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Total Quality Management (TQM

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TQM
Managing an entire organization so as to excel on all aspects of quality of its products & services that are important to its customers.

History
• A quality movement was started in Japan during the 1970s with the help of American consultants like Deming & Juran, in order to rebuild their war-damaged economy • In USA it was named TQM. • The Japanese equivalent is CWQCcompany wide quality control

Principles of TQM
• Customer satisfaction –creating customer-delight for all its customers, both external & internal.

Customer satisfaction may be understood at three levels as shown in the diagram Customer Delight Product/ service attributes Value addition Core needs .

durability.latent customer needs like prestige. • Conformance to specification . convenience.functional utility.Customer based definitions of quality may cover several shades of customer Viz • Fitness for use .repair. etc.purpose served Vs price • Support . appearance.published levels of quality • Value to customer . . serviceability. etc. image. reliability. warranty to reduce consequences of failures • Psychological impressions .

which is about making drastic. one-time improvement.2 Continuous improvement (Kaizen) • The Japanese concept of Kaizen is -marginal improvement on a continuous basis rather than waiting for innovations. . Principles of Kaizen -: • any aspect can be improved • People most closely associated with an operation are in the best position to identify the changes required. • Kaizen requires the involvement of everybody in the organization whereas innovation is generally the creation of a few ‘champions’.

suggestion schemes.Employee Involvement • Implementation of TQM would require an organizational culture that promotes small group activities through work committees. • Culture may be encouraged through employee participation in work-related decision making which would improve their creativity & motivation. . Quality Circles. etc.

supporting everyone else. • Visualize the organization to be an inverted pyramid in which the customers are at the top & the ‘top management’ is at the bottom. not simply that of the production function . the employees are seen as the providers of customer service.Organisational Culture • In TQM. • TQM requires a culture in which employees believe that quality is everybody’s business. with each level of hierarchy supporting such efforts by their lower levels.

Empowerment Cultivating in the minds of the employees a feeling of their being in control of their work by authorizing them to make workrelated decisions. take risks & learn from mistakes. etc. .

teamwork & leadership skills .Training • All employees. process improvement methods. problem solving tools. quality circles. • Training includes quality awareness. including top management get trained in TQM.

etc.Top Management commitment to implement TQM Top management must accept responsibility to implement TQM. . make necessary cultural change. allocate resources.

The team implements their plan. • Act .The new performance is compared with the plan & revised as required. document the existing process.The team selects a process for improvement. set goals for improvement. the new process is adopted as the standard operating procedure. . • Do .If successful. collects data about its implementation & documents the new process. They collect data. • Plan . • Check .1 Deming Wheel or P-D-C-A cycle -: This is a four-step systematic process that teams would follow to improve quality of any process. choose an improved method & develop a plan.2 Quality improvement methods • 2.

(b) functional (c )external. viz. NPA of SBT. Eg.Benchmarking Systematic process that evaluates a firm’s products. BM may be of three types. (a) competitive. . services & processes against those of industry leaders so as to improve their own performance. Depending on the choice of the reference industry.

implement. measures of performance. etc. monitor & revise . • Integration – Establish goals. • Action – Form teams. obtain peoples’ support & resources. prepare action plans.Steps in BM -: • Planning – Select the product. service or process that needs improvement. identify gaps in performance & its causes. • Analysis – Collect data. the reference organization.

engineering & production functions of the provider organization to constructively communicate with each other & choose the best options to meet the customer needs & avoid wastage .Quality Function Deployment QFD Systematic methodology used by a product/service provider (the producer) to translate all aspects of its customer requirements into corresponding operational requirements. QFD facilitates the marketing.

facilitates interpersonal communications & problem solving concerning individual steps of the process & their relationship.Seven Tools of Quality • Flow chart-: It is a graphical display of the sequential steps of a process from its beginning to end. understanding of that process. We may select the event with maximum frequency for further action. Check list-: It records the frequency of occurrence of several events in the form of a table. • .

.• Pareto chart-: This chart helps us to distinguish the vital few from the trivial many. so that problem solving resources can be focused on those vital few to achieve relatively substantial results.

men.• Cause-effect diagram (Fishbone or Ishikawa diagram)-: This tool helps us to identify all the causes of a problem (effect) in a systematic manner & to display it visibly. The diagram would look like a fishbone & hence that name. machines. Eg. materials. methods & others. All possible causes for an effect takes a structured approach under 5 groups. viz. Each cause can again be analysed under these 5 groups. Cause of delay in departure of flights. .

• Scatter diagram -: This is a graph on which values of one variable is plotted for different values of another variable. the two variables are not related at all. are strongly & positively related or are strongly & negatively related. thus displaying the correlation among the two variables. . • The diagram would reveal the nature & strength of relationship between the two variables viz.

if measured on a continuous scale can be plotted as a frequency distribution of its grouped data. . called histogram so as to display its central tendency & dispersion.• • Histogram-: Large volume of data on any characteristic. measuring the relevant characteristic & plotting those values chronologically on to a pre-prepared control chart so as to reveal the pattern of that characteristic’s performance against the statistically determined process control limits on the control chart. Control charts-: Monitors the performance of a process by picking up samples of its output on a regular basis. Eg. Age-profile of a population.

taking inputs from the environment & involving the entire organization.TQM Implementation • Strategic Quality Management SQM involves planning & execution to improve quality in the long term. .

• Quality goals – Determine the long term quality goals.Strategic Quality Management -STEPS • Quality Council –Quality Council consisting of senior managers. • Quality Policies – Establish guidelines for action that would ensure quality throughout the organisation • Quality audit – Devise a mechanism to objectively review the entire quality management practices. . They would define the objectives & other elements of SQM & supervise the overall implementation.

during their working time to identify their work-related problems & solve those problems in order to improve their own satisfaction. from within a section. .Quality Circles Small groups of employees. around 6 to 10. productivity & quality. engaged in similar work voluntarily meeting together on a regular basis.

Pareto chart) • Problem analysis (flow chart.QC process The team uses various tools of quality in which they are trained such as -: • Problem identification (Brainstorming) • Problem selection (Check lists. cause-effect diagram) • Generating alternatives (Brainstorming) • Evaluation of alternatives & selection of solution • Action plan preparation. presentation to ‘Management’ • Implementation. checking & proving .

each coordinating the work of several QCs.Structure of QC implementation • Steering Committee at the top level of a firm – a team of senior managers who give policy & directions. . • Facilitators – supervisors. • Circle members – workers of a work-section who get together to form & function as a QC. • Coordinator – a manager (usually from the HR) who supervises all facilitators & administers the program in the whole firm. • Circle leader – a circle member who coordinates activities of that QC.

though it is much more challenging to the process controller . • Thus a process that is controlled using six sigma limits. instead of three sigma limits will give almost defect-free output.6 Sigma Quality • Six sigma is a philosophy & methodology to eliminate defects from processes far beyond the normal industry standards.

instead of by Sigma . The methodology of defects elimination is project oriented.Six sigma implementation • Data driven approach -: Process variability is specified as DPMO. . Defects Per Million Opportunities.

• One of the team members acts as the team leader. • In the six sigma terminology. Other levels of such trained people are also involved in implementing six sigma projects. He would have been trained to participate in such projects. he is called the Green belt. Black belts coach & support several project leaders .Structure for Six sigma implementation • Every six sigma project is implemented by a team of employees.

. They receive more detailed training.• Master Black belts guide & assist the work of several Black belts. • Champions are senior managers who sponsor & oversee several projects on behalf of the management.

International Quality standards • ISO. It is head quartered in Ganeva. the International Organisation for Standardisation. • India’s BIS is a member of ISO. It is a network of various (160 +) National Standards Organisations. services & processes to facilitate international business . was started in 1947. • ISO issues specifications for products.

• Both specifications have provision for third party inspection & certification by accredited agencies (registrars). ‘say what you would do & then do accordingly’. . • Their basic principles are.• ISO 9000 (QMS) & ISO 14000(EMS) specify the process by which an organization can ensure that they follow their own stated practices regarding quality (9000) & environment (14000).

thus provide an assurance to the customers that a certified company can provide documentary evidence in support of whatever claims they make about their quality practices. Periodical monitoring is also done by the registrars. . • A certified company would get a certificate & their name would appear in a directory of ISO certified companies so that customers can verify the status. they have implemented their own stated practices on quality (9000) & environment (14000). • These certifications.• During inspection the organization will have to prove to the external examiners that they have complied with the requirements of these specifications ie.

• Management responsibility – Their responsibilty for framing the Q policy. implementation & review. • Resource management – Infrastructure. HR & work environment • Product realization – Processes that design & produce the products • Measurement. . including internal audit. analysis & improvement.Requirements of ISO 9000 QMS implementation • Quality Management System – how to establish & document a quality management system & control the documents.

5 Scope of ISO 9000 series of specifications 9001 9002 9003 Design Procurement Production Installation Servicing .

.series. energy efficient.series. safe for ozone layer.Environmental Management Systems contains provisions for resource utilization & pollution. • LCA . ie.Life Cycle Assessment deals with the lifetime environmental impact of a product.1400 series.series. recyclable. • EL.series. etc-1402. manufacture. • EPE.Environmental Performance Evaluation contains guidelines for evaluation & certification of companies 1403.ISO 14000 ( Environment Management Systems -EMS) • EMS. • EA – Environment audit-1401.Environmental Labeling contains definition of terminologies like. use & disposal-1404.

Malcolm Baldrige National Quality Assurance Award-MBNQA 2. Rajiv Gandhi NQA (set up in 1991 for Indian companies & managed by BIS) 4. . Deming prize 3.Quality Awards 1. European Quality Award.

in 5 categories. education & health care. AT&T. Merril Lynch & Ritz Carlton Hotel. • Recipients include Motorola. large manufacturers. it is awarded annually in a function in Washington. to promote & recognize Q achievements in USA. small businesses. large service companies. IBM. in honour of Late Secretary of Commerce. 3M.• Was instituted in 1987 in the USA through an Act. Companies that get high marks (around 650 out of 1000) are inspected by a panel of judges Malcolm Baldrige National Quality Assurance Award-MBNQA . • Meant only for US companies. Federal Express. Xerox. • Applications are evaluated through a four stage process on 7 criteria listed below.

Strategic planning-: effectiveness of planning & execution. 3. responsibilities. Customer focus-: process of identifying customer requirements & achieving customer satisfaction. Process management-: effectiveness of the systems & processes that assure Q of products & services. systems.7 criteria 1. expectations. etc . operations. Leadership-: values. 4. Business results-: performance results & competitive benchmarking on customer satisfaction. 6. financials. HR-: effort to realize full potential of work-force & create a high performing organisation. 2. Information systems-: effectiveness in supporting performance. 7. 5.

Rane Ltd. . • Indian recipients include Sundaram clayton.Deming prize • Instituted in 1951 by the Japanese Govt in honour of Deming & administered by JUSE (Japanese Union of Scientists & Engineers) • It is open to non-Japanese companies also. & TVS Lucas.

etc. utilization. Organisation – Delegation. Management control – control activities.Criteria • • • • • Policies on Q. etc. processing & dissemination. Information – collection. QC. control points. Q audit. etc. Analysis – selection of issues. Education – plans. SQC. etc. analytical/statistical methods used. etc. awareness. QA – customer satisfaction. coordination. Standardisation – systems of standards. Long term plans • • • • . etc. process design/control.

Other reputed Quality Awards • Rajiv Gandhi NQA (set up in 1991 for Indian companies & managed by BIS) • European Quality Award. .

. • A culture of employee involvement. • Internally everyone gains an assurance that the prescribed quality systems are being complied with throughout the company. continuous improvement & problem solving leads to higher levels of employee satisfaction. • Despite heavy expenditure of money & effort involved many organizations aspire for it because of the benefits it bestows on a recipient.Significance of quality awards • Quality awards are not cheap to get. • Externally an awardee-company’s reputation for quality improves thereby providing competitive advantage. leading to higher market share.