UNIT-I

INTRODUCTION TO TQM

INTRODUCTION:

➢ A core definition of total quality management (TQM) describes a management approach to long–term
success through customer satisfaction. In a TQM effort, all members of an organization participate in
improving processes, products, services, and the culture in which they work.

➢ Total Quality Management TQM, also known as total productive maintenance, describes a management
approach to long-term success through customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products, services, and the culture in which they work.

➢ Total quality management (TQM) consists of organization-wide efforts to install and make permanent a
climate in which an organization continuously improves its ability to deliver high-quality products and
services to customers. While there is no widely agreed-upon approach, TQM efforts typically draw
heavily on the previously developed tools and techniques of quality control. TQM enjoyed widespread
attention during the late 1980s and early 1990s before being overshadowed by ISO 9000, Lean
manufacturing, and Six Sigma.

TQM DEFINITION:
Total: Made up of the whole Quality: Degree of excellence a product or service provides
Management: Act, Art or Manner of planning, controlling, directing…
Therefore, TQM is the art of managing the whole to achieve excellence.

Total Quality Management is defined as a strategy for improving business performance through the
commitment and involvement of all employees to fully satisfying agreed customer requirements, at the
optimum overall costs, through the continuous improvement of the products and services, business processes
and people involved.
The concept of Total Quality Management can be expressed as “Achieving success through delighting the
customers”. Customers here may include the internal user, the external customer or end-user, together with
other stakeholders like shareholders, employees and suppliers.
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 is the integration of all functions and processes within an organization in order to achieve continuous
improvement of the quality of goods and services. The goal is customer satisfaction.
“No doubt, humans are always deficient”. ------ (Al-Quran)

FEATURES OF TQM:
1. Customer-oriented: TQM focuses on customer satisfaction through creation of better-quality products
and services at lower costs.
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2. Employee involvement and empowerment: Teams focus on quality improvement projects and
employees are empowered to serve customers well.
3. Organization-wide: TQM involves every department or division.
4. Continuous improvement: Quality improvement is a never-ending journey.
5. Strategic focus: Quality is viewed as a strategic, competitive weapon.
6. Process management: TQM adopts the concept of prevention through process management.
7. Change in corporate culture: TQM involves the creation of a work culture that is conducive to quality
improvement.

THE CONCEPT OF TQM:

Total quality management is based on a number of ideas. It means thinking about quality in terms of all
functions of the enterprise, a start-to-finish process that integrates interrelated functions at all levels. It is a
systems approach that considers every interaction between the various elements of the organization. Thus,
the overall effectiveness of the system is higher than the sum of the individual outputs from the subsystems.
The sub- systems include all the organizational functions in the life cycle of a product, such as:
✓ Design ✓ Production ✓ Field service.
✓ Planning ✓ Distribution

The management subsystems also require integration, including:

✓ Strategy with a customer focus,
✓ The tools of quality, and
✓ Employee involvement (the linking process that integrates the whole).

PRINCIPLES OF TQM/TQM BASIC CONCEPTS:

Total quality management can be summarized as a management system for a customer focused Organization
that involves all employees in continual improvement. It uses strategy, data, and effective communications
to integrate the quality discipline into the culture and activities of the organization. Many of these concepts
are present in modern Quality Management Systems, the successor to TQM. Here are the 8 principles of
total quality management:
1. Customer-focused: 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, upgrading computers or software, or buying new measuring tools—the customer determines
whether the efforts were worthwhile.
2. Total employee involvement: 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 management has provided the proper environment. High-performance work
systems integrate continuous improvement efforts with normal business operations. Self-managed work
teams are one form of empowerment.

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3. 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 (again, either 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.
4. 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.
Micro-processes add up to larger processes, and all processes aggregate into the business processes required
for defining and implementing strategy. Everyone must understand the vision, mission, and guiding
principles as well as the quality policies, objectives, and critical processes of the organization. Business
performance must be monitored and communicated continuously.
An integrated business system may be modeled after the Baldrige National Quality Program criteria and/or
incorporate the ISO 9000 standards. Every organization has a unique work culture, and it is virtually
impossible to achieve excellence in its products and services unless a good quality culture has been fostered.
Thus, an integrated system connects business improvement elements in an attempt to continually improve
and exceed the expectations of customers, employees, and other stakeholders.
5. Strategic and systematic approach: 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.
6. Continual improvement: A major thrust 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.
7. 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.
8. Communications: During times of organizational change, as well as part of day-to-day operation,
effective communications play a large part in maintaining morale and in motivating employees at all levels.
Communications involve strategies, method, and timeliness.

BENEFITS OF TQM: TQM has numerous benefits. It enables organizations to:

• Attain higher profitability and increased market share
• Improve customer satisfaction
• Improve organizational productivity
• Improve employee morale and job satisfaction
• Create a positive work culture
• Undertake systematic problem solving and decision making through project teams
• Improve teamwork
• Create a climate conducive to continuous improvement
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QUALITY AND BUSINESS PERFORMANCE
“The application of a quality management system in managing a process to achieve maximum customer
satisfaction at the lowest overall cost to the organization while continuing to improve the process.”
Quality management has four parts: quality planning, quality assurance (defect prevention), quality control
(which includes product inspection and other elements, such as competence), and quality improvement.

ATTITUDE AND INVOLVEMENT OF TOP MANAGEMENT

Top management must demonstrate attitude to balancing the following two dimensions.
• They must balance the need for structural dimension (e.g., hierarchy, budget, plans, controls, procedures)
• Also, the behavioral or personnel dimension.
The commitment and involvement of management need to be demonstrated and visible
TQM is the way of managing for the future, and is far wider in its application than just assuring product or
service quality – it is a way of managing people and business processes to ensure complete customer
satisfaction at every stage, internally and externally.
TQM, combined with effective leadership, results in an organization doing the right things right, first time.
The core of TQM is the customer-supplier interface, both externally and internally, and at each interface lays
a number of processes.
This core must be surrounded by commitment to quality, communication of the quality message, and
recognition of the need to change the culture of the organization to create total quality.
These are the foundations of TQM, and they are supported by the key management functions of people,
processes and systems in the organization.

COMMUNICATION:
Communication is defined as the exchange of information and understanding between two or more persons
or groups.
• Communication is inextricably linked in the quality process, yet some executives find it difficult. to
tell others about the plan in a way that will be understood.
• Constant communication and employees buy-in are crucial to a successful TQM initiative.
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Communication Model:

The vehicles for communicating about quality are selected components of TQM system:
✓ Training and development for both managers and employees.
✓ Participation at all levels in establishing benchmarks and measures of process quality.
✓ Empowerment of employees.
✓ Quality assurance in all organization processes.
✓ Human resource management system that facilitates contributions at all levels.

CULTURE:
• Culture is a pattern of beliefs and values that provides the members of an organization’s rules of behavior
or accepted norms for conducting operations.
• It is philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes, and norms that knit an
organization together and are shared by the employees.
• Corporate culture is a company’s value system and its collection of guiding principles
• Cultural values often seen in mission and vision statements
• Culture reflected by management policies and actions
A quality culture is an organizational value system that results in an environment that is conducive to the
establishment and continual improvement of Quality.

Levels of Culture:
1. Artifacts: Aspects of an organization’s culture that you see, hear, and feel.
2. Beliefs: The understandings of how objects and ideas relate to each other.
3. Values: The stable, long-lasting beliefs about what is important.
4. Assumptions: The taken-for-granted notions of how something should be in an organization.

Culture changes for TQM:

QUALITY ELEMENT OLD CULTURE TQM CULTURE
Definition Product oriented Customer oriented
Priorities Second to service and cost Equal to service and cost
Decisions Short term Long term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem Solving Managers Teams
Procurement Price Life cycle costs, Partnership
Manager’s Role Plan, assign, control, enforce, Delegate, coach,
facilitate, mentor
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MANAGEMENT SYSTEM:
Management System refers to how decisions are made, communicated, and carried out at all levels;
mechanisms for leadership development, self-examination, and improvement. Effectiveness of leadership
system depends in part on its organizational structure.
Quality management system is vehicles for change and should be designed to integrate all areas, not only the
quality assurance department. They are directed toward achievement and commitment to purpose through
four universal processes:
1. The specialization of task responsibilities through structure.
2. The provision of information systems that enable employees to know what they need to do in order to
achieve goals.
3. The necessary achievement to result through action plans and projects.
4. Control through the establishment of benchmarks, standards, and feedback.

QUALITY:
QUALITY– Quality is defined as the fitness for use / purpose at the most economical level. Quality can be
quantified as Q = P/E where, Q-quality, P-performance, E- expectations.
Deming --- Quality is a predictable degree of uniformity and dependability, at low cost and suited to the
market.
Juran --- Quality is fitness for use.
Crosby --- Quality is conformance to requirements.
Need for quality ---> As market has become much more competitive, quality has become a key ingredient
for success in today’s business. Quality has become the prime focus of business attention because of the
impact it has on sustained performance and customer satisfaction.

Quantification of quality: Q= P / E
P = Performance E = Expectations Q = Quality

DIMENSION OF QUALITY: Quality has 2 dimensions. These dimensions are product and service quality.
Dimensions of product quality:
Performance: primary product characteristics, e.g. picture brightness in TV.
Features: secondary characteristics, added features, e.g. remote control, picture-in-picture.
Usability: ease of use with minimum training.
Conformance: meeting specifications, industry standards, (E.g. ISI specs. emission norms).
Reliability: consistency of performance over a specified time period under specified conditions.
Durability: extent of useful life, sturdiness.
Maintainability/Serviceability: ease of attending to maintenance, repairs.
Efficiency: ratio of output to input. E.g. mileage, braking distance, processing time.
Aesthetics: sensory characteristics, e.g. appearance, exterior finish, texture, color, shape, etc.
Reputation: subjective assessment based of past performance, brand image, industry ranking.
Safety: in items like pressure cookers, electrical items, toys, cranes, etc.
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Dimensions of service quality:
Time: how much time a customer must wait / undergo service.
Timeliness: whether service will be performed when promised.
Completeness: whether all items in the order are included.
Consistency: consistent service every time, and for every customer. Reliability of service.
Accessibility/Convenience: ease of obtaining the service.
Accuracy: absence of mistakes.
Responsiveness: quick response, resolution of unexpected problems.
Courtesy: cheerful, friendly service.
Competency/Expertise: In professions like doctors, lawyers, mechanics, etc.

EVOLUTION OF QUALITY:
Time Events

Quality is an art
Prior to the
Demands overcome potential production
20th century
An era of workmanship
The scientific approach to management resulting in rationalization of work and
F.W. Taylor
its break down leads to greater need for standardization, inspection and
1900s
supervision
Statistical beginnings and study of quality control. In parallel, studies by R A
Shewart
Fisher on experimental design; the beginning of control charts at western Electric
1930s
in USA
Late Quality standards and approaches are introduced in France and Japan. Beginning
1930s of SQC, reliability and maintenance engineering
Seminal work by Deming at the ministry of war in USA on quality control and
1942 sampling Working group setup by Juran and Dodge on SQC in US army
Concepts of acceptance sampling devised
1944 Daodge and Deming carried out seminal research on acceptance sampling
1945 Founding of the Japan standard association
1946 Founding of the ASQC
1950 Visit of Deming in Japan at the invitation of K Ishikawa
1951 Quality assurance increasingly accepted
1954 TQC in Japan ; Book published 1956
1957 Founding of European organization for the control of quality
The Martin Co in USA introduces the zero defects approach while developing
1961 and producing Pershing Missiles. Quality
motivation is starting in the US and integrated programmes begun
1962 Quality circles are started in Japan

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QUALITY CONTROL:

A definition of quality control is:

• The process of inspecting products to ensure that they meet the required quality standards
• This method checks the quality of completed products for faults. Quality inspectors measure or test
every product, samples from each batch, or random samples – as appropriate to the kind of product
produced.
• The main objective of quality control is to ensure that the business is achieving the standards it sets
for itself.
QUALITY ASSURANCE: A definition of quality assurance is:
• The processes that ensure production quality meets the requirements of customers
• This is an approach that aims to achieve quality by organizing every process to get the product ‘right first
time’ and prevent mistakes ever happening. This is also known as a ‘zero defect’ approach.
• In quality assurance, there is more emphasis on ‘self-checking’, rather than checking by inspectors.

Quality Assurance Quality Control

A medium to long-term process; cannot Can be implemented at short-notice
be implemented quickly
Focus on processes – how things are Focus on outputs – work-in-progress
made or delivered and finished goods
Achieved by improving production Achieved by sampling & checking
processes (inspection)
Targeted at the whole organization Targeted at production activities
Emphasizes the customer Emphasizes required standards
Quality is built into the product Defect products are inspected out

QUALITY CONTROL:
Quality Control is a systematic control of various factors that affect the quality of the product. The various
factors include material, tools, machines, type of labour, working conditions, measuring instruments, etc.
Quality Control can be defined as the entire collection of activities which ensures that the operation will
produce the optimum Quality products at minimum cost.

Quality Control is: “An effective system for integrating the quality development, Quality maintenance and
Quality improvement efforts of the various groups in an organization, so as to enable production and
services at the most economical levels which allow full customer satisfaction”
In short, we can say that quality control is a technique of management for achieving required standards of
products.
Objectives of quality control
✓ To decide about the standard of quality of a product that is easily acceptable to the customer and at
the same time this standard should be economical to maintain.
✓ To take different measures to improve the standard of quality of product.
✓ To take various steps to solve any kind of deviations in the quality of the product during
manufacturing.
Advantages of quality control
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 ✓ Quality of product is improved which in turn increases sales.
✓ Scrap rejection and rework are minimized thus reducing wastage. So the cost of manufacturing
reduces.
✓ Good quality product improves reputation.
✓ Inspection cost reduces to a great extent.
✓ Uniformity in quality can be achieved.
✓ Improvement in manufacturer and consumer relations.

STATISTICAL QUALITY CONTROL

S.Q.C is a quality control system employing the statistical techniques to control quality by performing
inspection, testing and analysis to conclude whether the quality of the product is as per the laid quality
standards.
Using statistical techniques, S.Q.C. collects and analyses data in assessing and controlling product quality.
The technique of S.Q.C. was though developed in 1924 by Dr. Walter A. Shewart an American scientist; it
got recognition in industry only second world war. The technique permits a more fundamental control.
“Statistical quality control can be simply defined as an economic & effective system of maintaining &
improving the quality of outputs throughout the whole operating process of specification, production &
inspection based on continuous testing with random samples.” -YA LUN CHOU
“Statistical quality control should be viewed as a kit of tools which may influence decisions to the functions
of specification, production or inspection.” -EUGENE L. GRANT
SQC: Three broad categories
• Descriptive statistics: Statistics used to describe quality characteristics and relationships.
• Statistical process control (SPC): A statistical tool that involves inspecting a random sample of the
output from a process and deciding whether the process is producing products with characteristics
that fall within a predetermined range.
• Acceptance sampling: the process of randomly inspecting a sample of goods and deciding whether
to accept the entire lot based on the results.
Benefits of Statistical Quality Control
The benefits of the Statistical Quality Control are as follows:
✓ It provides a means of detecting error at inspection.
✓ It leads to more uniform quality of production.
✓ It improves the relationship with the customer.
✓ It reduces inspection costs.
✓ It reduces the number of rejects and saves the cost of material.
✓ It provides a basis for attainable specifications.
✓ It points out the bottlenecks and trouble spots.
✓ It provides a means of determining the capability of the manufacturing process.
✓ It promotes the understanding and appreciation of quality control.
CONTROL CHARTS
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A control chart (also called process chart or quality control chart) is a graph that shows whether a sample of
data falls within the common or normal range of variation. The common range of variation is defined by the
use of control chart limits.
Control chart is:
✓ A device which specifies the state of statistical control,
✓ A device for attaining statistical control,
✓ A device to judge whether statistical control has been attained or not.
We say that a process is out of control when a plot of data reveals that one or more samples fall outside the
control limits.
✓ The Center Line (CL) of the control chart is the mean, or average.
✓ The Upper Control Limit (UCL) is the maximum acceptable variation.
✓ The Lower Control Limit (LCL) is the minimum acceptable variation.

Purpose and advantages:

1. A control charts indicates whether the process is in control or out of control.
2. It determines process variability and detects unusual variations taking place in a process.
3. It ensures product quality level.
4. It warns in time, and if the process is rectified at that time, scrap or percentage rejection can be
reduced.
5. It provides information about the selection of process and setting of tolerance limits.
6. Control charts build up the reputation of the organization through customer’s satisfaction.
TYPES OF CONTROL CHARTS
1. CONTROL CHART FOR VARIABLE: A product characteristic that can be measured and has
continuum of values (e.g., eight, weight, or volume).
✓ x-bar chart
✓ Range (R) chart
MEAN (X-BAR) CHARTS
A mean control chart is often referred to as an x-bar chart. It is used to monitor changes in the mean of a
process. To construct a mean chart we first need to construct the center line of the chart. To do this we take
multiple samples and compute their means. Usually these samples are small, with about four or five
observations. Each sample has its own mean. The center line of the chart is then computed as the mean of all
sample means, where the number of samples is:
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1. It shows changes in process average and is affected by changes in process variability.
2. It is a chart for the measure of central tendency.
3. It shows erratic or cyclic shifts in the process.
4. It detects steady progress changes, like tool wear.
5. It is the most commonly used variables chart.
6. When used along with R chart:
✓ It tells when to leave the process alone and when to chase and go for the causes leading to variation;
✓ It secures information in establishing or modifying processes, specifications or inspection
procedures;
✓ It controls the quality of incoming material.
RANGE (R) CHARTS
These are another type of control chart for variables. Whereas x-bar charts measure shift in the central
tendency of the process, range charts monitor the dispersion or variability of the process. The method for
developing and using R-charts are the same as that for x-bar charts. The center line of the control chart is the
average range, and the upper and lower control limits are computed. The R chart is used to monitor process
variability when sample sizes are small (n<10), or to simplify the calculations made by process operators.
This chart is called the R chart because the statistic being plotted is the sample range.
1. It controls general variability of the process and is affected by changes in process variability.
1. It is a chart for measure of spread.
2. It is generally used along with X-bar chart.

2. CONTROL CHART FOR ATTRIBUTE: A product characteristic tha has a discrete value and can be
counted.
✓ P-chart
✓ C-chart

P-CHARTS
P-charts are used to measure the proportion of items in a sample that are defective. Examples are the
proportion of broken cookies in a batch and the proportion of cars produced with a misaligned fender. P-
charts are appropriate when both the number of defectives measured and the size of the total sample can be
counted. A proportion can then be computed and used as the statistic of measurement.

1. It can be a fraction defective chart.

2. Each item is classified as good (non-defective) or bad (defective).

3. This chart is used to control the general quality of the component parts and it checks if the
fluctuations in product quality (level) are due to chance alone.

C-CHARTS

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C-charts count the actual number of defects. For example, we can count the number of complaints from
customers in a month, the number of bacteria on a Petri dish, or the number of barnacles on the bottom of a
boat. However, we cannot compute the proportion of complaints from customers, the proportion of bacteria
on a Petri dish, or the proportion of barnacles on the bottom of a boat.

ACCEPTANCE SAMPLING
• Acceptance Sampling is a method used to accept or reject product based on a random sample of the
product.
• The purpose of acceptance sampling is to sentence lots (accept or reject) rather than to estimate the
quality of a lot.
• Acceptance sampling plans do not improve quality. The nature of sampling is such that acceptance
sampling will accept some lots and reject others even though they are of the same quality.
• The most effective use of acceptance sampling is as an auditing tool to help ensure that the output
of a process meets requirements.
In general, acceptance sampling is employed when one or several of the following hold:

✓ Testing is destructive;
✓ The cost of 100% inspection is very high; and
✓ 100% inspection takes too long.

Acceptance Sampling is a Statistical quality control technique, where a random sample is taken from a lot,
and upon the results of the sample taken the lot will either be rejected or accepted.
• Accept Lot
- Ready for customers
• Reject Lot
- Not suitable for customers
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Purposes

✓ Determine the quality level of an incoming shipment or, at the end production
✓ Ensure that the quality level is within the level that has been predetermined

Advantages

✓ Less handling damages

✓ Fewer inspectors to put on payroll
✓ 100% inspection costs are to high
✓ 100% testing would take to long

Disadvantages

✓ Risk included in chance of bad lot “acceptance” and good lot “rejection”
✓ Sample taken provides less information than 100% inspection

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