A presentation on TQM by SSQCE

1. TOTAL QUALITY MANAGEMENT
A presentation by
THE SOCIETY
OF
STATISTICAL QUALITY CONTROL ENGINEERS
BHOPAL

2. WHY TQM
 TQM (Total Quality Management ) paves way towards
achieving world class/excellent status.
 TQM works for all round improvement. The result is excellence
in every field i.e. excellence in financial performance, product
quality, customer satisfaction, employee satisfaction, vendor
relations, corporate citizenship etc.
 TQM acts as enabler for securing global markets, gaining
customer confidence and enhancing organisation’s public image
 It takes care of various standards’ requirements related to
Quality, Safety, Occupational Health and Environment in an
integrated and broader way
 TQM brings laurels to the organisation in the form of national/
international excellence awards/recognitions

3. TQM:
Definitions

4. TQM DEFINITIONS
 TQM is a holistic management approach that aims at long
term success by focusing on customer satisfaction and
continuous improvement. TQM is based on the participation
of all members of the organisation is improving processes,
products, services and the culture in which they work.
 TQM is a management philosophy which focuses on quality
in its broadest sense (big Q) i.e. quality of people, processes,
facilities and systems rather than focusing merely on end product
quality
 TQM is an integration of all management concepts and principles
that leads to excellence
 TQM is a process of individual and organisational development,
the purpose of which is to increase the satisfaction level of
stakeholders viz. customers, suppliers, employees, society and
owners/ shareholders.

5. ISO – 9001 Vs TQM
ISO - 9001 TQM
Concerned with management of
quality
Concerned with overall management of the
organisation
Focus on system and procedures Focus on continual improvement
Satisfaction of stakeholders
(except customer) not demanded
Satisfaction of all stake holders (customer,
vendor, employee, society, owner) is considered
vital
No concern for productivity, quality
costs etc.
Productivity, quality costs etc. are part of TQM as
it stresses overall excellence
No concern for human aspects like
employees’ health, safety and
well being.
People are considered the most important
resource of the organisation and hence people
related aspects get high priority
ISO-9001 implementation is
steered by Quality department
TQM implementation is steered by the CEO of
the organisation.

6. TQM CONCEPTS

7. PERCEPTION OF QUALITY AS WE MOVE
FROM SMALL “q” TO BIG “Q”
SMALL “q” BIG “Q”
Quality of product Quality of product
Quality of service Quality of service
Quality of people
Quality of processes
Quality of systems
Quality of facilities
(equipment/machines/environment etc.)

8. PERCEPTION OF QUALITY AS WE MOVE
FROM SMALL “q” TO BIG “Q” (Contd.)
TERM SMALL “q” BIG “Q”
QUALITY Quality of product Quality product as well as
quality of processes
PROCESS Manufacturing process Manufacturing processes
as well as business processes
DESIGN Product design Product design
as well as process design.
CUSTOMER The external customer
who pays for the product
External customer as well as
all internal customs who
receive the output of any
process.

9. What differentiates a TQM organisation from
any other organisation
IN A TQM ORGANISATION
 Quality is customer driven and not “producer driven”
(Quality is perceived as meeting customer’s needs and expectations)
 “Customer” includes internal as well as external customers
(Customer is anybody who receives the product/service internally or externally)
 Continuous improvement is a way of life for all individuals
(“All individuals” include people working at all levels in all functions and all departments
of the organisation including contract staff. The tendency of “preserving the status quo”
does not exist.)
 Quality is all pervasive
(Quality is visible in every process being performed in the organisation – manufacturing
processes/ non-manufacturing processes/ business processes
 All stake holders are satisfied
(Programmes and policies are framed in such a way that satisfaction
level of all the stake holders is high)
 TQM is a never ending journey
(TQM is not taken as a one time project or destination)

10. TQM REQUIRES CULTURAL CHANGE
FROM TO
Preserving the status quo Change for the better, improve continually
Internal focus
(Focus on internal systems and procedures)
External focus
(Focus on customers, competitors and
environment)
Emphasis on short term objectives Emphasis on short term objectives as well as
long term objectives
Emphasis on bottom line
(Delivery, cost, profits)
Emphasis on “quality first”
Limited information sharing with stake
holders
Transparency and open communication with
stake holders
Fire fighting approach to problems Solving problems at the root
Controlling the employees Empowering the employees
Working in compartments Working as a team

11. TQM ELEMENTS

12. TQM Elements
 Leadership/management commitment
 Human resource management
 Strategic planning
 Customer focus
 Continuous improvement
 Process management
 Data management and analysis
 Corporate social responsibility
 Satisfaction of stake holders
 Results

13. LEADERSHIP
Leadership is the ability to inspire people to make a total,
willing and voluntary commitment to accomplishing or
exceeding organizational goals
Leaders should
 Direct the organisation towards goals/ targets
 Provide support and guidance to people
 Provide resources when needed
 Be accessible to stake holders
 Be personally involved in key areas
 Honour values, ethics and culture of the organisation
 Project themselves as role models

14. Qualities of a good leader
 Good leader is goal oriented
 Good leader is always positive
 Good leader trusts people
 Good leader enjoys credibility
 Good leader believes in persuasion rather than authority
 Good leader demonstrates honesty, fairness and consistency
in his/ her dealings
 Good leader values humility

15. HUMAN RESOURCE MANAGEMENT
HR EFFORTS
 People motivation
- Satisfying people’s needs
- Caring for the people
- Recognition and rewards
- Job enrichment ( adding creativity/innovation/challenges to the job)
 People development
- Training
- Qualification
- Exposure to excellent organisations
 People involvement
- Quality circles
- Suggestion scheme
 People empowerment
- Delegating planning and decision making powers
HR RESULTS
Outcome of employee satisfaction survey

16. STRATEGIC PLANNING
 Organisation to have clear Vision, Mission and Values
(Vision is what the organisation wants to become. Mission is what
needs to be accomplished in key areas to realise vision. Values
form the core of the organisation)
 Strategic planning (long term & short term) is a must for any
growing organisation.
 The strategic plans should be guided by:
i) Vision and mission statements
ii) SWOT analysis results (strengths, weaknesses,
opportunities, threats) as provided by independent
assessments
iii) Comparison with bench marks
 Execution of strategic plans should be monitored by the leaders
(top management)
 Values/ethics of the organisation should be reflected in the
strategic plans

17. CUSTOMER FOCUS
EFFORTS
 Identify your customers
 Find out customers' needs and expectations
 Incorporate customers’ needs and expectations in the
product design and process design
 Communicate customers’ needs and expectations to all
functions and levels
 Customers needs (specified as well implied) should be met
essentially. Fulfillment of customers’ expectations, too,
should be strived for.
- Today’s expectations will be tomorrow’s needs
- Meeting customer expectations will lead to customer
delight
RESULTS
 Outcome of customer satisfaction surveys
 Customer appreciation, customer commendation letters etc.

18. CONTINUOUS IMPROVEMENT (KAIZEN)
LEVEL PREFERRED KAIZEN AREA
Top Management Improvement in policies
Middle Management - Improvement in systems and procedures
- Business process re-engineering
Junior Management/ Engineers Improvement in product design,
Improvement in manufacturing processes
Workers/Grass roots level Improvement in manufacturing processes,
poka yoke (mistake proofing),
5-S (Improvement in upkeep, storage,
self-discipline etc at the work place.)
The best approach for continuous improvement is to follow PDCA cycle (also called Deming’s improvement wheel)
PLAN DO CHECK ACT

20. PROCESS MANAGEMENT
 Any product/service is the outcome of a single process or a
set of processes
 The best way to improve the product/service is too make
improvement at the process level
 All processes need improvement – manufacturing
processes/non-manufacturing processes/business
processes
 Every process should have
i) Process owner
ii) Internal “supplier”
iii) Internal “customer”
 Feed back from customers (internal as well as external)
should be taken as triggers for process improvement

21. DATA MANAGEMENT AND ANALYSIS
PURPOSE
 To know the present level of performance
 To assess improvements over a period and set
targets for future
 To compare performance with “bench marks”
DATA ANALYSIS TOOLS
- Seven QC tools (Basic tools)
- Advance SQC tools
(control charts, DOE, regression analysis etc.)
Capturing data related to products/processes should be a continuous
activity and should not be limited to problem areas alone. As far as
possible, data capturing should be on- line for ease of processing and
reliability.

22. SATISFACTION OF STAKE HOLDERS
 KNOW YOUR STAKE HOLDERS
- Customers
- Employees
- Vendors/partners
- Society
- Owners/share holders
 Find out existing satisfaction levels of stake holders by
conducting independent perception surveys.
 Raise satisfaction levels constantly by implementing suitable
programmers and policies

23. CORPORATE SOCIAL RESPONSIBILITY
Organisation should strive to become a good corporate
citizen
 SOCIETY EFFORTS:
- Regular interaction with members of society
- Policies/strategies relevant to the society to be made
public
- Environmental protection efforts
- Public safety efforts
- Health care, education, recreational facility for the
community
- Developmental work for the community
 SOCIETY RESULTS:
- Results from society satisfaction survey
- Media feedback
- Recognitions/rewards from public bodies

24. RESULTS
 Customer results
(Source – customer satisfaction survey)
 People results
(Source – employee satisfaction survey)
 Vendor/partner results
(Source – vendor satisfaction survey)
 Society results
(Source – Society satisfaction survey)
 Quality results
(Sigma level, trend of customer complaints, quantum of
in-house rework etc.)
 Business results
(Profit, turnover, share value etc.)
For unbiased assessment of results, satisfaction surveys should
be conducted by independent agencies

25. TQM
IMPLEMENTATION

26. HOW TO IMPLEMENT TQM
(1) Choose a TQM model or develop your own TQM model to
suit your organisation
(2) Prepare comprehensive plan for implementing various elements
of the model (normally it requires consultant’s help)
(3) Implement the model (it may take 2-3 years before the TQM is
implemented across the organisation, vertically and horizontally)
(4) Carry out self assessment by “in-house” assessors. If the score
is 70% or more, the organisation can be considered excellent
(5) Apply for prestigious national/international excellence awards
to get formal recognition as an excellent organisation.
(There is no provision for certification for TQM)

27. WHY ADOPT A TQM MODEL
 The model provides a framework for implementing
TQM throughout the organisation cutting across
all functions and levels.
 The model provide a basis for self-assessment as
well as external assessment with a view to identify
area wise strengths and weaknesses (OFIs).

28. WHICH MODEL TO ADOPT
 Organisation can develop it own TQM model to suit its
size, nature of operations and culture etc. Care should be
take to assign due weightage to all the TQM
elements and maintain balance between “Efforts”
and “Results”.
 If the organation is aspiring for a particular TQM
award/Quality award/Excellence award, it should adopt
the relevant TQM model against which the organisation
would be assessed by the award body.

29. WELL KNOWN AWARDS/MODELS
 CII-EXIM Bank excellence awards in India
(Based on EFQM Model)
 European Quality Awards
(Based on EFQM model)
 Malcolm Baldrige National Quality Awards in the U.S.
 Deming application prize
(An international prize open to all countries)
 Singapore national quality awards
 Australian national quality awards
NOTE: All TQM models are dynamic. The models are updated
periodically in line with current management practices.

30. TQM AWARDS/MODELS

31. EUROPEAN QUALITY AWARDS
(EFQM Excellence Awards)

32. WHAT IS EFQM
EFQM (European Foundation for Quality Management) is a
non-profit body of European business organisations.
The mission of EFQM is to promote business excellence among
member organisations. It encourages and provides forum for
exchange of best practices among its member organisations.
The motto of EFQM is “shares what works”

33. ABOUT EFQM EXCELLENCE AWARDS
 Instituted in 1992, it is Europe’s most prestigious award
for organisational excellence.
 The award is based upon EFQM model for business
excellence.
 The award is given annually. Only EFQM members apply
for the award.
 EFQM Award is given to those organisations who are
excellent in all spheres (role models). EFQM prize is given
to those organisation who excel in one or more fields.
 The awards/prizes are given on the basis of minimum marks
criteria. As such, number of awards/prizes in a year is not
fixed.
 The assessment team consists of top executives of leading
business organisations of Europe.

34. EFQM MODEL-2010
(EUROPEAN FOUNDATION FOR QUALITY MANAGEMENT)
TQM Element Points
Leadership 100
People Management 100
Policy & strategy 100
Partnership & resources 100
Processes, products & services 100
Customer results 150
People results 100
Society Results 100
Key Performance Results 150
Total Points 1000

35. MALCOLM BALDRIGE
NATIONAL QUALITY AWARDS

36. ABOUT MALCOLM BALDRIGE QUALITY AWARDS
 Instituted in 1987, it is the most prestigious quality award for
U.S.
organisations
 Named in the honour of late U.S. secretary of commerce
Malcolm Baldrige
 The objective of the award is to promote excellence in the
quality and performance of U.S. organisations
 The number is awards in a year is fixed. Normally there are
three
awards in each of six categories viz. manufacturing sector,
service sector, small business, education, health care and non-
profit organisations
 The award is given annually by the president of the United
States in a special ceremony held at Washington DC

37. ABOUT MALCOLM BALDRIGE QUALITY
AWARDS (Contd.)
 Assessors are leading experts from U.S. business/
education/health care/non-profit organisations.
 Awardees are required to share information on their
successful performance and quality strategies with other
U.S. organisations at the annual “Quest of Excellence”
conference.
(Except for proprietary information, even though it was
part of award application)

38. MALCOLM BALDRIGE AWARD CRITARIA 2009 - 2010
Efforts
TQM Element Points
Leadership 120
Strategic Planning 85
Customer focus 85
Measurement, analysis and
knowledge management
90
Workforce focus 85
Process management 85
Total points 550

39. MALCOLM BALDRIGE AWARD CRITARIA 2009 - 2010
Results
TQM Element Points
Product outcomes 100
Customer focused outcomes 70
Financial and market outcomes 70
Workforce focused outcomes 70
Process effectiveness outcomes 70
Leadership outcomes 70
Total points 450

40. DEMING PRIZE

41. WHAT IS DEMING PRIZE
The Deming application prize is an annual award presented to a
company (or a division of a company) that has achieved
distinctive performance improvement through application of
Total Quality Management (TQM).
It is the most coveted award in the field of quality.

42. ABOUT DEMING PRIZE
 The oldest and most prestigious award in the field of Quality
 Instituted in 1951 in the honour of late quality guru
Dr. W.Edwards Deming.
 The award is managed by Japanese Union of Scientists and
Engineers (JUSE)
 Initially Deming prize was applicable to Japanese
companies only. In the year 1984, the prize was opened for
overseas organisations.
 The prize is based on “pass marks” system. Any company
that secures the minimum pass marks (70%) is entitled to
the prize. Thus, there is no limit on the number of prizes
awarded during a year.

43. ABOUT DEMING PRIZE (Contd.)
 Applicant organisations for Deming Prize have to undergo
rigorous examination process during on-site visits/ executive
sessions conducted by highly experienced examiners.
 Deming prize is innovation oriented. It expects the
organisation to develop its own TQM model, implement it
and demonstrate excellent results. No specific TQM model
is prescribed for winning Deming Prize.
 Outside Japan, majority of Deming Prizes have been won by
Indian companies. So far, 16 Indian companies have won
Deming Prize e.g. Tata Steel (2008), Lukas-TVS, Sundaram
Clayton, Mahindra & Mahindra etc.

44. DEMING PRIZE CRITERIA
 Whether the objectives and strategies of the company are
challenging and customer focused.
 How TQM has been applied to achieve these objectives i.e.
thoroughness, consistency and depth of application across
the organization.
 Whether outstanding results have been achieved through
application of TQM

45. DEMING PRIZE PROCESS
Submission
of
“Description of TQM practices”
On-site examination by JUSE team
Prize giving to successful organizations
TQM Diagnosis by JUSE team
Document examination

46. DEMING PRIZE:
AREAS OF EXAMINATION DURING ON-SITE VISITS
(1) BASIC CATEGORIES
(i) Management policies and deployment
(ii) New product development/work process innovation
(iii) Maintenance and improvement
(Daily works management and continuous improvement)
(iv) Establishing systems/procedures.
(v) Data analysis and information technology
(vi) Human resources development
(2) UNIQUE ACTIVITIES
The organization to demonstrate at least one unique activity
(3) ROLE OF TOP MANAGEMENT
Judged through “executive sessions” i.e. interaction of
examiners with top management team

47. CII-EXIM BANK AWARD
FOR
BUSINESS EXCELLENCE

48. CII-EXIMBANK AWARD FOR BUSINESS
EXCELLENCE
 Instituted jointly by Confederation of Indian Industry (CII)
and Export Import Bank of India (EXIM Bank) in 1994, it is
the most prestigious award in India for business excellence.
 The award is based upon EFQM model for business excellence.
 The “award” is given to role models whereas “prizes” are given
to those organisations that demonstrate excellence in
management of quality.
 Provision is also there for commendation certificates viz.
(i) Certificate for strong commitment to excel on the journey
towards excellence
(ii) Certificate for significant achievement on the journey
towards excellence
 Award winners are required to share information on their
successful performance and quality strategies at the annual
Quality Summit organised by CII.

49. CII-EXIM BANK AWARD/PRIZE WINNERS
1. The tinplate company of India Ltd. (2008-prize)
2. Tata consultancy services Ltd. (2006-Award)
3. Heavy electrical equipment plant, BHEL, Haridwar (2006-prize)
4. Tata motors Ltd. (2005-Award)
5. Infosys technologies Ltd (2002-Award)
6. Tata steel Ltd. (2000-Award)
7. Maruti Udyog Ltd. (1998-Award)
8. Hewlett Packard India Ltd. (1997-Award)
Note: If an award winner re-applies for the award during the next
five years, the organisation will be assessed and get
feedback report. However, such an organisation will not
be eligible to receive the award, even if it qualifies.

50. THE TQM TOOLKIT

51. THE TQM TOOLKIT
TOOL PURPOSE
BENCH MARKING For setting improvement targets w.r.t. better
performers e.g.“best-in-class”
QUALITY FUNCTION
DEPLOYMENT (QFD)
Systematic approach for incorporating
customer’s requirements at design stage.
SEVEN QC TOOLS
(Brainstorming, Ishikawa diagram, Check
Sheet, Scatter diagram, Histogram, Pareto
analysis, Control charts)
For systematic analysis of problems
related to quality, productivity, safety etc.
LEAN Waste reduction
SIX SIGMA Breakthrough improvements in
products/processes
5 – S Improvement in house keeping
OTHER TOOLS (Affinity diagrams,
Relation diagrams, Tree diagrams,
Matrix diagrams, Field force analysis etc.)
For better understanding , communication
and solution to problems

52. Guarding against pitfalls

53. GUARDING AGAINST PITFALLS
( why TQM initiatives are left halfway ! )
 Focus on winning award rather than TQM implementation
 Improvements driven largely by external pressures and not
by pro-active approach
 Not all employees involved in TQM initiatives
 Customer satisfaction overweighs satisfaction of other stake
holders
 No mechanism for monitoring quality of processes
 Ownership for processes not fixed
 Short term goals overweigh long term goals

54. THANKS