Unit 1 TQM Notes
Unit 1 TQM Notes
INTRODUCTION TO QUALITY
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
Time Events
Until 1960s
An era of workmanship
After 1960s
1961 The Martin Co in USA introduces the zero defects approach while
developing and producing Pershing Missiles. Quality motivation is
starting in the US and integrated programmes begun
1970 Ishikawa publishes the book on the basics of quality circles and the
concept of Total Quality is affirmed and devised in Japanese industries
1970 to 1980 Just – in –Time and quality become crucial for competitiveness. A large
number of US and European corporations are beginning to appreciate
the advance of Japan’s industries. Taguchi popularizes the use of
environmental design to design robust systems and products
QUALITY – DEFINITION
QUANITIFICATION OF QUALITY
P
Q
E
DIMENSION OF QUALITY
12. Aesthetics: sensory characteristics, e.g. exterior finish, texture, colour, etc.
13. Reputation: subjective assessment based of past performance, brand image,
industry ranking.
COST OF QUALITY
The cost of poor quality can add to other costs such as design, production,
maintenance, inspection, sales, etc. Quality costs cross department boundaries
by involving all activities of the organization – marketing, purchasing, design,
manufacturing, service, etc.
Why TQM:
It was Feigenbaum who coined the phrase ‘Total Quality Control’. The concept
is known in Japan as ‘Company Wide Quality Control’. In 1985, the Americans
came up with the term TQM to represent essentially the Japanese way of
quality management.
OBJECTIVES OF TQM
To develop a conceptual understanding of the basic principles and
methods associated with TQM;
To develop an understanding of how these principles and methods have
been put into effect in a variety of organizations;
To develop an understanding of the relationship between TQM principles
and theories and models studied in traditional management;
To do the right things at right time for everywhere.
CHARACTERISTICS OF TQM
Customer Oriented
Long term commitment for continuous improvement of all process
Team work
Continuous involvement of top management
Continuous improving at all levels and all areas of responsibility
ELEMENTS OF TQM
To be successful implementing TQM, an organization must concentrate on
the eight key elements:
Ethics.
Integrity.
Trust.
Training.
Teamwork.
Leadership.
Recognition.
Communication.
Foundation –
It includes: Ethics, Integrity and Trust.
Building Bricks –
It includes: Training, Teamwork and Leadership.
Binding Mortar –
Communication.
Roof –
Recognition.
Ethics
Ethics is the discipline concerned with good and bad in any situation.
It is a two-faceted subject represented by organizational and individual
ethics.
Organizational ethics establish a business code of ethics that outlines
guidelines that all employees are to adhere to in the performance of their
work.
Individual ethics include personal rights or wrongs.
Integrity
Integrity implies honesty, morals, values, fairness, and adherence to the
facts and sincerity.
The characteristic is what customers (internal or external) expect and
deserve to receive.
People see the opposite of integrity as duplicity.
TQM will not work in an atmosphere of duplicity.
Trust
Trust is a by-product of integrity and ethical conduct.
Without trust, the framework of TQM cannot be built.
Trust fosters full participation of all members.
It allows empowerment that encourages pride ownership and it
encourages commitment.
It allows decision making at appropriate levels in the organization,
fosters individual risk-taking for continuous improvement and helps to
ensure that measurements focus on improvement of process and are not
used to contend people.
Trust is essential to ensure customer satisfaction. So, trust builds the
cooperative environment essential for TQM.
Training
Training is very important for employees to be highly productive.
Supervisors are solely responsible for implementing TQM within their
departments, and teaching their employees the philosophies of TQM.
Training that employees require are interpersonal skills, the ability to
function within teams, problem solving, decision making, job
management performance analysis and improvement, business
economics and technical skills.
During the creation and formation of TQM, employees are trained so that
they can become effective employees for the company.
Teamwork
To become successful in business, teamwork is also a key element of
TQM.
With the use of teams, the business will receive quicker and better
solutions to problems.
Teams also provide more permanent improvements in processes and
operations.
In teams, people feel more comfortable bringing up problems that may
occur, and can get help from other workers to find a solution and put
into place.
Leadership
It is possibly the most important element in TQM.
It appears everywhere in organization.
Leadership in TQM requires the manager to provide an inspiring vision,
make strategic directions that are understood by all and to instill values
that guide subordinates.
For TQM to be successful in the business, the supervisor must be
committed in leading his employees.
A supervisor must understand TQM, believe in it and then demonstrate
their belief and commitment through their daily practices of TQM.
Recognition
Recognition is the last and final element in the entire 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.
Detecting and recognizing contributors is the most important 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.
Communication
It binds everything together.
Starting from foundation to roof of the TQM house, everything is bound
by strong mortar of communication.
It acts as a vital link between all elements of TQM.
Communication means a common understanding of ideas between the
sender and the receiver.
TQM FRAMEWORK
TQM AWARENESS
An organization will not begin the transformation to TQM until it is aware that
the quality of the product or service must be improved.
Awareness comes about when (a) the organization loses market share or (b)
TQM is mandated by the customer, or (c) management realizes that TQM
is a better way to run a business and compete in domestic and world
markets.
TQM does not occur overnight; there are no quick remedies. It takes a long
time to build the appropriate emphasis and techniques into the culture. Over-
emphasis on short-term results and profits must be set aside so that long-term
planning and constancy of purpose will prevail.
PILLARS OF TQM
2. Interpersonal Skills.
3. Team Work.
PRINCIPLES OF TQM
BENEFITS OF TQM
19. Failure to continually improve. Tendency to sit back and rest on one’s
laurels. Rigidly sticking to one ‘success formula’.
BESTERFIELD
QUALITY STATEMENT
The quality statements include the vision statement, mission statement, and
quality policy statement.
Once developed, they are only occasionally reviewed and updated. They are
part of the strategic planning process.
Example: “We will be the provider of safe, reliable, cost-effective products and
services that satisfy the electric-related needs of all customer segments.”
[Florida Power & Light Company].
The mission statement answers the following questions: who we are, who are
our customers, what we do, and how we do it.
Suganthi
If the vision deals with ‘what’, the mission deals with ‘why’ and ‘how’. It
identifies the roles or activities to which an organization is committed and
provides overall direction for achieving the mission.
The mission provides the guide map, milestones for achieving the vision.
Besterfield
The quality policy is a guide for everyone in the organization as to how they
should provide products/service to the customers. It is written after obtaining
feedback from the workforce and is approved by the quality council.
DEMING’S CONTRIBUTIONS
Biographical:
Contributions:
DO- IT
Achievements:
1. Create and publicize to all employees the aims and purposes of the
organization.
4. End the practice of awarding business on the basis of price tag alone.
(Costs due to inferior materials/components increase costs in the later stages
of production. Suppliers themselves are part of the whole system and hence
should be treated as long-term partners).
8. Drive out fear. (Fear in work manifests as fear of reprisal, fear of failure,
fear of change, fear of the unknown. Fear encourages short-term, selfish
thinking, not long-term improvement for the benefit of all).
Deming Cycle:
CROSBY’S CONTRIBUTIONS
Biographical:
Contributions:
(3) The performance standard is zero defects, not acceptable quality levels.
Quality is free.
JURAN’S CONTRIBUTIONS
Biographical:
Joseph M. Juran, Ph.D. Born in Romania. His parents migrated to the USA.
Worked at Western Electric Company from 1924 to 1941. There he got
exposed to the concepts of Shewhart.
Contributions:
6. Report progress
7. Show recognition
8. Communicate results