Cost of quality??? Why do we implement the above information into our companies?

To make more money and/or to stay in business. If you dont implement TQM/CI, it will cost your firm money. Its managements choice to obtain these improvements. Failure to implement quality processes results in a status quo situation where unnecessary costs remain and improvements are not implemented. Noted here are the costs of nonconformance.

Cost of Quality

Cost of Non-conformance

Cost Prevention

 Ten Steps to Total Quality Management (TQM): The Ten Steps to TQM are as follows: 1. Pursue New Strategic Thinking 2. Know your Customers 3. Set True Customer Requirements 4. Concentrate on Prevention, Not Correction 5. Reduce Chronic Waste 6. Pursue a Continuous Improvement Strategy 7. Use Structured Methodology for Process Improvement

8. Reduce Variation 9. Use a Balanced Approach 10. Apply to All Functions CHARACTERISTICS OF TQM: The characteristics of TQM, as revealed from above definition are as follows: 1. TQM is customer oriented. 2. TQM requires a long term commitment for continuous improvement of all processes. 3. The success of TQM demands the leadership of top management and continuous involvement. 4. Responsibility for establishments and improvement of systems lies with the management of an organization. 5. TQM is a strategy for continuously improving performance at all levels and in all areas of responsibility.

 THE EIGHT ELEMENTS OF TQM: Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's

operations, with processes being done right the first time and defects and waste eradicated from operations. To be successful implementing TQM, an organization must concentrate on the eight key elements:
1. Ethics 2. Integrity 3. Trust 4. Training 5. Teamwork 6. Leadership 7. Recognition 8. Communication

 TQM in Service Industry Introduction Todays 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 .He will look for solutions that are more specific to his needs thus creating opportunity of many niche market. -Today customers avail ATM services 24 hrs -Book airline tickets & check-in over phone -Self-service at fast food restaurant. -And many more What is different ? -Service is also a product of different kind. -No time delay between the production & delivery of service -A defective product can be replaced but a defective service may create a permanent damage.

Growth of Service sector Service sector is growing rapidly due to -Change in environment, life style etc -Demand for new kind of services -Advent of new technologies -Fast development of information technology & computerization -Lean manufacturing. (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 customization Service Quality Dimensions Quality of Services differs from manufactured products -Special characteristics including intangibility. -Simultaneity (promptness) -Heterogeneity -Unique dimensions of some services (e.g. banking)

Process Improvement in the Service Industry

In the past, competitive success was driven by marketing expertise, financial resources, and technology. Today, a competitive advantage results from superior core process design and a workforce committed to delivering outcomes that are valued by the customer. What is Process Improvement? A process is a set of logically related tasks performed to achieve a defined outcome. The process can be making a product or providing a service. Process improvement techniques help companies

focus on improving their overall throughput, identifying pinch points that are limiting overall performance, and developing strategies that exploit them for significantly improved revenues and profits. There have been many innovative process improvement techniques developed such as: Process Improvement Methodologies
y y y y y

Total Quality Management (TQM) Process Re-Engineering Lean Manufacturing Six Sigma Constraint Management

TOTAL QUALITY MANAGEMENT

TQM is a management approach to long-term success through customer satisfaction. It focuses on continually improving a business and it's products while reducing loss due to wasteful practices. Many of the techniques used to implement TQM came from Edwards Deming, Kaoru Ishikawa, and J. M. Juran. y SIX SIGMA

Bringing a strong customer focus to the science of management

Six Sigma has its foundation in Total Quality Management philosophies and incorporates concepts from other approaches such as: y y y y Re-Engineering Balanced Scorecard Voice of the Customer Design of Experiments

Yet Six Sigma stands on its own as a "next generation" level for corporate continuous improvement methodology.