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Group Members:

Swapna Krishnamurthy

Sweety Pancholi Sneha Subramanian

Sanket

Sameer Kode

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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

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Significance of the term TQMTotal - The responsibility for achieving Quality rests with

everyone a business no matter what their function. It recognizesthe necessity to develop processes across the business, thattogether lead to the reliable delivery of exact, agreed customerrequirements. This will achieve the most competitive cost

position and a higher return on investment.

Quality - The prime task of any business is to understand theneeds of the customer, then deliver the product or service at theagreed time, place and price, on every occasion. This will retaincurrent customers, assist in acquiring new ones and lead to asubsequent increase in market share.

Management - Top management lead the drive to achievequality for customers, by communicating the business vision andvalues to all employees; ensuring the right business processesare in place; introducing and maintaining a continuous

improvement culture.

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Why Quality?

Reasons for quality becoming a cardinal priority for mostorganizations:

CompetitionTodays market demand high quality products

at low cost. Having `high quality reputation is not enough!

Internal cost of maintaining the reputation should be less.

Changing customerThe new customer is not only

commanding priority based on volume but is more demanding

about the quality system.Changing product mixThe shift from low volume, high

price to high volume, low price have resulted in a need to

reduce the internal cost of poor quality.

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Judgmental perspective goodness of a product.

Shewharts transcendental definition of quality absolute anduniversally recognizable, a mark of uncompromising standardsand high achievement.

Examples of products attributing to this image: Rolex watches,

Lexus cars.

Product-based perspective

function of a specific, measurable variable and that

differences in quality reflect differences in quantity of someproduct attributes.

Example: Quality and price perceived relationship

Quality perspectives

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Quality perspectivesUser-based perspective

fitness for intended use.

Individuals have different needs and wants, and hence different qualitystandards.

ExampleNissan offering dud models in US markets under the brandname Datson which the US customer didnt prefer.

Value-based perspective

quality product is the one that is as useful as competing products and issold at a lesser price.

US auto marketIncentives offered by the Big Three are perceived to becompensation for lower quality.

Manufacturing-based perspectivethe desirable outcome of a engineering and manufacturing practice, orconformance to specification.

Engineering specifications are the key!

Example: Coca-colaquality is about manufacturing a product thatpeople can depend on every time they reach for it.

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At organizational level, we need to ask following questions:

Which products and services meet your expectations?

Which products and services you need that you are not currentlyreceiving?

At process level, we need to ask:

What products and services are most important to the external customer?What processes produce those products and services?

What are the key inputs to those processes?

Which processes have most significant effects on the organizationsperformance standards?

At the individual job level, we should ask:

What is required by the customer?

How can the requirements be measured?

What is the specific standard for each measure?

Quality levels

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TQM is the foundation for activities, which includes:

Commitment by senior management and all employees

Meeting customer requirements

Reducing development cycle times

Just In Time/ Flow Manufacturing

Improvement teams

Reducing product and service costsSystems to facilitate improvement

Employee involvement and empowerment

Recognition and celebration

Challenging quantified goals and benchmarkingFocus 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.

Scope of TQM

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TQM focuses on:-1) Customer satisfaction

2) Leadership

3) Quality policy

4) Organizational structure

5) Training for TQM

6) Quality cost

7) Supplier selection and development8) Employee involvement

9) Quality Circles

10) Recognition and reward

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Total Quality Management

Doing things right..

.FIRST time.

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1) Customer Satisfaction

Quality is what customer wants

Effective customer feedback and employeefeedback mechanism

2) Leadership Identify and encourage potential

Accept the responsibility

To play role model

Remove roadblocks

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3) Quality Policy and Mission Statement

Should be definite, clear and easily understood bythe whole organization

Should be well written and documented

Should provide rallying point, uniting peopletowards achievement of total quality

Should be communicated properly to one and all in

the organization

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4) Organizational Structure

FACILITATOR

OR

TQM PROMOTION CORRECTIVE

COMMITTEE ACTION TEAMS

QUALITY STEERING COMITEE

QUALITY IMPROVEMENT TEAMS

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5) Training For TQM

Fundamentals of TQM taught from top to bottom

6) Cost Of Quality

7) Supplier Selection And Development

Quality depends on quality of purchased product

8) Employee Involvement

Participation and Teamwork

9) Quality Circles-Conceived by Dr. Kaoru Ishikawa in 1961

Optimum size of 7-8 members, membership strictly voluntary

Problem identification, selection, analysis, solutionformation, management presentation and approval

10) Recognition and reward

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Five Principles of TQMProduce quality work the first time.

Focus on the customer.

Have a strategic approach to improvement.

Improve continuously.

Encourage mutual respect and teamwork.

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Advantages of TQM

Helps to focus clearly on the needs of the market

Facilitate to aspire for top quality performer

Channelizes the procedures necessary to achieve quality

performance

Helps examine critically and continuously all processes toremove non-productive activities and waste

Gears organization to fully understand the competition

and develop an effective combating strategyHelps develop good procedures for communication

Helps revive the process needed to develop the strategy

of never ending improvement

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TANGIBLE GAINS INTANGIBILE GAINS

Better product quality

Productivity improvement

Reduced quality costs

Increased market

Increased profitability

Reduced employee grievances

Effective team work

Enhancement of job interestImprovement in humanrelations and work areamorale

Participative cultureCustomer satisfactionImproved communicationEnhanced problem-solving

capacityImproved corporate healthand character of companyBetter company image

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Quality Management Awards

and Framework Deming Prize (Japan)

ISO 9000: 2000 certification

Malcolm Baldrige National Quality Award (MBNQA)

(United States)

Six Sigma

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The Deming philosophyA System of Profound Knowledge

1. Appreciation for a system - A system is a set of functions oractivities within an organization that work together to achieveorganizational goals. Managements job is to optimizethe system.(not parts of system, but the whole!). System requires co-operation.

2. PsychologyThe designers and implementers of decisions are

people. Hence understanding their psychology is important.

3. Understanding process variationA production process containsmany sources of variation. Reduction in variation improvesquality. Two types of variations- common causes and special

causes. Focus on the special causes. Common causes can bereduced only by change of technology.

4. Theory of knowledgeManagement decisions should be driven byfacts, data and justifiable theories. Dont follow the managementsfads!

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Kaizen: Implementation

PlanStudy the current system; identifying problems; testing theories of causes; and developing solutions. DoPlan is implemented on a trial basis. Data collected and documented. StudyDetermine whether the trial plan is working correctly by evaluating the results. ActImprovements are standardized and final plan is implemented.

Variation of PDSA cycle:

FADE

Focus, Analyze, Develop, Execute cycle!

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The Juran philosophy

Quality Trilogy

1. Quality planning: Process of preparing to meet qualitygoals. Involves understanding customer needs and

developing product features.

2. Quality control: Process of meeting quality goals duringoperations. Control parameters. Measuring the deviationand taking action.

3. Quality improvement: Process for breaking through to

unprecedented levels of performance. Identify areas ofimprovement and get the right people to bring about the

change.

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ISO 9000: 2000

Defines quality systems standards based on the premise thatcertaingeneric characteristics of management principlescan be standardized.

And that a well-designed, well-implemented and wellmanaged quality systemprovides confidence that outputswill meet customer expectations and requirements.

Standards are recognized by 100 countries including Japanand USA.

Intended to apply to all types of businesses. (Recently, B2B

firm bestroute.com became the first e-commerce company toget ISO certification.)

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ISO 9000: 2000

Created to meet five objectives:1. Achieve, maintain, and seek to continuously improve product

quality in relation to the requirements.

2. Improve the quality of operations to continually meet customersand stakeholders needs.

3. Provide confidence to internal management that qualityrequirements are being met.

4. Provide confidence to the customers that quality requirements arebeing met.

5. Provide confidence that quality system requirements are fulfilled.

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ISO 9000: 2000 Quality

Management Principles

Principle 1: Customer Focus

Principle 2: Leadership

Principle 3: Involvement of people Principle 4: Process approach

Principle 5: Systems approach for management

Principle 6: Continual improvement

Principle 7: Factual approach to decision making

Principle 8: Mutually beneficial supplier relationships.

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The integrated framework of the Baldrige Award criteria

Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 2 0899. (www.quality.nist.gov)

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Six Sigma

Business improvement approach that seeks tofind and

eliminate causes of defects and errors in processes byfocusing on outputs that are critical to customers.

The term Six Sigma is based on a statistical measure that

equates 3.4 or fewer errors or defects per millionopportunities.

Motorola pioneered the concept of Six Sigma.

The late Bill Smith, a reliability engineer is credited with

conceiving the idea of Six Sigma.

GE (specifically CEO Jack Welch) extensively promoted it.

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Six SigmaCore philosophy based on key concepts:

Think in terms of key business processes and customerrequirements with focus on strategic objectives.

Focus on corporate sponsors responsible for championingprojects.

Emphasize quantifiable measures such as defects permillion opportunities (dpmo).

Ensure appropriate metrics is identified to maintainaccountability.

Provide extensive training.

Create highly qualified process improvement experts -belts.

Set stretch objectives for improvement.

Contrasts between traditional TQM and Six

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Contrasts between traditional TQM and Six

Sigma (SS) -

TQM is based largely on worker empowerment and teams;SS is owned by business leader champions.

TQM is process based; SS projects are truly cross-functional.

TQM training is generally limited to simple improvementstools and concepts; SS is more rigorous with advancedstatistical methods.

TQM has little emphasis on financial accountability; SS

requires verifiable return on investment and focus onbottom line.

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TQM & organizational Cultural ChangeTraditional Approach

Lack of communication

Control of staff

Inspection & fire fighting

Internal focus on rule

Stability seeking

Adversarial relations

Allocating blame

TQM

Open communications

Empowerment

Prevention

External focus on customer

Continuous improvement

Co-operative relations

Solving problems at their roots

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ConclusionIn a nutshell,

TQM will increase productivity, will eliminate wastes,

reduce non-conformances, optimize costs, increase the

profitability , will enrich the employees life and will help the

industry to meet its societal obligation.

Total Quality Management is a marathon and not a sprint

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Your TQM

QuestionsPlease???