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1introduction To TQM
1introduction To TQM
1introduction To TQM
Structure
1.1
Objectives
1.2
Introduction
1.3
TQM-
4. Allows organizations to take advantage of developments that enable managing operations as crossfunctional processes
5. Fits an orientation toward inter-organizational collaboration and strategic alliances through
establishing a culture of collaboration among different departments within the organization
Point 1: Create constancy of purpose toward improvement of the product and service so as to
competitive, stay in business and provide jobs.
become
Point 2: Adopt the new philosophy. We are in a new economic age. We no longer need live with commonly
accepted levels of delay, mistake, defective material and defective workmanship.
Point 3: Cease dependence on mass inspection; require, instead, statistical evidence that quality is built in.
Point 4: Improve the quality of incoming materials. End the practice of awarding business on the basis of a
price alone. Instead, depend on meaningful measures of quality, along with price.
Point 5: Find the problems; constantly improve the system of production and service. There should be
continual reduction of waste and continual improvement of quality in every activity so as to yield a continual
rise in productivity and a decrease in costs.
Point 6: Institute modern methods of training and education for all. Modern methods of on-the-job training
use control charts to determine whether a worker has been properly trained and is able to perform the job
correctly. Statistical methods must be used to discover when training is complete.
Point 7: Institute modern methods of supervision. The emphasis of production supervisors must be to help
people to do a better job. Improvement of quality will automatically improve productivity. Management must
prepare to take immediate action on response from supervisors concerning problems such as inherited defects,
lack of maintenance of machines, poor tools or fuzzy operational definitions.
Point 8: Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication
and other mechanisms that will enable everybody to be part of change, and to belong to it. Fear can often be
found at all levels in an organization: fear of change, fear of the fact that it may be necessary to learn a better
way of working and fear that their positions might be usurped frequently affect middle and higher
management, whilst on the shop-floor, workers can also fear the effects of change on their jobs.
Point 9: Break down barriers between departments and staff areas. People in different areas such as research,
design, sales, administration and production must work in teams to tackle problems that may be encountered
with products or service.
Point 10: Eliminate the use of slogans, posters and exhortations for the workforce, demanding zero defects
and new levels of productivity without providing methods. Such exhortations only create adversarial
relationships.
Point 11: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals
for people in management. Substitute aids and helpful leadership.
Point 12: Remove the barriers that rob hourly workers, and people in management, of their right to pride of
workmanship. This implies, abolition of the annual merit rating (appraisal of performance) and of
management by objectives.
Point 13: Institute a vigorous program of education, and encourage self-improvement for everyone. What an
organization needs is not just good people; it needs people that are improving with education.
Point 14: Top management's permanent commitment to ever-improving quality and productivity must be
clearly defined and a management structure created that will continuously take action to follow the preceding
13 points.
Basic Principles of Total Quality Management (TQM)
by Ron Kurtus (28 May 2001)
The basic principles for the Total Quality Management (TQM) philosophy of doing business are to satisfy the
customer, satisfy the supplier, and continuously improve the business processes.
Questions you may have include:
This lesson will answer those questions. There is a mini-quiz near the end of the lesson.
Satisfy the customer
The first and major TQM principle is to satisfy the customer--the person who pays for the product or service.
Customers want to get their money's worth from a product or service they purchase.
Users
If the user of the product is different than the purchaser, then both the user and customer must be satisfied,
although the person who pays gets priority.
Company philosophy
A company that seeks to satisfy the customer by providing them value for what they buy and the quality they
expect will get more repeat business, referral business, and reduced complaints and service expenses.
Some top companies not only provide quality products, but they also give extra service to make their
customers feel important and valued.
Internal customers
Within a company, a worker provides a product or service to his or her supervisors. If the person has any
influence on the wages the worker receives, that person can be thought of as an internal customer. A worker
should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or
promotion.
Chain of customers
Often in a company, there is a chain of customers, -each improving a product and passing it along until it is
finally sold to the external customer. Each worker must not only seek to satisfy the immediate internal
customer, but he or she must look up the chain to try to satisfy the ultimate customer.
Satisfy the supplier
A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are
purchasing goods or services.
External suppliers
A company must look to satisfy their external suppliers by providing them with clear instructions and
requirements and then paying them fairly and on time.
It is only in the company's best interest that its suppliers provide it with quality goods or services, if the
company hopes to provide quality goods or services to its external customers.
Internal suppliers
A supervisor must try to keep his or her workers happy and productive by providing good task instructions,
the tools they need to do their job and good working conditions. The supervisor must also reward the workers
with praise and good pay.
Get better work
The reason to do this is to get more productivity out of the workers, as well as to keep the good workers. An
effective supervisor with a good team of workers will certainly satisfy his or her internal customers.
Empower workers
One area of satisfying the internal suppler is by empowering the workers. This means to allow them to make
decisions on things that they can control. This not only takes the burden off the supervisor, but it also
motivates these internal suppliers to do better work.
Continuous improvement
The third principle of TQM is continuous improvement. You can never be satisfied with the method used,
because there always can be improvements. Certainly, the competition is improving, so it is very necessary to
strive to keep ahead of the game.
Working smarter, not harder
Some companies have tried to improve by making employees work harder. This may be counter-productive,
especially if the process itself is flawed. For example, trying to increase worker output on a defective machine
may result in more defective parts.
Examining the source of problems and delays and then improving them is what is needed. Often the process
has bottlenecks that are the real cause of the problem. These must be removed.
Worker suggestions
Workers are often a source of continuous improvements. They can provide suggestions on how to improve a
process and eliminate waste or unnecessary work.
Quality methods
There are also many quality methods, such as just-in-time production, variability reduction, and poka-yoke
that can improve processes and reduce waste.
History of TQM
Quality in Daily Life
Quality has been an age-old concern. The discerning customer in shops and market places has applied
quality techniques, prodding and turning fruits and vegetables testing for firmness, freshness and fitness for
the purpose of consumption. If the products were not adequate, the purchase would not take place.
In the hustle and bustle of cattle markets farmers argued and bartered over the fitness of animals for
breeding, dairy farming or consumption, providing evidence for their case by inspection against criteria
learned from their forefathers. Those shoppers and farmers passed on their knowledge to their children and
similarly it was passed on to their childrens children.
I too learned the principles of inspection and learning from my mother as she scrutinized clothes and
footwear, fruits and vegetables in our town market. Eager market traders would get short shrift from her if
clothes had weak stitching, zips got stuck when zipping, fruits were marked and bruised or vegetables
appeared old and unpalatable.
The issue of quality of goods and services is not new. Throughout history, society has demanded that providers
of goods and services should meet their obligations. As long ago as 1700 BC King Hammurabi of Babylon
introduced the concept of product quality and liability into the building industry of the time by declaring:
If a building falls into pieces and the owner is killed then the builder shall be put to death. If the owners
children are killed then the builders children shall be put to death.
Quality in the middle Ages
The maintenance of quality was one of the key functions of the craft guilds of the middle ages with only those
workers who could achieve acceptable quality standards being admitted to membership. Until the advent of
mass production, building quality into a product was the job of a craftsman, what Feigenbaum referred to as
operator quality control. Skilled craftsmen produced high quality products and had pride in their work.
Tradesmen gained a reputation for quality products through skilled craftsmanship that was maintained over
time by enforcing lengthy apprenticeship of newcomers to masters-of-the-trade. Tradesmen worked in small
tightly knit and controlled firms. Monopolistic guilds were organized to ensure achievement of a high level
skill and quality throughout its membership and the trade.
Quality during the Industrial Revolution
The industrial revolution revolutionized the manufacturing of products. Mass production set in large factories
employing armies of people gave rise to new management ways. There were workers, supervisors and
foremen, and managers. The establishment of factories and of this new organizational structure led to the
withering of many small business trades and the removal of apprentices and masters from positions.
Frederick Taylors scientific management brought in efficient operations to increase output through mass
production by breaking down jobs into parts with each part carried out by individual specialized workers.
Practical use of Taylors scientific management, built around specialization and the division of labor,
reached a high point with the advent of the mass production line with the workers performing repetitious
tasks on a mammoth scale.
Mass Production and Scientific Management
Mass production techniques reaped impressive early dividends. Henry Ford (1863-1947) built on the increased
productivity brought by mass production. There was, however, more to Ford than flow lines and workers
doing mindlessly repetitive tasks. Instead of controlling costs, to produce lower prices, Ford set the price and
challenged the organization to ensure costs were low enough to meet the figure. The trouble was that when
other manufacturers add extras, Ford lost touch with the aspirations of customers.
Compare this with the approach of Fords predecessors. The first carmakers, such as Frances Panhard et
Levassor, employed a small number of skilled craftsmen. The cars they produced were unique-- almost
prototypes-- with parts being filed and cut to make them fit. As the parts were of varying sizes, craftsmanship
was required. Ford bought in uniform and interchangeable parts. Skill departed and instead production was
based round strict functional divides, i.e. demarcations. At the center of Fords thinking was the aim of
standardizationsomething continually emphasized by the carmakers of today though they talk in terms of
quality and Ford in quantity.
Scientific management emphasized the divorce of conception from execution and the substitutability of labor.
The craftsmen concept disappeared with Taylorism and so did quality achieved through skilled
craftsmanship. Inspection, thus, remained the sole guarantor of quality. Quality was no longer built into the
product.
Quality between the World Wars
The effort of the First World War demanded yet more mass production. Quality became a pressing issue with
forces requiring reliable products to arrive on time. With this came the recognition that quality had been
central to the allies success in the war. This led to the formation of associations and institutes, and to the
publication of formalized ideas in quality. For example, in Britain, the Technical Inspection Association was
formed in 1919, becoming incorporated as the Institution of Engineering Inspection in 1922.
Quality of Manufactured Product. This gave the Taylorian discipline a much sounder scientific footing. It
converted statistical methods into a manufacturing discipline. A precise and measurable definition of
manufacturing control was worked out. Stringent techniques for monitoring and evaluating day-to-day
production and improving quality were dictated.
In 1932, Shewhart visited the University of London to lecture and to discuss his and others research ideas.
This visit attracted significant interest which led to the formation of the Industrial and Agricultural Section of
the Royal Statistical Society and the publication by the British Standards Institute (BSI) of the first standard
on quality control.
Japanese businessman Konosuke Matsushita-- the founder of one of the worlds largest electronics groups-was greatly influenced by the work of Henry Ford.
i)
ii)
iii)
iv)
From Ford, Matsushita was inspired by the prospect of mass production and also the concept of
using price reductions to generate more sales.
Matsushita followed the Ford-like objective of producing an inexhaustible supply of goods. But
to this, he added thus creating peace and prosperity throughout the land.
Ford was obsessed with production and forgot the broader view. Matsushita saw the company as
having a role in society.
The broader view of Matsushita was as follows:
a. Employees are important not mere functionaries ensuring a steady stream of products are
produced.
b. Customers are of course important.
c. Suppliers are also important - Matsushita was visiting the factories of his suppliers in the 1930s
and giving them advice on how to produce their products more effectively.
d. If there is an effective partnership, all sides win and society benefits from the prosperity
generated.
Matsushita was not alone. Other Japanese managers and their organizations seized the initiative.
After the war, they were guided by two Americans-- W. Edwards Deming (1900-93) and Joseph
Juran (1904- )
Quality after the Second World War
The Second World War again knocked industry off-balance. Priority was given to meeting delivery dates at
the expense of standards in the product. In the UK the SR 17 statistical advisory unit of the ministry of supply
was established. This unit made an important contribution to the industrial war effort, but quality was to have
lean years in the UK after the war was over.
In North America the wartime effort had a more profound and longer lasting effect. Thousands of quality
specialists that had been trained mostly by the War Production Board formed the American Society for
Quality Control (ASQC). ASQC expanded its membership to about 50000 in 29 specialist divisions. However,
the real success story for quality thinking emerged in one of the defeated nations. The Japanese launched a
new nationalistic drive for expansion, pursuing economic rather than military goals. Following the Second
World War Japans industry was devastated and the goods it produced were known for their indifferent
quality. For example, in the 50s and 60s Japanese cars were virtually impossible to sell in the United States or
Europe. A major thrust in Japanese manufacturing was to tackle these difficulties by employing and
developing quality approaches.
After the war many top industrialists were sacked and their successors subsequently promoted from
operational areas. Foreign lecturers were invited to present their quality initiatives and to offer courses and
training for Japanese managers.
A famous guru who played a major role in this process of improvement was W. Edwards Deming, but there
were others from the United States such as J. M. Juran . They had the benefit of an intimate involvement in
working out sound quality techniques during the war and in the post-war period. The two had also worked in
the mid-1920s in Western Electric Co. were both influenced by Shewhart.
The American Approach to Quality
The failure of American corporations to listen to Deming and Juran has often been commented on. In
retrospect it appears to be one of the centurys most profound errors. At the time, however, it was
understandable. In terms of quality, American products were as good as European ones and far better than
those produced in Japan. The American preoccupation was on lowering prices and the vehicle for achieving
this was generally recognized to be lowering labor costs. The innovation strategy favored by the United States
in the post-war years was the only strategy in a period of low-cost resources, expanding markets and low
international competition. At that time, quantity was more important than quality and management was more
concerned with increasing sales than with reducing costs. Western industry believed this would last forever
and ignored the quality-based teachings of experts such as W. E. Deming and Joseph Juran, who,
consequently, decided to turn their attention to the East.
In Harvard Business Review article (1993), Juran also made much of the fact that his Japanese audiences in
the early 1950s were the chief executives of major corporations, whereas his North American listeners were
primarily engineers and quality inspectors. Jurans message was not, he admitted, new or revolutionary.
Making things to a specific design and then inspecting them for defects was something the Egyptians had
mastered 5000 years previously when building the pyramids. The American engineers werent ready for
history lessons.
Deming was similarly well received in Japan. In 1951, the first award ceremony for the now prestigious
Deming Prize was held
Japans Approach to Quality
Japan, having been burned to the ground during the war, encouraged a climate of change from the start.
Japanese managers took seriously the warnings about forthcoming changes in the customers perception of
quality and about the future demands for faster development of customer-oriented products and services. So
they successfully combined the strategy of innovation with that of continuous quality improvement. This
brought a reduction in costs, faster development times, prompt deliveries, customer satisfaction and enormous
competitive advantage internationally. The Western approach was always based on the belief that innovation
alone was enough for survival and growth. This has already been proved wrong on many occasions. The
timing of Juran and Deming in Japan was impeccable. But, it was not only a question of arriving at a time
when the Japanese were striving to rebuild their economy. Their ideas struck a chord in the East. Their
emphasis on groups rather than individuals was attractive to the Japanese, while it simply failed to ignite a
spark in the United States. Western preoccupation with individual achievement meant that sublimating
individual aspirations to group consciousness was a quantum leap rather than a logical progression. Japanese
industry was particularly receptive to the quality message for a number of reasons.
Some of them are as follows:
i)
ii)
iii)
The long-established Japanese tradition of fine craftsmanship and attention to detail through
miniaturization struck a chord with these concepts.
The strongly statistical flavor of the early work with its emphasis on quantifying variation in
quality fitted well with the Japanese penchant for numbers.
Quality was seen as a national survival strategy. It was felt that the only way Japan would be able
to afford the food and materials that it needed, being poor in natural resources, was to export goods
of high quality at low prices. Quality was thus a key objective.
The success of Japanese manufacturers during the 1960s and 1970s changed the emphasis from a quality
control approach to a quality assurance approach requiring more of the business functions to be involved in
the management of quality and requiring longer implementation timescales. By the 1970s the Japanese had
become masters at achieving quality in their manufacturing sector. But they did not sit back on this
achievement. They built on the technology transfer that had happened from the West to Japan. Even today,
the Japanese remain hungry for new innovative ideas sending their senior academicians to leading research
groups in the West. They have not given up their quest for superior production by continuous improvement in
knowledge, methods and techniques.
The Japanese were well adept in switching commercial interests from competition in productivity to
competitiveness in quality. In winning the quality challenge, the Japanese were able to achieve a massive
increase in their export levels that rocked Western economies. Negative trade balances with Japan hit many
Western countries. The Japanese quality revolution enabled them to achieve immense economic power,
dominating world trade. The Japanese success story urged some managers in Western and other countries to
wake up to the quality issue. People recognized that Japanese success was not only due to national, cultural
and social differences but also reflected strongly a new attitude and desire of Japanese management to ensure
that consumers receive what is promised. By the 1980s Japans huge success made evident the direct link
between quality and viability of organizations and economies.
The 1980s, therefore, became an era of competitive challenge with increasing number of companies adopting
quality management. Many consultancy companies latched on to quality training and intervention as main
services they can offer. This added significantly to the general awareness of quality management. The
development of International Quality Assurance Management System Standards in the 1980s also acted as a
catalyst in many countries, setting off joint management and quality thinking. The Japanese rapidly went
beyond quality in production, recognizing the importance of quality in management. They devised several
strategies that formed the basis of much of todays international efforts.
These are summarized below:
i)
ii)
iii)
iv)
In Total Quality Management everyone in the organization is involved in developing an improvement and
prevention orientation which focuses upon the customer through teamwork. The 1990s has seen quality
management become the international management philosophy continuing into the new millennium today.
Let us now try to understand what total quality management quality actually is.
7. DIMENSIONS OF QUALITY
Performance: Primary product characteristics, such as the brightness of the picture.
Features: Secondary characteristics, added features, such as remote control.
Conformance: Meeting specifications or industry standards, workmanship.
Reliability: Consistency of performance over time, average time for the unit to fail.
Durability: Useful life includes repair.
Service: Resolution of problems and complaint, ease of repair
Reputation: Human-to-human interface, such as the courtesy of the dealer.
Aesthetics: Sensory characteristics, such as exterior finish.
Response: Past performance and other intangibles, such as being ranked first.
Therefore, quality products can be determined by using a few of the dimensions of quality.
MANUFACTURINGINDUSTRIES
Product
features
Performance
Reliability
Durability
Ease of use
Serviceability
Aesthetic
Availability
Reputation
SERVICE INDUSTRIES
Accuracy
Timeliness
Completeness
Friendliness
Courtesy
Anticipating customer needs
Knowledge of server
Aesthetic
Reputation
QUALITY ELEMENT
PREVIOUS STATE
Definition
Product oriented
Customer oriented
Emphasis
Detection
prevention
Errors
Operations
System
Quality control
Everyone
Managers
Teams
Price
Priorities
Decisions
Responsibilit
y
Problem solving
Procurement
Managers role
TQM
8. GURUS OF TQM
Shewhart
Deming
Juran
Concepts of Shewhart
Return on Investment
Feiganbaum
Ishikawa
Crosby
Quality is Free
Conformance to requirement
Taguchi
Cost reduction. When applied consistently over time, TQM can reduce costs throughout an
organization, especially in the areas of scrap, rework, field service, and warranty cost reduction. Since these
cost reductions flow straight through to bottom-line profits without any additional costs being incurred, there
can be a startling increase in profitability.
Customer satisfaction. Since the company has better products and services, and its interactions with
customers are relatively error-free, there should be fewer customer complaints. Fewer complaints may also
mean that the resources devoted to customer service can be reduced. A higher level of customer satisfaction
may also lead to increased market share, as existing customers act on the company's behalf to bring in more
customers.
Defect reduction. TQM has a strong emphasis on improving quality within a process, rather than
inspecting quality into a process. This not only reduces the time needed to fix errors, but makes it less
necessary to employ a team of quality assurance personnel.
Morale. The ongoing and proven success of TQM, and in particular the participation of employees in
that success can lead to a noticeable improvement in employee morale, which in turn reduces employee
turnover, and therefore reduces the cost of hiring and training new employees.
However, TQM also requires a significant training period for those employees involved in it. Since the training
can take people away from their regular work, this can actually have a negative short-term effect on costs.
Also, since TQM tends to result in a continuing series of incremental changes, it can generate an adverse
reaction from those employees who prefer the current system, or who feel that they may lose their jobs
because of it.
TQM works best in an environment where it is strongly supported by management, it is implemented by
employee teams, and there is a continual focus on process improvement that prevents errors from occurring.
11. OBJECTIVES OF TQM
Process improvement
Defect prevention
Priority of effort
Developing cause-effect relationships
Measuring system capacity
Developing improvement checklist and check forms
Helping teams make better decisions
Developing operational definitions
Separating trivial from significant needs
Observing behavior changes over a period of time
12.
Overview of the contributions of Deming, Juran Crosby, Masaaki Imai, Feigenbaum, Ishikawa, Taguchi
techniques introduction, loss function, parameter and tolerance design, signal to noise ratio. Concepts of
Quality circle and Japanese 5S principles .
Quality improvement
Quality control
This kind of production system is based on market forecast, is good when there is demand.
End up with huge inventory of unsold products and excess capacity, and then borrow money to carry that
inventory. By that time, acquired too many people for every process.
Contribution of Armand V Feigenbaum
Defined as quality as Total quality control is an effective system for integrating the quality development,
quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable
production and service at the most economical levels which allow full customer satisfaction.
Industrial cycle
Ongoing sequence to bring products or services to the customer including the activities like marketing,
purchasing, design, engineering, manufacturing, production, inspection , packaging, delivery, installation and
service.
Maintained that responsibility of quality was not the sole preserve of the quality professional but was the
responsibility of all.
The fundamental concept is quality is everybodys job Management and Operators cannot totally delegate
authority and responsibility and still expect a satisfactory product.
The two basic responsibilities are:
1. Provide quality assurance for the business products.
2. Assist in assuring optimum quality costs for those products.
Hidden Plant
One of the more well known concepts developed by Feigenbaum was that of the hidden plant. He
maintained that within every company or factory a proportion of the capacity was wasted by not getting it
right first time.
Quality control
Emphasizing that human relation was a basic issue in Quality control activities, and such things as statistics
and preventive measures were only a part of the whole equation.
Quality is what suits the customer at the right price for both the provider and customer and a common
sense approach to quality standards, conformance, corrective actions, and planning for improvement is the
control required to gain that quality.
By stimulating and encouraging everyone in an organization to realize their responsibilities and potential
effects on the quality of a product or service.
Crucial elements of Total Quality
The elements of total quality to enable a totally customer focus (internal and external)
1. Quality is the customers perception of what quality is, not what company think it is.
2. Quality and cost are the same no different.
3. Quality is an individual and team commitment.
4. Quality and innovation are interrelated and mutually beneficial.
5. Managing Quality is managing the business.
6. Quality is a principal.
7. Quality is not a temporary or quick fix but a continuous process of improvement.
8. Productivity gained by cost effective demonstrably beneficial Quality investment.
9. Implementing Quality by encompassing suppliers and customers in the system.
Contribution of Kaoru Ishikawa
Biggest contribution is in simplifying statistical techniques for quality control in an industry.
Ishikawa sees the Cause-and-effect diagram or Ishikawa Diagram, like other tools, as a device to assist groups
or quality circles in quality improvement.
Other than technical contributions to quality, Ishikawa is associated with the Company-wide Quality control
(CWQC) movement as implies that quality does not only mean the quality of product, but also of after sales
service, quality of management, the company itself and the human life.
The outcomes of such an approach are(Company-Wide Quality benefits):
o Product quality is improved and becomes uniform. Defects are reduced.
o Reliability of goods is improved.
o Cost is reduced.
o Quantity of production is increased.
o Wasteful work and rework are reduced.
o Technique is established and improved.
o Expenses for inspection and testing are reduced.
o Contracts between vendor and vendee are rationalized.
o The sales market is enlarged.
o Better relationships are established between departments.
o False data and reports are reduced.
o Discussions are carried out more freely and democratically.
o Meetings are operated more smoothly.
o Repairs and installation of equipment and facilities are done more rationally.
o Human relations are improved.
Is a main ingredient of Ishikawas company-wide quality control consisting typically 5-10 personnel who meet
at regular interval led by supervisor or team leader, aim to contribute to and improve processes and activities,
build up job satisfaction and company loyalty and utilize existing and hidden resource potential?
Ishikawa s PDCA Model
Plan
Determine goals and targets
Determine methods of reaching goals.
Do
Engage in education and training
Implement work
Check
Check the effects of implementation
Act
Take appropriate action.
5-S: HOUSEKEEPING
CLEARING
SEITON
ARRANGING
SEISO
SWEEPING
SEIKETSU
CLEANLINESS
SHITSUKE
DICIPLINE
5-S CONTRIBUTES TO
SAFETY
QUALITY
PRODUCTIVITY
5-S FACILITATES
VISUAL CONTROL
13. TQM processes - understanding processes and methods for process improvement
Understanding processes is essential before attempt is made to improve them. This is a central aspect to Total
Quality Management, and also to more modern quality and process improvement interpretations and models
such as Sigma. More about Total Quality Management process and process improvement methods.
A wide range of tools and techniques is used for identifying, measuring, prioritizing and improving processes
which are critical to quality. Again these ideas and methods feature prominently in modern interpretations of
Total Quality Management methodology, such as Six Sigma. These process improvement tools and techniques
include: DRIVE (Define, Review, Identify, Verify, Execute), process mapping, flow-charting, force field
analysis, cause and effect, brainstorming, Pareto analysis, Statistical Process Control (SPC), Control charts,
bar charts, 'dot plot' and tally charts, check-sheets, scatter diagrams, matrix analysis, histograms. More about
tools and techniques for process evaluation and improvement.
deeplythinking.wordpress.com
Since the 1980s, several important quality management systems, or programs, such as ISO 9000, TQM, SixSigma program, Reengineering, and Toyota production system (or lean production), has been launched. Most
of these qualities essential have been extensively accepted by industries around the world. All the firms
anticipate good results from the implementation of these quality programs.
Todays consumers claim and expect high quality of product. Business organizations that do not work towards
achieving good quality risk their survival in the market in the long run. World-class organizations such as,
General Electric, Motorola, Toyota, Amul its attribute their success to having one of the best quality
management programs in the world.
General Electric
Armand Feigenbaum has joined General Electric since 1944. He used the statistical techniques to improve the
product quality while he was working in the jet engine factory. But Feigenbaum also used the concept of costof-quality and adopted a user-based approach to quality. He devised the concept of Total Quality Control, later
known as Total Quality Management (TQM).
He thought that this approach requires the management and employees to have an understanding of what
quality means and its relation to the companys benefits. He emphasized that quality assurance cannot be
achieved by the control just on the production process. Thus he propounded the concept of Total Quality
Control in 1956. (Corporation, 2012)
Based on the corporate philosophy of 'customer first' and 'quality first' since its founding, Toyota Motor Co.,
Ltd. won the Deming Application Prize in 1965 and the Japan Quality Control Award in 1970, following the
introduction of statistical quality control (SQC) in 1949, and has conducted Total Quality Management
(TQM) based on the unchanging principles of 'customer first', Kaizen (continuous improvement), and 'total
participation'. As a result, the basic concepts of TQM and problem solving as well as Kaizen (continuous
improvement) through creative innovation spread throughout the company and took root, contributing to
higher product quality and work quality at all levels and ranks and improving the vitality of individuals and
organizations.
Amul
The enthused and dedicated workforce of AMUL- who are committed to produce wholesome and safe foods
of excellent quality to remain market leader through the use of quality management systems, state-of-arttechnology, innovation and eco-friendly operations to achieve satisfaction of customers and betterment of milk
producers.
The beginning of Total Quality Management (TQM) way back in 1994 was to work with the well
known quality management initiatives which had proven to be successful elsewhere to create a
culture of transparency, openness and leadership in the organization. Realizing that with
emerging competition, doing business would become more exciting yet extremely competitive
which would require at a time not only a whole set of new skills and competencies but quick
flexibility to change without much pressure or turbulence. As a very unique measure Amul
extended all the TQM initiatives to its business partners, whether it was the former producer in
the village or a wholesale distributor in a metro town or its most sophisticated production unit.
From the strength of Total Quality Management initiative Amul went on to implement a Quality
Management System of International Standard. Amul has been the first dairy in India to get
accredited with certification of ISO 2200:2005 & ISO 9001 for its operations and plants. Further
Amul has set an example that village Dairy Co-operative Societies could also achieve this
milestone as these societies are accredited with ISO 9001:2000 a remarkable achievement in the
history of India.
Motorola
"Quality is a way of life in a business, not an advertising term."-- Robert W. Galvin, President,
Motorola Inc., October 1962, Quality Assurance magazine.
In 1980, Motorola took the first step by establishing the position of Corporate Quality Officer. In
1981, the Motorola Training and Education Center (MTEC) was established, providing employees
with instruction and coaching in quality process and participative management skills. In 1989,
MTEC became Motorola University, an institution that remains an integral component of the
Motorola culture today.
By the end of the 1980s, Motorola had grown into a worldwide supplier of cellular telephones.
But, the Japanese were still considered the undisputed leaders in the electronics market. A 1986
benchmarking study revealed that while we had made significant strides in quality, we needed to
prove that we could compete with the Japanese by creating products that were of equal and
higher quality. It was out of this realization that the Six Sigma quality initiative was born in 1987.
The investment in Six Sigma paid off, and in 1988, Motorola was the first large companywide
winner of the Malcolm Baldrige National Quality Award, awarded by the U.S. Congress to
recognize and inspire the pursuit of quality in American business. (Quality Magazine, 2003)
These companies have had a chief goal to achieve total consumer satisfaction. To this end, the
efforts of these organizations have included eliminating almost all defects from products,
processes, and transactions. Both companies consider quality to be the critical factor that has
resulted in significant increases in sales and market share, as well as cost savings in the range of
millions of dollars.
2.4
1. The basic principles for the Total Quality Management (TQM) philosophy of doing business
are
a. to satisfy the customer,
b. satisfy the supplier,
c. continuously improve the business processes.
d. all of above
2. The industrial revolution revolutionized the
a. manufacturing of products
b. service sector
c. art sector
d. none of he above
3. TQM refers to approach by management
a. an integrated
b. dedicated
c. centralized
decentralized
4. devised the concept of Total Quality Control
a. Armand Feigenbaum
b. P.V. Mehta
c. Demming
d. None of the above
5. ..took the first step by establishing the position of Corporate Quality Officer
a. AMUL
b. Motorola
c. General Motors
Summary
2.6
Glossary
2.7
References
2.9 Question