4/12/2010

Total Quality Management (TQM)

Total Quality Management
Definition

Management approach of an organization • Total – Made up of Whole

centered on quality based on the
participation of all members and aiming at
long term success through customer
satisfaction and benefits to all members of
organization and society
(ISO)
• Quality – Degree of excellence a product
or service provides
• Management – Act, art or manner of
handling controlling,
handling, controlling directing etc

Why Quality needs to be

Ingredients of TQM
Managed?
• Leadership – Involvement by top management
• Q
Question
ti off survival
i l in
i an iintense
t • Participatory
P ti i t – Every
E process, job,
j b person
competitive environment • System approach – Integration of various
aspects of organization
• Increasing Customer Consciousness • Continuous improvement – Quest for progress
and improvement
• Total Customer satisfaction
• Need for earning profit instead of making
profit • Key objective of improving quality

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Quality management – leading thinkers

• Philip Crosby – Quality without tears

• W Edward Deming – Statistical Process
Control
• Joseph M Juran – Planning, control and
Improvement
• Armand V Feigenbaum – Total quality
Control

Japanese Quality Gurus The PDCA Cycle

• Developed by Schewart and modified by
• Kaouru Ishikawa – Quality Circles and Deming
Deming, a continuous improvement
methodology
Cause and effect analysis
¾Plan – Establish plan for achieving goal
• Shigeo Shingo – Zero Quality control,
¾Do – Enacting the plan or doing
Mistake proofing
¾Check – Measuring and analyzing results
• Genichi Taguchi – Loss function
¾Act- Implement corrective actions

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Strategic Considerations
• Business survival possible only by quality
improvement
• Strategy changed to customer focus from
return on investments
• Liberalization, globalization & competition
paved the way
• Promotion by government and industry
associations

Strategic Quality Planning

• Quality Mission – purpose of existence

• Quality strategy and policy – Leadership,
Leadership
people management and process
• Principles and values – creation of
environment
• Organization and process – size, coordination,
teams
• Education plan – Equip people
• Tactical plans
• Resources – money, time

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Approaches to strategic quality

Quality Policies
management
• A focus on customer needs – by SWOT analysis • A policy is a broad guide to action. It is
• Leadership
L d hi by b upper managementt to t develop
d l statement
t t t off principles.
i i l
quality goals and strategies
• A policy differs from procedure, which
• Translation of strategies into annual business details how a given activity is to be
plans
accomplished.
• Implementation of actions by line departments
i t d off relying
instead l i on a quality
lit department
d t t • The subject matter of quality policies are
tailor-made for each company

Formulation of quality goals -

Quality Goals
• A goal or objective is a statement of the desired
result to be achieved within a specified time – an
aimed at target.
• These goals then form the basis of detailed
planning activities
• Tactical goals are short range (1 year) and
strategic goals are long range (5 years)
• Goals may be created for breakthrough or
control
Inputs
• Pareto analysis – field failures, complaints, returns,
scrap, rework, sorting
• Proposals from key insiders – managers , supervisors,
union shop stewards
• Proposals from suggestion schemes
• Field study of users needs, costs
• Data on performance of product vs. competitors
• Comments of key people outside company – customers.,
vendors, journalists, critics
• Findings and comments of government regulators,
independent labs, reformers.

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Implementing Total Quality –

Organization for TQM
5 Phases
1. Decide on different approaches – SPC, Quality circles, • A structure is to be created for TQM
Benchmarking g
2. Prepare by giving training to upper and middle promotion
ti which
hi h consists
i t off problem
bl
managers solving teams and control points
3. Start - includes more training, pilot quality projects,
revision and expansion of systems
4. Expand the new approach to other units by setting • In the basic structure first the CEO learns
teams, measurement systems
5. Integrate - quality becomes a way of life, strategic
it and CEO needs a coordinator reporting
goals are finalized and deployed at various levels with a steering committee

Organization for TQM Role of TQM Coordinators

• Apex TQM steering committee – with a • TQM coordinator does designing,
f ll time
full ti coordinator
di t planning,
l i educating,
d ti f ilit ti
facilitating, reviewing,
i i
• Divisional TQM steering committee with building conviction and acting on
full time coordinator secretariat
• Departmental TQM steering committee • Steering committee provide direction, goal,
with part-time TQM champions resources, review and carryout events
• TQM teams involve all . Examples are
Quality circles and TPM circles

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TQM Team Roles Training for TQM

• Class room education

Cl d ti – external
t l and
d iinternal
t l
• Self development – Distance education
• Sponsor – Influencing and authority
• Mutual development – Team problem solving
• Team Leader – manages Team
• On the job training – working on assignments
• Facilitator – Catalyst in a team • Mentoring g – workingg under an experienced
p and
• Team Member – Work on Problems trusted advisor

Work practices for promoting learning

• Establishing standards – locking learning in

• Preventing recurrence – learning from past
• Making improvements – problem solving
• Averting problem recurrence – learning
through prevention
• Benchmarking – identification of best practices
• Participating in campaigns – 5S campaign
• Working in teams – mutual development
• Experimenting – learning by creation