Chapter 2
Objectives
• After going through this chapter, you will be able to
understand about:
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Understand environment in Evolution of TQM,
Understand meaning of TQM (Total Quality Management),
Identify the components of the TQM
Identify requirements of TQM in Hospital Service Process.
Introduction
• In the past two-three decades, many companies
throughout world have been under tremendous
pressure some of them battered by international
competitors, some others by new entrepreneurial
companies and others were seriously by new
technologies which created alternative to their products
and services.
• Some leading companies have changed rapidly. While
some of the new companies become major players,
other companies are still engaged in daily battles for
survival and many companies arc disappeared.
Introduction
• These companies found that all their radical
restructuring, re-engineering, downsizing many quality
programs may have helped survive, but they do not
have destructive quality advantages. Future of these
companies will be determined by three key areas
Alignment, Linkage and Replication.
• In terms of quality management these points may be
continuous improvements customer focus. anti value for
every member organization. These are three key areas
transforming the way to manage entire organization.
Introduction
• In this period a few companies have tremendous
(radically) changed (transformed) their business
performance. To improve performance many new
concepts and methods they have used. Now these
concepts and methods are collectively called Total
Quality” or Total Quality Management” (TQM).
• TQM means the vast collection of philosophies,
concepts, methods and tools being used throughout the
world to manage quality. Initially in few countries TQM
is also called as Total Quality control (TQC) Now TQM is
universally accepted.
Introduction
T
Q
M
Focus on TQM
• TQM is mainly concerned with continuous improvement
in all work, from high level strategic planning, decision
making, to detailed execution of work elements on the
production floor.
• It stems from the belief that mistakes can be avoided
and the defects can be prevented. It leads to
continuously improving results. in all aspects of work, as
a result of continuously improving capabilities, peoples,
processes, and technology and machine capabilities.
Focus on TQM
• Continuous improvements
must deal with improving
results, along with more
focus on the improving
capability to produce
better results in the
future.
• The five major areas of
focus for capability
improvement are
– demand generation,
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supply generation,
technology,
operations and
people capability.
Elements of TQM
• Total Quality Management (TQM) is a description of the
culture, attitude, and organization of a company that
strives to provide customers with product and services
that satisfy their needs.
• The culture requires quality in all aspects of the
company’s operations. with processes being done right
the first time and defects and waste eliminated from
operations.
Elements of TQM
• For successful implementation of TQM, an organization
must concentrate on the eight elements Ethics,
Integrity, Trust, Training, Teamwork, Leadership,
Recognition, and Communication.
• TQM has been coined to describe a philosophy that
makes quality the drive force behind leadership, design,
planning, and improvement initiatives.
• The eight elements can be divided in to four major
groups according to their function
Elements of TQM
Elements of TQM
• 1. Foundation: (Ethics, Integrity and Trust.)
– TQM is built on the foundation of ethic integrity and trust.
It fosters openness, fairness and sincerity and allows
involvement by everyone.
– Ethic is discipline concerned with good or bad in any
situation. It is a two-faceted subject represented by
organizational and individual ethics. Organizational ethic
establishes a business code of ethics that outlines
guidelines that all employees are adhere to in the
performance of their work. Individual ethics includes
personal rights or wrongs.
Elements of TQM
• 1. Foundation: (Ethics, Integrity and Trust.)
– Integrity implies honesty, morals, values, fairness and
adherence to the facts and sincerity. The characteristic is
what customers expect and deserve to receive. People see
the opposite of integrity as duplicity.
– TQM never work in an atmosphere of duplicity. Trust is a
by-product of integrity and ethic conduct. Without trust
frame work of TQM cannot be built. Trust encourages full
participation of all the members. It builds the cooperative
environment essential for TQM.
Elements of TQM
• 2. Building Bricks: (Training, Team Work and Leadership.)
– Training is very important for employees to be highly
productive. Supervisors are solely responsible for
implementing TQM within their department, and teaching
their employee the philosophies of TQM.
– To become successful in business, team work is a important
element of TQM. With the help of team, the business will
receive quicker and better solution to problems.
Elements of TQM
• 2. Building Bricks: (Training, Team Work and Leadership.)
– Leadership is one of the important elements of TQM. It
appears everywhere in organization. A supervisor must
understand TQM, believe in it and then demonstrate their
belief and commitment through their daily practices of
TQM.
– The supervisor makes sure that strategies, philosophies,
values, and goals are transmitted down throughout the
organization to focus clarity and direction. A key point is
that TQM has to introduced and led by top Management.
Elements of TQM
• 3. Binding Mortar: (Communication)
– Communication binds everything together. Starting from
foundation to roof of TOM house everything is bound by
the communication. It acts as an essential link between all
the elements of TOM. Communication means a common
understanding of ideas between sender and receiver.
– The success of TQM demands communication with and
among all the organization members, supplies and
customers. Supervisors must keep open forum where
employees can send and receive information about the
TQM process. Communication coupled with the sharing of
correct information is vital.
Elements of TQM
• 3. Binding Mortar: (Communication)
– There are different ways of communication like downward,
upward, and parallel. Downward communication is the
dominant form of communication in any organization. By
this type of communication supervisors are able to
communicate with employees about TQM.
– In upward communication, the lower levels of employees
arc able to provide suggestions to upper management of
the influence of TQM. As employees provide insight and
constructive criticism, supervisors must listen effectively to
correct the situation that comes through the use of TQM.
Elements of TQM
• 4. Roof: (Recognition)
– Recognition is the last element in the entire TQM system. It
should be provided for both suggestions and achievements
for teams as well as individuals. Employees strive to receive
recognition for themselves and their teams.
– Detection and recognition is the most import job of a
supervisor. As people are recognized, there can be huge
changes in self-esteem, productivity, quality and the
amount of effort exhorted to the task at hand. Recognition
comes in its best form when it is immediately following an
action that an employee has performed.
Aspect of TQM
• What characterizes TQM is the focus on identifying root
cause of quality problems and correcting them at the
source. as opposed to inspecting the product after it has
been made.
• Not only those TQM encompasses the entire
organization, but it stresses the quality is customer
driven. TQM attempts to embed quality in every aspect
of the organization. It is concerned with technical
aspects of quality as well as the involvement of people
in quality, such as customer company employees and
suppliers.
Aspect of TQM
• Customer Focus:
– The first and overriding feature of TQM is the company’s
focus on its customers. Quality is defined as meeting or
exceeding customer satisfactions.
– The goal is to first identify and then meet customer needs.
TQM recognized that a perfectly produced product has little
value if it is not what the customer wants. Therefore, we
can say that quality is customer driven.
Aspect of TQM
• Continuous Improvement:
– Another concept of the TQM philosophy is the focus on
continuous improvement. Traditional systems operated on
the assumption that once the company achieved a certain
level of quality, it was successful and needed no further
improvements.
– Traditionally, change for American managers involves large
magnitudes, such as major organizational restructuring. The
Japanese, on other hand, believe that the best and most
lasting changes come from gradual improvement this is
called as kaizen by the Japanese.
Aspect of TQM
• Employee Empowerment:
– Part of the TQM philosophy is to empower all employees to
seek out quality problems and correct them. With the old
concept of quality, employees were afraid to identify
problems for fear that they would be reprimanded.
– Often poor quality was passed on to someone else, in order
to make it someone else’s problem. The new concept of
quality, TQM, provided incentives for employees to identify
quality problems. Employees are rewarded for uncovering
quality problems, not punished.
Aspect of TQM
• Use of Quality tools:
– TQM places great deal of responsibility on all workers. If
employees are to identify and correct quality problems they
need proper training.
– They need to understand how to as quality by using a
variety of quality control toots, how to interpret findings,
and how to correct problems.
– There are seven different quality tools like Flow Charts,
Cause and effect Diagram, Scatter diagram etc.
Components of TQM
• Mistake-Proofing:
– Preventing mistakes (defects) from occurring (Poka-yoke)
• Inspection:
– Where mistakes can’t be absolutely prevented detecting
team early to prevent them being passed down the value
added chain
• Stop in Time:
– Wherever mistakes recur, stopping production until the
process can be corrected, to prevent the production from
more defects
TQM Culture
• TQM encourage participation amongst production floor
workers and managers. There is no single theoretical
formalization of total quality.
• Quality gurus like Deming, Ishikawa, and Juran provide
the core assumptions, as a “Discipline and philosophy of
management which institutionalize planned and
continuous improvement and assumes that quality is
the outcome of all activities that takes place within an
organization; that all functions and all employees have
to participate in the improvement process
Total Quality Management
• TQM is a management philosophy that seeks to
integrate all organizational functions (marketing,
finance, design, engineering, production and customer
services etc.) to focus on meeting customer needs and
organizational objectives.
• TQM views an organization as a collection of processes.
It maintains that organizations must endeavor to
continuously improve these processes by incorporating
the knowledge and experiences of workers
TQM in Hospital service Process
• We all accepted the goals of total quality are low cost,
higher revenue, delighted customs and empowered
employees.
• Now we believe that the managing total quality means
conformance to specification and requirements.
TQM in Hospital service Process
• Total quality also means meeting and even exceeding
the need of expectation of customers. Total quality
includes the right features, correct documentation, and
error free invoices.
• It also includes the proper functioning of critical
business processes, on time delivery, friendly and
accurate support and no failures.
TQM in Hospital service Process
• Total quality involves reducing all the cost of poor
quality.
• Hospital services are import in concern with the
individual, society or country. It is the basic
infrastructure of country.
• Any organizational infrastructure consists of Man,
Machine, method/processes Information etc.
TQM in Hospital service Process
• Every customer required high quality, in time, error free,
low cost and value added services. As far as health
services are concern, all five factors are essential.
• TQM provides all this under single umbrella.
Implementation of TQM in health service industry, shall
provide a delighted industry.
Chapter 2