Presentation 1 management TQM

QUEST INTERNATIONAL UNIVERSITY PERAKFaculty of Business, Management, and Social

Sciences

MANAGEMENT(Assignment)

Individual

Topic Total quality management

On PROTON

What is Total Quality Management (TQM)?

Is an organization wide effort - infuse quality into every activity in a company through continuous improvement.

Objective of TQMTo increase the high-level - efficiency and

effectiveness in the firm or focuses on teamwork.

increasing customers satisfaction

Primary benefit of TQMquality-trained motivated employees working in an environment where the managers encourage creativity initiative trust

promotes an atmosphere where each individual's

contributions

actively use to upgrade quality

properly recognized

awarded a win-win situation

PROTON-Perusahaan Otomobil Nasional Berhad -May 7, 1983 -manufacture, assemble, and sell motor vehicles and related products, including accessories, spare parts and other components-launched on July 9, 1985, by Dato’ Seri Mahathir Mohamed

Overview of TQM on PROTON

•internalized in PROTON•had review that quality is the discernible difference that sets apart the best•they had committed beyond the traditional approach of quality •continued the journey by embracing-principles of - TQM.

TQM Techniques on PROTON Quality circles

•In quality improvement

- issued The Quality Improvement Committee (QIC),

- Quality ownership and quality culture in PROTON for their employees.

- The implementation of the Innovative and Creative Circle (ICC), based on the Plan-Do-Check- Action (PDCA) cycle.

•Example of PDCA cycle:

Example : More than 250 ICC teams voluntary registered in the last financial year 2010 to undertake various projects to improve productivity the quality cost. 97% of the registered team has completed their projects and these have recorded cost savings up to RM26.2million.

Benchmarking

• PROTON had identified in quality Design and Development for improvement.

• PROTON’s vision of “No. 1 in functional Quality by 2012,”

- more concerted efforts and structured activity are being caring out to implement built-in quality upstream at the early stage of a

vehicle’s design and development.• Initiatives like benchmarking and simultaneous engineering,

- are some of the detect prevention initiatives carried out. • Especially customer’s complaints

- channel back to the design and development team• New Product Introduction required ensuring strict adherences to

PROTON’s were monitored.

- All new models will be subject to various stages of comprehensive and systematic quality to track compliance against the

set quality targets

Six Sigma•in manufacturing. •The quality level of vehicle has continued registering impressive improvement of more than 50% in all plans. •Towards building – in quality into the manufacturing processes, efforts are be made to change their quality approach from judgment control to source control by

- implementing initiative like Zero Quality Control to eliminate the defects by fixing the root cause and controlling the processes at source.• The year long continuous quality campaign strategy via the implementation of Zero Defect program has indeed helped improve the quality level tremendously

- ‘Nothing is impossible” and embedded a commitment towards defect prevention into our work culture.• This fulfills one of PROTON’s TQM emphases on people quality.

Reduced cycle time

•Proton has established companies wide cross-functional

-Quality Improvement Team (QIT)

-to positively address product quality problems.•a single channel for the problem solving process was also establish during the year

- to streamline communication coordinate problem-solving

- and enhanced customer confidence. •customer complaints

-undergo a stringent 8-stage problem solving process

- to ensure that the problems are resolved permanently.

Kaizen / Continuous Improvement  

•individuals take charge and are empowered

- to make a difference. In PROTON they have implement The Kaizen Suggestion Scheme, many of the one initiative to drive• quality ownership and quality culture

- is a continuous incremental improvement and structured feedback system within PROTON especially in the manufacturing

Example there are the submission rate for suggestions improved by 705 for both PROTON plants and 25% of the submitted suggestions have been implement successfully resulting in cost savings of RM12.4million.

Quality in Supply Chain

•As one of PROTON’s critical success factors

-required to implement various quality initiatives in order to ensure good quality components are being produced and fitted into PROTON’s vehicles. •established quality improvement action plans

- focusing on selected critical suppliers, and special quality audits were carried out with direct enrollment of PROTON’s top management.•In addition, all newly developed components had to undergo and fulfill more than 15 requirements of the part process being approved for supply to the factories and fitted into PROTON vehicles.

Positive factors in TQM

• TQM serves to enrich jobs and motivate employees-it’s like we can see through out the PROTON management that develop the quality ownership and the quality culture. •Problems solving skills are improved for all employees

- this also I detected it in PROTON management, like establish the Quality Improvement Team, and the management also trained the employees concerns based on (PDCA) cycle.• Participants and teamwork’s are used to tackle significant problems;

- this had been use in PROTON like now they are undergoing 8 stage problem solving. •The continuous improvement is a way of life,

- in PROTON the customer complaint starts to reduce.

Negative factors in TQM

• The management expectation is unrealistically high

- like their profits. This has been proved in PROTON that they want a big profit but they undergo a lots of customer complaints.

• Middle managers are dissatisfied about losing their authority

- PROTON management but there is the improvements made by the management like the dynamic work culture that individual take charge and are empowered to make a difference.

•Workers are dissatisfied with other aspects of organizational life

- like the PROTON giving more pressure by implement many skills on employees, maybe some of the employee can’t bear with it.

Conclusion

•PROTON indulges the TQM technique and now PROTON has never – ending commitment towards customer satisfaction

• PROTON remains committed to exceed expectations and continuously embark on various quality improvement by using TQM so as to attain and maintain a world class standard of quality.

Prepared by > Malathi

Prepared for > Dr. Huam Hon Tat

Thank you