Chapter 4 - TQM Implementation

INTRODUCTION
● The most important requirement for TQM to function in any organization is 100 per cent
commitment by the top management.
● There is no way to push TQM if the top management is not convinced, committed or
determined to implement it.

TQM Tools and Techniques

TQM involves application of the right tools in the organization for the continuous improvement of
quality.

Type Tools and Techniques

Methodologies​- Statistical Process Control(SPC), JIT,

Taguchi methods

System ISO 9000

Human Resources Total Employee Involvement (TPE), Proactive

management and Quality circles

Motivation Deming Award, European Quality Award,

Rajiv Gandhi National Quality Award.

The Management may use the various suggestions given by the quality gurus for the benefit of
their own organization.

Contribution of Gurus for TQM

Areas of TQM Gurus

Statistical Gauss, Pareto, Shewhart, Fisher

Management Juran, Crosby, Feigenbaum

Execution Deming, Taguchi

PDSA TQM IMPLEMENTATION

Shewhart developed a Plan, Do, Check, Act (PDCA) cycle for improvement process. Deming
modified it as PDSA. There are four phases – Plan, Do, Study and Act shown in Fig. 4.1as
follows:

PLAN
● Establish objectives
 ● Establish a plan that will facilitate achieving goal
● Establish a measurement system
DO
● Plan for implementation
● Implement the plan on pilot basis
STUDY
● Compare the results with the objectives
● Identify gaps
● Analyze the causes for gaps and exceptional results, if any
ACT
● Standardize the procedure that met or exceeded the goal
● If there were gaps, improve the plan and carry out PDSA again.

BEGINNING PHASE OF TQM

The CEO should also:
● bring out the advantages of TQM
● highlight the hard work the organization put in to practice TQM
● be honest
● explain what the organization and staff stand to gain
● highlight that adopting TQM means “not working harder, but working smarter”
● Employees will be more satisfied, customers will be equally as happy and the
organization is bound to grow and prosper.

The organization has decided to implement TQM after analyzing the pros and cons. The CEO is
prepared to commit his time and resources, and therefore there should not be any
reconsideration whether TQM or not at this stage.

The prerequisite for the planning phase is that the organization has set its goal to achieve TQM
for long-term success.

1. Announcement
● The CEO will be able to convince the workers and junior employees about practicing
TQM quite easily, but he may have problems in convincing the first line managers and
senior managers.
● The CEO has to convey and convince all the employees about the importance of
practicing TQM. He can announce the decision in a meeting where all employees are
present.

The CEO should also:

● bring out the advantages of TQM
● highlight the hard work the organization put in to practice TQM
● be honest
● explain what the organization and staff stand to gain
 ● highlight that adopting TQM means “not working harder, but working smarter”

● Employees will be more satisfied, customers will be equally as happy and the
organization is bound to grow and prosper.

2. Select Consultant
● Consultants have the advantage of being independent, putting forth new ideas to change
organizational culture. His ideas could easily find acceptance amongst the employees.
The CEO should select him personally because of the important role he is going to play.
● The consultant will not do all the jobs himself, but will only put forth the ideas to the
employees. He knows what will and what will not work, and he will advise the employees
and management about what should and should not be done.

3. Corporate Strategic Planning

● Planning the strategy as to how the organization is going to get into TQM, with the help
of the senior management and consultant.
● The three important activities in strategic planning are formulating vision, mission and
objectives for the organization by the CEO.

3.1. Vision Statement

● It is the vision of the CEO about where the organization should be in the long run. It
states what the organization should be capable of in the future. It is an achievable dream
of the top management, and is the long-term goal of the organization.

The vision statement should also:

● Be concise
● Be inspiring
● Be challenging
Appeal to all the stakeholders (the employees, customers, suppliers, shareholders, and the
society)
Examples of Vision Statements
Google’s vision statement
● “to provide access to the world’s information in one click.”
Kenny Rogers’ Roasters
● “To be the preferred choice for delicious and healthy chicken meals.”

Examples of Mission Statements

Starbucks
“Our mission: to inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.”
​McDonald’s
“McDonald's brand mission is to be our customers' favorite place and way to eat and
drink. Our worldwide operations are aligned around a global strategy called the Plan to Win,
which center on an exceptional customer experience – People, Products, Place, Price and
Promotion. We are committed to continuously improving our operations and enhancing our
customers' experience.”
Google
“Google’s mission is to organize the world’s information and make it universally
accessible and useful.”

3.3. Quality Policy

● It should clearly convey the views of the management on dealing with customers and
achieving customer satisfaction. It is aimed at improving the customers’ perceptions
about the organization and thereby improving the organization’s image.
The quality policy should also be:
● Like a guide for each section of the organization in developing their own quality
objectives
● Ambitious
● Clear and unambiguous

● There should be a link between the vision, mission and policy. They should not
contradict each other, rather they should aid each other. The CEO should formulate
these statements and circulate to the employees under his signature.
● As soon as these are finalized, it is unlikely that all employees will understand the
statements, even if it is signed by the CEO and they are advised to read it. The
management should try to coach the employees on the need for understanding and
achieving the vision of the CEO.

Plan for establishing communications framework

● As part of the strategic planning, the organization should plan for a corporate-wide
framework for communications.
● The communications framework starts from the vision, mission and policy statements as
finalized by the CEO.
Figure 4.2 Corporate –Wide Communication Framework
Vision Statement

Mission Statement

Quality Policy

Quality Manual

Quality Pla
General Procedures Work Instructions
 . Detailed Procedures
News Letters Circulars Notes Training Prog. Story Teller

Selection Of TQM Facilitator

● Independent person
● Independent person
● Not be made responsible for normal production
● A coach, not a player
● His is not a one-time job, but a continuous one
● Provides continuity to the QC meetings
● Right at the planning stage of TQM implementation, the management should select the
TQM facilitator and assign him clear responsibilities.
● Should understand the entire operation in the organization
● Nodal person for all improvement and related matters

● The TQM facilitator and corporate quality council should be decided upon before the
organization goes on to the next stage.
● - they should facilitate training of the employees as well as the improvement of the
team members.
● - they should be champion for quality in the organization.
● - they should always be on the look out for related information.
● - they should walk the talk.

Strategic Quality Plan

● The Strategic business plan involves the proposed market share, goals, business value,
profits, diversification to new areas of business, investment thereof, etc.
● The strategic quality planning is the formulation of strategies to achieve TQM in the
organization.
● Some strategies for TQM implementation:
● Training for top management.
● Forming improvement teams for specific problems.
● The consultant can train the quality council members.

Employee Involvement
● ​Every improvement action has to be carefully considered and approved by the QC.
● Employees should be encouraged to give suggestions for improvement.
● Ideas will be discussed in the QC meeting and it will decide whether a suggestion has to
be considered or not.
● The QC, no doubt should create a sense of urgency, but they have to give adequate
time for the completion of each job.
● It is the responsibility of the TQM facilitator and members of the QC to guide & facilitate
them, so that they can complete the job confidently.
 ● The QC members should give a patient hearing to this suggestions and advise the team
members appropriately.
● The QC plays a nodal role in implementing continuous improvement program.

Constitution of PAT
The formal structure for TQM consists of the QC, the TQM facilitator and the support staff.
Improvement teams are formed for each improvement tasks. Therefore, the management
should plan for constituting PATs, empowering them and supporting them.
Identify Process
The QC should plan to identify process for improvement. Business process benchmarking
helps in identification of the potential processes for improvement. The potential processes are
those, which yield higher return on investment.

APPLY PDSA FOR IMPROVEMENT

● PDSA cycle
Do Phase of TQM​ – After successful planning, the Do Phase Starts. The first task in the
Do phase is the meeting of the QC.
Study Phase of TQM​ – In every meeting of the QC, the results achieved through the
implementation of TQM should be studied.
Act Phase of TQM​ – In the Act phase, the plans for implementing TQM should be
confirmed

SELECT PROCESS FOR IMPROVEMENT

As a first step, TQM needs the establishment of a documented system for quality in the
organization. This could be the system established for the purpose of meeting the ISO 9000
standards.
The goals for improvement actions:
• Improving quality
• Reducing defects
• Increasing productivity
• Reducing quality cost
• Reducing delivery time
The triggers for improvement may come for many sources. Some of the known sources are
internal quality auditing, management review, MBWA, employee feedback, customer feedback,
supplier feedback, in-process data and field failure data.

Getting Things Done

Some of the points which will help in getting things done by employees
Recognition- is a must in order to motivate the employees to bring out solutions to the problems
in the organization. Required to distinguish between the performers and the non-performers.
Praise and Punish-
a. Authoritative
b. Authoritative and benevolent
 c. Consultative
d. Participative
Management is benevolent, which means it tries to fulfill the aspirations of the employees at the
same time.

3. 80 precent of Success will be due to Personal Contact

4. Accumulate Small Gains
5. Build Credibility- inside and outside
6. Persist

Barriers to TQM Implementation

Commonly found barriers
● Lack of top management commitment
● Lack of employee involvement
● Non-cooperation of first line managers and middle management
● Lack of clarity in vision
● Losing track of business performance
● Not involving customers and suppliers