Total Quality Management

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Introduction to TQMSumanths approachISOConcepts for Productivity improvementCase Study on Voltas- Tools for Quality Management


<ul><li> 1. centercenterCONTENTS<br><ul><li>Introduction to Total Quality Management </li></ul></li><li> 2. Sumanths 5 pronged approach </li></ul><p> 3. ISO - International Standard for Quality Management 4. Concepts for productivity improvement 5. Quality Improvement 6. Just in Time 7. Kaizen 8. Incentives Schemes 9. Financial or Non-financial means of motivation 10. Encouraging creativity 11. Suggestion Schemes 12. Case Study Voltas CompanycentercenterIntroduction to Total Quality Management<br>It is important to understand thedefinition of the termquality before discussing the total quality management, which is a much more broader term.<br>Definition of Quality<br>There is no single definition of the term quality. Quality means different to different people such as:<br>1. Customer-Based: Fitness for use, meeting customer expectations.2. Manufacturing-Based: Conforming to design, specifications, or requirements. Having no defects. Quality is the degree to which a specific product conforms to a design or specification3. Product-Based: The product has something that other similar products do not that adds value in other words quality refers to the amounts of the unpriced attributes contained in each unit of the priced attribute4. Value-Based: The product is the best combination of price and features or quality means best for certain customer conditions. These conditions are (a) the actual use and (b) the selling price of the product.5. Transcendent: It is not clear what it is, but it is something good or it may also be defined as quality is neither mind nor matter, but a third entity independent of the twoeven through Quality cannot be defined, you know what it is.<br>Definition of Total Quality Management<br>TQM is the enhancement to the traditional way of doing business.It is a proven technique to guarantee survival in the world-class competition.TQM is for the most part common sense. Analyzing three words (TQM), we have:<br>TotalMade up of the wholeQualityDegree of excellence a product or service providesManagementAct, art, or manner of handling, controlling,directing, etc.<br>Therefore, TQM is the art of managing the whole to achieve the excellence.<br>TQM is defined as both philosophy and a set of guiding principles that represents the foundation of a continuously improving organization.<br>It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in future.<br>TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under disciplined approach.<br>The key features of the TQM are as follows:centercenter<br>Continuous improvement embodies the fundamental principle of TQM. Both incremental and breakthrough improvement are encouraged by using improvement tools and techniques and learning from within the organization and through external benchmarking. Education and training reinforce this role for everyone in the organization<br>TQM blurs the boundaries between the organization and the external customers and suppliers. Customers and suppliers are considered as part of the work processes. Customer needs drive the key processes, while suppliers assume an important role in the organizational goal of satisfying the customers.<br>The top management is the main driver of TQM. Senior executives assume responsibility for visioning quality philosophy, determing and communicating quality policies, establishing a system of quality management, actively demonstrating commitment to quality as the number one corporate priority, and creating an enablinh environment that can produce quality outcomes. Success of TQM resides primarily with the top management.<br>TQM calls for pro-active and systematic reviews and measurement of key processes that add value.<br>TQM is a management philosophy to guide a process of change and starts at the top. TQM ensures that quality be recognized as a corporate strategic priority, along with financial and other priorities.<br>TQM is about achieving results by process-based approach and focuses on the customer.<br>Sumanths 5 pronged approach<br>Sumanth proposed a 5 pronged approach based on the 5 basic types that are technology, employee, product, process and material.<br></p> <ul><li>Technology based techniquescentercenter </li></ul><p> 13. Computer-aided design (CAD) 14. The use of computer technology to aid in the design and particularly the drafting (technical drawing and engineering drawing) of a part or product, including entire buildings. It is both a visual (or drawing) and symbol-based method of communication whose conventions are particular to a specific technical field. 15. Other techniques include the laser beam technology, computer graphics and so on. 16. Employee based techniques 17. Quality Circle 18. It is a volunteer group composed of workerswho meet to talk about workplace improvement, and make presentations to management with their ideas, especially relating to quality of output in order to improve the performance of the organization, and motivate and enrich the work of employees. 19. Financial incentives, fringe benefits, management by objective etc. are other techniques used for improving the productivity. 20. Product based techniques 21. Research and development 22. It is the creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of human, culture and society, and the use of this stock of knowledge to devise new applications. 23. Task based techniques 24. Computer data processing 25. The computer systems integration and data processing industries include companies that develop and modify computer systems. Establishments in these industries provide expertise on network and systems administration, computer-aided design and manufacturing systems, office automation and administration, and are generally involved in all phases of systems development from design through installation. 26. Other techniques used are the works measurement, job safety and so on. 27. Material based techniques 28. Inventory control system 29. An inventory control system may be used to automate a sales order fulfillment process. Such a system contains a list of order to be filled, and then prompts workers to pick the necessary items, and provides them with packaging and shipping information. 30. Material recycling, materials handling are the other techniques used for increase the productivity of the firm.centercenter 31. centercenterISO - International Standard for Quality ManagementGrowing international competition, new product liability laws and the increasing significance of the ISO 9000 series of standards within the European Union demand a change in quality policy and even corporate policy when executing public orders, in the long run, it will be mandatory to align corporate policy with customers needs. Customers satisfaction or, to be more precise, the extent to which customers satisfaction is reached, will become the major quality objective. In order to achieve this goal, customer oriented quality has to be integrated into the production process. Management have to define the necessary guidelines and realize them with quality management systems.<br>Why was ISO established?<br>.<br>In 1946, delegates from 25 countries met in London and decided to create a new international organization, of which the object would be to facilitate the international coordination and unification of industrial standards.<br>.<br>The new organization, ISO, officially began operations on 23 February 1947.<br>ISO (International Organization for Standardization) is the worlds largest developer of standards.<br>Although ISOs principal activity is the development of technical standards, ISO standards also have important economic and social repercussions. ISO standards make a positive difference, not just to engineers and manufacturers for whom they solve basic problems in production and distribution, but to society as a whole.<br>ISO 9000 Series<br>The ISO 9000 series consists of five primary parts numbered as 9000 through 9004. If we were to display them on a continuum of an operating firm, the series would range from design and development through procurement, production, installation and servicing. <br>While ISO 9000 and 9004 only establish guidelines for operations, ISO 9001, 9002 and 9003 are well- defined standards.<br>Quite a bit of work and expense may be needed for a firm to be accredited at ISO 9001, which is the highest level. Furthermore, some firms may not need ISO 9001 accreditation at all. For example, ISO 9003 covers quality in a productions final inspection and testing. <br>A firm can be accredited only at this level of final production. This would essentially guarantee the firms quality of final output and it would be attractive to customers. A broader accreditation would be ISO 9002, which extends from purchasing and production through installition.<br>centercenterThere are 20 elements in the ISO 9000 standards that relate to how the system operates and how well it is performing. These are contained in section 4 of the ISO 9000 guidelines. Each of these elements applies in varying degrees to the three standards, 9001, 9002 and 9003 (IOS 9001 contains all of them).<br>ISO 9000 Certification<br> There are three forms of IOS 9000 certification<br></p> <ul><li>First Party: A firm audits itself against IOS 9000 standards. </li></ul><p> 32. Second Party: A customers audits its supplier 33. Third Party: a qualified national or international standards or certifying agency audits the firm. centercenterThe best certification of a firm is through a third party. Once passed by the third party audit, a firm is certified and may be registered and recorded as having achieved IOS 9000 status, and thus becomes part of a registry of certified companies. This third party certification also has legal advantages in the European Community. For example, a manufacturer is liable for injury to a user of the product. The firm can free itself from any liability by showing that it used the appropriate standards in its production process and carefully selected its supplier as part of its purchasing requirement. For this reason, there is strong motivation to choose ISO 9000 certified suppliers.<br>If a manufacturer wants to purchase parts from a noncertified supplier, he should visit the supplier and examine its processes, past performance, worker credentials and so on to verify that the supplier can meet the required quality levels.<br>The future evolution of ISO 9000<br>In order for the ISO 9000 family to maintain its effectiveness, the standards are periodically reviewed in order to benefit from new developments in the quality management field and also from user feedback. ISO/TC 176, which is made up of experts from businesses and other organizations around the world, monitors the use of the standards to determine how they can be improved to meet user needs and expectations when the next revisions are due in approximately five years time.<br>ISO/TC 176 will continue to integrate quality assurance, quality management, sector specific initiatives and various quality awards within the ISO 9000 family.<br>ISOs commitment to sustaining the ISO 9000 momentum through reviews, improvement and streamlining of the standards guarantees that your investment in ISO 9000 today will continue to provide effective management solutions well into the future<br>CONCEPTS OF PRODUCTIVITY IMPROVEMENT<br>Quality Circles<br>Some organisations have successfully implemented the use of quality circles as part of an ongoing improvement programme. Others have experimented with quality circles with the best intentions and faced several obstacles, but what is true is that this type of participatory management brings several benefits to all concerned.<br>centercenter<br>Functions<br>Quality circles are also commonly known as work improvement or quality teams, but no matter the name, their functions share similar characteristics. Generally, the quality circle is a small group of employees who voluntarily meet at regular times to identify, analyse and solve quality and other problems in their working environment. Quality circles can recommend and implement improvement strategies and be a useful reservoir for the generation of new ideas. Normally, members of a quality circle face and share similar problems in their daily work lives and create a programme to tap human creative energy that is capable of generating handsome rewards.<br>Problems<br>Feedback from all types of industries and business sectors has indicated some common problems arising from the development of quality circles. Some of the problems can cause serious setbacks if not properly resolved. One of the most common problems was that after a few successes, most organisations were willing to declare victorious results and abandon the circles. In this scenario, the quality circle was not used as part of the overall long term planning process and the circle lost momentum. Other problems related to the level of commitment and support from top and middle management, mainly because the objectives of the circle were not communicated effectively. Management viewed the circles as a vehicle for employees to get their own way over management decisions and tended to be suspicious and uncommitted when dealing with the circles recommendations.<br>SuccessfulFactors<br>The success of any type of quality circle is dependent on several factors, but the most critical influences are strong management commitment and support. Like all business processes, quality circles have to be managed and a prerequisite should include a document endorsed by management setting out the purpose, policy and objectives of the quality circle. The basic philosophy of quality circles must be known to everyone before the programme is started. Employees and managers of all levels must be aware of the roles they have to play whether they are participants, facilitators or agents for change.<br>Employees must be willing to participate and contribute to discussions to generate recommendations to improve the working lives for all members of the organisation.<br>Individual desires and preferences should not be ignored, but settled within the context of<br>organisational objectives to give recognition to the desire for circle achievement. The importance of management commitment and support cannot be emphasised enough. Management has to accept the principles of participatory management and be receptive to the recommendations made by the quality circle. It makes sense that the person doing a job on a daily basis is in a very good position to anlayse it and recommend ways to improve it.<br>centercenter<br>Quality circles were first established in Japan in 1962, and Kaoru Ishikawa has been credited with their creation. The movement in Japan was coordinated by the Japanese Union of Scientists and Engineers (JUSE).<br>The use of quality circles then spread beyond Japan. Quality circles have been implemented even in educational sectors in India and QCFI (Quality Circle Forum of India)...</p>