TOTAL QUALITY MANAGEMENT(TQM

)UNIT -1

Today we hear of the terms like Quality Circle , ISO & TQM . It is a common belief that Quality circles are for grassroot , ISO is for management , TQM is for top management . In reality ,all the above concepts cannot be implemented if they are not supported by all the levels of organisation . Sufficient involvement ,active participation & visible support is essential for sustaining these activities.

INTRODUCTION

Earlier there was in a seller’s market . Price was calculated as cost + profit . There was hardly any choice for customer other than to accept the product with the labeled price & quality . Today, the picture is entirely different .The market is highly competitive & customer-driven . Today’s customer demands quality & dictates the price . Customers are becoming highly volatile & very sensitive . He expects the best in quality in lowest prices . The situation is such is such that an dissatisfied customer implies the losing him/her to one’s competitor . One can profit in business only as long as he worries about his customer rather than merely returns and gains .This brings into the picture the much talked of TQM concept.

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Satisfaction of the customer is ensured only through production of quality product at competitive prices . The secret of successful organisation is , hence , the co-operation of all levels of the organisation concerned . Quality must be produced & demonstrated in each & every section . The first step towards adapting this concept is the redefinition of the word ‘customer’ . A customer is not only one who approaches an organisation with a need .Each section also has its internal customer.

TQM : TOTAL QUALITY MANAGEMENT

Meaning:- Total quality management is a real &

meaningful effort by an organisation to change its whole approach to business to make quality a guiding factor in everything the organisation does . It stresses a commitment by management to have a continuing drive towards excellence in all aspects of products & services.

MEANINGS & DEFINITION OF TQM

Definition:- “Total Quality is a people-focused management

system that aims at continual increase in customer satisfaction at continually lower cost”.

-by J.Rampey & H.Roberts(1992) “Total Quality Management is a process

designed to focus on customer expectations , preventing problems , building commitment to quality in the workforce & promoting open decision-making ”.

-by John Gilbert

MEANINGS & DEFINITION OF TQM

Thus , the basic & the most important ingredient of TQM is the total & complete satisfaction of the customer in every way & the management must be totally committed to the concept of TQM . TQM results in light quality , lower cost products & services that respond faster to the needs of the customer.

TQM

TQM

TQM

In essence ,TQM becomes the dominant culture of the organisation . Some of the core values for everyone in the total quality organisation might include the following :

Make it right for the customer at any cost . Internal customers are as important as external

customers. Respond to every customer enquiry &

complaint by the end of the day. Answer the phone within two rings.

TQM AS DOMINANT CULTURE

The customer is always right. Not only meet customer’s expectations , but

delight the customer in the process. Teamwork & co-operation are more important

than individual action and gamesmanship. Everyone is involved in the quality effort ; no

exceptions or bench sitting is allowed. Respond to every employee suggestion for

quality improvement in a week. Never be satisfied with the level of quality ;

always strive for continuous improvement.

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Results & Trends of TQM

Senior Executive Leadership

Quality & Operational

Results 6.0

Customer Focus &

Satisfaction 7.0

SYSTEMS

DRIVER

Human Resources

Development & Management

4.0

Management of Process Quality

5.0

Strategic Quality

Planning 3.0

Information & Analysis

2.0

BALDRIGE AWARD CRITERIA FRAMEWORK

• Customer Satisfaction

• Customer Satisfaction Relative to Competitors

• Market Share

GOALMEASURES

OF PROGRESS

• Product & Service Quality

• Internal Quality & Productivity

• Supplier Quality

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DIM

EN

SIO

NS

OF Q

UA

LIT

Y

Functionality

Reliability

Durability

Aesthetic Characteristics

Safety

Simplicity

Physical Attributes

Serviceability

3

2

1

4

6

5

8

7

DIMENSIONS OF QUALITY

Strategic Commitment

Improved Quality

Methods

Materials

Technology

Employee Involvement

MAJOR INGREDIENTS IN TQM

MAJOR INGREDIENT IN TQM

Technology Materials MethodsEmployee Involvement

Strategic Commitment

MAJOR INGREDIENTS IN TQM

Building communication networks with open channels including all employees.

Supportive supervisors. Delegating responsibility to people who

are closer to the theatre of operations. Developing a highly motivated workforce. Formal techniques such as quality circles.

TECHNIQUES FOR BUILDING EMPLOYEE INVOLVEMENT

CUSTOMERS

• Reliability• Predictability• Value for Money• On-Time Delivery

Problem Solved

COMMUNITY

• No Environmental Risk

• Job Opportunities• Facilities• Disposable

Income• Predictability

EMPLOYEES

• Reward• Recognition• Safety & Security• Prospects• Positive Image

OWNERS

• Return on Investment

• Increased Asset Value

• Predictability• Confidence• Positive Image

TQM Organisation

SOURCES & LEVELS OF CONFLICTS(TQM ORGANISATION)

Helps to face competition. Satisfaction of the customer is ensured. Generates good name & reputation for the

company. Less rejections. Reduced complaints of customers. Better facilities to employees. Expansion diversification. Highly motivated personnel.

NEED & IMPORTANCE OF TQM

TQM requires a never-ending process of continuous improvement . The end goal is perfection which is never achieved but always sought . The concept of continuous improvement has become the corner stone of the Japanese approach to production . The Japanese use the term ‘Kaizen’ to describe the ongoing process of continuous improvement.

While the concept of continuous improvement & TQM require a complete overhaul of management philosophy & organizational culture , managers can rely on several specific tools & techniques for improving quality.

TOOLS & TECHNIQUES OF TQM

TOOLS & TECHNIQUES OF TQM

Approaches &

Methodology for Quality

Improvement

1.Re-engineering

2.Bench-making

3.Emprove-ment

4.Putting Emprovement

in action

5.Outsourcing

6.Speed

7.Quality Functions

8.Taguchi Technique

9.Flow Diagrams

10.Pareto Analysis

11.Cause & Effects

Diagrams

12.Statistical Process Control

According to Hammer & Champy in their best-selling book , re-engineering is “the fundamental rethinking & radical redesign of business processes to achieve dramatic improvements in critical , contemporary measures of performance , such as cost , quality ,service , & speed . ”

REENGINEERING

Although there are many different approaches, reengineering can be broken down into several steps . The goal of steps is to improve efficiency & performance . Under the reengineered process , employees must become part of & must be trained in the new way of carrying tasks.

First sep of this process begins with top management’s rethinking the basic mission of the organisation & clearly deciding what business they are really in & what they want to be in . This step provides direction for the reengineering effort & ensures that the effort is not wasted on operations that will soon be discarded because they do not fit with the organization’s mission.

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Top management will play an active role in leading the process , thus ensuring overall co-operation from personnel .

Management will create a sense of urgency among personnel regarding the need for reengineering , thus ensuring their commitment & effort .

Operations will be designed from the outside , by first finding out what the customer wants or needs & then creating the structure & teamwork for providing it . A final step will involve top-down & bottom-up initiatives , so that support for the reengineering process will extend the length & breadth of the organisation .

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According to Fred Luthans , “ benchmarking is the process of comparing work & service methods against the best practices & outcomes for the purpose of identifying changes that will result in higher-quality output ”.

BENCHMARKING

The benchmarking process usually involves the following steps :-

Identify critical area : Identify a critical area in your own organisation that needs improvement .

Identify excellent areas : Identify some other organisation which exceeds in quality in that area .

Study benchmark activity : That organisation would then become your benchmark for that area for improvement . Study the organisation carefully & especially its benchmark activity.

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Analyse the data : Analyze the data so gathered from the benchmark organisation & compare it with your activity .

Improve the critical area : Improve the critical area in your own organisation .

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Benchmarking offers a number of benefits to organizations :

1. This technique helps organisations to compare themselves against successful companies for the purpose of identifying improvement strategies .

2. Benchmarking enables organisations to learn from others .

3. It helps to create a need for change by showing the organisation how procedures & work assignments should altered & resources reallocated . There are a wide variety of examples in which benchmarking has helped organisations to improve their total quality .

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Any Questions….?