TOTAL QUALITY MANAGEMENTA route for improvement

TOPICS OF DISCUSSION• What is TQM?

• Objectives of TQM

• Importance of TQM

• Benefits of TQM

• 7 important principles of TQM

• TQM Timeline

• Demmings 14 points on TQM

• Western approach

• Japanese approach

• Conclusion

INTRODUCTION

• Competition is getting harder and becoming global. Companies now have to be more responsive, offer a better product and keep improving. Total Quality management increases customer satisfaction by boosting quality. It does this by motivating the workforce and improving the way the company operates. In an increasingly competitive market, firm with a continuous improvement culture and external focus are more likely to survive and prosper. TQM is considered an important catalyst in the context.

WHAT IS TOTAL QUALITY MANAGEMENT?

TQM is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements.

TQM is an approach to improving the effectiveness and flexibilities of business as a whole. It is essentially a way of organizing and involving the whole organization, every department, every activity and every single person at every level. TQM ensures that the management adopts a strategic overview of the quality and focuses on prevention rather than inspection.

OBJECTIVES OF TQM

• Meeting the customers requirements is the primary objective and the key to Organizational survival and growth.

• The second objective of TQM is Continuous improvement of quality. The management should stimulate the employees in becoming increasingly competent and creative.

• Third, TQM aims at developing the relationship of openness and trust among the employees at all levels in the organization.

IMPORTANCE OF TQM• During the last decades quality became one of the most important concept in

management. Quality of products determines priorities in market, it provides stable development of nation, preservation of environment, health and human wellbeing. Total Quality Management (TQM) is one of the newest theories of management which principles and methods are directed on quality improvement. As competitiveness of an organization depends on quality management administration of organizations observes stability in a debugged quality management corresponding to the international standards. An organization that successfully applies total quality management in its everyday practice gets advantage because by applying TQM an organization differentiate its products from other companies, quality of products increases and consumers give preference to quality products. Thus, consumers get high quality products and producer makes profits. Based on the above-mentioned statement we conclude that organizations which apply TQM principles in their practice are profitable ones.

BENEFITS OF TQM• Strengthened competitive position

• Adaptability to changing or emerging market conditions and to environmental and other government regulations

• Higher productivity

• Enhanced market image

• Elimination of defects and waste

• Reduced costs and better cost management

• Higher profitability

• Improved customer focus and satisfaction

• Increased customer loyalty and retention

• Increased job security

• Improved employee morale

• Enhanced shareholder and stakeholder value

• Improved and innovative processes

REASONS FOR FAILURE

TQM fails because:

• Top management sees no reason for change.

• Top management is not concerned for its staff.

• Top management is not committed to the TQM programme.

• The Company loses interest after six months.

• The workforce and the management do not agree on what needs to happen.

• Urgent problem intervene.

REASONS FOR FAILURE

• TQM is imposed on the workforce, which does not inwardly accept it.

• No performance measure or targets are set, so progress can not be measured.

• Processes are not analyzed, systems are weak and procedures are not written down.

7 IMPORTANT PRINCIPLES OF TQM

1. Quality can and must be managed

Many companies have wallowed in a repetitive cycle of chaos and customer complaints. They believe that their operations are simply too large to effectively manage the level of quality. The first step in the TQM process, then, is to realize there is a problem and that it can be controlled.

2. Processes, not people, are the problem

If your process is causing problems, it won’t matter how many times you hire new employees or how many training sessions you put them through. Correct the process and then train your people on these new procedures.

3. Don’t treat symptoms, look for the cure

If you just patch over the underlying problems in the process, you will never be able to fully reach your potential. If, for example, your shipping department is falling behind, you may find that it is because of holdups in manufacturing. Go for the source to correct the problem.

7 IMPORTANT PRINCIPLES OF TQM4. Every employee is responsible for qualityEveryone in the company, from the workers on the line to the upper management, must realize that they have an important part to play in ensuring high levels of quality in their products and services. Everyone has a customer to delight, and they must all step up and take responsibility for them.

5. Quality must be measurableA quality management system is only effective when you can quantify the results. You need to see how the process is implemented and if it is having the desired effect. This will help you set your goals for the future and ensure that every department is working toward the same result.

7 IMPORTANT PRINCIPLES OF TQM

6. Quality improvements must be continuous

Total Quality Management is not something that can be done once and then forgotten. It’s not a management “phase” that will end after a problem has been corrected. Real improvements must occur frequently and continually in order to increase customer satisfaction and loyalty.

7. Quality is a long-term investment

Quality management is not a quick fix. You can purchase QMS software that will help you get things started, but you should understand that real results won’t occur immediately. TQM is a long-term investment, and it is designed to help you find long-term success.

TQM TIMELINE

19205: Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S Industry.

19305: Walter Shewhart developed the method for statistical analysis and control of quality.

19505:W.Edwards Deming taught methods for statistical analysis and control of quality to japanese engineers and executives. Joseph M. Juran taught the concepts of controlling quality and manegerial breakthrough. Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many companies.

TQM TIMELINE

1968: Karou Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendency as a quality leader.

Today:TQM is the name for the philosophy of a broad and systemic approach to managing organizational quality.

DEMING’S 14 POINTS ON TQM

• Create Constancy of purpose

• Adopt the new philosophy

• Cease dependence on inspection

• Use a single supplier for any one item

• Improve constantly & forever

• Use training on the job

• Implement leadership

DEMING’S 14 POINTS ON TQM

• Eliminate fear

• Break down barriers between departments

• Get rid of unclear slogans

• Eliminate management by objectives

• Remove barriers to pride of workmanship

• Implement education & self-improvement

• Make transformation everyone’s job

WESTERN APPROACH TO THE TOTAL QUALITY MANAGEMENT

• Great contribution into development of quality management in the US and Europe was made by Henry Ford I and Bill Gates - the “two captains of management well-known for innovative ideas in quality management. Also a great contribution into development of quality management was made by scientists such as Frederic W. Taylor, Max Weber, Henry Fayol, Harrington Emerson (Kvitko, 2005)

WESTERN APPROACH

• Development of the modern western approach of TQM belongs mostly to:

Philipp Crosby 1926-2001

Tom Peters born:November 7(1942)

PHILIP B. CROSBY

• Philip B. Crosby, an expert in the field of quality, defines the concept of quality as “conformance to requirements” if we are to manage it. Consequently, the nonconformance detected is the absence of quality, quality problems become nonconformance problems, and quality becomes definable” (Crosbi,1980).

TOM PETERS

• Another specialist of quality is Tom Peters known as an American business guru. He states that the most important feature in the process of quality improvement is leadership. Leader should be responsible for customer satisfaction, employees and innovations. Peters “believes that, as the effective leader walks, at least three major activities are happening: 1. Listening – suggest caring, 2. Teaching – values are transmitted, and 3. Facilitating – able to give on-the-spot help (Rampersand, 2005).

• According to research handled among well-known American companies with a goal to identify the “receipt of success” of the successful companies, Peters stated that successful companies use 7 variables which should be considered as independent variables and they are: 1. Strategy, 2. Structure, 3. Systems, 4. Skills; 5. Style, 6. Staff and 7. Shared values, which is the most important principle and it is located in the centre. This model is known as McKinsey 7-S Framework (Figure 1) (Department of Trade and Industry

MCKINSEY 7-S

JAPANESE APPROACH

• Principles, ideas and methods used in Japanese management system were introduces by American quality gurus which were transformed over time and adapted to the Japanese traditional environment. Japanese culture, mentality and psychology are reflected in Japanese quality management system which is different in root from American style.

JAPANESE APPROACH

• Application of Japanese model of management not only allowed Japan to restore its productivity after the World War II but also to become a leader in production of technological products. Well- known Japanese contributors in development of TQM are :-

Kaoru IshikawaBorn: July 13,1915, Tokyo, Japan

Died : April 16, 1989, Japan

Genichi TaguchiBorn : January 1,1924, Tokamachi, Japan

Died : June 2, 2012, Tokyo, Japan

Shigeo ShingoBorn : 1909, Saga, Japan

Died : 1990, Tokyo, Japan

CONTRIBUTORS IN TQM DEVELOPMENT

• Kaoru Ishikava is a well-known Japanese scientist in the field of quality management who successfully adopted the basics of American management for the Japanese application. He stressed implications of statistical methods in industry. The basics of his studies are expressed in Ishikawa’s “seven basic tools of quality” like quality circles, achieving consensus in decision-making process, continuous employees training to name some and fishbone diagram which is a graphical method of cause and effect analysis. Ishikava was the first who identified the importance of “internal customer” and total company quality control (“Total Quality Management”, n.d.). He states that quality is not just product’s quality but also quality of aftersales service, management and company’s itself

CONTRIBUTORS IN TQM DEVELOPMENT• Genichi Taguchi is a well-known Japanese statistician and telecom

engineer. He stressed the importance of quality maintenance on the stage of a product design. Taguchi is an author of the robust design of a product; he introduced orthogonal arrays and linear graphs which are used to isolate noise factors from the other factors in a cost effective way. Also Taguchi connected economic costs and quality through mathematic dependence by introducing the loss function. According to Taguchi loss function “costs of quality increases as quadratic function as conformance values move away from the target”. The main aspect in Taguchi’s methods is quality improvement with simultaneous costs decrease (Total Quality Management, n.d.; Rampersand, 2005; Genichi Taguchi and Taguchi Methods – Practical, Rapid Quality.

CONTRIBUTORS IN TQM DEVELOPMENT• Shigeo Shingo is one of the developer of a well-known Japanese planning

and production system Just in Time. Also he is known for SMED (Single Minute Exchange of Die) and system “poka-yoke”, which excludes opportunity of mistake emergence. Shingo’s methods focus attention on production rather than on management. Shingo’s idea is to stop the process as defect is found, to determine the reason of defect emergence and its repeated emergence. The main part of the procedure is to detect mistakes in production before they become defects. He states that faultlessness in practices may be achieved through a qualitative design and detailed process research (Rampersand, 2005).

CONCLUSION• There is a tendency in economics at present where quality plays one of the

leading roles in production management. Quality is an important tool to be competitive, to win and keep advantageous position in the market. That is why organizations pay a great deal of attention towards providing high quality to its products and services. The goal of each member of an organization should be quality improvement and each should contribute to quality, everybody should participate in the process of building quality. There are different approaches in TQM developed by gurus of management, by European and Japanese quality managers. An author decided to examine an American, European and Japanese approaches in TQM because the companies of above mentioned countries are holding the leading position in the world, and US and Japan are symbols of prosperity and success.

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