2. TQM Definition
Total Quality Management (TQM) is a comprehensive
and structured approach to organizational management
that seeks to improve the quality of products and services
through ongoing refinements in response to continuous
feedback.
3. Basic Approach
TQM requires six basic concepts:
A commitment and involved management to provide long-term
top-to-bottom organizational support.
An unwavering focuses on the customer, both internally
and externally.
Effective involvement and utilization of the entire work
force.
4. Continuous improvement of the business and production
process.
Treating suppliers as partners.
Establish performance measures such as uptime, percent
nonconforming, absenteeism and customer satisfaction
should be determined for the process.
5. TQM
Analyzing the three words, we have:
Total-- Make up of the whole
Quality-- Degree of excellence a product or service
provides
Management-- Act, art, or manner of handling, controlling,
directing etc.
6. Benefits of TQM
Greater customer loyalty
Market share improvement
Higher stock prices
Reduced service calls
Higher prices
Greater productivity
7. TQM implementation
Begins with Sr. Managers and CEO’s
Timing of the implementation process
Formation of Quality council
Union leaders must be involved with TQM plans
implementation
Everyone in the organisation needs to be trained in quality
awareness and problem solving
Quality council decides QIP projects.
8. What is quality?
The Oxford American Dictionary defines quality as “a
degree or level of excellence.”
The definition of quality by the American National
Standards Institute (ANSI) and the American Society for
Quality Control (ASQC) is “the totality of features and
characteristics of a product or service that bears on its
ability to satisfy given needs.”
9. The 9 Dimensions of Quality
Performance: Primary product characteristics, such as the
brightness of the picture.
Features: Secondary characteristics, added features, such as
remote control.
Conformance: Meeting specifications or industry standards,
workmanship.
Reliability: Consistency of performance over time, average
time for the unit to fail.
Durability: Useful life, includes repair.
10. Service: Resolution of problems and complaint, ease of
repair
Reputation: Human-to-human interface, such as the
courtesy of the dealer.
Aesthetics: Sensory characteristics, such as exterior finish.
Response: Past performance and other intangibles, such as
being ranked first.
11. Quality statements
Vision statement – a clear declaration of what the
organization hopes to be tomorrow.
Mission statement – a statement of purpose –who we
are,who are our customers,what we do , and how we do it.
Quality policy – is a guide for everyone in the organization
,how they should provide products and services to the
customers.
12. CUSTOMER PERCEPTION OF
QUALITY
An American Society for Quality (ASQ) survey on end
user perceptions of important factors that influenced
purchases showed the following ranking:
Performance
Features
Service
Warranty
Price
Reputation
13. TRANSLATING NEEDS INTO
REQUIREMENTS
Translating needs into requirements is another vital part of
the quality management. Requirements management is
concerned with meeting the needs of end users through
identifying and specifying what they need.
Requirements may be focused on outcomes where the main
concern is to describe what is wanted rather than how it
should be delivered or requirements may be described in
any way between have an adequate understanding of what
the users need and how the market is likely to meet that
need.
14. CUSTOMER RETENTION
It means “retaining the customer” to support the business. It
is more powerful and effective than customer satisfaction.
For Customer Retention, we need to have both “Customer
satisfaction & Customer loyalty”.
The following steps are important for customer retention
1. Top management commitment to the customer
satisfaction.
2. Identify and understand the customers what they like
and dislike about the organization.
15. 3. Develop standards of quality service and performance.
4. Recruit, train and reward good staff.
5. Always stay in touch with customer.
6. Work towards continuous improvement of customer
service and customer retention.
7. Reward service accomplishments by the front-line staff.
8. Customer Retention moves customer satisfaction to the
next level by determining what is truly important to the
customers.