Trace TQM Orientation & Application in variousNational Setup

Outline the Quality movement in Japan – The SuccessStory from Poor Quality manufacture to World Leaders

Japanese Quality Control Circle Movement forEnterprise-wide Quality Control Mechanism

Characteristic Quality Control Features in AmericanQuality management System

TQM Practices in European Countries

Quality problems in Developing Nations

Convergence of Varying Notes & Analyse Patterns inTQM Practices

Current Overview of TQM Applications in ServicesSectors.

Much of the Business success, over the Past

Decade has been Predominantly driven by TQM,

JIT, CIMS and the like. TQM has played a

Pivotal role in shaping and influencing business

success. Effective adoption and diffusion of

TQM in Organisations has, therefore, become an

important Managerial concern.

Therefore it is intended to Highlight how TQM

has been adopted and Diffused in various

Different Set-ups in different parts of the globe.

Japan has come a Long Way from Poor Quality

Manufacturer (1940s), to Leading Quality

Manufacturer

It is because of the Scientific Planning, Quality

Orientation & Commitment at all Levels

Prior to World War II, Japan was in Export Business

with Mass Production of Low Quality Consumer

Goods, but the war Shattered their Economy

Thereafter, it Emerges as a Major Industrial Power

with the able Leadership, where Quality becomes a

world-wide Bench-mark for Japanese Product.

The efforts to study the Quality Control in Japan was startedin 1949 by the Union of Japanese Scientists & Engineers(JUSE) to provide educational programs to the Firms

By studying the Foreign Practices through exchange programs& sharing of Experience, the Group of Top Managers, QualityManagers, Professors, Specialists & Technical Personnelbecome aware of the various Quality Aspects

Through “Statistical Quality Control” magazine JUSE broughtup the Quality Revolution with statistical methods &techniques

“Demings Prize” for quality in 1951, brought up QualityConsciousness in the Japanese Firms

Dr. J.M.Juran‟s Lecturer on “Planning & Practice in QualityManagement preached Quality begins from Design & ends atCustomer Satisfaction

The concept of “Total Quality” for Company's‟ success is usedthereon

By the lunching of Quality Control Movement &

promoted by Industrial Management Arena in Japan

from 1955-60 “Years of TQC” was prevailed by

implementing Company-wide-quality control practices

It started with the progress of Inspection Oriented

Quality Assurance, to Production Process, Control

Oriented Quality Assurance finally to New Product

Development Oriented Quality Assurance

Quality Control Standards in Japanese firms are now

very Stringent with a large number of companies

reporting under 5% defect rate and quite a few firms

exhibiting ½ - 1% defect rate. The emphasis is on Zero

defect Programme

In April 1962, a Japanese magazine “Gemba-To-QC (Quality Controlfor the Foreman or FQC)” paved the way to Q-C circle activities. Thepublication‟s editorial committee established the following goals:1. It must be directed towards the first-time supervisors &

foremen;2. It must educate, train & advocate the use of Q.C. Techniques;3. It must aid in the organisation of a group called “Q-C circle at a

workshop level”;4. It must encourage foremen to subscribe to the magazine on their

own account. The concept of QC Circle is adopted, because of the Compulsion ofCircumstances prevailing and through the Peer Groups (mini circles)in different Functional Areas like Productivity, Efficiency, CostEffectiveness, Jigs & Tools, Design of Products & Processes,Facilities Planning, Production Control and Productivity. Today,there are more than 1 Million circles operating in Japan.

QC concept is further extended to include Joint QC between differentFunctional Areas.

Japan is a Country of Small Islands with limited

Natural Resources

Most of the Raw Materials Imported, and for the

Growth & Survival of Industries, Export has to be

Promoted in a big way

This leads to emphasis on Quality to compete in the

World Market

This was achieved by adopting a 6 Point

programme including Quality audits, Promotion for

Good quality, Quality trainings, Use of Statistical

methods, Control activities and Quality circles etc.

Japan's success is characterised by Small-lot production, Just-in-time Purchasing, Extensive Preventive Maintenanceprograms, Automated Equipment & Robots, together withWorker Involvement and Responsibility. These togetherconstitutes some of the Ingredients of TQM

Considerations in implementing QC programmes needs TopManagement involvement, Emphasis on Training, Building aFormal Organisation, use of In-Formal QC Circles and givingRewards

Company-wide-quality-control, is emphasised onparticipation by and cooperation of all members includingOwners, Managers, Supervisors & Operators coveringactivities like Market Research, R&D, Production Planning,Designing, Production Preparations, Purchasing & Sub-Contracting, Manufacturing, Inspection, Sales and After salesservices as well as Personnel and Education

The core Quality activities involve:› Activities targeted towards the customer in realising theproduct performance, reliability, safety, usage, economy,servicing and the like that customers demand

› Activities for rationally and economically realising throughutilisation of statistical and other scientific approaches

› Activities are not only implemented by the manufacturingdivision such as production and inspection alone but also byall the individual divisions ranging from surveying throughplanning, developing and production to sales for resolution ofquality assurance problems etc.

› Participation of staffs all the way advances properly throughthe leadership rather than handful of persons

The Japanese approach specifically requires Total Involvementof people for QC. The western approach for QC is heavilycommitted to the Establishment of sophisticated systems, plans& procedures and Inspection

The Japanese rely Far more upon the development, training andInvolvement of its people

USA is on Crossroads, regarding Quality today. Inspite of the Factthat the Latest Techniques & concepts of SQC and TQC still theJapanese concepts QC Circles and Company-Wide QC inSynchronisation with Orientation & Development in Philosophygoes much Faster and Rapid success in Implementation

American companies remain concerned in Detecting & Segregatingthe Defecting ones from the Good ones while the Japanesecompanies devised systems to reduce Defects and Produce Goodquality Products

This resulted in America losing its position of dominance not onlyin American Market but also in the World

Much of the Quality Movement Tools & techniques used in USAare developed in Japan which requires complete re-development inboth Methods and Emphasis

The most critical challenge in US Quality Movement is thedevelopment and implementation of Quality Focussed CorporateManagement Systems that achieve the Coherence, Integration &Comprehensiveness of Quality Management in Japan (Easton, 1993)

The American companies are Characterised by-› A high concentration of Industry in relatively few Companies

› Stress on Promoting Share-Holders and

› Running the Companies by Professional Managers

Marguardt (1988) divides the Evolution of QualityMovement in USA in 3 Periods1. Advocates for SQC – Emphasis on Technical Tools of

Control charts, Lot Inspection and Sampling Schemes

2. Administrators for systems of Quality Control – Emphasison the Cost of Quality & Managerial Aspects of Organisingthe Quality

3. Advertising & selling Quality Consciousness – Emphasis onchanging organisational culture & providing an Environmentthat will enable people to activate and sustain Quality in theirown work and in products & services produced by theorganisation with the focus on needs of customers

Initially the American industries followed the Europeantraditions of relying on the foremen & Workmen forensuring Quality. However, as the industries expanded &Automation increased, the American industries embracedthe Taylor system of Scientific management

The Taylor system Primarily aimed at improvingProductivity by separating Manufacturing Planning &Execution

This required, for Quality Function, the responsibility forquality to be delegated to inspectors who are organised in toa central inspection department

Taylor System extends the Quality improvement effort byforming the separate staff specialists as Quality Engineers,who are strongly oriented to the Quality Function, andplayed a crucial role in distributing latest Techniquesdemanded by the emerging quality functions

The American Quality Improvement efforts arecharacterised by› A professional approach to management

› Continuous training of managers & specialists

› High investment in precise machinery tools, measuringinstruments & technology to improve quality

› Research to understand the needs of the market and

› Emphasis on increasing the production capacity to avoidshortage of goods

The inherent drawback associated with it, affected theperformance of industries in Quality Matters. Thisrestricts the person only to the performance of Physicaltasks

This is proved beneficial in Mass Production, but evennow is not a wholly inefficient system of management

Easton (1993), based on his experience as a member of the boardof examiners of the Malcom Bridge National Quality Awards,critically assesses the current state of TQM in USA. He outlinesthe approaches of US Companies which limits realisation ofTQM‟s full potential in United states as:› The scope of the concept of “process” in TQM is not fullyunderstood by most managers. This lack of understanding ofprocess is related to the persistent result oriented perspectiveof most managers

› Lack of effective management by fact› The primary focus of the quality effort is one of the workforcebecause of which roles for all levels of management andtechnical staff are not developed

He, therefore, feels that TQM in the US is far from mature andneeds continuous development, refinement and expansion inorder to realise and maintain competitive advantage

During Industrialisation Era, European countries are consideredas the Front runners in Quality of manufactured products. Eachnation claims specialisation in one product.

This leadership is due to the advances in technology, Europeanindustries are in the fore front in developing new products,processes, measuring instruments and were among the leaders inadopting national & international standardisation ofmethodology, materials and tests.

Despite extensive national & industrial differences, the Europeanindustries are characterised by:› High degree of autonomy› Closely held ownership› Practice of modern management techniques› Wide application of government regulations to quality withparticular emphasis on health and safety

Significant contributions of Dale, Oakland and the emergence ofsingle European market, the scenario is changing rapidly andmore and more organisations embracing TQM Technology

Lampocht (1993) outlines Quality movement in Frenchindustry. He states the characteristic features of FrenchFactories as:› Overly centralised decision making› Management‟s unwillingness to delegate authority› Paternalistic attitude towards workers› Resistance to change› A general reliance on technical specialists rather than operators tosolve machine or operation related problems

In France, the biggest potential market for qualityimprovement is in service industry as French do not believethat:› Excellent customer service is valuable› Service is an important investment› Quality is primarily management‟s responsibility› A customer is already a customer before buying anything› For service to be of good quality, everyone inside the companymust contribute to it

He further outlines the characteristic features of

European TQM efforts as:

› Recognition of versatility of demands of customers

among the different European members

› Technical expertise

› Concern for product quality

› Customer satisfaction as a major management objective

› Effort to obtain ISO 9000 certification

Juran (1974) found that the Dutch government supportsthe application of Total Quality Control in thecompanies. A survey carried out by Baluw and During(1990) in 98 Dutch industrial firms reveals that:› Few companies have documented the elements of their TQCsystem

› In quality policy & objectives, product characteristics such asdurability are emphasised more than costs

› The evaluation of quality control systems are poor

› Most firms have policies & procedures with respect to qualitycontrol, but fewer et quality objectives

› Design/development activities are often not based on marketanalysis & product requirements

› In purchasing, little attention is paid to examining suppliersquality assurance and to establishing a list of qualifiedsuppliers

› In manufacturing, many companies fail to write downinspection standards and process parameters

› Companies often neglect preventive maintenance, instrumentcalibration & materials and assembly tracking

› Little attention is paid to determining the need for product, toinstructions for transport & storage, to after sales service, todirections for use and to maintenance instruction

› The factors which are considered most important forstimulating & impeding the adoption of TQM are:

Quality recruitment of the customer/market place

The active support of top management for TQM

The existence of an executive who is responsible for theimplementation of TQC

The participation and enthusiasm of the employees

Significant positive effects of TQC

The Dutch companies must do something in the field ofquality control, but has to plan the activities. Suchattitude make it impossible to learn about quality

Planned communication strategy along withcommitment of management to quality is essential topromote quality improvement

It can be concluded that in developed economies 5Factors may be considered as important to successfuldiffusion of TQM. These are-› The role of a quality champion in perpetuating a Total Qualityculture

› Customers involvement in the product development process

› Building a TQM strategic framework

› Quality control efforts in the entire business chain

› Educate-Educate and Educate

The term “Poor Quality” is synonymous with the products manufactured indeveloping nations

The inferiority & lack of quality standards, technology, equipments,instruments, consumer purchasing power, consumer education and qualitycontrol know-how contribute towards poor performance of developing nationsin quality matters

Most of the organisations in the developing nations are oriented in wrongdirections as regards quality because of the following reasons1.1. Seller‟sSeller‟s marketmarket scenarioscenario2.2. UnorganisedUnorganised andand indifferentindifferent customerscustomers3.3. BanBan onon importsimports4.4. InsufficientInsufficient education,education, training,training, inadequateinadequate knowledgeknowledge andand technicaltechnical knowknow--howhow5.5. AtmosphereAtmosphere ofof indifferentindifferent prevailingprevailing inin mostmost ofof thethe organisationsorganisations6.6. LackLack ofof legallegal andand politicalpolitical supportsupport7.7. LackLack ofof establishedestablished qualityquality standardsstandards && inadequateinadequate testtest facilitiesfacilities8.8. IndifferentIndifferent enforcingenforcing agenciesagencies9.9. HistoricHistoric beliefbelief thatthat „Quality„Quality costscostsMoney‟Money‟10.10.ConsiderationConsideration thatthat thethe qualityquality isis anan optionaloptional extraextra && notnot aa necessarynecessary forfor livingliving11.11.TotalTotal lacklack ofof managementmanagement commitmentcommitment12.12.LackLack ofof communicationcommunication && trusttrust betweenbetween suppliers,suppliers, dealers,dealers, managementmanagement &&tradetrade unionsunions

However, in the modern changing scenario with a liberalisedimport-export policies, greater awareness amongst customers &increased competition posed by MNCs, thf growing marketse firmsare making efforts to adopt TQM and bring their products tointernational standards, so that they can not only survive but alsotake the advantage of growing markets

However, these efforts face a lot of obstacles such as› Inadequate knowledge information about TQM› Failure of management to maintain its commitment over a long period oftime

› Doubts in minds of employees about intentions of management› People considering TQM as another bandwagon› Difficulties in measuring TQM effectiveness› Resistance to change at different levels› Insufficient education and training resources› Lack of awareness amongst customers & difficulty in assessing customerexpectation & satisfaction

› Poor internal communication A systematic planned approach through training & educationtherefore is required to meet this challenge

Element Developed Nations Developing Nations

1 Manufacturing

Focus

Process Product

2 Product Objectives Quality / Utility Cost Related Performance

3 Business Focus Market Share / Customer

satisfaction

Profitability

4 Risk / Reward Learn from Failure Punish Failures

5 Employee Attitude Team Building Cooperation Individual Leg Pulling

6 Market Training On a Large Market On a Narrow Market

7 Man-power Training Company Training across a

variety of Task, High investment in

Human Capital

Training Primarily by outside

Institutions, Low investment in

Human Capital

8 Methods Quantative, SQC & Work

increases Responsibility for Quality

Role specialisation with specialists

responsible for discrete functions

such as quality

9 Motivation Rewards linked to Company

Performance, all employees in

the same boat

Short-term Incentives for Workers

Abc