Total Quality Management (TQM) was originated in 1950s and the historical evolution of TQM as can categorized in four stages. i.e. Quality Inspection, Quality Control, Quality Assurance and Total Quality Management. Total Quality means the attitude, organization and culture of the company which strives to satisfy the customer needs with their products and services. It is method by which management and its employees get involved in the continuous improvement of the production of goods or services. For this reason, quality and managements tools are combined together and aimed at growing business and reducing the losses caused due to wasteful or inefficient practices.
2. INTRODUCTION
ī¨ Originated in 1950âs
ī¨ Deming/ J.M. Juran
īŧ Total - made up of the whole
īŧ Quality - degree of excellence a product provides
īŧ Management- act of planning, controlling,
directing
ī¨ TQM is the art of managing the whole to achieve
excellence
3. ī¨ A process for managing quality; it must be
continuous way of life; a philosophy of perpetual
improvement in every thing we do.
ī¨ A management philosophy that seeks to integrate all
organizational functions such as marketing, finance,
design, engineering, production and customer service
etc. to focus on meeting customer needs and
organizational objectives.
4. TQM- DEFINITION
ī¨ It is a set of systematic activities carried out by the entire
organization to effectively and efficiently achieve company
objective so as to provide products and services with a level of
quality that satisfies customers, at the appropriate time and price.
ī¨ It is an integrated organizational approach in delighting customers
(both internal and external) by meeting their expectations on a
continuous basis through every one involved with the organization
working on continuous improvement in all products, services, and
processes along with proper problem solving methodology- Indian
Statistical Institute (ISI)
5. BASIC CONCEPTS
ī¨ A committed and involved management
ī¨ An unwavering focus on the customer
ī¨ Effective involvement and achievement of the
entire work force
ī¨ Continuous improvement of the business and
production processes
ī¨ Treating Suppliers as Partners
ī¨ Establish Performance measures
8. CUSTOMER FOCUSED
ī¨ Organizations depend on their customers
ī¨ Understand current and future needs of the
customer
ī¨ Meet customer requirements
ī¨ Strive to exceed customer expectations
ī¨ End result of TQM is complete satisfaction of
customers
9. STEPS
ī¨ Understand customer needs and expectations for
products, delivery, price, dependability, etc.
ī¨ Ensure a balanced approach among customers and
other stake holders (owners, people, suppliers, local
communities and society at large) needs and
expectations
ī¨ Communicate these needs and expectations throughout
the organization
ī¨ Measure customer satisfaction & act on results
ī¨ Manage customer relationships.
10.
11. LEADERSHIP
ī¨ Leaders establish unity of purpose and direction of
the organization
ī¨ Should create and maintain the internal
environment in which people can become fully
involved in achieving the organization's objectives
12. STEPS
ī¨ Be proactive and lead by example
ī¨ Understand and respond to changes in the external
environment
ī¨ Consider the needs of all stake holders including
customers, owners, people, suppliers, local
communities and society at large
ī¨ Establish a clear vision of the organization's future.
ī¨ Establish shared values and ethical role models at all
levels of the organization
ī¨ Build trust and eliminate fear
13. ContdâĻ
ī¨ Provide people with the required resources and
freedom to act with responsibility and accountability
ī¨ Inspire, encourage and recognise people's contributions
ī¨ Promote open and honest communication
ī¨ Educate, train and coach people
ī¨ Set challenging goals and targets
ī¨ Implement a strategy to achieve these goals and targets
14.
15. INVOLVEMENT OF PEOPLE
ī¨ People at all levels are the essence of an
organization
ī¨ Full involvement of people enables their abilities to
be used for the organization's benefit
16. STEPS
ī¨ Accept ownership and responsibility to solve problems
ī¨ Actively seek opportunities to make improvements, and
enhance competencies, knowledge and experience
ī¨ Freely share knowledge & experience in teams
ī¨ Focus on the creation of value for customers
ī¨ Be innovative in furthering the organizationâs objectives
ī¨ Improve the way of representing the organization to
customers, local communities and society at large
ī¨ Help people derive satisfaction from their work
ī¨ Make people enthusiastic and proud to be part of the
organization
17.
18. PROCESS APPROACH
ī¨ A desired result is achieved more efficiently when
related resources and activities are managed as a
process
19. STEPS
ī¨ Define the process to achieve the desired result
ī¨ Identify and measure the inputs and outputs of the process
ī¨ Identify the interfaces of the process with the functions of
the organization
ī¨ Evaluate possible risks, consequences and impacts of
processes on customers, suppliers and other stake holders
of the process
ī¨ Establish clear responsibility, authority, and accountability
for managing the process
ī¨ Identify internal and external customers, suppliers and
other stake holders of the process
ī¨ When designing processes, consider process steps,
activities, flows, control measures, training needs,
equipment, methods, information, materials and other
resources to achieve the desired result
20.
21. SYSTEM APPROACH
ī¨ Identifying, understanding and managing a system
of interrelated processes for a given objective
improve the organization's effectiveness and
efficiency
22. STEPS
ī¨ Define the system by identifying or developing the
processes that affect a given objective
ī¨ Structure the system to achieve the objective in the
most efficient way
ī¨ Understand the interdependencies among the
processes of the system
ī¨ Continually improve the system through
measurement and evaluation
ī¨ Estimate the resource requirements and establish
resource constraints prior to action
25. STEPS
ī¨ Make continual improvement of products, processes and systems an
objective for every individual in the organization
ī¨ Apply the basic improvement concepts of incremental improvement
and breakthrough improvement
ī¨ Use periodic assessments against established criteria of excellence
to identify areas for potential improvement
ī¨ Continually improve the efficiency and effectiveness of all
processes
ī¨ Promote prevention based activities
ī¨ Provide every member of the organization with appropriate
education and training, on the methods and tools of continual
improvement such as the Plan-Do-Check-Act cycle, problem
solving, process re-engineering, and process innovation
ī¨ Establish measures and goals to guide and track improvements
ī¨ Recognize improvements
29. STEPS
ī¨ Take measurements and collect data and information
relevant to the objective
ī¨ Ensure that the data and information are sufficiently
accurate, reliable and accessible
ī¨ Analyse the data and information using valid methods
ī¨ Understand the value of appropriate statistical
techniques
ī¨ Make decisions and take action based on the results of
logical analysis balanced with experience and intuition.
30.
31. MUTUALLY BENEFICIAL
SUPPLIER MANAGEMENT
ī¨ An organization and its suppliers are
interdependent, and a mutually beneficial
relationship enhances the ability of both to create
value
32. STEPS
ī¨ Identify and select key suppliers
ī¨ Establish supplier relationships that balance short-term
gains with long-term considerations for the
organization and society at large
ī¨ Create clear and open communications
ī¨ Initiate joint development and improvement of
products and processes
ī¨ Jointly establish a clear understanding of customers'
needs
ī¨ Share information and future plans
ī¨ Recognize supplier improvements and achievements
33. BENEFITS OF TQM
ī¨ Improved quality
ī¨ Employee
participation
ī¨ Team work
ī¨ Working relationship
ī¨ Customer satisfaction
ī¨ Employee satisfaction.
ī¨ Increased productivity
ī¨ Communication
ī¨ Profitability
ī¨ Increased market
share
34. IMPLEMENTATION OF TQM
ī¨ Sr. Management needs to be educated in the TQM concept
ī¨ Timing of the implementation
ī¨ Quality council- to take up the implementation activities
ī¨ Middle managers should actively involved
ī¨ Union- a clear discussion regarding the purpose, approach and
end result of the effort
ī¨ Communicate with everyone in the organization about the
implementation
ī¨ Everyone needs to be trained in the appropriate tools and
techniques to learn and apply the same
ī¨ Conducting a survey- to assess the level of understanding and
commitment of the customers, suppliers and employees
35. OBSTACLES TO IMPLEMENT
ī¨ Lack of Management Commitment
ī¨ Inability to Change Organizational Culture
ī¨ Improper Planning
ī¨ Lack of Continuous Training and Education
ī¨ Incompatible organizational structure and isolated
individuals and department
ī¨ Ineffective measurement techniques and lack of access
to data and results
ī¨ Paying adequate attention to internal and external
customers
ī¨ Inadequate use of empowerment and teamwork
ī¨ Failure to continually improve
36.
37.
38. KAIZEN
ī¨ Kaizen means "improvement".
ī¨ Kaizen strategy calls for never-ending efforts for
improvement involving everyone in the organization â
managers and workers alike.
ī¨ It is a philosophy that defines managementâs role in
continuously encouraging and implementing small
improvements involving everyone.
ī¨ The kaizen improvement focuses on 1
ī¤ Value-added and non-value added activities
ī¤ Muda-seven classes of waste-Overproduction, delay,
transportation, processing, inventory, wasted motion, and
defective parts
ī¤ Principles of motion study and use of cell technology
ī¤ Principles of material handling and single piece flow
ī¤ Documentation of standard operating procedures
ī¤ Five âSâ for workplace
39.
40. 5S
ī¨ "5S" refers to five Japanese principles for workplace management
to increase efficiency.
ī¨ The 5 S approach is a basis for continuous improvement and can lead to
less waste. The 2 S (Sort and Set in order) are the keystone for the 5S.The
other 3 S (Shine, Standardize, and Sustain) are the keystone for the 2 S.
ī¤ Seiri (Sort): Do things in the proper order. Eliminate unnecessary items
from the workplace. Keep the strict minimum.
ī¤ Seiton (Set in order): Specify a location for everything. Put things
where they belong. Set in order and identify useful items in order to
locate them more easily. "A place for everything and everything in its
place." Designate Location by number, color coding, name. etc.
ī¤ Seiso (Shine): Specify recommended procedures for cleanup. Follow
the procedures. Thoroughly clean the work area or work place.
ī¤ Seiketsu (Standardize): Standardize best practices in the work area.
Keep equipment and the workplace in the best possible condition.
ī¤ Shitsuke (Sustain): Scrutinize practices; expose the wrong ones; learn
correct practices and make sure you use them.
41. SIX SIGMA
ī¨ Six Sigma is a quality management methodology
used to help businesses improve current processes,
products or services by discovering and eliminating
defects.
ī¨ Goal - to streamline quality control in
manufacturing or business processes so there is
little to no variance throughout