TOTAL QUALITY MANAGEMENT Unit IV Principles of Management FS B. Com. II CONCEPTS OF QUALITY Level of Excellence Performance to Specification that is, does the product do what it was designed to do? Conformance (act according to the expectations) to Requirement “Ability of a product or services to meet customers needs” “The totality of features and characteristics of a product or services that bears on its ability to satisfy stated or implied needs” – Definition adopted by the American Society of Quality CONCEPTS OF QUALITY “Meeting or exceeding customer requirement now and in the future” “Quality of a product or service is a customer’s perceptions of the degree to which the product or services meets his or her expectations”. “Quality is meeting or exceeding customers’ expectations”. Quality is a sense of appreciation that something is better than something else. From operational point of view, quality means focusing on the creation of increasingly better products or services at progressively more competitive cost. CONCEPTS OF QUALITY Increasing quality consciousness has generated the adoption of following practices. 1. 2. Emphasis on Total Quality Management (TQM) Emphasis on Kaizen (Continuous improvement or improvement over improvement) 3. Moving towards Six Sigma ( a method that provides tools to an organization to improve the capabilities of its business processes.) 4. Quality Certification TOTAL QUALITY MANAGEMENT [TQM] The It concept of TQM originated in Japan. has spread throughout the world and has attracted the attention of Indian Corporate Sector because of globalization, increased competition and greater expectations of discerning customers. TQM is a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. TOTAL QUALITY MANAGEMENT [TQM] There One are two Key philosophies in TQM is a never ending push to improve (i.e.) Continuous Improvement or Kaizen in Japanese) The other is a goal of customers satisfaction which involves meeting or exceeding customer expectations. WHAT IS TQM? Intense focus on customers – Both External and Internal Customers Concern for continuous improvement – Quality can always be improved Improvement in quality of everything the organization does – not only related to final product but also services, response to complaints and the like Accurate measurement of every critical performance variable in the company’s operations. Empowerment of employees – TQM involves the people on the line in the improvement process. Teams are empowered for finding and solving problems. DEFINITION OF TQM “Total composite of product and services characteristics of marketing, engineering, manufacturing, and maintenance through which the product and service in use will meet the expectations of the customers.” - Fiegnebaum DEFINITION OF TQM “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 problemsolving methodology” - Indian Statistical Institute PRINCIPLES OF TQM Customer Satisfaction Employee Involvement Continuous Improvement in quality [Product/Services Design, Problem Solving Tools, Purchasing, Process design, Benchmarking] PROCESSES THAT ARE INCLUDED IN TQM TQM comprises the following process: Quality Process Continuous People Improvement Process PROCESSES THAT ARE INCLUDED IN TQM Quality Process: Quality process involves the understanding of who the customer is, what his needs are, and how these needs can be satisfied. Thus, quality process comprises different steps through which complete satisfaction is provided to the customer. PROCESSES THAT ARE INCLUDED IN TQM Continuous Improvement: There is continuous process of improving the product quality and its delivery. The process comprises the ‘Plan-Do- Check-Act’ (PDCA). Practice of PDCA cycle generates numerous opportunities for further improvement. Management of PDCA cycle involves continuously evolving policies, objectives and methods to achieve goal, education and training to employees, implementation, checking causes for low quality, taking appropriate actions, and preventing recurrence. PROCESSES THAT ARE INCLUDED IN TQM People Process: People process deals with initiating and maintaining the TQM. It is carried out through the involvement of all employees based on three values intellect honesty, self-control and respect for others. Thus, TQM is not concerned only with shop floor management but it involves the total organization and its personnel in terms of the support to the philosophy of TQM. 14 PRINCIPLES OF TQM SUGGESTED BY W. EDWARDS DEMING Creating constancy of purpose of improvement of product and service Adopt the new philosophy that increasing quality is necessary for corporate survival Cease dependence on mass inspection to ensure quality from the start. End the practice of awarding business on price tag alone; develop long term relationship with suppliers to ensure supply of quality product/services. Constantly and forever improve the system of production and service Institute modern method of training on the job. 14 PRINCIPLES OF TQM SUGGESTED BY DEMING Institute leadership to motivate employees for continuous learning to improve quality Drive out fear so that employees can seek any information about total quality management practices Break down barriers between staff areas to ensure mutual cooperation among different department practices. Eliminate exhortations and targets for the workforce to ensure employees’ attention on quality. 14 PRINCIPLES OF TQM SUGGESTED BY DEMING Eliminate numerical quota to ensure that only quantity is not emphasized. Remove barriers to pride of workmanship Institute a vigorous programme of education and training. Take action to accomplish the transition to TQM TWO BARRIERS OF TQM 1. There may be some organizational barriers in form of lack of support for TQM. TQM can be practised at the shop-floor level successfully only when it has support of the management – Top, Middle and Lower Levels 2. There may be some attitudinal barriers which provide impediments to TQM. These may be in form of attitudes towards training needed, management styles, and approach towards quality. Both these problems can be overcome by developing proper climate for improving quality, systematic training and participation and empowerment of employees.
