Total Quality Management - TQM

1. Total Quality Management - TQM The quality journey continues…….. Author: Dr Rhys Rowland-Jones

2. Session Plan • Introduction to concepts of TQM • Standards and TQM • TQM Reasons for failure • Measurement of Quality

3. Total Quality Management • TQM is a philosophy which applies equally to all parts of the organization. • TQM can be viewed as anextension of the traditional approach to quality. • TQM places the customer at the forefront of quality decision making. • Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality. • All staff are empowered.

4. Total Quality Management Doing things right….. ….FIRST time. Internetix (2005)

5. British Standards on TQM BS 7850-1:1992 • Total quality management. Guide to management principles. BS 7850-2:1994, ISO 9004-4:1993 • Total quality management. Guidelines for quality improvement.

6. Elements of TQM • Leadership • Top management vision, planning and support. • Employee involvement • All employees assume responsibility for the quality of their work. • Product/Process Excellence • Involves the process for continuous improvement.

7. Elements of TQM • Continuous Improvement • A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality. • Customer Focus on “Fitness for Use” • Design quality • Specific characteristics of a product that determine its value in the marketplace. • Conformance quality • The degree to which a product meets its design specifications.

8. A fundamental concept of TQM from BS 7850 - a ‘Process’ • “A set of inter-related resources and activities which transform inputs into outputs.” (ISO 8402). • “Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization.” (BS 7850)

9. Controls Outputs Inputs Process Resources "The Simple Process" (Source: BS 7850: 1992, “Total Quality Management”)

10. Process 1 Input from supplier As customer Process owner Process 1 Input Output As supplier As customer Process owner Output to customer As supplier Changing Role of the Process Owner (Source: BS 7850: 1992, “Total Quality Management”)

11. TQM & organizational Cultural Change Traditional Approach Lack of communication Control of staff Inspection & fire fighting Internal focus on rule Stability seeking Adversarial relations Allocating blame TQM Open communications Empowerment Prevention External focus on customer Continuous improvement Co-operative relations Solving problems at their roots

12. Gap Gap Perceived quality is poor Perceived quality is good Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service Customers’ expectations for the product or service Customers’ perceptions of the product or service Customers’ expectations of the product or service Customers’ perceptions of the product or service Customers’ perceptions of the product or service Customers’ expectations for the product or service Expectations > perceptions Expectations = perceptions Expectations < perceptions Source: Slack et al. 2004

13. Additional views of Quality in Services • Technical Quality versus Functional Quality • Technical quality — the core element of the good or service. • Functional quality — customer perception of how the good functions or the service is delivered. • Expectations and Perceptions • Customers’ prior expectations (generalized and specific service experiences) and their perception of service performance affect their satisfaction with a service. • Satisfaction = (Perception of Performance) – (Expectation)

14. Image of product or service Word of mouth communications Previous Experience Customer’s perceptions concerning the product or service Customer’s expectations concerning a product or service Gap 4 Customer’s own specification of quality The actual product or service Gap 1 organization’s specification of quality Management’s concept of the product or service Gap 3 Gap 2 A “Gap” model of Quality Source: Parasuraman, Zeithman and Berry. 1985

15. Continuous Improvement • Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. • Kaizen: Japanese word for continuous improvement.

16. Implementing TQM • Successful Implementation of TQM • Requires total integration of TQM into day-to-day operations. • Causes of TQM Implementation Failures • Lack of focus on strategic planning and core competencies. • Obsolete, outdated organizational cultures.

17. Obstacles to Implementing TQM • Lack of a company-wide definition of quality. • Lack of a formalized strategic plan for change. • Lack of a customer focus. • Poor inter-organizational communication. • Lack of real employee empowerment. • Lack of employee trust in senior management. • View of the quality program as a quick fix. • Drive for short-term financial results. • Politics and turf issues.

18. Some criticisms of TQM • Blind pursuit of TQM programs • Programs may not be linked to strategies • Quality-related decisions may not be tied to market performance • Failure to carefully plan a program

19. PDCA Cycle repeated to createcontinuous improvement Performance Plan Do Act Check “Continuous” improvement Time

20. Recognizing and rewarding Quality • Promotion of high quality goods and services • Malcolm Baldrige National Quality Award (MBNQA) (United States) • Deming Prize (Japan) • European Quality Award (European Union) • ISO9000 certification

21. The integrated framework of the Baldrige Award criteria Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)

22. Continual improvement of the quality management system Customers (and other interested parties) Customers (and other interested parties) Management responsibility Measurement, analysis and improvement Resource management Satisfaction Requirements Input Output Product realisation Product Key: Value adding activity information flow Source: BS EN ISO 9001:2000

23. Overview of the EFQM Excellence Model

24. Quality Award common elements • All take holistic approach • Customers/people • Measurable characteristics • Visible • Basis taken from TQM

25. Summary • TQM – a way of working • Involves everyone • High prominence on ‘customer’ • Awards based upon TQM