Chapte r3

Definition of TQM
ISO 9000 defines TQM as a management approach of an organization, centered on quality, based on participation of all its members and aiming at long term success through customer satisfaction and benefits to the members of the organization and to the society. TQM is a management approach

Definition of TQM
British Standard Institution (BSI), UK Management philosophy and organization practices that aim to harness the human and material resources of an organization. Other names to represent TQM
Continuous quality improvement Total quality Total business management Organization wide quality

Elements of TQM

Leadership for TQM Higher echelons of management

has an important role to play for TQM to be implemented. Management is solely responsible for the success of TQM as it is responsible for selecting people, forming teams, providing resources and establishing the system in the organization.

The Deming Way

Dr. William Edwards Deming Born 14 Oct 1900 Sioux City, Iowa, BSEE-Wyoming 1921 MS-Colorado-1925 PhD-Yale-1928
1900-1993

Mathematical Physics

Demings 14 Points for Top Management

1. Create constancy of purpose for Improvement of products and services. - constant quest for innovation, improvement of processes, products and services. 2. Adapt new philosophy. - eliminations of wastes, delays and radically changing the work culture. i.e. JIT, Demings 14

Demings 14 Points for Top Management

3. Cease dependence on Mass Inspection. - doing things right and doing it the first time would reduce the dependence on inspection and will later on be eliminated. TQM aims at elimination of inspection through prevention.

Demings 14 Points for Top Management

4. End the practice of awarding business on the price tag alone. - Selection of supplier should be base on the following:
Quality Price Delivery Service

Demings 14 Points for Top Management

5. Constantly improve the system of production and services. - constant improvement of processes. - practicing Kaizen philosophy (continuous improvement) 6. Institute training. - Management needs training to
learn about the organization, all the

Demings 14 Points for Top Management

7. Adopt and institute leadership - Senior employees must conduct themselves as leaders Leader Manager rather than managers.
Proactive Coaches Understands process Moves around Improves processes Communicates frequently Seeks suggestions Reactive Finds Fault Doesnt care to understand Sits in his chair Maintains process Communicates rarely Questions

Demings 14 Points for Top Management

8. Drive out fear. - Encourage employees to suggest improvements and new ideas and ask about the existing process. - Fear is detrimental to improvement of processes.

Demings 14 Points for Top Management

9. Breakdown barriers between staff areas. - Encourage the various teams to communicate with each other. 10. Eliminate slogans, exhortations and targets for the work force.
- To improve productivity, the system is to be improved which is the responsibility of the management.

Demings 14 Points for Top Management

11. (a) Eliminate Numerical Quota for the work force - Setting targets may affect the quality of workmanship. - It forces the worker to ignore quality and concentrate on quantity. - Instead, standards for quality workmanship could be prescribed.

Demings 14 Points for Top Management

11. (b) Eliminate numerical goals for people in the Management - Setting goals without the necessary resources does not work. 12. Remove barriers that rob people of pride of workmanship.
- Establishing the right processes and proper system for quality management will lead to carrying out

Demings 14 Points for Top Management

13. Encourage education and selfimprovement for everyone. - For improving skills or updating of knowledge - will improve an employees ability which will be beneficial to the organization

10 Strategies for Top Management

1. Proactive management. Proactive Management Needs Proper System - Orderly system, clear roles and
responsibilities, official organization structure, set procedures and laid out system of recording in order to prevent or identify a problem before occurring.

TQM Calls for Proactive Management

10 Strategies for Top Management

2. Adventurous and bold change management. Nobody likes Change - People concerned should be
consulted before change and explained in detail how the proposed change is going to be beneficial to them. - Processes should be changed proactively by the top management in an adventurous manner.

10 Strategies for Top Management

Change is Essential
-Rethinking and restructuring of the
organization in order for them to be receptive to the needs of the customers. - Change management is important in a TQM environment and is crucial for continuous process improvement of processes and the organization. a. Be adventurous adventurous decisionmaking and high self-esteem among the senior management is required b. Be bold Boldness, self-confidence or self-esteem to fight lethargy among the

10 Strategies for Top Management

Roles of CEO for Adventurous and Bold Change Management -The primary responsibility for
adventurous and bold management lies with the CEO. - He should have his own bold initiatives and also support innovative change management initiated by his employees. - Confidence bestowed by the CEO will help them in achieving

10 Strategies for Top Management

3. DIRFT Do it right the first time Taking Right Decision
Plan the decision weigh the pros and cons Foresee the impact of the decision on the organization Take the opinion of the right people Involve the concerned (employees who will be affected by the decision)

10 Strategies for Top Management

Basic requirements of DIRFT
According to Crosby, top management should: 1. Define the requirement for each employees 2. Provide wherewithal (resources) to achieve the requirement 3. Keep on motivating and encouraging the employees.

10 Strategies for Top Management

Basic requirements of DIRFT
According to Deming: a. Right the first time every time every activity in the organization should always incorporate preventing errors, defects, hassles, demotivation of employees, etc. b. Set right goals Vision, mission and goals of an organization c. Select right personnel personnel

10 Strategies for Top Management

Basic requirements of DIRFT
d. Establish right processes establishment of proper guidelines and train the employees to perform accordingly. e. Choose durable raw materials good quality raw materials which doesnt call for an inspection. f. Choose right machinery since machinery is expensive, it should be selected carefully through a

10 Strategies for Top Management

4. Continuous Preventive Action Corrective Action is a PostMortem Prevention is better than cure One shot prevention is not good enough.

10 Strategies for Top Management

5. Care for Little Things and Accumulate Gains Caring for small things Communicate with Junior Employees Keep on accumulating

10 Strategies for Top Management

6. Ensure Economic Performance
Importance of Economic Performance Quality should Increase Productivity also Talk about success in Economic Performance Stakeholders will understand

10 Strategies for Top Management

7. Management by Walking Around (MBWA)
MBWA was postulated by Tom Peters. It can be defined as the unannounced visit of the CEO to the various work spots for getting direct and first hand information from the employees, the customers and the suppliers.

10 Strategies for Top Management

3 Major Activities during MBWA 1. Listening 2. Teaching 3. Facilitating

Barriers to Practicing MBWA

- it appears to violate the

10 Strategies for Top Management

Advantages of MBWA
- helps the organization to consolidate talents, wisdom of the employees, customer and suppliers. - helps the CEO remain in touch with the people, customers and suppliers and also make them feel important which results to attracting more business, improving quality of suppliers,

10 Strategies for Top Management

8. Measure for Success
Measure 3 Ps: Process, Personnel and Product
s es oc Pr
Pr o du ct

Personnel

10 Strategies for Top Management

PDSA for Measurement popularized by Deming:

Plan for Measuring Success Do Phase of Measuring Study Phase of Measurement Act Phase of Measurement

10 Strategies for Top Management

Some common measures for the service industries are:
1. Planned delivery and actual delivery time 2. Repeat customers 3. Perception of the customers about quality 4. Perception amongst customers about competitors 5. Productivity

10 Strategies for Top Management

6. Revenue generated per employee 7. Revenue vs. Expenditure ratio 8. Return on Investment 9. Customer Complaints 10. Rejects in process 11. Rejects at customer site

10 Strategies for Top Management

9. Never Rest on Past Laurels, Continue to Improve
The Tale of the Tortoise and Rabbit The need to Improve Continuously
1. Cutting costs by doing things right, the first time

10 Strategies for Top Management

10. Build a Virtual Organization
Virtual Integration whatever sub-units, components / materials, fixtures, etc. needed for the manufacturing a product are all manufactured by the same

10 Strategies for Top Management

Requirement for Virtual Enterprise:
a. Identify the most critical part/s b. Identify the other parts c. Develop / Identity vendors for the other parts d. Continuously increase subcontracting