Presentation on theme: "Total Quality Management - TQM"— Presentation transcript:
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 failureMeasurement of Quality
3 Total Quality Management TQM is a philosophy which applies equally to all parts of the organization.TQM can be viewed as an extension 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 :1992Total quality management. Guide to management principles.BS :1994,ISO :1993Total quality management. Guidelines for quality improvement.
6 Elements of TQM Leadership Employee involvement Top management vision, planning and support.Employee involvementAll employees assume responsibility for the quality of their work.Product/Process ExcellenceInvolves 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 qualitySpecific characteristics of a product that determine its value in the marketplace.Conformance qualityThe 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 "The Simple Process" Process ControlsProcessOutputsInputsResources(Source: BS 7850: 1992, “Total Quality Management”)
10 Changing Role of the Process Owner As customerProcess ownerAs supplierProcess 1InputOutputOutput tocustomerInput fromsupplier(Source: BS 7850: 1992, “Total Quality Management”)
11 TQM & organizational Cultural Change Traditional ApproachLack of communicationControl of staffInspection & fire fightingInternal focus on ruleStability seekingAdversarial relationsAllocating blameTQMOpen communicationsEmpowermentPreventionExternal focus on customerContinuous improvementCo-operative relationsSolving problems at their roots
12 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 serviceGapGapCustomers’ expectations for the product or serviceCustomers’ expectations of the product or serviceCustomers’ perceptions of the product or serviceCustomers’ perceptions of the product or serviceCustomers’ perceptions of the product or serviceCustomers’ expectations for the product or serviceExpectations > perceptionsExpectations = perceptionsExpectations < perceptionsPerceived quality is poorPerceived quality is goodSource: Slack et al. 2004
13 Additional views of Quality in Services Technical Quality versus Functional QualityTechnical 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 PerceptionsCustomers’ 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 A “Gap” model of Quality Customer’s expectations concerning a product or serviceCustomer’s perceptions concerning the product or servicePreviousExperienceWord of mouth communicationsImage of product or serviceCustomer’s own specification of qualityManagement’s concept of the product or serviceorganization’s specification of qualityThe actual product or serviceGap 1Gap 2Gap 3Gap 4A “Gap” model of QualitySource: 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 FailuresLack 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 strategiesQuality-related decisions may not be tied to market performanceFailure to carefully plan a program
19 PDCA Cycle repeated to create continuous improvement PerformancePlanDoActCheck“Continuous”improvementTime
20 Recognizing and rewarding Quality Promotion of high quality goods and servicesMalcolm 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 (www.quality.nist.gov)
22 Continual improvement of the quality management system Customers(and otherinterestedparties)Customers(and otherinterestedparties)ManagementresponsibilityMeasurement, analysis and improvementResourcemanagementSatisfactionRequirementsInputOutputProductrealisationKey:Value adding activityinformation flowProductSource: BS EN ISO 9001:2000