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TQM

IMPLEMENTATION
CONTENTS

TQM Tools and


Introduction Techniques

PDSA TQM Beginning Phase


Implementation of TQM

Apply PDSA for


Involvement
INTRODUCTION
• The top management always leads the implementation of TQM.

• TQM is based on self control, which should be embedded in each


employee, team, division, etc.

• The framework for TQM implementation should facilitate this


and involve every employee.

• Most organizations establish a quality council or a steering


committee for systematic transfer of responsibility for
improvement.

• This committee is assisted by a separate cell established for


coordination of implementing TQM with TQM facilitator.
INTRODUCTION

• The most important requirement for TQM to function in any


organization is 100 per cent commitment by the top management.

•There is no way to push TQM if the top management is not


convinced, committed or determined to implement it.
TQM TOOLS AND TECHNIQUES

Table 4.1 TQM Tools and Techniques

TYPE Tools & Techniques


Methodologies SPC, JIT, Taguchi methods – DOE, QFD, TPM
System ISO 9000
Human Resources Total Employee Involvement (TPE), Proactive
management and quality circles
Motivation Quality improvement awards such as Malcolm
Baldridge, Deming Award, European Quality
Award, Rajiv Gandhi National Quality Award,
etc.
TQM TOOLS AND TECHNIQUES

Table 4.2 Contributions of Gurus for TQM

AREAS OF TQM Gurus


Statistical Gauss, Pareto, Shewhart, Fisher

Management Juran, Crossby, Feigenbaum

Execution Deming, Taguchi


PDSA TQM IMPLEMENTATION
Shewhart developed a Plan, Do, Check, Act (PDCA) cycle for improvement process.
Deming modified it as PDSA. There are four phases – Plan, Do, Study and Act shown
in Fig. 4.1as follows:

Fig. 4.1 PDSA CYCLE

ACT PLAN

STUD
Y DO
PDSA TQM IMPLEMENTATION
PLAN
• Establish objectives
• Establish a plan that will facilitate achieving goal
• Establish a measurement system

DO
• Plan for implementation
• Implement the plan on pilot basis

STUDY
• Compare the results with the objectives
• Identify gaps
• Analyze the causes for gaps and exeptional results, if any

ACT
• Standardize the procedure that met or exceeded the goal
• If there were gaps, improve the plan and carry out PDSA again.
BEGINNING PHASE OF TQM

The organization has decided to implement TQM after


analyzing the pros and cons. The CEO is prepared to commit
his time and resources, and therefore there should not be any
reconsideration whether TQM or not at this stage.
 
The prerequisite for the planning phase is that the organization
has set its goal to achieve TQM for long-term success.
 
BEGINNING PHASE OF TQM
 
1. Announcement
The CEO will be able to convince the workers and junior employees about
practicing TQM quite easily, but he may have problems in convincing the first line
managers and senior managers.
 
The CEO has to convey and convince all the employees about the importance of
practicing TQM. He can announce the decision in a meeting where all employees are
present.
 
The CEO should also:
bring out the advantages of TQM
highlight the hard work the organization put in to practice TQM
be honest
explain what the organization and staff stand to gain
highlight that adopting TQM means “not working harder, but working smarter”
 
Employees will be more satisfied, customers will be equally as happy and the
organization is bound to grow and prosper.
 
BEGINNING PHASE OF TQM
2. Select Consultant
Consultants have the advantage of being independent, putting forth new ideas to
change organizational culture. His ideas could easily find acceptance amongst the
employees. The CEO should select him personally because of the important role he
is going to play.
 
The consultant will not do all the jobs himself, but will only put forth the ideas to the
employees. He knows what will and what will not work, and he will advise the
employees and management about what should and should not be done.
 
3. Corporate Strategic Planning
Planning the strategy as to how the organization is going to get into TQM, with the
help of the senior management and consultant.
 
The three important activities in strategic planning are formulating vision, mission
and objectives for the organization by the CEO.
 
BEGINNING PHASE OF TQM

3.1. Vision Statement

It is the vision of the CEO about where the organization should


be in the long run. It states what the organization should be
capable of in the future. It is an achievable dream of the top
management, and is the long-term goal of the organization.
 
 

 
BEGINNING PHASE OF TQM
The vision statement should also:

• Be concise
• Be inspiring
• Be challenging
• Appeal to all the stakeholders (the employees, customers, suppliers, shareholders,
and the society) Examples of Vision Statements
 
Oxfam
“A just world without poverty”

Kenny Rogers’ Roasters


“To be the preferred choice for delicious and healthy chicken meals.”
 
Palafox Associates
“We envision a social and environmental renaissance through our innovative,
sustainable, and exemplary practice of architecture, planning, engineering and
design.”
 

 
BEGINNING PHASE OF TQM
3.2. Mission Statement
It describes the purpose for which the organization is in business and
provides the strategies to achieve this purpose. It should communicate the
guiding principles and values held common by the organization.
 
The mission statement should also:
Be concise
Clearly convey the expectation of the top management about the quality of
product/service, and from employees
Be a tool for decision making in the organization
 
Examples of Mission Statements
 
Starbucks
“Our mission: to inspire and nurture the human spirit – one person, one
cup and one neighborhood at a time.”
 
BEGINNING
 
PHASE OF TQM
McDonald’s
“McDonald's brand mission is to be our customers' favorite
place and way to eat and drink. Our worldwide operations are
aligned around a global strategy called the Plan to Win, which
center on an exceptional customer experience – People,
Products, Place, Price and Promotion. We are committed to
continuously improving our operations and enhancing our
customers' experience.”
 
Google
“Google’s mission is to organize the world’s information
and make it universally accessible and useful.”
 
BEGINNING PHASE OF TQM
3.3. Quality Policy
It should clearly convey the views of the management on dealing
with customers and achieving customer satisfaction. It is aimed at
improving the customers’ perceptions about the organization and
thereby improving the organization’s image.
 
The quality policy should also be:

• Like a guide for each section of the organization in developing


their own quality objectives
• Ambitious
• Clear and unambiguous
BEGINNING PHASE OF TQM
 
 There should be a link between the vision, mission and
policy. They should not contradict each other, rather they
should aid each other. The CEO should formulate these
statements and circulate to the employees under his signature.
 
 As soon as these are finalized, it is unlikely that all
employees will understand the statements, even if it is signed
by the CEO and they are advised to read it. The management
should try to coach the employees on the need for
understanding and achieving the vision of the CEO.
BEGINNING PHASE OF TQM

Plan for establishing communications framework

As part of the strategic planning, the organization should plan


for a corporate-wide framework for communications.
 
The communications framework starts from the vision, mission
and policy statements as finalized by the CEO.
BEGINNING PHASE OF TQM
BEGINNING PHASE OF TQM
Quality Manual
Important document for communications within the
organization
Says what is to be done
 
Quality Plan
Says how it is to be done
 
Process Documents
Based on the quality manual and quality plan
May consist of general procedures, which cut across the entire
organization, involving one or more processes, and the
documents specific to particular process, such as detailed
procedures and work instructions
 
BEGINNING PHASE OF TQM

In addition to this, the organization should:

• Plan for periodic newsletters


• Communicate through circulars, notes, minutes of
meetings, etc.
• Effectively use information technology
• Use story programs like Story Teller or PowerPoint
Training programs
BEGINNING PHASE OF TQM
Plan for Quality Council
The TQM project should be steered by a Quality Council. Depending on the
size of the organization, there can be a one or two-tier quality council. The
QC are the corporate structures for the implementation of TQM.
 Steering Quality Council
Apex quality council
Consists of the CEO and the Directors
TQM facilitator will act as secretary
 
Division Quality Council
Headed by General Managers
TQM facilitator will also be a member
 
In a smaller organization, there would only be one QC chaired by the CEO,
with the managers and TQM facilitator as members. While the Chairman and
members of the QC are ex-officio, the TQM facilitator is a full time
employee working for the implementation of TQM in the organization.
BEGINNING PHASE OF TQM

Division 2

Division 1 QC Division 2 QC
BEGINNING PHASE OF TQM
Selection of TQM Facilitator

•Independent person
•Not be made responsible for normal production
•A coach, not a player
•His is not a one-time job, but a continuous one
•Provides continuity to the QC meetings
•Right at the planning stage of TQM implementation, the
management should select the TQM facilitator and assign him clear
responsibilities.
•Should understand the entire operation in the organization
•Nodal person for all improvement and related matters
 
The TQM facilitator and corporate quality council should be
decided upon before the organization goes on to the next stage.
 
BEGINNING PHASE OF TQM
Role of Quality Council

The following are the roles and responsibilities of the QC members:

• They should have personal commitment to quality and TQM


•They should constitute the right teams (Process Improvement
Teams/Process Action Teams)
•They should attend QC meetings
•They should keep track of the steps taken toward improvement on a regular
basis
•They may discuss with the customers and suppliers (adopt MBWA)
•They should facilitate training of the employees and improvement of team
members
•They should be champions of quality in the organization, and should be
willing to sponsor quality related initiatives
•They should always be on the lookout for related information and provide
resources continuously for quality improvement
•They should walk the talk (i.e. lead by example)
BEGINNING PHASE OF TQM
Strategic Quality Plan

The Strategic business plan involves the proposed market share, goals,
business value, profits, diversification to new areas of business, investment
thereof, etc.

The strategic quality planning is the formulation of strategies to achieve


TQM in the organization.

Some strategies for TQM implementation are:

• Training for top management – members of quality council, senior


management - executives, employees.

• Forming improvement teams for specific problems.

• The consultants can train the quality council members.


BEGINNING PHASE OF TQM
Employee Involvement

• Every improvement action has to be carefully considered and approved


by the QC.
• Employees should be encouraged to give suggestions for improvement.
• Ideas will be discussed in the QC meeting and it will decide whether a
suggestion has to be considered or not.
• The QC, no doubt should create a sense of urgency, but they have to give
adequate time for the completion of each job.
• It is the responsibility of the TQM facilitator and members of the QC to
guide & facilitate them, so that they can complete the job confidently.
• The QC members should give a patient hearing to this suggestions and
advise the team members appropriately.
• The QC plays a nodal role in implementing continuous improvement
program.
BEGINNING PHASE OF TQM
Constitution of PAT

The formal structure for TQM consists of the QC, the TQM facilitator
and the support staff. Improvement teams are formed for each
improvement tasks. Therefore, the management should plan for
constituting PATs, empowering them and supporting them.

Identify Process

The QC should plan to identify process for improvement. Business


process benchmarking helps in identification of the potential processes for
improvement. The potential processes are those, which yield higher return
on investment.
APPLY PDSA FOR IMPROVEMENT

• We have two types of planning activities.

1. The higher level of planning involves formulating policies,


selection of a consultant, selection of TQM facilitator,
constitution of QC, formulating plans and procedures for
various activities and training of personnel in the organization.
This can be called overall planning or corporate-wide strategic
planning before entering into TQM.

2. The lower level, planning is encountered when the


organization has to decide where to improve, or what steps to
improvement have to be taken.
APPLY PDSA FOR IMPROVEMENT
PDSA cycle

Do Phase of TQM – After successful planning, the Do Phase


Starts. The first task in the Do phase is the meeting of the QC.

Study Phase of TQM – In every meeting of the QC, the results


achieved through the implementation of TQM should be
studied.

Act Phase of TQM – In the Act phase, the plans for


implementing TQM should be confirmed
APPLY PDSA FOR IMPROVEMENT
PDSA cycle

Do Phase of TQM – After successful planning, the Do Phase


Starts. The first task in the Do phase is the meeting of the QC.

Study Phase of TQM – In every meeting of the QC, the results


achieved through the implementation of TQM should be
studied.

Act Phase of TQM – In the Act phase, the plans for


implementing TQM should be confirmed
SELECT PROCESS FOR IMPROVEMENT

As a first step, TQM needs the establishment of a documented system for


quality in the organization. This could be the system established for the
purpose of meeting the ISO 9000 standards.

The goals for improvement actions:


• Improving quality
• Reducing defects
• Increasing productivity
• Reducing quality cost
• Reducing delivery time

The triggers for improvement may come for many sources. Some of the
known sources are internal quality auditing, management review, MBWA,
employee feedback, customer feedback, supplier feedback, in-process data
and field failure data.
PDSA for Continuous Improvement

Plan – The improvement team has to make a plan addressing the following
points, in particular:
~ What is the current situation/level of performance?
~ What are they expected results/level of performance?
~ How do they propose to go ahead to find out the best solution?

Do – After the QC has given its seal of approval, the approved action plan
has to be implemented in the Do phase on a pilot basis.

Study Phase – Once an improvement action is implemented on a trial basis


then the Do phase is completed and the study phase starts. In this phase, the
improvement team members have to assess the effectiveness of the
suggested solutions.

Act phase – If the QC is convinced that the process has been improved and
expected results are achieved, then the Act phase commences. In this phase
procedures are modified and issued.
Schedules for Improvement Actions

- Schedules are not only important for normal operations, but also
for improvement activities. At the planning stage for each
improvement action, a detailed report should be formulated by the
improvement team indicating the time schedule for finding out
solutions, putting into practice, assessment, and confirmation.

Communicating Success Stories

- Appreciation of the CEO or the QC will definitely motivate the


employees to improve. Such motivation may only stay for a while;
the permanent motivation can come only through employees coming
to know of success stories due to the TQM program in their
organization.
Implementation Tips for Winning Organizations – According to
Tom Peters, the following are the requirements of winning
organization:

1. Total Quality Management


2. Reengineering
3. Leveraging knowledge (sharing information rather than
hoarding it)
4. Curious cannibalistic corporation (adventurous and bold)
5. Virtual organization
6. Empowerment
Table 4.3 Total Quality Management
It indicates what TQM is and what is not.
Table 4.4 TQM Company versus others
The differences between organization practicing TQM and others.

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