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Lecture 02

In the late 20th century, developed countries faced economic challenges due to competition from Japan, leading to the emergence of Total Quality Management (TQM) as a response to improve quality and processes. TQM focuses on continuous improvement, customer satisfaction, and employee involvement, while contrasting with Business Process Re-engineering (BPR), which advocates for radical changes in existing systems. Both methodologies aim to enhance organizational performance but differ in their approaches and assumptions about existing practices.

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0% found this document useful (0 votes)
9 views31 pages

Lecture 02

In the late 20th century, developed countries faced economic challenges due to competition from Japan, leading to the emergence of Total Quality Management (TQM) as a response to improve quality and processes. TQM focuses on continuous improvement, customer satisfaction, and employee involvement, while contrasting with Business Process Re-engineering (BPR), which advocates for radical changes in existing systems. Both methodologies aim to enhance organizational performance but differ in their approaches and assumptions about existing practices.

Uploaded by

zuberishafii625
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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In the late 1970s and early 1980s, the developed countries of North America and

Western Europe suffered economically in the face of stiff competition from


Japan's ability to produce high-quality goods at competitive cost. For the first
time since the start of the Industrial Revolution, the United Kingdom
became a net importer of finished goods.

The United States undertook its own soul-searching, expressed most pointedly in
the television broadcast of If Japan Can... Why Can't We?
Firms began reexamining the techniques of quality control invented over the past
50 years and how those techniques hadOfbeen
Department so successfully employed by the
I.E.M (WBUT)

Japanese. It was in the midst of this economic turmoil that TQM took root.
The exact origin of the term "total quality management" is uncertain.

It is almost certainly inspired by Armand V. Feigenbaum's multi-edition book


Total Quality Control and Kaoru Ishikawa's What Is Total Quality Control?
The Japanese Way .

It may have been first coined in the United Kingdom by the Department of
Trade and Industry during its 1983 "National Quality Campaign“ or it may have
been first coined in the United States by the Naval Air Systems Command to
describe its quality-improvement efforts in 1985.

Department Of I.E.M (WBUT)


 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.
This involves the continuous
improvement of organizational
processes, resulting in high
quality products and services.

Department Of I.E.M (WBUT)


“Do the right things right the first time, every time.”

1. Be Customer focused
2. Insure Total Employee
Involvement
3. Process Centered
4. Integrated system
5. Strategic and systematic
approach
6. Continual Improvement
7. Fact Based Decision
Making

Department Of I.E.M (WBUT)


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.

Department Of I.E.M (WBUT)


1. Competition
2. Changing customer
3. Changing product mix
4. Product complexity
5. Higher levels of customer satisfaction
Relatively simpler approaches to quality viz. product inspection for
quality control and incorporation of internal cost of poor quality into
the selling price, might not work for today’s complex market
environment.

Managing quality is fundamental to any


activity and having a clear understanding
of the five aspects, measuring
performance and taking action to
improve is essential to an organizations
survival and growth.
Department Of I.E.M (WBUT)
Statistical approaches to quality control started at Western Electric with
the separation of inspection division.
Pioneers like Walter Shewhart, George Edwards, W. Edwards Deming
and Joseph M. Juran were all employees of Western Electric.

Deming and Juran


introduced statistical quality
control theory to Japanese industry. The
difference between approaches
to quality in
USA and Japan: Deming
W. Edwards Deming and Juran were able to Joseph M. Juran
convince the top managers
the importance
Next 20 odd years, whenoftop
quality.
managers in USA focused on
marketing, production quantity and financial performance,
Japanese managers improved quality at an unprecedented
rate.
Department Of I.E.M (WBUT)
America woke up to the quality revolution in early 1980s. Ford
Motor Company consulted Dr. Deming to help transform its
operations.
Managers started to realize
that “quality of management”
is more important than
“management of quality.”
Birth of the term Total
Quality
Management (TQM).
TQM – Integration of
quality principles into
organization’s management
systems.
Early 1990s: Quality management principles started finding their way in
TQM industry.
service recognized
FedEx,worldwide: Countries
The Ritz-Carton Hotel Companylikewere
Korea, India,
the quality
leaders.
Spain and Brazil are mounting efforts to increase quality
awareness.
Department Of I.E.M (WBUT)
Quality perspectives

Department Of I.E.M (WBUT)


Definition of quality, “A product or a service possesses quality if it helps
somebody and enjoys a good and sustainable market.”

Department Of I.E.M (WBUT)


Pursue quality on two levels :
1. The mission of the firm as a whole is to
achieve
high product quality.
2. The mission of each individual department
is to achieve high production quality.

Department Of I.E.M (WBUT)


Absolute’s of Management
• Quality means conformance to requirements
not elegance.
• There is no such thing as quality problem.
• There is no such thing as economics of
quality: it is always cheaper to do the
job right the first time.
• The only performance measurement is
the
cost of quality: the cost of non-
conformance.

Phillip B. Crosby
Basic Elements of Improvement
 Determination (commitment by the top management)
 Education (of the employees towards Zero Defects (ZD))
 Implementation (of the organizational processes towards ZD)
Department Of I.E.M (WBUT)
for gradual and orderly continuous
improvement over a long period of time with
minimum financial investment, and with
participation by everyone in the organization.

• Improvement in all areas of business serves to enhance quality


of
the firm.
• Three things required for successful kaizen program:
operating practices, total involvement, and training.
• Operating practices expose opportunities for improvement.
JIT reveals waste and inefficiency as well as poor quality.
Department Of I.E.M (WBUT)
The Deming cycle: Originally developed
by Walter Shewart, but renamed in 1950s
because Deming promoted it extensively.
It is the PDCA cycle.

1. Plan – Study the current system; identifying problems; testing


theories
of causes; and developing solutions.
2. Do – Plan is implemented on a trial basis. Data collected
and documented.
3. Check/Study – Determine whether the trial plan is working
correctly by evaluating the results.
4. Act – Improvements are standardized and final plan is implemented.

Variation of PDSA cycle: FADE – Focus, Analyze, Develop, Execute


cycle!

Department Of I.E.M (WBUT)


Department Of I.E.M (WBUT)
• Process map identifies the sequence of
activities or the flow in a process.
• Objectively provides a picture of the steps
needed to accomplish a task.
• Helps all employees understand how
they fit into the process and who are
their suppliers and customers.
• Can also pinpoint places where
quality- related measurements should
be taken.
• Also called process mapping and
analysis.
• Very successfully implemented in various
organizations. e.g. Motorola reduced
manufacturing time for pagers using flow
charts.
Department Of I.E.M (WBUT)
• Based on the 80-20 Pareto
Distribution.
• Helpful in identifying the
quality
focus areas.
• Popularized by Juran.
• It is a histogram of the data from the
largest frequency to the smallest.

Department Of I.E.M (WBUT)


Department Of I.E.M (WBUT)

Department Of I.E.M (WBUT)


• Graphical components of the
regression analysis.
• Often used to point out relationship
between variables. Statistical
correlation analysis used to interpret
scatter diagrams.

Run Chart:
Measurement against
progression of time.
Control Chart: Add
Upper Control Limit and
Lower Control Limit to
the run chart.

Department Of I.E.M (WBUT)


Kaoru Ishikawa is best known for the development of
quality tools called cause-and-effect diagrams, also
called fishbone or Ishikawa diagrams. These diagrams
are used for quality problem solving.

He was the first quality guru to emphasize the importance of the “internal
customer,” the next person in the production process.
He was also one of the first to stress the importance of total company quality
control, rather than just focusing on products and services.
Department Of I.E.M (WBUT)
Dr. Genichi Taguchi is a Japanese quality expert
known for his work in the area of product design.
Taguchi is known for applying a concept called
design of experiment to product design.
This method is an engineering approach that is
based on developing robust
design, a design that results in products that can
perform over a wide range of conditions. of costs
of conformance to specifications is incorrect, and
proposed a different way to look at these costs.

Taguchi’s philosophy is based on the


idea that it is easier to design a product
that can perform over a wide range of
environmental conditions than it is to
control the environmental conditions.
Taguchi has also had a large impact on
today’s view of the costs of quality. He
pointed out that the traditional view .

Department Of I.E.M (WBUT)


The Malcolm Baldrige National Quality
Award was established in 1987, when
Congress passed the Malcolm Baldrige
National Quality Improvement Act. The
award is named after the former Secretary
of Commerce, Malcolm Baldrige, and is
intended to reward and stimulate quality
initiatives. It is designed to recognize
companies that establish and demonstrate
high quality standards.
The award is given to no more than two
companies in each of three categories:
manufacturing, service, and small business.
Past winners. include Motorola
Corporation, Xerox, FedEx, 3M, IBM, and
the Ritz-Carlton

Department Of I.E.M (WBUT)


• Created by International Organization for Standardization
(IOS) which was created in 1946 to standardize quality
requirement within the European market.
• IOS initially composed of representatives from 91
countries: probably most wide base for quality standards.
• Adopted a series of written quality standards in 1987 (first
revised in 1994, and more recently (and significantly) in
2000).
• Prefix “ISO” in the name refers to the scientific term “iso”
for equal. Thus, certified organizations are assured to have
quality equal to their peers.

Department Of I.E.M (WBUT)


• Defines quality systems standards based on the
premise that certain generic characteristics of
management principles can be standardized.
• And that a well-designed, well-implemented and well
managed quality system provides confidence that
outputs will meet customer expectations and
requirements.
• Standards are recognized by 100 countries including
Japan and USA.
• Intended to apply to all types of businesses.
(Recently, B2B firm bestroute.com
became the first e-commerce company
to get ISO certification.)

Department Of I.E.M (WBUT)


Created to meet five objectives:
 Achieve, maintain, and seek to
continuously improve product
quality in relation to the
requirements.
 Improve the quality of operations
to continually meet customers’ and
stakeholders’ needs.
 Provide confidence to internal management that
quality requirements are being met.
 Provide confidence to the customers that quality
requirements
are being met.
 Provide confidence that quality system requirements
are fulfilled.
Department Of I.E.M (WBUT)
Both TQM and BPR(Business Process Re-engineering) are customer-
oriented. They both aim on improving the customer satisfaction. Also,
they both suggest thinking outside in. On the other words, they both
suggest to think from the customer's viewpoint. Also, both TQM and BPR
are process-oriented. They both target to alter the processes, but not just
on the product. Moreover, they both take team approach.

Nearly all BPR projects are initiated by


top-down approach. Since BPR would
results great changes, staff resistance is
obvious. Therefore, top management's
support and commitment are very
important. For TQM, both top-down
approach and bottom-up approach are
possible.

Department Of I.E.M (WBUT)


TQM emphasis on the use
of statistical process
control. However, there is
no similar concern for BPR.
On the other hand, BPR
emphasis more on the
enabling role of information
technology.

The basic assumptions of TQM and BPR are different. TQM assumes
that the existing practices or systems are principally right and useful.
The target of TQM is to improve on the basis of the existing system.
However, BPR takes an opposite assumption. BPR assumes the
existing system is useless and suggests starting it over. Unlike TQM
that aims on smoothly and incremental improvements, BPR aims on
dramatic results.
Department Of I.E.M (WBUT)
TQM emphasis on total involvement, including all the
stakeholders. The involvement even extends to suppliers and
customers. Also, TQM also suggests involving all the processes
in the company, including human resources management, order
fulfilling, manufacturing, marketing and customer management
and others. However, for BPR, the project can be controlled to a
Department Of I.E.M (WBUT)
specified area only.
Standardization is one of the key points of TQM. TQM aims on standardize the
practices, thus achieving a consistent performance. It also makes that there is
a certain degree of documentation for TQM. However, BPR emphasis on
flexibility and believes that standardization would increase the complexity of
the process. Therefore, standardization is rare in BPR and the level of
documentation is much lower.

TQM is a cultural issue. Once the culture is built, TQM is absorbed in


the daily operation. However, BPR is a project. It is with a clear target
that should be achieved as soon as possible.

Department Of I.E.M (WBUT)


TQM and BPR are used by organizations with a different focus and after
their implementation, achieving different results.
Some organizations prefer TQM, others BPR. They are generally
considered as two completely different approaches of process
improvement that can not be integrated. Because of their common
features, we can conclude that the integration is possible.
Both approaches bring significant results in organizations that implement
them. If organizations use the strengths of both methodologies for
process improvement jointly, they could achieve more significant results
as if they were used separately.

The aim of this presentation was to provide an overview


what actually is Business Process Re-Engineering and Total
Quality Management.

Department Of I.E.M (WBUT)


References :
Google.com, BPR by Prof. Dr Majed El-Farra 2009, INNOREGIO by Sotiris Zigiaris, B P
R H E L L A S S A, Youtube.com, Sciencedirect.com, TQM by R.R. Lakhe, TQM and
BPR by William Wong, Kaizen and various Journals, Text Books.

Department Of I.E.M (WBUT)

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