“Total Quality Management”
A Project Report
I would like to thank Mrs. Manisha Anand for her support and cooperation in completion of the project report within the stipulated time period.
1. CHAPTER ONE 2. CHAPTER TWO 3. CHAPTER THREE 4. CHAPTER FOUR 5. CHAPTER FIVE 6. CHAPTER SIX 7. CHAPTER SEVEN -
INTRODUCTION CONCEPTS AND PHILOSOPHIES OF TQM
THE ACCEPTABILITY OF TQM THE ESSENTIALS OF TQM
THE EFFECTS OF TQM IMPLEMENTATION OF TQM TQM TOOLS
CASE STUDY ON IBM (TIVOLI SOFTWARE).
TPM 5. BPR 7. 12. IBM 2. ATM 9. TQC 8. ISO 4. CPC 10.QMS International Business Machine Corporation Total Quality Management International Standard Organization Total Productive Maintenance Quality Control Circles Business Process Re-Engineering Total Quality Circles Automated Teller Machines Control Processing Centre Computer Aided Design Including Plan-Do-Check-Act Quality Management System
. QCCs 6. TQM 3.4
GLOSSARY 1.PDCA 13.CAD 11.INCL.
the summarization is being done in the following points. The quality sce-nario . So. European nations and developing nations have also contributed significantly to this development.A. that is. An integrated approach on all vital components of TQM is required to achieve the desired goal.Understanding these facets is essential to promote a successful quality improvement program. 1. therefore is required to promote the understan-ding by launching massive educational and management development programs at all levels so as to create a cultural consciousness towards quality. TQM is not undimensional approach but is multifaceted in nature.S.An all out effort . differs from one national setting to the other. The nations are orienting their quality management strategies and systems to meet the requirements of the opera-ing environment though the primary focus remains the same.globally as a systematic management approach to meet the competitive challenges.5
Every nation has its own independent historical and cultural background. However. TQM has been accepted by both service and manufacturing organizations.Many of the present techniques of quality management were developed in Japan.
. U.. The studies carried out by researchers in different national settings reveal that the concept and philosophies of TQM are not understood by the managers and others. Total Customer Satisfication . therefore.
The application of TQM tools increases a company’s efficiency.6
2. Commitment to satisfy customers. 4. TQM provides a linkage between productivity and quality. The focus of TQM is on: (a) (b) (c) (d) Involvement of everyone in organization in continuous improvement.
. Participation through teamwork. TQM redefines the quality with emphasis on top management commitment and custo-mer satisfaction. to make processes visible. 5. based on the participation of all its members and aiming at long-term success through customer satisfaction. TQM comprises four process steps." In Japanese. 6. Commitment and Leadership of top management. namely: 1. 3. Kaizen – Focuses on Continuous Process Improvement. The benefits of TQM are numerous and are increasingly realized by organizations. centered on quality. and benefits to all members of the organization and to society. repeatable and measureable.
CHAPTER ONE INTRODUCTION
DEFINITION As defined by ISO: "TQM is a management approach of an organization.
education. Armand V. Quality Control: Principles. and Ishikawa. Practice. ORIGINS Although W. Total Quality Control (ISBN 0070203539). a book that was subsequently released in 1961 under the title. The American Society for Quality says that the term Total Quality Management was first used by the U. and the philosophy of Deming to make performance improvements in 1984. government. Feigenbaum was developing a similar set of principles at General Electric in the United States at around the same time. Crosby. Edwards Deming is largely credited with igniting the quality revolution in Japan starting in 1946 and trying to bring it to the United States in the 1980s. TQM requires that the company maintain this quality standard in all aspects of its business. Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes.
. Philip B. TQM has been widely used in manufacturing. Miryokuteki Hinshitsu – Broadens management concern beyond the immediate product. This approach was first tested at the North Island Naval Aviation Depot. and Kaoru Ishikawa also contributed to the body of knowledge now known as TQM." This is consistent with the story that the United States Department of the Navy Personnel Research and Development Center began researching the use of statistical process control (SPC). and Administration.7 2. 3. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations. Joseph Juran. Atarimae Hinshitsu – Focuses on intangible effects on processes and ways to optimize and reduce their effects. Kansei – Examining the way the user applies the product leads to improvement in the product itself. the work of Juran. Crosby. 4. as well as NASA space and science programs.S. and service industries. "Total Quality Control" was the key concept of Feigenbaum's 1951 book. Naval Air Systems Command "to describe its Japanese-style management approach to quality improvement.
. customer focus. which he did during a speech when he got the Deming prize in 1974. This preliminary result suggests that there is insufficient statistical evidence to conclude significant simple relationships between TQM. zerodefects. Given the nature of this study. This implies that the electronics industry cannot assume direct causal linkages between these three constructs. product quality performance and business performance in the electronics industry in Malaysia. product quality performance. "The Making of TQM: History and Margins of the Hi(gh)-Story" from 1994. and business performance. product quality performance. It is generally acknowledged that manufacturing companies need to be quality oriented in conducting their business to survive the business world. Xu claims that "Total Quality Control" is translated incorrectly from Japanese since there is no difference between the words "control" and "management" in Japanese. the results reveal that top management commitment.8 In his paper. employee focus. and business performance. However. process improvement. and quality measurement.
TQM :. supplier relations and training in particular appear to be of primary importance for TQM practices in Malaysian electronics companies. supplier relationship. TQM is an integrated management philosophy and a set of practices that emphasise top management commitment. being the first to use TQM. which might also suggest that there is a more complex relationship between TQM. This paper investigates the structural linkages between TQM. William Golimski refers to Koji Kobayashi. quality-oriented training. the statistical analysis technique called Structural Equation Modelling was used. former CEO of NEC. benchmarking.“A QUALITY ORIENTED APPROACH” Total Quality Management (TQM) is one of quality-oriented approaches that many organisations adopt.
. The success of TQM demands the leadership of top management and continuous involvement. TQM requires a long term commitment for continuous improvement of all processes.
POTENTIAL BENEFITS OF TQM: The advantages of adopting TQM system compared to conventional quality system are numerous and are outlined below. 4. 5. Responsibility for establishments and improvement of systems lies with the management of an organisation. TQM is a strategy for continuously improving performance at all levels and in all areas of responsibility. 3. 2.9
CHARACTERISTICS OF TQM: The characteristics of TQM. TQM is customer oriented. as revealed from above definition are as follows: 1.
It channelises the procedures necessary to achieve quality performance. As TQM focuses on the concept of university. is not restricted to the product or service areas but reflects in other spheres as well. It is a well accepted fact that the negative attitudes of employees and nonparticipative culture of the organization pose the greatest hurdle to organisation’s success.10 1. This serves to satisfy the higher human needs of recognition and self-development and enhances employee’s interest in the job.The needs change from person to person and also from place to place. TQM facilitates to aspire for a top quality performer in every sphere of activity. Quality in its true sense can not be achieved instantly. 3. and communicating these properly to one and all in the organization. it tries to abstract the satisfaction perceptions of the market and thus helps the organisation to identify and meet the requirements of the market in a better way. It helps examine critically and continuously all processes to remove nonproductive activities and waste. on bringing about attitudinal and cultural change through promotion of participative work culture and effective team-work. 4.
2. the organization can channelize their efforts to achieve the desired and objectivated quality performance. It requires a systematic and a long-term planning and strategic approach. growth and prosperity. The employee’s performance. By focusing on defining the quality policies. goals and objectives. The organizations always aim at improving productivity as it leads to reduction in cost resulting in increase in profitability. TQM emphasis. The efforts in this direction are
. However. adopting SQC and SPC techniques and developing and using a system of evaluation . TQM helps to focus clearly on the needs of the market. the customer longs for different satisfaction perspectives which are generally overlooked in the traditional approach. thus. The traditional approach of quality control focusses on the technical details of a product so as to satisfy the customer.
which result in misunderstanding. it gives an edge to the organizations of variable nature to meet the competition. therefore. Many of these can be measured in quantitative terms. This can be assessed by a well-planned research
. They need to be continuous to meet the dynamic challenges. 6. departments and different levels of management thereby providing an effective vehicle of communication and interaction. duplication of efforts. At the same time. TQM emphasizes on a continuous and periodic review so as to make the required changes. It helps to develop good procedures for communication and acknowledging good work. However. Quality improvement efforts cannot be restricted to any time period. TQM brings together members of various related sections.11 contributed because of the formation of quality improvement teams which meet regularly and through a systematic approach which tries to remove nonproductive activity. Improper procedures and inadequate communication are yet another bane of many organizations. It gears organizations to fully understand the competition and develop an effective combating strategy. It helps to review the process needed to develop the strategy of never ending improvement. cost-effectiveness and safety. which includes enrichment of the quality of the worklife and many more are not quantifiable. the intangible benefits. low morale and so on. The culture of well being thus improves housekeeping. confusion. The benefits derived by the organizations. are many and multifaceted. A continuous effort to identify the problems and resolve them helps to reduce the waste. 7. poor quality. 5. The dynamic changes in the global market and the open market policies adopted by a large number of organizations has resulted in increased competition and for many organizations the survival has become a key issue. it has to be established whether they do occur or not in order to prove or disapprove the efficacy of the concept. As TQM helps to understand the pulse of customer and thus the market. low productivity. For this cause it is essential for the organistions to understand the competition and develop and adopt suitable strategies to meet the challenges.
Phillips Semiconductor. The following information is provided to give an understanding of the key elements of this process.12 project or by carrying out an opinion survey periodically. has been killed and resurrected on a number of occasions. Companies who have implemented TQM include Ford Motor Company. SGL Carbon. though simple seem to be creeping back into existence by "bits and pieces" through the evolution of the ISO9001 Management Quality System standard.
CHAPTER TWO CONCEPTS AND PHILOSOPHIES OF TQM
INTRODUCTION: Total Quality Management (TQM). a buzzword phrase of the 1980's. The tangible and intangible benefits of TQM are variable in nature.
. The latest changes coming up for the ISO 9001:2000 standard’s "Process Model" seem to complete the embodiment. The concept and principles. Motorola and Toyota Motor Company. TQM is the concept that quality can be managed and that it is a process.
Management = Quality can and must be managed. An ISO implementation is a basis for a Total Quality Management implementation. In short.
TQM Compared to ISO 9001 : ISO 9000 is a Quality System Management Standard. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives.13
TOTAL QUALITY MANAGEMENT(TQM) : Total = Quality involves everyone and all activities in the company. implementing TQM is being proactive concerning quality rather than reactive. Quality = Conformance to Requirements (Meeting Customer Requirements). TQM is a philosophy of perpetual improvement.
TQM as a Foundation : TQM is the foundation for activities which include. Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction and measurement requirements. about 75 percent of the steps are in place for TQM. The requirements for TQM can be considered ISO plus. TQM = A process for managing quality. Where there is an ISO system. it must be a continuous way of life.
• • • • • •
Meeting Customer Requirements Reducing Development Cycle Times Just In Time/Demand Flow Manufacturing Improvement Teams Reducing Product and Service Costs Improving Administrative Systems Training
Ten Steps to Total Quality Management (TQM):
. a philosophy of perpetual improvement in everything we do.
13. Use a Balanced Approach 10. Pursue a Continuous Improvement Strategy 7. Pursue New Strategic Thinking 2.14 The Ten Steps to TQM are as follows: 1. direct) 2. Quality can and must be managed.
12. 4. not front end costs. Do (deploy. not people are the problem. Reduce Variation 9. Quality must be measured. Training 2. participate) 3. Check (review) 4. Measurement and recognition 4. Problems must be prevented. Life cycle costs. Management Commitment 1. 8. 10. Suggestion scheme 3. Not Correction 5. Reduce Chronic Waste 6. Set True Customer Requirements 4. not just fixed. Use Structured Methodology for Process Improvement 8. Apply to All Functions
Principles of TQM : The Principles of TQM are as follows: 1. support. 2. Excellence teams
. Every employee is responsible for quality. Employee Empowerment 1. The quality standard is defect free. 9. Know your Customers 3. 6. Goals are based on requirements. Management must be involved and lead. 5. 3. Plan (drive. communicate. Quality improvements must be continuous. Act (recognize. 7. Everyone has a customer and is a supplier. Concentrate on Prevention. not negotiated. Processes. 11.
Customer Focus 1. FMEA 3. Systematic measurement and focus on CONQ 2. Service relationship with internal customers 3. DOE.
Processes must be Managed and Improved: Processes must be managed and improved! This involves:
• • • • • • •
Defining the process Measuring process performance (metrics) Reviewing process performance Identifying process shortcomings Analyzing process problems Making a process change Measuring the effects of the process change
Communicating both ways between supervisor and user
. TOPS (FORD 8D . Excellence teams 3.Team Oriented Problem Solving)
15. Fact Based Decision Making 1.15
14. Continuous Improvement 1. Supplier partnership 2. improve standards
16. Cross-functional process management 4. Customer driven standards
Plan and organize for quality improvement. maintain. The 7 statistical tools 4. Attain. Never compromise quality 4. SPC (statistical process control) 2.
produce and support our products. People
Get processes "in control" Work with other employees and managers to identify process problems and eliminate them
Managers and/or Supervisors Work on Processes
• • •
Provide training and tool resources Measure and review process performance (metrics) Improve process performance with the help of those who use the process
Planning a Change:
. All people work in processes.16
Key to Quality: The key to improving quality is to improve processes that define.
TQM PROBLEM SOLVING SEQUENCE:
TQM Process Improvement and Problem Solving Sequence
PLAN (PLAN A CHANGE) DEFINE THE PROBLEM 1.sampling process is doing .sampling ****To ensure continuous improvement. and effect • Your o Scatter knowledge • Histograms 2.
8. Describe the "PROCESS" o Process Flow Analysis's o Flow charts o List of steps 5. EVALUATE POSSIBLE CAUSES DO (IMPLEMENT THE CHANGE) MAKE A CHANGE CHECK (OBSERVE THE EFFECTS) TEST THE CHANGE ACTION (EMBED THE FIX INTO THE PROCESS FOR GOOD) TAKE PERMANENT ACTION 12. distribution diagrams • Scatter . and B.sampling 3. The process is good enough o Control charts . Ensure the fix is embedded in the process and that the resulting process is used.sampling analysis being o Frequency • Scatter processed. Identify the "Big" problem o Brainstorming o Checklists o Pareto analysis
THE EIGHT ELEMENTS OF TQM:
. Determine what 11. Determine what relationship change would help change worked between cause (confirmation). o Regression process . Continue to monitor the process to ensure: A. Identify the 7. Determine • Control diagrams Inference o Control charts what the Charts .Process o Pareto charts 9. Determine the 10.sampling of value to the ****Then make commodity. The problem is fixed for good. Recognize that what you are doing is a "PROCESS" IDENTIFY POSSIBLE CAUSES 6. Determine what diagrams of the • Control charts commodity past data shows. Define some now • Pareto measurable o Control charts analysis characteristics . the change. "BRAINSTORM" what is causing the problem. return to step 5.
6. planning. It is a two-faceted subject represented by organizational and individual ethics. 3. The characteristic is what customers (internal or external) expect
.It includes: Training. each element offers something different to the TQM concept. values. an organization must concentrate on the eight key elements:
1. It fosters openness. These elements can be divided into four groups according to their function. To be successful implementing TQM. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. 4. 7. Ethics Integrity Trust Training Teamwork Leadership Recognition Communication
This paper is meant to describe the eight elements comprising TQM. The groups are: I. The culture requires quality in all aspects of the company's operations. integrity and trust. Integrity and Trust. 2. Total Quality is a description of the culture. design. fairness. 5. TQM requires the help of those eight key elements. with processes being done right the first time and defects and waste eradicated from operations. 2.It includes: Communication. Individual ethics include personal rights or wrongs. These three elements move together. Ethics . however.Integrity implies honesty. Integrity .It includes: Recognition. Foundation TQM is built on a foundation of ethics. Foundation . Roof . Teamwork and Leadership.19 Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Binding Mortar .
Key Elements TQM has been coined to describe a philosophy that makes quality the driving force behind leadership. This is the key to unlocking the ultimate potential of TQM. III. I. and improvement initiatives. fairness and sincerity and allows involvement by everyone. 1. 8. attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. For this. and adherence to the facts and sincerity. Building Bricks . morals. IV.Ethics is the discipline concerned with good and bad in any situation. II.It includes: Ethics.
bricks are placed to reach the roof of recognition. In teams. It includes: 4. Training . 3. So. B. These teams generally work for one to two hours a week. It allows decision making at appropriate levels in the organization. fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Without trust. Teams also provide more permanent improvements in processes and operations. self-managing teams and quality circles. Trust fosters full participation of all members. Trust is essential to ensure customer satisfaction.Trust is a by-product of integrity and ethical conduct. the ability to function within teams. Teamwork . 5. teamwork is also a key element of TQM. people feel more comfortable bringing up problems that may occur. Quality Improvement Teams or Excellence Teams (QITS) . People see the opposite of integrity as duplicity. the business will receive quicker and better solutions to problems. trust builds the cooperative environment essential for TQM.These teams consist of small groups of skilled workers who share tasks and responsibilities.To become successful in business. problem solving.20 and deserve to receive.These are temporary teams with the purpose of dealing with specific problems that often re-occur. and can get help from other workers to find a solution and put into place.Bricks Basing on the strong foundation of trust. There are mainly three types of teams that TQM organizations adopt: A. C. Problem Solving Teams (PSTs) . They generally last from one week to three months. These teams are set up for period of three to twelve months. ethics and integrity. Natural Work Teams (NWTs) . business economics and technical skills.Training is very important for employees to be highly productive. Training that employees require are interpersonal skills. TQM will not work in an atmosphere of duplicity. job management performance analysis and improvement. employees are trained so that they can become effective employees for the company. II. and teaching their employees the philosophies of TQM. With the use of teams. It allows empowerment that encourages pride ownership and it encourages commitment.
. During the creation and formation of TQM. the framework of TQM cannot be built. These teams use concepts such as employee involvement teams.These are temporary teams to solve certain problems and also to identify and overcome causes of problems. decision making. Trust . Supervisors are solely responsible for implementing TQM within their departments.
Leadership . For communication to be credible the message must be clear and receiver must interpret in the way the sender intended. make strategic directions that are understood by all and to instill values that guide subordinates. methods and performance measures for achieving those goals. values and goals are transmitted down through out the organization to provide focus. everything is bound by strong mortar of communication. This forms a level of trust between supervisors and employees. suppliers and customers. Employees strive to receive recognition for themselves and their teams. III. Supervisors must keep open airways where employees can send and receive information about the TQM process.By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. This is also similar to empowering communication. By this the supervisors are able to make the employees clear about TQM. For TQM to be successful in the business. As people are recognized. Communication means a common understanding of ideas between the sender and the receiver. Upward communication .This is the dominant form of communication in an organization. Presentations and discussions basically do it. believe in it and then demonstrate their belief and commitment through their daily practices of TQM. the supervisor must be committed in leading his employees.21 6. As employees provide insight and constructive criticism. There are different ways of communication such as: A. Starting from foundation to roof of the TQM house. Sideways communication . A key point is that TQM has to be introduced and led by top management.BindingMortar 7. philosophies.
.It is possibly the most important element in TQM. The success of TQM demands communication with and among all the organization members. Downward communication . Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems. It acts as a vital link between all elements of TQM. A supervisor must understand TQM. It also allows dealing with customers and suppliers in a more professional manner.It binds everything together. Leadership in TQM requires the manager to provide an inspiring vision. B. productivity. It should be provided for both suggestions and achievements for teams as well as individuals. clarity and direction.Recognition is the last and final element in the entire system. where supervisors keep open ears and listen to others.This type of communication is important because it breaks down barriers between departments. It appears everywhere in organization. Communication coupled with the sharing of correct information is vital. supervisors must listen effectively to correct the situation that comes about through the use of TQM.Roof 8. Communication . The supervisor makes sure that strategies. C. Detecting and recognizing contributors is the most important job of a supervisor. IV. Recognition . there can be huge changes in self-esteem.
Training is the key by which the organization creates a TQM environment. internationally oriented market have been changing rapidly. and give credit where credit is due is the motto of a successful TQM organization
THE TQM MODEL: At the century close. places and time such as. the business entities cannot be successful TQM implementers. international orientation of management that sweeps national boundaries. Recognition comes in its best form when it is immediately following an action that an employee has performed. ethics and trust would be a great remiss. To achieve excellence. make the competition stronger than ever. • • Places .Recognition can given at any time like in staff meeting. recognition should be given to people who contributed to the overall completed task. annual award banquets. Without these elements. Ways . Time . Recognition comes in different ways. enter new markets. plaques. train employees to provide a quality product.Good performers can be recognized in front of departments.It can be by way of personal letter from top management. Management's effort has been directed towards discovering what makes a company excellent. create an environment where there is no fear to share knowledge. introduction of new technologies. companies must develop a corporate culture of treating people as their most important asset and provide a consistent level of high quality products and services in every market in which they operate. and set realistic. Also by award banquets. It is very clear from the above discussion that TQM without involving integrity. lead by example. competitive long-term objectives. Lack of communication between departments. and shift towards customer focused strategies. In order to expand business. Leadership and teamwork go hand in hand. the creation of the global market. Such an environment has supported the wide acceptance of Total Quality Management (TQM) which
. supervisors and employees create a burden on the whole TQM process. on performance boards and also in front of top management. in fact it would be incomplete.
We can conclude that these eight elements are key in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the work place. The criteria for success in this global. Last but not the least. etc. Hence. excellence became an imperative. trophies etc.22 quality and the amount of effort exhorted to the task at hand.
1) brings the customer's requirement into the system.satisfying customers -. therefore.23 emerged recently as a new. The proposed 4-pillar model (Figure 3.
The Structure of TQMEX:
. challenging. This makes the approach to TQM more complete.people. The additional pillar -. should be understood as management of the system through systems thinking. which means understanding all the elements in the company and putting them to work together towards the common goal.
The Four Pillars of TQM The role of top management in implementation of total quality is crucial and its input on people far-reaching. technology and structure. marketable philosophy. There is also a need for a systematic approach so that each element of TQMEX can be bonded together smoothly. Oakland  originated the idea of a 3-cornerstone model. The TQMEX Model advocates an integrated approach in order to support the transition to systems management which is an ongoing process of continuous improvement that begins when the company commits itself to managing by quality. The Model illuminates the elements that form a base to the understanding of TQM philosophy and implementation of the process company-wide. TQM.is vital because it explicitly addresses customers requirements. Without it TQM would have no objective. It involves three spheres of changes in an organization -.
The model should be simple.24
The Logic of TQMEX:
In order to have a systematic approach to TQM. ISO 9000 is to develop a quality management system based on the good practices in the previous three steps. The idea was to develop a universally applicable step-by-step guideline by including recognized practices in TQM:
• • • • •
Japanese 5-S Practice (5-S) Business Process Re-engineering (BPR) Quality Control Circles (QCCs) ISO 9001/2 Quality Management System (ISO) Total Productive Maintenance (TPM)
As Osada pointed out. They improve human resources capability to achieve the business objectives. 5-S is the key to total quality environment. It is more concerned with the business objectives and systems. and should follow as Step 2. a model is a sequence of steps arranged logically to serve as a guideline for implementation of a process in order to achieve the ultimate goal. this should be Step 3. BPR is concerned with re-defining and designing your business process in order to meet the needs of your customers effectively. Therefore. The Model also reflects teachings of the contemporary quality gurus. Therefore. Generally. it should be the first step. It also has to sustain the changes in business environment of the new era. TPM is a result of applying 5-S to equipment based on a sound quality
. QCCs are concerned with encouraging the employees to participate in continuous improvement and guide them through. logical and yet comprehensive enough for TQM implementation. it is necessary to develop a conceptual model.
the Japanese sense of responsibility to one's superiors and subordinates made it easier to accept Deming's message that management's role was to provide the optimal conditions for the workers to do the best job. and Cross Function Management. Hoshin/Policy Management. few but the Japanese took Deming seriously. They can be visualized with the following picture. the organization is already very close towards achieving TQM. TQMEX is a sequential model which is easy to remember and simple to implement. The Japanese identify three major dimensions of TQM: Daily Management. you have to start early too.
. The Japanese then extended Deming's teaching to many dimensions of management. In fact ISO 9001 requires procedures for process control and inspection and testing equipment which are part of TPM. Companies which have already gone through some degree of improvement using some of the steps should review what have not been done and do it as their next step of improvement.25 management system. although it is not simple to make a model simple! Companies starting to implement TQM should follow TQMEX step-by-step. Known for his legendary attacks on executives and compassion for the worker. This is in line with the quality principle of Keep It Short and Simple (KISS). Here are TQM models from the Japanese Society of Quality and the Japan Standards Association that show how extensive their definition of TQM is. If the above five steps have been implemented successfully. We will study these in detail in the course.
THE ACCEPTABILITY OF TQM
JAPANESE TQM MODEL:
At first. In order to maximize your benefits from TQMEX. Therefore TPM should be implemented in Step 5.
circles and company wide quality control took place in Japan more rapidly and successfully.Inspite of the fact that USA developed the techniques and concepts of SQC and TQC and the japenese imported these techniques. USA is at crossroads today. integration and
. While the American companies remained concerned about detecting and segregating defective parts from good ones. the Japanese companies devised systems to reduce defects and produce good quality products. concept and techniques in terms of Q. the further orientation and development in philoshophy.The most critical challenge facing U. Much of the quality movement in USA is based on tools and techniques developed by the japenese.S quality movement is the development and implementation of quality focused corporate management systems that achieve the coherence.C. Adoption of these techniques requires complete redevelopment in both methods and emphasis.This resulted in America losing its position of dominance not only in the American market but also in the world.26
TQM IN USA:
As regards quality.
lot inspection and sampling schemes. Each organisation determines independently what it will produce and what quality policies it will adopt. Administrators for system of quality control. The American companies are characterized by: 1.
3. Advocates for SQC. and 3. A high concentration of industry on relatively few companies.Emphasis on technical tools of control charts. Marguardt divides the evolution of quality movement in USA in three periods: 1. Stress on promoting share-holders. -And many more
. These features of autonomous organisations and professional management have a considerable impact on the conduct of quality function. -Today customers avail ATM services 24 hrs -Book airline tickets & check-in over phone -Self-service at fast food restaurant. 2.Emphasis on the cost of quality and managerial aspects of organizing the quality. TQM in Service Industry TQM in Service Industry Introduction Today’s customer has before him the possibility of a wider choice of products & Services than ever before .He is going to be demanding & keen on having the best services in the shortest possible time & at the minimum cost . 2.He will look for solutions that are more specific to his needs thus creating opportunity of many niche market.27 comprehensiveness of quality management in japan. Advertising and selling quality consciousness-Emphasis on changing organizational culture and providing an environment that will enable people to activate and sustain in their own work and in products and services produced by the organistions with the focus on needs of customers. Running the company by professional managers.
life style etc -Demand for new kind of services -Advent of new technologies -Fast development of information technology & computerisation -Lean manufacturing .28 What is different ? -Service is also a product of different kind . and is far wider in its application than just assuring product or service quality – it is a way of managing people and business processes to ensure complete customer satisfaction at every stage. Banking)
THE ESSENTIALS OF TQM
Introduction TQM is the way of managing for the future. Growth of Service sector Service sector is growing rapidly due to -Change in environment . -Simultaneity ( promptness ) -Heterogeneity -Unique dimensions of some services (e.
. -No time delay between the production & delivery of service -A defective product can be replaced but a defective service may create a permanent damage.g. (contracting out most activities) Challenge of Service sector Delight customers -In a dynamic environment which is changing fast -In growing competitive market -With relatively shorter product life cycle -Requiring more customisation Service Quality Dimensions Quality of Services differs from manufactured products -Special characteristics including intangibility.
culture and communication running through them. can make a total quality organisation. TQM. communication of the quality message. This core must be surrounded by commitment to quality. What is quality?
. These are the foundations of TQM. together.
The core of TQM is the customer-supplier interfaces. and recognition of the need to change the culture of the organisation to create total quality. results in an organization doing the right things right.29 internally and externally. Other sections explain people. and they are supported by the key management functions of people. processes and systems in the organisation. processes and systems in greater detail. first time. all having the essential themes of commitment. combined with effective leadership. and at each interface lie a number of processes. This section discusses each of these elements that. both externally and internally.
Customers and suppliers There exists in each department.30 A frequently used definition of quality is “Delighting the customer by fully meeting their needs and expectations”. Failure to meet the requirements in any part of a quality chain has a way of multiplying. These are “the quality chains”. and so the situation is exacerbated. the organisation must understand them. internal or external. and they can be broken at any point by one person or one piece of equipment not meeting the requirements of the customer. every person in the quality chain must be trained to ask the following questions about every customer-supplier interface:
Customers (internal and external) • Who are my customers? • What are their true needs and expectations?
. The ability to meet customers’ (external and internal) requirements is vital. These may include performance. having identified them. availability. In addition. each home.cost effectiveness and price. maintainability. for an organisation to be really effective. a series of customers. appearance. therefore. To achieve quality throughout an organization. The failure usually finds its way to the interface between the organization and its external customer. actually to the external customer. It is. imperative that the organisation knows what these needs and expectations are. leading to yet more failure and problems. quality must span all functions. Quality starts with market research – to establish the true requirements for the product or service and the true needs of the customers. The cooperation of everyone at every interface is necessary to achieve a total quality organization. all departments and all activities and be a common language for improvement. delivery. each office. reliability. all people. and measure its own ability to meet them. in the same way that the Japanese achieve this with company wide quality control. However. suppliers and customer supplier interfaces. and failure in one part of the system creates problems elsewhere. or in the worst case.
I find out what these are? • How can I measure my ability to meet their needs and expectations? • Do I have the capability to meet their needs and expectations? (If not. each person must respect the needs and expectations of their suppliers. These may include: • Leaders not giving clear direction • Not understanding. Poor practices To be able to become a total quality organization. where both parties share and benefit. or ignoring competitive positioning
. or can. The ideal situation is an open partnership style relationship. some of the bad practices must be recognized and corrected. what must I do to improve this capability?) • Do I continually meet their needs and expectations? (If not.31
• How do. what prevents this from happening when the capability exists?) • How do I monitor changes in their needs and expectations? Suppliers (internal and external) • Who are my internal suppliers? • What are my true needs and expectations? • How do I communicate my needs and expectations to my suppliers? • Do my suppliers have the capability to measure and meet these needs and expectations? • How do I inform them of changes in my needs and expectations? As well as being fully aware of customers’ needs and expectations.
organizing and understanding each activity. reactive behaviour • The “It’s not my problem” attitude How many of these behaviours do you recognize in your organization? The essential components of TQM – commitment & leadership TQM is an approach to improving the competitiveness.32
• Each department working only for itself • Trying to control people through systems • Confusing quality with grade • Accepting that a level of defects or errors is inevitable • Firefighting. and middle managers must. strategies and benefits to the people for whom they have responsibility. A fundamental requirement is a sound quality policy. All senior managers must demonstrate their seriousness and commitment to quality. and of removing all the wasted effort and energy that is routinely spent in organizations. It is a way of planning. to be successful. as well as demonstrating their commitment. It ensures the leaders adopt a strategic overview of quality and focus on prevention not detection of problems. effectiveness and flexibility of an organization for the benefit of all stakeholders.
. supported by plans and facilities to implement it. Whilst it must involve everyone. it must start at the top with the leaders of the organization. Only then will the right attitudes spread throughout the organization. ensure they communicate the principles.
combined with a TQM approach. which is translated into action plans down through the organization. should result in a quality organization. The following is a list of points that leaders should consider. The 5 requirements for effective leadership are: • Developing and publishing corporate beliefs. plus take part in regular improvements of it and ensure it is understood at all levels of the organization. often as a mission statement • Personal involvement and acting as role models for a culture of total quality • Developing clear and effective strategies and supporting plans for achieving the mission and objectives • Reviewing and improving the management system • Communicating. motivating and supporting people and encouraging effective employee participation The task of implementing TQM can be daunting. Effective leadership starts with the development of a mission statement. reviewing and monitoring the policy. they are a distillation of the various beliefs of some of the quality gurus: • The organisation needs a long-term commitment to continuous improvement. followed by a strategy.33 Leaders must take responsibility for preparing. • Adopt the philosophy of zero errors/defects to change the culture to right first time • Train people to understand the customer/supplier relationships • Do not buy products or services on price alone – look at the total cost • Recognise that improvement of the systems must be managed
. These. values and objectives. with satisfied customers and good business results.
rules and the “climate”. and using that knowledge to successfully map the steps needed to accomplish a successful change. barriers to pride of workmanship and fiction – get facts by studying processes • Constantly educate and retrain – develop experts in the organisation • Develop a systematic approach to manage the implementation of TQM Culture change The failure to address the culture of an organisation is frequently the reason for many management initiatives either having limited success or failing altogether.34
• Adopt modern methods of supervising and training – eliminate fear • Eliminate barriers between departments by managing the process – improve communications and teamwork • Eliminate goals without methods. behaviours. as discussed in the section on People. dominant values. is an important part of the quality journey. The culture in any organisation is formed by the beliefs. needs two key elements: • Commitment from the leaders • Involvement of all of the organisation’s people There is widespread recognition that major change initiatives will not be successful without a culture of good teamwork and cooperation at all levels in an organisation. every time. standards based only on numbers. from one of acceptance of a certain level of errors or defects to one of right first time. e.
. A culture change.g. norms. Understanding the culture of an organisation.
In each area or function within an organisation there will be many processes taking place. people. methods and operations. The section on Processes discusses processes and how to improve them. called key or core business processes. which are groups of smaller processes.35
The building blocks of TQM: processes. and each can be analysed by an examination of the inputs and outputs to determine the action necessary to improve quality. which is the transformation of a set of inputs. management systems and performance measurement Everything we do is a Process.
. and Implementation covers how to prioritise and select the right process for improvement. into the desired outputs. which can include action. which satisfy the customers’ needs and expectations. These must be carried out well if an organisation is to achieve its mission and objectives. In every organisation there are some very large processes.
and equally importantly. It is imperative that the leaders take responsibility for the adoption and documentation of an appropriate management system in their organisation if they are serious about the quality
. but also. people will not engage in improvement activities without commitment and recognition from the organisation’s leaders. team selection and development and models for successful teamwork.36
The only point at which true responsibility for performance and quality can lie is with the People who actually do the job or carry out the process. The section on People expands on these issues. each of which has one or several suppliers and customers. sustain and build upon them. An appropriate documented Quality Management System will help an organisation not only achieve the objectives set out in its policy and strategy. However. covering roles within teams. a climate for improvement and a strategy that is implemented thoughtfully and effectively. An efficient and effective way to tackle process or quality improvement is through teamwork.
and should be. ideally being cascaded down and most effectively undertaken as team activities and this is discussed in the section on Performance. Once the strategic direction for the organisation’s quality journey has been set. and to ensure the desired level of performance is being achieved and sustained. established at all levels in the organisation. The Systems section discusses the benefits of having such a system. They can.
THE EFFECTS OF TQM
Improving Financial Services through TQM
.37 journey. how to set one up and successfully implement it. it needs Performance Measures to monitor and control the journey.
1) Selecting the theme: A meeting of the senior management of the company was held. The list was prioritized using the weighted average table. and therefore had few claims to process so far. The program was conducted for the senior management team of the company. implementation strategies and imperatives of TQM. The key process stages were mapped:
. "Between what stages do we consider turnaround?" Perceptions varied. Define the Problem 1. The company was young. The proposal-to-policy process therefore impacted the greatest number of customers. rapidly expanding company in the financial services sector with no previous experience with Total Quality Management (TQM).customer service and sales productivity. followed by a structured discussion to arrive at a consensus on the two most important themes -. "What type of policies do we address?" Medical policies or non-medical? The latter are take longer because of the medical examination of the client required. cases. 1. This program used interactive exercises and real life case studies to explain the concepts of TQM and to interest them in committing resources for a demonstration project. Brainstorming produced a list of more than 20 problems. which used the Seven Steps of Problem Solving (similar to DMAIC). "Reducing the Turnaround Time from an Insurance Proposal to Policy" was selected as the most obvious and urgent problem. with each person thinking about the turnaround within their department. Under the customer service theme. An appropriate cross functional group was set up to tackle this problem.2) Problem = customer desire – current status: Current status: What did the individual group members think the turnaround is currently? As each member began thinking questions came up. The quality project began with a two-day introductory awareness program covering concepts. The demonstration project. Step 1. was to show them how TQM concepts worked in practice before they committed resources for a company-wide program.38 The work described in this case study was undertaken in a young.
individual group members were asked to think as customers -. Customer desire: What was the turnaround desired by the customer? Since a customer survey was not available. When would they expect the policy in hand? From the customer's point of view they realized that they did not differentiate between medical and non-medical policies. It averaged: Non-Medical Policies Medical Policies 17 days 35 days
Invoking the slogan from the awareness program "In God we trust. Their perception averaged out six days for the required turnaround.39
Several sales branches in different parts of the country sent proposals into the Central Processing Center. The perception of the length of turnaround by different members of the team was recorded.imagine they had just given a completed proposal form to a sales agent. Later the entire cycle could be included. the rest of us bring data" the group was asked to collect data and establish reality. Armed with a suitably designed check sheet they set about the task.
. After considerable debate it was agreed at first to consider turnaround between entry into the computer system at the Company Sales Branch and dispatch to the customer from the Central Processing Center (CPC).
40 "Is this the average time or maximum time that you expect?" they were asked.Imbalanced processing line . For 99. "Maximum. etc.Too many handovers .Non-value added activities. These were:Input arrival patterns
• • • •
Waiting times in process . It was clear therefore that the average must be less than six days. The concept of sigma was explained and was rapidly internalized. Processing times Scheduling Transport times Deployment of manpower
. The importance of "variability" had struck home.7 percent delivery within the customer limit the metric was defined. Step 2.Batching of work . Therefore the initial target taken in the Mission Sheet (project charter) was to reduce the turnaround by 50 percent -to 32 and 59 days respectively. Customer desire: Average+3 Sigma turnaround = less than 6 days Current status: Non-medical policies (Average 19/Sigma 15) Average+3 sigma= 64 days Medical (Average 37/Sigma 27) Average+3 sigma= 118 days The Problem was therefore defined: Reduce Average+3 sigma of turnaround for: Non-Medical Policies From 64 to 6 days Medical Policies From 118 to 6 days The performance requirement appeared daunting. Analysis of the Problem In a session the factors causing large turnaround times from the principles of JIT were explained." they responded.
41 Typically it was found that waiting times constitute the bulk of processing turnaround times. Process Mapping (Value Stream Mapping in Lean) was undertaken. The aggregate results are summarized below: Number of operations 84 Number of handovers 13 In-house processing time (estimated) 126 man-mins. Range of individual stage time 2 to 13 mins. Could this be true? Could the turnaround be 126 minutes for internal processing without waiting? The group started to question of the status quo. The change process had begun. To check this estimate it was decided to collect data -- run two policies without waiting and record the time at each stage. The trial results amazed everyone: Policy No. 1 took 100 minutes and Policy No. 2 took 97 minutes. Almost instantly the mindset changed from doubt to desire: "Why can't we process every proposal in this way?" Step 3. Generating Ideas In the introductory program of TQM during the JIT session the advantages of flow versus batch processing had been dramatically demonstrated using a simple exercise. Using that background a balanced flow line was designed as follows: 1. Determine the station with the maximum time cycle which cannot be split up by reallocation -- 8 minutes. 2. Balance the line to make the time taken at each stage equal 8 minutes as far as possible. 3. Reduce the stages and handovers -- 13 to 8. 4. Eliminate non-value added activities -- transport -- make personnel sit next to each other. 5. Agree processing to be done in batch of one proposal. Changing the mindset of the employees so they will accept and welcome change is critical to building a self-sustaining culture of improvement. In this case, the line personnel were involved in a Quality Mindset Program so that they understood the reasons for change and the concepts behind them and are keen to experiment with new methods of working. The line was ready for a test run.
Step 4. Testing the Idea Testing in stages is a critical stage. It allows modification of ideas based upon practical experience and equally importantly ensures acceptance of the new methods gradually by the operating personnel. Stage 1: Run five proposals flowing through the system and confirm results. The test produced the following results: Average turnaround time: < 1 day In-house processing time: 76 mins. There was jubilation in the team. The productivity had increased by 24 percent. The head of the CPC summarized: "I gave five files for processing, and went for a meeting. Emerging from the meeting about 30 minutes later I was greeted by the dispatch clerk jubilantly reporting, "'Madam, the TQM files are ready for dispatch.'" The mindset was dramatically changed and line personnel were now keen to push the implementation. Stage 2: It was agreed to run the new system for five days -- and compute the average and sigma of the turnaround to measure the improvement. It was agreed that only in-house processing was covered at this stage and that the test would involve all policies at the CPC but only one branch as a model. This model, once proved, could be replicated at other branches. The test results showed a significant reduction in turnaround: 1. For all non-medical policies From 64 to 42 days or 34% 2. For policies of the model branch From 64 to 27 days of 60% The Mission Sheet goal of 50 percent reduction had been bettered for the combined model branch and CPC. Further analysis of the data revealed other measures which could reduce the turnaround further. Overall reduction reached an amazing 75 percent. Turnaround, which had been pegged at 64 days, was now happening at 99.7 percent on-time delivery in 15 days.
43 Step 5. Implementing the Ideas Regular operations with the new system was planned to commence. However, two weeks later it was still not implemented. One of the personnel on the line in CPC had been released by his department for the five-day trial to sit on the line but was not released on a regular basis. The departmental head had not attended the TQM awareness program and therefore did not understand why this change was required. There were two options -- mandate the change or change the mindset to accept the change. Since the latter option produces a robust implementation that will not break down under pressures it was agreed that the group would summarize TQM, the journey and the results obtained in the project so far and also simulate the process with a simple exercise in front of the department head. This session was highly successful and led to the release of the person concerned on a regular basis. Step 6. Check the Result The process was run for one month with regular checks. The results obtained were marginally better than the trials conducted in Step 5: Average 11 days Sigma 9 days Average+3 sigma 38 days Step 7. Standardize Control/Document the Improvement Story
Essentially the in-house processes in two centers of processing -- the CPC and one sales branch -- had been impacted so far. To make sure that the gains were held, control charts were introduced in both locations. Sample x-bar
and any deterioration was dealt with by finding and killing the root causes of the problems. For instance one sales manager reported that a customer had received a policy within a week of giving a proposal and was so amazed that he said.a 60 percent reduction. "If you give such service I will give you the next policy also!" Adoption of a similar process at the CPC and the model branch for medical policies has already reduced the average+3 sigma of turnaround time by 70 percent -. The project objective of 50 percent in the first stage has been achieved.
.from 118 days to 37 days. A quality improvement story was compiled by the project Leader for training and motivating all employees. The corresponding all-India reduction was from 118 days to 71 days -. Customer reaction: Sales management and sales agents (internal customers) clearly noticed the difference.44 and sigma-control charts for the CPC are shown below:
A special "Grind It In" session was conducted for line personnel to ensure that the control chart was updated every day.
2. Working with the bank to improve the turnaround time of banking checks. 2. 1. prioritizing and training sales branches to avoid the causes of rework. 3. Streamline the process of medical exam of the client from 37 to 24 days.45 Non-medical policies: Goal to reduce turnaround from 42 days to about 15 days.
. Roll out process to branches to achieve 24 days throughout the country. Medical policies: Goal to reduce turnaround from 71 days to about 24 days. Considering processing proposals while check clearance is in progress. 4. 1. Roll out process to branches to reduce turnaround from 71 to 37 days. Minimize rework by analyzing.
TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed.46
IMPLEMENTATION OF TQM
Implementation Principles and Processes
A preliminary step in TQM implementation is to assess the organization's current reality. there will be both employee skepticism and a lack of skilled change agents. TQM will be easier to implement." and action vehicles. or poor employee morale. a crisis or galvanizing event. People need to feel a need for a change. a certain level of stress is probably desirable to initiate TQM. A
. An organization should be basically healthy before beginning TQM. precipitating events leading to TQM. usually at lower levels of the organization. individual "prime movers. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. TQM would not be appropriate. weak administrative systems. If an organization has been historically reactive and has no skill at improving its operating systems. If the current reality does not include important preconditions. Departures from tradition are activities. strategic decisions. and if it has been able to successfully change the way it operates when needed. its current needs. Relevant preconditions have to do with the organization's history. and the existing employee quality of working life. If it has significant problems such as a very unstable funding base. If this condition prevails. However. lack of managerial skill. If an organization has a track record of effective responsiveness to the environment. which occur when entrepreneurs move outside the normal ways of operating to solve a problem. These forces include departures from tradition. a comprehensive program of management and leadership development may be instituted.
may be used to kick off the process. as described above). implementation of TQM. the next step. sometimes designed as input or dialog sessions. In fact. This should be a responsibility of top management. action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized. announcing the change goals to the organization. Task identification would include a study of present conditions (assessing current reality. Steps in Managing the Transition Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new system such as TQM: identifying tasks to be done. Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. can also help create a sense of urgency which can mobilize people to act. In fact. and TQM newsletters may be an effective ongoing communication tool to keep employees aware of activities and accomplishments. designing mechanisms to communicate the change. mechanisms beyond existing processes will need to be developed. in this case. this may be a funding cut or threat. if it is not too disabling. creating necessary management structures.
. To communicate the change. who takes charge in championing the new idea and showing others how it will help them get where they want to go. This final step would include securing outside consultation and training and assigning someone within the organization to oversee the effort. Developing commitment strategies was discussed above in the sections on resistance and on visionary leadership. or demands from consumers or other stakeholders for improved quality of service. Finally. such as through a force field analysis. assessing readiness. and assigning resources. creating a model of the desired state. Such a leader may then become a prime mover. and assigning responsibilities and resources. designing transition management structures. is also a responsibility of top management. A plan to implement TQM may be such a strategic decision. Special all-staff meetings attended by executives. An organization wide steering committee to oversee the effort may be appropriate. After a crisis.47 crisis. developing strategies for building commitment. In the case of TQM.
processes. provide necessary support. While consultants will be invaluable with initial training of staff and TQM system design. Always keep in mind that TQM should be purpose driven. in all aspects of work. funding sources. Leadership styles and organizational culture must be congruent with TQM. employees (management and others) should be actively involved in TQM implementation. It stems from the belief that mistakes can be avoided and defects can be prevented. reducing bureaucracy and costs. The Concept of Continuous Improvement by TQM TQM is mainly concerned with continuous improvement in all work. comprehensive. to detailed execution of work elements on the shop floor.48 Management of resources for the change effort is important with TQM because outside consultants will almost always be required.) as possible. Use input from stakeholder (clients. and improving service to clients and the community. but more importantly with improving capabilities to produce better results in the future. this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist. Be clear on the organization's vision for the future and stay focused on it. and. Leaders will need to maintain their commitment. A collaborative relationship with consultants and clear role definitions and specification of activities must be established. of course. etc. In summary. first assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy. The
. from high level strategic planning and decision-making. If they are not. TQM can be a powerful technique for unleashing employee creativity and potential. and long-term process. as a result of continuously improving capabilities. technology and machine capabilities. Remember that this will be a difficult. maximize employee involvement in design of the system. Continuous improvement must deal not only with improving results. people. keep the process visible. perhaps after receiving training in change management which they can then pass on to other employees. It leads to continuously improving results. Choose consultants based on their prior relevant experience and their commitment to adapting the process to fit unique organizational needs. and hold people accountable for results. referring agencies.
or at least permitted.
. by faulty systems and processes. technology. Sales. but most of them are caused. . detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation). This means that the root cause of such mistakes can be identified and eliminated. and repetition can be prevented by changing the process.49 five major areas of focus for capability improvement are demand generation. Engineering. etc. There are three major mechanisms of prevention: 1. operations and people capability. Where mistakes recur.proofing or PokaYoke). Where mistakes can't be absolutely prevented. (Stop in time). HR. stopping production until the process can be corrected. Preventing mistakes (defects) from occurring (Mistake . Marketing. 2. to prevent the production of more defects. A central principle of TQM is that mistakes may be made by people. 3. which include:
• • • • • • • • • • • • •
Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time/Demand Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Line Management ownership Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities. by all personnel. Purchasing. supply generation. TQM is the foundation for activities. R&D. in Manufacturing.
but what failures caused them to be chosen. A commonly-discovered failure is for the product to disintegrate. secondary measures of the production process are designed. the process is fixed. where TQM generally starts by sampling a random selection of the product. The failure is then isolated and engineers design an improvement. If fasteners fail. but cheaper than a DC motor combined with a gearbox. in which the product is mounted on a vibrator in an environmental oven. It is important to record not just the measurement ranges. It took people a while to develop tests to find emergent problems. After TQM has been in use. Another popular test is called "shake and bake". but equally expensive. The stepper motor is more expensive than a DC motor. or become much wider.
. it's very common for parts to be redesigned so that critical measurements either cease to exist. The statistical distributions of important measurements are tracked. and then the causes of the failure are corrected. cheaper fixes can be substituted later (say. The error band is usually a tighter distribution than the "failure band". so it lasts ten or more times as long. and operated at progressively more extreme vibration and temperatures until something fails. The causes of any failures are isolated. so that the production process is fixed before failing parts can be produced.50 TQM in manufacturing Quality assurance through statistical methods is a key component in a manufacturing organization. One disadvantage might be that a stepper motor can hum or whine. If a gearbox wears out first. when the product is redesigned) with no loss of quality. One popular test is a "life test" in which the sample product is operated until a part fails. The sample can then be tested for things that matter most to the end users. or improved adhesives to ensure that parts remain glued. and usually needs noise-isolating mounts. When parts' measures drift into a defined "error band". a typical engineering design improvement might be to substitute a brushless stepper motor for a DC motor with a gearbox. the improvements might be to use measured-tension nutdrivers to ensure that screws don't come off. The electronics are radically different. The improvement is that a stepper motor has no brushes or gears to wear out. In that way.
Dubois (2002) argued that the use of the term TQM in management discourse created a positive utility regardless of what managers meant by it (which showed a large variation). can even work in a synergistic way. Total Quality Management is an approach to the art of management that originated in Japanese industry in the 1950's and has become steadily more popular in the West
. For example. without explicit usage of their names. Sim and Killough (1998) show that incentive pay enhanced the positive effects of TQM on customer and quality performance. and non-financial performance measurement. Chendall (2003) summarizes the findings from contingency-based research concerning management control systems and TQM by noting that “TQM is associated with broadly based MCSs including timely. Ittner and Larcker (1995) demonstrated that product focused TQM was linked to timely problem solving information and flexible revisions to reward systems. while rapidly losing popularity in terms of citations after these years. Nevertheless. Dubois (2002) showed that the core ideas behind the two management fads Reengineering and TQM. management concepts such as TQM leave their traces. Ponzi and Koenig (2002) showed that the same can be said about TQM. while in the late 1990s the usage of the term TQM in implementation of reforms lost the positive utility attached to the mere fact of using the term and sometimes associations with TQM became even negative.
TQM and contingency-based research TQM has not been independent of its environment. externally focused information. just another management fad? Abrahamson (1996) argued that fashionable management discourse such as Quality Circles tends to follow a lifecycle in the form of a bell curve. as their core ideas can be very valuable. which peaked between 1992 and 1996. which represents an immensely more desirable product. In the context of management accounting systems (MCSs). close interactions between advanced technologies and strategy.51 Often. flexible. a "TQMed" product is cheaper to produce because of efficiency/performance improvements and because there's no need to repair dead-on-arrival products.” TQM.
they are more likely to view EDM/PDM as an information and workflow management system supporting the entire product life cycle then as a departmental solution for the management of CAD data
Important aspects of TQM include customer-driven quality. Total Quality is a description of the culture. its customers with products and services that satisfy their needs. actions based on facts. and people involved with customers it's much easier to introduce EDM/PDM in a company with a TQM culture than in one without TQM. Some useful messages from results of TQM implementations:
if you want to be a first-rate company. and defects and waste eradicated from operations. However. with things being done right first time. Many companies have difficulties in implementing TQM. People in companies that have implemented TQM are more likely to have the basic understanding necessary for implementing EDM/PDM. people involved in new product development. Customer-driven quality
. top management leadership and commitment. fast response. Surveys by consulting firms have found that only 20-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality. As a result many people are sceptical about TQM. productivity. don't focus on the second-rate companies who can't handle TQM. and a TQM culture. For example. attitude and organization of a company that aims to provide. employee participation. look at the world-class companies that have adopted it the most effective way to spend TQM introduction funds is by training top management. and continue to provide.52 since the early 1980's. competitiveness or financial return. The culture requires quality in all aspects of the company's operations. continuous improvement. when you look at successful companies you find a much higher percentage of successful TQM implementation.
These systems and methods guide all quality activities and encourage participation by all employees. It has to be introduced and led by top management. not internal activities and constraints. comes first. Attempts to implement TQM often fail because top management doesn't lead and get committed . As well as recognizing the link between product quality and customer satisfaction. TQM leadership from top management TQM is a way of life for a company. but also those that enhance and differentiate them for competitive advantage. Once it is recognized that customer satisfaction can only be obtained by providing a high-quality product. Each part of the company is involved in Total Quality. TQM also
. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company. The Engineering Department is a supplier to downstream functions such as Manufacturing and Field Service. and merely meeting specifications or reducing customer complaints. directly or indirectly. and has to treat these internal customers with the same sensitivity and responsiveness as it would external customers. The TQM company is sensitive to customer requirements and responds rapidly to them. methods and performance measures for achieving those goals.53 TQM has a customer-first orientation.instead it delegates and pays lip service. This is a key point. and to management and employee remuneration. continuous improvement of the quality of the product is seen as the only way to maintain a high level of customer satisfaction. `being sensitive to customer requirements' goes beyond defect and error reduction. The company believes it will only be successful if customers are satisfied. operating as a customer to some functions and as a supplier to others. Continuous improvement Continuous improvement of all operations and activities is at the heart of TQM. The concept of requirements is expanded to take in not only product and service attributes that meet basic requirements. In the TQM context. Customer satisfaction is seen as the company's highest priority. The development and use of performance indicators is linked. to customer requirements and satisfaction. and in creating and deploying well defined systems. The customer.
Actions based on facts The statistical analysis of engineering and manufacturing facts is an important part of TQM. In turn this will lead to an improvement in product quality. Facts and analysis provide the basis for planning. and are not caused by particular employees. and the way customer relationships are managed. The statistical approach to process management in both engineering and manufacturing recognizes that most problems are system-related. there is a focus on continuous improvement of the company's processes. This will lead to an improvement in process quality. Improvement cycles are encouraged for all the company's activities such as product development. Simplicity is gained through concurrent product and process development. The result is a dramatic improvement in the elapsed time from product concept to first shipment.
. This implies that all activities include measurement and monitoring of cycle time and responsiveness as a basis for seeking opportunities for improvement. The customer-driven approach helps to prevent errors and achieve defect-free production. and provides a rational rather than an emotional basis for decision making. and comparison of performance with competitors. Fastresponse To achieve customer satisfaction.54 recognizes that product quality is the result of process quality. There is also a strong emphasis on prevention rather than detection. the company has to respond rapidly to customer needs. they are generally discovered and resolved before they can get to the next internalcustomer. use of EDM/PDM. These can be achieved with customer-driven and process-oriented product development because the resulting simplicity and efficiency greatly reduce the time involved. This implies short product and service introduction cycles. Efficiencies are realized from the elimination of non-value-adding effort such as re-design. and to an increase in customer satisfaction. and an emphasis on quality at the design stage. As a result. improvement of operations. review and performance tracking. The TQM approach is based on the use of objective data. Elimination of waste is a major component of the continuous improvement approach. When problems do occur within the product development process.
then the analysis.saying one thing and doing the opposite. and fire-fighting is necessary and rewarded. They are unlikely to behave in a responsible way if they see management behaving irresponsibly . On-going education and training of all employees supports the drive for quality. act creatively. or engineering test results.55 In practice. changes. Short-term results drive behavior so scrap. An open. data is collected and put in the hands of the people who are in the best position to analyze it and then take the appropriate action to reduce costs and prevent non-conformance. cooperative culture has to be created by management. communicate more effectively. As people behave the way they are measured and remunerated. If the right information is not available.
. can't take place. Management focuses on supervising individuals. and innovate. and so errors can't be corrected. errors can't be identified. strategies. product development is usually carried on in a conflictual atmosphere where each department acts independently. They are not going to feel this if they are excluded from the development of visions. Employee participation A successful TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. Employees are encouraged to take more responsibility. whether it be of shop floor data. Product development in a TQM environment Product development in a TQM environment is very different to product development in a non-TQM environment. It's important they participate in these activities. Usually these people are not managers but workers in the process. Without a TQM approach. A TQM culture It's not easy to introduce TQM. and rework are normal practice. work-arounds. Employees have to be made to feel that they are responsible for customer satisfaction. TQM links remuneration to customer satisfaction metrics. waste. and plans. Such participation is reinforced by reward and recognition systems which emphasize the achievement of quality objectives.
Milliken (1989). Motorola (1988). management and execution. and interact with their internal customers to deliver the required results. Awards for Quality achievement The Deming Prize has been awarded annually since 1951 by the Japanese Union of Scientists and Engineers in recognition of outstanding achievement in quality strategy. and rewarding teamwork. IBM (1990). Teams are process-oriented. Texas Instruments (1992) and Xerox (1989). Management's focus is on controlling the overall process. Since 1988 a similar award (the Malcolm Baldrige National Quality Award) has been awarded in the US.
.56 Product development in a TQM environment is customer-driven and focused on quality. Early winners of the Baldrige Award include AT&T (1992).
cause and effect concerns and other issues relevant to their organizations. charts and graphs. These tools can identify procedures. diagrams and other analysis tools. focus groups. products or work environment. (ReVelle. in accordance with ISO 9000 standards (SQ. statistics. as they give direction and best practice guidelines to you and/or your staff.57
Total Quality Management (TQM) Tools Total quality management (TQM) tools help organizations to identify. efficiency. standardization and overall quality of procedures. analyze and assess qualitative and quantitative data that is relevant to their business. According to Quality America. TQM tools illustrate and aid in the assimilation of complicated information such as: · identification of your target audience · positive and negative forces affecting business · assessment of customer needs · competition analysis · market analysis · brainstorming ideas · productivity changes · various statistics · staff duties and work flow analysis · statement of purpose
. manuals and standards are TQM tools as well. check lists. 2003) the number of TQM tools is close to 100 and come in various forms. ideas. such as brainstorming. Each of which can be examined and used to enhance the effectiveness. 2004). In a different vein. Inc.
etc. and identifies. and can be extremely effective if used properly. though essentially TQM tools can be used in any situation. It should be noted that tools should be used in conjunction with other tools to understand the full scope of the issue being analyzed or illustrated. Simply using one tool may inhibit your understanding of the data provided. vault space available. specific information in a specific manner. or may close you off to further possibilities. or questionnaire results. Pie Charts and Bar Graphs · Used to identify and compare data units as they relate to one issue or the whole.58
· financial analysis · model creation · business structure · logistics analysis The list goes on. extent of fonds. Each is used for. such as budgets.
. survey. TQM Tools The following are some of the most common TQM tools in use today. Histograms · To illustrate and examine various data element in order to make decisions regarding them. · Effective when comparing statistical. for any number of reasons.
. etc. · Identify groupings of qualitative data.
Pareto Charts / Analysis (designed by Vilfredo Pareto) · Rates issues according to importance and frequency by prioritizing specific problems or causes in a manner that facilitates problem solving. most commonly purchased preservation aid. such as accrual rates. such as most frequent complaint. shifts and patterns. and ultimately identify trends. They can also be created in retrospect. · Can be scheduled over select periods of time to track changes.59
Run Chart · Follows a process over a specific period of time. to track high and low points in its run. in order to measure which have priority. as a before and after analysis of a process change.
of problems or issues that may arise in the course of business.
. · To identify restraining forces that need to be eradicated. which is much easier to follow.60
Force Field Analysis · To identify driving and restraining forces occurring in a chosen process in order to understand why that particular process functions as it does. or driving forces that need to be improved. and ultimate effects (outputs). Cause and Effect. Ishikawa or Fishbone Diagrams (designed by Kauro Ishikawa) · Illustrates multiple levels of potential causes (inputs). For example. An alternative would be a tree diagram. in order to function at a higher level of efficiency. identifying the driving and restraining forces of catering predominantly to genealogists. · May be confusing if too many inputs and outputs are identified.
· An affinity diagram. · To identify inputs and outputs of a project.
. a project. process. · Consist of various people from the general public who use and discuss your product. procedure. and the full scope of. providing impartial feedback to help you determine whether your product needs improvement or if it should be introduced onto the market. · To identify hierarchies. business structure. which can be created using anything from enabling software to post-it notes organized on a wall. etc. is a tool to organize brainstorming ideas. Tree Diagram · To identify the various tasks involved in.61
Focus Groups · Useful for marketing or advertising organizations to test products on the general public. or priorities. whether of personnel. Brainstorming and Affinity Diagrams · Teams using creative thinking to identify various aspects surrounding an issue.
· Identify areas where workflow may be blocked. · Identify where steps need to be added or removed to improve efficiency and create standardized workflow.
Flowcharts and Modelling Diagrams · Assist in the definition and analysis of each step in a process by illustrating it in a clear and comprehensive manner. and where workflow is fluid. or diverted.
2003) or by simply mapping them out on paper.
. as well as bonds and correlations. All of these TQM tools can be easily created and examined by using various types of computer software (Pollock. so as to understand their importance in the overall organizational view.63
· To illustrate and validate hunches · To discover cause and effect relationships. examined for efficiency and effectiveness. etc. They can also be easily integrated into team meetings. and for various other data analysis needs. it is then tested. organizational newsletters. marketing reports. Proper integration and use of these tools will ultimately assist in processing data such as identifying collecting policies. PDCA · The Plan-Do-Check-Act style of management where each project or procedure is planned according to needs and outcome. issues. · This is a cyclical style to be iterated until the process is perfected. enhancing work flow such as mapping acquisition procedures. events. between two variables · To chart the positive and negative direction of relationships
Relations Diagram · To understand the relationships between various factors. and then acted upon if anything in the process needs to be altered.
TQM can lead to a drastic change in the productivity of an org. However patience and loyal efforts are required to solve these problems. TQM has been the most focused area of research as compared to other disciplines both in the industrial and academic world. The literature is abundant with theories and applications. It cannot be left to its own fate after the launch and requires constant nurturing and follow-up by the management. Since the benefits of TQM are many therefore it doesn’t pervade only to all the sectors of the business but also to the society. CONCLUSION
This project concludes that Total Quality Management (TQM) has many benefits but implementing TQM is not a bed of roses. and creating an overall high level of quality in all areas of your organization. attitudes. In recent years. to be expected and are universal in nature.
IBM Tivoli Development Labs to reap more than $2 million savings with release management initiative.
. Management must keep its fingers on the pulse of TQM efforts as bringing a change in culture. therefore. if implemented properly. Problems in implementation are. and beliefs in a sensitive and delicate matter.64 ensuring client satisfaction by surveying their needs and analyzing them accordingly.
65 Company : IBM Corporation Deployment Country : New York – USA Industry : Solution : Computer Services. for example. Program Director. $2 million per year expected savings following roll out to more labs.
Overview : Automating information technology and business processes is helping organizations worldwide realize enormous savings." . increased platform coverage. Tivoli® Development Labs. Consider. Workload Management
Business need : Improve the quality and efficiency of software testing processes Solution : An automated provisioning process that standardizes release management. we’ve been able to align our testing processes with business goals and significantly improve operational efficiency. Tivoli Development Labs develops enterprise-class software that supports numerous
. On Demand Business. the IBM team responsible for testing Tivoli software prior to its release.Phil Buckellew. On Demand Workplace. reduces manual operations and optimizes resource utilization
Benefits : 94 percent reduction in attended time to provision software. better utilization of valuable skills
"By employing IBM IT Service Management software. IBM Tivoli Development Labs. improved test quality. Professional Services IT Optimization.
5 hours. Each time operating system and middleware software were installed. Manual processes also made it necessary for each tester to be familiar with the particular operating system being installed. This meant that specialized domain experts were often reduced to menial tasks to ensure that systems were installed and configured properly.” explains Phil Buckellew. the organization launched an initiative to improve the quality and efficiency of its software release management process. the IBM team responsible for testing Tivoli software prior to its release.66 heterogeneous operating system platforms. Texas. staff often didn’t have the time to remove all software from each server every time a new test was
.5 to 2. mandatory testing across the supported platforms. Consider. program director. With more than 5. IBM Tivoli Development Labs. a tester often had to sit at a workstation or server. In 2004. Each product undergoes extensive. Tivoli Development Labs develops enterprise-class software that supports numerous heterogeneous operating system platforms. And given the tedious nature of this process. for example. A typical operating system deployment required between 1. However. Tivoli® Development Labs. Automating information technology and business processes is helping organizations worldwide realize enormous savings. Each product undergoes extensive. the quality and consistency of systems could vary depending on how closely each tester followed the installation instructions. improve quality and reduce time to market for new products. optimizing resource utilization was difficult given the time and effort required to set up a test environment. from bare metal to full installation. there are times when some teams are not using servers and other teams are scrambling to meet deadlines and could be aided by more resources. Why Become an On Demand Business? Streamlining the building and repurposing of test systems helps lower costs. mandatory testing across the supported platforms. And because this process was manual. “We have to test every software product in a multiplicity of environments to mitigate the risk of problems for our customers. inserting CDs and answering installation questions.500 heterogeneous servers spread across the lab in Austin. Of greatest concern was the time and skill required to build each test environment.
“The openness of Tivoli Provisioning Manager makes it ideal for companies that have a finite list of technologies in their environments. “We needed to find a way to shrink the timeframe for testing so that our product groups could go to market faster with high-quality software.” says Buckellew. lab staff was able to integrate Tivoli Provisioning Manager software with several homegrown test environment tools. This integration enables the organization to effectively and efficiently install the vast number of operating system environments each software product must be tested on. Tivoli Provisioning Manager software is installed on the IBM System x platform running Red Hat Linux. scalability and security. Additionally. automate routine and manual tasks and more efficiently use its resources. To achieve this goal. “Tivoli Provisioning Manager helped us
. Tivoli Development Labs had to standardize release management processes. Due to the software’s flexibility.” adds Buckellew. as well as software development firms that may not know what they’ll need to install next. “We didn’t want test teams provisioning servers that were in use by other teams.” says Buckellew. This would help testers ensure consistency in the test environment and enable them to spend more time testing the software to improve product quality. Through the use of Automation Packages.” Automating provisioning processes using best practices To help the business meet increasingly aggressive software delivery schedules. Tivoli Provisioning Manager software provided the dynamic workflows the team required to automatically drive provisioning operations based on best practices and procedures. “Manually configuring test environments resulted in testing delays and an inefficient use of both our staff and our system resources. Tivoli Provisioning Manager software provided the security-rich features the organization needed to ensure that changes to servers were made by only authorized users. chosen because it offers a cost-effective platform with proven flexibility. the organization implemented IBM Tivoli Provisioning Manager software.67 required. This increased the risk that configuration variations might contribute to problems in the environment. an IBM IT Operational Management Product that is an integral part of IBM IT Service Management.
we’ve been able to easily implement best practices for software provisioning. And by freeing up resources from mundane tasks. “This. and performing bare-metal builds. installing and uninstalling software and patches.68 control who had access to which servers. Ultimately.” Savings to reach several million dollars The benefits realized through automation of provisioning testing processes and use of Tivoli Provisioning Manager software have been enormous. Doing so has helped the team minimize human errors. This includes tasks for allocating and removing servers from the test environment. is helping us better align our testing processes with business goals and significantly improve operational efficiency. As a result. testers have more time to focus on product innovation and code quality. configuring servers. lab staff can rapidly identify the source of code defects and retest with confidence. and increase the accuracy of the testing environment.” Consistent.
. lab staff spend their time testing each software product more quickly and more often for greater test coverage. The Tivoli Development Labs team reports that Phase 1 of the project resulted in a 94 percent reduction in attended time to provision software. in turn.” says Buckellew.200 person-hours saved over the first seven months of the project. “By employing IBM IT Service Management software. Tasks that once required several hours to perform under constant supervision can now be completed in just five minutes. Tivoli Development Labs has automated more than 800 tasks that were once performed manually across 415 systems. the organization estimates that the savings associated with maintaining the test infrastructure will reach more than $2 million a year as it expands use of the solution to more labs. And because the solution enables the organization to automate the set up of new test environments during non business hours. with more than 1. cost-effective software deployment Using Tivoli Provisioning Manager software. such as incorrectly setting a registry value or forgetting to remove an old file that may cause a software conflict.
For example.” says Buckellew.69 “Faster. rather than preparing environments. one house-owner may be happy with a standard light bulb . Another customer may want an energy efficient light bulb with a longer life expectancy .they would see this as a quality product.
. Quality can therefore be defined as being fit for the customer's purpose.this would be their view of quality. enables better utilization of staff skills
Quality through standards What is quality? Quality is defined by the customer. driving expected savings of more than $2 million a year Leveraging best practices drives greater consistency to help minimize human errors and speed the execution and accuracy of the testing process Improving the reliability of the testing environment helps testers identify the source of code defects more quickly and retest with confidence Enabling testers to focus on testing. A quality product or service is one that meets customer requirements. “We can better utilize our resources and cost-effectively deliver high-quality solutions to our customers as a result”
Key Components Software
IBM Tivoli Provisioning Manager
IBM System x™ running Red Hat Linux®
On Demand Business Benefits
• • • •
Automating manual processes improves operational efficiency. unattended installs allow our existing test teams to complete more tests in less time. Not all customers have the same requirements so two contrasting products may both be seen as quality products by their users.
As a result they will make repeat purchases and will recommend a business to their friends. IBM developed this standard in 1995 to establish best practice for capturing. Obtaining lots of information from a small panel of customers is called qualitative research. storing and handling data. Working to best practice standards is another way an organization can create quality. This is the standard for a company's management of information security. Satisfied customers are loyal to those suppliers they feel best understand their requirements. This British Standard became the basis for the International Standard ISO/IEC17799. It can be carried out with a small group of customers. Today companies worldwide are seeking certification for their security management systems.
.70 There are three main ways in which a business can create quality:
Market research involves a business in finding out what its customers want and expect. This is called quantitative research. Market research can also be carried out with large numbers of customers through questionnaires. Why is quality important? The most successful organizations are those that give customers what they want. IBM works with industry specialists to create these standards. asking them to provide detailed information about products and services. For example. The research should reveal what the customer' view of quality is and whether they are getting it. it delivers the confidence of customers in a business through BS 7799.
Businesses therefore benefit from working with IBM to meet standards.
When you buy a piece of electrical equipment. services. the right to be informed and the right to choose. a company recording audio CDs would buy in blank CDs. These rights relate to products.people like you and me.for example. you will want to know a lot of information about its specification. Obvious information that you will be looking for include:
• • •
Is it safe? Does it do what I want? Does it meet the required standards?
As a customer you will have a lot more confidence in products you know have been tested and meet British. because:
Standards protect consumers' fundamental right to safety. record music to them and sell them on as a finished product.
There are two main types of customers for a business:
end customers . processes and materials. your school will want to purchase gym and science lab equipment that meets the specifications of the safety standards. European and International Standards. looking to buy an iPod or plasma screen television organizational customers . In the same way.
BS 5750 in 1979. Implementing a quality system – internal A system is a group of interrelated parts that make up a whole. needs to show that it can consistently provide products that: a) meet customer requirements b) meet any legal requirements. and makes products easier to use. It is very important for UK businesses to be associated with quality. A variety of organizations work with IBM to create standards for QMS. The standard specifies requirements for a QMS where an organization: i. For example. Standards are continually changing so it is important for businesses to keep up. the latest edition (2000) has been adopted by more than 400. aims to improve customer satisfaction as a result of applying the system. It was developed as an international standard and became known as ISO 9001 in 1987.72
Standardization promotes effective research and development. Today.
Businesses that do not focus on quality will quickly find that there are costs to be paid. providing an opportunity for everyone to share knowledge and make their voice heard. there is greater competition from abroad. Today.000 organizations across the globe. ii. Standardization relies on all sections of society being involved in standards. started out originally as a British Standard. A quality system therefore consists of parts (such as policies and processes) designed to ensure quality. This includes continually improving the system.
. ISO 9001 which is outlined in Section 4. The reputation of a business will quickly deteriorate as a result of poor quality work. Examples of these costs include waste due to products being badly made and therefore not being able to sell them.
Involve top management (heavily) in developing a quality management plan. 3. Use supporting literature and software tools to help understand. Typically a Quality Manager will be responsible for the initiative.73 ISO 9001 sets out eight quality management principles.a commitment to quality by the leaders of the organization involvement of people . organizations wishing to apply QMS take the following steps: 1.
In practical terms. develop and implement QMS. 2.everyone in the organization having a part to play making sure that those processes which create quality are identified continual improvement of the system. These include:
• • • • •
customer focus leadership .
. Read and understand the standard. They read through the literature and discuss any issues with IBM.
suppliers. These separate components will then be assembled into a sub-assembly i. parts and finished goods from across the globe. External systems are those that involve people outside the organization . or Eastern European countries. a modern plasma screen television. If it meets the standard a certificate will be awarded.e. Today.g. modern businesses need to build external systems.74 4. for example. The Quality Manager can be trained in ways of implementing the standard. Some of the components may come from India. Take. it informs an assessor. 6.
Implementing a quality system – external
Internal systems are ones that are built inside an organization. When the organization feels confident it is meeting the standard. many businesses have long supply chains in which they source materials. However. The QMS is then created and put into practice. 5. in addition. who will assess the effectiveness of the QMS. part of the finished
. This is subject to regular reviews.e. others from China.
Standards can provide the necessary bridge of confidence and understanding that builds mutual trust.
. This has led to a change in attitude. This is known as interdependence
Conclusion of Case Study
In world trade. Instead of a company having a 'them' and 'us' attitude . it now makes sense to see the process as a shared one in which everyone relies on each other. This sub-assembly may take place in India. helping trade to thrive. whilst a number of parts may then be transported and delivered to a final assembly plant in Wales.75 television.where 'them' are the suppliers. for buyers and sellers to work together there must be trust.
R. Establishing clear standards creates order in an increasingly complex world. J.COM 4. “HANDBOOK OF TOTAL QUALITY MANAGEMENT”. Governments benefit because such measures contribute to greater productivity and economic growth. IBM assists British businesses in all markets to grow and to concentrate on meeting customers' requirements. manufacturers and other stakeholders to create quality standards.MOHANTY 2. WWW.76 Sales are the lifeblood of any business. Standards meet changing market needs and are customer driven. WWW.ReVelle 5. Achieving certification to a standard might add reassurance for its customers and enables a business to boost its sales performance. These guarantee fitness for purpose. Consumers benefit because their safety and their satisfaction are both greatly enhanced. Businesses benefit from standards because they establish ground rules that help to guarantee quality.COM 3. This is the case whatever the size of the business or the sector they are operating in. “TQM TOOLS AND TOOL KITS”. Today it is the most prestigious international standards institution.COM
. leisure and home environments. WWW.360-IBM. and help British manufacturers to gain a competitive edge both in the UK and internationally.P.ISIXSIGMA.WIKEPEDIA. IBM was the world's first national standards making body.
TEXT REFERENCES 1. It works with the British government. and safer work. so the implementation of standards helps sales.
QAPROJECT.YEADONINC. WWW.ORG/IMAGES/SCATTERDIAGRAM.GIF 2.COM/DIAGRAM.77