A PRESENTATION ON

PRESENTED BY:-

NEHA MANGLA

ABOUT

• WHAT IS TQM?

TQM is an integrated organizational approach in delighting customers (both external and internal) by meeting their expectations on a continuous basis through everyone involved with the organizational working on continuous improvement in all products/processes along with proper problem solving methodology.

“TO DELIVER HIGHEST VALUE AT LOWEST COST” is the main objective of TQM

Introduction

• Total – Made up of the whole (or) Complete.

• Quality – Degree of Excellence a product or service provides to the customer in present and future.

• Management – Act , art, or manner of handling , controlling, directing, etc.

TQM is the art of managing the whole to achieve excellence.

Scope of TQMTQM is the foundation for activities, which includes:

• Commitment by senior management and all employees • Meeting customer requirements • Reducing development cycle times • Improvement teams • Reducing product and service costs • Systems to facilitate improvement • Employee involvement and empowerment • Recognition and celebration • Challenging quantified goals and benchmarking • Focus on processes / improvement plans

This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D,

Sales, Purchasing, HR, etc.

5 Principles of TQM• Produce quality work the first time.

• Focus on the customer.

• Have a strategic approach to improvement.

• Improve continuously.

• Encourage mutual respect and teamwork.

THE COMPANY

IMPLEMENTATION OF TQM AT:

Rashtriya Ispat Nigam Limited (Vizag Steel Plant)

• One of the leading public sector enterprises under the Ministry of Steel, Government of India

• Located in the state of Andhra Pradesh.

Why TQM at RINL?

• TQM was implemented in the company to achieve the objectives of:

– Preparing the company's products and internal processes to global standards

– Enhancing quality, productivity, and total performance of the organization

– Enriching the quality of work life of its employees

How TQM was Implemented?

• The journey of TQM in the company began on September 15, 1995 with the setting up of the TQM Cell.

• To meet the quality planning requirements as well as to facilitate continuous improvement, the company has established, documented, implemented and maintained the Quality Management System (QMS) in accordance with the requirements of the International Standards.

• In order to verify and determine the effective implementation and maintenance of the QMS, quality audits were carried out at regular intervals by the Internal Quality Auditors.

• The company also implemented a number of TQM tools such as

– Formation of Quality Improvement Projects (QIPs ), – Signing of MOUs– ISO certification– Benchmarking– Employee involvement schemes– House keeping

• The company embarked upon both external and internal benchmarking for improving its production, commercial, and financial performance.

• It benchmarked with British Steel Co., South Korea Steel Plant (POSCO)1 SAIL, and Tata Steel for reduction in the rejection rate, affrorestation, and improving manpower productivity respectively.

• Annual improvement action plans were implemented involving techniques like Kaizen cycle time reduction for further improvement in delivery and technological process upgradation, leading to improvement in quality of products and enhanced customer focus.

Tangible benefits of implementing TQM

• Increase in sales per year from Rs. 3263.66 cr to Rs. 7867.6 cr

• Reduced manufacturing expenses from. Rs. 3,94,706.6 cr to Rs. 3,46,158.86 cr

• Reduced net loss incurred by the company from Rs. 6,97,525.90 cr to Rs. 4,00, 94.58 cr

• Reduced the defective products from 5.76% to 1.2%

Intangible Benefits of Implementing TQM

– Image of the organization has improved.– Reduction in inventory.– Shorter lead time in design, manufacturing,

procurement service etc.,– Reduction in rejections and complaints.– Customer satisfaction.– Quality cost % to turnover reduction.– Lower manufacturing cost.– Continuous improvement.