tqm final,raman roy jims

8/14/2019 TQM final,RAMAN ROY JIMS

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Meaning of QUALITY

The term quality refers to the degree to whicha product conforms to specifications andworkmanship standards.

Product quality refers to the composite ofengineering and manufacturing characteristics

that determine the degree to which theproduct in use meets the expectations of thecustomers.


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Quality - Definitions

Quality is excellence that is better than aminimum standard.It is conformance to standards and fitness

of purpose ISO 9000:2000 definition of quality- It

is the degree to which a set of inherentcharacteristics fulfills requirements.

Quality is fitness for use of the productJoseph Juran.


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Dimensions of Quality

Performance: products primary operating characteristics

Features: secondary, extra characteristics

Reliability: consistent performance within a specified period.

Conformance: degree to which design and characteristics

meet specific standards.

Durability: length of a product/services useful life.


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Serviceability: speed, courtesy, competence and ease

of repair. Aesthetics: looks, taste, feel, sound, smell of a

product/service.

Perceived Value: quality conveyed via marketing,

brand name.


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QUALITY IS .the QUALIFIER

Doing it right first time and all the time.

This boosts Customer satisfaction immensely

and increases efficiency of the Business

operations.

Clearing the bar (ie. Specification or Standard

stipulated) Excellence that is better than a

minimum standard.


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TOTAL QUALITY MANAGEMENT

TQM is a management philosophy of meeting therequirements of customers in better waysthrough continuous improvement in the quality

of work of all the employees.

It involves the integration of all functions andprocesses within an organisation in order to

obtain continuous improvement in thequality of products and services.


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ELEMENTS OF TQM

The main characteristics of TQM are as

follows:

Customer satisfaction

Continuous improvement

Employee involvement


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PHASES OF TQM

FirstPhase

Creation of a proper cultural environment forinstituting statistical process control.

Every emplyee is trained in the philosophy of TQM

Second

phase

It involves problem solving. Process studies, brainstorming and other techniques are used.

Skills of working in teams are taught.

Thirdphase

It involves actual applications of statistical processcontrol to the problems of quantity.

Stress is on employee training and skill development.

Fourthphase

Makes use of advanced techniques to obtainoptimum results.


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TQM six basic Concepts

Management commitment to TQM principles and

methods & long term Quality plans for the

Organisation

Focus on customers internal & externalQuality at all levels of the work force.

Continuous improvement of the production/business

process. Treating suppliers as partners

Establish performance measures for the processes.


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Effects of poor Quality

Low customersatisfaction

Lowproductivity

Low morale ofworkforce

More rework,material, labor

costs

Highinspection

costs

Higher repaircost

Greater wasteof material


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Benefits of Quality

Higher customer satisfaction

Reliable products and services

Better efficiency of operations

More productivity and profit

Better morale of workforce

Less wastage costs


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Less inspection costs

Improved process

More market share

Spread of happiness and prosperity

Better quality of life for all


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7 Habits of highly effective people

( Stephen Covey)

Be pro-active

Begin with the end in mind

Put first things first

Think win-win

Seek first to understand,then to be understood

Synergy

Sharpen the saw


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Role of TQM leaders

All are responsible for quality improvement especially the

senior management & CEOs Senior management must practice MBWA

Ensure that the teams decision is in harmony with the qualitystatements of the organisation

Senior TQM leaders must read TQM literature and attend

conferences to be aware of TQM tools and methods Senior managers must take part in award and recognition

ceremonies for celebrating the quality successes of theorganisation

Coaching others and teaching in TQM seminars

Senior managers must liaise with internal ,external andsuppliers through visits,focus groups,surveys

They must live and communicate TQM.


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TQM implementation

Begins with Sr. Managers and CEOs

Timing of the implementation process

Formation of Quality council

Union leaders must be involved with TQM plans implementation

Everyone in the organisation needs to be trained in qualityawareness and problem solving

Quality council decides QIP projects.


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Quality Council

The quality council includes CEO and Senior managers of thefunctional areas -research,manufacturing,finance,sales,marketing etc. and one co-ordinator and a unionrepresentative.

Duties- To develop the Quality statements eg. Vision, Mission,Quality policy statements, Core values etc.

To develop strategic long-term plans and annual qualityimprovement programme.

Make a quality training programme

Monitor the costs of poor quality.


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Determine the performance measures for the organisation

Always find projects that improve the processes and producecustomer satisfaction.

Establish work-group teams and measure their progress.

Establish and review the recognition and reward system forthe TQM system


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Quality statements

Vision statement- a short declaration of whatthe organisation hopes to be tomorrow

Mission statement a statement of purposewho we are,who are our customers,whatwe do , and how we do it.

Quality policy is a guide for everyone in theorganization ,how they should provide productsand services to the customers.


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Strategic Quality Goals and Objectives

Goals must be focused

Goals must be concrete

Goals must be based on statistical evidence

Goals must have a plan or method with

resources

Goals must have a time-frameGoals must be challenging yet achievable


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Strategic Planning

Strategic business planning is similar to strategicquality planning.

7 steps to strategic planning

Customer needs

Customer positioning

Predict the future

Gap analysis

Closing the gap Alignment

Implementation


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Quality Costs

Good Quality

leads to more Productivity, sales, profits and

increased operational efficiency and minimise

losses.

Bad Quality -

results in less productivity, sales, profits and

efficiency


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Quality cost is the cost of bad Quality of product andservices that rebounds to the Manufacturer.

It adds to other costs in Design,Purchase,Production,Sales , Service etc. Quality costs

in all depts. can be measured , programmed,budgetedetc.

External failure Quality costs Returned goods,Warranty,Service etc.

Internal failure Quality costs- Rework of products

Appraisal costsInspectors and Inspection costs

Prevention costs-assoc. with Design,Sales,Purchase


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Quality Cost Programme

Identifies the magnitude of Quality loss in

financial terms- ie. Rs., $ etc.

Reveals the Management commitment to Quality.

Identification of Quality improvement areas by

studying Quality costs

Identification of hidden losses in all the processes

Comprehensive system that improves Quality byfinding source of the problem and correcting it.


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Customer satisfaction

Customer is the QUEEN

Customer dictates the market trends and direction

Customer not only has needs to be supplied( basicperformance functions)

Also he wants what he wants!( additional features

satisfy him and influence his purchase decision)

Hence the Suppliers and Manufacturers have to closelyfollow at the heel of the customer.


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Customer Satisfaction Organisational

Diagram


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What is customer satisfaction?

Is it due to Product quality?

Is it due to pricing?

Is it due to good customer service ? Is it due to company reputation?

Is it something more?


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Customer types

External

current Prospective

Lost customers

Internal

Every person in aprocess is acustomer ofprevious operation

Manufacturing,sales


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Customer/supplier chain


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Internal customer/Supplier

relationships

Questions asked by people to their internal

customers

What do you need from me?

What do you do with my output?

Are there any gaps between what you need and what

you get?

Good team-work and inter-Departmental harmony isrequired. Also the leaders role in supervising the

internal customer-supplier chain.


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TQM and customer quality percepts

TQM is quality management and management of qualitythere is no full stop and no break in the chain.

Continuous process (quality) improvement is all its about.

Why? One important reason is the customer quality level isnot static and his expectations keep changing and hisdemands too.

Also plant process dynamics- how to achieve maximumefficiency , optimizing cost and performance in the processoperations, minimizing waste etc.


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User purchase perceptions

Performance Features Service

Warranty Price Reputation


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Customer satisfaction/

dissatisfaction feedback Customer feedback has to be continuously sought and

monitored - not one-time only!( Pro-active! Complaints are areactive method of finding out there is a problem)

Customer feedback can be relayed to Manufacturer.

Performance comparison with competitors can be known

Customers needs can be identified

Relative priorities of quality can be obtained from the horsesmouth.

Areas for improvement can be noted.


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Customer feedback methods

Comment cards enclosed with warranty card when product ispurchased.

Customer survey and questionnaire

Customer visits

Customer focus groupsQuarterly reports

Toll-free phones

e-mail, Internet newsgroups,discussion forums

Employee feedbackMass customization.


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Customers- Handle with care! Employers dont pay wages but it is the customer

who pays the wages.

So take good care of your customers.

Customer-care centres not just profit-centres.

The entire organization must in effect revolve aroundthe customer whether the customer is being wellserved and if he is really pleased, contented andsatisfied with the service


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SERVICE QUALITY

( i ) Organisation

Identify each market segment

Write down the requirements

Communicate the requirements

Organise processes

Organise physical spaces


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(ii) Customer Care

Meet the customers expectations

Get the customers point of view

Deliver what is promised

Make the customer feel valued

Respond to all complaints

Over-respond to the customer

Provide a clean and comfortable customerreception area.


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(iii) Communication

Optimize the trade-off between time andpersonal attention

Minimize the number of contact points Provide pleasant,knowledgable and

enthusiastic employees

Write documents in customer-friendlylanguage.


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(iv) Front-line people

Hire people who like people

Challenge them to develop better methods

Give them the authority to solve problems

Serve them as internal customers

Be sure they are adequately trained

Recognise and reward performance


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(v)Leadership

Lead by example

Listen to the front-line people

Strive for continuous process improvement


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Customer Care

Keep promises to customers

Return customer calls promptly

Allot staff to handle customer problems

Treat customers with courtesy,respect and professionalism

always Evaluate customer satisfaction regularly

Search for customer-related improvements continuously

Deliver Products/Service promptly and efficiently

Give every customer complete and personal attention.


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Customer Retention

Customer satisfaction should lead to customer loyalty andcustomer retention.

This is the acid test and bottom line- when the customer

repeatedly comes back to you for repeat orders and topurchase new products mfgrd. by you. (In spite of stiffcompetition and multiple Suppliers/Sources! )

Firm orders received or cash payments registered , marketshare, customer referrals and customer retention are anindication of your customer success and penetration .


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Empowerment

To invest people with authorityto tap the potential

in every worker (avoid the wastage of unrealised

capacity)

People have the ability, confidence and commitmentto take the responsibility and ownership to improve

the process, and initiate the necessary steps to

satisfy customer requirements within well-defined

boundaries in order to achieve organisational goals.


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Conditions for empowerment

Everyone must understand the need forchange.

The system needs to change to the newparadigm.

The organisation must enable itsemployees.


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Continuous Process Improvement

Process refers to business and production activities of anOrganisation.

Processes for improvement- eg. Design &

Manufacturing,Marketing,Stores & Purchase,etc.

Inputs of the Process- Manpower,materials,money,data,etc.

Outputs- Products,Services,data etc. Outputsneed performance measures main outcome being customersatisfaction.(feedback is used to improve the process)


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Process refers to business and production

activities of an organisation

Businessprocesses-Manufacturing,Design,

Sales,Purchase,Stores etc.are areas where

non-conformance can be reduced and

processes improved


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Five ways to Improve a Process

Reduce resources

Reduce errors

Meet or exceed expectations of

internal/external customers

Make the process safer

Make the process more satisfying to theperson doing it.


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Four Improvement Strategies

Repair Refinement

Renovation Re-invention

TQM i i l f h J


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TQM principles from the Japanese

The 3 K Method

Kimerareta KotooWhat has been decided

Kimerareta Tori must be followed

Kichim to Mamorukoto as per standard.


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The 5S Method

Seiko - Sort ( Proper arrangement )

Seiton - Set ( Systematic or

Orderliness )

Seiso - Shine ( Sweep or clean-up )

Seiketso - Standard ( Personal

cleanliness )

Shitsuke - Sustain ( Self-discipline )


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PDSA cycle- seven steps or phases

Identify the opportunity

Analyze the current process

Develop the optimal solution(s)

Implement changes

Study the results

Standardise the solution

Plan for the future.


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tqm final,raman roy jims

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