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Total Quality Management

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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.

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"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." DefinitionTQM is composed of three paradigms:Total: Organization wide Quality: With its usual Definitions, with all its complexities (External Definition) Management: The system of managing with steps like Plan, Organise, Control, Lead, Staff, etc.

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DefinitionTotal Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes.

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ExplanationTQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.

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Evolution of quality Era

1900 1920 1940 1960 1980 1990 2000

Craftsman

Foreman

Inspection

SQC

TQC

TQM

TQC &CWQC

Evolution

Years

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Evolution of quality –Means & Focus1975 1980 1985 1990 1995 2000

Operation Customers Innovations

Quality ofWork life

QualityCircle

Productivity

EmployeeInvolvement

Quality

EmployeesEmpowerment

Total Quality

Self Directed Teams

TQC/TQM

Self Directed/Managed

Teams

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Kano’s Model

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Umbrella Model of TQM

SPC

JITTEI

Kaizen

QualityAssurance

Problem-Solving tools

CustomerSatisfaction

Taguchi Methods

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Basic Approach

A committed and involved management to provide long-term top - to - bottom organizational support.

An unwavering focus on the customer, both internally and externally.

Effective involvement and utilization of the entire work force.

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Basic Approach

Continuous improvement of the business and production process.

Treating supplier as partners.

Establish performance measures

for the processes.

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New and Old Cultures

Quality Element TQM

Definition -Product Customer

Priorities -Service &Cost Quality

Decisions- Short Long

Emphasis- Detection Prevention

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New and Old Cultures Errors- Operations System Responsibility- QC Every Body Problem

Solving - Managers Teams Procurement- Price Partners/JIT Manager’s Role- Plan Delegate

Assign Coach

Enforce Mentor

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Real Life

TQM has being implemented in TVS Group.

Boeing Aircraft

Reliance

Tata L & T HMT ITI

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Guru’s of TQM Walter.A.Shewhart -TQC &PDSA W.Edwards Deming- 14 Points &

PDCA Joseph.M.Juran-Juran’s Trilogy

A.Feiganbaum-Customer requirement,CWQC,Employee

Involvement, TQC.

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Guru’s of TQM

Kaoru Ishikawa-Disciple of Juran & Feigenbaum. TQC in Japan, SPC, Cause &Effect Diagram,QC.

Philips.B.Crosby. Four Absolutes-Quality-Req, Prevention of NC,Zero Defects & Measure of NC.

Taguchi.G-Loss Function.

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Definitions ISO 9000:2000

Quality is the degree to which a set of inherent characteristics fullfils requirements.

Quantified

Q=P/E P-Performance

E-Expectations Joseph M. Juran Quality is fitness for

use or purpose

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Definitions Philips B

Quality is Conformance to requirements

W.Edwards Deming A predictable degree of uniformity and dependability at low cost and suited to market

Bill Conway**** Development,manufacture,administrationAnd distribution of consistently low cost and products and services that customers need and want.

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Dimensions of Quality

Product- TVPerformance - Primary Characteristics,such as brightness

Features –Secondary Characteristics,Remote Control

Conformance-Meeting Specifications or Standards

Reliability –Consistency of Performance over time-fail

Durability- Useful life ,include Repair.Service

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Dimensions of QualityDurability- Useful life ,include repair.

Service-Resolution of problems,ease of repair.

Response- Human relations with Customers.

Aesthetics-Sensory Features.

Reputation- Past performance, Company Image.

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Quality Cost Prevention Cost –Planning, Document, Control,

Training Appraisal Cost –Inspection & Tests, Installation,

Calibration, M/c Depreciation, Reports & Rejects. Internal Failure Cost – Scraps, Repair Rework,

Design Changes, Defect Failure Analysis, Retests & ReInspection, Downgrading, Down Time.

External Failure Cost – Complaints, Goodwill, Failures, Services & Replacement, Guarantee & Warranty, Compensation, Recall, Loss of Sales, Seconds Sales.

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Economics of Quality of Conformance

Internal & External Failure Cost

Prevention & Appraisal Cost

Optimum Total Cost

Total Cost

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Obstacles

Top management commitment

Changing Organization Culture

Improper planning

Continuous Training & Education

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ObstaclesOrganization Structure & Departments

Data’s & Facts For Effective Decisions

Internal & External Customers-Dissatisfaction

Empowerment & Teamwork

Continuous Improvement

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BenefitsImproved Quality

Employee Participation

Team Work

Internal & External Customer Satisfaction

Productivity ,Communication

Profitability & Market Share

Excellence

An olympic gold Nobel Prize The state of quality of excelling

or being exceptionally good or of extreme merit

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Companies which Excelled

Toyota Nippon Honda Sony Telco L&T Maruti Hero Honda

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HOW?

Provide outstanding products and services to customers?

Bestow unparalleled benefits on employees

Did they dominate competitors? Did their annual reports

consistently display record growth and earnings?

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Individuals not organisations create excellence

Lead others along path of excellence

Cultivate others who will later assume control

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Foundations of Excellence

Strategic thinking(ST) and culture building(CB)

Strategy is that approach to business that stresses the impact of competitive advantage

Culture is careful attention to organizational and peoples need

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To unite strategy and culture – develop a vision of the firms functions

To implement the strategy to make that vision a reality, nurture a corporate culture that is motivated by and dedicated to the vision

Eg: Toyota : GM

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Transform mediocre organisation into excellent ones

Convert crisis into opportunity Shape vision into utility Executives- think strategically Build cultures creatively- not

both simutaneously

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ST and CB- How Do they Work?

ST- satisfy customer needs Gain sustainable advantage over competitors Capitalise on company strengths CB- instill collective commitment ot a common

purpose foster distinctive competence among employees Establish consistency- helps attract,

keep,develop leaders at all levels

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NEW AGE ATTITUDE Six fundamental skill 1. set goals, policies & procedures 2. organise, motivate and control people 3. analyse situations, formulate strategic and

operational plans 4. respond to change through new strategies and

reorganisation 5. implement change by issuing new policies and

procedures 6. get results, growth, profitability and return on

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New Skills

Creative insight Sensitvity Vision Versatility Focus Patience

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Why Japancould do it, India couldn’t

Quest for excellence Dedication to work principles Helped establish a culture of excellence No special advantage for Japanese- they simply

examine a process of doing a jo, then try to improve it

Quality is both thinking why something is done, why it is done this way, then thinking differently to improve it-Toyota

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Factors of Excellencerecap…….

Strategy and culture are foundations of excellence

To build excellent organisational culture, six new age skills-creative insight, sensitivity, vision, focus and patience needed

creativity and innovation are other essential features of excellent organisations

19-10-2012

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Recap….

Excellent organisations are adaptive to innovative changes

Recognition and reward are people oriented in these org.

Team work and group activities MBWA with employees and customers Believe in Quality Excellent org. are TQM oriented

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Poor Quality leads to… Low customer satisfaction and low market share Low productivity, revenue and profit Low morale of work force More rework, material and labour costs High process bottlenecks, delay in product

shipment High analysis and repair costs high material wastage and scrap high inspection costs

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What is Quality?

Quality, cost and Productivity- fundamental concerns of management world wide

Q of products and services Org. which manage productivity

and q on a continuous basis able to compete in the long run

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New concept of quality calls for….

Well designed products with functional perfection- right the first time

Prompt satisfaction of customers expectation Excellence in service absolute empathy with customers Customer satisfaction---- delight

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Evolution of Quality……

Developed from operators inspection(1900) to verification by supervisors (1920)

QC departments and 100% inspection (1940) SQC(1960) Quality circles (1980) TQM,Q-management systems(1990)

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Evolution of quality –Means & Focus1975 1980 1985 1990 1995 2000

Operation Customers Innovations

Quality ofWork life

QualityCircle

Productivity

EmployeeInvolvement

Quality

EmployeesEmpowerment

Total Quality

Self Directed Teams

TQC/TQM

Self Directed/Managed

Teams

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Evolution of quality Era

1900 1920 1940 1960 1980 1990 2000

Craftsman

Foreman

Inspection

SQC

TQC

TQM

TQC

Evolution

Years

Why company put effort to improve Quality…..Company Quality Cost Productivity

Customers Quality Price After sales service

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Definitions of Quality Quality is fitness for use or purpose- Joseph

M.Juran Quality is Conformance to requirements- Philip

B.Crosby

A predictable degree of uniformity and dependability at low cost and suited to market-W.Edwards Deming

The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs of the customers -ISO8420:Quality Vocabulary

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New definition of Quality… Little “q”- old thinking- Q is about products, its

technical, for inspectors, led by experts, good quality is of high grade, quality is about control

Big “Q”- New thinking-Q is about organisations,q ia strategic, q is for every one, is led by management, q is appropriate grade

About continuous improvement, quality culture emphasis on customer requirement at affordable price

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Good quality process changes the way things are done by……

Driving business from customer needs Setting a clear vision Utilise contributions of all employees Managing well beyond company boundaries Managing processes to their optimal capability partnering with customers and suppliers Developing workers to manage and managers to lead break down hierarchy and functional divisions Faster, leaner and more responsive to market opportunities Integrate all above for competitive advantage

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Quality is not magic…. Relationship to be established between cost and

productivity.. Quality cannot do things like… Pull new customers out of the hat Vanish away regretted decisions Trick customers Solve all problems overnight Transform difficult people into angels Manage the business for us

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Symptoms of non quality business.. Complaints- irate customers Wasted time Frustration- time wasted in rework and repair Hassle- always fires to put out Confusion- no one seems to know what is going on Overload- you always have too much to do Underload – your staff dump their problems on your

desk Neglect- no one wants to hear your problems

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TQM PHILOSOPHY

TQM – a characteristic of most successful business world over

Changing demands of customers Penetration of Asian tigers Stringent cost management Quality and reliability overriding factors Customer specifications Speed and dependability of service and

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TQM and Indian Scriptures

TQM has roots in ancient Indian scriptures Total meaning 100% is whole space or advaita Quality will pull down boundary which Dharma

gives the permission to achieve Karma and purushartha- management- what

one must perform to get the needed results West only discovers what the East already

knows

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From the Vedas- Profit is compensation for service to society Companies exist to satisfy the needs of the people Every person has immense potential(Aham

Brahamasmi) My customer is not different from me(Advaita) The world is my house(Vasudev kutumbakam) Hence covers all all TQM aspects like social cost

benefit,HRD,customer focus and globalisation

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Failed attempts to implement TQM………….

Lack of commitment from senior management Inadequate planning Inability to change Failure to identify and establish customer needs Failure to progress beyond registration to quality

systems standard-ISO-9000

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ISO-9000 and TQMISO9000 TQM

Not necessarily customer focused Definitely customer focused

Not integrated with corporate strategy Integral to company strategy

Technical systems and procedures focused

Philosophy, techniques, concepts and tools focused

Employee involvement not necessary Emphasis on employee involvement and empowerment

No focus on continuous improvement in ISO 9000

Continuous improvement and TQM is a never ending journey

Quality department responsible for quality

Every one is responsible

Three step maxim of ISO-1. document what you do 2. do only what you document 3. demo that u have done it with documentary proof

Customer satisfaction and economic costs are TQMs two distinguishing features

ISO is a technical and physical systems standards

TQM is a philosophy – approach is behavioural and human

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TQM can be conceptualised into the following three process….

Quality Process for understanding who the customers are, what are his/ her needs and taking steps to completely satisfy the needs of this customer

Management process for continuous improvement to keep pace with changing requirements, competitive environments and technological advances

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People Process -it is initiating and maintaining theTQM. It is carried out through involvement of all employees on the basis of three values, intellectual honesty, self control and respect for others.

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Total Quality Activities

Supplier development Supplier assessment Suplier improvement Supplier partnership

Process development Process control Process improvement Process re-engineering

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Policy deployment Leadership and culture Quality systems Measurement and

assessment

People development

Teamwork and involvement

Training and education Empowerment and

recognition

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Customer focus Customer requirements Customer satisfaction Customer loyalty

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Three Steps to TQM

Understand six basic concepts underlying all total quality success

Address six management elements that must be integrated into practices and systems of your managers

Review and plan six stages of converting from the existing situation to the launch of these new methods

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Six key concepts…

Customers (external and internal ) Never ending improvement Control of business process Upstream preventive management Ongoing preventive action Leadership and team work management

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Six key elements of TQM Communication of missions, aims and

objectives by performance target, ongoing communication and review mechanism

Collection and collation of external intelligence- from market, competitors, customers, environment and society

Measurement of internal performance- of company, department, group, individual, process and product/service as measured by quality costs, process management, auditing and statistical process control

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Identification of improvement opportunities-by formal and informal systems, no blame culture, prioritisation of ideas, allocation of resourses and involvement of all ( cross dept., defined roles, individuals and meeting agendas

Implementation of changes- leadership style, team building, project management, team working, problem solving , monitoring and process management

Steering and coordination of total quality programmes- by prioritisation, review recognition, display of performance by news letters, charts etc….

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Six Key Stages….. Statement of intent-executive statement of the

intention to evaluate the possible benefits of the new approach to bussiness

Awareness- Directors, executives and senior managementtrained in the concepts, tools and techniques of TQ

Diagnosis-identification and quantification of the possible benefits of the TQ approach to business- individual reviews carried out eg..external customer satisfaction,staff attitudes, morales, internal and external communication, market standing, interfaces with suppliers…

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Initial Strategy- the diagnosis indicates to the senior management-a) what the organisation does best/worst.b) major improvement opportunities c) initial bases of performance .d) a basis for planning the way forward

Management concensus- a major executive and senior management forum evaluate and accept the quantification of the need for change(stage 3) and proposals for strategy and management frame work(stage4) – could be as a straight forward board meeting or an offsite conference

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Launch- trg and communication cascade down to achieve management and staff commitment in organisation- establish awareness in each employee of TQM concepts- know their aims, objectives, strategies and management framework

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Achieving TQM…..

Understand the six concepts Address the six management elements Launch the six stage plan

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TQM Models

Fuji Xerox model-TQM a simple blend of charisma and process discipline

Continuous harnessing of the three forces: vision, sensitivity and technology

Fountain head for Xerox wide leadership through quality movement

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Norman Rickad Model Fishbone frame work showing six key enablers

that constituted TQM implementation at Modi Xerox

Training, quality network, role modeling or senior management, recognition and rewards, communication, standards and measures

This leads to two priorities- Customer satisfaction and employee satisfaction

four business results- revenue, profit, return on assets and market share

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Eicher Group model

Three Legged Stool model Elements of TQM constitutes the three legs SPC JIT Total employee involvement-leader ship,

teamwork, people satisfaction through empowerment

Also implemented by Toyota

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Operational Model

Uses the three elements- total participation, problem solving tools, management support and commitment at three angles of a triangle

centre of the triangle shows the Quality Management systems

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Diamond Model

Four characteristics of TQM Totality Documentation Foundation improvements

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Umbrella model(Atkinson, 1990)

Under the umbrella all elements of TQM- JIT, TEI,SPC, Kaizen, customer satisfaction, quality assurance, Taguchi methods, quality circles are included

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Umbrella Model of TQM

SPC

JITTEI

Kaizen

QualityAssurance

Problem-Solving tools

CustomerSatisfaction

Taguchi Methods

Accelerated Business Improvement Model ( Smith, 1995) smith model comprises of belief, strategy,

leadership, customer satisfaction, process, people, discipline, energy and change.

Keeps belief in the centre and other elements are surrounded by energy, change and accelerated business improvement

Lots of energy is needed to bring a change for implementing other elements of the model

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Kanos Model

Dr. Noriaki Kano, Professor of Tokyo university and member, Deming prize committee

Sound intrinsic technology and skills to have strong company processes

TQM foundation should have motivation for quality

On these foundation stands the three pillars of TQM- promotional vehicle, technology, concepts

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Kanos… Basic concepts- customer first, management by

facts, focus on prevention, employee involvement through respect and cross functional management

Promotional vehicles- policy management, daily management, team activity , vendor quality

Basic technology forms the third pillar

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Kano’s Model

Westing house Model of TQM Three major dimensions: Requirements,

Measurements and imperatives Requirements: customer satisfaction,

stakeholder values, employee satisfaction and public approval

Measures: Value/price ratios, value cost ratios and error free performance

Imperatives: customer orientation, HR excellence, product- process leadership and management leadership

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Itoh Model

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This model shows portion of time spent by different management levels on different activities

Major activities shown are routine or maintenance, improvement and breakthrough development activities

Top management spends more time on breakthrough and development activities

Lower management spends more time on routine and development activities

Improvement activities are equally distributed among all levels of management

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Peratac TQM Model Three typical steps: Understand six key concepts Address six management elements Launch six stage plan

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Kehoe’s Model

Dennis F. Kehoe (1996)- dimensions of quality management as people, techniques and systems

These dimensions to be supported by training and understanding, teamwork, communications, improvement and commitment

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Oakland Model for TQM

Defines TQM as a pyramid with 5 distinct components:

1. Management commitment: leading and introducing change has to come from senior management team

2. Customer supplier chains: This is at the heart of the Oakland pyramid. Reflects process ownership, process management, and process improvement

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3.Systems: documented set of procedures and standards of doing things right, first time and every time

4. SPC tools: need to continuously measure and control conformance to customer requirements and agreed standards. They help to quickly correct defective measssures and keep performance on track

5. Team work: A culture based on continuous improvement has to be cultivated, encouraged and implemented in the organisation

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Building Blocks Model

Proposed by Zairi(1991) Looks at TQM from three levels TQM depends on various building blocks which

together determines the strength and safety/security of the organisation

Weakness in one area will have a disastrous effect on the TQM programme

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Three levels… 1. Total quality- the Foundation: ethos of TQM is

internal improvement, introduction of a change, flexibility and adaptability. Heart of the TQM is the human creativity machine

2. Total quality- the Pillars: the pillars of TQM are the means by which human creativity inputs are channelled through and converted into outputs which benefit end customer. Pillars are the quality systems like procedures, documentation, recording and analysis, workplace design, ergonomics, tech innovation, strength of customer supply chain

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Total quality – the Top: similar to roof of building ; most important part. Shields the organisation from external adverse factors. This part has to be weather proof (not affected by adverse changes in market place) and should not deteriorate( adapt to new market patterns)

includes- leadership, quality planning, vision for world class competitiveness

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