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 worker no longer made the entire product, only in a portion – brought about a decline in workmanship. Because most products manufactured during that early period were not complicated, quality was not greatly affected. In fact, because productivity improved there was a decrease in cost, which resulted in lower customer expectations. As products became more complicated and jobs more specialized, it became necessary to inspects after manufacture. Industrial Revolution 1924 Concept of Specialization of labor -decline workmanship, caused complexity and less quality. Required Inspection after Production W.A.Shewart of Bell Telephone lab. Developed a statistical chart for the control of Product variables. Later in the same decade H.F.Dodge and H.G. Roming developed the area of acceptance sampling as a substitute for 100% Inspection Recognition of the value of SCC (Statistical Control Chart) American Society for quality (ASQ) formed E.Deming and Joseph.M.Juran made their valuable lectures and sharing on SCC to Japanese engineers and management’s response to achieve quality. Joseph Juran made his first trip to Japan in 1954 and further emphasized management’s responsibility to achieve Quality. He began his cost of quality approach , emphasizing accurate and complete identification and measurement of costs of quality.

1942 1946 1950

1960

The concept of ‘Zero – defects’ gained favour. Philip Crosby, who was the champion of Zero – defects concept focused on employee’s motivation and awareness. 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- early U.S Managers were frequent troops to Japan to learn the Japanese miracles. 1980 A quality success began to occur in U.S products and services Middle The concept of TQM were being publicized 1980s Late 1980s The auto motive industries began to emphasize statistical process control (SPC) The Malcom Baldrige National Quality Award and became the means to measure TQM. Genechi Taguchi introduced his concepts of ‘Parameter and Tolerance design’ 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 world wide, ISO – 14000 was approved as the world wide model for Environment Management system Quality assurance begins as a priority for engineers and managers. Transmission to open economy, domestic and international competitions starts. TQM is the ultimatum for continuous improvement and sustainable growth High growth of economy- the new millennium brought about increased emphasis on world wide quality and the Internet.

1996- 2000

2001 – 07

CONCEPTUAL DEVELOPMET OF TQM (IN INDIAN SCINARIO) Step – 1 Step – 2 Step – 3 Step – 4 Step – 5 The year 1991 (economic liberalization) brought about a lot of changes in the Indian Economy and over all business environment in our country. Lots of Foreign MNCs started operations in India in the form of Joint ventures (JV) like – Hero Honda, Maruti Sujuki, etc. Professor Yasutosi Washio, has predicted that the quality of Indian man will overtake that of Japan in 2013. Mahindra’s Tractor unit is the first tractor unit in the world to win DEMNG Award. Indian industries even small industries interested to envolve themselves under total quality management process by using the tools and techniques like TPM (Total Productive Maintenance) and other standards.

Now it is very important to see what is the Evolution of TQM – related activities in India and what could be the projection for the future. We can see it in tabular form in contrast with changes in social and economic environment, development in quality, quality control tools, and quality assurance system and finally changes of concepts in policy management in India. The year 1991 brought about a lot of changes in the Indian economy and the overall business environment in the country. During the liberalization process, a lot of foreign multinational corporations (MNCs) started operations in India. Most of these operations were in the form of Joint Ventures (JVs) with domestic companies. It was not that all the JVs started during the period after 1991 only, Some JVs, such as Maruti – Suzuki, Hero Honda, TVS Suzuki, Escorts Yamaha etc., had already started in the early and mid – 1980s due to the decision of the Indian Government to allow the entry of MNCs in selective sectors of the industry. These MNCs could set up JVs with Indian Companies only if the Indian company held a majority stake. This condition existed only in the 1980s. After 1991, the Government continued more rigorously with its liberalization programme, and we saw most of the earlier restrictions, such as the majority stake of the Indian JV partner, being withdrawn by the 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 the domestic companies, which had ben operating, for a long period of time, in a seller’s market of the license Raj. Most of the JVs formed during the 1980s and 1990s have ended with either the MNC taking full control of the venture, or the MNC exiting the JV 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 a few, JVs which ended up in this manner. Table - 1 shows the evolution of TQM related activities in India and projection for the future given by Mehta (1999)

Changes in social and economic environment 1947-82 India becomes independent • Regulated economy • Slow rate of economic growth • Very low competition 1983-94 • Initial phase of deregulation of economy • Slow growth rate • Imported kits • Emerging domestic competition 1995-2000 • Transition to open economy • Adequate growth rate of economy • Growing domestic competition • Select international competition

Developmen t in quality

Quality control (QC) tools •

Quality assurance (QA) systems • • Regulation of inspection Regulation of product audit

Change of concepts in policy management

QC in inspection stage (Identification of defectives)

Inspection

Quality awarene ss growing Attempt ed use of QC circles QC in manufac turing stage (preventi on of detectiv es)

7 tools of QC

• •

QA systems Compliance with ISO 9000 quality system requirement s

To attach importance to measures or means in addition to target

• • •

Various statistical methods Design of experiments Failure mode effect analysis and fault tree analysis

• •

Regulation of process control QC process chart, control chart, and check sheet Quality tables deploying required qualities Quality tables transforming required qualities to design qualities

To attach importance to coordination to management of all the divisions in addition to that of each division

2001-07 • Deregulation of economy • High growth of economy • Open competition

QC in design stage (making new products to satisfy new custome r requirem ent)

• • •

Multivariate analysis Weibull probability paper 7 management tools

To attach importance to midterm and long-term policies in addition to those specified annually

2008• Self-regulated economy • Total integration with global market (Development of technology for new products) • Steady growth economy

QC in research stage

Subsystem in managing research programme using a combination of Q table, process design, and process control

Regulation of design review

Transition to strategic management of business by the participant of all members and all divisions

Finally, it is true that the effort on quality improvement will intensify only when it becomes an issue for survival and sustainability and that is dependent upon the intensity of fair competition in the market place. In this context, it is high time that the Indian companies follow business excellence model of survival and growth to face the threat of competition effectively.

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