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2. CHAPTER TWO
CONCEPTS AND PHILOSOPHIES
3. CHAPTER THREE
THE ACCEPTABILITY OF TQM
4. CHAPTER FOUR
THE ESSENTIALS OF TQM
5. CHAPTER FIVE
THE EFFECTS OF TQM
6. CHAPTER SIX
IMPLEMENTATION OF TQM
7. CHAPTER SEVEN
CASE STUDY ON IBM (TIVOLI SOFTWARE).
International Business Machine Corporation
Total Quality Management
International Standard Organization
Total Productive Maintenance
Quality Control Circles
Business Process Re-Engineering
Total Quality Circles
Automated Teller Machines
Control Processing Centre
Computer Aided Design
Quality Management System
Every nation has its own independent historical and cultural background. The quality sce -nario , therefore, differs from one national setting to the other. The nations are orienting their quality management strategies and systems to meet the requirements of the opera-ing environment though the primary focus remains the same, that is, Total Customer Satisfication .Many of the present techniques of quality management were developed in Japan. However, U.S.A., European nations and developing nations have also contributed
significantly to this development. The studies carried out by researchers in different national settings reveal that the concept and philosophies of TQM are not understood by the managers and others.An all out effort , therefore is required to promote the understan-ding by launching massive educational and management development programs at all levels so as to create a cultural consciousness towards quality. TQM is not undimensional approach but is multifaceted in nature.Understanding these facets is essential to promote a successful quality improvement program. An integrated approach on all vital components of TQM is required to achieve the desired goal.
So, the summarization is being done in the following points.
1. TQM has been accepted by both service and manufacturing organizations,globally as a systematic management approach to meet the competitive challenges.
2. TQM redefines the quality with emphasis on top management commitment and custo-mer satisfaction.
3. The benefits of TQM are numerous and are increasingly realized by organizations.
4. TQM provides a linkage between productivity and quality.
5. The application of TQM tools increases a company s efficiency.
6. The focus of TQM is on:
(a) Involvement of everyone in organization in continuous improvement. (b) Commitment to satisfy customers. (c) Participation through teamwork. (d) Commitment and Leadership of top management.
DEFINITION As defined by ISO: "TQM is a management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."
In Japanese, TQM comprises four process steps, namely:
1. Kaizen Focuses on Continuous Process Improvement, to make processes visible, repeatable and measureable.
2. Atarimae Hinshitsu Focuses on intangible effects on processes and ways to optimize and reduce their effects.
3. Kansei Examining the way the user applies the product leads to improvement in the product itself.
4. Miryokuteki Hinshitsu Broadens management concern beyond the immediate product.
TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.
Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, government, and service industries, as well as NASA space and science programs.
Although W. Edwards Deming is largely credited with igniting the quality revolution in Japan starting in 1946 and trying to bring it to the United States in the 1980s, Armand V. Feigenbaum was developing a similar set of principles at General Electric in the United States at around the same time. "Total Quality Control" was the key concept of Feigenbaum's 1951 book, Quality Control: Principles, Practice, and Administration, a book that was subsequently released in 1961 under the title, Total Quality Control (ISBN 0070203539). Joseph Juran, Philip B. Crosby, and Kaoru Ishikawa also contributed to the body of knowledge now known as TQM.
The American Society for Quality says that the term Total Quality Management was first used by the U.S. Naval Air Systems Command "to describe its Japanese-style management approach to quality improvement." This is consistent with the story that the United States Department of the Navy Personnel Research and Development Center began researching the use of statistical process control (SPC); the work of Juran, Crosby, and Ishikawa; and the philosophy of Deming to make performance improvements in 1984. This approach was first tested at the North Island Naval Aviation Depot.
In his paper, "The Making of TQM: History and Margins of the Hi(gh)-Story" from 1994, Xu claims that "Total Quality Control" is translated incorrectly from Japanese since there is no difference between the words "control" and "management" in Japanese. William Golimski refers to Koji Kobayashi, former CEO of NEC, being the first to use TQM, which he did during a speech when he got the Deming prize in 1974.
TQM :- A QUALITY ORIENTED APPROACH
Total Quality Management (TQM) is one of quality-oriented approaches that many organisations adopt. It is generally acknowledged that manufacturing companies need to be quality oriented in conducting their business to survive the business world. TQM is an integrated management philosophy and a set of practices that emphasise top management commitment, customer focus, supplier relationship, benchmarking, quality-oriented training, employee focus, zero-defects, process improvement, and quality measurement. This paper investigates the structural linkages between TQM, product quality performance and business performance in the electronics industry in Malaysia. Given the nature of this study, the statistical analysis technique called Structural Equation Modelling was used. This preliminary result suggests that there is insufficient statistical evidence to conclude significant simple relationships between TQM, product quality performance, and business performance. This implies that the electronics industry cannot assume direct causal linkages between these three constructs, which might also suggest that there is a more complex relationship
As TQM focuses on the concept of university. and business performance. product quality performance. CHARACTERISTICS OF TQM: The characteristics of TQM. 4. TQM is a strategy for continuously improving performance at all levels and in all areas of responsibility. The needs change from person to person and also from place to place. the customer longs for different satisfaction perspectives which are generally overlooked in the traditional approach. 3. management 5. supplier relations and training in particular appear to be of primary importance for TQM practices in Malaysian electronics companies. 2. POTENTIAL BENEFITS OF TQM: The advantages of adopting TQM system compared to conventional quality system are numerous and are outlined below. Responsibility for establishments and improvement of systems lies with the of an organisation.between TQM. as revealed from above definition are as follows: 1. 1. However. However. TQM helps to focus clearly on the needs of the market. TQM requires a long term commitment for continuous improvement of all processes. the results reveal that top management commitment. TQM is customer oriented. it tries to abstract the satisfaction . The traditional approach of quality control focuses on the technical details of a product so as to satisfy the customer. The success of TQM demands the leadership of top management and continuous involvement.
This serves to satisfy the higher human needs of recognition and self-development and enhances employee s interest in the job. and communicating these properly to one and all in the organization. it gives an edge to the organizations of variable nature to meet the competition. For this cause it is essential for the organistions to understand the competition and develop and adopt suitable strategies to meet the challenges. A continuous effort to identify the problems and resolve them helps to reduce the waste. 2.perceptions of the market and thus helps the organisation to identify and meet the requirements of the market in a better way. on bringing about attitudinal and cultural change through promotion of participative work culture and effective team-work. It channelises the procedures necessary to achieve quality performance. adopting SQC and SPC techniques and developing and using a system of evaluation . the organization can channelize their efforts to achieve the desired and objectivated quality performance. The dynamic changes in the global market and the open market policies adopted by a large number of organizations has resulted in increased competition and for many organizations the survival has become a key issue. 5. is not restricted to the product or service areas but reflects in other spheres as well. 3. The employee s performance. It helps examine critically and continuously all processes to remove non-productive activities and waste. goals and objectives. The organizations always aim at improving productivity as it leads to reduction in cost resulting in increase in profitability. It requires a systematic and a long-term planning and strategic approach. TQM facilitates to aspire for a top quality performer in every sphere of activity. Quality in its true sense can not be achieved instantly. cost-effectiveness and safety. It gears organizations to fully understand the competition and develop an effective combating strategy. The efforts in this direction are contributed because of the formation of quality improvement teams which meet regularly and through a systematic approach which tries to remove non-productive activity. 4. thus. The culture of well being thus improves housekeeping. It is a well accepted fact that the negative attitudes of employees and non-participative culture of the organization pose the greatest hurdle to organisation s success. By focusing on defining the quality policies. As TQM helps to understand the pulse of customer and thus the market. TQM emphasis. . growth and prosperity.
The concept and principles. has been killed and resurrected on a number of occasions. Improper procedures and inadequate communication are yet another bane of many organizations. a buzzword phrase of the 1980's. are many and multi-faceted. which result in misunderstanding. Companies who have implemented TQM include Ford Motor Company. The latest changes coming up for the ISO 9001:2000 standard s "Process Model" seem to complete the embodiment. low morale and so on. 7. . which includes enrichment of the quality of the worklife and many more are not quantifiable. It helps to review the process needed to develop the strategy of never ending improvement. TQM brings together members of various related sections. departments and different levels of management thereby providing an effective vehicle of communication and interaction. The benefits derived by the organizations. It helps to develop good procedures for communication and acknowledging good work. confusion. poor quality. Many of these can be measured in quantitative terms. They need to be continuous to meet the dynamic challenges. Phillips Semiconductor. therefore. though simple seem to be creep back into ing existence by "bits and pieces" through the evolution of the ISO9001 Management Quality System standard. However. CHAPTER TWO CONCEPTS AND PHILOSOPHIES OF TQM INTRODUCTION: Total Quality Management (TQM). SGL Carbon. it has to be established whether they do occur or not in order to prove or disapprove the efficacy of the concept. low productivity. the intangible benefits. This can be assessed by a well-planned research project or by carrying out an opinion survey periodically. At the same time. The tangible and intangible benefits of TQM are variable in nature. duplication of efforts. Motorola and Toyota Motor Company.6. Quality improvement efforts cannot be restricted to any time period. The following information is provided to give an understanding of the key elements of this process. TQM is the concept that quality can be managed and that it is a process. TQM emphasizes on a continuous and periodic review so as to make the required changes.
Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction and measurement requirements. Management = Quality can and must be managed. about 75 percent of the steps are in place for TQM. TQM Compared to ISO 9001 : ISO 9000 is a Quality System Management Standard. implementing TQM is being proactive concerning quality rather than reactive. In short. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives. it must be a continuous way of life. The requirements for TQM can be considered ISO plus.TOTAL QUALITY MANAGEMENT(TQM) : Total = Quality involves everyone and all activities in the company. Meeting Customer Requirements Reducing Development Cycle Times Just In Time/Demand Flow Manufacturing Improvement Teams Reducing Product and Service Costs Improving Administrative Systems Training Ten Steps to Total Quality Management (TQM): The Ten Steps to TQM are as follows: 1. Pursue New Strategic Thinking Know your Customers Set True Customer Requirements . Where there is an ISO system. a philosophy of perpetual improvement in everything we do. 3. TQM as a Foundation : TQM is the foundation for activities which include. Quality = Conformance to Requirements (Meeting Customer Requirements). An ISO implementation is a basis for a Total Quality Management implementation. TQM = A process for managing quality. 2. TQM is a philosophy of perpetual improvement.
6. 11.4. 12. Every employee is responsible for quality. not negotiated. not front end costs. 5. Management must be involved and lead. 8. 7. communicate. Quality can and must be managed. 3. The quality standard is defect free. participate) Check (review) Act (recognize. Processes. 5. Quality must be measured. 4. 8. Concentrate on Prevention. 2. 10. 10. Everyone has a customer and is a supplier. 2. 7. Quality improvements must be continuous. 9. 9. Life cycle costs. 6. revise) . not just fixed. 1. Goals are based on requirements. support. 3. not people are the problem. Not Correction Reduce Chronic Waste Pursue a Continuous Improvement Strategy Use Structured Methodology for Process Improvement Reduce Variation Use a Balanced Approach Apply to All Functions Principles of TQM : The Principles of TQM are as follows: 1. Problems must be prevented. 4. Management Commitment Plan (drive. direct) Do (deploy.
2. 1. 4. 1. Fact Based Decision Making SPC (statistical process control) DOE. 3.13. 3. 4. maintain. improve standards 16. 2. 1. 2. FMEA The 7 statistical tools TOPS (FORD 8D . 2. 4. 3. Customer Focus Supplier partnership Service relationship with internal customers Never compromise quality Customer driven standards Plan and organize for quality improvement.Team Oriented Problem Solving) 15. . 4. Employee Empowerment Training Suggestion scheme Measurement and recognition Excellence teams 14. 3. Continuous Improvement Systematic measurement and focus on CONQ Excellence teams Cross-functional process management Attain. 1.
All people work in processes.Processes must be Managed and Improved: Processes must be managed and improved! This involves: Defining the process Measuring process performance (metrics) Reviewing process performance Identifying process shortcomings Analyzing process problems Making a process change Measuring the effects of the process change Communicating both ways between supervisor and user Key to Quality: The key to improving quality is to improve processes that define. produce and support our products. People Get processes "in control" Work with other employees and managers to identify process problems and eliminate them Managers and/or Supervisors Work on Processes Provide training and tool resources Measure and review process performance (metrics) Improve process performance with the help of those who use the process Planning a Change: .
.Process Inference .TQM PROBLEM SOLVING SEQUENCE: TQM Process Improvement and Problem Solving Sequence PLAN (PLAN A CHANGE) DO CHECK (IMPLEMENT THE CHANGE) (OBSERVE THE EFFECTS)ACTION (EMBED THE FIX INTO THE PROCESS FOR GOOD) DEFINE THE PROBLEM POSSIBLE CAUSES EVALUATE POSSIBLE CAUSES MAKE A CHANGE THE CHANGE PERMANENT ACTION TAKE TEST IDENTIFY 1. Recognize that what you are doing is a "PROCESS" 2. Identify the commodity being processed.
7. Determine what change would help Your knowledge of the process Scatter diagrams Control Charts . 4. Describe the "PROCESS" o Process Flow Analysis's o Flow charts o List of steps 5. Identify the "Big" problem o Brainstorming o Checklists o Pareto analysis 6.3. "BRAINSTORM" what is causing the problem.sampling 8. Define some measurable characteristics of value to the commodity. o Frequency distribution o Pareto charts o Control charts . Determine the relationship between cause and effect o Scatter diagrams o Regression analysis 9.sampling .sampling 10. Determine what past data shows. Determine what the process is doing now o Control charts .
an organization must concentrate on the eight key elements: 1. 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. attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. Ensure the fix is embedded in the process and that the resulting Continue to monitor the process to ensure: A. Determine what change worked (confirmation). 12. 11. Histograms Control charts . THE EIGHT ELEMENTS 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. The problem is fixed for good. return to step 5. To be successful implementing TQM. and B. Ethics .sampling ****To ensure continuous improvement.sampling Scatter diagrams process is used. The process is good enough o Control charts .Pareto analysis ****Then make the change.
each element offers something different to the TQM concept. 5. TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. It allows decision making at appropriate levels in the organization.2. 7.It includes: Ethics. integrity and trust. 3. Foundation TQM is built on a foundation of ethics. morals. Individual ethics include personal rights or wrongs. Teamwork and Leadership.It includes: Communication. Building Bricks . This is the key to unlocking the ultimate potential of TQM. These three elements move together. Integrity .Ethics is the discipline concerned with good and bad in any situation. and improvement initiatives. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Integrity and Trust. Trust fosters full participation of all members. the framework of TQM cannot be built. Ethics . 8. II.Integrity implies honesty. Roof . Integrity Trust Training Teamwork Leadership Recognition Communication This paper is meant to describe the eight elements comprising TQM. Without trust. The characteristic is what customers (internal or external) expect and deserve to receive. planning. I. Key Elements TQM has been coined to describe a philosophy that makes quality the driving force behind leadership. fairness and sincerity and allows involvement by everyone. IV. and adherence to the facts and sincerity. People see the opposite of integrity as duplicity.It includes: Recognition. fosters individual risk-taking for continuous improvement and . III. For this. 4. Trust . Foundation . fairness. 6. TQM will not work in an atmosphere of duplicity. however. It fosters openness. 1. 2. design. 3.It includes: Training. It is a two-faceted subject represented by organizational and individual ethics. The groups are: I. It allows empowerment that encourages pride ownership and it encourages commitment. values.Trust is a by-product of integrity and ethical conduct. Binding Mortar .
the ability to function within teams. Natural Work Teams (NWTs) . With the use of teams. Leadership in TQM requires the manager to provide an inspiring vision.These teams consist of small groups of skilled workers who share tasks and responsibilities. A supervisor must understand TQM. Teamwork . make strategic directions that are understood by all and to instill values that guide subordinates. business economics and technical skills. decision making. Supervisors are solely responsible for implementing TQM within their departments. people feel more comfortable bringing up problems that may occur. It appears everywhere in organization. There are mainly three types of teams that TQM organizations adopt: A. the supervisor must be committed in leading his employees. Leadership . employees are trained so that they can become effective employees for the company. ethics and integrity. trust builds the cooperative environment essential for TQM. and teaching their employees the philosophies of TQM. values and goals are transmitted down through out the organization to provide focus. Quality Improvement Teams or Excellence Teams (QITS) . selfmanaging teams and quality circles. clarity and direction. Problem Solving Teams (PSTs) .To become successful in business. bricks are placed to reach the roof of recognition. For TQM to be successful in the business. These teams generally work for one to two hours a week. job management performance analysis and improvement. believe in it and then demonstrate their belief and commitment through their daily practices of TQM.helps to ensure that measurements focus on improvement of process and are not used to contend people. problem solving.Training is very important for employees to be highly productive. Trust is essential to ensure customer satisfaction. Training . These teams use concepts such as employee involvement teams. During the creation and formation of TQM. The supervisor makes sure that strategies. In teams. . B. Teams also provide more permanent improvements in processes and operations.These are temporary teams with the purpose of dealing with specific problems that often re-occur. They generally last from one week to three months.These are temporary teams to solve certain problems and also to identify and overcome causes of problems. methods and performance measures for achieving those goals. 6. the business will receive quicker and better solutions to problems. philosophies. II. These teams are set up for period of three to twelve months. It includes: 4.It is possibly the most important element in TQM. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems. Training that employees require are interpersonal skills. C. and can get help from other workers to find a solution and put into place.Bricks Basing on the strong foundation of trust. teamwork is also a key element of TQM. A key point is that TQM has to be introduced and led by top management. 5. So.
Sideways communication .This type of communication is important because it breaks down barriers between departments. Downward communication . Employees strive to receive recognition for themselves and their teams. suppliers and customers. Starting from foundation to roof of the TQM house. quality and the amount of effort exhorted to the task at hand.It binds everything together. there can be huge changes in self-esteem. By this the supervisors are able to make the employees clear about TQM. Places . annual award banquets.Recognition can given at any time like in staff meeting. Time . Upward communication . For communication to be credible the message must be clear and receiver must interpret in the way the sender intended. Recognition . places and time such as. Recognition comes in its best form when it is immediately following an action that an employee has performed. Ways . As employees provide insight and constructive criticism. Supervisors must keep open airways where employees can send and receive information about the TQM process.Recognition is the last and final element in the entire system. Recognition comes in different ways. trophies etc. As people are recognized. Detecting and recognizing contributors is the most important job of a supervisor. C. IV.BindingMortar 7. where supervisors keep open ears and listen to others. It acts as a vital link between all elements of TQM. This is also similar to empowering communication. The success of TQM demands communication with and among all the organization members. This forms a level of trust between supervisors and employees. productivity.By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM.III. plaques. etc. supervisors must listen effectively to correct the situation that comes about through the use of TQM. B. Communication . on performance boards and also in front of top management.Roof 8. Presentations and discussions basically do it. everything is bound by strong mortar of communication. It also allows dealing with customers and suppliers in a more professional manner. Also by award banquets.Good performers can be recognized in front of departments. . Communication coupled with the sharing of correct information is vital. There are different ways of communication such as: A.It can be by way of personal letter from top management. It should be provided for both suggestions and achievements for teams as well as individuals.This is the dominant form of communication in an organization. Communication means a common understanding of ideas between the sender and the receiver.
the business entities cannot be successful TQM implementers. The TQMEX Model advocates an integrated approach in order to support the transition to systems management which is an ongoing process of continuous . It involves three spheres of changes in an organization -. Without these elements. This makes the approach to TQM more complete. enter new markets. which means understanding all the elements in the company and putting them to work together towards the common goal. technology and structure. excellence became an imperative. Last but not the least. In order to expand business. create an environment where there is no fear to share knowledge. To achieve excellence. train employees to provide a quality product.satisfying customers -. The proposed 4pillar model (Figure 3. internationally oriented market have been changing rapidly. and set realistic. competitive long-term objectives. companies must develop a corporate culture of treating people as their mo st important asset and provide a consistent level of high quality products and services in every market in which they operate. Hence. the creation of the global market. It is very clear from the above discussion that TQM without involving integrity.1) brings the customer's requirement into the system. marketable philosophy. Without it TQM would have no objective. The Four Pillars of TQM The role of top management in implementation of total quality is crucial and its input on people farreaching. should be understood as management of the system through systems thinking. There is also a need for a systematic approach so that each element of TQMEX can be bonded together smoothly. Such an environment has supported the wide acceptance of Total Quality Management (TQM) which emerged recently as a new. international orientation of management that sweeps national boundaries. Leadership and teamwork go hand in hand. therefore. The additional pillar -.is vital because it explicitly addresses customers requirements. challenging. The criteria for success in this global. TQM. make the competition stronger than ever. recognition should be given to people who contributed to the overall completed task. Training is the key by which the organization creates a TQM environment. Management's effort has been directed towards discovering what makes a company excellent. and shift towards customer focused strategies. lead by example. Oakland  originated the idea of a 3-cornerstone model.people. introduction of new technologies. and give credit where credit is due is the motto of a successful TQM organization THE TQM MODEL: At the century close.We can conclude that these eight elements are key in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the work place. in fact it would be incomplete. supervisors and employees create a burden on the whole TQM pro cess. Lack of communication between departments. ethics and trust would be a great remiss.
improvement that begins when the company commits itself to managing by quality. The model should be simple. The Model also reflects teachings of the contemporary quality gurus. They improve human resources capability to achieve the business objectives. 5-S is the key to total quality environment. the organization is already very close towards achieving TQM. TPM is a resultof applying 5-S to equipment based on a sound quality management system. Therefore. it is necessary to develop a conceptual model. BPR is concerned with re-defining and designing your business process in order to meet the needs of your customers effectively. If the above five steps have been implemented successfully. The Model illuminates the elements that form a base to the understanding of TQM philosophy and implementation of the process company-wide. ISO 9000 is to develop a quality management system based on the good practices in the previous three steps. Therefore TPM should be implemented in Step 5. although it is not simple to make a model simple! Companies starting to implement TQM should follow TQMEX step-by-step. and should follow as Step 2. Generally. Therefore. This is in line with the quality principle of Keep It Short and Simple (KISS). a model is a sequence of steps arranged logically to serve as a guideline for implementation of a process in order to achieve the ultimate goal. it should be the first step. QCCs are concerned with encouraging the employees to participate in continuous improvement and guide them through. The idea was to develop a universally applicable step-by-step guideline by including recognized practices in TQM: Japanese 5-S Practice (5-S) Business Process Re-engineering (BPR) Quality Control Circles (QCCs) ISO 9001/2 Quality Management System (ISO) Total Productive Maintenance (TPM) As Osada pointed out. TQMEX is a sequential model which is easy to remember and simple to implement. logical and yet comprehensive enough for TQM implementation. The Structure of TQMEX: The Logic of TQMEX: In order to have a systematic approach to TQM. this should be Step 3. It also has to sustain the changes in business environment of the new era. Companies which have already gone through some degree of improvement using some of the steps should review wha t . In fact ISO 9001 requires procedures for process control and inspection and testing equipment which are part of TPM. It is more concerned with the business objectives and systems.
the Japanese companies devised systems to reduce defects and produce good quality products.The most critical challenge facing U. you have to start early too. TQM IN USA: As regards quality. the Japanese sense of responsibility to one's superiors and subordinates made it easier to accept Deming's message that management's role was to provide the optimal conditions for the workers to do the best job. CHAPTER THREE THE ACCEPTABILITY OF TQM JAPANESE TQM MODEL: At first. The Japanese identify three major dimensions of TQM: Daily Management. Adoption of these techniques requires complete re-development in both methods and emphasis. Much of the quality movement in USA is based on tools and techniques developed by the japenese. We will study these in detail in the course. USA is at crossroads today. few but the Japanese took Deming seriously. While the American companies remained concerned about detecting and segregating defective parts from good ones. and Cross Function Management. The Japanese then extended Deming's teaching to many dimensions of management.This resulted in America losing its position of dominance not only in the American market but also in the world. Known for his legendary attacks on executives and compassion for the worker. They can be visualized with the following picture. In order to maximize your benefits from TQMEX. concept and techniques in terms of Q. Hoshin/Policy Management.Inspite of the fact that USA developed the techniques and concepts of SQC and TQC and the japenese imported these techniques.C. the further orientation and development in philoshophy. Here are TQM models from the Japanese Society of Quality and the Japan Standards Association that show how extensive their definition of TQM is.S quality movement is the development and implementation of quality focused corporate management systems that achieve the coherence. circles and company wide quality control took place in Japan more rapidly and successfully. integration and comprehensiveness of quality management in japan. The American companies are characterized by: .have not been done and do it as their next step of improvement.
He will look for solutions that are more specific to his needs thus creating opportunity of many niche market. 2. Marguardt divides the evolution of quality movement in USA in three periods: 1. and 3. Administrators for system of quality control. Advertising and selling quality consciousness-Emphasis on changing organizational culture and providing an environment that will enable people to activate and sustain in their own work and in products and services produced by the organistions with the focus on needs of customers. -Today customers avail ATM services 24 hrs -Book airline tickets & check-in over phone -Self-service at fast food restaurant.Emphasis on the cost of quality and managerial aspects of organizing the quality. Each organisation determines independently what it will produce and what quality policies it will adopt. Advocates for SQC. A high concentration of industry on relatively few companies. 3.1. 2. These features of autonomous organisations and professional management have a considerable impact on the conduct of quality function. .Emphasis on technical tools of control charts.He is going to be demanding & keen on having the best services in the shortest possible time & at the minimum cost . TQM in Service Industry TQM in Service Industry Introduction Today s customer has before him the possibility of a wider choice of products & Services than ever before . Stress on promoting share-holders. lot inspection and sampling schemes. Running the company by professional managers.
Growth of Service sector Service sector is growing rapidly due to -Change in environment . life style etc -Demand for new kind of services -Advent of new technologies -Fast development of information technology & computerisation -Lean manufacturing .-And many more What is different ? -Service is also a product of different kind . -Simultaneity ( promptness ) -Heterogeneity -Unique dimensions of some services (e. (contracting out most activities) Challenge of Service sector Delight customers -In a dynamic environment which is changing fast -In growing competitive market -With relatively shorter product life cycle -Requiring more customisation Service Quality Dimensions Quality of Services differs from manufactured products -Special characteristics including intangibility. -No time delay between the production & delivery of service -A defective product can be replaced but a defective service may create a permanent damage.g. Banking) .
quality must span all functions. therefore. TQM. imperative that the organisation knows what these needs and expectations are. communication of the quality message. The core of TQM is the customer-supplier interfaces. results in an organization doing the right things right. processes and systems in greater detail. and at each interface lie a number of processes.CHAPTER FOUR THE ESSENTIALS OF TQM Introduction TQM is the way of managing for the future. However. maintainability. What is quality? A frequently used definition of quality is Delighting the customer by fully meeting their needs and expectations . reliability. This section discusses each of these elements that. all people. the organisation must understand them. all having the essential themes of commitment. Other sections explain people. and is far wider in its application than just assuring product or service quality it is a way of managing people and business processes to ensure complete customer satisfaction at every stage. Quality starts with market research to establish the true requirements for the product or service and the true needs of the customers.cost effectiveness and price. for an organisation to be really effective. both externally and internally. culture and communication running through them. It is. first time. and recognition of the need to change the culture of the organisation to create total quality. internally and externally. combined with effective leadership. delivery. These may include performance. can make a total quality organisation. These are the foundations of TQM. processes and systems in the organisation. and measure its own ability to meet them. availability. and they are supported by the key management functions of people. having identified them. together. In addition. all departments and all activities and be a common language for . This core must be surrounded by commitment to quality. appearance.
in the same way that the Japanese achieve this with company wide quality control. and failure in one part of the system creates problems elsewhere. or can. every person in the quality chain must be trained to ask the following questions about every customer-supplier interface: Customers (internal and external) Who are my customers? What are their true needs and expectations? How do. suppliers and customer supplier interfaces. Customers and suppliers There exists in each department. actually to the external customer. a series of customers.improvement. or in the worst case. each office. The cooperation of everyone at every interface is necessary to achieve a total quality organization. The failure usually finds its way to the interface between the organization and its external customer. and so the situation is exacerbated. I find out what these are? How can I measure my ability to meet their needs and expectations? Do I have the capability to meet their needs and expectations? (If not. what must I do to improve this capability?) Do I continually meet their needs and expectations? . and they can be broken at any point by one person or one piece of equipment not meeting the requirements of the customer. To achieve quality throughout an organization. leading to yet more failure and problems. The ability to meet customers (external and internal) requirements is vital. Failure to meet the requirements in any part of a quality chain has a way of multiplying. These are the quality chains . internal or external. each home.
These may include: Leaders not giving clear direction Not understanding.(If not. each person must respect the needs and expectations of their suppliers. The ideal situation is an open partnership style relationship. some of the bad practices must be recognized and corrected. or ignoring competitive positioning Each department working only for itself . Poor practices To be able to become a total quality organization. what prevents this from happening when the capability exists?) How do I monitor changes in their needs and expectations? Suppliers (internal and external) Who are my internal suppliers? What are my true needs and expectations? How do I communicate my needs and expectations to my suppliers? Do my suppliers have the capability to measure and meet these needs and expectations? How do I inform them of changes in my needs and expectations? As well as being fully aware of customers needs and expectations. where both parties share and benefit.
Only then will the right attitudes spread throughout the organization. as well as demonstrating their commitment. effectiveness and flexibility of an organization for the benefit of all stakeholders. Whilst it must involve everyone. ensure they communicate the principles. supported by plans and facilities to implement it. reactive behaviour The It s not my problem attitude How many of these behaviours do you recognize in your organization? The essential components of TQM commitment & leadership TQM is an approach to improving the competitiveness. It ensures the leaders adopt a strategic overview of quality and focus on prevention not detection of problems. it must start at the top with the leaders of the organization. . organizing and understanding each activity. and middle managers must. plus take part in regular improvements of it and ensure it is understood at all levels of the organization. strategies and benefits to the people for whom they have responsibility. A fundamental requirement is a sound quality policy. Leaders must take responsibility for preparing. reviewing and monitoring the policy. to be successful.Trying to control people through systems Confusing quality with grade Accepting that a level of defects or errors is inevitable Firefighting. It is a way of planning. and of removing all the wasted effort and energy that is routinely spent in organizations. All senior managers must demonstrate their seriousness and commitment to quality.
The following is a list of points that leaders should consider. followed by a strategy. combined with a TQM approach. Adopt the philosophy of zero errors/defects to change the culture to right first time Train people to understand the customer/supplier relationships Do not buy products or services on price alone look at the total cost Recognise that improvement of the systems must be managed . with satisfied customers and good business results. values and objectives. These. which is translated into action plans down through the organization. they are a distillation of the various beliefs of some of the quality gurus: The organisation needs a long-term commitment to continuous improvement. The 5 requirements for effective leadership are: Developing and publishing corporate beliefs. motivating and supporting people and encouraging effective employee participation The task of implementing TQM can be daunting. often as a mission statement Personal involvement and acting as role models for a culture of total quality Developing clear and effective strategies and supporting plans for achieving the mission and objectives Reviewing and improving the management system Communicating. should result in a quality organization.Effective leadership starts with the development of a mission statement.
norms. Understanding the culture of an organisation. is an important part of the quality journey.Adopt modern methods of supervising and training eliminate fear Eliminate barriers between departments by managing the process improve communications and teamwork Eliminate goals without methods. dominant values. every time.g. and using that knowledge to successfully map the steps needed to accomplish a successful change. from one of acceptance of a certain level of errors or defects to one of right first time. needs two key elements: Commitment from the leaders Involvement of all of the organisation s people . barriers to pride of workmanship and fiction get facts by studying processes Constantly educate and retrain develop experts in the organisation Develop a systematic approach to manage the implementation of TQM Culture change The failure to address the culture of an organisation is frequently the reason for many management initiatives either having limited success or failing altogether. e. behaviours. rules and the climate . The culture in any organisation is formed by the beliefs. A culture change. standards based only on numbers.
which are groups of smaller processes. and each can be analysed by an examination of the inputs and outputs to determine the action necessary to improve quality.There is widespread recognition that major change initiatives will not be successful without a culture of good teamwork and cooperation at all levels in an organisation. methods and operations. a climate for improvement and a strategy that is implemented thoughtfully and effectively. However. These must be carried out well if an organisation is to achieve its mission and objectives. sustain and build . which is the transformation of a set of inputs. The section on People expands on these issues. into the desired outputs. The section on Processes discusses processes and how to improve them. people. each of which has one or several suppliers and customers. In every organisation there are some very large processes. The only point at which true responsibility for performance and quality can lie is with the People who actually do the job or carry out the process. team selection and development and models for successful teamwork. and equally importantly. called key or core business processes. The building blocks of TQM: processes. which satisfy the customers needs and expectations. In each area or function within an organisation there will be many processes taking place. and Implementation covers how to prioritise and select the right process for improvement. management systems and performance measurement Everything we do is a Process. which can include action. people will not engage in improvement activities without commitment and recognition from the organisation s leaders. An efficient and effective way to tackle process or quality improvement is through teamwork. but also. as discussed in the section on People. An appropriate documented Quality Management System will help an organisation not only achieve the objectives set out in its policy and strategy. covering roles within teams.
how to set one up and successfully implement it. and should be.1) Selecting the theme: A meeting of the senior management of the company was held. established at all levels in the organisation. it needs Performance Measures to monitor and control the journey. followed by a structured discussion to arrive at a consensus on the two most important themes -. Under the customer service theme. rapidly expanding company in the financial services sector with no previous experience with Total Quality Management (TQM). and therefore had few claims to process so far. Step 1. The company was young. An appropriate cross functional group was set up to tackle this problem. "Reducing the Turnaround Time from an Insurance Proposal to Policy" was selected as the most obvious and urgent problem. They can. and to ensure the desired level of performance is being achieved and sustained. The quality project began with a two-day introductory awareness program covering concepts. 1. Brainstorming produced a list of more than 20 problems.customer service and sales productivity.2) Problem = customer desire current status: .upon them. The program was conducted for the senior management team of the company. It is imperative that the leaders take responsibility for the adoption and documentation of an appropriate management system in their organisation if they are serious about the quality journey. CHAPTER FIVE THE EFFECTS OF TQM Improving Financial Services through TQM The work described in this case study was undertaken in a young. which used the Seven Steps of Problem Solving (similar to DMAIC). ideally being cascaded down and most effectively undertaken as team activities and this is discussed in the section on Performance. The proposal-to-policy process therefore impacted the greatest number of customers. The list was prioritized using the weighted average table. The demonstration project. was to show them how TQM concepts worked in practice before they committed resources for a company-wide program. The Systems section discusses the benefits of having such a system. Once the strategic direction for the organisation s quality journey has been set. Define the Problem 1. This program used interactive exercises and real life case studies to explain the concepts of TQM and to interest them in committing resources for a demonstration project. implementation strategies and imperatives of TQM. cases.
the rest of us bring data" the group was asked to collect data and establish reality. Customer desire: Average+3 Sigma turnaround = less than 6 days Current status: Non-medical policies (Average 19/Sigma 15) Average+3 sigma= 64 days Medical (Average 37/Sigma 27) Average+3 sigma= 118 days The Problem was therefore defined: Reduce Average+3 sigma of turnaround for: . "Is this the average time or maximum time that you expect?" they were asked. The concept of sigma was explained and was rapidly internalized. with each person thinking about the turnaround within their department. It averaged: Non-Medical Policies Medical Policies 17 days 35 days Invoking the slogan from the awareness program "In God we trust." they responded. Armed with a suitably designed check sheet they set about the task. It was clear therefore that the average must be less than six days. The key process stages were mapped: Several sales branches in different parts of the country sent proposals into the Central Processing Center.imagine they had just given a completed proposal form to a sales agent.Current status: What did the individual group members think the turnaround is currently? As each member began thinking questions came up. When would they expect the policy in hand? From the customer's point of view they realized that they did not differentiate between medical and nonmedical policies. "Maximum. After considerable debate it was agreed at first to consider turnaround between entry into the computer system at the Company Sales Branch and dispatch to the customer from the Central Processing Center (CPC). "What type of policies do we address?" Medical policies or non-medical? The latter are take longer because of the medical examination of the client required. Their perception averaged out six days for the required turnaround. For 99. individual group members were asked to think as customers -. Later the entire cycle could be included. "Between what stages do we consider turnaround?" Perceptions varied. Customer desire: What was the turnaround desired by the customer? Since a customer survey was not available. The importance of "variability" had struck home. The perception of the length of turnaround by different members of the team was recorded.7 percent delivery within the customer limit the metric was defined.
run two policies without waiting and record the time at each stage. These were:Input arrival patterns Waiting times in process . Therefore the initial target taken in the Mission Sheet (project charter) was to reduce the turnaround by 50 percent -.Non-value added activities. Generating Ideas . Process Mapping (Value Stream Mapping in Lean) was undertaken. The trial results amazed everyone: Policy No. Range of individual stage time 2 to 13 mins.Non-Medical Policies From 64 to 6 days Medical Policies From 118 to 6 days The performance requirement appeared daunting. To check this estimate it was decided to collect data -. Almost instantly the mindset changed from doubt to desire: "Why can't we process every proposal in this way?" Step 3.Too many handovers . 1 took 100 minutes and Policy No.Imbalanced processing line . Processing times Scheduling Transport times Deployment of manpower Typically it was found that waiting times constitute the bulk of processing turnaround times.Batching of work . 2 took 97 minutes. The change process had begun. etc. Analysis of the Problem In a session the factors causing large turnaround times from the principles of JIT were explained. The aggregate results are summarized below: Number of operations 84 Number of handovers 13 In-house processing time (estimated) 126 man-mins.to 32 and 59 days respectively. Step 2. Could this be true? Could the turnaround be 126 minutes for internal processing without waiting? The group started to question of the status quo.
Stage 1: Run five proposals flowing through the system and confirm results. In this case.8 minutes. There was jubilation in the team. Eliminate non-value added activities -. For all non-medical policies From 64 to 42 days or 34% 2. It was agreed that only in-house processing was covered at this stage and that the test would involve all policies at the CPC but only one branch as a model. 3. Reduce the stages and handovers -.'" The mindset was dramatically changed and line personnel were now keen to push the implementation. once proved.In the introductory program of TQM during the JIT session the advantages of flow versus batch processing had been dramatically demonstrated using a simple exercise. the line personnel were involved in a Quality Mindset Program so that they understood the reasons for change and the concepts behind them and are keen to experiment with new methods of working. It allows modification of ideas based upon practical experience and equally importantly ensures acceptance of the new methods gradually by the operating personnel. Testing the Idea Testing in stages is a critical stage. Balance the line to make the time taken at each stage equal 8 minutes as far as possible. The line was ready for a test run. Step 4. Agree processing to be done in batch of one proposal. and went for a meeting. This model.13 to 8. "'Madam. Using that background a balanced flow line was designed as follows: 1. The productivity had increased by 24 percent. Determine the station with the maximum time cycle which cannot be split up by reallocation -. 4. 5. 2.make personnel sit next to each other.and compute the average and sigma of the turnaround to measure the improvement. The head of the CPC summarized: "I gave five files for processing. could be replicated at other branches. Changing the mindset of the employees so they will accept and welcome change is critical to building a self-sustaining culture of improvement. The test results showed a significant reduction in turnaround: 1. Emerging from the meeting about 30 minutes later I was greeted by the dispatch clerk jubilantly reporting. For policies of the model branch From 64 to 27 days of 60% . the TQM files are ready for dispatch.transport -. Stage 2: It was agreed to run the new system for five days -. The test produced the following results: Average turnaround time: < 1 day In-house processing time: 76 mins.
mandate the change or change the mindset to accept the change. two weeks later it was still not implemented.the CPC and one sales branch -. was now happening at 99.The Mission Sheet goal of 50 percent reduction had been bettered for the combined model branch and CPC.a 60 percent reduction. Standardize Control/Document the Improvement Story Essentially the in-house processes in two centers of processing -. Sample x-bar and sigma-control charts for the CPC are shown below: A special "Grind It In" session was conducted for line personnel to ensure that the control chart was updated every day. the journey and the results obtained in the project so far and also simulate the process with a simple exercise in front of the department head. Check the Result The process was run for one month with regular checks. To make sure that the gains were held. Further analysis of the data revealed other measures which could reduce the turn around further. Overall reduction reached an amazing 75 percent. which had been pegged at 64 days. The departmental head had not attended the TQM awareness program and therefore did not understand why this change was required. Implementing the Ideas Regular operations with the new system was planned to commence. There were two options -. The results obtained were marginally better than the trials conducted in Step 5: Average 11 days Sigma 9 days Average+3 sigma 38 days Step 7. and any deterioration was dealt with by finding and killing the root causes of the problems. control charts were introduced in both locations. Step 6. .7 percent on-time delivery in 15 days. Customer reaction: Sales management and sales agents (internal customers) clearly noticed the difference.had been impacted so far. However. The corresponding all-India reduction was from 118 days to 71 days -. Turnaround.from 118 days to 37 days. For instance one sales manager reported that a customer had receiveda policy within a week of giving a proposal and was so amazed that he said. One of the personnel on the line in CPC had been released by his department for the five-day trial to sit on the line but was not released on a regular basis. This session was highly successful and led to the release of the person concerned on a regular basis. Since the latter option produces a robust implementation that will not break down under pressures it was agreed that the group would summarize TQM. Step 5. "If you give such service I will give you the next policy also!" Adoption of a similar process at the CPC and the model branch for medical policies has already reduced the average+3 sigma of turnaround time by 70 percent -.
Roll out process to branches to reduce turnaround from 71 to 37 days. Roll out process to branches to achieve 24 days throughout the country. If the current reality does not include important preconditions. and if it has been able to successfully change the way it operates when needed. Relevant preconditions have to do with the organization's history. 1. 4. If this condition prevails. 2. precipitating events leading to TQM. Medical policies: Goal to reduce turnaround from 71 days to about 24 days. If it has significant problems such as a very unstable funding base. 3. Working with the bank to improve the turnaround time of banking checks. A quality improvement story was compiled by the project Leader for training and motivating all employees. prioritizing and training sales branches to avoid the causes of rework. weak . Streamline the process of medical exam of the client from 37 to 24 days. Future Actions Non-medical policies: Goal to reduce turnaround from 42 days to about 15 days. 1. If an organization has been historically reactive and has no skill at improving its operating systems. Considering processing proposals while check clearance is in progress. CHAPTER SIX IMPLEMENTATION OF TQM Implementation Principles and Processes A preliminary step in TQM implementation is to assess the organization's current reality. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. there will be both employee skepticism and a lack of skilled change agents. its current needs. If an organization has a track record of effective responsiveness to the environment. An organization should be basically healthy before beginning TQM. Minimize rework by analyzing.The project objective of 50 percent in the first stage has been achieved. and the existing employee quality of working life. 2. TQM will be easier to implement. a comprehensive program of management and leadership development may be instituted. TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed.
After a crisis. announcing the change goals to the organization. Such a leader may then become a prime mover. or demands from consumers or other stakeholders for improved quality of service. Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized. However. TQM would not be appropriate. a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. This should be a responsibility of top management. assessing readiness. Choose consultants based on their prior relevant experience and their commitment to adapting the process to fit unique organizational needs. may be used to kick off the process. who takes charge in championing the new idea and showing others how it will help them get where they want to go. and TQM newsletters may be an effective ongoing communication tool to keep employees aware of activities and accomplishments. as described above). implementation of TQM. perhaps after receiving training in . a crisis or galvanizing event. creating a model of the desired state. individual "prime movers. designing mechanisms to communicate the change. usually at lower levels of the organization. the next step. and assigning responsibilities and resources. if it is not too disabling. mechanisms beyond existing processes will need to be developed. In the case of TQM. sometimes designed as input or dialog sessions. Management of resources for the change effort is important with TQM because outside consultants will almost always be required. strategic decisions. is also a responsibility of top management. designing transition management structures. such as through a force field analysis. This final step would include securing outside consultation and training and assigning someone within the organization to oversee the effort. developing strategies for building commitment. Developing commitment strategies was discussed above in the sections on resistance and on visionary leadership. employees (management and others) should be actively involved in TQM implementation.administrative systems. which occur when entrepreneurs move outside the normal ways of operating to solve a problem. Steps in Managing the Transition Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new system such as TQM: identifying tasks to be done. a certain level of stress is probably desirable to initiate TQM. Task identification would include a study of present conditions (assessing current reality. To communicate the change. or poor employee morale." and action vehicles. Departures from tradition are activities. lack of managerial skill. and assigning resources. In fact. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. These forces include departures from tradition. People need to feel a need for a change. Special all-staff meetings attended by executives. A plan to implement TQM may be such a strategic decision. can also help create a sense of urgency which can mobilize people to act. this may be a funding cut or threat. in this case. An organization wide steering committee to oversee the effort may be appropriate. Finally. A crisis. While consultants will be invaluable with initial training of staff and TQM system design. creating necessary management structures. In fact.
but more importantly with improving capabilities to produce better results in the future. of course. processes. There are three major mechanisms of prevention: 1. detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation). TQM is the foundation for activities. . The five major areas of focus for capability improvement are demand generation. Be clear on the organization's vision for the future and stay focused on it. but most of them are caused. technology and machine capabilities.) as possible. first assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy. Where mistakes recur. this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist. to detailed execution of work elements on the shop floor. (Stop in time). Preventing mistakes (defects) from occurring (Mistake . comprehensive.proofing or Poka-Yoke). stopping production until the process can be corrected. by faulty systems and processes. as a result of continuously improving capabilities. If they are not. Where mistakes can't be absolutely prevented. Remember that this will be a difficult. and improving service to clients and the community. technology. A collaborative relationship with consultants and clear role definitions and specification of activities must be established. people. A central principle of TQM is that mistakes may be made by people. The Concept of Continuous Improvement by TQM TQM is mainly concerned with continuous improvement in all work. and hold people accountable for results. It leads to continuously improving results. supply generation. operations and people capability. referring agencies. and repetition can be prevented by changing the process. etc. keep the process visible. This means that the root cause of such mistakes can be identified and eliminated. In summary.change management which they can then pass on to other employees. from high level strategic planning and decision-making. or at least permitted. It stems from the belief that mistakes can be avoided and defects can be prevented. funding sources. and long-term process. to prevent the production of more defects. Leaders will need to maintain their commitment. which include: Commitment by senior management and all employees Meeting customer requirements . provide necessary support. and. maximize employee involvement in design of the system. TQM can be a powerful technique for unleashing employee creativity and potential. Leadership styles and organizational culture must be congruent with TQM. reducing bureaucracy and costs. Use input from stakeholder (clients. 3. Always keep in mind that TQM should be purpose driven. 2. Continuous improvement must deal not only with improving results. in all aspects of work.
where TQM generally starts by sampling a random selection of the product. when the product is redesigned) with no loss of quality. or improved adhesives to ensure that parts remain glued. and operated at progressively more extreme vibration and temperatures until something fails. R&D. The error band is usually a tighter distribution than the "failure band". The statistical distributions of important measurements are tracked. the improvements might be to use measured-tension nutdrivers to ensure that screws don't come off. secondary measures of the production process are designed. It took people a while to develop tests to find emergent problems. Engineering. In that way. etc. it's very common for parts to be redesigned so that critical measurements either cease to exist. It is important to record not just the measurement ranges. by all personnel. Purchasing. Another popular test is called "shake and bake". or become much wider. but what failures caused them to be chosen. If fasteners fail. The causes of any failures are isolated.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 This shows that TQM must be practiced in all activities. Marketing. in Manufacturing. The failure is then isolated and engineers design an improvement. TQM in manufacturing Quality assurance through statistical methods is a key component in a manufacturing organization. A commonly-discovered failure is for the product to disintegrate. and then the causes of the failure are corrected. . HR. Sales. cheaper fixes can be substituted later (say. the process is fixed. so that the production process is fixed before failing parts can be produced. One popular test is a "life test" in which the sample product is operated until a part fails. The sample can then be tested for things that matter most to the end users. After TQM has been in use. in which the product is mounted on a vibrator in an environmental oven. When parts' measures drift into a defined "error band".
TQM. One disadvantage might be that a stepper motor can hum or whine. Dubois (2002) argued that the use of the term TQM in management discourse created a positive utility regardless of what managers meant by it (which showed a large variation). . externally focused information. without explicit usage of their names. just another management fad? Abrahamson (1996) argued that fashionable management discourse such as Quality Circles tends to follow a lifecycle in the form of a bell curve. Total Quality Management is an approach to the art of management that originated in Japanese industry in the 1950's and has become steadily more popular in the West since the early 1980's. its customers with products and services that satisfy their needs. The stepper motor is more expensive than a DC motor. Sim and Killough (1998) show that incentive pay enhanced the positive effects of TQM on customer and quality performance.If a gearbox wears out first. attitude and organization of a company that aims to provide. can even work in a synergistic way. Dubois (2002) showed that the core ideas behind the two management fads Reengineering and TQM. which represents an immensely more desirable product. with things being done right first time. a "TQMed" product is cheaper to produce because of efficiency/performance improvements and because there's no need to repair dead-on-arrival products. The electronics are radically different. management concepts such as TQM leave their traces. The improvement is that a stepper motor has no brushes or gears to wear out. but equally expensive. while rapidly losing popularity in terms of citations after these years. which peaked between 1992 and 1996. Ponzi and Koenig (2002) showed that the same can be said about TQM. and usually needs noise-isolating mounts. Ittner and Larcker (1995) demonstrated that product focused TQM was linked to timely problem solving information and flexible revisions to reward systems. flexible. and non-financial performance measurement. but cheaper than a DC motor combined with a gearbox. close interactions between advanced technologies and strategy. while in the late 1990s the usage of the term TQM in implementation of reforms lost the positive utility attached to the mere fact of using the term and sometimes associations with TQM became even negative. and continue to provide. Total Quality is a description of the culture. The culture requires quality in all aspects of the company's operations. and defects and waste eradicated from operations. TQM and contingency-based research TQM has not been independent of its environment. as their core ideas can be very valuable. Chendall (2003) summarizes the findings from contingency-based research concerning management control systems and TQM by noting that TQM is associated with broadly based MCSs including timely. Nevertheless. For example. Often. In the context of management accounting systems (MCSs). so it lasts ten or more times as long. a typical engineering design improvement might be to substitute a brushless stepper motor for a DC motor with a gearbox.
Some useful messages from results of TQM implementations: if you want to be a first-rate company. and people involved with customers it's much easier to introduce EDM/PDM in a company with a TQM culture than in one without TQM. As a result many people are sceptical about TQM. operating as a customer to some functions and as a supplier to others. comes first. fast response. actions based on facts. In the TQM context. However. productivity. continuous improvement. competitiveness or financial return. people involved in new product development. The customer. not internal activities and constraints. don't focus on the second-rate companies who can't handle TQM. Customer-driven quality TQM has a customer-first orientation. The TQM company is sensitive to customer requirements and responds rapidly to them. Customer satisfaction is seen as the company's highest priority. and merely meeting specifications or reducing customer complaints. The concept of requirements is expanded to take in not only product and service attributes that meet basic requirements. For example. Surveys by consulting firms have found that only 20-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality. when you look at successful companies you find a much higher percentage of successful TQM implementation. top management leadership and commitment. look at the world-class companies that have adopted it the most effective way to spend TQM introduction funds is by training top management. People in companies that have implemented TQM are more likely to have the basic understanding necessary for implementing EDM/PDM. employee participation. The Engineering Department is a supplier to downstream functions such as . Each part of the company is involved in Total Quality. The company believes it will only be successful if customers are satisfied. and a TQM culture. `being sensitive to customer requirements' goes beyond defect and error reduction. they are more likely to view EDM/PDM as an information and workflow management system supporting the entire product life cycle then as a departmental solution for the management of CAD data Important aspects of TQM include customer-driven quality. but also those that enhance and differentiate them for competitive advantage.Many companies have difficulties in implementing TQM.
This is a key point. and the way customer relationships are managed. methods and performance measures for achieving those goals. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company. directly or indirectly. to customer requirements and satisfaction. and to an increase in customer satisfaction. they are generally discovered and resolved before they can get to the next internalcustomer. In turn this will lead to an improvement in product quality. Fastresponse . Once it is recognized that customer satisfaction can only be obtained by providing a high-quality product. Attempts to implement TQM often fail because top management doesn't lead and get committed . It has to be introduced and led by top management. This will lead to an improvement in process quality. and to management and employee remuneration. and an emphasis on quality at the design stage. When problems do occur within the product development process. As well as recognizing the link between product quality and customer satisfaction. there is a focus on continuous improvement of the company's processes.instead it delegates and pays lip service. TQM also recognizes that product quality is the result of process quality. TQM leadership from top management TQM is a way of life for a company.Manufacturing and Field Service. The development and use of performance indicators is linked. The customer-driven approach helps to prevent errors and achieve defect-free production. Improvement cycles are encouraged for all the company's activities such as product development. continuous improvement of the quality of the product is seen as the only way to maintain a high level of customer satisfaction. Elimination of waste is a major component of the continuous improvement approach. and has to treat these internal customers with the same sensitivity and responsiveness as it would external customers. There is also a strong emphasis on prevention rather than detection. and in creating and deploying well defined systems. These systems and methods guide all quality activities and encourage participation by all employees. use of EDM/PDM. As a result. This implies that all activities include measurement and monitoring of cycle time and responsiveness as a basis for seeking opportunities for improvement. Continuous improvement Continuous improvement of all operations and activities is at the heart of TQM.
can't take place. and innovate. and comparison of performance with competitors. On-going education and training of all employees supports the drive for quality. Such participation is reinforced by reward and recognition systems which emphasize the achievement of quality objectives. The statistical approach to process management in both engineering and manufacturing recognizes that most problems are system-related. act creatively. then the analysis. The TQM approach is based on the use of objective data. errors can't be identified. Efficiencies are realized from the elimination of non-value-adding effort such as re-design. As people behave the way they are measured and remunerated. whether it be of shop floor data. Actions based on facts The statistical analysis of engineering and manufacturing facts is an important part of TQM. the company has to respond rapidly to customer needs. communicate more effectively. Employees are encouraged to take more responsibility. Employees have to be made to feel that they are responsible for customer satisfaction.To achieve customer satisfaction. An open. strategies. cooperative culture has to be created by management. Simplicity is gained through concurrent product and process development. or engineering test results. In practice. This implies short product and service introduction cycles. Facts and analysis provide the basis for planning. and plans. They are not going to feel this if they are excluded from the development of visions. The result is a dramatic improvement in the elapsed time from product concept to first shipment. TQM links remuneration to customer satisfaction metrics. Usually these people are not managers but workers in the process. These can be achieved with customer-driven and process-oriented product development because the resulting simplicity and efficiency greatly reduce the time involved. data is collected and put in the hands of the people who are in the best position to analyze it and then take the appropriate action to reduce costs and prevent non-conformance. It's . and so errors can't be corrected. A TQM culture It's not easy to introduce TQM. and provides a rational rather than an emotional basis for decision making. review and performance tracking. If the right information is not available. Employee participation A successful TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. and are not caused by particular employees. improvement of operations.
changes. Management's focus is on controlling the overall process. statistics. analyze and assess qualitative and quantitative data that is relevant to their business. Awards for Quality achievement The Deming Prize has been awarded annually since 1951 by the Japanese Union of Scientists and Engineers in recognition of outstanding achievement in quality strategy.saying one thing and doing the opposite. management and execution. Short-term results drive behavior so scrap. Motorola (1988). Milliken (1989). efficiency. and fire-fighting is necessary and rewarded. and interact with their internal customers to deliver the required results. standardization and overall . waste. Teams are process-oriented. IBM (1990). Early winners of the Baldrige Award include AT&T (1992). Texas Instruments (1992) and Xerox (1989). Management focuses on supervising individuals. Product development in a TQM environment is customer-driven and focused on quality. work-arounds. and rework are normal practice. and rewarding teamwork. ideas. cause and effect concerns and other issues relevant to their organizations. Without a TQM approach. Each of which can be examined and used to enhance the effectiveness. Since 1988 a similar award (the Malcolm Baldrige National Quality Award) has been awarded in the US. CHAPTER SEVEN TQM TOOLS Total Quality Management (TQM) Tools Total quality management (TQM) tools help organizations to identify. Product development in a TQM environment Product development in a TQM environment is very different to product development in a non-TQM environment. product development is usually carried on in a conflictual atmosphere where each department acts independently. They are unlikely to behave in a responsible way if they see management behaving irresponsibly . These tools can identify procedures.important they participate in these activities.
charts and graphs. in accordance with ISO 9000 standards (SQ. manuals and standards are TQM tools as well.quality of procedures. as they give direction and best practice guidelines to you and/or your staff. check lists. (ReVelle. diagrams and other analysis tools. 2004). such as brainstorming. According to Quality America. 2003) the number of TQM tools is close to 100 and come in various forms. products or work environment. focus groups. Inc. TQM tools illustrate and aid in the assimilation of complicated information such as: identification of your target audience positive and negative forces affecting business assessment of customer needs competition analysis market analysis brainstorming ideas productivity changes various statistics staff duties and work flow analysis statement of purpose . In a different vein.
or questionnaire results. Pie Charts and Bar Graphs Used to identify and compare data units as they relate to one issue or the whole. Simply using one tool may inhibit your understanding of the data provided. survey. Each is used for. extent of fonds. specific information in a specific manner. . and identifies. such as budgets. Effective when comparing statistical. though essentially TQM tools can be used in any situation. or may close you off to further possibilities. TQM Tools The following are some of the most common TQM tools in use today. for any number of reasons. It should be noted that tools should be used in conjunction with other tools to understand the full scope of the issue being analyzed or illustrated. and can be extremely effective if used properly.financial analysis model creation business structure logistics analysis The list goes on. Histograms To illustrate and examine various data element in order to make decisions regarding them. vault space available. etc.
For example. shifts and patterns. identifying the driving and restraining forces of catering predominantly to genealogists.Run Chart Follows a process over a specific period of time. to track high and low points in its run. in order to measure which have priority. most commonly purchased preservation aid. such as accrual rates. Pareto Charts / Analysis (designed by Vilfredo Pareto) Rates issues according to importance and frequency by prioritizing specific problems or causes in a manner that facilitates problem solving. . such as most frequent complaint. Identify groupings of qualitative data. Can be scheduled over select periods of time to track changes. and ultimately identify trends. as a before and after analysis of a process change. Force Field Analysis To identify driving and restraining forces occurring in a chosen process in order to understand why that particular process functions as it does. etc. They can also be created in retrospect.
May be confusing if too many inputs and outputs are identified. Ishikawa or Fishbone Diagrams (designed by Kauro Ishikawa) Illustrates multiple levels of potential causes (inputs). in order to function at a higher level of efficiency. which can be created using anything from enabling software to post-it notes organized on a wall. or driving forces that need to be improved. Focus Groups Useful for marketing or advertising organizations to test products on the general public. An affinity diagram. Tree Diagram . of problems or issues that may arise in the course of business. Consist of various people from the general public who use and discuss your product. Brainstorming and Affinity Diagrams Teams using creative thinking to identify various aspects surrounding an issue. is a tool to organize brainstorming ideas. An alternative would be a tree diagram. providing impartial feedback to help you determine whether your product needs improvement or if it should be introduced onto the market. which is much easier to follow. and ultimate effects (outputs).To identify restraining forces that need to be eradicated. Cause and Effect.
business structure. process. To identify inputs and outputs of a project. whether of personnel. Identify areas where workflow may be blocked. a project.To identify the various tasks involved in. Identify where steps need to be added or removed to improve efficiency and create standardized workflow. between two variables . and where workflow is fluid. Flowcharts and Modelling Diagrams Assist in the definition and analysis of each step in a process by illustrating it in a clear and comprehensive manner. To identify hierarchies. as well as bonds and correlations. or priorities. or diverted. etc. Scatter Diagram To illustrate and validate hunches To discover cause and effect relationships. and the full scope of. procedure.
if . attitudes. Management must keep its fingers on the pulse of TQM efforts as bringing a change in culture. CONCLUSION This project concludes that Total Quality Management (TQM) has many benefits but implementing TQM is not a bed of roses. 2003) or by simply mapping them out on paper. to be expected and are universal in nature. and then acted upon if anything in the process needs to be altered. marketing reports. and for various other data analysis needs. events. it is then tested. etc. enhancing work flow such as mapping acquisition procedures. therefore. This is a cyclical style to be iterated until the process is perfected. They can also be easily integrated into team meetings. TQM can lead to a drastic change in the productivity of an org. PDCA The Plan-Do-Check-Act style of management where each project or procedure is planned according to needs and outcome. issues. It cannot be left to its own fate after the launch and requires constant nurturing and follow-up by the management. All of these TQM tools can be easily created and examined by using various types of computer software (Pollock. and beliefs in a sensitive and delicate matter. organizational newsletters. ensuring client satisfaction by surveying their needs and analyzing them accordingly. so as to understand their importance in the overall organizational view. However patience and loyal efforts are required to solve these problems. examined for efficiency and effectiveness. Problems in implementation are. and creating an overall high level of quality in all areas of your organization.To chart the positive and negative direction of relationships Relations Diagram To understand the relationships between various factors. Proper integration and use of these tools will ultimately assist in processing data such as identifying collecting policies.
improved test quality. Workload Management Business need : Improve the quality and efficiency of software testing processes Solution : An automated provisioning process that standardizes release management. increased platform coverage. The literature is abundant with theories and applications. Professional Services Solution : IT Optimization. IBM Tivoli Development Labs.implemented properly. reduces manual operations and optimizes resource utilization Benefits : 94 percent reduction in attended time to provision software. . Company : IBM Corporation Deployment Country : New York USA Industry : Computer Services." . CASE STUDY IBM Tivoli Development Labs to reap more than $2 million savings with release management initiative. better utilization of valuable skills "By employing IBM IT Service Management software. $2 million per year expected savings following roll out to more labs. we ve been able to align our testing processes with business goals and significantly improve operational efficiency. On Demand Workplace. Since the benefits of TQM are many therefore it doesn t pervade only to all the sectors of the business but also to the society. On Demand Business.Phil Buckellew. Program Director. In recent years. TQM has been the most focused area of research as compared to other disciplines both in the industrial and academic world.
Texas. And because this process was manual. Tivoli Development Labs develops enterprise-class software that supports numerous heterogeneous operating system platforms. Consider. Each time operating system and middleware software were installed. Why Become an On Demand Business? Streamlining the building and repurposing of test systems helps lower costs. the IBM team responsible for testing Tivoli software prior to its release. the organization launched an initiative to improve the quality and efficiency of its software release management process.5 hours. Tivoli® Development Labs. We have to t st e every software product in a multiplicity of environments to mitigate the risk of problems for our customers. With more than 5. for example. the quality and consistency of systems could vary depending on how closely each tester followed the installation instructions. program director. for example. Tivoli Development Labs develops enterprise-class software that supports numerous heterogeneous operating system platforms. inserting CDs and answering installation questions. Each product undergoes extensive. the IBM team responsible for testing Tivoli software prior to its release. optimizing resource utilization was difficult given the time and effort required to set up a test environment.5 to 2. And given the tedious nature of this process.Overview : Automating information technology and business processes is helping organizations worldwide realize enormous savings. However.500 heterogeneous servers spread across the lab in Austin. This increased the risk that configuration variations might contribute to problems in the environment. improve quality and reduce time to market for new products. Consider. there are times when some teams are not using servers and other teams are scrambling to meet deadlines and could be aided by more resources. mandatory testing across the supported platforms. from bare metal to full installation. Tivoli® Development Labs. In 2004. Of greatest concern was the time and skill required to build each test environment. staff often didn t have the time to remove all software from each server every time a new test was required. This meant that specialized domain experts were often reduced to menial tasks to ensure that systems were installed and configured properly. Manual processes also made it necessary for each tester to be familiar with the particular operating system being installed. Automating information technology and business processes is helping organizations worldwide realize enormous savings. mandatory testing across the supported platforms. a tester often had to sit at a workstation or server. explains Phil Buckellew. Each product undergoes extensive. IBM Tivoli Development Labs. . A typical operating system deployment required between 1.
This includes tasks for allocating and removing servers from the test environment. Consistent. Tivoli Provisioning Manager helped us control who had access to which servers. an IBM IT Operational Management Product that is an integral part of IBM IT Service Management. scalability and security. To achieve this goal. cost-effective software deployment Using Tivoli Provisioning Manager software. Automating provisioning processes using best practices To help the business meet increasingly aggressive software delivery schedules. installing and uninstalling software and patches. This integration enables the organization to effectively and efficiently install the vast number of operating system environments each software product must be tested on. adds Buckellew. configuring servers. This would help testers ensure consistency in the test environment and enable them to spend more time testing the software to improve product quality. Tivoli Provisioning Manager software provided the dynamic workflows the team required to automatically drive provisioning operations based on best practices and procedures. chosen because it offers a cost-effective platform with proven flexibility. Tivoli Provisioning Manager software is installed on the IBM System x platform running Red Hat Linux. automate routine and manual tasks and more efficiently use its resources. says Buckellew. We needed to find a way to shrink the timeframe for testing so that our product groups could go to market faster with high-quality software. the organization implemented IBM Tivoli Provisioning Manager software. We didn t want test teams provisioning servers that were in use by other teams. Tivoli Development Labs had to standardize release management processes. as well as software development firms that may not know what they ll need to install next. and performing bare-metal builds. Due to the software s flexibility. Additionally. Tivoli Provisioning Manager software provided the security-rich features the organization needed to ensure that changes to servers were made by only authorized users. Tivoli Development Labs has automated more than 800 tasks that were once performed manually across 415 systems.Manually configuring test environments resulted in testing delays and an inefficient use of both our staff and our system resources. Through the use of Automation Packages. such as incorrectly setting a registry value or forgetting to remove an old file that may cause . lab staff was able to integrate Tivoli Provisioning Manager software with several homegrown test environment tools. The openness of Tivoli Provisioning Manager makes it ideal for companies that have a finite list of technologies in their environments. Doing so has helped the team minimize human errors. says Buckellew.
We can better utilize our resources and cost-effectively deliver high-quality solutions to our customers as a result Key Components Software IBM Tivoli Provisioning Manager Server IBM System x running Red Hat Linux® . and increase the accuracy of the testing environment. This. Tasks that once required several hours to perform under constant supervision can now be completed in just five minutes.a software conflict. says Buckellew. the organization estimates that the savings associated with maintaining the test infrastructure will reach more than $2 million a year as it expands use of the solution to more labs. And because the solution enables the organization to automate the set up of new test environments during non business hours. As a result. The Tivoli Development Labs team reports that Phase 1 of the project resulted in a 94 percent reduction in attended time to provision software. we ve been able to easily implement best practices for software provisioning. testers have more time to focus on product innovation and code quality. By employing IBM IT Service Management software. says Buckellew.200 person-hours saved over the first seven months of the project. in turn. unattended installs allow our existing test teams to complete more tests in less time. is helping us better align our testing processes with business goals and significantly improve operational efficiency. Faster. And by freeing up resources from mundane tasks. Savings to reach several million dollars The benefits realized through automation of provisioning testing processes and use of Tivoli Provisioning Manager software have been enormous. lab staff can rapidly identify the source of code defects and retest with confidence. Ultimately. with more than 1. lab staff spend their time testing each software product more quickly and more often for greater test coverage.
There are three main ways in which a business can create quality: Market research involves a business in finding out what its customers want and expect. The research should reveal what the customer' view of quality is and whether they are getting it. This British Standard became the basis for the International Standard ISO/IEC17799. A quality product or service is one that meets customer requirements. For example. Why is quality important? . storing and handling data. enables better utilization of staff skills Quality through standards What is quality? Quality is defined by the customer. Not all customers have the same requirements so two contrasting products may both be seen as quality products by their users. Quality can therefore be defined as being fit for the customer's purpose. IBM developed this standard in 1995 to establish best practice for capturing. it delivers the confidence of customers in a business through BS 7799.On Demand Business Benefits Automating manual processes improves operational efficiency. one house-owner may be happy with a standard light bulb . This is the standard for a company's management of information security. Working to best practice standards is another way an organization can create quality.this would be their view of quality. rather than preparing environments. It can be carried out with a small group of customers. Today companies worldwide are seeking certification for their security management systems. Obtaining lots of information from a small panel of customers is called qualitative research. driving expected savings of more than $2 million a year Leveraging best practices drives greater consistency to help minimize human errors and speed the execution and accuracy of the testing process Improving the reliability of the testing environment helps testers identify the source of code defects more quickly and retest with confidence Enabling testers to focus on testing. For example. Another customer may want an energy efficient light bulb with a longer life expectancy . IBM works with industry specialists to create these standards. This is called quantitative research.they would see this as a quality product. Market research can also be carried out with large numbers of customers through questionnaires. asking them to provide detailed information about products and services.
Businesses that do not focus on quality will quickly find that there are costs to be paid. In the same way. The reputation of a business will quickly deteriorate as a result of poor quality work. there is greater competition from abroad. Today. BS 5750 in 1979. Examples of these costs include waste due to products being badly made and therefore not being able to sell them. These rights relate to products. European and International Standards. Standards are continually changing so it is important for businesses to keep up. your school will want to purchase gym and science lab equipment that meets the specifications of the safety standards. Today. because: Standards protect consumers' fundamental right to safety. services. processes and materials. Businesses therefore benefit from working with IBM to meet standards.for example. providing an opportunity for everyone to share knowledge and make their voice heard. When you buy a piece of electrical equipment.people like you and me. record music to them and sell them on as a finished product. Obvious information that you will be looking for include: Is it safe? Does it do what I want? Does it meet the required standards? As a customer you will have a lot more confidence in products you know have been tested and meet British. started out originally as a British Standard. For example. Satisfied customers are loyal to those suppliers they feel best understand their requirements. It was developed as an international standard and became known as ISO 9001 in 1987. There are two main types of customers for a business: end customers . the latest edition (2000) has been adopted by more than 400. It is very important for UK businesses to be associated with quality. looking to buy an iPod or plasma screen television organizational customers . Implementing a quality system internal . Standardization relies on all sections of society being involved in standards. As a result they will make repeat purchases and will recommend a business to their friends. the right to be informed and the right to choose.The most successful organizations are those that give customers what they want.000organizations across the globe. you will want to know a lot of information about its specification. a company recording audio CDs would buy in blank CDs. Standardization promotes effective research and development. ISO 9001 which is outlined in Section 4. and makes products easier to use.
Implementing a quality system external . who will assess the effectiveness of the QMS.a commitment to quality by the leaders of the organization involvement of people . These include: customer focus leadership . ISO 9001 sets out eight quality management principles. 6. Typically a Quality Manager will be responsible for the initiative. 3. A quality system therefore consists of parts (such as policies and processes) designed to ensure quality. 2.A system is a group of interrelated parts that make up a whole. develop and implement QMS. 4. Involve top management (heavily) in developing a quality management plan. needs to show that it can consistently provide products that: a) meet customer requirements b) meet any legal requirements. ii. The Quality Manager can be trained in ways of implementing the standard. it informs an assessor. They read through the literature and discuss any issues with IBM. Use supporting literature and software tools to help understand. If it meets the standard a certificate will be awarded. The standard specifies requirements for a QMS where an organization: i. In practical terms. organizations wishing to apply QMS take the following steps: 1. When the organization feels confident it is meeting the standard. Read and understand the standard. This is subject to regular reviews.everyone in the organization having a part to play making sure that those processes which create quality are identified continual improvement of the system. The QMS is then created and put into practice. This includes continually improving the system. 5. aims to improve customer satisfaction as a result of applying the system. A variety of organizations work with IBM to create standards for QMS.
This is the case whatever the size of the business or the sector they are operating in. it now makes sense to see the process as a shared one in which everyone relies on each other. and help British manufacturers to gain a competitive edge both in the UK and internationally. IBM was the world's first national standards making body. It works with the British government. for example. whilst a number of parts may then be transported and delivered to a final assembly plant in Wales. These separate components will then be assembled into a sub-assembly i. Some of the components may come from India. others from China. External systems are those that involve people outside the organization . part of the finished television. suppliers. Governments benefit because such measures contribute to greater productivity and economic growth. This sub-assembly may take place in India. Achieving certification to a standard might add reassurance for its customers and enables a business to boost its sales performance. These guarantee fitness for purpose. many businesses have long supply chains in which they source materials. so the implementation of standards helps sales. Standards can provide the necessary bridge of confidence and understanding that builds mutual trust. Establishing clear standards creates order in an increasingly complex world. in addition. This is known as interdependence Conclusion of Case Study In world trade.where 'them' are the suppliers. Today. helping trade to thrive. IBM assists British businesses in all markets to grow and to concentrate on meeting customers' requirements. manufacturers and other stakeholders to create quality standards. Today it is the most prestigious international standards institution. Instead of a company having a 'them' and 'us' attitude . Take. or Eastern European countries. for buyers and sellers to work together there must be trust. . Standards meet changing market needs and are customer driven. parts and finished goods from across the globe.Internal systems are ones that are built inside an organization. leisure and home environments. This has led to a change in attitude. modern businesses need to build external systems.g. Businesses benefit from standards because they establish ground rules that help to guarantee quality. a modern plasma screen television. and safer work.e. However. Consumers benefit because their safety and their satisfaction are both greatly enhanced.e. Sales are the lifeblood of any business.
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