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TOTAL

QUALITY
MANAGEMENT
A PROJECT REPORT ON
TOTAL QUALITY MANAGEMENT
IN
CGI Information Systems & Management Consultants Pvt. Ltd.

SUBMITTED BY

RADHIKA TIMIR KURAMBHATTI

BACHELOR OF MANAGEMENT STUDIES

SEMISTER V

ACCEDEMIC YEAR 2008-2009

UNDER THE GUIDENCE OF

PROF. MR.KAILASH CHITNIS

SUBMITTED TO

UNIVERSITY OF MUMBAI

DATE OF SUBMISSION
27-SEP-2008

K.G.JOSHI COLLEGE OF ARTS


AND
N.G. BEDEKAR COLLEGE OF COMMERCE
AND MANAGEMENT STUDIES
Chendani Bunder Road, Thane 400601
Tel 022-2533 2412
K.G.JOSHI COLLEGE OF ARTS

AND

N.G. BEDEKAR COLLEGE OF COMMERCE

AND MANAGEMENT STUDIES

DECLARATION

I Radhika Timir Kurambhatti, student of Joshi-Bedekar College of T.Y.BMS


(SEM V) hereby inform that I have completed this project on Total Quality
Management in CGI in the academic year 2008-2009. The information
submitted is true and original to the best of my knowledge.

Signature

Radhika Timir Kurambhatti


ACKNOWLEDGEMENT

It gives me great pleasure to prepare project report on Total Quality


Management in CGI and present it to K.G.Joshi College of Arts and N.G.
Bedekar College of Commerce and management studies affiliated to Mumbai
University. I am very thankful to Prof. Mr. Kailash Chitnis for providing valuable
guidance and advice from time to time.

I would like to thank Mr. Vinay Thaly (Director Consulting Services) and
Shantanoo Joshi (Consultant).

This report is the combined support of all above mentioned and without whom
the project could not be completed.
EXECUTIVE SUMMARY

The project is on Total Quality Management in CGI.

First chapter addresses Topic, Aims, Objectives, Scope and regarding strategy
followed

Chapter Two explains about Definition & Evolution of Quality and about
Contribution of Quality Guru's

Concept of TQM, Tools & Techniques of TQM and Quality Circles are
addressed in Chapter Three.

Chapter Four provides information on CGI and their strategy

How to CGI has implemented TQM is explained in Chapter Five

Project Analysis and Recommendations are concluded in Chapter Six and


Seven respectively

Annexure, Bibliography & Webliography are addressed in last chapters


PROJECT CONTENTS

Chapter 1 - Project Introduction


Topic
1
Aims & Objectives
1
Scope of Project
2
Strategy followed to execute Project
2

Chapter 2 -Preface
Quality Definition
3
Quality Evolution
4
Contribution of Quality Gurus
05 - 11

Chapter 3 -Introduction to Total Quality


Management (TQM)
12 - 13
Concept of TQM Tools & Techniques of TQM
14 - 19 20 - 28
Quality Circles
Chapter 4 -CGI's TQM strategy
About CGI
29 - 31
TQM strategy
32 - 35

Chapter 5 -TQM implementation in CGI


Definition and Establishment of
36 - 37

Quality System Management (QSM)

Usage of Quality System


37 - 38

Management (QSM)

Monitor and Improve Quality


38 - 39

System Management (QSM)

Chapter 6 -Project Analysis


Advantage of TQM
40 - 42
Limitations of TQM
43 - 44
Chapter 7
-Recommendations
45 - 46
Chapter 8
-Annexure
47 - 48

Webliography
Chapter 9 -Bibliography 49
&
CHAPTER 1
PROJECT INTRODUCTION
PROJECT INTRODUCTION

Topic

Understand the concept of Total Quality Management and to see how it is


implemented in IT Company

Aims & Objectives

To plan the project in detail

To know the background of TQM To understand the concept of TQM To get


well versed with TQM

To see whatever we have learned till now, how that is really getting
implemented in IT industry

Compare the results with theory Analyze the project

Recommends suggestions, if any Provide learning of project

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1
Scope of Project

The scope is limited to implementation of TQM in CGI through ISO 9001 , CMMi
(which mainly covers majority of Six Sigma concepts ) and through their internal
quality systems.

Strategy followed to execute Project

Prepare detailed activity list Provide effort and cost

Prepare dependency plan based on assigned activities Implement the activities

Revise the plan

Document the learning


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CHAPTER 2

PREFACE
Quality Definition

Definition

QUALITY means Fitness for Use as per Dr. Juran. The components are said to
possess good quality, if they work well in the equipment for which they are meant.

It is a relative term, generally used with reference to the end use of a product.

QUALITY is the distinguishing feature or Grade of the product in appearance,


performance, life, reliability, taste, odor and maintainability etc.

QUALITY is Degree of Preference to which a specified product is preferred


over competing products of equivalent grade. This is based on comparative tests
by the customers and is normally called customer preference.

QUALITY is a measure of the Degree of Excellence of the product.

QUALITY is Conformity to Requirements (Philip Crosby) and is concerned


with how well a product conforms to design and other specifications.

A short and widely accepted definition of today for QUALITY is Customer Delight
which aim to meet the following:

Stated needs (in simple words called Satisfiers)

Unstated needs (in simple words called Dis - Satisfiers) Expectations (in simple
words called Delighters)

According to Deming, QUALITY should be aimed at fulfilling the needs of the


customer, present and future.
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Quality Evolution

Phase
Quality
Quality
Quality
Total Quality

Measurement
Control
Assurance
Management

Scope
Products
Raw
Raw Material
Raw Material

Material
& Products
& Products &

& Products
&
All Process

Process

Area of
End of Line
End of Line
Online
Before the beginning

Action

System
Appraisal
Appraisal
Appraisal
Prevention

Prevention
Appraisal

Function
Inspection
Inspection
Inspection
Plan, Control,

Control
Analysis
Improve and Audit

Status
Operators
Supervisor
Manager
General
Manager
or

Vice President

Reporting
Production
Works
General
Managing
Director
or
Supervisor
Manager
Manager
President

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Contribution of Quality Gurus

A Guru, by definition, is a good person, a wise person and a teacher. A quality


Guru in addition to having these characteristics, will be, introducing , innovating
and implementing concept and approach to quality within business that will make a
major and lasting impact or give value for money or more Returns on
Investment(ROI). We cannot move ahead without addressing their contribution to
world of quality. There have been three groups of Gurus since the 1940s:

Early 1950s Americans who took the messages of quality to Japan

Late 1950s Japanese who developed new concepts in response to the Americans

1970s-1980s Western Gurus who followed the Japanese industrial success It is


beyond the scope of this project to go into nitty-gritty on each of the Gurus, their
philosophies, teachings and tools; however, a brief overview of their contribution to
the quality journey is given, supported by several references.

W Edwards Deming - The Americans who went to Japan, placed great


importance and responsibility on management, at the individual and company
level, believing management to be responsible for 94% of quality problems. His
fourteen point plan for TQM is a complete philosophy of management that can be
applied to small or large organizations in the public, private or service sectors:

Create constancy of purpose towards improvement of product and service

Adopt the new philosophy. We can no longer live with commonly accepted levels
of delay, mistakes and defective workmanship
Cease dependence on mass inspection. Instead, require statistical evidence that
quality is built in

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Improve the quality of supplies. End the practice of awarding business on the basis
of price
Continuously improve production. Find problems. It is managements job to work
continually on the system
Train and educate all employees. Institute modern methods of training on the job
Supervision must help people. Institute modern methods of supervision of
production workers, The responsibility of foremen must be changed from numbers
to quality
Drive out fear, so that everyone may work effectively for the company

Eliminate boundaries. Break down barriers between departments

Eliminate numerical goals, posters and slogans for the workforce asking for new
levels of productivity without providing methods
Eliminate work standards that prescribe numerical quotas

Let people be proud of their work. Remove barriers that stand between the hourly
worker and their right to pride of workmanship
Encourage self-improvement. Institute a vigorous program of education and
retraining
Commit to ever improving quality. Create a structure in top management that will
push on the above points every day
The Original Quality Gurus

Deming also encouraged a systematic approach to problem solving and promoted


the widely known Plan, Do, Check, Act (PDCA) cycle. The PDCA cycle is also
known as the Deming cycle, although it was developed by a colleague of Deming,
Dr Shewhart.
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It is a universal improvement methodology, the idea being to constantly improve,


and thereby reduce the difference between the requirements of the Customers
and the performance of the process. The cycle is about learning and ongoing
improvement, learning what works and what does not in a systematic way; and the
cycle repeats; after one cycle is complete, another is started.

Dr Joseph M Juran - developed the Quality Trilogy Quality Planning, Quality


Control and Quality Improvement. Good quality management requires quality
actions to be planned out, improved and controlled. The process achieves control
at one level of quality performance, then plans are made to improve the
performance on a project by project basis, using tools and techniques such as
Pareto analysis. This activity eventually achieves breakthrough to an improved
level, which is again controlled, to prevent any deterioration. Dr. Juran believed
quality is associated with customer satisfaction and dissatisfaction with the
product, and emphasized the necessity for ongoing quality improvement through a
succession of small improvement projects carried out throughout the organization.
His ten steps to quality improvement are:

Build awareness of the need and opportunity for improvement

Set goals for improvement

Organize to reach the goals

Provide training

Carry out projects to solve problems

Report progress

Give recognition

Communicate results

Keep score of improvements achieved

Maintain momentum
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He concentrated not just on the end customer, but on other external and internal
customers. Each person along the chain, from product designer to final users, is a
supplier and a customer. In addition, the person will be a process, carrying out
some transformation or activity.

Dr Kaoru Ishikawa The Japanese, made many contributions to quality, the


most noteworthy being his total quality viewpoint, company wide quality control, his
emphasis on the human side of quality, the Ishikawa diagram and the assembly and
use of the seven basic tools of quality:

Pareto analysis which are the big problems?


Cause and effect diagrams what causes the problems? Stratification how is the data
made up?
Check sheets how often it occurs or is done?
Histograms what do overall variations look like? Scatter charts what are the
relationships between factors? Process control charts which variations to control and
how?

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He believed these seven tools should be known widely, if not by everyone, in
an organization and used to analyze problems and develop improvements.
Used together they form a powerful kit.

He distinguished between errors, which are inevitable, and defects, which result
when an error reaches a customer, and the aim of Poka-Yoke (Japanese term, that
means mistake-proofing) is to stop errors becoming defects. Defects arise
because errors are made and there is a cause and effect relationship between the
two. Zero quality control is the ideal production system and this requires both
Poka-Yoke and source inspections. In the latter, errors are looked at before they
become defects, and the system is either stopped for correction or the error
condition automatically adjusted to prevent it from becoming a defect.

Philip B Crosby - The Western Guru, known for the concepts of Quality is
Free and Zero Defects, and his quality improvement process is based on his
four absolutes of quality:

Quality is conformance to requirements

The system of quality is prevention

The performance standard is zero defect

The measurement of quality is the price of non-conformance

His fourteen steps to quality improvement are:

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Form a management level quality improvement team (QIT) with responsibility for
quality improvement process planning and administration
Determine where current and potential quality problems lie

Evaluate the cost of quality and explain its use as a management tool to measure
waste
Raise quality awareness and personal concern for quality amongst all employees
Take corrective actions, using established formal systems to remove the root
causes of problems
Establish a zero defects committee and program

Train all employees in quality improvement

Hold a Zero Defects Day to broadcast the change and as a management


recommitment and employee commitment
Encourage individuals and groups to set improvement goals

Encourage employees to communicate to management any obstacles they face in


attaining their improvement goals
Give formal recognition to all participants

Establish quality councils for quality management information sharing

Do it all over again form a new quality improvement team

Tom Peters - identified leadership as being central to the quality improvement


process, discarding the word Management for Leadership. The new role is of a
facilitator, and the basis is Managing by walking about (MBWA), enabling the
leader to keep in touch with customers, innovation and people, the three main
areas in the pursuit of excellence. He believes that, as the effective leader walks,
at least 3 major activities are happening:

Listening ( suggests caring )

Teaching ( values are transmitted )

Facilitating ( able to give on-the-spot help)

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Having researched successful American organizations, he concluded that any
intelligent approach to organizing had to encompass, and treat as
interdependent, seven variables, in what became known as the McKinsey 7-S
Framework, designed to force explicit thought about both the hardware and
software of an organization:

Conclusion

Apart from above gurus, there are many other management gurus whose
philosophies and ideas are also important but at end of the day, it is
organizational call to select what is best and most suitable set of processes for
their organization based on their current and future needs

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CHAPTER 3

INTRODUCTION
TO
TOTAL QUALITY MANAGEMENT
Concept of TQM

Total Quality Management is a management approach that originated in the


1950's and has steadily become more popular since the early 1980's. Total
Quality is a description of the culture, attitude and organization of a company
that strives to provide customers with products and services that satisfy their
needs. The culture requires quality in all aspects of the company's operations,
with processes being done right the first time and defects and waste eradicated
from operations.

Total Quality Management, TQM, is a method by which management and


employees can become involved in the continuous improvement of the
production of goods and services. It is a combination of quality and
management tools aimed at increasing business and reducing losses due to
wasteful practices.

TQM is a management philosophy that seeks to integrate all organizational


functions (marketing, finance, design, engineering, and production, customer
service, etc.) to focus on meeting customer needs and organizational
objectives.

TQM views an organization as a collection of processes. It maintains that


organizations must strive to continuously improve these processes by
incorporating the knowledge and experiences of workers.

The simple objective of TQM is "Do the right things, right the first time, every
time". TQM is infinitely variable and adaptable. Although originally applied to
manufacturing operations, and for a number of years only used in that area,

TQM is now becoming recognized as a generic management tool, just as


applicable in service and public sector organizations. There are a number of
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evolutionary standards with different sectors creating their own version from the
foundation of TQM activities 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

These activities can be practiced any where by all personnel in Manufacturing,


Marketing, Engineering, R&D, Sales, Purchasing, HR, IT etc.
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Tools and Techniques of TQM

The basic set of Total Quality Management tools are:

Pareto Principle Scatter Plots

Control Charts Flow Charts

Cause and Effect , Fishbone, Ishikawa Diagram Histogram or Bar Graph

Check Lists

Check Sheets
Pareto Principle

The Pareto principle suggests that most effects come from relatively few
causes. In quantitative terms: 80% of the problems come from 20% of the
causes (machines, raw materials, operators etc.); 80% of the wealth is owned
by 20% of the people etc. Therefore effort aimed at the right 20% can solve
80% of the problems. Double (back to back) Pareto charts can be used to
compare 'before and after' situations. General use to decide where to apply
initial effort for maximum effect.

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Scatter Plots
A scatter plot is effectively a line graph with no line - i.e. the point intersections
between the two data sets are plotted but no attempt is made to physically draw
a line. The Y axis is conventionally used for the characteristic whose behavior
we would like to predict. Use to define the area of relationship between two
variables.

Warning: There may appear to be a relationship on the plot when in reality there
is none, or both variables actually relate independently to a third variable.

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Control Charts

Control charts are a method of Statistical Process Control, SPC. (Control


system for production processes). They enable the control of distribution of
variation rather than attempting to control each individual variation. Upper and
lower control and tolerance limits are calculated for a process and sampled
measures are regularly plotted about a central line between the two sets of
limits. The plotted line corresponds to the stability/trend of the process. Action
can be taken based on trend rather than on individual variation. This prevents
over-correction/compensation for random variation, which would lead to many
rejects.

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Flow Charts

Pictures, symbols or text coupled with lines, arrows on lines show direction of
flow. Enables modeling of processes; problems/opportunities and decision
points etc. Develops a common understanding of a process by those involved.
No particular standardization of symbology, so communication to a different
audience may require considerable time and explanation.

Cause and Effect , Fishbone, Ishikawa Diagram

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The cause-and-effect diagram is a method for analyzing process dispersion.
The diagram's purpose is to relate causes and effects. Three basic types:
Dispersion analysis, Process classification and cause enumeration. Effect =
problem to be resolved, opportunity to be grasped, result to be achieved.
Excellent for capturing team brainstorming output and for filling in from the 'wide
picture'. Helps organize and relate factors, providing a sequential view. Deals
with time direction but not quantity. Can become very complex. Can be difficult
to identify or demonstrate interrelationships.

Histogram or Bar Graph

A Histogram is a graphic summary of variation in a set of data. It enables us to


see patterns that are difficult to see in a simple table of numbers. Can be
analyzed to draw conclusions about the data set.

A histogram is a graph in which the continuous variable is clustered into


categories and the value of each cluster is plotted to give a series of bars as
above. The above example reveals the skewed distribution of a set of product
measurements that remain nevertheless within specified limits. Without using
some form of graphic this kind of problem can be difficult to analyses, recognize
or identify.
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Check Sheets

A Check Sheet is a data recording form that has been designed to readily
interpret results from the form itself. It needs to be designed for the specific data
it is to gather. Used for the collection of quantitative or qualitative repetitive data.
Adaptable to different data gathering situations. Minimal interpretation of results
required. Easy and quick to use. No control for various forms of bias - exclusion,
interaction, perception, operational, non-response, estimation.

Check Lists

A Checklist contains items that are important or relevant to a specific issue or


situation. Checklists are used under operational conditions to ensure that all
important steps or actions have been taken. Their primary purpose is for guiding
operations, not for collecting data. Simple and effective, generally used to check
that all aspects of a situation have been taken into account before action or
decision making.

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Quality Circles

Background

Two atom bombs dropped on Japan during 1945, converted the thriving,
industrial empire of Japan to dust and smoke, with millions killed or maimed.
Every one thought it would be centuries before Japan re-captures its pristine
glory, but Japan rose like a phoenix from ashes to become the leading nation of
the world within a short span of time. The power behind this miracle was fierce
will, determination and commitment of Japanese people and their quest for
quality. They adopted Quality Circles as ways of building attitudes to surmount
problems, improve quality and to be competitive.

Quality Circle:- A Human Interface

It epitomizes the policy of people building, respect for human beings and
conceives a participative management culture. This concept enables the grass-
root level employees to play a meaningful and significant role in their
organization. The responsibility for the attainment of Quality depends on all the
departments of an Organization. The main purpose behind Quality Circles is to
build the people and produce quality people towards making quality products or
providing quality services. It is to make a 'Man' productive and knowledge
worthy.

The Origin

The concept of Quality Circle is primarily based upon recognition of the value of
the worker as a human being, as someone who willingly activates on his job, his
wisdom, intelligence, experience, attitude and feelings. It is based upon the
human resource management considered as one of the key factors in the
improvement of product quality & productivity.
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Attributes of Quality Circles

Quality Circle is a form of participation management.

Quality Circle is a human resource development technique. Quality Circle is a


problem solving technique.

Composition of Quality Circles

It's a small group comprising of 6 to 12 employees doing similar work

They meet together voluntarily on a regular basis for identifying improvements in


their respective work areas

Their aim to achieve and so also to sustain excellence towards mutual upliftment
of employees as well as the organization.

Objectives of Quality Circles

Change in Attitude.

From "I don't care" to "I do care"

Continuous improvement in quality of work life through

humanization of work.

Self Development

Bring out 'Hidden Potential' of people

People get to learn additional skills.

Development of Team Spirit

Individual Vs Team "I could not do but we did it"

Eliminate inter departmental conflicts.


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Improved Organizational Culture

Positive working environment.

Total involvement of people at all levels.

Higher motivational level.

PROCESS OF OPERATION

The operation of quality circles involves a set of sequential steps as under:

The use of various techniques must be supported with accurate information and
data. Data and information collection or insufficient data could lead to a situation
where decisions or corrective action be implemented effectively. Data and
information should be collected for the following purposes

To understand the actual situation and to support or reinforce an option To


established the relationship between the problem and its causes..

Data can be collected using five methods, namely:

Interviews

Questionnaires Observation

From reports and

From complaints by the public.

The data collected should be recorded information on the date of Collection,


method of collection and the individual who collated the data. The data must be
recorded in a manner which facilitates its use that is, it must be arranged in
specific categories. For example, it should be categorized according to the four
management resources namely, man, method, material and machine.

Sampling:- A way to simplify


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In data collection, samples are used. This involves the collection of data from a
small population of the total population involved. The sampling techniques
generally used are:-

Random Sampling - This process involves the random selection of the sample
units. The selection can be made by the use of a random number through table or
lists of names to prevent any bias.

Systematic Sampling - This process involves the systematic selection of the


sample to be used. For example, choosing every tenth name from a list of names..
Stratified Sampling - This process involves the selection of the sample according
to specific categories such as age, sex and income group, etc.

QC members may use various techniques in the problem-solving process. The


effective techniques generally are:-

Brainstorming;

Cause and Effect Analysis Check sheets

Pareto Analysis

Brainstorming

Brainstorming can be defined as the methodology used to encourage every


individual in the Circle to express freely their opinions or give ideas in an open
discussion..

Brainstorming can be used to list down all the problem faced by an organization,
their causes and the potential effects if a certain suggestion is implemented.
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To ensure the success of the brainstorming process, it is important for the Circle to
flow the following rules:

The subject for brainstorming should be clear and accurate. For example,
members may brainstorm to identify the causes and reasons why a certain task
cannot be completed on schedule

Each member will give only opinion/idea at each turn regardless of the number of
ideas he/she may have

A tension-free atmosphere must be maintained to encourage free expression of


ideas

Every idea expressed should be written on the black/white board, flip chart or
noted down by a secretary..

At the end of the brainstorming session, all the ideas expressed should be
evaluated one by one and short listed.

Voting is used to list the ideas according to priority. The prioritization is based on
number of votes received for each idea..

Cause and Effect Analysis

The Cause and Effect Analysis is also known as the Fish-Bone Analysis. This
technique is used to analyze problems with the identification of causes of a
problem through brainstorming. This technique is easy to use as it summarizes,
arranges and explains all the causes of a problem which has been identified in the
form of a diagram. It also allows for the identification of many possible causes of a
problem. There are five steps in the construction of a Cause and Effect Diagram..

Step 1: Identify a Problem - The first step is to identify the problem and to state the
problem accurately.

Step 2: Determine the Main Causes - A problem is caused by various factors.


These factors can be categories according to the resources of production
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such as Man, Machine, Material and Method etc.

Step 3: Determine the Sub-Causes under the Main Causes. Through a process
of brainstorming, the sub-causes of the problem are identified and entered
below the appropriate main causes. Where possible, the sub-causes are further
broken down into more detailed sub-sub-causes

Check Sheets:

Check Sheets are an effective means of gathering data in a helpful and


meaningful way.

Kaoru Ishikawa is often credited with "democratizing statistics." This relates to


his desire to spread quality control ideas throughout the workplace. His tools
make it easier to comprehend raw data, making quality improvements simpler.
Check Sheets are a perfect example of this. Although they can vary a good deal
depending on the type of data being collected, the purpose of the check sheet is
always the same.

"The Check Sheet is used to facilitate the collection and analysis of data.
'Garbage in, Garbage out' is an old clich, but it is true. Therefore, the purpose
for which data is being collected must be clear. Data reflects facts, but only if
they are properly collected. The number of defects and where they are found
can be recorded and analyzed for causes" .

Pareto Analysis:

Pareto analysis provides the mechanism to control and direct effort by fact, not
by emotion. It helps to clearly establish top priorities and to identify both
profitable and unprofitable targets. Pareto analysis is useful to:

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Prioritize problems, goals, and objectives Identify root causes

Select and define key quality improvement programs Select key customer relations
and service programs Select key employee relations improvement programs

Select and define key performance improvement programs

Address the Vital Few and the Trivial Many causes of nonconformance Maximize
research and product development time

Verify operating procedures and manufacturing processes Product or services


sales and distribution

Allocate physical, financial and human resources

A Pareto chart is used for: Focusing on critical issues by ranking them in terms of
importance and frequency (example: Which course causes the most difficulty for
students? Which problem with Product X is most significant to the customers?)
Prioritizing problems or causes to efficiently initiate problem solving (example:
Which discipline problems should be tackled first? or, what is the most frequent
complaint by parents regarding the school? Solution of what production problem
will improve quality most?) Analyzing problems or causes by different groupings of
data (e.g., by program, by teacher, by school building; by machine, by team)
Analyzing the before and after impact of changes made in a process (example:
What is the most common complaint of parents before and after the new principal
was hired?; has the initiation of a quality improvement program reduced the
number of defectives?)

Quality management is not a one time effort but a continual long term endeavor
which has to be recognized, reinforced and rewarded by continuous monitoring the
ongoing data collection, evaluation, feedback and improvement programmes. The
top management should have to create an atmosphere where the management
and the workers cooperate with each other for smooth functioning of the
organization.
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Introducing Quality Circle in an Organization

Quality circle is a new concept and its introduction may cause some resistance on
the part of the employees. Therefore, before introducing quality circle, all
precautions must be taken as in case of any organizational change. The steps in
the introduction of quality circle are briefly discussed below:

Selling the Idea of Quality Circle: The workers must be educated the need

and significance of quality circle from the point of view of the organization and the
workers. The workers should be allowed to clear their doubts about quality circle.
Attempt should be made to seek their voluntary cooperation in implementing
quality circles in the organization.

Constitution of Quality Circles: The employees should be encouraged to form


quality circles by drawing members doing the same kind of work. The membership
of a quality circle should not exceed ten to twelve members.

Analysis of Quality Problems: The members of a quality circle are supposed to


meet periodically, say once a month. They would collect data and analyze the
same. Past records, employees suggestions, customers suggestions are very
important in this regard. This will lead to identification of the problems that hinder
quality.

Problem Solving: The members of a quality circle will discuss the problems
thoroughly and make a list of possible solutions. The merits and demerits of each
solution will be evaluated. The final decision will be taken by the consensus of all
members.

Presentation of Suggestions to the Management: The suggestions for


improving the quality are put in writing and forwarded to the management. Top
management may form a committee to evaluate the suggestions of different
quality circles in the organization.
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Implementation: Proper publicity should be given to the suggestions of Quality


circles which are being put into practice. This will motivate the employees, as they
will feel importance of having contributed to well being of the organization.
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CHAPTER 4
CGIs TQM STRATEGY
Founded in 1976

Revenue run rate of CDN$3.8 billion

Backlog of CDN$12.03 billion

Approximately 27,000 professionals

More than 100 offices serving clients in 16 countries

One of the largest independent IT and business process services companies

NYSE: GIB TSX: GIB.A

8.8 out of 10 satisfaction ranking in 2007 from CGIs ISO 9001:2000certified client
management process

End-to-end services

Consulting

Systems integration
Management of IT and business functions

100+ proprietary business solutions

Focused industry expertise

Financial services
Government and healthcare

Telecommunications and utilities

Manufacturing , Retail and distribution

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They are partnered with the following:

45 of 50 top banks in the Americas and Europe, and 11 of the 15 largest global
property and casualty insurers

Hundreds of government agencies and healthcare organizations

7 of the 10 largest global telecom carriers

Leading global manufacturers in aerospace, metals and mining, chemicals, and oil
and gas
Hundreds of retailers and multiple distribution segments and

channels, including postal services, transportation and logistics, and wholesale


distribution

Representative Clients

o Air Canada , Allstate Insurance ,American Express , AT&T ,Australian and New
Zealand Bank (ANZ) , AXA , Bank of America , Bell Canada , BellSouth , Blue
Cross Blue Shield ,Bombardier , Commonwealth of Virginia , Desjardins , Enbridge
Petroleum , Government of Canada , Government of Quebec , HSBC Holdings plc
, Hydro-Qubec , If Skadefrskring AB , JPMorgan Chase & Co, , Liberty Mutual ,
Lloyds TSB Group Plc , Los Angeles County , Manu life Financial , Merrill Lynch ,
Michelin North America , National Bank of Canada , New York City , Prudential
Financial , Rio Tinto Alcan , Sprint PCS , Telstra

Extract from www.cgi.com - Corporate


statistics verified as on June 2008
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In brief, CGI is Montreal (Canada) based 30 years old IT company, having 27,000
members across the globe. The entire business is divided more than 100 offices
globally, in multiple countries, in various regions and in various Business units.
CGI India is one of the business units amongst all having more than 1200
members with 3 offices in India. Two offices are located in Bangalore and one in
Mumbai in Seepz, Andheri.

CGI is in TQM since last 10 years. CGI is ISO 9001 (from last 10 years), ISO
27001 (from last 2 years) and SEI CMM Level 5 (from last 5 years)
certified/assessed company.

CGI is having Corporate Quality department to take care of TQM at global level
and having Quality department at each business unit. In India this department is
called Total Software Quality Management (TSQM), having 20 full time members
(12 for Bangalore and 8 for Mumbai).s

The responsibilities of TSQM are:

Training to all members on all internal as well as external quality models.

Assisting all members for defining, implementing and improving their process

Conducting Internal audits

Facilitating External audits and assessment

Conduct analysis and reporting the recommendation to management for the


Internal as well as external client feedback/Complaints/Suggestion, Risks,
Learnings and Audit report & Non conformities

Process suggestions, complaints and feedback


Prepare knowledge Management system and Process Assets repository
Understand and implement industries best practices

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TQM CGI Strategy


Before going through the strategy let us understand three key terminology
differences.

Member - CGI is big family having more than 27,000 members across the globe
and every member is trying their best for the betterment of their family and for their
prosperity hence they are not called as employee but referred as Member.

Engagement As CGI is having longer association or relationship with various


clients hence their association is referred as Engagement and not project.

Customers are referred as Clients.

Each employee when join CGI has to undergo Induction training. This is
mandatory, irrespective of their experience or designation. CGI called this process
as Integration process. Each employee before joining CGI has some information
about CGI to ensure their job stability or prosperity but is not aware about the
culture of CGI. The Integration processes addresses Dreams, Mission, Vision,
Values, Policies, Procedures and other cultural as well as professional and
technical requirements and ensure to convert new employee into Member of CGI
family. CGI will ensure that every member is fully integrated with CGI before
starting delivering to their esteem clients.

Every member of CGI is well versed with following set of core values

Intrapreneurship ( Leadership ) & Sharing Partnership & Quality

Objectivity & Integrity


Respect

Financial Strength

Corporate social responsibility

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Using these values CGI has spread message of TQM across all levels. Sharing
the same values allows CGI to enjoy considerable autonomy and swiftness of
action without compromising their cohesiveness. It also allows them to mobilize
teams more rapidly and bring together the most experienced individuals from
across the company, who are able to quickly work as one to address a given
challenge. And, of course, these values also guide CGIs decisions and actions.

Partnership and Quality

For CGI, partnership and quality are both a philosophy and a way of life. They
develop and follow the best management practices and they entrench these
approaches into client relationships and service delivery frameworks in order to
foster long term and strong partnerships with their clients. They listen to their
clients and they are committed to their total satisfaction in everything they do.

Objectivity and Integrity


Exercise the highest degree of independent thinking in selecting the products,
services and solutions they recommend to clients. In doing so, they adhere to

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the highest values of quality, objectivity and integrity. Consequently, strict rules
of business and professional conduct are applied. They do not accept any
remuneration from their suppliers.

Intrapreneurship and Sharing

CGIs success is based on the competence, commitment and enthusiasm of


their members. Therefore, CGI promotes a climate of innovation and initiative
where they are empowered with a sense of ownership in supporting clients,
thus ensuring the firms profitable growth. Through teamwork, sharing their
know-how and expertise, they bring the best of CGI to their clients. As
members, they share in the value they create through equity ownership and
profit participation.

Respect

As a global company, CGI recognizes the richness that diversity brings to the
company and welcome this diversity while embracing the overall CGI culture. In
all they do what are respectful for their fellow members, clients, business
partners and for their competitors

Financial Strength

CGI strives to deliver strong, consistent financial performance which sustains


long term growth and rewards for their members and shareholders. Financial
strength enables them to continuously invest and improve services and
business solutions to the benefit of their clients. To this end, they manage their
business to generate industry superior returns.

Corporate Social Responsibility


Their business model is designed to ensure that they are close to their

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clients and communities. They embrace their social responsibilities and


contribute to the continuous development of the communities in which we all
live and work.

To summarize, demonstrating these values from leaders, continuous training to


all members at all levels, respecting member knowledge, providing excellent
environment where there is no fear to share knowledge are essential activities
CGI ensure to implement TQM

CGI ensures to provide Quality not only in their end product or service but also
make it an integral part of their business rule/processes which they use to
create their goods and services. An effective TQM program will produce greater
quantity, faster and at lower costs, by reducing their rework rates and cycle
times. In next chapter we will focus on detail implementation.
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CHAPTER 5

TQM IMPLEMENTATION IN
CGI
TQM Implementation in CGI

Definition and Establishment of Quality System Management (QSM)

First step that was followed towards TQM was identification of all required
processes such as Technical, Functional, Support, Management etc. Technical
& functional processes covers all process related to spare parts development,
maintenance, migration etc. along with various domains such as Retail,
Manufacturing, Finance, Insurance, service centers, Medical etc. Support
processes takes care of all departmental process in detail such as Human
Resources, Finance, Information Security and Information Technology,
Administration, Training departments etc. . Management processes takes care
of all policies, frameworks and corporate level requirements for all business
units. As CGI is also following other quality models along with TQM such as SEI
CMM and various internal quality frameworks they have considered respective
requirements from these models too.

Once all processes were listed, they have come out with detail flowchart for all
processes to know their sequencing, interfaces, dependency on each other and
also to avoid duplication or redundancy if any. They have also followed Real
Value Activity (RVA), Business Value Activity (BVA) and No Value Activity (NVA)
principle of Six Sigma to decide the priority list. After finalizing their processes
they have documented them all in Quality System Management (QSM) along
with their Quality policy and Quality Manual after review and approval from Top
Management.

This QSM whenever gets revised will get released only after review and
approval from top management. Top Management along with TSQM takes full
responsibility to publish QSM time to time and ensure to address the same
when ever and where ever they found opportunity. All required budgets in

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terms of cost, infrastructure (hardware, software, building, workspace, utilities,


equipment etc) members efforts and cost are sponsored by them. They also
ensure to provide resources with right education, right experience and ensure to
provide right training to provide right skills. CGI has following various training
effectiveness mechanism to ensure that attended participants are properly
trained and faculty has the capability and skills to train the participants.

Usage of Quality System Management (QSM)

TSQM is providing detailed training to all members of CGI at all levels. The
process of training is not one time but it is journey. The annual calendar is
published well in advance so that all members can plan their team members
training requirements. Once members are trained on QSM then they start using
and implementing QSM accordingly.

Every department has defined their own process and their own process assets
such as forms, template, and guidelines, checklists etc., depending upon their
services, Service Level Agreement (SLA) are defined and monitored on monthly
basis.

Every engagement prepares their own plans based on requirement received


from client. Plans covers client requirements, Strategy to deliver the
requirements, Communication Management (Frequency and documentation
responsibility of Engagement, Management and review meetings, weekly status
reporting to management, clients etc, Escalation mechanism etc), Risk
management (identification of risk, risk probability, impact, priority, mitigation
and contingencies) , Configuration management (Data and document control) ,
Quality management (verification, validation mechanism, quality goals etc)
along with teams details, roles and responsibilities. While defining quality goals,
engagement are also considering business goals too. The common quality
goals for all engagements are Productivity, Defect Density, Review

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Effectiveness, Schedule Variance, Effort Variance and Cost of Quality etc. Apart
from Organizational level process assets such as guidelines, checklist, forms,
templates, standards, methodologies, engagement level assets are also getting
developed depending upon clients requirements. Depending upon engagement
uniqueness, applicable best process assets, practices and best methods are
getting shared with the help of TSQM

Monitor and Improve Quality System Management (QSM)

Based on Business plans, CGI finalize their Business goals (Voice of Business)
and based on clients requirement, Engagement Managers are planning their
engagement goals (Voice of Customer). Based on these two goals
organizational level processes are getting tailored and followed (Voice of
Process) for every engagement. Based on goals various measurements are
defined, managed and monitored. If the actual results are not matching than the
set goals then correction (fixing the problem) or corrective (preventing
recurrence) or preventive (preventing potential occurrence) action are taking
depending upon the situation till the goals are met. Based on learnings goals
are revised and plans are revisited at engagement as well as at CGI level.

For every engagement or for every department one member from TSQM is
nominated to provide quality assistance on TQM, called as Software Quality
Assurance Engineer (SQAE) for engagement or Quality Assurance Engineer
(QAE) for department. They visit every engagement/department on monthly
basis to ensure whether that team is following internal or external quality model
or not and reports their finding to management on monthly basis. Apart from
these checks, every engagement/department gets audited every six months
basis through Internal Audit and once in a year through External Audit. Apart
from conducting SQAE checks, coordinating internal and external audits,
SQAE/QAE also helps assigned team for their clarifications, query, if any Apart

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from TSQM checks and audits, on monthly basis management meeting taking
place (BMC meeting) wherein all engagement and departmental status are
getting discussed and appropriate corrective and preventive actions are taken
accordingly. During meeting Appreciation, suggestions, complaints and other
improvement or innovations activities if any are also getting discussed.

Depending upon Return on Investment (ROI) suggestions are getting prioritize


for implementation. In case improvement plan is at larger scale (needs more
days or needs a team of members) Quality Improvement Teams are formed and
required resources are provided till the solution is implemented. Without piloting
and ensuring required ROI suggestions are not implemented across the
organization.

On quarterly basis, Open House is conducted where in local management


updates member on quarterly performance and their future plans. Members
issues, if any are also addressed during this meeting. All good performers are
recognized by rewarding some monetary coupons and appreciation letter.

On yearly basis, Annual Tour is conducted where in Top management updates


member on yearly performance and their future plans. Members issues, if any
are also addressed during this meeting. All star performers are recognized by
rewarding some monetary coupons and appreciation letter.

Through various mechanism such as Engagement/department Team meetings,


Management review meeting, TSQM checks, internal as well as external audit
observation, clients and member feedback, suggestions from members, open
forum and annual tour. Management gets various feedbacks for QMS revision.
Using Statistical tool TSQM analyze them all and if found value addition to CGI
suggest management to take appropriate action.

This is how CGI is adopted TQM along with ISO 9001 and Cmmi which is
getting audited or assessed by third party on periodic basis since long.

Page 39

CHAPTER 6
PROJECT ANALYSIS
Advantages of TQM

Fully client driven

Faster, Better and Cheaper is the mantra of TQM. Every activity is planned and
implemented to ensure customer delight. Customer covers internal as well as
external customer. All employees are fully focused on satisfying or delighting their
clients without compromising on quality.

The supplier or vendor also part of this objective. Vendors are treated like

partner so that every one will take the same ownership and also earned the equal
reward.
Various processes, practices, methodologies, guidelines, standards are defined,
documented, communicated and enforced across the organization so that all stake
holders are in sync with organizational goals
Periodic communication is ensured at all levels to know the progress of

organization towards their set goals.

Continuous Improvement - Organization is working or improving on Kaizen


mode. Small but continuous improvements at all levels are going on

Employee Empowerment

o All employees are trained on periodic basis on technical, functional,


management and on soft skills through out their span. Training journey starts with
Integration and then goes on and on till they are familiar with required skills and to
get updated on revised new technical know how.
o Improvements are not only based on past experience or learnings but also
based on suggestions across all levels. As employees are fully trained and fully
focused on their work they are the right channels to know the improvement areas
which is encouraged through suggestions scheme. Good Suggestions are
rewarded instantly or on quarterly or

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yearly basis depending upon organizational practices. All recognized


orImplemented suggestions are communicated through newsletter along with the
employees name and with their reward so to empower everyone to go and
suggest all improvement area to improve organizational productivity or to reduce
waste/rework or to control cost etc.

Employees get opportunities to work on improvement areas through focused


team, improvement teams or quality circles and get management visibility for their
interest in improving organization. It fosters leadership and empowers employees
to utilize all his potential at greater extent.

They will ensure to plan everything; everyone in organization is aware where they
are leading for. The drive and direction is focused and in align with the business
plan

Management members are fully involved in implementing business plan

and will ensure to provide all required resources such has Resources, Budget,
Environment Utilities etc time to time till the goals are achieved
Various control mechanisms are in place such functional, departmental meetings,
periodic checks, periodic reporting, review meeting, audits etc to ensure all
activities are in align with business plan

Based on analysis, extending support by taking corrective and preventive

actions, recognizing and rewarding achievements, revising plan and keeping


everyone informed about the progress and about future plan on timely basis.

Data driven Decision Making


o The data for all important activities are collected as measurement. These
measurement data is used to take decision or to forecast or predict the business.
Decisions are not person dependant but process dependant.

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Various tools such Brainstorming, Fish Bone, Pareto, Control Charts, Histogram,
Correlation, Regression are used to control variance and variation.
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Limitation of TQM

TQM is a philosophy

It is not quality management but should be referred as process management or


process of improvement
Does not Offers any set of guidelines for quality management. Like

religion, there are as many versions as there are advocates. A study by Ernst &
Young turned up around 945 different approaches for implementing TQM.
In reality it is not total since it only addresses one aspect of quality management
that is improvement
TQM is remedial and not preventive. TQM is aimed at identifying the

causes of quality problems and eliminating them. The theory is that by involving
everyone in solving quality problems, eventually all problems will be eliminated
and the company's quality will continue to get better and better. Unfortunately,
TQM is based on studying past data which amounts to examining the barn door
after the horse has run away.
ISO-9000 requires documentation and record keeping. ISO-9000, which requires
regular audits by an outside party. There is no such requirement in TQM. TQM has
a history of fading away over time. As a result, improvements often get lost or
forgotten as new people, new products and new managers come and go. Also, the
typical TQM implementation relies heavily on the leadership of a "champion."
When the champion goes, so does the TQM program. TQM can disappear without
a whimper. According to various published reports, about three-quarters of
significantly sized American manufacturers have attempted some form of TQM. Of
those programs, about four-fifths have failed to produce any significant results and
most of them have simply disappeared.
Goals are mainly set at higher level and very limited to bottom line
Goals are not dead line.

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Very often, Changes is triggered by internal customer requirements

Improvement teams or Quality circles includes on techies, support or departmental


or management contribution is very less

Developed by techies with limited knowledge of management

Mostly the result is continual improvement and incident of breakthrough


improvement are very rare

Does not target a specific scope and no dead line so improvement is not

consistent

Focus is mostly in Quality instead of Quality + Cost + Cycle Time + Business


Issues

As it is management driven, management support is must which is not

consistent.
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CHAPTER 7

RECOMMENDATIONS
Recommendations

After going through the concept, advantage, limitation of TQM and where TQM
is implemented along with ISO 9001 and CMMi suggesting for following
recommendations based on my observations and learnings,.

Better to implement TQM with ISO 9001 or with CMMI or Six Sigma so that it
will not remain concept or Philosophy or theory but it should be integral part of
organization mechanism in place to address, resolve and prevent all quality
related issues.

The typical TQM program takes a year or so just to get started and as there is
no limit majority of them dont achieve the required results even after spending
years hence need to be carried out on time bound basis.

Voice of Customer, Voice of Business and Voice of process all should be


considered for setting goals. Goal should be SMART. Specific, Measurable,
Achievable, Realistic and Target based.

Although TQM assures live and working continuous improvement and


compliance with the key elements of the standards it is not globally accepted, all
purpose quality model in the world hence If a business wants to remain
competitive, we have to implement along with ISO or CMMI or with Six Sigma.

Your activity should lead to profit improvement and not limited to process
improvement or for certification.

First improve and then document and then train.

Scope should be equally provided for Continual & Breakthrough improvements.


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Apart from Brainstorming, Fish Bone, Pareto, Control Charts, Histogram,


Correlation and Regression it should facilitate usage of improvement, such as
Failure Mode and Effect Analysis (FMEA), Quality

Function Deployment (QFD) and other tools of six sigma to help to move the
company towards being a world-class operation.

So to delight your internal as well as external clients go for

If you dont go someone else will..


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CHAPTER 8

ANNEXURE
Questionnaires

What is the mission and vision of CGI?

What are the objectives or goals of CGI?

Would you please describe about Quality Journey of CGI?

Globally as well as in India

Who is the lead auditor for CGI for ISO 9001?

Who is the lead auditor for CGI for ISO 27001?

Who is the lead auditor for CGI for CMMi Level 5?

What is the strength of CGI India?

Do you have separate department for Quality?

If yes, then how many employees are working in that?

If no, then how you manage quality function in your company?

Are they working full time or as and when basis?

Would you please let me know how Quality department is working?

Do you have separate department for Audit?

If yes, then how many employee are working in that?

If no, then how you manage audit function in your company?

Are they working full time or as and when basis?


Would you please let me know how Audit department is working?

Who is the right person to talk about TQM here?

Do you need any certificate from my college for this project?

Could you please share soft copy of your TQM with me for my

project?

If not could you provide me the hard copy for reference purpose?
For referring at home or within office only?

Can I take notes from hard copy and reproduce your activities in my project after
getting reviewed from your members?

How TQM is getting implemented in CGI?

What are the resources requirements of TQM in CGI?

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Can I get chance to see the budget for TQM?

How to do you ensure that all employees are understood TQM and followed TQM?
How do you ensure that message of TQM passes to all employees,

all the time?

How do you compare TQM with you internal as well as external quality models
(ISO 9001 and CMMi)?
Do you follow any reorganization or reward system to promote TQM?

How do you improve your TQM?

What are the various tools you are using for implementing TQM?

How do you ensure to keep your customer and your employee

happy?

Do your follow any measurement plan to monitor your business goals

or objectives?

Do you follow specific process to handle customer complaints?

Internal as well as external?

Do you follow specific process to handle suggestion, improvement and innovation?


How do you promote quality in your company?

Do you conduct quality quiz regularly?

Do you conduct quality week?


If yes? What is the frequency?
Page 48

CHAPTER 9
WEBLIOGR
APHY

BIBLIOGRAPHY &
Bibliography

Productivity & Quality Management S.D. Aphale

TQM & ISO 9000 for Architects and Designers Charles Nelson

Six Sigma Black Belt training Material Asian Institute of Quality Management

Webliography

WWW.GOOGLE.COM

WWW.CGI.COM

WWW.ISIXSIGMA.COM
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