EPEE3313 TOTAL QUALITY MANAGEMENT Tutorial 8

EPEE3313 TOTAL QUALITY MANAGEMENTTutorial 8

Prepared by:KEVIN TIU TZE XIAN EEE110044

Prepared for:ASSOCIATE PROFESSOR DATUK DR. SHARIFUDDIN BIN ZAINUDDIN

Conditions for an effective implementation of Total Quality Management.

IntroductionTQM can be defined as both a philosophy and a set of guiding principle that represent the foundations of a continuously improving organization.

It is the application of qualitative methods and human resources to improve all the processes within an organization and exceed customer need now and in the future.

It integrates fundamental management techniques, existing improvements, and technical tools under a disciplined approach.

Conditions for an effective implementationEffective - Subjective, here refer to several criteria:

Good performance of the company or agencies Positive feedback from various stakeholders Awards receive in the field of quality assurance won by the company or agencies Successful in producing a desired or intended result by carrying out of a plan or method that follows the preliminary thinking in order for something to actually happen

MAIN CONDITIONSHUMAN RESOURCE MANAGEMENT

Hubiak and ODonnell, 1996 in their research shows there is high failure rate in the implementation of TQM and one of the main issues is that companies devote relatively little attention to human resource management (HRM) and considerations of personal relations.

Link between HRM and TQM was identified as being in the area of development and empowerment of people and the shift from a control based style of management to an empowering management where attention is focused on coaching and leadingStrategic coherent approach to the management of an organizations most valued assets which are the people working there who individually and collectively contribute to the achievement of its objectives

Reinforce human relationships and group consciousness, raise employee competence, and achieve culture changeGunasekaran (1999) in his model on element needed on successful TQM implementation presents seven major strategies in the successful implementation of TQM. 6 are component of HRM.

Main Component of HRM(i) Training

Vital to the internal diffusion of quality ideas and practices, as without it there is no solid foundation for a formal quality program.

Crucial factor as it create intellectual capital which includes basic and advanced skills for an understanding of the customer or manufacturing system, and self-motivated creativity HRM objective to create an environment that involve in a lot of employee involvement and continuous improvement through participation, teamwork, and empowerment as owners/managers that have a good HRM truly believe in the value of employees as intelligent human beings. (ii) Continuous learning Requires employees to understand the entire work system, including the relationships among their jobs, their work units, and the company.Has been made possible through an improvement coordinating body at company level. In terms of the quality improvement structure, both cross-function and within-function teams exist.

(iii) Team work and cross- functional teamMultidisciplinary team approach helps workers to share knowledge, identify problems and opportunities, derive a comprehensive understanding of their role in the overall process.

(iv) Job satisfactionEmployees have to be happy with what they are doing; every policies and instruction from the top management wont be a successful implemented if they dont have the support from the workers

(v) Accredited quality management systemSeveral statistical quality control tools and techniques is used to achieve good quality management in the organization.E.g ISO 9000 series certification- systematic and consistency

(vi) Top management supportInitiate TQM implementation policiesSet objectives to determine the focus of an organizations activities

(vii) CommunicationDirect Vs Indirect communication among all the organization members, suppliers and customers

GOOD INFORMATION TECHNOLOGY (IT) AND RESEARCH AND DEVELOPMENT (R&D) SUPPORT

Quality has been heralded as the source of competitive advantage during the 1980s and 1990s, particularly when Western companies began to see the loss of their market share to their Japanese competitors. This loss has been attributed mainly to the inferior quality compared to their Japanese counterparts. Innovation - the major sources of competitive advantage

The role of technology in business evolution has been a major element in innovation as it plays a key role in creating a new product or process not only at an evolutionary level, but sometimes also at the fundamental level by changing the rules of competition, or destroying an existing market and creating a new oneEliminates paper-based task assignments and free employees from routine activities. Break the departmental gap and result in internal integrationRapid and more accurate information retrieval and transfersImprove communication links and facilitate the implementation of advanced tools, systems and modeling techniquesCutting down information and processing lead-time,Improve efficiency and minimize errors to the minimum

Technology are able to :

Speed and convenience is the key to todays business, Offer products through Internet, including explanations of the characteristics of the products, and clients can procure products and services through this means and feedback opinions about the characteristics of the products/services through the e-mail system.

Electronic Data Interchange (EDI), slowly become a good partner in world of business. Computer-to-computerexchange ofbusiness document in astandard electronic formatbetweenbusiness partners

GOOD FINANCIAL STATUS/PERFORMANCE

To implement TQM from scratch or at any stage would require a huge amount of funding as it involve a lot of new training and revamp in the working cultureMoney that a company invests in TQM is generally spent in one of two ways: Initials costs of implementing TQMEg: Training, education, materials, people's time away from work, and so onOngoing expenses required to maintain the program without significant changesEg: Yearly Audit fees.

Cost of implementing ISO 9000 documentationVary depending on the size and complexity of your organization and on whether you already have some elements of a quality management

DIY VS Professional helps through a management system consultant

Registrars charge a certain rate per day to be on-site at your facility, typical day rate in the UK will vary between 300 - 800 per auditor day depending on the registrarCost can be up to more than 10,000. Other fees include application fees, certificate fees or annual licence fees.To maintain your certification, the Registrar must return annually to audit a portion of your system.Examples of successful implementation of Total Quality ManagementFord Motor CompanyTQM practices started in the 1980s when Quality Is Job 1 was their slogan, by the 1990s, it became Quality People, Quality Products.Customer satisfaction quality-driven process with guidelines set by management was first utilized.

What change??As of 2008, the warranty repair rate for Ford by utilizing Six Sigma decreased by 60%.DMAIC process: define, measure, analyze, improve, and control has built an overall strategy for consistency DMAIC process able design and engineering analysis process possible for problems, that previously may not have surfaced until (product) launch, to be caught and corrected in the virtual worldVP of Quality, In fact, one and a half points of customer satisfaction drives about one point more in loyalty and our data shows that customers who are highly satisfied remain loyal.CONCLUSION

Quality management makes company have competitive advantage but at the same time it makes managerial jobs more demanding by requiring more in the way of people-management and technical skills and by making greater demands on the managers time.

Effective condition rely on three main factors which are HRM, technology and good financial status which covers others sub-factors such like selective training, good communication system, continuous improvement system, a suitable measurement criteria, effective and simple implementation framework, and teamwork development.