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Total Quality Management....1

Total Quality Management....1

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Published by: Gaganpreet Kaur on Jan 29, 2012
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Total quality management (TQM

Total quality management is a management approach centred on quality, based on the participation of an organization's people and aiming at long term success (ISO 8402:1994). This is achieved through customer satisfaction and benefits all members of the organization and society. In other words, TQM is a philosophy for managing an organization in a way which enables it to meet stakeholder needs and expectations efficiently and effectively, without compromising ethical values.
TQM is a way of thinking about goals, organizations, processes and people to ensure that the right things are done right first time. This thought process can change attitudes, behaviour and hence results for the better.

What TQM is not
TQM is not a system, a tool or even a process. Systems, tools and processes are employed to achieve the various principles of TQM.

What does TQM cover?
The total in TQM applies to the whole organization. Therefore, unlike an ISO 9000 initiative which may be limited to the processes producing deliverable products, TQM applies to every activity in the organization. Also, unlike ISO 9000, TQM covers the soft issues such as ethics, attitude and culture.

What is the TQM philosophy?
There are several ways of expressing this philosophy. There are also several gurus whose influence on management thought in this area has been considerable, for example Deming, Juran, Crosby, Feigenbaum, Ishikawa and Imai. The wisdom of these gurus has been distilled into eight principles defined in ISO 9000:2000.

The principles of quality management:
There are eight principles of quality management:


customer-focused organization - organizations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations


leadership - leaders establish unity of purpose, direction and the internal environment of the organization. They create the environment in which people can become fully involved in achieving the organization's objectives


involvement of people - people at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit


process approach - a desired result is achieved more efficiently when related resources and activities are managed as a process

Most companies today have chosen to adopt a TQM program that¶s patterned after an already established TQM model. Deming. and sustenance of good results (standardization). understanding and managing a system of interrelated processes for a given objective contributes to the effectiveness and efficiency of the organization y y continual improvement . everyone within an organization must practice TQM in the structured manner set forth by management. Its main objective is sustained (if not progressive) customer satisfaction through continuous improvement. 2) the company plans the activities needed (both day-to-day and long-term activities) to meet these customer needs.. There is no standard or hard-line procedure for implementing TQM.Be Customer focused: Whatever you do for quality improvement. TQM may be considered as a collection of principles and processes that have been proven to be effective in business quality management over time. and resources of an organization in order to satisfy its internal and external customers. However. products.identifying. ONLY customers . etc. and may be iterated indefinitely for continuous improvement. remember that ONLY customers determine the level of quality. y y y y y y y y Principles Of TQM 1. and services. the ISO Series of Standards.g. processes. 4) the company implements systems to further improve its processes. Note that Steps 1-4 above constitute a cycle.y system approach to management . i.continual improvement is a permanent objective of an organization factual approach to decision making .e. Ishikawa. breakthrough achievement. It goes back to the teachings of Drucker. Whatever you do to foster quality improvement. A very simple model of TQM consists of the following steps: 1) the company reviews the needs of its customers and if these are being delivered by the company.effective decisions are based on the logical and intuitive analysis of data and information y mutually beneficial supplier relationships . Every company can practice TQM in a manner it sees best for its organization. who each have studied and developed ideas for improving organizational management. which is accomplished by systematic methods for problem solving. 3) the company establishes and stabilizes the processes required to deliver the products and services needed by the customer. Juran. integrating quality into processes management.. a company¶s TQM program must always be structured and internally standardized. the Deming Application Prize. etc. the Malcolm Baldrige Criteria for Performance Excellence. e. training employees.mutually beneficial relationships between the organization and its suppliers enhance the ability of both organizations to create value y Total Quality Management is a structured system for managing the quality of products. as well as its suppliers.

6.Continual Improvement: Using analytical. 3. and creative thinking to become more efficient and effective. An integrated business system may be modeled by MBNQA or ISO 9000 5.Strategic and systematic approach: Strategic plan must integrate quality as core component..Fact Based Decision Making: Decision making must be ONLY on data. . 7. 4. you provide the proper environment.Process Centered: Fundamental part of TQM is to focus on process thinking.determine whether your efforts were worthwhile.Integrated system: All employee must know the business mission and vision. 2-Insure Total Employee Involvement: You must remove fear from work place.. then empower employee. not personal or situational thinking. quality tools.

customer satisfaction. Below we list generic models for implementing total quality management theory: 1.2. 8. 4.Determine the critical processes that produces those products or services.Evaluate progress against plan and adjust as needed. training. 6.Create process improvement teams. 5.Train top management on TQM principles. 3. TQM Implementation Approaches You can't implement just one effective solution for planning and implementing TQM concepts in all situations. 2. 7. .Identify and prioritize customer needs and determine products or service to meet those needs. and quality management system.Communication: Communication strategy. method and timeliness must be well defined. and providing resources to the team.Managers supports the efforts by planning.Assess the current: Culture.3.Management integrates changes for improvement in daily process management.Top management determines the core values and principles and communicates them. 9. 10.8. After improvements standardization takes place.Develop a TQM master plan based on steps 1.

statistical process control. and quality function deployment. Establish an employee reward/ recognition process. 3.The guru approach: Use the guides of one of the leading quality thinker. (This article is based on the said document). Use quality circles. 2 . Link to Useful Quality Management Resources .Organization model approach: The organization use benchmarking or MBNQA as model for excellence.Provide constant employee awareness and feedback. taguchi method. It is necessary to identify Quality Management as a distinct discipline of management and lay down universally understood and accepted rules for this discipline. 4. Strategies to develop TQM 1-TQM elements approach: Take key business process and use TQM Tools to foster improvement.Japanese total quality approach: Companies pursue the deming prize use deming principles The Eight Principles of Quality Management Preface: Quality management is becoming increasingly important to the leadership and management of all organisations.11. The latest revision (version 2008) of ISO9000 standards are based on these principles. The ISO technical committee working on the ISO9000 standards had published a document detailing the quality management principles and application guidelines.

delivery.. Continual Improvement 7. Principle 1 . 1. 3. and 5. System Approach to Management 6. They should create and maintain the internal environment in which people can become fully involved in achieving the organisation's objectives. Process Approach 5. Mutually Beneficial Supplier Relationships. Measure customer satisfaction & act on results.Definition of Quality Management Principle: "A quality management principle is a comprehensive and fundamental rule / belief.." .. 4. Leadership 3. etc. meet customer requirements and strive to exceed customer expectations". Manage customer relationships. Steps in application of this principle are . aimed at continually improving performance over the long term by focusing on customers while addressing the needs of all other stake holders". suppliers. price. Understand customer needs and expectations for products.. local communities and society at large) needs and expectations. 1. for leading and operating an organisation. people. dependability. Involvement of People 4. Top Principle 2 . Communicate these needs and expectations throughout the organisation. 2. Ensure a balanced approach among customers and other stake holders (owners. Customer-Focused Organisation 2. Factual Approach to Decision Making and 8.Leadership : "Leaders establish unity of purpose and direction of the organisation.Customer-Focused Organisation : "Organisations depend on their customers and therefore should understand current and future customer needs. The eight principles are . Now let us examine the principles in detail.

2. 11. Identify and measure the inputs and outputs of the process.Process Approach : "A desired result is achieved more efficiently when related resources and activities are managed as a process.. 4. encourage and recognise people's contributions. Educate. Understand and respond to changes in the external environment. local communities and society at large. 5. Be innovative in furthering the organisation¶s objectives. people. 10. Actively seek opportunities to make improvements.. Define the process to achieve the desired result. Establish a clear vision of the organisation's future. Help people derive satisfaction from their work. knowledge and experience. 2.. train and coach people. 1. Top Principle 3 . and enhance competencies. Implement a strategy to achieve these goals and targets. 8. Provide people with the required resources and freedom to act with responsibility and accountability. 2.. 1." Steps in application of this principle are . 5. 4. Consider the needs of all stake holders including customers.Involvement of People : "People at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisation's benefit". local communities and society at large. 3.Steps in application of this principle are . Freely share knowledge & experience in teams. Promote open and honest communication. and 8. 6. 6.. Identify the interfaces of the process with the functions of the organisation. Focus on the creation of value for customers. and 12. Establish shared values and ethical role models at all levels of the organisation. Build trust and eliminate fear. Be proactive and lead by example. 3. 1. 7. Set challenging goals and targets. . suppliers. 9. 3. 7. Steps in application of this principle are. Inspire. owners. Accept ownership and responsibility to solve problems. Make people enthusiastic and proud to be part of the organisation.. Improve the way of representing the organisation to customers. Top Principle 4 .

6. methods. 2..Continual Improvement : "Continual improvement should be a permanent objective of the organisation. 6. Continually improve the system through measurement and evaluation. activities. 2. Continually improve the efficiency and effectiveness of all processes.4. 4. processes and systems an objective for every individual in the organisation. authority. 3. consequences and impacts of processes on customers.. Evaluate possible risks." Steps in application of this principle are . suppliers and other stake holders of the process. and 7. training needs. Use periodic assessments against established criteria of excellence to identify areas for potential improvement. Structure the system to achieve the objective in the most efficient way. 1. Apply the basic improvement concepts of incremental improvement and breakthrough improvement. Define the system by identifying or developing the processes that affect a given objective. control measures. equipment. Provide every member of the organisation with appropriate education and training. information. and 5. suppliers and other stake holders of the process. Promote prevention based activities. 3. understanding and managing a system of interrelated processes for a given objective improves the organisation's effectiveness and efficiency.System Approach to Management : "Identifying. flows. consider process steps.and . Top Principle 5 . Top Principle 6 . materials and other resources to achieve the desired result. on the methods and tools of continual improvement such as the PlanDo-Check-Act cycle . 5. 4. Make continual improvement of products. 7." Steps in application of this principle are .. Establish measures and goals to guide and track improvements. process re-engineering. Establish clear responsibility. problem solving . When designing processes. Understand the interdependencies among the processes of the system. Estimate the resource requirements and establish resource constraints prior to action. 1. and process innovation. Identify internal and external customers. and accountability for managing the process. 5..

5. Jointly establish a clear understanding of customers' needs. Recognise improvements. Understand the value of appropriate statistical techniques. Top Principle 7 . and a mutually beneficial relationship enhances the ability of both to create value. 6.8. Analyse the data and information using valid methods. Identify and select key suppliers. eConsulting services. 2. and 5. Ensure that the data and information are sufficiently accurate.Mutually Beneficial Supplier Relationships : "An organisation and its suppliers are interdependent. Make decisions and take action based on the results of logical analysis balanced with experience and intuition. 1.Factual Approach to Decision Making : "Effective decisions are based on the analysis of data and information. and." Steps in application of this principle are . Recognise supplier improvements and achievements. 1. 3.. Establish supplier relationships that balance short-term gains with long-term considerations for the organisation and society at large. 4. . Share information and future plans.. reliable and accessible. 2. 'Do-it-Yourself' System Documentation Kits. Top Useful Quality Management Resources We offer an array of products and services in the realm of quality management. There are 'Learn-andTeach' Training kits. Computer Software Packages.. You may click here for the current price list. Please visit our eShop to know more about these resources and purchase them right away." Steps in application of this principle are . Initiate joint development and improvement of products and processes. and 7. Take measurements and collect data and information relevant to the objective. 3. Create clear and open communications. Top Principle 8 .. 4.

Beyond that. Customer feedback and participation in the process is essential. measure and "design in" the product and service attributes that the customer cares about. customers have expectations. management must make sure that everybody knows their customers.. Total quality management is a commitment to the continuous improvement of work processes with the goal of satisfying internal and external customers. have basic requirements which must be satisfied if they are going to do business with your organization. If these three principles are understood and applied at all levels of the organization. first time and every time. It¶s the customer that matters in TQM. CUSTOMER FOCUS First. This then becomes a continuous process as each level of performance creates higher expectations. both internal and external. C ustomers are only satisfied if their requirements are consistently met. as well as specific tools and techniques. it is essential that everybody can "see" the ultimate customer using their products and services. the process is only the means to satisfying the customer. How do we know what these attributes are? As a start. It is extremely gratifying and rewarding to be associated with an organization that consistently delights its customers. the customer focus will be pervasive. that must be met if they are going to desire to continue to do business with you. Organizations which have become adept at TQM are able to go well beyond asking the customer to anticipating the future needs and desires of their customers. What does this mean and how do we go about accomplishing it? We can use three principles in creating this focus.S. Further. The only determination of "quality" that really matters is the customer's perception. Second. A key principle of TQM is intense focus on customers and their satisfaction. TQM provides the organizational focus and mind set. to ensure meeting customer requirements. we can certainly ask the customer. both internal and external. Employees at all levels of the organization should be given opportunities to observe the customer using their products and services. Formal and continuous monitoring will keep the organization focused. delight their customers by consistently exceeding both requirements and expectations. we must meet these requirements in a timely and cost effective manner. All employees should understand how each process used in producing products and services adds value for the customer. we must continually monitor customer satisfaction. APPLYING TQM TO INFORMATION SYSTEMS . both expressed and implied. must identify. To be competitive. I. LEVELS OF CUSTOMER SATISFACTION Customers. this is only a start. These represent the absolute minimum that must be done. or "world class" organizations. However. Third. Top notch.

They include. defined requirements.To successfully apply TQM to I. S. The computer operator must be able to accurately print paychecks and payroll reports if the requirements of users and employees are to be met. clerks in the Personnel and Accounting departments are users of a Payroll System. impact the external customer. are to meet the requirements of their customers. the maintenance programmer must be able to implement necessary changes over time if the Payroll System is to continue to meet the needs of other customers. and they may have very specific requirements. organization must be thorough in identifying all potential customers for an information system if they are to have any possible chance of meeting customer requirements. in turn. Likewise. . they certainly have requirements. These individuals are most often different from the users of the system. of course. auditors and providers of employee benefits. customers. They believe that "Zero Defects" is totally unrealistic.. Who is the Customer? Customers for an information system are many and varied. knows exactly what these requirements are? Many systems development professionals believe that TQM simply cannot apply to them. The I. first time and every time. all users are customers. Those in management who authorize." and are normally easy to identify. Strategic systems and systems which have direct external customer interface. Employees receive their paychecks from a Payroll System. budget and approve information systems are customers. S. to name just a few. including the customers. those individuals who directly use the system to perform their work tasks. Many customers may receive outputs from an information system. For most systems. we must concentrate on three things: y Identify all our customers. and while they may never interact directly with the system. Without their participation. request. when no one.S. and increasingly direct. professionals be expected to meet customer requirements. y Deliver information products and services which meet. For example. there would be no systems work to perform. What Are The Customer's Requirements? This is the area which often presents an insurmountable hurdle to implementing TQM in Information Systems. Many levels of management may need to review and approve the decision to implement a new Payroll System. the organization's external customers are at least indirect. These are internal customers whose requirements must be met if they. y Define customer requirements and expectations. For TQM purposes. Defining customer requirements is usually the most difficult task we face. These are the "users. Vendors of information systems and services constantly interact directly with external customers. They never develop exactly the same system twice. both internal and external. as do banks. Government agencies have requirements for a Payroll System. or exceed. Those individuals who must operate and maintain a system are also customers and have specific requirements. How can I. such as Electronic Data Interchange (EDI) in Purchasing or Order Processing. These are indirect customers.

This dilemma is usually addressed by developing systems which automate the organization's currently existing manual processes. Worse. They work with customers on joint problem solving teams. They participate with customers in product design and development. This historical approach to systems development goes a long way to explaining the need for the massive reengineering projects we see in many organizations . They are aware of their customers' strategic direction. so the thing to do is code something and see what happens. They conduct extensive surveys. there is no way to predict what the result will be on our next project. First. Second. I. Lacking these processes. How Do We Ensure That Requirements. repeatable processes which must be in place to ensure quality in systems development and maintenance." Fortunately. .I once had a sincere Programmer/Analyst tell me: "You never know what the user's requirements are until you get into the testing phase.finally we are beginning to truly leverage information systems to improve business processes. S. Sometimes we will win. Worse. You cannot invest too much time in learning about your customers and the business. They have excellent intelligence about their competitors. but more often we will fail. management cannot be concerned primarily with technology if they are to meet customer requirements. Information Systems organizations have been too isolated from the mainstream of the business enterprises they serve. systems efforts commonly fail to produce usable results. The problem with this approach is that automation of manual processes does not add significant value nor make use of the greater capabilities of information technology. meeting customer requirements is a pure crap shoot. measurable. TQM offers tools and techniques which can be used in conjunction with sound systems analysis work to assist us in properly and completely defining customer requirements. Can Be Met? The only method which produces quality information systems on a consistent basis is a "Life Cycle" approach. system developers commonly lack sufficient knowledge of the business functions a system must support to define how the system must be configured. the customer/user may have only the vaguest idea of what an information system should look like prior to actual implementation and use of that system. where manual processes do not exist or are poorly understood by the users. How can we make this process easier and less error prone? KNOW YOUR MARKETS Organizations with mature TQM functions have become proficient at satisfying and delighting customers. They invest a great deal of effort in learning about their customers. Once Known. Requirements definition is so important and so difficult. In our last column we discussed those stable. DEFINING CUSTOMER REQUIREMENTS Why are information systems requirements so difficult to define? Why do documented requirements often turn out to be not even close to defining the system which ultimately gets implemented? There are two major reasons why requirements definition is so difficult.

but also include other systems. has said. the most famous of the quality gurus. Do not assume that your customers/users possess this theoretical knowledge. theoretical understanding of the business functions and familiarity with existing systems (as described in the preceding paragraphs). I used an example of the Analyst who was proud to be able to code the solution before anyone had defined the problem. and. In 1975. Interviews should therefore take place well into the requirements development process. systems used by competitors. Discuss problems with users. Get users to talk about their jobs ± the challenges and opportunities of their business functions. Study Existing Systems Use existing systems as a starting point in developing requirements for a new system. Brown and Company. "Experience teaches nothing unless studied with the aid of theory. They should be used to mutually define problems and opportunities for information technology application. Edwards Deming. These may be systems you have worked with in the past. Analyze The Using Environment. Clarify issues which were identified in observing the environment. Interviews should not take the course of asking customers what they want.Obtain Theoretical Business Knowledge In his book. Analyze the system to be replaced. Interview Customers/Users. Observation of this environment. actual working experience in the environment will be invaluable in developing information requirements. . Rethinking Systems Analysis and Design (Boston: Little. Analysis very often stops at this point. The best analysts can see similarities between systems used for different business purposes and extrapolate these to apply to the existing environment. Make suggestions and observations based on theoretical knowledge and familiarity with other systems. 1982). However. I delivered a speech at an Information Systems Conference where I discussed promoting Programmers to Analyst positions. Prototyping. The junior analyst typically begins by asking the customer/user what is wanted. You can't develop good accounts payable systems without a knowledge of accounting." It is very often sad and dismaying to encounter the absence of even basic theoretical knowledge among practitioners about the business functions they are involved in every day of their working lives. Gerald Weinberg talks about the time it takes someone who knows nothing about a field to amass knowledge comparable to that of an entry level graduate student in that field. systems available from vendors. The period is somewhere between one to three months. if possible. You can't develop good inventory management systems if you don't know inventory management. this is true only if the analyst comes to this task armed with sufficient knowledge of the business. As W. The most logical and complete method for obtaining requirements is from a complete analysis of the environment within which the system must be used.

If this weren't true. . These TQM tools are tremendously powerful in getting all parties to focus on the requirements of the business and its ultimate customers. Where a model does not exist for a system. Rapid Analysis. After all. two cautionary notes in using prototyping. Prototyping is a fall back position in requirements definition. Tools.HOW TQM CAN HELP TQM tools and techniques can be invaluable in the analyst's arsenal when developing information systems requirements. resist the prevalent trend to use prototyping as a substitute for business knowledge. TQM can help the organization maintain the focus necessary to ensure that systems. they still had not delivered a satisfactory system. Concentration on elimination of root causes of problems and on such TQM concepts and team building. When applied within the Information Systems function. as developed. just because you can prototype something doesn't mean you can build it. The software firm budgeted one year and $1 million to turn the prototype into a working system. must fall back on an iterative approach to information systems requirements definition. Second. you wouldn't need to do the prototyping. This is true of Structured Analysis. accounting. This was totally new. production control or other business functions. Continuous process improvement. thereby supposedly avoiding the expensive systems development fiascoes we have built in the past. allowing the Analyst/Computer Technician to work more with the computer than with the business functions. prototyping is a lot more fun than studying inventory management. it would revolutionize a whole segment of their business. Three years and almost $4 million later. However. to the computer technologist. Don't be dismayed by repeated failures and throwaways. First. JAD. TQM provides a basis for a common language in problem definition and problem solving. Customers went wild. SUMMARY . techniques and methodologies are always very poor substitutes for business knowledge during requirements definition. elimination of the cause of errors make the process visible and responsive. you are sailing in uncharted waters. Prototyping is most useful in an environment where no one knows the answer. The firm lacked the system development methodologies to ensure that they could develop quality systems once they had a defined prototype. We are fortunate to have software tools available that allow us to build prototypes and mock ups quickly and relatively inexpensively. the analyst. analysis of existing systems. Last year. empowerment and continuous process improvement can ensure that information systems address the "true" customer requirements rather than slap a band aid on symptoms of problems. constant feedback. I worked on TQM principles with a software firm that introduced a prototype in 1989. in conjunction with the customer. It can be the latest and greatest way of avoiding the previously described analytical work. as well as prototyping.Prototyping seems to be all the rage just now. meet customer requirements first time and every time. Work which is not directed at meeting customer requirements can be identified early in the systems development process and corrective action can be initiated. analysis of the business environment and user interviews. Maybe we should consider others for the job of requirements definition. Always be aware that early attempts are likely to miss the mark. not the answer in and of itself. Sure. where theoretical knowledge is lacking (because for whatever reason it is unobtainable) or where the environment in which the system must operate cannot be observed (because presumably it does not yet exist).

n . TQM also provides enabling tools and techniques which. It is a philosophy of doing business. understood and agreed upon. TQM is not a program or a methodology.Applying TQM to the system development process can produce immediate and dramatic dividends.first time and every time. but it can only be undertaken once we know what those requirements are. Fortunately. when consistently applied. The process of developing systems which meet customer requirements will not be easy. Start by identify all your customers. ensure that Information Systems organizations can meet customer requirements . Then ensure that customer requirements are completely defined.

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