TOTAL QUALITY MANAGEMENT Unit 1 INTRODUCTION Quality is in its essence a way of management of the organization. Quality is conformance to customer requirements. The requirements have many dimensions. The number of quality experts also called quality gurus contributed to the evolution of quality. The name itself is sufficient to describe everything but a bit more clarification will add to a base for the description. Total quality management is a management’s approach towards the quality, it can be in regard to products, customer satisfaction and employees satisfaction. The concept of TQM was developed by an American W. Edwards Deming and i.e. why it is called as Deming’s concept of TQM .He introduced this concept for improving the quality of various products and services. Earlier it was just related with the quality of products which a organization is producing but now other concepts like marketing, finance design, customer service has also joined the area. Which means that now good numbers of things are there to manage. TQM works on one belief that mistakes can be avoided and defects can be prevented. And management should believe in watching each and every step. TQM is now a day’s called as TPM (total productivity management) and an organization needs to consider ABCD for the effective application of TQM where A stands for accident cure , B stands for breakdown , C stands for cost reduction and D stands for damage. This policy of ABCD is in relation to product and if TQM needs to be introduced a positive attitude from the side of management and employees is required and then a collective effort will come up. TQM should give chance for unleashing employee’s creativity and potential. The aim of TQM is to reduce variations in quality of the products as well as in the working of whole organization. For the successful implementation of TQM, an organization must consider the commitment from all the level of organization. A concept of Six sigma is a part of TQM. It is a strategy developed by Motorola and it helps to detect the defects and to remove them. TQM talks about the satisfaction of customer, supplier, employees etc. and it requires continuous improvement. If the workers of an organization are efficiently working then their morale will go up. TQM works effectively if the organization works in a family manner. Here management is like a father, employees are the children and manager is like mother and as father and mother takes care for their home collectively the same way , management and managers are supposed to take care for their organization with the help of tool called TQM. Total quality management is called total because entire organization is involved, Quality means degree of excellence. And management in literal sense means getting things done by others. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work. The earlier introduced quality management concept is now taken over by Total quality management. To have effective TQM the first requirement is strong internal motivation and emotional involvement for implementation. So the concept of TQM talks about adopting the new policy, creating quality products, eliminate defects, estimate for breakdown, accidents etc . Hence TQM should be purpose driven so first the whole organization should be willing to accept the change then only TQM can actually affect the organization in a positive way. Total Quality Management (TQM) is an enhancement to the traditional way of doing business. Total - Made up of the whole. Quality - Degree of Excellence a Product or Service provides. Management - Art of handling, controlling, directing etc. TQM is the application of quantitative methods and human resources to improve all the processes within an organization and exceed CUSTOMER NEEDS now and in the future. NEED FOR QUALITY: The need for quality was felt, during World War II due to the unprecedented need for manufacture goods. From them on methodologies for assuring quality in products and services evolved continuously finally lead to TQM. One of the important issues that business has focused on in the last two decades is ―quality . The other issues are cost and delivery. Quality has been widely considered as a key element for success in business in the present competitive market. Quality refers to meeting the needs and expectations of customers. It is important to understand that quality is about more than a product simply working properly. Quality refers to certain standards and the ways and means by which those standards are achieved, maintained and improved. Quality is not just confined to products and services. It is a homogeneous element of any aspect of doing things with high degree of perfection. For example Business success depends on the quality decision making. EVOLUTION OF QUALITY GURUS OF TQM: SHEWHART - Control chart theory PDCA Cycle DEMING - Statistical Process Control JURAN - Concepts of SHEWHART Return on Investment (ROI) FEIGANBAUM - Total Quality Control Management involvement Employee involvement Company wide quality control ISHIKAWA - Cause and Effect Diagram Quality Circle concept CROSBY - - “Quality is Free” Conformance to requirements TAGUCHI - Loss Function concept Design of Experiments DEFINING QUALITY: Predictable degree of uniformity and dependability at low cost and suited to the market -Deming . Fitness for use-Juran . Conformance to requirements - Crosby . Minimum loss imparted by a product to society from the time the product is shipped - Taguchi . A way of managing tile organization -Feigenbaum . Correcting and preventing loss, not living with loss - Hosffin . . The totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs – ISO Quality can be quantified as follows Q=P/E where, Q = Quality P = Performance E = Expectation VARIOUS DIMENSIONS OF QUALITY WITH EXAMPLES Quality has 2 dimensions. These dimensions are product and service quality. Depending upon the needs of the customers any product has to be supplied by the manufacturer. However the product should have certain characteristics and features. Customers only determine ultimately whether the product has been of expected quality. Various dimensions of quality that the customers do look for in a product, in order to satisfy their needs, only decide the characteristics of a product. For a manufactured product the dimensions of Quality are as following: 1. Performance – Primary product characteristics such as the brightness of the picture. This is the deciding driving force deciding the operating characteristics. 2. Features – Secondary characteristics, added features, such as remote control. Though this attribute is a secondary characteristic, it necessarily supplements the basic functioning of the product 3. Conformance – Meeting specifications or industry standards. How far the products physical and performance characteristic match with the set standards is called conformity. 4. Reliability – Consistency of performance over time, average time for the unit to fail. Under prescribed conditions of use of the product the probability of surviving over a specified period is termed as reliability of that product. 5. Durability – Useful life includes repair. The quantum of use a customer gets from a product before it wears out beyond further use or when a replacement is essential is called durability. 6. Service – Resolution of problems and complaints, ease of repair. The possibility to repair a product quickly and with ease is serviceability. 7. Response – Human to human interface, such as the courtesy of the dealer. It refers to the degree they react and act quickly to resolve the problems. 8. Aesthetics – Sensory characteristics such as exterior finish. It is the manner in which a product looks feels, tastes or smells. 9. Reputation – Past performance and other intangibles, such as being ranked first. The dimensions of quality in respect of a service are as follows: Time – This is the duration up to which a customer is made to wait. Timeliness – It refers to whether the promise can be kept or whether the service can be performed as Promised Completeness – It refers to whether all the items given by the customer is included. Courtesy – Whether the front office sales people greet each customer cheerfully and politely. Consistency – Whether the services are delivered in the same manner for every customer and every time for the same customer. Accessibility and convenience – Whether the service is easy to get ?or must the customer influence the service provider to get the required service. Accuracy – This is with regard to whether the service is done correctly even in the first instance. Responsiveness Refers to the reaction time of the service. Total Quality Management (TQM) is an enhancement to the traditional way of doing business. CHARACTERISTICS OF TQM The above definitions revealed the following characteristics of TQM : 1. TQM is a customer oriented. 2. TQM required a long term commitment for continuous improvement of all processes. 3. TQM is teamwork. 4. TQM requires the leadership of top management and continuous involvement. 5. TQM is a strategy for continuous improving performance at all levels and in all areas of responsibility. TQM BASIC CONCEPTS 1. Management Involvement – Participate in quality program, develop quality council, direct participation 2. Focus on customer – who is the customer – internal and external, voice of the customer, do it right first time and every time. 3. Involvement and utilisation of entire work force – All levels of management 4. Continuous improvement – Quality never stops, placing orders, bill errors, delivery, minimise wastage and scrap etc. 5. Treating suppliers as partners – no business exists without suppliers. 6. Performance measures – creating accountability in all levels TQM DEFINITION 1. TQM is the management approach of an organization, centered on quality, based on me participation of all its members and aiming at long-term success through customer satisfaction. and benefits to all members of me organization and to society.- ISO 2. TQM is an integrated organizational approach in delighting customers (both internal and external) by meeting their expectations on a continuous basis through everyone involved with the organization working on continuous improvement in all products, services, and processes along with proper problem solving methodology - INDIAN STATISTICAL INSTITUTE ( ISI ) 3. TQM is people - focused management system that aims at continual increase in customer satisfaction at continually lower cost. TQM is a total system approach (not a separate area of program ), and an integral part of high level strategy. It works horizontally across functions and departments, involving all employees, top to bottom, and exceeds backwards and forward to include the supply chain and the customer chain – TOTAL QUALITY FORUM OF USA ELEMENTS OF TQM A framework summarizing the important elements of TQM discussed in this text. Three elements of TQM include 1. The philosophical elements of TQM stress the operation of the company using quality as the integrating element. 2. The generic tools consist of various statistical process control (SPC) methods that are used for problem solving and continuous improvement by quality teams. Quality function deployment is typically used by managers to drive the voice of the customer into the organization. 3. Tools of the QC department consists of statistical quality control (SQC) methods such as sampling plans, process capability and Taguchi methods. TQM Frame Work: PRINCIPLES OF TQM Customer’s requirements must be met the first time, every time. There must be agreed requirements, for both internal and external customers. Everybody must be involved, from all levels and across all functions. Regular communication with staff at levels is must. Two way communication all levels must be promoted. Identifying training needs and relating them with individual capabilities and requirements is must. Top management’s participation and commitment is must. A culture of continuous improvement must be established. Emphasis should be placed on purchasing and supplier management Every job must add value. Quality improvement must eliminate wastes and reduce total cost. There must be a focus on the prevention of problems. A culture of promoting creativity must be established. Performance measure is a must at organization, department and individual levels. It helps to asses and meet objectives of quality. There should be focus on team work. The barriers and benefits of TQM 1. Lack of management commitment 2. Lack of faith in and support to TQM activities among management personnel 3. Failure to appreciate TQM as a cultural revolution. In other words, inability to change organizational culture 4. Misunderstanding about the concept of TQM 5. Improper planning 6. Lack of employees commitment 7. Lack of effective communication 8. Lack of continuous training and education 9. Lack of interest or incompetence of leaders 10. Ineffective measurement techniques and lack of access to data and results 11. Non-application of proper tools and techniques 12. Inadequate use of empowerment and team work Benefits of TQM. Tangible Benefits Improved product quality Improved productivity Reduced quality costs Increased market and customers Increased profitability Reduced employee grievances Intangible Benefits Improved employee participation Improved team work Improved working relationships Improved customer satisfaction Improved communication Enhancement of job interest Enhanced problem solving capacity DEMING’S PHILOSOPHY We know now that quality needs to be built into every level of a company, and become part of everything the organization does. From answering the phone to assembling products and serving the end customer, quality is key to organizational success. This idea is very much a part of modern management philosophy. But where did this idea originate? Before things like globalization and technological advances became so important, competitive pressures were typically much lower, and companies were usually satisfied with focusing their quality efforts on the production process alone. Now, quality is often thought to start and end with the customer, and all points leading to and from the customer must aim for highquality service and interaction. We owe this transformative thinking to Dr. W. Edwards Deming. A statistician who went to Japan to help with the census after World War II, Deming also taught statistical process control to leaders of prominent Japanese businesses. His message was this: By improving quality, companies will decrease expenses as well as increase productivity and market share. After applying Deming's techniques, Japanese businesses like Toyota, Fuji, and Sony saw great success. Their quality was far superior to that of their global competitors, and their costs were lower. The demand for Japanese products soared – and by the 1970s, many of these companies dominated the global market. American and European companies realized that they could no longer ignore the quality revolution. So the business world developed a new appreciation for the effect of quality on production and price. Although Deming didn't create the name Total Quality Management, he's credited with starting the movement. He didn't receive much recognition for his work until 1982, when he wrote the book now titled "Out of the Crisis." This book summarized his famous 14-point management philosophy. There's much to learn from these 14 points. Study after study of highly successful companies shows that following the philosophy leads to significant improvements. That's why these 14 points have become a standard reference for quality transformation. DEMINGS 14 POINTS 1. Create a constant purpose toward improvement. Plan for quality in the long term. Resist reacting with short-term solutions. Don't just do the same things better – find better things to do. Predict and prepare for future challenges, and always have the goal of getting better. 2. Adopt the new philosophy. Embrace quality throughout the organization. Put your customers' needs first, rather than react to competitive pressure – and design products and services to meet those needs. Be prepared for a major change in the way business is done. It's about leading, not simply managing. Create your quality vision, and implement it. 3. Stop depending on inspections. Inspections are costly and unreliable – and they don't improve quality, they merely find a lack of quality. Build quality into the process from start to finish. Don't just find what you did wrong – eliminate the "wrongs" altogether. Use statistical control methods – not physical inspections alone – to prove that the process is working. 4. Use a single supplier for any one item. Quality relies on consistency – the less variation you have in the input, the less variation you'll have in the output. Look at suppliers as your partners in quality. Encourage them to spend time improving their own quality – they shouldn't compete for your business based on price alone. Analyze the total cost to you, not just the initial cost of the product. Use quality statistics to ensure that suppliers meet your quality standards. 5. Improve constantly and forever. Continuously improve your systems and processes. Deming promoted the Plan-Do-Check-Act approach to process analysis and improvement. Emphasize training and education so everyone can do their jobs better. Use kaizen as a model to reduce waste and to improve productivity, effectiveness, and safety. 6. Use training on the job. Train for consistency to help reduce variation. Build a foundation of common knowledge. Allow workers to understand their roles in the "big picture." Encourage staff to learn from one another, and provide a culture and environment for effective teamwork. 7. Implement leadership. Expect your supervisors and managers to understand their workers and the processes they use. Don't simply supervise – provide support and resources so that each staff member can do his or her best. Be a coach instead of a policeman. Figure out what each person actually needs to do his or her best. Emphasize the importance of participative management and transformational leadership. Find ways to reach full potential, and don't just focus on meeting targets and quotas. 8. Eliminate fear. Allow people to perform at their best by ensuring that they're not afraid to express ideas or concerns. Let everyone know that the goal is to achieve high quality by doing more things right – and that you're not interested in blaming people when mistakes happen. Make workers feel valued, and encourage them to look for better ways to do things. Ensure that your leaders are approachable and that they work with teams to act in the company's best interests. Use open and honest communication to remove fear from the organization. 9. Break down barriers between departments. Build the "internal customer" concept – recognize that each department or function serves other departments that use their output. Build a shared vision. Use cross-functional teamwork to build understanding and reduce adversarial relationships. Focus on collaboration and consensus instead of compromise. 10.Get rid of unclear slogans. Let people know exactly what you want – don't make them guess. "Excellence in service" is short and memorable, but what does it mean? How is it achieved? The message is clearer in a slogan like "You can do better if you try." Don't let words and nice-sounding phrases replace effective leadership. Outline your expectations, and then praise people face-to-face for doing good work. 11.Eliminate management by objectives. Look at how the process is carried out, not just numerical targets. Deming said that production targets encourage high output and low quality. Provide support and resources so that production levels and quality are high and achievable. Measure the process rather than the people behind the process. 12.Remove barriers to pride of workmanship. Allow everyone to take pride in their work without being rated or compared. Treat workers the same, and don't make them compete with other workers for monetary or other rewards. Over time, the quality system will naturally raise the level of everyone's work to an equally high level. 13.Implement education and self-improvement. Improve the current skills of workers. Encourage people to learn new skills to prepare for future changes and challenges. Build skills to make your workforce more adaptable to change, and better able to find and achieve improvements. 14.Make "transformation" everyone's job. Improve your overall organization by having each person take a step toward quality. Analyze each small step, and understand how it fits into the larger picture. Use effective change management principles to introduce the new philosophy and ideas in Deming's 14 points. THE JURAN TRILOGY Biographical: + Joseph M. Juran, Ph.D. (1904- ). Born in Romania. His parents migrated to the USA. + Worked at Western Electric Co.from 1924 to 1941. There he got exposed to the concepts of Shewhart. Contributions: + In 1951, he published ‘Quality Control Handbook’ which is still a standard reference for quality control departments in organizations. + Traveled to Japan in 1954 to teach quality management to the Japanese at the invitation of the Japanese Union of Scientists and Engineers (JUSE). Juran and Deming introduced the concept of SQC to the Japanese. Helped the Japanese to improve quality to unprecedented levels. + Developed, published in 1986, the Juran Trilogy (Quality Trilogy) of three interrelated processes – quality planning, quality control, and quality improvement – for managing quality. + He popularized the concept of Fitness for Quality – comprising of Quality of Design, Quality of Conformance, Availability (reliability), Safety and Field Service. + Along with Deming, he introduced the concept of ‘Quality Assurance’. + He formulated a Quality Planning Roadmap. In 1941, Juran was introduced to the work of Vilfredo Pareto. He studied the Pareto principle (the 80-20 law), which states that, for many events, roughly 80% of the effects follow from 20% of the causes, and applied the concept to quality issues. Thus, according to Juran, 80% of the problems in an organization are caused by 20% of the causes. This is also known as the rule of the "Vital Few and the Trivial Many". Juran, in his later years, preferred "the Vital Few and the Useful Many" suggesting that the remaining 80% of the causes must not be completely ignored. Juran views quality as fitness for use. Juran Trilogy is designed to reduce the cost of quality over time. 1. QUALITY PLANNING Determine internal & external customers. Their needs are discovered. Develop product / service features. Develop the processes able to produce the product / service features. Transfer plans to operations. 2. QUALITY CONTROL Control is used by operating forces to help meet the product, process and service requirements. It consists of the following steps Determine items to be controlled. Set goals for the controls. Measure actual performance. Compare actual performance to goals. Act on the difference. 3. QUALITY IMPROVEMENT Aims to attain levels of performance that are higher than current levels. It consists of the following steps Establishment of quality council. Identify the improvement projects. Establish the project teams with a project leader. Provide the team with the resources. CONTRIBUTIONS OF CROSBY: Biographical: * Philip B. Crosby (1926-2001) * Was Corporate Vice President for Quality at International Telephones & Telegraph (AT&T) for 14 years after working his way up from line inspector. * After leaving AT&T, he established Philip Crosby Associates in 1979 to develop and offer training programs. Guided GM, Chrysler, Xerox, Motorola, etc. in quality management. * He wrote 13 books on quality, many of which were translated into 17 languages, sold millions of copies, and changed the way management looked at quality. Two of his most popular books are: ‘Quality is Free’(1979) and ‘Quality Without Tears’ (1984). Contributions: * He developed the concept of Zero Defects. * He stated that “doing it right the first time” is less expensive than the costs of detecting and correcting defects. * The book ‘Quality Without Tears’ contains the essence of Crosby’s philosophy embodied in two concepts: (i) Absolutes of Quality Management (ii) Basic Elements of Improvement. The Four absolutes of quality are 1. Quality is defined as conformance to requirements. 2. The system for causing Quality is prevention. 3. The performance standard must be zero defects. 4. The measurement of Quality is the Price of Nonconformance Crosby’s Fourteen Points: 1. Management Commitment 2. Quality Improvement Team 3. Quality Measurement 4. Cost of Quality Evaluation 5. Quality Awareness 6. Corrective Action 7. Establish an Ad Hoc Committee for the Zero Defects Program 8. Supervisor Training 9. Zero Defects Day 10.Goal Setting 11.Error Cause Removal 12.Recognition 13.Quality Councils Do It Over Again Customer satisfaction CUSTOMER FOCUS The concept "customer focus" means meeting the needs and expectations of current and potential customers by developing a comprehensive understanding of customer needs and then delivering perceived value to customers. The expected outcomes of a customer focus strategy are creating value for customers which leads to loyal customers which in turn leads to business profitability. CUSTOMER ORIENTATION Customer orientation is a business strategy in the lean business model that requires management and employees to focus on the changing wants and needs of its customers. In other words, it’s a company-wide philosophy that the customer’s wants and needs are the first priority of all management and employees.
