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Chap - 1 Historical Development of TQM

Chap - 1 Historical Development of TQM

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Published by: luciantoppo on Sep 07, 2009
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Chapter – 1:Part - 2
Historical Development of Total Quality Management:
The history of quality control is undoubtedly as old as industry itself. The concept of specialization of labor was introduced during the Industrial revolution. As a result, a workerno longer made the entire product, only in a portion – brought about a decline inworkmanship. Because most products manufactured during that early period were notcomplicated, quality was not greatly affected. In fact, because productivity improved therewas a decrease in cost, which resulted in lower customer expectations. As products becamemore complicated and jobs more specialized, it became necessary to inspects aftermanufacture.
IndustrialRevolutionConcept of Specialization of labor -decline workmanship, causedcomplexity and less quality. Required Inspection after Production 
1924 W.A.Shewart of Bell Telephone lab. Developed a statistical chart for thecontrol of Product variables.
Later in the same decade H.F.Dodge andH.G. Roming developed the area of acceptance sampling as a substitutefor 100% Inspection
 1942 Recognition of the value of SCC (Statistical Control Chart)1946 American Society for quality (ASQ) formed1950 E.Deming and Joseph.M.Juran made their valuable lectures and sharing onSCC to Japanese engineers and management’s response to achieve quality.Joseph Juran made his first trip to Japan in 1954 and further emphasizedmanagement’s responsibility to achieve Quality. He began his cost of quality approach , emphasizing accurate and complete identification andmeasurement of costs of quality.1960 The concept of ‘Zero defects’ gained favour. Philip Crosby, who was thechampion of Zero – defects concept focused on employee’s motivation andawareness.The first quality control circles were formed in Japan for the purpose of quality improvement.Simple Statistical Tech. Were learned and applied by Japanese.1970- early1980U.S Managers were frequent troops to Japan to learn the Japanese miracles.A quality success began to occur in U.S products and servicesMiddle1980sThe concept of TQM were being publicizedLate 1980s The auto motive industries began to emphasize statistical process control(SPC)The Malcom Baldrige National Quality Award and became the means tomeasure TQM.
Genechi Taguchi introduced his concepts of ‘Parameter and Tolerancedesign’ as a valuable quality improvement tool.
 1990 Emphasis on quality control in the auto industries.
1996 Saturn Automobile ranked first in customer satisfaction. In addition,ISO – 9000 became the model for a quality management system worldwide, ISO – 14000 was approved as the world wide model for EnvironmentManagement system
Quality assurance begins as a priority for engineers and managers.
 1996- 2000 Transmission to open economy, domestic and international competitionsstarts.
TQM is the ultimatum for continuous improvement and sustainablegrowth
2001 07 High growth of economy- the new millennium brought about increasedemphasis on world wide quality and the Internet.
Step 1 The year 1991 (economic liberalization) brought about a lot of changesin the Indian Economy and over all business environment in our country.Step 2 Lots of Foreign MNCs started operations in India in the form of Jointventures (JV) like – Hero Honda, Maruti Sujuki, etc.Step 3 Professor Yasutosi Washio, has predicted that the quality of Indian manwill overtake that of Japan in 2013.Step 4 Mahindra’s Tractor unit is the first tractor unit in the world to winDEMNG Award.Step 5 Indian industries even small industries interested to envolve themselvesunder total quality management process by using the tools andtechniques like TPM (Total Productive Maintenance) and otherstandards.Now it is very important to see what is the Evolution of TQM – related activities inIndia and what could be the projection for the future. We can see it in tabular form incontrast with changes in social and economic environment, development in quality,quality control tools, and quality assurance system and finally changes of concepts inpolicy management in India.The year 1991 brought about a lot of changes in the Indian economy and the overallbusiness environment in the country. During the liberalization process, a lot of foreignmultinational corporations (MNCs) started operations in India. Most of theseoperations were in the form of Joint Ventures (JVs) with domestic companies. It wasnot that all the JVs started during the period after 1991 only, Some JVs, such asMaruti – Suzuki, Hero Honda, TVS Suzuki, Escorts Yamaha etc., had already startedin the early and mid – 1980s due to the decision of the Indian Government to allowthe entry of MNCs in selective sectors of the industry. These MNCs could set up JVswith Indian Companies only if the Indian company held a majority stake. Thiscondition existed only in the 1980s. After 1991, the Government continued morerigorously with its liberalization programme, and we saw most of the earlierrestrictions, such as the majority stake of the Indian JV partner, being withdrawn bythe Government.
The MNCs can now set up 100% subsidiaries in India in most of the sectors of economy. This has brought about a lot of competition, especially from the point of view of the domestic industry. It has become a ‘do’ or ‘die’ situation for most of thedomestic companies, which had ben operating, for a long period of time, in a seller’smarket of the license Raj. Most of the JVs formed during the 1980s and 1990s haveended with either the MNC taking full control of the venture, or the MNC exiting theJV to set up its separate 100% owned subsidiary in direct competition with the JV.Joint ventures such as Kinetic Honda, Shriram Honda, TVS Suzuki etc. are to name afew, JVs which ended up in this manner. Table - 1 shows the evolution of TQMrelated activities in India and projection for the future given by Mehta (1999)
Changes in socialand economicenvironment
Development in quality
Quality control (QC)tools
Qualityassurance (QA)systems
Change ofconcepts inpolicymanagement
India becomesindependent
Slow rate ofeconomic growth
Very lowcompetition
QC ininspectionstage(Identificationof defectives)
Regulationof inspection
Regulationof productaudit
Initial phase ofderegulation ofeconomy
Slow growth rate
Imported kits
Attempted useof QCcircles
7 tools of QC
QA systems
Compliancewith ISO9000 qualitysystemrequirementsTo attachimportance tomeasures ormeans inaddition to target
Transition to openeconomy
Adequate growthrate of economy
Growing domesticcompetition
QC inmanufacturingstage(prevention ofdetectives)
Various statisticalmethods
Design ofexperiments
Failure modeeffect analysisand fault treeanalysis
Regulationof processcontrol
QC processchart,controlchart, andcheck sheet
QualitytablesdeployingrequiredqualitiesTo attachimportance tocoordination tomanagement ofall the divisionsin addition to thatof each division
Deregulation ofeconomy
High growth ofeconomy
Open competition
QC indesignstage(makingnewproductsto satisfynewcustomerrequirement)
Weibullprobability paper
7 managementtools
Qualitytablestransformingrequiredqualities todesignqualitiesTo attachimportance tomidterm andlong-termpolicies inaddition to thosespecifiedannually

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