Total quality management

TOTAL QUALITY MANAGEMENT

SUBMITTED BY

NEERAJ SHARMAROLL NO 14240157002

M .PHIL (MANAGEMENT)

Dr. Zargari

INTRODUCTION TO TQM

What is TQM?

TQM is the integration of all functions and

processes within an organization in order to

achieve continuous improvement of the quality

of goods and services. The goal is customer

satisfaction.

“ No doubt , humans are always deficient”

(Al-Quran)

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The Three Quality Gurus

Deming: the best known of the “early” pioneers,

is credited with popularizing quality control in

Japan in early 1950s.Today, he is regarded as a

national hero in that country and is the father of

the world famous Deming prize for quality.

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JURAN

Juran, like Deming was invited to Japan in 1954by the union of Japanese Scientists andengineers.

Juran defines quality as fitness for use in termsof design, conformance, availability, safety andfield use. He focuses on top-down managementand technical methods rather than worker prideand satisfaction.

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PHILIP CROSBY

Quality is defined as conformance to

requirements, not “goodness”

The system for achieving quality is prevention,

not appraisal.

The performance standard is zero defects, not

“that’s close enough”

The measurement of quality is the price of

non-conformance, not indexes.

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Commonality of Themes of Quality Gurus

Inspection is never the answer to quality improvement,nor is “policing”.

Involvement of leadership and top management isessential to the necessary culture of commitment toquality.

A program for quality requires organization-wideefforts and long term commitment, accompanied bythe necessary investment in training.

Quality is first and schedules are second.

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DIFINITION OF QUALITY

The concept and vocabulary of quality are elusive.Different people interpret quality differently. Few candefine quality in measurable terms that can be provedoperationalized. When asked what differentiates theirproduct or service;

The banker will answer” service”

The healthcare worker will answer “quality healthcare”

The hotel employee will answer “customersatisfaction”

The manufacturer will simply answer “qualityproduct”

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OBJECTIVES OF QUALITY

TO DETERMINE WHAT AND

WHERE IMPROVEMENTS ARE CALLED.

TO ANALYZE HOW OTHER

ORGANIZATIONS ACHIEVE THEIR HIGH PERFORMANCE

LEVELS.

TO USE THIS INFORMATION TO IMPROVE PERFORMANCE

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Five Approaches of Defining Quality

Harvard professor David Garvin, in his book Managing Quality summarized five principal approaches to define quality.

Transcendent

Product based

User based

Manufacturing based

Value based

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Transcendental view

Those who hold the transcendental view would say “Ican’t define it, but I know it when I see it”

Advertisers are fond of promoting products in theseterms.

“Quality is difficult to define or to operationalize. Itthus becomes elusive when using the approach as basisfor competitive advantage. Moreover, the functions ofdesign, production and service may find it difficult touse the definition as a basis for quality management.”

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PRODUCT BASED

Quality is viewed as a quantifiable or

measurable characteristic or attribute. For

example durability or reliability can be

measured and the engineer can design to that

benchmark.

Quality is determined objectively.

Although this approach has many benefits, it

has limitation as well. Where quality is based

on individual taste or preference, the benchmark

for measurement may be misleading.

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MANUFACTURING BASED

definitions are concerned primarily withengineering and manufacturing practices

“conformance to requirements”. Requirements orspecifications are established by design and anydeviation implies a reduction in quality. Theconcept applies to services as well as product.Excellence in quality is not necessarily in the eyeof the beholder but rather in the standards set bythe organization.

This approach has the serious weakness. Theconsumer’s perception of quality is equated withconformance and hence is internally focused

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Value Based

It is defined in term of costs and prices as wellas number of other attributes. Thus, theconsumer’s purchased decision is based onquality at an acceptable price. This approach isreflected in the popular Consumer Reportsmagazine which ranks products and servicesbased on two criteria: Quality and Value.

The highest quality is not usually the best value.That designation is assigned to the “best- buy”product or service.

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Characteristics of TQM Leader

Total quality management involves a continuousfocus on optimizing quality, both of processes andproducts. While perfection is impossible,monitoring and improving organizationalstrategies can make a company more attractive toconsumers, providing a competitive edge. As withany organizational initiative, strong leadership canhelp ensure success.

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TQM Leader

CLEAR GOAL-SETTING:- excellent leaders establish clear, well-defined objectives for quality improvement. For example, improving customer service might be too general a goal. Instead, an effective leader might divide customer service process into various categories and then define measurable and objective quality benchmarks for each category.

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TQM Leader

COMMUNICATIVE:-Excellent leaders must have the communication skills to give marching orders in ways that inspire and motivate rather than discourage followers. Leaders also should play a strong role in drafting new policy initiatives and guideline changes, which will help ensure the organization’s new focus on quality has the best chance of succeeding.

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TQM Leader

AGGRESSIVE:-Excellent leaders know that totalquality management is essentially a continuousoverhaul, and no process is so good that it can’t beimproved. For that reason, excellent leaders mustaggressively pursue change, circumventing oreliminating any institutional barriers that hinderorganizational growth and development. Stubbornmanagers who resist change might need replacing,for example, and a strong leader won't hesitate tofire such people when necessary.

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TQM Leader

DEEPLY COMMITTED TO CHANGE:- Total qualitymanagement doesn’t work if only a fewdepartments of an organization focus on self-improvements. The entire organization must worktogether to make improvements at every stage,level and department. In other words, leadersmust be committed enough to make changesthroughout the entire organization, not just makeimprovements to a few small areas.

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TQM Leader

PERSONALLY INVOLVED:-Excellent leaders are in the thick of things, working alongside their followers to improve the organization. From designing training and education protocols to analyzing results of new initiatives, leaders must be personally involved to ensure high standards are upheld and to inspire followers to keep working hard. By acting as both a teacher and a role model, an effective leader inspires workers to achieve higher quality standards.

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INDICATORS FOR CUSTOMER SATISFACTION

Frontline empowerment.

Excellent hiring, training, attitude and morale for front line employees.

Proactive customer service system.

Quality requirements of market segment.

Commitment to customers.

Understanding customer requirements.

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COST OF QUALITY

Higher quality means higher cost.

Quality attributes such as performance and featurescost more in terms of labor, material, design and othercostly resources.

The additional benefits from improved quality do notcompensate for additional expense.

The cost of improving quality is less than theresulting savings.

The saving result from less rework, scrap and otherdirect expenses related defects.

This is said to account for the focus on continuousimprovement of processes in Japanese firms.

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Quality Costs

Costs include not only those that are direct, butalso those resulting from lost customers, lostmarket share and the many hidden costs andforegone opportunities not identified by moderncost accounting systems.

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Quality Costs

Types of Quality Costs

The cost of quality is generally classified into four

categories

1. Cost of Prevention

2. Cost of Appraisal

3. Cost of Internal Failure

4. Cost of External Failure

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Quality Costs

Cost of Prevention

Prevention costs include those activities which removeand prevent defects from occurring in the productionprocess.

Included are such activities as quality planning,production reviews, training, and engineering analysis,which are incurred to ensure that poor quality is notproduced.

Appraisal

Those costs incurred to identify poor quality productsafter they occur but before shipment to customers. e.g.Inspection activity.

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Quality Costs

Internal Failure

Those incurred during the production process.

Include such items as machine downtime, poorquality materials, scrap, and rework.

External Failure

Those incurred after the product is shipped.

External failure costs include returns andallowances, warranty costs, and hidden costs ofcustomer dissatisfaction and lost market share.

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Benefits of TQM

Greater customer loyalty:-

Market share improvement:-

Higher stock prices:

Reduced service calls

Higher prices

Greater productivity

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QUALITY CONTROL

QUALITY CONTROL HELPS ACHIEVE THE QUALITIESOBJECTIVES OF THE PRODUCTION SYSTEM BYKEEPING A CHECK ON ALL THESE PARTS OF APRODUCTION SYSTEM THAT MAY HAVE ANIMPACT ON THE QUALITY OF PRODUCT.

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QUALITY CIRCLES

QUALITY CIRCLES ARE SMALL GROUPS OFEMPLOYEES WHO MEET REGURLARY FOR SOLVINGDIFFERENT PROBLEMS RELATED MAINLY WITHCOST QUALITY EFFICIENCY , EQUIPMENT, TOOLS ,MORALE, PROCESS CONTROL,MISSED WORK,SAFETY, LEARNING AND MAINTENANCE ETC.

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QUALITY CONTROL PROCESS

PREPARATION OF POLICIES REGARDING QUALITY.

FIXATION OF QUALITY STANDARED RELATING TO MATERIALS AND PROCESS.

DESIGNING THE PRODUCTIVE SYSTEM.

INSPECTION AND CONTROL OF MATERIALS.

PRODCTION OF GOODS AND SERVICES.

INSPECTION OF THE FINALPRODUCT.

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OBJECTIVES OF QUALITY CONTROL

INCREASED SALES VOLUME.

INCREASED PROFIT.

IMPROVING COMPANY IMAGE.

IMPROVING THE PRODUCTION SYSTEM.

BETTER PRECUREMENT OF MATERIALS.

REDUCE THE COST OF INSPECTION AND LOSSES.

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ADVANTAGES OF QUALITY CONTROL

QUALITY CONTROL IS HELPFUL BOTH FOR PRODECER AND CONTOMERRS.THE PRODUCERS WILL FIND THE WIDER MARKETS IF GOODS ARE OF BETTER QULAITY.THE CUSTOMERS FEEL SATISFIED BY THE USE OF QUALITY GOODS.

CUSTOMERS SATISFACTION.

QUALITY CONCIOUSNESS.

JOB SATISFACTION TO WORKERS.

REDUCTION IN INSPECTION COSTS AND SAVING IN WASTAGES SCRAP.

BETTER UTILIZATION OF RESOURCES.

REDUCTION IN PRODUCTION COST.

INCREASE SALE.

BETTER INDUSTRIAL RELATION.

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Conclusion

Remember the earth revolves around the

CUSTOMER. Quality begets customers and

customers beget quality. Let us all have action

plans to support quality, this will make the world

happy and earn us the blessing of God Almighty.

“Actions are direct reflection of one’s intentions”