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/ 77 Sections SectionsSection 1 of 99 1. CHAPTER ONE - INTRODUCTIONp. 3 2. CHAPTER TWO - CONCEPTS AND PHILOSOPHIES OF TQMp. 3 3. CHAPTER THREE - THE ACCEPTABILITY OF TQMp. 3 4. CHAPTER FOUR - THE ESSENTIALS OF TQMp. 3 5. CHAPTER FIVE - THE EFFECTS OF TQMp. 3 6. CHAPTER SIX - IMPLEMENTATION OF TQMp. 3 7. CHAPTER SEVEN - TQM TOOLSp. 3 SUMMARYp. 5

So, the summarization is being done in the following pointsp. 5 DEFINITIONp. 6 ORIGINSp. 7 TQM :- A QUALITY ORIENTED APPROACHp. 8 CHARACTERISTICS OF TQM:p. 9 POTENTIAL BENEFITS OF TQM:p. 9 INTRODUCTION:p. 12 TOTAL QUALITY MANAGEMENT(TQM) :p. 13 TQM Compared to ISO 9001 :p. 13 TQM as a Foundation :p. 13 The Ten Steps to TQM are as follows:p. 14 Principles of TQM :p. 14 The Principles of TQM are as follows:p. 14 Processes must be Managed and Improved:p. 15 Key to Quality:p. 16 I. Foundationp. 19 II.Bricksp. 20 III.BindingMortarp. 21 IV.Roofp. 21 THE TQM MODEL:p. 22 CHAPTER THREEp. 25 TQM in Service Industryp. 27 Introductionp. 27 What is different ?p. 28 Growth of Service sectorp. 28 Challenge of Service sectorp. 28

Service Quality Dimensionsp. 28 CHAPTER FOURp. 28 Customers and suppliersp. 30 Customers (internal and external)p. 30 Suppliers (internal and external)p. 31 Poor practicesp. 31 The essential components of TQM commitment & leadershipp. 32 Culture changep. 34 CHAPTER FIVEp. 37 Step 1. Define the Problemp. 38 Customer desire:p. 40 Current status:p. 40 The Problem was therefore defined: Reduce Average+3 sigma of turnaround for:p. 40 Step 2. Analysis of the Problemp. 40 Step 3. Generating Ideasp. 41 Step 4. Testing the Ideap. 42 Step 5. Implementing the Ideasp. 43 Step 6. Check the Resultp. 43 Step 7. Standardize Control/Document the Improvement Storyp. 43 CHAPTER SIXp. 46 Implementation Principles and Processesp. 46 Steps in Managing the Transitionp. 47 The Concept of Continuous Improvement by TQMp. 48 TQM in manufacturingp. 50 TQM and contingency-based researchp. 51 TQM leadership from top managementp. 53

Continuous improvementp. 53 Fastresponsep. 54 Actions based on factsp. 54 Employee participationp. 55 A TQM culturep. 55 Product development in a TQM environmentp. 55 Awards for Quality achievementp. 56 CHAPTER SEVENp. 56 Total Quality Management (TQM) Toolsp. 57 TQM Toolsp. 58 Pie Charts and Bar Graphsp. 58 Histogramsp. 58 Run Chartp. 59 Force Field Analysisp. 60 Focus Groupsp. 61 Brainstorming and Affinity Diagramsp. 61 Tree Diagramp. 61 Flowcharts and Modelling Diagramsp. 62 Relations Diagramp. 63 PDCAp. 63 CONCLUSIONp. 64 Deployment Country : New York USAp. 65 Overview :p. 65 Why Become an On Demand Business?p. 66 Automating provisioning processes using best practicesp. 67 Consistent, cost-effective software deploymentp. 68

Savings to reach several million dollarsp. 68 Key Components Softwarep. 69 Serverp. 69 On Demand Business Benefitsp. 69 Quality through standardsp. 69 What is quality?p. 69 Why is quality important?p. 70 Implementing a quality system internalp. 72 Implementing a quality system externalp. 74 Conclusion of Case Studyp. 75 TEXT REFERENCESp. 76 DIAGRAMATIC REFERENCESp. 76 Zoom Out Zoom In Fullscreen Exit Fullscreen Select View Mode View Mode SlideshowScroll Top of Form
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Suresh Kumar

: Total QualityManagement A Project Report ACKNOWLEDGEMENT I would like to thank Mrs. Manisha Anand for her support and co-operation in completion of the project report within the stipulated time period. 2

INDEX 1. CHAPTER ONE-INTRODUCTION2. CHAPTER TWO-CONCEPTS AND PHILOSOPHIESOF TQM3. CHAPTER THREE-THE ACCEPTABILITY OF TQM4. CHAPTER FOUR-THE ESSENTIALS OF TQM5. CHAPTER FIVE-THE EFFECTS OF TQM6. CHAPTER SIXIMPLEMENTATION OF TQM7. CHAPTER SEVEN-TQM TOOLS CASE STUDY ON IBM (TIVOLI SOFTWARE). 3

GLOSSARY 1. IBM-International Business MachineCorporation2. TQM-Total Quality Management3. ISO-International Standard Organization4. TPM-Total Productive Maintenance5. QCC s -Quality Control Circles6. BPR-Business Process Re-Engineering7. TQC-Total Quality Circles8. ATM-Automated Teller Machines9. CPC-Control Processing Centre10.CADComputer Aided Design11.INCL.-Including12.PDCA-Plan-Do-Check-Act13.QMSQuality Management System 4

SUMMARY Every nation has its own independent historical and cultural background. The quality sce--nario , therefore, differs from one national setting to the other. The nations areorienting their quality management strategies and systems to meet the requirementsof the opera-ing environment though the primary focus remains the same, that is,Total Customer Sat-isfication .Many of the present techniques of quality management were developed inJapan. However, U.S.A., European nations and developing nations have alsocontributedsignificantly to this development. The studies carried out by researchers in differentnational settings reveal that the concept and philosophies of TQM are notunderstood by the managers and others.An all out effort , therefore is required to promote the understan--ding by launching massive educational and management development programs atalllevels so as to create a cultural consciousness towards quality. TQM is notundimensional approach but is multifaceted in nature.Understanding these facets isessential to promote a

successful quality improvement program. An integratedapproach on all vital compon-ents of TQM is required to achieve the desired goal. So, the summarization is being done in the following points.1. TQM

has been

accepted by both service and manufacturing organizations,globallyas asystematic management approach to meet the competitive challenges.5

2. TQM redefines the quality with emphasis on top management commitment andcusto--mer satisfaction. 3. The benefits of TQM are numerous and are increasingly realized byorganizations. 4. TQM provides a linkage between productivity and quality. 5. The application of TQM tools increases a companys efficiency. 6. The focus of TQM is on: (a) Involvement of everyone in organization in continuous improvement. (b) Commitment to satisfy customers. (c)

Participation through teamwork. (d) Commitment and Leadership of top management. CHAPTER ONEINTRODUCTION DEFINITION As defined by ISO:"TQM is a management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term successthrough customer satisfaction, and benefits to all members of theorganization and to society."In Japanese, TQM comprises four process steps, namely:1. Kaizen Focuses on Continuous Process Improvement, to make processes visible, repeatable and measureable.6

2. Atarimae Hinshitsu Focuses on intangible effects on processes andways to optimize and reduce their effects.3. Kansei Examining the way the user applies the product leads toimprovement in the product itself.4.Miryokuteki Hinshitsu Broadens management concern beyond theimmediate product.TQM requires that the company maintain this quality standard in all aspectsof its business. This requires ensuring that things are done right the first timeand that defects and waste are eliminated from operations.Total Quality Management (TQM) is a management strategy aimed atembedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, government, and serviceindustries, as well as NASA space and science programs. ORIGINS Although W. Edwards Deming is largely credited with igniting the qualityrevolution in Japan starting in 1946 and trying to bring it to the United States inthe 1980s, Armand V. Feigenbaum was developing a similar set of principles atGeneral Electric in the United States at around the same time. "Total QualityControl" was the key concept of Feigenbaum's 1951 book, Quality Control:Principles, Practice, and Administration, a book that was subsequently releasedin 1961 under the title, Total Quality Control (ISBN 0070203539). Joseph Juran,Philip B. Crosby, and Kaoru Ishikawa also contributed to the body of knowledgenow known as TQM.The American Society for Quality says that the term Total Quality Managementwas first used by the U.S. Naval Air Systems Command "to describe itsJapanese-style

management approach to quality improvement."[1] This isconsistent with the story that the United States Department of the NavyPersonnel Research and Development Center began researching the use of statistical process control (SPC); the work of Juran, Crosby, and Ishikawa; andthe philosophy of Deming to make performance improvements in 1984. Thisapproach was first tested at the North Island Naval Aviation Depot.7

In his paper, "The Making of TQM: History and Margins of the Hi(gh)-Story"from 1994, Xu claims that "Total Quality Control" is translated incorrectly fromJapanese since there is no difference between the words "control" and"management" in Japanese. William Golimski refers to Koji Kobayashi, former CEO of NEC, being the first to use TQM, which he did during a speech when hegot the Deming prize in 1974. TQM :- A QUALITY ORIENTED APPROACH Total Quality Management (TQM) is one of quality-oriented approaches thatmany organisations adopt. It is generally acknowledged that manufacturingcompanies need to be quality oriented in conducting their business to survive the business world. TQM is an integrated management philosophy and a set of practices that emphasise top management commitment, customer focus, supplier relationship, benchmarking, quality-oriented training, employee focus, zero-defects, process improvement, and quality measurement. This paper investigatesthe structural linkages between TQM, product quality performance and business performance in the electronics industry in Malaysia. Given the nature of thisstudy, the statistical analysis technique called Structural Equation Modelling wasused. This preliminary result suggests that there is insufficient statisticalevidence to conclude significant simple relationships between TQM, productquality performance, and business performance. This implies that the electronicsindustry cannot assume direct causal linkages between these three constructs,which might also suggest that there is a more complex relationship betweenTQM, product quality performance, and business performance. However, theresults reveal that top management commitment, supplier relations and trainingin particular appear to be of primary importance for TQM practices in Malaysianelectronics companies.8

 CHARACTERISTICS OF TQM: The characteristics of TQM, as revealed from above definition are as follows: 1. TQM is customer oriented. 2. TQM requires a long term commitment for continuous improvement of all processes. 3. The success of TQM demands the leadership of top management andcontinuous involvement. 4. Responsibility for establishments themanagement of an organisation. 5. TQM is a strategy for continuously improving performance at all levels andin all areas of responsibility. POTENTIAL BENEFITS OF TQM: The advantages of adopting TQM system compared to conventional qualitysystem are numerous and are outlined below.9 and improvement of systems lies with

1. TQM helps to focus clearly on the needs of the market.The traditional approach of quality control focusses on the technical details of a product so as to satisfy the customer. However, the customer longs for different satisfaction perspectives which are generally overlooked in thetraditional approach.The needs change from person to person and also from place to place. As TQM focuses on the concept of university, it tries to abstractthe satisfaction perceptions of the market and thus helps the organisation toidentify and meet the requirements of the market in a better way.

2. TQM facilitates to aspire for a top quality performer in every sphere of activity.It is a well accepted fact that the negative attitudes of employees and non- participative culture of the organization pose the greatest hurdle to organisationssuccess, growth and prosperity. TQM emphasis, on bringing about attitudinaland cultural change through promotion of participative work culture andeffective team-work. This serves to satisfy the higher human needs of recognition and self-development and enhances employees interest in the job.The employees performance, thus, is not restricted to the product or serviceareas but reflects in other spheres as well. 3. It channelises the procedures necessary to achieve quality performance.Quality in its true sense can not be achieved instantly. It requires a systematicand a long-term planning and strategic approach. By focusing on defining thequality policies, goals and objectives, and communicating these properly to oneand all in the organization, adopting SQC and SPC techniques and developingand using a system of evaluation , the organization can channelize their efforts toachieve the desired and objectivated quality performance. 4. It helps examine critically and continuously all processes to remove non- productive activities and waste.The organizations always aim at improving productivity as it leads to reductionin cost resulting in increase in profitability. The efforts in this direction are10

contributed because of the formation of quality improvement teams whichmeet regularly and through a systematic approach which tries to remove non- productive activity. A continuous effort to identify the problems and resolvethem helps to reduce the waste. The culture of well being thus improveshousekeeping, costeffectiveness and safety. 5. It gears organizations to fully understand the competition and develop aneffective combating strategy.The dynamic changes in the global market and the open market policiesadopted by a large number of organizations has resulted in increasedcompetition and for many organizations the survival has become a key issue.For this cause it is essential for the organistions to understand the competitionand develop and adopt suitable strategies to meet the challenges. As

TQMhelps to understand the pulse of customer and thus the market, it gives an edgeto the organizations of variable nature to meet the competition. 6. It helps to develop good procedures for communication and acknowledginggood work.Improper procedures and inadequate communication are yet another bane of many organizations, which result in misunderstanding, confusion, low productivity, duplication of efforts, poor quality, low morale and so on. TQM brings together members of various related sections, departments anddifferent levels of management thereby providing an effective vehicle of communication and interaction. 7. It helps to review the process needed to develop the strategy of never endingimprovement. Quality improvement efforts cannot be restricted to any time period. They need to be continuous to meet the dynamic challenges. TQMemphasizes on a continuous and periodic review so as to make the requiredchanges.The benefits derived by the organizations, therefore, are many and multi-faceted. Many of these can be measured in quantitative terms. However, theintangible benefits, which includes enrichment of the quality of the worklifeand many more are not quantifiable. At the same time, it has to beestablished whether they do occur or not in order to prove or disapprove theefficacy of the concept. This can be assessed by a well-planned research11

project or by carrying out an opinion survey periodically. The tangible andintangible benefits of TQM are variable in nature. CHAPTER TWOCONCEPTS AND PHILOSOPHIES OF TQM INTRODUCTION: Total Quality Management (TQM), a buzzword phrase of the 1980's, has been killedand resurrected on a number of occasions. The concept and principles, thoughsimple seem to be creeping back into existence by "bits and pieces" through theevolution of the ISO9001 Management Quality System standard.Companies who have implemented TQM include Ford Motor Company, PhillipsSemiconductor, SGL Carbon, Motorola and Toyota Motor Company.The latest changes coming up for the ISO 9001:2000 standards "Process Model"seem to complete the embodiment. TQM is the concept that quality can be managedand that it is a process. The following

information is provided to give anunderstanding of the key elements of this process.12

TOTAL QUALITY MANAGEMENT(TQM) :Total = Quality involves everyone and all activities in the company. Quality = Conformance to Requirements (Meeting Customer Requirements). Management = Quality can and must be managed. TQM = A process for managing quality; it must be a continuous way of life; a philosophy of perpetual improvement in everything we do. TQM Compared to ISO 9001

: ISO 9000 is a Quality System Management Standard. TQM is a philosophy of perpetual improvement. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives. An ISO implementation is a basis for a TotalQuality Management implementation. Where there is an ISO system, about 75 percent of the steps are in place for TQM. The requirements for TQM can beconsidered ISO plus. Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction andmeasurement requirements. In short, implementing TQM is being proactiveconcerning quality rather than reactive. TQM as a Foundation

:TQM is the foundation for activities which include; Meeting Customer Requirements Reducing Development Cycle Times Just In Time/Demand Flow Manufacturing Improvement Teams Reducing Product and Service Costs Improving Administrative Systems Training Ten Steps to Total Quality Management (TQM): 13

The Ten Steps to TQM are as follows: 1.Pursue New Strategic Thinking2.Know your Customers3.Set True Customer Requirements4.Concentrate on Prevention, Not Correction5.Reduce Chronic Waste6.Pursue a Continuous Improvement Strategy7.Use Structured Methodology for Process Improvement8.Reduce Variation9.Use a Balanced Approach10.Apply to All Functions Principles of TQM

:The Principles of TQM are as follows: 1.Quality can and must be managed.2.Everyone has a customer and is a supplier.3.Processes, not people are the problem.4.Every employee is responsible for quality.5.Problems must be prevented, not just fixed.6.Quality must be measured.7.Quality improvements must be continuous.8.The quality standard is defect free.9.Goals are based on requirements, not negotiated.10.Life cycle costs, not front end costs.11.Management must be involved and lead. 12.Management Commitment1.Plan (drive, direct)2.Do (deploy, support, participate)3.Check (review)4.Act (recognize, communicate, revise)13.Employee Empowerment1.Training2.Suggestion scheme3.Measurement and recognition4.Excellence teams 14

14.Fact Based Decision Making1.SPC (statistical process control)2.DOE, FMEA3.The 7 statistical tools4.TOPS (FORD 8D - Team Oriented Problem Solving)15.Continuous Improvement1.Systematic measurement and focus on CONQ2.Excellence teams3.Cross-functional process management4.Attain, maintain, improve standards16.Customer Focus1.Supplier partnership2.Service relationship with internal customers3.Never compromise quality4.Customer driven standards Plan and organize for quality improvement. Processes must be Managed and Improved: Processes must be managed and improved! This involves: Defining the process Measuring process performance (metrics) Reviewing process performance

Identifying process shortcomings Analyzing process problems Making a process change Measuring the effects of the process changeCommunicating both ways between supervisor and user 15

Key to Quality: The key to improving quality is to improve processes that define, produce andsupport our products.All people work in processes.People Get processes "in control" Work with other employees and managers to identify process andeliminate themManagers and/or Supervisors Work on Processes Provide training and tool resources Measure and review process performance (metrics) Improve process performance with the help of those who use the process Planning a Change: problems

16

TQM PROBLEM SOLVING SEQUENCE: 17

TQM Process Improvement and Problem Solving Sequence

PLAN

(PLAN A CHANGE) DO

(IMPLEMENT THECHANGE) CHECK (OBSERVE THEEFFECTS) ACTION (EMBED THEFIX INTOTHE PROCESSFOR GOOD) DEFINETHEPROBLEMIDENTIFYPOSSIBLECAUSESEVALUATEPOSSIBLECAUSESMAKEAC HANGETESTTHECHANGETAKEPERMANENTACTION 1. Recognizethat what youare

doing is a"PROCESS"

2. Identify thecommodity being processed.ProcessInference3. Define somemeasurablecharacteristicsof value to thecommodity.4. Describe the"PROCESS"o Process FlowAnalysis'so Flow chartso List of steps5. Identify the"Big" problemoBrainstormingo Checklistso Paretoanalysis6."BRAINSTORM"what is causingthe problem.7. Determine what past data shows.o Frequencydistributiono Pareto chartso Control charts sampling8. Determine therelationship between causeand effecto Scatter diagramso Regressionanalysis

9. Determinewhat the process is doingnowo Control charts- sampling

10. Determine whatchange would help Your knowledgeof the process

Scatter diagrams

ControlCharts sampling

Paretoanalysis****Then makethe change.

11. Determine whatchange worked(confirmation).

Histograms

Control charts sampling

 Scatter diagrams

12. Ensure the fixis embedded in the process and thatthe resulting process is used.Continue tomonitor the process to ensure:A. The problem isfixed for good.and

B. The process isgood enough

o Control charts sampling

****To ensurecontinuousimprovement,returnto step 5. THE EIGHT ELEMENTS OF TQM: 18

Total Quality Management is a management approach that originated in the 1950'sand has steadily become more popular since the early 1980's. Total Quality is adescription of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culturerequires quality in all aspects of the company's operations, with processes beingdone right the first time and defects and waste eradicated from operations.To be successful implementing TQM, an organization must concentrate on the eightkey elements: 1.Ethics2.Integrity3.Trust4.Training5.Teamwork6.Leadership7.Recognition8.Commu nicationThis paper is meant to describe the eight elements comprising TQM. Key Elements

TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQMrequires the help of those eight key elements. These elements can be divided intofour groups according to their function. The groups are:I. Foundation - It includes: Ethics, Integrity and Trust.II. Building Bricks - It includes: Training, Teamwork and Leadership.III. Binding Mortar - It includes: Communication.IV. Roof It includes: Recognition. I. Foundation TQM is built on a foundation of ethics, integrity and trust. It fosters openness,fairness and sincerity and allows involvement by everyone. This is the key tounlocking the ultimate potential of TQM. These three elements move together,however, each element offers something different to the TQM concept.1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It isa two-faceted subject represented by organizational and individual ethics.Organizational ethics establish a business code of ethics that outlines guidelines thatall employees are to adhere to in the performance of their work. Individual ethicsinclude personal rights or wrongs.2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to thefacts and sincerity. The characteristic is what customers (internal or external) expect19

and deserve to receive. People see the opposite of integrity as duplicity. TQM willnot work in an atmosphere of duplicity.3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, theframework of TQM cannot be built. Trust fosters full participation of all members. Itallows empowerment that encourages pride ownership and it encouragescommitment. It allows decision making at appropriate levels in the organization,fosters individual risk-taking for continuous improvement and helps to ensure thatmeasurements focus on improvement of process and are not used to contend people.Trust is essential to ensure customer satisfaction. So, trust builds the cooperativeenvironment essential for TQM. II.Bricks Basing on the strong foundation of trust, ethics and integrity, bricks are placed toreach the roof of recognition. It includes:4. Training - Training is very important for employees to be highly productive.Supervisors are solely responsible for implementing TQM within their departments,and teaching their employees the philosophies of TQM. Training that employeesrequire are interpersonal skills, the ability to function within teams, problem solving,decision making, job management performance analysis and improvement, businesseconomics and technical skills. During the creation and formation of TQM,employees are trained so that they can

become effective employees for the company.5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutionsto problems. Teams also provide more permanent improvements in processes andoperations. In teams, people feel more comfortable bringing up problems that mayoccur, and can get help from other workers to find a solution and put into place.There are mainly three types of teams that TQM organizations adopt:A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporaryteams with the purpose of dealing with specific problems that often re-occur. Theseteams are set up for period of three to twelve months.B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally lastfrom one week to three months.C. Natural Work Teams (NWTs) - These teams consist of small groups of skilledworkers who share tasks and responsibilities. These teams use concepts such asemployee involvement teams, self-managing teams and quality circles. These teamsgenerally work for one to two hours a week.20

6. Leadership - It is possibly the most important element in TQM. It appearseverywhere in organization. Leadership in TQM requires the manager to provide aninspiring vision, make strategic directions that are understood by all and to instillvalues that guide subordinates. For TQM to be successful in the business, thesupervisor must be committed in leading his employees. A supervisor mustunderstand TQM, believe in it and then demonstrate their belief and commitmentthrough their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down through out the organization to provide focus, clarity and direction. A key point is that TQM has to be introducedand led by top management. Commitment and personal involvement is requiredfrom top management in creating and deploying clear quality values and goalsconsistent with the objectives of the company and in creating and deploying welldefined systems, methods and performance measures for achieving those goals. III.BindingMortar 7. Communication - It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as avital link between all elements of TQM. Communication means a commonunderstanding of ideas between the sender and the receiver. The success of TQMdemands communication with and among all the organization members, suppliersand customers. Supervisors must keep open airways where employees can send andreceive information about the TQM process. Communication coupled with

thesharing of correct information is vital. For communication to be credible themessage must be clear and receiver must interpret in the way the sender intended.There are different ways of communication such as:A. Downward communication - This is the dominant form of communication in anorganization. Presentations and discussions basically do it. By this the supervisorsare able to make the employees clear about TQM.B. Upward communication - By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively tocorrect the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empoweringcommunication, where supervisors keep open ears and listen to others.C. Sideways communication - This type of communication is important because it breaks down barriers between departments. It also allows dealing with customersand suppliers in a more professional manner. IV.Roof 8. Recognition - Recognition is the last and final element in the entire system. Itshould be provided for both suggestions and achievements for teams as well asindividuals. Employees strive to receive recognition for themselves and their teams.Detecting and recognizing contributors is the most important job of a supervisor. As people are recognized, there can be huge changes in self-esteem, productivity,21

quality and the amount of effort exhorted to the task at hand. Recognition comes inits best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as,Ways - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc. Places - Good performers can be recognized in front on performance boards and also in front of top management. Time - Recognition can given at any time like in staff meeting, annual award banquets, etc.We can conclude that these eight elements are key in ensuring the success of TQMin an organization and that the supervisor is a huge part in developing theseelements in the work place. Without these elements, the business entities cannot besuccessful TQM implementers. It is very clear from the above discussion that TQMwithout involving integrity, ethics and trust would be a great of departments,

remiss, in fact it would be incomplete. Training is the key by which the organization creates a TQMenvironment. Leadership and teamwork go hand in hand. Lack of communication between departments, supervisors and employees create a burden on the wholeTQM process. Last but not the least, recognition should be given to people whocontributed to the overall completed task. Hence, lead by example, train employeesto provide a quality product, create an environment where there is no fear to shareknowledge, and give credit where credit is due is the motto of a successful TQMorganization THE TQM MODEL: At the century close, the creation of the global market, international orientation of management that sweeps national boundaries, introduction of new technologies, andshift towards customer focused strategies, make the competition stronger than ever.The criteria for success in this global, internationally oriented market have beenchanging rapidly. In order to expand business, enter new markets, and set realistic,competitive long-term objectives, excellence became an imperative. Management'seffort has been directed towards discovering what makes a company excellent.To achieve excellence, companies must develop a corporate culture of treating people as their most important asset and provide a consistent level of high quality products and services in every market in which they operate. Such an environmenthas supported the wide acceptance of Total Quality Management (TQM) which22

emerged recently as a new, challenging, marketable philosophy. It involves threespheres of changes in an organization -- people, technology and structure.There is also a need for a systematic approach so that each element of TQMEX can be bonded together smoothly. Oakland [1989] originated the idea of a 3-cornerstonemodel. The proposed 4-pillar model (Figure 3.1) brings the customer's requirementinto the system. This makes the approach to TQM more complete. The additional pillar -- satisfying customers -- is vital because it explicitly addresses customersrequirements. Without it TQM would have no objective.The Four Pillars of TQMThe role of top management in implementation of total quality is crucial and itsinput on people far-reaching. TQM, therefore, should be understood as managementof the system through systems thinking, which means understanding all the elementsin the company and putting them to work together towards the common goal. TheTQMEX Model advocates an integrated approach in order to support the transitionto systems management which is an ongoing process of continuous improvementthat begins when the company commits itself to managing

by quality. The Modelilluminates the elements that form a base to the understanding of TQM philosophyand implementation of the process company-wide. The Structure of TQMEX: 23

 The Logic of TQMEX: In order to have a systematic approach to TQM, it is necessary to develop aconceptual model. Generally, a model is a sequence of steps arranged logically toserve as a guideline for implementation of a process in order to achieve the ultimategoal. The model should be simple, logical and yet comprehensive enough for TQMimplementation. It also has to sustain the changes in business environment of thenew era. The Model also reflects teachings of the contemporary quality gurus. Theidea was to develop a universally applicable step-by-step guideline by includingrecognized practices in TQM: Japanese 5-S Practice (5-S) Business Process Re-engineering (BPR) Quality Control Circles (QCCs) ISO 9001/2 Quality Management System (ISO) Total Productive Maintenance (TPM)As Osada pointed out, 5-S is the key to total quality environment. Therefore, itshould be the first step. BPR is concerned with redefining and designing your business process in order to meet the needs of your customers effectively. It is moreconcerned with the business objectives and systems, and should follow as Step 2.QCCs are concerned with encouraging the employees to participate in continuousimprovement and guide them through. They improve human resources capability toachieve the business objectives. Therefore, this should be Step 3. ISO 9000 is todevelop a quality management system based on the good practices in the previousthree steps. TPM is a result of applying 5-S to equipment based on a sound quality24

management system. In fact ISO 9001 requires procedures for process control andinspection and testing equipment which are part of TPM. Therefore TPM should beimplemented in Step 5.If the above five steps have been implemented successfully, the organization isalready very close towards achieving TQM.TQMEX is a sequential model which is easy to remember and simple to implement.This is in line with the quality principle of Keep It Short and Simple (KISS),although it is not simple to make a model simple!Companies starting to implement TQM should follow TQMEX step-by-step.Companies which have already gone through some degree of improvement usingsome of the steps should review what have not been done and do it as their next stepof improvement. In order to maximize your benefits from TQMEX, you have to startearly too. CHAPTER THREE THE ACCEPTABILITY OF TQM JAPANESE TQM MODEL: At first, few but the Japanese took Deming seriously. Known for his legendaryattacks on executives and compassion for the worker, the Japanese sense of responsibility to one's superiors and subordinates made it easier to accept Deming'smessage that management's role was to provide the optimal conditions for theworkers to do the best job.The Japanese then extended Deming's teaching to many dimensions of management.Here are TQM models from the Japanese Society of Quality and the Japan StandardsAssociation that show how extensive their definition of TQM is.The Japanese identify three major dimensions of TQM: Daily Management,Hoshin/Policy Management, and Cross Function Management. We will study thesein detail in the course. They can be visualized with the following picture.25 Total Quality Management Download this Document for FreePrintMobileCollectionsReport Document Report this document? Please tell us reason(s) for reporting this document Top of Form
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Total Quality Management Tutorial Quality

Management quality management Tutorial Quality Management quality management (fewer) Follow bes_saran Sections show allcollapse prev | next 1. CHAPTER ONE - INTRODUCTION 2. CHAPTER TWO - CONCEPTS AND PHILOSOPHIES OF TQM 3. CHAPTER THREE - THE ACCEPTABILITY OF TQM 4. CHAPTER FOUR - THE ESSENTIALS OF TQM 5. CHAPTER FIVE - THE EFFECTS OF TQM 6. CHAPTER SIX - IMPLEMENTATION OF TQM 7. CHAPTER SEVEN - TQM TOOLS SUMMARY So, the summarization is being done in the following points DEFINITION ORIGINS TQM :- A QUALITY ORIENTED APPROACH CHARACTERISTICS OF TQM: POTENTIAL BENEFITS OF TQM: INTRODUCTION:

TOTAL QUALITY MANAGEMENT(TQM) : TQM Compared to ISO 9001 : TQM as a Foundation : The Ten Steps to TQM are as follows: Principles of TQM : The Principles of TQM are as follows: Processes must be Managed and Improved: Key to Quality: I. Foundation II.Bricks III.BindingMortar IV.Roof THE TQM MODEL: CHAPTER THREE TQM in Service Industry Introduction What is different ? Growth of Service sector Challenge of Service sector Service Quality Dimensions CHAPTER FOUR Customers and suppliers Customers (internal and external) Suppliers (internal and external) Poor practices The essential components of TQM commitment & leadership

Culture change CHAPTER FIVE Step 1. Define the Problem Customer desire: Current status: The Problem was therefore defined: Reduce Average+3 sigma of turnaround for: Step 2. Analysis of the Problem Step 3. Generating Ideas Step 4. Testing the Idea Step 5. Implementing the Ideas Step 6. Check the Result Step 7. Standardize Control/Document the Improvement Story CHAPTER SIX Implementation Principles and Processes Steps in Managing the Transition The Concept of Continuous Improvement by TQM TQM in manufacturing TQM and contingency-based research TQM leadership from top management Continuous improvement Fastresponse Actions based on facts Employee participation A TQM culture Product development in a TQM environment Awards for Quality achievement

CHAPTER SEVEN Total Quality Management (TQM) Tools TQM Tools Pie Charts and Bar Graphs Histograms Run Chart Force Field Analysis Focus Groups Brainstorming and Affinity Diagrams Tree Diagram Flowcharts and Modelling Diagrams Relations Diagram PDCA CONCLUSION Deployment Country : New York USA Overview : Why Become an On Demand Business? Automating provisioning processes using best practices Consistent, cost-effective software deployment Savings to reach several million dollars Key Components Software Server On Demand Business Benefits Quality through standards What is quality? Why is quality important?

Implementing a quality system internal Implementing a quality system external Conclusion of Case Study TEXT REFERENCES DIAGRAMATIC REFERENCES Share & Embed Related Documents PreviousNext

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TotalQualityManagement AProjectReport 1

ACKNOWLEDGEMENT I would like to thank Mrs. Manisha Anand for her s u p p o r t a n d c o - operation in completion of the project report within the stipulated time period. 2

INDEX 1 . C H A P R O I N T R U C T I . C T W O C O N C E P A N D P H I L O S OF C H A P T T H R E E A C C E P I T Y T Q M 4 . C H A P T E F O U R T E S S E N T O F C H A P F I V E T H E E F F E O F T Q M 6 C H A P S I X I M P L T A T I O F T C H A P R S E V E T Q M T O O L CASE STUDY ON IBM (TIVOLI SOFTWARE). 3

T N O O H T O E T R H I T T C . T E O Q E M N M T N S T Q E A S P R T A H H B P

E E D N T

E 2 R

E TQM3 E I O L

S .

E A

L M

S 5 R S R E 7 E N

GLOSSARY 1 . I n i o B u M a orporation2 T Q T o Q u M a m e I S I n o n S t O r t i T P T o P r i v M a a n s Q u C o n C i r B P B u P r R e E n i n T Q T o Q u y C i s 8 A T A u e d T e M a

I t n s c . M t a n n O t a a g o M t o e i c a t c R s o g g l r l i c i 7 C t a r . M t l c o l h m e i e l n a n a d n e i o e t l s n e n . a l c 6 e s e e a i h a l a t r d n 4 l u t 5. QCC y n a i . l i g 3 r l n i n

B a e n

M t s e

s C

t e . a r z t d a

c e

t n

. s s e l i l a r n e s r

t e t

s C C P i C 0 C e A D 1 C I d 2 D C A M Q M e S 4

9 P o r n e . o r i e 1 L n i . P o h c S u a n y

. C n o g n C m d s . . c n P l e t a n t s l a t D a c 1 i g e C n k 3 t e m . y m t c t A p e i r e r D u d g I l g A Q o s e t n N u 1 l s 1

SUMMARY Every nation has its own independent historical and cultural background. The quality sce--nario , therefore, differs from one national setting to the other. The nations areorienting their quality management strategies and systems to meet the requirementsof the opera-ing environment though the primary focus remains the same, that is,Total Customer Sat-isfication .Many of the present techniques of quality management were developed inJapan. However, U.S.A., European nations and developing nations have alsocontributedsignificantly to this development. The studies carried out by researchers in differentnational settings reveal that the concept and philosophies of TQM are notunderstood by the managers and others.An all out effort , therefore is required to promote the understan--ding by launching massive educational and management development programs atalllevels so as to create a cultural consciousness towards quality. TQM is notundimensional approach but is multifaceted in nature.Understanding these facets isessential to promote a successful quality improvement program. An integratedapproach on all vital compon-ents of TQM is required to achieve the desired goal. So, the summarization is being done in the following points.1. TQM has been accepted by both service and manufacturing organizations,globallyas asystematic management approach to meet the competitive challenges.5

2. TQM redefines the quality with emphasis on top management c o m m i t m e n t a n d custo--mer satisfaction. 3. T h e b e n e f i t s o f T Q M a r e n u m e r o u s a n d a r e i n c r e a s i n g l y r e a l i z e d b y organizations. 4. TQM provides a linkage between productivity and quality. 5. The application of TQM tools increases a companys efficiency. 6. The focus of TQM is on: (a) Involvement of everyone in organization in continuous improvement. (b) Commitment to satisfy customers. (c) Participation through teamwork. (d) Commitment and Leadership of top management. CHAPTER ONEINTRODUCTION DEFINITION As defined by ISO:"TQM is a management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term successthrough customer satisfaction, and benefits to all members of theorganization and to society."In Japanese, TQM comprises four process steps, namely:1. Kaizen Focuses on Continuous Process Improvement, to make processes visible, repeatable and measureable.6

2. Atarimae Hinshitsu Focuses on intangible effects on processes andways to optimize and reduce their effects.3. Kansei Examining the way the user applies the product leads toimprovement in the product itself.4.Miryokuteki Hinshitsu Broadens management concern beyond theimmediate product.TQM requires that the company maintain this quality standard in all aspectsof its business. This requires ensuring that things are done right the first timeand that defects and waste are eliminated from operations.Total Quality Management (TQM) is a management strategy aimed atembedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, government, and serviceindustries, as well as NASA space and science programs. ORIGINS Although W. Edwards Deming is largely credited w i t h i g n i t i n g t h e q u a l i t y revolution in Japan starting in 1946 and trying to bring it to the United States inthe 1980s, Armand V. Feigenbaum was developing a similar set of principles atG e n e r a l E l e c t r i c i n t h e United States at around the same time. "Total QualityC o n t r o l " was the key concept of F e i g e n b a u m ' s 1 9 5 1 b o o k , Q u a l i t y C o n t r o l : Principles, Practice, and Administration, a book that was subsequently releasedin 1961 under the title, Total Quality Control (ISBN 0070203539). Joseph Juran,Philip B. Crosby, and Kaoru Ishikawa also contributed to the body of knowledgenow known as TQM.The American Society for Quality says that the term Total Quality Managementw a s f i r s t u s e d b y t h e U . S . N a v a l Air Systems Command "to describe i t s Japanese-style management approach to quality improvement."[1] This isc o n s i s t e n t with the story that the United States Department of the N a v y Personnel Research and Development C e n t e r b e g a n r e s e a r c h i n g t h e u s e o f statistical process control (SPC); the work of Juran, Crosby, and Ishikawa; andt h e p h i l o s o p h y of Deming to make performance improvements in 1984. T h i s approach was first tested at the North Island Naval Aviation Depot.7

In his paper, "The Making of TQM: History and Margins of the H i ( g h ) - S t o r y " from 1994, Xu claims that "Total Quality Control" is translated incorrectly fromJ a p a n e s e since there is no difference between the words "control" a n d "management" in Japanese. William Golimski refers to Koji Kobayashi, former CEO of NEC, being the first to use TQM, which he did during a speech when hegot the Deming prize in 1974. TQM :- A QUALITY ORIENTED APPROACH Total Quality Management (TQM) is one of quality-oriented approaches thatmany organisations adopt. It is generally a c k n o w l e d g e d t h a t m a n u f a c t u r i n g companies need to be quality oriented in conducting their business to survive the b u s i n e s s w o r l d . TQM is an integrated management philosophy and a s e t o f practices that emphasise top management commitment, customer focus, supplier r e l a t i o n s h i p , benchmarking, quality-oriented t r a i n i n g , e m p l o y e e f o c u s , z e r o - defects, process improvement, and quality measurement. This paper investigatesthe structural linkages between TQM, product quality performance and business p e r f o r m a n c e i n t h e e l e c t r o n i c s i n d u s t r y i n M a l a y s i a . G i v e n t h e n a t u r e o f t h i s study, the statistical analysis technique called Structural Equation Modelling wasu s e d . T h i s p r e l i m i n a r y r e s u l t s u g g e s t s t h a t t h e r e is insufficient s t a t i s t i c a l evidence to conclude s i g n i f i c a n t s i m p l e r e l a t i o n s h i p s b e t w e e n T Q M , p r o d u c t quality performance, and business performance. This implies that the electronicsi n d u s t r y cannot assume direct causal linkages between these three constructs,which might also suggest that there is a more complex relationship betweenTQM, product quality performance, and business performance. However, t h e results reveal that top management commitment, supplier relations and trainingin particular appear to be of primary importance for TQM practices in Malaysianelectronics companies.8

 CHARACTERISTICS OF TQM: The characteristics of TQM, as revealed from above definition are as follows: 1. TQM is customer oriented. 2. TQM requires a long term commitment for continuous i m p r o v e m e n t o f a l l processes. 3. Th e success of TQM demands the leadership o f t o p m a n a g e m e n t a n d . d u c t so as to satisfy the customer. However, the customer longs for different satisfaction perspectives which are generally overlooked in thetraditional approach.The needs change from person to person a n d a l s o f r o m place to place. As TQM focuses on the concept of university, it tries to abstractt h e s a t i s f a c t i o n p e r c e p t i o n s o f t h e m a r k e t a n d t h u s h e l p s t h e o r g a n i s a t i o n t o identify and meet the requirements of the market in a better way. 2. TQM facilitates to aspire for a top quality p e r f o r m e r i n e v e r y s p h e r e o f activity.I t i s a w e l l a c c e p t e d fact that the negative attitudes of employees and n o n - participative culture of the organization pose the greatest hurdle to organisationss u c c e s s , g r o w t h a n d p r o s p e r i t y . T Q M e m p h a s i s , o n bringing about attitudinala n d cultural change through promotion of participative work culture andeffective team-work. This serves to satisfy the higher human needs o f recognition and self-development and enhances employees interest in the job.The employees performance, t h u s , i s n o t r e s t r i c t e d t o t h e p r o d u c t o r s e r v i c e areas but reflects in other spheres as well. 3. It channelises the procedures necessary to achieve quality performance.Quality in its true sense can not be achieved instantly. It requires a systematica n d a l o n g - t e r m p l a n n i n g a n d s t r a t e g i c a p p r o a c h . B y f o c u s i n g o n d e f i n i n g t h e quality policies, goals and objectives, and communicating these properly to onea n d a l l i n t h e organization, adopting SQC and SPC techniques and d e v e l o p i n g and using a system of evaluation , the organization can channelize their efforts toachieve the desired and objectivated quality performance. 4.

It helps examine critically and continuously all processes to r e m o v e n o n - productive activities and waste.The organizations always aim at improving productivity as it leads to reductioni n c o s t r e s u l t i n g i n i n c r e a s e i n p r o f i t a b i l i t y . T h e e f f o r t s i n t h i s d i r e c t i o n a r e 10

contributed because of the formation of quality improvement t e a m s w h i c h meet regularly and through a systematic approach which tries to remove non- p r o d u c t i v e a c t i v i t y . A c o n t i n u o u s e f f o r t t o identify the problems and resolvet h e m h e l p s t o r e d u c e the waste. The culture of well being thus i m p r o v e s housekeeping, cost-effectiveness and safety. 5. It gears organizations to fully understand the competition and develop a n effective combating strategy.T h e dynamic changes in the global market and the open market policiesa d o p t e d by a large number of organizations has resulted in i n c r e a s e d competition and for many organizations the s u r v i v a l h a s b e c o m e a k e y i s s u e . For this cause it is essential for the organistions to understand the competitiona n d d e v e l o p a n d a d o p t suitable strategies to meet the challenges. As T Q M helps to understand the pulse of customer and thus the market, it gives an edgeto the organizations of variable nature to meet the competition. 6. It helps to develop good procedures for communication and acknowledginggood work.Improper procedures and inadequate communication are yet another bane of m a n y o r g a n i z a t i o n s , which result in misunderstanding, confusion, l o w productivity, duplication of efforts, poor quality, low morale and so on. TQM b r i n g s together members of various related sections, departments a n d different levels of management thereby providing an effective vehicle o f communication and interaction. 7. It helps to review the process needed to develop the strategy of never endingimprovement. Quality improvement efforts cannot be restricted to any time p e r i o d . T h e y n e e d t o b e c o n t i n u o u s t o m e e t t h e d y n a m i c challenges. TQMemphasizes on a continuous and periodic r e v i e w s o a s t o m a k e t h e r e q u i r e d changes.T h e b e n e f i t s d e r i v e d b y t h e o r g a n i z a t i o n s , t h e r e f o r e , a r e m a n y a n d m u l t i - faceted. Many of these can be measured in quantitative terms. However, theintangible benefits, which includes enrichment of the quality of the worklifea n d m a n y m o r e a r e n o t q u a n t i f i a b l e . A t t h e s a m e t i m e , i t h a s t o b e established whether they do occur or not in order to prove or disapprove thee f f i c a c y o f t h e c o n c e p t . T h i s c a n b e a s s e s s e d b y a w e l l - p l a n n e d r e s e a r c h 11

project or by carrying out an opinion survey periodically. The t a n g i b l e a n d intangible benefits of TQM are variable in nature. CHAPTER TWOCONCEPTS AND PHILOSOPHIES OF TQM INTRODUCTION: Total Quality Management (TQM), a buzzword phrase of the 1980's, has been killedand resurrected on a number of occasions. The concept and principles, thoughsimple seem to be creeping back into existence by "bits and pieces" through theevolution of the ISO9001 Management Quality System standard.Companies who have implemented TQM include Ford Motor Company, PhillipsSemiconductor, SGL Carbon, Motorola and Toyota Motor Company.The latest changes coming up for the ISO 9001:2000 standards "Process Model"seem to complete the embodiment. TQM is the concept that quality can be managedand that it is a process. The following information is provided to give anunderstanding of the key elements of this process.12

 TOTAL QUALITY MANAGEMENT(TQM) :Total = Quality involves everyone and all activities in the company. Quality = Conformance to Requirements (Meeting Customer Requirements). Management = Quality can and must be managed. TQM = A process for managing quality; it must be a continuous way of life; a philosophy of perpetual improvement in everything we do. TQM Compared to ISO 9001 : ISO 9000 is a Quality System Management S t a n d a r d . T Q M i s a p h i l o s o p h y o f perpetual improvement. The ISO Quality Standard sets in place a system to deploy p o l i c y a n d verifiable objectives. An ISO implementation is a basis for a TotalQuality Management implementation. Where there is an ISO system, about 75 percent of the steps are in place for TQM. The requirements for TQM can bec o n s i d e r e d I S O plus. Another aspect relating to the ISO S t a n d a r d i s t h a t t h e proposed changes for the next revision (1999) will contain customer satisfaction andm e a s u r e m e n t requirements. In short, implementing TQM is b e i n g p r o a c t i v e concerning quality rather than reactive. TQM as a Foundation :TQM is the foundation for activities which include; Meeting Customer Requirements Reducing Development Cycle Times Just In Time/Demand Flow Manufacturing Improvement Teams Reducing Product and Service Costs Improving Administrative Systems Training

Ten Steps to Total Quality Management (TQM): 13

The Ten Steps to TQM are as follows: 1.Pursue New Strategic Thinking2 . K n o w y o u r C u s t o m e r s 3.Set True Customer Requirements4.Concentrate on Prevention, Not Correction5 . R e d u c e Chronic W a s t e 6.Pursue a Continuous Improvement S t r a t e g y 7.Use Structured Methodology for Process Improvement8 . R e d u c e V a r i a t i o n 9 . U s e a B a l a n c e d A p p r o a c h 10.Apply to All Functions Principles of TQM :The Principles of TQM are as follows: 1.Quality can and must be managed.2.Everyone has a customer and is a supplier.3.Processes, not p e o p l e a r e t h e p r o b l e m . 4.Every employee is responsible for quality.5 . P r o b l e m s m u s t b e p r e v e n t e d , n o t j u s t fixed.6 . Q u a l i t y must be m e a s u r e d . 7.Quality improvements must be continuous.8.The quality standard is defect free.9.Goals are based on r e q u i r e m e n t s , n o t n e g o t i a t e d . 10.Life cycle costs, not front end costs.11.Management must be involved and lead. 12.Management Commitment1 . P l a n (drive, d i r e c t ) 2.Do (deploy, support, participate)3 . C h e c k ( r e v i e w ) 4.Act (recognize, communicate, r e v i s e ) 13.Employee Empowerment1 . T r a i n i n g 2 . S u g g e s t i o n s c h e m e 3.Measurement and recognition 4 . E x c e l l e n c e t e a m s 14

14.Fact Based Decision Making1 . S P C ( s t a t i s t i c a l p r o c e s s control)2 . D O E , F M E A 3.Th e 7 statistical t o o l s 4.TOPS (FORD 8D Team Oriented Problem Solving)15.Continuous Improvement1 . S y s t e m a t i c measurement and focus on CONQ2 . E x c e l l e n c e t e a m s 3.Cross-functional process management4.Attain, maintain, improve standards16.Customer Focus1 . S u p p l i e r p a r t n e r s h i p 2.Service relationship with internal customers3 . N e v e r compromise quality 4.Customer driven standards Plan and organize for quality improvement. Processes must be Managed and Improved: Processes must be managed and improved! This involves: Defining the process Measuring process performance (metrics) Reviewing process performance Identifying process shortcomings Analyzing process problems Making a process change Measuring the effects of the process changeCommunicating both ways between supervisor and user 15

 Key to Quality: The key to improving quality is to improve processes that define, produce andsupport our products.All people work in processes.People Get processes "in control" Work with other employees and managers to identify process problems andeliminate themManagers and/or Supervisors Work on Processes Provide training and tool resources Measure and review process performance (metrics) Improve process performance with the help of those who use the process Planning a Change: 16

 TQM PROBLEM SOLVING SEQUENCE: 17

TQM Process Improvement and Problem Solving Sequence PLAN (PLAN A CHANGE) DO (IMPLEMENT THECHANGE) CHECK (OBSERVE THEEFFECTS) ACTION (EMBED THEFIX INTOTHE PROCESSFOR GOOD) DEFINETHEPROBLEMIDENTIFYPOSSIBLECAUSESEVALUATEPOSSIBLECAUSESMAKEACHANGETES TTHECHANGETAKEPERMANENTACTION 1. Recognizethat what youare doing is a"PROCESS" 2. Identify thecommodity being processed.- ProcessInference3. Define somemeasurablecharacteristicsof value to thecommodity.4. Describe the"PROCESS"o Process FlowAnalysis'so Flow chartso List of steps5. Identify the"Big" problemoBrainstormingo Checklistso Paretoanalysis6."BRAINSTORM"what is causingthe problem.7. Determine what past data shows.o Frequencydistributiono Pareto chartso Control charts sampling8. Determine therelationship between causeand effecto Scatter diagramso Regressionanalysis 9. Determinewhat the process is doingnowo Control charts- sampling 10. Determine whatchange would help Your knowledgeof the process Scatter diagrams ControlCharts sampling Paretoanalysis****Then makethe change.

11. Determine whatchange worked(confirmation). Histograms Control charts sampling Scatter diagrams 12. Ensure the f i x is thatt h e r e used.C o n t i n t o m o n i t o ensure:A. The problem isf B. The process isgood enough o Control charts sampling ****To ensurecontinuousimprovement,returnto step 5. THE EIGHT ELEMENTS OF TQM: 18 embedded s u l t u e r i x e d f in the p r o c e s s i n g process t h e process o r g o o d . and and is to

Total Quality Management is a management approach that originated in the 1950'sand has steadily become more popular since the early 1980's. Total Quality is adescription of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culturerequires quality in all aspects o f t h e c o m p a n y ' s o p e r a t i o n s , w i t h p r o c e s s e s b e i n g done right the first time and defects and waste eradicated from operations.To be successful implementing TQM, an organization must concentrate on the eightkey elements: 1 . E t h i c s 2 . I n t e g r i t y 3 . T r u s t 4 . T r a i n i n g 5 . T e a m w o r k 6 . L e a d e r s h i p 7 . R e c o g n i t i o n 8 . C o m m u n i c a t i o n This paper is meant to describe the eight elements comprising TQM. Key Elements TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQMrequires the help of those eight key elements. These elements can be divided intofour groups according to their function. The groups are:I. Foundation - It includes: Ethics, Integrity and Trust.II. Building Bricks - It includes: Training, Teamwork and Leadership.III. Binding Mortar - It includes: Communication.IV. Roof - It includes: Recognition. I. Foundation TQM is built on a foundation of ethics, integrity and trust. It fosters openness,fairness and sincerity and allows involvement by everyone. This is the key tounlocking the ultimate potential of TQM. These three elements move together,however, each element offers something different to the TQM concept.1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It isa t w o - f a c e t e d s u b j e c t r e p r e s e n t e d by organizational and individual e t h i c s . Organizational ethics establish a business code of ethics that outlines guidelines thata l l e m p l o y e e s a r e t o a d h e r e t o i n t h e p e r f o r m a n c e o f t h e i r w o r k . I n d i v i d u a l e t h i c s include personal rights or wrongs.2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to thefacts and sincerity. The characteristic is what customers (internal or external) expect19

and deserve to receive. People see the opposite of integrity a s d u p l i c i t y . T Q M w i l l not work in an atmosphere of duplicity.3 . T r u s t Trust is a by-product of integrity and ethical conduct. Without t r u s t , t h e framework of TQM cannot be built. Trust fosters full participation of all members. Ita l l o w s e m p o w e r m e n t t h a t e n c o u r a g e s p r i d e o w n e r s h i p a n d i t e n c o u r a g e s commitment. It allows decision making at appropriate levels in the organization,fosters individual risktaking for continuous improvement and helps to ensure t h a t measurements focus on improvement of process and are not used to contend people.T r u s t is essential to ensure customer s a t i s f a c t i o n . S o , t r u s t b u i l d s t h e c o o p e r a t i v e environment essential for TQM. II.Bricks Basing on the strong foundation of trust, ethics and integrity, b r i c k s a r e p l a c e d t o reach the roof of recognition. It includes:4 . Training - Training is very important for employees to be h i g h l y p r o d u c t i v e . Supervisors are solely responsible for implementing TQM within their departments,a n d t e a c h i n g t h e i r e m p l o y e e s t h e p h i l o s o p h i e s o f T Q M . T r a i n i n g t h a t e m p l o y e e s require are interpersonal skills, the ability to function within teams, problem solving,decision making, job management performance analysis and improvement, businesse c o n o m i c s a n d t e c h n i c a l s k i l l s . During the creation and formation of T Q M , employees are trained so that they can become effective employees for the company.5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutionst o p r o b l e m s . T e a m s a l s o p r o v i d e more permanent improvements in processes andoperations. In teams, people feel more comfortable bringing up problems that mayoccur, and can get help from other workers to find a s o l u t i o n a n d p u t i n t o p l a c e . There are mainly three types of teams that TQM organizations adopt:A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporaryteams with the purpose of dealing with specific problems that often re-occur. Theseteams are set up for period of three to twelve months.B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally lastfrom one week to three months.C. Natural Work Teams (NWTs) - These teams consist of small groups of skilledworkers who share tasks and responsibilities. These teams use concepts such asemployee involvement teams, self-managing teams and quality circles. These teamsgenerally work for one to two hours a week.20

6. Leadership - It is possibly the most important element in TQM. It a p p e a r s everywhere in organization. Leadership in TQM requires the manager to provide ani n s p i r i n g v i s i o n , make strategic directions that are understood by all and to instillv a l u e s t h a t g u i d e s u b o r d i n a t e s . F o r T Q M t o b e successful in the business, thes u p e r v i s o r must be committed in leading his employees. A s u p e r v i s o r m u s t understand TQM, believe in it and then demonstrate their belief and commitmentthrough their daily practices of TQM. The supervisor makes sure that s t r a t e g i e s , philosophies, values and goals are transmitted down through out the organization to p r o v i d e f o c u s , c l a r i t y a n d d i r e c t i o n . A k e y point is that TQM has to be introducedand led by top management. Commitment and personal involvement is requiredf r o m top management in creating and d e p l o y i n g c l e a r q u a l i t y v a l u e s a n d g o a l s consistent with the objectives of the company and in creating and d e p l o y i n g w e l l defined systems, methods and performance measures for achieving those goals. III.BindingMortar 7. Communication - It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as av i t a l link between all elements of TQM. Communication means a c o m m o n understanding of ideas between the sender and the receiver. The success of TQMdemands communication with a n d a m o n g a l l t h e o r g a n i z a t i o n m e m b e r s , s u p p l i e r s and customers. Supervisors must keep open airways where employees can send andr e c e i v e information about the TQM process. Communication coupled with thesharing of correct information is vital. For communication to be c r e d i b l e t h e message must be clear and receiver must interpret in the way the sender intended.There are different ways of communication such as:A. Downward communication - This is the dominant form of communication in anorganization. Presentations and discussions basically do it. By this the supervisorsare able to make the employees clear about TQM.B. Upward communication - By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively tocorrect the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empoweringcommunication, where supervisors keep open ears and listen to others.C. Sideways communication - This type of communication is important because it breaks down barriers between

departments. It also allows dealing with customersand suppliers in a more professional manner. IV.Roof 8. Recognition - Recognition is the last and final element in the entire system. Its h o u l d be provided for both suggestions and achievements for teams as well a s individuals. Employees strive to receive recognition for themselves and their teams.Detecting and recognizing contributors is the most important job of a supervisor. As p e o p l e a r e r e c o g n i z e d , t h e r e c a n b e h u g e c h a n g e s i n s e l f - e s t e e m , p r o d u c t i v i t y , 21

quality and the amount of effort exhorted to the task at hand. Recognition comes ini t s best form when it is immediately f o l l o w i n g a n a c t i o n t h a t a n e m p l o y e e h a s performed. Recognition comes in different ways, places and time such as,Ways - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc. Places - Good performers can be recognized in f r o n t o f d e p a r t m e n t s , o n performance boards and also in front of top management. Time - Recognition can given at any time like in staff m e e t i n g , a n n u a l a w a r d banquets, etc.We can conclude that these eight elements are key in ensuring the success of TQMi n an organization and that the supervisor is a h u g e p a r t i n d e v e l o p i n g t h e s e elements in the work place. Without these elements, the business entities cannot besuccessful TQM implementers. It is very clear from the above discussion that TQMwithout involving integrity, ethics and trust would be a great remiss, in fact it would b e i n c o m p l e t e . T r a i n i n g i s t h e k e y b y w h i c h t h e o r g a n i z a t i o n c r e a t e s a T Q M environment. Leadership and teamwork go hand in hand. Lack of communication b e t w e e n d e p a r t m e n t s , s u p e r v i s o r s a n d e m p l o y e e s c r e a t e a b u r d e n o n t h e w h o l e TQM process. Last but not the least, recognition should be given to people w h o contributed to the overall completed task. Hence, lead by example, train employeest o provide a quality product, create an environment where there is no fear to shareknowledge, and give credit where credit is due is the motto of a successful T Q M organization THE TQM MODEL: At the century close, the creation of the global market, i n t e r n a t i o n a l o r i e n t a t i o n o f management that sweeps national boundaries, introduction of new technologies, andshift towards customer focused strategies, make the competition stronger than ever.T h e c r i t e r i a for success in this global, internationally oriented market h a v e b e e n changing rapidly. In order to expand business, enter new markets, and set realistic,competitive long-term objectives, excellence became an imperative. Management'seffort has been directed towards discovering what makes a company excellent.T o achieve excellence, companies must develop a corporate c u l t u r e o f t r e a t i n g people as their most important asset and provide a consistent level of high quality products and services in every market in which they operate. Such an

environmenthas supported the wide Q u a l i t y M a n a g e m e n t ( T Q M ) w h i c h 22

acceptance

of

Total

emerged recently as a new, challenging, marketable p h i l o s o p h y . I t i n v o l v e s t h r e e spheres of changes in an organization -people, technology and structure.There is also a need for a systematic approach so that each element of TQMEX can be bonded together smoothly. Oakland [1989] originated the idea of a 3-cornerstonemodel. The proposed 4-pillar model (Figure 3.1) brings the customer's requirementi n t o t h e system. This makes the approach to TQM more complete. The additional pillar -- satisfying customers -- is vital because it e x p l i c i t l y a d d r e s s e s c u s t o m e r s requirements. Without it TQM would have no objective.The Four Pillars of TQMT h e r o l e o f t o p m a n a g e m e n t i n i m p l e m e n t a t i o n o f t o t a l q u a l i t y i s c r u c i a l a n d i t s input on people far-reaching. TQM, therefore, should be understood as managementof the system through systems thinking, which means understanding all the elementsi n t h e c o m p a n y a n d p u t t i n g t h e m t o w o r k t o g e t h e r towards the common goal. TheTQMEX Model advocates an integrated approach in order to support the transitionto systems management which is an ongoing process of continuous improvementthat begins when the company commits itself to managing by quality. The Modelilluminates the elements that form a base to the understanding of TQM p h i l o s o p h y and implementation of the process company-wide. The Structure of TQMEX: 23

 The Logic of TQMEX: In order to have a systematic approach to TQM, it is necessary to develop a conceptual model. Generally, a model is a sequence of steps arranged l o g i c a l l y t o serve as a guideline for implementation of a process in order to achieve the ultimategoal. The model should be simple, logical and yet comprehensive enough for TQMi m p l e m e n t a t i o n . I t a l s o h a s t o sustain the changes in business environment of thenew era. The Model also reflects teachings of the contemporary quality gurus. Theidea was to develop a universally applicable stepb y - s t e p g u i d e l i n e b y i n c l u d i n g recognized practices in TQM: Japanese 5-S Practice (5-S) Business Process Re-engineering (BPR) Quality Control Circles (QCCs) ISO 9001/2 Quality Management System (ISO) Total Productive Maintenance (TPM)A s O s a d a p o i n t e d o u t , 5 - S is the key to total quality environment. Therefore, itshould be the first step. BPR is concerned with r e - d e f i n i n g a n d d e s i g n i n g y o u r business process in order to meet the needs of your customers effectively. It is morec o n c e r n e d w i t h the business objectives and systems, and should follow as Step 2.QCCs are concerned with encouraging the employees t o p a r t i c i p a t e i n c o n t i n u o u s improvement and guide them through. They improve human resources capability toa c h i e v e t h e b u s i n e s s objectives. Therefore, this should be Step 3. ISO 9000 is todevelop a quality management system based on the good practices in the previousthree steps. TPM is a result of a p p l y i n g 5 - S t o e q u i p m e n t b a s e d o n a s o u n d q u a l i t y 24

management system. In fact ISO 9001 requires procedures for p r o c e s s c o n t r o l a n d inspection and testing equipment which are part of TPM. Therefore TPM should beimplemented in Step 5.I f t h e a b o v e f i v e steps have been implemented successfully, the organization i s already very close towards achieving TQM.TQMEX is a sequential model which is easy to remember and simple to implement.T h i s i s i n l i n e with the quality principle of Keep It Short and S i m p l e ( K I S S ) , although it is not simple to make a model simple! Companies starting to implement TQM should follow T Q M E X s t e p - b y - s t e p . Companies which have already gone t h r o u g h s o m e d e g r e e o f i m p r o v e m e n t u s i n g some of the steps should review what have not been done and do it as their next stepof improvement. In order to maximize your benefits from TQMEX, you have to startearly too. CHAPTER THREE THE ACCEPTABILITY OF TQM JAPANESE TQM MODEL: At first, few but the Japanese took Deming seriously. Known for his legendarya t t a c k s on executives and compassion for the worker, t h e J a p a n e s e s e n s e o f responsibility to one's superiors and subordinates made it easier to accept Deming'sm e s s a g e that management's role was to provide the optimal c o n d i t i o n s f o r t h e workers to do the best job.The Japanese then extended Deming's teaching to many dimensions of management.Here are TQM models from the Japanese Society of Quality and the Japan StandardsAssociation that show how extensive their definition of TQM is.T h e Japanese identify three major dimensions of TQM: Daily M a n a g e m e n t , Hoshin/Policy Management, and Cross Function Management. We will study thesein detail in the course. They can be visualized with the following picture.25

 TQM IN USA: As regards quality, USA is at crossroads t o d a y . I n s p i t e o f t h e f a c t t h a t U S A developed the techniques and concepts of SQC and TQC and the japenese importedt h e s e techniques, the further orientation and development in p h i l o s h o p h y , c o n c e p t and techniques in terms of Q.C. circles and company wide quality control took placei n J a p a n m o r e r a p i d l y a n d successfully. While the American companies remainedc o n c e r n e d a b o u t d e t e c t i n g a n d s e g r e g a t i n g defective parts from good ones, t h e Japanese companies devised systems to reduce defects and produce good quality products.This resulted in America losing its p o s i t i o n o f d o m i n a n c e n o t o n l y i n t h e American market but also in the world.M u c h o f t h e q u a l i t y m o v e m e n t i n U S A i s based on tools and techniquesdeveloped by the japenese. Adoption of these techniques requires c o m p l e t e r e - development in both methods and emphasis.The most critical challenge facing U.Sq u a l i t y movement is the development and implementation of quality focusedc o r p o r a t e management systems that a c h i e v e t h e c o h e r e n c e , i n t e g r a t i o n a n d 26

comprehensiveness of quality management in japan. The A m e r i c a n c o m p a n i e s a r e characterized by: 1. A high concentration of industry on relatively few companies. 2. Stress on promoting share-holders, and 3. Running the company by professional managers.T h e s e f e a t u r e s o f autonomous organisations and professional management have ac o n s i d e r a b l e impact on the conduct of quality function. Each o r g a n i s a t i o n determines independently what it will produce and what quality policies it w i l l adopt.Marguardt divides the evolution of quality movement in USA in three periods: 1. Advocates for SQC- Emphasis on technical tools of control charts, lot inspectionand sampling schemes. 2. Administrators for system of quality control- Emphasis on the cost of quality andmanagerial aspects of organizing the quality. 3. Advertising and selling quality consciousness-Emphasis on changingorganizational culture and providing an environment that will enable people toactivate and sustain in their own work and in products and services produced by theorganistions with the focus on needs of customers. TQM in Service Industry TQM in Service IndustryIntroduction Todays customer has before him the possibility of a wider choice of products &Services than ever before .He is going to be demanding & keen on having the bestservices in the shortest possible time & at the minimum cost .He will look for solutions that are more specific to his needs thus creating opportunity of many nichemarket.-Today customers avail ATM services 24 hrs-Book airline tickets & check-in over phone-Self-service at fast food restaurant.-And many more27

What is different ? -Service is also a product of different kind .-No time delay between the production & delivery of service-A defective product can be replaced but a defective service may create a permanentdamage. Growth of Service sector Service sector is growing rapidly due to-Change in environment , life style etc-Demand for new kind of services-Advent of new technologies-Fast development of information technology & computerisation-Lean manufacturing . (contracting out most activities) Challenge of Service sector Delight customers-In a dynamic environment which is changing fast-In growing competitive market-With relatively shorter product life cycleRequiring more customisation Service Quality Dimensions Quality of Services differs from manufactured products-Special characteristics including intangibility.-Simultaneity ( promptness )Heterogeneity-Unique dimensions of some services (e.g. Banking) CHAPTER FOUR THE ESSENTIALS OF TQM Introduction TQM is the way of managing for the future, and is far wider in its application than j u s t assuring product or service quality it is a way of managing people and b u s i n e s s processes to ensure complete c u s t o m e r s a t i s f a c t i o n a t e v e r y s t a g e , 28

internally and externally. TQM, combined with effective l e a d e r s h i p , r e s u l t s i n a n organization doing the right things right, first time . The core of TQM is the customer-supplier interfaces, both externally and internally,a n d a t e a c h i n t e r f a c e l i e a number of processes . This core must be surrounded by commitment to quality, communication of the quality message, and recognition of the need to change the culture of the organisation to create total quality. These aret h e f o u n d a t i o n s o f TQM, and they are supported by the key management f u n c t i o n s of people , processes and systems in the organisation . This section discusses each of these elements that, together, can make a total qualityorganisation. Other sections explain people, processes and systems in greater detail,all having the essential themes of commitment, culture and communication runningthrough them. What is quality? 29

A frequently used definition of quality is Delighting the customer by fully meeting t h e i r needs and expectations . Th ese may include performance, a p p e a r a n c e , availability, delivery, reliability, maintainability,cost effectiveness and price. It is,therefore, imperative that the organisation knows what these needs and expectationsare. In addition, having identified them, the organisation must understand them, andmeasure its own ability to meet them.Q u a l i t y s t a r t s w i t h m a r k e t r e s e a r c h t o e s t a b l i s h t h e t r u e r e q u i r e m e n t s f o r t h e product or service and the true needs of the customers. However, for an organisationto be really effective, quality must span all functions, all people, all departments anda l l a c t i v i t i e s a n d b e a c o m m o n l a n g u a g e for improvement. The cooperation o f everyone at every interface is necessary to achieve a total quality o r g a n i z a t i o n , i n the same way that the Japanese achieve this with company wide quality control. Customers and suppliers There exists in each department, each office, each h o m e , a s e r i e s o f c u s t o m e r s , suppliers and customer supplier interfaces. These are the quality chains, and theycan be broken at any point by one person or one piece of equipment not meeting therequirements of the customer, internal or external. The failure usually finds its wayt o t h e interface between the organization and its external customer, o r i n t h e w o r s t case, actually to the external customer.F a i l u r e t o meet the requirements in any part of a quality chain has a way o f multiplying, and failure in one part of the system creates problems e l s e w h e r e , leading to yet more failure and problems, and so t h e s i t u a t i o n i s e x a c e r b a t e d . T h e ability to meet customers (external and internal) requirements is vital. To achievequality throughout an organization, every person in the quality chain must be trainedto ask the following questions about every customer-supplier interface: Customers (internal and external) Who are my customers? What are their true needs and expectations?30

 How do, or can, I find out what these are? How can I measure my ability to meet their needs and expectations? Do I have the capability to meet their needs and expectations?(If not, what must I do to improve this capability?) Do I continually meet their needs and expectations?(If not, what prevents this from happening when the capability exists?) How do I monitor changes in their needs and expectations? Suppliers (internal and external) Who are my internal suppliers? What are my true needs and expectations? How do I communicate my needs and expectations to my suppliers? D o m y s u p p l i e r s h a v e t h e c a p a b i l i t y to measure and meet these needs a n d expectations? How do I inform them of changes in my needs and expectations?A s w e l l a s b e i n g f u l l y a w a r e o f c u s t o m e r s n e e d s a n d e x p e c t a t i o n s , e a c h p e r s o n must respect the needs and expectations of their suppliers. The ideal situation is anopen partnership style relationship, where both parties share and benefit. Poor practices To be able to become a total quality organization, some of the bad practices must berecognized and corrected. These may include: Leaders not giving clear direction Not understanding, or ignoring competitive positioning31

 Each department working only for itself Trying to control people through systems Confusing quality with grade Accepting that a level of defects or errors is inevitable Firefighting, reactive behaviour The Its not my problem attitudeHow many of these behaviours do you recognize in your organization? The essential components of TQM commitment & leadership TQM is an approach to improving the competitiveness, effectiveness and flexibilityo f a n organization for the benefit of all s t a k e h o l d e r s . I t i s a w a y o f p l a n n i n g , organizing and understanding each activity, and of removing all the wasted effortand energy that is routinely spent in organizations. It ensures the leaders adopt astrategic overview of quality and focus on prevention not detection of problems.Whilst it must involve everyone, to be successful, it must start at the top w i t h t h e leaders of the organization.All senior managers must demonstrate their seriousness and commitment to quality,and middle managers must, as well as demonstrating their commitment, ensure theyc o m m u n i c a t e t h e principles, strategies and benefits to the people for whom theyh a v e r e s p o n s i b i l i t y . O n l y t h e n w i l l t h e r i g h t attitudes spread throughout t h e organization.A fundamental requirement is a sound quality policy, s u p p o r t e d b y p l a n s a n d facilities to implement it.32

Leaders must take responsibility for preparing, reviewing and monitoring the policy, plus take part in regular improvements of it and ensure it is understood at all levelsof the organization.Effective leadership starts with the development of a mission statement, followed bya s t r a t e g y , w h i c h i s translated into action plans down through the o r g a n i z a t i o n . These, combined with a TQM approach, should result in a quality organization, withs a t i s f i e d customers and good business results. The 5 requirements for e f f e c t i v e leadership are: D e v e l o p i n g a n d p u b l i s h i n g c o r p o r a t e b e l i e f s , v a l u e s a n d o b j e c t i v e s , o f t e n a s a mission statement Personal involvement and acting as role models for a culture of total quality Developing clear and effective strategies and supporting p l a n s f o r a c h i e v i n g t h e mission andobjectives Reviewing and improving the management system Communicating, motivating and supporting people and encouraging e f f e c t i v e employee participationT h e t a s k o f i m p l e m e n t i n g T Q M c a n b e d a u n t i n g . T h e f o l l o w i n g i s a l i s t o f p o i n t s that leaders should consider; they are a distillation of the various beliefs of some of the quality gurus: The organisation needs a long-term commitment to continuous improvement. Adopt the philosophy of zero errors/defects to change the culture to right first time Train people to understand the customer/supplier relationships Do not buy products or services on price alone look at the total cost Recognise that improvement of the systems must be managed33

 Adopt modern methods of supervising and training eliminate fear Eliminate barriers between departments by managing the process improve communications and teamwork Eliminate goals without methods, standards based only on n u m b e r s , b a r r i e r s t o pride of workmanship and fiction get facts by studying processes Constantly educate and retrain develop experts in the organisation Develop a systematic approach to manage the implementation of TQM Culture change The failure to address the culture of an organisation is frequently the reason for many management initiatives either having limited success or failing altogether.U n d e r s t a n d i n g the culture of an organisation, and using that knowledge tosuccessfully map the steps needed to a c c o m p l i s h a s u c c e s s f u l c h a n g e , i s a n important part of the quality journey.T h e c u l t u r e i n a n y o r g a n i s a t i o n i s formed by the beliefs, behaviours, norms,dominant values, rules and the climate. A culture change, e . g , f r o m o n e o f acceptance of a certain level of errors or d e f e c t s t o o n e o f r i g h t f i r s t t i m e , e v e r y time, needs two key elements: Commitment from the leaders Involvement of all of the organisations peopleThere is widespread recognition that major change initiatives will not be successfulwithout a culture of good teamwork and cooperation at all levels in an organisation,as discussed in the section on People.34

 The building blocks of TQM: processes, people, management systems andperformance measurement Everything we do is a Process, which is the transformation of a set of inputs, whichc a n i n c l u d e a c t i o n , m e t h o d s a n d o p e r a t i o n s , i n t o t h e desired outputs, which s a t i s f y the customers needs and expectations.In each area or function within an organisation there will be many processes taking p l a c e , a n d e a c h c a n b e a n a l y s e d b y a n e x a m i n a t i o n o f t h e i n p u t s a n d o u t p u t s t o determine the action necessary to improve quality.I n e v e r y o r g a n i s a t i o n there are some very large processes, which are g r o u p s o f smaller processes, called key or core business processes. These must be carried outw e l l i f a n o r g a n i s a t i o n i s t o achieve its mission and objectives. The section o n Processes discusses processes and how to improve them, and Implementation covershow to prioritise and select the right process for improvement.35

The only point at which true responsibility for performance a n d q u a l i t y c a n l i e i s with the People who actually do the job or carry out the process, each of which hasone or several suppliers and customers.An efficient and effective way to tackle process or quality improvement is throught e a m w o r k . H o w e v e r , people will not engage in improvement activities withoutc o m m i t m e n t a n d r e c o g n i t i o n f r o m t h e organisations leaders, a climate f o r improvement and a strategy that is implemented thoughtfully and effectively. Thes e c t i o n on People expands on these issues, covering roles within t e a m s , t e a m selection and development and models for successful teamwork.An appropriate documented Quality Management System will help an organisationn o t o n l y a c h i e v e t h e o b j e c t i v e s s e t o u t i n i t s p o l i c y a n d s t r a t e g y , b u t a l s o , a n d equally importantly, sustain and build upon them. It is imperative that the leaderst a k e r e s p o n s i b i l i t y f o r t h e a d o p t i o n a n d d o c u m e n t a t i o n o f a n a p p r o p r i a t e management system in their o r g a n i s a t i o n i f t h e y a r e s e r i o u s a b o u t t h e q u a l i t y 36

journey. The Systems section discusses the benefits of having such a system, how toset one up and successfully implement it.O n c e t h e strategic direction for the organisations quality journey has b e e n s e t , i t needs Performance Measures to monitor and control the journey, and to ensure thedesired level of performance is being achieved and sustained. They can, and should b e , e s t a b l i s h e d a t a l l levels in the organisation, ideally being c a s c a d e d d o w n a n d most effectively undertaken as team activities and this is discussed in the section onPerformance. CHAPTER FIVE THE EFFECTS OF TQM Improving Financial Services through TQM 37

The work described in this case study was undertaken in a young, rapidly expandingc o m p a n y i n t h e f i n a n c i a l s e r v i c e s s e c t o r w i t h n o p r e v i o u s e x p e r i e n c e w i t h T o t a l Quality Management (TQM). The quality project began with a two-day introductorya w a r e n e s s program covering concepts, cases, implementation s t r a t e g i e s a n d imperatives of TQM. The program was conducted for the senior management teamof the company. This program used interactive exercises and real life case studies toe x p l a i n t h e c o n c e p t s o f T Q M and to interest them in committing resources for ademonstration project. The demonstration project, which used the Seven Steps of P r o b l e m S o l v i n g ( s i m i l a r t o D M A I C ) , w a s t o s h o w t h e m h o w T Q M c o n c e p t s worked in practice before they committed resources for a company-wide program. Step 1. Define the Problem1.1) Selecting the theme: A meeting of the senior management of the company wash e l d . Brainstorming produced a list of more than 2 0 p r o b l e m s . T h e l i s t w a s prioritized using the weighted average table, followed by a structured discussion toa r r i v e a t a consensus on the two most important themes -- customer s e r v i c e a n d sales productivity.U n d e r the customer service theme, "Reducing the Turnaround Time from a n Insurance Proposal to Policy" was selected as the most obvious and urgent problem.T h e c o m p a n y w a s y o u n g , a n d t h e r e f o r e h a d f e w c l a i m s t o p r o c e s s s o f a r . T h e proposal-to-policy process therefore impacted the greatest number of customers.An appropriate cross functional group was set up to tackle this problem. 1.2) Problem = customer desire current status:Current status: What did the individual group members think the turnaround iscurrently? As each member began thinking questions came up. "What type of policies do we address?" Medical policies or non-medical? The latter are take longer because of the medical examination of the client required. "Between what stages dowe consider turnaround?" Perceptions varied, with each person thinking about theturnaround within their department. The key process stages were mapped:38

Several sales branches in different parts of the country sent proposals into theCentral Processing Center. After considerable debate it was agreed at f i r s t t o consider turnaround between entry into the computer system at the Company SalesB r a n c h a n d d i s p a t c h t o t h e c u s t o m e r f r o m t h e C e n t r a l P r o c e s s i n g C e n t e r ( C P C ) . Later the entire cycle could be included. The perception of the length of turnaround by different members of the team was recorded. It averaged: Non-Medical Policies 17 daysMedical Policies 35 daysI n v o k i n g t h e s l o g a n f r o m t h e a w a r e n e s s p r o g r a m "In God we trust, the rest of us bring data" the group was asked to collect data and establish reality. Armed with a suitably designed check sheet they set about the task. Customer desire:

What was

the turnar ound desire

d by the custo mer?

Since acusto mer survey

was not availa ble,

individ ual group memb

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think a s custo mers

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would they expect the

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the custo mer's point

of vie w they realize d that

they did not differe ntiate

betwe en medic al and

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