“Total Quality Management”
A Project Report


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











ISO 4.PDCA 13. TPM 5.4 GLOSSARY 1. 12. CPC 10. ATM 9.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 .INCL. TQC 8. QCCs 6. BPR 7. IBM 2. TQM 3.CAD 11.

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. Total Customer Satisfication . So. TQM is not undimensional approach but is multifaceted in nature. U. 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.5 SUMMARY Every nation has its own independent historical and cultural background. . However. differs from one national setting to the other.Many of the present techniques of quality management were developed in Japan. 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. TQM has been accepted by both service and manufacturing organizations.An all out effort . An integrated approach on all vital components of TQM is required to achieve the desired goal.A. European nations and developing nations have also contributed significantly to this development. 1. therefore. The quality sce-nario .S.Understanding these facets is essential to promote a successful quality improvement program. the summarization is being done in the following points. that is.globally as a systematic management approach to meet the competitive challenges..

TQM comprises four process steps. Commitment and Leadership of top management. 4. CHAPTER ONE INTRODUCTION  DEFINITION As defined by ISO: "TQM is a management approach of an organization. repeatable and measureable. The benefits of TQM are numerous and are increasingly realized by organizations. The application of TQM tools increases a company’s efficiency. Kaizen – Focuses on Continuous Process Improvement." In Japanese. to make processes visible. TQM provides a linkage between productivity and quality. 3. centered on quality. Participation through teamwork. TQM redefines the quality with emphasis on top management commitment and custo-mer satisfaction. 5. Commitment to satisfy customers. . namely: 1. 6.6 2. The focus of TQM is on: (a) (b) (c) (d) Involvement of everyone in organization in continuous improvement. based on the participation of all its members and aiming at long-term success through customer satisfaction. and benefits to all members of the organization and to society.

7 2. TQM has been widely used in manufacturing. and service industries. 3. Philip B. and the philosophy of Deming to make performance improvements in 1984. TQM requires that the company maintain this quality standard in all aspects of its business. government. Kansei – Examining the way the user applies the product leads to improvement in the product itself. This approach was first tested at the North Island Naval Aviation Depot. . "Total Quality Control" was the key concept of Feigenbaum's 1951 book. 4. and Kaoru Ishikawa also contributed to the body of knowledge now known as TQM.  ORIGINS Although W. as well as NASA space and science programs. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations. The American Society for Quality says that the term Total Quality Management was first used by the U. a book that was subsequently released in 1961 under the title. Quality Control: Principles.S. Armand V. 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. the work of Juran. and Administration. education. and Ishikawa."[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). Naval Air Systems Command "to describe its Japanese-style management approach to quality improvement. Practice. Total Quality Control (ISBN 0070203539). Feigenbaum was developing a similar set of principles at General Electric in the United States at around the same time. Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes. Miryokuteki Hinshitsu – Broadens management concern beyond the immediate product. Joseph Juran. Crosby. Crosby. Atarimae Hinshitsu – Focuses on intangible effects on processes and ways to optimize and reduce their effects.

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

TQM requires a long term commitment for continuous improvement of all processes. The success of TQM demands the leadership of top management and continuous involvement. 5. 3.9  CHARACTERISTICS OF TQM: The characteristics of TQM. TQM is a strategy for continuously improving performance at all levels and in all areas of responsibility. TQM is customer oriented. Responsibility for establishments and improvement of systems lies with the management of an organisation.  POTENTIAL BENEFITS OF TQM: The advantages of adopting TQM system compared to conventional quality system are numerous and are outlined below. . as revealed from above definition are as follows: 1. 4. 2.

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

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

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

13  TOTAL QUALITY MANAGEMENT(TQM) : Total = Quality involves everyone and all activities in the company. it must be a continuous way of life. Where there is an ISO system. Management = Quality can and must be managed. a philosophy of perpetual improvement in everything we do. Quality = Conformance to Requirements (Meeting Customer Requirements).  TQM Compared to ISO 9001 : ISO 9000 is a Quality System Management Standard. TQM is a philosophy of perpetual improvement. TQM = A process for managing quality. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives. The requirements for TQM can be considered ISO plus. about 75 percent of the steps are in place for TQM. Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction and measurement requirements. In short. An ISO implementation is a basis for a Total Quality Management implementation. implementing TQM is being proactive concerning quality rather than reactive.  TQM as a Foundation : TQM is the foundation for activities which include. • • • • • • 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 can and must be managed. 7. Excellence teams . Not Correction 5. Processes. Check (review) 4. 12. Reduce Chronic Waste 6. Measurement and recognition 4. Every employee is responsible for quality. Problems must be prevented. Plan (drive. 11. Pursue a Continuous Improvement Strategy 7. Reduce Variation 9. communicate. Set True Customer Requirements 4. 9. not negotiated. 8. Concentrate on Prevention. 2. Management Commitment 1. Apply to All Functions  Principles of TQM : The Principles of TQM are as follows: 1. support. Everyone has a customer and is a supplier. not just fixed. revise) 13. Know your Customers 3. Goals are based on requirements. Quality must be measured. Suggestion scheme 3. 3. 10. not people are the problem. participate) 3. 6.14 The Ten Steps to TQM are as follows: 1. The quality standard is defect free. Employee Empowerment 1. direct) 2. Training 2. Life cycle costs. 5. not front end costs. Use a Balanced Approach 10. Management must be involved and lead. 4. Quality improvements must be continuous. Use Structured Methodology for Process Improvement 8. Pursue New Strategic Thinking 2. Act (recognize. Do (deploy.

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

All people work in processes. 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: .16  Key to Quality: The key to improving quality is to improve processes that define. produce and support our products.


o Regression process .sampling process is doing . and effect • Your o Scatter knowledge • Histograms 2. The problem is fixed for good. The process is good enough o Control charts . "BRAINSTORM" what is causing the problem.Process o Pareto charts 9. distribution diagrams • Scatter . and B. 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. Continue to monitor the process to ensure: A. Determine what diagrams of the • Control charts commodity past data shows. Determine what relationship change would help change worked between cause (confirmation). return to step 5.sampling 3. Determine • Control diagrams Inference o Control charts what the Charts . 8.18 TQM Process Improvement and Problem Solving Sequence PLAN (PLAN A CHANGE) DEFINE THE PROBLEM 1. Identify the 7. Ensure the fix is embedded in the process and that the resulting process is used.sampling analysis being o Frequency • Scatter processed. Determine what 11. Determine the 10. Define some now • Pareto measurable o Control charts analysis characteristics . the change. Describe the "PROCESS" o Process Flow Analysis's o Flow charts o List of steps 5.sampling ****To ensure continuous improvement. Identify the "Big" problem o Brainstorming o Checklists o Pareto analysis  THE EIGHT ELEMENTS OF TQM: . Recognize that what you are doing is a "PROCESS" IDENTIFY POSSIBLE CAUSES 6.sampling of value to the ****Then make commodity.

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

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

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

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

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

Therefore.24  The Logic of TQMEX: In order to have a systematic approach to TQM. It is more concerned with the business objectives and systems. 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. this should be Step 3. Therefore. it is necessary to develop a conceptual model. and should follow as Step 2. 5-S is the key to total quality environment. logical and yet comprehensive enough for TQM implementation. ISO 9000 is to develop a quality management system based on the good practices in the previous three steps. it should be the first step. The Model also reflects teachings of the contemporary quality gurus. They improve human resources capability to achieve the business objectives. Generally. BPR is concerned with re-defining and designing your business process in order to meet the needs of your customers effectively. The model should be simple. TPM is a result of applying 5-S to equipment based on a sound quality . 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. 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.

Hoshin/Policy Management. The Japanese then extended Deming's teaching to many dimensions of management. you have to start early too. Here are TQM models from the Japanese Society of Quality and the Japan Standards Association that show how extensive their definition of TQM is. We will study these in detail in the course. Therefore TPM should be implemented in Step 5. 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. although it is not simple to make a model simple! Companies starting to implement TQM should follow TQMEX step-by-step. If the above five steps have been implemented successfully. 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. few but the Japanese took Deming seriously. and Cross Function Management. CHAPTER THREE THE ACCEPTABILITY OF TQM  JAPANESE TQM MODEL: At first. The Japanese identify three major dimensions of TQM: Daily Management. Known for his legendary attacks on executives and compassion for the worker. .25 management system. TQMEX is a sequential model which is easy to remember and simple to implement. the organization is already very close towards achieving TQM. In order to maximize your benefits from TQMEX. In fact ISO 9001 requires procedures for process control and inspection and testing equipment which are part of TPM. This is in line with the quality principle of Keep It Short and Simple (KISS). They can be visualized with the following picture.

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

Advertising and selling quality consciousness-Emphasis on changing organizational culture and providing an environment that will enable people to activate and sustain in their own work and in products and services produced by the organistions with the focus on needs of customers. -Today customers avail ATM services 24 hrs -Book airline tickets & check-in over phone -Self-service at fast food restaurant. Administrators for system of quality control. 3.Emphasis on the cost of quality and managerial aspects of organizing the quality. -And many more .He is going to be demanding & keen on having the best services in the shortest possible time & at the minimum cost . 2.Emphasis on technical tools of control charts. 2. The American companies are characterized by: 1. and 3. 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 . Marguardt divides the evolution of quality movement in USA in three periods: 1. A high concentration of industry on relatively few companies. Advocates for SQC. lot inspection and sampling schemes. Stress on promoting share-holders. Each organisation determines independently what it will produce and what quality policies it will adopt. Running the company by professional managers.He will look for solutions that are more specific to his needs thus creating opportunity of many niche market. These features of autonomous organisations and professional management have a considerable impact on the conduct of quality function.27 comprehensiveness of quality management in japan.

-No time delay between the production & delivery of service -A defective product can be replaced but a defective service may create a permanent damage. 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. Banking) CHAPTER FOUR THE ESSENTIALS OF TQM Introduction TQM is the way of managing for the future. -Simultaneity ( promptness ) -Heterogeneity -Unique dimensions of some services (e. 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 .g. 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.

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

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

some of the bad practices must be recognized and corrected. Poor practices To be able to become a total quality organization. or can. I find out what these are? • How can I measure my ability to meet their needs and expectations? • Do I have the capability to meet their needs and expectations? (If not. what must I do to improve this capability?) • Do I continually meet their needs and expectations? (If not. The ideal situation is an open partnership style relationship. These may include: • Leaders not giving clear direction • Not understanding.31 • How do. or ignoring competitive positioning . what prevents this from happening when the capability exists?) • How do I monitor changes in their needs and expectations? Suppliers (internal and external) • Who are my internal suppliers? • What are my true needs and expectations? • How do I communicate my needs and expectations to my suppliers? • Do my suppliers have the capability to measure and meet these needs and expectations? • How do I inform them of changes in my needs and expectations? As well as being fully aware of customers’ needs and expectations. each person must respect the needs and expectations of their suppliers. where both parties share and benefit.

It is a way of planning. 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. as well as demonstrating their commitment. to be successful. strategies and benefits to the people for whom they have responsibility. Only then will the right attitudes spread throughout the organization. effectiveness and flexibility of an organization for the benefit of all stakeholders. It ensures the leaders adopt a strategic overview of quality and focus on prevention not detection of problems. supported by plans and facilities to implement it. and of removing all the wasted effort and energy that is routinely spent in organizations. . organizing and understanding each activity. Whilst it must involve everyone. A fundamental requirement is a sound quality policy.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. All senior managers must demonstrate their seriousness and commitment to quality. and middle managers must. ensure they communicate the principles. it must start at the top with the leaders of the organization.

followed by a strategy. often as a mission statement • Personal involvement and acting as role models for a culture of total quality • Developing clear and effective strategies and supporting plans for achieving the mission and objectives • Reviewing and improving the management system • Communicating. should result in a quality organization. The following is a list of points that leaders should consider. 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. combined with a TQM approach. Effective leadership starts with the development of a mission statement. values and objectives. motivating and supporting people and encouraging effective employee participation The task of implementing TQM can be daunting. which is translated into action plans down through the organization. • 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 .33 Leaders must take responsibility for preparing. plus take part in regular improvements of it and ensure it is understood at all levels of the organization. These. The 5 requirements for effective leadership are: • Developing and publishing corporate beliefs. with satisfied customers and good business results.

standards based only on numbers. is an important part of the quality journey. 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. norms. The culture in any organisation is formed by the beliefs. and using that knowledge to successfully map the steps needed to accomplish a successful change. A culture change. rules and the “climate”.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. from one of acceptance of a certain level of errors or defects to one of right first time. . e. Understanding the culture of an organisation. as discussed in the section on People. every time. behaviours. dominant values.g. 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.

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

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

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

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. The proposal-to-policy process therefore impacted the greatest number of customers. followed by a structured discussion to arrive at a consensus on the two most important themes -. The program was conducted for the senior management team of the company.1) Selecting the theme: A meeting of the senior management of the company was held. 1. and therefore had few claims to process so far. The key process stages were mapped: . 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. Define the Problem 1.customer service and sales productivity. rapidly expanding company in the financial services sector with no previous experience with Total Quality Management (TQM). Step 1. "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. "Between what stages do we consider turnaround?" Perceptions varied. was to show them how TQM concepts worked in practice before they committed resources for a company-wide program. cases. The demonstration project. The quality project began with a two-day introductory awareness program covering concepts. "Reducing the Turnaround Time from an Insurance Proposal to Policy" was selected as the most obvious and urgent problem.38 The work described in this case study was undertaken in a young. implementation strategies and imperatives of TQM. Under the customer service theme. The company was young. which used the Seven Steps of Problem Solving (similar to DMAIC). Brainstorming produced a list of more than 20 problems. An appropriate cross functional group was set up to tackle this problem. with each person thinking about the turnaround within their department. The list was prioritized using the weighted average table.

Later the entire cycle could be included. individual group members were asked to think as customers -. 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. the rest of us bring data" the group was asked to collect data and establish reality. Customer desire: What was the turnaround desired by the customer? Since a customer survey was not available.39 Several sales branches in different parts of the country sent proposals into the Central Processing Center. Their perception averaged out six days for the required turnaround. It averaged: Non-Medical Policies Medical Policies 17 days 35 days Invoking the slogan from the awareness program "In God we trust. The perception of the length of turnaround by different members of the team was recorded. 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). .

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

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.


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

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.from 118 days to 37 days. 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. The project objective of 50 percent in the first stage has been achieved. Customer reaction: Sales management and sales agents (internal customers) clearly noticed the difference. The corresponding all-India reduction was from 118 days to 71 days -. "If you give such service I will give you the next policy also!" Adoption of a similar process at the CPC and the model branch for medical policies has already reduced the average+3 sigma of turnaround time by 70 percent -.a 60 percent reduction. Future Actions . A quality improvement story was compiled by the project Leader for training and motivating all employees.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 Pareto Charts / Analysis (designed by Vilfredo Pareto) · Rates issues according to importance and frequency by prioritizing specific problems or causes in a manner that facilitates problem solving. such as most frequent complaint. to track high and low points in its run. · Can be scheduled over select periods of time to track changes. shifts and patterns. such as accrual rates. etc. most commonly purchased preservation aid. . as a before and after analysis of a process change. and ultimately identify trends. They can also be created in retrospect. in order to measure which have priority. · Identify groupings of qualitative data.59  Run Chart · Follows a process over a specific period of time.

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

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

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

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

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

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

Each product undergoes extensive. improve quality and reduce time to market for new products. the quality and consistency of systems could vary depending on how closely each tester followed the installation instructions. In 2004. Consider. With more than 5. Of greatest concern was the time and skill required to build each test environment. “We have to test every software product in a multiplicity of environments to mitigate the risk of problems for our customers. the IBM team responsible for testing Tivoli software prior to its release. staff often didn’t have the time to remove all software from each server every time a new test was . And because this process was manual. a tester often had to sit at a workstation or server. 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 given the tedious nature of this process.66 heterogeneous operating system platforms. mandatory testing across the supported platforms. However.” explains Phil Buckellew. This meant that specialized domain experts were often reduced to menial tasks to ensure that systems were installed and configured properly. from bare metal to full installation. IBM Tivoli Development Labs. Manual processes also made it necessary for each tester to be familiar with the particular operating system being installed.500 heterogeneous servers spread across the lab in Austin. the organization launched an initiative to improve the quality and efficiency of its software release management process. Each time operating system and middleware software were installed.5 to 2. Why Become an On Demand Business? Streamlining the building and repurposing of test systems helps lower costs.5 hours. Texas. Each product undergoes extensive. A typical operating system deployment required between 1. optimizing resource utilization was difficult given the time and effort required to set up a test environment. mandatory testing across the supported platforms. for example. program director. Automating information technology and business processes is helping organizations worldwide realize enormous savings. Tivoli Development Labs develops enterprise-class software that supports numerous heterogeneous operating system platforms. Tivoli® Development Labs. inserting CDs and answering installation questions.

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

we’ve been able to easily implement best practices for software provisioning. Doing so has helped the team minimize human errors. testers have more time to focus on product innovation and code quality.” 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. is helping us better align our testing processes with business goals and significantly improve operational efficiency. installing and uninstalling software and patches.” Consistent. And because the solution enables the organization to automate the set up of new test environments during non business hours. Ultimately. configuring servers. “By employing IBM IT Service Management software. “This. such as incorrectly setting a registry value or forgetting to remove an old file that may cause a software conflict. As a result. and performing bare-metal builds. . Tivoli Development Labs has automated more than 800 tasks that were once performed manually across 415 systems. This includes tasks for allocating and removing servers from the test environment.68 control who had access to which servers. the organization estimates that the savings associated with maintaining the test infrastructure will reach more than $2 million a year as it expands use of the solution to more labs. And by freeing up resources from mundane tasks. cost-effective software deployment Using Tivoli Provisioning Manager software.” says Buckellew. Tasks that once required several hours to perform under constant supervision can now be completed in just five minutes.200 person-hours saved over the first seven months of the project. in turn. lab staff can rapidly identify the source of code defects and retest with confidence. with more than 1. and increase the accuracy of the testing environment. lab staff spend their time testing each software product more quickly and more often for greater test coverage. The Tivoli Development Labs team reports that Phase 1 of the project resulted in a 94 percent reduction in attended time to provision software.

this would be their view of quality.” says Buckellew. 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. one house-owner may be happy with a standard light bulb . Not all customers have the same requirements so two contrasting products may both be seen as quality products by their users. Another customer may want an energy efficient light bulb with a longer life expectancy . 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. “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. For example.69 “Faster. .they would see this as a quality product. unattended installs allow our existing test teams to complete more tests in less time. Quality can therefore be defined as being fit for the customer's purpose. rather than preparing environments.

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

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

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

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

in addition. a modern plasma screen television. The Quality Manager can be trained in ways of implementing the standard. for example. parts and finished goods from across the globe.e. These separate components will then be assembled into a sub-assembly i.e. many businesses have long supply chains in which they source materials. If it meets the standard a certificate will be awarded. This is subject to regular reviews. Some of the components may come from India. Implementing a quality system – external Internal systems are ones that are built inside an organization. However. 5. 6.74 4. who will assess the effectiveness of the QMS. it informs an assessor. part of the finished . suppliers. External systems are those that involve people outside the organization . others from China. Today. The QMS is then created and put into practice.g. When the organization feels confident it is meeting the standard. or Eastern European countries. modern businesses need to build external systems. Take.

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

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


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