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Total Quality Management(TQM)
A pragmatic long systems approach initiated and
driven by the top management to bring about total change and interlink and integrate everyone ,every function, every process and every activity of the organization through involvement, participation and cross functional management to meet the dynamic needs of the customer and create a loyal but at the same time a diversified customer base.
Benefits of TQM
TQM v/s Traditional approachCharacteristics TQM approach Traditional approach
Management understanding and attitude
quality management as essential part of company system
No competition for quality. Tend to blame quality department for quality problems
Quality organization status Quality is through the leader quality is hidden in manufacturing , not a part of the organization
Problem handling Prevention of problems Fire fighting approach
Quality improvement action
Continuous activity No organizational activity
TQM v/s Traditional approach(cont)…Characteristics TQM approach Traditional approach
Priority Quality Profit
Focus Customer satisfaction Management's requirements
Organization Networking among functions Hierarchical
Span of control Large Short
Production schedule
Economy to time, just in time production
Long production runs
Communication With action By slogan
Responsibility for quality
With top management Delegated to subordinates
Perception of quality
Multidimensional (dimensions are customer oriented)
Conformance to specification
Employee Given significant role regardless of level to find better ways to work
Monolithic work pattern
TQM v/s Traditional approach(cont)…Characteristics TQM approach Traditional approach
Work force Multi-skilled , job rotation Division of labour
Quality productivity relationship
High correlation Not recognized
Ways of improving Changing corporate culture , increasing employee education , use of process control
Improvement in inspection and gauging .
Key to firms success Customer satisfaction and production of high quality goods and services
Growth in sales , profits and return on investments.
Evolution of TQMcriterion inspection Statistical
quality controlQuality
assuranceTotal quality management
Objective Measurement of specifications
Control of processDistribution of responsibility o functional areas
Continuous quality
improvement at every level, place
& stage
Focus Uniform product quality
Reduction in inspection work
Evolution at all stages
Customer (internal & external )
Tools Gauges and measurement
techniques
Statistical quality control tools and
techniques
Quality planning documentation
and quality systems
Commitment , participation, motivation, education &
training organization development
Evolution of TQM (Cont)…
criterion inspectionStatistical
quality control
Quality assurance
Total quality management
Responsibility for quality
Inspection departmentProduction
departments All departments
Top management leadership and
everyone in organization
ApproachInspection , sorting,
gradingTrouble shooting and controlling
the quality
Assuring to build quality by planning
programme design and programme
control
Strategic management,
team involvement and action research
Approaches to define QualityTranscendent Approach
Quality is absolute and universally recognisable. It is common notion used by laymen There is no subjective judgement and is estimated by
looking at the product
Product Based ApproachAttributes of a particular product in a specific categoryThese attributes are accepted as bench of quality by the
industryOthers in the same industry try to produce close to this
quality
Approaches to define QualityUser Based Approach
Defined as “Fitness for use”Viewed from user’s perspective and is dependent on how
well does the product meet needs of the consumer.Also known as Customer Oriented Approach
Production Based ApproachAn outcome of engineering or operational excellence and
is measured in terms of quality of conformanceThe producer has specifications and produces the product
as per the specifications
Approaches to define Quality
• Value Based Approach– Quality is viewed in context of price– Quality is satisfactory, if it provides desired
performance at an acceptable price– Customer looks at the total value proposition and
not the price alone
ice
BenefitsValue
Pr
Attributes of QualityPerformance
Product’s primary operating characteristicsFeatures
Augmented product – The “bells & whistles” of the product
ReliabilityAbility of the product to function at the specified level
of performanceConformance
Degree to which characteristics of the product meet pre-established standards
Attributes of QualityDurability
Length of time a product can be used before it deteriorates or becomes non functional
Serviceability Speed, competence & courtesy of providing ASS
AestheticsLook, feel sound, taste, smell
Perceived QualityResulting from advertisement, image, brand name,
earlier use, hearsay
Evolution of Quality Management
Evolution of Quality ManagementMass Inspection
InspectingSalvagingSortingGradingRectifyingRejecting
Quality ControlQuality manualsProduct testing using SQCBasic quality planning
Quality AssuranceEmphasis on preventionProactive approach using
SPCAdvance quality planning
Total Quality ControlAll aspects of quality of
inputsTesting equipmentsControl on processes
Evolution of Quality ManagementCompany wide Quality Control
Measured in all functions connected with production such as
R&DDesignEngineeringPurchasing,Operations etc
Total Quality ManagementMeasured in all aspects of business, Top management commitmentContinuous improvementInvolvement & participation of employees
Evolution of Quality Management
Evolution of Quality Management
Gurus of TQM
Dr. W E Deming Dr. J M Juran Dr. Philip Crosby
Gurus of TQM
Dr. Kaoru IshikawaDr. Genichi Taguchi Dr. Masaaki Imai
Gurus of TQM
Dr. Shigeo ShingoDr. Yoshio KondoDr .Armand V. Feigenbaum
Dr. James Harrington
Top management to define the organization's vision, mission and values
Study the prevailing market and its trends Study the customer segment
Study the customer and her requirements/expectations
Top management to identify key business results for the organization
Study the organization's positionCarry out the SWOT analysis
ROADMAP FOR TQM
Top management to plan strategies for the business
Top management to convince itself about TQM to serve as a guide towards the organization’s mission
Draw up a plan for culture change, customer focus and employee empowerment
Select priority areas/products for TQM applications
Institute culture change teams and start including
organizational values amongst the employees at all levels
through various programs and group initiatives.
Arrange informational training on:Organization's market, its
products/services.Business environment
Its customers, their requirements and expectations
Analyze processes:What are the processes?What are they delivering
currently?Where are the problems?
Train the staff on tools such as SPC,SOC, QFD, cause-effect
diagrams and problem solving
Arrange skills training on:Technical aspects
Interaction and communication aspects
Make internal customer agreement
Make supply chain agreement
Design processes to make them deliver to
customer needs/expectations
Design information systems:
Internal informationExternal information
Assess the ongoing performance forCustomer satisfaction Key business results
TQM Models (OAKLAND Model)
Participative communication culture network
commitment
QualityImprovement
Teams
Quality systemsTools and
Techniques
process
Sohal, Tay, Wirth’s integrated model
Statistical Qualitycontrol
Total Participation
Quality improvement
team
Systematic problem
solving focus
Customer focus
TQM mission:Continuous
QualityImprovement
Building Blocks of TQM
-Continuous improvement-Added value management activity
-Employee involvement
SPC,SQC
UserSupplier
Chain
Management Control system
ProcessFlexibility
Workplace Design
-Quality planning-Leadership
-Vision for world class competitiveness
3-dimentional Quality model process continuous improvement
people relationshipProduct/service
SortClear out rarely usedItems by Red Tagging
StraightenOrganise and Label aPlace for Everything
ShineClean ItStandardise
Create Rules to Sustainthe first 3 5’S
SustainUse Regular ManagementAudits to Stay Disciplined Eliminate
Waste
5 S’s
Points of caution in TQM implementation
• Full commitment from all levels of employees• Attitudinal, informational and skill training to
managers as well as non-managerial staff• Strategic plans and specific attainment chalked
out.• Complete satisfaction of the customer is the AIM.• TQM is an ongoing activity.• Full attention to both- customer and key business
result(returns on investment) is essential.
SIX SIGMASIX SIGMA
Introduction
Business management strategyDeveloped in Motorola in 1981Improve quality of process outputsBy:-
Finding & removing cause of defectsMinimizing variability
Contd…
Uses statistical toolsDedicated people or expertsEach project follows:-
Defined sequence of stepsQuantified targets
Historical overview
Originally to improve manufacturing processesNow extended to other businessBill smith first formulated at MotorolaSix sigma heavily inspired by:-TQM , Quality control , Zero defect
Six Sigma Methods Production
DesignService
Purchase
HRM
Administration
QualityDepart.
Management
Marketing
IT
Six sigma - Now extended
Six sigma - Doctrine
Continuous effort to achieve resultsProcesses can be measured, analyzed improved and controlRequires commitment from entire organization
Six sigma - Features
Clear focus on achieving quantifiable financial returnsIncreased emphasis on strong management supportSpecial infrastructure of people to lead & implement six sigma approachMaking decision on verifiable data rather than guesswork
What is six sigma?
A performance goal, representing 3.4 defects per million opportunitiesA series of tools & methods used to improve products, processes, servicesA statistical measure indicating no. of standard deviations within customer expectation
LSL USL
Statistical background
99.9997 % performance
Target =
Six-Sigma
Contd…
Sigma in six sigma signifies standard deviation or variation from meanTwo vertical lines are specification values for any processOne sigma means 68% of readings lie between specification limitsSix sigma means 99.9997% of readings lie in specification limits
Performance Standards
23456
30853766807
62102333.4
DPMO69.1%93.3%99.38%99.977%99.9997%
Yield
Processperformance
Processperformance
Defects permillion
Defects permillion
Long term yield
Long term yield
Current standardCurrent standard
World ClassWorld Class
Contd…
Registered service mark & trademark of Motorola Inc.Early adopters includes:- General Electric, HoneywellBy the end of 1990’s, two-third of fortune 500 organization had begun six sigma initiatives
Six sigma - Inspiration
Inspired by Deming’s PDCA CyclePlan – Do – Check – Act
Plan
Do
Check
Act
Six sigma - Methodologies
Works on two methodologies:-DMAIC
DMADV
DMAIC
Barriers in Implementing Six sigma
Top management sometimes not interested
Employees not ready to accept
Problems in communicating with employees
Employees experience “statistical anxiety” which has to be minimized before learning
Statistical methods need to be matched to management style and organizational culture
Top management sometimes not interested
Employees not ready to accept
Problems in communicating with employees
Employees experience “statistical anxiety” which has to be minimized before learning
Statistical methods need to be matched to management style and organizational culture
Six sigma - BenefitsBetter monitoring of processesBetter involvement of peopleStaff motivation level is raisedProductivity is increasedProfits go up
ISO & TQM
What is ISO?• About ISO - International Organization for
standardization.• Headquarter - Geneva, Switzerland• ISO 9000 - ISO 9000 is a set of written standards,
laying down a quality system. ISO 9000 consists of 5 international
standards for quality management. i.e. ISO 9000, ISO 9001, ISO 9002, ISO 9003, ISO 9004• Purpose - A customer focused quality system through its disciplined documentation
process.
ISO DescriptionISO SERIES
• ISO 9000
• ISO 9001
• ISO 9002
• ISO 9003
• ISO 9004
DESCRIPTION• Set of international standards for quality
management system. It defines the 5 key quality terms in the ISO terminology.
• When two parties require the demonstration of a supplier’s capability to design, produce, install and service a product.
• Model for quality assurance in production and installation.
• Model for quality assurance in final inspecting and testing.
• Provides quality management guidelines and determines the extent to which every element is applicable
Functions of ISO• To discover what is being done.• To write down what is being done.• To justify what is being done.• To record the consistency between things that
are written and followed.• To review what is being done.• To revise all problems/improvements areas.• To start all over again and incorporate
improvements again and again.
Role of ISO in TQM journey• Conformance to quality through ISO 9000
certification.
• Customer driven approach because of participation in development of new tools and techniques.
• Market driven approach to beat competitors through continuous improvement in quality.
• Works as a strategic weapon and helps the firm in self assessment.
ISO 9000 Vs TQMISO 9000
Focuses on-• Certification• Quality system• Audits & checks• Maintenance of what is
documented• An assurance to external
customers that a quality system is being pursued
TQM
Focuses on- • Customer delight &
satisfaction• Human factor• Flexibility & change
management• Continuous improvement
Advantage of TQM
Tangible Gains Total product quality Productivity improvement Reduced quality cost Increased market Increased profitability
INTANGIBLE GAINS
• Effective team work• Improvement in human realtions• Customer satisfaction• Improved communication• Improved corporate health
Disadvantage of TQM
• No formal strategy• Failure to provide incentive by recognition• Lack of effective communication• Narrowly based training• Lack of faith in and support to TQM activities
among management personnel• Lack of interest or incompetence of leaders
Contd……….
• Misunderstanding about the concept of TQM• Delay or non-implementation of quality
improvement team’s recommendations• Irregularity of team activities• Non-application of proper techniques• Inadequate visibility of top management
support.
60
THE COMPANY• XYZ Company started in 1967.
• Located at Bombay,has 27 full fledged branches at strategic locations nationwide and over 800 dealers and manufacturing units abroad.
• Products Manufactured :-
a)Office Equipment.
b)Electronic Business Engineering.
c)Consumer Durables.
d)Industrial products – made to order machines.
61
Contd..• XYZ Company has :-17 manufacturing plants.
Rs. 600 crores sales turnover.
8000 employees.
35% of Indian Market.
A good quality manufacturer reputation.
62
NEED FOR TQM1. A quality culture.
2. Diversification.
3. Commitment of the employee.
4. Future growth.
5. Progress and development .
63
IMPLEMENTATION
In order to bring about a cultural change it is essential to investigate the present.The insight of various issues was obtained by carrying out a survey using interviews and quetionnaire.The focus primarily was on –
• Can TQM techniques be applied to the work ?• What is the response from different departments ?• Do people see management as committed to TQM ?• How TQM is perceived ?• What is the perception of customers about the company ?• What are the quality costs ?• What are the results of part quality improvement efforts ?
64
Conclusions Drawn by The Company
1. It was considered by most in the organisation as important for future growth and success.
2. The level of service provided offered by XYZ was not always acceptable to customers.
3. Cost of poor quality amounted to 18% of the operating cost.40% of the people surveyed felt they received inadequate information/training about what quality was expected in their work.
4. 54% of the people surveyed felt that they were given little or no incentive to improve the quality of their work.
5. 77% of the people surveyed felt quantity was the main criteria for reward in XYZ,not quality.
65
Contd..6. The earlier quality improvement efforts were well supported
by people and were successful.7. People expected more commitment from top management
for quality.
66