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Lecture 1
Introduction to TQM

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IntroductionIntroduction
Definition of qualityDefinition of quality
Five Approaches of Defining QualityFive Approaches of Defining Quality
Who determines quality?Who determines quality?
Quality Management SystemQuality Management System
What is Total Quality Management (TQM)What is Total Quality Management (TQM)
History of quality managementHistory of quality management
Customer & Customer SatisfactionCustomer & Customer Satisfaction
The Deming 14 Point PhilosophyThe Deming 14 Point Philosophy
Benefits of TQMBenefits of TQM
Obstacles of TQMObstacles of TQM
TODAY’S AGENDATODAY’S AGENDA

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Introduction
Quality means different to different people:
1. Customer-Based: Fitness for use, meeting customer
expectations.
2. Manufacturing-Based: Conforming to design,
specifications, or requirements. Having no defects.
3. Product-Based: The product has something that other
similar products do not that adds value.
4. Value-Based: The product is the best combination of price
and features.
5. Transcendent: It is not clear what it is, but it is something
good. “Level of Excellence”
Five Approaches of Defining Quality

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Introduction:
 What is Quality?
Quality is the totality of features and
characteristics of a product or service
that bear on its ability to satisfy stated or
implied needs.

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WHO DETERMINES QUALITY?
THE CUSTOMER
“Any one who receive or is affected by the
product, service, or process.”
CUSTOMER IS GOD
(CHINESE SAYING)
CUSTOMER IS KING
(JAPNESSIES SAYING)

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How is customer satisfaction
achieved?
Two Dimensions of Quality:
Product feature- refers to the quality of
design.
In a manufacturing industry, it includes
performance, reliability, durability, ease of
use, esthetics, etc
In a service industry, customer satisfation
is gained through accuracy, timeliness,
friendliness and courtesy, knowledge of
server, etc.

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Freedom from deficiencies – refers to
quality of conformance
Conformance to standards- ability of the
product or service to conform to the stated
and implied requirements of customers.
Higher conformance means fewer
complaint and increased customer
satisfaction

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Indicators for Customer Satisfaction
Frontline empowerment
Excellent hiring, training, attitude and morale for front line
employees
Proactive customer service system
Proactive management of relationship with customers
Use of all listening posts
Quality requirements of market segment
Commitment to customers
Understanding customer requirements
Service standards meeting customers requirements

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QMS is a systematic set of operating procedures
which is company wide, documented, implemented
and maintained, which meets customers
requirements and satisfaction, while ensuring
growth in business in a consistent manner.
Quality Management System

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Total Quality Management (TQM) is an enhancement to
the traditional way of doing business. It is a proven technique
to guarantee survival in world-class competition. Only by
changing the actions of management will the culture and
actions of an entire organization be transformed.
Analyzing the three words, we have
Total—Made up of the whole.
Quality—Degree of excellence a product or service provides.
Management—Act, art, or manner of handling, controlling,
directing, etc.


Thus TQM is the art of managing the whole to achieve
excellence.
What is Total Quality Management (TQM)?

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TQM: PHILOSOPHY
“DO THE RIGHT THINGS, RIGHT THE FIRST TIME, EVERY
TIME”
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.
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.

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Responsibilityispusheddownto“empower”thepeople
who know the most about the job, process or service.
TQM focus is on the process;
TQM separates the improvement process from people
personalities and egos. “Top-down” management styles
disappear.
Reporting levels are reduced/streamlined.
Management’s role shifts to more emphasis on coaching.
Jobs are not eliminated, but job content may change
1
2
TQM: A “Cultural”
Change

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