total quality management

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TOTAL QUALITY MANAGEMENT Prof. (Dr.) Satish Ailawadi

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Total quality management is both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. Encompasses mobilizing the entire organization to satisfy the demands of the customers. TQM is focused on routine involvement and participation of everyone in the organization in the systematic improvement of quality. It involves each individual and group within all parts of the organization. 2

FUNDAMENTAL CONCEPTS OF TQM

TQM provides a way of life to constantly improve performance at every level and at in every activity, by creating a positive environment for continuous improvement based on - Team work - Trust and Respect - Examining the processes in a systematic manner - Application of quantitative methods and analytic techniques

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Demings Chain ReactionImprove qualityDecrease costs due to less rework, fewer mistakes, fewer delays and snags, and better use of time and materials

Improve productivity

Capture the market with better quality and lower prices

Stay in business

Provide steady jobs and more jobs.

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A shift from traditional approaches to qualityTOTAL QUALITY MANAGEMENT -Involvement of all employees, customers and suppliers - Empowered employees - Teamwork - Quality strategy based upon a common mission and vision -Process oriented QUALITY ASSURANCE -Quality systems (ISO 9000) -Quality planning - Quality policy - Quality costing - Problem solving QUALITY CONTROL -Quality standards -Statistical quality techniques -Process performance -Treating quality problems INSPECTION -Error detection - Rectification5

TQM can be perceived as being concerned with the following - Meeting the needs and expectations of customers. - Covering all parts of the organization - Examining all costs which are related to quality - Doing things right the first time i.e. quality designing rather than inspecting. - Developing the systems and procedures which support quality and improvements - Developing a continuous process of improvement6

Kaizen Philosophy TQM concerns incremental and ongoing improvement of yourself, your work, and your organization. The Kaizen philosophy is imbedded in the TQM concept and encompasses continuous and gradual improvement of all employees in the organization. Leads to improvement in employees personal output on a daily basis7

Important Kaizen Rules Work with and according to guidelines Problems are opportunities for improvements Retrieve information where it happens Consider the facts Work according to the plan Avoid waste Order and neatness Keep appointments8

Deming Wheel- focal point in Kaizen Approach In the Kaizen approach Deming Wheel is central, consisting of a cycle of activities necessary for effective quality improvement. The cycle consists of Plan, Do, Check, and Act. 1. Plan - Define the problem, analyze the causes and draft an action plan for solving the problem. - Determine the quality objectives, and critical success factors. - Define performance indicators, collect and analyze the process data, generate the possible solutions. - Select the most feasible solution and work it out.

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2. Do- Implement the plan on a limited scale or conduct an experiment to test the proposed improvement. - Train all involved employees in the use of quality improvement methods and techniques. - Describe the process which is considered for improvement and form project teams to lead the process. 3. Check - Evaluate the trial project with performance indicators. - Verify whether the improvement has been successful. - What have we learnt?10

4. Act - Implement proven improvements. - The improvements are documented in standard procedures so all employees involved are well informed on how to handle in future. - Usually the cycle gets repeated under different circumstance and conditions to test how consistent the results are.ACT PLAN

CHECK

DO

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Quality PrinciplesA. Customer focus and customer involvement - Employees regularly visit their customers. - Customers are known and understood Customers needs are integrated in the activities. - More is being done than the customer expects - Satisfied customers are priority number one. - Changing customer needs are systematically collected and lead to improvement. 12

B. Involvement of all employees Voluntary total involvement of everyone. Teamwork that leverage the knowledge and provides synergy based on open communication, respect and trust. Skills are developed on the basis of Learning by doing. Decisions on the basis of consensus. The present situation is open for discussion. Investing in knowledge. Empowered employees Entrepreneurial approach and leadership skills at all business levels.13

C. Consistency of purpose - An inspiring mission and vision is developed and communicated to all organizational levels. - SMART- goals are formulated and preserved. (Specific, Measurable, Achievable, Realistic, and Time specific). - Managers are consistent in their behaviour regarding these goals. - Guidance is given to quality improvement process. - There is commitment at top management.14

D. Act according to facts - Work according to facts and not based on rumours or feelings. - The causes and consequences of problems are analyzed according to measuring is knowing. - Goal oriented data is gathered and interpreted accordingly. - Measurements are based on figures; verify everything with data. - Quality costs are analyzed.15

E. Process oriented - Internal customers are also satisfied. - The process is more important than the results; address the means of work accomplishment and not the outcomes. - The effectiveness of process is measured. - The output is standardized. - The processes are documented in schemes and standard working procedures. - Suppliers are regarded as partners and long term relationships are established. - The TQM culture is expanded to suppliers. 16 - Reduction of process variations occurs continuously.

F. Focus on continuous improvement. - Employees improve themselves and their work and help others improve themselves and their organization. - Problems are regarded as a means for improvement and a chance to improve processes. - Emphasis on problem prevention instead of correction. - Improvements are based on cross-functional, structured, and holistic approach, and are continuously documented.

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- Multidisciplinary improvement teams are established. - There is a working climate in which continuous improvement is a way of life. - Improvement of whole and not just the parts.18

S.No. 1.

Demings and Crosby's 14 points for quality improvementDemimg Crosby Create constancy of purpose towards improvement of product and service . Adopt the new philosophy Cease dependence on inspection Establish management commitment

2. 3, 4. 5. 6. 7.

Form interdepartmental quality improvement teams. Establish quality measurement.

End awarding business on the basis Evaluate the cost of quality. of price tag Improve constantly the system of production and service. Institute training on the job. Institute leadership. Establish quality awareness. Instigate corrective action. Ad hoc committee for the zero defects programme.19

S.No. 8.

Deming Drive out fear, so that everyone may work effectively for the company. Break down barriers between departments.

Crosby Supervise employee training.

9. 10.

Hold a zero defects day to let all employees realize that there has been a change.

Eliminate slogans and exhortations. Encourage individuals to establish improvement goals for themselves and their groups. Eliminate quotas or work standards. Error cause removal. Give people pride in their job. Institute education and a selfimprovement programme. Recognize and appreciate those who participate. Establish quality councils to communicate on a regular basis.

11. 12. 13. 14.

Put everyone to work to accomplish Do it over again to emphasize that the quality it. improvement programme never ends. 20

Total quality management is a common method to improve the whole organization stepwise, structured and systematically according to hard work, discipline, intensive training, and consistent implementation of techniques and resources. The quality principles form the foundation of TQM and are expressed in the four pillars of the TQM-house, namely 1.Problem solving Discipline 2.Interpersonal skills 3.Teamwork 4.Quality improvement process.21

Total Quality Management

Problem solving discipline

Interpersonal Skills.

Teamwork

Quality improvement process

Employee involvement, Structured, Stepwise, Discipline, Consistency.22

The success of TQM improves proportionately in conjunction with the percentage of employees within the organization who master this quality attitude, mentality, and skills, TQM covers all parts of the organization. For an organization to be truly effective, every single part of it, each department, each activity, each person and each level must work properly together, because every person and every activity affects and in turn is affected by others.23

What is Quality? Degree to which a set of inherent characteristics fulfills requirements. Many of us tend to equate quality with lluxury and expense. If asked to rank, for quality - A Rolls Royce - A Formula One racing car or - A compact family saloon Most people would choose the Rolls Royce as possessing the highest quality of the three.24

To use the definition of quality given earlier and to arrive at a ranking decision we need to examine another definition of quality Grade. Grade is defined as category or rank