Total Quality Management

Vivek kr. Upadhyay Raj Kr. Agrawal Manish Kumar Mohammed

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Presentation Outline
Philosophy of TQM TQM Concepts and Principles TQM Initiatives

Basic Objectives
For any contemporary business enterprise, the basic objectives are:

1. Survival 2. Profitability 3. Leadership

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Quality
Fitness for use Conformance to requirements Meeting customers expectations Fulfilling customers expressed and implied needs Providing extraordinary customer satisfaction Customer delight
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Evolution of Quality Management

Inspection Quality Control
Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance

Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.
Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC. Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee 5 involvement.

Quality Assurance
TQM

What is TQM?
Constant drive for continuous improvement and learning.

Management by Fact

Concern for employee involvement and development

Result Focus

Passion to deliver customer value / excellence

Organisation response ability

Partnership perspective (internal / external)

Actions not just words (implementation)

Process Management

BASIC PRINCIPLES OF TQM

Approach Scope Scale Philosophy Standard Control Theme Management Led Company Wide Everyone is responsible for Quality Prevention not Detection Right First Time Cost of Quality On going Improvement
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TQM Certification
Deming Award Malcolm Balridge Award Japan USA

European Foundation of Quality Management (EFQM) CII Business Excellence Model -

UK India (1994)
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Organizational Quality
Means of ensuring Organizational Quality:

Employees Workplace Processes Environment Performance

: : : : :

QC, PC, ESS 5S ISO 9001 ISO 14001 OHSAS 18001 Benchmarking Six Sigma

QUALITY OF EMPLOYEES

QUALITY CIRCLES

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Concept of Quality Circles

It is a small group of workers From the same work place Voluntarily working together Development of infinite self potential Solving their work related problems

Sense of ownership
Brings them to the mainstream
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QUALITY OF WORK PLACE

5S

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5S
Takashi Osada gave five tips Seiri Seiton Seiso Seiketsu Shitsuke Segregation Place for everything Cleaning Standardization Discipline
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For a well organized work place.

5S implementation
1S Seiri (Segregation)
Distinguish between needed and not needed Need Necessary, Required Want Desire, Wish -Get rid of un-necessary items by: Sending to a place where it can be used Returning to store Scrap

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5S implementation
2S Seiton (Systematic arrangement)
Decide a layout so that retrieval is easy Arrange items neatly Use tags and labels for easy identification Use arrows / color coding Use standard nameplates / tripods Do not paste anything on wall Do not keep many displays on table top, it may distract attention
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5S implementation
3S Seiso (Cleaning)
Eliminate foreign matter, trash, filth, dust etc. Clean everything including equipment, machines, floors, walls, ceiling, items in the rooms, corridors, galleries, drains etc. Adopt suitable type of cleaning Brooming, Dusting, blowing scrapping Wiping, Mopping Washing with detergent Cleaning with solvents

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5S implementation
4S Seiketsu (Standardisation)
Maintain state of cleanliness Identify parking areas, wash rooms, drinking water areas Provide adequate nos. of fire extinguishers Conduct self audits Take corrective steps Display audit scores
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5S implementation
5S Shitsuke (Discipline)
Internalize the practice of 5S Educate all employees on 5S Use of PPE as per job requirement

Inter departmental competitions

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5S - Benefits
Well organized work place Less inventory, Waste reduction Freedom of movement Ease of retrieval Productive use of time Less stress on body and mind Healthy workplace
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QUALITY OF PROCESSES

ISO 9000

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ISO 9001

It is a formal system to bring commonality and consistency in large organizations to ensure quality of product / service

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ISO 9001 Approach

It ensures that:
Technical Administrative and Human

Factors affecting quality are under control

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Benefits of ISO 9001

Reduction of quality cost Job clarity, Less confusion Job satisfaction More productive work hours Prestigious recognition

Competitive advantage
Increased profitability
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ISO 9001 - Kaniha

NTPC Kaniha was certified to ISO 9002:1994 with effect from 01.07.2000 for a period of three years by M/s EAQA We have upgraded to ISO 9001:2000 with effect from 30.09.2003 and have obtained certification from M/s IRQS for three years

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Kaizen
If you are content with what you have done, you will never do the best you can do

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Voice of Complacency
We have done enough
Hold performance at this level Let us stop Are foundations for future failure
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Reality is
Everything deteriorates with time

Maintenance can only check decline

It can not improve processes

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Kaizen
Kaizen means continuous improvement
It generates process oriented thinking Philosophy our work life and social life deserves to be continuously improved

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Kaizen
Challenge every existing process
Is this the only way Are there other ways Is it a better way

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SUCCESS STORIES FROM INTERNATIONAL ARENA

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Case Study : GE, USA

1991- Six Sigma launched in GE

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GE, USA (Contd)

GE WAY
Lean, tough and more competitive through - Reduction of manpower (4 lakhs to 2.29lakhs) - Restructuring (thro delegation of decision making) - Work Out- shop floor improvement in daily operations - Learning culture

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Case Study : GE, USA(contd.) Six Sigma at GE

1997 Spent $300 million and benefited by $600 million 11,000 projects---80% reduction in defects generating av. $70,000-100,000 savings 1998 Spent $450 million and completed 37,000 projects and saved $1 billion 1999 47,000 projects and savings of $1.5 billion
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Learning from GE
Shared vision across GE Right Environment for Decision Making Work Outs --- Employee Involvement Exchange Information---- Communicate Training & Education: Jack Welch Empowerment Stretch Goals with Improvements Quantum Leaps
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NTPC Journey to Business Excellence

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NTPC Success So far

Indias Premier Power utility More than 1/4 generation by 1/5 capacity High level of Power Plant Performance Continuous Reduction in project cycle time

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Challenges for NTPC

To realise its Vision

Sustenance of Performance levels already achieved

Assessment & Review of all Systems& Processes To further bring down the cost of power To maintain the motivation level of employees To work in emerging competitive scenario
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WHY TQM?
Structured Continuous Process Improvement Better Alignment with Vision & Strategy Involvement and Empowerment of Employees Excellence in all facets of Business Cultural Transformation of Organisation
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CUSTOMER FOCUS COST

SUSTENANCE COMPETITIVE NESS

TIME PRODUCTIVITY
SAFETY CREATIVITY
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INNOVATION

Total Quality Management is a Journey, not a Destination

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Thank you For your patient listening

Any Questions Please ???.......

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