{"id":245,"date":"2018-10-18T06:04:34","date_gmt":"2018-10-18T06:04:34","guid":{"rendered":"http:\/\/mgmtp04.epgpbooks.inflibnet.ac.in\/?post_type=chapter&p=245"},"modified":"2018-10-18T06:57:47","modified_gmt":"2018-10-18T06:57:47","slug":"improving-quality-through-total-quality-management","status":"publish","type":"chapter","link":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp04\/chapter\/improving-quality-through-total-quality-management\/","title":{"rendered":"Improving Quality through Total Quality Management"},"content":{"raw":"
<\/div>\r\n
\r\n\r\n \r\n\r\nThe module shall discuss various aspects of TQM, including:\r\n\r\n \r\n\r\n1) Understanding the term \u201cQuality\u201d\r\n\r\n2) Understanding towards the basic concept of TQM using a conceptual framework;\r\n\r\n3) Improving Quality using TQM;\r\n\r\n4) Investigate \u00a0the \u00a0role \u00a0of \u00a0new \u00a0manufacturing \u00a0concepts \u00a0and \u00a0technologies \u00a0in \u00a0the development (design and implementation) of TQM; and<\/span>\r\n\r\n5) Develop a strategic framework for the development and implementing processes of TQM.<\/span>\r\n\r\n<\/div>\r\n
\r\n\r\n \r\n\r\n1. Introduction\u00a0<\/strong>\r\n\r\n \r\n

The term quality for a product \/or service is the value imparts to society from the time the product is shipped (Taguchi and Clausing, 1990). <\/strong>The total quality concept has been receiving increasing attention in the literature of operations management and strategic management (Crosby, 1979; Feigenbaum, 1983; Juran, 1979; Oakland, 1989). <\/strong>Product\/ service quality is increasingly cited as a primary strategic variable for effectively competing in the global marketplace and certainly increase the sales and profit margins through better products and customer satisfaction.<\/p>\r\n \r\n

In recent times, Concept of TQM has received considerable global attention during the last few years. Conceptually, Total quality management (TQM) is the management philosophy that seeks continuous improvement in the quality of performance of all set of techniques, procedures, processes, products, and services of an organization. It emphasizes the understanding of variation, the importance of measurement, the role of the customer and the involvement of employees at all levels of an organization in pursuit of such improvement (Joshi et al, 2015). <\/strong>Primarily, TQM was developed and adopted by Japanese business firms. In early 1960s, Feigenbaum introduced TQM Concept to western firms. Many companies have successfully implemented the TQM philosophy and have attained a high reputation for offering high quality goods with low process cost. Earlier to TQM, the idea of Quality Control Circles (QCC) was adopted to deal with quality related problems. However, TQM is concerned with a total system aspect of organizational based changes, and is more strategic in nature. (Gunasekaran et al., 1998). <\/strong>Generally, 85 percent of quality related problems arise from the system and remaining 15 percent of the problems are through workers' actions<\/p>\r\n \r\n

(Madison, 2005). <\/strong>There exist two major quality concerns, caused by system and caused by individual workers <\/span>(Deming, 1982).<\/strong><\/p>\r\n \r\n

Total quality Management (TQM) is a term used to denote a management strategy for producing quality goods and services with minimum cost of production. In other words, TQM adopts an organized participation of involved parties to achieve improvements in production processes and products. This indicates that TQM operates both at the strategy formulation level and operational decision processes at all levels of organization. The concept of total quality encompasses an integrated view on all activities in a company. This leads to the definition, design, production and delivery of products and services which meet the demands and expectations of the customers thus providing satisfaction to them.<\/span><\/p>\r\n\r\n<\/div>\r\n

\r\n\r\n \r\n\r\nSeven Key Principles of TQM (Fisher, 1992), <\/strong>includes:<\/em>\r\n\r\n \r\n\r\n(1)\u00a0 Is a management philosophy<\/em>;\r\n\r\n(2)\u00a0 Seeks continuous improvement <\/em>in all processes, products, and services;\r\n\r\n(3)\u00a0 Requires the understanding of variation<\/em>;\r\n\r\n(4)\u00a0 Emphasizes the importance of measurement<\/em>;\r\n\r\n(5)\u00a0 Requires an understanding of the role of the customer <\/em>(and the supplier);\r\n\r\n(6)\u00a0 Emphasizes the involvement of employees <\/em>at all levels;\r\n\r\n(7)\u00a0 Recognizes <\/em>that management plays the key role.\r\n\r\n \r\n

2.\u00a0Define Quality: <\/strong>The term quality can be determine using\u00a0\u00a0 five approaches to define quality (Garvin, 1984)<\/strong>:<\/p>\r\n \r\n

i.<\/strong> Philosophic concept of \u201cinnate excellence''- which is both absolute and universally recognized through experience (transcendent approach).<\/strong><\/p>\r\n

ii.\u00a0<\/strong>The Concept focuses on the quantity of some ingredient or attribute possessed by a product. Like the amount of cream in ice cream, it can be assessed objectively and is based on more than preferences alone (Product-based approach)<\/strong><\/p>\r\n

iii.\u00a0<\/strong>Based on the premise that quality\u00a0 \u201clies in the eyes of the beholder''. It is subjective and motivated and rooted in consumer preferences (user-based approach)<\/strong><\/p>\r\n

iv.\u00a0<\/strong>The focuses on engineering and manufacturing practices. It identifies quality as \u201cconformance to requirements'', and it is equated with meeting specifications or making a product right the first time <\/span>(manufacturing-based approach).<\/strong><\/p>\r\n

v.\u00a0<\/strong>Defines quality in terms of costs and prices. Quality provides performance at an acceptable price. The phrase \u201caffordable excellence'' summarizes the dilemma. <\/span>(Value-based approach)<\/strong><\/p>\r\n\r\n<\/div>\r\n

\r\n\r\n \r\n\r\nFigure 2-1 Depict the various approaches on Quality. <\/strong>(Source: Garvin, 1984<\/em>)\r\n\r\n \r\n\r\n\"\"\r\n\r\n<\/div>\r\n
\r\n\r\n \r\n

Further, In another study Garvin (1987) has segmented quality into eight component, listed as following:<\/p>\r\n \r\n

(1)\u00a0Performance <\/em><\/strong>refers to the operating characteristics of the item;<\/p>\r\n

(2)\u00a0Reliability <\/em><\/strong>reflects the probability of a product being available for use or failing within a specific period of time;<\/p>\r\n

(3)\u00a0<\/span>Serviceability <\/em><\/strong>is the speed, accessibility, and ease of repairing the item or having it repaired;<\/span><\/p>\r\n

(4)\u00a0<\/span>Conformance <\/em><\/strong>is the degree to which delivered products meet the pre established standards;<\/span><\/p>\r\n

(5)\u00a0<\/span>Durability <\/em><\/strong>measures\u00a0 the projected use available\u00a0 from the product \u00a0over its intended operating cycle before it deteriorates;<\/span><\/p>\r\n

(6)\u00a0<\/span>Secondary characteristics<\/em><\/strong>, which supplement the product's basic functioning;<\/span><\/p>\r\n

(7)\u00a0<\/span>Aesthetics <\/em><\/strong>reflects personal judgement of how a product looks, feels, sounds, tastes, or smells; and<\/span><\/p>\r\n

(8)\u00a0<\/span>Perceived quality <\/em><\/strong>is closely identified with the reputation of the producer.<\/span><\/p>\r\n\r\n<\/div>\r\n

\r\n\r\n\"\"\r\n

Figure 2-2. Various attributes of Quality. <\/strong>(Source: Garvin, 1987)<\/p>\r\n \r\n\r\n3. Conceptual framework for TQM\u00a0<\/span><\/strong>\r\n\r\n \r\n

Total Quality Management is a system introduced by Japanese, for integrating quality technologies into various functional departments (engineering, production, sales, service etc) to achieve customer satisfaction''. Total quality control becomes a management philosophy, pervades the entire organization, and sets the direction for providing perfect quality goods and services to the industrial customer <\/span>(Ishikawa ,1985)<\/strong>.TQM offers a variety of tangible and intangible benefits which amount to cost savings for the employer and greater job satisfaction for the employee including: increased job knowledge, improved productivity, reduced waste, errors and product recalls, and improved communication.<\/span><\/p>\r\n\r\n<\/div>\r\n

\r\n\r\n\"\"\r\n\r\n<\/div>\r\n
\r\n

Figure 3-1: Conceptual Framework (Adopted from, Ross, 1988; Conway, 1992; Gunashekran, 1998)<\/strong><\/p>\r\n \r\n

Figure 3-1 depicts the conceptual framework for TQM, Considering the role of each functional department in improving quality from the perspective of total management, quality is everybody's responsibility (Gunashekaran, 1998)<\/strong><\/p>\r\n \r\n

The information flow in the whole TQM Framework shows the relationship between customer and company, and company with suppliers. The supplier is responsible to deliver the items (Product\/ Service to the company\/Service\/ Manufacturing systems. The system uses the items either in the assembly or for further processing to produce final goods to the customers Figure 3-2 exhibit the information flow in the TQM. This kind of information loop acts as a nerve of the integrated quality management activities for achieving TQM.<\/span><\/p>\r\n\r\n<\/div>\r\n

<\/div>\r\n
\r\n\r\n\"\"\r\n

Figure 3-2 Information flow in the TQM\u00a0<\/strong><\/p>\r\n \r\n\r\n4.\u00a0<\/strong>Improving Quality using TQM<\/strong>\r\n\r\n \r\n

This section presents various practices performed by various countries to improve quality through Total Quality Management.<\/p>\r\n \r\n

TQM started in Japan in the early 1980s and spread to the Western countries and Australia. In the 1990s, TQM topics became very important, and many companies were looking to apply TQM and use it to develop and improve their businesses (Pourrajab et al., 2012).<\/strong><\/p>\r\n \r\n

Japanese firms<\/strong>, follows the concept of TQM in identical to Total Company Management. Conceptually, the total company concept includes a wide range of activities starting from the\u00a0design of the product to the final satisfactory acceptance by the customer <\/span>(Sohal et al., 1990).<\/strong><\/p>\r\n \r\n

Western firms<\/strong>, emphasized on the Continuous Quality improvement using systematic approach that significantly improve the quality and costs, especially in the manufacturing setups. <\/span>(Haworth, 1991). <\/strong>Later, in 1990s, A full understanding of the process, connected to careful selection of the most suitable approaches leads to the implementation of the TQM concept. The requirements of customers will act as input to all functional areas as represented in the conceptual model. The output of one functional department may act as input to one or more other functional departments. This view of quality demands that the quality of products and services can be achieved by total quality management involving all the people in the manufacturing system. Realizing the importance of the TQM concept in improving quality and productivity, an attempt has been made in this study to discuss the various aspects of TQM.<\/span><\/p>\r\n\r\n<\/div>\r\n

\r\n\r\n \r\n\r\n5. Components of TQM\u00a0<\/strong>\r\n\r\n \r\n

TQM being a system that can cope with all of these challenges to resolve all health organization\u2019s problems. Total Quality Management is also known as continuous quality improvement (CQI), Quality Improvement (QI), Quality Management (QM) and Total Quality Control (TQC). Key principles of TQM include the following: customer focus, obsession with quality, scientific approach, long-term commitment, teamwork, and continual improvement systems, education, and training, freedom through control, unity of purpose and employee involvement and empowerment.<\/p>\r\n \r\n

The Total Quality Management (TQM) framework can be explained by reference to each of the three components \u2013<\/p>\r\n \r\n\r\n(a). \u201cTotal\u201d, <\/strong>involvement of all members of organization with everyone banding together to align all activities within the organization with full inclusiveness and assurance for overall productivity.\r\n\r\n \r\n

(b). <\/span>\u201cQuality\u201d, <\/strong>the standard of something as measured against other things of a similar kind; the degree of excellence of something.<\/span><\/p>\r\n \r\n

(c). <\/span>\u201cManagement\u201d<\/strong>, is the art of getting things done. For Total Quality assurance, effective management is required to ensure for the flawless processes and overall effectiveness.<\/span><\/p>\r\n\r\n<\/div>\r\n

\r\n\r\n \r\n\r\nThe overall perspective of TQM should covered are explained in Table 5-1.\r\n\r\n \r\n

Table 5-1: Overall Perspective of Total Quality Management (TQM)<\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
<\/td>\r\nCustomer Focus<\/strong><\/td>\r\nContinuous Improvement<\/strong><\/td>\r\nTeamwork<\/strong><\/td>\r\n<\/tr>\r\n
Principles<\/strong><\/td>\r\nParamount importance of providing products and services that fulfill customer needs; requires \u00a0organization wide focus on customers<\/td>\r\nConsistent customer satisfaction can be attained only through relentless improvement of processes that create products and services<\/td>\r\nCustomer focus and continuous improvement are best achieved by collaboration throughout an organization as well as with customers and suppliers.<\/td>\r\n<\/tr>\r\n
Practices<\/strong><\/td>\r\nDirect customer contact collecting information about customer needs<\/td>\r\nProcess analysis<\/td>\r\nSearch for arrangements that benefits all units involved in a process<\/td>\r\n<\/tr>\r\n
<\/td>\r\nUsing information in design and deliver\u00a0products and services<\/td>\r\nReengineering<\/td>\r\nFormation of various types of teams<\/td>\r\n<\/tr>\r\n
Problem Solving<\/td>\r\nGroup Skills training<\/td>\r\n<\/tr>\r\n
Plan\/do\/check\/act<\/td>\r\n<\/td>\r\n<\/tr>\r\n
Techniques<\/strong><\/td>\r\nCustomer surveys and focus groups<\/td>\r\nFlowcharts<\/td>\r\nOrganizational Development methods such as the nominal group technique<\/td>\r\n<\/tr>\r\n
<\/td>\r\nQuality Function deployment (Translates customer information into product specifications)<\/td>\r\nPareto Analysis<\/td>\r\nTeam -building methods (e.g. Role clarification and group feedback)<\/td>\r\n<\/tr>\r\n
Statistical Process Control<\/td>\r\n<\/tr>\r\n
Fishbone diagrams<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

(Source: Gunashekaran, 1998; Joshi et. al., 2015<\/strong>)<\/p>\r\n5-1. Animation: Understanding Total Quality Management (U-tube)\u00a0<\/span>https:\/\/www.youtube.com\/watch?v=RmK88P6X<\/a>ojo<\/span>\r\n\r\n \r\n\r\n<\/div>\r\n

\r\n\r\n \r\n\r\n6. Principles of TQM\u00a0<\/strong>\r\n\r\n \r\n

While the principles of total quality may appear in different forms, those developed by the British Quality Foundation represent the core of most TQM initiatives (Choppin, 1995). <\/strong>These are set out as 16 principles with alternative terms\/words\/concepts presented in this fashion\/way (see Table 6-1).<\/p>\r\n \r\n

Table 6-1: Principles of Total Quality Management (TQM)<\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Principle<\/strong><\/td>\r\nDefinition<\/strong><\/td>\r\n<\/tr>\r\n
Highest Priority<\/td>\r\nTotal quality must overtly be the highest priority of the organization\/ company\/individual<\/td>\r\n<\/tr>\r\n
Quality definition<\/td>\r\nAny definition of quality must include meeting\/satisfying\/conforming to agreed\/negotiated customer needs\/requirements\/wants\/expectations<\/td>\r\n<\/tr>\r\n
Customer definition<\/td>\r\nThe concept of customers includes investors\/employees\/stakeholders\/ suppliers\/the community \u00a0and every interpersonal relationship<\/td>\r\n<\/tr>\r\n
Customer satisfaction<\/td>\r\nLong-term satisfaction of customer needs will be an aim of any total quality organization.<\/td>\r\n<\/tr>\r\n
Aim<\/td>\r\nA \u00a0total \u00a0quality \u00a0organization \u00a0will \u00a0have \u00a0a \u00a0clearly \u00a0stated, \u00a0widely understood and generally accepted direction\/aim.<\/td>\r\n<\/tr>\r\n
Communication<\/td>\r\nA total quality organization will openly and clearly communicate its principles\/beliefs\/values\/mission statement\/policy for quality.<\/td>\r\n<\/tr>\r\n
Ethos<\/td>\r\nTotal quality management embodies the values\/beliefs\/ethos of the organization and, thus, total quality is intrinsic to every activity, decision and action.<\/td>\r\n<\/tr>\r\n
Values<\/td>\r\nThe \u00a0highest \u00a0levels \u00a0of \u00a0integrity, \u00a0honesty, \u00a0trust \u00a0and \u00a0openness \u00a0are essential ingredients of total quality management.<\/td>\r\n<\/tr>\r\n
Mutual respect and benefit<\/td>\r\nThere is an implicit mutual respect of all stakeholders involved with a total quality organization, which assumes that long-term business is intended to be mutually beneficial to all concerned.<\/td>\r\n<\/tr>\r\n
Health and safety<\/td>\r\nHealth, safety and environmental issues have a high priority within a total quality organization since the welfare of all investors\/employees\/ suppliers\/the community, as stakeholders in the enterprise, is intrinsic to the future wellbeing of the organization<\/td>\r\n<\/tr>\r\n
Commitment<\/td>\r\nLeadership of total quality management stems from the top of the organization and enlists individual and team commitment throughout<\/td>\r\n<\/tr>\r\n
Participation and ownership<\/td>\r\nTotal quality offers each individual the opportunity to participate in, and to feel ownership of his\/her activities, and jointly to share a sense\u00a0of ownership for the success of the entire organization<\/td>\r\n<\/tr>\r\n
Continuous improvement<\/td>\r\nTotal quality management involves continuous and measurable improvement at all levels of the organization, ranging from company performance to individual employee performance, such that continuous \u00a0process \u00a0improvement, \u00a0forever, becomes \u00a0an \u00a0essential ingredient of success<\/td>\r\n<\/tr>\r\n
Performance<\/td>\r\nTotal quality management requires consistent\/predictable\/accurate\/ precise performance to high standards in all areas of the organization, thus measurement, assessment and auditing are common TQM activities<\/td>\r\n<\/tr>\r\n
Resources<\/td>\r\nAn aim of every total quality organization is to use resources better, to achieve greater success, financial and\/or otherwise<\/td>\r\n<\/tr>\r\n
Investment<\/td>\r\nTotal quality management will always require sufficient\/appropriate investment to ensure that planned activity can occur<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n
\r\n

(Source: Choppin, 1995)<\/p>\r\n \r\n\r\n7.\u00a0<\/strong>History and important discoveries<\/strong>\r\n\r\n \r\n

The roots of Total Quality Management (TQM) can be traced back to early 1920s when statistical theory was first applied to product quality control. This concept was further developed in Japan in the 40s led by Americans, such as Deming, Juran and Feigenbaum. The focus widened from quality of products to quality of all issues within an organization \u2013 the start of TQM.<\/p>\r\n \r\n

Following are some of the major discoveries \/ history of Total Quality Management, from inspection to business excellence.<\/p>\r\n\r\n