INTERNAL COMPONENT

OF
TOTAL QUALITY MANAGEMENT

SUBMITTED TO: - SUBMITTED BY:-

MR. NITIN MALHOTRA AADIL KAKAR

PRN - 15021021001

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Role Of Total Quality Management In
Growth Of Companies
INTRODUCTION TO TOTAL QUALITY MANAGEMENT

Total Quality Management is a management approach that originated in the 1950s and has steadily
become more popular since the early 1980s. Total Quality is a description of the culture, attitude
and organization of a company that strives to provide customers with products and services that
satisfy their needs. The culture requires quality in all aspects of the companys operations, with
processes being done right the first time and defects and waste eradicated from operations.

Total Quality Management, TQM, is a method by which management and employees can become
involved in the continuous improvement of the production of goods and services. It is a
combination of quality and management tools aimed at increasing business and reducing losses
due to wasteful practices.

CONTINUOUS IMPROVEMENT BY TQM

TQM is mainly concerned with continuous improvement in all work, from high level strategic
planning and decision-making, to detailed execution of work elements on the shop floor. It stems
from the belief that mistakes can be avoided and defects can be prevented. It leads to continuously
improving results, in all aspects of work, as a result of continuously improving capabilities, people,
processes, technology and machine capabilities.

Continuous improvement must deal not only with improving results, but also more importantly
with improving capabilities to produce better results in the future. The five major areas of focus for
capability improvement are demand generation, supply generation, technology, operations and
people capability.

A central principle of TQM is that people may make mistakes, but most of them are caused, or at
least permitted, by faulty systems and processes. This means that the root cause of such mistakes
can be identified and eliminated, and changing the process can prevent repetition.

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THE OBJECTIVE OF TOTAL QUALITY MANAGEMENT
Total Quality Management (TQM) is an organizational process that actively involves every
function and every employee in satisfying customers needs, both internal and external. TQM
works by continuously improving all aspect of work through structured control, improvement and
planning activities that are carried out in concern with guiding ideology that focuses on Quality
and Customer Satisfaction as the top priorities. There have been many arguments that TQM
succeeds only by incorporating a concern about quality for the customers throughout the
organization. The truth of this statement and those facts that disagree with this statement will be
look into and discuss in more detail to achieve the success of TQM. TQM recognizes that the
Customer is at the center of every activity. The customer may be external or internal. The key is to
determine the gap between what the customer needs and what the system delivers. Once the gap is
recognized, it would be systematically reduced and results in never-ending improvement in
customer satisfaction at every level. TQM depends on and creates a culture in an organization,
which involves everybody in quality improvement. Everyone in the company can affect quality but
must first realize this factor and have the techniques and tools, which are appropriate for
improving quality. TQM system considers the rewards and recognition to be critical to a company's
programme, particularly when greater involvement of staff is required. Positive reinforcement
through recognition and rewards is essential to maintain achievement and continuous improvement
through participative problem-solving projects.

THE QUALITY DELIVERY PROCESS

TQM is not just the awareness of quality for the customers. It demands the implementation of a
new system. Finally, the main objective of TQM may put the customer at the center of every
activity and consider the process as customer driven, but all other factors, which do not involve the
customers, have to be taken into consideration for the successful implementation of TQM.

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STRATEGIES USED IN TOTAL QUALITY MANAGMENT
Total Quality Management (TQM) is an integrative management philosophy for continuous
improvement of the quality of an organization's products and processes in order to meet or exceed
customer expectations. There are several TMQ strategies used to improve business management
systems. The nine most common TQM practices as:

1. Cross-functional product design

2. Process management

3. Supplier quality management

4. Customer involvement

5. Information and feedback

6. Committed leadership

7. Strategic planning

8. Cross-functional training

9. Employee involvement

The following sections describe some other important and widely used techniques that drew
inspiration from TQM in their focus on quality and control.

Six Sigma

Six Sigma drew inspiration from the quality improvement methodologies of preceding decades,
including quality control, TQM, and Zero Defects. It focuses on improving the quality of process
outputs by identifying and removing the causes of defects while minimizing the variability in
manufacturing and business processes Like TQM, the Six Sigma philosophy asserts that achieving
sustained quality improvement requires commitment from the entire organization, particularly top-
level management.

Just-in-Time (JIT)

The Just-in-Time (JIT) method is a production strategy for improving business return on
investment by reducing in-process inventory and associated carrying costs. JIT focuses on
continuous improvement to maximize an organization's return on investment, quality,
and efficiency. The JIT inventory system focuses on having "the right material, at the right time, at
the right place, and in the exact amount" and defines inventory as a cost factor.

JIT programs often include a focus on Total Quality Control. For example, when a process or parts
quality problem surfaces on Toyota's production line, the entire production line is slowed or even
stopped while the problem is dealt with. JIT must be organization-wide and consistent.

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Pareto Analysis

Pareto analysis is a statistical technique used to select a limited number of tasks that produce
significant overall effect. It uses the Pareto principle: most problems have a few key causes. Pareto
analysis also concludes that 80% of the result can be generated by focusing on 20% of the key
work.

Five Whys

The Five Whys is a question-asking technique used to explore the cause-and-effect relationships
underlying a particular problem. The primary goal of the technique is to determine the root cause
of a defect or problem, which points toward a process that is not working well or does not exist.
The technique was originally developed by Sakichi Toyoda and was used by Toyota Motor
Corporation as it evolved its manufacturing methodologies. It is now used within Kaizen
(continuous improvement), lean manufacturing, and Six Sigma.