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Chapter 4 TQM

The document discusses strategies for implementing total quality management (TQM) in an organization. It outlines establishing an organizational framework, using tools like statistical process control, and gaining contributions from quality gurus. The Plan-Do-Study-Act cycle is explained as the process for continuous improvement. Key steps include selecting consultants, developing vision/mission statements, establishing communication frameworks, and constituting process action teams to identify and improve processes.

Business◦
TQM Implementation
In this chapter, we will learn about establishing the organizational framework and overview of strategies to be adopted for implementing TQM. TQM Tools and Techniques TQM involves application of the right tools in the organization for the continuous improvement of quality.
TQM Tools and Techniques Type Tools and Techniques Methodologies SPC, JIT, Taguchi methods- DOE, QFD, TPM System ISO 9000 Human Resources Total Employee Involvement (TPE), Proactive management and Quality circles Motivation Award, European Quality Award, Rajiv Gandhi National Quality Award.
The Management may use the various suggestions given by the quality gurus for the benefit of their own organization. Contribution of Gurus for TQM Areas of TQM Gurus Statistical Gauss, Pareto, Shewhart, Fisher Management Juran, Crossby, Feigenbaum Execution Deming, Taguchi
PDSA TQM Implementation Deming Modified the PDCA (Plan, Do, Check, Act) by Shewhart as PDSA cycle. There are four phases Plan, Do, Study, Act. The planning phase is the preparation phase where the actions proposed to betaken for implementation of TQM are determined and documented after a detailed analysis. The ‘do’ phase involves implementation of the actions on a pilot basis. The study phase is where the results of pilot implementation are measured and analyze to see whether there is a real improvement. During this place one has to understand which plan worked and which plan worked and which did not. This may either lead to confirming the new process in the act phase or modifying the plan and revising the cycle again.
The important actions taken during each phase of PDSA are given below: Plan - establish objectives - establish a plan that will facilities achieving the goal - establish a measurement system Do - Plan for implementation and measurements - Implement the plan on pilot basis
Study - compare the result with the objectives - identify gaps - analyze the causes for gaps and exceptional results, if any Act - standardize the procedure that met or exceeded the goal - if there were gaps, improve the plan and carry out PDSA again
TQM Implementation Announcement- the CEO will be able to convince the workers and the junior employees about practicing TQM quite easily as they tend to have an open mind. The CEO has to convey and convince all the employees in the organization about the importance of practicing TQM. The CEO can announce the decision about practicing TQM in a meeting, where all the employees are present. Select Consultant- a competent consultant can be hired for help in implementation of TQM. CEO should select the right person personally because of the important role he is going to play. He should analyze the consultant past experience, credentials, values, outlook, abilities, communication skills and other attributes before selecting consultant.
Corporate Strategic Planning The next step would be planning the strategy as to how the organization is going to get into TQM. It has to carry out the strategic planning without the help of the Senior Management and consultant. The important activities in the strategic planning are formulating vision, mission and objectives for the organization by the CEO
Essential Statement Vision Statement- is the vision of the CEO about where the organization should be in the long-run It should be concise so that it is easily comprehensible by all the employees. It should be inspiring as well as challenging to employees also Mission Statement It describes the purpose for which the organization is in business and provides the strategy to achieve this purpose.
Continuation….. It should communicate the guiding principles and values held common by the organization Quality Policy The quality policy should clearly convey the views of the management on dealing with the customers and achieving customer satisfaction. It should also be like a guide for each section of the organization for developing their own quality objectives.
Plan for Establishing Communications Framework Figure 4.2 Corporate –Wide Communication Framework Vision Statement Mission Statement Quality Policy Quality Manual Quality Plan General Procedures Work Instructions Detailed Procedures News Letters Circulars Notes Training Prog. Story Teller
Figure 4.3 Quality Council in a large Organization CEO TQM Facilitator-Secretary CEO-Chairman Directors Steering QC Division 2 Division 1 Division 1 QC Division 2 QC
Selection Of TQM Facilitator TQM Facilitator should be an independent person and he should not be made responsible for normal production. He should encourage ideas in group meetings, avoid expressing his own ideas and be tactful.
Role of Quality Council (QC) - they should have personal commitment to quality and TQM. - they should constitute the right teams, which can be called as process improvement teams (PIT) for solving problem. - they should attend QC meetings after adequate preparation. - they should keep track of the steps taken by the teams towards improvement on a regular basis. - they may discuss with the customers and suppliers to get first hand information. - they should facilitate training of the employees as well as the improvement of the team members. - they should be champion for quality in the organization.
- they should always be on the look out for related information. - they should walk the talk. Strategic Quality Plan- advocates that the strategic business plan should be integrated. Some strategies for TQM implementation: Training for top management. Forming improvement teams for specific problems. The consultant can train the quality council members. Employee Involvement- improvement action has to be carefully considered and approved by the QC.
- employees should be encourage to give suggestions for improvement. - improvement plan require a lot of detailed and intelligent work to be carried out. - they have to provide the resources for accomplishing the tasks. - the team members may like to give their opinion as to how to go about finding a solution. Constitution of PAT- the management should plan for constituting PATs, empowering them and supporting them. - improvement teams will be formed for solving a given problem on part-time basis and will be dissolved as soon as the job has been completed.
Identify process- business process benchmarking helps in identification of the potential processes for improvement. Do Phase of TQM Study Phase of TQM Act Phase of TQM Improvement actions are aimed at achieving one or more of the ff. goals: Attaining technical excellence Improving quality Reducing defects Increasing productivity Reducing quality cost Improving uptime of equipment Reducing overhead costs Reducing delivery time
PDSA for Continuous Improvement Outer PDSA is for TQM for the whole organization. The PDSA in the Do phase of TQM is that for each improvement project. Plan- facilitating Plan for Improvement of org. Do- approved action plan has to be implemented. Study Phase- the improvement team members have to assess the effectiveness of the suggested solutions. Act Phase- procedures are modified and issued. New processes as are defined and implemented on a continuing basis in the Act phase.
Agenda for QC Meetings- process within an organization. Assessed for possible improvement. Schedule for Improvement Actions- schedules are not only important for normal operations, but also for improvement activities. Communicating Success Stories- definitely motivate the employees to improve. Implementation Tips for Winning Organizations- According to Tom Peters Total Quality Management Reengineering Leveraging knowledge Curious cannibalistic corporation Virtual organization Empowerment
Getting Things Done some of the points which will help in getting things done by employees Recognition- is a must in order to motivate the employees to bring out solutions to the problems in the organization. Required to distinguish between the performers and the non-performers. Praise and Punish- a. Authoritative b. Authoritative and benevolent c. Consultative d. Participative Management is benevolent, which means it tries to fulfill the aspirations of the employees at the same time.
3. 80 pr cent of Success will be due to Personal Contact 4. Accumulate Small Gains 5. Build Credibility- inside and outside 6. Persist Barriers to TQM Implementation Commonly found barriers Lack of top management commitment Lack of employee involvement Non-cooperation of first line managers and middle management Lack of clarity in vision Losing track of business performance Not involving customers and suppliers
Belief that training leads to employee attrition Resistance to change at all levels Ineffective TQM facilitators Wrong consultant Lack of consistency and persistence by the management Haste and thereby waste Looking for immediate gains Not investing adequate resources Quick obsolescence of products Loosing confidence in the middle of the journey due to various reasons Working harder than smarter Tough competition leading to frequent price war Unable to find champions within the organization Not properly staffed-too many or too less number of employees