results of logical
analysis balanced with experience and intuition.
Mutually Beneficial Supplier
Relationships
 An organization and its suppliers are interdependent, and a mutually
beneficial relationship enhances the ability of both to create value.“
 Steps in application of this principle are:
1. Identify and select key suppliers.
2. Establish supplier relationships that balance short-term gains with
long-term considerations for the organisation and society at large.
3. Create clear and open communications.
4. Initiate joint development and improvement of products and
processes.
5. Jointly establish a clear understanding of customers' needs.
6. Share information and future plans, and Recognise supplier
improvements and achievements
EIGHT DIMENSIONS
OF PRODUCT QUALITY
Six sigma and Quality Management
Six Sigma is a business management strategy which aims at
improving the quality of processes by minimizing and eventually
removing the errors and variations. six Sigma ensures superior quality
of products by removing the defects in the processes and systems. Six
sigma is a process which helps in improving the overall processes and
systems by identifying and eventually removing the hurdles which
might stop the organization to reach the levels of perfection.
According to sigma, any sort of challenge which comes across in an
organization’s processes is considered to be a defect and needs to be
eliminated. Moreover any process which does not lead to customer
satisfaction is referred to as a defect and has to be eliminated from the
system to ensure superior quality of products and services.
Six sigma Methods
 Following are the two Six Sigma methods:
 DMAIC
 DMADV
DMAIC focuses on improving existing business practices. DMADV, on
the other hand focuses on creating new strategies and policies.
 DMAIC has Five Phases

D - Define the Problem. In the first phase, various problems which
need to be addressed to are clearly defined. Feedbacks are taken from
customers as to what they feel about a particular product or service.
Feedbacks are carefully monitored to understand problem areas and
their root causes.
M - Measure and find out the key points of the current process.
Once the problem is identified, employees collect relevant data which
would give an insight into current processes.
A - Analyze the data. The information collected in the
second stage is thoroughly verified. The root cause of
the defects are carefully studied and investigated as
to find out how they are affecting the entire process.
I - Improve the current processes based on the
research and analysis done in the previous stage.
Efforts are made to create new projects which would
ensure superior quality.
C - Control the processes so that they do not lead to
defects.
Six sigma Methods
DMADV Method
D - Design strategies and processes which ensure hundred
percent customer satisfaction.
M - Measure and identify parameters that are important for
quality.
A - Analyze and develop high level alternatives to ensure
superior quality.
D - Design details and processes.
V - Verify various processes and finally implement the same.
END

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Total Quality Management

Quality: Customer’s expressed and implied needs and

Management: Executives are fully committed.

Steps in application of this principle are:

Steps in application of this principle are:

1. Be proactive and lead by example.

 Steps in application of this principle are:

Define the process to achieve the desired result.

Steps in application of this principle are:

1. Define the system by identifying or developing the processes that affect a

Steps in application of this principle are:

Steps in application of this principle are:

 DMAIC has Five Phases

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