Total Quality Management -acontinuous improvement process Presented by AMARCHAND . L 09MBA02.
Quality “Quality is defined as the totality of characteristics & features of a product or process which facilitates realization of given requirements.” Quality --A Few Definitions 1. Conformance to requirements --Crosby 2. Fitness for use --Japan 3. I know it when I see it --Guaspari 4. Value to someone --Weinberg "Quality has no meaning except as defined by the desires and needs of the customers." Deming
What is Total Quality Management .TQM is a approach to improve the effectiveness & flexibility of business as a whole.TQM is way of organizing by involving everyone. A comprehensive, organization-wide effort to improve the quality of products and services, applicable to all organizations. TQM is a comprehensive management system which:
Focuses on meeting owners’/customers’ needs, by providing quality services at a reasonable cost.
Focuses on continuous improvement.
Recognizes role of everyone in the organization.
Views organization as an internal system with a common aim.
Focuses on the way tasks are accomplished.
Evolution of TQM
How is customer satisfaction achieved? Two dimensions: Product features and Freedom from deficiencies. Product features – Refers to quality of design. Examples in manufacturing industry: Performance, Reliability, Durability, Ease of use etc. Examples in service industry: Accuracy, Timeliness, Friendliness and courtesy, Knowledge of server etc. Freedom from deficiencies – Refers to quality of conformance. Higher conformance means fewer complaints and increased customer satisfaction. 5
Quality perspectives Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include: Perfection Consistency Eliminating waste Speed of delivery Compliance with policies and procedures Doing it right the first time Delighting or pleasing customers Total customer satisfaction and service 6
Quality levels 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 currently receiving? 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 organization’s performance standards? 7
Quality levels 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? 8
QUALITY MANAGEMENT Quality Planning Quality control Quality improvement
QUALITY PLANNING Determine who the customers are Determine the needs of the customer Develop product features that responds to customer’s needs Develop processes that are able to produce those product features Fail-safing/Foolproofing : Pokayoke Transfer the resulting plan to the operating forces
QUALITY CONTROL Evaluate actual quality performance Compare actual performance to quality goals Take remedial actions
QUALITY IMPROVEMENT Establish the infrastructure to achieve annual quality improvement Identify the improvement projects Project teams Provide the resources ,motivation, training - Diagnose the causes - Stimulate establishment of remedy - Establish controls to retain the benefits
Process improvement tools Seven QC Tools Flow charts Check sheets Histograms Pareto diagrams Cause-and-effect diagrams Scatter diagrams Control charts 14
TQM beliefs Following are the universal Total Quality Management beliefs: Owner/customer satisfaction is the measure of quality Everyone is an owner/customer. Quality improvement must be continuous. Analysis of the processes is the key to quality improvement. Measurement, a skilled use of analytical tools, and employee involvement are critical sources of quality improvement ideas and innovations Sustained total quality management is not possible without active, visible, consistent, and enabling leadership by managers at all levels It is essential to continuously improve the quality of products and services that we provide to our owners/customers.
TQM principles People will produce quality goods and services when the meaning of quality is expressed daily in their relations. Inspection of the process is as important as inspection of the product. Probability of variation, can be understood by scientific methods. Workers work in the system to improve the system; managers work on the system to improve the system. Total quality management must be consistently translated into guidelines provided to the whole organization. Envision what you desire , but start working from where you actually are. Cleaner site and safer place to work is also important. Accept the responsibility for quality. Use the principle of get it right, the first time, every time. Understand that quality is a journey, not a destination.
Pitfalls to be avoided in TQM Many companies have started on the road to quality but failed to achieve success due to several factors, these are listed as follows: Lack of top management support. Lack of middle management support. Commitment in only one department. Short-term commitment . Haphazard approach . Failure to acquire the services of a competent statistician. Measure success and guide program. Failure to solicit worker input.
Pitfalls to be avoided in TQM (contd…) Over dependence on computerized quality control. Funding failure . No market research. No testing of incoming materials. Overselling hourly workers. Adversarial management.
Used to identify potential causes for particular quality problem.
Steps in implementing TQM 1 Obtain CEO Commitment 2 Educate Upper-Level Management 3 Create Steering Committee 4 Outline the Vision Statement, Mission Statement, & Guiding Principles 5 Prepare a Flow Diagram of Company Processes 6 Focus on the Owner/Customer (External) & Surveys 7 Consider the Employee as an Internal Owner/customer 8 Provide a Quality Training Program 9 Establish Quality Improvement Teams 10 Implement Process Improvements 11 Use the Tools of TQM 12 Know the Benefits of TQM
ADVANTAGES OF TQM Helps to face competition Reduction in Customer complaints Highly Motivated Personnel Expansion and Diversification
DISADVANTAGES OF TQM Conservative Attitude of Indian Management Master and Servant Relationship Attitudes of Indian Society
Quality Management Awards and Framework ISO 9000: 2000 Malcolm Baldrige National Quality Award Deming Prize Six Sigma