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First International Conference on Emerging Trends in Engineering and Technology

A comparative review of TQM, TPM and related organisational performance


improvement programs

A. P. Kedar R. R. Lakhe V. S. Deshpande P. V. Washimkar M.V.Wakhare


Asst. Professor Director Professor Lecturer Lecturer
PIET, Nagpur SQMS, Nagpur SRKNEC, Nagpur PIET, Nagpur PIET, Nagpur

Abstract standards and so on. These programs are employed


world over for attaining customer satisfaction,
Competitiveness is a driving force behind the reliability, productivity, market share, profitability and
revolution of global business. Total Quality even survival, which are directly affected by the quality
Management (TQM), Total productive Maintenance of organization’s product, services and performance
(TPM), Six Sigma, Business Process Reengineering [12] [2] [4]. These philosophies have worldwide appeal
(BPR), Lean, International Organisation for and their principles have received widespread attention
Standardization (ISO) series of standards and so on over the last two decades in many organizations-large
are most popular initiatives employed by the or small, profit or non profit, manufacturing or service,
manufacturing organizations as Organizational commercial or government.
Performance Improvement Techniques. All these A wave of improving manufacturing/service
approaches are generated in developed countries and competitiveness arose in the late ’80s.The literature
have different orientations. Similarities, differences review reveal that the earliest of corporate
and interrelationship among these techniques in terms transformation efforts was the “TQM” effort of mid
of objectives concept, methodologies and scope have ’80s. Then came the “Six sigma” program pioneered by
remained confusing to the industry. Similarly, selection Motorola. Along the way, in 1987, “ISO 9000” and got
of one of these or combination of several of these mixed with TQM. It was followed by the concept
techniques has remained a problematic issue in “Total Productive Maintenance” which was extension
industry. All approaches are useful but to be treated of maintenance. A little later the concept of “Lean
with caution. Each has its strength and weakness and Manufacturing” was brought in 1990. During the same
also in some cases a certain amount of overlap. This period, 1990, “BPR” emerged as the concept, which
paper reviews in brief the theoretical aspect of TQM, enables organisation to take a radical and revolutionary
TPM, Six Sigma, BPR, Lean and ISO series of examination of the way in which it operates.
standards which highlights similarity, differences and Table 1 (Annexure-1) provides an outline of the
potentiality of these approaches to improve characteristics of the six approaches which highlights
organizational performance. similarities and difference between the approaches. The
comparison finds many similarities between the
1. Introduction concepts, especially between TPM and Lean. This
suggests there is strong linking between the two, but as
In Today’s world of intense competition the a total they are two separate concepts. BPR is the most
industrial growth and survival depends on various exceptional among the six concepts in terms of being
strategies followed by the organizations. If the abrupt, short term and renewing rather than improving
strategies are properly implemented, the organization in the long term. Comparison between the six concepts
may become cost effective, responsive in operation and indicates that focus of changes in TQM comes within
may meet needs of customer in competitive the relation between customers and suppliers over a
environment. Contemporary strategic thinking is long period of time, where BPR endures radical
dominated by the central notion that the business improvement process over a short period. Change in
performance is a result of successful implementation of TPM and Lean manufacturing initiate from continuous
organizational performance improvement program such improvement within the production. ISO focus on
as TQM, TPM, Six Sigma, BPR, Lean, ISO series of quality goals based on internal capabilities. TPM

978-0-7695-3267-7/08 $25.00 © 2008 IEEE 725


DOI 10.1109/ICETET.2008.133
focuses primarily on improvement of production administrations, which initially was needed to solve
equipment, where as Lean manufacturing has emphasis problems that no longer exist.
on flow. Overall continuous improvement serves as
common denominator for the TQM, TPM, Six Sigma, 5. Improvement approaches
Lean and ISO. This paper reviews theoretical aspect of
the six most popular improvement approaches, in brief, The necessity of performance improvement has
employed over last two decades based on intensive been discussed. It is now time to start looking at how to
review of international articles. improve performance in practice. There are number of
performance improvement approaches and they have
2. What needs to be improved? some strengths and weakness. The similarities of the
methods are that they have a number of phases and that
Of course, performance should be improved. At the performance is targeted for improvement. This makes
operative level, performance improvement is about the programs comparable to each other even if they
identifying value streams and reducing waste. emanate from somewhat different needs and functions.
Definitions of waste and losses, e.g. downtime and
rework, are included in most Performance 5.1. Total quality management
Improvement methods. The performance objectives
may be speed, quality, flexibility, cost and precision of Different definitions of TQM have been presented
operations as described by [18]. The reason for using over the years. [6] claims that “attempting to define
these performance objectives, is that they are of a TQM is like shooting at a moving target”. Some argue
general nature and are widely accepted, [19]. that TQM as a corporate culture characterized by
Furthermore, it is important to find the improvement increased customer satisfaction through continuous
factors with high impact on performance. Company improvement, in which all employees in the companies
boards and management, as well as employees, have to participate actively. On the other hand [9] claims that
focus on productivity and quality rather than have a TQM is both a philosophy and a set of guiding
strong focus on immediate return on investments only. principles for managing an organization. Total Quality
Management focuses on control of business processes
3. Performance improvement and customer satisfaction. Activities such as
improvement, statistical control, supply control and
Performance Improvement (PI) is a process for quality engineering are ingredients of TQM. TQM as a
enhancing employee and organizational performance concept emanates from the academic field and has
that employs an explicit set of methods and strategies. contributors such as Feigenbaum, Juran and Deming.
Results are achieved through a systematic process that TQM has Kaizen as a tool for continuous work.
considers the institutional context, describes desired This is visualised by the Deming’s wheel. Statistical
performance, identifies gaps between desired and control is a powerful tool to gain control of
actual performance, identifies root causes, selects, manufacturing defects and it correlates to
designs and implements interventions to fix the root measurement. Further, there are many concepts of TPS
causes, and measures changes in performance. PI is a found in TQM, such as Kaizen and Process Mapping.
continuously evolving process that uses the results of An interesting part of the TQM concept is all quality
monitoring and feedback to determine whether awards offered by the different foundations such as
progress has been made and to plan and implement Deming Price, European Foundation of Quality
additional appropriate changes. Management (EFQM), Malcolm Baldridge and so on.
Performance Factors and Process Measurement, which
4. Where PI should be used? is used as means for improvement. The concept of
TQM can give competence, so benchmarking could be
Customer value is mainly created at the operative used to accomplish this. TQM is an extensive method
level and it is here that PI efforts should be focused. and requires specialist or consultant help, which can
Much waste is initiated in manufacturing, e.g. actions endanger the implementation.
performed by manufacturing that are not demanded
from customers. Quality and Delivery precision are 5.2. Total productive maintenance
affected by an unstable production, and create waste,
such as rework and scrap. Often this type of problems The Japanese evolved the concept of TPM based on
shows symptoms in having many routines and large preventive maintenance [13]. TPM is a waste reducing

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approach to stabilise utilisation of machining resources. variation in manufacturing processes with the use of
TPM is considered as an additional driver, which is statistical tools and supporting software [3].
complementary to TQM [8]. TPM focuses on Six Sigma is based around the problem-solving
improving machine availability and includes model called DMAIC: i.e. Define, Measure, Analyse,
monitoring of machine equipment called overall Improve and Control. A Six Sigma practitioner should
equipment efficiency to visualise losses of utilisation. keep an attitude of questioning towards assumptions
Implementation of TPM usually starts with a pilot and common knowledge, as well as towards the data
project [11]. The main focus of TPM is on the collected. Six Sigma is therefore heavily data driven
condition of the equipment and its influence on quality and many methods used are based around statistical
of output. TPM offers both measurement aid and analysis, which often makes the availability of
improvement schemes. The ideal goal of TPM is to specialists necessary. The specialists are trained within
make the availability time equal to the value adding a Six Sigma program in the form of Green belts, Black
time. TPM is an extensive approach, which involves belts and Master Black belts, meaning that specialist
mainly two parts of an organisation, i.e. production and training is a part of Six Sigma. Hence, the idea is that
maintenance. It is therefore crucial that TPM work the company should be self-sustaining when it comes to
involves leaders of organisational level, also supplying specialists. The standard Six Sigma methods
emphasised in TPM as leader commitment. Further, the are focused on finding the actual root cause of a
implementation is supported by defined defined problem. The Six Sigma concept is, as
implementation steps, both for production and concluded above, very specialist dependent, which can
maintenance. The seven steps are: 1) Initial cleaning of jeopardise implementation. As to competence, there is
equipment and work area, 2) Finding and fixing causes very strong support regarding education in Six Sigma;
of dirtying, 3) Creating standards and checklist of measurement support is also strong. Lastly, the open-
cleaning, 4) Education of inspection, 5) Creating minded choice of improvement tools can be
standard and checklist of inspection, 6) Organising of advantageous. This is true when practitioners know
the workplace and 7) Autonomous operator what and how to use them; if not it can be difficult to
maintenance. use Six Sigma.
TPM can also be benchmarked via a TPM award
application. This procedure is similar to the awards in 5.4. Business process re-engineering
TQM. The companies applying for TPM should
establish a report, which is evaluated by a prize Business process reengineering concentrates on
committee. If the report gets a good score, the company radical change to improve operations [10]. The radical
can be subjected to an onsite evaluation by TPM change allows new revolutionary ideas to evolve which
experts to be further evaluated for the TPM prize. can help to improve operations more than a Kaizen
TPM is an extensive, resource and competence approach. Business process re-engineering was
demanding approach with risk for conflicts among the introduced by Hammer and Champy in the early 1990s
involved departments. Further, TPM implementation is and has an approach of breakthrough changes. They
time consuming and according to standardised state that small changes give small effects and small
implementation schemes it can take as long as five earnings whilst the radical change gives radical
years to implement to its full extent. TPM is suited to increases in earnings [16]. As with TQM, this is not
companies, which have a lower degree of improvement taken from a company phenomenon. The BPR main
maturity, as TPM starts at a basic level, namely 5S. ideas are that the operations should be organised
around the process instead of around functions. An
5.3. Six sigma important part of BPR is process-mapping. There are
number of factors, which need to be considered in the
As with BPR, the Six Sigma concept gives much implementation of the BPR project - project champion,
support on how to organise improvement work. Six steering committee, process design team, process
Sigma as a concept came from the Motorola Company owner and implementation team. The BPR project
in the mid 80s. An engineer at Motorola named Bill requires four phases of: preparation, innovation and
Smith concluded that increased complexity in design, implementation and assessment.
manufacturing made it difficult to maintain quality The extensiveness of this concept varies with the
standards. Bill Smiths idea to improve this was to set a choice of improvement scope, it can be advantageous,
quality goal of Six Sigma to get a satisfactory final but it requires competence, which makes the approach
product quality [5]. Six Sigma is a concept to decrease difficult to use in improvement immature organisations.

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The improvement work in BPR is organised in a in place which provides confidence that the
project form. The advantage of this is that this can organisation will be consistent in their management
render quicker results as the organisational conflicts processes. Because of the need to describe procedures
should be fewer. This concept is very specialist and to keep track of non-compliances, ISO is often
dependent, which in turn requires help from experts or seen as a bureaucratic process involving manuals and
consultants. Results emanating from this concept can record keeping.
be hard to communicate, which makes implementation The ISO 9000 series cover three standards for which
harder. external certification is possible (ISO 9001, ISO 9002
and ISO 9003). The ISO 9000 standard is a guideline
5.5. Lean for helping to choose one of the three standards. ISO
9004 provides the background and philosophy behind
Lean production can be considered to be an quality systems and can be a good starting point to
essential element of all the main improvement develop an organisation’s quality system. Most
approaches. Lean production is an adoption of the ways literature on ISO 9000 either focuses on adoption or
of work at Toyota called the Toyota Production System uses self-reported survey-based performance measures.
[14] with the theme of eliminating seven types of Muda Surveys by [17] find no link between ISO 9000 and
(waste; excess production, waiting, conveyance, organizational performance among Australian and
motion, the process itself, inventory and effects). The Dutch firms respectively, though [20] do find that
term lean was probably coined by [21] in their book higher reported business performance is positively
‘The Machine that Changed the World’. The ultimate associated with a broader set of motivations for seeking
goal is to manufacture products after an order is made, ISO 9000 certification. [7] finds that Basque
however many products do have a production lead-time companies report substantial operational and financial
that is too lengthy to be acceptable to customers. A first benefits from certification. [1] finds that ISO 9000
approach to improvement with Lean Production is certification in New Zealand increases with firm size.
levelling of flow, from tact production to customer
need. 6. Analysis of the approaches
The key issues of lean can be considered as [14]:
1)Value - The starting point for lean thinking is Many organizations have had major problems in
“value” as defined by the end customer. It is providing implementing some of the tools and techniques
the customer with right product/service, for the right involved [15]. TQM and TPM emerged from Japanese
price at the right time experience to make their way to Western
2)Value Stream-The set of actions from a manufacturing organizations. Organisations needed
product/service concept to realization, order to delivery clear directions regarding the change process which
etc. results in development of approaches like BPR and Six
3) Flow - Seamless movement through a series of value Sigma. These approaches give clear change of
creating steps structure. BPR and Six Sigma aim at much faster result
4) Pull - Acting only to satisfy customer needs than TQM and TPM. The whole process is hierarchical
5) Perfection - continuously improving the value, value top-down financed and led. TQM and TPM aim at
stream, flow and pull in business operation widespread involvement and commitment throughout
The organisation resistance is hard to tackle with Lean, the implementing unit. They include tools and
as this concept is a very extensive method to use for techniques, which can enable any one at any level to
improvement. Implementation support is lesser with improve their daily work on a step-by-step basis. They
Lean as in many cases it merely describes desired aim to use the organisation’s own employees and
results, not how to acquire them. managers and trainers rather than outside consultants.
TQM and TPM are far less restrictive in their change
5.6. ISO process than BPR and Six Sigma. Lean is a diverse
bundle of complementary elements and operating
The International Organisation for Standardisation principles. ISO is able to act as a bridging organization
(ISO) developed the ISO 9000 series in the 1987 and in which a consensus can be reached on solutions that
these standards are now accepted internationally as an meet both the requirements of business and the broader
approach to quality systems. An ISO certificate does needs of society, such as the needs of stakeholder
not guarantee that the processes or the products are of groups like consumers and users.
the highest quality, it only states that there is a system

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Annexture-1

Table 1: Characteristics of TQM, TPM, Six Sigma, BPR, Lean and ISO

Subject TQM TPM Six Sigma BPR Lean ISO


Origin Japan Japan USA USA Japan Europe
Period Mid 1980s 1988 Mid 1980s Early1990s 1990 1987
Approach Quality Resource Variance Fundamental Elimination Documentation and
utilisation reduction rethinking & of waste Consistency
redesign
Fundamental Data-based, Improving No. of Quantum Continuously Focusing on quality
concept employee machine products & leaps in improving the goals based on
driven, availability and process performance value created internal capabilities
orientation includes defects in an are only for the
towards monitoring of enterprise possible by customers by
customers machine should keep reinventing letting them
and suppliers equipment on & pull value
called OEE to approaching redesigning through a
visualize losses Six Sigma streamlined
of utilization. target value stream
Participation Normally Everyone Normally Primary Everyone Normally everyone
everyone and participate everyone management participate
suppliers
Time phase for Continuous Continuous Continuous Short project Continuous Continuous
improvement improvement improvement improvement improvement improvement
Change Slow, Slow, Could be Very fast and Could be Could be
introduced incremental incremental dramatic as radical dramatic as dramatic as well as
well as well as incremental
incremental incremental

Risk Medium Medium Medium High Medium Medium


Implementation Long term, Long, many Short Short Long, many Moderate, 3-5 years
time 5-10 years new things are new things
to be learned. are to be
learned
Initial condition Existing Existing Existing Restructuring Existing Existing process
process process process process
Scope of Enterprise Manufacturing Enterprise Enterprise Enterprise Enterprise wide
Application wide unit wide wide wide

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