tqm- history, evolution & growth

TQM-HISTORY,EVOLUTION & GROWTH

WHAT IS TQM?

CONCEPT:Purpose: To improve customer satisfaction International Organization for Standardiz

ation standard ISO 8402:1994

"A management approach of an organisation centred on quality, based on the participation of all its members and aiming at long term success through customer satisfaction and benefits to all members of the organisation and society.”

HISTORY

 From holistic historical review quality revolution, we can deduce that Quality can be classified into four evolutionary phases:

• Inspection• Quality control• Quality assurance

• TOTAL QUALITY MANAGEMENT

HISTORY OF TOTAL QUALITY MANAGEMENT

TQM involves methodology for continually improving the quality of all processes, it draws on a knowledge of the principles & practices of:

• The behavioural sciences• The analysis of quantitative & non-

quantitative data• Economics theories• Process analysis

TQM TIMELINE1920s: Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. industry.

1930s:Walter Shewhart developed the methods for statistical analysis and control of quality.

1950s:•W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers & executives•Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough•Armand V. Feigenbaum’s book Total Quality Control was published•Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many companies

1968: Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality leader

Today:TQM is the name for the philosophy of a broad and systemic approach to managing organizational quality.Quality standards such as the ISO 9000 Series and quality award programs such as the Deming Prize and the Malcolm Baldridge National Quality Awards specify principles and processes that comprise TQM.

KAORU ISHIKAWA

ARMAND F. W.E. DEMING

JOSEPH JURAN

PHILIP CROSBY

WALTER SHEWHART

MALCOLM BALDRIGE NATIONAL QUALITY AWARD

The Malcolm Baldrige National Quality Award recognizes U.S. organizations in the business, health care, education, and nonprofit sectors for performance excellence. The Baldrige Award is the only formal recognition of the performance excellence of both public and private U.S. organizations given by the President of the United States.

The award promotes awareness of performance excellence as an increasingly important element in competitiveness. It also promotes the sharing of successful performance strategies and the benefits derived from using these strategies.

DEMING’S 14 POINTS ON TQM

1. Create constancy of purpose2. Adopt the new philosophy3. Cease dependence on inspection4. Use a single supplier for any one

item5. Improve constantly & forever6. Use training on the job7. Implement leadership

DEMING’S 14 POINTS ON TQM

8. Eliminate fear9. Break down barriers between

departments10.Get rid of unclear slogans11.Eliminate management by

objectives12.Remove barriers to pride of

workmanship13.Implement education & self-

improvement14. Make transformation everyone’s

job

STEPS IN IMPLEMENTING TQM

OBTAIN CEO COMMITMENT

EDUCATE UPPER-LEVEL MGT

CREATE STEERING COMMITTEEOUTLINE THE VISION STATEMENT, MISSION STATEMENT & GUIDING PRINCIPLES

PREPARE A FLOW DIAGRAM OF COMPANY PROCESSES

FOCUS ON THE OWNER/CUSTOMER & SURVEYS

CONSIDER THE EMPLOYEE AS AN INTERNAL OWNER/CUSTOMER

PROVIDE A QUALITY TRAINING PROGRAM

ESTABLISH QUALITY IMPROVEMENT TEAMS

IMPLEMENT PROCESS IMPROVEMENTS

USE THE TOOLS OF TQM

KNOW THE BENEFITS OF TQM

BENEFITS OF TQM

IMPROVE QUALITYEMPLOYEE PARTICIPATION &

SATISFACTIONTEAMWORK & WORKING

RELATIONSHIPSPROFITABILITY & MARKET SHAREPRODUCTIVITYCOMMUNICATION

OBSTACLES TO TQM

LACK OF MANAGEMENT COMMITMENT

LACK OF EMPLOYEE MOTIVATION INABILITY TO CHANGE

ORGANISATION CULTURE IMPROPER PLANNING LACK OF CONTINUOUS TRAINING &

EDUCATION INADEQUATE USE OF

EMPOWERMENT & TEAMWORK

TQM TODAY

Characterized differently by each company that practices it

The primary philosophyContinuous improvement to

exceed the customer expectations Identify and correct issues at the

earliest stage Incorporate quality into the final

product

GROWTH OF TQM Japanese industries followed the path &

guidance of Joseph Juran & Edward Deming for TQM, and by mid-1970s became a world leader in most industries & consumer product segments, for eg., Sony in Consumer Electronics, Toyota & Honda in 4-wheeler automobile industry, Honda & Yamaha in 2 wheeler industry etc.

Gradually TQM spread to most of the world’s industries in Korea, Europe and USA and it was accepted as universal mantra for world class performance and excelling in individual fields of operations

THANK YOU!