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Total Quality Management
Unit: 1
Introduction to Quality
Concepts
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Total Quality Management (TQM): Principles, Practices, and Elements, Lecture notes of Total Quality Management (TQM)
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Total Quality Management
Unit: 1
Introduction to Quality
Concepts
Contents of the unit
Definitions of Quality; Benefits of Quality; Total Quality Management; Principles of TQM; Stages in the evolution of quality; Approaches to TQM; Manufacturing and service dimensions of quality; Traditional vs. Modern Quality; Levels of TQM
TQM Concept
▪ Satisfy Customers expectations
▪ Retain customers loyalty
▪ Survival
▪ Long-term revenue and profitability
TQM Concept
TQM?
▪ Management and employee involved in continuous
improvement of production, products and services.
▪ To increase business profit and to reduce losses due to
wasteful practices
Evolution of Quality Management
▪ 1900 ’s F.W.Taylor, the ‘Father of Scientific Management’
emphasised on quality by including inspection.
▪ 1924 , W.Shewhart introduced statistical control chart to
monitor production.
▪ 1930 , H.F.Dodge & H.G.Roming introduced tables for
acceptance sampling etc.
▪ World War II caused dramatic increase in emphasis on
quality control.
▪ US Universities started training engineers in industries in
the use of statistical sampling techniques and professional
quality organisations such as ASQC.
▪ During 1950 s quality movement evolved into quality
assurance.
▪ W.Edwards Deming introduced SQC methods to
Japanese's manufactures to help them rebuild their
manufacturing base and enable them to compete in world
markets.
▪ In 1970 s quality assurance methods were used in services
such as government operations, health care, banking etc.
▪ Then in 1972 there was a dramatic shift from quality
assurance to strategic approach to quality.
▪ Concept of reactive approach (finding & correcting defects)
changed to pro active approach (preventing defects & re-
occurring) came into picture.
Quality Revolution in US
▪ The decade of 1980 s was a period of remarkable change and growing
awareness of quality by consumers, industry and the government.
▪ During 1950 s and 1960 s made in Japan was associated with inferior
products, US consumers purchased domestic goods and accepted their quality without question.
▪ During 1970 s increased global competition and the appearance of high
quality products in the market let US consumers to consider their purchasing decision more carefully.
▪ One of the most influential individual in US quality revolution was
W.Edwards Deming. His principles and methods where applied three decades earlier in Japan so now US companies started seeking help from his leadership to revolutionize the major companies.
▪ In 1985 NASA announced an excellence award for quality and
productivity. From late 1980 s and through 1990 s interest in quality grew at unprecedented rate. By 1989 , Florida Power and Light was the first non Japanese company to be awarded Japans coveted Deming Prize for quality.
Quality Movement in Japan
▪ During world war II, the Japanese economy was completely disrupted
and Japan was in desperate conditions.
▪ The first task after war was to restore industrial production.
▪ Before war , Japan was known as exporters of cheap goods and poor
quality.
▪ Then to survive Japan reversed its old policy and decided to establish a
new image and reputation for exports of high quality goods at low price.
▪ In 1950 through efforts of Dr. Edward Deming his SQC approach was
introduced in Japan and was taken up effectively by engineers and plant managers in top management industries.
▪ Quality circle has developed and is gaining strength in Japan more than
in any other country bringing continues improvement of quality and lowering the cost Japanese goods in both domestic and export markets.
▪ The rate of growth increased to 9 to 10 %.
▪ From 1950 to 1970 in this course of quality improvement in Japan per
capita income has increased roughly by four times.
Quality Movement in India
▪ Quality has been a tradition in India and monuments, relics, handicrafts,
gems, jewelry and craftsmanship has woven quality into our heritage.
▪ But while quality was a way of managing business in the US and Japan
in the 1950 s, it was not so in India.
▪ The quality movement was consolidated in 1980 s in Indian industries to
bring about a synergy of resources by CII.
▪ Walter Shewart father of statistical quality control visited India for a
short period of 3 months during 1947 - 48 and initiated SQC movement through visits to factories, personal discussions and lecturers.
▪ Few companies began to set up ‘Quality improvement Teams’ for
setting the path for continuous improvement.
▪ CII set up TQM division with help of 21 companies who agreed to
support the cause by pooling in resources and pledging to start the journey of TQM.
▪ The year 1987 brought ISO 9000 standards into reality and visible
strategies emerged from European market to set a global trend towards standardizing and certifying Quality systems. CII organized training courses for ISO 9000 in 1989.
▪ Two years latter, 1991 the first company got certified to ISO 9000.
▪ From there onwards the movement has gathered momentum and today
more than 500 companies have secured ISO 9000 certification.
▪ Today TQM has become a thrust area in quality movement as it was
realized that through ISO 9000.
▪ CII worked with Government of India to initiate a drive to create an
awareness on quality and customer orientation in state and central Government Departments.