Assessment Report

Mohsin Raza (IE-11-05) Ashraf Hussain (IE-11-35)

Syed Muhammad Ali Jafry (IE-11-07)

Total Quality Management (TQM)

Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.

Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. TQM requirements may be defined separately for a particular organization or may be in adherence to established standards, such as the International Organization for Standardization's ISO 9000 series. TQM can be applied to any type of organization; it originated in the manufacturing sector and has since been adapted for use in almost every type of organization imaginable, including schools, highway maintenance, hotel management, and churches. As a current focus of e-business, TQM is based on quality management from the customer's point of view.

TQM processes are divided into four sequential categories: plan, do, check, and act (the PDCA cycle). In the planning phase, people define the problem to be addressed, collect relevant data, and ascertain the problem's root cause; in the doing phase, people develop and implement a solution, and decide upon a measurement to gauge its effectiveness; in the checking phase, people confirm the results through before-and-after data comparison; in the acting phase, people document their results, inform others about process changes, and make recommendations for the problem to be addressed in the next PDCA cycle.

Principles of TQM

The key principles of TQM are as following:

Management Commitment

Plan (drive, direct) Do (deploy, support, and participate) Check (review) Act (recognize, communicate, and revise)

Employee Empowerment

Training

Suggestion scheme

Measurement and recognition

Excellence teams

Fact Based Decision Making

SPC (statistical process control)

DOE, FMEA

The 7 statistical tools

TOPS (Ford 8D – team-oriented problem solving)

Continuous Improvement

Systematic measurement and focus on CONQ

Excellence teams

Cross-functional process management

Attain, maintain, and improve standards

Customer Focus

Supplier partnership

Service relationship with internal customers

Never compromise quality

Customer driven standards

The Concept of Continuous Improvement by TQM

TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making, to detailed execution of work elements on the shop floor. It stems from the belief that mistakes can be avoided and defects can be prevented. It leads to continuously improving results, in all aspects of work, as a result of continuously improving capabilities, people, processes, and technology and machine capabilities.

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.

A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least permitted, by faulty systems and processes. This means that the root cause of such mistakes can be identified and eliminated, and repetition can be prevented by changing the process.1

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. (Stop in time).

Implementation Principles and Processes

A preliminary step in TQM implementation is to assess the organization’s current reality. Relevant preconditions have to do with the organization’s history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed.

If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant

problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate.5

However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a change. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. These forces include departures from tradition, a crisis or galvanizing event, strategic decisions, individual “prime movers,” and action vehicles. Departures from tradition are activities, usually at lower levels of the organization, which occur when entrepreneurs move outside the normal ways of operating to solve a problem. A crisis, if it is not too disabling, can also help create a sense of urgency which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or demands from consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. A plan to implement TQM may be such a strategic decision. Such a leader may then become a prime mover, who takes charge in championing the new idea and showing others how it will help them get where they want to go. Finally, action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized.

Mission Statement

Millat: to be a market leader in agricultural tractors and machinery, building Company’s image through innovation and competitiveness, grow by expanding market and investing into group companies, ensuring satisfaction to customers and stakeholders and to fulfill social obligations.

Vision Statement

Millat: to be a global group of companies, recognized for a range of quality products with innovative design capabilities.

ELEMENTS OF TQM IN MLT

Customer Satisfaction Continuous Improvement

Leadership Communication Training & Education Supplier Involvement of People Process approach

Customer Satisfaction:

MTL’s primary goal is to ensure customer satisfaction by improving its

Manufacturing processes

Eliminating waste

Delivering product on time at a competitive price through a committed team, driven by innovation and adhering to Health & Safety Standards

Continuous Improvement:

By continuously improving performance, aim to generate earnings sufficient to ensure a secure future for the Company and to protect and increase shareholders return. To enhance creativity and job satisfaction, provide employees opportunity for personal development. Be an integral part of national economy with a strong sense for responsibility to society and the environment

Leadership style:

Top management supporting long term quality improvement.

Department heads are involved in quality improvements process at all levels, giving their full attention and show sincerity in quality works.

Clear cut communication of quality policy and objectives.

The degree to which top management is committed with quality, it results is in increase profit.

Communication:

In Millat, work instructions are given to employees to work effectively.

There is horizontal communication hierarchy in Millat, it enables workers to directly communicate their matters to managers.

Customer and supplier feedback is communicated to everyone in the organization so customer errors can be respond in an effective way

Training and Education:

In Millat, management is committed to fully educate and train people with new technology and processes.

Quality control techniques are advanced and understood for employees.

Quality related training is give to all level of management.

Optimal Resource availability for training.

Supplier:

Selected on the basis of quality not cost

As well as being fully aware of customers’ needs and expectations, each person respect the needs and expectations of their suppliers. The ideal situation is an open partnership style relationship, where both parties share and benefit.

Involvement of People:

Quality circle, or employee involvement type activities are implemented.

Degree to which employees are recognized and awarded for their quality performance, in return they will give their full attention

Top management push decision making to lowest possible level.

Different departments have friendly relationship. They meet frequently to solve problems.

Work teams are directly involve in goal/objective setting

Process Approach:

Process is defined as per desired output.

Establish clear responsibility, authority and accountability for managing process.

Evaluation of possible risk and impact of process on customer.

Interface identified of process and function of organization.

Inputs and output are defined.