Script for OM Report

Good Day. I am Daniel Terencio and I will be reporting the TQM as well as an
introduction to the control charts
The agenda of this presentation is, first, to be able to define total quality management
and its principles. I will discuss the various definitions and interpretations of it coming
from different sources. Also, we will study the difference of traditional approach from
total quality management in different aspects of operations. Third, is to identify the
benefits and obstacles in implementing total quality management for us to effectively
and efficiently implement this philosophy. Fourth, is to know the usage of control charts
and its elements for us to know how to interpret the data presented by it. Lastly, is for us
to understand the main variations in process quality namely the common causes and
assignable causes.
/Overview/
Total quality management, now a well-known idea, is a philosophy of management for
continuously improving the quality of products and processes. The idea is that the
quality of products and processes is the responsibility of everyone who is involved with
the development and/or use of the products or services. TQM involves management,
workforce, suppliers, and even customers, in order to meet or exceed customer
expectations.
So basically, Total quality management (TQM) is a management system wherein a
company attains organizational advancement through a commitment to customer
requirements. A company meets those requirements when it empowers every employee
in every department to maintain high standards and strive for continuous improvement.
/Now, let’s dig deeper to what Total Quality Management means./
So, Let’s define TQM based on its three keywords.
Total means made up of the whole. Meaning there is an involvement of all levels,
departments and employees in an organization. TQM is achieved through the
participation of every parts of the organization.
Quality – quality is the degree of excellence a product or service provides. However, in
TQM, the quality in a service or product is not about what you put into it. Instead, it is
what the client or customer gets out of it. Meaning, quality is about meeting the
customer’s needs or satisfying the customer.
Management - act, art or manner of planning, controlling, directing. So, it is the way we
act, operate and implement the policies and procedures including the training and
instruction to all the employees.
With that, TQM means the art of managing the whole to achieve excellence.
/Now, let’s proceed to the technical definitions of the TQM/
TQM can be achieved by integrating all organizational efforts including managing quality
design and development, quality control and maintenance, quality improvement, and
quality assurance. Total Quality Management, is also known as total productive
maintenance, which is a management approach to LONG-TERM SUCCESS through
customer satisfaction. Meaning, TQM would not transform the operations performance
overnight. It involves a continuous improvement since change is inevitable and the
trends in the market is changing very fast, so the company must also adjust to it by
continuously improving its products and/or services.
/Now, let us understand the 8 principles of TQM based on American Society for
Quality/
It is Customer-Focused – Gaya ng sabi ko kanina, ang customers ang nagdedefine ng
level of quality ng isang product. So, kahit ano pang gawin ng company to foster quality
improvement like training employees, integrating quality into the design process,
upgrading computers or software, or buying new measuring tools, although
makakatulong ito pero ang cutomer pa rin ang magdedecide if worthwhile ba yung
product.
Total employee involvement. In TQM, Lahat ng employees ay nagtutulong tulong
para maachieve yung common goals. Lahat sila ay nagpaparticipate in the problem
solving, decision making and planning processes that affect their organization.
Traditionally, managers and high-ranking officials lang yung gumagawa nito. Pero sa
TQM, lahat ng employees ay nabibigyan ng opportunity to self-manage, be empowered
to make important decisions, and be treated in such a way that they might be confident
and feel respected in the workplace.
It is Process-centered. A fundamental part of TQM is a focus on process thinking. A
process is a series of steps that take inputs from suppliers and transforms them into
outputs that are delivered to customers. Processes ensure that the proper steps are
taken at the right time to ensure consistency and speed up production. Para maapply
yung principle na ito, ang mga company ay gumagawa ng process flowcharts to define
and set out clear roles and responsibilities so everybody knows who does what at
certain times.
Integrated system. In TQM, different departments and functions should be
interconnected with horizontal processes that should be the focus of Total Quality
Management. In an integrated system, everybody in every department should have a
thorough understanding of policies, standards, objectives, and processes of the
organization.
Strategic and systematic approach. TQM includes the formulation of a strategic plan
that integrates quality as a core component. It involves identifying, understanding and
managing interrelated processes as a system that contributes to the organization’s
effectiveness and efficiency in achieving its objectives.
Continual improvement. A major driving force of TQM is continual process
improvement. As what I’ve said earlier, optimal efficiency and complete customer
satisfaction doesn’t happen in a day—ang business ay dapat na patuloy na i-improve
yung processes nila at dapat nag-aadapt sila sa pagbabago ng pangangailangan at
demand ng customers. Hindi porket successful na yung business today, ay magi-stick
na lang sila doon, So, dapat continuous yung improvement.
Fact-based decision making. TQM requires that an organization continually collect
and analyze data in order to improve decision making accuracy, achieve consensus,
and allow prediction based on past history. So, hindi pwedeng haka-haka lang when it
comes to decision making. It should be based on facts.
Lastly is the Communications. During times of organizational change, as well as part
of day-to-day operation, effective communications plays a large part in the success of
the business. Everybody in the organization needs to be aware of plans, strategies, and
methods that will be used to achieve goals. There is a greater risk of failure if the
organization doesn’t have a good communication plan. Communications involve
strategies, method, and timeliness. To implement this principle, a company must
establish an official line of communication so that all employees know about updates,
policy changes, and new processes.
/Now, let’s proceed to the comparison between the traditional approach and TQM/
In terms of the definition of quality, Sa traditional quality management, ang company
ang nagdedefine ng quality ng isang product/service, sila yung nagdedecide if
acceptable ba ito based on their standards kaya sya tinawag na product-oriented. Sa
TQM naman, ang cutomer ang nagdedetermine ng quality ng product so it is customer-
oriented.
In terms of priorities, With traditional quality management, service and cost are more
important than quality, While in TQM, quality always comes first.
In terms of decision making, Traditional quality management emphasizes the
achievement of short-term objectives, such as the number of products produced or
profits earned in a quarter. Total quality management, on the other hand, looks at long-
term improvements in how a product is produced and the sustained satisfaction of
customers.
In terms of emphasis, sa traditional quality management, ina-address ang problems as
they arise or when detected, resolving them on a case-by-case basis. Total quality
management, on the other hand, emphasizes eliminating waste and increasing
efficiencies so that a product is produced correctly the first time, umpisa pa lang ay
gumagawa na sila ng ways to prevent such defects, waste or errors. So, it is more on
prevention.
Another difference is that, If defects or errors are found through traditional quality
management, managers identify who is responsible and hold them accountable. So it is
more focus on improving the people who made the defects to improve the operation.
Whereas, with total quality management, managers and employees look at how they
can improve quality by changing the processes or systems used to produce a product.
So it is more focus on improving the system rather than operation itself.
In terms of the responsibility, sa traditional management, yung employees lang na
directly involved sa pagproduce ng product ang responsible for its quality. Sa total
quality management naman, everyone in an organization – including the top executives
– are responsible for the quality of each product that the company produces.
In terms of problem solving, In traditional quality management, supervisors solve
problems and act based on their individual knowledge, skills and instincts. In total
quality management, multiple employees, teams or departments solve problems and
make decisions based on substantive data.
In terms of manager’s role, each employee has a specific role that is narrowly defined
by a supervisor in traditional quality management. The supervisors tell employees what
to do based on the organization’s short-term goals and objectives. Total quality
management involves managers and employees working together in an integrated
capacity that involves more than one role or responsibility at a time.
/To better understand the importance of TQM, let me discuss the benefits of
implementing TQM in an organization/
Cost reduction. When applied consistently over time, TQM can reduce costs
throughout an organization, especially in the areas of scrap, rework, field service, and
warranty cost reduction.
Productivity improvement. Productivity increases significantly, since employees are
spending much less of their time chasing down and correcting errors. Increased
productivity means more output per employee, which typically results in increased
profits.
Customer satisfaction. Since the company has better products and services, and its
interactions with customers are relatively error-free, there should be fewer customer
complaints.
Defect reduction. TQM has a strong emphasis on improving quality within a process,
rather than inspecting quality into a process. This not only reduces the time needed to
fix errors, but makes it less necessary to employ a team of quality assurance personnel.
Morale. The ongoing and proven success of TQM, and in particular the participation of
employees in that success can lead to a noticeable improvement in employee morale,
which in turn reduces employee turnover, and therefore reduces the cost of hiring and
training new employees.
/However, there are also obstacles in implementing TQM before its benefits can
be achieved. So, what are those?/
Lack of management commitment - The purpose must be clearly and continuously
communicated to all personnel management and must consistently apply the principle
of TQM.
Inability to change organizational culture - Changing an organization's culture is
difficult and will require as much as five years according to some studies. Kung
individual pa nga lang ay mahirap na baguhin yung nakasanayang gawin, what more pa
kaya kung ung buong organization culture yung babaguhin. However, organization that
spend more planning for the cultural aspects of implementing a TQM program will
improve their chance of success.
Improper planning - All constituents of the organization must be involved in the
development of the implementation plan. Two-way communication of ideas is the matter
of great importance and should be taken by all personnel during the development of the
plan and its implementation. Customer satisfaction should be the goal rather than
financial or sales goals.
Lack of continuous training and education - Training and education is an ongoing
process for everyone in the organization.. Lack of training in group discussion and
communication techniques, quality improvement skills, problem identification, and the
problem-solving method was the second most important obstacle.
Incompatible organizational structure and isolated individuals and departments -
Difference between departments and individuals can create implementation problems.
The use of multifunctional teams will help to break down those barriers. Individuals who
do not embrace the new philosophy can be required to leave the organization.
Ineffective measurement techniques and lack of access to data and results
/To summarize/
TQM means meeting the needs and expectations of customers- TQM stresses the
importance of starting with an insight into customer needs, wants, perceptions and
preferences. This can then be translated into quality objectives and used to drive quality
improvement.
TQM means covering all parts of the organization For an organization to be truly
effective, every single part of it, each department, each activity, and each person and
each level, must work properly together, because every person and every activity
affects and in turn is affected by others
TQM means including every person in the organization Every person in the
organization has the potential to contribute to quality. Although it may be necessary to
develop some specialists to assist with maintaining quality levels, TQM was amongst
the first approaches to stress the centrality of harnessing everyone’s impact on quality
and therefore their potential contribution to quality.
TQM means all costs of quality are considered. It is necessary to examine all the
costs and benefits associated with quality in implementing TQM. These costs of quality
are usually categorized as prevention costs, appraisal costs, internal failure costs and
external failure costs. Prevention costs are those costs incurred in trying to prevent the
problems, failures and errors from occurring in the first place. Appraisal costs are
expenses related to quality control that a company incurs to ensure its products and
services meet the standards of its customers. Internal failure costs are failure costs
associated with errors which are dealt with inside the operation. And External failure
costs are those which are associated with an error going out of the operation to a
customer.
/Now, Let’s proceed on the control chart. It is just an introduction as the next
reporter will discuss a more detailed discussion of it.
Control charts is used to see if the process seems to be performing as it should, or
alternatively if it is ‘out of control’. If the process does seem to be going out of control,
then steps can be taken before there is a problem. Basically, the control chart is a graph
used to study how a process changes over time.
/To better understand the use of control chart, let us know the elements of it/
Horizontal or X-Axis. This axis displays the chronological order.
Vertical or Y-Axis. This axis reflects the magnitude of the data collected.
A central line (X) is added as a visual reference for detecting shifts or trends – this is
also referred to as the process location.
Upper and lower control limits (UCL and LCL) are computed from available data and
placed equidistant from the central line. This is also referred to as process dispersion.
If all process values are plotted within the upper and lower control limits and no
particular tendency is noted, the process is referred to as "In Control." If the process
values are plotted outside the control limits or show a particular tendency, however, the
process is referred to as "Out Of Control"
/So, there are two main variations in process quality namely, common causes and
assignable causes/
Common Causes - Variations which derive from these common causes can never be
entirely eliminated (although they can be reduced). These causes are inherent to the
process and not controllable. If only common cause is present, the process is
considered stable or “in control.” For example, if a machine is filling boxes with rice, it
will not place exactly the same weight of rice in every box it fills.
Assignable causes - Not all variation in processes is the result of common causes.
There may be something wrong with the process which is assignable to a particular and
preventable cause. For example, a machinery may have worn or been set up badly. An
untrained person may not be following prescribed procedures. It refers to those changes
in the quality of the products which can be assigned or attributed to any particular
causes like defective materials, defective labors, etc. In control charts, these causes are
usually outside the upper and lower limit.
/To appreciate more the use of control charts, let me discuss the benefits of it/
Control chart is a tool of statistical quality control used to indicate whether a process is
in control or out of control. And because control charts reveal what’s going on in a
manufacturing line in real time, they enable operators to detect and correct issues
before they cause deeper problems in processes and products,. Control charts serve as
the early warning detection system that helps you think what actions should be taken
promptly, thus ensuring the product quality level. Moreover, this greatly reduces the
need for product rework or additional product expenditures to fix the defect.
From operators and engineers to managers and executives, control charts offer a
variety of relevant information for all the key stakeholders involved in the creation of a
manufactured product. It provides information about the selection of process and setting
of tolerance limits, enabling them to make decisions based on concrete numbers rather
than assumptions.
Lastly, Control charts helps the company monitor its improvement, thus building up the
reputation of the organization through customer’s satisfaction