TOTAL

QUALITY
MANAGEMENT
 A PROJECT REPORT ON
TOTAL QUALITY MANAGEMENT
IN
CGI Information Systems & Management Consultants Pvt. Ltd.

SUBMITTED BY

RADHIKA TIMIR KURAMBHATTI

BACHELOR OF MANAGEMENT STUDIES

SEMISTER V

ACCEDEMIC YEAR 2008-2009

UNDER THE GUIDENCE OF

PROF. MR.KAILASH CHITNIS

SUBMITTED TO

UNIVERSITY OF MUMBAI

DATE OF SUBMISSION
27-SEP-2008

K.G.JOSHI COLLEGE OF ARTS

AND
N.G. BEDEKAR COLLEGE OF COMMERCE
AND MANAGEMENT STUDIES
Chendani Bunder Road, Thane 400601
Tel 022-2533 2412
 K.G.JOSHI COLLEGE OF ARTS
AND
N.G. BEDEKAR COLLEGE OF COMMERCE
AND MANAGEMENT STUDIES

DECLARATION

I Radhika Timir Kurambhatti, student of Joshi-Bedekar College of T.Y.BMS

(SEM V) hereby inform that I have completed this project on Total Quality
Management in CGI in the academic year 2008-2009. The information
submitted is true and original to the best of my knowledge.

Signature

Radhika Timir Kurambhatti

 ACKNOWLEDGEMENT

It gives me great pleasure to prepare project report on Total Quality

Management in CGI and present it to K.G.Joshi College of Arts and N.G.
Bedekar College of Commerce and management studies affiliated to Mumbai
University. I am very thankful to Prof. Mr. Kailash Chitnis for providing valuable
guidance and advice from time to time.

I would like to thank Mr. Vinay Thaly (Director Consulting Services) and
Shantanoo Joshi (Consultant).

This report is the combined support of all above mentioned and without whom
the project could not be completed.
 EXECUTIVE SUMMARY

The project is on Total Quality Management in “CGI”.

First chapter addresses Topic, Aims, Objectives, Scope and regarding strategy
followed

Chapter Two explains about Definition & Evolution of Quality and about
Contribution of Quality Guru's

Concept of TQM, Tools & Techniques of TQM and Quality Circles are
addressed in Chapter Three.

Chapter Four provides information on CGI and their strategy

How to CGI has implemented TQM is explained in Chapter Five

Project Analysis and Recommendations are concluded in Chapter Six and

Seven respectively

Annexure, Bibliography & Webliography are addressed in last chapters

 PROJECT CONTENTS

Chapter 1 - Project Introduction

Topic 1

Aims & Objectives 1

Scope of Project 2

Strategy followed to execute Project 2

Chapter 2 -Preface
Quality Definition 3

Quality Evolution 4

Contribution of Quality Gurus 05 - 11

Chapter 3 -Introduction to Total Quality

Management (TQM)
Concept of TQM 12 - 13

Tools & Techniques of TQM 14 - 19

Quality Circles 20 - 28
 Chapter 4 -CGI's TQM strategy
About CGI 29 - 31

TQM strategy 32 - 35

Chapter 5 -TQM implementation in CGI

Definition and Establishment of
Quality System Management (QSM) 36 - 37
Usage of Quality System
Management (QSM) 37 - 38

Monitor and Improve Quality

System Management (QSM) 38 - 39

Chapter 6 -Project Analysis

Advantage of TQM 40 - 42

Limitations of TQM 43 - 44

Chapter 7 -Recommendations 45 - 46

Chapter 8 -Annexure 47 - 48

Chapter 9 -Bibliography &

Webliography 49
 CHAPTER 1
PROJECT INTRODUCTION
 PROJECT INTRODUCTION

Topic
Understand the concept of Total Quality Management and to see how it is
implemented in IT Company

Aims & Objectives

 To plan the project in detail
 To know the background of TQM
 To understand the concept of TQM
 To get well versed with TQM
 To see whatever we have learned till now, how that is really getting
implemented in IT industry
 Compare the results with theory
 Analyze the project
 Recommends suggestions, if any
 Provide learning of project

Page 1
 Scope of Project

The scope is limited to implementation of TQM in CGI through ISO 9001 ,

CMMi (which mainly covers majority of Six Sigma concepts ) and through their
internal quality systems.

Strategy followed to execute Project

 Prepare detailed activity list

 Provide effort and cost
 Prepare dependency plan based on assigned activities
 Implement the activities
 Revise the plan
 Document the learning
 Page 2

CHAPTER 2

PREFACE
 Quality – Definition

Definition

QUALITY means “Fitness for Use” as per Dr. Juran. The components are said
to possess good quality, if they work well in the equipment for which they are
meant.
It is a relative term, generally used with reference to the end use of a product.

QUALITY is the distinguishing feature or “Grade” of the product in

appearance, performance, life, reliability, taste, odor and maintainability etc.

QUALITY is “Degree of Preference” to which a specified product is preferred

over competing products of equivalent grade. This is based on comparative
tests by the customers and is normally called customer preference.

QUALITY is a measure of the “Degree of Excellence” of the product.

QUALITY is “Conformity to Requirements” (Philip Crosby) and is concerned

with how well a product conforms to design and other specifications.

A short and widely accepted definition of today for QUALITY is Customer

Delight which aim to meet the following:

 Stated needs (in simple words called Satisfiers)

 Unstated needs (in simple words called Dis - Satisfiers)
 Expectations (in simple words called Delighters)

According to Deming, QUALITY should be aimed at fulfilling the needs of the

customer, present and future.
 Page 3

Quality Evolution

Phase Quality Quality Quality Total Quality

Measurement Control Assurance Management
Scope Products Raw Raw Material Raw Material
Material & Products & Products &
& Products & All Process
Process
Area of End of Line End of Line Online Before the beginning
Action
System Appraisal Appraisal Appraisal Prevention
Prevention Appraisal
Function Inspection Inspection Inspection Plan, Control,
Control Analysis Improve and Audit
Status Operators Supervisor Manager General Manager or
Vice President
Reporting Production Works General Managing Director or
Supervisor Manager Manager President

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 Contribution of Quality Gurus

A Guru, by definition, is a good person, a wise person and a teacher. A quality

Guru in addition to having these characteristics, will be, introducing , innovating
and implementing concept and approach to quality within business that will
make a major and lasting impact or give value for money or more Returns on
Investment(ROI). We cannot move ahead without addressing their contribution
to world of quality. There have been three groups of Gurus since the 1940’s:
 Early 1950’s Americans who took the messages of quality to Japan
 Late 1950’s Japanese who developed new concepts in response to the
Americans
 1970’s-1980’s Western Gurus who followed the Japanese industrial success
It is beyond the scope of this project to go into nitty-gritty on each of the Gurus,
their philosophies, teachings and tools; however, a brief overview of their
contribution to the quality journey is given, supported by several references.

W Edwards Deming - The Americans who went to Japan, placed great

importance and responsibility on management, at the individual and company
level, believing management to be responsible for 94% of quality problems. His
fourteen point plan for TQM is a complete philosophy of management that can
be applied to small or large organizations in the public, private or service
sectors:

1. Create constancy of purpose towards improvement of product and service

2. Adopt the new philosophy. We can no longer live with commonly accepted
levels of delay, mistakes and defective workmanship
3. Cease dependence on mass inspection. Instead, require statistical evidence
that quality is built in

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4. Improve the quality of supplies. End the practice of awarding business on
the basis of price
5. Continuously improve production. Find problems. It is management’s job to
work continually on the system
6. Train and educate all employees. Institute modern methods of training on
the job
7. Supervision must help people. Institute modern methods of supervision of
production workers, The responsibility of foremen must be changed from numbers
to quality
8. Drive out fear, so that everyone may work effectively for the company
9. Eliminate boundaries. Break down barriers between departments
10. Eliminate numerical goals, posters and slogans for the workforce asking for
new levels of productivity without providing methods
11. Eliminate work standards that prescribe numerical quotas
12. Let people be proud of their work. Remove barriers that stand between the
hourly worker and their right to pride of workmanship
13. Encourage self-improvement. Institute a vigorous program of education and
retraining
14. Commit to ever improving quality. Create a structure in top management that
will push on the above points every day

The Original Quality Gurus

Deming also encouraged a systematic

approach to problem solving and
promoted the widely known Plan, Do,
Check, Act (PDCA) cycle. The PDCA
cycle is also known as the Deming cycle,
although it was developed by a colleague
of Deming, Dr Shewhart.
 Page 6

It is a universal improvement methodology, the idea being to constantly

improve, and thereby reduce the difference between the requirements of the
Customer’s and the performance of the process. The cycle is about learning
and ongoing improvement, learning what works and what does not in a
systematic way; and the cycle repeats; after one cycle is complete, another is
started.

Dr Joseph M Juran - developed the Quality Trilogy – Quality Planning,

Quality Control and Quality Improvement. Good quality management requires
quality actions to be planned out, improved and controlled. The process
achieves control at one level of quality performance, then plans are made to
improve the performance on a project by project basis, using tools and
techniques such as Pareto analysis. This activity eventually achieves
breakthrough to an improved level, which is again controlled, to prevent any
deterioration. Dr. Juran believed quality is associated with customer satisfaction
and dissatisfaction with the product, and emphasized the necessity for ongoing
quality improvement through a succession of small improvement projects
carried out throughout the organization. His ten steps to quality improvement
are:

1. Build awareness of the need and opportunity for improvement

2. Set goals for improvement
3. Organize to reach the goals
4. Provide training
5. Carry out projects to solve problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep score of improvements achieved
10. Maintain momentum
 Page 7

He concentrated not just on the end customer, but on other external and
internal customers. Each person along the chain, from product designer to final
users, is a supplier and a customer. In addition, the person will be a process,
carrying out some transformation or activity.

Dr Kaoru Ishikawa – The Japanese, made many contributions to quality,

the most noteworthy being his total quality viewpoint, company wide quality
control, his emphasis on the human side of quality, the Ishikawa diagram and
the assembly and use of the “seven basic tools of quality”:

Pareto analysis which are the big

problems?
Cause and effect diagrams what
causes the problems?
Stratification how is the data made
up?
Check sheets how often it occurs or
is done?
Histograms what do overall
variations look like?
Scatter charts what are the
relationships between factors?
Process control charts which
variations to control and how?

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 He believed these seven tools should
be known widely, if not by everyone, in
an organization and used to analyze
problems and develop improvements.
Used together they form a powerful kit.

He distinguished between “errors”, which are inevitable, and “defects”, which

result when an error reaches a customer, and the aim of Poka-Yoke (Japanese
term, that means “mistake-proofing”) is to stop errors becoming defects. Defects
arise because errors are made and there is a cause and effect relationship
between the two. Zero quality control is the ideal production system and this
requires both Poka-Yoke and source inspections. In the latter, errors are looked
at before they become defects, and the system is either stopped for correction
or the error condition automatically adjusted to prevent it from becoming a
defect.

Philip B Crosby - The Western Guru, known for the concepts of “Quality is
Free” and “Zero Defects”, and his quality improvement process is based on his
four absolutes of quality:
1. Quality is conformance to requirements
2. The system of quality is prevention
3. The performance standard is zero defect
4. The measurement of quality is the price of non-conformance

His fourteen steps to quality improvement are:

Page 9
1. Form a management level quality improvement team (QIT) with
responsibility for quality improvement process planning and administration
2. Determine where current and potential quality problems lie
3. Evaluate the cost of quality and explain its use as a management tool to
measure waste
4. Raise quality awareness and personal concern for quality amongst all
employees
5. Take corrective actions, using established formal systems to remove the
root causes of problems
6. Establish a zero defects committee and program
7. Train all employees in quality improvement
8. Hold a Zero Defects Day to broadcast the change and as a management
recommitment and employee commitment
9. Encourage individuals and groups to set improvement goals
10. Encourage employees to communicate to management any obstacles they
face in attaining their improvement goals
11. Give formal recognition to all participants
12. Establish quality councils for quality management information sharing
13. Do it all over again – form a new quality improvement team

Tom Peters - identified leadership as being central to the quality

improvement process, discarding the word “Management” for “Leadership”. The
new role is of a facilitator, and the basis is “Managing by walking about”
(MBWA), enabling the leader to keep in touch with customers, innovation and
people, the three main
areas in the pursuit of excellence. He believes that, as the effective leader
walks, at least 3 major activities are happening:
 Listening ( suggests caring )
 Teaching ( values are transmitted )
 Facilitating ( able to give on-the-spot help)
Page 10
Having researched successful American organizations, he concluded that any
intelligent approach to organizing had to encompass, and treat as
interdependent, seven variables, in what became known as the McKinsey 7-S
Framework, designed to force explicit thought about both the hardware and
software of an organization:

Conclusion

Apart from above “gurus”, there are many other management “gurus” whose
philosophies and ideas are also important but at end of the day, it is
organizational call to select what is best and most suitable set of processes for
their organization based on their current and future needs

Page 11
 CHAPTER 3

INTRODUCTION
TO
“TOTAL QUALITY MANAGEMENT”
 Concept of TQM

Total Quality Management is a management approach that originated in the

1950's and has steadily become more popular since the early 1980's. Total
Quality is a description of the culture, attitude and organization of a company
that strives to provide customers with products and services that satisfy their
needs. The culture requires quality in all aspects of the company's operations,
with processes being done right the first time and defects and waste eradicated
from operations.

Total Quality Management, TQM, is a method by which management and

employees can become involved in the continuous improvement of the
production of goods and services. It is a combination of quality and
management tools aimed at increasing business and reducing losses due to
wasteful practices.

TQM is a management philosophy that seeks to integrate all organizational

functions (marketing, finance, design, engineering, and production, customer
service, etc.) to focus on meeting customer needs and organizational
objectives.

TQM views an organization as a collection of processes. It maintains that

organizations must strive to continuously improve these processes by
incorporating the knowledge and experiences of workers.

The simple objective of TQM is "Do the right things, right the first time, every
time". TQM is infinitely variable and adaptable. Although originally applied to
manufacturing operations, and for a number of years only used in that area,

TQM is now becoming recognized as a generic management tool, just as

applicable in service and public sector organizations. There are a number of
 Page 12

evolutionary standards with different sectors creating their own version from the
foundation of TQM activities which include:

 Commitment by senior management and all employees

 Meeting customer requirements
 Reducing development cycle times
 Just In Time/Demand Flow Manufacturing
 Improvement teams
 Reducing product and service costs
 Systems to facilitate improvement
 Line Management ownership
 Employee involvement and empowerment
 Recognition and celebration
 Challenging quantified goals and benchmarking
 Focus on processes / improvement plans
 Specific incorporation in strategic planning

These activities can be practiced any where by all personnel in Manufacturing,

Marketing, Engineering, R&D, Sales, Purchasing, HR, IT etc.
 Page 13

Tools and Techniques of TQM

The basic set of Total Quality Management tools are:

 Pareto Principle
 Scatter Plots
 Control Charts
 Flow Charts
 Cause and Effect , Fishbone, Ishikawa Diagram
 Histogram or Bar Graph
 Check Lists
 Check Sheets
Pareto Principle

The Pareto principle suggests that most effects come from relatively few
causes. In quantitative terms: 80% of the problems come from 20% of the
causes (machines, raw materials, operators etc.); 80% of the wealth is owned
by 20% of the people etc. Therefore effort aimed at the right 20% can solve
80% of the problems. Double (back to back) Pareto charts can be used to
compare 'before and after' situations. General use to decide where to apply
initial effort for maximum effect.

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Scatter Plots
A scatter plot is effectively a line graph with no line - i.e. the point intersections
between the two data sets are plotted but no attempt is made to physically draw
a line. The Y axis is conventionally used for the characteristic whose behavior
we would like to predict. Use to define the area of relationship between two
variables.

Warning: There may appear to be a relationship on the plot when in reality there
is none, or both variables actually relate independently to a third variable.

Page 15
Control Charts

Control charts are a method of Statistical Process Control, SPC. (Control

system for production processes). They enable the control of distribution of
variation rather than attempting to control each individual variation. Upper and
lower control and tolerance limits are calculated for a process and sampled
measures are regularly plotted about a central line between the two sets of
limits. The plotted line corresponds to the stability/trend of the process. Action
can be taken based on trend rather than on individual variation. This prevents
over-correction/compensation for random variation, which would lead to many
rejects.

Page 16
Flow Charts

Pictures, symbols or text coupled with lines, arrows on lines show direction of
flow. Enables modeling of processes; problems/opportunities and decision
points etc. Develops a common understanding of a process by those involved.
No particular standardization of symbology, so communication to a different
audience may require considerable time and explanation.

Cause and Effect , Fishbone, Ishikawa Diagram

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The cause-and-effect diagram is a method for analyzing process dispersion.
The diagram's purpose is to relate causes and effects. Three basic types:
Dispersion analysis, Process classification and cause enumeration. Effect =
problem to be resolved, opportunity to be grasped, result to be achieved.
Excellent for capturing team brainstorming output and for filling in from the 'wide
picture'. Helps organize and relate factors, providing a sequential view. Deals
with time direction but not quantity. Can become very complex. Can be difficult
to identify or demonstrate interrelationships.

Histogram or Bar Graph

A Histogram is a graphic summary of variation in a set of data. It enables us to

see patterns that are difficult to see in a simple table of numbers. Can be
analyzed to draw conclusions about the data set.

A histogram is a graph in which the continuous variable is clustered into

categories and the value of each cluster is plotted to give a series of bars as
above. The above example reveals the skewed distribution of a set of product
measurements that remain nevertheless within specified limits. Without using
some form of graphic this kind of problem can be difficult to analyses, recognize
or identify.

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Check Sheets
A Check Sheet is a data recording form that has been designed to readily
interpret results from the form itself. It needs to be designed for the specific data
it is to gather. Used for the collection of quantitative or qualitative repetitive
data. Adaptable to different data gathering situations. Minimal interpretation of
results required. Easy and quick to use. No control for various forms of bias -
exclusion, interaction, perception, operational, non-response, estimation.

Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation. Checklists are used under operational conditions to ensure that all
important steps or actions have been taken. Their primary purpose is for guiding
operations, not for collecting data. Simple and effective, generally used to check
that all aspects of a situation have been taken into account before action or
decision making.

Page 19
 Quality Circles

Background

Two atom bombs dropped on Japan during 1945, converted the thriving,
industrial empire of Japan to dust and smoke, with millions killed or maimed.
Every one thought it would be centuries before Japan re-captures its pristine
glory, but Japan rose like a phoenix from ashes to become the leading nation of
the world within a short span of time. The power behind this miracle was fierce
will, determination and commitment of Japanese people and their quest for
quality. They adopted Quality Circles as ways of building attitudes to surmount
problems, improve quality and to be competitive.

Quality Circle:- A Human Interface

It epitomizes the policy of people building, respect for human beings and
conceives a participative management culture. This concept enables the grass-
root level employees to play a meaningful and significant role in their
organization. The responsibility for the attainment of Quality depends on all the
departments of an Organization. The main purpose behind Quality Circles is to
build the people and produce quality people towards making quality products or
providing quality services. It is to make a 'Man' productive and knowledge
worthy.

The Origin

The concept of Quality Circle is primarily based upon recognition of the value of
the worker as a human being, as someone who willingly activates on his job, his
wisdom, intelligence, experience, attitude and feelings. It is based upon the
human resource management considered as one of the key factors in the
improvement of product quality & productivity.

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 Attributes of Quality Circles

 Quality Circle is a form of participation management.

 Quality Circle is a human resource development technique.
 Quality Circle is a problem solving technique.

Composition of Quality Circles

 It's a small group comprising of 6 to 12 employees doing similar work

 They meet together voluntarily on a regular basis for identifying
improvements in their respective work areas
 Their aim to achieve and so also to sustain excellence towards mutual
upliftment of employees as well as the organization.

Objectives of Quality Circles

 Change in Attitude.

 From "I don't care" to "I do care"

 Continuous improvement in quality of work life through
humanization of work.

 Self Development

 Bring out 'Hidden Potential' of people

 People get to learn additional skills.

 Development of Team Spirit

 Individual Vs Team – "I could not do but we did it"

 Eliminate inter departmental conflicts.

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 Improved Organizational Culture

 Positive working environment.

 Total involvement of people at all levels.
 Higher motivational level.

PROCESS OF OPERATION

The operation of quality circles involves a set of sequential steps as under:

The use of various techniques must be supported with accurate information and
data. Data and information collection or insufficient data could lead to a
situation where decisions or corrective action be implemented effectively.
Data and information should be collected for the following purposes

 To understand the actual situation and to support or reinforce an option

 To established the relationship between the problem and its causes..

Data can be collected using five methods, namely:

 Interviews
 Questionnaires
 Observation
 From reports and
 From complaints by the public.

The data collected should be recorded information on the date of Collection,

method of collection and the individual who collated the data. The data must be
recorded in a manner which facilitates its use that is, it must be arranged in
specific categories. For example, it should be categorized according to the four
management resources namely, man, method, material and machine.

Sampling:- A way to simplify

 Page 22

In data collection, samples are used. This involves the collection of data from a
small population of the total population involved. The sampling techniques
generally used are:-

 Random Sampling - This process involves the random selection of the

sample units. The selection can be made by the use of a random number through
table or lists of names to prevent any bias.
 Systematic Sampling - This process involves the systematic selection of the
sample to be used. For example, choosing every tenth name from a list of names..
 Stratified Sampling - This process involves the selection of the sample
according to specific categories such as age, sex and income group, etc.

QC members may use various techniques in the problem-solving process. The

effective techniques generally are:-

 Brainstorming;
 Cause and Effect Analysis
 Check sheets
 Pareto Analysis

Brainstorming

Brainstorming can be defined as the methodology used to encourage every

individual in the Circle to express freely their opinions or give ideas in an open
discussion..

Brainstorming can be used to list down all the problem faced by an

organization, their causes and the potential effects if a certain suggestion is
implemented.

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 To ensure the success of the brainstorming process, it is important for the Circle
to flow the following rules:

 The subject for brainstorming should be clear and accurate. For example,
members may brainstorm to identify the causes and reasons why a certain task
cannot be completed on schedule
 Each member will give only opinion/idea at each turn regardless of the
number of ideas he/she may have
 A tension-free atmosphere must be maintained to encourage free
expression of ideas
 Every idea expressed should be written on the black/white board, flip chart
or noted down by a secretary..
 At the end of the brainstorming session, all the ideas expressed should be
evaluated one by one and short listed.
 Voting is used to list the ideas according to priority. The prioritization is
based on number of votes received for each idea..

Cause and Effect Analysis

The Cause and Effect Analysis is also known as the Fish-Bone Analysis. This
technique is used to analyze problems with the identification of causes of a
problem through brainstorming. This technique is easy to use as it
summarizes, arranges and explains all the causes of a problem which has been
identified in the form of a diagram. It also allows for the identification of many
possible causes of a problem. There are five steps in the construction of a
Cause and Effect Diagram..

Step 1: Identify a Problem - The first step is to identify the problem and to state
the problem accurately.

Step 2: Determine the Main Causes - A problem is caused by various factors.

These factors can be categories according to the resources of production

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such as Man, Machine, Material and Method etc.

Step 3: Determine the Sub-Causes under the Main Causes. Through a process
of brainstorming, the sub-causes of the problem are identified and entered
below the appropriate main causes. Where possible, the sub-causes are
further broken down into more detailed sub-sub-causes

Check Sheets:

Check Sheets are an effective means of gathering data in a helpful and

meaningful way.

Kaoru Ishikawa is often credited with "democratizing statistics." This relates to

his desire to spread quality control ideas throughout the workplace. His tools
make it easier to comprehend raw data, making quality improvements simpler.
Check Sheets are a perfect example of this. Although they can vary a good
deal depending on the type of data being collected, the purpose of the check
sheet is always the same.

"The Check Sheet is used to facilitate the collection and analysis of data.
'Garbage in, Garbage out' is an old cliché, but it is true. Therefore, the purpose
for which data is being collected must be clear. Data reflects facts, but only if
they are properly collected. The number of defects and where they are found
can be recorded and analyzed for causes" .

Pareto Analysis:

Pareto analysis provides the mechanism to control and direct effort by fact, not
by emotion. It helps to clearly establish top priorities and to identify both
profitable and unprofitable targets. Pareto analysis is useful to:

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 Prioritize problems, goals, and objectives
 Identify root causes
 Select and define key quality improvement programs
 Select key customer relations and service programs
 Select key employee relations improvement programs
 Select and define key performance improvement programs
 Address the Vital Few and the Trivial Many causes of nonconformance
 Maximize research and product development time
 Verify operating procedures and manufacturing processes
 Product or services sales and distribution
 Allocate physical, financial and human resources

A Pareto chart is used for: Focusing on critical issues by ranking them in terms
of importance and frequency (example: Which course causes the most difficulty
for students? Which problem with Product X is most significant to the
customers?) Prioritizing problems or causes to efficiently initiate problem
solving (example: Which discipline problems should be tackled first? or, what is
the most frequent complaint by parents regarding the school? Solution of what
production problem will improve quality most?) Analyzing problems or causes
by different groupings of data (e.g., by program, by teacher, by school building;
by machine, by team) Analyzing the before and after impact of changes made in
a process (example: What is the most common complaint of parents before and
after the new principal was hired?; has the initiation of a quality improvement
program reduced the number of defectives?)

Quality management is not a one time effort but a continual long term endeavor
which has to be recognized, reinforced and rewarded by continuous monitoring
the ongoing data collection, evaluation, feedback and improvement
programmes. The top management should have to create an atmosphere
where the management and the workers cooperate with each other for smooth
functioning of the organization.
 Page 26

Introducing Quality Circle in an Organization

Quality circle is a new concept and its introduction may cause some resistance
on the part of the employees. Therefore, before introducing quality circle, all
precautions must be taken as in case of any organizational change. The steps
in the introduction of quality circle are briefly discussed below:

 Selling the Idea of Quality Circle: The workers must be educated the need
and significance of quality circle from the point of view of the organization and
the workers. The workers should be allowed to clear their doubts about quality
circle. Attempt should be made to seek their voluntary cooperation in implementing
quality circles in the organization.

 Constitution of Quality Circles: The employees should be encouraged to

form quality circles by drawing members doing the same kind of work. The
membership of a quality circle should not exceed ten to twelve members.
 Analysis of Quality Problems: The members of a quality circle are
supposed to meet periodically, say once a month. They would collect data and
analyze the same. Past records, employee’s suggestions, customer’s suggestions
are very important in this regard. This will lead to identification of the problems that
hinder quality.
 Problem Solving: The members of a quality circle will discuss the problems
thoroughly and make a list of possible solutions. The merits and demerits of each
solution will be evaluated. The final decision will be taken by the consensus of all
members.
 Presentation of Suggestions to the Management: The suggestions for
improving the quality are put in writing and forwarded to the management. Top
management may form a committee to evaluate the suggestions of different quality
circles in the organization.
 Page 27

 Implementation: Proper publicity should be given to the suggestions of

Quality circles which are being put into practice. This will motivate the
employees, as they will feel importance of having contributed to well being of
the organization.
 Page 28

CHAPTER 4

CGI’s “TQM” STRATEGY

o Founded in 1976
o Revenue run rate of CDN$3.8 billion
o Backlog of CDN$12.03 billion
o Approximately 27,000 professionals
o More than 100 offices serving clients in 16 countries
o One of the largest independent IT and business process services
companies
o NYSE: GIB — TSX: GIB.A
o 8.8 out of 10 satisfaction ranking in 2007 from CGI’s ISO
9001:2000certified client management process

o End-to-end services
o Consulting
o Systems integration
o Management of IT and business functions
o 100+ proprietary business solutions

o Focused industry expertise

o Financial services
o Government and healthcare
o Telecommunications and utilities
o Manufacturing , Retail and distribution
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o They are partnered with the following:

o 45 of 50 top banks in the Americas and Europe, and 11 of the 15
largest global property and casualty insurers
o Hundreds of government agencies and healthcare organizations
o 7 of the 10 largest global telecom carriers
o Leading global manufacturers in aerospace, metals and mining,
chemicals, and oil and gas
o Hundreds of retailers and multiple distribution segments and
channels, including postal services, transportation and logistics, and wholesale
distribution

Representative Clients
o Air Canada , Allstate Insurance ,American Express , AT&T ,Australian
and New Zealand Bank (ANZ) , AXA , Bank of America , Bell Canada , BellSouth ,
Blue Cross Blue Shield ,Bombardier , Commonwealth of Virginia , Desjardins ,
Enbridge Petroleum , Government of Canada , Government of Quebec , HSBC
Holdings plc , Hydro-Québec , If Skadeförsäkring AB , JPMorgan Chase & Co, ,
Liberty Mutual , Lloyds TSB Group Plc , Los Angeles County , Manu life Financial ,
Merrill Lynch , Michelin North America , National Bank of Canada , New York City ,
Prudential Financial , Rio Tinto Alcan , Sprint PCS , Telstra

Extract from www.cgi.com - Corporate statistics verified as on June 2008

 Page 30

In brief, CGI is Montreal (Canada) based 30 years old IT company, having

27,000 members across the globe. The entire business is divided more than
100 offices globally, in multiple countries, in various regions and in various
Business units. CGI India is one of the business units amongst all having more
than 1200 members with 3 offices in India. Two offices are located in Bangalore
and one in Mumbai in Seepz, Andheri.

CGI is in TQM since last 10 years. CGI is ISO 9001 (from last 10 years), ISO
27001 (from last 2 years) and SEI CMM Level 5 (from last 5 years)
certified/assessed company.

CGI is having Corporate Quality department to take care of TQM at global level
and having Quality department at each business unit. In India this department is
called “Total Software Quality Management (TSQM)”, having 20 full time
members (12 for Bangalore and 8 for Mumbai).s

The responsibilities of TSQM are:

 Training to all members on all internal as well as external quality models.

 Assisting all members for defining, implementing and improving their
process
 Conducting Internal audits
 Facilitating External audits and assessment
 Conduct analysis and reporting the recommendation to management for the
Internal as well as external client feedback/Complaints/Suggestion, Risks,
Learning’s and Audit report & Non conformities
 Process suggestions, complaints and feedback
 Prepare knowledge Management system and Process Assets repository
 Understand and implement industries best practices

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TQM – CGI Strategy

Before going through the strategy let us understand three key terminology
differences.

Member - CGI is big family having more than 27,000 members across the globe
and every member is trying their best for the betterment of their family and for
their prosperity hence they are not called as employee but referred as Member.

Engagement – As CGI is having longer association or relationship with various

clients hence their association is referred as Engagement and not project.

Customers are referred as Clients.

Each employee when join CGI has to undergo “Induction” training. This is
mandatory, irrespective of their experience or designation. CGI called this
process as Integration process. Each employee before joining CGI has some
information about CGI to ensure their job stability or prosperity but is not aware
about the culture of CGI. The Integration processes addresses Dreams,
Mission, Vision, Values, Policies, Procedures and other cultural as well as
professional and technical requirements and ensure to convert new employee
into Member of CGI family. CGI will ensure that every member is fully
integrated with CGI before starting delivering to their esteem clients.

Every member of CGI is well versed with following set of core values

 Intrapreneurship ( Leadership ) & Sharing

 Partnership & Quality
 Objectivity & Integrity
 Respect
 Financial Strength
 Corporate social responsibility

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Using these values CGI has spread message of TQM across all levels. Sharing
the same values allows CGI to enjoy considerable autonomy and swiftness of
action without compromising their cohesiveness. It also allows them to mobilize
teams more rapidly and bring together the most experienced individuals from
across the company, who are able to quickly work as one to address a given
challenge. And, of course, these values also guide CGI’s decisions and actions.

Partnership and Quality

For CGI, partnership and quality are both a philosophy and a way of life. They
develop and follow the best management practices and they entrench these
approaches into client relationships and service delivery frameworks in order to
foster long term and strong partnerships with their clients. They listen to their
clients and they are committed to their total satisfaction in everything they do.

Objectivity and Integrity

Exercise the highest degree of independent thinking in selecting the products,
services and solutions they recommend to clients. In doing so, they adhere to

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the highest values of quality, objectivity and integrity. Consequently, strict rules
of business and professional conduct are applied. They do not accept any
remuneration from their suppliers.

Intrapreneurship and Sharing

CGI’s success is based on the competence, commitment and enthusiasm of

their members. Therefore, CGI promotes a climate of innovation and initiative
where they are empowered with a sense of ownership in supporting clients,
thus ensuring the firm’s profitable growth. Through teamwork, sharing their
know-how and expertise, they bring the best of CGI to their clients. As
members, they share in the value they create through equity ownership and
profit participation.

Respect

As a global company, CGI recognizes the richness that diversity brings to the
company and welcome this diversity while embracing the overall CGI culture. In
all they do what are respectful for their fellow members, clients, business
partners and for their competitors

Financial Strength

CGI strives to deliver strong, consistent financial performance which sustains

long term growth and rewards for their members and shareholders. Financial
strength enables them to continuously invest and improve services and
business solutions to the benefit of their clients. To this end, they manage their
business to generate industry superior returns.

Corporate Social Responsibility

 Their business model is designed to ensure that they are close to their

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clients and communities. They embrace their social responsibilities and

contribute to the continuous development of the communities in which we all
live and work.

To summarize, demonstrating these values from leaders, continuous training

to all members at all levels, respecting member knowledge, providing excellent
environment where there is no fear to share knowledge are essential activities
CGI ensure to implement TQM

CGI ensures to provide Quality not only in their end product or service but also
make it an integral part of their business rule/processes which they use to
create their goods and services. An effective TQM program will produce greater
quantity, faster and at lower costs, by reducing their rework rates and cycle
times. In next chapter we will focus on detail implementation.
 Page 35

CHAPTER 5

“TQM” IMPLEMENTATION IN
CGI
 TQM Implementation in CGI

Definition and Establishment of Quality System Management (QSM)

First step that was followed towards TQM was identification of all required
processes such as Technical, Functional, Support, Management etc. Technical
& functional processes covers all process related to spare parts development,
maintenance, migration etc. along with various domains such as Retail,
Manufacturing, Finance, Insurance, service centers, Medical etc. Support
processes takes care of all departmental process in detail such as Human
Resources, Finance, Information Security and Information Technology,
Administration, Training departments etc. . Management processes takes care
of all policies, frameworks and corporate level requirements for all business
units. As CGI is also following other quality models along with TQM such as SEI
CMM and various internal quality frameworks they have considered respective
requirements from these models too.

Once all processes were listed, they have come out with detail flowchart for all
processes to know their sequencing, interfaces, dependency on each other and
also to avoid duplication or redundancy if any. They have also followed Real
Value Activity (RVA), Business Value Activity (BVA) and No Value Activity
(NVA) principle of Six Sigma to decide the priority list. After finalizing their
processes they have documented them all in Quality System Management
(QSM) along with their Quality policy and Quality Manual after review and
approval from Top Management.

This QSM whenever gets revised will get released only after review and
approval from top management. Top Management along with TSQM takes full
responsibility to publish QSM time to time and ensure to address the same
when ever and where ever they found opportunity. All required budgets in

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terms of cost, infrastructure (hardware, software, building, workspace, utilities,

equipment etc) members’ efforts and cost are sponsored by them. They also
ensure to provide resources with right education, right experience and ensure to
provide right training to provide right skills. CGI has following various training
effectiveness mechanism to ensure that attended participants are properly
trained and faculty has the capability and skills to train the participants.

Usage of Quality System Management (QSM)

TSQM is providing detailed training to all members of CGI at all levels. The
process of training is not one time but it is journey. The annual calendar is
published well in advance so that all members can plan their team members
training requirements. Once members are trained on QSM then they start using
and implementing QSM accordingly.

Every department has defined their own process and their own process assets
such as forms, template, and guidelines, checklists etc., depending upon their
services, Service Level Agreement (SLA) are defined and monitored on monthly
basis.

Every engagement prepares their own plans based on requirement received

from client. Plans covers client requirements, Strategy to deliver the
requirements, Communication Management (Frequency and documentation
responsibility of Engagement, Management and review meetings, weekly status
reporting to management, clients etc, Escalation mechanism etc), Risk
management (identification of risk, risk probability, impact, priority, mitigation
and contingencies) , Configuration management (Data and document control) ,
Quality management (verification, validation mechanism, quality goals etc)
along with teams details, roles and responsibilities. While defining quality goals,
engagement are also considering business goals too. The common quality
goals for all engagements are Productivity, Defect Density, Review

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Effectiveness, Schedule Variance, Effort Variance and Cost of Quality etc. Apart
from Organizational level process assets such as guidelines, checklist, forms,
templates, standards, methodologies, engagement level assets are also getting
developed depending upon client’s requirements. Depending upon engagement
uniqueness, applicable best process assets, practices and best methods are
getting shared with the help of TSQM

Monitor and Improve Quality System Management (QSM)

Based on Business plans, CGI finalize their Business goals (Voice of Business)
and based on client’s requirement, Engagement Managers are planning their
engagement goals (Voice of Customer). Based on these two goals
organizational level processes are getting tailored and followed (Voice of
Process) for every engagement. Based on goals various measurements are
defined, managed and monitored. If the actual results are not matching than the
set goals then correction (fixing the problem) or corrective (preventing
recurrence) or preventive (preventing potential occurrence) action are taking
depending upon the situation till the goals are met. Based on learning’s goals
are revised and plans are revisited at engagement as well as at CGI level.

For every engagement or for every department one member from TSQM is
nominated to provide quality assistance on TQM, called as “Software Quality
Assurance Engineer (SQAE)” for engagement or “Quality Assurance Engineer
(QAE) ” for department. They visit every engagement/department on monthly
basis to ensure whether that team is following internal or external quality model
or not and reports their finding to management on monthly basis. Apart from
these checks, every engagement/department gets audited every six months
basis through Internal Audit and once in a year through External Audit. Apart
from conducting SQAE checks, coordinating internal and external audits,
SQAE/QAE also helps assigned team for their clarifications, query, if any Apart

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from TSQM checks and audits, on monthly basis management meeting taking
place (BMC meeting) wherein all engagement and departmental status are
getting discussed and appropriate corrective and preventive actions are taken
accordingly. During meeting Appreciation, suggestions, complaints and other
improvement or innovations activities if any are also getting discussed.

Depending upon Return on Investment (ROI) suggestions are getting prioritize

for implementation. In case improvement plan is at larger scale (needs more
days or needs a team of members) Quality Improvement Teams are formed and
required resources are provided till the solution is implemented. Without piloting
and ensuring required ROI suggestions are not implemented across the
organization.

On quarterly basis, Open House is conducted where in local management

updates member on quarterly performance and their future plans. Member’s
issues, if any are also addressed during this meeting. All good performers are
recognized by rewarding some monetary coupons and appreciation letter.

On yearly basis, Annual Tour is conducted where in Top management updates

member on yearly performance and their future plans. Member’s issues, if any
are also addressed during this meeting. All star performers are recognized by
rewarding some monetary coupons and appreciation letter.

Through various mechanism such as Engagement/department Team meetings,

Management review meeting, TSQM checks, internal as well as external audit
observation, clients and member feedback, suggestions from members, open
forum and annual tour. Management gets various feedbacks for QMS revision.
Using Statistical tool TSQM analyze them all and if found value addition to CGI
suggest management to take appropriate action.

This is how CGI is adopted TQM along with ISO 9001 and Cmmi which is
getting audited or assessed by third party on periodic basis since long.

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CHAPTER 6

PROJECT ANALYSIS
 Advantages of TQM

Fully client driven

o Faster, Better and Cheaper is the mantra of TQM. Every activity is planned
and implemented to ensure customer delight. Customer covers internal as well as
external customer. All employees are fully focused on satisfying or delighting their
clients without compromising on quality.
o The supplier or vendor also part of this objective. Vendors are treated like
partner so that every one will take the same ownership and also earned the equal
reward.
o Various processes, practices, methodologies, guidelines, standards are
defined, documented, communicated and enforced across the organization so that
all stake holders are in sync with organizational goals
o Periodic communication is ensured at all levels to know the progress of
organization towards their set goals.

Continuous Improvement - Organization is working or improving on Kaizen

mode. Small but continuous improvements at all levels are going on

Employee Empowerment

o All employees are trained on periodic basis on technical, functional,

management and on soft skills through out their span. Training journey starts with
Integration and then goes on and on till they are familiar with required skills and to
get updated on revised new technical know how.
o Improvements are not only based on past experience or learning’s but
also based on suggestions across all levels. As employees are fully trained and
fully focused on their work they are the right channels to know the improvement
area’s which is encouraged through suggestions scheme. Good Suggestions are
rewarded instantly or on quarterly or

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yearly basis depending upon organizational practices. All recognized

orImplemented suggestions are communicated through newsletter along
with the employees’ name and with their reward so to empower everyone
to go and suggest all improvement area to improve organizational
productivity or to reduce waste/rework or to control cost etc.

o Employees get opportunities to work on improvement areas’ through

focused team, improvement teams or quality circles and get management visibility
for their interest in improving organization. It fosters leadership and empowers
employees to utilize all his potential at greater extent.

o They will ensure to plan everything; everyone in organization is aware

where they are leading for. The drive and direction is focused and in align with the
business plan
o Management members are fully involved in implementing business plan
and will ensure to provide all required resources such has Resources, Budget,
Environment Utilities etc time to time till the goals are achieved
o Various control mechanisms are in place such functional, departmental
meetings, periodic checks, periodic reporting, review meeting, audits etc to ensure
all activities are in align with business plan
o Based on analysis, extending support by taking corrective and preventive
actions, recognizing and rewarding achievements, revising plan and keeping
everyone informed about the progress and about future plan on timely basis.

Data driven Decision Making

o The data for all important activities are collected as measurement. These
measurement data is used to take decision or to forecast or predict the business.
Decisions are not person dependant but process dependant.

Page 41

Various tools such Brainstorming, Fish Bone, Pareto, Control Charts,

Histogram, Correlation, Regression are used to control variance and
variation.
 Page 42

Limitation of TQM

o TQM is a philosophy
o It is not quality management but should be referred as process
management or process of improvement
o Does not Offers any set of guidelines for quality management. Like
religion, there are as many versions as there are advocates. A study by Ernst &
Young turned up around 945 different approaches for implementing TQM.
o In reality it is not total since it only addresses one aspect of quality
management that is improvement
o TQM is remedial and not preventive. TQM is aimed at identifying the
causes of quality problems and eliminating them. The theory is that by involving
everyone in solving quality problems, eventually all problems will be eliminated
and the company's quality will continue to get better and better. Unfortunately,
TQM is based on studying past data which amounts to examining the barn door
after the horse has run away.
o ISO-9000 requires documentation and record keeping. ISO-9000, which
requires regular audits by an outside party. There is no such requirement in TQM.
TQM has a history of fading away over time. As a result, improvements often get
lost or forgotten as new people, new products and new managers come and go.
Also, the typical TQM implementation relies heavily on the leadership of a
"champion." When the champion goes, so does the TQM program. TQM can
disappear without a whimper. According to various published reports, about three-
quarters of significantly sized American manufacturers have attempted some form
of TQM. Of those programs, about four-fifths have failed to produce any significant
results and most of them have simply disappeared.
o Goals are mainly set at higher level and very limited to bottom line
o Goals are not dead line.

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o Very often, Changes is triggered by internal customer requirements

o Improvement teams or Quality circles includes on techies, support or
departmental or management contribution is very less
o Developed by techies with limited knowledge of management
o Mostly the result is continual improvement and incident of breakthrough
improvement are very rare
o Does not target a specific scope and no dead line so improvement is not
consistent
o Focus is mostly in Quality instead of Quality + Cost + Cycle Time +
Business Issues
o As it is management driven, management support is must which is not
consistent.
 Page 44

CHAPTER 7

RECOMMENDATIONS
 Recommendations

After going through the concept, advantage, limitation of TQM and where TQM
is implemented along with ISO 9001 and CMMi suggesting for following
recommendations based on my observations and learning’s,.

Better to implement TQM with ISO 9001 or with CMMI or Six Sigma so that it
will not remain concept or Philosophy or theory but it should be integral part of
organization mechanism in place to address, resolve and prevent all quality
related issues.

The typical TQM program takes a year or so just to get started and as there is
no limit majority of them don’t achieve the required results even after spending
years hence need to be carried out on time bound basis.

Voice of Customer, Voice of Business and Voice of process all should be

considered for setting goals. Goal should be SMART. Specific, Measurable,
Achievable, Realistic and Target based.

Although TQM assures live and working continuous improvement and

compliance with the key elements of the standards it is not globally accepted, all
purpose quality model in the world hence If a business wants to remain
competitive, we have to implement along with ISO or CMMI or with Six Sigma.

Your activity should lead to profit improvement and not limited to process
improvement or for certification.

First improve and then document and then train.

Scope should be equally provided for Continual & Breakthrough improvements.

 Page 45

Apart from Brainstorming, Fish Bone, Pareto, Control Charts, Histogram,

Correlation and Regression it should facilitate usage of improvement, such as
Failure Mode and Effect Analysis (FMEA), Quality

Function Deployment (QFD) and other tools of six sigma to help to move the
company towards being a world-class operation.

So to delight your internal as well as external clients go for

If you don’t go someone else will…..

 Page 46

CHAPTER 8
ANNEXURE
 Questionnaires

o What is the mission and vision of CGI?

o What are the objectives or goals of CGI?
o Would you please describe about Quality Journey of CGI?
o Globally as well as in India
o Who is the lead auditor for CGI for ISO 9001?
o Who is the lead auditor for CGI for ISO 27001?
o Who is the lead auditor for CGI for CMMi Level 5?
o What is the strength of CGI India?
o Do you have separate department for Quality?
o If yes, then how many employees are working in that?
o If no, then how you manage quality function in your company?
o Are they working full time or as and when basis?
o Would you please let me know how Quality department is working?
o Do you have separate department for Audit?
o If yes, then how many employee are working in that?
o If no, then how you manage audit function in your company?
o Are they working full time or as and when basis?
o Would you please let me know how Audit department is working?
o Who is the right person to talk about TQM here?
o Do you need any certificate from my college for this project?
o Could you please share soft copy of your TQM with me for my
project?
o If not could you provide me the hard copy for reference purpose?
o For referring at home or within office only?
o Can I take notes from hard copy and reproduce your activities in my
project after getting reviewed from your members?
o How TQM is getting implemented in CGI?
o What are the resources requirements of TQM in CGI?

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o Can I get chance to see the budget for TQM?

o How to do you ensure that all employees are understood TQM and
followed TQM?
o How do you ensure that message of TQM passes to all employees,
all the time?
o How do you compare TQM with you internal as well as external
quality models (ISO 9001 and CMMi)?
o Do you follow any reorganization or reward system to promote TQM?
o How do you improve your TQM?
o What are the various tools you are using for implementing TQM?
o How do you ensure to keep your customer and your employee
happy?
o Do your follow any measurement plan to monitor your business goals
or objectives?
o Do you follow specific process to handle customer complaints?
o Internal as well as external?
o Do you follow specific process to handle suggestion, improvement
and innovation?
o How do you promote quality in your company?
o Do you conduct quality quiz regularly?
o Do you conduct quality week?
o If yes? What is the frequency?
 Page 48

CHAPTER 9

BIBLIOGRAPHY &
WEBLIOGRAPHY
 Bibliography

o Productivity & Quality Management – S.D. Aphale

o TQM & ISO 9000 for Architects and Designers – Charles Nelson
o Six Sigma Black Belt training Material – Asian Institute of Quality
Management

Webliography

o WWW.GOOGLE.COM
o WWW.CGI.COM
o WWW.ISIXSIGMA.COM
Page 49