TOTAL QUALITY MANAGEMENT

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TOTAL QUALITY MANAGEMENT
Dr. M. El AgizyProfessor of Technology
Operations Management College of Business
AdministrationCalifornia State Polytechnic
University, Pomona
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DEMINGS CHAIN REACTION AND JAPAN
Improve Quality
Decrease Costs
Improve Productivity
Decrease Prices
Increase Market
Stay in Business
Provide Jobs and More Jobs
Return on Investment
Dr. W. Edwards Deming OUT OF THE CRISIS, 1996
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CROSBYS FOUR ABSOLUTES OF TQM
TQM is based on the premise that all work is a
process, and on the following principles called
the four absolutes

• The definition of quality is conformance to
  customers requirements
• The system of quality is prevention of
  non-conformances
• The performance standard must be zero defects --
  an attitude and personal commitment to meeting
  customers requirements 100 percent of the time
  and
• The measurement of quality is the price of
  non-conformance (the cost of doing the job wrong).

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WE NEED TO CHANGE THE WAY ORGANIZATIONS ARE
MANAGED. WHY?

• According to Tom Peters, in Thriving on Chaos
• U.S. real wages have declined every year for
  the past 15 years.
• 29 million people in the U.S. have been
  dislocated in the last seven years alone. (ex.
  Seven years ago, U.S. steel employed 108,000
  people today, only 31,000.)
• Once there were 25 companies manufacturing TVs
  in the U.S. - Today, 23 of them are out of
  business.
• The U.S. per capita GNP, called the truest
  measure of the nations international economic
  standing, slipped below Japans in 1986 it also
  trails the per capita of such European nations
  as Germany, Switzerland, Sweden and Denmark.
• The question is not whether we can compete, but
  whether we can survive.

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TQM IS THIS CHANGE
TQM is

• A new philosophy
• New management system
• New tools

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DEFINITION

• TQM is an integrated system for creating an
  organization-wide participation in planning and
  implementing a continuous improvement process to
  meet and exceed customer needs.
• TQM is much broader than conventional quality
  management, which refers only to the finished
  products and/or services.

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TQM MISCONCEPTIONS
TQM is not just another activity! It is a
management framework for improvement and problem
solving. If TQM is considered something extra to
do, it hasnt been internalized.
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TQM MISCONCEPTIONS (Contd.)
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TQM FUNDAMENTAL PRINCIPLES

• Quality is achieved by conformance to customer
  requirements.
• The system of quality improvement is prevention,
  rather than inspection.
• Everyone, working individually or as part of a
  team, must be involved in quality improvement.
• Quality improvement requires senior management
  leadership
• The focus for improvement must be on the work
  process. (the 85/15 Rule)
• Quality improvement is never-ending.

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TQM FUNDAMENTAL PRINCIPLES (Contd.)

• Quality is achieved by a continuous effort of
  innovations and incremental improvements of
  processes.
• Employees must be empowered to be involved in
  quality improvements.
• Quality is achieved by partnerships with process
  customers, workers and suppliers.
• Continuous education and training of the
  employees should be pursued to ensure improved
  process performance.

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TRADITIONAL VS TQM MANAGEMENT PRINCIPLES
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TRADITIONAL VS TQM MANAGEMENT PRINCIPLES
(Contd.)
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The Elements of TQM

• A focus on the Customer
• A Long-term Commitment
• Top Management Support and Direction
• Employee Involvement
• Effective and Renewed Communications
• Reliance on Standards and Measures
• Commitments to Training
• Stress the Importance of Rewards and Recognition

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TQM RESULTS

• TQM implementation can result in increasing
  operating profit, generating greater value for
  all stakeholders, and providing world-class
  performance for the companys products and
  services.
• It is crucial to recognize that TQM is a process
  that involves people it cannot become a reality
  without the support, ingenuity, and enthusiasm of
  the most important ingredient PEOPLE.