Total Quality Management

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1 Total Quality Management

2 Total Quality Management (A New Culture) Worldwide competition demands from any corporation the following ability characteristics: 1. To understand what the customer wants and to provide it, immediately on demand, at the lowest cost 2. To provide products and services of high quality and reliability consistently 3. To keep up with the pace of change technological, political and social 4. To be one step ahead of customer s needs i.e. to predict what the customer will want one year or ten years from now TQM is an effective means to attain the above mentioned characteristics. TQM is a brand new culture: Advocating total commitment to customer satisfaction Continuous improvement and innovation in all aspects of the business. 2

3 TQM defined Sashkin and Kiser define TQM as: Creating an organizational culture Committed to continuous improvement of skills, processes product and service quality To ensure customer satisfaction Objectives of TQM are: 1. Total transformation of existing management culture in which there is no room for complacency and half-hearted measures 2. Commitment to continuous improvement in all aspects of business 3. Total commitment to customer satisfaction 3

4 Evolution of the concept of TQM TQM Started with the concept of quality control-involved testing and inspection of the end product Gave way to Quality Assurance also involved inspection of the production process and equipments Then came TQM involved assuring quality of various aspects of business system Product design and development production purchase marketing financing technical and administrative systems and procedures It also aimed at:- Active involvement of all the employees in the pursuit of quality Infusing a spirit of continuous improvement Satisfying even changing needs of the customer 4

5 Eight rules of TQM philosophy Quality is everyone s job Quality stems from prevention not inspection Quality should meet the needs of customer Quality necessitates team work Quality requires continuous improvement Quality embraces strategic planning Quality means results Quality demands clear measures of success 5

6 Features of TQM 1. Commitment to customer satisfaction 2. Continuous search for sources of defects to eliminate them 3. Participative management 4. Concept of internal customer 5. Emphasis on both statistical quality control and statistical process control 6. Competitive benchmarking 7. Emphasis on SMTs and teamwork 8. Emphasis on continuous training 9. Top management support on an ongoing basis 6

7 Various Techniques and Approaches of TQM Quality circles Statistical process control Employee participation/ empowerment Benchmarki ng Statistical quality control Self managed teams and task forces Process reengineering 7

8 Implementation of TQM Plan-Do-Check-Act cycle for the implementation of TQM Act Measures for Improvement Policies and Objectives Plan Prevent undesired effects Analyse Results Methods to achieve objectives Education and Training 8 Check Observe Results Implement ation of change Do

9 Steps in PDCA Cycle 1. Lay down policies and objectives of TQM 2. Chalk out the methods to achieve TQM objectives 3. Educate and train the workers and managers to understand and meet the requirements of TQM 4. Start the operation of TQM 5. Observe results of operations find out causes of nonconformance, if any, to quality standards 6. Analyse results and determine consequences of nonconformance 7. Understand employees concerns and views to prevent undesired effects in quality improvement 8. Suggest measures for improvement of methods and designs in future 9

10 Problems in Implementation of TQM Initial union resistance Managers perception of threat to power in delegating responsibility to SMTs Managers resistance to shift to coaching and supporting roles Failure to align change in organizational structure and strategy with requirements of TQM 10

11 Requirements of Success in TQM 1. Top management s commitment to TQM philosophy 2. Effective communication of TQM philosophy to all in the organization 3. The participation of all the employees should be encouraged 4. Managers and workers should be given necessary training for implementing TQM 5. TQM should integrate the operations of various departments 11

12 TQM in India Concept of quality control existed since 1956 when Industrial Policy Resolution was adopted not very effective Announcement of Industrial Policy in 1991 liberalization, privatization and globalization Global Competition survival of the fittest- quality according to international standards became a compulsion to compete with multi-nationals and increase exports Several companies in India acquired the ISO certification ISO 9000 stands for quality standards established by the International Standards Organization, Geneva (Switzerland) 12

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