Total Quality Management

Total Quality Management(TQM)

A pragmatic long systems approach initiated and

driven by the top management to bring about total change and interlink and integrate everyone ,every function, every process and every activity of the organization through involvement, participation and cross functional management to meet the dynamic needs of the customer and create a loyal but at the same time a diversified customer base.

Benefits of TQM

TQM v/s Traditional approachCharacteristics TQM approach Traditional approach

Management understanding and attitude

quality management as essential part of company system

No competition for quality. Tend to blame quality department for quality problems

Quality organization status Quality is through the leader quality is hidden in manufacturing , not a part of the organization

Problem handling Prevention of problems Fire fighting approach

Quality improvement action

Continuous activity No organizational activity

TQM v/s Traditional approach(cont)…Characteristics TQM approach Traditional approach

Priority Quality Profit

Focus Customer satisfaction Management's requirements

Organization Networking among functions Hierarchical

Span of control Large Short

Production schedule

Economy to time, just in time production

Long production runs

Communication With action By slogan

Responsibility for quality

With top management Delegated to subordinates

Perception of quality

Multidimensional (dimensions are customer oriented)

Conformance to specification

Employee Given significant role regardless of level to find better ways to work

Monolithic work pattern

TQM v/s Traditional approach(cont)…Characteristics TQM approach Traditional approach

Work force Multi-skilled , job rotation Division of labour

Quality productivity relationship

High correlation Not recognized

Ways of improving Changing corporate culture , increasing employee education , use of process control

Improvement in inspection and gauging .

Key to firms success Customer satisfaction and production of high quality goods and services

Growth in sales , profits and return on investments.

Evolution of TQMcriterion inspection Statistical

quality controlQuality

assuranceTotal quality management

Objective Measurement of specifications

Control of processDistribution of responsibility o functional areas

Continuous quality

improvement at every level, place

& stage

Focus Uniform product quality

Reduction in inspection work

Evolution at all stages

Customer (internal & external )

Tools Gauges and measurement

techniques

Statistical quality control tools and

techniques

Quality planning documentation

and quality systems

Commitment , participation, motivation, education &

training organization development

Evolution of TQM (Cont)…

criterion inspectionStatistical

quality control

Quality assurance

Total quality management

Responsibility for quality

Inspection departmentProduction

departments All departments

Top management leadership and

everyone in organization

ApproachInspection , sorting,

gradingTrouble shooting and controlling

the quality

Assuring to build quality by planning

programme design and programme

control

Strategic management,

team involvement and action research

Approaches to define QualityTranscendent Approach

Quality is absolute and universally recognisable. It is common notion used by laymen There is no subjective judgement and is estimated by

looking at the product

Product Based ApproachAttributes of a particular product in a specific categoryThese attributes are accepted as bench of quality by the

industryOthers in the same industry try to produce close to this

quality

Approaches to define QualityUser Based Approach

Defined as “Fitness for use”Viewed from user’s perspective and is dependent on how

well does the product meet needs of the consumer.Also known as Customer Oriented Approach

Production Based ApproachAn outcome of engineering or operational excellence and

is measured in terms of quality of conformanceThe producer has specifications and produces the product

as per the specifications

Approaches to define Quality

• Value Based Approach– Quality is viewed in context of price– Quality is satisfactory, if it provides desired

performance at an acceptable price– Customer looks at the total value proposition and

not the price alone

ice

BenefitsValue

Pr

Attributes of QualityPerformance

Product’s primary operating characteristicsFeatures

Augmented product – The “bells & whistles” of the product

ReliabilityAbility of the product to function at the specified level

of performanceConformance

Degree to which characteristics of the product meet pre-established standards

Attributes of QualityDurability

Length of time a product can be used before it deteriorates or becomes non functional

Serviceability Speed, competence & courtesy of providing ASS

AestheticsLook, feel sound, taste, smell

Perceived QualityResulting from advertisement, image, brand name,

earlier use, hearsay

Evolution of Quality Management

Evolution of Quality ManagementMass Inspection

InspectingSalvagingSortingGradingRectifyingRejecting

Quality ControlQuality manualsProduct testing using SQCBasic quality planning

Quality AssuranceEmphasis on preventionProactive approach using

SPCAdvance quality planning

Total Quality ControlAll aspects of quality of

inputsTesting equipmentsControl on processes

Evolution of Quality ManagementCompany wide Quality Control

Measured in all functions connected with production such as

R&DDesignEngineeringPurchasing,Operations etc

Total Quality ManagementMeasured in all aspects of business, Top management commitmentContinuous improvementInvolvement & participation of employees

Evolution of Quality Management

Evolution of Quality Management

Gurus of TQM

Dr. W E Deming Dr. J M Juran Dr. Philip Crosby

Gurus of TQM

Dr. Kaoru IshikawaDr. Genichi Taguchi Dr. Masaaki Imai

Gurus of TQM

Dr. Shigeo ShingoDr. Yoshio KondoDr .Armand V. Feigenbaum

Dr. James Harrington

Top management to define the organization's vision, mission and values

Study the prevailing market and its trends Study the customer segment

Study the customer and her requirements/expectations

Top management to identify key business results for the organization

Study the organization's positionCarry out the SWOT analysis

ROADMAP FOR TQM

Top management to plan strategies for the business

Top management to convince itself about TQM to serve as a guide towards the organization’s mission

Draw up a plan for culture change, customer focus and employee empowerment

Select priority areas/products for TQM applications

Institute culture change teams and start including

organizational values amongst the employees at all levels

through various programs and group initiatives.

Arrange informational training on:Organization's market, its

products/services.Business environment

Its customers, their requirements and expectations

Analyze processes:What are the processes?What are they delivering

currently?Where are the problems?

Train the staff on tools such as SPC,SOC, QFD, cause-effect

diagrams and problem solving

Arrange skills training on:Technical aspects

Interaction and communication aspects

Make internal customer agreement

Make supply chain agreement

Design processes to make them deliver to

customer needs/expectations

Design information systems:

Internal informationExternal information

Assess the ongoing performance forCustomer satisfaction Key business results

TQM Models (OAKLAND Model)

Participative communication culture network

commitment

QualityImprovement

Teams

Quality systemsTools and

Techniques

process

Sohal, Tay, Wirth’s integrated model

Statistical Qualitycontrol

Total Participation

Quality improvement

team

Systematic problem

solving focus

Customer focus

TQM mission:Continuous

QualityImprovement

Building Blocks of TQM

-Continuous improvement-Added value management activity

-Employee involvement

SPC,SQC

UserSupplier

Chain

Management Control system

ProcessFlexibility

Workplace Design

-Quality planning-Leadership

-Vision for world class competitiveness

3-dimentional Quality model process continuous improvement

people relationshipProduct/service

SortClear out rarely usedItems by Red Tagging

StraightenOrganise and Label aPlace for Everything

ShineClean ItStandardise

Create Rules to Sustainthe first 3 5’S

SustainUse Regular ManagementAudits to Stay Disciplined Eliminate

Waste

5 S’s

Points of caution in TQM implementation

• Full commitment from all levels of employees• Attitudinal, informational and skill training to

managers as well as non-managerial staff• Strategic plans and specific attainment chalked

out.• Complete satisfaction of the customer is the AIM.• TQM is an ongoing activity.• Full attention to both- customer and key business

result(returns on investment) is essential.

SIX SIGMASIX SIGMA

Introduction

Business management strategyDeveloped in Motorola in 1981Improve quality of process outputsBy:-

Finding & removing cause of defectsMinimizing variability

Contd…

Uses statistical toolsDedicated people or expertsEach project follows:-

Defined sequence of stepsQuantified targets

Historical overview

Originally to improve manufacturing processesNow extended to other businessBill smith first formulated at MotorolaSix sigma heavily inspired by:-TQM , Quality control , Zero defect

Six Sigma Methods Production

DesignService

Purchase

HRM

Administration

QualityDepart.

Management

Marketing

IT

Six sigma - Now extended

Six sigma - Doctrine

Continuous effort to achieve resultsProcesses can be measured, analyzed improved and controlRequires commitment from entire organization

Six sigma - Features

Clear focus on achieving quantifiable financial returnsIncreased emphasis on strong management supportSpecial infrastructure of people to lead & implement six sigma approachMaking decision on verifiable data rather than guesswork

What is six sigma?

A performance goal, representing 3.4 defects per million opportunitiesA series of tools & methods used to improve products, processes, servicesA statistical measure indicating no. of standard deviations within customer expectation

LSL USL

Statistical background

99.9997 % performance

Target =

Six-Sigma

Contd…

Sigma in six sigma signifies standard deviation or variation from meanTwo vertical lines are specification values for any processOne sigma means 68% of readings lie between specification limitsSix sigma means 99.9997% of readings lie in specification limits

Performance Standards

23456

30853766807

62102333.4

DPMO69.1%93.3%99.38%99.977%99.9997%

Yield

Processperformance

Processperformance

Defects permillion

Defects permillion

Long term yield

Long term yield

Current standardCurrent standard

World ClassWorld Class

Contd…

Registered service mark & trademark of Motorola Inc.Early adopters includes:- General Electric, HoneywellBy the end of 1990’s, two-third of fortune 500 organization had begun six sigma initiatives

Six sigma - Inspiration

Inspired by Deming’s PDCA CyclePlan – Do – Check – Act

Plan

Do

Check

Act

Six sigma - Methodologies

Works on two methodologies:-DMAIC

DMADV

DMAIC

Barriers in Implementing Six sigma

Top management sometimes not interested

Employees not ready to accept

Problems in communicating with employees

Employees experience “statistical anxiety” which has to be minimized before learning

Statistical methods need to be matched to management style and organizational culture

Top management sometimes not interested

Employees not ready to accept

Problems in communicating with employees

Employees experience “statistical anxiety” which has to be minimized before learning

Statistical methods need to be matched to management style and organizational culture

Six sigma - BenefitsBetter monitoring of processesBetter involvement of peopleStaff motivation level is raisedProductivity is increasedProfits go up

ISO & TQM

What is ISO?• About ISO - International Organization for

standardization.• Headquarter - Geneva, Switzerland• ISO 9000 - ISO 9000 is a set of written standards,

laying down a quality system. ISO 9000 consists of 5 international

standards for quality management. i.e. ISO 9000, ISO 9001, ISO 9002, ISO 9003, ISO 9004• Purpose - A customer focused quality system through its disciplined documentation

process.

ISO DescriptionISO SERIES

• ISO 9000

• ISO 9001

• ISO 9002

• ISO 9003

• ISO 9004

DESCRIPTION• Set of international standards for quality

management system. It defines the 5 key quality terms in the ISO terminology.

• When two parties require the demonstration of a supplier’s capability to design, produce, install and service a product.

• Model for quality assurance in production and installation.

• Model for quality assurance in final inspecting and testing.

• Provides quality management guidelines and determines the extent to which every element is applicable

Functions of ISO• To discover what is being done.• To write down what is being done.• To justify what is being done.• To record the consistency between things that

are written and followed.• To review what is being done.• To revise all problems/improvements areas.• To start all over again and incorporate

improvements again and again.

Role of ISO in TQM journey• Conformance to quality through ISO 9000

certification.

• Customer driven approach because of participation in development of new tools and techniques.

• Market driven approach to beat competitors through continuous improvement in quality.

• Works as a strategic weapon and helps the firm in self assessment.

ISO 9000 Vs TQMISO 9000

Focuses on-• Certification• Quality system• Audits & checks• Maintenance of what is

documented• An assurance to external

customers that a quality system is being pursued

TQM

Focuses on- • Customer delight &

satisfaction• Human factor• Flexibility & change

management• Continuous improvement

Advantage of TQM

Tangible Gains Total product quality Productivity improvement Reduced quality cost Increased market Increased profitability

INTANGIBLE GAINS

• Effective team work• Improvement in human realtions• Customer satisfaction• Improved communication• Improved corporate health

Disadvantage of TQM

• No formal strategy• Failure to provide incentive by recognition• Lack of effective communication• Narrowly based training• Lack of faith in and support to TQM activities

among management personnel• Lack of interest or incompetence of leaders

Contd……….

• Misunderstanding about the concept of TQM• Delay or non-implementation of quality

improvement team’s recommendations• Irregularity of team activities• Non-application of proper techniques• Inadequate visibility of top management

support.

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THE COMPANY• XYZ Company started in 1967.

• Located at Bombay,has 27 full fledged branches at strategic locations nationwide and over 800 dealers and manufacturing units abroad.

• Products Manufactured :-

a)Office Equipment.

b)Electronic Business Engineering.

c)Consumer Durables.

d)Industrial products – made to order machines.

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Contd..• XYZ Company has :-17 manufacturing plants.

Rs. 600 crores sales turnover.

8000 employees.

35% of Indian Market.

A good quality manufacturer reputation.

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NEED FOR TQM1. A quality culture.

2. Diversification.

3. Commitment of the employee.

4. Future growth.

5. Progress and development .

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IMPLEMENTATION

In order to bring about a cultural change it is essential to investigate the present.The insight of various issues was obtained by carrying out a survey using interviews and quetionnaire.The focus primarily was on –

• Can TQM techniques be applied to the work ?• What is the response from different departments ?• Do people see management as committed to TQM ?• How TQM is perceived ?• What is the perception of customers about the company ?• What are the quality costs ?• What are the results of part quality improvement efforts ?

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Conclusions Drawn by The Company

1. It was considered by most in the organisation as important for future growth and success.

2. The level of service provided offered by XYZ was not always acceptable to customers.

3. Cost of poor quality amounted to 18% of the operating cost.40% of the people surveyed felt they received inadequate information/training about what quality was expected in their work.

4. 54% of the people surveyed felt that they were given little or no incentive to improve the quality of their work.

5. 77% of the people surveyed felt quantity was the main criteria for reward in XYZ,not quality.

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Contd..6. The earlier quality improvement efforts were well supported

by people and were successful.7. People expected more commitment from top management

for quality.

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