BANGLADESH UNIVERSITY, TOTAL QUALITY MANAGEMENT, MBA PROGRAM

TOTAL QUALITY MANAGEMENT

LECTURE I
INTRODUCTION TO QUALITY
One of the important issues that business has focused on in the last two
decades is quality. The other issues are cost and delivery. Quality has been widely
considered as a key element for success in business in the present competitive
market. Quality refers to meeting the needs and expectations of customers. It is
important to understand that quality is about more than a product simply working
properly.
Quality refers to certain standards and the ways and means by which those
standards are achieved, maintained and improved. Quality is not just confined to
products and services. It is a homogeneous element of any aspect of doing things
with high degree of perfection. For example Business success depends on the
quality decision making.
QUANITIFICATION OF QUALITY
P
Q
E
P = Performance

E = Expectations

DIMENSION OF QUALITY
Performance
Features
Conformance
Reliability
Durability
Service
Response
Aesthetics
Reputation

Primary product characteristics such as brightness of the

picture
Secondary characteristics, added features such as remote
control
Meeting specifications, industry standards
Consistency of performance over time, Time required to
print per page
Useful life includes repair
Resolutions of problems and complaints, ease of repair
Human to human interfaces such as courtesy of the dealer
Exterior finish
Past performance and other intangibles such as ranking

TOTAL QUALITY MANAGEMENT

Why TQM:
1. A question of survival in the intense competitive environment
2. Increasing customer consciousness

BANGLADESH UNIVERSITY, TOTAL QUALITY MANAGEMENT, MBA PROGRAM

DEFINITION:
The term Total Quality Management (TQM) refers to a quest for quality that involves
everyone in an organization. There are two philosophies in this approach i.e.,
a.
Continuous Improvement-never ending push to improve. It covers
equipment, methods, materials and people.
b.
Customer Satisfaction-which involves meeting or exceeding customer
expectation.
TOTAL QUALITY MANAGEMENT PRINCIPLES:
The 8 Primary Elements of TQM
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.
1. Customer-focused: The customer ultimately determines the level of quality.
No matter what an organization does to foster quality improvementtraining
employees, integrating quality into the design process, upgrading computers
or software, or buying new measuring toolsthe 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.
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.
5. Strategic and systematic approach: A critical part of the management of
quality is the strategic and systematic approach to achieving an organizations
vision, mission, and goals. This process, called strategic planning or strategic

BANGLADESH UNIVERSITY, TOTAL QUALITY MANAGEMENT, MBA PROGRAM

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. It also follows the PlanDo
StudyAct Cycle, which describes the activities a company needs to perform
in order to incorporate continuous improvement in its operation.
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 plays a large part in
maintaining morale and in motivating employees at all levels.
Communications involve strategies, method, and timeliness.
These elements are considered so essential to TQM that many organizations define
them, in some format, as a set of core values and principles on which the
organization is to operate. The methods for implementing this approach come from
the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming,
Armand V. Feigenbaum, Kaoru Ishikawa, and Joseph M. Juran.
NEW AND OLD CULTURES
Quality Element
Definition
Priorities
Decisions
Emphasis
Errors
Responsibility
Problem Solving
Procurement
Managers Role

Previous State
Product oriented
Second to service and
cost
Short term
Detections
Operations
Quality Control
Managers
Price
Plan, assign, control and
enforce

BARRIERS TO TQM IMPLEMENTATION

TQM
Customer oriented
First among equals of
service and cost
Long term
Prevention
Systems
Everyone
Teams
Life Cycle cost,
Partnership
Delegate, coach. Facilitate
and mentor

BANGLADESH UNIVERSITY, TOTAL QUALITY MANAGEMENT, MBA PROGRAM

1. Lack of management commitment

2. Lack of faith in and support to TQM activities among management personnel
3. Failure to appreciate TQM as a cultural revolution. In other words, inability to
change organizational culture
4. Misconceptions about the concept of TQM
5. Improper planning
6. Lack of employees commitment
7. Lack of effective communication
8. Lack of continuous training and education
9. Lack of interest or incompetence of leaders
10. Ineffective measurement techniques and lack of access to data and results
11. Non-application of proper tools and techniques
12. Inadequate use of empowerment and team work
BENEFITS OF TQM
Tangible Benefits

Improved product quality

Improved productivity
Reduced quality costs
Increased
market
and
customers
Increased profitability
Reduced employee grievances

Intangible Benefits

Improved employee participation

Improved team work
Improved working relationships
Improved customer satisfaction
Improved communication
Enhancement of job interest
Enhanced
problem
solving
capacity
Better company image