Definition:

Total Quality Management

• Total Quality Management (TQ, QM or TQM) and Six Sigma (6) are
sweeping “culture change” efforts to position a company for greater
customer satisfaction, profitability and competitiveness.

• TQ may be defined as managing the entire organization so that it excels

on all dimensions of products and services that are important to the
customer.

• We often think of features when we think of the quality of a product or

service; TQ is about conformance quality, not features.
 Total Quality Is…
• Meeting Our Customer’s Requirements

• Doing Things Right the First Time; Freedom from

Failure (Defects)

• Consistency (Reduction in Variation)

• Continuous Improvement

• Quality in Everything We Do
 A Quality Management System Is…

• A belief in the employee’s ability to solve

problems

• A belief that people doing the work are best able

to improve it

• A belief that everyone is responsible for quality

 EVOLUTION of TQM

• CRAFTSMEN & ARTISANS(eg. Artists,

Sculptors, working with metals & other
materials who were very Quality-conscious.
• TRADESMEN (eg.Masons,Carpenters etc.)
• ENGINEERING TRADES & PRACTICES
(eg.Foundry,Smithy, Die-making,Mould-
making,Stamping,Forging,Turning,Milling,
Drilling etc. )
 TQM Evolution

• Custom-built Articles/Products having considerable control

over Quality.

• Mass- Produced Products with less control over Quality

• Quality control Department in Factories.

• TQM-based Production facility – enhancing the

Organization through Quality techniques to better achieve
organization’s goals-eg. Productivity and Profitability with
min.wastage.
• ISO Quality Management Systems.
QUALITY IS ….the QUALIFIER!

• Doing it right first time and all the time. This

boosts Customer satisfaction immensely and
increases efficiency of the Business operations.
• Clearing the bar (ie. Specification or Standard
stipulated) Excellence that is better than a
minimum standard.
 Customer satisfaction
• Customer is the Boss or’King’
• Customer dictates the market trends and direction
• Customer not only has needs to be supplied( basic
performance functions)
• Also he ‘wants what he wants!’( additional features satisfy
him and influence his purchase decision)
• Hence the Suppliers and Manufacturers have to closely
follow at the heel of the customer.
Norman’s Customer satisfaction model

Quality Customer C,Q

 Customer Satisfaction

Quality Quality Product/ Customer Satisfaction

System Service

Customer Focus
 Customer Satisfaction Organisational Diagram

•
CUSTOMERS

Front-line Staff

Functional
Department
Staff
Sr.
Mgrs
CEO
 Teboul Model of Customer Satisfaction

Customer needs

Company
Product/Service
offer
 What is customer satisfaction?

• Is it due to Product quality?

• Is it due to pricing?
• Is it due to good customer service ?
• Is it due to company reputation?
• Is it something more?
 Customer types

• External and Internal customers

• External – current, prospective and lost customers
• Internal – Every person in a process is a customer of the
previous operation.( applies to
design,manufacturing,sales,supplies etc.) [Each worker
should see that the quality meets expectations of the next
person in the supplier-to-customer chain ]
• TQM is commitment to customer-focus - internal and
external customers.
 Customer/supplier chain

•
Outputs to
external customers
Inputs from
external customers

Internal customers
 Internal customer/Supplier relationships

• Questions asked by people to their internal

customers
• What do you need from me?
• What do you do with my output?
• Are there any gaps between what you need
and what you get?
• Good team-work and inter-Departmental
harmony is required. Also the leaders role in
supervising the internal customer-supplier
chain.
 TQM and customer quality percepts

• TQM is quality management and management of

quality – there is no full stop and no break in the
chain!
• Continuous process (quality) improvement is all
its about.
• Why? One important reason is the customer
quality level is not static and his expectations
keep changing and his demands too!
• Also plant process dynamics- how to achieve
maximum efficiency , optimizing cost and
performance in the process operations,
minimizing waste etc.
 User purchase perceptions-
from survey

• Performance
• Features
• Service
• Warranty
• Price
• Reputation
( refer pgs.72 and 73, Besterfield)
 Customer satisfaction/
dissatisfaction feedback

• Customer feedback has to be continuously sought and

monitored - not one-time only!( Pro-active! Complaints
are a reactive method of finding out there is a
problem)
• Customer feedback can be relayed to Mfgr.
• Performance comparison with competitors can be
known
• Customers needs can be identified
• Relative priorities of quality can be obtained from the
horses’ mouth!
• Areas for improvement can be noted.
 Customer feedback methods

• Comment cards enclosed with warranty card

when product is purchased.
• Customer survey and questionnaire
• Customer visits
• Customer focus groups
• Quarterly reports
• Toll-free phones
• e-mail, Internet newsgroups,discussion forums
• Employee feedback
• Mass customization.
 Customer feedback methods

• Comment cards enclosed with warranty card

when product is purchased.
• Customer survey and questionnaire
• Customer visits
• Customer focus groups
• Quarterly reports
• Toll-free phones
• e-mail, Internet newsgroups,discussion forums
• Employee feedback
• Mass customization.
 Service Quality
• (i )Organisation
• Identify each market
segment
• Write down the
requirements
• Communicate the
requirements
• Organise processes
• Organise physical spaces
 Service Quality

• (ii) Customer Care

• Meet the customer’s expectations
• Get the customer’s point of view
• Deliver what is promised
• Make the customer feel valued
• Respond to all complaints
• Over-respond to the customer
• Provide a clean and comfortable customer reception
area.
 Service Quality

• (iii) Communication
• Optimize the trade-off between time and
personal attention
• Provide pleasant , knowledgable and
enthusiastic employees
• Write documents in customer-friendly
language.
 Service Quality
• (iv) Front-line people
• Hire people who like people
• Challenge them to develop better methods
• Give them the authority to solve problems
• Serve them as internal customers
• Be sure they are adequately trained
• Recognise and reward performance
 Service quality
• (v)Leadership
• Lead by example
• Listen to the front-line people
• Strive for continuous process improvement
(Pgs. 88-93 Besterfield)
 Quality and customer
expectations

• Quality is also defined as excellence in the

product or service that fulfills or exceeds the
expectations of the customer.
• Though quality is an abstract perception,it has
a quantitative measure- Q= (P / E ) ,
where Q=quality, P= performance(as
measured by the Mfgr.), and E =
expectations( of the customer).
• Quality is not fine-tuning your product at the
final stage of manufacturing,before packaging
and shipping .
• Quality is in-built into the product at every stage
from conceiving –specification & design stages to
prototyping –testing and manufacturing stages.
• TQM philosophy and guiding principles
continuously improve the Organisation processes
and result in customer satisfaction.
 Customer Care
• Keep promises to customers
• Return customer calls promptly
• Allot staff to handle customer problems
• Treat customers with courtesy,respect and
professionalism always
• Evaluate customer satisfaction regularly
• Search for customer-related improvements
continuously
• Deliver Products/Service promptly and efficiently
• Give every customer complete and personal
attention.
 Customer Care

• Maintain a neat and clean appearance of self and

work-place,at all times
• Review and implement customer feedback and
suggestions into current procedures when needed
• Training and education to enhance job
performance and commitment to customer care
• Treat every customer as we would treat
ourselves. ( Pg. 90, Besterfield)