TQM.pptx

JSS College of Pharmacy, Mysuru
TOTAL QUALITY
MANAGEMENT

What is TQM
• Total quality management (TQM) is continuously
improving quality (CQI) by focusing on customer’s
requirement improving the processes which related
to these expectations and involving everyone in the
process of improvement.
• A people-focused management system that aims at
continual increase of customer satisfaction at
continually lower cost.
TQM 2

Some dimensions of product quality
• Performance
• Feature
• Reliability
• Conformance
• Durability
• Serviceability
• Appearance
• Safety
• Perception
TQM 3

Some dimension of quality: service
• Time and timeliness
• Completeness
• Courtesy
• Consistency
• Accessibility And Convenience
• Accuracy
• Responsiveness
TQM 4

Evolution of TQM
The historical evolution of Total Quality
Management has taken place in four stages :
• Quality inspection
• Quality control
• Quality assurance
• Total quality management
TQM 5

TQM – development
• The development of total quality management from
1950 onwards can be credited to the works of
various American experts.
• Among them, Dr. Edward Deming (1982), Dr. Joseph
Juran (1980) and Philip Crosby (1982) have
contributed significantly towards the continuous
development of the subject.
TQM 6

Quality Management Practices
Deming’s 14 Points
• Create constancy of purpose toward improvement
of product and service.
• Management must awaken to the challenge, learn
their responsibilities, and take on leadership for
change.
• Cease reliance on mass inspection to achieve quality.
Eliminate the need for inspection on a mass basis by
building quality into the product.
• End the practice of awarding business on the basis of
price tags. Instead minimize total cost. Move toward
a single supplier for any one item, building a long
term relationship of loyalty and trust.
TQM 7

Deming’s 14 Points Cont…
• Constantly improve the system of production and
service to improve quality and productivity and
thus constantly decrease costs.
• Establish on-the-job training.
• Institute leadership. The aim of supervisors
should be to help people, machines and gadgets
to do a better job.
• Drive out fear so that everyone may effectively
for the company.
TQM 8

• Break down barriers between departments.
People in research, design, sales, and
production must work as a team to foresee
problems that may be encountered with the
product or service.
• Eliminate slogans and targets for the work
force that ask for zero defects and new levels
of productivity. Such aims merely create
adversarial relationships.
TQM 9

• Leadership should substitute for work standards
(quotas) on the factory floor, management by
objectives, management by numbers and
numerical goals.
• Remove barriers that rob employees,
management, and engineering of their right to
pride of workmanship. Also, abolish annual
review or merit ratings and management by
objectives. The responsibility of supervisors must
be changed from merely looking at numbers to
looking at quality.
TQM 10

• Institute vigorous education and self-improvement
programs.
• Initiate employees to shoulder the responsibility of
accomplishing the transformation.
TQM 11

Philosophy, principles and concepts of
TQM
TQM is characterised by five principles :
1. Management’s commitment (leadership)
2. Focus on the customer and the employee
3. Focus on facts
4. Continuous improvements
5. Everybody’s participation
TQM 12

Management’s Commitment
(Leadership)
• To outline quality goals, quality policies and quality plans in
accordance with the four sides of the TQM pyramid.
• Make action plans (Long term & short term plans).
• Make annual quality audit to understand the problems in
realizing the quality plan.
• Bench-marking (a continuous process, the purpose of which is
to measure services, products and procedures against the
toughest competitors or leading procedures in a given
market).
• Know your own strengths and weaknesses.
• Know your competitors (opponents) and the best in the field.
• Learn from the best.
• Achieve leadership.
TQM 13

Focus on the Customer and the
Employee
• In addition to focusing on external customers and
their expectations and demands, it is necessary to
focus on so-called internal customer (employees)
and supplier relations.
• To create customer satisfaction, it is not enough just
to live up to the customer’s expectations.
TQM 14

Focus on Facts
The quality process starts with measurements
• External customer’s satisfaction (CSI= Customer
Satisfaction Index) like service level, price, quality,
time of delivery etc.
• Internal customer’s satisfaction (ESI= Employee
Satisfaction Index) by survey, feedback, performance
level, complaints etc.
• Other quality measurements of the firm’s internal
processes, often called ‘quality checkpoints’ and
‘quality control points’.
TQM 15

Continuous Improvements
• Higher quality both should and can be achieved
through:
– Internal quality improvements
– External quality improvements
• The main aim of internal quality improvements is
to prevent defects and problems in the internal
processes which will lead to lower costs.
• As their name suggests, external quality
improvements and aimed at the external
customer, the aim being to increase customer
satisfaction and thereby achieve a bigger market
share and with it, higher earnings.
TQM 16

Everybody’s Participation
• Involve all employees
• Educate and train all employees at all levels in:
– Identifying defects and problems.
– Finding the causes of defects and problems.
– Preventions, i.e. preventing the causes of defects
and problems. Educations and training to
employees facilitate them make suggestions and
implement quality improvements.
– Start again.
TQM 17

The TQM Formula
TQM 18

Elements of TQM
• Top management commitment and involvement
• Customer involvement
• Design products for quality
• Design production processes for quality
• Control production processes for quality
• Develop supplier partnerships
• Customer service, distribution and installation
• Building teams of empowered employees
• Benchmarking (having internal standards) and
continuous improvement
TQM 19

Continuous Improvements and their
Consequences
TQM 20

Worst Case Non TQM v/s TQM
TQM 21

PLAN
Plan for CQI and build team to do the following :
• Set standards.
• Monitor current quality level and identify
problem/s.
• Analyze root causes of problem/s.
• Generate solution/s.
DO : Implement chosen solution/s.
CHECK : Monitor success of solution.
ACT : Adjust solution/s to ensure success and
standardize effective solution/s.
TQM 22

THE COMPANY
IMPLEMENTATION OF TQM AT:
TQM 23

Rashtriya Ispat Nigam Limited
(Vizag Steel Plant)
• One of the leading public sector enterprises
under the Ministry of Steel, Government of
India
• Located in the state of Andhra Pradesh.
TQM 24

Why TQM at RINL?
• TQM was implemented in the company to
achieve the objectives of:
• Preparing the company's products and internal
processes to global standards
• Enhancing quality, productivity, and total
performance of the organization
• Enriching the quality of work life of its employees
TQM 25

How TQM was Implemented?
• The journey of TQM in the company began on
September 15, 1995 with the setting up of the
TQM Cell.
• To meet the quality planning requirements as
well as to facilitate continuous improvement, the
company has established, documented,
implemented and maintained the Quality
Management System (QMS) in accordance with
the requirements of the International Standards.
• In order to verify and determine the effective
implementation and maintenance of the QMS,
quality audits were carried out at regular
intervals by the Internal Quality Auditors.
TQM 26

The company also implemented a number of
TQM tools such as :
• Formation of Quality Improvement
Projects(QIPs),
• Signing of MOUs
• ISO certification
• Benchmarking
• Employee involvement schemes
• House keeping
• The company embarked upon both external
and internal benchmarking for improving its
production, commercial,
TQM 27

• It benchmarked with British Steel Co., South
Korea Steel Plant (POSCO)1 SAIL, and Tata
Steel for reduction in the rejection rate,
affrorestation, and improving manpower
productivity respectively.
• Annual improvement action plans were
implemented involving techniques like Kaizen
cycle time reduction for further improvement
in delivery and technological process
upgradation, leading to improvement in
quality of products and enhanced customer
focus.
TQM 28

Kaizen is defined as a cycle of continuous
improvements focusing on analysing the
performance, brain storming improvement
opportunities, implementing improvement
and documentation of new standard
operating procedure and then repeating the
cycle.
TQM 29

Tangible benefits of implementing
TQM
• Increase in sales per year from Rs. 3263.66 cr to
Rs. 7867.6 cr
• Reduced manufacturing expenses from.
Rs. 3,94,706.6 cr to Rs. 3,46,158.86 cr
• Reduced net loss incurred by the company from
Rs. 6,97,525.90 cr to Rs. 4,00, 94.58 cr
• Reduced the defective products from 5.76% to
1.2%
TQM 30

• Accident rates reduced from 113 to 107 (both
fatal and non-fatal)
• Customer complaint rates from 0.27 to 0.13
(of total sales)
• Increased productivity rate (tonnes per man
year) from 176 to 194 from the pre-TQM to
post-TQM period.
TQM 31

Thank
you
TQM 32

TQM.pptx

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