my tqm project
TRANSCRIPT
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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
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DIAGRAMATIC REFERENCES
1. WWW.YEADONINC.COM/DIAGRAM.GIF
2. WWW.QAPROJECT.ORG/IMAGES/SCATTERDIAGRAM.GIF