3. iNtRoductio
N:
O The first brand of biscuit
in India
O Factory visited: Parle
Manufacturing unit, Vile
Parle, Mumbai.
O Goods Manufactured:
Biscuits, Chocolates &
cookies
4. What is
Total Quality Management?
The principle introduced in Japan by
W. Edward Deming in 1950.
It is the efforts by an organization to
reduce errors in manufacturing and
services increasing consumer satisfaction
and improving brand loyalty.
Deming put forward his principle in 14
points as :
5. PRINCIPLE 1 : "CREATE A CONSTANCY OF PURPOSE"
Create constancy of purpose toward
improvement of the product and service
so as to become competitive.
•Parle is well determined about its purpose to
improve the quality of product and serve the
society as whole
6. PRINCIPLE 2 : "ADOPT THE NEW PHILOSOPHY"
•We are in a new economic age.
•Need not live with commonly accepted
Philosophy, it must be changed according to age.
•Parle has been using the same production process
and equipments over the years
•No major changes in the philosophy since
inception
7. PRINCIPLE 3 : "CEASE DEPENDENCE ON MASS
INSPECTION"
Cease dependence on mass inspection;
require, instead, statistical evidence that
quality is built in.
•Individual inspection is not possible as
each biscuit can not be checked manually.
•Sample inspection is done before packaging.
8. PRINCIPLE 4 : "DO NOT AWARD BUSINESS BASED ON
PRICE TAG ALONE“
Improve the quality of incoming materials. End
the practice of awarding business on the basis
of a price alone. Instead, depend on meaningful
measures of quality, along with price.
•known for its cost leadership in confectionery
market.
•It emphasizes on the quality of its raw material.
•Maintains cost by reducing wastage.
9. PRINCIPLE 5: "IMPROVE CONSTANTLY THE SYSTEM OF
PRODUCTION AND SERVICE"
Constantly improve the system of
production and service. There should be
continual reduction of waste and continual
improvement of quality to yield a continual rise
in productivity and a decrease in costs.
•Cost reduction due to new machinery.
•Reduction in wastage.
•Implementation of R&D to improve quality
10. PRINCIPLE 6 : "INSTITUTE TRAINING"
Use modern methods of training and
education for all. Modern methods of on-
the-job training to improve skills of
employees
•New employees given training at the time of joining.
•They are provided On job training (OJT).
•They are taught about newly adopted methods
of manufacturing
11. PRINCIPLE 7: "ADOPT AND INSTITUTE LEADERSHIP”
Institute modern methods of
supervision. The emphasis of production
supervisors must be to help people to do
a better job. There should be
performance appraisal.
•Employees are encouraged for suggestions
•Performance appraisal is done by promoting
employee.
•Employees with good performance are given
incentives.
12. PRINCIPLE 8 : "DRIVE OUT FEAR"
Fear is a barrier to improvement so
drive out fear by encouraging effective
two-way communication.
•Friendly relationship among employees and managers.
•Employees are proud to be a part of leading company
•Have job satisfaction.
•Employees have job security
13. PRINCIPLE 9 : "BREAK BARRIERS AMONG STAFF AREAS“
Break down barriers between
departments and staff areas. People in
different areas must work in teams to
tackle problems
•All departments are isolated from each other and
they don’t work hand in hand.
•Employees of some dept. (ex. Security) are on
contract basis and manager doesn’t hold its
responsibility
14. PRINCIPLE 10 : "ELIMINATE SLOGANS, EXHORTATIONS,
AND TARGETS “
Eliminate the use of slogans, posters and
exhortations for the workforce,
demanding zero defects
Such exhortations only create adversarial
relationships.
•The employees in factory are given targets and
slogans are displayed in premises as reminder
•Workers have fear of meeting up the target in
time.
15. PRINCIPLE 11 :"ELIMINATE NUMERICAL QUOTAS"
Eliminate work standards that prescribe
numerical quotas for the workforce and
numerical goals for people in
management
Substitute aid and helpful leadership.
•Employees at Parle (factory) work in shifts &
respond to jobs in their shifts only.
•They feel themselves responsible for what
happens in their shift (work duration of 8 hours)
•Hence Parle still have numerical quota.
16. PRINCIPLE 12 : REMOVE BARRIERS TO PRIDE OF WORKMANSHIP
Remove the barriers that rob hourly workers,
and people in management, of their right to
pride of workmanship.
Make them feel their work is equally important
•Lower employees (sweepers, security guards) are
not proud being part of factory.
•Employees with higher job profile are given
excessive importance making lower level employees
unhappy.
17. PRINCIPLE 13 :"INSTITUTE A PROGRAM OF EDUCATION
AND SELF-IMPROVEMENT"
Institutea vigorous program of education, and
encourage self-improvement for everyone.
What an organization needs is not just good
people; it needs people that are improving
with education
•No such programme for the employees
•Only training for job is provided
•No motivational programme for employees in
factory
18. PRINCIPLE 14 : "TAKE ACTION TO ACCOMPLISH THE
TRANSFORMATION"
Commitment to follow all the preceding
13 points to accomplish the goal of
Total quality management
•The preceding 13 Deming's points are partly
accepted in the factory and partly not.
•All points are not applicable in Parle
manufacturing process
•Hence 14th point is partly applicable and partly
not
20. Parle follows the Japanese 5s Theory:
Seri (Sort and Discard)- Eliminate All
unneeded items.
Seiton (Arrange and Order)- Arrange all
items that are left.
Seiso (Clean and Inspect)- Clean all
areas.
Seiketsu (Standardize and Improve)-
Maintain the first 3S
Shitsuke (Believe and Discipline)-
Believe that the 5S are important.
