tqm tools and implementation

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  • 1. - UNIT 3 TOOLS OF QUALITY Structure 3.1 Introduction Objectives 3.2 Elements of TQM 3.3 Seven QC Tools for Improvement 3.3.1 Affinity Diagram 3.3.2 Tree Diagram 3.3.3 InterrelationsDiagram 3.3.4 Prioritization Matrices 3.3.5 Process Decision Program Chart (PDPC) 3.3.6 Activity Network Diagram 3.3.7 Matrix Diagram 3.4 Implementation of TQM 3 4.1 Integrated Management Approach 3.4.2 Traditional Management Approach 3.4.3 Guidelines while Implementing TQM 3.5 Quality Measurement System 3.5.1 High Cost of Poor Quality 3.5.2 Improper Time Management 3.5.3 Lack of Score Keeping 3.6 Summary 3.7 Key Words 3.8 Answers to SAQs 3.1 INTRODUCTION Total Quality Management is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. This culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations. Scientific methodology can be employed for the implementation of TQM. For this purpose, a number of well-established tools/methodologies can be used. Objectives After studying this unit, you should be able to explain the various elements of TQM, know the various types of quality tools for improvement, describe the process of implementing TQM in an organization, and understand certain aspects of a quality measurement system. 3.2 ELEMENTS OF TOM TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. To be
  • 2. ~ ; r i i t ~Systems successful in implementing TQM, an organization must concentrate on the following eight key elements : (i) Ethics, (ii) Integrity, (iii) Trust, (iv) Training, (v) Teamwork, (vi) Leadership, (vii) Recognition,and (viii) Communication. These elements can be divided into four groups accordingto their function. These groups namely foundation, bricks, binding mortar and roof constitutethe necessary features of a house as shown in Figure 3.1. Training Teamwork =. Leademhlp I Ethics, integfity and Trust I Communication Figure 3.1: The 8 Elementsof T Q M Foundation TQM is built on a foundationof ethics, integrity and trust. It promotes openness, fairness and sincerity and allows involvementby everyone. These three elementsmove together, however, each element offers somethingdifferent to the TQM concept. Ethics Ethics is the discipline concerned with good and bad in any situation. It is a two-faced subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employeesare to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. Integrity Integrity implies honesty, morals, values, fairness, and adherenceto the facts and sincerity. These are the characteristicthat the customers (internal or external)expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphereof duplicity.
  • 3. Trust Tools of Quality Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust promotes full participation of all members. It allows empowerment that encourages pride in ownership and also encourages commitment. It allows decision making at appropriate levels in the organization, promote individual risk-taking for continuous improvement and helps ensure that measurements focus on improvement of process. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. The interrelationship between ethics, integrity and trust is shown in Figure 3.2. Figure 3.2: Interrelationship between Ethics, Integrity and Trust Bricks On the basis of strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes training, teamwork and leadership. Training During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making,job management, performance analysis, business economics and technical skills. Supervisors play an important role in implementing TQM within their departments, because they impart training and teach the employees the philosophies of TQM. Teamwork Teamwork is a key element of TQM to bring success. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide morepermanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt. These are : Quality Improvement Teams or Excellence Teams :These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for a period of three to twelve months. Problem Solving Teams :These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months. Natural Work Teams : These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week.
  • 4. Quality Systems Leadership It is possibly the most important element in TQM. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to encourage values that guide subordinates. For TQM to be successful in the organization, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate the belief and commitment through the daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down throughout the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well-defined systems, methods and performance measures for achieving those goals. Binding Mortar From foundation to roof of the TQM house, everything is bonded by the strong mortar of communication. Communication Communication acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The role of sender and receiver can be played by anyone who is actively participating to realize the goal of achieving TQM. The success of TQM demands communication with all personnel within the department or among departments, the suppliers and customers. Supervisors must keep open the means through which employees can send and receive information about the TQM process. It is vital that ideas, thoughts and results of actions are being shared correctly. The communication process can be said to be credible only if receiver interprets in the way the sender intended. Communication follows different ways such as : 8 Downward Communication :This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the workers conversant with TQM. 8 Upward Communication :By this the lower level of employees are able to provide suggestions to upper management of the effects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and workers. 8 Sideways Communication :This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner. Roof The roof of the TQM house is built with recognition. Recognition Recognition is the last and final element in the entire system. A team or an individual should be given the r .i .~gnitionfor the suggestions and achievements. Recognition comes in its best form when it immediately
  • 5. follows an action that an employee has performed. Recognition can be a .positive factor to changes in self-esteem, productivity, quality and the amount of effort to the task at hand. Recognition comes in different ways, places and time such as, Ways :It can be by way of personal letter from top management or by awards. Places :Good performers can be recognized in front of departments, on performance boards and also in front of top management. Time :Recognition can be given at staff meetings, annual awards ceremony, etc. It is very clear from the above discussion that TQM without involving integrity, ethics and trust would b