Download - TQM
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Total Quality Management
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Introduction
Total – Made up of the whole(or) Complete.
Quality – Degree of Excellence a product or service provides to the customer in present and future.
Management – Act , art, or manner of handling , controlling, directing, etc.
TQM is the art of managing the whole to achieve excellence.
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"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." DefinitionTQM is composed of three paradigms:Total: Organization wide Quality: With its usual Definitions, with all its complexities (External Definition) Management: The system of managing with steps like Plan, Organise, Control, Lead, Staff, etc.
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DefinitionTotal Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes.
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ExplanationTQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.
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Evolution of quality Era
1900 1920 1940 1960 1980 1990 2000
Craftsman
Foreman
Inspection
SQC
TQC
TQM
TQC &CWQC
Evolution
Years
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Evolution of quality –Means & Focus1975 1980 1985 1990 1995 2000
Operation Customers Innovations
Quality ofWork life
QualityCircle
Productivity
EmployeeInvolvement
Quality
EmployeesEmpowerment
Total Quality
Self Directed Teams
TQC/TQM
Self Directed/Managed
Teams
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Kano’s Model
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Umbrella Model of TQM
SPC
JITTEI
Kaizen
QualityAssurance
Problem-Solving tools
CustomerSatisfaction
Taguchi Methods
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Basic Approach
A committed and involved management to provide long-term top - to - bottom organizational support.
An unwavering focus on the customer, both internally and externally.
Effective involvement and utilization of the entire work force.
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Basic Approach
Continuous improvement of the business and production process.
Treating supplier as partners.
Establish performance measures
for the processes.
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New and Old Cultures
Quality Element TQM
Definition -Product Customer
Priorities -Service &Cost Quality
Decisions- Short Long
Emphasis- Detection Prevention
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New and Old Cultures Errors- Operations System Responsibility- QC Every Body Problem
Solving - Managers Teams Procurement- Price Partners/JIT Manager’s Role- Plan Delegate
Assign Coach
Enforce Mentor
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Real Life
TQM has being implemented in TVS Group.
Boeing Aircraft
Reliance
Tata L & T HMT ITI
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Guru’s of TQM Walter.A.Shewhart -TQC &PDSA W.Edwards Deming- 14 Points &
PDCA Joseph.M.Juran-Juran’s Trilogy
A.Feiganbaum-Customer requirement,CWQC,Employee
Involvement, TQC.
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Guru’s of TQM
Kaoru Ishikawa-Disciple of Juran & Feigenbaum. TQC in Japan, SPC, Cause &Effect Diagram,QC.
Philips.B.Crosby. Four Absolutes-Quality-Req, Prevention of NC,Zero Defects & Measure of NC.
Taguchi.G-Loss Function.
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Definitions ISO 9000:2000
Quality is the degree to which a set of inherent characteristics fullfils requirements.
Quantified
Q=P/E P-Performance
E-Expectations Joseph M. Juran Quality is fitness for
use or purpose
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Definitions Philips B
Quality is Conformance to requirements
W.Edwards Deming A predictable degree of uniformity and dependability at low cost and suited to market
Bill Conway**** Development,manufacture,administrationAnd distribution of consistently low cost and products and services that customers need and want.
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Dimensions of Quality
Product- TVPerformance - Primary Characteristics,such as brightness
Features –Secondary Characteristics,Remote Control
Conformance-Meeting Specifications or Standards
Reliability –Consistency of Performance over time-fail
Durability- Useful life ,include Repair.Service
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Dimensions of QualityDurability- Useful life ,include repair.
Service-Resolution of problems,ease of repair.
Response- Human relations with Customers.
Aesthetics-Sensory Features.
Reputation- Past performance, Company Image.
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Quality Cost Prevention Cost –Planning, Document, Control,
Training Appraisal Cost –Inspection & Tests, Installation,
Calibration, M/c Depreciation, Reports & Rejects. Internal Failure Cost – Scraps, Repair Rework,
Design Changes, Defect Failure Analysis, Retests & ReInspection, Downgrading, Down Time.
External Failure Cost – Complaints, Goodwill, Failures, Services & Replacement, Guarantee & Warranty, Compensation, Recall, Loss of Sales, Seconds Sales.
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Economics of Quality of Conformance
Internal & External Failure Cost
Prevention & Appraisal Cost
Optimum Total Cost
Total Cost
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Obstacles
Top management commitment
Changing Organization Culture
Improper planning
Continuous Training & Education
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ObstaclesOrganization Structure & Departments
Data’s & Facts For Effective Decisions
Internal & External Customers-Dissatisfaction
Empowerment & Teamwork
Continuous Improvement
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BenefitsImproved Quality
Employee Participation
Team Work
Internal & External Customer Satisfaction
Productivity ,Communication
Profitability & Market Share
Excellence
An olympic gold Nobel Prize The state of quality of excelling
or being exceptionally good or of extreme merit
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Companies which Excelled
Toyota Nippon Honda Sony Telco L&T Maruti Hero Honda
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HOW?
Provide outstanding products and services to customers?
Bestow unparalleled benefits on employees
Did they dominate competitors? Did their annual reports
consistently display record growth and earnings?
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Individuals not organisations create excellence
Lead others along path of excellence
Cultivate others who will later assume control
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Foundations of Excellence
Strategic thinking(ST) and culture building(CB)
Strategy is that approach to business that stresses the impact of competitive advantage
Culture is careful attention to organizational and peoples need
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To unite strategy and culture – develop a vision of the firms functions
To implement the strategy to make that vision a reality, nurture a corporate culture that is motivated by and dedicated to the vision
Eg: Toyota : GM
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Transform mediocre organisation into excellent ones
Convert crisis into opportunity Shape vision into utility Executives- think strategically Build cultures creatively- not
both simutaneously
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ST and CB- How Do they Work?
ST- satisfy customer needs Gain sustainable advantage over competitors Capitalise on company strengths CB- instill collective commitment ot a common
purpose foster distinctive competence among employees Establish consistency- helps attract,
keep,develop leaders at all levels
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NEW AGE ATTITUDE Six fundamental skill 1. set goals, policies & procedures 2. organise, motivate and control people 3. analyse situations, formulate strategic and
operational plans 4. respond to change through new strategies and
reorganisation 5. implement change by issuing new policies and
procedures 6. get results, growth, profitability and return on
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New Skills
Creative insight Sensitvity Vision Versatility Focus Patience
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Why Japancould do it, India couldn’t
Quest for excellence Dedication to work principles Helped establish a culture of excellence No special advantage for Japanese- they simply
examine a process of doing a jo, then try to improve it
Quality is both thinking why something is done, why it is done this way, then thinking differently to improve it-Toyota
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Factors of Excellencerecap…….
Strategy and culture are foundations of excellence
To build excellent organisational culture, six new age skills-creative insight, sensitivity, vision, focus and patience needed
creativity and innovation are other essential features of excellent organisations
19-10-2012
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Recap….
Excellent organisations are adaptive to innovative changes
Recognition and reward are people oriented in these org.
Team work and group activities MBWA with employees and customers Believe in Quality Excellent org. are TQM oriented
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Poor Quality leads to… Low customer satisfaction and low market share Low productivity, revenue and profit Low morale of work force More rework, material and labour costs High process bottlenecks, delay in product
shipment High analysis and repair costs high material wastage and scrap high inspection costs
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What is Quality?
Quality, cost and Productivity- fundamental concerns of management world wide
Q of products and services Org. which manage productivity
and q on a continuous basis able to compete in the long run
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New concept of quality calls for….
Well designed products with functional perfection- right the first time
Prompt satisfaction of customers expectation Excellence in service absolute empathy with customers Customer satisfaction---- delight
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Evolution of Quality……
Developed from operators inspection(1900) to verification by supervisors (1920)
QC departments and 100% inspection (1940) SQC(1960) Quality circles (1980) TQM,Q-management systems(1990)
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Evolution of quality –Means & Focus1975 1980 1985 1990 1995 2000
Operation Customers Innovations
Quality ofWork life
QualityCircle
Productivity
EmployeeInvolvement
Quality
EmployeesEmpowerment
Total Quality
Self Directed Teams
TQC/TQM
Self Directed/Managed
Teams
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Evolution of quality Era
1900 1920 1940 1960 1980 1990 2000
Craftsman
Foreman
Inspection
SQC
TQC
TQM
TQC
Evolution
Years
Why company put effort to improve Quality…..Company Quality Cost Productivity
Customers Quality Price After sales service
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Definitions of Quality Quality is fitness for use or purpose- Joseph
M.Juran Quality is Conformance to requirements- Philip
B.Crosby
A predictable degree of uniformity and dependability at low cost and suited to market-W.Edwards Deming
The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs of the customers -ISO8420:Quality Vocabulary
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New definition of Quality… Little “q”- old thinking- Q is about products, its
technical, for inspectors, led by experts, good quality is of high grade, quality is about control
Big “Q”- New thinking-Q is about organisations,q ia strategic, q is for every one, is led by management, q is appropriate grade
About continuous improvement, quality culture emphasis on customer requirement at affordable price
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Good quality process changes the way things are done by……
Driving business from customer needs Setting a clear vision Utilise contributions of all employees Managing well beyond company boundaries Managing processes to their optimal capability partnering with customers and suppliers Developing workers to manage and managers to lead break down hierarchy and functional divisions Faster, leaner and more responsive to market opportunities Integrate all above for competitive advantage
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Quality is not magic…. Relationship to be established between cost and
productivity.. Quality cannot do things like… Pull new customers out of the hat Vanish away regretted decisions Trick customers Solve all problems overnight Transform difficult people into angels Manage the business for us
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Symptoms of non quality business.. Complaints- irate customers Wasted time Frustration- time wasted in rework and repair Hassle- always fires to put out Confusion- no one seems to know what is going on Overload- you always have too much to do Underload – your staff dump their problems on your
desk Neglect- no one wants to hear your problems
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TQM PHILOSOPHY
TQM – a characteristic of most successful business world over
Changing demands of customers Penetration of Asian tigers Stringent cost management Quality and reliability overriding factors Customer specifications Speed and dependability of service and
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TQM and Indian Scriptures
TQM has roots in ancient Indian scriptures Total meaning 100% is whole space or advaita Quality will pull down boundary which Dharma
gives the permission to achieve Karma and purushartha- management- what
one must perform to get the needed results West only discovers what the East already
knows
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From the Vedas- Profit is compensation for service to society Companies exist to satisfy the needs of the people Every person has immense potential(Aham
Brahamasmi) My customer is not different from me(Advaita) The world is my house(Vasudev kutumbakam) Hence covers all all TQM aspects like social cost
benefit,HRD,customer focus and globalisation
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Failed attempts to implement TQM………….
Lack of commitment from senior management Inadequate planning Inability to change Failure to identify and establish customer needs Failure to progress beyond registration to quality
systems standard-ISO-9000
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ISO-9000 and TQMISO9000 TQM
Not necessarily customer focused Definitely customer focused
Not integrated with corporate strategy Integral to company strategy
Technical systems and procedures focused
Philosophy, techniques, concepts and tools focused
Employee involvement not necessary Emphasis on employee involvement and empowerment
No focus on continuous improvement in ISO 9000
Continuous improvement and TQM is a never ending journey
Quality department responsible for quality
Every one is responsible
Three step maxim of ISO-1. document what you do 2. do only what you document 3. demo that u have done it with documentary proof
Customer satisfaction and economic costs are TQMs two distinguishing features
ISO is a technical and physical systems standards
TQM is a philosophy – approach is behavioural and human
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TQM can be conceptualised into the following three process….
Quality Process for understanding who the customers are, what are his/ her needs and taking steps to completely satisfy the needs of this customer
Management process for continuous improvement to keep pace with changing requirements, competitive environments and technological advances
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People Process -it is initiating and maintaining theTQM. It is carried out through involvement of all employees on the basis of three values, intellectual honesty, self control and respect for others.
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Total Quality Activities
Supplier development Supplier assessment Suplier improvement Supplier partnership
Process development Process control Process improvement Process re-engineering
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Policy deployment Leadership and culture Quality systems Measurement and
assessment
People development
Teamwork and involvement
Training and education Empowerment and
recognition
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Customer focus Customer requirements Customer satisfaction Customer loyalty
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Three Steps to TQM
Understand six basic concepts underlying all total quality success
Address six management elements that must be integrated into practices and systems of your managers
Review and plan six stages of converting from the existing situation to the launch of these new methods
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Six key concepts…
Customers (external and internal ) Never ending improvement Control of business process Upstream preventive management Ongoing preventive action Leadership and team work management
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Six key elements of TQM Communication of missions, aims and
objectives by performance target, ongoing communication and review mechanism
Collection and collation of external intelligence- from market, competitors, customers, environment and society
Measurement of internal performance- of company, department, group, individual, process and product/service as measured by quality costs, process management, auditing and statistical process control
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Identification of improvement opportunities-by formal and informal systems, no blame culture, prioritisation of ideas, allocation of resourses and involvement of all ( cross dept., defined roles, individuals and meeting agendas
Implementation of changes- leadership style, team building, project management, team working, problem solving , monitoring and process management
Steering and coordination of total quality programmes- by prioritisation, review recognition, display of performance by news letters, charts etc….
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Six Key Stages….. Statement of intent-executive statement of the
intention to evaluate the possible benefits of the new approach to bussiness
Awareness- Directors, executives and senior managementtrained in the concepts, tools and techniques of TQ
Diagnosis-identification and quantification of the possible benefits of the TQ approach to business- individual reviews carried out eg..external customer satisfaction,staff attitudes, morales, internal and external communication, market standing, interfaces with suppliers…
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Initial Strategy- the diagnosis indicates to the senior management-a) what the organisation does best/worst.b) major improvement opportunities c) initial bases of performance .d) a basis for planning the way forward
Management concensus- a major executive and senior management forum evaluate and accept the quantification of the need for change(stage 3) and proposals for strategy and management frame work(stage4) – could be as a straight forward board meeting or an offsite conference
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Launch- trg and communication cascade down to achieve management and staff commitment in organisation- establish awareness in each employee of TQM concepts- know their aims, objectives, strategies and management framework
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Achieving TQM…..
Understand the six concepts Address the six management elements Launch the six stage plan
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TQM Models
Fuji Xerox model-TQM a simple blend of charisma and process discipline
Continuous harnessing of the three forces: vision, sensitivity and technology
Fountain head for Xerox wide leadership through quality movement
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Norman Rickad Model Fishbone frame work showing six key enablers
that constituted TQM implementation at Modi Xerox
Training, quality network, role modeling or senior management, recognition and rewards, communication, standards and measures
This leads to two priorities- Customer satisfaction and employee satisfaction
four business results- revenue, profit, return on assets and market share
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Eicher Group model
Three Legged Stool model Elements of TQM constitutes the three legs SPC JIT Total employee involvement-leader ship,
teamwork, people satisfaction through empowerment
Also implemented by Toyota
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Operational Model
Uses the three elements- total participation, problem solving tools, management support and commitment at three angles of a triangle
centre of the triangle shows the Quality Management systems
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Diamond Model
Four characteristics of TQM Totality Documentation Foundation improvements
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Umbrella model(Atkinson, 1990)
Under the umbrella all elements of TQM- JIT, TEI,SPC, Kaizen, customer satisfaction, quality assurance, Taguchi methods, quality circles are included
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Umbrella Model of TQM
SPC
JITTEI
Kaizen
QualityAssurance
Problem-Solving tools
CustomerSatisfaction
Taguchi Methods
Accelerated Business Improvement Model ( Smith, 1995) smith model comprises of belief, strategy,
leadership, customer satisfaction, process, people, discipline, energy and change.
Keeps belief in the centre and other elements are surrounded by energy, change and accelerated business improvement
Lots of energy is needed to bring a change for implementing other elements of the model
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Kanos Model
Dr. Noriaki Kano, Professor of Tokyo university and member, Deming prize committee
Sound intrinsic technology and skills to have strong company processes
TQM foundation should have motivation for quality
On these foundation stands the three pillars of TQM- promotional vehicle, technology, concepts
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Kanos… Basic concepts- customer first, management by
facts, focus on prevention, employee involvement through respect and cross functional management
Promotional vehicles- policy management, daily management, team activity , vendor quality
Basic technology forms the third pillar
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Kano’s Model
Westing house Model of TQM Three major dimensions: Requirements,
Measurements and imperatives Requirements: customer satisfaction,
stakeholder values, employee satisfaction and public approval
Measures: Value/price ratios, value cost ratios and error free performance
Imperatives: customer orientation, HR excellence, product- process leadership and management leadership
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Itoh Model
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This model shows portion of time spent by different management levels on different activities
Major activities shown are routine or maintenance, improvement and breakthrough development activities
Top management spends more time on breakthrough and development activities
Lower management spends more time on routine and development activities
Improvement activities are equally distributed among all levels of management
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Peratac TQM Model Three typical steps: Understand six key concepts Address six management elements Launch six stage plan
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Kehoe’s Model
Dennis F. Kehoe (1996)- dimensions of quality management as people, techniques and systems
These dimensions to be supported by training and understanding, teamwork, communications, improvement and commitment
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Oakland Model for TQM
Defines TQM as a pyramid with 5 distinct components:
1. Management commitment: leading and introducing change has to come from senior management team
2. Customer supplier chains: This is at the heart of the Oakland pyramid. Reflects process ownership, process management, and process improvement
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3.Systems: documented set of procedures and standards of doing things right, first time and every time
4. SPC tools: need to continuously measure and control conformance to customer requirements and agreed standards. They help to quickly correct defective measssures and keep performance on track
5. Team work: A culture based on continuous improvement has to be cultivated, encouraged and implemented in the organisation
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Building Blocks Model
Proposed by Zairi(1991) Looks at TQM from three levels TQM depends on various building blocks which
together determines the strength and safety/security of the organisation
Weakness in one area will have a disastrous effect on the TQM programme
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Three levels… 1. Total quality- the Foundation: ethos of TQM is
internal improvement, introduction of a change, flexibility and adaptability. Heart of the TQM is the human creativity machine
2. Total quality- the Pillars: the pillars of TQM are the means by which human creativity inputs are channelled through and converted into outputs which benefit end customer. Pillars are the quality systems like procedures, documentation, recording and analysis, workplace design, ergonomics, tech innovation, strength of customer supply chain
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Total quality – the Top: similar to roof of building ; most important part. Shields the organisation from external adverse factors. This part has to be weather proof (not affected by adverse changes in market place) and should not deteriorate( adapt to new market patterns)
includes- leadership, quality planning, vision for world class competitiveness
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