Introduction to TQM

TOTAL QUALITY MANAGEMENT

UNIT 1 - INTRODUCTION

TOPICS :

Introduction

Need for Quality

Evolution of Quality

Definition of Quality

Dimensions of manufacturing and service quality

Basic concepts of TQM

Definition of TQM

TQM Framework

Contributions of Deming, Juran and Crosby

Barriers to TQM.

INTRODUCTION

Quality is important for the development of country‟s economy.

Our ultimate objective is to make, “ Made in India” label a symbol of quality.

The first requirement to make made in India label a symbol of Quality is the spread of awareness of quality, particularly the TQM, and then making Indian Companies more competitive in the world market.

For any movement, it is essential that people feel an urgent need for it. Here people should understand the need for competitiveness and also understand how quality initiatives would lead to improved competitiveness.

The reputation of Indian trade and industry must be such that people may feel at ease while dealing with them.

International market operators must feel, if I am dealing with

an Indian, I have nothing to fear”.

This is not a just a matter of quality. It involves a high level

of honesty and integrity. It means one has to be true to one‟s

word.

In a country in which people laid down their lives for

keeping their word, this should have been only natural.

Unfortunately, there have been instances by saying one thing

and doing another.

Instances of sending good samples by the Indian vendors for

approval and supplying inferior have been too frequent.

The bad reputation earned by such an unethical behavior of a

few Indians has to be erased from the minds of those who

matter.

This is not an easy task. Building a good reputation takes a

long time; destroying it is easy.

Howsoever difficult it is, it has to be done.

This needs an attitude of saying what one does and doing what one has said.

It requires transparency in one‟s dealings and strict adherence to agreed term of the contract and agreed standards of quality at all costs.

If this is done deal after deal, day after day, month after month, year after year, there is no reason why reputation of the country as a reliable supplier of quality products and services cannot be established.

We must remember that the reputation of Japan in 1940‟s was even worse than the current reputation of India.

If they could transform, we too should be able to do it.

INDIAN SCENARIO

• The problem of low volume, old technology and resulting

poor appearances and finish of the products afflicts many

industries in the country.

•High inflation in India has forced most industries to find

ways and means to contain costs to keep the level of price.

•We have failed to see our customer as some one who pays

for our products or services.

•The pro – labour policies of the Government are responsible

to great extent for the attitude of the employees.

•Poor infrastructural services also have an impact on the

quality of products. However its impact on the country‟s

image is much greater.

INDIAN SCENARIO

• While services are constantly improving everywhere in the

world, they are deteriorating in India.

• Even worse is our getting used to such poor services. Unless

the customer demands it, he will not get quality products and

services.

• Tolerances of poor quality leads to still poorer quality.

• Even worse than these poor services is the desire on the part

of most Indians to make a quick unjustified profit.

GET RICH SOON CULTURE

• The intense desire to become rich quickly without making

commensurate effort is at the root of many of our ills.

• Thousands of people in every city in this country are

engaged in non-productive activity of cheating innocent

citizens.

• The desire to get rich without effort has created a totally

wrong culture in the country.

• It is considered smart to make money without effort and

stupid to ward hard for an honest income.

• Instead of creating wealth, everyone is working for its

redistribution for one‟s own benefit.

GET RICH SOON CULTURE

• A worker wants more wages for less work; a Manager wants

higher salary, more perquisites, bigger office, thicker carpet,

bigger car and more leisure.

• Each one is trying for a bigger slice of the small cake.

• Hardly anyone wants to do the difficult task of making the

higher cake.

• The desire to acquire more than one‟s fair share is also at the

root of corruption and nepotism so prevalent in the country.

THE FUTURE To improve our balance of payment situation, we need to

keep a tight control on the out flow (debt servicing,

Repatriation of profits) and cost of imports and try to

increase the inflow (by export).

Export in an area in which everyone in the country should

strive.

It should be the high priority for all of us.

Anyone working in any industry can consider how he can

make the product more acceptable in the international

market.

Rest can think how he can do his job better resulting in

improvement.

THE FUTURE

All this will go towards improving the image of the country

a producer of quality goods and services, which will help

our export effort.

We need to work hard. We need to develop a sense of unity,

fiscal discipline, maturity and political to improve the

balance of payment situation.

International market place is a highly competitive field.

To succeed in such a competitive business environment

company has to achieve world – class competitiveness.

What really differentiates a world-class company from an

average company is the quality of service it provides to its

customers.

World-class competitiveness is a need of the day for the

Indian Industries.

NEED FOR QUALITY

• In the present context of liberalisation and globalisation of

economy, Indian companies face a lot of challenges.

• The quality consciousness among consumers have grown up.

• The expectations of consumers of quality performance have

become exceedingly high.

• The Indian industries are facing severe competition and the

governments economic policy made them to realise that the

secret of survival is quality.

• The business units in India are ever increasingly forced to

achieve world-class manufacturing capabilities in order to

compete, and in many cases, to survive in the market.

• Quality has now acquired new dimensions aand search for

quality function is on.

NEED FOR QUALITY

A survey conducted by NPC (Singh 1991) revealed that

quality improvement was considered vital to strengthen the

competitiveness of Indian business and industry.

One of the means to achieve world-class manufacturing

capability is through the practices of TQM.

QUALITY DEFINED :

►Quality is fitness for use

Juran

►Quality means conformance to requirements

Crosby

►A predictable degree of uniformity and dependability at

low cost and suited to the market.

Deming

►Quality means best for the actual use and price

Feignbaum

►Quality is the totality of features and characteristics which

bear upon its ability and satisfy stated or implied need.

BSI

QUALITY DEFINED

•Quality is neither mind nor matter, but a third entity

independent of two even though quality cannot be defined,

you know if what it is. Pirsig

• The loss imparted to society from the time the product is

shipped Taguchi

• If the customer believes that a product is of poor quality the

product is in fact of poor quality Taylor

•Doing right things and doing things right Scholter

• Doing what you have agreed with the customer and knowing

you have not done what was agreed before the customer is

affected A.Brown

Dimensions of Manufacturing

Quality

Performance : Product‟s primary

operating characteristics.

Features: Secondary characteristics

that supplement the products basic

functioning.

Reliability: the probability of a

Product‟s surviving over a specified

period of time under stated conditions

of use.

Dimensions of Manufacturing

Quality Durability: The amount of use gets from a

product before it physically deteriorates or

until replacement is preferable.

Serviceability: The ability to repair a

product quickly and easily.

Aesthetics: How a product looks, feels,

tastes or smells.

Perceived Quality: Subjective assessment

resulting from image Advertising or brand

name.

Dimensions of Service Quality

Time: How much time must a customer

wait?

Timeliness: Will a service be performed

when promised?

Completeness: Are all items in the order

included?

Courtesy: Do front-line employees greet

each customer cheerfully and politely?

Dimensions of Service Quality

Consistency: Are services delivered in the

same fashion for every customer and every

time for the same customer?

Accessibility and Convenience: Is the

service easy to obtain?

Accuracy: Are the services performed right

the first time?

Responsiveness: Can the service personnel

react quickly and resolve unexpected

problems?

BASIC CONCEPTS OF TQM A committed and involved management to provide

long-term top-to-bottom organisational support.

An unwavering focus on the customer, both

internally and externally.

Effective involvement and utilisation of the entire

work force.

Continuous improvement of the business and

production process.

Treating suppliers as partners.

Establish performance measures for the processes.

DEFINING TOTAL QUALITY

MANAGEMENT ►Total quality management is an integrative philosophy of

management for continuously improving the quality of

products and processes to achieve customer satisfaction.

►TQM means a set of quality principles and values: to build

an organisational structure that supports effective quality

improvement initiatives, and to develop and implement a

comprehensive set of quality concepts, tools and

practices.(Harerh Guruani,1999)

►TQM is an effective system of integrating the quality

development, quality maintenance and quality improvement

efforts of various groups in an organisation so as to enable

production and service at the most economial level which

allow for full customer satisfaction (Feighnbaum,1980)


MANAGEMENT ►Total Quality Management refers to a comprehensive

approach to management which involves implementing

strategies and organizational systems that continuously

improve quality, reduce cost and ensure the consistent, on-

time delivery of products and services in order to provide

superior value to the customers(Bounds, et.al,1994)

►A comprehensive way of working throughout the

organization which allows all employees as individuals and

as teams to add value and satisfy the needs of the customer.

►A business-wide customer driven strategy of change which

moves us progressively to an environment where a steady

and continuous improvement of everything we do is a way

of life.


MANAGEMENT

►TQM is both a philosophy and a set of guiding principles

that represent the foundation of a continuously improving

organisation. TQM is the application of quantitative methods

and human resources to improve the material and service

supplied to an organisation and the degree to which the needs

of the customer are met now and in the future.

TQM integrates fundamental management techniques,

existing improvement efforts, and technical tools under a

disciplined approach focussed on continuous

improvements.(Elshenavvy & Carthy, 1992)

►TQM is a total operational philosophy which covers every

aspect of everything we do. (Jeanes, 1990)

►TQM means, “Continouously improving processes and

performance involving people to delight customers.(Binney

1992)

What is TQM? ►By Total we mean

All areas and functions in an organisation

All activities

All employees

All time i.e. Always

►By Quality we mean

Product or service that totally satisfy the customers

need and expectations in every respect on a continuous basis

►By Management we implied:

Quality does not happen on it‟s own, it requires to be

planned and managed.

Quality is a management function, though everybody

in an organisation is responsible for it. It therefore needs a

systematic approach.

►TQM is apeople intensive activity therefore, it requires suitable

management strategies like

visible upper management commitment

leadership to demonstrate initiatives for quality

System to create more quality leaders

System for removal of any road blocks or barriers to quality

(NTPC)

TQM is intended to achieve business excellence:

The overall way of working that results in balanced

stakeholder (customers, employees, society, share holders)

satisfaction – and so increasing the probability of long term success

as a business( Raisbeck, 1998)

Business Excellence is defined and achieved through 4 P‟s

Excellent people, who establish

Excellent partnership(with suppliers, customers and society)

in order to achieve

Excellent processes(key business processes and

management process) to produce.

Excellent products, which are able to delight the customers.

(J.DAHLGAARDASUMI PARK DAHLGAARD,1999)

TOTAL QUALITY MANAGEMENT •TQM is a management philosphy to guide a process change

•TQM is concerned with the integration of all the efforts of an

organisation towards QI, QP and QM to meet full customer

satisfaction.

•Total Quality has developed into the most important competitive

weapon. Quality is no more a control function. It is a company‟s

strategy.

•TQM is an ongoing company-wide effort, where the pursuit of

quality is deeply, ingrained in the organisational culture and

operations.

•TQM changes the culture and values, which are both visible and

invisible by a continuous improvement process.

•TQM is regarded as long-term intervention.

•Managerial values embedded in a cultural ethos do affect the

organisation leadership, goals and strategies. While trying to shape a

company into Total Quality, the traditional values unique to that

company should be intelligently harnessed and integrated to build a

congenial work environment to motivate people for high quality and

productivity.


•TQM involves the building of quality into products / services

and processes and making quality a concern and responsibility

of everyone in the organisation.

•Major changes in any organisation do not just happen by

change but are the result of planned management effort.

• Introduction of TQM is concerned with major changes in the

culture and management style. It requires a great deal of

commitment and planning.

•More than 80% initiatives on TQM will fail if they do not

have the backing of the Top Management Team. TQM cannot

change an organisation overnight and it cannot address the

neglect of years.

•The leadership issue is critical for a successful TQM drive.

•TQM consider supplier as part of the organisation processes.


•TQM strives towards the achievement of the quality in

everything one does.

•It encompasses all departments and all functions in the

company.

•It aims at standardising and improving all process in the

organisation.

•There are no quick fixes

•There are no one Quality Management Technique and / or

tool which is panacea for all quality ills and is more

important than another.

•There are no short-cuts.

•There are no ready-made packages, which can be plugged

into guarantee success.

•It requires patience, tenacity and considerable commitment

from people at every level on the organisation.

TQM FRAMEWORK

DEMING‟S PHILOSOPHY Be constant and purposeful in improving products and

services. Allocate resources to provide for long-term

needs rather than short-term profitability. Aim to be

competitive, to stay in business and to provide jobs.

Adopt the new philosophy we are in a new economic age

begun in Japan commonly accepted delays, mistakes,

defective workmanship can no longer be tolerated, a

transformation of western management approach is

needed to stop the downward spiral of decline in industry.

Stop depending on mass inspection as a way to achieve

quality, build quality into the product in the first place.

Demand statistical evidence of quality being built into

manufacturing and purchasing functions.

DEMING‟S PHILOSOPHY (contd.,)

End the practice of awarding business on the

basis of price alone. Instead, require other

meaningful measures of quality beyond price.

Work to minimise total cost not just initial cost.

Move towards a single supplier for any one item

on a long-term relationship of loyalty and trust.

Make sure purchasing managers realise they have

a new job to do.

Break down barriers between departments people

in research, design, sales and production should

work as a team to deal effectively with problems

with products and services.


Eliminate numerical goals, slogans, exhortions

and production targets for the workforce since

most quality problems have to do with processes

and systems which are created by managers and

are beyond the power of the employees. Such

exhortions are simply a source of aggravation.

Eliminate work standards that prescribe

numerical quotas for both the workforce and

managers. In their place put useful aids and

supportive supervision. Use statistical methods

for continuous improvement of quality and

productivity.


Remove barriers that impede hourly paid workers

and managers from enjoying pride of

workmanship. Abolish performance appraisal

and management by objectives.

Institute vigorous programmes of education and

training. People should be improved with

ongoing education and self-improvement.

Competitive advantage is always rooted in

knowledge.

Find problems. It is management‟s job to

improve the system continually, make better

every process for planning, production and

service to improve quality, increase productivity

and decrease costs.

DEMING‟S PHILOSOPHY (contd.,) Institute modern methods of on-the job training. Include

management in the training to make better use of all

employees. New skills are required to keep up with

changes in material, methods, product design, machinery,

techniques and service.

Set up new ways of supervising production workers.

Front line supervisors should help people produce quality

products, forgetting about the number‟s game.

Improvement of quality will automatically improve

productivity. Management should initiate action in

response to reports of inherited defects, maintenance

needs, bad tools, confused operational definitions and

other things that lead to poor quality.


Drive out fear, so that every one may work

effectively for the company. Encourage

top-down and bottom-up communications.

Structure top management to empower

them to achieve the above thirteen points.

Push everyday to progress the thirteen

proceeding points and take action to make

the total transformation happens.

Deadly Diseases

Lack of constancy

Pre occupation with short-term profits

Performance appraisals

Managerial job mobility

Reliance on only visible figures

Joseph M.Juran (10 points)

Create awareness of the need and

opportunity for quality improvement

Set goals for continuous improvement

Build an organisation to achieve goals by

establish a quality council, identifying

problems, selecting a project, appointing

teams and choosing facilities

Give everyone training

Carry out projects to solve problems

Joseph M.Juran (10 points)

Report progress

Show recognition.

Communicate results.

Keep a record of successes

Incorporate annual improvements into the

company‟s regular systems and processes

and thereby maintain momentum.

Juran Trilogy

Quality Planning

Quality Control

Quality improvement

Figure 1– Juran Trilogy

Juran Trilogy

It can be seen from the fig 1. that the starting point for trilogy is the quality planning.

After the planning, the process is turned over to the operators whose job is to run the process at optimal effectiveness.

But due to deficiencies in the original planning, the process runs at a high level of chronic waste that has been planned into the process in so for as the planning process failed to eliminate it.

Because the waste is inherent in the process, the operators are unable to get rid of it. Instead they set up a quality control system to keep it from getting worse.

Juran Trilogy

If it does gets worse, a fire fighting team sorts out

the cause of this abnormal variation. Once the

cause is established, a solution methodology is

developed and applied to remove the cause.

The quality control team not only maintains the

quality level but also improve the quality by

controlling the variation in the process.

Thus the control limits reach a new level of

operation. At this stage trilogy repeats the

process for continuous improvement.

Juran Trilogy

Juran draws a fine parallel between his

trilogy processes and financial processes in

which quality planning equates to

budgeting; quality control to cost control or

expenditure control and quality

improvement to cost reduction or profit

improvement.

The end results of Juran‟s trilogy processes

are shown in Table 1.

TRILOGY PROCESS END RESULT

Quality Planning: The

process for preparing to meet

quality goals

A process capable of meeting

quality goals under operating

conditions

Quality Control: The process

for making quality goals

during operations.

Conduct of operations in

accordance with the quality

plan.

Quality improvement: The

process for breaking through

to unprecedented levels of

performance.

Conduct of operations at

levels of quality distinct

superior to planning

performance.

Table 1 - Juran Trilogy Processes

Contributions of Philip B Crosby

Crosby lists four new essentials of quality management which he calls „The absolutes‟:

Quality is defined as conformance to requirements, not as goodness.

Quality is achieved by prevention not appraisal.

The quality performance standard is zero defects.

Quality is measured by the price of non-conformance, not by indexes.

CROSBY’S FOURTEEN POINTS

Step 1: Management Commitment:

Top management must become convinced of the

need for quality improvement and must make its

commitment clear to the entire company. This

should be accompanied by a written quality

policy, stating that each person is expected to

perform exactly like the requirements, or cause

the requirement to be officially changed to what

we and the customer really need.


Step 2: Quality improvement Team:

Management must form a team by

departmental heads to oversee quality

improvement. The team‟s role is to see that

needed actions take place in its department

and in the company as a whole.


Step 3: Quality Measurement:

Quality measures that are appropriate to every activity must be established to identify area needing improvement. In accounting, for example, one measure might be the percentage of late reports; in engineering, the accuracy of drawings; in purchasing, rejections due to incomplete descriptions; in plant engineering, time lost because of equipment failures.


Step 4: Cost of Quality Evaluation:

The quality department should make an

estimate of the costs of quality to identify areas

where quality improvements would be profitable.

Step 5: Quality Awareness:

Quality awareness must be raised among

employees. They must understand the importance

of product conformance and the costs of non-

conformance. These messages should be carried by

supervisors and through such media as films,

booklets, and posters.


Step 6: Corrective action:

Opportunities for correction are generated by

steps 3 and 4, as well as by discussions among

employees. These ideas should be brought to the

supervisory level and resolved there, if possible.

They should be pushed up further if that is

necessary to get action.

Step 7: Zero defects planning:

An ad-hoc defects committee should be

formed from members of quality improvement

team. This committee should start planning a zero

defects programme appropriate to the company

and its culture.

CROSBY’S FOURTEEN POINTS Step 8: Supervisory Training:

Early in the process, all levels of management must

be trained to implement their part of the quality

improvement programme.

Step 9: Zero defects Day:

A zero defects day should be scheduled to signal to

employees that the company has a new performance

standard.

Step 10: Goal Setting:

To turn commitments into action, individuals must

establish improvement goals for themselves and their

groups. Supervisors should meet with their people and

ask them to set goals that are specific and measurable.

Goal lines should be posted in each area and meetings

held to discuss progress.


Step 11: Errors cause Removal:

Employees should be encouraged to inform

management of any problems that prevent them from

performing error free work. Employees need not do

anything about these problems themselves; they should

simply report them. Reported problems must then be

acknowledged by management within 24 hours.

Step 12: Recognition:

Public, non-financial appreciation must be given to

those who meet their quality goals or perform

outstandingly.

CROSBY’S FOURTEEN

POINTS

Step 13: Quality Councils

Quality professionals and team chairpersons should meet regularly to share experiences, problems and ideas.

Step 14: Do It All Over Again

To emphasize the never ending process of quality, the programme (step 1-13) must be repeated. This renews the commitment of old employees and brings new ones into the process. No nonsense environment that reinforces again and again one basic theme: Zero defect management is possible.

Crosby’s Quality Management

Maturity Grid:

Crosby has developed management Grid incorporating measurement categories for various stages of quality implementation. In the first step the organization has to evaluate the current maturity level. To assess the level of maturity like uncertainty, Awaking, Enlightenment, Wisdom and Certainty, he has developed a management Grid which is as follows: Crosby‟s Quality Management Maturity Grid.doc

Crosby’s Quality Management Maturity Grid.doc

Crosby’s Quality Management Maturity Grid.doc

SYSTEM TOOLS

QI

TEAM

PROCESS

COMMITMENT

TQC

- MISSION

- CONT QUALITY

IMPROVEMENT

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SOLVING

SQC AN INTEGRATED TQM ACTION

MANAGEMENT

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* QUALITY PLANNING

* LEADERSHIP

* VISION

* CONTINUOUS IMPROVEMENT

* VALUE ADDITION

* EMPLOYEE INVOLVEMENT

QA PRODUCT

DEVELOP

BARRIERS TO TQM

•Lack of management commitment.

•Inability to change organizational Culture.

•Improper planning.

•Lack of continuous Training and Education.

•Incompatible Organizational Structure and Isolated

Individuals and Departments.

•Ineffective Measurement Techniques and Lack of Access to

data and Results.

•Paying Inadequate Attention to Internal and External

Customers.

•Inadequate Use of Empowerment and Teamwork.

•Failure to Continually Improve.

BENEFITS OF TQM

•Improvement of profitability by increased operational

efficiency.

•Cultural and Behavioral change

•Prevention of waste.

•Improvement of customer satisfaction.

•Maintaining or increasing market share.

•The achievement of product and business excellence.

•Releasing the organizations people potential.

•Improvement of product of service quality, product safety and

reliability.

•Minimization of loss to the individual, the company and the

community.

•Associated improvements in operational safety, occupational

health and the environment.

•Encouragement of each individual‟s personal improvement,

innovation and creativity.