Tqm

TOTAL QUALITY MANAGEMENT (TQM)

Prepared By: Arpit Shukla(01) Anish Parikh(06) Jitendra Prajapati(20) Kamal Valecha(22) Pawan Gupta(30) Yash Kumar(54)

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. Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.1

TQM Defined TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which include: • • • • • • • • • • • • •

Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time/Demand Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Line Management ownership Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans Specific incorporation in strategic planning

This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.2

TQM Principles:

1. ADD VALUE TO THE PROCESS: Every action by every employee should add value to the process or product in every way all the time. Enhance your work by your actions.

2. of ability

to

DELIVER QUALITY ON TIME ALL THE TIME. Develop a pattern delivering perfect products & services on time. Rate your sources by their do this.

3. BASE BUSINESS RELATIONSHIPS ON MUTUAL TRUST and confidence: Providers and Suppliers build trust and confidence through quality and deliverability. Customers build it by quick payment and clear lines of communication. Reliability, Forthrightness, and Honesty are the Basis of forming Business Relations.

4. TRAIN Teach Problem quality, safety,

INDIVIDUALS AND TEAMS TO SOLVE PROBLEMS: -Solving Tools / Techniques & Teaming as the means to solve productivity, and deliverability problems.

5. EMPOWER EMPLOYEES TO BE RESPONSIBLE for Quality, Safety, Productivity and Deliverability. Empowering means giving workers responsibility for their actions affecting their work. Share governance.

6. DEED their Security attendants.

'OWNERSHIP' OF PROCESS TO EMPLOYEES who have proven capability. Reward and reinforce empowerment with Incentives, Job and Equity Sharing. Make employees owners of the process, not

7. IMPLEMENT THE NEW TECHNOLOGY: Use modern information resources, INTERNET, databases, telecommunications, applications software, and project scheduling as tools to improve productivity. Use Statistical Process Control (SPC) to eliminate errors and defects and continually improve the system.

8. COLLECT, evidence.

MEASURE AND EVALUATE DATA: Make Decisions based on

9. APPLY THE '80/20' PRINCIPLE: Use this Problem-Solving Tool to put problems into 'Trivial Many' and 'Vital Few' Categories. Record the causes and frequencies of problems on a Tally Sheet. Develop this into a Pareto Chart which plots the frequencies (most- to least-important) of the problems. 20% of the causes create at least 80% of the problems. Importance of resolving vital problems first.

10. DEVELOP 'WIN-WIN' SCENARIOS: Create solutions that will benefit all parties. Cooperation that develops synergism is the best solution.

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DEVELOP A MASTER PLAN: Good Design Precedes Good Craftsmanship. A well-designed plan tracks and benchmarks an action its completion.

12. PLAN FOR ALL CONTINGENCIES: Prepare for all solutions by developing alternatives. If necessary, flowchart plans dealing with all possible alternatives. Apply 'If-Then-Else' type of logic to problems.

13. MAKE of TQM, eliminating

ZERO DEFECTS AND ACCIDENTS YOUR GOAL: Use the tools SPC, and Problem-Solving to achieve these goals by detecting and the causes.

14. QUALIFY YOUR SOURCES AND SUPPLIERS: Use Quality and Deliverability as the basis for selecting the source of your materials and services.

15. DELIVERABILITY: The Right Product at the Right Place at the Right Time. In world-class Just-in-Time (JIT) delivery systems, source parts are used without delay and inspection in the process.

16. MEET affected by end-users. to deliver

THE NEEDS OF YOUR CUSTOMERS: Customers are anyone your work: co-workers, team members, management, & especially the They are the rationale for your work. The justification for your work is products or services that meet or exceed their requirements.

17. IMPROVE CONTINUOUSLY AND ALWAYS: Institute continuous improvement & life-long education, principles based on the 14 Points by W. Edwards Deming. Optimize your curve. They constitute an ever expanding continuum. Add to this list.

TQM Tools Here follows a brief description of the basic set of Total Quality Management tools. They are: • • • • • • • •

Pareto Principle Scatter Plots Control Charts Flow Charts Cause and Effect , Fishbone, Ishikawa Diagram Histogram or Bar Graph Check Lists Check Sheets

Pareto Principle

The Pareto principle suggests that most effects come from relatively few causes. In quantitative terms: 80% of the problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of the wealth is owned by 20% of the people etc. Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back to back) Pareto charts can be used to compare 'before and after' situations. General use, to decide where to apply initial effort for maximum effect.

Scatter Plots

A scatter plot is effectively a line graph with no line - i.e. the point intersections between the two data sets are plotted but no attempt is made to physically draw a line. The Y axis is conventionally used for the characteristic whose behaviour we would like to predict. Use, to define the area of relationship between two variables. Warning: There may appear to be a relationship on the plot when in reality there is none, or both variables actually relate independently to a third variable.

Control Charts

Control charts are a method of Statistical Process Control, SPC. (Control system for production processes). They enable the control of distribution of variation rather than attempting to control each individual variation. Upper and lower control and tolerance limits are calculated for a process and sampled measures are regularly plotted about a central line between the two sets of limits. The plotted line corresponds to the stability/trend of the process. Action can be taken based on trend rather than on individual variation. This prevents over-correction/compensation for random variation, which would lead to many rejects.

Flow Charts

Pictures, symbols or text coupled with lines, arrows on lines show direction of flow. Enables modelling of processes; problems/opportunities and decision points etc. Develops a common understanding of a process by those involved. No particular standardisation of symbology, so communication to a different audience may require considerable time and explanation.

Cause and Effect , Fishbone, Ishikawa Diagram

The cause-and-effect diagram is a method for analysing process dispersion. The diagram's purpose is to relate causes and effects. Three basic types: Dispersion analysis, Process classification and cause enumeration. Effect = problem to be resolved, opportunity to be grasped, result to be achieved. Excellent for capturing team brainstorming output and for filling in from the 'wide picture'. Helps organise and

relate factors, providing a sequential view. Deals with time direction but not quantity. Can become very complex. Can be difficult to identify or demonstrate interrelationships.

Histogram or Bar Graph

A Histogram is a graphic summary of variation in a set of data. It enables us to see patterns that are difficult to see in a simple table of numbers. Can be analysed to draw conclusions about the data set. A histogram is a graph in which the continuous variable is clustered into categories and the value of each cluster is plotted to give a series of bars as above. The above example reveals the skewed distribution of a set of product measurements that remain nevertheless within specified limits. Without using some form of graphic this kind of problem can be difficult to analyse, recognise or identify.

Check Sheets A Check Sheet is a data recording form that has been designed to readily interpret results from the form itself. It needs to be designed for the specific data it is to gather. Used for the collection of quantitative or qualitative repetitive data. Adaptable to different data gathering situations. Minimal interpretation of results required. Easy and quick to use. No control for various forms of bias - exclusion, interaction, perception, operational, non-response, estimation.

Check Lists A Checklist contains items that are important or relevant to a specific issue or situation. Checklists are used under operational conditions to ensure that all important steps or actions have been taken. Their primary purpose is for guiding operations, not for collecting data. Generally used to check that all aspects of a situation have been taken into account before action or decision making. Simple, effective

The Concept of Continuous Improvement by TQM TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making, to detailed execution of work elements on the shop floor. It stems from the belief that mistakes can be avoided and defects can be prevented. It leads to continuously improving results, in all aspects of work, as a result of continuously improving capabilities, people, processes, technology and machine capabilities. Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. The five major areas of focus for capability improvement are demand generation, supply generation, technology, operations and people capability. A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least permitted, by faulty systems and processes. This means that the root cause of such mistakes can be identified and eliminated, and repetition can be prevented by changing the process.1 There are three major mechanisms of prevention: 1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-Yoke). 2. Where mistakes can't be absolutely prevented, detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation). 3. Where mistakes recur, stopping production until the process can be corrected, to prevent the production of more defects. (Stop in time).

Implementation Principles and Processes A preliminary step in TQM implementation is to assess the organization's current reality. Relevant preconditions have to do with the organization's history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed. If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate.5

However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a change. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. These forces include departures from tradition, a crisis or galvanizing event, strategic decisions, individual "prime movers," and action vehicles. Departures from tradition are activities, usually at lower levels of the organization, which occur when entrepreneurs move outside the normal ways of operating to solve a problem. A crisis, if it is not too disabling, can also help create a sense of urgency which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or demands from consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. A plan to implement TQM may be such a strategic decision. Such a leader may then become a prime mover, who takes charge in championing the new idea and showing others how it will help them get where they want to go. Finally, action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized.

Factors affecting TQM 1-Customer Focus: Studying customer needs, gathering customer requirements, and measuring and managing customer satisfaction. Customer satisfaction is seen as the company's highest priority. The company believes that it will only be successful if its customers are satisfied. 2- Process Management: Develop a production process that reduce the product variations. Applying the same process; the same product should be produces with the same level of quality every time. Teams are process-oriented, and interact with their internal customers to deliver the required results. Management's focus is on controlling the overall process, and rewarding teamwork. 3- Human side of Quality: TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. On-going education and training of all employees supports the drive for quality. 4- Continuous Improvement: TQM recognizes that product quality is the result of process quality. As a result, there is a focus on continuous improvement of the company's processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality. Measurement and analysis id the tool that has been used for that.

Steps in Managing the Transition Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new system such as TQM: identifying tasks to be done, creating necessary management structures, developing strategies for building commitment, designing mechanisms to communicate the change, and assigning resources. Task identification would include a study of present conditions (assessing current reality, as described above); assessing readiness, such as through a force field analysis; creating a model of the desired state, in this case, implementation of TQM; announcing the change goals to the organization; and assigning responsibilities and resources. This final step would include securing outside consultation and training and assigning someone within the organization to oversee the effort. This should be a responsibility of top management. In fact, the next step, designing transition management structures, is also a responsibility of top management. In fact, Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. An organization wide steering committee to oversee the effort may be appropriate. Developing commitment strategies was discussed above in the sections on resistance and on visionary leadership.6 To communicate the change, mechanisms beyond existing processes will need to be developed. Special all-staff meetings attended by executives, sometimes designed as input or dialog sessions, may be used to kick off the process, and TQM newsletters may be an effective ongoing communication tool to keep employees aware of activities and accomplishments. Management of resources for the change effort is important with TQM because outside consultants will almost always be required. Choose consultants based on their prior relevant experience and their commitment to adapting the process to fit unique organizational needs.

While consultants will be invaluable with initial training of staff and TQM system design, employees (management and others) should be actively involved in TQM implementation, perhaps after receiving training in change management which they can then pass on to other employees. A collaborative relationship with consultants and clear role definitions and specification of activities must be established. In summary, first assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy. Leadership styles and organizational culture must be congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist. Remember that this will be a difficult, comprehensive, and long-term process. Leaders will need to maintain their commitment, keep the process visible, provide necessary support, and hold people accountable for results. Use input from stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of course, maximize employee involvement in design of the system.7 Always keep in mind that TQM should be purpose driven. Be clear on the organization's vision for the future and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and improving service to clients and the community.

Conclusion Total quality management appears to be a concept which is difficult to summarize in a short definition. From an extensive review of total quality management literature from quality gurus, quality award models, and other quality management research results, a description employing eleven primary elements appears to be a workable solution. Based on the primary TQM elements, a TQM quality management method model has been developed. This model describes the primary quality management methods which may be used to assess an organization’s present strengths and weaknesses with regard to its use of quality management methods. This model can assist an organization to decide which quality management methods to implement in order to improve organizational performance. The model can also be used as a tool for evaluating the quality management maturity in an organization. It is hoped that the research presented in this paper will not only assist an organization in understanding and implementing total quality management but will also provide a solid foundation for future research.