Total Quality Management:A Continuous ImprovementProcessAbhinav Koranga Shloka Raaj
What is Total Quality Management?Total quality management or TQM is anintegrative philosophy of management forcontinuously improving the quality of productsand processes.TQM is based on the premise that the quality ofproducts and processes is the responsibility ofeveryone involved with the creation orconsumption of the products or services
TQM beliefsOwner/customer satisfaction is the measure ofquality .Everyone is an owner/customer .Quality improvement must be continuous.Analyzing the processes used to createproducts and services is key to qualityimprovement.Sustained total quality management is notpossible without active leadership by managersat all levelsIf we do not continuously improve the qualityof products and services that we provide ourowners/customers, someone else will.
CustomerExternal CustomerInternal CustomerPleasing “internal” customers is fundamentalto satisfying the final “external” customer.
Customer Satisfaction The Most important Asset of any Organization is its Customers.The ten domains of customer satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer & Innovation.
The Customer is the Ultimate Judge of Value Quality.TQM is driven by long-term growth goalsand flexibility, focusing on“bringing the customer in”.
Continous ImprovementsProducts must go through continuous improvement Customers are not interested in excuses, they’re interested in results. Improve each and everyday,Do not focus on problem, focus on improvements. IF YOU’RE NOT PART OF THE SOLUTION, YOU’RE PART OF THE PROBLEM. Ishikawa Says:“The organization which does not make achange in every 06 months is a deadorganization”.
American society of quality (ASQ) Survey on the enduse perceptions of important factors that influencepurchases, are as following: PerformancePerformance FeaturesFeatures ServicesServices WarrantyWarranty PricePrice ReputationReputation
Customer FeedbackCustomer Feedback is essential for the organizationnowadays to beat the sharp competition and to retaintheir customers.It enables the organizations to know:About customer’s satisfaction levelPriorities of qualitiesPerformance and competitionOpportunities for improvement.
Customer Service Good Customer Service is all about bringingcustomers back. And about sending them awayhappy. HAPPY enough to pass Positive Feedback about thebusiness along to others, who may then try the product or service that thebusiness offers, for themselves and in their turnbecome loyal customers.
Deming’s CyclePlan what we are going to do. In this step we assess where we are,where we need to be, why this is important, and plan how to close thegap. Identify some potential solutions.Do try out or test the solutions (sometimes at a pilot level).Check to see if the countermeasures you tried out had the effect youhoped for, and make sure that there are no negative consequencesassociated with them.Act on what you have learned. If you have accomplished yourobjective, put controls into place so that the issue never comes backagain. If you have not accomplished your objective, go through thecycle again, starting with the Plan step.
Deming’s Fourteen points for TotalQuality Management.Create constancy of purpose for improvement ofproduct and service. (Plan to stay in business.)Adopt the new philosophy. (Stop tolerating poorquality.)Cease dependence on inspection to achievequality. (Improve the process.)End the practice of awarding business on thebasis of price tag alone. (Seek longer-termsupplier relationships; reduce the number ofsuppliers.)
Deming’s Fourteen points for TotalQuality Management.Eliminate slogans, exhortations, and targets forthe work forceImprove constantly and forever every process inthe system of planning, production, and service.Institute modern training (for everybody!).Institute modern methods of supervision.Drive out fear. (Encourage employees to speakup.)Break down barriers between departments.
Deming’s Fourteen points for TotalQuality ManagementEliminate work standards that prescribenumerical quotas.Remove barriers to pride in workmanship. (Poorsupervisors, poor materials, inadequateequipment, lack of training, etc.)Institute education and self-improvement.The transformation is everyones job".
The Deming Theory of Management is aManagement philosophy based on fourprinciples:(1) An appreciation for systems,(2) A knowledge of variation,(3) A theory of knowledge, and(4) Psychology.
Deming’s list of seven deadly diseases⇒ Lack of constancy of purpose to plan productand service that will have a market and keep thecompany in business and provide jobs.⇒ Emphasis on short-term profits: short termthinking, fed by fear of unfriendly takeover, andby plush from bankers and owners, fordividends.⇒ Personal review system, or evaluation ofperformance, merit rating, annual review, orannual appraisal, by whatever name, for peoplein management, the effects of which aredevastating.
Deming’s list of seven deadly diseases⇒ Mobility of management: job hopping.⇒ Use of visible figures only for management, withlittle or no consideration of figures that areunknown or unknowable.⇒ Excessive medical costs.⇒ Excessive costs of liability, fueled by lawyers thatwork on contingency fees.
For Management♦ Increases efficiency and productivityDispels negative attitudes♦ Management becomes more aware of problems that affect theindividual’s work environment♦ Employees gain a sense of participation♦ Improves communications within and among all departments♦ Develops overall company awareness and company unity♦ Builds loyalty to the company♦ Reveals training requirements in all departments.
For Employees♦ Provides opportunity for personal growth and development.♦ Increases innovation (through a greater variety of approachesand perspectives) for solving problems, removing fear of failure♦ Encourages decision-making at the most appropriate level♦ Increases motivation and acceptance of new ideas♦ Increases job satisfaction (as a result of the opportunity toparticipate in and have influence over work)♦ Recognizes employees for their knowledge, skills, andcontribution toward improvement♦ Develops mutual respect among employees, management andcustomers♦ Promotes teamwork
Educate Upper-Level ManagementThe second step is to teach the CEO and upper-levelmanagement how to conduct the following:♦ Undergo quality training♦ Serve as a model of expected behavior♦ Actively lead the way by participating in the activities ofthe quality steering committee and company training♦ Drive fear out of the organization♦ Provide suitable recognition for those who contribute tothe quality mission♦ Drive decision making and problem resolution to thelowest practicable level.
Create a Steering CommitteeUpon completion of upper management’scommitment and training, a steering committee mustbe created to guide the company through the processof implementing TQM.
Outline the Vision Statement, MissionStatement, & Guiding PrinciplesIn developing the fourth step, important principles toconsider including in the company’s vision statement,mission statement, and guiding principles are as follows:♦ Owner/customer Satisfaction♦ Improved Safety♦ Elimination of errors and defects♦ Doing things right, the first time♦ Reputation as the best in the field♦ Continuous Improvement♦ Employee Empowerment
Focus on the Owner/Customer (External) &SurveysOne of the best ways of accomplishing qualityimprovement is obtained by focusing on customers’concerns, and by learning what those concerns arethrough owner/customer surveys.
The six principal elements ofowner/customer satisfaction are:• Product/service delivery system• Product/service performance• The general image of the company• People’s level of performance• The perceived price-value relationship of yourproduct/service• Competitors’ strengths and weaknesses
Consider the Employee as an InternalOwner/Customer♦ List several of internal owners/customers within thecompany♦ Choose one of these owners/customers to focus on for theapplication of this technique♦ Determine the Outputs (products, services, information)that must be provided to this internal owner/customer♦ Determine the work Processes that company uses toproduce these Outputs♦ Learn how your customer’s expectations are met and howsatisfaction is measured
Provide a Quality Training ProgramThe training program must begin with uppermanagement, then training must be provided for theremaining management, and the in-house trainersand facilitators.The successful TQM company provides training toemployees in the order illustrated in the figure below.
Establish quality improvement teamsIn establishing quality improvement teams, a smaller company mightassign one quality improvement team. Larger firms might assignseveral, possibly with one quality lead team as a guide for the otherteams. Areas where quality improvement teams could begin investigating forpossible improvement are:♦ Increased Employee Value♦ Informed Employees♦ Technical Training♦ Quality Training♦ Employee Suggestions♦ Employee Participation♦ Higher Quality of Artistry♦ Personal Development
Implement Process Improvements♦ Management interest and support♦ Focus on customer satisfaction♦ Identification of areas needing improvement♦ Employee involvement♦ Cooperative attitude between elements of the company♦ Viewing every person who is on the receiving end of a process as acustomer♦ Fear driven from the company♦ Correctly composed teams♦ A system for selecting processes to be improved♦ Training for all employees in quality awareness♦ Training for teams in team procedures and disciplined problemsolving♦ Improved communications outside the company
Know the benefitsThe cost of qualityWhy do we implement the above informationinto our companies? To make more moneyand/or to stay in business.If you don’t implement TQM/CI , it will costyour firm money.It’s management’s choice to obtain theseimprovements. Failure to implement qualityprocesses results in a status quo situationwhere unnecessary costs remain andimprovements are not implemented.
High cost of poor qualityFacts to consider when counting the high cost of poor quality are:What is poor quality costing you?Waste is the opposite of quality.The tangible costs of poor quality include rework,accidents, missed schedules, unused labor, liability andinsurance, and scrapped materials.The intangible costs of poor quality include lostcustomers, “never-had” customers who went elsewherebecause of what they heard from unhappy customers, andpoor morale among employees and stakeholders.
Four types of quality costPrevention cost All costs associated with errorprevention in a product, process or service.Appraisal cost All costs associated with the assuranceto conformance of quality standards/requirements,inspection, testing, observation, etc.Internal failure cost All costs associated with theevaluation and correction of the design before it isreleased for construction, and all costs for rework on aproject before it is turned over to the owner.External failure cost Similar to internal failure costsexcept that they occur after the “output” has beenturned over to the next processor or user. Externalfailure costs often include significant intangible costsof lost reputation and good will.
SummaryTo be competitive in today’s market, it is essential forcompanies to provide more consistent quality andvalue to their owners/customers.Such goals demand that a continuous improvement(CI) process be established within the company inorder to provide Total Quality Management.