NAME: Carlos Manuel S.

Abalos DATE: September 11, 2017

SUBJECT: BEC102-Total Quality Management SECTION: III-BSBA-H

Chapter 4 TQM Implementation

Introduction

 The top management always leads the implementation of TQM. TQM is based on self-control,
which should be embedded in each employee, team, division, etc. Pushing problem solving and
decision making to the lower levels of the organization allows employees to both measure and take
corrective action in order to deliver a product or service. The framework for TQM implementation
should facilitate this and involve every employee.
 Most organization establish a quality council or a steering committee for systematic transfer of
responsibility for improvement to every employee in the organization.
 The most important requirement for TQM to function in any organization is 100 percent
commitment by top management, which should have the time, skills, and above all the
determination to implement TQM.

TQM Tools and Techniques

Type Tools and Techniques

Methodologies SPC, JIT, Taguchi Methods – DOE, QFD, TPM
System ISO 9000
Total Employee Involvement (TPE), Proactive management, and
Human Resources
Quality circles
Quality improvement awards such as Malcolm Baldrige, Deming
Motivation Award, European Quality Award, Rajiv Gandhi National Quality
Award, etc.

Contribution of Gurus for TQM

Areas of TQM Quality Gurus

Statistical Gauss, Pareto, Shewhart, Fisher
Management Juran, Crosby, Feigenbaum
Execution Deming, Taguchi

PDSA TQM Implementation

 PDSA cycle was Deming’s modified version of Shewhart’s PDCA cycle for improvement of
processes. It is suitable for process improvement projects. Each process improvement should be
organized as a project.

Phase Definition
It is the preparation phase where the actions proposed to be taken for
implementation of TQM are determined and documented after a
Planning
detailed analysis.
 Important actions taken:
 Establish objectives
 Establish a plan that will facilitate achieving the goal
 Establish a measurement system
It involves implementation of the actions on a pilot basis.

Do Important actions taken:

 Plan for implementation and measurements
 Implement the plan on pilot basis
It is where the results of pilot implementation are measured and
analyzed to see whether there is a real improvement. During this
phase one has to understand which plan worked and which did not.
This may either lead to confirming the new process in the “act” phase
Study or modifying the plan and revising the cycle again.

 Compare the results with the objectives

 Identify gaps
 Analyze the causes for gaps and exceptional report
 Standardize the procedure that met or exceeded the goal
Act
 If there were gaps, improve the plan and carry out PDSA again.

Planning Phase of TQM

Steps
Announcement
Select consultant
Corporate Strategic Planning
Vision statement
Notes
According to Harrington, “They (first-line and middle-line
managers) admit that participative management is good for the
employee and good for the organization, but they don’t view it as
being beneficial to themselves. In fact they see it as a threat, taking
away some of their authority.”
Consultant having the advantage of being independent, will be able
to put forth the new ideas to change the organizational culture. If a
consultant moots an idea, it could easily find acceptance amongst the
employees, unlike an idea given by an employee in the organization
(even if the idea of the employee is much better than the consultant!)
The important activities in strategic planning are formulating vision,
mission and objective for the organization by the CEO
It is the vision of the CEO about where the organization should be in
the long run. It may not have any relation to the current status with
regard to the products or services of the organization, but what the
organization should be capable of in the future. It is an achievable
dream of the top management. It should be concise so that it is easily
comprehensible by all the employees. It should be inspiring as well
as challenging the employees also. Vision is the long term goal
relevant to the organization. The vision statement should appeal to all
the stakeholders namely “employee, customers, suppliers,
shareholders, society”
 It describes the purpose for which the organization is in business and
provides the strategies to achieve this purpose. It should
Mission statement
communicate the guiding principles and values held common by the
organization.
It should clearly convey the views of the management on dealing with
the customers and achieving customer satisfaction. The quality policy
is aimed at improving the customer perceptions about the
Quality policy
organization and thereby improving the organization’s image. It
should also be like a guide for each section of the organization for
developing their own quality objectives
The communications framework starts from the vision, mission, and
policy statements as finalized by the CEO. The important document
for communications within the organization is the quality manual. If
the organization is already certified under ISO 9000 standards, then
the quality manual can be used. Below the quality manual, the next
tier of document is quality plan. While the quality manual says what
is to be done, quality plan says how it is to be done. Based on the
quality manual and quality plan, the process documents are to be
prepared. The process document may consist of the following:
 General procedures which cut across the entire organization,
involving one or more processes
 The documents specific to particular process such as detailed
Plan for establishing procedures and work instructions.
communications framework

The TQM project should be steered by a quality council. Depending

on the size of the organization, there can be a one or two-tier quality
council.
 Steering Quality Council – it is the apex quality council consisting
Plan for Quality Council
of the CEO and the Directors. The TQM facilitator will act as the
secretary to the Steering Quality Council
 Divisional Quality Council – are made for each division under
general managers in which TQM facilitator will also be a member.
Roles and responsibilities of TQM facilitator
Selection of TQM Facilitator
 Should be a coach and not a player
  Should not be made responsible for production
 An independent person
 Encourage ideas in group meetings
 Avoid expressing his own ideas and be tactful
 Should take the responsibility for coordinating TQM
implementation across the organization
 Provide continuity to the QC meetings and should be able to
understand the entire operation in the organization.

TQM facilitator – he is the nodal person for all improvement and

related matters, including convening meetings of the QC.
Roles and responsibilities of each member of Quality Council in
TQM:
 They should have personal commitment to quality and TQM. The
members of the quality council should be convinced that continuous
improvement is possible in the organization
 They should constitute the right teams, which can be called as
Process Improvement Teams (PIT) for solving each problem. Since
the abbreviation does not sound good we will call them Process
Action Teams (PAT)
 They should attend QC meetings after adequate preparation
Role of Quality Council  They should keep track of the steps taken by the teams towards
improvement on a regular basis
 They may discuss with the customers and suppliers to get first-hand
information about what is happening in the organization. Hence, it
would be better to adopt Tom Peters’ MBWA to know the facts
 They should facilitate training of the employees as well as the
improvement of the team members
 They should be champions for quality in the organization and
should be willing to sponsor quality related initiatives
 They should always be on the lookout for related information and
provide resources continuously for quality improvement
MBNQA advocates that strategic business plan and quality plan
should be integrated. The strategic business plan involves the
proposed market share, goals, business value, profits, diversification
to new areas of business, investment thereof, etc. the strategic quality
planning is the formulation of strategies to achieve TQM in the
organization.
Strategic Quality Plan
Some strategies for TQM implementation:
 Training for top management-members of quality council, senior
management-executives, employees
 Forming improvement teams for specific problems
 The consultant can train the quality council members. The TQM
facilitator can also undergo the training along with the quality council
 members. Thereafter, the TQM facilitator should take the lead and
conduct training for as many employees as possible in TQM
principles and how to go about TQM.
Employees should be encouraged to give suggestions for
improvement. The ideas will be discussed in the QC meeting and it
will decide whether a suggestion has to considered or not.

PATs will be formed by the QC. Each team should be assigned clear
Employee involvement responsibilities and in particular specific deliverables by the teams be
defined

The QC plays a nodal role in implementing continuous improvement

program. It is important to involve employees in the improvement
tasks in the form of PAT.
The improvement teams will be formed for solving a given problem
on a part-time basis and will be dissolved as soon as the job has been
completed. Therefore, improvement teams are not a permanent
establishment. The improvement teams could be proposed by the
Constitution of PAT
TQM facilitator, but should be approved by the quality council. It is
better to constitute cross-functional improvement teams to result in a
better solution. Every employee should get a chance to be part of the
improvement team
Business process benchmarking helps in identification of the
Identify Process potential processes for improvement. The potential processes are
those that yield a higher return on investment.

Apply PDSA for Improvement

Phase Definition
There are two types of planning activities:
 Higher level of planning – involves formulating policies, selection
of a consultant, selection of TQM facilitator, constitution of QC,
formulating plans and procedures for various activities and training
of personnel in the organization. This can be called overall planning
Planning Phase of TQM
or corporate-wide strategic planning before entering into TQM.
 Lower level planning – encountered when the organization has to
decide where to improve, or what steps to improvement has to be
taken.’ Each improvement action has to be planned and executed
following the PDSA cycle.
After successful planning, the Do phase starts. The first task in the
Do Phase of TQM Do phase is the meeting of the QC. In the first meeting, the various
plans as given above should be authorized by the QC
In every meeting of the QC, the results achieved through the
Study Phase of TQM implementation of TQM should be studied. Whenever plans are to be
changed, they should be discussed and decisions taken
 In the act phase, the plans for implementing TQM should be
Act Phase of TQM
confirmed
NOTE: This PDSA cycle should be repeated continuously.

Select Process for Improvement

 Once the initial system is established, documented, and implemented, then it will be easier for
making progress. In other words, improvement can be made only after a system is established. The
improvement actions are aimed at achieving one or more of the following goals
o Attaining technical excellence
o Improving quality
o Reducing defects
o Increasing productivity
o Reducing quality cost
o Improving uptime of equipment
o Reducing overhead costs
o Reducing delivery time
 The triggers for improvement may come from many sources. Some of the known sources are :
o Internal quality auditing
o Management review
o MBWA, employee feedback
o Customer feedback
o Supplier feedback
o In process data
o Field failure data
 Following the business process benchmarking concept will help the organization/QC to prioritize
the processes for improvement when there are a large network of processes needing improvement.

PDSA for Continuous Improvement

 There are two PDSA cycles, one for the TQM journey as a whole in the organization and the
other for each improvement action

Phase Notes
The team has to make a plan addressing the following points, in
particular:
Plan  What is the current situation/level of performance?
 What are the expected results/level of performance?
 How do they propose to go ahead to find out the best solution?
After the QC has given its seal of approval, the approved action plan
Do
has to be implemented in the Do phase on a pilot basis.
In this phase, the improvement team members have to assess the
effectiveness of the suggested solutions. The process owners may
also check whether the improved process is yielding better results.
Study phase
The improved process has to be continuously monitored during the
trial period. Performance data should be collected at regular intervals.
The improvement team should analyze the data during this phase.
 Only if the improvement team is satisfied with the improved process,
they inform the QC.
If the QC is convinced that the process has been improved and the
expected results are achieved, then the Act phase commences. In this
Act Phase
phase, procedures are modified and issued. Thus, new processes are
defined and implemented on a continuing basis in this phase.
The QC has to meet at regular intervals. Each meeting will consider
the following:
 Approving new initiatives for improvement and forming teams
Agenda for QC meetings
 Discussing progress of on-going improvement action
 Approving solutions suggested
 Reviewing the effects of past actions
At the planning stage for each improvement action, a detailed report
should be formulated by the improvement team indicating the time
schedule for finding out solutions, putting them into practice,
assessment and confirmation. The implementation team should stick
Schedules for improvement
to the schedules. The TQM facilitator should keep a watch on the
actions
schedules and take corrective actions where necessary. Unless
schedules are maintained, improvement teams may take years. The
improvement action, unless implemented in a timely manner, is
going to be futile.
Appreciation of the CEO or the QC will definitely motivate the
employees to improve. One of the jobs of the TQM facilitator is to
communicate the improvements made and its benefits to all the stake
Communicating success stories holders. Such success stories should be widely circulated within the
organization and even outside. This will bring in motivation for the
improvement team members as well as the process owners to strive
hard to improve the processes further.
According to Tom Peters, the following are the requirements of
winning organizations:
 Total quality management
 Reengineering
Implementation tips for Winning
 Leveraging knowledge (sharing information rather than hoarding
Organizations
it)
 Caucus cannibalistic corporation (adventurous and bold)
 Virtual organization
 Empowerment

 What TQM is and what it is not?

Is Not
A cultural change An overnight cure
Responsibility of top management QA manager is not responsible
A systematic way to improve processes A new program
Structured approach in solving problems Fire fighting
 Proactive organization Reactive
Action speaks Slogan speaks
Practiced by every one A specialized discipline
Team involved Only one person or department involved

 Differences between organizations practicing TQM and others.

Area TQM Company Others

Training Investment Expensive
Change Way of life Resisted
Defects Zero Inevitable
Effort Long-term Short-term
Performance Customer requirements Cost and schedule as agreed to
Communications Horizontal and vertical Vertical
Performance goals Better than yesterday Organization standards
Management role Coach Enforcer

Getting Things Done

 Some of the points which will help in getting things done by employees so as to result in TQM
are briefly discussed below:

Points Notes
Recognition of the contributors, both employees and suppliers, will
lead to accelerated implementation of TQM. Recognition is a must
Recognition in order to motivate the employees to bring out the solutions to the
problems in the organization. It may also be required to distinguish
between the performers and non-performers
There are 4 types of management techniques as given below:

 Authoritative
 Authoritative and benevolent
 Consultative
 Participative
Praise and Punish
The ideal is participative management, but this is not possible
straightaway. It is better to start the TQM journey with the second
type, authoritative and benevolent. The management is benevolent,
which means it tries to fulfill the aspirations of the employees at the
same time; the management also demands that the employees should
do their best for the organization.
It is the support of the CEO and the QC members which would help
80% of success will be due to the process owners to cross the barriers and improve the process,
Personal Contact since resistance to change is a universal phenomenon. The support of
the management will help the process owners to overcome the
 resistance to change. Therefore, the CEO and the QC members
should maintain personal contact with the employees.
Continual improvement means incremental improvements. One
improvement at a time can lead to a big success over time. But, such
Accumulate small gains
small improvements should follow each other, and the management
should accumulate these improvements
TQM will help the organizations to improve their reputation and
credibility not only within the organization but also amongst it’s
Build Credibility - inside and
customers. One of the strategies that could be adopted is to talk about
outside
success on account of TQM within the organization and the public
forums.
The QC members and the CEO should be consistent. They should
take decisions based on detailed analysis. They should weigh the pros
and cons before taking any decision. They can consult as many
Persist
employees as possible, but once a decision is taken, they should not
look back and should be consistent. Once an action is taken for
improvement and if that is found to be effective, they should persist.

Barriers to TQM Implementation

 Lack of top management commitment

 Lack of employee involvement
 Non-cooperation of first time managers and middle management
 Lack of clarity in vision
 Losing track of business performance
 Not involving customers and suppliers
 Belief that training leads to employee attrition
 Resistance to change at all levels
 Ineffective TQM facilitator
 Wrong consultant
 Lack of consistency and persistence by the management
 Haste and thereby waste
 Looking for immediate gains
 Not investing adequate resources
 Adhoc organization
 Quick obsolescence of products
 Losing confidence in the middle of the journey due to various reasons
 Working harder than smarter
 Tough competition leading to frequent price war
 Unable to find champions within the organization
 Not properly staffed-too many or too less number of employees