Total Quality Management (TQM)

• Total Quality Management (TQM) is management technique where employees continuously improve their ability to provide on-demand, high-value products and services for customers

What Total Quality Management (TQM) Implies

• "Total" indicates all employees are obligated to improve operations from development to fulfillment.
• "Management" suggests this effort should be focused with leadership providing funding, training, staffing, and clear goals for continuous product and service quality management.

Operation management

• It means administering business activities to achieve efficiency through planning, organizing, and supervising operations for better productivity.
• The aim is to reduce business costs while avoiding resource wastage.

Functions of Operations Management

• Finance: Ensuring financial resources are used efficiently and allocated to produce goods and services that meet consumer needs.
• Operations: Planning, organizing, directing, and controlling daily tasks to achieve organizational goals efficiently and effectively.
• Strategy: Formulating plans to optimize resources and gain a competitive market edge.
• Product Design: Overseeing product design to align with market demands and incorporate innovative features.
• Maintaining Quality: Ensuring high product quality through quality control, defect identification, and corrective actions.

Importance of Operations Management

• It facilitates achievement of objectives: Ensuring activities align with predetermined organizational goals through continuous monitoring.
• Improves Employee Productivity: Measuring employee performance and providing training.
• Enhances Goodwill: Delivering quality products to improve customer satisfaction.
• Optimizes Resource Utilization: Framing strategies to ensure resources are used effectively and efficiently.
• Motivates Employees: Guiding employees in their roles and improving their work environment.
• Increases Productivity: Optimizing production activities, managing resources efficiently, and transforming inputs into outputs.
• Raises Revenue: Reducing operational costs, minimizing waste, and meeting customer needs.

Achievement of Organizational Goals

• aligning business activities with strategic goals and monitoring processes.
• Improvement of Customer Satisfaction: Ensuring products meet expectations.
• Reduction of Investment Needs: Efficiently using resources and reducing waste.
• Enhancement of Goodwill: Ensuring high-quality products and excellent customer service.

Improving Innovation

• Integrating research, market analysis, and technological advancements into production planning.

Operations Management Focus

• Maintaining a cost-revenue balance.
• Efficiently using resources.
• Monitoring and controlling the production system.
• Fulfilling customer requirements by delivering the products that are needed.
• Making crucial production-related decisions.

Key Principles and History of TQM

• TQM stands for Total Quality Management focused on worker involvement in decision-making for improved productivity.
• Elton Mayo's Hawthorne experiments (1927-1932) Workers participation in decision making improves their productivity.
• Hawthorne effect: Worker productivity increases when involved in studies or decision making.

1930s Quality Control Development

• Walter Shewhart developed control charts, which are a statistical method to control processes.

1950s Quality Control Development

• Edward Deming taught statistical methods, and Dr. Juran taught quality management techniques to the Japanese.
• Armand Feigenbaum wrote "Total Quality Control" and started many Total Quality Management theories.
• Abraham Maslow created a pyramid of self-actualization needs that must be met for work productivity.
  • Physiological: Having shelter
  • Safety: Economic and physical security.
  • Belonging: Acceptance.
  • Esteem: Recognition.

1960s Quality Control Development

• Douglas McGregor formed the Theory X and Theory Y leadership models
  • Theory X Leader: Negative approach to management, workers avoid work.
  • Theory Y Leader: Believes workers want to do a good job and participate in problem solving.

1970s Quality Control Development

• Japanese shaped the phrase Total Quality Control (TQC), which drove Japan to be a quality leader.

1980s Quality Control Development

• U.S. Navel Air Systems coined Total Quality Management (TQM).

1990s Quality Control Development

• Experts introduce new methods that supported TQM.
• Lean Manufacturing and Six Sigma
• Organizations could now become certified to ISO 9001
• The Malcom Baldridge National Quality Award (MBNQA) was created for the US to give this award to companies who show the most outstanding quality management practices

2000s Quality Control Development

• ISO revised ISO 9001 to focus more on business planning, quality management and continuous improvement.
• Other certification standards were created.
  • AS9100 for aerospace.
  • TS16949 for automotive.
  • ISO 14001 for environmental.
  • TL9000 for electronics, and ISO 17025 for laboratories. These standards all include the ISO 9001.

2010s Quality Control Development

• ISO revised the ISO 9001 standard in 2015 to include Knowledge management
• Six Sigma became a prevalent problem-solving process used by Quality professionals.
• Lean Six Sigma was born, a combination of Lean thinking, 5S, and Six Sigma forms the core of Lean Six Sigma.
• Experts started using Kaizen, Gemba, and Hoshin Kanri concepts.

Principles of Total Quality Management

• Key element focus on the customer.
  • Research and understand customers' needs and expectations.
  • Align your organization's objectives with customer needs.
  • Measure satisfaction, and use the results to find ways to improve processes and communicate with customers.
  • Balance satisfying customers and other interested parties such as owners, employees, suppliers, and investors.
• Benefits of being customer-focused include increased sales, revenue, market share, repeat customer loyalty, positive recommendations, and Voice of the Customer integration. Total employee commitment: Stress team ownership, solve problems, self-evaluate performance and responsibilities using resources efficiently.

Process Approach

• Critical in quality management.
• Total Quality Management tools are used to define roles and responsibilities.
• Create a visual action plan, analyze activities, and evaluate process impact.

Benefits of Process Approach

• Faster cycles, lower costs, increased revenue, consistency, continued improvements. Integrated system
• This system everyone in every department should have a thorough understanding of policies, standards, objectives, and processes.

Benefits of Integrated System

• Focus on quality that will help your business achieve excellence and meet or exceed customer expectations.
• Promote Work Culture, work on processes, and provide training
• Strategic and systematic approach "Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives."
• Improve Processes

Benefits of Increased Effectiveness

• Processes and products should be upgraded as necessary to reach goals.
• Employees should have measurable goals.

Continual improvement

• Optimize efficiency and customer satisfaction by continually improving processes and adapting to customer needs.

Fact-Based Decison Making

• Effective analysis better decisions based on the available information. Analyze and check data, involve stakeholders, use valid methods, and consider experience and intuition. Benefits include informed decisions, analysis of past decisions, and data-driven changes.

Communications

• Everyone needs to be aware to meet goals.
• Establish communication channels, involve employees in decision-making, and ensure understanding of roles.
• Benefits include morale, motivation, coordination, connection, and accurate measurement. Traditional Management vs. Total Quality Management PDCA (Plan, Do, Check, Act) Cycle
• Plan: Determine goals and needed changes.
• Do: Implement changes.
• Check: Evaluate results.
• Act: Standardize or begin the cycle again.
• PDCA is the foundation of continuous improvement.