acceptability of tqm
DESCRIPTION
total quality managementTRANSCRIPT
Trace TQM Orientation & Application in variousNational Setup
Outline the Quality movement in Japan – The SuccessStory from Poor Quality manufacture to World Leaders
Japanese Quality Control Circle Movement forEnterprise-wide Quality Control Mechanism
Characteristic Quality Control Features in AmericanQuality management System
TQM Practices in European Countries
Quality problems in Developing Nations
Convergence of Varying Notes & Analyse Patterns inTQM Practices
Current Overview of TQM Applications in ServicesSectors.
Much of the Business success, over the Past
Decade has been Predominantly driven by TQM,
JIT, CIMS and the like. TQM has played a
Pivotal role in shaping and influencing business
success. Effective adoption and diffusion of
TQM in Organisations has, therefore, become an
important Managerial concern.
Therefore it is intended to Highlight how TQM
has been adopted and Diffused in various
Different Set-ups in different parts of the globe.
Japan has come a Long Way from Poor Quality
Manufacturer (1940s), to Leading Quality
Manufacturer
It is because of the Scientific Planning, Quality
Orientation & Commitment at all Levels
Prior to World War II, Japan was in Export Business
with Mass Production of Low Quality Consumer
Goods, but the war Shattered their Economy
Thereafter, it Emerges as a Major Industrial Power
with the able Leadership, where Quality becomes a
world-wide Bench-mark for Japanese Product.
The efforts to study the Quality Control in Japan was startedin 1949 by the Union of Japanese Scientists & Engineers(JUSE) to provide educational programs to the Firms
By studying the Foreign Practices through exchange programs& sharing of Experience, the Group of Top Managers, QualityManagers, Professors, Specialists & Technical Personnelbecome aware of the various Quality Aspects
Through “Statistical Quality Control” magazine JUSE broughtup the Quality Revolution with statistical methods &techniques
“Demings Prize” for quality in 1951, brought up QualityConsciousness in the Japanese Firms
Dr. J.M.Juran‟s Lecturer on “Planning & Practice in QualityManagement preached Quality begins from Design & ends atCustomer Satisfaction
The concept of “Total Quality” for Company's‟ success is usedthereon
By the lunching of Quality Control Movement &
promoted by Industrial Management Arena in Japan
from 1955-60 “Years of TQC” was prevailed by
implementing Company-wide-quality control practices
It started with the progress of Inspection Oriented
Quality Assurance, to Production Process, Control
Oriented Quality Assurance finally to New Product
Development Oriented Quality Assurance
Quality Control Standards in Japanese firms are now
very Stringent with a large number of companies
reporting under 5% defect rate and quite a few firms
exhibiting ½ - 1% defect rate. The emphasis is on Zero
defect Programme
In April 1962, a Japanese magazine “Gemba-To-QC (Quality Controlfor the Foreman or FQC)” paved the way to Q-C circle activities. Thepublication‟s editorial committee established the following goals:1. It must be directed towards the first-time supervisors &
foremen;2. It must educate, train & advocate the use of Q.C. Techniques;3. It must aid in the organisation of a group called “Q-C circle at a
workshop level”;4. It must encourage foremen to subscribe to the magazine on their
own account. The concept of QC Circle is adopted, because of the Compulsion ofCircumstances prevailing and through the Peer Groups (mini circles)in different Functional Areas like Productivity, Efficiency, CostEffectiveness, Jigs & Tools, Design of Products & Processes,Facilities Planning, Production Control and Productivity. Today,there are more than 1 Million circles operating in Japan.
QC concept is further extended to include Joint QC between differentFunctional Areas.
Japan is a Country of Small Islands with limited
Natural Resources
Most of the Raw Materials Imported, and for the
Growth & Survival of Industries, Export has to be
Promoted in a big way
This leads to emphasis on Quality to compete in the
World Market
This was achieved by adopting a 6 Point
programme including Quality audits, Promotion for
Good quality, Quality trainings, Use of Statistical
methods, Control activities and Quality circles etc.
Japan's success is characterised by Small-lot production, Just-in-time Purchasing, Extensive Preventive Maintenanceprograms, Automated Equipment & Robots, together withWorker Involvement and Responsibility. These togetherconstitutes some of the Ingredients of TQM
Considerations in implementing QC programmes needs TopManagement involvement, Emphasis on Training, Building aFormal Organisation, use of In-Formal QC Circles and givingRewards
Company-wide-quality-control, is emphasised onparticipation by and cooperation of all members includingOwners, Managers, Supervisors & Operators coveringactivities like Market Research, R&D, Production Planning,Designing, Production Preparations, Purchasing & Sub-Contracting, Manufacturing, Inspection, Sales and After salesservices as well as Personnel and Education
The core Quality activities involve:› Activities targeted towards the customer in realising theproduct performance, reliability, safety, usage, economy,servicing and the like that customers demand
› Activities for rationally and economically realising throughutilisation of statistical and other scientific approaches
› Activities are not only implemented by the manufacturingdivision such as production and inspection alone but also byall the individual divisions ranging from surveying throughplanning, developing and production to sales for resolution ofquality assurance problems etc.
› Participation of staffs all the way advances properly throughthe leadership rather than handful of persons
The Japanese approach specifically requires Total Involvementof people for QC. The western approach for QC is heavilycommitted to the Establishment of sophisticated systems, plans& procedures and Inspection
The Japanese rely Far more upon the development, training andInvolvement of its people
USA is on Crossroads, regarding Quality today. Inspite of the Factthat the Latest Techniques & concepts of SQC and TQC still theJapanese concepts QC Circles and Company-Wide QC inSynchronisation with Orientation & Development in Philosophygoes much Faster and Rapid success in Implementation
American companies remain concerned in Detecting & Segregatingthe Defecting ones from the Good ones while the Japanesecompanies devised systems to reduce Defects and Produce Goodquality Products
This resulted in America losing its position of dominance not onlyin American Market but also in the World
Much of the Quality Movement Tools & techniques used in USAare developed in Japan which requires complete re-development inboth Methods and Emphasis
The most critical challenge in US Quality Movement is thedevelopment and implementation of Quality Focussed CorporateManagement Systems that achieve the Coherence, Integration &Comprehensiveness of Quality Management in Japan (Easton, 1993)
The American companies are Characterised by-› A high concentration of Industry in relatively few Companies
› Stress on Promoting Share-Holders and
› Running the Companies by Professional Managers
Marguardt (1988) divides the Evolution of QualityMovement in USA in 3 Periods1. Advocates for SQC – Emphasis on Technical Tools of
Control charts, Lot Inspection and Sampling Schemes
2. Administrators for systems of Quality Control – Emphasison the Cost of Quality & Managerial Aspects of Organisingthe Quality
3. Advertising & selling Quality Consciousness – Emphasis onchanging organisational culture & providing an Environmentthat will enable people to activate and sustain Quality in theirown work and in products & services produced by theorganisation with the focus on needs of customers
Initially the American industries followed the Europeantraditions of relying on the foremen & Workmen forensuring Quality. However, as the industries expanded &Automation increased, the American industries embracedthe Taylor system of Scientific management
The Taylor system Primarily aimed at improvingProductivity by separating Manufacturing Planning &Execution
This required, for Quality Function, the responsibility forquality to be delegated to inspectors who are organised in toa central inspection department
Taylor System extends the Quality improvement effort byforming the separate staff specialists as Quality Engineers,who are strongly oriented to the Quality Function, andplayed a crucial role in distributing latest Techniquesdemanded by the emerging quality functions
The American Quality Improvement efforts arecharacterised by› A professional approach to management
› Continuous training of managers & specialists
› High investment in precise machinery tools, measuringinstruments & technology to improve quality
› Research to understand the needs of the market and
› Emphasis on increasing the production capacity to avoidshortage of goods
The inherent drawback associated with it, affected theperformance of industries in Quality Matters. Thisrestricts the person only to the performance of Physicaltasks
This is proved beneficial in Mass Production, but evennow is not a wholly inefficient system of management
Easton (1993), based on his experience as a member of the boardof examiners of the Malcom Bridge National Quality Awards,critically assesses the current state of TQM in USA. He outlinesthe approaches of US Companies which limits realisation ofTQM‟s full potential in United states as:› The scope of the concept of “process” in TQM is not fullyunderstood by most managers. This lack of understanding ofprocess is related to the persistent result oriented perspectiveof most managers
› Lack of effective management by fact› The primary focus of the quality effort is one of the workforcebecause of which roles for all levels of management andtechnical staff are not developed
He, therefore, feels that TQM in the US is far from mature andneeds continuous development, refinement and expansion inorder to realise and maintain competitive advantage
During Industrialisation Era, European countries are consideredas the Front runners in Quality of manufactured products. Eachnation claims specialisation in one product.
This leadership is due to the advances in technology, Europeanindustries are in the fore front in developing new products,processes, measuring instruments and were among the leaders inadopting national & international standardisation ofmethodology, materials and tests.
Despite extensive national & industrial differences, the Europeanindustries are characterised by:› High degree of autonomy› Closely held ownership› Practice of modern management techniques› Wide application of government regulations to quality withparticular emphasis on health and safety
Significant contributions of Dale, Oakland and the emergence ofsingle European market, the scenario is changing rapidly andmore and more organisations embracing TQM Technology
Lampocht (1993) outlines Quality movement in Frenchindustry. He states the characteristic features of FrenchFactories as:› Overly centralised decision making› Management‟s unwillingness to delegate authority› Paternalistic attitude towards workers› Resistance to change› A general reliance on technical specialists rather than operators tosolve machine or operation related problems
In France, the biggest potential market for qualityimprovement is in service industry as French do not believethat:› Excellent customer service is valuable› Service is an important investment› Quality is primarily management‟s responsibility› A customer is already a customer before buying anything› For service to be of good quality, everyone inside the companymust contribute to it
He further outlines the characteristic features of
European TQM efforts as:
› Recognition of versatility of demands of customers
among the different European members
› Technical expertise
› Concern for product quality
› Customer satisfaction as a major management objective
› Effort to obtain ISO 9000 certification
Juran (1974) found that the Dutch government supportsthe application of Total Quality Control in thecompanies. A survey carried out by Baluw and During(1990) in 98 Dutch industrial firms reveals that:› Few companies have documented the elements of their TQCsystem
› In quality policy & objectives, product characteristics such asdurability are emphasised more than costs
› The evaluation of quality control systems are poor
› Most firms have policies & procedures with respect to qualitycontrol, but fewer et quality objectives
› Design/development activities are often not based on marketanalysis & product requirements
› In purchasing, little attention is paid to examining suppliersquality assurance and to establishing a list of qualifiedsuppliers
› In manufacturing, many companies fail to write downinspection standards and process parameters
› Companies often neglect preventive maintenance, instrumentcalibration & materials and assembly tracking
› Little attention is paid to determining the need for product, toinstructions for transport & storage, to after sales service, todirections for use and to maintenance instruction
› The factors which are considered most important forstimulating & impeding the adoption of TQM are:
Quality recruitment of the customer/market place
The active support of top management for TQM
The existence of an executive who is responsible for theimplementation of TQC
The participation and enthusiasm of the employees
Significant positive effects of TQC
The Dutch companies must do something in the field ofquality control, but has to plan the activities. Suchattitude make it impossible to learn about quality
Planned communication strategy along withcommitment of management to quality is essential topromote quality improvement
It can be concluded that in developed economies 5Factors may be considered as important to successfuldiffusion of TQM. These are-› The role of a quality champion in perpetuating a Total Qualityculture
› Customers involvement in the product development process
› Building a TQM strategic framework
› Quality control efforts in the entire business chain
› Educate-Educate and Educate
The term “Poor Quality” is synonymous with the products manufactured indeveloping nations
The inferiority & lack of quality standards, technology, equipments,instruments, consumer purchasing power, consumer education and qualitycontrol know-how contribute towards poor performance of developing nationsin quality matters
Most of the organisations in the developing nations are oriented in wrongdirections as regards quality because of the following reasons1.1. Seller‟sSeller‟s marketmarket scenarioscenario2.2. UnorganisedUnorganised andand indifferentindifferent customerscustomers3.3. BanBan onon importsimports4.4. InsufficientInsufficient education,education, training,training, inadequateinadequate knowledgeknowledge andand technicaltechnical knowknow--howhow5.5. AtmosphereAtmosphere ofof indifferentindifferent prevailingprevailing inin mostmost ofof thethe organisationsorganisations6.6. LackLack ofof legallegal andand politicalpolitical supportsupport7.7. LackLack ofof establishedestablished qualityquality standardsstandards && inadequateinadequate testtest facilitiesfacilities8.8. IndifferentIndifferent enforcingenforcing agenciesagencies9.9. HistoricHistoric beliefbelief thatthat „Quality„Quality costscostsMoney‟Money‟10.10.ConsiderationConsideration thatthat thethe qualityquality isis anan optionaloptional extraextra && notnot aa necessarynecessary forfor livingliving11.11.TotalTotal lacklack ofof managementmanagement commitmentcommitment12.12.LackLack ofof communicationcommunication && trusttrust betweenbetween suppliers,suppliers, dealers,dealers, managementmanagement &&tradetrade unionsunions
However, in the modern changing scenario with a liberalisedimport-export policies, greater awareness amongst customers &increased competition posed by MNCs, thf growing marketse firmsare making efforts to adopt TQM and bring their products tointernational standards, so that they can not only survive but alsotake the advantage of growing markets
However, these efforts face a lot of obstacles such as› Inadequate knowledge information about TQM› Failure of management to maintain its commitment over a long period oftime
› Doubts in minds of employees about intentions of management› People considering TQM as another bandwagon› Difficulties in measuring TQM effectiveness› Resistance to change at different levels› Insufficient education and training resources› Lack of awareness amongst customers & difficulty in assessing customerexpectation & satisfaction
› Poor internal communication A systematic planned approach through training & educationtherefore is required to meet this challenge
Element Developed Nations Developing Nations
1 Manufacturing
Focus
Process Product
2 Product Objectives Quality / Utility Cost Related Performance
3 Business Focus Market Share / Customer
satisfaction
Profitability
4 Risk / Reward Learn from Failure Punish Failures
5 Employee Attitude Team Building Cooperation Individual Leg Pulling
6 Market Training On a Large Market On a Narrow Market
7 Man-power Training Company Training across a
variety of Task, High investment in
Human Capital
Training Primarily by outside
Institutions, Low investment in
Human Capital
8 Methods Quantative, SQC & Work
increases Responsibility for Quality
Role specialisation with specialists
responsible for discrete functions
such as quality
9 Motivation Rewards linked to Company
Performance, all employees in
the same boat
Short-term Incentives for Workers
Abc