Total Quality Management power point presentation

TOTALQUALITYMANAGEMENT
Presented By: Dr. Dheeraj Chechare
M.Pharm,PhD
Asst.Prof.
PRES’s College of Pharmacy(D & B.Pharm)

Definition: Total Quality Management (TQM) is a set
of management practices throughout the organization
geared to ensure the organization consistently meets
customer requirements.
 According to ISO :TQM is defined as: "A
management approach of an organization centered on
quality, based on the participation of all its members
and aiming at long term success through customer
satisfaction and benefits to all members of the
organization and society”

ELEMENTS OF TOTAL QUALITY MANAGEMENT (TQM)
There are Eight Key elements of TQM these
elements can be divided into four groups according
to their function.
 Foundation: Ethics, Integrity and Trust
 Building Bricks: Training, Teamwork and
Leadership
 Binding Mortar: Communication
 Roof: Recognition

1) Foundation
A) ETHICS
 Ethics is discipline related to good and bad
deeds in any situation.
 It is two faceted subject represented by
organizational and individual ethics.
 Ethics teach an individual/employee to follow
code of conduct of organization and adhere to
rules and regulations.

B) INTEGRITY
 Integrity refers to honesty, morals, values,
fairness and adherence to the facts and
sincerity.
 You need to respect your organization's
policies.
 Avoid spreading unnecessary rumors about
your fellow workers.

C) TRUST
 Trust is the by-product of integrity and ethical
conduct, and builds the framework of TQM.
 Employees need to trust each other to ensure
participation of each and every individual.
 Trust improves relationship among employees
and eventually helps in better decision making
which further helps in implementing total quality
management successfully.

2) Building Bricks
A) TRAINING
 Training makes employees more productive.
 Training provided to employees includes
interpersonal skills, decision making, job
management, problem solving ability and technical
skills.
 Supervisors provide training so that they can
implement TQM as per requirements of their
department.

B) TEAMWORK
 To become successful in business team work is
a key element.
 With the use of teams, the business will receive
quicker and better solutions to problem.
 Team also provides more permanent
improvements in processes and operations.

Types of Teams:
1. Quality improvement team (QITs) or Excellence
teams
◦ These are the temporary teams with the purpose of
dealing with specific problems that often re-occur.
2. Problem solving team(PSTs)
◦ These are temporary teams to solve certain
problems and also to identify and overcome the
causes of problem.
3. Natural work team(NWTs)
◦ These teams consist of small group of skilled
workers who share tasks and responsibilities.

C) LEADERSHIP
It is the most important element in TQM which
appears everywhere in organization.
In TQM leadership requires the manager to provide
an inspiring vision, to make strategic directions
which can be understood by all, and provide
guidelines for the employees.

3)Binding Mortar:
Communication
 It binds everything together, starting from
foundation to roof of TQM.
 It acts as a vital link between all elements of
TQM.
 Communication means a common
understanding of ideas between the sender and
receiver.
 The success of TQM demands communication
with and among all the organizational members,
suppliers and customers.

There are different ways of communication
1. Downward communication: This is the dominant
form of communication in an organization, in this
flow of information takes place from the
management to the employees.
2. Upward communication: By this lower level of
employees are able to provide suggestions to upper
management, in this flow of information takes place
from the employees to the top level management.
3. Sideways communication: This communication is
essential as it breaks barrier between the
departments. It also permits professional dealing
with customers & suppliers.

4)Roof:
Recognition
 Recognition is the final element of Total Quality
Management.
 Recognition is the most important factor which acts
as a catalyst and drives employees to work hard as
a team and deliver their lever best.
 Every individual is hungry for appreciation and
recognition.
 Employees who come up with improvement ideas
and perform exceptionally well must be appreciated
in front of all.

Ways of Recognition:
1) Ways: It can be in form of appreciation letters
from top management or in form of trophies, etc.
2) Places: Good performers can get recognition in
front of department, on performance board or in
the presence of top management.
3) Time: Recognition can be given in a staff
meeting, annual awards, etc.

KEY PRINCIPLES OF TOTAL QUALITY
MANAGEMENT

1) Customer Support
When you understand what your customer wants, you have a
better chance of figuring out how to get the right materials,
people, and processes in place to meet and exceed their
expectations.
To implement this TQM principle:
• Research and understand your customers needs and
expectations.
• Communicate with customers, measure satisfaction, and
use the results to find ways to improve process.
• Find a balance for satisfying customers and other
interested parties (such as owners, employees, suppliers,
and investors).

The benefits of being customer-focused include:
• More sales, increased revenue, market share.
• Strong customer loyalty leading to repeat
business.
• Increased possibility that satisfied customers
will tell others about your products and
services.

2. Total employee commitment/Involvement
You can’t increase productivity, processes, or sales without the
total commitment of all employees. They need to understand the
vision and goals that have been communicated. They must be
sufficiently trained and given the proper resources to complete
tasks in order to be committed to reaching goals on time.
• Clearly communicate and acknowledge the importance of each
individual contribution to the completed product.
• Make responsibilities clear, provide adequate training, and make
sure your resources are used as efficiently as possible.
• Create an environment where employees can openly discuss
problems and suggest ways to solve them.

The key benefits of total employee commitment
include:
• Increased employee retention because employees
are motivated, committed, and actively involved
in working toward customer satisfaction.
• Individual and team innovation and creativity in
problem-solving and process improvement.
• Enthusiasm for active participation and
contribution to continual improvement.

3. Process approach
Adhering to processes is critical in quality
management. Processes ensure that the proper steps
are taken at the right time to ensure consistency and
speed up production.
• Use Total Quality Management tools such as process
flowcharts to define and inform clear roles and
responsibilities so everyone knows who does what
at certain times.
• Create a visual action plan so everyone can easily
see the specific activities that need to be completed
to achieve the desired result.

Benefits of a process approach include:
• Faster development and production
cycles, lower costs, and increased
revenue.
• More consistency and predictable
outcomes.
• Focus on continued improvements and
success.

4. Integrated system
 Typically a business has many different departments, each with
their own specific functions and purposes. These departments and
functions should be interconnected with horizontal processes that
should be the focus of Total Quality Management.
• Promote a work culture focused on quality.
• Use flowcharts and other visual aids to help employees
understand how their functions fit in with the rest of the company.
• Make training available for employees who need to learn new
processes and who want to explore opportunities for
advancement.

5. Strategic and systematic approach
“Identifying, understanding and managing interrelated
processes as a system contributes to the
organization’s effectiveness and efficiency in
achieving its objectives.”
• Provide your people with the proper training and
resources that will help them to complete their
individual steps in the process.
• Continually improve processes and products, and
upgrade equipment as necessary to reach goals.
• Recognize, acknowledge, and reward innovations
and process improvements.

6. Continuous Improvement
Optimal efficiency and complete customer satisfaction doesn’t
happen in a day—your business should continually find ways to
improve processes and adapt your products and services as
customer needs shift.
• Implement policies to establish product, process, and system
improvements as measurable goals for individuals, teams, and
departments.
• Encourage employees to participate in available training sessions
to learn and take on new and additional roles.
Benefits include:
• Improved knowledge and capabilities to increase performance
• Improvement goals strategically aligned with organizational
capabilities

7. Fact-based decision-making
Analysis and data gathering lead to better decisions based on
the available information. Making informed decisions
leads to a better understanding of customers and your
market.
• Analyze and check data to ensure that it is reliable and accurate.
• Make relevant data available to stakeholders.
• Use valid methods to gather and analyze data.
Benefits include:
• Ability to analyze and defend past decisions by referencing
factual records
• Ability to change past decisions based on data review

8. Communications
Everybody in your organization needs to be aware of plans,
strategies, and methods that will be used to achieve goals.
There is a greater risk of failure if you don’t have a good
communication plan.
• Establish an official line of communication so that all
employees know about updates, policy changes, and new
processes.
• Where possible, involve employees in decision-making.
Benefits include:
• Boost in morale and motivation when employees understand
how their contributions help the company achieve its goals
• Interdepartmental coordination and cooperation

PHILOSOPHY OF TQM
Individuals who have been identified as making a
significant contribution to improve quality of goods and
services' are known as Quality Gurus.
Famous quality gurus are:
Walter A. Shewhart
W. Edwards Deming
Joseph M. Juran
Armand Feigenbaum
Philip Crosby

WALTER A. SHEWHART
 Shewhart studied randomness and recognized
that variability existed in all manufacturing
processes.
 He developed quality control charts that are used to
identify whether the variability in the process is random
or due to an assignable cause, such as poor workers or
mis-calibrated machinery.
 His work created the foundation for today's statistical
process control, and he is often referred to as the
"grandfather of quality control”.

Dr. JOSEPH M. JURAN
• Dr. Joseph Juran is considered to have had the greatest impact on
quality management.
• He became better known in 1951, after the publication of his book
Quality Control Handbook.
• One of Juran's significant contributions is his focus on the
definition of quality and the cost of quality.
• Juran is well known for originating the idea of the quality trilogy:
quality planning, quality control, and quality improvement.
• The first part of the trilogy, quality planning, is necessary so that
companies identify their customers, product requirements, and
overriding business goals.

PHILLIP B. CROSBY
 He told the idea that a small number of defects are a
normal part of the operating process because
systems and workers are imperfect.
 To promote his concepts, Crosby wrote a book titled
Quality Is Free, which was published in 1979.
 He became famous for coining the phrase "quality is
free" and for pointing out the costs of quality, which
include not only the costs of wasted labour,
equipment time, scrap, rework, and lost sales, but
also organizational costs that are hard to quantify.

 He considers that the workers must not be blamed for error, but
rather, that management should take the lead and that the workers
will then follow.
 Crosby suggests that 80 per cent of quality problems are within the
control of management
 Methods for quality improvement-
◦ Step 1 Establish management commitment
◦ Step 2 Form quality improvement teams
◦ Step 3 Establish quality measurements
◦ Step 4 Evaluate the cost of quality
◦ Step 5. Raise quality awareness
◦ Step 6 Take actions to correct problems
◦ Step 7 Zero defects planning
◦ Step 8 Train supervisors and managers
◦ Step 9 Hold a Zero Defects' day to establish the attitude and expectation
within the company.

KAORU ISHIKAWA
• Kaoru Ishikawa is best known for the development of
quality tools called cause-and-effect diagrams, also called
fishbone or Ishikawa diagrams.
• He was first to stress the importance of total company
quality control, rather than just focusing on products and
services.
• Dr. Ishikawa believed that everyone in the company needed
to be united with a shared vision and a common goal.
• He stressed that quality initiatives should be pursued at
every level of the organization and that all employees
should be involved.

 He is a "Father of Quality Circles' and as a founder of
the Japanese quality movement.
 Methods: Quality circle is a voluntary group of
employees who work on similar tasks or share an area of
responsibility.
 The team operates on the principle that employee
participation in decision-making and problem solving
improves the quality of work
1) The number of members range from 3-12 people
2) The focus is on specific issues to resolve problems.
3) The team generally meets once a week to analyse work
related problems and proposes solutions to Management
and where possible implements those solutions.

ADVANTAGES OF TQM
1) It Increases productivity
2) It eliminates defects
3) It Increases profitability
4) It improves customers satisfaction.
5) It improves shareholder & stakeholder values.
6) It reduces cost management.

DISADVANTAGES OF TQM
1) Benefits may not be seen for several years.
2) Workers may feel less secure in jobs.
3) It is long term process that shows results only
after years have passed.

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