My Tqm Project

7/31/2019 My Tqm Project

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Mahatma Gandhi Mission’s

College of Commerce

MGM Educational Campus, Sector-18, Kamothe, Navi Mumbai – 410209

PROJECT REPORT

ON

TOTAL QUALITY MANAGEMENT

SUBMITTED TO

MGM’S COLLEGE OF COMMERCE, NAVI MUMBAI

BY

ANAND ROSHAN SINGH

Roll No.17

Batch (2010-2013)



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IN PARTIAL FULFILLMENT OF

BACHELOR OF MANAGEMENT STUDIES (BMS),

UNIVERSITY OF MUMBAI

DECLARATION

I, Mr. ANAND ROSHAN SINGH hereby declare that this

project report is the record of authentic work carried out by me

during the period from --------to----------and has not been submitted

to any other University or Institute for the award of any degree /

diploma etc.

Signature

Name of the student

Date



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CERTIFICATE

This is to certify that Mr. / Ms. ---------------------------------- of MGM’s

College of Commerce has successfully completed the project work

titled ---------------------- in partial fulfillment of requirement for the

completion BMS as prescribed by the University of Mumbai.

This project report is the record of authentic work carried out

by him / her during the period from ----------- to ------------- .He / she

has worked under my guidance.

Signature

Name

Project Guide (Internal)

Date:

Counter signed by

Signature

Name

Principal: Dr. Ritu Bhattacharyya

Date:



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CERTIFICATE FROM THE COMPANY/ORGANISATION

(If obtained)



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ACKNOWLEDGEMENT

I express my sincere gratitude towards Dr.R.H Gosh, Principal, MGM’s College of

Commerce, Kamothe for her support in completion of this project.

I am thankful to my project guide (internal) Prof. -------------------------------for his/hersupport which helped me at all stages of project completion.

I am thankful to my project guide (external)Mr./Ms.-----------------------------for

giving an opportunity to undertake this project and helping me in successful

completion of the project.

I am also thankful to my family members and friends for their co-operation.

Name of student



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INTRODUCTIO

1. Definition of Total Quality

TQM is an enhancement to the traditional way of doing business. It is the art of

managing the whole to achieve excellence. It is defined both a philosophy and a set

of guiding principles that represent the foundation of a continuously improving

organization. It is the application of quantitative methods and human resources to

improve all the processes within an organization and exceed customer needs now and

in the future. It integrates fundamental management techniques, existing

improvement efforts, and technical tools under a disciplined approach.

2. Define Quality

Quality = Performance x Expectations

3. Dimensions of Quality

• Features

• Conformance

• Reliability

• Durability

• Service

• Response

• Aesthetics

• Reputation



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4. Basic Concepts of TQM

A committed 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.

Continuous improvement of the business and production process.

Treating suppliers as partners.

Establish performance measures for the processes.

5. Principles of TQM

Constancy of purpose: short range and long range objectives aligned

Identify the customer(s); Customer orientation

Identification of internal and external customers

Continuous improvement

Workflow as customer transactions

Empower front-line worker as leader

Quality is everybody’s business

For a service industry, some elements of quality are empathy trust; i.e. expertise,

integrity, courtesy responsiveness tangible product attractiveness (curb appeal)

reliability, on time, no interruptions

Customer orientation to child care services, a marketing perspective

Barriers that exist to a customer orientation



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6. Obstacles associated with TQM Implementation

Lack of management commitment

Inability to change organizational culture

Improper planning

Lack of continuous training and education

Incompatible organizational structure and isolated individuals and departments

Ineffective measurement techniques and lack of access to data and results.

Paying inadequate attention to internal and external customers.

Inadequate use of empowerment and teamwork

7. Analysis Techniques for Quality Costs

i. Trend Analysis

ii Pareto Analysis

8. Definition Of Quality Costs

Quality Costs are defined as those costs associated with the non-achievement of

product or service quality as defined by the requirements established by the

organization and its contracts with customers and society.

9. Primary categories of Quality cost

Preventive cost category

Appraisal cost category

Internal failure cost category External failure cost category



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10. Typical cost bases

Labor

Production

Unit

Sales

11. Determination Of the optimum cost

Make comparison with other organizations

Optimize the individual categories

Analyze the relationships among the cost categories

12. Quality Improvement Strategy

Reduce failure costs by problem solving

Invest in the “right” prevention activities

Reduce appraisal costs where appropriate and in a statistically sound

manner

Continuously evaluate and redirect the prevention effort to gain further

quality improvement.

13. Definition Of Quality Planning

A quality plan sets out the desired product qualities and how these are assessed and

define the most significant quality attributes. It should define the quality assessment

process. It should set out which organizational standards should be applied and, if

necessary, define new standards



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14. Objectives of TQM

To develop a conceptual understanding of the basic principles and methods

Associated with TQM;

To develop an understanding of how these principles and methods have been

put into effect in a variety of organizations;

To develop an understanding of the relationship between TQM principles and

the theories and models studied in traditional management;

To do the right things, right the first time, every time.

15. The needed for a leader to be effective

To be effective, a leader needs to know and understand the following:

People, paradoxically, need security and independence at the same time.

People are sensitive to external rewards and punishments and yet are also

strongly self-motivated.

People like to hear a kind word of praise.

People can process only a few facts at a time; thus, a leader needs to keep

things simple.

People trust their gut reaction more than statistical data.

People distrust a leader’s rhetoric if the words are inconsistent with the

leader’s actions.

16. Role of senior management

Listening to internal and external customers and suppliers through visits,

focus groups and surveys. Communication.



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To drive fear out of the organization, break down barriers, remove system

roadblocks, anticipate and minimize resistance to change and in general,change the culture.

17. General duties of a quality council

(i) Develop, with input from all personnel, the core values, vision statement, mission

statement, and quality policy statement.

(ii) Develop the strategic long-term plan with goals and the annual quality

improvement program with objectives.

(iii) Create the total education and training plan.

(iv) Determine and continually monitor the cost of poor quality.

(v) Determine the performance measures for the organization, approve those for the

functional areas, and monitor them.

(vi) Continually, determine those projects that improve the processes, particularly

those that affect external and internal customer satisfaction.

(vii) Establish multifunctional project and departmental or work group teams and

monitor their progress.

(viii) Establish or revise the recognition and reward system to account for the new

way of doing business.

18. Atypical meeting agenda contain after establishing the TQM

Progress report on teams

Customer satisfaction report

Progress on meeting goals



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New project teams

Recognition dinner Benchmarking report

19. Various quality statements

Vision Statement

Mission Statement

Quality Policy Statement

20. Basic steps to strategic quality planning

Customer needs

Customer positioning

Predict the future

Gap analysis

Closing the gap

Alignment

Implementation

21. Quality policy

The Quality Policy is a guide for everyone in the organization as to how they should

provide products and service to the customers. The common characteristics are

Quality is first among equals. Meet the needs of the internal and external customers.



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Equal or exceed the competition.

Continually improve the quality. Include business and production practices.

Utilize the entire work force.

THE EIGHT ELEMENTS OF TQM:

Total Quality Management is a management approach that originated in the 1950's

and has steadily become more popular since the early 1980's. 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 company's operations, with processes being doneright the first time and defects and waste eradicated from operations.

To be successful implementing TQM, an organization must concentrate on the eight

key elements:

Ethics

Integrity

Trust

Training

Teamwork Leadership

Recognition

Communication

This paper is meant to describe the eight elements comprising TQM.

Key Elements

TQM has been coined to describe a philosophy that makes quality the driving force

behind leadership, design, planning, and improvement initiatives. For this, TQM



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requires the help of those eight key elements. These elements can be divided into four

groups according to their function.

The groups are:

I. Foundation - It includes: Ethics, Integrity and Trust.

II. Building Bricks - It includes: Training, Teamwork and Leadership.

III. Binding Mortar - It includes: Communication.

IV. Roof - It includes: Recognition.

I. Foundation

TQM is built on a foundation of ethics, integrity and trust. It fosters openness,

fairness and sincerity and allows involvement by everyone. This is the key to

unlocking the ultimate potential of TQM. These three elements move together,

however, each element offers something different to the TQM concept.

1. Ethics –

Ethics is the discipline concerned with good and bad in any situation. It is a two-

faceted subject represented by organizational and individual ethics.

Organizational ethics establish a business code of ethics that outlines guidelines

that all employees are to adhere to in the performance of their work. Individual

ethics include personal rights or wrongs.

2. Integrity –

Integrity implies honesty, morals, values, fairness, and adherence to the facts and

sincerity. The characteristic is what customers (internal or external) expect and



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deserve to receive. People see the opposite of integrity as duplicity. TQM will not

work in an atmosphere of duplicity

3. Trust –

Trust is a by-product of integrity and ethical conduct. Without trust, the

framework of TQM cannot be built. Trust fosters full participation of all

members. It allows empowerment that encourages pride ownership and it

encourages commitment. It allows decision making at appropriate levels in the

organization, fosters individual risk-taking for continuous improvement and helps

to ensure that measurements focus on improvement of process and are not used to

contend people. Trust is essential to ensure customer satisfaction. So, trust builds

the cooperative environment essential for TQM.

II. Bricks

Basing on the strong foundation of trust, ethics and integrity, bricks are placed to

reach the roof of recognition. It includes:

4. Training –

Training is very important for employees to be highly productive. Supervisors

are solely responsible for implementing TQM within their departments, and

teaching their employees the philosophies of TQM. Training that employees



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require are interpersonal skills, the ability to function within teams, problem

solving, decision making, job management performance analysis andimprovement, business economics and technical skills. During the creation and

formation of TQM, employees are trained so that they can become effective

employees for the company.

5. Teamwork –

To become successful in business, teamwork is also a key element of TQM.

With the use of teams, the business will receive quicker and better solutions to

problems. Teams also provide more permanent improvements in processes and

operations. In teams, people feel more comfortable bringing up problems thatmay occur, and can get help from other workers to find a solution and put into

place. There are mainly three types of teams that TQM organizations adopt:

A. Quality Improvement Teams or Excellence Teams (QITS) –

These are temporary teams with the purpose of dealing with specific problems

that often re-occur. These teams are set up for period of three to twelve months.

B. Problem Solving Teams (PSTs) –

These are temporary teams to solve certain problems and also to identify and

overcome causes of problems. They generally last from one week to three

months.

C. Natural Work Teams (NWTs) –

These teams consist of small groups of skilled workers who share tasks and

responsibilities. These teams use concepts such as employee involvement teams,



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self-managing teams and quality circles. These teams generally work for one to

two hours a week.

6. Leadership –

It is possibly the most important element in TQM. It appears everywhere in

organization. Leadership in TQM requires the manager to provide an inspiring

vision, make strategic directions that are understood by all and to instill values

that guide subordinates. For TQM to be successful in the business, the supervisor

must be committed in leading his employees. A supervisor must understand

TQM, believe in it and then demonstrate their belief and commitment through

their daily practices of TQM. The supervisor makes sure that strategies,

philosophies, values and goals are transmitted down throughout the organization

to provide focus, clarity and direction. A key point is that TQM has to be

introduced and led by top management. Commitment and personal involvement is

required from top management in creating and deploying clear quality values and

goals consistent with the objectives of the company and in creating and deploying

well defined systems, methods and performance measures for achieving those

goals.



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III. Binding Mortar

7. Communication - It binds everything together. Starting from foundation to

roof of the TQM house, everything is bound by strong mortar of communication. It

acts as a vital link between all elements of TQM. Communication means a common

understanding of ideas between the sender and the receiver. The success of TQM

demands communication with and among all the organization members, suppliers

and customers. Supervisors must keep open airways where employees can send and

receive information about the TQM process. Communication coupled with the

sharing of correct information is vital. For communication to be credible the message

must be clear and receiver must interpret in the way the sender intended.

There are different ways of communication such as:

A. Downward communication - This is the dominant form of communication

in an organization. Presentations and discussions basically do it. By this the

supervisors are able to make the employees clear about TQM.

B. Upward communication - By this the lower level of employees are able to

provide suggestions to upper management of the affects of TQM. As employees

provide insight and constructive criticism, supervisors must listen effectively to

correct the situation that comes about through the use of TQM. This forms a level of

trust between supervisors and employees. This is also similar to empowering

communication, where supervisors keep open ears and listen to others.

C. Sideways communication - This type of communication is important

because it breaks down barriers between departments. It also allows dealing with

customers and suppliers in a more professional manner.

IV. Roof

8. Recognition –

Recognition is the last and final element in the entire system. It should be provided

for both suggestions and achievements for teams as well as individuals. Employees

strive to receive recognition for themselves and their teams. Detecting and

recognizing contributors is the most important job of a supervisor. As people are



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recognized, there can be huge changes in self-esteem, productivity, quality and the

amount of effort exhorted to the task at hand. Recognition comes in its best formwhen it is immediately following an action that an employee has performed.

Recognition comes in different ways, places and time such as,

Ways –

It can be by way of personal letter from top management. Also by award banquets,

plaques, trophies etc.

Places –

Good performers can be recognized in front of departments, on performance boards

and also in front of top management.

Time –

Recognition can give at any time like in staff meeting, annual award banquets,

etc.

We can conclude that these eight elements are key in ensuring the success of TQM in

an organization and that the supervisor is a huge part in developing these elements in

the work place. Without these elements, the business entities cannot be successfulTQM implementers. It is very clear from the above discussion that TQM without

involving integrity, ethics and trust would be a great remiss, in fact it would be

incomplete. Training is the key by which the organization creates a TQM

environment. Leadership and teamwork go hand in hand. Lack of communication

between departments, supervisors and employees create a burden on the whole TQM

process. Last but not the least, recognition should be given to people who contributed

to the overall completed task. Hence, lead by example, train employees to provide a

quality product, create an environment where there is no fear to share knowledge, and

give credit where credit is due is the motto of a successful TQM organization



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THE TQM MODEL:

At the century close, the creation of the global market, international orientation of

management that sweeps national boundaries, introduction of new technologies, and

shift towards customer focused strategies, make the competition stronger than ever.

The criteria for success in this global, internationally oriented market have been

changing rapidly. In order to expand business, enter new markets, and set realistic,

competitive long-term objectives, excellence became an imperative. Management's

effort has been directed towards discovering what makes a company excellent.

To achieve excellence, companies must develop a corporate culture of treating people

as their most important asset and provide a consistent level of high quality productsand services in every market in which they operate. Such an environment has

supported the wide acceptance of Total Quality Management (TQM) which emerged

recently as a new,

challenging, marketable philosophy. It involves three spheres of changes in an

organization -- people, technology and structure.

There is also a need for a systematic approach so that each element of TQMEX can

be bonded together smoothly. Oakland [1989] originated the idea of a 3-cornerstonemodel. The proposed 4-pillar model (Figure 3.1) brings the customer's requirement

into the system. This makes the approach to TQM more complete. The additional

pillar -- satisfying customers -- is vital because it explicitly addresses customers

requirements. Without it TQM would have no objective.



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The Four Pillars of TQM

The role of top management in implementation of total quality is crucial and its input

on people far-reaching. TQM, therefore, should be understood as management of the

system through systems thinking, which means understanding all the elements in the

company and putting them to work together towards the common goal. The TQMEX

Model advocates an integrated approach in order to support the transition to systemsmanagement which is an ongoing process of continuous improvement that begins

when the company commits itself to managing by quality. The Model illuminates the

elements that form a base to the understanding of TQM philosophy and

implementation of the process company-wide.



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The Structure of TQM:



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The Logic of TQM EX:

In order to have a systematic approach to TQM, it is necessary to develop a

conceptual model. Generally, a model is a sequence of steps arranged logically to

serve as a guideline for implementation of a process in order to achieve the ultimate

goal. The model should be simple, logical and yet comprehensive enough for TQM

implementation. It also has to sustain the changes in business environment of the new

era. The Model also reflects teachings of the contemporary quality gurus. The ideawas to develop a universally applicable step-by-step guideline by including

recognized practices in TQM:

Japanese 5-S Practice (5-S)

Business Process Re-engineering (BPR)

Quality Control Circles (QCCs)

ISO 9001/2 Quality Management System (ISO)

Total Productive Maintenance (TPM)

As Osaka pointed out, 5-S is the key to total quality environment. Therefore, it

should be the first step. BPR is concerned with re-defining and designing your

business process in order to meet the needs of your customers effectively. It is more

concerned with the business objectives and systems, and should follow as Step 2.

QCCs are concerned with encouraging the employees to participate in continuous

improvement and guide them through. They improve human resources capability to

achieve the business objectives. Therefore, this should be Step 3. ISO 9000 is to

develop a quality management system based on the good practices in the previous

three steps. TPM is a result of applying 5-S to equipment based on a sound quality

management system. In fact ISO 9001 requires procedures for process control and

inspection and testing equipment which are part of TPM. Therefore TPM should beimplemented in Step 5.



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If the above five steps have been implemented successfully, the organization is

already very close towards achieving TQM.

TQMEX is a sequential model which is easy to remember and simple to implement.

This is in line with the quality principle of Keep It Short and Simple (KISS), although

it is not simple to make a model simple!

Companies starting to implement TQM should follow TQMEX step-by-step.

Companies which have already gone through some degree of improvement using

some of the steps should review what have not been done and do it as their next step

of improvement. In order to maximize your benefits from TQMEX, you have to start

early too.

THE ACCEPTABILITY OF TQM

JAPANESE TQM MODEL:

At first, few but the Japanese took Deming seriously. Known for his legendary attacks

on executives and compassion for the worker, the Japanese sense of responsibility to

one's superiors and subordinates made it easier to accept Deming's message that

management's role was to provide the optimal conditions for the workers to do the best job.

The Japanese then extended Deming's teaching to many dimensions of management.Here are TQM models from the Japanese Society of Quality and the Japan Standards

Association that show how extensive their definition of TQM is.

The Japanese identify three major dimensions of TQM: Daily Management,

Hoshin/Policy Management, and Cross Function Management. We will study these in

detail in the course. They can be visualized with the following picture.



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TQM IN USA:

As regards quality, USA is at crossroads today .Inspite of the fact that USA

developed the techniques and concepts of SQC and TQC and the Japanese imported

these techniques, the further orientation and development in philosophy, concept and

techniques in terms of Q.C. circles and companywide quality control took place in

Japan more rapidly and successfully. While the American companies remained

concerned about detecting and segregating defective parts from good ones, the

Japanese companies devised systems to reduce defects and produce good quality

products. This resulted in America losing its position of dominance not only in theAmerican market but also in the world.

Much of the quality movement in USA is based on tools and techniques developed

by the Japanese. Adoption of these techniques requires complete re-development in

both methods and emphasis. The most critical challenge facing U.S quality

movement is the development and implementation of quality focused corporate

management systems that achieve the coherence, integration and comprehensiveness

of quality management in Japan.

The American companies are characterized by:

1. A high concentration of industry on relatively few companies.

2. Stress on promoting share-holders, and

3. Running the company by professional managers.

These features of autonomous organizations and professional management have a

considerable impact on the conduct of quality function. Each organization determinesindependently what it will produce and what quality policies it will adopt.



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Marguardt divides the evolution of quality movement in USA in three periods:

1. Advocates for SQC- Emphasis on technical tools of control charts, lot inspection

and sampling schemes.

2. Administrators for system of quality control- Emphasis on the cost of quality and

managerial aspects of organizing the quality.

3. Advertising and selling quality consciousness-Emphasis on changing

organizational culture and providing an environment that will enable people to

activate and sustain in their own work and in products and services produced by the

organizations with the focus on needs of customers. TQM in Service Industry

TQM in Service Industry:-

Introduction

Today’s customer has before him the possibility of a wider choice of products &

Services than ever before .He is going to be demanding & keen on having the best

services in the shortest possible time & at the minimum cost .He will look for

solutions that are more specific to his needs thus creating opportunity of many niche

market.

-Today customers avail ATM services 24 hrs-Book airline tickets & check-in over phone

-Self-service at fast food restaurant.

-And many more

What is different?

-Service is also a product of different kind.

-No time delay between the production & delivery of service

-A defective product can be replaced but a defective service may create a permanent

damage.

Growth of Service sector Service sector is growing rapidly due to

-Change in environment, life style etc



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-Demand for new kind of services

-Advent of new technologies-Fast development of information technology &computerization

-Lean manufacturing. (Contracting out most activities)

Challenge of Service sector Delight customers

-In a dynamic environment which is changing fast

-In growing competitive market

-With relatively shorter product life cycle

-Requiring more customization

Service Quality Dimensions Quality of Services differs from manufactured products-Special characteristics including intangibility.

-Simultaneity (promptness)

-Heterogeneity

-Unique dimensions of some services (e.g. banking)

THE ESSENTIALS OF TQM

Introduction

TQM is the way of managing for the future, and is far wider in its application than

just assuring product or service quality – it is a way of managing people and business

processes to ensure complete customer satisfaction at every stage, internally and

externally. TQM, combined with effective leadership, results in an organization

doing the right things right, first time.



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The core of TQM is the customer-supplier interfaces, both externally and internally,

and at each interface lie a number of processes. This core must be surrounded by

commitment to quality, communication of the quality message, and recognition of

the need to change the culture of the organization to create total quality. These are

the foundations of TQM, and they are supported by the key management functions of

people, processes and systems in the organization.

This section discusses each of these elements that, together, can make a total quality

organization. Other sections explain people, processes and systems in greater detail,

all having the essential themes of commitment, culture and communication running

through them.



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What is quality?

A frequently used definition of quality is “Delighting the customer by fully meeting

their needs and expectations”. These may include performance, appearance,

availability, delivery, reliability, maintainability, cost effectiveness and price. It is,

therefore, imperative that the organization knows what these needs and expectations

are. In addition, having identified them, the organization must understand them, and

measure its own ability to meet them.

Quality starts with market research – to establish the true requirements for theproduct or service and the true needs of the customers. However, for an organization

to be really effective, quality must span all functions, all people, all departments and

all activities and be a common language for improvement. The cooperation of

everyone at every interface is necessary to achieve a total quality organization, in the

same way that the Japanese achieve this with companywide quality control.

Customers and suppliers

There exist in each department, each office, and each home, a series of customers,

suppliers and customer supplier interfaces. These are “the quality chains”, and they

can be broken at any point by one person or one piece of equipment not meeting the

requirements of the customer, internal or external. The failure usually finds its way to

the interface between the organization and its external customer, or in the worst case,

actually to the external customer.

Failure to meet the requirements in any part of a quality chain has a way of multiplying, and failure in one part of the system creates problems elsewhere, leading



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to yet more failure and problems, and so the situation is exacerbated. The ability to

meet customers’ (external and internal) requirements is vital. To achieve quality

throughout an organization, every person in the quality chain must be trained to ask

the following questions about every customer-supplier interface:

Customers (internal and external)

• Who are my customers?

• What are their true needs and expectations?

• How do, or can, I find out what these are?

• How can I measure my ability to meet their needs and expectations?

• Do I have the capability to meet their needs and expectations?

(If not, what must I do to improve this capability?)

• Do I continually meet their needs and expectations?

(If not, what prevents this from happening when the capability exists?)

• How do I monitor changes in their needs and expectations?



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Suppliers (internal and external)

• Who are my internal suppliers?

• What are my true needs and expectations?

• How do I communicate my needs and expectations to my suppliers?

• Do my suppliers have the capability to measure and meet these needs and

expectations?

• How do I inform them of changes in my needs and expectations?

As well as being fully aware of customers’ needs and expectations, each person must

respect the needs and expectations of their suppliers. The ideal situation is an open

partnership style relationship, where both parties share and benefit.

Poor practices

To be able to become a total quality organization, some of the bad practices must be

recognized and corrected. These may include:

• Leaders not giving clear direction

• Not understanding, or ignoring competitive positioning

• Each department working only for itself



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• Trying to control people through systems

• Confusing quality with grade

• Accepting that a level of defects or error s is inevitable

• Firefighting, reactive behavior

• The “It’s not my problem” attitude

The essential components of TQM – commitment & leadership

TQM is an approach to improving the competitiveness, effectiveness and flexibilityof an organization for the benefit of all stakeholders. It is a way of planning,

organizing and understanding each activity, and of removing all the wasted effort and

energy that is routinely spent in organizations. It ensures the leaders adopt a strategic

overview of quality and focus on prevention not detection of problems. Whilst it must

involve everyone, to be successful, it must start at the top with the leaders of the

organization.

All senior managers must demonstrate their seriousness and commitment to quality,and middle managers must, as well as demonstrating their commitment, ensure they

communicate the principles, strategies and benefits to the people for whom they have

responsibility. Only then will the right attitudes spread throughout the organization.

A fundamental requirement is a sound quality policy, supported by plans and

facilities to implement it.

Leaders must take responsibility for preparing, reviewing and monitoring the policy,

plus take part in regular improvements of it and ensure it is understood at all levels of

the organization. Effective leadership starts with the development of a mission

statement, followed by a strategy, which is translated into action plans down through



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the organization. These, combined with a TQM approach, should result in a quality

organization, with satisfied customers and good business results. The 5 requirements

for effective leadership are:

• Developing and publishing corporate beliefs, values and objectives, often as a

mission statement

• Personal involvement and acting as role models for a culture of total quality

• Developing clear and effective strategies and supporting plans for achieving the

mission and Objectives

• Reviewing and improving the management system

• Communicating, motivating and supporting people and encouraging effective

employee participation

The task of implementing TQM can be daunting. The following is a list of points that

leaders should consider; they are a distillation of the various beliefs of some of the

quality gurus:

• The organization needs a long-term commitment to continuous improvement.

• Adopt the philosophy of zero errors/defects to change the culture to right first time

• Train people to understand the customer/supplier relationships

• Do not buy products or services on price alone – look at the total cost

• Recognize that improvement of the systems must be managed

• Adopt modern methods of supervising and training – eliminate fear



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• Eliminate barriers between departments by managing the process – improve

communications and teamwork.

• Eliminate goals without methods, standards based only on numbers, barriers to

pride of

Workmanship and fiction – get facts by studying processes

• Constantly educate and retrain – develop experts in the organization

• Develop a systematic approach to manage the implementation of TQM

Culture change

The failure to address the culture of an organization is frequently the reason for many

management initiatives either having limited success or failing altogether.

Understanding the culture of an organization, and using that knowledge to

successfully map the steps needed to accomplish a successful change, is an important

part of the quality journey.

The culture in any organization is formed by the beliefs, behaviors, norms, dominant

values, rules and the “climate”. A culture change, e.g., from one of acceptance of a

certain level of errors or defects to one of right first time, every time, needs two key

elements:

• Commitment from the leaders

• Involvement of all of the organization’s people

There is widespread recognition that major change initiatives will not be successfulwithout a culture of good teamwork and cooperation at all levels in an organization,

as discussed in the section on People.



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The building blocks of TQM: processes, people, management systems and

performance measurement

Everything we do is a Process, which is the transformation of a set of inputs, which

can include action, methods and operations, into the desired outputs, which satisfy

the customers’ needs and expectations.

In each area or function within an organization there will be many processes taking

place, and each can be analyzed by an examination of the inputs and outputs todetermine the action necessary to improve quality.

In every organization there are some very large processes, which are groups of

smaller processes, called key or core business processes. These must be carried out

well if an organization is to achieve its mission and objectives. The section on

Processes discusses processes and how to improve them, and Implementation covers

how to priorities and select the right process for improvement.



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The only point at which true responsibility for performance and quality can lie is with

the People who actually do the job or carry out the process, each of which has one or

several suppliers and customers.

An efficient and effective way to tackle process or quality improvement is through

teamwork. However, people will not engage in improvement activities without

commitment and recognition from the organization’s leaders, a climate for

improvement and a strategy that is implemented thoughtfully and effectively. The

section on People expands on these issues, covering roles within teams, team

selection and development and models for successful teamwork.



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An appropriate documented Quality Management System will help an organization

not only achieve the objectives set out in its policy and strategy, but also, and equally

importantly, sustain and build upon them. It is imperative that the leaders take

responsibility for the adoption and documentation of an appropriate management

system in their organization if they are serious about the quality journey. The

Systems section discusses the benefits of having such a system, how to set one up and

successfully implement it.

Once the strategic direction for the organization’s quality journey has been set, it

needs Performance Measures to monitor and control the journey, and to ensure the

desired level of performance is beingachieved and sustained. They can, and should

be, established at all levels in the organization, ideally being cascaded down and most

effectively undertaken as team activities and this is discussed in the section on

performance.



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THE EFFECTS OF TQM

Improving Financial Services through TQM

The work described in this case study was undertaken in a young, rapidly expanding

company in the financial services sector with no previous experience with Total

Quality Management (TQM). The quality project began with a two-day introductory

awareness program covering concepts, cases, implementation strategies and

imperatives of TQM. The program was conducted for the senior management team of

the company. This program used interactive exercises and real life case studies to

explain the concepts of TQM and to interest them in committing resources for a

demonstration project. The demonstration project, which used the Seven Steps of

Problem Solving (similar to DMAIC), was to show them how TQM concepts worked

in practice before they committed resources for a company-wide program.

Step1. Define the Problem

1.1) Selecting the theme: A meeting of the senior management of the company

was held. Brainstorming produced a list of more than 20 problems. The list wasprioritized using the weighted average table, followed by a structured discussion to

arrive at a consensus on the two most important themes -- customer service and sales

productivity.

Under the customer service theme, "Reducing the Turnaround Time from an

Insurance Proposal to Policy" was selected as the most obvious and urgent problem.

The company was young, and therefore had few claims to process so far. The

proposal-to-policy process therefore impacted the greatest number of customers.

An appropriate cross functional group was set up to tackle this problem.



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1.2) Problem = customer desire – current status:

Current status: What did the individual group members think the turnaround is

currently? As each member began thinking questions came up. "What type of policies

do we address?" Medical policies or non-medical? The latter are take longer because

of the medical examination of the client required. "Between what stages do we

consider turnaround?" Perceptions varied, with each person thinking about the

turnaround within their department. The key process stages were mapped:

Several sales branches in different parts of the country sent proposals into the Central

Processing Center. After considerable debate it was agreed at first to consider

turnaround between entry into the computer system at the Company Sales Branch and

dispatch to the customer from the Central Processing Center (CPC). Later the entire

cycle could be included. The perception of the length of turnaround by different

members of the team was recorded. It averaged:



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Non-Medical Policies 17 days

Medical Policies 35 days

Invoking the slogan from the awareness program "In God we trust, the rest of us

bring data" the group was asked to collect data and establish reality. Armed with a

suitably designed check sheet they set about the task.

Customer desire:

What was the turnaround desired by the customer? Since a customer survey was not

available, individual group members were asked to think as customers -- imagine

they had just given a completed proposal form to a sales agent. When would they

expect the policy in hand? From the customer's point of view they realized that they

did not differentiate between medical and non-medical policies. Their perception

averaged out six days for the required turnaround.

"Is this the average time or maximum time that you expect?" they were asked.

"Maximum," they responded. It was clear therefore that the average must be less than

six days. The importance of "variability" had struck home. The concept of sigma was

explained and was rapidly internalized. For 99.7 percent delivery within the customer

limit the metric was defined.

Customer desire:

Average+3 Sigma turnaround = less than 6 days



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Current status:

Non-medical policies (Average 19/Sigma 15) Average+3 sigma= 64 days

Medical (Average 37/Sigma 27) Average+3 sigma= 118 days

The Problem was therefore defined:

Reduce Average+3 sigma of turnaround for:

Non-Medical Policies from 64 to 6 days

Medical Policies from 118 to 6 days

The performance requirement appeared daunting. Therefore the initial target taken inthe Mission Sheet (project charter) was to reduce the turnaround by 50 percent -- to

32 and 59 days respectively.

Step2. Analysis of the Problem

In a session the factors causing large turnaround times from the principles of JIT

were explained. These were: Input arrival patterns

Waiting times in process

- Batching of work

- Imbalanced processing line

- Too many handovers

- Non-value added activities, etc.

Processing times

Scheduling

Transport times

Deployment of manpower



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Typically it was found that waiting times constitute the bulk of processing turnaround

times. Process Mapping (Value Stream Mapping in Lean) was undertaken. The

aggregate results are summarized below:

Number of operations 84

Number of handovers 13

In-house processing times (estimated) 126 man-mins

Range of individual stage time 2 to 13 mins

Could this be true? Could the turnaround be 126 minutes for internal processing

without waiting? The group started to question of the status quo. The change processhad begun. To check this estimate it was decided to collect data -- run two policies

without waiting and record the time at each stage. The trial results amazed everyone:

Policy No. 1 took 100 minutes and Policy No. 2 took 97 minutes. Almost instantly

the mindset changed from doubt to desire: "Why can't we process every proposal in

this way?"

Step3. Generating Ideas

In the introductory program of TQM during the JIT session the advantages of flow

versus batch processing had been dramatically demonstrated using a simple exercise.

Using that background a balanced flow line was designed as follows:

1. Determine the station with the maximum time cycle which cannot be split up by

reallocation -- 8 minutes.

2. Balance the line to make the time taken at each stage equal 8 minutes as far as

possible.

3. Reduce the stages and handovers -- 13 to 8.

4. Eliminate non-value added activities -- transport -- make personnel sit next to each



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other.

5. Agree processing to be done in batch of one proposal.

Changing the mindset of the employees so they will accept and welcome change is

critical to building a self-sustaining culture of improvement. In this case, the line

personnel were involved in a Quality Mindset Program so that they understood the

reasons for change and the concepts behind them and are keen to experiment with

new methods of working. The line was ready for a test run.



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Step4. Testing the Idea

Testing in stages is a critical stage. It allows modification of ideas based upon

practical experience and equally importantly ensures acceptance of the new methods

gradually by the operating personnel.

Stage 1: Run five proposals flowing through the system and confirm results. The test

produced the following results:

Average turnaround time: < 1 day

In-house processing time: 76 mins.

There was jubilation in the team. The productivity had increased by 24 percent. The

head of the CPC summarized: "I gave five files for processing, and went for a

meeting. Emerging from the meeting about 30 minutes later I was greeted by the

dispatch clerk jubilantly reporting, "'Madam, the TQM files are ready for dispatch.'"

The mindset was dramatically changed and line personnel were now keen to push the

implementation.

Stage 2: It was agreed to run the new system for five days -- and compute the

average and sigma of the turnaround to measure the improvement. It was agreed that

only in-house processing was covered at this stage and that the test would involve all

policies at the CPC but only one branch as a model. This model, once proved, could

be replicated at other branches.

The test results showed a significant reduction in turnaround:

1. For all non-medical policies From 64 to 42 days or 34%

2. For policies of the model branch From 64 to 27 days of 60%



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The Mission Sheet goal of 50 percent reduction had been bettered for the combined

model branch and CPC. Further analysis of the data revealed other measures which

could reduce the turnaround further. Overall reduction reached an amazing 75

percent. Turnaround, which had been pegged at 64 days, was now happening at 99.7

percent on-time delivery in 15 days.

Step5. Implementing the Ideas

Regular operations with the new system was planned to commence. However, two

weeks later it was still not implemented. One of the personnel on the line in CPC had

been released by his department for the five-day trial to sit on the line but was notreleased on a regular basis. The departmental head had not attended the TQM

awareness program and therefore did not understand why this change was required.

There were two options -- mandate the change or change the mindset to accept the

change. Since the latter option produces a robust implementation that will not break

down under pressures it was agreed that the group would summarize TQM, the

journey and the results obtained in the project so far and also simulate the process

with a simple exercise in front of the department head. This session was highly

successful and led to the release of the person concerned on a regular basis.

Step6. Check the Result

The process was run for one month with regular checks. The results obtained were

marginally better than the trials conducted in Step 5:

Average 11 days

Sigma 9 days

Average+3 sigma 38 days



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Step7. Standardize Control/Document the Improvement Story

Essentially the in-house processes in two centers of processing -- the CPC and one

sales branch -- had been impacted so far. To make sure that the gains were held,

control charts were introduced in both locations. Sample x-bar and sigma-control

charts for the CPC are shown below:

A special "Grind It In" session was conducted for line personnel to ensure that the

control chart was updated every day, and any deterioration was dealt with by finding

and killing the root causes of the problems.

Customer reaction: Sales management and sales agents (internal customers) clearly

noticed the difference. For instance one sales manager reported that a customer had

received a policy within a week of giving a proposal and was so amazed that he said,

"If you give such service I will give you the next policy also!"



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Adoption of a similar process at the CPC and the model branch for medical policies

has already reduced the average+3 sigma of turnaround time by 70 percent -- from

118 days to 37 days. The corresponding all-India reduction was from 118 days to 71

days -- a 60 percent reduction.

The project objective of 50 percent in the first stage has been achieved.

A quality improvement story was compiled by the project Leader for training and

motivating all employees.

Future Actions

Non-medical policies: Goal to reduce turnaround from 42 days to about 15 days.

Roll out process to branches to achieve 24 days throughout the country.2. Minimize

rework by analyzing, prioritizing and training sales branches to avoid the causes of

rework.

3. Working with the bank to improve the turnaround time of banking checks.

4. Considering processing proposals while check clearance is in progress.

Medical policies: Goal to reduce turnaround from 71 days to about 24 days.

1. Roll out process to branches to reduce turnaround from 71 to 37 days.

2. Streamline the process of medical exam of the client from 37 to 24 days.



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IMPLEMENTATION OF TQM

Implementation Principles and Processes

A preliminary step in TQM implementation is to assess the organization's current

reality. Relevant preconditions have to do with the organization's history, its current

needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM

implementation should be delayed until the organization is in a state in which TQM is

likely to succeed.

If an organization has a track record of effective responsiveness to the environment,

and if it has been able to successfully change the way it operates when needed, TQM

will be easier to implement. If an organization has been historically reactive and has

no skill at improving its operating systems, there will be both employee skepticism

and a lack of skilled change agents. If this condition prevails, a comprehensiveprogram of management and leadership development may be instituted. A

management audit is a good assessment tool to identify current levels of

organizational functioning and areas in need of change. An organization should be

basically healthy before beginning TQM. If it has significant problems such as a very

unstable funding base, weak administrative systems, lack of managerial skill, or poor

employee morale, TQM would not be appropriate.

However, a certain level of stress is probably desirable to initiate TQM. People need

to feel a need for a change. Kanter (1983) addresses this phenomenon be describing

building blocks which are present in effective organizational change. These forces

include departures from tradition, a crisis or galvanizing event, strategic decisions,



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individual "prime movers," and action vehicles. Departures from tradition are

activities, usually at lower levels of the organization, which occur when

entrepreneurs move outside the normal ways of operating to solve a problem. A

crisis, if it is not too disabling, can also help create a sense of urgency which can

mobilize people to act. In the case of TQM, this may be a funding cut or threat, or

demands from consumers or other stakeholders for improved quality of service. After

a crisis, a leader may intervene strategically by articulating a new vision of the future

to help the organization deal with it. A plan to implement TQM may be such a

strategic decision. Such a leader may then become a prime mover, who takes charge

in championing the new idea and showing others how it will help them get where

they want to go. Finally, action vehicles are needed and mechanisms or structures to

enable the change to occur and become institutionalized.

Steps in Managing the Transition :-

Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition

to a new system such as TQM: identifying tasks to be done, creating necessary

management structures, developing strategies for building commitment, designing

mechanisms to communicate the change, and assigning resources.

Task identification would include a study of present conditions (assessing current

reality, as described above); assessing readiness, such as through a force field

analysis; creating a model of the desired state, in this case, implementation of TQM;

announcing the change goals to the organization; and assigning responsibilities and

resources. This final step would include securing outside consultation and training

and assigning someone within the organization to oversee the effort. This should be a

responsibility of top management. In fact, the next step, designing transition

management structures, is also a responsibility of top management. In fact, Cohenand Brand (1993) and Hyde (1992) assert that management must be heavily involved

as leaders rather than relying on a separate staff person or function to shepherd the



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effort. An organization wide steering committee to oversee the effort may be

appropriate. Developing commitment strategies was discussed above in the sections

on resistance and on visionary leadership.

To communicate the change, mechanisms beyond existing processes will need to be

developed. Special all-staff meetings attended by executives, sometimes designed as

input or dialog sessions, may be used to kick off the process, and TQM newsletters

may be an effective ongoing communication tool to keep employees aware of

activities and accomplishments.

Management of resources for the change effort is important with TQM becauseoutside consultants will almost always be required. Choose consultants based on their

prior relevant experience and their commitment to adapting the process to fit unique

organizational needs. While consultants will be invaluable with initial training of

staff and TQM system design, employees (management and others) should be

actively involved in TQM implementation, perhaps after receiving training in change

management which they can then pass on to other employees. A collaborative

relationship with consultants and clear role definitions and specification of activities

must be established.

In summary, first assess preconditions and the current state of the organization to

make sure the need for change is clear and that TQM is an appropriate strategy.

Leadership styles and organizational culture must be congruent with TQM. If they

are not, this should be worked on or TQM implementation should be avoided or

delayed until favorable conditions exist.

Remember that this will be a difficult, comprehensive, and long-term process.

Leaders will need to maintain their commitment, keep the process visible, provide

necessary support, and hold people accountable for results. Use input from

stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of

course, maximize employee involvement in design of the system. Always keep in



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mind that TQM should be purpose driven. Be clear on the organization's vision for

the future and stay focused on it. TQM can be a powerful technique for unleashing

employee creativity and potential, reducing bureaucracy and costs, and improving

service to clients and the community.

The Concept of 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 andmachine capabilities.

Continuous improvement must deal not only with improving results, but 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 mistakes may be made by people, but most of

them are caused, or at least permitted, by faulty systems and processes. This meansthat the root cause of such mistakes can be identified and eliminated, and repetition

can be prevented by changing the process.

There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-Yoke).

2. Where mistakes can't be absolutely prevented, detecting them early to prevent them

being passed down the value added chain (Inspection at source or by the next

operation).

3. Where mistakes recur, stopping production until the process can be corrected, to

prevent the production of more defects. (Stop in time).



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TQM is the foundation for activities, which include:

Commitment by senior management and all employees

Meeting customer requirements

Reducing development cycle times

Just In Time/Demand Flow Manufacturing

Improvement teams

Reducing product and service costs

Systems to facilitate improvement

Line Management ownership

Employee involvement and empowerment

Recognition and celebration

Challenging quantified goals and benchmarking

Focus on processes / improvement plans

Specific incorporation in strategic planning

This shows that TQM must be practiced in all activities, by all personnel, in

Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.



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TQM in manufacturing

Quality assurance through statistical methods is a key component in a manufacturing

organization, where TQM generally starts by sampling a random selection of the

product. The sample can then be tested for things that matter most to the end users.

The causes of any failures are isolated, secondary measures of the production process

are designed, and then the causes of the failure are corrected. The statistical

distributions of important measurements are tracked. When parts' measures drift into

a defined "error band", the process is fixed. The error band is usually a tighter

distribution than the "failure band", so that the production process is fixed before

failing parts can be produced.

It is important to record not just the measurement ranges, but what failures caused

them to be chosen. In that way, cheaper fixes can be substituted later (say, when the

product is redesigned) with no loss of quality. After TQM has been in use, it's very

common for parts to be redesigned so that critical measurements either cease to exist,

or become much wider.

It took people a while to develop tests to find emergent problems. One popular test is

a "life test" in which the sample product is operated until a part fails. Another popular

test is called "shake and bake", in which the product is mounted on a vibrator in an

environmental oven, and operated at progressively more extreme vibration andtemperatures until something fails. The failure is then isolated and engineers design

an improvement.

A commonly-discovered failure is for the product to disintegrate. If fasteners fail, the

improvements might be to use measured-tension nut drivers to ensure that screws

don't come off, or improved adhesives to ensure that parts remain glued.

If a gearbox wears out first, a typical engineering design improvement might be to

substitute a brushless stepper motor for a DC motor with a gearbox. The

improvement is that a stepper motor has no brushes or gears to wear out, so it lasts

ten or more times as long. The stepper motor is more expensive than a DC motor, but

cheaper than a DC motor combined with a gearbox. The electronics are radically



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different, but equally expensive. One disadvantage might be that a stepper motor can

hum or whine, and usually needs noise-isolating mounts.

Often, a "TQM ed" product is cheaper to produce because of efficiency/performance

improvements and because there's no need to repair dead-on-arrival products, which

represents an immensely more desirable product.

TQM and contingency-based research

TQM has not been independent of its environment. In the context of management

accounting systems (MCSs), Sim and Killough (1998) show that incentive pay

enhanced the positive effects of TQM on customer and quality performance. Ittner

and Larcker (1995) demonstrated that product focused TQM was linked to timely

problem solving information and flexible revisions to reward systems. Chendall

(2003) summarizes the findings from contingency-based research concerning

management control systems and TQM by noting that “TQM is associated with

broadly based MCSs including timely, flexible, externally focused information; closeinteractions between advanced technologies and strategy; and non-financial

performance measurement.”

TQM, just another management fad?

Abrahamson (1996) argued that fashionable management discourse such as Quality

Circles tends to follow a lifecycle in the form of a bell curve. Ponzi and Koenig

(2002) showed that the same can be said about TQM, which peaked between 1992

and 1996, while rapidly losing popularity in terms of citations after these years.

Dubois (2002) argued that the use of the term TQM in management discourse created

a positive utility regardless of what managers meant by it (which showed a large

variation), while in the late 1990s the usage of the term TQM in implementation of



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reforms lost the positive utility attached to the mere fact of using the term and

sometimes associations with TQM became even negative. Nevertheless, managementconcepts such as TQM leave their traces, as their core ideas can be very valuable. For

example, Dubois (2002) showed that the core ideas behind the two management fads

Reengineering and TQM, without explicit usage of their names, can even work in a

synergistic way.

Total Quality Management is an approach to the art of management that originated in

Japanese industry in the 1950's and has become steadily more popular in the West

since the early 1980's.

Total Quality is a description of the culture, attitude and organization of a companythat aims to provide, and continue to provide, its customers with products and

services that satisfy their needs. The culture requires quality in all aspects of the

company's operations, with things being done right first time, and defects and waste

eradicated from operations.

Many companies have difficulties in implementing TQM. Surveys by consulting

firms have found that only 20-36% of companies that have undertaken TQM have

achieved either significant or even tangible improvements in quality, productivity,

competitiveness or financial return. As a result many people are sceptical about

TQM. However, when you look at successful companies you find a much higherpercentage of successful TQM implementation.

Some useful messages from results of TQM implementations:

if you want to be a first-rate company, don't focus on the second-rate companies who

can't handle TQM, look at the world-class companies that have adopted it

the most effective way to spend TQM introduction funds is by training top

management, people involved in new product development, and people involved with

customers



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it's much easier to introduce EDM/PDM in a company with a TQM culture than in

one without TQM. People in companies that have implemented TQM are more likely

to have the basic understanding necessary for implementing EDM/PDM. For

example, they are more likely to view EDM/PDM as an information and workflow

management system supporting the entire product life cycle then as a departmental

solution for the management of CAD data

Important aspects of TQM include customer-driven quality, top management

leadership and commitment, continuous improvement, fast response, actions based on

facts, employee participation, and a TQM culture.



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Customer-driven quality

TQM has a customer-first orientation. The customer, not internal activities and

constraints, comes first. Customer satisfaction is seen as the company's highest

priority. The company believes it will only be successful if customers are satisfied.

The TQM Company is sensitive to customer requirements and responds rapidly to

them. In the TQM context, `being sensitive to customer requirements' goes beyond

defect and error reduction, and merely meeting specifications or reducing customer

complaints. The concept of requirements is expanded to take in not only product and

service attributes that meet basic requirements, but also those that enhance and

differentiate them for competitive advantage.

Each part of the company is involved in Total Quality, operating as a customer to

some functions and as a supplier to others. The Engineering Department is a supplier

to downstream functions such as Manufacturing and Field Service, and has to treat

these internal customers with the same sensitivity and responsiveness as it would

external customers.

TQM leadership from top management

TQM is a way of life for a company. It has to be introduced and led by top

management. This is a key point. Attempts to implement TQM often fail because top

management doesn't lead and get committed - instead it delegates and pays lip

service. Commitment and personal involvement is required from top management in

creating and deploying clear quality values and goals consistent with the objectives of

the company, and in creating and deploying well defined systems, methods and

performance measures for achieving those goals. These systems and methods guide

all quality activities and encourage participation by all employees. The development

and use of performance indicators is linked, directly or indirectly, to customer

requirements and satisfaction, and to management and employee remuneration.



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Continuous improvement

Continuous improvement of all operations and activities is at the heart of TQM. Once

it is recognized that customer satisfaction can only be obtained by providing a high-

quality product, continuous improvement of the quality of the product is seen as the

only way to maintain a high level of customer satisfaction. As well as recognizing the

link between product quality and customer satisfaction, TQM also recognizes that

product quality is the result of process quality. As a result, there is a focus on

continuous improvement of the company's processes. This will lead to an

improvement in process quality. In turn this will lead to an improvement in product

quality, and to an increase in customer satisfaction. Improvement cycles areencouraged for all the company's activities such as product development, use of

EDM/PDM, and the way customer relationships are managed. This implies that all

activities include measurement and monitoring of cycle time and responsiveness as a

basis for seeking opportunities for improvement.

Elimination of waste is a major component of the continuous improvement approach.

There is also a strong emphasis on prevention rather than detection, and an emphasis

on quality at the design stage. The customer-driven approach helps to prevent errors

and achieve defect-free production. When problems do occur within the product

development process, they are generally discovered and resolved before they can getto the next internal customer.

Fast response

To achieve customer satisfaction, the company has to respond rapidly to customer

needs. This implies short product and service introduction cycles. These can be

achieved with customer-driven and process-oriented product development because

the resulting simplicity and efficiency greatly reduce the time involved. Simplicity is

gained through concurrent product and process development. Efficiencies are realized

from the elimination of non-value-adding effort such as re-design. The result is adramatic improvement in the elapsed time from product concept to first shipment.



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Actions based on facts

The statistical analysis of engineering and manufacturing facts is an important part of

TQM. Facts and analysis provide the basis for planning, review and performance

tracking, improvement of operations, and comparison of performance with

competitors. The TQM approach is based on the use of objective data, and provides a

rational rather than an emotional basis for decision making. The statistical approach

to process management in both engineering and manufacturing recognizes that most

problems are system-related, and are not caused by particular employees. In practice,

data is collected and put in the hands of the people who are in the best position toanalyze it and then take the appropriate action to reduce costs and prevent non-

conformance. Usually these people are not managers but workers in the process. If

the right information is not available, then the analysis, whether it be of shop floor

data, or engineering test results, can't take place, errors can't be identified, and so

errors can't be corrected.

Employee participation

A successful TQM environment requires a committed and well-trained work force

that participates fully in quality improvement activities. Such participation is

reinforced by reward and recognition systems which emphasize the achievement of

quality objectives. On-going education and training of all employees supports the

drive for quality. Employees are encouraged to take more responsibility,

communicate more effectively, act creatively, and innovate. As people behave the

way they are measured and remunerated, TQM links remuneration to customer

satisfaction metrics.



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A TQM culture

It's not easy to introduce TQM. An open, cooperative culture has to be created by

management. Employees have to be made to feel that they are responsible for

customer satisfaction. They are not going to feel this if they are excluded from the

development of visions, strategies, and plans. It's important they participate in these

activities. They are unlikely to behave in a responsible way if they see management

behaving irresponsibly - saying one thing and doing the opposite.

Product development in a TQM environment:-

Product development in a TQM environment is very different to product

development in a non-TQM environment. Without a TQM approach, product

development is usually carried on in a conflictual atmosphere where each department

acts independently. Short-term results drive behavior so scrap, changes, work-around,

waste, and rework are normal practice. Management focuses on supervising

individuals, and fire-fighting is necessary and rewarded.

Product development in a TQM environment is customer-driven and focused on

quality. Teams are process-oriented, and interact with their internal customers to

deliver the required results. Management's focus is on controlling the overall process,

and rewarding teamwork.



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Awards for Quality achievement

The Deming Prize has been awarded annually since 1951 by the Japanese Union of

Scientists and Engineers in recognition of outstanding achievement in quality

strategy, management and execution. Since 1988 a similar award (the Malcolm

Baldrige National Quality Award) has been awarded in the US. Early winners of the

Baldrige Award include AT&T (1992), IBM (1990), Milliken (1989), Motorola

(1988), Texas Instruments (1992) and Xerox (1989).

TQM TOOLS

Total Quality Management (TQM) Tools

Total quality management (TQM) tools help organizations to identify, analyze and

assess qualitative and quantitative data that is relevant to their business. These tools

can identify procedures, ideas, statistics, cause and effect concerns and other issues

relevant to their organizations. Each of which can be examined and used to enhance

the effectiveness, efficiency, standardization and overall quality of procedures,

products or work environment, in accordance with ISO 9000 standards (SQ, 2004).

According to Quality America, Inc. (ReVelle, 2003) the number of TQM tools is

close to 100 and come in various forms, such as brainstorming, focus groups, check

lists, charts and graphs, diagrams and other analysis tools. In a different vein,manuals and standards are TQM tools as well, as they give direction and best practice

guidelines to you and/or your staff.

TQM tools illustrate and aid in the assimilation of complicated information such as:

identification of your target audience positive and negative forces affecting business

assessment of customer needs competition analysis market analysis brainstorming

ideas productivity changes various statistics staff duties and work flow analysis

statement of purpose financial analysis model creation business structure logistics

analysis. The list goes on, though essentially TQM tools can be used in any situation,for any number of reasons, and can be extremely effective if used properly.





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Histograms

To illustrate and examine various data element in order to make decisions regarding

them. Effective when comparing statistical, survey, or questionnaire results.

z



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Run Chart

Follows a process over a specific period of time, such as accrual rates, to track high

and low points in its run, and ultimately identify trends, shifts and patterns.

Pareto Charts / Analysis (designed by Vilfredo Pareto)

Rates issues according to importance and frequency by prioritizing specific problems

or causes in a manner that facilitates problem solving. Identify groupings of

qualitative data, such as most frequent complaint, most commonly purchased

preservation aid, etc. in order to measure which have priority.

Can be scheduled over select periods of time to track changes. They can also be

created in retrospect, as a before and after analysis of a process change.



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Force Field Analysis

To identify driving and restraining forces occurring in a chosen process in order to

understand why that particular process functions as it does. For example, identifying

the driving and restraining forces of catering predominantly to genealogists.

To identify restraining forces that need to be eradicated, or driving forces that need to

be improved, in order to function at a higher level of efficiency.



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Cause and Effect, Ishikawa or Fishbone Diagrams (designed by Kauro

Ishikawa)

Illustrates multiple levels of potential causes (inputs), and ultimate effects (outputs),

of Problems or issues that may arise in the course of business. May be confusing if

too many inputs and outputs are identified. An alternative would be a tree diagram,

which is much easier to follow.



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Focus Groups

· Useful for marketing or advertising organizations to test products on the general

public.

· Consist of various people from the general public, who use and discuss your

product,

Providing impartial feedback to help you determine whether your product needs

improvement or if it should be introduced onto the market.

Brainstorming and Affinity Diagrams

· Teams using creative thinking to identify various aspects surrounding an issue.

An affinity diagram, which can be created using anything from enabling software to

post-it notes organized on a wall, is a tool to organize brainstorming ideas.



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Flowcharts and Modeling Diagrams

· Assist in the definition and analysis of each step in a process by illustrating it in a

clear and comprehensive manner.

·Identify areas where workflow may be blocked, or diverted, and where workflow is

fluid. Identify where steps need to be added or removed to improve efficiency and

creation standardized workflow.





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PDCA

Computer software (Pollock, 2003) or by simply mapping them out on paper. They

can also be easily integrated into team meetings, organizational newsletters,

marketing reports, and for various other data analysis needs. Proper integration and

use of this tool.

The Plan-Do-Check-Act style of management where each project or procedure is

planned according to needs and outcome, it is then tested, examined for efficiency

and effectiveness, and then acted upon if anything in the process needs to be altered.

This is a cyclical style to be iterated until the process is perfected.

All of these TQM tools can be easily created and examined by using various types of

s will ultimately assist in processing data such as identifying collecting policies,

enhancing work flow such as mapping acquisition procedures, ensuring client

satisfaction by surveying their needs and analyzing them accordingly, and creating an

overall high level of quality in all areas of your organization.



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Planning a Change:



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CONCLUSION

This project concludes that Total Quality Management (TQM) has many benefits but

implementing TQM is not a bed of roses. It cannot be left to its own fate after the launchand requires constant nurturing and follow-up by the management. Management must

keep its fingers on the pulse of TQM efforts as bringing a change in culture, attitudes,

and beliefs in a sensitive and delicate matter. Problems in implementation are, therefore,to be expected and are universal in nature. However patience and loyal efforts are

required to solve these problems. TQM can lead to a drastic change in the productivity

of an org. if implemented properly. In recent years, TQM has been the most focusedarea of research as compared to other disciplines both in the industrial and academic

world. The literature is abundant with theories and applications. Since the benefits of

TQM are many therefore it doesn’t pervade only to all the sectors of the business but

also to the society.



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TEXT REFERENCES

1. “HANDBOOK OF TOTAL QUALITY MANAGEMENT”, R.P.MOHANTY

2. WWW.ISIXSIGMA.COM

3. WWW.WIKEPEDIA.COM

4. “TQM TOOLS AND TOOL KITS”, J.ReVelle

5. WWW.360-IBM.COM



DIAGRAMATIC REFERENCES

1. WWW.YEADONINC.COM/DIAGRAM.GIF

2. WWW.QAPROJECT.ORG/IMAGES/SCATTERDIAGRAM.GIF

Documents

My Tqm Project