Total quality management (TQM) & Six sigma

By Hukma Ram KherwaFood and Agri Business School, Hyderabad

Mobile No. +91-9912202562Email: - hkherwa@gmail.com

The concept of TQM and six sigma•Older conceptTQM

•New conceptSix Sigma

What is TQM?Total quality management or TQM is an

integrative philosophy of management for continuously improving the quality of products and processes.

TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. 

Cont…Total: - made up of the wholeQuality: - degree of excellence a product or

service providesManagement: - act, art or manner of

planning, controlling, directing,……Therefore, TQM is the art of managing the

whole to achieve excellence.In other words we can say “do the right

things right the first time, every time”.

The TQM system

•Continuous improvement

Objective

•Customer focus

•Process improvement

•Total involvement

Principles

•Leadership, Education & training, Communications, Measurement, Supportive structure, Rewards and recognition

Elements

Productivity and TQM• Quality can not be

improved without significant losses in productivity

Traditional view

• Improved quality leads to improved productivity

TQM view

Difference between TQM & Six sigmaThe main difference between Total quality

management and Six Sigma (a newer concept) is the approach. At its core, Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction.

In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work.

TQM Flow chart

Guidelines for TQM Total quality management transcends the product quality approach, involves everyone in

the organization, and encompasses its every function: administration, communications, distribution, manufacturing, marketing, planning, training, etc. There are many guidelines of total quality management around to create the TQM diagrams. Though the different organization has the different total quality management criterion, in general guideline of total quality management should contain the following items.

TQM is a customer focused approach It is company wide strategy and involves everyone in the organization Aims at satisfying the customer or delighting them Provides best quality product and satisfy them in a cost effective manner Fundamental changes in basic beliefs and practices Prevention of defects is the way and the target is zero defects Total quality management is methodical Provides meaningful measures of performance that guide the self-improvement efforts

of everyone involved

5 Principle of TQMProduce quality work the first timeFocus on the customerHave a strategic approach to improvementImprove continuously Encourage mutual respect and team work

TQM HistoryQM was started in 1987 and has recently

been reorganized into CCI (an acronym for Commitment to Continuous Improvement). The initiatives for their TQM process were obtained from their customers by using a simple questionnaire

Motorola Motorola has a successfully working TQM process. Motorola’s fundamental objective is Total Customer Satisfaction. They have won the Baldrige award and are corporate leaders in TQM.

Tools of TQMStatistical quality control: - The technique follows

sampling of activities in the process and sampling of final products. This process ensures maintaining standard of quality on the basis accepting sampling procedure.

Right first time: - Quality conscious at startBench marking: - Measuring and comparing an

organizational business process and practices against those of the best organization.

Out sourcing: - It is process of contracting out some function of an organization to out-side firms who can it cheaper and better.

Cont…ISO 9000 (International organization for

standard): - Which sets out the criteria for world quality management system. It covers products testing, employee training, record keeping, suppliers relation, repair policies and procedures.

Timing: Speed: - To survive and win. They can gain

competitive advantage by being better, smarter, and faster than their competitors at doing valuable things for their customers.

Objectives of the TQMTo enhanced quality of and productivityPromotes efficiency Encourage team workIncrease employee moral & motivationImprove open communication & human

relation empowering the employee.

Problem solving process in quality controlProblem identificationProblem prioritizationsProblem analysisSolution recommendationDecision by managementImplementation of decision making

What is six sigma?Six Sigma is a 

business management strategy, originally developed by Motorola in 1986.

Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.

A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million).

Why Six Sigma? Six Sigma impacts BOTTOM LINE (Profits) : 

 Six Sigma has generated bottom-line results for all types of organizations in hundreds of cases!  »Six Sigma drives STRATEGY execution: 

 Are you confident that the activities in your organization are properly prioritized and powerfully aligned with strategy? In today's demanding business environment, organizations need reliable management systems capable of aligning strategy and delivering breakthrough results.

 Six Sigma generates robust, FLEXIBLE business process: 

 Can you see how much opportunity for success is latent in every process in your business? Everyone knows that building competitive advantage requires consistently meeting and exceeding customer requirements for products, services, and prices.

 

Cont… Six Sigma Improves HUMAN PERFORMANCE across entire

organization: 

 Do you know how to get every individual in your organization focused on a common goal? Now that's a challenge in an organization of any size! Six Sigma provides companies with a common vehicle and language to frame business goals, focus organizational energy, and drive results. Its implementation involves building human capability with common approaches and tools to address business process issues.

  Six Sigma is highly SCALABLE:  Wondering how many Black Belts and Green Belts you need to be a "Six

Sigma company?" Better to focus on the business improvements you need most, and determine how many projects you can manage effectively. A focused set of projects is the key to achieving improved business results!

  Six Sigma is a low risk INVESTMENT: Think Six Sigma is too expensive or risky for your organization? Not when the training provided for building organizational capability is directly linked to real-time improvement projects!

5C’s driving market share

Methods DMAIC is used for projects aimed at

improving an existing business process.DMADV is used for projects aimed at creating

new product or process designs.DMAIC stand for Define, Measure, Analyze,

Improve and Control.DMADV stands for Define, Measure, Analyze,

Design detail and Verify the design.

DMAIC MethodDefine the problem, the voice of the customer,

and the project goals, specifically.Measure key aspects of the current process

and collect relevant data.Analyze the data to investigate and verify

cause-and-effect relationships.Improve or optimize the current process based

upon data analysis.Control the future state process to ensure that

any deviations from target are corrected before they result in defects

DMADV MethodDefine design goals that are consistent with customer

demands and the enterprise strategy.Measure and identify CTQs (characteristics that

are Critical To Quality), product capabilities, production process capability, and risks.

Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.

Design details, optimize the design, and plan for design verification. This phase may require simulations.

Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).

What is the aim of six sigma?Six sigma prime motive is to make the

company excel in the products and services.The concepts lies on the customer

satisfaction.It aims towards the best quality as far as

products and services are concerned.

About six sigma beltsThere are four levels in six sigma training. Yellow belt: - This is the lowest level of six sigma. The person

trained at this level holds the responsibility of smaller process improvement but is not in charge of a team under him.

Green belt: - Under this level person gets an opportunity to head and lead project.

Black belt: - At this level the person in charge needs to be responsible in six sigma implementation at all levels. He has the many team under him and he guides and train them to achieve the goals successfully. He leads the teams and providing the training to yellow and green belt.

Master black belt: - This is the highest level and expert is the mentor of black belts. He is the person who is responsible for implementation of six sigma processes at all levels.