TQM 1 PDF

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Group B7
Tanmai Varalwar (100068)
Gaurav Lalwani (100085)
Akta Gupta (100100)

Word Count: 5331 Words
Module: MSCI231
Module Leader: Mr. S. Das
Cohort: 2010-2013

NSCI2S1- uioup Assessment

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Contents
Introduction........................................................................................................................... 3
Features of Total Quality Management ................................................................................ 4
Implementation of Total Quality Management..................................................................... 5
-Principles and Practices
o Leadership................................................................................................................. 6
o Customer Satisfaction ............................................................................................... 7
o Employee Involvement ............................................................................................. 7
o Supplier Partnership.................................................................................................. 8
-Tools and Techniques
o Benchmarking ........................................................................................................... 9
o Information Technology ......................................................................................... 10
o Quality Management Systems (QMS) .................................................................... 11
o Quality Function Deployment (QFD) ..................................................................... 11
o Failure Mode and Effect Analysis (FMEA)............................................................ 12
o Total Productive Maintenance ................................................................................ 13
o Statistical Process Control (SPC)............................................................................ 14
o Experimental Design............................................................................................... 17
Total Quality Management Model ...................................................................................... 18
Continuous Improvement Process ...................................................................................... 19
Measuring Total Quality Management Performances ........................................................ 21
Bibliography........................................................................................................................ 23
Appendix-1.......................................................................................................................... 28


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Introduction
Quality is not an act, it is a habit.
-Aristotle (384-322 BC)
In the past, companies aimed at improving the quality of the final product, generally
dealing with the manufacturing department. They did so by inspecting the products to see
that they met the required specifications.
Overtime, this procedure started to change further as the US companies who used the
traditional methods of quality inspection started to loose the market share to the foreign
competitors. Around 1970s -1980s two Japanese automobile companies, Toyota and
Honda, implemented new methods of quality management like providing training and
hiring consultants for quality management which helped them in taking over the market by
producing low cost and high quality products. Toshiba and Sony took over the market by
using the similar strategy. As the companies started to realize the importance of quality, a
new concept evolved. By using TQC, companies aimed at preventing quality defects
rather than detecting the defects.
As the evolution continued, companies started managing quality at every stage,
irrespective of the department. This resulted in the implementation of Total Quality
Management (TQM). TQM is seen as an integration of TQC and quality management.
TQM is seen as a natural extension to the earlier quality practices management.

Figure 1: Adapted from Dale (2003) and Pycraft, Singh & Phihlela (2000)
The term Total is considered important, as it is an indication of the use of the model
company-wide and involves an effort by everyone to bring about improved performance.
Management adds the human factor to the effort put in to improve performance and
quality. It requires commitment and leadership from the top management to achieve
quality goals. It is their duty that the institution is provided with the required infrastructure
to support a holistic approach. These words together bring the essence of Total Quality
Management.
TQM can be defined as "Doing the Right Thing, Right the First Time, All the Time; always
striving for Improvement & always satisfying the Customer."
-[Department of Defense, 1989]

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Features of Total Quality Management
When TQM is implemented in any organization, it results in high value sustainable
benefits. Some of the benefits are,
1. Improved quality and efficiency:
2. Employee participation and teamwork:
3. Working relationship:
4. Customer satisfaction:
5. Employee satisfaction:
6. Better Communication:
7. Improved Profitability:
8. Increasing Market share:

TQM along with benefits has many costs related to it as well. The costs of TQM are,
1) Resistance to change: Employees in some organizations may feel insecure under the
TQM program due to lack of trust thus result in a high employee turnover rate.
2) High cost of time: TQM program involves high costs of implementation and it might
take several years for the program to show substantial results. This may result in
uncertain economic conditions.
3) Costs of quality: According to the Business Dictionary, cost of quality is defined as the
sum of costs incurred in maintaining acceptable quality levels with the cost of failure
to maintain that level. There are three costs of quality are,
a) Failure costs:
b) Appraisal costs:
c) Prevention costs:


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Implementation of Total Quality
Management
A clear and sound TQM framework needs to be created and adopted which should be
communicated to all the members, at all levels in the organizations. If business, adopts this
in the right way; it would make the procedures in the organization more comprehensive,
controlled and time managed.
Different authors and researchers have designed many TQM frameworks. One of which is
the TQM framework designed by the researcher, Besterfield.

Figure 2: TQM framework (Besterfield, 2008)
This framework discusses the factors that are important for any institute to successfully
implement TQM within the organization and enjoy the returns.


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Principles and Practices
Leadership
The top management can implement TQM through leadership by using two elementary
ways. First, integrating the TQM philosophy and principles in the organizations operations
in every department. Second, delivering long-term training and development that would be
necessary for the development of the company. This can be done by the support of the
senior management.
Implementing TQM using Leadership
Implementing TQM using Leadership is a team effort by every individual working at
every stage, low or high in the organization. Responsibilities have to be delegated to all
and make them realize their role as a leader.
1. Involvement: Organizations should have representatives from all groups who
would lead the departments. The company should identify group leaders and their
responsibilities from the affected departments.

2. Interest: The senior management of the company should take the lead and make
sure every individual understands the urgency and importance of implementing
TQM in the company.

3. Monitoring: TQM is a procedure and not a process. Goals need to be monitored
and altered during implementation. Senior managers need to analyze the procedure
and make the right implementation to generate results that would favor TQM.

4. Phasing: TQM is done in phases and the managers need to use their leadership
skills and see that before they start any phase, the previous phase is completed.


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Customer Satisfaction
Every companys greatest assets are its customers, because without customers there is
no company.
-Michael LeBoeuf, Author of: How to Win Customers and Keep Them for Life
Customers are divided into two categories, internal and external. Some factors through
which a customer estimates the quality of the are the performance of the product or
service, features, intangible worth, warranty, price and reputation of the company.
Companies can reduce customer dissatisfaction, when their perception of the customers
need meets the customers expectations.
Companies know that the choices of the customers continuously change, due to which,
feedback is a continuous process that they use to discover the point of customer
dissatisfaction, learn their priorities, compare with the competitors, realize the needs of the
customers and also find scope of improvements. The feedback mechanism is generally
through comment cards, questionnaires, toll-free responses, customer visits, etc. Bharti
Airtel, uses the toll-free feedback mechanism where it requests the customers to respond a
Yes or No to let the company know whether they were satisfied with the customer
service or not. Companies have also turned to the online market to collect data on
customer satisfaction which would help them work better by using asking customers to fill
in forms after a purchase or when they open a website. This is a proactive measure to clear
all possible causes of dissatisfaction to the customer.
Employee Involvement
Employee involvement refers to the regular participation of employees in the work
process, suggestions for improvement, setting goals and monitoring the performance. If an
organization wants a positive work environment that is based on trust, good customer
service, teamwork and operational excellence, the leadership team must understand and
invest in the needs of the most important stakeholders of the organization, the employees.
The return of this investment will be high levels of employee motivation, productivity,
creativity and commitment that will help in the sustainable growth of the organization. A
fundamental TQM percept is that employees must be involved and empowered. Employee
involvement includes various aspects such as:
1. Employee empowerment
2. Teamwork
3. Reward and recognition
4. Education and training
5. Suggestion schemes


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Supplier Partnership
In businesses today, suppliers not only provide with raw materials but also the technology
and processes, design service, capacity improvement layouts which can help in reducing
costs, quick marketing, reduced production time and improved quality, which can provide
a long and sustainably business for the company, thus also for the supplier. Daimler-
Chrysler suppliers help the company with the design process, due to which Daimler-
Chrysler finds out about new materials, technologies and parts before its automakers. Over
the years, suppliers are termed as partners and companies have a co-dependent relation
with them as suppliers would not exist without the companies and the companies would
fall without the suppliers.
Practices to deal with suppliers
As the company and its suppliers are now working as partners, there are values and norms
they need to follow which would help them cultivate their relation for better returns. The
principles that would guide the business-supplier approach are-
o There should be a win-win situation for the supplier and the business through
encouraging partnerships instead of being competitors.
o Learning the strategic importance of the supplier and reducing the cost of ownership.
o Adding mutual advantages through honesty and trust.
Most of the companies who aim for TQM and achieve high quality levels with profit,
aim for supplier partnerships. Unilever took one such act when it signed its 13
th

strategic supplier partnership to fulfill its ambition of sustainable growth. Through this
deal, Unilever cover $3 Billion as an annual investment for growth and sustainable
innovation practices. Prior to this, Unilever started a supplier specific programmer
called Partner to win to better interact with its suppliers and benefit each other. Pier
Luigi Sigismondi, Chief Supply Chain Officer Unilever stated that the Partner to
Win, event presented us with a fantastic opportunity to recognize some outstanding
examples of true excellence in our suppliers, who are leaders in their fields.
This shows the extent to which supplier partnerships are valued in the business world
today.


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Tools and Techniques
Benchmarking

Benchmarking is defined as the measurement of organizations quality policies, products,
programs, strategies, etc. and then comparing it with the best practices in the market.
Some of the objectives of benchmarking are to determine what kind of improvements are
required on the process, to analyze how other organizations achieve their high
performance levels and to use the same information to improve their performance.

This process is done through following steps.

Planning
Collection of information.
Analysis of data
Implementation
Monitoring

Benchmarking can be categorized into various types,

o Process benchmarking
o Financial benchmarking
o Performance benchmarking
o Product benchmarking
o Strategic benchmarking
o Functional benchmarking

Benchmarking has been practiced by thousands of firms so that they can achieve the best
in the market, some of which are IBM, Wal-Mart, Cisco, P&G, Fedex, etc.


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Information Technology (IT)
As Bill Gates stated, Information technology and business are becoming inextricably
interwoven. I don't think anybody can talk meaningfully about one without the talking
about the other.
There are various types of information technology systems such as intranet, instant
messaging, video conferencing, virtual learning, E-learning, E-government, E-commerce,
Business-to-business, business-to-consumers and website design which could aid TQM in
the business.
o IT and Leadership: By implementing IT in the business, it would be easier for the
senior management to have a check on the progress of the employees through the data
that could be circulated much easily.

o IT and Customer relationship: Features like bar coding, Internet sales, accuracy of
availability, improved speed of sales has lead to improved customer service.

o IT and supplier relationship: Companies can automatically place orders with the
suppliers through established IT systems in the companies. Most of the automobile
companies like Toyota have integrated IT in every part of the companies, especially
supplier partnership to practice JIT.

o IT and Employees: Companies can communicate better, work form home, improve
accessible information, connect with other departments better and reduce the level of
gaps that may be formed due to lack of communication within the organization.

o IT and Process flow information: Adding IT in the process flow supports
consistency and reduction the failures, improve speed and also quality.

o IT and Quality Data reporting: It can support accessibility to data and analysis that
can be achieved faster and be more accurate. It can provide reports on employee
satisfaction, mangers problem solving, problems the company is facing, etc.


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Quality Management Systems (QMS)
QMS is a set of complex parts and components that deal with the quality of products and
processes under required controls along with continuous improvement. Implementing
QMS does not by itself make the institute profitable, but it provides it with the potential to
improve, from fields of production and sales.
The International Organization of Standardization (ISO) recognizes QMS and is reflected
in the ISO 9000 standard. ISO is non-governmental organization working for achieving
quality. The ISO 9000 provides guidance on QMSs principles and scopes an
implementation. Many organization function without the ISO 9000 certification and
depend on the internal review committee, while ISO 9000 certification needs a formal
review and approval of the QMS system by an outside committee and is done every 6
months.
The purpose of QMS is similar to that of ISO 9000, which is,
o Customer requirements need to be fulfilled.
o Achieve efficiency in terms of all factors of production like manpower, technology
and finance, both externally and internally. All the requirements to achieve
organization requirements for superior quality.
Quality Function Deployment (QFD)
As the businesses expand, the gap between producers and the users widen. Quality
function deployment links this distance using design, development, engineering,
manufacturing and servicing.
While employing QFD in the business, the main goals that businesses look into are, they
need to concentrate on the needs and wants of the customer, spoken and unspoken;
convert these needs into technical specification and characteristics; design and develop a
product or service whose entire focus is on customer satisfaction.
QFD uses four phases to convert customer requirements from the initial stage through
production control
Phase 1, Product Planning (Or House of Quality): This phase documents factors like
warranty data, customer requirements, product measurements, competitive opportunities,
competing product measures and the ability of the organization in terms of technology so
that they can meet the customer requirements.
Phase 2, Product Design: The engineering department is the leader of this phase. Product
design needs teams who would make creative and innovative ideas. The ideas generated
during this phase are documented using product concepts along with the specifications.
Phase 3, Process Planning: Decisions made to meet customer needs are dealt with in this
department. The manufacturing department takes over in this phase and does the
documentation of the process planning, manufacturing process and process parameters.
Phase 4, Process Control: In this phase, decision are made targeting to the riskiest
processes of the plan and controls are planned that would obstruct the failures. Here, the
quality assurance departments take the lead from the manufacturing department.

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Failure mode and effect analysis (FMEA)
Failure mode and effect analysis is a step-by-step process approach for identifying all
possible failure in a design process, a manufacturing or assembly layout, or a
product/service. Failure modes are the ways in which something might fail, which would
affect a customer. Effect analysis refers to studying the consequences of these failures.
FMEA is designed in order to assist the engineer improve the quality and reliability of the
products. Reliability can be described as the trouble-free time that a process gives before it
fails.
There are three main types of FMEA, which are,
1) System FMEA: It is used to analyze complete system or sub-systems during the
design stage.
2) Design FMEA: It is used to analyze a product design before it is made available to the
manufacturing unit.
3) Process FMEA: It is used to analyze the manufacturing or assembly process.
If properly used, this process can provide various benefits:
o Improve product or process reliability and quality
o Increase customer satisfaction
o Early identification and elimination of potential product or process failure modes
o Prioritize product or process deficiencies
o Capture engineering/organization knowledge
o Emphasized problem prevention
o Documents risk and actions taken to reduce risk
o Provide focus for improved testing and development
o Minimized late changes and associated cost


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Total Productive Maintenance (TPM)
Total productive maintenance is a philosophy founded in Japan in 1951 for maintenance,
designed to integrate manufacturing process and equipment and maintenance. The aim of
TPM is to eradicate losses connected to equipment maintenance and keep them in good
condition to increase productivity. TQM aims towards zero-defects and overall plant
efficiency.
The advantages that one could experience by implementing TPM are,
o Reduction in wastage as the machines is in good condition.
o The quality of the produced goods is good as the machines work properly.
o Reduction in cost due to reduced problems with the manufacturing process.
o Produce higher amount of products in less time.
o Non-defective goods produced.
TPM is closely connected to TQM due to the similarities in both. Both the concepts need
total involvement from the senior management, provides empowerment to employees to
take maintenance decision, it is an ongoing process like TQM, needs benchmarking,
documentation at each stage, etc. Due to this, TPM is considered an important component
of TQM, to provide quality goods.


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Statistical Process Control (SPC)

In management tools, businesses focus on the root issue of the problem by concentrating
on processes rather than people. They are more subjective than objective and help in
process improvement, new-product development, cost reduction and policy deployment.
They use tools like,
o Force-field analysis that discusses the promoting and inhibiting forces that would act
on the problem and find a solution accordingly.
o Tree diagram that shows the possible results of the processes and helps the business
learn of the best possible outcomes.
o Matrix diagram, which helps the teams and individuals, identify, analyze and rate the
connection between the two or more variables that would affect the situation or
problem. QFD is an effective way to use matrix diagram.
o Activity network diagram provides efficiency in scheduling a project by using tools
like critical path method (CPM), arrow diagram, activity on node (AON), etc. It shows
activities that can be done simultaneously.

Statistical process control is a part of TQM whose focus is on creating processes that
would deliver quality goods. SPC is an analytical decision making tool which tells us if
the process is working properly or not. The fundamental concept on which SPC is laid is
quality improvement and control using objective data and analysis. Control charts are used
to show the results of the process observation. They show a variation in a measurement in
the time period this process is observed but they do not work appropriately in all
situations, thus management tools act as effective problem-solving tools.

The early stages of SPC consist of several steps that use various tools. The quality tools
available to help organizations improve their processes are:

a) Pareto Charts: These charts are based on the Pareto Principle that states that eighty
percent of the problems come from twenty percent of the causes. These charts are
extremely important as they can be used to identify the factors that have the greatest
effect on the system that helps the maintainer prioritize the problems and would reflect
the quality of the company.

b) Cause and effect or Fishbone Diagram: A Fishbone Diagram identifies many
possible causes for an effect or problem. Professor Kaoru Ishikawa created this cause
and effect analysis in the 1960s. This technique uses a diagram-based approach to

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analyze all the possible causes of a problem. There are four steps involved in this
analysis:
! Identify the problem
! Determine the major factors involved.
! Recognize all the possible causes of the problem
! Analyze the diagram

(c) Flowcharts: Flowcharting breaks down a process in sub-processes and analyzing each
process separately minimize the number of processes, which contribute changes in the
process. Quality control is a continuous process where factors and causes should be
constantly reviewed and changes are made accordingly. It is very important to keep
referring to the fishbone diagram to keep a track of any new factors.

(d) Check sheets: The document is usually blank as it is designed for quick, easy and
efficient recording of desired information that can be either quantitative or
qualitative. The quantitative information is recorded, the check sheet is known as
tally sheet.

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9-: Histogram: Now, the data collected from the check sheets in represented in the
form of a histogram. A histogram is a representation of a frequency distribution by
means of rectangles whose widths represent class intervals and whose areas are
proportional to the corresponding frequencies. A histogram helps you analyze
what is going on in the process and helps show the capability of a process.

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#-* (PBSA cycle). It is a set of methouology that focuses on iueas anu theoiies
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Figuie 7: The Beming Cycle (Souice: www.flexstuuy.com)
By using these data analyzing tools, companies will be able to understand the variation
that occurs in their production process and this knowledge would eliminate the errors that
would occur. SPC is a method does not tell what the company needs to do, but address the
points where they have to work. This would result in quality management.


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Experimental Design
An experimental design is an experiment of the business plan of what output response the
business needs which provides the flexibility to make changes in the inputs of the process.
Businesses design a plan for the product they wish to sell. Before the production could
start, businesses could experiment the plan and observe the effect of the plan on the final
product and costs. This observation could help the institution know the problems it would
face and the loopholes in the plan. Experimental design would reduce the failure rate to a
large extent and help the businesses know the possible faults for which they could develop
contingency plans.
This statistical approach would help the business to optimize the use of resources and
reduce costs that they would have incurred if the plan failed on a large scale.
For the experiment, they would need to allocate materials, manpower, money, equipment
and time for every stage and take notes at every level. Any default must be instantly
recorded so that the concerned department would work on it. Experimental design along
with SPC could result in efficiency and effectiveness along with process optimization.
The extent to which experimental design could benefit a business can be seen in the case
with Eastman Kodak of Rochester, New York. By using experimental design, they
realized they just had to change the tool in the existing machine rather than making a large
investment in the new one which saved the company about $200,000. Also, it reduced the
machine set-up time form 480minutes to just 20 minutes.


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Total Quality Management Model
The TQM models help institutions to learn how to implement the TQM philosophy in the
working of their businesses. Companies generally have their own models depending on
their industry and the working of the organization and no two companies have the same
TQM model implemented but there are a wide variety of models available that would help
the companies work towards total quality management.

Figure 3: Total Quality Management model (Source: Department of Trade and Industry)
In the above model, the core consists of the Quality Chains forming the costumer-supplier
interfaces (internally and externally) and at each interface is a number of processes that is
generally managed through interrogation i.e., through a questionnaire at each interface.
The process is a transformation of inputs by using operations and actions to quality
outputs that the customer value. Every task, from receiving the requirement/order to
placing the order in the customers hand is considered as a process. This core is
surrounded by the commitment to quality, communication of the quality message along
with the need to change culture in the institution, which would add total quality.
Commitment to quality deals with the leadership aspect, being the basic step of the TQM
implementation in the institution where all members are well committed to the goal. The
Communication facet leads towards altering the behavior and attitudes of the people who
affect the organization in any significant way. The Culture element looks into the beliefs
of the organization and the people who are associated with the organization. This aspect
refers to how the people treat and is treated at every level in the work culture.
People/teams are the members who are responsible for the processes and by working in
teams they add a component of varied culture that is important for TQM. Tools are the
knowledge and techniques that are used for measurement, metrics and improvements.
Systems are the set of activities; mostly the processing, communicating and controlling
that should be applied to interact with the other activities in the organization.
When these components are used together efficiently and effectively along with
measurement of the performance, the organization could achieve their mission and goals
successfully and have sustainable growth.

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Continuous Improvement Process
Besant et. al. define continuous improvement as a company-wide process of focused and
continuous incremental innovation sustained over a period of time. The process of
continuous improvement is fundamental to the concept of TQM. Deming believes that
customers are the most important part of the production line therefore it is important
develop operational and business processes which will ensure that the expectations of the
customer have been met. There are various tools utilized in this improvement process,
such as,
1) Just in time (JIT): As defined by Graham (1998), JIT is a management philosophy
or toolbox of techniques, which is based on making a significant improvement in
operating efficiency through reduced inventory levels, lead time and overheads. These
critical elements in JIT are people involvement to gain support and agreement from all
the individuals involved in the process, logistics network, to modify operational
procedure, production or service system or organizational culture to take advantage of
JIT.
JIT advantages include waste reduction, increased ability to remain competitive,
improved working relations between employees, stronger and more reliable working
relations with suppliers, higher profits and improved customer satisfaction.
Implementation of JIT in the manufacturing unit of Harley Davidson transformed the
company from an inefficient manufacturer with extra inventory to a manufacturer that
is able to meet the demand of the customers and provide short lead-time. The
inventory levels decreased by 75% and also resulted in increased productivity. JIT
limitations include cultural differences, loss of safety stock, decreased individual
autonomy and decreased specific success. It is important to acknowledge that certain
limitations exist that could trade off the widely reported advantages of JIT in terms of
increased quality, productivity and efficiency.

2) Six Sigma: It can be best described as a business improvement approach that seeks to
find and eliminate causes of defects and errors in manufacturing and service processes
by focusing on outputs that are critical to customers and a clear financial return for the
organization. Six Sigma improvement teams use the DMAIC (Define, Measure,
Analyze, Improve, Control) methodology to find and eliminate the causes of defects.

The analytical tools are common to all quality efforts including Six Sigma. These tools
consist of flowcharts, run charts, Pareto charts, histograms, check sheets, cause and effect
diagrams and control charts. The other tools, which are extensively used, are failure mode
and effect analysis and design of experiments.
Successful implementation of Six Sigma is a combination of personnel as well as technical
methodologies. Some of the personnel practices that are commonly used in Six Sigma
implementation are:
! Executive Leaders and Champions: Executive leaders are people who are truly
committed to Six Sigma and who promote it throughout the organization and
Champions are the ones who take ownership of the processes that are to be improved

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! Corporate-wide training in Six Sigma concept and tools: Such as General Electric
spent over billion dollars training its professional workforce in the concepts.
! Setting of stretch objectives for improvement
! Continuous reinforcement and rewards
The fail-safe process design, also known as Shingo System is based on the distinction
between errors and defects. As human errors cannot be totally avoided, it is important to
design the processes in such a way that the human receives immediate feedback when an
error is made. Whenever an operator or trader enters information that appears to be
incorrect or inappropriate with the current knowledge of the system it received immediate
feedback asking if the information entered in correct. Such user interfaces may need
continuous and up-to-date input of the relevant information whether market or customer.

Six-Sigma has various advantages. It is a customer driven and aims to achieve maximum
customer satisfaction and minimizing the defects. It is implemented in virtually every
business category such as return on sales, return on investment, employment growth and
stock value growth. It is attentive to the entire business processes and training is integral to
the management system where the top-down approach ensures that every good thing is
capitalized and every bad thing is quickly removed. There are some limitations as well
such as Six Sigma emphasizes on the rigidity of the process which restricts innovation and
kills creativity and also that skilled man force is required for the implementation of this
process which is hard to accomplish.

3. Kaizen Approach: Kaizen is a combination of two Japanese words (kai+zen) that
literally means change for the better or continuous improvement. Kaizen can
operate at individual level or through Kaizen groups. The key concepts of Kaizen
include:

! Improvements are based on many small changes rather than radical changes that
might arise from research and development.
! As the ideas come from the employees they tend to be less radically different and
easier to implement.
! Small improvements require more of major process changes than major capital
investment changes.
! It helps encourage workers to take ownership for their work and can help reinforce
team working, therefore improving worker motivation.
These continuous small improvements add up to major benefits such as improved quality,
better safety, faster delivery, lower costs and greater customer satisfaction. Employees
working the companies that implement Kaizen find the work to be easier and more
enjoyable which results in higher employee morale and job satisfaction. Kaizen reduces
waste in areas such as employee skills, waiting times, transportation, over production and
excess inventory.


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Measuring TQM performance
Implementing TQM is not an easy concept and does have cost related to it. At times
implementing TQM may need huge financing and companies would want to know if their
efforts have given any results. These performance measures have a huge role to play in the
success or failure of the company.
Some of the basic ways to know the performance of the company can be seen by the level
of employee turnover, employee interaction, improvement in teams, level of customer
complaints, customer loyalty, reduction in defects, machine failure rates, quality
performance by suppliers, relations with suppliers and customers, increase in revenue,
sales, shareholder investors, etc.
There are various models, which can measure the performance of the success of TQM;
The Malcolm Baldrige National Quality Award (MBNQA) (American Model)
framework is a very close replica of what TQM is.

Figure 4: Source: Baldrige Performance Excellence Program, 2011-12
The Baldrige Criteria for performance excellence framework has seven categories that
help companys achieve excellence. Companys who truly follow TQM would fulfill the
criteria of the MNBQA. The seven categories are,
1. Leadership (120 Points)
2. Strategic Planning (85 points)
3. Customer focus (85 points)
4. Measurement, Analysis and Knowledge Management (90 points)
5. Human resource focus (85 points)
6. Operations focus (85 points)
7. Business results (450 points)


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This framework helps companies in assessing their quality standards and performance
along with the employee involvement and the customer satisfaction. Boeing ASs delivery
service came down to 3 days as per customer request as compared to 40 days of their close
competitors, the quality ratings rose to 21% higher than its competitors at Motorola
CGISS and at the Cargill Corn Milling, the error-free delivery rate reached 99% or more
from 2005 to 2008 along with increase in the customer base rate of about 20-44% from
2003-2009.

Figure 5: Indexed Sales increases for three Baldrige Winners (Source: Wisner & Eakins,
1994)
The graph above displays the rise in sales after winning the Baldrige Performance
Excellence Program of Motorola (Won in 1988), Federal express (Won in 1990) and
Solectron (won in 1991). TQM has seen to provide positive benefits for most of the
business that has rightly implemented it in the right way. This can be seen in the case of
Trident Precision Manufacturing, Inc (Appendix 1), the extent to which quality
management can support the growth of a company and benefit it. It shows how having
good leadership; keeping customer and quality as a priority can benefit the company itself
in the end.


2S
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APPENDIX 1: CASE STUDY
Quality Starts with a Vision
Unless you live in Webster, New York, you probably have never heard of Trident
Precision Manufacturing, Inc. The privately held company was formed in 1979 with three
people, and today manufactures precision sheet metal components, electromechanical
assemblies, and custom products, mostly in the office equipment, medical supply,
computer, and defense industries with a workforce of about 170. In 1995, revenues totaled
$14.5 million. Trident has established quality as its basic business plan to accomplish
short- and long-term goals for holder value, operational performance, and supplier
partnerships.
Employee turnover declined dramatically, from 41 percent in 1988 to 5 percent in
1994 and 1995. Defect rates fell so much that Trident offered a full guarantee against
defects in its custom products. On-time delivery performance increased from 87 percent in
1990 to 99.94 percent in 1995. Rates of return on assets consistently exceeded industry
averages, customers rated the quality of their products at 99.8 percent or better, and the
company never lost a customer to a competitor. In 1996, Trident received the Malcolm
Baldrige National Quality Award, the highest level of recognition in the United States for
organizations demonstrating outstanding business results and management approaches to
achieving performance excellence.
How did Trident achieve such success? Tridents total quality quest began in 1988,
when CEO Nicholas Juskiw attended a symposium offered by Xerox Corporation about its
Leadership Through Quality strategy. When Juskiw wrote his vision statement he said:
My vision for Trident is one in which each of us shares in the responsibility, growth, and
benefits of becoming a world-class organization. How will we, as a team, achieve this?
Through quality! Not just the quality of each individual part but through Total Quality- in
everything we say and do.As a strong team, with each headed in the same direction, we
can become the unquestionable leader that our Customers, Industry, and Community look
up to.

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