Total Quality Management
Module-II
Contents:
1. TQM Principles
2. Leadership
3. Strategic quality planning
4. Quality councils-employee involvement,
motivation,
empowerment
TQM Principles:
➢ “Quality management principles” are a set of fundamental beliefs, norms, rules and values that are accepted as true and
can be used as a basis for quality management.
➢ The QMPs can be used as a foundation to guide an organization’s performance improvement.
➢ They were developed and updated by international experts of ISO/TC 176, which is responsible for developing and
maintaining ISO’s quality management standards.
The seven quality management principles are:
➢ QMP 1 – Customer focus
➢ QMP 2 – Leadership
➢ QMP 3 – Engagement of people
➢ QMP 4 – Process approach
➢ QMP 5 – Improvement
➢ QMP 6 – Evidence-based decision making
➢ QMP 7 – Relationship management
QMP 1 – Customer focus:
➢ The primary focus of quality management is to meet customer requirements and to strive to exceed customer
expectations.
➢ Sustained success is achieved when an organization attracts and retains the confidence of customers and other
interested parties. Every aspect of customer interaction provides an opportunity to create more value for the
customer. Understanding current and future needs of customers and other interested parties contributes to
sustained success of the organization.
Key benefits:
▪ Increased customer value
▪ Increased customer satisfaction
▪ Improved customer loyalty
▪ Enhanced repeat business
▪ Enhanced reputation of the organization
▪ Expanded customer base
▪ Increased revenue and market share
QMP 2 – Leadership:
➢ Leaders at all levels establish unity of purpose and direction and create conditions in which people are engaged in
achieving the organization’s quality objectives.
➢ Creation of unity of purpose and direction and engagement of people enable an organization to align its strategies,
policies, processes and resources to achieve its objectives.
Key benefits
• Increased effectiveness and efficiency in meeting the organization’s quality objectives
• Better coordination of the organization’s processes
• Improved communication between levels and functions of the organization
• Development and improvement of the capability of the organization and its people to deliver desired results
QMP 3 – Engagement of people:
Competent, empowered and engaged people at all levels throughout the organization are essential to enhance its capability
to create and deliver value.
To manage an organization effectively and efficiently, it is important to involve all people at all levels and to respect them as
individuals. Recognition, empowerment and enhancement of competence facilitate the engagement of people in achieving
the organization’s quality objectives.
Key benefits
• Improved understanding of the organization’s quality objectives by people in the organization and increased motivation to
achieve them
• Enhanced involvement of people in improvement activities
• Enhanced personal development, initiatives and creativity
• Enhanced people satisfaction
• Enhanced trust and collaboration throughout the organization
• Increased attention to shared values and culture throughout the organization
QMP 4 – Process approach:
Consistent and predictable results are achieved more effectively and efficiently when activities are understood and managed
as interrelated processes that function as a coherent system.
The quality management system consists of interrelated processes. Understanding how results are produced by this system
enables an organization to optimize the system and its performance.
Key benefits:
• Enhanced ability to focus effort on key processes and opportunities for improvement
• Consistent and predictable outcomes through a system of aligned processes
• Optimized performance through effective process management, efficient use of resources, and reduced cross-functional
barriers
• Enabling the organization to provide confidence to interested parties as to its consistency, effectiveness and efficiency
QMP 5 – Improvement
Successful organizations have an ongoing focus on improvement.
Improvement is essential for an organization to maintain current levels of performance, to react to changes in its
internal and external conditions and to create new opportunities.
Key benefits
• Improved process performance, organizational capabilities and customer satisfaction
• Enhanced focus on root-cause investigation and determination, followed by prevention and corrective actions
• Enhanced ability to anticipate and react to internal and external risks and opportunities
• Enhanced consideration of both incremental and breakthrough improvement
• Improved use of learning for improvement
• Enhanced drive for innovation
QMP 6 – Evidence-based decision making
Decisions based on the analysis and evaluation of data and information are more likely to produce desired results.
Decision making can be a complex process, and it always involves some uncertainty. It often involves multiple types
and sources of inputs, as well as their interpretation, which can be subjective. It is important to understand cause-
and-effect relationships and potential unintended consequences. Facts, evidence and data analysis lead to greater
objectivity and confidence in decision making.
Key benefits
• Improved decision-making processes
• Improved assessment of process performance and ability to achieve objectives
• Improved operational effectiveness and efficiency
• Increased ability to review, challenge and change opinions and decisions
• Increased ability to demonstrate the effectiveness of past decisions
QMP 7 – Relationship management
For sustained success, an organization manages its relationships with interested parties, such as suppliers.
Interested parties influence the performance of an organization. Sustained success is more likely to be achieved when
the organization manages relationships with all of its interested parties to optimize their impact on its performance.
Relationship management with its supplier and partner networks is of particular importance.
Key benefits
• Enhanced performance of the organization and its interested parties through responding to the opportunities and
constraints related to each interested party
• Common understanding of goals and values among interested parties
• Increased capability to create value for interested parties by sharing resources and competence and managing
quality-related risks
• A well-managed supply chain that provides a stable flow of goods and services
