Total Quality Management Total Quality Management

Ashwin A

Introduction

• In today’s world, insufficient quality or indifference in quality leads to disputes, which imposes serious drain on the financial resources of a company and limits profit potential.

• To be competitive in today’s market, it is essential for construction companies to provide more consistent quality and value to their owners/customers.

• It is high time to develop better and more direct relationships with our owners/customers, to initiate more team work at the job-site, and to produce better quality work.

Definition

“TQM is a management philosophy, a paradigm, a continuous improvement approach to doing business through a new management model”

• TQM is a philosophy which applies equally to all parts of the organization.

• TQM can be viewed as an extension of the traditional approach to quality.

• TQM places the customer at the forefront of quality decision making.

• Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality.

• All staff are empowered.

TQM is a comprehensive management system which:

• Focuses on meeting owners’/customers’ needs, by providing quality services at a reasonable cost.

• Focuses on continuous improvement.

• Recognizes role of everyone in the organization.

• Views organization as an internal system with a common aim.

• Focuses on the way tasks are accomplished.

• Emphasizes teamwork .

Universal TQM Beliefs

• Owner/customer satisfaction is the measure of quality.

• Quality improvement must be continuous.

• Analysis of the processes is the key to quality improvement.

•Measurement, a skilled use of analytical tools, and employee involvement are critical sources of quality improvement ideas and innovations.

•Sustained total quality management is not possible without active, visible, consistent, and enabling leadership by managers at all levels.

•It is essential to continuously improve the quality of products and services that we provide to our owners/customers.

Origin of TQM

• Total quality management has evolved from the quality assurance methods that were first developed around the time of the First World War. Quality inspectors were introduced on the production line to ensure that the level of failures due to quality was minimized.

• After the First World War, quality inspection became more commonplace in manufacturing environments and this led to the introduction of Statistical Quality Control (SQC).

• After World War Two, the industrial manufacturers in Japan produced poor quality items. In a response to this, the Japanese Union of Scientists and Engineers invited Dr. Deming to train engineers in quality processes.

• In the next decade more non-Japanese companies were introducing quality management procedures that based on the results seen in Japan. The new wave of quality control became known as Total Quality Management.

Deming’s fourteen points for TQM

1. Create constancy of purpose.

2. Adopt the new philosophy.

3. Cease dependence on inspection to achieve quality.

4. End the practice of awarding business on the basis of price tag alone.

5. Improve constantly and forever every process.

6. Institute modern training (for everybody!). 

7. Institute modern methods of supervision.

8. Drive out fear.

9. Break down barriers between departments.  

10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity.

a. Eliminate work standards (quotas) on the factory floor.

b. Eliminate management by objective.

11. Remove barriers that rob the hourly worker of his right to pride of workmanship.

12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship.

13. Institute a vigorous program of education and self-improvement.

14. Massive training.

Seven deadly diseases

• Lack of constancy of purpose.

• Emphasis on short-term profits: short-term thinking.

• Management by fear.

• Mobility of management: job hopping.

• Use of visible figures only for management, with little or no consideration of figures that are unknown or unknowable.

• Excessive medical costs.

• Excessive costs of liability, fueled by lawyers that work on contingency fees.

IMPLEMENTING THE TQM PHILOSOPHY

• To be successful in implementing TQM, an organization must concentrate on the eight key elements:

• Ethics• Integrity• Trust• Training• Teamwork• Leadership• Recognition• Communication

Characteristics of Successful TQM Companies

The characteristics that are common to companies that have successfully implemented TQM in their daily operations are as follows:

• Strive for owner/customer satisfaction and employee satisfaction

• Strive for accident-free jobsites• Recognize the need for measurement and fact-based

decision making• Arrange for employees to become involved in helping

the company improve• Train extensively

• Work hard at improving communication inside and outside the company

• Use teams of employees to improve processes• Place a strong emphasis on the right kind of leadership.• Involve subcontractors and suppliers in continuous

improvement.• Strive for continuous improvement.

Some of the companies who have successfully implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.

HOW TO BEGIN CONTINUOUS IMPROVEMENT

• Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. The five major areas of focus for capability improvement are demand generation, supply generation, technology, operations and people capability.

• There are three major mechanisms of prevention:

• Preventing mistakes (defects) from occurring (Mistake – proofing or Poka-Yoke).

• Where mistakes can’t be absolutely prevented, detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation).

• Where mistakes recur, stopping production until the process can be corrected, to prevent the production of more defects.

Pitfalls to be avoided in TQM

• The Failed Attempt of IBM to implement 6-sigma Policy. Six Sigma is a business management strategy originally developed by Motorola, USA in 1981.IBM was one of the first companies to implement Six-Sigma. IBM’s estimate was that by implementing six-sigma, they would add $2.4 billion directly to the bottom line.

• Why did IBM fail to implement TQM?

Total Quality Management

Doing things right

The first time !!!

CONCLUSION

Total quality management (TQM) has become a part of the corporate management parlance on a global scale. Compelling reasons to adopt TQM are: pressure set in due to decreased profits, inability to penetrate into new markets, intensifying competition, and above all quality conscious customers demanding better and improved products and services from the companies.