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TOTAL QUALITY
MANAGEMENT (TQM)
Dr. ANR
Total Quality Management (TQM)
• TQM is a set of management practices followed
organization-wide, geared to ensure the organization
consistently meets or exceeds customer requirements.
Process measurement and controls constitute major focus
in TQM as means of continuous improvement. In a TQM
effort, all members of the organization participate in
improving processes, products, services and the culture in
which they work.
06/04/2015 Dr. ANR 2
• If the company is committed to provide its customers with
products and services that satisfy their needs, its culture,
attitude and organization also should speak so. Not many
companies that implemented TQM have been successful.
• Surveys reveal that only 20-36% of companies that have
undertaken TQM have achieved either significant or even
tangible improvements in quality, productivity,
competitiveness or financial return.
06/04/2015 Dr. ANR 3
Prerequisites for TQM
• There are some prerequisites for successful implementation of
TQM.
• These are customer-driven quality, top management
leadership and commitment, continuous improvement, fast
response, actions based on facts, employee participation,
and a TQM culture.
06/04/2015 Dr. ANR 4
• How products are developed In TQM environment It is
interesting to see the process of product development in a TQM
environment.
• Without a TQM approach, product development is usually
carried on in a an atmosphere where each department acts
independently.
• Short-term results drive behavior so scrap, changes, work-
arounds, waste, and rework are part of routine.
• Most often, the attention of management is lost in supervising
individuals, fire-fighting and rewarding individuals for their
performance.
06/04/2015 Dr. ANR 5
• Product development in a TQM environment is always
customer-driven and focused only on quality.
• Teams in TQM environment are process-oriented, and
interact with their internal customers to deliver the
required results.
• The focus of top management is on controlling the overall
process, and rewarding teamwork, not individuals.
• A core concept in implementing TQM is Deming’s 14 points
which refer to the set of management practices to help
companies to increase their quality and productivity.
06/04/2015 Dr. ANR 6
• International Organisation for Standardisation (ISO) defines
TQM as ’a management approach for an organisation,
centered on quality,
• Based on the participation of all its members and aiming at
long-term success through customer satisfaction, and
benefits to all members of the organization and to society’.
06/04/2015 Dr. ANR 7
TQM comprises the following four process steps:
1. Kaizen:—focuses on continuous process improvement by
making processes visible, repeatable and measurable.
2. Atarimae Hinshitsu :—make things work as they are
meant for (i.e., a pen is meant for writing).
3. Kansei :—examine the way the user applies the product
leads to improvement in the product itself. :
4. Miryokuteki Hinshitsu: —things should have an aesthetic
quality (for instance, a pen will write in a way that is
pleasing to the writer).
06/04/2015 Dr. ANR 8
TQM at Tata Motors
• Tata Motors had all along believed in developing strong in-house design,
engineering, and manufacturing capabilities.
• It performed a large part of its manufacturing activities in-house.
• It had installed facilities to manufacture engines, gearboxes and
transmission mechanisms, body panels, castings and forgings and important
components and sub-assemblies.
• It even manufactured its own machine tools, dyes and fixtures, in its
machine tools division.
•
06/04/2015 Dr. ANR 9
• Tata Motors started a comprehensive quality improvement
initiative in September 2000.
• The initiative played an important role in the company’s
turnaround, from a loss of Rs. 500 crores in the year ended
March 2001 to a profit of Rs. 28 crores in the first quarter of
2002-03.
• Every year, about a quarter of Tata Motors’ workforce went
through training courses, which were rated highly in the Indian
engineering industry.
06/04/2015 Dr. ANR 10
• Personnel were trained before building workshops.
• In case of imported machines, engineers and workers were sent
to the foreign manufacturer’s facilities to receive training well
before the arrival of the machine.
• The top management at Tata Motors, thus, strived hard to
develop TQM culture throughout the organisation.
• There were efforts visibly seen for continuous improvement,
fast response and employee participation.
06/04/2015 Dr. ANR 11
THANK YOU

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Total quality management (TQM) for IM students of JNTUH

  • 2. Total Quality Management (TQM) • TQM is a set of management practices followed organization-wide, geared to ensure the organization consistently meets or exceeds customer requirements. Process measurement and controls constitute major focus in TQM as means of continuous improvement. In a TQM effort, all members of the organization participate in improving processes, products, services and the culture in which they work. 06/04/2015 Dr. ANR 2
  • 3. • If the company is committed to provide its customers with products and services that satisfy their needs, its culture, attitude and organization also should speak so. Not many companies that implemented TQM have been successful. • Surveys reveal that only 20-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality, productivity, competitiveness or financial return. 06/04/2015 Dr. ANR 3
  • 4. Prerequisites for TQM • There are some prerequisites for successful implementation of TQM. • These are customer-driven quality, top management leadership and commitment, continuous improvement, fast response, actions based on facts, employee participation, and a TQM culture. 06/04/2015 Dr. ANR 4
  • 5. • How products are developed In TQM environment It is interesting to see the process of product development in a TQM environment. • Without a TQM approach, product development is usually carried on in a an atmosphere where each department acts independently. • Short-term results drive behavior so scrap, changes, work- arounds, waste, and rework are part of routine. • Most often, the attention of management is lost in supervising individuals, fire-fighting and rewarding individuals for their performance. 06/04/2015 Dr. ANR 5
  • 6. • Product development in a TQM environment is always customer-driven and focused only on quality. • Teams in TQM environment are process-oriented, and interact with their internal customers to deliver the required results. • The focus of top management is on controlling the overall process, and rewarding teamwork, not individuals. • A core concept in implementing TQM is Deming’s 14 points which refer to the set of management practices to help companies to increase their quality and productivity. 06/04/2015 Dr. ANR 6
  • 7. • International Organisation for Standardisation (ISO) defines TQM as ’a management approach for an organisation, centered on quality, • Based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society’. 06/04/2015 Dr. ANR 7
  • 8. TQM comprises the following four process steps: 1. Kaizen:—focuses on continuous process improvement by making processes visible, repeatable and measurable. 2. Atarimae Hinshitsu :—make things work as they are meant for (i.e., a pen is meant for writing). 3. Kansei :—examine the way the user applies the product leads to improvement in the product itself. : 4. Miryokuteki Hinshitsu: —things should have an aesthetic quality (for instance, a pen will write in a way that is pleasing to the writer). 06/04/2015 Dr. ANR 8
  • 9. TQM at Tata Motors • Tata Motors had all along believed in developing strong in-house design, engineering, and manufacturing capabilities. • It performed a large part of its manufacturing activities in-house. • It had installed facilities to manufacture engines, gearboxes and transmission mechanisms, body panels, castings and forgings and important components and sub-assemblies. • It even manufactured its own machine tools, dyes and fixtures, in its machine tools division. • 06/04/2015 Dr. ANR 9
  • 10. • Tata Motors started a comprehensive quality improvement initiative in September 2000. • The initiative played an important role in the company’s turnaround, from a loss of Rs. 500 crores in the year ended March 2001 to a profit of Rs. 28 crores in the first quarter of 2002-03. • Every year, about a quarter of Tata Motors’ workforce went through training courses, which were rated highly in the Indian engineering industry. 06/04/2015 Dr. ANR 10
  • 11. • Personnel were trained before building workshops. • In case of imported machines, engineers and workers were sent to the foreign manufacturer’s facilities to receive training well before the arrival of the machine. • The top management at Tata Motors, thus, strived hard to develop TQM culture throughout the organisation. • There were efforts visibly seen for continuous improvement, fast response and employee participation. 06/04/2015 Dr. ANR 11