tqm at force itfinal1

8/13/2019 Tqm at Force Itfinal1

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A

PROJECT REPORT ON

TOTAL QUALITY MANAGEMENT (TQM)

Submitted to

In requirement of partial fulfillment of Master of Business

Administration MBA!

Submitted on

Submitted b"


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ACKNOWLEDGEMENT

It gives me great pleasure to prepare project report on Total Quality Management in

Force-IT.

I am very thankful to __________________for providing valuable guidance and advice

from time to time.

I ould like to thank Mr. !inay Thaly "#irector $onsulting %ervices& and %hantanoo

'oshi "$onsultant&.

This report is the combined support of all above mentioned and ithout hom the

project could not be completed.


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PREFACE

Being a student of a professional course, it is very essential to have a real knowledge

of management and its functions. Taking this into account an M.B.A student has to undergo

the training. Thus the inclusion of training gets the consideration and improvement in the

program as it allows the student exposure to the real business environment.

Not alone the practical training is needed but the theoretical knowledge is also being

important. o that we can understand practical business dealing and how company works in

real.

! have undergone training at "#$%& ' !T and !T olution %ompany. T(M now a

days getting implemented in almost every second organi)ation. This pro*ect explains concept

of T(M and how it is implemented in "#$%& ' !T.


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!mplementation of T(M

T(M Tools

%hapter '2 %ompany Analysis

!ntroduction of %o.

ervices +rovided by "orce ' !T

+roducts

wot Analysis

%hapter ' 3 !ndustry Analysis

%urrent cenario

!mpact on !ndia4s 0rowth

Ma*or +layers

!nvestment

0ovt. !nitiative

$oad Ahead

%hapter ' 5 $esearch Methodology

Aims and #b*ective

cope of +ro*ect

$esearch Methodology

/ata %ollection

ampling /esign

imitations

%hapter '6 /ata analysis and !nterpretation

T(M "orce 7 !T trategy

Analysis of urvey


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%hapter '8 $ecommendation

%hapter ' 9 Annexure

%hapter ': Bibliography

GLOSSARY

(. TQM - Total Quality Management

). I%* - International %tandard *rgani+ation

,. T M - Total roductive Maintenance

. Q$$s - Quality $ontrol $ircles

/. 0 1 - 0usiness rocess 1e-2ngineering

3. TQ$ - Total Quality $ircles

4. 5TM - 5utomated Teller Machines

6. $ $ - $ontrol rocessing $entre

7. $5# - $omputer 5ided #esign(8. I9$:. - Including

((. #$5 - lan-#o-$heck-5ct

(). QM% - Quality Management %ystem


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Total Quality Management is a management approach of an organization,

centered on quality, based on the participation of all its members and aiming at

long-term success through customer satisfaction, and benefits to all members of

the organization and to society." It is a management strategy aimed at

embedding awareness of quality in all organizational processes . TQM requires

that the company maintain this quality standard in all aspects of its business.

Quality can be iewed from multiple perspecti es! attribute of the product,

customer satisfaction, conformity with manufacturing specifications and alue

relation of quality and price#.

Total Quality Management is a management approach that originated in $%&'(s

and has become more popular since early $%)'(s. Total Quality is a description

of the culture, attitude and organization of a company that stri es to pro ide

customers with product and ser ices that satisfy their needs. The culture

requires quality in all aspects of the company(s operations, with processes being

done right the first time and defects and waste eradicated from operations.

Total Quality Management TQM# is a method by which management and

employees can become in ol ed in the continuous impro ement of the

production of goods and ser ices. It is a combination of quality and management

tools aimed at increasing business and reducing losses due to wasteful practices.

TQM has been widely used in manufacturing, education, go ernment and ser ice

industries as well as *+ + space and science programs. ome of the companies

who ha e implemented TQM include ord Motors, hillips, Motorola, Toyota

Motor, orce-IT etc.


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$hapter T o is about theoretical frame ork of TQM. It includes #efinition of TQM5:ITG is Customer Delight

hich aim to meet the follo ing@

State& #ee&s "in simple ords called %atisfiers&

U#state& #ee&s "in simple ords called #is - %atisfiers&

E3*e tat!o#s "in simple ords called #elighters&

5ccording to #eming< Q>5:ITG should be aimed at fulfilling the needs of the

customer< present and future.

.ua(!t/ E5o(ut!o#

hase Quality

Measurement

Quality

$ontrol

Quality

5ssurance

Total Quality

Management

%cope roducts 1a

Material

D roducts

1a Material

D roducts

D

rocess

1a Material

D roducts D

5ll rocess

5rea of

5ction

2nd of :ine 2nd of :ine *nline 0efore the beginning

%ystem 5ppraisal 5ppraisal 5ppraisal

revention

revention

5ppraisal

Function Inspection Inspection Inspection lan< $ontrol


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$ontrol 5nalysis Improve and 5udit

%tatus *perators %upervisor Manager Heneral Manager or

!ice resident

1eporting roduction

%upervisor

orks

Manager

Heneral

Manager

Managing #irector or

resident

Co#t !$ut!o# o' .ua(!t/ Gu us

5 Huru< by definition< is a good person< a ise person and a teacher. 5 ;uality Huru in

addition to having these characteristics< ill be< introducing < innovating and

implementing concept and approach to ;uality ithin business that ill make a major

and lasting impact or give value for money or more 1eturns on Investment"1*I&. e

cannot move ahead ithout addressing their contribution to orld of ;uality. There

have been three groups of Hurus since the (7 8?s@

2arly (7/8?s 5mericans ho took the messages of ;uality to 'apan

:ate (7/8?s 'apanese ho developed ne concepts in response to the 5mericans


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(748?s-(768?s estern Hurus ho follo ed the 'apanese industrial success

It is beyond the scope of this project to go into nitty-gritty on each of the Hurus< their

philosophies< teachings and toolsE ho ever< a brief overvie of their contribution to the

;uality journey is given< supported by several references.

W E&)a &s Dem!#% - The 5mericans ho ent to 'apan< placed greatimportance and responsibility on management< at the individual and company levelansei 7 &xamining the way the user applies the product leads to improvement in the

product itself.

3 Miryokuteki ?inshitsu 7 Broadens management concern beyond the immediate

product.

T(M re1uires that the company maintain this 1uality standard in all aspects of its business.

This re1uires ensuring that things are done right the first time and that defects and waste are

eliminated from operations.

Total (uality Management @T(M is a management strategy aimed at embedding awareness

of 1uality in all organi)ational processes. T(M has been widely used in manufacturing,

education, government, and service industries, as well as NA A space and science programs.


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T%M &' A %(A)IT* ORIENTE# APPROAC+,

Total (uality Management @T(M is one of 1uality'oriented approaches that many

organi)ations adopt. !t is generally acknowledged that manufacturing companies need to be

1uality oriented in conducting their business to survive the business world. T(M is an

integrated management philosophy and a set of practices that emphasi)e top management

commitment, customer focus, supplier relationship, benchmarking, 1uality'oriented training,

employee focus, )ero defects, process improvement, and 1uality measurement. This paper

investigates the structural linkages between T(M, product 1uality performance and business

performance. 0iven the nature of this study, the statistical analysis techni1ue called tructural

&1uation Modelling was used. This preliminary result suggests that there is insufficient

statistical evidence to conclude significant simple relationships between T(M, product

1uality performance, and business performance.

C+ARACTERISTICS O$ T%M&

The characteristics of T(M, as revealed from above definition are as follows=

. T(M is customer oriented.

-. T(M re1uires a long term commitment for continuous improvement of all processes.

2. The success of T(M demands the leadership of top management and continuous

involvement.

3. $esponsibility for establishments and improvement of systems lies with the

management of an organi)ation.

5. T(M is a strategy for continuously improving performance at all levels and in all

areas of responsibility.

POTENTIA) BENE$ITS O$ T%M&


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The advantages of adopting T(M system compared to conventional 1uality system are

numerous and are outlined below.

. T(M helps to focus clearly on the needs of the market. The traditional approach of

1uality control focuses on the technical details of a product so as to satisfy the

customer. ?owever, the customer longs for different satisfaction perspectives which

are generally overlooked in the traditional approach. The needs change from person to

person and also from place to place. As T(M focuses on the concept of university, it

tries to abstract the satisfaction perceptions of the market and thus helps the

organi)ation to identify and meet the re1uirements of the market in a better way.

-. T(M facilitates to aspire for a top 1uality performer in every sphere of activity. !t is a

well accepted fact that the negative attitudes of employees and non'participative

culture of the organi)ation pose the greatest hurdle to organi)ation4s success, growth

and prosperity. T(M emphasis, on bringing about attitudinal and cultural change

through promotion of participative work culture and effective team'work. This serves

to satisfy the higher human needs of recognition and self'development and enhances

employee4s interest in the *ob.

The employee4s performance, thus, is not restricted to the product or service areas but

reflects in other spheres as well.

2. !t channeli)es the procedures necessary to achieve 1uality performance. (uality in its

true sense cannot be achieved instantly. !t re1uires a systematic and a long'term

planning and strategic approach. By focusing on defining the 1uality policies, goals

and ob*ectives, and communicating these properly to one and all in the organi)ation,


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adopting (% and +% techni1ues and developing and using a system of evaluation ,

the organi)ation can channeli)e their efforts to achieve the desired and ob*ectivated

1uality performance.

3. !t helps examine critically and continuously all processes to remove nonproductive

activities and waste. The organi)ations always aim at improving productivity as it

leads to reduction in cost resulting in increase in profitability. The efforts in this

direction are contributed because of the formation of 1uality improvement teams

which meet regularly and through a systematic approach which tries to remove

nonproductive activity. A continuous effort to identify the problems and resolve them

helps to reduce the waste. The culture of well being thus improves housekeeping,

cost'effectiveness and safety.

5. !t gears organi)ations to fully understand the competition and develop an effective

combating strategy.

The dynamic changes in the global market and the open market policies adopted by a

large number of organi)ations have resulted in increased competition and for many

organi)ations the survival has become a key issue.

"or this cause it is essential for the organi)ations to understand the competition and

develop and adopt suitable strategies to meet the challenges. As T(M helps to

understand the pulse of customer and thus the market, it gives an edge to the

organi)ations of variable nature to meet the competition.


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6. !t helps to develop good procedures for communication and acknowledging good

work. !mproper procedures and inade1uate communication are yet another bane of

many organi)ations, which result in misunderstanding, confusion, and low

productivity, duplication of efforts, poor 1uality, and low morale and so on. T(M

brings together members of various related sections, departments and different levels

of management thereby providing an effective vehicle of communication and

interaction.

8. !t helps to review the process needed to develop the strategy of never ending

improvement. (uality improvement efforts cannot be restricted to any time period.

They need to be continuous to meet the dynamic challenges. T(M emphasi)es on a

continuous and periodic review so as to make the re1uired changes.

The benefits derived by the organi)ations, therefore, are many and multifaceted.

Many of these can be measured in 1uantitative terms. ?owever, the intangible benefit,

which includes enrichment of the 1uality of the work life and many more are not

1uantifiable. At the same time, it has to be established whether they do occur or not in

order to prove or disapprove the efficacy of the concept. This can be assessed by a

well'planned research pro*ect or by carrying out an opinion survey periodically. The

tangible and intangible benefits of T(M are variable in nature.


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CONCEPTS AND P:ILOSOP:IES OF T.M

INTRODUCTION

Total (uality Management @T(M , a bu))word phrase of the :9 Cs, has been killed and

resurrected on a number of occasions. The concept and principles, though simple seem to be

creeping back into existence by ;bits and pieces; through the evolution of the ! #:

Management (uality ystem standard.

%ompanies who have implemented T(M include "ord Motor %ompany, +hillips

emiconductor, 0 %arbon, Motorola and Toyota Motor %ompany.

The latest changes coming up for the ! # : =- standard4s ;+rocess Model; seem to

complete the embodiment. T(M is the concept that 1uality can be managed and that it is a

process. The following information is provided to give an understanding of the key elements

of this process.

TOTA) %(A)IT* MANA-EMENT T%M!

Total D (uality involves everyone and all activities in the company.

%ualit" D %onformance to $e1uirements @Meeting %ustomer $e1uirements .

Mana.ement D (uality can and must be managed.

T%M D A process for managing 1ualityE it must be a continuous way of lifeE a philosophy of

perpetual improvement in everything we do.

T%M Compared to ISO /001 &

! # : is a (uality ystem Management tandard. T(M is a philosophy of perpetual

improvement. The ! # (uality tandard sets in place a system to deploy policy and


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verifiable ob*ectives. An ! # implementation is a basis for a Total (uality Management

implementation. Fhere there is an ! # system, about 85 percent of the steps are in place for

T(M. The re1uirements for T(M can be considered ! # plus. Another aspect relating to the

! # tandard is that the proposed changes for the next revision @ ::: will contain customer

satisfaction and measurement re1uirements. !n short, implementing T(M is being proactive

concerning 1uality rather than reactive.

T%M as a $oundation &

T%M is the foundation for activities which includeE

Meeting %ustomer $e1uirements

$educing /evelopment %ycle Times

now your %ustomers

2. et True %ustomer $e1uirements

3. %oncentrate on +revention, Not %orrection

5. $educe %hronic Faste

6. +ursue a %ontinuous !mprovement trategy


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8. Hse tructured Methodology for +rocess !mprovement

9. $educe Iariation

:. Hse a Balanced Approach

. Apply to All "unctions

Prin4iples of T%M &

T2e Prin4iples of T%M are as follo3s&

. (uality can and must be managed.

-. &veryone has a customer and is a supplier.

2. +rocesses, not people are the problem.

3. &very employee is responsible for 1uality.

5. +roblems must be prevented, not *ust fixed.

6. (uality must be measured.

8. (uality improvements must be continuous.

9. The 1uality standard is defect free.

:. 0oals are based on re1uirements, not negotiated.

. ife cycle costs, not front end costs.

. Management must be involved and lead.

-. Management %ommitment

. +lan @drive, direct

-. /o @deploy, support, participate

2. %heck @review

3. Act @recogni)e, communicate, revise

2. &mployee &mpowerment

. Training


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-. uggestion scheme

2. Measurement and recognition

3. &xcellence teams

3. "act Based /ecision Making

. +% @statistical process control

-. /#&, "M&A

2. The 8 statistical tools

3. T#+ @"#$/ 9/ ' Team #riented +roblem olving

5. %ontinuous !mprovement

. ystematic measurement and focus on %#N(

-. &xcellence teams

2. %ross'functional process management

3. Attain, maintain, improve standards

6. %ustomer "ocus

. upplier partnership

-. ervice relationship with internal customers

2. Never compromise 1uality

3. %ustomer driven standards

+lan and organi)e for 1uality improvement.

Pro4esses must be Mana.ed and Impro5ed&

+rocesses must be managed and improvedJ This involves=

/efining the process

Measuring process performance @metrics

$eviewing process performance


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!dentifying process shortcomings

Analy)ing process problems

Making a process change

Measuring the effects of the process change

%ommunicating both ways between supervisor and user

6e" to %ualit"&

The key to improving 1uality is to improve processes that define, produce and support our

products.

All people work in processes.

People

0et processes ;in control;

Fork with other employees and managers to identify process problems and eliminate

them

Mana.ers and7or Super5isors 8or9 on Pro4esses

+rovide training and tool resources

Measure and review process performance @metrics

!mprove process performance with the help of those who use the process


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P(a##!#% a Cha#%e-


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T.M PRO8LEM SOLVING SE.UENCE-

T(M +rocess !mprovement and +roblem olving e1uence

+ AN @+ AN A %?AN0&

/#@!M+ &M&NTT?& %?AN0&

%?&%>@#B &$I& T?&&""&%T

A%T!#N@&MB&/ T?&

"!K !NT#T?&

+$#%&"#$ 0##/

/&"!N& !/&NT!"L &IA HAT& MA>& T& T TA>&

T?& +# !B & +# !B & A T?& +&$MAN&NT

+$#B &M %AH & %AH & %?AN0& %?AN0& A%T!#N

. $ecogni)e 6. 9. /eterminethe. /etermine

what . /etermine what-. &nsure thefix

that what you ;B$A!N T#$M; relationship change wouldhelp

change worked is embedded inthe

are doing is a what is causing betweencause

@confirmation . process andthat

;+$#%& ; the problem. and effect Lour

the resulting

-. !dentify thecommodity

being processed. '+rocess!nference 2./efine somemeasurablecharacteristics

8. /eterminewhat past data

shows. o"re1uencydistribution o+areto charts o%ontrol charts'sampling

o catterdiagrams o

$egressionanalysis :./eterminewhat the

process isdoing now o%ontrolcharts 'sampling

knowledge of the process catter

diagrams %ontrol %harts

'sampling +areto analysis

?istograms %ontrol charts

'sampling catterdiagrams

process is used.%ontinue to

monitor the process toensure= A. The

problem isfixed for good.and

of value to thecommodity.

Then makethe change.

B. The processis good enough

3. /escribethe

o %ontrolcharts

;+$#%& ;o +rocess"low

'sampling

AnalysisCs o"low charts oist of steps

To ensurecontinuousimprovement,

return

5. !dentify the;Big;

problem

to step 5.

o


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Brainstorming

o %hecklists

o +areto

analysis

T:E EIG:T ELEMENTS OF T.M-

To be successful implementing TQM< an organi+ation must concentrate on the eight

key elements@

(. 2thics

). Integrity

,. Trust

. Training

/. Team ork

3. :eadership

4. 1ecognition

6. $ommunication

These elements can be divided into four groups according to their function. The

groups are@

I. Foundation - It includes@ 2thics< Integrity and Trust.

II. 0uilding 0ricks - It includes@ Training< Team ork and :eadership.

III. 0inding Mortar - It includes@ $ommunication.

I!. 1oof - It includes@ 1ecognition.


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Fou#&at!o#

TQM is built on a foundation of ethics< integrity and trust. It fosters opennessp ard communication - 0y this the lo er level of employees are able

to provide suggestions to upper management of the affects of TQM. 5s

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 bet een supervisors and

employees. This is also similar to empo ering communication< here

supervisors keep open ears and listen to others.


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$. %ide ays communication - This type of communication is important

because it breaks do n barriers bet een departments. It also allo s

dealing ith customers and suppliers in a more professional manner.

Roo'

6. 1ecognition - 1ecognition is the last and final element in the entire system. It

should be provided for both suggestions and achievements for teams as ell

as individuals. 2mployees strive to receive recognition for themselves and

their teams. #etecting and recogni+ing contributors is the most important job

of a supervisor. 5s people are recogni+ed< there can be huge changes in self-

esteem< productivity< ;uality and the amount of effort eChorted to the task at

hand. 1ecognition comes in its best form hen it is immediately follo ing an

action that an employee has performed. 1ecognition comes in different ays%5

developed the techni;ues and concepts of %Q$ and TQ$ and the 'apanese

imported these techni;ues< the further orientation and development in philoshophy%5 is based on tools and techni;ues developed

by the japenese. 5doption of these techni;ues re;uires complete redevelopment in

both methods and emphasis. The most critical challenge facing >.% ;uality

movement is the development and implementation of ;uality focused corporate

management systems that achieve the coherence< integration and

comprehensiveness of ;uality management in japan. The 5merican companies are

characteri+ed by@

(. 5 high concentration of industry on relatively fe companies.

). %tress on promoting share-holders< and

,. 1unning the company by professional managers.

These features of autonomous organi+ations and professional management have a

considerable impact on the conduct of ;uality function. 2ach organi+ation determines

independently hat it ill produce and hat ;uality policies it ill adopt.


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Marguardt divides the evolution of ;uality movement in >%5 in three periods@

(. 5dvocates for %Q$- 2mphasis on technical tools of control charts< lot

inspection and sampling schemes.

). 5dministrators for system of ;uality control- 2mphasis on the cost of ;uality

and managerial aspects of organi+ing the ;uality.

,. 5dvertising and selling ;uality consciousness-2mphasis on changing

organi+ational culture and providing an environment that ill enable people to

activate and sustain in their o n ork and in products and services produced

by the organistions ith the focus on needs of customers.

T.M !# Se 5! e I#&ust /

I#t o&u t!o#

Today?s customer has before him the possibility of a ider choice of products D

%ervices than ever before .=e is going to be demanding D keen on having the best

services in the shortest possible time D at the minimum cost .=e ill look for

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

market.

Today customers avail 5TM services ) hrs

0ook airline tickets D check-in over phone

%elf-service at fast food restaurant.

5nd many more

What !s &!''e e#t ;

%ervice is also a product of different kind .

9o time delay bet een the production D delivery of service


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5 defective product can be replaced but a defective service may create a

permanent damage.

G o)th o' Se 5! e se to

%ervice sector is gro ing rapidly due to

$hange in environment < life style etc

#emand for ne kind of services

5dvent of ne technologies

Fast development of information technology D computerisation

:ean manufacturing . "contracting out most activities&

Cha((e#%e o' Se 5! e se to

#elight customers

In a dynamic environment hich is changing fast

In gro ing competitive market

ith relatively shorter product life cycle

1e;uiring more customi+ation


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T:E ESSENTIALS OF T.M

I#t o&u t!o#TQM is the ay of managing for the future< and is far ider in its application than just

assuring product or service ;uality J it is a ay of managing people and business

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

eCternally. TQM< combined ith effective leadership< results in an organi+ation doing

the right things right< first time.

The core of TQM is the customer-supplier interfaces< both eCternally and internally (ea&e sh!*

TQM is an approach to improving the competitiveness< effectiveness and fleCibility of

an organi+ation for the benefit of all stakeholders. It is a ay of planning< organi+ing


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and understanding each activity< and of removing all the asted effort and energy

that is routinely spent in organi+ations. It ensures the leaders adopt a strategic

overvie of ;uality and focus on prevention not detection of problems. hilst it must

involve everyone< to be successful< it must start at the top ith the leaders of the

organi+ation.

5ll senior managers must demonstrate their seriousness and commitment to ;ualitysing these values F*1$2 - IT has spread message of TQM across all levels.

%haring the same values allo s F*1$2 - IT to enjoy considerable autonomy

and s iftness of action ithout compromising their cohesiveness. It also allo s

them to mobili+e teams more rapidly and bring together the most eCperiencedindividuals from across the company< ho are able to ;uickly ork as one to

address a given challenge. 5nd< of course< these values also guide F*1$2 -

IT?s decisions and actions.

Pa t#e sh!* a#& .ua(!t/

For F*1$2 - IT< partnership and ;uality are both a philosophy and a ay of

life. They develop and follo the best management practices and they entrench

these approaches into client relationships and service delivery frame orks in

order to foster long term and strong partnerships ith their clients. They listen


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to their clients and they are committed to their total satisfaction in everything

they do.

O$Be t!5!t/ a#& I#te% !t/

2Cercise the highest degree of independent thinking in selecting the products

tqm at force itfinal1

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