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Total Quality Management

Total Quality Management

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Every nation has its own independent historical and cultural background. The quality scenario, 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 operating environment though the primary focus remains the same, that is, Total Customer Satisfaction .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 understanding 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 isis being done in the following points.

TQM has been accepted by both service and manufacturing organizations, globally TQM redefines the quality with emphasis on top management commitment and customer satisfaction

as a systematic management approach to meet the competitive challenges.

The benefits of TQM are numerous and are increasingly realized by organizations.


TQM provides a linkage between productivity and quality.



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.”

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.

ORIGINS 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."[1] 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.


Total Quality Management (TQM) is one of quality-oriented approaches that many organizations 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 emphasis 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 Modeling 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 between TQM, product quality performance, and business performance. However, the results reveal that top management commitment, supplier relations and training in particular appear to be of primary importance for TQM practices.

3. as revealed from above definition are as follows: 1. Responsibility for establishments and improvement of systems lies with the management of an organization. . TQM is a strategy for continuously improving performance at all levels and in all areas of responsibility.CHARACTERISTICS OF TQM The characteristics of TQM. 4. TQM is customer oriented. 2. 5. TQM requires a long term commitment for continuous improvement of all processes. The success of TQM demands the leadership of top management and continuous involvement.

It is a well accepted fact that the negative attitudes of employees and non. is not restricted to the product or service areas but reflects in other spheres as well. it tries to abstract the satisfaction perceptions of the market and thus helps the organization to identify and meet the requirements of the market in a better way. The traditional approach of quality control focuses on the technical details of a product so as to satisfy the customer. . This s e r v e s t o s a t i s f y the h i g h e r h u m a n n e e d s o f recognition and self-development and enhances employee’s interest in the job.participative culture of the organization pose the greatest hurdle to organization’s success. TQM facilitates to aspire for a top quality performer in every sphere of activity. The employee’s performance. As TQM focuses on the concept of university. 1. 2. the customer longs for different satisfaction perspectives which are generally overlooked in the traditional approach. However. TQM helps to focus clearly on the needs of the market. The needs change from person to person and also from place to place. on bringing about attitudinal and cultural change through promotion of participative work culture and effective team-work. growth and prosperity. TQM emphasis.POTENTIAL BENEFITS OF TQM The advantages of adopting TQM system compared to conventional quality system are numerous and are outlined below. thus.

adopting SQC and SPC techniques and developing and using a system of evaluation . 4. A continuous effort to identify the problems and resolve them helps to reduce the waste. goals and objectives. 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. the organization can channelize their efforts to achieve the desired and objectivated quality performance. It channelises the procedures necessary to achieve quality performance. 5.3.productive activities and waste.productive activity. 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. cost-effectiveness and safety. It requires a systematic and a long-term planning and strategic approach. Quality in its true sense can not be achieved instantly. The organizations always aim at improving productivity as it leads to reduction in cost resulting in increase in profitability. It gears organizations to fully understand the competition and develop an effective combating strategy. By focusing on defining the quality policies. It helps examine critically and continuously all processes to remove non. For this cause it is essential for the organizations to understand the competition and develop . The culture of well being thus improves housekeeping. and communicating these properly to one and all in the organization.

poor quality. which includes enrichment of the quality of the work life and many more are not quantifiable. it gives an edge to the organizations of variable nature to meet the competition. . departments and different levels of management thereby providing an effective vehicle of communication and interaction. However. This can be assessed by a wellplanned research project or by carrying out an opinion survey periodically. As TQM helps to understand the pulse of customer and thus the market. are many and multifaceted. Many of these can be measured in quantitative terms. At the same time. 7. the intangible benefit. it has t o be established whether they do occur or not in order to prove or disapprove the efficacy of the concept. 6. a nd l ow productivity. It helps to develop good procedures for communication and acknowledging good work. therefore. The benefits derived by the organizations. which r esul t i n m isun de rsta nd in g. duplication of efforts. Improper procedures and inadequate communication are yet another bane of many organizations. conf usion. TQM emphasizes on a continuous and periodic review so as to make the required changes. It helps to review the process needed to develop the strategy of never ending improvement. Quality improvement efforts cannot be restricted to any time period. They need to be continuous to meet the dynamic challenges. and low morale and so on.and adopt suitable strategies to meet the challenges. TQM brings together members of various rel at ed sections.

The following information is provided to give an understanding of the key elements of this process. Phillips Semiconductor. . TOTAL QUALITY MANAGEMENT (TQM) : Total = Quality involves everyone and all activities in the company. CONCEPTS AND PHILOSOPHIES OF TQM INTRODUCTION: Total Quality Management (TQM). SGL Carbon.The tangible and intangible benefits of TQM are variable in nature. a buzzword phrase of the 1980's. TQM is the concept that quality can be managed and that it is a process. The latest changes coming up for the ISO 9001:2000 standard’s "Process Model" seem to complete the embodiment. though simple seem to be creeping back into existence by "bits and pieces" through the evolution of the ISO9001 Management Quality System standard. has been killed and resurrected on a number of occasions. Motorola and Toyota Motor Company. The concept and principles. Companies who have implemented TQM include Ford Motor Company.

TQM = A process for managing quality. a philosophy of perpetual improvement in everything we do. TQM Compared to ISO 9001: ISO 9000 is a Quality System Management Standard. customer satisfaction and measurement requirements. it must be a continuous way of life. about 75 percent of the steps are in place for TQM. implementation is a basis for a Total Quality TQM is a An ISO philosophy of perpetual improvement. than reactive. The ISO Quality Standard sets in Management implementation. that The requirements for TQM can be considered ISO plus. Meeting Customer Requirements .Quality = Conformance to Requirements (Meeting Customer Requirements). TQM as a Foundation : i m p l e m e n t i n g T Q M i s b e i n g p r o a c t i v e concerning quality rather TQM is the foundation for activities which include. Another aspect relating to the ISO Standard is the proposed changes for the next revision (1999) will contain In short. place a system to deploy policy and verifiable objectives. Management = Quality can and must be managed. Where there is an ISO system.

Set True Customer Requirements 4. Not Correction 5.Reducing Development Cycle Times Just In Time/Demand Flow Manufacturing Improvement Teams Reducing Product and Service Costs Improving Administrative Systems Training. Concentrate on Prevention. Pursue a Continuous Improvement Strategy 7. Use Structured Methodology for Process Improvement 8. Reduce Variation 9. Apply to All Functions. Use a Balanced Approach 10. Pursue New Strategic Thinking 2. Know your Customers 3. Reduce Chronic Waste 6. Ten Steps to Total Quality Management (TQM): The Ten Steps to TQM are as follows: 1. Principles of TQM: The Principles of TQM are as follows: .

1. Problems must be prevented. 3. 4. 7. support. Measurement and recognition 4. 6. Suggestion scheme 3. Plan (drive. not front end costs. Quality can and must be managed. 2. 9. not negotiated. Training 2. 10. direct) 2. 5. Management Commitment 1. Check (review) 4. Quality must be measured. Quality improvements must be continuous. Employee Empowerment 1. communicate. 12. Life cycle costs. Goals are based on requirements. Do (deploy. Everyone has a customer and is a supplier. 8. Processes. Act (recognize. not people are the problem. revise) 13. Excellence teams . participate) 3. not just fixed. The quality standard is defect free. Every employee is responsible for quality. 11. Management must be involved and lead.

Plan and organize for quality improvement. Cross-functional process management 4. Fact Based Decision Making 1. TOPS (FORD 8D . Supplier partnership 2. Excellence teams 3. Service relationship with internal customers 3.Team Oriented Problem Solving) 15. . Systematic measurement and focus on CONQ 2. Never compromise quality 4. DOE. Customer Focus 1. 16. and improve standards. Attain. Customer driven standards. maintain.14. The 7 statistical tools 4. SPC (statistical process control) 2. Continuous Improvement 1. FMEA 3.

Planning a Change: .


THE EIGHT ELEMENTS OF TQM: Total Quality Management is a management approach that originated in .

The culture requires quality in all aspects of the company’s operations. and improvement initiatives. Communication This paper is meant to describe the eight elements comprising TQM. design. attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. To be successful implementing TQM. planning. Key Elements TQM has been coined to describe a philosophy that makes quality the driving force behind leadership. Ethics 2. . TQM requires the help of those eight key elements. Trust 4. Leadership 7. For this. Recognition 8. Training 5. Total Quality is a description of the culture. Integrity 3. Teamwork 6. with processes being done right the first time and defects and waste eradicated from operations. an organization must concentrate on the eight key elements: 1.the 1950's and has steadily become more popular since the early 1980's.

Integrity and Trust.It includes: Ethics. This is the key to unlocking the ultimate potential of TQM. fairness. Foundation .These elements can be divided into four groups according to their function.It includes: Training. III. Building Bricks . II. 1.It includes: Communication. fairness and sincerity and allows involvement by everyone. The groups are: I. Binding Mortar . I. It is a two-faceted subject represented by organizational and individual ethics.Ethics is the discipline concerned with good and bad in any situation. IV. These three elements move together. Ethics . Organizational ethics establish a business code of ethics that outlines guidelines that all Employees are to adhere to in the performance of their work. Foundation TQM is built on a foundation of ethics.It includes: Recognition. People see the opposite . however. Individual ethics Include personal rights or wrongs. Roof . and adherence to the facts and sincerity. It fosters openness. 2. integrity and trust. morals. values. Teamwork and Leadership.Integrity implies honesty. each element offers something different to the TQM concept. The characteristic is what customers (internal or external) expect and deserve to receive. Integrity .

So. trust builds the cooperative environment essential for TQM. Training that employees require are interpersonal skills. the ability to function within teams. It allows empowerment that encourages pride ownership and it encourages commitment. 3. decision making. Teams also provide more permanent improvements in processes and operations. employees are trained so that they can become effective employees for the company. the business will receive quicker and better solutions to problems.Trust is a by-product of integrity and ethical conduct. bricks are placed to reach the roof of recognition.Training is very important for employees to be highly productive. Teamwork . problem solving. Trust . With the use of teams. Without trust. people feel more . the framework of TQM cannot be built. fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust fosters full participation of all members. In teams. II. Supervisors are solely responsible for implementing TQM within their departments. ethics and integrity. and teaching their employees the philosophies of TQM. 5. teamwork is also a key element of TQM. job management performance analysis and improvement.To become successful in business. It allows decision making at appropriate levels in the organization. Bricks Basing on the strong foundation of trust. TQM will not work in an atmosphere of duplicity. It includes: 4. During the creation and formation of TQM. business economics and technical skills.of integrity as duplicity. Trust is essential to ensure customer satisfaction. Training .

These teams consist of small groups of skilled workers who share tasks and responsibilities.These are temporary teams to solve certain problems and also to identify and overcome causes of problems. It appears everywhere in organization. believe in it and then demonstrate their belief and commitment through their daily practices of TQM. C. These teams use concepts such as employee involvement teams. 6. philosophies. Quality Improvement Teams or Excellence Teams (QITS) . selfmanaging teams and quality circles. Natural Work Teams (NWTs) . For TQM to be successful in the business. the supervisor must be committed in leading his employees.It is possibly the most important element in TQM. Problem Solving Teams (PSTs) . A supervisor must understand TQM. and can get help from other workers to find a solution and put into place. They generally last from one week to three months. Leadership . These teams are set up for period of three to twelve months.These are temporary teams with the purpose of dealing with specific problems that often re-occur. Leadership in TQM requires the manager to provide an inspiring vision. There are mainly three types of teams that TQM organizations adopt: A. B. .comfortable bringing up problems that may occur. The supervisor makes sure that strategies. make strategic directions that are understood by all and to instill values that guide subordinates. These teams generally work for one to two hours a week.

everything is bound by strong mortar of communication.values and goals are transmitted down through out the organization to provide focus. suppliers and customers. clarity and direction. Communication . 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. Binding Mortar 7. Communication means a comm on understanding of ideas between the sender and the receiver. methods and performance measures for achieving those goals. III.It binds everything together. The success of TQM demands communication with and among all the organization members. Starting from foundation to roof of the TQM house. It acts as a vital li nk between all elements of TQM. Communication coupled with the sharing of correct information is vital. A key point is that TQM has to be introduced and led by top management. Supervisors must keep open airways where employees can send and receive information about the TQM process. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended. There are different ways of communication such as: .

Recognition comes in its best form when it is immediately following an action that an employee has . where supervisors keep open ears and listen to others. supervisors must listen effectively to correct the situation that comes about through the use of TQM. 8. Recognition . As people are recognized.Recognition is the last and final element in the entire system. there can be huge changes in self-esteem. Sideways communication . productivity.A.By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM.This is the dominant form of communication in an organization. C. Roof IV. Employees strive to receive recognition for themselves and their teams. Downward communication . As employees provide insight and constructive criticism. This forms a level of trust between supervisors and employees. Upward communication . It also allows dealing with customers and suppliers in a more professional manner. This is also similar to empowering communication. By this the supervisors are able to make the employees clear about TQM. Presentations and discussions basically do it. It should be provided for both suggestions and achievements for teams as well as individuals. B. quality and the amount of effort exhorted to the task at hand. Detecting and recognizing contributors is the most important job of a supervisor.This type of communication is important because it breaks down barriers between departments.

Recognition comes in different ways. 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. the business entities cannot be successful TQM implementers. on performance boards and also in front of top management. Last but not the least. It is very clear from the above discussion that TQM without involving integrity. Also by award banquets. Places . and give credit where credit is due is the motto of a successful TQM organization. annual award banquets. in fact it would be incomplete. Ways . introduction of . train employees to provide a quality product. the creation of the global market.Good performers can be recognized in front of departments. plaques. Without these elements. Lack of communication between departments. trophies etc.It can be by way of personal letter from top management. Training is the key by which the organization creates a TQM environment. international orientation of management that sweeps national boundaries. recognition should be given to people who contributed to the overall completed task. etc. lead by example. ethics and trust would be a great remiss.Recognition can given at any time like in staff meeting. create an environment where there is no fear to share knowledge. Time . THE TQM MODEL: At the century close. Leadership and teamwork go hand in hand. supervisors and employees create a burden on the whole TQM process. Hence.performed. places and time such as.

The additional pillar -. Management's effort has been directed towards discovering what makes a company excellent. make the competition stronger than ever. Oakland [1989] originated the idea of a 3-cornerstone model. and shift towards customer focused strategies. The proposed 4-pillar model (Figure 3. technology and structure. marketable philosophy. Without it TQM would have no objective. and set realistic. enter new markets. internationally oriented market have been changing rapidly. It involves three spheres of changes in an organization -. excellence became an imperative. companies must develop a corporate culture of treating people as their most important asset and provide a consistent level of high quality products and services in every market in which they operate. This makes the approach to TQM more complete. There is also a need for a systematic approach so that each element of TQMEX can be bonded together smoothly.new technologies.people. challenging. To achieve excellence. .satisfying customers -is vital because it explicitly addresses customer’s requirements. In order to expand business. competitive longterm objectives. Such an environment has supported the wide acceptance of Total Quality Management (TQM) which emerged recently as a new.1) brings the customer's requirement into the system. The criteria for success in this global.

TQM. The Structure of TQMEX: . therefore. should be understood as management of the system through systems thinking. which means understanding all the elements in the company and putting them to work together towards the common goal.The role of top management in implementation of total quality is crucial and its input on people far-reaching. The Model illuminates the elements that form a base to the understanding of TQM philosophy and implementation of the process company-wide. The TQMEX Model advocates an integrated approach in order to support the transition to systems management which is an ongoing process of continuous improvement that begins when the company commits itself to managing by quality.

it is necessary to develop a conceptual model.The Logic of TQMEX: In order to have a systematic approach to TQM. It also has to sustain the changes in business environment of the new era. The idea was to develop a universally applicable step-by-step guideline by recognized practices in TQM: Japanese 5-S Practice (5-S) including . Generally. 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. The Model also reflects teachings of the contemporary quality gurus. logical and yet comprehensive enough for TQM implementation. The model should be simple.

Therefore.Business Process Re-engineering (BPR) Quality Control Circles (QCCs) ISO 9001/2 Quality Management System (ISO) Total Productive Maintenance (TPM) As Osada pointed out. QCCs are concerned with encouraging the employees to participate in continuous improvement and guide them through. you have to start early too. and should follow as Step 2. although it is not simple to make a model simple! Companies starting to implement TQM should follow TQMEX stepby-step. 5-S is the key to total quality environment. this should be Step 3. Therefore TPM should be implemented in Step 5. Therefore. In fact ISO 9001 requires procedures for process control and inspection and testing equipment which are part of TPM. In order to maximize your benefits from TQMEX. TQMEX is a sequential model which is easy to remember and simple to implement. it should be the first step. It is more concerned with the business objectives and systems. This is in line with the quality principle of Keep It Short and Simple (KISS). Companies which have already gone through some degree of improvement using some of the steps should review what have not been done and do it as their next step of improvement. BPR is concerned with re-defining and designing your business process in order to meet the needs of your customers effectively. ISO 9000 is to develop a quality management system based on the good practices in the previous three steps. THE ACCEPTABILITY OF TQM .management system. They improve human resources capability to achieve the business objectives. TPM is a result of applying 5-S to equipment based on a sound quality.

JAPANESE TQM MODEL: At first, few but the Japanese took Deming seriously. Known for his legendary attacks on executives and compassion for the worker, 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. The Japanese then extended Deming's teaching to many dimensions of management. Here are TQM models from the Japanese Society of Quality and the Japan Standards Association that show how extensive their definition of TQM is. The Japanese identify three major dimensions of TQM: Daily Management, Hoshin/Policy Management, and Cross Function Management. We will study these in detail in the course. They can be visualized with the following picture.


As regards quality, USA is at crossroads today.Inspite of the fact that USA developed the techniques and concepts of SQC and TQC and the Japanese imported these techniques, the further orientation and development in philosophy, concept and techniques in terms of Q.C. circles and company wide quality control took place in Japan more rapidly and successfully. While the American companies remained concerned about detecting and segregating defective parts from good ones, the Japanese companies devised systems to reduce defects and produce good quality products. This resulted in America losing its position of dominance not only in the American market but also in the world. Much of the quality movement in USA is based on tools and techniques developed by the Japanese. Adoption of these techniques requires complete re- development in both methods and emphasis. The most critical challenge facing that by: 1. A high concentration of industry on relatively few companies. 2. Stress on promoting share-holders, and 3. Running the company by professional managers. These features of autonomous organisations and professional management have a considerable impact on the conduct of quality function. Each organisation determines independently what it will produce and what quality policies it will adopt. Marguardt divides the evolution of quality movement in USA in three U.S achieve quality the movement is the development and implementation of quality focused corporate management systems coherence, integration and comprehensiveness of quality management in Japan. The American companies are characterized

periods: 1. Advocates for SQC- Emphasis on technical tools of control charts, lot inspection and sampling schemes. 2. Administrators for system of quality control- Emphasis on the cost of quality and managerial aspects of organizing the quality. 3. 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 organizations with the focus on needs of customers. 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 .He is going to be demanding & keen on having the best services in the shortest possible time & at the minimum cost .He will look for solutions that are more specific to his needs thus creating opportunity of many niche market. -Today customers avail ATM services 24 hrs -Book airline tickets & check-in over phone -Self-service at fast food restaurant. -And many more What is different ?

-Service is also a product of different kind . -No time delay between the production & delivery of service -A defective product can be replaced but a defective service may create a permanent damage. 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 & computerizations -Lean manufacturing. (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 customization. Service quality dimension: Quality of services differ from manufactured products -Special characteristics including intangibility. -Simultaneity ( promptness ) -Heterogeneity -Unique dimensions of some services (e.g. Banking)


can make a . The core of TQM is the customer-supplier interfaces. and they are supported by the key management functions of people. first time. together. These are the foundations of TQM. processes and systems in the organization. This core must be surrounded by commitment to quality. 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. This section discusses each of these elements that. both externally and internally. and recognition of the need to change the culture of the organization to create total quality. internally and externally. and at each interface lie a number of processes. TQM. communication of the quality message. results in an organization doing the right things right.INTRODUCTION TQM is the way of managing for the future. combined with effective leadership.

The failure usually finds its way to the interface between the organization and its external customer. What is quality? A frequently used definition of quality is “Delighting the customer by fully meeting their performance. suppliers and customer supplier interfaces. In addition. The cooperation of everyone at every interface is necessary to achieve a total quality organization. having identified them. culture and communication running through them. therefore. appearance. internal or external. However. may include reliability.cost effectiveness and price. quality must span all functions. all departments and all activities and be a common language for improvement. a series of customers. These are “the quality chains”. or in the worst case. actually to the external customer Failure to meet the requirements in any part of a quality chain has a . imperative that the organisation knows what these needs and expectations are. CUSTOMERS AND SUPPLIERS There exists in each department. in the same way that the Japanese achieve this with company wide quality control. each office. and measure its own ability to meet them. each home. availability. all having the essential themes of commitment. the organisation must understand them. all people.total quality organisation. maintainability. These delivery. processes and systems in greater detail. Other sections explain people. and they can be broken at any point by one person or one piece of equipment not meeting the requirements of the customer. It is. for an organisation to be really effective. needs and expectations”. Quality starts with market research – to establish the true requirements for the product or service and the true needs of the customers.

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. each . and so the situation is exacerbated. and failure in one part of the system creates problems elsewhere. what must I do to improve this capability?) • Do I continually meet their needs and expectations? (If not. 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. To achieve quality throughout an organization. leading to yet more failure and problems. or can. The ability to meet customers’ (external and internal) requirements is vital. 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.way of multiplying.

POOR PRACTICES To be able to become a total quality organization. or ignoring competitive positioning • Each department working only for itself • Trying to control people through systems • Confusing quality with grade • Accepting that a level of defects or errors is inevitable • Firefighting. some of the bad practices must be recognized and corrected. to be successful. Whilst it must involve everyone. reactive behaviors • The “It’s not my problem” attitude The essential components of TQM – commitment & leadership TQM is an approach to improving the competitiveness. It is a way of planning. The ideal situation is an open partnership style relationship. where both parties share and benefit. organizing and understanding each activity. These may include: • Leaders not giving clear direction • Not understanding.person must respect the needs and expectations of their suppliers. effectiveness and flexibility of an organization for the benefit of all stakeholders. and of removing all the wasted effort and energy that is routinely spent in organizations. it must start at the top with the leaders of the organization. . It ensures the leaders adopt a strategic overview of quality and focus on prevention not detection of problems.

motivating and supporting people and encouraging effective employee participation . The 5 requirements for effective leadership are: • Developing and publishing corporate beliefs. with satisfied customers and good business results. combined with a TQM approach. values and objectives. Leaders must take responsibility for preparing. A fundamental requirement is a sound quality policy. strategies and benefits to the people for whom they have responsibility. These. which is translated into action plans down through the organization. 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. Only then will the right attitudes spread throughout the organization. ensure they communicate the principles. should result in a quality organization. plus take part in regular improvements of it and ensure it is understood at all levels of the organization. Effective leadership starts with the development of a mission statement.All senior managers must demonstrate their seriousness and commitment to quality. followed by a strategy. and middle managers must. reviewing and monitoring the policy. supported by plans and facilities to implement it. as well as demonstrating their commitment.

they are a distillation of the various beliefs of some of the quality gurus: • The organization needs a long-term commitment to continuous improvement. The following is a list of points that leaders should consider. Understanding the culture of an organization. .The task of implementing TQM can be daunting. Culture change The failure to address the culture of an organization is frequently the reason for many management initiatives either having limited success or failing altogether. standards based only on numbers. • 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. • 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 • Recognize that improvement of the systems must be managed. 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. and using that knowledge to successfully map the steps needed to accomplish a successful change. is an important part of the quality journey.

into the desired outputs. management systems and performance measurement Everything we do is a Process. every time. . needs two key elements: • Commitment from the leaders • Involvement of all of the organization’s people 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 organization. norms. behaviors. people. which are groups of smaller processes. and each can be analyzed by an examination of the inputs and outputs to determine the action necessary to improve quality. rules and the “climate”. The section on Processes discusses processes and how to improve them. and Implementation covers how to prioritise and select the right process for improvement. e. dominant values. called key or core business processes. The building blocks of TQM: processes. These must be carried out well if an organisation is to achieve its mission and objectives. which is the transformation of a set of inputs. methods and operations. In every organisation there are some very large processes. from one of acceptance of a certain level of errors or defects to one of right first time. as discussed in the section on People. which satisfy the customers’ needs and expectations. A culture change. In each area or function within an organization there will be many processes taking place.g. which can include action.The culture in any organization is formed by the beliefs.

team selection and development and models for successful teamwork. a climate for improvement and a strategy that is implemented thoughtfully and effectively. 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. each of which has one or several suppliers and customers.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. and equally importantly. An efficient and effective way to tackle process or quality improvement is through teamwork. The section on People expands on these issues. sustain and build upon them. people will not engage in improvement activities without commitment and recognition from the organisation’s leaders. but also. However.

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. which used the Seven Steps of Problem Solving (similar to DMAIC). and should be. Once the strategic direction for the organisation’s quality journey has been set. established at all levels in the organisation. implementation strategies program covering and imperatives of TQM. They can. TQM The program was conducted for the senior management team of the company. ideally being cascaded down and most effectively undertaken as team activities and this is discussed in the section on Performance THE EFFECTS OF Improving Financial Services through TQM The work described in this case study was undertaken in a young. cases. how to set one up and successfully implement it. . The Systems section discusses the benefits of having such a system. The demonstration project. rapidly expanding company in the financial services sector with no previous experience with Total Quality Management (TQM). The quality project began with a two-day introductory awareness concepts.It is imperative that the leaders take and documentation of an responsibility for the adoption appropriate management system in their organisation if they are serious about the quality journey. it needs Performance Measures to monitor and control the journey. was to show them how TQM concepts worked in practice before they committed resources for a company-wide program. and to ensure the desired level of performance is being achieved and sustained.

The proposal-to-policy process therefore impacted the greatest number of customers. 1. Brainstorming produced a list of more than 20 problems. "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. followed by a structured discussion to arrive at a consensus on the two most important themes customer service and sales productivity. with each person thinking about the turnaround within their department.2) Current status: What did the individual group members think the turnaround is currently? As each member began thinking questions came up. and therefore had few claims to process so far.1) Under the customer service theme. The company was young. "Reducing the Turnaround Time from an Insurance Proposal to Policy" was selected as the most obvious and urgent problem. The key process stages were mapped: . The list was prioritized using the weighted average table. Problem = customer desire – current status: 1.Step 1. "Between what stages do we consider turnaround?" Perceptions varied. An appropriate cross functional group was set up to tackle this problem. Define the Problem Selecting the theme: A meeting of the senior management of the company was held.

When would they expect the . individual group members were asked to think as customers -.Several sales branches in different parts of the country sent proposals into the Central Processing Center. 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). Armed with a suitably designed check sheet they set about the task. the rest of us bring data" the group was asked to collect data and establish reality.imagine they had just given a completed proposal form to a sales agent. It averaged: Non-Medical Policies Medical Policies 17 days 35 days Invoking the slogan from the awareness program "In God we trust. Later the entire cycle could be included. The perception of the length of turnaround by different members of the team was recorded. Customer desire: What was the turnaround desired by the customer? Since a customer survey was not available.

"Maximum. 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: Non-Medical Policies from 64 to 6 days Medical Policies from 118 to 6 days The performance requirement appeared daunting. Their perception averaged out six days for the required turnaround. For 99. . The importance of "variability" had struck home.policy in hand? From the customer's point of view they realized that they did not differentiate between medical and non-medical policies.to 32 and 59 days respectively. The concept of sigma was explained and was rapidly internalized. "Is this the average time or maximum time that you expect?" they were asked.7 percent delivery within the customer limit the metric was defined. It was clear therefore that the average must be less than six days." they responded. Therefore the initial target taken in the Mission Sheet (project charter) was to reduce the turnaround by 50 percent -.

Almost instantly the mindset changed from doubt to desire: "Why can't we process every proposal in this way? times. 1 took 100 minutes and Policy No. These were: Input arrival patterns Waiting times in process . The change process had begun. Processing times Scheduling Transport times Deployment of manpower Typically it was found that waiting times constitute the bulk of processing turnaround Mapping in Lean) summarized below: Number of operations 84 Number of handovers 13 In-house processing time (estimated) 126 man-mins. Range of individual stage time 2 to 13 mins.Too many handovers .Non-value added activities.Imbalanced processing line . Analysis of the Problem In a session the factors causing large turnaround times from the principles of JIT were explained. 2 took 97 minutes. The aggregate results are .Batching of work . Could this be true? Could the turnaround be 126 minutes for internal processing without waiting? The group started to question of the status quo. etc. Process Mapping (Value Stream was undertaken.Step 2. The trial results amazed everyone: Policy No. To check this estimate it was decided to collect data -.run two policies without waiting and record the time at each stage.

8 minutes. 3. In this case. 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. Testing the Idea Testing in stages is a critical stage. Determine the station with the maximum time cycle which cannot be split up by reallocation -. Step 4. Using that background a balanced flow line was designed as follows: 1.transport -. It allows modification of ideas based upon practical experience and equally importantly ensures acceptance of the new methods gradually by the operating personnel.13 to 8. Balance the line to make the time taken at each stage equal 8 minutes as far as possible. Reduce the stages and handovers -.make personnel sit next to each other. 2. The line was ready for a test run.Step 3. Agree processing to be done in batch of one proposal Changing the mindset of the employees so they will accept and welcome change is critical to building a self-sustaining culture of improvement. . Eliminate non-value added activities -. 4. Generating Ideas In the introductory program of TQM during the JIT session the advantages of flow versus b a t c h processing had b ee n dr a m a t i ca l l y demonstrated u si n g a si mple exercise. 5.

'" The mindset was dramatically changed and line personnel were now keen to push the implementation.Stage 1: Run five proposals flowing through the system and confirm results. For policies of the model branch From 64 to 27 days of 60% The Mission Sheet goal of 50 percent reduction had been bettered for the combined model branch and CPC. "'Madam. Further analysis of the data revealed other measures which could reduce the turnaround further. . The productivity had increased by 24 percent. could be replicated at other branches. and went for a meeting. the TQM files are ready for dispatch. The test results showed a significant reduction in turnaround: 1. For all non-medical policies From 64 to 42 days or 34% 2. Stage 2: It was agreed to run the new system for five days -. Overall reduction reached an amazing 75 percent. once proved.and compute the average and sigma of the turnaround to measure the improvement.7 percent on-time delivery in 15 days. which had been pegged at 64 days. Turnaround. There was jubilation in the team. was now happening at 99. The test produced the following results: Average turnaround time: < 1 day In-house processing time: 76 mins. The head of the CPC summarized: "I gave five files for processing. This model. 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. Emerging from the meeting about 30 minutes later I was greeted by the dispatch clerk jubilantly reporting.

Since the latter option produces a robust implementation that will not break down under pressures it was agreed that the group would summarize TQM. Check the Result The process was run for one month with regular checks. This session was highly successful and led to the release of the person concerned on a regular basis. To make sure that the gains were held. Sample x-bar .Step 5.the CPC and one sales branch -. Step 6. Implementing the Ideas Regular operations with the new system was planned to commence. two weeks later it was still not implemented. The departmental head had not attended the TQM awareness program and therefore did not understand why this change was required.mandate the change or change the mindset to accept the change. 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. There were two options -. Standardize Control/Document the Improvement Story Essentially the in-house processes in two centers of processing -. 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.had been impacted so far. However. control charts were introduced in both locations. 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.

A special "Grind It In" session was conducted for line personnel to ensure that the control chart was updated every day. and any deterioration was dealt with by finding and killing the root causes of the problems. For instance one sales manager reported that a customer had received a policy within a week of giving a proposal and was so amazed that he said. "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 -.a 60 percent reduction. The project objective of 50 percent in the first stage has been achieved.from 118 days to 37 days. The corresponding all-India reduction was from 118 days to 71 days -.A quality improvement story was compiled by the project Leader for training and motivating all employees. Customer reaction: Sales management and sales agents (internal customers)clearly noticed the difference. .

Future Actions Non-medical policies Goal to reduce turnaround from 42 days to about 15 days. Relevant preconditions have to do with the organization's history. Roll out process to branches to reduce turnaround from 71 to 37 days. and the . 3. precipitating events leading to TQM. Working with the bank to improve the turnaround time of banking checks. 1. Medical policies Goal to reduce turnaround from 71 days to about 24 days. 4. 1. Considering processing proposals while check clearance is in progress. Roll out process to branches to achieve 24 days throughout the country. 2. IMPLEMENTATION OF TQM Implementation Principles and Processes A preliminary step in TQM implementation is to assess the organization's current reality. Streamline the process of medical exam of the client from 37 to 24 days. its current needs. prioritizing and training sales branches to avoid the causes of rework. 2. Minimize rework by analyzing.

If the current reality does not include important preconditions. TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed. However. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. weak administrative systems. If an organization has been historically reactive and has no skill at improving its operating systems. a crisis or galvanizing event. if it is not too disabling. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. or poor employee morale. TQM would not be appropriate. there will be both employee skepticism and a lack of skilled change agents. lack of managerial skill. a comprehensive program of management and leadership development may be instituted. individual "prime movers. An organization should be basically healthy before beginning TQM. at lower levels of the organization." and action vehicles. which occur usually when entrepreneurs move outside the normal ways of operating to solve a problem. strategic decisions. If this condition prevails. a certain level of stress is probably desirable to initiate TQM. A crisis. can also help create a sense of . People need to feel a need for a change. These forces include departures from tradition. and if it has been able to successfully change the way it operates when needed.existing employee quality of working life. Departures from tradition are activities. TQM will be easier to implement. If it has significant problems such as a very unstable funding base. If an organization has a track record of effective responsiveness to the environment.

or demands from consumers or other stakeholders for improved quality of service.urgency which can mobilize people to act. Cohen and Brand (1993) and Hyde (1992) assert . and assigning responsibilities and resources. and assigning resources. In fact. a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. is also a responsibility of top management. creating necessary management structures. After a crisis. In the case of TQM. A plan to implement TQM may be such a strategic decision. in this case. Finally. as described above). This final step would include securing outside consultation and training and assigning someone within the organization to oversee the effort. This should be a responsibility of top management. Task identification would include a study of present conditions (assessing current reality. the next step. In fact. developing strategies for building commitment. action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized. this may be a funding cut or threat. 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. designing mechanisms to communicate the change. such as through a force field analysis. who takes charge in championing the new idea and showing others how it will help them get where they want to go. designing transition management structures. creating a model of the desired state. Such a leader may then become a prime mover. implementation of TQM. announcing the change goals to the organization. assessing readiness.

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. 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.that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. An organization wide steering committee to oversee the effort may be appropriate. Leadership styles and organizational culture must be congruent with TQM. mechanisms beyond existing processes will need to be developed. may be used to kick off the process. Special all-staff meetings attended by executives. employees (management and others) should be actively involved in TQM implementation. Developing commitment strategies was discussed above in the sections on resistance and on visionary leadership. and tool to keep be an effective ongoing employees aware of activities and . If they are not. To communicate the change. perhaps after receiving training in change management which they can then pass on to other employees. In summary. While consultants based on their prior relevant experience and their commitment to adapting the process to fit unique consultants will be invaluable with initial training of staff and TQM system design. this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist. and TQM newsletters may communication accomplishments. Choose organizational needs. A collaborative relationship with consultantsand clear role definitions specification of activities must be established.

as a result of continuously improving capabilities. A central principle of TQM is that mistakes may be made by people. and improving service to clients . to detailed execution of work elements on the shop floor. Leaders will need to maintain their commitment. technology. It leads to continuously improving results. but more importantly with improving capabilities to produce better results in the future. Continuous improvement must deal not only with improving results. The five major areas of focus for capability improvement are demand generation. and long-term process.) as possible. and repetition can be prevented by changing the process. processes. It stems from the belief that mistakes can be avoided and defects can be prevented. supply generation. Always keep in mind that TQM should be purpose driven. or at least permitted. and. TQM can be a powerful technique for unleashing and the community. Be clear on the organization's vision for the future and stay focused on it. reducing bureaucracy and costs. technology and machine capabilities. in all aspects of work. funding sources. maximize employee involvement in design of the system. This means that the root cause of such mistakes can be identified and eliminated. but most of them are caused. provide necessary support. operations and people capability. The Concept of Continuous Improvement by TQM TQM is mainly concerned with continuous improvement in all work. and hold people accountable for results.Remember that this will be a difficult. from high level strategic planning and decision-making. etc. by faulty systems and processes. of course. employee creativity and potential. Use input from stakeholder (clients. people. comprehensive. keep the process visible. referring agencies.

etc.There are three major mechanisms of prevention: 1. stopping production until the process can be corrected. which include: Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time/Demand Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Line Management ownership Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans Specific incorporation in strategic planning This shows that TQM must be practiced in all activities.Yoke). R&D. Purchasing. 3. Preventing mistakes (defects) from occurring (Mistake . to prevent the production of more defects. .proofing or Poka. detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation). HR. in Manufacturing. by all personnel. Sales. 2. Where mistakes can't be absolutely prevented. (Stop in time). TQM is the foundation for activities. Engineering. Marketing. Where mistakes recur.

and operated at progressively more extreme vibration and temperatures until something fails. In that way. it's very common for parts to be redesigned so that critical measurements either cease to exist. secondary measures of the production process are designed. It is important to record not just the measurement ranges. A commonly-discovered failure is for the product to disintegrate. Another popular test is called "shake and bake". and then the causes of the failure are corrected. cheaper fixes can be substituted later (say. The causes of any failures are isolated. The error band is usually a tighter distribution than the "failure band". when the product is redesigned) with no loss of quality. The sample can then be tested for things that matter most to the end users. but what failures caused them to be chosen. When parts' measures drift into a defined "error band". in which the product is mounted on a vibrator in an environmental oven. If fasteners fail. where TQM generally starts by sampling a random selection of the product. The improvement. After TQM has been in use. or become much wider. the process is fixed. the improvements might be to use measured-tension nut drivers to ensure that screws don't come off. so that the production process is fixed before failing parts can be produced. or improved adhesives to failure is then isolated and engineers design an . One popular test is a "life test" in which the sample product is operated until a part fails. It took people a while to develop tests to find emergent problems.TQM in manufacturing Quality assurance through statistical methods is a key component in a manufacturing organization. The statistical distributions of important measurements are tracked.

a "TQMed" product is cheaper to produce because of efficiency/performance improvements and because there's no need to repair dead-on-arrival products.ensure that parts remain glued. flexible. information. so it lasts ten or more times as long. The electronics are radically different. which represents an immensely more desirable product. TQM and contingency-based research TQM has not been independent of its environment. close interactions between advanced . One disadvantage might be that a stepper motor can hum or whine. Ittner and Larcker (1995) demonstrated that product focused TQM was linked to timely problem solving information and flexible revisions to reward systems. but equally expensive. but cheaper than a DC motor combined with a gearbox. Sim and Killough (1998) show that incentive pay enhanced the positive effects of TQM on customer and quality performance. The improvement is that a stepper motor has no brushes or gears to wear out. The stepper motor is more expensive than a DC motor. If a gearbox wears out first. Chendall (2003) summarizes the findings from contingency-based research concerning management control systems and TQM by noting that “TQM is associated with broadly externally focused based MCSs including timely. In the context of management accounting systems (MCSs). a typical engineering design improvement might be to substitute a brushless stepper motor for a DC motor with a gearbox. and usually needs noise-isolating mounts. Often.

Ponzi and Koenig (2002) showed that the same can be said about TQM. without explicit usage of their names.technologies and strategy. Nevertheless. 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. and continue to provide. and non-financial performance measurement. can even work in a synergistic way. its customers with products and services that satisfy their needs. as their core ideas can be very valuable. The culture requires quality in all aspects of the company's operations. with things being done right first time. 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. For example. 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). and defects and waste eradicated from operations. which peaked between 1992 and 1996. management concepts such as TQM leave their traces. attitude and organization of a company that aims to provide. Dubois (2002) showed that the core ideas behind the two management fads Reengineering and TQM. Total Quality is a description of the culture. . 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.” TQM. while rapidly losing popularity in terms of citations after these years.

competitiveness or financial return. fast response. For example. Some useful messages from results of TQM implementations: if you want to be a first-rate company. productivity. actions based on facts. people involved in new product development. employee participation. and a TQM culture. However. look at the world-class companies that have adopted it the most effective way to spend TQM introduction funds is by training top management. don't focus on the second-rate companies who can't handle TQM. top management leadership and commitment. 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. People in companies that have implemented TQM are more likely to have the basic understanding necessary for implementing EDM/PDM. when you look at successful companies you find a much higher percentage of successful TQM implementation. Customer-driven quality . continuous improvement. As a result many people are sceptical about TQM. 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.Many companies have difficulties in implementing TQM. 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.

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. TQM leadership from top management TQM is a way of life for a company. The company believes it will only be successful if customers are satisfied. The TQM company is sensitive to customer requirements and responds rapidly to them. Each part of the company is involved in Total Quality. In the TQM context. The Engineering Department is a supplier to downstream functions such as Manufacturing and Field Service. operating as a customer to some functions and as a supplier to others. and has to treat these internal customers with the same sensitivity and responsiveness as it would external customers. and in creating and deploying well defined systems. comes first. The concept of requirements is expanded to take in not only product and service attributes that meet basic requirements. `being sensitive to customer requirements' goes beyond defect and error reduction. The development and use of performance indicators is linked. directly or . These systems and methods guide all quality activities and encourage participation by all employees. not internal activities and constraints. This is a key point.TQM has a customer-first orientation.instead it delegates and pays lip service. The customer. It has to be introduced and led by top management. methods and performance measures for achieving those goals. but also those that enhance and differentiate them for competitive advantage. Customer satisfaction is seen as the company's highest priority. Attempts to implement TQM often fail because top management doesn't lead and get committed . and merely meeting specifications or reducing customer complaints.

TQM also recognizes that product quality is the result of process quality. continuous improvement of the quality of the product is seen as the only way to maintain a high level of customer satisfaction. This implies that all activities include measurement and monitoring of cycle time and responsiveness as a basis For seeking opportunities for improvement. Elimination of waste is a major component of the continuous improvement approach. to customer requirements and satisfaction. there is a focus on continuous improvement of the company's processes. and an emphasis on quality at the design stage. This will lead to an improvement in process quality. As well as recognizing the link between product quality and customer satisfaction. Fast response .indirectly. Once it is recognized that customer satisfaction can only be obtained by providing a high-quality product. As a result. and to an increase in customer satisfaction. use of EDM/PDM. In turn this will lead to an improvement in product quality. Continuous improvement Continuous improvement of all operations and activities is at the heart of TQM. Improvement cycles are encouraged for all the company's activities such as product development. and the way customer relationships are managed. When problems do occur within the product development process. The customer-driven approach helps to prevent errors and achieve defect-free production. and to management and employee remuneration. they are generally discovered and resolved before they can get to the next internal customer. There is also a strong emphasis on prevention rather than detection.

Efficiencies are realized from the elimination of nonvalue-adding effort such as re-design. the company has to respond rapidly to customer needs. review and performance tracking. 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. and comparison of performance with competitors. Simplicity is gained through concurrent product and process development. If the right information is not available. or engineering test results. These can be achieved with customer-driven and process-oriented product development because the resulting simplicity and efficiency greatly reduce the time involved. then the analysis. The result is a dramatic improvement in the elapsed time from product concept to first shipment. can't take place. improvement of operations. Employee participation A successful TQM environment requires a committed and well-trained work . and provides a rational rather than an emotional basis for decision making. Facts and analysis provide the basis for planning.To achieve customer satisfaction. This implies short product and service introduction cycles. and are not caused by particular employees. Actions based on facts The statistical analysis of engineering and manufacturing facts is an important part of TQM. In practice. The TQM approach is based on the use of objective data. whether it be of shop floor data. errors can't be identified. Usually these people are not managers but workers in the process. and so errors can't be corrected. The statistical approach to process management in both engineering and manufacturing recognizes that most problems are system-related.

These tools can identify procedures. As people behave the way they are measured and remunerated. management and execution. 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. Each of which can be examined and used to enhance the effectiveness. Motorola (1988). cause and effect concerns and other issues relevant to their organizations. Early winners of the Baldrige Award include AT&T (1992). efficiency. On-going education and training of all employees supports the drive for quality. Milliken (1989). ideas. communicate more effectively. Employees are encouraged to take more responsibility. standardization and overall quality of procedures. statistics. . Texas Instruments (1992) and Xerox (1989). act creatively. TQM links remuneration to customer satisfaction metrics.force that participates fully in quality improvement activities. analyze and assess qualitative and quantitative data that is relevant to their business. in accordance with ISO 9000 standards (SQ. TQM TOOLS Total quality management (TQM) tools help organizations to identify. Such participation is reinforced by reward and recognition systems which emphasize the achievement of quality objectives. products or work environment. and innovate. IBM (1990). Since 1988 a similar award (the Malcolm Baldrige National Quality Award) has been awarded in the US. 2004).

(ReVelle. as they give direction and best practice guidelines to you and/or your staff. manuals and standards are TQM tools as well.According to Quality America. such as brainstorming. diagrams and other analysis tools. . Inc. 2003) the number of TQM tools is close to 100 and come in various forms. In a different vein. charts and graphs. check lists. focus groups. 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 · Financial analysis · Model creation · Business structure · Logistics analysis The list goes on. though essentially TQM tools can be used in any situation.

etc.for any number of reasons. Pie Charts and Bar Graphs · Used to identify and compare data units as they relate to one issue or the whole. survey. or may close you off to further possibilities. and can be extremely effective if used properly. Each is used for. TQM Tools The following are some of the most common TQM tools in use today. · Effective when comparing statistical. extent of fonds. vault space available. Histograms · To illustrate and examine various data element in order to make decisions regarding them. . and identifies. or questionnaire results. 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. specific information in a specific manner. Simply using one tool may inhibit your understanding of the data provided. such as budgets.

as a before and after analysis of a process change . 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. most commonly purchased preservation aid. such as accrual rates. · Can be scheduled over select periods of time to track changes. in order to measure which have priority. to track high and low points in its run. · Identify groupings of qualitative data. shifts and patterns. such as most frequent complaint. They can also be created in retrospect. and ultimately identify trends.Run Chart · Follows a process over a specific period of time. etc.

Cause and Effect. which is much easier to follow. in order to function at a higher level of efficiency. and ultimate effects (outputs). . or driving forces that need to be improved. of problems or issues that may arise in the course of business.. identifying the driving and restraining forces of catering predominantly to genealogists. 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. Ishikawa or Fishbone Diagrams (designed by Kauro Ishikawa) · Illustrates multiple levels of potential causes (inputs). · May be confusing if too many inputs and outputs are identified. For example. An alternative would be a tree diagram. · To identify restraining forces that need to be eradicated.

Brainstorming and Affinity Diagrams · Teams using creative thinking to identify various aspects surrounding an issue. Tree Diagram · To identify the various tasks involved in. . procedure. whether of personnel. and the full scope of. a project. · To identify hierarchies. etc. · To identify inputs and outputs of a project. business structure. is a tool to organize brainstorming ideas. process. or priorities. which can be created using anything from enabling software to post-it notes organized on a wall. · An affinity diagram.

· Identify areas where workflow may be blocked. or diverted. · Identify where steps need to be added or removed to improve efficiency and create standardized workflow. 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. .

Management must keep its fingers on the pulse of TQM efforts as bringing a change in culture. between two variables · To chart the positive and negative direction of relationships CONCLUSION This project concludes that Total Quality Management (TQM) has many benefits but implementing TQM is not a bed of roses. as well as bonds and correlations.Scatter Diagram · To illustrate and validate hunches · To discover cause and effect relationships. and . attitudes. It cannot be left to its own fate after the launch a n d r e q u i r e s constant nurturing a n d f o l l o w -up b y t h e m a n a g e m e n t .

TQM can lead to a drastic change in the productivity of an org. reduces manual operations and optimizes resource utilization Benefits : 94 percent reduction in attended time to provision . 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 CASE STUDY IBM Tivoli Development Labs to reap more than $2 million savings with release management initiative. to be expected and are universal in nature. Workload Management Business need : Improve the quality and efficiency of software testing processes Solution : An automated provisioning process that standardizes release management. In recent years.beliefs in a sensitive and delicate matter. therefore. However patience and loyal efforts are required to solve these problems. Professional Services Solution : IT Optimization. On Demand Business. Company : IBM Corporation Deployment Country: New York – USA Industry: Computer Services. Problems in implementation are. On Demand Workplace. The literature is abundant with theories and applications. if implemented properly. TQM has been the most focused area of research as compared to other disciplines both in the industrial and academic world.

Tivoli® Development Labs. Each product undergoes extensive. for example. increased platform expected savings coverage. $2 million per year quality. Overview: Automating information technology and business processes is helping organizations worldwide realize enormous savings. the IBM team responsible for testing Tivoli software prior to its release. the IBM team responsible for testing Tivoli software prior to its release. for example. IBM Tivoli Development Labs. Tivoli Development Labs develops enterprise- . we’ve been able to align our testing processes with business goals and significantly improve operational efficiency. Consider. Why Become an On Demand Business? Streamlining the building and repurposing of test systems helps lower costs. improved test utilization of valuable skills "By employing IBM IT Service Management software. mandatory testing across the supported platforms. Tivoli® Development Labs." . better following roll out to more labs.Phil Buckellew. Consider.software. improve quality and reduce time to market for new products. Automating information technology and business processes is helping organizations worldwide realize enormous savings. Tivoli Development Labs develops enterpriseclass software that supports numerous heterogeneous operating system platforms. Program Director.

staff often didn’t have the time to remove all software from each server every time a new test was required. Of greatest concern was the time and skill required to build each test environment. With more than 5. Each time operating system and middleware software were installed. Each product undergoes extensive. optimizing resource utilization was difficult given the time and effort required to set up a test environment. mandatory testing across the supported platforms. inserting CDs and answering installation questions. from bare metal to full installation.500 heterogeneous servers spread across the lab in Austin. This meant that specialized domain experts were often reduced to menial tasks to ensure that systems were installed and configured properly. the quality and consistency of systems could vary depending on how closely each tester followed the installation instructions Manual processes also made it necessary for each tester to be familiar with the particular operating system being installed. And given the tedious nature of this process.5 to 2. the organization launched an initiative to improve the quality and efficiency of its software release management process. IBM Tivoli Development Labs. And because this process was manual. “We have to test every software product in a multiplicity of environments to mitigate the risk of problems for our customers. A typical operating system deployment required between 1.class software that supports numerous heterogeneous operating system platforms. Texas. This increased the risk that configuration variations might contribute to problems in the environment. program director.” explains Phil Buckellew. In 2004. 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. However. a tester often had to sit at a workstation or server.5 hours. .

chosen because it offers a cost-effective platform with proven flexibility. This integration enables the organization to effectively and efficiently install the vast number of operating system environments . scalability and security.” says Buckellew. Tivoli Provisioning Manager software is installed on the IBM System x platform running Red Hat Linux. Tivoli Development Labs had to standardize release management processes. This would help testers ensure consistency in the test environment and enable them to spend more time testing the software to improve product quality. lab staff was able to integrate Tivoli Provisioning Manager software with several homegrown test environment tools. Tivoli Provisioning Manager software provided the dynamic workflows the team required to automatically drive provisioning operations based on best practices and procedures. Due to the software’s flexibility.” Automating provisioning processes using best practices To help the business meet increasingly aggressive software delivery schedules. To achieve this goal. an IBM IT Operational Management Product that is an integral part of IBM IT Service Management.“Manually configuring test environments resulted in testing delays and an inefficient use of both our staff and our system resources. the organization implemented IBM Tivoli Provisioning Manager software. Through the use of Automation Packages. “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. automate routine and manual tasks and more efficiently use its resources.

“By employing IBM IT Service Management software. is helping us better align our testing processes with business . Tivoli Provisioning Manager software provided the securityrich features the organization needed to ensure that changes to servers were made by only authorized users. installing and uninstalling software and patches. as well as software development firms that may not know what they’ll need to install next. in turn. such as incorrectly setting a registry value or forgetting to remove an old file that may cause a software conflict.” says Buckellew.” adds Buckellew. And because the solution enables the organization to automate the set up of new test environments during non business hours. and increase the accuracy of the testing environment. cost-effective software deployment Using Tivoli Provisioning Manager software. configuring servers. As a result. This includes tasks for allocating and removing servers from the test environment.” says Buckellew. “We didn’t want test teams provisioning servers that were in use by other teams. Additionally.each software product must be tested on. “Tivoli Provisioning Manager helped us control who had access to which servers. lab staff can rapidly identify the source of code defects and retest with confidence. lab staff spend their time testing each software product more quickly and more often for greater test coverage. “The openness of Tivoli Provisioning Manager makes it ideal for companies that have a finite list of technologies in their environments.” Consistent. Doing so has helped the team minimize human errors. “This. Tivoli Development Labs has automated more than 800 tasks that were once performed manually across 415 systems. we’ve been able to easily implement best practices for software provisioning. and performing bare-metal builds.

goals and significantly improve operational efficiency.200 person-hours saved over the first seven months of the project. testers have more time to focus on product innovation and code quality. 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. The Tivoli Development Labs team reports that Phase 1 of the project resulted in a 94 percent reduction in attended time to provision software. Tasks that once required several hours to perform under constant supervision can now be completed in just five minutes. And by freeing up resources from mundane tasks. “Faster. Ultimately. unattended installs allow our existing test teams to complete more tests in less time. with more than 1. 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.” 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 .

enables better utilization of staff skills. rather than preparing environments. Quality through standards What is quality? . 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.Server IBM System x™ running Red Hat Linux® On Demand Business Benefits Automating manual processes improves operational efficiency.

Quality is defined by the customer.they would see this as a quality product. The research should reveal what the customer' view of quality is and whether they are getting it. 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.this would be their view of quality. Another customer may want an energy efficient light bulb with a longer life expectancy . It can be carried out with a small group of customers. Obtaining lots of information from a small panel of customers is called qualitative research. asking them to provide detailed information about products and services. A quality product or service is one that meets customer requirements. one house-owner may be happy with a standard light bulb . For example. . 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.

Obvious information that you will .for example. Satisfied customers are loyal to those suppliers they feel best understand their requirements. IBM works with industry specialists to create these standards. Today companies worldwide are seeking certification for their security management systems. looking to buy an iPod or plasma screen television Organizational customers .people like you and me. As a result they will make repeat purchases and will recommend a business to their friends. storing and handling data.Market research can also be carried out with large numbers of customers through questionnaires. This British Standard became the basis for the International Standard ISO/IEC17799. record music to them and sell them on as a finished product. IBM developed this standard in 1995 to establish best practice for capturing. This is the standard for a company's management of information security. For example. Why is quality important? The most successful organizations are those that give customers what they want. you will want to know a lot of information about its specification. Working to best practice standards is another way an organization can create quality. When you buy a piece of electrical equipment. it delivers the confidence of customers in a business through BS 7799. There are two main types of customers for a business: End customers . a company recording audio CDs would buy in blank CDs. This is called quantitative research.

Standards are continually able to sell them. These rights relate to products. services. In the same way. Standardization relies on all sections of society being involved in standards. Today.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. the right to be Informed and the right to choose. there is greater competition from abroad. Businesses that do not focus on quality will quickly find that there are costs to be paid. and makes products easier to use. It is very important for UK businesses to be associated with quality. Businesses therefore benefit from working with IBM to meet standards. because: Standards protect consumers’ fundamental right to safety. The reputation of a business will quickly deteriorate as a result of poor quality . your school will want to purchase gym and science lab equipment that meets the specifications of the safety standards. providing an opportunity for everyone to share knowledge and make their voice heard. processes and materials. European and International Standards. Examples of these costs include waste due to products being badly made and therefore not being work. Standardization promotes effective research and development.

started out originally as a British Standard.000 organizations across the globe Implementing a quality system – internal A system is a group of interrelated parts that make up a whole. A quality system therefore consists of parts (such as policies and processes) designed to ensure quality.changing so it is important for businesses to keep up. A variety of organizations work with IBM to create standards for QMS. The standard specifies requirements for a QMS where an organization: i. needs to show that it can consistently provide products that: a) meet customer requirements b) meet any legal requirements. the latest edition (2000) has been adopted by more than 400. This includes continually improving the system. These include: Customer focus leadership . BS 5750 in 1979. ISO 9001 which is outlined in Section 4. It was developed as an international standard and became known as ISO 9001 in 1987. ii.a commitment to quality by the leaders of the organization involvement of people . . For example. Today. aims to improve customer satisfaction as a result of applying the system.everyone in the organization having a part to play making sure that those processes which create quality are identified continual improvement of the system. ISO 9001 sets out eight quality management principles.

3. who will assess the effectiveness of the QMS.In practical terms. Involve top management (heavily) in developing a quality management plan. The QMS is then created and put into practice. When the organization feels confident it is meeting the standard. If it meets the standard a certificate will be awarded. Typically a Quality Manager will be responsible for the initiative. 6. 2. This is subject to regular . The Quality Manager can be trained in ways of implementing the standard. organizations wishing to apply QMS take the following steps: 1. They read through the literature and discuss any issues with IBM. 4. Use supporting literature and software tools to help understand. Read and understand the standard. develop and implement QMS. it informs an assessor. 5.

g. This sub-assembly may take place in India. for example. suppliers.e. Standards can provide the necessary bridge of confidence and understanding that builds mutual trust. modern businesses need to build external systems. External systems are those that involve people outside the organization . a modern plasma screen television. These separate components will then be assembled into a subassembly i. However. or Eastern European countries. This has led to a change in attitude. This is known as interdependence. Today. Implementing a quality system – external Internal systems are ones that are built inside an organization. Instead of a company having a 'them' and 'us' attitude . in addition. it now makes sense to see the process as a shared one in which everyone relies on each other.reviews. others from China. parts and finished goods from across the globe. many businesses have long supply chains in which they source materials. for buyers and sellers to work together there must be trust.e. helping trade to thrive. part of the finished television.where 'them' are the suppliers. . Some of the components may come from India. whilst a number of parts may then be transported and delivered to a final assembly plant in Wales. Conclusion of case study In world trade. Take.

Businesses benefit from standards because they establish ground rules that help to guarantee quality. Today it is the most prestigious international standards institution. Achieving certification to a standard might add reassurance for its customers and enables a business to boost its sales performance. and help British manufacturers to gain a competitive edge both in the UK and internationally. IBM assists British businesses in all markets to grow and to concentrate on meeting customers' requirements. . so the implementation of standards helps sales.Sales are the lifeblood of any business. Consumers benefit because their safety and their satisfaction are both greatly enhanced. Standards meet changing market needs and are customer driven. leisure and home environments. This is the case whatever the size of the business or the sector they are operating in. Governments benefit because such measures contribute to greater productivity and economic growth. It works with the British government. manufacturers and other stake holders to create quality standards. Establishing clear standards creates order in an increasingly complex world. These guarantee fitness for purpose. IBM was the world's first national standards making body. and safer work.

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