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TOTAL QUALITY MANAGEMENT

Puneet Goyal DSE/2K9/040

1. Contents2. 3. INTRODUCTION ................................................................................................................... 2 TQM and Six Sigma ................................................................................................................ 3 4.1 4.2 5. Comparison to Six Sigma ................................................................................................. 4 Applications Where Six Sigma Is Better.......................................................................... 5

Total Quality ManagementHistory ...................................................................................... 6 5.1 TQM Timeline.................................................................................................................. 6

6. 7. 8.

Primary Elements of Total Quality Management .................................................................... 8 Total Quality Management Gets Results ............................................................................... 10 Implementing Total Quality Management ............................................................................ 11 8.1 8.2 Generic Model for Implementing TQM ......................................................................... 11 Five Strategies to Develop the TQM Process ................................................................ 12

9.

Deming's 14 Points ................................................................................................................ 14

10. References ............................................................................................................................. 15

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2. INTRODUCTIONTotal Quality Management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM requires the involvement of management, workforce, suppliers, and customers, in order to meet or exceed customer expectations. Considering the practices of TQM as discussed in six empirical studies; Cua, McKone, and Schroeder (2001) identified the nine common TQM practices as 1. 2. 3. 4. 5. 6. 7. 8. 9. cross-functional product design process management supplier quality management customer involvement information and feedback committed leadership strategic planning cross-functional training employee involvement

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3. TQM and Six SigmaThe TQM concept was developed by a number of American management consultants, including W. Edwards Deming, Joseph M. Juran, and Armand V. Feigenbaum. Originally, these consultants won few converts in the United States. However, managers in Japan embraced their ideas enthusiastically and even named their premier annual prize for manufacturing excellence after Deming. The Six Sigma management strategy originated in 1986 from Motorolas drive towards reducing defects by minimizing variation in processes. The main difference between TQM and Six Sigma (a newer concept) is the approach. At its core, Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work. The methods for implementing this approach come from people such as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran.

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4.1 Comparison to Six SigmaIn comparison, Six Sigma is more than just a process improvement program as it is based on concepts that focus on continuous quality improvements for achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. It is complementary to Statistical Process Control (SPC), which uses statistical methods for monitoring and controlling business processes. Although both SPC and TQM help in improving quality, they often reach a stage after which no further quality improvements can be made. Six Sigma, on the other hand, is different as it focuses on taking quality improvement processes to the next level. The basic difference between Six Sigma and TQM is the approach. While TQM views quality as conformance to internal requirements, Six Sigma focuses on improving quality by reducing the number of defects. The end result may be the same in both the concepts (i.e. producing better quality products). Six Sigma helps organizations in reducing operational costs by focusing on defect reduction, cycle time reduction, and cost savings. It is different from conventional cost cutting measures that may reduce value and quality. It focuses on identifying and eliminating costs that provide no value to customers such as costs incurred due to waste. TQM initiatives focus on improving individual operations within unrelated business processes whereas Six Sigma programs focus on improving all the operations within a single business process. Six Sigma projects require the skills of professionals that are certified as black belts whereas TQM initiatives are usually a part-time activity that can be managed by non-dedicated managers.

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4.2 Applications Where Six Sigma Is BetterSix Sigma initiatives are based on a preplanned project charter that outlines the scale of a project, financial targets, anticipated benefits and milestones. In comparison, organizations that have implemented TQM, work without fully knowing what the financial gains might be. Six Sigma is based on DMAIC (Define-Measure-Analyze-Improve-Control) that helps in making precise measurements, identifying exact problems, and providing solutions that can be measured.

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5. Total Quality ManagementHistoryTotal quality management (TQM) is a term initially coined by the Naval Air Systems Command to describe its Japanese-style management approach to quality improvement. An umbrella methodology for continually improving the quality of all processes, it draws on a knowledge of the principles and practices of:

The behavioral sciences The analysis of quantitative and nonquantitative data Economics theories Process analysis

5.1 TQM Timeline 1920s Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. industry. Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose as workers were deprived of a voice in the conditions and functions of their work. The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by participation.

1930s

Walter Shewhart developed the methods for statistical analysis and control of quality.

1950s

W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and executives. Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough. Armand V. Feigenbaums book Total Quality Control, a forerunner for the present understanding of TQM, was published. Philip B. Crosbys promotion of zero defects paved the way for quality improvement in many companies.

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The Japanese named their approach to total quality companywide quality control. 1968 Kaoru Ishikawas synthesis of the philosophy contributed to Japans ascendancy as a quality leader.

Today

TQM is the name for the philosophy of a broad and systemic approach to managing organizational quality. Quality standards such as the ISO 9000 series and quality award programs such as the Deming Prize and the Malcolm Baldrige National Quality Award specify principles and processes that comprise TQM.

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6. Primary Elements of Total Quality ManagementTotal quality management can be summarized as a management system for a customer-focused organization that involves all employees in continual improvement. It uses strategy, data, and effective communications to integrate the quality discipline into the culture and activities of the organization. Customer-focused. The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvementtraining employees, integrating quality into the design process, upgrading computers or software, or buying new measuring toolsthe customer determines whether the efforts were worthwhile. Total employee involvement. All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been driven from the workplace, when empowerment has occurred, and management has provided the proper environment. High-performance work systems integrate continuous improvement efforts with normal business operations. Self-managed work teams are one form of empowerment.

Process-centered. A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (again, either internal or external). The steps required to carry out the process are defined, and performance measures are continuously monitored in order to detect unexpected variation. Integrated system. Although an organization may consist of many different functional specialties often organized into vertically structured departments, it is the horizontal processes interconnecting these functions that are the focus of TQM. Micro-processes add up to larger processes, and all processes aggregate into the business processes required for defining and implementing strategy. Everyone