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“Total Quality Management”
A Project Report

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ACKNOWLEDGEMENT
I would like to thank Mrs. Manisha Anand for her support and cooperation in completion of the project report within the stipulated time period.

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INDEX

1. CHAPTER ONE 2. CHAPTER TWO 3. CHAPTER THREE 4. CHAPTER FOUR 5. CHAPTER FIVE 6. CHAPTER SIX 7. CHAPTER SEVEN -

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INTRODUCTION CONCEPTS AND PHILOSOPHIES OF TQM

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THE ACCEPTABILITY OF TQM THE ESSENTIALS OF TQM

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THE EFFECTS OF TQM IMPLEMENTATION OF TQM TQM TOOLS

 CASE STUDY ON IBM (TIVOLI SOFTWARE).

QMS International Business Machine Corporation Total Quality Management International Standard Organization Total Productive Maintenance Quality Control Circles Business Process Re-Engineering Total Quality Circles Automated Teller Machines Control Processing Centre Computer Aided Design Including Plan-Do-Check-Act Quality Management System .PDCA 13. BPR 7. IBM 2.4 GLOSSARY 1.INCL. ATM 9. TPM 5.CAD 11. CPC 10. TQC 8. TQM 3. QCCs 6. 12. ISO 4.

So.globally as a systematic management approach to meet the competitive challenges. 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. TQM is not undimensional approach but is multifaceted in nature. therefore. the summarization is being done in the following points. U. However. An integrated approach on all vital components of TQM is required to achieve the desired goal. TQM has been accepted by both service and manufacturing organizations. The nations are orienting their quality management strategies and systems to meet the requirements of the opera-ing environment though the primary focus remains the same. therefore is required to promote the understan-ding by launching massive educational and management development programs at all levels so as to create a cultural consciousness towards quality.Understanding these facets is essential to promote a successful quality improvement program. .5 SUMMARY Every nation has its own independent historical and cultural background.S. differs from one national setting to the other. that is.. Total Customer Satisfication .Many of the present techniques of quality management were developed in Japan.An all out effort . The quality sce-nario . 1. European nations and developing nations have also contributed significantly to this development.A.

5. TQM provides a linkage between productivity and quality. Participation through teamwork. based on the participation of all its members and aiming at long-term success through customer satisfaction. The benefits of TQM are numerous and are increasingly realized by organizations. namely: 1. 4. TQM redefines the quality with emphasis on top management commitment and custo-mer satisfaction.6 2. Commitment to satisfy customers." In Japanese. TQM comprises four process steps. The application of TQM tools increases a company’s efficiency. CHAPTER ONE INTRODUCTION  DEFINITION As defined by ISO: "TQM is a management approach of an organization. centered on quality. The focus of TQM is on: (a) (b) (c) (d) Involvement of everyone in organization in continuous improvement. Kaizen – Focuses on Continuous Process Improvement. . to make processes visible. 3. repeatable and measureable. 6. Commitment and Leadership of top management. and benefits to all members of the organization and to society.

government. and Kaoru Ishikawa also contributed to the body of knowledge now known as TQM. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations. Crosby. . as well as NASA space and science programs. Miryokuteki Hinshitsu – Broadens management concern beyond the immediate product. The American Society for Quality says that the term Total Quality Management was first used by the U. Practice. Philip B. Joseph Juran. and service industries. TQM requires that the company maintain this quality standard in all aspects of its business. Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes. Crosby. TQM has been widely used in manufacturing. Atarimae Hinshitsu – Focuses on intangible effects on processes and ways to optimize and reduce their effects. Feigenbaum was developing a similar set of principles at General Electric in the United States at around the same time. 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. Total Quality Control (ISBN 0070203539). 3. This approach was first tested at the North Island Naval Aviation Depot. Armand V. and Ishikawa. and Administration. the work of Juran. and the philosophy of Deming to make performance improvements in 1984.  ORIGINS Although W. Quality Control: Principles. 4.7 2. a book that was subsequently released in 1961 under the title.S. Kansei – Examining the way the user applies the product leads to improvement in the product itself. education. "Total Quality Control" was the key concept of Feigenbaum's 1951 book. 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).

TQM is an integrated management philosophy and a set of practices that emphasise top management commitment. product quality performance and business performance in the electronics industry in Malaysia. being the first to use TQM. However. which he did during a speech when he got the Deming prize in 1974. customer focus. product quality performance. Xu claims that "Total Quality Control" is translated incorrectly from Japanese since there is no difference between the words "control" and "management" in Japanese. which might also suggest that there is a more complex relationship between TQM. and business performance. benchmarking. zerodefects. employee focus.“A QUALITY ORIENTED APPROACH” Total Quality Management (TQM) is one of quality-oriented approaches that many organisations adopt.8 In his paper. This implies that the electronics industry cannot assume direct causal linkages between these three constructs. .  TQM :. Given the nature of this study. and quality measurement. the statistical analysis technique called Structural Equation Modelling was used. supplier relationship. This paper investigates the structural linkages between TQM. "The Making of TQM: History and Margins of the Hi(gh)-Story" from 1994. William Golimski refers to Koji Kobayashi. It is generally acknowledged that manufacturing companies need to be quality oriented in conducting their business to survive the business world. product quality performance. process improvement. the results reveal that top management commitment. and business performance. supplier relations and training in particular appear to be of primary importance for TQM practices in Malaysian electronics companies. This preliminary result suggests that there is insufficient statistical evidence to conclude significant simple relationships between TQM. quality-oriented training. former CEO of NEC.

2.9  CHARACTERISTICS OF TQM: The characteristics of TQM. 5. The success of TQM demands the leadership of top management and continuous involvement. TQM requires a long term commitment for continuous improvement of all processes. Responsibility for establishments and improvement of systems lies with the management of an organisation. 4. . 3. TQM is a strategy for continuously improving performance at all levels and in all areas of responsibility. as revealed from above definition are as follows: 1. TQM is customer oriented.  POTENTIAL BENEFITS OF TQM: The advantages of adopting TQM system compared to conventional quality system are numerous and are outlined below.

It requires a systematic and a long-term planning and strategic approach. The employee’s performance.10 1.The needs change from person to person and also from place to place. The traditional approach of quality control focusses on the technical details of a product so as to satisfy the customer. thus. TQM emphasis. 4. It helps examine critically and continuously all processes to remove nonproductive activities and waste. However. and communicating these properly to one and all in the organization. The organizations always aim at improving productivity as it leads to reduction in cost resulting in increase in profitability. goals and objectives. is not restricted to the product or service areas but reflects in other spheres as well. This serves to satisfy the higher human needs of recognition and self-development and enhances employee’s interest in the job. The efforts in this direction are . 3. 2. Quality in its true sense can not be achieved instantly. It channelises the procedures necessary to achieve quality performance. the customer longs for different satisfaction perspectives which are generally overlooked in the traditional approach. TQM facilitates to aspire for a top quality performer in every sphere of activity. growth and prosperity. As TQM focuses on the concept of university. TQM helps to focus clearly on the needs of the market. It is a well accepted fact that the negative attitudes of employees and nonparticipative culture of the organization pose the greatest hurdle to organisation’s success. adopting SQC and SPC techniques and developing and using a system of evaluation . on bringing about attitudinal and cultural change through promotion of participative work culture and effective team-work. the organization can channelize their efforts to achieve the desired and objectivated quality performance. By focusing on defining the quality policies. it tries to abstract the satisfaction perceptions of the market and thus helps the organisation to identify and meet the requirements of the market in a better way.

Many of these can be measured in quantitative terms. cost-effectiveness and safety. departments and different levels of management thereby providing an effective vehicle of communication and interaction. At the same time. 7. 5. However. It gears organizations to fully understand the competition and develop an effective combating strategy. 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. are many and multifaceted. low morale and so on. which includes enrichment of the quality of the worklife and many more are not quantifiable. They need to be continuous to meet the dynamic challenges. poor quality. As TQM helps to understand the pulse of customer and thus the market. It helps to review the process needed to develop the strategy of never ending improvement. the intangible benefits. The benefits derived by the organizations. This can be assessed by a well-planned research . 6. it has to be established whether they do occur or not in order to prove or disapprove the efficacy of the concept. The culture of well being thus improves housekeeping.11 contributed because of the formation of quality improvement teams which meet regularly and through a systematic approach which tries to remove nonproductive activity. duplication of efforts. TQM emphasizes on a continuous and periodic review so as to make the required changes. It helps to develop good procedures for communication and acknowledging good work. Quality improvement efforts cannot be restricted to any time period. it gives an edge to the organizations of variable nature to meet the competition. For this cause it is essential for the organistions to understand the competition and develop and adopt suitable strategies to meet the challenges. confusion. therefore. which result in misunderstanding. A continuous effort to identify the problems and resolve them helps to reduce the waste. Improper procedures and inadequate communication are yet another bane of many organizations. low productivity. TQM brings together members of various related sections.

The tangible and intangible benefits of TQM are variable in nature. though simple seem to be creeping back into existence by "bits and pieces" through the evolution of the ISO9001 Management Quality System standard. CHAPTER TWO CONCEPTS AND PHILOSOPHIES OF TQM  INTRODUCTION: Total Quality Management (TQM). .12 project or by carrying out an opinion survey periodically. a buzzword phrase of the 1980's. TQM is the concept that quality can be managed and that it is a process. SGL Carbon. Companies who have implemented TQM include Ford Motor Company. Motorola and Toyota Motor Company. The concept and principles. The following information is provided to give an understanding of the key elements of this process. Phillips Semiconductor. has been killed and resurrected on a number of occasions. The latest changes coming up for the ISO 9001:2000 standard’s "Process Model" seem to complete the embodiment.

An ISO implementation is a basis for a Total Quality Management implementation. TQM = A process for managing quality.13  TOTAL QUALITY MANAGEMENT(TQM) : Total = Quality involves everyone and all activities in the company. • • • • • • Meeting Customer Requirements Reducing Development Cycle Times Just In Time/Demand Flow Manufacturing Improvement Teams Reducing Product and Service Costs Improving Administrative Systems Training  Ten Steps to Total Quality Management (TQM): . Quality = Conformance to Requirements (Meeting Customer Requirements). In short. a philosophy of perpetual improvement in everything we do. about 75 percent of the steps are in place for TQM. it must be a continuous way of life. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives. implementing TQM is being proactive concerning quality rather than reactive. Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction and measurement requirements. The requirements for TQM can be considered ISO plus. TQM is a philosophy of perpetual improvement. Where there is an ISO system.  TQM as a Foundation : TQM is the foundation for activities which include. Management = Quality can and must be managed.  TQM Compared to ISO 9001 : ISO 9000 is a Quality System Management Standard.

Pursue a Continuous Improvement Strategy 7. 10. Do (deploy. Pursue New Strategic Thinking 2. Suggestion scheme 3. revise) 13. Concentrate on Prevention. 11. Excellence teams . Reduce Variation 9. Use Structured Methodology for Process Improvement 8. Quality must be measured. Life cycle costs. participate) 3. Processes. 7. not people are the problem. not negotiated. Every employee is responsible for quality. communicate. Quality can and must be managed. Reduce Chronic Waste 6. Management Commitment 1. Know your Customers 3. Measurement and recognition 4. Quality improvements must be continuous. Act (recognize. 3. Use a Balanced Approach 10. Everyone has a customer and is a supplier. 2. Apply to All Functions  Principles of TQM : The Principles of TQM are as follows: 1. Training 2. support. Goals are based on requirements. 4. not just fixed.14 The Ten Steps to TQM are as follows: 1. 8. 9. 12. Plan (drive. Check (review) 4. 6. 5. direct) 2. Set True Customer Requirements 4. Management must be involved and lead. not front end costs. Not Correction 5. The quality standard is defect free. Employee Empowerment 1. Problems must be prevented.

Customer driven standards Plan and organize for quality improvement. TOPS (FORD 8D .  Processes must be Managed and Improved: Processes must be managed and improved! This involves: • • • • • • • Defining the process Measuring process performance (metrics) Reviewing process performance Identifying process shortcomings Analyzing process problems Making a process change Measuring the effects of the process change Communicating both ways between supervisor and user . Continuous Improvement 1. The 7 statistical tools 4. improve standards 16. FMEA 3. Customer Focus 1. Attain. Never compromise quality 4. DOE.Team Oriented Problem Solving) 15. Service relationship with internal customers 3. Cross-functional process management 4. Fact Based Decision Making 1. Systematic measurement and focus on CONQ 2. Supplier partnership 2. Excellence teams 3.15 14. maintain. SPC (statistical process control) 2.

16  Key to Quality: The key to improving quality is to improve processes that define. produce and support our products. People • • Get processes "in control" Work with other employees and managers to identify process problems and eliminate them Managers and/or Supervisors Work on Processes • • • Provide training and tool resources Measure and review process performance (metrics) Improve process performance with the help of those who use the process  Planning a Change: . All people work in processes.

17  TQM PROBLEM SOLVING SEQUENCE: .

and effect • Your o Scatter knowledge • Histograms 2. Ensure the fix is embedded in the process and that the resulting process is used. Recognize that what you are doing is a "PROCESS" IDENTIFY POSSIBLE CAUSES 6. Identify the 7. "BRAINSTORM" what is causing the problem. Describe the "PROCESS" o Process Flow Analysis's o Flow charts o List of steps 5. 8.Process o Pareto charts 9. EVALUATE POSSIBLE CAUSES DO (IMPLEMENT THE CHANGE) MAKE A CHANGE CHECK (OBSERVE THE EFFECTS) TEST THE CHANGE ACTION (EMBED THE FIX INTO THE PROCESS FOR GOOD) TAKE PERMANENT ACTION 12. 4. Identify the "Big" problem o Brainstorming o Checklists o Pareto analysis  THE EIGHT ELEMENTS OF TQM: . return to step 5.sampling ****To ensure continuous improvement. The problem is fixed for good. Continue to monitor the process to ensure: A. Define some now • Pareto measurable o Control charts analysis characteristics .sampling analysis being o Frequency • Scatter processed.18 TQM Process Improvement and Problem Solving Sequence PLAN (PLAN A CHANGE) DEFINE THE PROBLEM 1. and B. the change.sampling of value to the ****Then make commodity. Determine what relationship change would help change worked between cause (confirmation).sampling 3. Determine what 11. The process is good enough o Control charts .sampling process is doing . Determine what diagrams of the • Control charts commodity past data shows. distribution diagrams • Scatter . Determine • Control diagrams Inference o Control charts what the Charts . Determine the 10. o Regression process .

Integrity and Trust. design. fairness. with processes being done right the first time and defects and waste eradicated from operations. Foundation . 3. 8. Building Bricks . Foundation TQM is built on a foundation of ethics.It includes: Recognition. Total Quality is a description of the culture. Teamwork and Leadership. values. Key Elements TQM has been coined to describe a philosophy that makes quality the driving force behind leadership. Binding Mortar . This is the key to unlocking the ultimate potential of TQM. It is a two-faceted subject represented by organizational and individual ethics. TQM requires the help of those eight key elements.Ethics is the discipline concerned with good and bad in any situation. It fosters openness. These three elements move together.19 Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. To be successful implementing TQM.Integrity implies honesty. Integrity . I.It includes: Training. II. 5.It includes: Ethics. integrity and trust. Ethics Integrity Trust Training Teamwork Leadership Recognition Communication This paper is meant to describe the eight elements comprising TQM. and adherence to the facts and sincerity. For this.It includes: Communication. 7. attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. Roof . These elements can be divided into four groups according to their function. 4. III. an organization must concentrate on the eight key elements: 1. 6. The culture requires quality in all aspects of the company's operations. 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. Individual ethics include personal rights or wrongs. 2. The characteristic is what customers (internal or external) expect . fairness and sincerity and allows involvement by everyone. each element offers something different to the TQM concept. 1. 2. morals. The groups are: I. IV. planning. and improvement initiatives. however.

20 and deserve to receive. bricks are placed to reach the roof of recognition.Training is very important for employees to be highly productive.These teams consist of small groups of skilled workers who share tasks and responsibilities. They generally last from one week to three months. Training that employees require are interpersonal skills. decision making. 3. the ability to function within teams. It allows empowerment that encourages pride ownership and it encourages commitment. 5. self-managing teams and quality circles. Trust fosters full participation of all members. C. Problem Solving Teams (PSTs) . It allows decision making at appropriate levels in the organization. Trust . Natural Work Teams (NWTs) .Bricks Basing on the strong foundation of trust. trust builds the cooperative environment essential for TQM.These are temporary teams to solve certain problems and also to identify and overcome causes of problems. the framework of TQM cannot be built. the business will receive quicker and better solutions to problems. These teams generally work for one to two hours a week.Trust is a by-product of integrity and ethical conduct. These teams are set up for period of three to twelve months. Without trust. ethics and integrity. With the use of teams. employees are trained so that they can become effective employees for the company. There are mainly three types of teams that TQM organizations adopt: A.These are temporary teams with the purpose of dealing with specific problems that often re-occur. It includes: 4. Supervisors are solely responsible for implementing TQM within their departments. II. These teams use concepts such as employee involvement teams. B. business economics and technical skills. TQM will not work in an atmosphere of duplicity. problem solving. job management performance analysis and improvement. Teams also provide more permanent improvements in processes and operations. So. 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. Quality Improvement Teams or Excellence Teams (QITS) . and can get help from other workers to find a solution and put into place. teamwork is also a key element of TQM. During the creation and formation of TQM. People see the opposite of integrity as duplicity. people feel more comfortable bringing up problems that may occur. . Teamwork . Trust is essential to ensure customer satisfaction. In teams. and teaching their employees the philosophies of TQM.To become successful in business. Training .

Leadership . It also allows dealing with customers and suppliers in a more professional manner. Starting from foundation to roof of the TQM house. III. there can be huge changes in self-esteem. By this the supervisors are able to make the employees clear about TQM. Upward communication . This is also similar to empowering communication. This forms a level of trust between supervisors and employees. It appears everywhere in organization.It is possibly the most important element in TQM. Downward communication . . believe in it and then demonstrate their belief and commitment through their daily practices of TQM. supervisors must listen effectively to correct the situation that comes about through the use of TQM. The success of TQM demands communication with and among all the organization members. make strategic directions that are understood by all and to instill values that guide subordinates. 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. As employees provide insight and constructive criticism. Presentations and discussions basically do it. where supervisors keep open ears and listen to others. It should be provided for both suggestions and achievements for teams as well as individuals. Detecting and recognizing contributors is the most important job of a supervisor. philosophies. clarity and direction. Leadership in TQM requires the manager to provide an inspiring vision. A key point is that TQM has to be introduced and led by top management. Communication . For communication to be credible the message must be clear and receiver must interpret in the way the sender intended.Roof 8. Sideways communication . the supervisor must be committed in leading his employees.It binds everything together. IV. Communication means a common understanding of ideas between the sender and the receiver. Recognition .Recognition is the last and final element in the entire system. A supervisor must understand TQM. values and goals are transmitted down through out the organization to provide focus. As people are recognized.By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. everything is bound by strong mortar of communication. B. C. Communication coupled with the sharing of correct information is vital.21 6. suppliers and customers. The supervisor makes sure that strategies. There are different ways of communication such as: A. It acts as a vital link between all elements of TQM. Supervisors must keep open airways where employees can send and receive information about the TQM process. productivity.This type of communication is important because it breaks down barriers between departments. For TQM to be successful in the business. methods and performance measures for achieving those goals.This is the dominant form of communication in an organization. Employees strive to receive recognition for themselves and their teams.BindingMortar 7.

Management's effort has been directed towards discovering what makes a company excellent. 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. It is very clear from the above discussion that TQM without involving integrity. To achieve excellence. Without these elements. on performance boards and also in front of top management. Leadership and teamwork go hand in hand. make the competition stronger than ever. places and time such as. Also by award banquets. in fact it would be incomplete. Ways . internationally oriented market have been changing rapidly. Hence. supervisors and employees create a burden on the whole TQM process. and shift towards customer focused strategies. international orientation of management that sweeps national boundaries. lead by example. create an environment where there is no fear to share knowledge. and set realistic. The criteria for success in this global. recognition should be given to people who contributed to the overall completed task. Recognition comes in its best form when it is immediately following an action that an employee has performed. Time . Such an environment has supported the wide acceptance of Total Quality Management (TQM) which . plaques.22 quality and the amount of effort exhorted to the task at hand. 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.Recognition can given at any time like in staff meeting. the creation of the global market. Lack of communication between departments. Training is the key by which the organization creates a TQM environment. ethics and trust would be a great remiss.Good performers can be recognized in front of departments. Recognition comes in different ways. trophies etc. enter new markets. In order to expand business. Last but not the least. introduction of new technologies. the business entities cannot be successful TQM implementers. train employees to provide a quality product. • • Places . etc.It can be by way of personal letter from top management. competitive long-term objectives. annual award banquets. and give credit where credit is due is the motto of a successful TQM organization  THE TQM MODEL: At the century close. excellence became an imperative.

TQM. There is also a need for a systematic approach so that each element of TQMEX can be bonded together smoothly. Without it TQM would have no objective. 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. should be understood as management of the system through systems thinking.is vital because it explicitly addresses customers requirements. The additional pillar -.satisfying customers -. The Four Pillars of TQM The role of top management in implementation of total quality is crucial and its input on people far-reaching. This makes the approach to TQM more complete.people.23 emerged recently as a new. The proposed 4-pillar model (Figure 3. marketable philosophy.  The Structure of TQMEX: . which means understanding all the elements in the company and putting them to work together towards the common goal. The Model illuminates the elements that form a base to the understanding of TQM philosophy and implementation of the process company-wide. Oakland [1989] originated the idea of a 3-cornerstone model.1) brings the customer's requirement into the system. challenging. technology and structure. therefore. It involves three spheres of changes in an organization -.

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. 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 . BPR is concerned with re-defining and designing your business process in order to meet the needs of your customers effectively. logical and yet comprehensive enough for TQM implementation. The idea was to develop a universally applicable step-by-step guideline by including recognized practices in TQM: • • • • • Japanese 5-S Practice (5-S) Business Process Re-engineering (BPR) Quality Control Circles (QCCs) ISO 9001/2 Quality Management System (ISO) Total Productive Maintenance (TPM) As Osada pointed out.24  The Logic of TQMEX: In order to have a systematic approach to TQM. The model should be simple. It is more concerned with the business objectives and systems. it is necessary to develop a conceptual model. it should be the first step. Therefore. Therefore. and should follow as Step 2. this should be Step 3. 5-S is the key to total quality environment. The Model also reflects teachings of the contemporary quality gurus. Generally. QCCs are concerned with encouraging the employees to participate in continuous improvement and guide them through. It also has to sustain the changes in business environment of the new era. ISO 9000 is to develop a quality management system based on the good practices in the previous three steps.

you have to start early too. In order to maximize your benefits from TQMEX. although it is not simple to make a model simple! Companies starting to implement TQM should follow TQMEX step-by-step. the organization is already very close towards achieving TQM. TQMEX is a sequential model which is easy to remember and simple to implement. 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. 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 then extended Deming's teaching to many dimensions of management. Therefore TPM should be implemented in Step 5.25 management system. and Cross Function Management. This is in line with the quality principle of Keep It Short and Simple (KISS). . Hoshin/Policy Management. The Japanese identify three major dimensions of TQM: Daily Management. If the above five steps have been implemented successfully. They can be visualized with the following picture. 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. Known for his legendary attacks on executives and compassion for the worker. CHAPTER THREE THE ACCEPTABILITY OF TQM  JAPANESE TQM MODEL: At first. We will study these in detail in the course. few but the Japanese took Deming seriously. In fact ISO 9001 requires procedures for process control and inspection and testing equipment which are part of TPM.

the Japanese companies devised systems to reduce defects and produce good quality products.26  TQM IN USA: As regards quality.S quality movement is the development and implementation of quality focused corporate management systems that achieve the coherence. circles and company wide quality control took place in Japan more rapidly and successfully.C.Inspite of the fact that USA developed the techniques and concepts of SQC and TQC and the japenese imported these techniques. Much of the quality movement in USA is based on tools and techniques developed by the japenese. concept and techniques in terms of Q. integration and . Adoption of these techniques requires complete redevelopment in both methods and emphasis. the further orientation and development in philoshophy. While the American companies remained concerned about detecting and segregating defective parts from good ones.This resulted in America losing its position of dominance not only in the American market but also in the world.The most critical challenge facing U. USA is at crossroads today.

Administrators for system of quality control. -And many more . Advocates for SQC. 2.Emphasis on the cost of quality and managerial aspects of organizing the quality. 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 . 3.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.He is going to be demanding & keen on having the best services in the shortest possible time & at the minimum cost . lot inspection and sampling schemes. Each organisation determines independently what it will produce and what quality policies it will adopt. Stress on promoting share-holders. and 3. A high concentration of industry on relatively few companies. Marguardt divides the evolution of quality movement in USA in three periods: 1. These features of autonomous organisations and professional management have a considerable impact on the conduct of quality function.Emphasis on technical tools of control charts. Advertising and selling quality consciousness-Emphasis on changing organizational culture and providing an environment that will enable people to activate and sustain in their own work and in products and services produced by the organistions with the focus on needs of customers. 2. The American companies are characterized by: 1. Running the company by professional managers.27 comprehensiveness of quality management in japan.

-Simultaneity ( promptness ) -Heterogeneity -Unique dimensions of some services (e. -No time delay between the production & delivery of service -A defective product can be replaced but a defective service may create a permanent damage.g. Banking) CHAPTER FOUR THE ESSENTIALS OF TQM Introduction TQM is the way of managing for the future. 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. . Growth of Service sector Service sector is growing rapidly due to -Change in environment . (contracting out most activities) Challenge of Service sector Delight customers -In a dynamic environment which is changing fast -In growing competitive market -With relatively shorter product life cycle -Requiring more customisation Service Quality Dimensions Quality of Services differs from manufactured products -Special characteristics including intangibility. life style etc -Demand for new kind of services -Advent of new technologies -Fast development of information technology & computerisation -Lean manufacturing .28 What is different ? -Service is also a product of different kind .

TQM. both externally and internally. culture and communication running through them. together. Other sections explain people. This core must be surrounded by commitment to quality. and recognition of the need to change the culture of the organisation to create total quality. can make a total quality organisation. The core of TQM is the customer-supplier interfaces. processes and systems in greater detail.29 internally and externally. This section discusses each of these elements that. results in an organization doing the right things right. and at each interface lie a number of processes. all having the essential themes of commitment. combined with effective leadership. first time. These are the foundations of TQM. communication of the quality message. What is quality? . and they are supported by the key management functions of people. processes and systems in the organisation.

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? . and they can be broken at any point by one person or one piece of equipment not meeting the requirements of the customer. actually to the external customer. Failure to meet the requirements in any part of a quality chain has a way of multiplying. and so the situation is exacerbated. delivery. Quality starts with market research – to establish the true requirements for the product or service and the true needs of the customers. The cooperation of everyone at every interface is necessary to achieve a total quality organization. therefore. the organisation must understand them. in the same way that the Japanese achieve this with company wide quality control. To achieve quality throughout an organization.30 A frequently used definition of quality is “Delighting the customer by fully meeting their needs and expectations”. each office. imperative that the organisation knows what these needs and expectations are. having identified them. It is. quality must span all functions. or in the worst case. In addition. However. The failure usually finds its way to the interface between the organization and its external customer. The ability to meet customers’ (external and internal) requirements is vital. leading to yet more failure and problems. Customers and suppliers There exists in each department. each home. and failure in one part of the system creates problems elsewhere. maintainability.cost effectiveness and price. These are “the quality chains”. a series of customers. for an organisation to be really effective. availability. all departments and all activities and be a common language for improvement. These may include performance. suppliers and customer supplier interfaces. all people. reliability. and measure its own ability to meet them. internal or external. appearance.

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. or ignoring competitive positioning . each person must respect the needs and expectations of their suppliers. The ideal situation is an open partnership style relationship. These may include: • Leaders not giving clear direction • Not understanding. what must I do to improve this capability?) • Do I continually meet their needs and expectations? (If not. 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. Poor practices To be able to become a total quality organization. where both parties share and benefit. some of the bad practices must be recognized and corrected. or can.31 • How do.

strategies and benefits to the people for whom they have responsibility. effectiveness and flexibility of an organization for the benefit of all stakeholders.32 • 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. reactive behaviour • The “It’s not my problem” attitude How many of these behaviours do you recognize in your organization? The essential components of TQM – commitment & leadership TQM is an approach to improving the competitiveness. It ensures the leaders adopt a strategic overview of quality and focus on prevention not detection of problems. and of removing all the wasted effort and energy that is routinely spent in organizations. to be successful. it must start at the top with the leaders of the organization. organizing and understanding each activity. and middle managers must. All senior managers must demonstrate their seriousness and commitment to quality. Whilst it must involve everyone. A fundamental requirement is a sound quality policy. as well as demonstrating their commitment. Only then will the right attitudes spread throughout the organization. It is a way of planning. supported by plans and facilities to implement it. . ensure they communicate the principles.

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. values and objectives.33 Leaders must take responsibility for preparing. • Adopt the philosophy of zero errors/defects to change the culture to right first time • Train people to understand the customer/supplier relationships • Do not buy products or services on price alone – look at the total cost • Recognise that improvement of the systems must be managed . The 5 requirements for effective leadership are: • Developing and publishing corporate beliefs. Effective leadership starts with the development of a mission statement. motivating and supporting people and encouraging effective employee participation The task of implementing TQM can be daunting. should result in a quality organization. These. reviewing and monitoring the policy. they are a distillation of the various beliefs of some of the quality gurus: • The organisation needs a long-term commitment to continuous improvement. followed by a strategy. combined with a TQM approach. with satisfied customers and good business results. plus take part in regular improvements of it and ensure it is understood at all levels of the organization. The following is a list of points that leaders should consider. which is translated into action plans down through the organization.

as discussed in the section on People. barriers to pride of workmanship and fiction – get facts by studying processes • Constantly educate and retrain – develop experts in the organisation • Develop a systematic approach to manage the implementation of TQM  Culture change The failure to address the culture of an organisation is frequently the reason for many management initiatives either having limited success or failing altogether.34 • 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. every time. from one of acceptance of a certain level of errors or defects to one of right first time.g. The culture in any organisation is formed by the beliefs. Understanding the culture of an organisation. and using that knowledge to successfully map the steps needed to accomplish a successful change. needs two key elements: • Commitment from the leaders • Involvement of all of the organisation’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 organisation. standards based only on numbers. dominant values. is an important part of the quality journey. . behaviours. norms. e. A culture change. rules and the “climate”.

which satisfy the customers’ needs and expectations. which can include action. In each area or function within an organisation there will be many processes taking place. management systems and performance measurement Everything we do is a Process.35  The building blocks of TQM: processes. and each can be analysed by an examination of the inputs and outputs to determine the action necessary to improve quality. . methods and operations. called key or core business processes. people. which are groups of smaller processes. and Implementation covers how to prioritise and select the right process for improvement. into the desired outputs. These must be carried out well if an organisation is to achieve its mission and objectives. The section on Processes discusses processes and how to improve them. In every organisation there are some very large processes. which is the transformation of a set of inputs.

36 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. a climate for improvement and a strategy that is implemented thoughtfully and effectively. team selection and development and models for successful teamwork. and equally importantly. The section on People expands on these issues. sustain and build upon them. It is imperative that the leaders take responsibility for the adoption and documentation of an appropriate management system in their organisation if they are serious about the quality . but also. each of which has one or several suppliers and customers. people will not engage in improvement activities without commitment and recognition from the organisation’s leaders. An appropriate documented Quality Management System will help an organisation not only achieve the objectives set out in its policy and strategy. An efficient and effective way to tackle process or quality improvement is through teamwork. covering roles within teams. However.

and should be.37 journey. it needs Performance Measures to monitor and control the journey. and to ensure the desired level of performance is being achieved and sustained. established at all levels in the organisation. The Systems section discusses the benefits of having such a system. CHAPTER FIVE THE EFFECTS OF TQM  Improving Financial Services through TQM . ideally being cascaded down and most effectively undertaken as team activities and this is discussed in the section on Performance. Once the strategic direction for the organisation’s quality journey has been set. how to set one up and successfully implement it. They can.

"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.2) Problem = customer desire – current status: Current status: What did the individual group members think the turnaround is currently? As each member began thinking questions came up.1) Selecting the theme: A meeting of the senior management of the company was held. 1. The program was conducted for the senior management team of the company. and therefore had few claims to process so far. "Reducing the Turnaround Time from an Insurance Proposal to Policy" was selected as the most obvious and urgent problem. with each person thinking about the turnaround within their department. cases. Define the Problem 1. Brainstorming produced a list of more than 20 problems. The list was prioritized using the weighted average table. The demonstration project. implementation strategies and imperatives of TQM. followed by a structured discussion to arrive at a consensus on the two most important themes -. An appropriate cross functional group was set up to tackle this problem. was to show them how TQM concepts worked in practice before they committed resources for a company-wide program. Step 1.38 The work described in this case study was undertaken in a young. which used the Seven Steps of Problem Solving (similar to DMAIC). The key process stages were mapped: . Under the customer service theme. "Between what stages do we consider turnaround?" Perceptions varied. 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.customer service and sales productivity. rapidly expanding company in the financial services sector with no previous experience with Total Quality Management (TQM). The company was young. The quality project began with a two-day introductory awareness program covering concepts. The proposal-to-policy process therefore impacted the greatest number of customers.

It averaged: Non-Medical Policies Medical Policies 17 days 35 days Invoking the slogan from the awareness program "In God we trust.39 Several sales branches in different parts of the country sent proposals into the Central Processing Center. . The perception of the length of turnaround by different members of the team was recorded. Their perception averaged out six days for the required turnaround. Later the entire cycle could be included. Armed with a suitably designed check sheet they set about the task.imagine they had just given a completed proposal form to a sales agent. 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). When would they expect the policy in hand? From the customer's point of view they realized that they did not differentiate between medical and non-medical policies. Customer desire: What was the turnaround desired by the customer? Since a customer survey was not available. individual group members were asked to think as customers -. the rest of us bring data" the group was asked to collect data and establish reality.

7 percent delivery within the customer limit the metric was defined. Therefore the initial target taken in the Mission Sheet (project charter) was to reduce the turnaround by 50 percent -to 32 and 59 days respectively. The importance of "variability" had struck home.Batching of work . For 99. These were:Input arrival patterns • • • • • Waiting times in process . Processing times Scheduling Transport times Deployment of manpower .Imbalanced processing line . Analysis of the Problem In a session the factors causing large turnaround times from the principles of JIT were explained.Non-value added activities. 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. The concept of sigma was explained and was rapidly internalized. It was clear therefore that the average must be less than six days.40 "Is this the average time or maximum time that you expect?" they were asked. Step 2. "Maximum. etc." they responded.Too many handovers .

41 Typically it was found that waiting times constitute the bulk of processing turnaround times. Process Mapping (Value Stream Mapping in Lean) was undertaken. The aggregate results are 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. Could this be true? Could the turnaround be 126 minutes for internal processing without waiting? The group started to question of the status quo. The change process had begun. To check this estimate it was decided to collect data -- run two policies without waiting and record the time at each stage. The trial results amazed everyone: Policy No. 1 took 100 minutes and Policy No. 2 took 97 minutes. Almost instantly the mindset changed from doubt to desire: "Why can't we process every proposal in this way?" Step 3. Generating Ideas In the introductory program of TQM during the JIT session the advantages of flow versus batch processing had been dramatically demonstrated using a simple exercise. Using that background a balanced flow line was designed as follows: 1. Determine the station with the maximum time cycle which cannot be split up by reallocation -- 8 minutes. 2. Balance the line to make the time taken at each stage equal 8 minutes as far as possible. 3. Reduce the stages and handovers -- 13 to 8. 4. Eliminate non-value added activities -- transport -- make personnel sit next to each other. 5. 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. 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. The line was ready for a test run.

42

Step 4. Testing the Idea Testing in stages is a critical stage. It allows modification of ideas based upon practical experience and equally importantly ensures acceptance of the new methods gradually by the operating personnel. Stage 1: Run five proposals flowing through the system and confirm results. The test produced the following results: Average turnaround time: < 1 day In-house processing time: 76 mins. There was jubilation in the team. The productivity had increased by 24 percent. The head of the CPC summarized: "I gave five files for processing, and went for a meeting. Emerging from the meeting about 30 minutes later I was greeted by the dispatch clerk jubilantly reporting, "'Madam, the TQM files are ready for dispatch.'" The mindset was dramatically changed and line personnel were now keen to push the implementation. Stage 2: It was agreed to run the new system for five days -- and compute the average and sigma of the turnaround to measure the improvement. 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. This model, once proved, could be replicated at other branches. The test results showed a significant reduction in turnaround: 1. For all non-medical policies From 64 to 42 days or 34% 2. 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. Further analysis of the data revealed other measures which could reduce the turnaround further. Overall reduction reached an amazing 75 percent. Turnaround, which had been pegged at 64 days, was now happening at 99.7 percent on-time delivery in 15 days.

43 Step 5. Implementing the Ideas Regular operations with the new system was planned to commence. However, two weeks later it was still not implemented. 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. The departmental head had not attended the TQM awareness program and therefore did not understand why this change was required. There were two options -- mandate the change or change the mindset to accept the change. Since the latter option produces a robust implementation that will not break down under pressures it was agreed that the group would summarize TQM, 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. This session was highly successful and led to the release of the person concerned on a regular basis. Step 6. Check the Result The process was run for one month with regular checks. 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. Standardize Control/Document the Improvement Story

Essentially the in-house processes in two centers of processing -- the CPC and one sales branch -- had been impacted so far. To make sure that the gains were held, control charts were introduced in both locations. Sample x-bar

"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 -. The project objective of 50 percent in the first stage has been achieved. Future Actions .44 and sigma-control charts for the CPC are shown below: • • • • • A special "Grind It In" session was conducted for line personnel to ensure that the control chart was updated every day. 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.from 118 days to 37 days. The corresponding all-India reduction was from 118 days to 71 days -. Customer reaction: Sales management and sales agents (internal customers) clearly noticed the difference.a 60 percent reduction. A quality improvement story was compiled by the project Leader for training and motivating all employees.

Working with the bank to improve the turnaround time of banking checks. Streamline the process of medical exam of the client from 37 to 24 days. 2. 1. Considering processing proposals while check clearance is in progress. Medical policies: Goal to reduce turnaround from 71 days to about 24 days. . 3. Roll out process to branches to reduce turnaround from 71 to 37 days. 4. prioritizing and training sales branches to avoid the causes of rework. Roll out process to branches to achieve 24 days throughout the country.45 Non-medical policies: Goal to reduce turnaround from 42 days to about 15 days. 2. 1. Minimize rework by analyzing.

a comprehensive program of management and leadership development may be instituted." and action vehicles. A . there will be both employee skepticism and a lack of skilled change agents. precipitating events leading to TQM. However. If it has significant problems such as a very unstable funding base. individual "prime movers.46 CHAPTER SIX IMPLEMENTATION OF TQM  Implementation Principles and Processes A preliminary step in TQM implementation is to assess the organization's current reality. If an organization has a track record of effective responsiveness to the environment. a crisis or galvanizing event. which occur when entrepreneurs move outside the normal ways of operating to solve a problem. strategic decisions. TQM will be easier to implement. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. These forces include departures from tradition. If the current reality does not include important preconditions. a certain level of stress is probably desirable to initiate TQM. Departures from tradition are activities. and the existing employee quality of working life. its current needs. weak administrative systems. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. People need to feel a need for a change. If an organization has been historically reactive and has no skill at improving its operating systems. lack of managerial skill. TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed. TQM would not be appropriate. An organization should be basically healthy before beginning TQM. Relevant preconditions have to do with the organization's history. usually at lower levels of the organization. and if it has been able to successfully change the way it operates when needed. If this condition prevails. or poor employee morale.

A plan to implement TQM may be such a strategic decision. who takes charge in championing the new idea and showing others how it will help them get where they want to go. as described above). designing mechanisms to communicate the change. Developing commitment strategies was discussed above in the sections on resistance and on visionary leadership.47 crisis. can also help create a sense of urgency which can mobilize people to act. sometimes designed as input or dialog sessions. a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. and assigning resources. Task identification would include a study of present conditions (assessing current reality. if it is not too disabling. creating necessary management structures. In fact. action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized. in this case. this may be a funding cut or threat. Special all-staff meetings attended by executives. the next step. To communicate the change. Finally. In fact. is also a responsibility of top management. An organization wide steering committee to oversee the effort may be appropriate. Such a leader may then become a prime mover. This should be a responsibility of top management. may be used to kick off the process. or demands from consumers or other stakeholders for improved quality of service. and assigning responsibilities and resources. announcing the change goals to the organization. .  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. developing strategies for building commitment. creating a model of the desired state. This final step would include securing outside consultation and training and assigning someone within the organization to oversee the effort. designing transition management structures. mechanisms beyond existing processes will need to be developed. In the case of TQM. assessing readiness. and TQM newsletters may be an effective ongoing communication tool to keep employees aware of activities and accomplishments. After a crisis. such as through a force field analysis. implementation of TQM.

in all aspects of work. The . people. as a result of continuously improving capabilities. technology and machine capabilities. employees (management and others) should be actively involved in TQM implementation. provide necessary support. The Concept of Continuous Improvement by TQM TQM is mainly concerned with continuous improvement in all work. Leaders will need to maintain their commitment. Choose consultants based on their prior relevant experience and their commitment to adapting the process to fit unique organizational needs. but more importantly with improving capabilities to produce better results in the future. of course. Continuous improvement must deal not only with improving results.) as possible. Use input from stakeholder (clients. Leadership styles and organizational culture must be congruent with TQM. referring agencies. In summary. to detailed execution of work elements on the shop floor. this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist. reducing bureaucracy and costs. Be clear on the organization's vision for the future and stay focused on it. Always keep in mind that TQM should be purpose driven. keep the process visible. processes. and. comprehensive. It stems from the belief that mistakes can be avoided and defects can be prevented. from high level strategic planning and decision-making. and improving service to clients and the community. and hold people accountable for results. It leads to continuously improving results. TQM can be a powerful technique for unleashing employee creativity and potential. etc. A collaborative relationship with consultants and clear role definitions and specification of activities must be established. perhaps after receiving training in change management which they can then pass on to other employees. maximize employee involvement in design of the system. While consultants will be invaluable with initial training of staff and TQM system design. Remember that this will be a difficult. If they are not. funding sources. 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.48 Management of resources for the change effort is important with TQM because outside consultants will almost always be required. and long-term process.

and repetition can be prevented by changing the process. but most of them are caused. (Stop in time). to prevent the production of more defects. stopping production until the process can be corrected. Marketing.proofing or PokaYoke). 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. . TQM is the foundation for activities. in Manufacturing. supply generation. detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation). Engineering. This means that the root cause of such mistakes can be identified and eliminated. by faulty systems and processes. etc. 3. Sales. by all personnel. Preventing mistakes (defects) from occurring (Mistake . 2. operations and people capability. or at least permitted. HR. R&D. Where mistakes can't be absolutely prevented. . A central principle of TQM is that mistakes may be made by people. Purchasing. There are three major mechanisms of prevention: 1. technology.49 five major areas of focus for capability improvement are demand generation. Where mistakes recur.

If fasteners fail. After TQM has been in use. Another popular test is called "shake and bake". In that way. A commonly-discovered failure is for the product to disintegrate. and then the causes of the failure are corrected. the improvements might be to use measured-tension nutdrivers to ensure that screws don't come off. when the product is redesigned) with no loss of quality. The causes of any failures are isolated. a typical engineering design improvement might be to substitute a brushless stepper motor for a DC motor with a gearbox. and operated at progressively more extreme vibration and temperatures until something fails. The sample can then be tested for things that matter most to the end users. One popular test is a "life test" in which the sample product is operated until a part fails. The improvement is that a stepper motor has no brushes or gears to wear out. The statistical distributions of important measurements are tracked. so that the production process is fixed before failing parts can be produced. but equally expensive. One disadvantage might be that a stepper motor can hum or whine. or become much wider. but cheaper than a DC motor combined with a gearbox. or improved adhesives to ensure that parts remain glued. cheaper fixes can be substituted later (say. If a gearbox wears out first. in which the product is mounted on a vibrator in an environmental oven. but what failures caused them to be chosen. it's very common for parts to be redesigned so that critical measurements either cease to exist. The electronics are radically different. The stepper motor is more expensive than a DC motor. It is important to record not just the measurement ranges. The error band is usually a tighter distribution than the "failure band". and usually needs noise-isolating mounts. When parts' measures drift into a defined "error band". the process is fixed. so it lasts ten or more times as long. It took people a while to develop tests to find emergent problems. where TQM generally starts by sampling a random selection of the product. .50  TQM in manufacturing Quality assurance through statistical methods is a key component in a manufacturing organization. The failure is then isolated and engineers design an improvement. secondary measures of the production process are designed.

which represents an immensely more desirable product. externally focused information. can even work in a synergistic way.  TQM and contingency-based research TQM has not been independent of its environment. Chendall (2003) summarizes the findings from contingency-based research concerning management control systems and TQM by noting that “TQM is associated with broadly based MCSs including timely. flexible. as their core ideas can be very valuable. Ponzi and Koenig (2002) showed that the same can be said about TQM. Ittner and Larcker (1995) demonstrated that product focused TQM was linked to timely problem solving information and flexible revisions to reward systems. 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). Dubois (2002) showed that the core ideas behind the two management fads Reengineering and TQM. management concepts such as TQM leave their traces. and non-financial performance measurement. which peaked between 1992 and 1996. Nevertheless. a "TQMed" product is cheaper to produce because of efficiency/performance improvements and because there's no need to repair dead-on-arrival products. In the context of management accounting systems (MCSs). 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. while rapidly losing popularity in terms of citations after these years. close interactions between advanced technologies and strategy. without explicit usage of their names. For example.”  TQM. 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 . Sim and Killough (1998) show that incentive pay enhanced the positive effects of TQM on customer and quality performance. 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.51 Often.

and continue to provide. employee participation. 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. Some useful messages from results of TQM implementations: • • • if you want to be a first-rate company. Many companies have difficulties in implementing TQM. The culture requires quality in all aspects of the company's operations. look at the world-class companies that have adopted it the most effective way to spend TQM introduction funds is by training top management. its customers with products and services that satisfy their needs. attitude and organization of a company that aims to provide.52 since the early 1980's. and a TQM culture. For example. and defects and waste eradicated from operations. As a result many people are sceptical about TQM. actions based on facts. with things being done right first time. fast response. when you look at successful companies you find a much higher percentage of successful TQM implementation. don't focus on the second-rate companies who can't handle TQM. people involved in new product development. 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. Customer-driven quality . competitiveness or financial return. Total Quality is a description of the culture. However. 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. productivity. People in companies that have implemented TQM are more likely to have the basic understanding necessary for implementing EDM/PDM. continuous improvement. top management leadership and commitment.

As well as recognizing the link between product quality and customer satisfaction. but also those that enhance and differentiate them for competitive advantage. and in creating and deploying well defined systems. and to management and employee remuneration. and merely meeting specifications or reducing customer complaints. operating as a customer to some functions and as a supplier to others. Customer satisfaction is seen as the company's highest priority. to customer requirements and satisfaction. The development and use of performance indicators is linked. 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 has to treat these internal customers with the same sensitivity and responsiveness as it would external customers. Continuous improvement Continuous improvement of all operations and activities is at the heart of TQM. The concept of requirements is expanded to take in not only product and service attributes that meet basic requirements. The company believes it will only be successful if customers are satisfied. This is a key point. `being sensitive to customer requirements' goes beyond defect and error reduction. Attempts to implement TQM often fail because top management doesn't lead and get committed . methods and performance measures for achieving those goals. The Engineering Department is a supplier to downstream functions such as Manufacturing and Field Service. comes first. These systems and methods guide all quality activities and encourage participation by all employees. directly or indirectly. It has to be introduced and led by top management. In the TQM context. TQM also . The customer. Each part of the company is involved in Total Quality. Once it is recognized that customer satisfaction can only be obtained by providing a high-quality product. continuous improvement of the quality of the product is seen as the only way to maintain a high level of customer satisfaction. The TQM company is sensitive to customer requirements and responds rapidly to them. not internal activities and constraints.instead it delegates and pays lip service.53 TQM has a customer-first orientation. TQM leadership from top management TQM is a way of life for a company.

The customer-driven approach helps to prevent errors and achieve defect-free production. This will lead to an improvement in process quality. and provides a rational rather than an emotional basis for decision making. This implies that all activities include measurement and monitoring of cycle time and responsiveness as a basis for seeking opportunities for improvement. When problems do occur within the product development process. The result is a dramatic improvement in the elapsed time from product concept to first shipment. Fastresponse To achieve customer satisfaction. review and performance tracking. and to an increase in customer satisfaction. they are generally discovered and resolved before they can get to the next internalcustomer. Actions based on facts The statistical analysis of engineering and manufacturing facts is an important part of TQM. there is a focus on continuous improvement of the company's processes. and the way customer relationships are managed. and are not caused by particular employees. Efficiencies are realized from the elimination of non-value-adding effort such as re-design. In turn this will lead to an improvement in product quality. These can be achieved with customer-driven and process-oriented product development because the resulting simplicity and efficiency greatly reduce the time involved. The TQM approach is based on the use of objective data. The statistical approach to process management in both engineering and manufacturing recognizes that most problems are system-related. improvement of operations. As a result. and comparison of performance with competitors. use of EDM/PDM. Elimination of waste is a major component of the continuous improvement approach. This implies short product and service introduction cycles.54 recognizes that product quality is the result of process quality. and an emphasis on quality at the design stage. . the company has to respond rapidly to customer needs. Simplicity is gained through concurrent product and process development. Improvement cycles are encouraged for all the company's activities such as product development. There is also a strong emphasis on prevention rather than detection. Facts and analysis provide the basis for planning.

can't take place. and rework are normal practice. and so errors can't be corrected. and fire-fighting is necessary and rewarded. and innovate. waste. changes. An open. communicate more effectively.saying one thing and doing the opposite. On-going education and training of all employees supports the drive for quality. or engineering test results. As people behave the way they are measured and remunerated. If the right information is not available. TQM links remuneration to customer satisfaction metrics. then the analysis. Usually these people are not managers but workers in the process. product development is usually carried on in a conflictual atmosphere where each department acts independently. They are not going to feel this if they are excluded from the development of visions. Product development in a TQM environment Product development in a TQM environment is very different to product development in a non-TQM environment. whether it be of shop floor data. Without a TQM approach.55 In practice. They are unlikely to behave in a responsible way if they see management behaving irresponsibly . strategies. A TQM culture It's not easy to introduce TQM. Employee participation A successful TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. Employees are encouraged to take more responsibility. Short-term results drive behavior so scrap. Employees have to be made to feel that they are responsible for customer satisfaction. errors can't be identified. cooperative culture has to be created by management. . 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 plans. Management focuses on supervising individuals. Such participation is reinforced by reward and recognition systems which emphasize the achievement of quality objectives. work-arounds. It's important they participate in these activities. act creatively.

Teams are process-oriented.56 Product development in a TQM environment is customer-driven and focused on quality. management and execution. Early winners of the Baldrige Award include AT&T (1992). Texas Instruments (1992) and Xerox (1989). Milliken (1989). IBM (1990). Since 1988 a similar award (the Malcolm Baldrige National Quality Award) has been awarded in the US. and interact with their internal customers to deliver the required results. 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. Management's focus is on controlling the overall process. CHAPTER SEVEN TQM TOOLS . and rewarding teamwork. Motorola (1988).

cause and effect concerns and other issues relevant to their organizations. standardization and overall quality of procedures. such as brainstorming. efficiency. in accordance with ISO 9000 standards (SQ. focus groups. charts and graphs.57  Total Quality Management (TQM) Tools Total quality management (TQM) tools help organizations to identify. as they give direction and best practice guidelines to you and/or your staff. manuals and standards are TQM tools as well. These tools can identify procedures. In a different vein. Each of which can be examined and used to enhance the effectiveness. 2003) the number of TQM tools is close to 100 and come in various forms. analyze and assess qualitative and quantitative data that is relevant to their business. 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 . diagrams and other analysis tools. Inc. (ReVelle. check lists. ideas. products or work environment. 2004). According to Quality America. statistics.

 Histograms · To illustrate and examine various data element in order to make decisions regarding them. . and identifies. though essentially TQM tools can be used in any situation.  TQM Tools The following are some of the most common TQM tools in use today.  Pie Charts and Bar Graphs · Used to identify and compare data units as they relate to one issue or the whole. such as budgets. or questionnaire results. Simply using one tool may inhibit your understanding of the data provided. It should be noted that tools should be used in conjunction with other tools to understand the full scope of the issue being analyzed or illustrated. and can be extremely effective if used properly. Each is used for. specific information in a specific manner. for any number of reasons. or may close you off to further possibilities. extent of fonds. · Effective when comparing statistical. vault space available.58 · financial analysis · model creation · business structure · logistics analysis The list goes on. survey. etc.

They can also be created in retrospect. and ultimately identify trends. as a before and after analysis of a process change. etc. in order to measure which have priority. · Identify groupings of qualitative data. such as accrual rates.59  Run Chart · Follows a process over a specific period of time. · Can be scheduled over select periods of time to track changes. shifts and patterns. such as most frequent complaint.  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. to track high and low points in its run. most commonly purchased preservation aid. .

identifying the driving and restraining forces of catering predominantly to genealogists. . An alternative would be a tree diagram. of problems or issues that may arise in the course of business. and ultimate effects (outputs). in order to function at a higher level of efficiency.60  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. · May be confusing if too many inputs and outputs are identified. or driving forces that need to be improved. Ishikawa or Fishbone Diagrams (designed by Kauro Ishikawa) · Illustrates multiple levels of potential causes (inputs). which is much easier to follow. · To identify restraining forces that need to be eradicated.  Cause and Effect. For example.

and the full scope of. etc. · To identify hierarchies. business structure. · Consist of various people from the general public who use and discuss your product. is a tool to organize brainstorming ideas. · An affinity diagram. procedure.  Brainstorming and Affinity Diagrams · Teams using creative thinking to identify various aspects surrounding an issue.61  Focus Groups · Useful for marketing or advertising organizations to test products on the general public. . or priorities. which can be created using anything from enabling software to post-it notes organized on a wall. providing impartial feedback to help you determine whether your product needs improvement or if it should be introduced onto the market. a project. whether of personnel. · To identify inputs and outputs of a project. process.  Tree Diagram · To identify the various tasks involved in.

and where workflow is fluid. · Identify where steps need to be added or removed to improve efficiency and create standardized workflow.62  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. · Identify areas where workflow may be blocked. or diverted.  Scatter Diagram .

All of these TQM tools can be easily created and examined by using various types of computer software (Pollock. examined for efficiency and effectiveness. organizational newsletters. marketing reports.  PDCA · The Plan-Do-Check-Act style of management where each project or procedure is planned according to needs and outcome. etc. issues. enhancing work flow such as mapping acquisition procedures. . between two variables · To chart the positive and negative direction of relationships  Relations Diagram · To understand the relationships between various factors. events. and then acted upon if anything in the process needs to be altered. as well as bonds and correlations. · This is a cyclical style to be iterated until the process is perfected. and for various other data analysis needs. They can also be easily integrated into team meetings. Proper integration and use of these tools will ultimately assist in processing data such as identifying collecting policies.63 · To illustrate and validate hunches · To discover cause and effect relationships. it is then tested. so as to understand their importance in the overall organizational view. 2003) or by simply mapping them out on paper.

TQM has been the most focused area of research as compared to other disciplines both in the industrial and academic world. and beliefs in a sensitive and delicate matter. 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. Management must keep its fingers on the pulse of TQM efforts as bringing a change in culture. However patience and loyal efforts are required to solve these problems. . It cannot be left to its own fate after the launch and requires constant nurturing and follow-up by the management. and creating an overall high level of quality in all areas of your organization. CASE STUDY  IBM Tivoli Development Labs to reap more than $2 million savings with release management initiative. Problems in implementation are. TQM can lead to a drastic change in the productivity of an org. In recent years. to be expected and are universal in nature.64 ensuring client satisfaction by surveying their needs and analyzing them accordingly. The literature is abundant with theories and applications. if implemented properly. attitudes. CONCLUSION This project concludes that Total Quality Management (TQM) has many benefits but implementing TQM is not a bed of roses. therefore.

Consider. Program Director. increased platform coverage. On Demand Business. better utilization of valuable skills "By employing IBM IT Service Management software. On Demand Workplace. reduces manual operations and optimizes resource utilization Benefits : 94 percent reduction in attended time to provision software. improved test quality. we’ve been able to align our testing processes with business goals and significantly improve operational efficiency. Workload Management Business need : Improve the quality and efficiency of software testing processes Solution : An automated provisioning process that standardizes release management. Tivoli Development Labs develops enterprise-class software that supports numerous . $2 million per year expected savings following roll out to more labs. for example. IBM Tivoli Development Labs." . Professional Services IT Optimization.Phil Buckellew. the IBM team responsible for testing Tivoli software prior to its release.65 Company : IBM Corporation Deployment Country : New York – USA Industry : Solution : Computer Services. Tivoli® Development Labs.  Overview : Automating information technology and business processes is helping organizations worldwide realize enormous savings.

A typical operating system deployment required between 1.5 to 2. inserting CDs and answering installation questions. With more than 5. improve quality and reduce time to market for new products. program director. Manual processes also made it necessary for each tester to be familiar with the particular operating system being installed. Tivoli® Development Labs. This meant that specialized domain experts were often reduced to menial tasks to ensure that systems were installed and configured properly. “We have to test every software product in a multiplicity of environments to mitigate the risk of problems for our customers. Each product undergoes extensive. In 2004. Texas. Each time operating system and middleware software were installed. Why Become an On Demand Business? Streamlining the building and repurposing of test systems helps lower costs. IBM Tivoli Development Labs. staff often didn’t have the time to remove all software from each server every time a new test was . Each product undergoes extensive. optimizing resource utilization was difficult given the time and effort required to set up a test environment.500 heterogeneous servers spread across the lab in Austin. for example. However. the quality and consistency of systems could vary depending on how closely each tester followed the installation instructions. from bare metal to full installation.66 heterogeneous operating system platforms. Tivoli Development Labs develops enterprise-class software that supports numerous heterogeneous operating system platforms. mandatory testing across the supported platforms.” explains Phil Buckellew. Of greatest concern was the time and skill required to build each test environment. 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. And because this process was manual. Consider. a tester often had to sit at a workstation or server. And given the tedious nature of this process.5 hours. mandatory testing across the supported platforms. Automating information technology and business processes is helping organizations worldwide realize enormous savings. the organization launched an initiative to improve the quality and efficiency of its software release management process. the IBM team responsible for testing Tivoli software prior to its release.

67 required.” says Buckellew. as well as software development firms that may not know what they’ll need to install next. chosen because it offers a cost-effective platform with proven flexibility. Tivoli Development Labs had to standardize release management processes. Through the use of Automation Packages. Tivoli Provisioning Manager software is installed on the IBM System x platform running Red Hat Linux. scalability and security. This would help testers ensure consistency in the test environment and enable them to spend more time testing the software to improve product quality. “The openness of Tivoli Provisioning Manager makes it ideal for companies that have a finite list of technologies in their environments. lab staff was able to integrate Tivoli Provisioning Manager software with several homegrown test environment tools. This increased the risk that configuration variations might contribute to problems in the environment. “Manually configuring test environments resulted in testing delays and an inefficient use of both our staff and our system resources. Additionally. This integration enables the organization to effectively and efficiently install the vast number of operating system environments each software product must be tested on. an IBM IT Operational Management Product that is an integral part of IBM IT Service Management. the organization implemented IBM Tivoli Provisioning Manager software.” says Buckellew. automate routine and manual tasks and more efficiently use its resources. Tivoli Provisioning Manager software provided the dynamic workflows the team required to automatically drive provisioning operations based on best practices and procedures. “We didn’t want test teams provisioning servers that were in use by other teams.” adds Buckellew. Due to the software’s flexibility. Tivoli Provisioning Manager software provided the security-rich features the organization needed to ensure that changes to servers were made by only authorized users. “Tivoli Provisioning Manager helped us .” Automating provisioning processes using best practices To help the business meet increasingly aggressive software delivery schedules. “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. To achieve this goal.

” 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. And because the solution enables the organization to automate the set up of new test environments during non business hours.200 person-hours saved over the first seven months of the project. This includes tasks for allocating and removing servers from the test environment. “By employing IBM IT Service Management software. configuring servers.” Consistent. Doing so has helped the team minimize human errors. . “This. And by freeing up resources from mundane tasks. The Tivoli Development Labs team reports that Phase 1 of the project resulted in a 94 percent reduction in attended time to provision software. and performing bare-metal builds. is helping us better align our testing processes with business goals and significantly improve operational efficiency. Tasks that once required several hours to perform under constant supervision can now be completed in just five minutes. lab staff can rapidly identify the source of code defects and retest with confidence. with more than 1. Tivoli Development Labs has automated more than 800 tasks that were once performed manually across 415 systems. such as incorrectly setting a registry value or forgetting to remove an old file that may cause a software conflict. cost-effective software deployment Using Tivoli Provisioning Manager software. we’ve been able to easily implement best practices for software provisioning.68 control who had access to which servers. As a result. Ultimately. 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. lab staff spend their time testing each software product more quickly and more often for greater test coverage. testers have more time to focus on product innovation and code quality. and increase the accuracy of the testing environment. installing and uninstalling software and patches.” says Buckellew. in turn.

Another customer may want an energy efficient light bulb with a longer life expectancy .” says Buckellew. .they would see this as a quality product. unattended installs allow our existing test teams to complete more tests in less time. rather than preparing environments. Not all customers have the same requirements so two contrasting products may both be seen as quality products by their users. For example. one house-owner may be happy with a standard light bulb . 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.this would be their view of quality. A quality product or service is one that meets customer requirements. enables better utilization of staff skills Quality through standards What is quality? Quality is defined by the customer. Quality can therefore be defined as being fit for the customer's purpose. “We can better utilize our resources and cost-effectively deliver high-quality solutions to our customers as a result” Key Components Software • IBM Tivoli Provisioning Manager Server • IBM System x™ running Red Hat Linux® On Demand Business Benefits • • • • Automating manual processes improves operational efficiency.69 “Faster.

This is the standard for a company's management of information security. This British Standard became the basis for the International Standard ISO/IEC17799. storing and handling data. asking them to provide detailed information about products and services. Why is quality important? The most successful organizations are those that give customers what they want.70 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. Working to best practice standards is another way an organization can create quality. Today companies worldwide are seeking certification for their security management systems. IBM developed this standard in 1995 to establish best practice for capturing. This is called quantitative research. As a result they will make repeat purchases and will recommend a business to their friends. it delivers the confidence of customers in a business through BS 7799. IBM works with industry specialists to create these standards. Obtaining lots of information from a small panel of customers is called qualitative research. For example. It can be carried out with a small group of customers. Satisfied customers are loyal to those suppliers they feel best understand their requirements. The research should reveal what the customer' view of quality is and whether they are getting it. . Market research can also be carried out with large numbers of customers through questionnaires.

European and International Standards. a company recording audio CDs would buy in blank CDs.people like you and me. your school will want to purchase gym and science lab equipment that meets the specifications of the safety standards. the right to be informed and the right to choose.for example.71 There are two main types of customers for a business: • end customers . In the same way. Obvious information that you will be looking for include: • • • Is it safe? Does it do what I want? Does it meet the required standards? As a customer you will have a lot more confidence in products you know have been tested and meet British. processes and materials. looking to buy an iPod or plasma screen television organizational customers . services. because: • Standards protect consumers' fundamental right to safety. you will want to know a lot of information about its specification. . record music to them and sell them on as a finished product. Businesses therefore benefit from working with IBM to meet standards. These rights relate to products. • When you buy a piece of electrical equipment.

Today. The reputation of a business will quickly deteriorate as a result of poor quality work. This includes continually improving the system. ii. and makes products easier to use. aims to improve customer satisfaction as a result of applying the system. Standards are continually changing so it is important for businesses to keep up. A variety of organizations work with IBM to create standards for QMS. needs to show that it can consistently provide products that: a) meet customer requirements b) meet any legal requirements. It is very important for UK businesses to be associated with quality. providing an opportunity for everyone to share knowledge and make their voice heard. Today. The standard specifies requirements for a QMS where an organization: i. Examples of these costs include waste due to products being badly made and therefore not being able to sell them. A quality system therefore consists of parts (such as policies and processes) designed to ensure quality. ISO 9001 which is outlined in Section 4. It was developed as an international standard and became known as ISO 9001 in 1987. Standardization relies on all sections of society being involved in standards. there is greater competition from abroad. For example. started out originally as a British Standard. the latest edition (2000) has been adopted by more than 400. Implementing a quality system – internal A system is a group of interrelated parts that make up a whole.72 • Standardization promotes effective research and development. . • Businesses that do not focus on quality will quickly find that there are costs to be paid.000 organizations across the globe. BS 5750 in 1979.

They read through the literature and discuss any issues with IBM. Typically a Quality Manager will be responsible for the initiative.73 ISO 9001 sets out eight quality management principles. In practical terms. These include: • • • • • customer focus leadership .everyone in the organization having a part to play making sure that those processes which create quality are identified continual improvement of the system. develop and implement QMS. Involve top management (heavily) in developing a quality management plan. organizations wishing to apply QMS take the following steps: 1. 3. Use supporting literature and software tools to help understand. . 2.a commitment to quality by the leaders of the organization involvement of people . Read and understand the standard.

g. The QMS is then created and put into practice. However. Some of the components may come from India. Take. modern businesses need to build external systems. for example. If it meets the standard a certificate will be awarded. Today. When the organization feels confident it is meeting the standard. others from China.e. External systems are those that involve people outside the organization . in addition. many businesses have long supply chains in which they source materials. 5. Implementing a quality system – external Internal systems are ones that are built inside an organization. who will assess the effectiveness of the QMS. 6.e.74 4. part of the finished . it informs an assessor. The Quality Manager can be trained in ways of implementing the standard. This is subject to regular reviews. These separate components will then be assembled into a sub-assembly i. parts and finished goods from across the globe. a modern plasma screen television. suppliers. or Eastern European countries.

75 television. This is known as interdependence Conclusion of Case Study In world trade. for buyers and sellers to work together there must be trust. Standards can provide the necessary bridge of confidence and understanding that builds mutual trust. it now makes sense to see the process as a shared one in which everyone relies on each other. whilst a number of parts may then be transported and delivered to a final assembly plant in Wales.where 'them' are the suppliers. . helping trade to thrive. This has led to a change in attitude. This sub-assembly may take place in India. Instead of a company having a 'them' and 'us' attitude .

Achieving certification to a standard might add reassurance for its customers and enables a business to boost its sales performance. and safer work. Standards meet changing market needs and are customer driven. Governments benefit because such measures contribute to greater productivity and economic growth. and help British manufacturers to gain a competitive edge both  in the UK and internationally.MOHANTY 2. Consumers benefit because their safety and their satisfaction are both greatly enhanced.  manufacturers and other stakeholders to create quality standards.76 Sales are the lifeblood of any business.COM 4. These guarantee  fitness for purpose. J. Today it  is the most  prestigious international standards institution.360-IBM. WWW.COM 3. This is the case whatever the size of the business or the sector they are operating in. WWW. IBM assists British businesses in all markets to grow  and to concentrate on meeting customers' requirements. “TQM TOOLS AND TOOL KITS”.WIKEPEDIA. TEXT REFERENCES 1.ISIXSIGMA. so the implementation of standards helps sales.P. Businesses benefit from standards because they establish ground rules that help to guarantee quality. leisure and home environments.COM DIAGRAMATIC REFERENCES . It works with the British government. WWW. IBM   was the world's  first national standards  making body. “HANDBOOK OF TOTAL QUALITY MANAGEMENT”. R. Establishing clear standards creates order in an increasingly complex world.ReVelle 5.

QAPROJECT.ORG/IMAGES/SCATTERDIAGRAM.77 1.GIF .YEADONINC. WWW.GIF 2.COM/DIAGRAM. WWW.