Total Quality Management

Total Quality ManagementPresented by Mustakim SaiyedAgendaTotal Quality Management (TQM) - IntroductionBackground & History of TQMBasic Principles & Pillars of TQMTQM Tools & Working ModelTQM in Indian ContextBuilding Blocks of TQMBenefits of TQMQuality Control vs Quality AssuranceConclusion

For Internal Use Only2Total Quality Management (TQM) - IntroductionQuality A frequently used definition of quality is Delighting the customer by fully meeting their needs and expectations.This includes -PerformanceAppearanceAvailabilityDeliveryReliabilityMaintainabilityCost effectiveness It is, therefore, imperative that the organization knows what these needs and expectations are. In addition, having identified them, the organization must understand them, and measure its own ability to meet them.

3For Internal Use OnlyTotal Quality Management (TQM) - IntroductionTotal Quality Management (TQM) refers to management methods used to enhance quality and productivity in business organizations. TQM is an organization wide effort to develop systems, tools, techniques, skills and the mindset to establish a quality assurance system that is responsive to the emerging market needs

4For Internal Use OnlyTQM is a comprehensive and continuous 360 degree management approach that works horizontally across an organization, involving - All departments and employees Extending backward and forward to include - suppliers and clients/customers5For Internal Use Only

Background & HistoryTQM, in the form of statistical quality control, was invented by Walter A. Shewhart in 1930s. It was initially implemented at Western Electric Company, in the form developed by Joseph Juran who had worked there with the method.After the World War II Japan's industrial system was having a poor image of imitation of products and having an illiterate workforce.TQM was demonstrated on a grand scale by Japanese industry through the intervention of W. Edwards Deming, the "father" of quality control.Japan became the first country to implement TQM principles as professed by Deming6For Internal Use OnlyBackground & History (cont.)In the late 1970s and 1980s, U.S. producers also began adopting quality and productivity techniques to restore their competitivenessIn 1980 the U.S. Navel Air Systems coined the TQM phrase. The Navy based most of the principles on the Japanese Total Quality Control philosophyIn the 2000s, ISO revisedISO 9001to focus more on business planning, quality management and continuous improvement.

7For Internal Use OnlyTQM/PDCA Cycle Continuous Improvement8For Internal Use Only

Basic Principles of TQMTop management: The upper management is the driving force behind TQM. The upper management bears the responsibility of creating an environment to rollout TQM concepts and practices.Training needs: When a TQM rollout is due, all the employees of the company need to go through a proper cycle of training. Once the TQM implementation starts, the employees should go through regular trainings and certification process.Customer orientation: The quality improvements should ultimately target improving the customer satisfaction. For this, the company can conduct surveys and feedback forums for gathering customer satisfaction and feedback information.9For Internal Use OnlyPillars of TQMInvolvement of employees: Pro-activeness of employees is the main contribution from the staff. The TQM environment should make sure that the employees who are proactive are rewarded appropriately.Techniques and tools: Use of techniques and tools suitable for the company is one of the main factors of TQM.Corporate culture: The corporate culture should be such that it facilitates the employees with the tools and techniques where the employees can work towards achieving higher quality.Continuous improvements: TQM implementation is not a one time exercise. As long as the company practices TQM, the TQM process should be improved continuously.

10For Internal Use OnlyTQM ToolsFlowcharts Remember system theory (Input, Output, customer supplier and their interactions).Divides complex processes into simple sub-processes.11For Internal Use Only

TQM Tools (cont.)Cause and Effect (Ishikawa / Fishbone) Diagrams Study of Cause & Effect of Men, Machine, Materials, Measurements and Methods in Organizational Environment

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TQM Tools (cont.)Pareto Charts APareto chart, named afterVilfredo Pareto, is a type of chart that contains bothbarsand aline graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line.

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TQM Tools (cont.)Histograms Graphical representation of distribution of data in form of bar graphs

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TQM Tools (cont.)Run Charts and Control Charts Used to track observations in timed sequence15For Internal Use Only

TQM Tools (cont.)Scatter plots and Correlation AnalysisTo study the correlation between two sets of variables

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TQM WORKING MODEL17For Internal Use Only

Building Blocks of TQM18For Internal Use Only

TQM in IndiaIn the early 1980's, confederation of Indian industries (CII) took the initiatives to set up TQM practices in India in 1982 quality circles were introduced for first time in India.The companies under which the quality circles were launched are Bharat Electronics Ltd, Bangalore and Bharat Heavy Electricals Ltd, Trichy. In 1986 CII invited professor Ishikawa to India, to address Indian Industry about quality.In February 1991 an Indian company with assistance of the CII, obtained the first ISO 9000 certification in India.In 1996, the Govt. of India announced the setting up of quality council of India and a national agency for quality certification was setup as a part of World Trade Organization agreement.19For Internal Use OnlyTQM Practices In India Case Study (Infosys HR Department)Treat employees as customers of the human resource departmentUse the jobline of every employee to install quality checksResearch workers requirements to design benefits and rewardsUse tests and interviews to ensure suitable skills and mindsetAdopt 360 degree appraisal to ensure objectivity of assessment20For Internal Use OnlyTQM Practices In India Case Study (Infosys HR Department)21For Internal Use Only

TQM Practices In India Case Study (Infosys HR Department)22For Internal Use Only

Benefits of TQMEncourages a strategic approach to management at the operational level through involving multiple departments' across functional improvement and systemic innovation processes.Provides high return on investment through improved efficiency.Works equally well for service and manufacturing sectorsAllows organizations to take advantage of developments that enable managing operations as cross-functional processesEncourages strategic alliances through establishing a culture of collaboration among different departments within organization

23For Internal Use OnlyQuality AssuranceQuality Assurance(QA) is a way of preventing mistakes or defects in manufactured products and avoiding problems when delivering solutions or services to customers. QA is applied to physical products in pre-production to verify what will be made meets specifications and requirements, and during manufacturing production runs by validating lot samples meet specified quality controls. QA is also applied to software to verify that features and functionality meet business objectives, and that code is relatively bug free prior to shipping or releasing new software products and versions.Example: ISI Compliance for Electronic goods is a quality assurance method. Consumers are assured of quality when they locate the ISI mark on the items they purchase.24For Internal Use OnlyQuality ControlQuality control is a process that is used to ensure a certain level of quality in a product or service. It includes whatever actions a business deems necessary to provide for the control and verification of certain characteristics of a product or service. It involves thoroughly examining and testing the quality of products or the results of services. The basic goal of this process is to ensure that the products or services that are provided meet specific requirements and characteristics, such as being dependable, satisfactory, safe and physically sound.Example: Food Quality check performed by Food Corporation of India at various restaurants at random is a QC exercise.25For Internal Use OnlyQuality Assurance vs Quality Control26For Internal Use OnlyQuality Assurance (QA)Quality Control (QC)DefinitionQA is a set of activities for ensuring quality in the processes by which products are developed.QC is a set of activities for ensuring quality in products. The activities focus on identifying defects in the actual products produced.Focus onQA aims to prevent defects with a focus on the process used to make the product. It is a proactive quality process.QC aims to identify (and correct) defects in the finished product. Quality control, therefore, is a reactive process.GoalThe goal of QA is to improve development and test processes so that defects do not arise when the product is being developed.The goal of QC is to identify defects after a product is developed and before it's released.HowEstablish a good quality management system and the assessment of its adequacy. Periodic conformance audits of the operations of the system.Finding & eliminating sources of quality problems through tools & equipment so that customer's requirements are continually met.Quality Assurance vs Quality Control27For Internal Use OnlyQuality Assurance (QA)Quality Control (QC)WhatPrevention of quality problems through planned and systematic activities including documentation.The activities or techniques used to achieve and maintain the product quality, process and service.ResponsibilityEveryone on the team involved in developing the product is responsible for quality assurance.Quality control is usually the responsibility of a specific team that tests the product for defects.ExampleVerification is an example of QAValidation/Software Testing is an example of QCStatistical TechniquesStatistical Tools & Techniques can be applied in both QA & QC. When they are applied to processes (process inputs & operational parameters), they are called Statistical Process Control (SPC); & it becomes the part of QA.When statistical tools & techniques are applied to finished products (process outputs), they are called as Statistical Quality Control (SQC) & comes under QC.As a toolQA is a managerial toolQC is a corrective toolConclusionTQM uses strategy, data, and effective communications to integrate the quality discipline into the culture and activities of any organization.The effective use of the tools and methodology can help companies achieve the highest level of quality standardsAll major Indian companies have started adopting these principles in other to face and live up to the competitive international markets and customer needs.28For Internal Use OnlyreferencesInc. ComTutorialsPoint.ComWikipediaBusiness Standard

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