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8/13/2019 TQM in Indian Context
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SANT ROCHA SINGH DEGREE COLLEGE
UNIVERSITY OF JAMMU
1
Indian Insight in
Total Qalit!
Manag"#"nt
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UNIVERSITY OF JAMMU
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CHA$TER %
DEFINATION
OF
TQM
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TQM & Total Qalit! Manag"#"nt
D"'inition o' TQM(
Total Quality Management is an approach to the business which looks critically
at the products and services of a company in order to obtain complete customer
satisfaction. The approach is called Total because it involves everything the
company does: all its processes and all of its employees at every lend in the
company all the time.
TOTAL : - ny decision or ction takes place in a particular department not
only confined to that department but influence the whole system of
organi!ation. "ence every matter should be studied as a whole
QUALITY: - Quality is the integration of #uality in production$#uality in
services$ and #uality in management process.
MANAGEMENT: - Management is an art of getting things done by others.
TQM is a continuous improvement approach and is based on a concept
That #uality can be managed and that it is a process. Quality is a way of
Managing$ not a technical activity. Quality means something more than %ust
The basics out lined in &'( )*** or &'&.
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CHA$TER )
HISTORICAL REVIEW
OFTQM
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HISTORICAL REVIE* OF TQM
The total #uality movement had its roots in the time and motion studies
conducted by +rederick Taylor in the ,)*s. Taylor is now known as thefather of scientific management./ The most fundamental aspect of scientific
management was the separation of planning and e0ecution. lthough the
division of labour spawned tremendous leaps forward in productivity$ it
virtually eliminated the old concept of craftsmanship in which one highly
skilled individual performed all the tasks re#uired to produce a #uality
product. &n a sense$ a craftsman was 12($ production worker$ and #uality
controller all rolled into one person. Taylors scientific management did away
with this by making planning the %ob of management and production the %ob
of labour. To keep #uality from falling through the cracks$ it was necessary tocreate a separate #uality department. 'uch departments had shaky beginnings$
and %ust who was responsible for #uality became a clouded issue.
s the volume and comple0ity of manufacturing grew$ #uality became an
increasingly difficult issue. 3olume and comple0ity together gave birth to
#uality engineering in the ,)*s and reliability engineering in the ,)4*s.
Quality engineering$ in turn$ resulted in the use of statistical methods in the
control of #uality$ which eventually led to the concepts of control charts and
statistical process control$ which are now fundamental aspects of the total
#uality approach. &ndustriali!ation led to mass production in which it led tothe concept of one product at a time to the assembly line of production.
Though workmanship was affected but mass production led to more %ob and
reduction in cost of the product and increase in #uality$ reduction of defects
etc.
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CHA$TER +
CONCEPT
OF
TQM
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CONCE$T
The concept of Total Quality Management 5TQM6 was introduced in the
,)*s when the statistical approach was first used in #uality control in the
factories in merica. This concept was later introduced to the corporate
managers in 7apan in the ,)4*s$ at a time when the country was gearing itself
towards$ industrial development. This concept received a further impetus in the
,)8*s with the increasing awareness worldwide on the importance of #uality.
These changes have directly affected the views and attitudes of managers in the
public and private sectors on #uality management. They have reali!ed that the
traditional philosophies and approaches in #uality management could no longer
guarantee the production of outputs that conform to the re#uirements of their
customers. s a result of this$ attention was shifted towards TQM which could
assist them in achieving e0cellence. The application of TQM not only benefits
the customers in that they receive #uality products but also benefits the
organi!ation in terms of cost savings and enhanced operational efficiency. This
is the key to the success of an organi!ation.
TQM is a continuous process that involves the whole organi!ation and is
customer-driven. This process is aimed at creating a culture of e0cellence in
any organi!ation. "ence$ TQM can be seen as a process of culture
transformation through which the e0isting elements of the culture are modified$
replaced or strengthened with better elements. These elements encompass
values and attitudes$ systems and procedures$ operational practices organi!ation
structure and so forth.
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TQM aims$ ultimately$ to enable organi!ations to achieve total #uality in all its
operational aspects. "ence #uality does not only mean the production of
#uality products and services but also encompasses all operations and activities
pertaining to an organi!ation. t this stage$ #uality will be reflected in many
9ays in an organi!ation such as effectiveness of management$ ability of the
employees$ efficiency of the operational systems and so forth.
TQM focuses on the development of #uality systems and work processes. This
is because only #uality work systems and processes can ensure the production
of #uality outputs. &n this respect$ TQM emphasi!es on customers and
suppliers. +eedback and views of the customers are used for the purpose of
designing systems and work processes to ensure that the final output conforms
to re#uirements. 'uppliers are treated as business partners who are collectively
responsible for producing #uality outputs. 'uppliers play a vital role in
supplying #uality inputs to the organi!ation.
The concept of TQM focue on the fo!!o"#n$ f#%e pnc#p!e'
;erform #uality work at the initial stage itself.
1ustomer focus is of prime importance.
There should always be a strategic approach to improvement.
ttempts for improvement should be continuous process.
Team work and mutual respect should be encouraged.
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CHA$TER ,
INTRODUCTION
OF
TQM
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INTRODUCTION
Total Quality Management is a management approach that tries to achieve and
sustain long term organi!ational success by encouraging employee feedback
and participation$ satisfying customer needs and e0pectations$ respecting
societal values and beliefs$ and obeying governmental statutes and regulations.
Total Quality Management 5TQM6 is an enhancement to the traditional way of
doing business. &t is a proven techni#ue to guarantee survival in world-class
competition. (nly by changing the actions of management will the culture andactions of an entire organi!ation be transformed. TQM is for the most part
common sense.
Total Quality Management 5TQM6 can be defined as a total commitment to the
continuous improvement of a company
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constancy of purpose to improve service? make #uality the ultimate measure of
success? stop awarding business solely on price? constantly improve service
systems? adopt training programs? provide leadership? drive out fear? break
down barriers among staff areas? eliminate slogans and targets? eliminate
numerical goals? remove barriers to employees< pride in their work? institute a
program for retraining and education? and take action.
The successful implementation of TQM can result in a #uality perception as
well as customer service leadership$ helping to ensure both customer retention
and new customer growth. This concept can directly improve the productivity
of a company of any si!e$ whether it is a start-up$ a struggling young
The term Total Quality Management 5TQM6 has been coined to succinctly
e0press a philosophy that makes #uality the driving force behind leadership$
design$ planning and improvement initiatives. +or this$ TQM re#uires the help
of eight key elements. These elements can be divided into four groups
according to their function.
The groups are:
%- Fondation: 2thics$ integrity$ trust
)- .ilding ./i01s: Training$ teamwork$ leadership
+- .inding Mo/ta/: 1ommunication
,- Roo'( @ecognition
() Foun*+t#on: TQM is built on the foundation of ethics$ integrity and trust. &t
fosters openness$ fairness and sincerity and allows involvement of every
member. This is the key to unlocking the ultimate potential of TQM. These
three elements function in unison? however$ each element
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organisational and individual ethics. (rganisational ethics establish a business
code of conduct that specifies guidelines that all employees must adhere to in
the performance of their work. &ndividual ethics include personal definitions
and decisions of right and wrong action.
,) Inte$t-: &ntegrity implies honesty$ morals$ values$ fairness$ adherence to
the facts and sincerity. 1ustomers 5internal or e0ternal6 e0pect and deserve to
receive an integral response. ;eople see the opposite of integrity as duplicity.
TQM will not work in an atmosphere of duplicity.
c) T&ut' Trust is a by-product of integrity and ethical conduct. 9ithout
trust$ the framework of TQM cannot be established. Trust fosters full
participation of all members. &t allows decision-making at appropriate levels
in the organisation fosters individual risk-taking for continuous improvement
and helps to ensure that systems and methods focus on improvement of
process and are not used to challenge people. Trust is essential to ensure
customer satisfaction. ll in all$ trust fosters cooperative environment
essential for TQM.
.) /c0: (nce the strong foundation of trust$ ethics and integrity is laid$
bricks are placed to reach the roof of recognition. This factor includes:
+) T&+#n#n$: Training is very important for employees to be highly
productive. 'upervisors are solely responsible for implementing TQM
within their departments and teaching their employees the intricacies of
TQM. 2mployees re#uire training in the fields of interpersonal skills$ the
ability to function within teams$ problem solving$ decision-making$ task
management$ time management$ performance analysis and improvement$
business economics and technical skills. =uring the creation and formationof TQM$ employees are trained so that they can become productive
employees of the company.
,) Te+1"o&0: Teamwork is also a key element of TQM and can lead to
success in business. 9ith the use of teams$ the business will receive
#uicker and better solutions to problems. Teams also provide permanent
improvements in processes and operations. 9hen working in a team$
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employees are more at ease bringing up problems that hamper their work
and can e0pect help from other employees so as to find a solution and put
it into place. TQM organisations usually adopt three types of teams:
2 Qu+!#t- I1p&o%e1ent Te+1 o& E3ce!!ence Te+1 4QIT5' These aretemporary teams designed for the purpose of dealing with specific problems
that often re-occur. These teams are set up for a period of three to twelve
months.
2 P&o,!e1 So!%#n$ Te+1 4PST5' These are temporary teams with the aim of
solving certain problems as well as identifying and overcoming causes of
problems. Their tenure is generally from one week to three months.
2 N+tu&+! Wo&0 Te+1 4NWT5' These teams consist of small groups of
skilled workers who partake of tasks and responsibilities. These teams use
concepts such as employee involvement teams$ self-managing teams and
#uality circles. These teams generally work for one to two hours a week.
c) Le+*e&h#p: &t is understandably the most important element in TQM. &t is$actually$ omnipresent in an organisation. Aeadership in TQM re#uires the
manager to provide an inspiring vision$ make strategic decisions that are
understood by all and instil values that guide subordinates. +or TQM to be
successful in the business$ the supervisor must be committed in leading his
employees. supervisor must understand TQM$ believe in it and then
demonstrate his belief and commitment through his daily practices of
TQM. The supervisor makes sure that strategies$ philosophies$ values and
goals are percolated down throughout the organisation to provide focus$
clarity and direction. key point is that TQM has to be introduced and
initiated by the top management.
6) /#n*#n$ Mo&t+&'
The one factor at this stage is communication$ which binds everything
together. 'tarting from foundation to roof of the TQM house$ everything is
bound by the strong mortar of communication. &t serves as a vital link
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between all elements of TQM. 1ommunication means a common
understanding of ideas between the sender and the receiver. The success of
TQM demands communication with and among all the organisational
members$ suppliers and customers. 'upervisors must maintain open channels$
through which employees can send and receive information about the TQM
process. 1ommunication coupled with sharing of correct information is vital.
+or communication to be credible the message must be clear and the receiver
must interpret it the way the sender intended.
There are different ways of communication such as:
2 Do"n"+&* co11un#c+t#on: This is the dominant form of communication in
an organisation. This mode of communication is achieved through
presentations and discussions. Bsing this mode$ the supervisors find it easier
to clarify the premises of TQM to the employees.
2 Up"+&* co11un#c+t#on: Bsing this type$ the lower level of employees is
able to provide suggestions to the upper management relating to the affects of
TQM. s employees provide insightful and constructive criticism$ supervisors
must listen effectively to rectify the situation that comes about through the use
of TQM. This generates a bond of trust between supervisors and employees.
This is also similar to empowering communication$ where supervisors keepopen minds and listen to others.
2 S#*e"+- co11un#c+t#on 'This type of communication is important because
it breaks down barriers between departments. &t also allows dealing with
customers and suppliers in a more professional manner.
7) Roof'This level consists of one aspect$ i.e. recognition. @ecognition is the
last and final element in the entire system. &t should be provided for both
suggestions and achievements for teams as well as individuals. 2mployees
strive to receive recognition for themselves and their teams. =etecting and
recognising contributors is the most important %ob of a supervisor. s people
are recognised$ there can be huge changes in self-esteem$ productivity$ #uality
and the amount of effort dedicated to the task at hand. @ecognition comes in
its best form when it is immediately following an action that an employee has
performed. @ecognition comes in different ways$ places and time.
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2 W+-: @ecognition may reach you by way of a personal letter from top
management or award ban#uets$ pla#ues$ trophies etc.
2 P!+ce: Cood performers can be recogni!ed in full view of departments$ on
performance boards and also in front of top management.
2 T#1e '@ecognition can be bestowed at any time$ e.g. in staff meeting$ annual
award ban#uets etc.
$UR$OSE OF TQM
The purpose of TQM is to set up a system and management discipline that
prevents unnecessary losses in companys performance cycle. The basic
ob%ective of a company is to integrate all the functions and processes within
an organisation in order to achieve continuous improvement of #uality of
goods and services and business processes. Quality is the single greatest factor
in achieving market success for any company. TQM primarily focus on total
satisfaction.
Total Quality involves everyone and all processes.
Quality involves meeting customer re#uirement.
Management involves Quality as a way of Managing.
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FACTS RELATED TO TQM
TQM is the foundation of activities to attain the goal of error-free work most
of the time. The assertion is e0pressed in various ways: right first time$ !ero
defects. Dero defect production is the result of emphasis on prevention and
careful use of measurement$ process controls and elimination of waste and
error. &t serves as a goal for continuous improvement. 'ome points related to
TQM are as follows:
;revention as the aim of all #uality assurance.
Quality as the single greatest factor in achieving market success for the
company.
@educing products and services cost
+ollowing 7ust in Time techni#ues
1ustomer 'atisfaction
;rocesses$ not people$ being the problem
Quality improvement as a continuous activity
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TQM
Eothing is perfect? there is always a better way of doing things.
"ence$ TQM is an ongoing process.
The &ndian insight into TQM indicates that mind/ is the master of
total e0cellence of performance in any field of activity.
Mind is an energy source of all the people in the organisation to reali!e
the targeted mission.
Manpower governs the #uality of collective minds.
Total #uality of mind determines the #uality of thought$ perception$
ideology$ attitudes and actions that control total #uality of product and
services provided by any organisation.
O.JECTIVES OF TQM
&t will enrich the total #uality of work$ product and services and
person.
The employee will grow to be self-dependent and self-managed.
The employee as a person will turn out to be #uality conscious.
The employees will develop self-discipline.
nother hidden ob%ective is that if we work with love and devotion$ the
glow of blissfulness will be be#ueathed by Cod.
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F"at/"s o' TQM
20
(F721T&32
'atisfaction (f 1ustomers
Dero =efect G 2rror +ree
;roducing the output right the first time
+(1B'5a6 ;rocesses and systems
5b6 (rganisation culture
5c6 1ustomers
5d6 'uppliers
'T@T2CH
5a6 1ontinuous improvement
5b6 Total involvement of the
5c6 (rgani!ation
5d6 'trategic actions
5e6 (rientation towards long term
ob%ective
5f6 1ontrol of #uality costs
5g6 ;reventive action
5h6 2mphasis on #uality assurance
5&6 'ystematic problem solving
&M;A2M2ET(@5a6 Top management 5leaders6
5b6 Total participation of workers
5c6 9ork teams
TQM
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$RINCI$LES OF TQM
The principles of Total Quality Management seek to satisfy the e0ternal
customer as well as the companys internal customers with #uality goods and
services? to satisfy the e0ternal and internal suppliers? and to continuouslyimprove processes by working smarter and using special #uality methods.
TQM re#uires that the principles of #uality management should be applied in
every branch and at every level in the organi!ation with an emphasis on
integration into business practices and a balance between technical$ managerial
and people issues. &t is a company-wide approach to #uality$ with
improvements undertaken on a continuous basis by everyone in the
organi!ation. (rgani!ations can successfully practice TQM if they have a
conducive work environment. 1onducive work environments enablesuccessful implementation of TQM and ensure that it becomes a way of life for
the organi!ation. To create such an environment organi!ation must emphasi!e
on following management principles as depicted
s seen above$ the principles are universal in nature and therefore are
applicable in any organi!ation.
21
Top
management
Customerfocus &
Customer
focus &
Training
and
reco nitio
Long-term
strategic &
!act "ased
decision
$erformance
measuremen
Team%or# and
empoee
commitment
$RINCIL$E
S
OF TQM
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(8 I Cuto1e& focue*: 9hatever you do for #uality improvement$
remember that (EAH customers determine the level of #ualityI 9hatever
you do to foster #uality improvement$ training employees$ integrating
#uality into processes management$ (EAH customers determine whether
your efforts were worthwhile.
.8 Inu&e Tot+! E1p!o-ee In%o!%e1ent 'Hou must remove fear from work
place$ then empower employee... you provide the proper environment.
Fe 1ustomer +ocus
1ontinual &nvolvement 2mployee &nvolvement
1ommunication ;rocess 1entered
+act Fased =ecision Making &ntegrated 'ystem
'trategic and 'ystematic pproach
22
ORGANISATION
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68 P&oce Cente&e* '+undamental part of TQM is to focus on process
thinking.
78 Inte$&+te* -te1: ll employees must know the business mission and
vision. n integrated business system may be modelled by MFEQ or&'( )***
98 St&+te$#c +n* -te1+t#c +pp&o+ch: 'trategic plan must integrate #uality
as core component.
:8 Cont#nu+! I1p&o%e1ent: Bsing analytical$ #uality tools$ and creative
thinking to become more efficient and effective.
;8 F+ct /+e* Dec##on M+0#n$'=ecision making must is only on data$ not
personal or situational thinking.
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Goal2 o34"0ti5"2 st/at"g! and #"thods o' TQM
Go+!'Total 1ustomer 'atisfaction
O,=ect#%e : To create a 1ulture of 1ontinuous &mprovement/ for !ero
defects$ !ero loss and !ero accident.
St&+te$- : =o the @ight Things$ right the first time$ and every time./
Metho*o!o$- : @eview$ ;lan$ Train$ 2mpower$ Team$ Aearn from =ocument$
'tandardi!e the ;rocess$ @educe 3ariation$ uditing the performance$ @eward
J @ecognition
Th" Nat/" o' TQM6th" Co/" Val"s and Con0"7ts
(> co&e %+!ue +n* concept fo&1 the ,+# of TQM8*%en f#&1?
,. 1ustomer driven #uality
. Aeadership
K. 1ontinuous improvement
>. +ull participation
4. @apid response
L. ;revention$ not detection
. Aong-range outlook
8. Management by fact
). ;artnership by development
,*. ;ublic responsibility
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Cuto1e& *%en @u+!#t-N +eedback from customers is very important in
creating customer delight.
Le+*e&h#p N 2ncourage all managers about TQM knowledge so that other
subordinates will follow.
Cont#nuou #1p&o%e1entN &mprove all matters involved in the products and
services is a no end tasks? procedure$ process$ production$ and service areas.
Fu!! p+&t#c#p+t#onN the company management must develop a reward andrecognition full employee participation in the TQM effort? training and
problem solving course.
R+p#* &epone N ;roducts and services deliver to the customers improved
short-cut time than customers normal e0pectation.
P&e%ent#on not *etect#onN =etection task always take time and cost$
proactive step must be taken instead of reactive manner.
Lon$8&+n$e out!oo0N +uture sales good sake ideas$ the company
management must has the future ahead planning i.e. the range of products
and services to be served to future customer e.g. "onda Motor 57apan6 set up
the future ,* years ahead through @J= process..
M+n+$e1ent ,- f+ctN TQM companies document all of their efforts
through data collection$ analysis$ and comparison.
P+&tne&h#p ,- *e%e!op1ent NTQM firms get the suppliers$ vendors$ unions$
and all other related outside groups to help improve the delivery of goods and
services.
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Pu,!#c &epon#,#!#t- NTQM firms also are interested in good corporate
citi!enship. They accept the responsibility of providing their customers with
safe$ detect-free goods and services? work to produce product waste? and are
prepared to share their e0periences to help other firms gain better corporate
citi!enship.
V##on Fo&1u!+t#on
9hile working on ,* TQM values and concepts$ the management of the
company also must formulate a vision regarding its view of total #uality e.g?
%. "ow does TQM fit with the companys valueI
)-9hat is the companys #uality policyI
+. &f wastes still e0ist in term of inevitable$ can it be developed to make
moneyI
Top M+n+$e1ent Suppo&t
Top rank groups in TQM-driven 1ompany must encourage their following
ranks to implement TQM tools provided by educating them how make use allof it. &t can be done while tasking through monitoring and control system.
P!+nn#n$ +n* O&$+n#B#n$
'etting up a total #uality management program is to plan and organi!e the
efforts. +or e0ample in planning? how to reduce the rate of defects in
goodsGservices produced? with very clear ob%ective and the laid out pragmatic
steps to implement. (rgani!e means appoint or designating someone to head
the monitoring and control task.
I1p!e1ent#n$ +n* Cont&o!!#n$ The implementation and controlling steps are
often determined when the firm formulates it total #uality plan. &n most cases
the focus is on key results that can be measured and charted. 9hat are the
tools and techni#ue usedI
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Th" TQM is a77li"d to #an! stag"s o' Indst/ial C!0l" 8hi0h
a/" list"d 3"lo8(
,. Marketing
. 2ngineering
K. ;urchasing
>. Manufacturing
4. Mechanical
L. 'hipping
. &nstallation and product service.
Fi5" $illa/s o' TQM a/"2
;roduct
;rocess
'ystem
;eople
Aeadership
Total Quality Management is an effective system for integrating the #uality
development$ #uality maintenance and #uality improvement efforts of various
groups in an organi!ation continuously$ so as to enable marketing$
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engineering$ production and service at the most economic levels which allow
for full customer satisfaction.
TQM has , Ta/g"ts:
,. Fetter$ less variable #uality of the product and service. Quicker$ less variable response in processes to customer needs
K. Creater fle0ibility in ad%usting to customers shifting re#uirements
>. Aower cost through #uality improvement and eliminating of non value
adding work.
.a//i"/s in TQM I#7l"#"ntation
%. Aack of commitment from top management O avoiding training for self and
employees$ meetings
)-Aack of employee involvement O particularly at managerial level$
supportive attitude$ trust
+. Aack of team work O 1o-operation and co-ordination within workers.
,. Aack of customer oriented approach O Pnow the customer need$ demand$
taste$ shortcomings
9. Aack of attention to feedback and complaints O
:- 'upplier control O in terms of materials$ cost$ #uality$ delivery etc
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;. @eview #uality procedures O up gradation$ correct past errors. Aearn from
e0perience.
."n"'its o' TQM
Total Quality Management 5TQM6 is a philosophy aimed at improving
business as a whole. 'ome of the benefits lie in the continuous improvement
of processes and products$ and enhanced efficiency of people and machines
leading to improved #uality.
The application of Total Quality Management helps in streamlining processes$
and ensures a proactive work system ready to counter deviations from the
ideal state. 9hat are some of the ma%or benefits of Total Quality
ManagementI
The ma%or thrust of Total Quality Management 5TQM6 is to achieve
productivity and process efficiency by identifying and eliminating problems in
work processes and systems. TQM addresses key problem areas such as
mistakes in work processes$ redundant processes$ unnecessary tasks$ and
duplicate efforts. TQM interventions also help with predicting and pre-
empting such mistakes and unproductive activities.
&mproving process efficiency brings about many benefits to the organi!ations
in terms of costs and time.
The 1+=o& ,enef#t of TQM #n te&1 of cot +%#n$ #nc!u*e'
o elimination of non-confirmation and repetitive work
o elimination of waste costs and re%ect products
o elimination of repairs and reworks
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o reduced warranty and customer support costs
o process efficiency leading to improved profit per product or
service
o fiscal discipline through elimination of unnecessary steps and
wasteful e0penditure
Cuto1e& +t#f+ct#on oente* ,enef#t:
,. &mprovement in product #uality
. &mprovement in product design
K. &mprovement in production flow
>. &mprovement in employee morale and #uality consciousness
4. &mprovement in product service
Econo1#c #1p&o%e1ent oente* ,enef#t'
,. @eduction in operating costs
. @eduction in operating losses
K. @eduction in field service costs>. @eduction in liability e0posure
Fo& M+n+$e1ent
-;rovides an invaluable problem-solving tool for managers and supervisors to
use
- =ispels negative attitudes
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- Management becomes more aware of problems that affect the individuals
work environment
- 2mployees gain a sense of participation
- &ncreases efficiency and productivity
- @educes turnover rate$ tardiness$ costs$ errors$ and scrap J rework
- &mproves communications within and among all departments
- =evelops management skills that were never taught$ or are long forgotten
due to lack of application
- =evelops overall company awareness and company unity
- @earranges priorities which once seemed locked in place
- Fuilds loyalty to the company
- @eveals training re#uirements in all departments
- Aessens the number of defects received from suppliers when they are
encouraged to train in #uality management
Fo& E1p!o-ee
-;rovides opportunity for personal growth and development 5as a result of
team training activities6 and the opportunity to develop and present
recommendations
- &ncreases innovation 5through a greater variety of approaches and
perspectives6 for solving problems$ removing fear of failure
- 2mployees use their knowledge and skills to generate data-driven
recommendations that will lead to well-informed decision-making
- 2ncourages decision-making at the most appropriate level
- &ncreases motivation and acceptance of new ideas
- &ncreases %ob satisfaction 5as a result of the opportunity to participate in and
have influence over work6
- @ecogni!es employees for their knowledge$ skills$ and contribution toward
improvement
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- =evelops mutual respect among employees$ management and customers
- ;romotes teamwork.
32
CHA$TER 9
Indian Insight
Into
TQM
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Indian Insight into TQM
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&n the &ndian conte0t$ TQM indicates that mind is the most significant
dynamic of total e0cellent performance in any organisation. &t gives the
direction to the management to establish vision$ mission and business
definitions. &t is the intellectual strength of human beings that controls the
#uality of human resources and processes. &ndian ethos entails thought
process$ perception$ attitude and implementation actions$ which maintain the
#uality of products and services. perfect human being is the one who
accepts everyone as a part of himself as an individual. 'uch a #uality person
in any organisation can best establish TQM. There are some factors discussed
here for #uality in a person:
ttitude towards work
1ooperation that peers$ seniors and sub ordinates impart to him
Aeadership skills
Top Management
+amily$ mentor and ideals
Teachers and Curus
The &ndian insight indicates that human mind is the master for improvising the#uality of performance in any domain. Quality of mind essentially improves
the #uality of products and services.
*" ha5" th"
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$/in0i7l"s o' TQM in Indian Cont">t(
+ollow the divine principle
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Con0lsion
&n TQM$ everyone participates in the process$ right from the managing
director to the office peon. 2veryone in the company is responsible for
producing #uality goods and services. &n TQM$ performance feedback is vital
to enable managers at all levels to improve their contribution to business. n
36
CHA$TER :
Conc!u#on
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appropriate system of recognition and reward is critical to any companys
TQM programme$ particularly as #uality improvement process. Aeadership
and teamwork go hand in hand. Aack of communication between departments$
supervisors and employees create a burden on the whole TQM process.
Last 3t not th" l"ast? /"0ognition shold 3" gi5"n to 7"o7l" 8ho
0ont/i3t"d to th" o5"/all 0o#7l"t"d tas1-
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.I.LIOGRA$HY
www.wikipidea.com
Total Quality Management $ 3olume $ &CE(B
38
CHA$TER ;
/#,!#o$&+ph-
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UNIVERSITY OF JAMMU
&ndian 2thos nd 3alues $ MF- ,st'emester $ M=B $ @ohatak
&ndian &nsight into TQM$ Ms. Eeelam =evi$Mahabir 1ollege of
Management J Technology$ Purukshetra 5"aryana6.
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Th" Q"st 'o/ E>0"ll"n0"( A Cas" Std! o' TQM$/a0ti0" in Tata St""l
40
CHA$TER @
C+e Stu*-
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A.STRACT:
The case e0amines the #uality initiatives taken by Tata 'teel is the first
integrated steel company in the world to win the worlds highest award of
#uality$ the =eming pplication ;ri!e. The company TQM e0perience and its
preparation for winning the award e0plored and the case also providesinformation about =eming pri!e. This paper aims to address the issue of
e0cellence of #uality strategy in a =eming pplication ;ri!e winner company.
EY*ORDS: Fusiness 20cellence$ =eming pri!e$ Total QualityManagement
% (INTRODUCTION : Civen the historical background to #uality which
started as a assurance functions through inspection prior to dispatch or sale$
the concept of a #uality appears to have its roots more in manufacturing than
trading or service organi!ations$ especially large manufacturing organi!ations.
fter the logical follow-up to this$ TQM as a company-wide management
philosophy started getting attention by a large number of manufacturing
organi!ations. Civen an environment of competition and concern for
productivity and effectiveness$ as also global opportunities$ many
organi!ations including private and public sectors appear to have appreciated
the need for implementing a #uality conscious culture across their companies
different functions. &ndian industry is facing stiff competition from rivals like$
china$ Porea$ and many other nations. &t is high time that is focused more
upon attaining world-class standards in terms of the #uality of its products and
services. (f late$ &ndian companies have demonstrated many successes on this
front$ such as winning =eming pri!es. ;rior to globali!ation of &ndian
economy in ,)),$ the competition in steel industry was limited. Fy adopting
measures leading to marginal improvements$ Tata 'teel was ahead of its
&ndian competitors. "owever$ the environment changed dramatically and the
company had to think out of the bo0. &t became necessary to redefine the
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business elements 5processes$ products$ market-segment$ human resource$
input materials$ plant location$ etc.6$ business priorities$ vision$ strategies$
management tool and techni#ues etc. &n effect$ the company redefined and
reoriented itself in a turbulent environment. &t started with &'( )**,
certification of various manufacturing and later service units. ;rocess&mprovements through Quality &mprovement ;ro%ects 5Q&;s6$ 3alue
2ngineering ;ro%ects and 'tatistical ;rocess 1ontrol pro%ects and (perations
@esearch ;ro%ects by managerial teams was making great contributions in
various departments and divisions of the company.
II- QUALITY JOURNEY IN INDIA : &t is known fact that thatconcept of #uality has been around for a long time$ but the stress on the word
#uality in every aspect of life i.e. in business$ service or social life hasincreased in the last few decades. Quality has awakened all the nations$
industries and organi!ations around the world. The word #uality/ means
different things to different people. The ranges of meanings include that
#uality is e0cellence$ value$ conformance to specifications$ conformance to
re#uirements$ fitness for use$ customer satisfaction$ meeting ta% Mahal$ located
in gra$ is one of the seven wonders of the world$ the konark sun Temple in
(rissa$ are the testimony to the rich cultural heritage are all. rchitectural
marvels which boost of high degree of e0cellence and e0cellent #uality.
&ndian companies are also participating in the #uality race$ although slowly.They are facing a challenge from the multinational companies since the
Covernment of &ndia implemented the policies of liberali!ation$ privati!ation
and globali!ation. &n the light of this$ the &ndian companies are in dire need of
new ideas$ approaches and techni#ues for attaining a competitive edge.
&ndustry associations like the 1onfederation of &ndia 51&&6$ +ederation of
&ndian 1hambers of 1ommerce and &ndustry 5+&11&6$ &ndian 'tatistical
&nstitute 5&'&6$ Easscom$ and speciali!ed institutions like Eational
;roductivity 1ouncil 5E;16 have a part of their organi!ations devoted to
helping the industry in the formulation and implementation of #ualitymanagement programmes$ education and training programmes and provide
consultancy services. The bureau of &ndian standards$ has also established
#uality standards in accordance with international system standards$ with main
task of product standardi!ations. Today we witness a world that has changed a
world that has changed dramatically since the nineties. Clobali!ation is here to
stay.
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III- TQM IN INDIAN COM$ANIES THROUGH DEMING
$RIBE (
&ndias interest about TQM came about by years of selfless contribution of
one 7apanese ;rofessor yoshika!u tsuda$ invited by confederation of &ndianindustry 51&&6 to introduce TQM to &ndian manufacturing industry. "e was the
guide assigned by 7apanese union of scientist and engineers that is responsible
of the promotion of TQM in 7apan J the world over. The resounding success
of several &ndian manufacturing and service firms in recent times has
invariably been linked to e0cellent practices to #uality management. &f you
consider the auto-component manufactures in &ndia$ many of them won the
=eming ward for #uality$ the largest number outside 7apan. 'imilarly$ &ndia
has the largest number of 1MM Aevel 4-certified 'oftware 1ompany in the
world. 9ith such international recognition in #uality$ these two sectors of ourindustry were able to compete globally.
&ndian companies seem to be in the favorites list of the =eming wards
5termed as the Eobel ;ri!e in the world of manufacturing6 of 7apan. The
7apanese Bnion of 'cientists and 2ngineers 57B'26 'tarted the =eming pri!e
in ,)4,. &nitially$ this pri!e was open only to the 7apanese industry$ but in
,)84 it was open thrown open to the rest of the world. +rom ,))8 onwards$
&ndian companies started figuring in the =eming pri!e list$ with 'undaram
1laytons brakes division claiming the honor first. =eming Crand ;ri!e is the
highest honor in #uality awarded to a company for e0cellence in Total QualityManagement. This pri!e given to companies for demonstrating practicing
TQM in areas of production$ customer service$ safety$ human resource$
corporate social responsibility$ environment
,))8 'undram-1layton Aimited$ Frakes =ivision
**, 'undaram Frake Aining Aimited
** T3' Motor 1ompany Aimited
**K Frakes &ndia Aimited$ +oundry =ivision Mahindra and Mahindra
Aimited$ +arm 2#uipment 'ector@ane Frake Ainings Aimited 'ona Poyo
'teering 'ystem Aimited
**> '@+ Aimited$ &ndustrial 'ynthetics Fusiness Fusiness Aucas- T3'
&ndo-Culf +ertili!ers Aimited
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**4 Prishna Maruti Aimited$ 'eat =ivision @ane 2ngine 3alves
Aimited @ane T@9 'teering 'ystem Aimited$ 'teering Cear =ivision
** ashi &ndia Class Aimited$ uto Class =ivision @ane 5Madras6
Aimited
**8 Tata 'teel Aimited
*,* Eational 2ngineering &ndustries Aimited 5&ndia6
*,, 'anden 3ikas 5 &ndia 6 Aimited The =eming Crand ;ri!e
*, Tata 'teel Aimited 5&ndia6 @ane 5Madras6 Aimited 5&ndia6 Aucas-
T3' Aimited 5&ndia6
IV- CASE( TQM JOURNEY OF TATA STEEL:
Tata 'teel is among the top ten global steel companies with a crude steel
production capacity of L.4 million tones per annum 5mtpa6. Tata steel has
been practicing TQM since the late ,)8*s which was when the Tata steel
initiated several #uality activities O #uality circle$ &'( certification$ #uality
improvements using %uran methods$ etc. The steel giant won the deming
application pri!e **8 J deming grand pri!e 5=C;6 *, for achieving
distinctive performance improvement through the application of total #uality
management. &n ***$ after winning the 7@= Q3 ward$ by going through
the deming process$ Tata 'teel discovered the deeper meaning of TQM for
achieve the ne0t #uantum %ump in performance and improvement. &n **4$
Tata 'teel conducted a TQM diagnosis along with the 7B'2 team for getting
the status of TQM implementation in the organi!ation.
St/at"gi0 $oli0! Manag"#"nt- Tata 'teel is committed towards
sustainable development and growth as an integral part of its business
philosophy. +irst adopting the Total Quality Management 5TQM6 philosophy
as a part of 1ompetitive 'trategy was formally launched in the company in
late ,)8*. &t started with massive effort on education and training on TQM.
Dail! Manag"#"nt- =aily Management is the fundamental of TQM in
Tata 'teel. &ts needs to institutionali!e processes leading to long O term
substances to its performance. =aily management provides the solid
foundation for substance to Tata 'teel. The company established a
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standardi!ed approach for integrating daily management activities in various
functions such as operations$ maintenance$ customer services etc.
$"o7l" Manag"#"nt - the most fundamental challenge was to create a
mindset that looks at improvement activities as essential for achieving targets
and goals. TT 'teel create guidelines and reference manuals to have
uniformity and alignment across the organi!ation$ dealing with K4$***
employees$ in e0plicitly stating and documenting improvement targets and
how to go about achieving these in a systematic manner$ in standardi!ed
approaches and creating alignment to profits and goals and so on.
V- AFTER *INNING THE $RIBE:
The defect rate in the manufacturing process at Tata 'teel decreasedsubstantially and customer returns came down as a result of these #uality
control initiatives. Tata 'teel noticed many tangible and intangible benefits in
their %ourney of TQM. There were all-round improvement in customer
satisfaction$ new product development$ supplier satisfaction$ employees and
their family satisfaction$ breakthrough achievement in business results. Tata
'teel believes that =eming ;ri!e is not only a ticket for TQM %ourney towards
organi!ational e0cellence. Quality goals are moving targets. &t knows that its
future lies in further improving the product #uality and productivity along
reducing costs and implementing lean manufacturing systems and T;M.
VI- LEARNING:
1ompulsion of competitive business environment is not merely to do well$ but
to do well than the competitiveness. This challenging situation is compelling
industries to opt for new strategies leading to superior performance: the goal
of TQM system. This calls for rethinking and reworking of an organi!ations
e0isting processes$ position$ posture and attitude with a view to transforming
the organi!ation to enable it to cope with the changing conte0t of business$
where customer is king. TQM provides the vehicle for change andtransformation by making the organi!ation more customers focused people
driven$ fle0ible and committed to continuous improvement.
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The present study has resulted in the following valuable lessons:
,. Clobali!ation has thrown new challenges as well the opportunities.
. &mplementation of TQM leads to improvement in performance.
K. 1ulture is an important issue for the success of TQM.
>. wards models provide a roadmap$ a framework for e0cellent.
F#$) ( /enef#t of TQM S-te1
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VII- CONCLUSION:
1ontinuous improvement is an integral part of culture in Tata 'teel. Tata 'teel
addresses all aspects of social$ environmental and economic performance like
safety and health of the people$ resource conservation$ development ofinnovative products and processes$ value creation for all stakeholders and
contributing to the prosperity of the communities and nations. Tata 'teel
Quality policies guide in its approach such that #uality principles and
practices are applied throughout the business using &'()**,$ the global
#uality and customer relationship standard. 9ith the Tata 'teel better
understanding of TQM on the =eming pplication ;ri!e %ourney$ its customer
focus and market orientation have undergone a sea-change. 9e must
understand that although our companies have won the crucial battle of saving
their home turf$ the war is still not over as long as we do not make our
stronghold in the international arena. 'o far$ our companies have been
attaching the highest priority to attaining &'( certifications$ but they keep in
mind that if &'( clauses are not implemented seriously$ the companies may be
deceiving themselves. The cru0 of the issue is that whatever #uality
philosophy we follow$ be it TQM$ 'i0 'igma$ &'( )***$ or something else$
we must have a continuous !eal and serious intentions of improving the
#uality of our products and services. Tata 'teel has inculcated the philosophy
of Total Quality Management and Fusiness 20cellence as part of the
companys 1orporate Fusiness 'trategy. ny company can gain competitive
advantage and move towards
Fusiness 20cellence as described in this paper. Tata 'teel has done this
because of its foresight and the vision it had among the Top Management
Aeadership and support from all its employees in the company. These
companies have as prepared themselves to compete and be successful in a
competitive globali!e world.
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VIII- REFERENCES:
%. P($ H. and CA2EE"$ M.$ **K$ the leading edge in Q+=: past$ present
and future$ &nternational 7ournal of Quality J@eliability Management$ 3ol.*$
Eo.,$ pp.*-K4.
)-PP2@ME'$ "..$ F(C2@=$ ;. and 3('$ F.$ ,)))$3irtuous and
vicious cycles on the road towards international supply chain management$
&nternational 7ournal of (perations and ;roduction Management$ 3ol.,)$
Eos.4-L$ pp.4L4-48,.
+- F2M(9'P&$ P.$ ,)),$ @estoring the ;illars of "igher 2ducation$ Quality
;rogress$ 3ol.>$ Eo.,*$ pp.K->.
,. Fowen$ =.2. 5,)8L6$ Managing customers and human resources in service
organi!ations. "uman @esources Management: 4K-K8>
9-Fuckley$ . 5,))L6. The essence of Total Quality Management. 7ohn Fank.
;rentice "all of &ndia.
:. 1arothers 7r.$ C.". 5,)8L6. +uture (rgani!ations of 1hange. 'urvey ofbusiness: ,L-,.
;. 1asey$ @G5,))6. Eon-traditional view of customer satisfaction- study of
the merican ;roductivity and &nventory 1ontrol 'ociety. B.'.: ,K*-,K.