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Awareness on Total Quality Management. Information, history regarding quality is collected from various sources like internet, books. It compiled and presented to know what is TQM.

Awareness on Total Quality Management. Information, history regarding quality is collected from various sources like internet, books. It compiled and presented to know what is TQM.

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  • 1. Total Quality Management H. Ramasubramanian (HRS)
  • 2. Introduction • • Everyone has had experiences of poor quality when dealing with product or service. These experiences might involve – an airline that has lost a passenger’s luggage, – a dry cleaner that has left clothes wrinkled or stained, – a purchased biscuit that tastes or smells bad, – a product purchased does not work or broken or damaged, or – poor course offerings and scheduling at college. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 2
  • 3. Introduction …….. • • • The poor quality could be the result of employee – Not notice quality lapse or – Do not bother about it or – Not empowered to correct quality inadequacies. Today, we come across service employees do not care quality service. The consequences of such an attitude are lost customers and opportunities for competitors to take advantage of the market need. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 3
  • 4. Introduction …….. • • • • • • • • Successful companies understand the powerful impact of customer-defined quality to stay in their business. For this reason many competitive firms continually increase their quality standards. For example, both the Ford Motor Company and the Honda Motor Company have announced that they are making customer satisfaction their number one priority. The slow economy of 2003 impacted sales in the auto industry. Both firms believed that the way to rebound is through improvements in quality, and each has outlined specific changes to their operations. Ford focused on tightening already strict standards in their production process and implementing a quality program called Six-Sigma. Honda, on the other hand, focused on improving customer-driven product design. Although both firms have been leaders in implementing high quality standards, they believe that customer satisfaction is still the top most priority. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 4
  • 5. Lecture objective To know, • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 5
  • 6. Lecture objective To know, • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 6
  • 7. Need for Quality • Definition of quality – There is no single definition of quality. • Conformance to specification • Fitness to use • Value for money • After sale service support • Psychological criteria • Meeting customer needs • Satisfying Customer • and so on……….. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 7
  • 8. Need for Quality ….. • Definition of quality – Conformance to specification • measures how well the product or service meets the targets and tolerances determined by its designers. • conformance to specification is directly measurable, though it may not be directly related to the consumer’s idea of quality. – Fitness to use • focuses on how well the product performs its intended function or use. • fitness for use is a user-based definition in that it is intended to meet the needs of a specific user group or location where it is used. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 8
  • 9. Need for Quality ….. • Definition of quality ….. – Value for money • It is a definition of quality that consumers often use for product or service usefulness for the money they paid. • This is the only definition that combines economics with consumer criteria; it assumes that the definition of quality is price sensitive. – After sale service support • How the quality of a product or service is judged. • Quality does not apply only to the product or service itself; it also applies to the people, processes, and organisational environment associated with it. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 9
  • 10. Need for Quality ….. • Definition of quality ………. – Psychological criteria • It is a subjective definition that focuses on the judgmental evaluation of what constitutes product or service quality. • Different factors contribute to the evaluation, such as the atmosphere of the environment or the perceived prestige of the product. • For example, a hospital patient may receive average health care, but a very friendly staff may leave the impression of high quality. • Similarly, we commonly associate certain products with excellence because of their reputation; Rolex watches, Mercedes-Benz, Saravana Bhavan, Inox…..are examples. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 10
  • 11. Differences Between Manufacturing and Service Organisations • Defining quality in manufacturing organisations is often different from that of services. • Manufacturing organisations produce a tangible product that can be seen, touched, and directly measured. • Examples include cars, mobiles, clothes, computers, and food items. Therefore, quality definitions in manufacturing usually focus on tangible product features. • The most common quality definition in manufacturing is conformance, which is the degree to which a product characteristic meets pre-set standards. • Other common definitions of quality in manufacturing include – performance—such as acceleration of a vehicle or pickup, mileage – reliability—that the product will function as expected, all the time, without failure – features—the extras that are included beyond the basic characteristics – durability— expected operational life of the product and – serviceability—how readily a product can be repaired and how expensive it is. • The relative importance of these definitions is based on the preferences of each individual customer. It is easy to see how different customers can have different definitions in mind when they speak of high product quality. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 11
  • 12. Differences Between Manufacturing and Service Organisations ….. • • • • • • • In contrast to manufacturing, service organisations produce a product that is intangible. Usually, the complete product cannot be seen or touched. Rather, it is experienced. Examples include – treatment in a hospital, – experience of staying at a holiday resort / Hotel, and – learning at a university. The intangible nature of the product makes defining quality difficult. Also, since a service is experienced, perceptions can be highly subjective. In addition to tangible factors, quality of services is often defined by perceptual factors. These include – responsiveness to customer needs, – courtesy and friendliness of staff, – promptness in resolving complaints, and – atmosphere. TQM - 2013 Nov - This is a compilation of available 12
  • 13. Differences Between Manufacturing and Service Organisations ….. • • Other definitions of quality in services include – time—the amount of time a customer has to wait for the service; and – consistency—the degree to which the service is the same each time. For these reasons, defining quality in services can be especially challenging. Dimensions of quality for manufacturing versus service organisations are shown below Manufacturing Organisations Service Organisations • Conformance to specifications • Tangible factors • Performance • Consistency • Reliability • Responsiveness to customer needs • Features • Courtesy / friendliness • Durability • Timeliness / promptness • Serviceability • Atmosphere TQM - 2013 Nov - This is a compilation of available information in Internet & Books 13
  • 14. Lecture objective To know, • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 14
  • 15. Evolution of Quality • The quality movement can trace its roots back to medieval Europe, where craftsmen began organising into unions called guilds in the late 13th century. • Until the early 19th century, manufacturing in the industrialised world tended to follow this craftsmanship model. • The factory system, with its emphasis on product inspection, started in Great Britain in the mid-1750s and grew into the Industrial Revolution in the early 1800s. • In the early 20th century, manufacturers began to include quality processes in quality practices. • After the United States entered World War II, quality became a critical component of the war effort: – Bullets manufactured in one state, had to work consistently in rifles made in another state. – The armed forces initially inspected virtually every unit of product. – Then to simplify and speed up this process without compromising safety, the military began to use sampling techniques for inspection, – Military-specification standards were published. – Training courses were conducted in statistical process control techniques. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 15
  • 16. Evolution of Quality……. • The birth of Total Quality in the United States came as a direct response to the quality revolution in Japan following World War II. • The Japanese welcomed the input of Americans Joseph M. Juran and W. Edwards Deming. • People started focusing on improving all organisational processes through the people who used them, rather than concentrating on product inspection. • By the 1970s, U.S. industrial sectors such as automobiles and electronics had been affected by Japan’s high-quality competition. • The U.S. insisted on the approach of involving the entire organisation, not only the statistics. This became known as Total Quality Management (TQM). • By the last decade of the 20th century, TQM was considered as an intense and widely shared enthusiasm by many business leaders. • In the few years since the turn of the century, the quality movement seems to have matured beyond Total Quality. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 16
  • 17. Evolution of Quality …….. • New quality systems have evolved from the foundations of Deming, Juran and the early Japanese practitioners of quality, and quality has moved beyond manufacturing into – service, – healthcare, – education and – government sectors too. • Now, more than ever before, processing costs and problems of repeatability can stall new programs at the start. • Marginal improvements in the control of manufacturing processes, – although useful in the short term, – will not provide the required levels of quality, reliability, or economy of production. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 17
  • 18. Evolution of Quality …… Improvement in Product Quality Figure depicts the shift in approaches used to ensure product quality as a function of time. Quality Through Design Inspection 1920 Statistical Process Control Integrated Design and Manufacturing Improved Designs 1940 1960 Evolution of Quality Control TQM - 2013 Nov - This is a compilation of available information in Internet & Books 1980 2000 18
  • 19. Evolution of Quality…….. • Taguchi methods belong to the class of approaches that attempt to ensure quality through design, in this case through the identification and control of critical variables (or noises) that cause deviations to occur in the process/product quality. • Taguchi methods, developed by Dr. Genichi Taguchi, refer to techniques of quality engineering that makes both statistical process control (SPC) and new quality related management techniques as part of the system. • Most of the attention and discussion on Taguchi methods has been focused on the statistical aspects of the procedure; it is the conceptual framework of a methodology for quality improvement and process robustness that needs to be emphasised. The entire concept can be described in two basic ideas: 1. Quality should be measured by the deviation from a specified target value, rather than by conformance to pre-set tolerance limits 2. Quality cannot be ensured through inspection and rework, but must be built in through the appropriate design of the process and product TQM - 2013 Nov - This is a compilation of available information in Internet & Books 19
  • 20. Evolution of Quality …… The basic difference between Taguchi methods and the SPC methodology. • SPC methods emphasize the attainment of an attribute within a tolerance range and are used to check product/process quality. • Taguchi methods emphasize the attainment of the specified target value and the elimination of variation Upper Specification 100% Loss SPC Target Lower Specification 100% Loss Upper Specification Taguchi 100% Loss Target 100% Loss Lower Specification Comparison of methodologies TQM - 2013 Nov - This is a compilation of available information in Internet & Books 20
  • 21. Cost of Quality • • • Organisations have gained an understanding of the high cost of poor quality. Quality affects all aspects of the organisation and has dramatic cost implications. Poor quality creates dissatisfied customers and eventually leads to loss of business. – Quality Control Cost - The costs necessary to achieve high quality. - Prevention costs - Costs to prepare and implement a quality plan. - Appraisal costs - Costs of testing, evaluating, and inspecting quality. – Quality Failure Cost - The cost - consequences of poor quality - External failure costs - Costs of failure at customer site, including returns, repairs, and recalls. - Internal failure costs - Costs of scrap, rework, and material losses. • The first two costs are incurred in the hope of preventing the second two. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 21
  • 22. Cost of Quality ….. • • • When you notice the issue and it costs what? Companies that consider quality important invest heavily in prevention and appraisal costs in order to prevent internal and external failure costs. The earlier defects are found, the less costly they are to correct. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 22
  • 23. Cost of Quality ….. Visible Testing Cost Inspection Warranty Recalls Rejects Scrap Customer returns 2-3 % Rework Complaint Handling Hidden Working capital Unused capacity Premium Freight Engineering Changes Wrong shipment Long set-ups Long cycle time Planning Delay Excess inventory Late Delivery Lost Sales Excess overtime 20-40 % Excessive Material orders / planning Pricing / Billing errors TQM - 2013 Nov - This is a compilation of available information in Internet & Books Lost customer loyalty 23
  • 24. Evolution of Quality ….. Basic features and keys to the development – in Japan • The development effort needs an integrated team – Depends heavily on team dynamics, procedures – Even intangibles such as trust & loyalty. • Technology advances – software based • But development in cultural attitudes plays a major role in the success. • Look at the data from American Quality Foundation. • Commitment of over 500 companies – automotive, banking, computer & health care – to five strategic quality elements. Metric US Japan Germany Canada Customer Satisfaction (Primary Consideration) 40 40 20 45 Competitive Benchmarking (Primary importance) 30 30 5 25 Time-based Competition (always Used) 20 55 10 20 Process simplification (always used) 10 50 10 20 Performance Evaluation (at least monthly) 55 70 55 50 TQM - 2013 Nov - This is a compilation of available information in Internet & Books 24
  • 25. Development & improvement of products & services, process & systems. High Level of technology newness New to the world Low New to the company & Local market Line Extension Revision or improvement Cost reduction & Repositioning Low Level of newness to the market TQM - 2013 Nov - This is a compilation of available information in Internet & Books High 25
  • 26. Lecture objective To know, • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 26
  • 27. What is TQM? • Total Quality Management – Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. – TQM is based on the premise that o Everyone is responsible for the quality of products and processes. o Everyone involved with the creation or consumption of the products or services offered by an organisation. o It requires the involvement of – management, – workforce, – suppliers, and – customers, o to meet or exceed customer expectations. • TQM is about meeting quality expectations as defined by the customer; this is called customer-defined quality. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 27
  • 28. Lecture objective To know • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 28
  • 29. Basic Concepts of TQM In order to achieve excellence, six basic concepts of TQM are as follows: 1. Top management should be aware of correct situation and needs to be committed towards TQM implementation. A committed and involved management to provide long-term top-to-bottom organisational support. 2. Focus customer requirements and product/service expectations. Unwavering focus on the customer, both internally and externally. 3. Effective involvement and utilisation of the entire work force. Involve employees in understanding the quality aspects and make them accountable. 4. Continuous improvement in the process is required. Continuous improvement of the business and production process 5. Treat suppliers as your partners 6. Establish performance measures for the process. Develop tracking mechanism for processes and improve it as per business requirements These concepts outline an excellent way to operate a business organisation: TQM - 2013 Nov - This is a compilation of available information in Internet & Books 29
  • 30. Basic Concepts of TQM….. 1. Management must participate in the quality program. – A Quality Council must be organised to develop a clear vision, set long-term goals, and direct the program. – Quality goals are included in the business plan. – An annual quality improvement program is organised and includes input from the entire work force. – Managers participate in the quality improvement teams and also act as advisers to other teams. – TQM is a continual activity that must be inculcated in the organisational culture – it is not just a one-shot program. – TQM must be known and communicated to all workers. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 30
  • 31. Basic Concepts of TQM….. 2. The key to an effective TQM program must be directed to customer satisfaction. – The best way to start is by satisfying customers. – We must always listen to the “voice of the customer” and emphasize design quality and defect prevention. – Does it right the first time and every time, for customer satisfaction is the most important commitment. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 31
  • 32. Basic Concepts of TQM….. 3. TQM is an organisation-wide challenge that is everyone’s responsibility. – All workers must be trained in TQM, Statistical Process Control (SPC), and other appropriate quality improvement skills so that they can effectively participate in project teams. – Including internal customers and, for that matter, internal suppliers in project teams are excellent approach. – Those affected by the plan must be involved in its development and implementation. – They should understand the process better than anyone else. – Changing behaviour is the goal. – People must come to work not only to do their jobs but also to think about how to improve their jobs. – Personnel must be empowered to perform processes in an optimum manner at the lowest possible level. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 32
  • 33. Basic Concepts of TQM….. 4. There must be continuous improvement of all business and production process. – Quality improvement projects, such as on-time delivery, order entry efficiency, billing error rate, customer satisfaction, scrap reduction, and supplier management, are good things to start. – Technical techniques such as SPC, concurrent engineering, benchmarking, quality function development, ISO 9000, and Taguchi’s quality design are excellent for problem solving. 5. A partnering relationship with the supplier rather than an adversarial one must be developed. – Both parties have as much to gain or lose based on the success or failure of the product or services. – The focus should be on quality and life cycle cost rather than price. – Suppliers should be few in number so that true partnering can happen. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 33
  • 34. Basic Concepts of TQM….. 6. Performance measures such as uptime, per cent nonconforming, absenteeism and customer satisfaction should be determined for each functional area. – These measures should be posted to everyone to see. – Quantitative data are necessary to measure the continuous quality improvement output. • The purpose of TQM is to provide a quality product or service to customer, which will in turn, increase productivity and lower cost. • With a higher quality product and service and lower price, competitive position in the market place will be enhanced. • These series of events will allow the business organisation to achieve the objectives of profit and growth with the great ease. • Furthermore, the workers will have the security, which will create a satisfying environment to work. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 34
  • 35. Basic Concepts of TQM….. Quality Guru Main Contribution Walter A Shewhart Contributed to understanding of process variability Developed concept of statistical control charts W Edwards Deming Stressed management’s responsibility for quality Developed “14 points’ to guide companies in quality improvements Joseph M Juran Defined quality as “fitness to use” Developed concept of cost of quality Armand V Feigenbaum Introduced concept of Total Quality Control Philip B Crosby Coined phrase “ quality is free” Introduced concept of zero defects Kaoru Ishikawa Identified concept of internal customers Developed cause and effect diagrams Genichi Taguchi Focused on product design quality Developed Taguchi loss function TQM - 2013 Nov - This is a compilation of available information in Internet & Books 35
  • 36. Features of TQM Philosophy TQM Model Total Quality Requirements Customer Orientation Participation Product / Services Training Process / Procedure Customer Orientation Motivation HR Excellence Information Supplier Product / Process Leadership Culture Planning Communication Accountability TQM - 2013 Nov - This is a compilation of available information in Internet & Books Management Leadership 36
  • 37. Features of TQM Philosophy Customer Focus – Objective is to identify and meet customer needs Continuous Improvement – A philosophy of NEVER ENDING improvements Employee empowerment – Employees are expected to seek out, identify and correct quality problems Use of quality tools – Ongoing employee training in the use of quality tools Product design – Products need to be designed to meet customer needs Process management – Quality should be built into process; source of quality problem should be identified and corrected Managing supplier quality – Quality concepts must extend to their suppliers too. Continuous Improvements: – PDCA – Plan Do Check Act cycle – Benchmarking TQM - 2013 Nov - This is a compilation of available information in Internet & Books 37
  • 38. Quality Tools Cause & Effect Diagram – A chart that identifies potential causes of particular quality problem Flow Chart - A schematic representation of sequence of steps involved in an operation or process or procedure Check List - A list of common defects and the number of observed occurrences of those defects. Control Charts – Charts used to evaluate whether a process is operating within the set expectations Scatter Diagram – Graphs that show how two variables are related to each other. Pareto Analysis – A technique used to identify quality problems based on their degree of importance Histogram - A chart that shows the frequency distribution of observed values of a variable. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 38
  • 39. Lecture objective • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 39
  • 40. Leadership Theory • Leadership is "organising a group of people to achieve a common goal". • The leader may or may not have any formal authority. • Studies of leadership have produced theories involving – traits, – situational interaction, – function, – behaviour, – power, – vision and values, – charisma, and – intelligence, among others. • Somebody whom people follow: • Somebody who guides or directs others. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 40
  • 41. Leadership ….. Early western history ….. • In Heroes and Hero Worship (1841), Carlyle identified the talents, skills, and physical characteristics of men who rose to power. • In Galton's Hereditary Genius (1869), he examined leadership qualities in the families of powerful men. • After showing that the numbers of eminent relatives dropped off when moving from first degree to second degree relatives, Galton concluded that leadership was inherited. • In other words, leaders were born, not developed. • Both of these notable works lent great initial support for the notion that leadership is rooted in characteristics of the leader. Rise of alternative theories • In the late 1940s and early 1950s, however, a series of qualitative reviews of these studies prompted researchers to take a drastically different view of the driving forces behind leadership. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 41
  • 42. Leadership ….. • The search for the characteristics or traits of leaders has been on going for centuries. • History's greatest philosophical writings from Plato's Republic to Plutarch's Lives have explored the question "What qualities distinguish an individual as a leader?" • Underlying this search was the early recognition of the importance of leadership and the assumption that leadership is rooted in the characteristics that certain individuals possess. • This idea that leadership is based on individual attributes is known as the "trait theory of leadership". • The trait theory was explored at length in a number of works in the 19th century. • Most notable are the writings of Thomas Carlyle and • Francis Galton, whose works have prompted decades of research. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 42
  • 43. Leadership ….. • In reviewing the literature still in existence, Stogdill and Mann found that while some traits were common across a number of studies, – the overall evidence suggested that persons who are leaders in one situation may not necessarily be leaders in other situations. – Subsequently, leadership was no longer characterised as an enduring individual trait, as situational approaches posited that individuals can be effective in certain situations, but not others. – This approach dominated much of the leadership theory and research for the next few decades. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 43
  • 44. Leadership ….. • • • • • Leadership for TQM Attitude and Involvement of Top Management Communication Culture Management Systems Management is doing things right; Leadership is doing the right things. – Peter Drucker – A leader is one who introduces by – gradual and persistent effort the purposes, not the one who controls by brute force. – A leader strengthens and inspires the followers to accomplish shared goals. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 44
  • 45. Leadership ….. – The leadership should set direction and create a customer focus. – Create clear and visible values and high expectations. – These direction values and expectations should balance the needs of all your stakeholders. – Ensure the creation of strategies, systems and methods for achieving excellence, stimulating innovations and building knowledge and capabilities. The values and strategies should help guiding all the activities and decisions of your organisation. – Inspire and motivate your entire work force. Encourage all employees to contribute, to develop and to learn to be innovative and to be creative. – Be a role model through your ethical behaviour. – Involve personally in planning, communication, coaching to develop future leaders. • Getting quality results is not a short term, instant food way to improve competitiveness. • Implementing total quality management requires hands-on, continuous leadership. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 45
  • 46. Leadership ….. Characteristics of excellent leadership 1. Visible, committed and knowledgeable 2. A missionary zeal – Be enthusiastic to persuade others to participate 3. Aggressive targets 4. Strong drivers 5. Communication of values 6. Organisation 7. Customer contact. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 46
  • 47. Leadership ….. 1. Visible, committed and knowledgeable – They promote the emphasis on quality, know the details and how well the company is doing. – Personal involvement in education, training and recognition. – Accessible to and routine contact with the employees, customers and suppliers. 2. A missionary zeal – The leaders are trying to effect as much change as possible through their suppliers, through the government suppliers, and through any other way that promotes quality. – Active in promotion of quality outside the company. 3. Aggressive targets – Going beyond incremental improvements – Looking at the possibility of making large gains, – Getting the whole workforce thinking about different processes -not just improving processes. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 47
  • 48. Leadership ….. 4. Strong drivers – Cycle time, zero defects, six sigma or other targets to drive improvements. – Clearly defined customer satisfaction and quality improvement objectives. – Communication of values – Effecting cultural change related to quality. – Written policy, mission, guidelines and other documented statements of quality values, or other bases for clear and consistent communication. 5. Communication of values – Effecting cultural change related to quality. – Written policy, mission, guidelines – Other documented statements of quality values, or – Other bases for clear quality values, and consistent communication. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 48
  • 49. Leadership ….. 6. Organization – Flat structures that allow more authority at lower – Empowering employees. – Managers as coaches rather than bosses. – Cross-functional management processes – Functional management processes – Focus on internal as well as external customers. – Inter--departmental improvement teams. 7. Customer Contact – CEO and all senior managers are accessible to customers TQM - 2013 Nov - This is a compilation of available information in Internet & Books 49
  • 50. Leadership ….. Design Manufacturing Quality Service Support Leader Marketing Product Cost Test Procurement TQM - 2013 Nov - This is a compilation of available information in Internet & Books 50
  • 51. Leadership ….. Stages of collocation or coordination or collaboration Stage 1 Department Level Stage 2 Team Level Stage 3 Virtual Level Engineering / Design Purchase Manufacturing TQM - 2013 Nov - This is a compilation of available information in Internet & Books 51
  • 52. Leadership ….. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 52
  • 53. Characteristics of High-Performing Team Task related qualities People related qualities 1.Concern for quality 1.High involvement, work interest and 2.Oriented towards success energy 3.Committed to the projects / Tasks 2.Capacity to solve conflicts 4.Results oriented attitude 3.Good communication 5.Innovative & creative 4.Good team spirit 6.Willingness to change project plan if 5.Mutual trust required 6.Self development of team members 7.Ability to predict trends 7.Effective organisational interfacing 8.On-time performance 8.High need for achievement 9.On-budget performance TQM - 2013 Nov - This is a compilation of available information in Internet & Books 53
  • 54. Leadership ….. Executive Level 5 Effective Leader Level 4 Competent Manager Level 3 Contributing Team Member Level 2 Highly Capable Individual Level 1 TQM - 2013 Nov - This is a compilation of available information in Internet & Books 54
  • 55. Lecture objective • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 55
  • 56. Strategic Quality Planning Definition: 1. The science and art of using all the forces of a nation to execute approved plans as effectively as possible during peace or war. The science and art of military command as applied to the overall planning and conduct of large-scale combat operations. 2. A plan of action resulting from strategy or intended to accomplish a specific goal. 3. The art or skill of using stratagems in endeavours such as politics and business. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 56
  • 57. Strategic Quality Planning ….. The relation of Strategic Planning and Total Quality Management • When an organisations chooses to make quality a major competitive edge (differentiation), it becomes the central issue in strategic planning. • This is especially reflected in vision, mission and policy guidelines of an organisation. - Vision statement Mission Statement Quality Policy • An essential idea behind strategic quality planning is that the product is customer value rather than a physical product or service. • This feat cannot be achieved unless an organisation creates a culture of quality. • No strategy and plan can be worthwhile unless it is carefully implemented. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 57
  • 58. Strategic Quality Planning Vision Statement: • The vision statement – is a short declaration what an organisation aspires to be tomorrow. – describes how the future will look if the organisation achieves its mission. • Successful visions are timeless, inspirational, and become deeply shared within the organisation. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 58
  • 59. Strategic Quality Planning Mission Statement: A mission statement • concerns what an organization is all about. • answers the questions such as: – who we are, – who are our customers, – what do we do and – how do we do it. • This statement is usually one paragraph or less in length, easy to understand, and describes the function of the organization. • It provides clear statement of purpose for employees, customers, and suppliers. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 59
  • 60. Strategic Quality Planning Quality Policy Statement: The quality policy is • a guide for everyone in the organization as to how they should provide products and services to the customers. • written by the CEO with feedback from the workforce • A quality policy is a requirement of ISO 9000. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 60
  • 61. Strategic Quality Planning How an organization can do strategic quality planning? • The process starts with the principles that quality and customer satisfaction are the centre of an organization’s future. • It brings together all the key stakeholders. • The strategic planning can be performed by any organization. • It can be highly effective, allowing the organizations to do the right thing at the right time, every time. • There are seven steps to strategic Quality Planning: 1. 2. 3. 4. 5. 6. 7. Discover customer needs Customer positioning Predict the future Gap analysis Closing the gap Alignment Implementation TQM - 2013 Nov - This is a compilation of available information in Internet & Books 61
  • 62. Strategic Quality Planning 1. Customer Needs: – The first step is to discover the future needs of the customers. – Who will they be? – Will your customer base change? – What will they want? – How will they want? – How will the organisation meet and exceed expectations? 2. Customer Positioning: – Determine where organisation wants to be in relation to the customers. – Do they want to retain, reduce, or expand the customer base. – Product or services with poor quality performance should be targeted for elimination. – The organisation needs to concentrate its efforts on areas of excellence. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 62
  • 63. Strategic Quality Planning 3. Predict the future: – Predict the future conditions that will affect their product or service. – Demographics, economics forecasts, and technical assessments or projections are tools that help predict the future. 4. Gap Analysis : – Identify the gaps between the current state and the future state of the organization. – An analysis of the core values and concepts is an excellent technique for pinpointing gaps. 5. Closing the Gap: – The plan can now be developed to close the gap by establishing goals and responsibilities. – All stakeholders should be included in the development of the plan. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 63
  • 64. Strategic Quality Planning 6. Alignment: • As the plan is developed, it must be aligned with – the mission, – vision, and – core values and concepts. • Without this alignment, the plan will have little chance of success. 7. Implementation: • This last step is frequently the most difficult. Resources must be allocated to – collecting data, – designing changes, and – overcoming resistance to change. • Also part of this step is the monitoring activity to ensure that progress is being made. • The planning group should meet at a required frequency to assess progress and take any corrective action. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 64
  • 65. Lecture objective • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 65
  • 66. Supplier Partnership Definition: • In quality control, extended relationship between buyers and sellers based on confidence, credibility, and mutual benefit. • The buyer, on its part, provides long-term contracts and assurance of only a small number of competing suppliers. • In reciprocation, the seller implements customer's suggestions and commits to continuous improvement in quality of product and delivery. Vendor Supplier Partner Only see their area Work together with others across Accept innovation from them Help, own the issues Clinical Focus Operation excellence Strategy focus & Alignment Information Knowledge Some innovation, if we ask Transaction focus Data Information Quarterly Meetings Knowledge Annual Supplier Summit TQM - 2013 Nov - This is a compilation of available information in Internet & Books Mutually develop innovation Action Multi-year Alliances 66
  • 67. Supplier Partnership An efficient Supply Chain Management, built on strong partnerships will create high level of people and customer satisfaction. Ensuring the partnership processes for an organisation is use of QMS Audits, reviews and action plans. Partnership are planned and managed, must be in line with overall policies and strategies. It should support the operation of the processes. Speed breakers • Inter departments stand alone • Performance guarantees, contacts, processes not in place. • Poorly defined expectations or strategies • Skills, time and resources allocation • Number of vendors • Ownership, accountability, roles not well defined • Data quality and aggregation TQM - 2013 Nov - This is a compilation of available information in Internet & Books 67
  • 68. Lecture objective • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 68
  • 69. Supplier selection, supplier rating and Partnering • • • • Supplier Evaluation & Approval Process New Part Development Process Quality Sustenance Supplier Communication, Support & Rewards TQM - 2013 Nov - This is a compilation of available information in Internet & Books 69
  • 70. Supplier selection, supplier rating and Partnering • New supplier evaluation & approval  Evaluation of Supplier Quality Systems • New part family approval with existing supplier  Pre-PPAP Audit • Supplier Quality System Evaluation will include – Quality system equivalent to  ISO 9001  TS 16949 – Environmental Management System – Process control – Management & general aspects • Approval criteria - example – Minimum score of 70% is required – Supplier should have minimum ISO 9001 certification TQM - 2013 Nov - This is a compilation of available information in Internet & Books 70
  • 71. Supplier selection, supplier rating and Partnering New Supplier Evaluation Process Identify the supplier Collect Supplier datasheet Evaluate the Datasheet Study the Feasibility Audit their Quality System Decide the supplier Discuss Commercial Not OK OK Analyse the Audit gaps and identify actions Close the action points Purchase Responsibility TQM - 2013 Nov - This is a compilation of available information in Internet & Books Quality Assurance Responsibility 71
  • 72. Supplier selection, supplier rating and Partnering General weak areas at supplier end – New supplier development Weak area Action proposed Traceability • Route card introduction • Bar coding • Computerized batch production • 2 Bin system or Pull system in stores • ‘Use me first’ tagging First In First Out (FIFO) Online SPC / Cpk trend monitoring Process FMEA periodical review • Introduction of X – Bar & R – Chart • Monthly monitoring of Cpk using Trend chart • Fixing of frequency for review of control plan and PFMEA based on rejections and changes Monitoring of Internal rejections • Introduction of trend graphs of Internal rejection on shop floor • Take actions on Top contributors TQM - 2013 Nov - This is a compilation of available information in Internet & Books 72
  • 73. Supplier selection, supplier rating and Partnering New part development through existing supplier • Review the manufacturing feasibility through Cross Functional Team • Approve the Initial Sample for :  Dimension  Material  Protective finish  Durability • Production Part Approval Process -PPAP / Parts Submission Warrant - PSW sign off with on site Production Trial Run covering both process capability for Significant Character /Critical Character. • Quality plan sign off • Safe launch for first 3 months from Start Of Production TQM - 2013 Nov - This is a compilation of available information in Internet & Books 73
  • 74. Supplier selection, supplier rating and Partnering New part development through existing supplier Approval through ESQS / Pre PPAP Manufacturing Feasibility/ Timing plan review Sample submission Sample Inspection Rejected Product Correction Approved Production trial run @ Supplier end Pending Quality plan Documentation and agreement PSW Approval Conditional Approval Identifying action points `Review action points Completed Straight approval Upload in database TQM - 2013 Nov - This is a compilation of available information in Internet & Books 74
  • 75. Supplier selection, supplier rating and Partnering General weak areas at supplier end – New Product Development Weak area Action proposed First time right • Manufacturing Feasibility study • TGW data • Insisting suppliers on facilitating required equipment • Schedule tool maintenance • Identification of tool cleaning frequency • Regular visit and periodical audit during safe launch Non -availability of Measurement Equipment Tool life monitoring • Non adherence to agreed process during bulk production • Safe launch inspection plan TQM - 2013 Nov - This is a compilation of available information in Internet & Books 75
  • 76. Supplier selection, supplier rating and Partnering Quality Sustenance • Receiving Quality Inspection standards • Supplier Corrective Action Request (SCAR) for quality issues • Process and Product audit • Supplier Up-gradation • Supplier Training • Supplier change request TQM - 2013 Nov - This is a compilation of available information in Internet & Books 76
  • 77. Supplier selection, supplier rating and Partnering Partnering • Guidelines for raw material sources • Designation of special process suppliers and surface protection suppliers • Sub supplier Identification/development • Expertise support for pressing, machining, heat treatment, surface coating and gauge design • Development of Special process sources • Expertise support by specialists for commodities like – Casting – Forging – Plastics & Rubber • Providing “Parts specific training” to Supplier TQM - 2013 Nov - This is a compilation of available information in Internet & Books 77
  • 78. Lecture objective • Need for Quality • Evolution of Quality • What is TQM • Basic concepts of TQM • Leadership • Strategic Quality Planning • Supplier partnership • Supplier selection, supplier rating and Partnering • TQM practices in Indian Industries TQM - 2013 Nov - This is a compilation of available information in Internet & Books 78
  • 79. TQM practices in Indian Industries Changes in social and economic environment 1947-82 India becomes independent, Regulated economy, Slow rate of economic growth, Very low competition 1983-94 Initial phase of deregulation of economy, Slow growth rate, Imported kits, Emerging domestic competition 1995-2000 Transition to open economy, Adequate growth rate of economy, Growing domestic competition, Select international competition 2001-07 Deregulation of economy, High growth of economy, Open competition 2008- Self-regulated economy, Total integration with global market (Development of technology for new products), Steady growth economy TQM - 2013 Nov - This is a compilation of available information in Internet & Books 79
  • 80. TQM practices in Indian Industries Development in quality 1947-82 QC in inspection stage (Identification of defectives) 1983-94 19952000 Quality awareness growing, Attempted use of QC circles QC in manufacturing stage(prevention of detectives) 2001-07 QC in design stage (making new products to satisfy new customer requirement) 2008- QC in research stage Quality control (QC) tools 1947-82 1983-94 19952000 2001-07 2008- Inspection 7 tools of QC Various statistical methods, Design of experiments, Failure mode effect analysis and fault tree analysis Multi variant analysis, Weibull probability paper, 7 management tools Subsystem in managing research programme using a combination of Q table, process design, and process control TQM - 2013 Nov - This is a compilation of available information in Internet & Books 80
  • 81. TQM practices in Indian Industries Quality assurance (QA)systems 1947-82 Regulation of inspection, Regulation of product audit 1983-94 QA systems, Compliance with ISO9000 quality system requirements 1995-2000 2001-07 2008- Regulation of process control, QC process chart, control chart, and check sheet, Quality tables deploying required qualities Quality tables transforming required qualities to design qualities Regulation of design review Change of concepts in policy management 1947-82 1983-94 To attach importance to measures or means in addition to target To attach importance to coordination to management of all the divisions 1995-2000 in addition to that of each division 2001-07 To attach importance to midterm and long-term policies in addition to those specified annually 2008- Transition to strategic management of business by the participant of all members and all divisions TQM - 2013 Nov - This is a compilation of available information in Internet & Books 81
  • 82. TQM practices in Indian Industries ….. • • Finally, it is true that the effort on quality improvement will intensify – only when It becomes an issue for survival and sustainability and – that is dependent upon the intensity of fair competition in the market place. In this context, – it is high time that the Indian companies follow business excellence model of survival and growth to face the threat of competition effectively. TQM - 2013 Nov - This is a compilation of available information in Internet & Books 82
  • 83. TQM practices in Indian Industries ….. Reasons to Begin For Management: – It provides problem- solving tool – Drives away negative attitudes – They become more aware of individual’s work environment. – Employees motivated due to participation – Increases efficiency & productivity – – – – – – – Reduces turnover rate, sluggishness, cost, errors, wastage, rework…… Improved communication Develops management skills Overall company awareness and unity Builds loyalty Reveals training requirements Reduced PPM TQM - 2013 Nov - This is a compilation of available information in Internet & Books 83
  • 84. TQM practices in Indian Industries ….. Reasons to Begin For Employees – Opportunity for personal development & growth – Increases innovation – They use their knowledge and skill for decision making – Encourages decision making at the most appropriate level and time – Increases motivation and new ideas acceptance – Increases job satisfaction – Talents are recognised – Develops mutual respect – Promotes team works TQM - 2013 Nov - This is a compilation of available information in Internet & Books 84
  • 85. TQM practices in Indian Industries ….. Steps in implementing TQM Obtain CEO commitment Educate upper-level management Create Steering Committee Release Vision, Mission & Quality Statements Prepare Flow Diagram for company process Focus on customer survey Consider employee as your internal customer TQM - 2013 Nov - This is a compilation of available information in Internet & Books Know the benefits of TQM Use the tools of TQM Implement Process Improvement Establish Quality Improvement Provide Quality Training 85
  • 86. TQM practices in Indian Industries ….. Some misconceptions in TQM Some common misconceptions regarding the implementation continuous improvements process. – Every site is different – Errors and delays are different – It is a typical jobsite problem – It costs you more. It is time to get started on continuous improvements Your competitor may have started already TQM - 2013 Nov - This is a compilation of available information in Internet & Books 86
  • 87. TQM practices in Indian Industries ….. To be a successful TQM company, ask your customers the following questions How well we deliver what we promise ? How often we do things right the first time ? How often we do things right on time ? How quickly we respond to your request ? How accessible are we when you need ? How helpful and polite we are ? How well we speak your language ? How do we listen to you ? How hard we work to satisfy your needs ? What is your confidence on our product / service ? TQM - 2013 Nov - This is a compilation of available information in Internet & Books 87
  • 88. PPM Status - An example – How TQM benefitted the organisation PPM 250 200 150 100 50 0 200102 Line PPM 02-03 03-04 04-05 05-06 06-07 07-08 08-09 211 112 71 89 48 47 49 47 TQM - 2013 Nov - This is a compilation of available information in Internet & Books 09-10 30 88
  • 89. We have seen the benefits of TQM We discussed TQM in our organisations, Institutions and so on. How many of us thought that there is a TQM in our living too? Do we have a quality living? TQM - 2013 Nov - This is a compilation of available information in Internet & Books 89
  • 90. Let us incorporate Quality in our life, in our attitude apart from implementing TQM in product, service and so on.. THANK YOU & WISH YOU ALL THE BEST HRS TQM - 2013 Nov - This is a compilation of available information in Internet & Books 90