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TQM in the Service Industry Prinson D'Lima ---By
What is Quality? Quality is “fitness for use” (Joseph Juran) Quality is “conformance to requirements” (Philip B. Crosby) Quality of a product or services is its ability to satisfy the needs and expectations of the customer
What is TQM? Constant drive for continuous improvement and learning. Concern for employee involvement and development Management by Fact Result Focus Passion to deliver customer value / excellence Organisation response ability Actions not just words (implementation) Process Management Partnership perspective (internal / external)
[object Object],[object Object],[object Object]
Evolution of TQM The concept of Total Quality Management (TQM) was developed by an American, W. Edwards Deming, after World War II for improving the production quality of goods and services. Mr. Deming is regarded as “The quality Guru who never gave up.” But it was the Japanese who adopted TQM  more seriously in 1950 to resurrect their postwar business and industry, used it to dominate world markets by 1980.
Contd. The 1980’s saw an explosion in the use of statistical methods and quality methodology in both manufacturing and non-manufacturing organisations. Mr. Subodh Bhargava, Chief Executive of Eicher, recently revealed an interesting fact that TQM is not new to India and its roots in Indian ancient scriptures like the Upanishads and the Srimad Bhagavadgita.
Importance of TQM for services sector   ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Learning  LEARNING AND TQM Process Improvement Quality Improvement Customer Satisfaction Shareholder Satisfaction Employee Satisfaction
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Quality Circle ,[object Object],[object Object]
Some organisations in India give different Individual to quality Circles .. For instance Air India-   Jet Quality Circles, 7 Aces, Safe Air Quality Circles, Quality Brothers etc.. BHEL  call Quality circles by their serial numbers like QC1, QC2, QC3, QC4 etc.. Madras Motors-  Vallavar, Ganga, Bharthi etc..
Benchmarking ,[object Object]
Types of Benchmarking ,[object Object],[object Object],[object Object],[object Object]
Just In Time (JIT) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Taguchi Concepts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Capability Maturity Model  ( CMM )  It is a way to develop and refine an organization's processes mainly for the purpose of developing and refining software development processes. The model describes the maturity of the company based upon the project the company is handling and the related clients.
The CMM was originally intended as a tool to evaluate the ability of government contractors to perform a contracted software project. Though it comes from the area of software development, it can be, has been, and continues to be widely applied as a general model of the maturity of processes
Pareto Analysis ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Statistical Process Control (SPC)
Process Control Chart
Quality Awards National Awards of Different Countries: Malcolm Baldrige National Quality Award (United States) The Deming Prize (Japan) Golden Peacock National Quality Award (India) British Quality Award (UK) Egyptian Quality Award Turkish Standard Institution Award (Turkey) French National Quality Award Australian Quality Award
A list of Awards related to Quality The Margaret Chase Smith Maine State Quality Award Shingo Prize for Excellence in Manufacturing The NASA Excellence Award/ George M. Low Award The North Corolina Quality Leadership Award Rajiv Gandhi Foundation Quality Award (India) The Florida Sterling Award California’ s Eureka Award Siemens and Sun Win Philip Crosby Award for Quality Connecticut Quality Improvement Award
The most prestigious Quality Awards in the World are The Deming Prize The Malcolm Baldrige National Quality Award and  The European Quality Award
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Big Growth of the Service Sector According to the survey by the Economic Times in 1992, The service sector is a the threshold of the tremendous growth . Service and knowledge workers are estimated to constitute 80% of the workforce with the manufacturing sector contributing to only the rest 20 percent. According to a recent survey of the top ranking organisation in Europe , 89 percent of the respondents said that quality was the primary buying argument for the ultimate customer. TQM is supported and adopted not only by the manufacturing industries but also by the banks, hospitals, educational institutions, hotels and community development projects.
Quality is a Journey, not a Destination

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Quality Improvement in Service Industry

  • 1. TQM in the Service Industry Prinson D'Lima ---By
  • 2. What is Quality? Quality is “fitness for use” (Joseph Juran) Quality is “conformance to requirements” (Philip B. Crosby) Quality of a product or services is its ability to satisfy the needs and expectations of the customer
  • 3. What is TQM? Constant drive for continuous improvement and learning. Concern for employee involvement and development Management by Fact Result Focus Passion to deliver customer value / excellence Organisation response ability Actions not just words (implementation) Process Management Partnership perspective (internal / external)
  • 4.
  • 5. Evolution of TQM The concept of Total Quality Management (TQM) was developed by an American, W. Edwards Deming, after World War II for improving the production quality of goods and services. Mr. Deming is regarded as “The quality Guru who never gave up.” But it was the Japanese who adopted TQM more seriously in 1950 to resurrect their postwar business and industry, used it to dominate world markets by 1980.
  • 6. Contd. The 1980’s saw an explosion in the use of statistical methods and quality methodology in both manufacturing and non-manufacturing organisations. Mr. Subodh Bhargava, Chief Executive of Eicher, recently revealed an interesting fact that TQM is not new to India and its roots in Indian ancient scriptures like the Upanishads and the Srimad Bhagavadgita.
  • 7.
  • 8.
  • 9.
  • 10. Learning LEARNING AND TQM Process Improvement Quality Improvement Customer Satisfaction Shareholder Satisfaction Employee Satisfaction
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. Some organisations in India give different Individual to quality Circles .. For instance Air India- Jet Quality Circles, 7 Aces, Safe Air Quality Circles, Quality Brothers etc.. BHEL call Quality circles by their serial numbers like QC1, QC2, QC3, QC4 etc.. Madras Motors- Vallavar, Ganga, Bharthi etc..
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. Capability Maturity Model ( CMM ) It is a way to develop and refine an organization's processes mainly for the purpose of developing and refining software development processes. The model describes the maturity of the company based upon the project the company is handling and the related clients.
  • 22. The CMM was originally intended as a tool to evaluate the ability of government contractors to perform a contracted software project. Though it comes from the area of software development, it can be, has been, and continues to be widely applied as a general model of the maturity of processes
  • 23.
  • 24.
  • 25.
  • 27. Quality Awards National Awards of Different Countries: Malcolm Baldrige National Quality Award (United States) The Deming Prize (Japan) Golden Peacock National Quality Award (India) British Quality Award (UK) Egyptian Quality Award Turkish Standard Institution Award (Turkey) French National Quality Award Australian Quality Award
  • 28. A list of Awards related to Quality The Margaret Chase Smith Maine State Quality Award Shingo Prize for Excellence in Manufacturing The NASA Excellence Award/ George M. Low Award The North Corolina Quality Leadership Award Rajiv Gandhi Foundation Quality Award (India) The Florida Sterling Award California’ s Eureka Award Siemens and Sun Win Philip Crosby Award for Quality Connecticut Quality Improvement Award
  • 29. The most prestigious Quality Awards in the World are The Deming Prize The Malcolm Baldrige National Quality Award and The European Quality Award
  • 30.
  • 31. Big Growth of the Service Sector According to the survey by the Economic Times in 1992, The service sector is a the threshold of the tremendous growth . Service and knowledge workers are estimated to constitute 80% of the workforce with the manufacturing sector contributing to only the rest 20 percent. According to a recent survey of the top ranking organisation in Europe , 89 percent of the respondents said that quality was the primary buying argument for the ultimate customer. TQM is supported and adopted not only by the manufacturing industries but also by the banks, hospitals, educational institutions, hotels and community development projects.
  • 32. Quality is a Journey, not a Destination

Editor's Notes

  1. This slide introduces the process of Statistical Process Control. Slides illustrating the mechanics will be found in the presentation for supplement 6S. At some point, you may wish to illustrate or discuss the connection between Statistical Process Control and the Target and Conformance-based quality control discussed earlier.