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Total Quality Management

Encompasses entire organization, from supplier to customer Stresses a commitment by management to have a continuing, company-wide drive toward excellence in all aspects of products and services that are important to the customer.

TQM Origin
In the 1950’s American industry was enjoying a boom. Whatever was made could be sold. Few industrialists heeded the work of this man called Deming and his ideas about Total Quality . In Japan , however , things were different . The Japanese economy was depressed . Goods stamped made in Japan were known for poor quality and high price.

Japanese industrialists were very receptive to the ideas of Deming on TQM and set about implementing them. By the mid - 1970’s Japan was beginning to seriously undermine its American and other western competitors. First in cars , then in the whole range of goods including videos, Hi-fi and computers. The rest is a history.

Total Quality Management (TQM)
 Better to produce item right the first time than to try to inspect quality in  Quality at the source - responsibility shifted from quality control department to workers

Shewart began using statistical control at the Bell Institute in 1930s  Military standards developed in 1950s  After World War II. Japanese Union of Scientist and Engineers began consulting with Deming  Deming Prize introduced in Japan in 1951 .History of TQM  Dr.

S. quality circle 1974 .000 quality circles by 1977  First U.History of TQM continued  Quality assurance concept proposed in 1952  Juran makes first trip to Japan in 1954  Quality becomes Japan’s national slogan in 1956  First quality circles created in 1957  10.000 quality circles by 1966  100.

What is TQM? Constant drive for continuous improvement and learning. Management by Fact Concern for employee involvement and development Result Focus Passion to deliver customer value / excellence Organisation response ability Partnership perspective (internal / external) Actions not just words (implementation) Process Management .

BASIC PRINCIPLES OF TQM Approach Scope Scale Philosophy Standard Control Theme Management Led Company Wide Everyone is responsible for Quality Prevention not Detection Right First Time Cost of Quality On going Improvement .

Act short term .FOUR KEY PRINCIPLES •Measure quality so you can affect it •Focus on a moving customer •Involve every employee •Think long term .

Commitment) How to Do What to Do .g.Achieving Total Quality Management Effective Business Employee Fulfillment Quality Principles Organizational Practices Customer Satisfaction Attitudes (e..

Concepts of TQM  Continuous improvement  Employee empowerment  Benchmarking  Just-in-time (JIT)  Taguchi concepts  Knowledge of TQM tools .

.Continuous Improvement  Represents continual improvement of process & customer satisfaction  Involves all operations & work units  Other names    Kaizen (Japanese) Zero-defects Six sigma © 1984-1994 T/Maker Co.

Employee Empowerment  Getting employees involved in product & process improvements  85% of quality problems are due to process & material © 1995 Corel Corp.  Techniques    Support workers Let workers make decisions Build teams & quality circles .

.Quality Circles  Group of 6-12 employees from same work area  Meet regularly to solve work-related problems  4 hours/month  Facilitator trains & helps with meetings © 1995 Corel Corp.

the bosses doing the thinking and the workers wield the screwdrivers.TQM Models Our organizations are built on the tailor made model . the essence of management is getting ideas out of their boss’s head and passing it on to the hands of the workers. For many people. .

the environment is increasingly unpredictable and competitive . . The continued existence of the business does not exist on models . but on day to day mobilization of every ounce of intelligence from all.Beyond models We must go beyond the tailor made models.TQM . Business is now so complex and difficult .

3. 2. Develop long term vision or mission of the organization by top management after strategic consideration of markets and core competencies of the company. Constitute Quality Council or steering Committee under the CEO to demonstrate strong commitment to quality mission. .TQM road map 1.Training of members of quality council on basic concepts of TQM and their impact on business.

Define measurable objectives which must be agreed by the top management as indicators of success for the mission. . 6.TQM Road-map 4. employee satisfaction survey to determine the present status of quality in the company. 5. Organize quality audit of the organization including customer perception survey. Identify critical processes and activities for attainment of objectives.

develop departmental TQM plans with well defined sub-targets and responsibilities. Organize general quality awareness training at all levels. Based on the critical process already identified . 9.TQM Road-map 7. and specialized training on quality tools and techniques for persons who will be required to use them. . 8. Establish a mechanism for inter-departmental co-ordination for determining agreed inputs and mutual support for attainment of departmental objectives.

After trial period of say 3 months .TQM Road-map 10. carry out organized audit of the program by trained auditors who are not involved in the activities being audited. 12. 11.Conduct review by the steering committee and apply corrective measures. 13. Develop monitoring system with milestones for periodic review by the management team. Formally launch the first phase of the TQM program for implementation. .

Evaluate impact of successful activities on business and analyze failures. 16. 17. 15. Expand areas of success and try other approaches for failed projects till major objectives of the first phase are achieved. Continue implementation effort and corrective measures for at least one year. .TQM Road-map 14. Benchmark critical functions and processes with best in class to determine gaps.

Learning from successes and failures draw up plan for next phase of TQM program with stretch goals.TQM Road-map 18. Conduct extensive review of the first phase of TQM program. Institutionalize continuous improvement through PDCA cycle. 20. 19. .

       Customer satisfaction Quality Results Human Resource Utilization Quality assurance systems Leadership Information & analysis Strategic quality planning 30 % 18 % 15 % 14 % 10 % 7% 6% .A Quality Award .Performance Measurement Balridge: U.S.

For your own self assessment different ratings might be appropriate. People Management 9% People Satisfaction 9 % LEADERSHIP 10 % Policy & Strategy 8 % Resources 9% PROCESSES 14 % Customer Satisfaction 20 % Impact on Society : 6 % BUSINESS RESULTS 15 % ENABLERS 50 % RESULTS 50 % .Performance Measurement Award by European foundation for Quality management This European framework shows the linkages and comparative ratings between the components .

Therefore FICCI has evolved a simplified model of TQM which can be easily understood and implemented.FICCI Simplified TQM Model For Indian industries  At present various models are existing on TQM . . These models are highly complicated and far away from the realities of Indian industries.  This model lays emphasis on measurable results which alone can justify tremendous investment of time and resources.

Culture TQM review & rewards Customer Satisfaction Process Quality Business Results Organisational structure Customer requirement Standard methods/procedures Quality data Tools & techniques Quality System .FICCI TQM MODEL Operational Management Quality planning Resource Management Process measurement and control Quality improvement Training & motivation Executive Leadership Strategic quality planning Policy deployment Customer focus Participative Mgt.

ã The latest developments in Japan advocate the idea of taking small incremental Risks along with small continuous improvements to win . but small continuous improvements which result in real cost savings.Kaizen : Importance ã The road to excellence is not the major breakthroughs . higher quality or better productivity. .

Kaizen : Foundations â Employee empowerment â Self discipline â Recognition .

Housekeeping. â â Standardization.Kaizen : Tools â Waste Elimination . .

S practice is a technique used to establish and maintain quality environment in an organization .5 S Technique The 5 .The name stands for 5 Japanese words Seiri Seiton Seiso Sieketsu Shitsuke .

5.Do you find items scattered in your workplace 2. 4.Seiri :Sort out items and discard the unnecessary Check : 1. 3.Are the tools properly sorted and stored .Are there equipments and tools placed on the floor.Are there boxes. papers and other items left in a disorganized manner.Are all items sorted out and placed in designated spots.

Everything in its place. Are passages and storage places clearly indicated.Seiton :Arrange a place for everything .Are containers and boxes stacked up properly.Are fire extinguishers and hydrants readily accessible. 5. cracks or bumps on the floor which hinder work or safety. 4. 3. Check : 1.Are there grooves .Are commonly used tools separated from those seldom used. . 2.

Are shades . Are machine nozzles dirty by lubricants and inks. light bulbs and light reflectors dirty. 5. . Are wires and pipes dirty or stained.Seiso :Clean your workplace thoroughly. 2. Check : 1. 3. 4. Are machines and equipment dirty. Are the floor surfaces dirty.

Is any one’s uniform dirty and untidy 2.Are there sufficient lights. 4. 3. Is the noise or heat at your workplace causing discomfort.Seiketsu :Maintain a standard. Is the roof leaking 5.Do people eat at designated places only. . Check : 1.

Do people assemble on time. Do people wear their uniforms and safety gears properly. 3. Are regular 5 . .S checks conducted. Do people follow rules and instructions. 5. 4.Shitsuke :Train people to be disciplined Check : 1. 2. Do people clean up without reminders.

Tools for TQM  Quality Function Deployment  House of Quality  Taguchi technique  Quality loss function  Pareto charts  Process charts  Cause-and-effect diagrams  Statistical process control .

Tools of TQM  Tools for generating ideas Check sheet  Scatter diagram  Cause and effect diagram   Tools to organize data Pareto charts  Process charts (Flow diagrams)   Tools for identifying problems Histograms  Statistical process control chart  .

Seven Tools for TQM .

by percent total defects Nicks 3% Cumulative Percent 60 80% . 20% 0% 72% Porosity 16% 5% 4% Causes.Pareto Analysis of Wine Glass Defects (Total Defects = 75) 70 88% 54 72% 93% 97% 100% 100% Frequency (Number) 50 40 30 20 10 0 Scratches 60% 40% 12 5 4 Contamination 2 Misc.

Process Chart  Shows sequence of events in process  Depicts activity relationships  Has many uses Identify data collection points  Find problem sources  Identify places for improvement  Identify where travel distances can be reduced  .

 = Transport.  = Inspect.  = Storage .Process Chart Example SUBJECT: Request tool purchase Dist (ft) Time (min) Symbol Description  D  Write order  D  On desk 75  è  D  To buyer  D  Examine  = Operation. D = Delay.

 . Ishikawa diagram  Steps Identify problem to correct  Draw main causes for problem as ‘bones’  Ask ‘What could have caused problems in these areas?’ Repeat for each sub-area.Cause and Effect Diagram  Used to find problem sources/solutions  Other names  Fish-bone diagram.

Cause and Effect Diagram Example Problem Too many defects .

Cause and Effect Diagram Example Method Main Cause Too many defects Manpower Material Machinery Main Cause .

Cause and Effect Diagram Example Method Drill Manpower Overtime Too many defects Wood Steel Lathe Machinery Sub-Cause Material .

Cause and Effect Diagram Example Method Drill Slow Manpower Tired Overtime Old Too many defects Wood Steel Material Machinery Lathe .

Problems with Airline Customer Service .Fishbone Chart .

TQM In Services  Service quality is more difficult to measure than for goods  Service quality perceptions depend on Expectations versus reality  Process and outcome   Types of service quality Normal: Routine service delivery  Exceptional: How problems are handled  .

not a Destination .Quality is a Journey.