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TOTAL QUALITY
MANAGEMENTI T S A P P L I C A T I O N S A N D F A I L U R E S
Quality Management v/s Total Quality Management
Quality Management is just to manage the quality of finished product or
service i.e, the end result.
TQM is managing quality throughout the whole process of production
including management and other departments.
Total = Large no. of people involved in
Quality = The product meets @ exceeds the standards
Management = Related to the level of management hierarchy
2
Quality From the eye of TQM
• Quality is everything that an organisation
does, in the eyes of its customers
• That encourage them to regard the
organisation as one of the best in its
particular field of operation.
3
ELEMENTS OF TQM
4
BENEFITS
TANGIBLE GAINS INTANGIBLE GAINS
 Better product quality
 Productivity improvement
 Reduced quality cost
 Increased market
 Increased profitability
 Reduced employee grievances
 Effective team work
 Improvement in human relations and
work area morale
 Customer satisfaction
 Better company image
 Enhanced problem solving capacity
5
APPLICATIONS
OF TQM
CASE 1
• ABC Bank is one of the biggest bank in Asia. Establish around 85 years back.
• Facing Problem: Increase in customer complains results in reduced profit margins &
significant drop in customers.
• As a result a group composed of People from all levels and no status titles were assigned
to manage customer services to focus on trouble shooting, customer service improvement
and improving management and staff relation.
• The workshop were arranged for the group focusing on superseded goal to put the
“Customer First” as a philosophy. The workshop program emphasized on creative problem
solving approach to permit innovation and challenging the existing cultural norms.
• During the workshop the cultural, work environment and attitude towards the customer in
the banking section were discussed openly, results in developing a sense of trust and
commitment among participants.
7
• The workshop were arranged for the group focusing on superseded goal to put the
“Customer First” as a philosophy.
• The workshop program emphasized on creative problem solving approach to permit
innovation and challenging the existing cultural norms.
• During the workshop the cultural, work environment and attitude towards the customer in
the banking section were discussed openly, results in developing a sense of trust and
commitment among participants. Through these workshop network of committed people
were established across the branches.
• Thus, By stepping outside the system and focusing on motivation and reward, the
organization bought about a necessary cultural change to keep the satisfaction of
the customer as a primary goal of all the employees.
8
CASE 2
• Photo frame is a company engaged in producing photographic and projection
equipment.
• The company was the first to gain the ISO registration among all the competitors and
had good record of profitability.
• To retain the competitive edge and continue to succeed in International market, the
company decided to make use of external resources to facilitate total quality
improvement effect.
• Selection of consultants was based of factors such as
Over all philosophy and approach to TQM
Suitability to company requirements
Practical experience in implementing TQM
Evidence of consultant actually practicing TQM
9
• The consultant, along with senior managers, developed the mission and policy
statements.In doing this, consideration was given to the factors which contributed to the
company’s success and the future goals.
• Ideas were collected through BRAINSTROMING
• This process resulted in better interaction between the managers in building up trust and
bridging the communication gap.
• The TQM process developed a form working teams to:
Achieve continuous improvement
Supply products and services to meet customer expectations
Develop the potential of people to maximum
• The next task undertaken was the training of people to develop excellence.
• The core areas were selected, Primarily focusing on team building activity, total quality
concept, quality delivery process and total quality maintenance process.
10
• Sufficient time was allocated for training so as to initiate creative participation in TQM
efforts.
• The work groups were formed to execute special projects.
• At the end of 3 and half months it was observed that the participants changed their
opinion and attitude towards work and had a positive approach.
• Through the exercise of execution of project it was found that functional
boundaries were successfully bridged and multi disciplinary quality improvement
teams were set. The company thus achieved the target objectives by recognizing
the strength of the people.
11
FAILURES
OF TQM
13
14
.
15
.
16
.
17
• Strong debate in the late 70’s about
safety of nuclear power
• Worst nuclear disaster in U.S.
history – March 1979
• Proper controls not in place
• Human error attributed to lack of
proper training
• Only new nuclear power stations
built since were those already
under construction
CASE1 - MILEISLAND
18
• Only months after completion, dam
collapsed - June 1976
• 6 miles of Teton River canyon
• were flooded
• Improper materials used
• Maintenance was done during
spring when likely reservoir would
fill to capacity
CASE 2- TETONDAM
19
• Apple was on verge of losing dominance in device
market
• Difficult to make calls with iPhone 4
• Dropped calls
• Widespread dissatisfaction with early adopter
loyal customers
• Denial/minimization of problem byApple
• Independent tests identified issue
•“Voluntary” recall was conducted to correct the problem.
CASE3- IPHONE4
20
THANK YOU
21

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Total Quality Management: Applications and Failures

  • 1. TOTAL QUALITY MANAGEMENTI T S A P P L I C A T I O N S A N D F A I L U R E S
  • 2. Quality Management v/s Total Quality Management Quality Management is just to manage the quality of finished product or service i.e, the end result. TQM is managing quality throughout the whole process of production including management and other departments. Total = Large no. of people involved in Quality = The product meets @ exceeds the standards Management = Related to the level of management hierarchy 2
  • 3. Quality From the eye of TQM • Quality is everything that an organisation does, in the eyes of its customers • That encourage them to regard the organisation as one of the best in its particular field of operation. 3
  • 5. BENEFITS TANGIBLE GAINS INTANGIBLE GAINS  Better product quality  Productivity improvement  Reduced quality cost  Increased market  Increased profitability  Reduced employee grievances  Effective team work  Improvement in human relations and work area morale  Customer satisfaction  Better company image  Enhanced problem solving capacity 5
  • 7. CASE 1 • ABC Bank is one of the biggest bank in Asia. Establish around 85 years back. • Facing Problem: Increase in customer complains results in reduced profit margins & significant drop in customers. • As a result a group composed of People from all levels and no status titles were assigned to manage customer services to focus on trouble shooting, customer service improvement and improving management and staff relation. • The workshop were arranged for the group focusing on superseded goal to put the “Customer First” as a philosophy. The workshop program emphasized on creative problem solving approach to permit innovation and challenging the existing cultural norms. • During the workshop the cultural, work environment and attitude towards the customer in the banking section were discussed openly, results in developing a sense of trust and commitment among participants. 7
  • 8. • The workshop were arranged for the group focusing on superseded goal to put the “Customer First” as a philosophy. • The workshop program emphasized on creative problem solving approach to permit innovation and challenging the existing cultural norms. • During the workshop the cultural, work environment and attitude towards the customer in the banking section were discussed openly, results in developing a sense of trust and commitment among participants. Through these workshop network of committed people were established across the branches. • Thus, By stepping outside the system and focusing on motivation and reward, the organization bought about a necessary cultural change to keep the satisfaction of the customer as a primary goal of all the employees. 8
  • 9. CASE 2 • Photo frame is a company engaged in producing photographic and projection equipment. • The company was the first to gain the ISO registration among all the competitors and had good record of profitability. • To retain the competitive edge and continue to succeed in International market, the company decided to make use of external resources to facilitate total quality improvement effect. • Selection of consultants was based of factors such as Over all philosophy and approach to TQM Suitability to company requirements Practical experience in implementing TQM Evidence of consultant actually practicing TQM 9
  • 10. • The consultant, along with senior managers, developed the mission and policy statements.In doing this, consideration was given to the factors which contributed to the company’s success and the future goals. • Ideas were collected through BRAINSTROMING • This process resulted in better interaction between the managers in building up trust and bridging the communication gap. • The TQM process developed a form working teams to: Achieve continuous improvement Supply products and services to meet customer expectations Develop the potential of people to maximum • The next task undertaken was the training of people to develop excellence. • The core areas were selected, Primarily focusing on team building activity, total quality concept, quality delivery process and total quality maintenance process. 10
  • 11. • Sufficient time was allocated for training so as to initiate creative participation in TQM efforts. • The work groups were formed to execute special projects. • At the end of 3 and half months it was observed that the participants changed their opinion and attitude towards work and had a positive approach. • Through the exercise of execution of project it was found that functional boundaries were successfully bridged and multi disciplinary quality improvement teams were set. The company thus achieved the target objectives by recognizing the strength of the people. 11
  • 13. 13
  • 14. 14
  • 15. . 15
  • 16. . 16
  • 17. . 17
  • 18. • Strong debate in the late 70’s about safety of nuclear power • Worst nuclear disaster in U.S. history – March 1979 • Proper controls not in place • Human error attributed to lack of proper training • Only new nuclear power stations built since were those already under construction CASE1 - MILEISLAND 18
  • 19. • Only months after completion, dam collapsed - June 1976 • 6 miles of Teton River canyon • were flooded • Improper materials used • Maintenance was done during spring when likely reservoir would fill to capacity CASE 2- TETONDAM 19
  • 20. • Apple was on verge of losing dominance in device market • Difficult to make calls with iPhone 4 • Dropped calls • Widespread dissatisfaction with early adopter loyal customers • Denial/minimization of problem byApple • Independent tests identified issue •“Voluntary” recall was conducted to correct the problem. CASE3- IPHONE4 20