Total Quality Management

Why TQM? Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition. TQM: A Buzzword Losing Popularity For many companies, the term TQM is associated with corporate programs (mid 1980s ~ early 1990s) aimed at implementing employee teams and statistical process control. Unfortunately, many companies were dissatisfied with the perceived results of these programs, concluding TQM does not work. Question: Why were they dissatisfied? Were they justified? TQM Total - made up of the whole Quality - degree of excellence a product or service provides Management - act, art or manner of planning, controlling, directing,. Therefore, TQM is the art of managing the whole to achieve excellence. What does TQM mean? Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services. Whats the goal of TQM? Do the right things right the first time, every time. Another way to put it At its simplest, TQM is all managers leading and facilitating all contributors in everyones two main objectives: (1) total client satisfaction through quality products and services; and (2) continuous improvements to processes, systems, people, suppliers, partners, products, and services. Productivity and TQM Traditional view: Quality cannot be improved without significant losses in productivity.

 TQM view: Improved quality leads to improved productivity.

Basic Tenets of TQM 1. The customer makes the ultimate determination of quality. 2. Top management must provide leadership and support for all quality initiatives. 3. Preventing variability is the key to producing high quality. 4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions. The three aspects of TQM Counting - Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Customers - Quality for the customer as a driving force and central concern. Culture -Shared values and beliefs, expressed by leaders, that define and support quality. Total Quality Management and Continuous Improvement TQM is the management process used to make continuous improvements to all functions. TQM represents an ongoing, continuous commitment to improvement. The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement. Continuous Improvement versus Traditional Approach Traditional Approach Market-share focus Individuals Focus on who and why Short-term focus Status quo focus Product focus Innovation Fire fighting Continuous Improvement Customer focus Cross-functional teams Focus on what and how Long-term focus Continuous improvement Process improvement focus Incremental improvements Problem solving

Quality Throughout A Customers impression of quality begins with the initial contact with the company and continues through the life of the product. Customers look to the total package - sales, service during the sale, packaging, deliver, and service after the sale. Quality extends to how the receptionist answers the phone, how managers treat subordinates, how courteous sales and repair people are, and how the product is serviced after the sale.

All departments of the company must strive to improve the quality of their operations.

Value-based Approach Manufacturing Dimensions Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality Service Dimensions Reliability Responsiveness Assurance Empathy Tangibles

Social Entrepreneurship
Can Social Entrepreneurship change the face of India? An indifferent government & an inefficient bureaucracy have ensured the poorer strata of society remain deprived of the benefits of development. They are still bogged down by unemployment, poverty, illiteracy & lack of medical facilities. But with the arrival of social entrepreneurship all that is set to change. In the past, it was the job of NGOs to make a difference to the lives of the less fortunate. But the problem was that they didnt have enough funds to bring about sweeping changes in society. Enter the social entrepreneur, who took it upon himself to revolutionize things.

What is social entrepreneurship? Social entrepreneurship is the process of bringing about social change on a major scale. Social entrepreneurs function as the agents of change, questioning the status quo, grabbing the new yet overlooked opportunities, & changing the world for the better. Today, they are making up for the shortcomings of the bureaucracies & government. What does a social entrepreneur do? While business entrepreneurs aim to generate profits, social entrepreneurs aim to improve social values. But they differ from NGOs in that they aim to make broad-based, long-term changes, instead of few immediate small-time results. They recognize when a section of the society is stuck & offer innovative ways to break out of its stagnant state. They find out the things that dont work & alter the system to solve the problems. They detect resources while others see problems. They consider the affected people as part of the solution & not as passive beneficiaries. They propagate the solution & persuade the whole society to adopt it. Do we have social entrepreneurs in India? Social entrepreneurship is quietly revolutionizing the less privileged sections of India. Here are some of the more prominent social entrepreneurs in India. Social Entrepreneurs in India Dr Govindappa Venkataswamy & Thulasiraj D Ravilla established Aravind Eye Hospital in 1976. Till date, it has treated more than 2.3 million outpatients & carried out more than 2.7 lakh operations in 2006-07, about twothirds of them free. Barefoot College, started by Bunker Roy in 1972, has made innumerable school dropouts in villages into barefoot doctors, engineers, architects, teachers, designers & communicators. Self-Employed Womens Association (SEWA) started by Ela Bhatt in 1972 provides financial, health, insurance, legal, childcare, vocational & educational services to poor self-employed women, who comprise its members. Bhartiya Samruddhi Investments & Consulting Services (BASIX) started by Vijay Mahajan is the first microfinance project to lend to the poor. Narayana Hrudayalaya Institute of Medical Sciences & its network of hospitals run by Devi Shetty perform about three dozen surgeries a day. Of these, 60% are carried out at nominal cost or free of charge. Technology Informatics Design Endeavour (TIDE) run by S Rajagopalan & Svati Bhogle supports the development of financially rewarding & environmentally-friendly methods invented by leading research institutions into thriving enterprises.

Dr. Mohammad Yunus - Grameen bank, Bangladesh Major boost in social entrepreneurship was given by the Nobel Prize winner Dr. Mohammad Yunus when his brain-child Grameen Bank became successful in helping people lift themselves out of poverty in rural Bangladesh by providing them with credit without requiring collateral. Yunus developed his revolutionary micro-credit system with the belief that it would be a cost-effective & scalable weapon to fight poverty. It was soon realized that profits can be made along with serving the society, provided you treat profits as a means & not the end result.

Impact of Social Entrepreneurship Our country does not have a homogenous people or geography, so the impact largely remains regional. With the current economic climate, it is very likely that social needs will increase &, consequently, the number of people committed to addressing them will increase. Definition of social entrepreneurship has changed over time. From corporate philanthropy to non-profit & now to self-sustainability, Social Entrepreneurship has evolved & will keep evolving with time & needs of the world. Models of Social Entrepreneurship in India In India alone social entrepreneurship space has a countless mixture of models with a one billion thinking structure. One billion thinking requires cost-effective models involving the bottom of the pyramid. The majority of these models are scalable & replicable. Few for-profit Social Business Models (Yes, It Happens in India) VNL Makes telecom equipment that helps mobile operators reach rural markets profitably 70 station in Rajasthan Narayan Hospital India Delivering affordable healthcare to the masses worldwide 5,000 bed facility completed in phase 1 A little world Empowering micro business through micro banking Customer base crosses 3 million

It Happens in India Barefoot College solar energy, water, education, health care, rural handicrafts, peoples action, communication, womens empowerment & wasteland development 1,000 Barefoot experts in 1,000 villages, reaches 500,000 people with basic services such as drinking water, health care, & education Childline Countrys first toll-free tele-helpline for street children in distress 9.6 million calls, 3 million children, 73 cities, 10 years BASIX India Sustainable livelihoods to the rural poor & women Over a million and a half customer CraftsBridge A bridge between customers worldwide & crafts persons, designers Arvind Eye Hospital Eliminating needless blindness by taking its services to rural India In last year alone 2.5 million patients were treated & over 3 lakh surgeries were performed COMAT Empowering rural citizens by creating local economies & enabling access to information & services Deliver Citizen records and Government benefits to over 50,000 rural citizens every day D light High quality solutions for families living without reliable electricity 10 million IDE India Providing long-term solutions to poverty, hunger & malnutrition 19 million RangSutra Sustainable livelihoods for artisans and farmers, by creating top quality hand-made products based on the principles of fair trade Approximate 2,500 artisans Lijjat Papad Women Empowerment 4,600 women employed Selco Solar India Sustainable energy solutions and services to under-served households & businesses. 95,000 villages covered

Unltd India Angel investor & incubator for social entrepreneurs Each of the projects has, on average, created 1.6 new jobs in the economy SKS Microfinance Small loans without collaterals 5.3 Million Customers Suminter India Organics Internationally certified organic agricultural produce Premium crop price to more than 7,000 farmers Vortex Engineering Rural Solar Powered ATMs 750 ATM

Conclusion The popularity of Social Entrepreneurship is growing at a very high pace in India even through the current economic downturn. In the last three years more & more youth are developing interest in this field including those from prestigious Stanford, MIT & Oxford. This new evolving field has also got early venture capitalist interested in funding with many seeking out such enterprises that hold out huge potential. Earlier, organizations solving social problems were often assumed to be idealistic, philanthropic & lacking business acumen or the ability to be entrepreneurial. However, as the social sector has been coming in touch with the private sector, both have begun to realize that just one approach either pure philanthropic or pure capitalist is inadequate to build sustainable institutions.

Quality Circles
What is a Quality Circle? Voluntary groups of employees who work on similar tasks or share an area of responsibility They agree to meet on a regular basis to discuss & solve problems related to work. They operate on the principle that employee participation in decision-making and problem-solving improves the quality of work

How Do Quality Circles Work? Characteristics Volunteers Set Rules and Priorities Decisions made by Consensus Use of organized approaches to Problem-Solving

All members of a Circle need to receive training Members need to be empowered Members need to have the support of Senior Management

How Can They be Used in an Organization? Increase Productivity Improve Quality Boost Employee Morale

Real World Example At Penn State University in 1983, a Quality Circle was formed by Professor Hirshfield, a Professor of East Asia History. Team Exercise Break down into teams of 6-8 people Establish a leader and rules for your Circle Have a brainstorming and problem-solving session to resolve the issue on the next slide Selected 8 Students from a large lecture class Resulted in increased involvement from the class

Problems with Quality Circles Inadequate Training Unsure of Purpose Not truly Voluntary Lack of Management Interest Quality Circles are not really empowered to make decisions.

Summary of History and Practices Quality Circles were first seen in the United States in the 1950s Circles were developed by Dr, Kaoru Ishikawa in Japan in the 1960s Circles were re-exported to the US in the early 1970s

Summary of History and Practices 1980s brought Total Quality Management and a reduction in the use of Quality Circles Quality Circles can be a useful tool if used properly