Total Quality Management (TQM) is an umbrella concept encompassing many good

management techniques. TQM is a management approach of an organization centered on

quality, based on the participation of all employees and aiming at long-term success. Total
quality means, quality in every activity of the organization. This will result in customer
satisfaction and benefit to all employees and society.
TQM is:
 Management approach of an organization
 Quality is the nucleus
 Involvement of every employee is essential
 Aims at long-term success

LEADERSHIP
 Aims at customer satisfaction and benefits to employees and society
 Most effective way to achieve the objective4s of the organization
 Management philosophy and organization practices
 Aimed at harnessing human and material resources of the organization

(04-23-2018) Nine elements of quality managements are essential for TQM implementation. Out of these,
leadership is the most important one. Top management should lead the organization into
TQM.
Elements of TQM
TQM is application of a number of activities with perfect synergy. The various important
elements of TQM are illustrated below as follows.

Presenter: Niñalyn Avila, BSA 2-1

 2. Adapt the New Philosophy. The new philosophy means, Just-In-Time (JIT)
Constancy of manufacturing is possible with zero defects.
Purpose/Long-term
3. Cease Dependence on Mass Inspection. TQM is aimed at eliminating inspection in
Training Commitment
Focus on Process the long run through prevention.
4. End the Practice of Awarding Business on the Basis of Price Tag Alone. This
Total Employee point addresses supplier partnership. 4 Parameters: Quality, Price, Delivery, Service
Involvement/Team Quantitative 5. Constantly Improve the System of Production and Services. The very purpose of
Work TQM Methods
TQM is the constant improvement (Kaizen in Japanese) of the system for production
and services.
Continous Process
Leadership Improvement 6. Institute Training. The abilities of employees should be improved and harnessed
only through training.
Customer Focus Supplier Partneship 7. Adopt and Institute Leadership. Deming urges that the senior employees must
conduct themselves as leaders rather than managers.
Leader Manager
Leadership for TQM
Proactive Reactive
As Crosby says senior management is 100 per cent responsible for the problem with quality
and their continuance. According to Harrington, between 70 and 85 per cent of all errors can Coaches Finds Fault
only be corrected by management. Thus, leadership for TQM is essential. TQM has to be led Understands Process Doesn’t care to understand
by the top management. Their commitment to TQM is the most important ingredient for Moves around Sits in his chair
TQM to be successful in any organization. Improves process Maintains process
Communicates frequently Communicates rarely
Deming’s 14 points for top management have been given to the Japanese management in the Seeks suggestions Questions
1950s. The points are relevant even today. The effectiveness of the points could be judged
from the success of Japan. 8. Drive Out Fear. Fear is detrimental to improvement of processes.
9. Break Down Barriers Between Staff Areas. TQM dictates removal of barriers
DEMING’S 14 POINTS FOR TOP MANAGEMENT between the departments.
 Deming is the Father figure of Japanese quality movement 10. Eliminate Slogans, Exhortations and Targets for the Work Force. The best
 Deming addresses the Japanese to managers several times in the 1950s strategy for improvement is to correct defects in the system, not slogans or posters.
1. Create Constancy of Purpose for Improvement of Products and Services. It is the 11.a. Eliminate Numerical Quota for the Work Force. Numeric quota is given assuming
role of the top management to create constancy of purpose for improvement of that the workers may be idling. That is not the right approach.
products and services, which is essential for TQM. They have to constantly reiterate 11.b. Eliminate Numerical Goals for People in Management. Such improvements should
their intention to practice TQM and improve products and services. arise out of improving processes and not by passage of time.
 12. Remove Barriers that Rob People of Pride of Workmanship. Every employee
should be encouraged to work as much as he can. Removing the obstacles to this
pursuit is the responsibility of the top management.
13. Encourage Education and Self-Improvement for Every One. Employees
should be motivated and encouraged to improve their knowledge and skills
through various channels.
14. Take Action to Accomplish the Transaction. The final point is about
implementation of the 13 points, which in essence are the TQM principles and
strategies.
TEN STRATEGIES FOR TOP MANAGEMENT
1. Proactive Management
2. Adventurous and bold change management
3. Do It Right First Time (DIRFT)
4. Continuous preventive action
5. Care for little things and accumulate gains
6. Ensure economic performance
7. Practice manage by walking around
8. Measures success
9. Never rest on laurels, continue to improve
10. Build a virtual organization
1. Proactive Management. The leaders have to be proactive. They have to foresee
what will happen in the future and take advance action to prevent the occurrence of
the problems as prevention is always better than cure.
 Proactive Management Needs Proper System. Proactive management calls
for establishment of proper system for quality as well as the operations.
 TQM calls for Proactive Management. One should take preventive action
and save the organization form disaster.
2. Adventurous and Bold Change Movement
 Nobody likes Change. Human beings by their very nature resist change.
 Change is Essential. An organization cannot progress without change.
Change management is an important activity in TQM environment and is
crucial for continuous improvement of processes and the organization.
Essentials requirements for change and change management are:
i. Be Adventurous. One should develop an adventurous attitude for the larger
good of the organization.
ii. Be Bold. Boldness is the basic requirement for making an efficient
organization.
iii. Role of CEO for Adventurous and Bold Change Management. Like many
other aspects, the adventurous and the bold change management depends on
the personal qualities of the CEO.
3. DIRFT- Do It Right the First Time. Take Right Decisions
 Plan the decision
 Foresee the impact of the decision on the org.
 Take opinion of the right people
 Involve the concerned people only
 Implement the decision
 Persist
 Why People don’t Do it Right the First Time? (Advocated by Philip Crosby)
This is a time-tested concept and employees and organizations should adopt
DIRFT.
 Why Things are Done Wrong?
 The employee does not know what to do clearly, leave alone how to
do!
 If he knows how to do, he is not motivated enough right the first time
 He may not have the right tools to do a good job
 He does not have the necessary education or training to know how to
DIRFT
 Probably his seniors have trained him to do the wrong way
 He is not proud of the job he is doing
 He does not get appreciated when he does it right
  Caring for Small Things. Every employee should take care to maintain every
 Problems of not Doing it Right tool whatever may be its cost or importance.
 In some cases, not doing it right the first time may result in not doing  Communicate with Junior Employees. The senior management should
it right ever, thereafter establish a channel of communication with the junior employees in the
 Leads to unnecessary expenditure organization.
 Increase the failure costs  Keep on Accumulating. Accumulation of small gains needs unending
 Demotivates employees enthusiasm of every employee in the organization.
 Causes hassles to employees and customers 6. Ensure economic performance
 Bring down the reputation of the organization  Importance of Economic Performance. All TQM activities should lead to
 Leads to schedule slippages better economic performance in the long-run.
 Quality should Increase Productivity Also. The objective of continuous
quality improvements is to satisfy the customers.
Basic Requirements for DIRFT
i. Define the requirement for each employees  Talk about Success in Economic Performance.The aim should be to improve
ii. Provide the wherewithal to achieve the requirement and quality and productivity, thereby keeping the flas of the organization flying
high.
iii. Keep on motivating and encouraging the employees.
o Right the First Time and Every Time  Stakeholders will Understand Economic Better. Every organization should
make efforts to see that the organization is performing well, with regard to
o Set Right Goals
quality , employee motivation, satisfaction of the customer as well as in the
o Select Right Personnel
o Establish Right Processes economic front.
o Choose Durable Raw Materials 7. Management by Walking Around (MBWA) (Was postulated by Tom Peters)
 What is MBWA? One of the most effective tools of management and
o Choose Right Machines
leadership for the growth of the organization.
4. Continuous Preventive Action
 What is to be DONE during MBWA? The three major activities done together
Prevention is Better than Cure. There are two ways of handling a problem, one is to
cure it and the other is to prevent it. simultaneously during MBWA are ‘listening, teaching and facilitating’.
One Shot Prevention is not Good Enough. Preventive actions should be taken at  Barriers to Practicing MBWA. The problem occurs mainly because MBWA
appears to violate the chain of command.
periodic intervals.
5. Care for little things and accumulate gains. TQM is a continuous process  Advantages of MBWA. MBWA helps the organizations to consolidate the
talents, wisdom of all the employees, customers and suppliers.
improvement program and aims at one step at a time. Therefore, the management
should aim at scaling greater heights through small and continuous improvement in 8. Measure of Success. Measuring for success primarily involves, looking for,
every process. measuring and analyzing the feedback from customers, either internal or external.
 Measure of 3Ps.
Measure to Success
 Product Process

and under roof. The other extreme is buying everything from others and
putting them together and selling the assembled product.
II. Requirement for Virtual Enterprise
Personnel
a) Identify the most critical part/s. The first task is to identify the most critical
 PDSA for Measurement. PDSA Cycle by Deming, is an important tool for parts of a system to be manufactured.
any activity. b) Identify the other parts. The nest task is to identify all other items or
 Plan for Measuring Success. In the planning stage, the organization should materials, which will enable delivering a product or service.
identify the various measures for success. c) Develop/identify for the other parts. The task of the organization is to
Some of the Common Measures for service Industries are: identify good vendors and enter into agreements or contracts, so that they
 Planned delivery time and actual delivery time will be able to get the materials of the right specifications, just in time and
 Repeat customers with zero defects.
 Perception of the customers about quality d) Continuously increase sub-contracting. The aim of virtual corporations is to
 Perceprion amongst customers about competitors shed the unnecessary manufacturing activity for earning more profits.
 Productivity
 Revenue generated per employee
 Revenue vs. expenditure ratio
 Revenue on Investment
 Customer complaints
 Rejects in process
 Rejects at customers site

9. Never rest on laurels, continue to Improve

The Tale of Tortoise and Rabbit. No organization can afford to lose by resting on its
past laurels.
The Need to Improve Continously. An organization should aim at doubling the
turnover every two yearsm without additional manpower or machinery.

10. Build A Visual Organization. A smarter way of doing business is to create a near
virtual corporation.
I. Vertical Integration. There are two extremes of manufacturing. In the first
extreme, everything, from raw materials to the final product is manufactured