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TQM A PRESENTATION ON INTRODUCTION TO QUALITY AND TOTAL QUALITY MANAGEMENT PRESENTED BY :-- GROUP 1 Wednesday, August 06, 2010
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PROCESS QUALITY

PEOPLE QUALITY

+

+

=TQM

ORGANIZATION QUALITY

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• Everyone associated with the company to involve in continuos improvement including customers and suppliers.

TOTAL

• Customer stated and implied requirement are fully met.

• Executives are fully committed.

QUALITY

MANAGEMENT

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TQM :- TQM is a management of quality, totally and fully in all respects, small areas and all activities of organization, right from top to bottom, TQM provides the overall concept that fosters continuos improvement in organization. It focuses primarily on total satisfaction of both internal and external customers.

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GOALTotal customer satisfaction

STRATEGYDo the right thing, right the first time,

and every time

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Objective

To create a culture of “continuous improvement “for zero defect, zero loss, and zero accident

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QUALITY TOOLS AND TECHNIQUES

CUSTOMER SATISFACTION

ALL RESPONSIBLE AND ACCOUNTABLE

MEASUREMENTS, RECOGNITION AND

REWARD

TEAMWORK PARTICIPATION

AND INVOLVEMENT

T Q M

MANAGEMENT COMMITMENT

CONTINOUS EDUCATION

AND TRAINING

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• TQM forces us to recognize and give as much important to our

internal customers as our external customers. We also

learn to know, who our suppliers are, so that we can clearly communicate to them

our exact requirements.TQMWednesday, August 06, 2010

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Costs involved in implementing qualityCosts involved in implementing quality

• Quality Control Costs – 1. Prevention costs2. Appraisal cost

• Quality Failure Costs – 1. Internal Failure costs 2. External Failure costs

Successful Implementation of TQMSuccessful Implementation of TQM

I.I. Foundation - Ethics, Integrity and Foundation - Ethics, Integrity and Trust.Trust.

II.II. Building Bricks -Training, Teamwork Building Bricks -Training, Teamwork and Leadership.and Leadership.

III.III. Binding Mortar - Communication.Binding Mortar - Communication.

IV.IV. Roof - Recognition.Roof - Recognition.

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FOUR PILLERS OF TQM

Satisfying Customers

Systems / Process

People

Improvement tools

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Satisfying customers :

Aim of TQM is not only to meet the needs of the customers, but also about

customer satisfaction. (Satisfying implied needs). This also includes the internal customers as without satisfying them,

achieving satisfaction of external customers will be difficult.

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Systems / Process :

Establishing a system is basic building block of quality management. Within this

system having the right processes will ensure production of error free or defect

free products. The more robust the process, the less will be the possibility of

defect occurring.

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People :

People are the most important asset of the organization, No organization can succeed without the whole hearted

involvement of the people in the various aspects of the organization

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Improvement Tools :

There exists always a potential for improvement. Use of the right,

improvement tools and methodologies will ensure that the organization remains

competitive.

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Quality movement in India

• In India quality was there from the beginning.• India was known for handicrafts , gems and

jewelry- Heritage.• But US. Japan- Known for quality

management.• Quality management existence in US . and

Japan- 1950• Quality control circle was born in India- 1980

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Quality is an attribute of a product or service that fulfills or exceeds the human expectations. These expectations are based on the intended use and selling / service price. It is somewhat of an intangible based on perception  ISO – 9000:2000: “ The degree to which a set of inherent characteristics fulfills requirements.Here,Degree – quality such as poor, good, and excellentInherent – Permanent attributeRequirement – need based or expectation.  J.M.Juran defined quality as: “Fitness for use / Purpose” Philip Crosby defined quality as: “Conformance to specifications”

W.Edward Deming : continuous Improvement  

Peter Drucker: "Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for.“

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Q- Quest for excellence. (Act)U- Understanding customer’s needsA- Action to achieve customer's appreciationL- Determination to be leaderI- Involving people.T- Team sprit to work for a common goalY- Yardstick to measure progress

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Benefits of quality

• It gives positive company image.• It improves competitive ability both nationally

and internationally.• It increases market share, which translates

into improved profits.• Overall, it reduces cost, improve profits.• It creates an atmosphere for high employee

morale, which improves productivity.

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AMERICAN GURUs

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JANANESE GURUs

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Tools to use to improve Quality concerns

Flowchart Portrays all the steps in a process. Helps understand the process.

Cause and Effect DiagramPortrays possible causes of a process problem. Helps determine root cause.

Control Chart Shows if a process has too much variation.

Histogram Portrays the frequency of occurrence.

Check Sheet Tabulates frequency of occurrence.

Pareto Diagram Visually portrays problems and causes in order of severity or frequency. Helps determine which problem or cause to tackle first.

Scatter Diagram Helps determine if two variables are related..

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Wednesday, August 06, 2010 TQM

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Example of Kaizen: poor man’s approach

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British Airways’ new route to customer service

A TQM case study in service sector

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BRITISH AIRWAYS

Every 2min a BA flight takes offWorking 24×74th largest airliner in the businessFiercely competing Lufthansa, Singapore

Airlines, American Airlines 25 million passengers

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CHANGE IS GOOD

• Shoddy airline , indifferent to passengers

• World class, financially well, a trendsetter indeed!

• TQM – the route 2 transformation

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scenario in BA (1990s)

Under a crisisPreviously a nationalized corporationShedding jobs worldwide to stop making lossMerging of BOAC & BEA Restriction of operating routes

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public to private

Prepared itself for privatization Regained its financial wealthAfter £5 million worth advertisement, sold itselfBegan to repair and restructure

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Start of the TQM

implementation

Leaner to fitter‘PUTTING PEOPLE FIRST’ program by Collin

MarshallCustomer Employees 30,000 employeesBehavior breeds behavioremployees

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know your work place better

‘CUSTOMER FIRST’ team programIn effective attitude of employeesEmployees treated as internal customers‘We fly to serve’ motto‘A Day in the Life’‘gold in the hole’, ‘engineering excellence’,

‘money matters’

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organizational & cultural change

Pattern BreakingExperimenting processesVisioningBonding

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pattern breaking stage

‘Demanning’ from 59,000 to 29,000Dismissal letters to opposing managersNew, new, everywhere new_______________________________________Experimenting & visioning stage difficultiesPathetic business attitude, absence of good

managers, underachieving education systemEffective motivation- hope of gain not threat of

being fired from job

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deep into cultural change

Senior & middle level management‘Leading the service business’Offsite meetingsRecording feedback from the down level

managementParticipative management styleBureaucratic, militaristic service

oriented , market driven.

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act as you preach

BA offered MBA degree! to its employeesEstablished permanent training centreCreated emotional supportOrganizational hierarchy was flattened profit sharing bonus schemesPerformance appraisal system introducedPerformance based compensation systemdata driven feedback system on management

practices

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treat employees as

potential customers Introduction of ‘world traveler’ to economy

classAdvertising it to employees before to

customers‘Internal commitment’‘Internal marketing’

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advertise yourself

Apart from usual ad campaign, brand product theme was introduced

Club world , first class , super shuttle , leisure, world traveler(economy class)

Modification of seats, accessories , catering services

A single ad costs £1 million containing emotional dramatic exp

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Food served has a power full effect on the memory of a flight

Analyzing different aviation routes, adjusting food recipes in accordance with different geographical places

Gained competitive edge

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show down – a moment to

celebrate13 % increase in profitAnother 12% increase in each subsequent yrsBecame fourth largest airliner160 destinations, 90 countries, 25 US cities41 % share in North Atlantic market 235 aircrafts, advanced fleet strength than

competitorsEnormous customer care programs

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Thank you

TQMWednesday, August 06, 2010