TQM

By
Yuvarajah

10/7/2010 Yuvarajah 1

AIM
To provide an overview into TQM
and it’s Implementation


Scope
Part 1 – Awareness
Part 2 – Buy-In
Part 3 – Roll-Out


Quiz
TQM is a comprehensive & integrated way of
managing an organisation to:
1. Meet the needs of the …………….consistently
2. Eliminate …………… and …………….
3. Achieve …………………………………to process

“the customer is more important than the….…..”
“people come up with……… not excuses”
“fear is replaced by ..…….”
‘power is replaced by …………………”
“difficult ………. are on the agenda”
“…………………..are more important than authority
“Training is an investment to meet .………..….”


PART 1
Awareness


Background to Quality Management

1911 – Frederick Winslow Taylor

- Convert skilled crafts to simplified jobs,
- Ease training of unskilled workers,
- Time studies for “best way”,
- Enforced (standards, adoption,
cooperation, rewards)
- Drawbacks - dehumanise, monotony,
job satisfaction - task variety, multi
skills, autonomy, feedback



1920 – Walter Shewhart (Father of SQC)

-Philosophy of Q - hypothesis, experiment,
evaluation
- Cause and Effect Relationship (inputs &
outputs)
- SPC tools & Controls Chart to improve Q of
products,
- Variation in process, eliminate waste & error,
reduce cost
- WW2 American consumerism – Q casualty
- Data is contextual. Separate signal from noise
-



1950 – Dr W. Edwards Deming (father of modern QC)
- Revolutionise Q in Japan (SPC & PDSA) with culture
- TQC approach – Organisation that “learns” to sustain
continuous improvement
- Human Dynamics Culture (Kaizen, Han, Gemba, 5S)
- System of Profound Knowledge (transformation lens)
1. Appreciation of a system: understand the parts
2. Knowledge of variation: range and causes
3. Theory of knowledge: the concepts
4. Knowledge of psychology: concepts of human nature.

- 14 “Points” & 14 Deadly Diseases
(1990-1993)
Quality = Results of Work efforts
Total Costs

It is HUMAN DYNAMICS in quality which provides the creative energy to
bring about continuous improvement in the enterprise"


Deming’s 14 Points -
Transforming Business
Effectiveness
(Out of Crisis, 1986)


1. Create constancy of
purpose towards
improvement - of product
and service, with the aim to
become competitive and
stay in business, and to
provide jobs.


2. Adopt the new philosophy - We are in a new
economic age. Western Management must awaken to the
challenge, must learn Their responsibilities,and take on
leadership for change.

3. Cease dependence on inspection - Eliminate the
need for massive inspection by building quality into
the product in the first place.

4. End the practice of awarding business on the basis of
price tag - Instead, minimize total cost. Move towards a single
supplier for any one item, on a long-term relationship of
loyalty and trust.


5. Improve constantly and forever the system of
production and service, to improve quality and productivity,
and thus constantly decreaseYuvarajah
10/7/2010
costs. 14

6. Institute training on the job - if people are inadequately
trained, they will not all work the same way, and
this will introduce variation.


7. Instill leadership - The aim of supervision should be to help
people to do a better job. Supervision of management is in need of
overhaul, as well as supervision of production workers.


8. Drive out fear - management by fear is counter productive
in the long term, because it prevents workers from acting in
the organisation's best interests.


9. Break down barriers between departments - people in
research, design, sales, and production must work as a team,
to foresee problems of production and in use that may be
encountered with the product or service.


10. Eliminate slogans and targets - in asking workforce
for zero defects and new levels of productivity. Such
exhortations only create adversarial relationships, as the bulk of
the causes of low quality and low productivity belong to the
system and thus lie beyond the power of the workforce.

11. Eliminate management by objectives –
a. Eliminate work standards (quotas) on the factory floor.
Substitute with leadership.
b. Eliminate management by numbers,numerical goals.
Substitute with leadership.

12. Remove barriers to pride of workmanship – Eliminate
practices that reduce worker satisfaction. This means, inter alia,“
abolishment of the annual or merit rating and of MBO.

13. Institute a vigorous program of education and self -
Improvement – Invest in Continuous learning & development


14. Transformation is everyone's job– Put everybody in
the company to work to accomplish the transformation.

7 Deadly Disease
1. Lack of constancy of purpose
2. Emphasis on short-term profits - fed by
fear of unfriendly takeover, and by push
from bankers and owners for dividends.
3. Personal review systems, Annual
Appraisal or evaluation of performance,
merit rating, annual review, (by any
name) effects are devastating.
4. Mobility of management – job hopping
5. Running company on visible figures alone
6. Excessive medical costs – health care
7. Excessive costs of liability – warranty
fueled by lawyers who work for
contingency fees

What is Quality?
Outline some of the important
aspects of quality relating to a
simple product or service?.


What is TQM?
A holistic process
to achieve
excellence and
exceed customer
expectations
through
management
leadership and
continuous
improvement

A personal discipline
which requires an
individual to constantly
seek ways of improving
the routine processes in
which he or she is
involved, with the
objective of increasing
efficiency and eliminating
waste.

Common Sense
Common Practice

TQM CONCEPT
A continuous improvement
ACTION to
produce/deliver commodity
or service which conforms
to CUSTOMER’S needs or
requirements by better,
cheaper, faster, safer, easier
processing than
competitors through the
participation of all
EMPLOYEES under the
LEADERSHIP of
TOP MANAGEMENT

TQM
FOCUS
1. Quality - Product /
Service, Daily work
2. Costs - Price, Waste
3. Delivery- Right place,
Time & Quantity
4. Safety – User/ Employee
safety
5. Stakeholder – Customer,
Employee, shareholder
6. Environment – Society,
Community, Nature

TQM Core Principles
TQM Core Principles

Va
e

Systems
opl

r ia
Pe

tio
n
Serve Customers Variation impedes the
through and within a ability of People to
System satisfy customers

All Systems are
adversely affected by
Variation

Relationship Between Quality Performance
and Corporate Performance

Return on Superior Quality of
Assets
Goods and Services

Inferior Quality of
Goods and Services

Time


Customer Supplier Relationship

Information Input
Goods & Services Definition

System Intent Expectations
Ultimate measure of
quality, beyond operating
Customers
Supplier characteristics of goods
System to interpersonal
Needs & Preferences
relationship services

System Performance Quality Perceptions

Actual Goods & Services

Response
Variation & Change

Everyone Serves a Customer- Internal, External or Both

External Internal Internal External
Supplier Process Service Supplier
A 1 X C

Internal
Process An enterprise
2 cannot win the
external markets
External Internal until it has on
Internal
Supplier Service
Warehouse the internal
B Y
market !

External External
Distributor Distributor
J K

END USERS


Customer Supplier Partnership Strategy

Customers’
Current and Future Expectations
Identified Winner
Together

Customers’ Promises Quality
Current Expectations Promises Assured
Identified

Customers’ RRIP
IP Leave it
Current Expectations to Us
Not Identified

Incapable Capable Superior
System System System

Communication is Key

Variation and the Viruses Analogy
Unhygienic Environment

Unhealthy Community
Symptoms : Infection in people

Widespread Variation within the system

Uncompetitive Enterprise
Symptoms : Poor quality of goods &
services

Variation in one area often infects
another part of the system
Variation – Errors,
• Unpredictable tool wear may cause
Waste & Conflicts.
excess inventory of tools.
Attack variation to
eliminate waste and • Unreliable airline arrivals may cause
increase productivity passengers to have “slack time”
because they leave too early for
appointments


Waste… is any activity which does not
effectively use resources to:

• Directly add value to the organisation’s goods and services
• Provide support for value adding activities
• Positively contribute to mission success

Materials Floor-space Knowledge

Time Inventory Brainpower

Motion Human Effort Creativity

Capacity Training Money

Waste prevails throughout the system due to :
• Variation
• Non value-added activities


EXERCISE “SAMPAH”

Write down all the
WASTES that you
see at your place of
work/company?


SUPERIOR QUALITY
SUPERIOR QUALITY
Supplier and Customers Winning Together
Supplier and Customers Winning Together
(Supplier Meets Customers Current and Future Expectations)
(Supplier Meets Customers Current and Future Expectations)

Customer Focus Supplier Focus

Enhanced Customer
Enhanced Customer Improved Productivity Improved Employee
Improved Productivity Improved Employee
Perceptions
Perceptions Involvement.
Involvement.
Improved Uniformity
••Improved Uniformity • • Better Goods
Better Goods
• • Better Goods
Better Goods • • Improved Skills
Improved Skills
• • Better Service
Better Service
• • Better Service
Better Service
• • Improved Motivation
Improved Motivation
• • Better Delivery
Better Delivery
• • Better Delivery
Better Delivery
• • Improved Job Satisfaction
Improved Job Satisfaction
• • Competitive Pricing
Competitive Pricing • • Competitive Pricing
Competitive Pricing
• • Better Communication
Better Communication • • Improved Opportunities
Improved Opportunities
• • Better Communication
Better Communication

Improved Market Improved Market Improved Market
Share Share Share

Improved Return on Assets
Improved Return on Assets

QA & Continuous Improvement

Wheel of Continuous Increment
Improvement
Progress
Quality
Assurance


‘Big Step’ Improvement
Performance

Organisation Changes resulting from periodic
Performance
‘Planned’
introduction of Advanced Concepts
which often perform below full
potential.
‘Actual’

Time

Proportion of Effort
d
CEO/Head of Organisation ce s
n t
va ep
Ad onc f
Senior Management C
ceo
an uo
en Q
Middle Management int tus
M a St a

Supervision & Operatives

0% Proportion of Effort 100%


‘Small Step’ Improvement
Performance

Organisation
Performance Changes achieved through
incrementally improving the
system

Time

CEO/Head of Organisation

en l
em ta
t
o v en
Senior Management

pr em

e
nc
Im ncr

a
ur
Middle Management I

s
As
y
lit

ua
Q
0% 100%


TQM for Continuous Improvement

Performance
Changes achieved through the
‘Big Step’ Improvement
integration of Advanced
Organisation
Performance
Concepts, Incremental
Improvement and Quality
Assurance to continuously
improve the performance of the
‘Small Step’ Improvement system

Time


ep ed
CEO/Head of Organisation

nc nc
ts
Co va

en l
em nta
t
Ad
Senior Management

ov e
pr em
Im c r
In
Middle Management

ra t y
e
nc
su al i
As Qu

0% Proportion of Effort 100%


TQM for
TQM for
t
Continuous Improvement
m en
lve e
o l
e Inv eop
tiv ll P Management of Incremental Management of Advance
C
a
re of A Management of Incremental Management of Advance
Improvement
Improvement Concepts
Concepts

Goods & Services
Goods & Services Goods & Services
Goods & Services
Quality Assurance
Quality Assurance Incremental Improvement
Incremental Improvement

Goods & Services
Process Planning Control Problem Resolution
Design

……the management approach that sustains a competitive advantage by consistently
exceeding the current and future expectation of customers, based on continuous
improvement in all processes, goods and services, through the creative involvement of
ALL PEOPLE

Cost of Quality
NOW FUTURE
Decrease total cost
Prevention of quality
In Overall
cr
ea
Appraisal se Saving
% pr
of eve
to nt
ta io
l n
as
External
Failure Prevention
Decrease
failure as % of
total Appraisal
Internal
Failure Failure

Failure


Total Cost of Poor Quality

Visible Cost
• Inappropriate Equipment
• Damaged Equipment
• Excessive paper-work
• Indecision

Hidden Cost
• Over Specification
• Poor Training
• Indirect Labour Costs
• Excess Travel
• Increased Frustration
• Loss of Customers
• Waste of all kinds
• ‘Hurry up and wait’

Total Cost = Visible + Hidden Cost
Hidden Cost = 3 to 10 times Visible Cost


Two Causes of Variation

Common Causes
SYSTEMS --Traceable directly to
SYSTEMS Traceable directly to
the system. They are purely
the system. They are purely
random and are built into the
random and are built into the
system. People working in the
system. People working in the
system have little or no
system have little or no
influence over these causes.
influence over these causes.

Special Causes ASSIGNABLE- Traceable
ASSIGNABLE- Traceable
directly to the particular event
directly to the particular event
or specific individual. They are
or specific individual. They are
the causes over which the
the causes over which the
people working in the system
people working in the system
usually have influence and can
usually have influence and can
change.
change.


Cause & Effect - Store Truck

Measurement Equipment Procedures

Fuel Gauge Air-conditioner Speed regulations

Petrol Pump Engine condition Maintenance

Odometer Tyre inflation Loading Variation in
Fuel
Economy of
Petrol Octane Humidity Divers Mood Store Truck
Additives Terrain Pilfering

Contamination Traffic Density Skill

Material Environment People


Process Improvement – Store Truck
Distribution Plot
Upper Natural Limit of Variation

Daily
Average
(Km/litre)

Lower Natural Limit of Variation
“How often does each
reading occur?”

• With special causes eliminated, only common causes are
influencing the system
• With only common causes present, the system is said to be
stable (or in statistical control)
• Stable system have a predictable degree of dispersion of the
outcomes – between upper and lower natural limits of variation


Common Causes - Store Truck
 Poor training
 Poor design of goods and services
 Equipment malfunctioning or out of order
 Equipment not suited to the job
 Poor instructions
 Poor lighting
 Material problems
 Failure to provide accurate information
 Poor communication
 Too much noise, dirt, extremes of hat and cold,
poor ventilation


‘Crunch Issue’

At least 85% of the problems result
Problems
from common causes
ie Improvement requires a change to the
system

Less than 15% of the problems result
from special causes
ie Improvement requires a change by an
individual
Causes
Therefore, the major opportunity for
performance improvement lies in improving the
system

Management’s Responsibility

The system cannot be changed without management action and support at all
levels in the organisation.


Reality of Variation
Every process or activity exhibits
variation

If the process contains both common and
special causes, the outcomes are
unpredictable (and therefore difficult to
manage)

 If the process contains only common
causes, the range of outcome can be
predicted and special (and therefore, can
99.7% Confidence
be managed)

 The process becomes easier to
understand and manage as the extent of
variation is reduced.
99.7% Confidence


What to Measure?
Temperature
Operating costs
On time delivery
Rank / Trade Structure
Separation Rates
Absenteeism
Product development lead time
Inventory turnover
Measurement Issues Skills
• Operational Definitions Process capability
• Data Consistency Preparedness
• Types of Data Customer perceptions
Morale

What is Total (Long Term) Cost?

Total Cost = Initial Purchase Price
PLUS
Cost of rejections and returns
Cost of delays
Cost of rectifications
Cost of replacements
Cost of unplanned changes
Cost of unnecessary accounting
MINUS
Benefits of future
Improvements in quality and productivity


Roles of People in the System
1. People as Part of the System
As worker performing a function or serving other
people
As members of a team performing a function or
serving other people
As operators of equipment

Poor quality results from worker attitude
Traditional Main problem is all about poor workmanship
Attitude Errors are always the worker’s fault

Reality People working in the system are unable to improve
the output beyond the sustainable capability of the
system

Sustainable That which can be consistently maintained over a
Capability period of time without imposing undue stress on
people


2. People as Contributions to Continuous
Improvement of the System

….. by working with management to :

1. Identify and eliminate undesirable special
causes over which people in the system
2. Identify desirable special causes and
incorporate these within the system
3. Identify and reduce common causes of
variation
4. Identify and reduce waste
5. Identify opportunities to raise performance to
new levels

Remember the ‘Crunch Issue’ – at least 85% of the
problems result from common causes of variation


Impact of Human Dynamics
The process of interaction between people,
one-on-one or in groups

1 + 1 = 2

1 + 1 = 3

1 + 1 = 0.5
The result from an effective team is greater
than the result from an individual


Cultural Change
Current Culture

“the way things are done around here”

Attitude Beliefs
& Values

Experiences Decisions

Actions

People People
Joining Leaving


Cultural Change
TQM Approach

“the way things are done around here”
Strategic
Strategic
Attitude Beliefs Inputs
Inputs
& Values
+ + +

Experiences Decisions

+ +
Actions

People People
Joining Leaving


Model I Behaviour
Win-Lose
Do it my way
C Blaming people
U Treat the symptoms
S
Suppress Feelings
T
O Conflict
M Barriers
E Undiscussables
R
Aggression/Submission
S
Save face
Fancy footwork
Assumption/inference
CLOSED

Model II Behaviour
Win-Win
Trust
C
Teamwork
U
S Feelings OK
T Collaboration
O Improve the process
M
Discussables
E
R Assertiveness
S Mistakes OK
Directly observable data
Learning
OPEN


OPEN ORGANISATION
We must excel at the following …
Internal External
Unity Responsiveness Responsiveness

Understanding Coming to terms Interacting with
l
ua

one’s own basic with oneself other people
d
vi

beliefs relative
di
In

and values to others

Setting team Working Working with
up

goals within other teams
ro
G

teams
n

Sharing clear Creating a Focusing on
io
at
is

strategic positive customers
an

direction internal and
rg
O

environment stakeholders


Levels of Learning
Objectives

Process //
Process Compare
Compare
Activity
Activity
• Correction to Single loop
process settings learning

Double loop
• Are the objectives valid? learning
• Is the process necessary?
• Are the policies and strategies
clear and appropriate?
• Does the ‘culture’ support or
work against the objectives?


For Change to Occur!

D xV x P > R
D = Level of DISSATISFACTION with current situation

V = VISION of the desired future state

P = PLAN of ‘how to’ achieve desired future state

R = RESISTANCE to change (financial & emotional)


Who do People Serve?

Pleasing
Demands on People the boss

Conflict Between department

Customers
Serving
the
Customer

Relationships Between People

Support for People

Customer Expectations
Scope of Needs and Preference
Performance Primary operating characteristics

Features Supplements, attributes, distinctiveness, differences

Conformance Compliance with pre-established specifications, standards

Aesthetics Appeal to the human senses, elegance, tastefulness

Reliability Ability to consistently meet criteria, dependability, trustworthiness

Durability Useful operating life, endurance, hardiness, toughness

Maintainability Ease and convenience of repair / rectification

Information Instructions, data, facts, knowledge, communication

Promptness Timeliness of delivery, punctuality

Responsiveness Ability to react to specific needs, awareness, willingness,
alertness
Consideration Behaviour shown in human relationships, fact, recognition,
regard, thoughtfulness, empathy
Confidence Reputation, assurance, credence, dependability

Image Sum of experiences, beliefs, feelings, knowledge and impressions


Perception Points
Any episode in which the customer forms an opinion
regarding the ability of the supplier’s response in goods
and services to meet expectations.

Customer Perception
An inadequate response creates Customer
a negative customer perception Dissatisfaction

A response which meets the
customers expectations will create a Customer
positive perception Satisfaction

A response that exceeds customer
expectations will create a delighted Customer as an
customer Advocate


Break Down Organisational Barriers
to Create Supportive Environment

Barriers Arise From : :
Barriers Arise From

Mission and goals not shared
Mission and goals not shared
Inconsistent decision making
Inconsistent decision making
Targets that undermine quality
Targets that undermine quality
Poor communication
Poor communication
Inappropriate rank structure
Inappropriate rank structure
Competition between functions
Competition between functions
Differing jargon
Differing jargon
Fear of performance appraisals
Fear of performance appraisals
Individual differences
Individual differences
Tribal affiliations
Tribal affiliations


Potential Problems & CMs
Review Potential Problems and Possible Counter
Barriers measures
1. Resistance to change - Encourage “buy-in” and raise
Denial Mode syndrome excitement through successful pilot
= “I already know it” projects. Promote “CAN-DO’ attitude
= “Prove it to me”
= “This won’t work here”
= “No my job”
2. Not enough middle Mgt support Actively involve middle Mgt – training
and hands-on participation
3. Imbalance between recognition Clarify design of reward and
and rewards recognition system and communicate
4. Mgt expects results too fast Benchmark against market leaders and
establish “SMART” goals

5. Changing policies too often Consider holistically before decision
6. Remove or retrench people as a
result of improvement Redeploy to other productive activities
.

MANAGEMENT MUST TAKE DEFNITIVE AND POSITIVE ACTIONS TO ADDRESS ISSUES


Organisation as a Customer-Focused
Value-Adding System
Customer
Customer
Expectations
Expectations

Consider Material Flows
Information Flows Response
Response
Control Loop
Physical Layout/Barriers
Language/Jargon Barriers
Formal and Informal Systems

Do they Promote Customer Focus
or inhibit Value Adding Activities
‘Total’ System Solutions


IMPLEMENTING TQM - Investment or Cost?

Components Investments Benefits/payback
Commitment and Meetings with/for all Better communication
Participation levels of employees among employees
Human KS, motivation and Enhanced skills and
Resources team training proficiencies in
Development employees
Automation and
Technology and computerisation Higher productivity and
System lower cost
Measuring Instruments
Quality Better process
Measurement
Team-based and
Continuous problem solving Cost savings from team-
Improvement activities based projects
Recognition and Souvenirs, Higher morale and
Rewards Competition, Awards participation

ROI – Time Benefit Relationship

Benefits
With TQM

Without TQM

Time

Eliminate and prevent problems
Reduce non-value added activities
Simplify and improve processes and systems
Make the job more easier, interesting and productive


PART 2


TQM for Continuous Improvement
1
The Company
defines the
quality of
service
6
Improvement 2
planning is Policies &
integrated into processes are
strategic & continuously
corporate improved
planning
7
Continuous
improvement is
a personal
discipline

5
Our people are 3
continuously Decisions are
learning and based on facts
improving 4
Suppliers &
contractors are
treated as
partners in the
achievement of
mission


Perspectives

TQM IS…. TQM IS Not….
• A way of management/ • A passing fad
leadership change
• Merely conforming to
• Commitment to CS customer requirements
• Involvement of all – • Just the responsibility of
functional & cross functional “Quality Dept”
teams
• Merely a set of standards
• Long term commitment to to conform to.
Customer improvement
• Narrow focused and sub-
• Continuous improvement of optimisation of resources
business process
• Dependence on
• Focus on prevention correction.
•Pro-active improvement • Reactive – only when
form within there are complaints

Where to Start
TOP MANAGEMENT
LEADERSHIP,
LEADERSHIP,
LEADERSHIP!
TQM process has to start with the
CEO and management team
recognising the NEED and FULLY
SUPPORTING It.
That means no pseudo buy-in,
politics, lip service and “busy”
excuses !

Paradigm Shift – Conventional to TQM

Team-based Functional
Organisation Organisation

Steering
Committee

Process/
QIT

Employee
Involvement
Team


Top Mgt

How to Start?
Facilitators

Employees

1. Organise Training - seminar/workshop for Senior Mgt,
followed by in-house Facilitators and then Employees.

2. Assess Current Q culture and QMS – identify the
gaps, problems, obstacles, fear, resistance,
opportunities and critical mass support.

3. Institutionalise TQM as Change Intervention – Establish
a Steering Committee and Project Teams across to
champion the need, philosophy, practices and culture.


Setting of Goals & Objectives
The distinctive characteristic of a mature TQM organisation
is how all – the individual/ team/ sectional/ organisationl
goals and objectives are aligned to the VISION

Well identified goals and objectives enable an org to:
1. Strategically see beyond the present moment.
2. Plan ahead
3. Organise its tactical activities
4. Share the goals with everyone involved
5. Optimise cross-functional (inter-department) efforts
6. Provide customer satisfaction


Communicating TQM

1
DEVELOP
TRUST

2
5 ACCEPT
LET GO OF INDIVIDUAL
THE PAST 7 DIFFERENCES

4
ADOPT A PROBLEM 3
SOLVING GIVE
ORIENTATION FEEDBACK


Teams are the lifeblood
of TQM Success


Stages of TEAM Development

Phase Observation Support needed
Forming Members organise Facilitator role is critical at
into teams this stage

Team members Difficult period – objectivity
Storming challenge roles, task and process focus needed
and expectations

Cohesion and synergy Empowerment to be given
Norming
developing

Performing
Results are visible Facilitator act as coach


BUILDING STRONG TEAMS

1. Creating an Identity – Name, Logo, Motto
2. Having a shared mission
3. Developing a support structure
4. Defining norms and acceptable practices, eg code of
conduct & accountability
5. Identifying and allocating tasks, eg work & participation
6. Maximising resources, eg people, time, group process skills
7. Adapting and optimising the environment
8. Strengthening the membership, eg recognition
9. Communicating effectively
10. Evaluating the objectives regularly


TEAM MEMBERSHIP and ROLES
Membership Support Needed
Plan for annual improvement (*)
Prioritise objectives
Steering Committee Provide guidelines and policies
Review improvement results
Allocate budgets/resources
Act as team sponsor
Communicate company goals to teams
Support teams
Sponsors Remove barriers
Promote and empower team
Coach and guide teams
Promote team spirit
Facilitators Negotiate and mediate
Guide in application of improvement tools
Team Leaders Lead team to achieve goals/objectives
Encourage participation
Manage meetings and project
Adhere to team’s code of conduct
Members Participate actively
Implement agreed to action


BENCHMARKING AND ITS CONTRIBUTION

Benchmarking – “The practice of being humble enough to
admit that someone else is better at something and being
wise enough to try to learn how to match and even surpass
them at it (Marion Harmon, Quality Digest)

Simple 7 Step Process:
1. Identify and decide what to benchmark
2. Understand your own process
3. Select “best in class”organisations
4. Measure and compare performance
5. Plans to meet and surpass targets
6. Implement and monitor results
7. Strive for continuous improvement

TYPES OF RECOGNITION AND
REWARD SYSTEM

R & R act as behaviour change “Drivers and Anchors”
for individual and team members. When designing
and developing R&R system, consider:
1. Proportion to efforts and results
2. Timely
3. Sincere, and done with warmth
4. Appropriate to the culture

Examples of R&R:
Plaques, Trophies, Certificates, Roll of Honour, Picture in Magazine, Use of
Limousine, Logo Items (Hats, Mugs, Pen, Key Chain) Meet VIP, Special Luncheon,
Dinner for Two, Trip (local/overseas), Tickets to Events, Gift Vouchers, Pick-Gift


Benefits of TQM

Tangible Benefits Intangible Benefits
• Increase in customer • More employee involvement
satisfaction • Greater alignment and focus
• Reduction in inventory on company’s priority
• Improvement in product quality • Better communication
• Drop in errors and defects • People enjoy their work
• Increased equipment usage • Employee morale higher
• Shortened cycle time • Lower turnover &
• Increase productivity in absenteeism
employee • Stable, motivated and
• Higher profitability and growth productive workforce
• Reduction in overall cost


PART 3
Roll-Out


Goal Allignment and Deployment
(HOSHIN KANRI) The “BACKBONE” of TQM

Organisations need to find: (4 Ms)

1. The MODE to translate corporate vision, objectives and
strategies into concrete action plans at operative level.

2. The MEANS to focus everyone’s contributions in
support of employee empowerment.

3. The MECHANISM for jointly identifying objectives and
the actions required to obtain the results/outcome.

4. The METHOD to integrate the entire organisation’s daily
priority activities with it’s long term goals.


Goal Alignment and Deployment (HOSHIN KANRI)
External Data Internal Data
* Market requirements/trends * Prior year results
Customer feedback Strategic need, Shared value,
- Perception survey Self Assessment
- Report cards Employee Feedback,
- Dissatisfaction reports TQM Audit PLAN
* Benchmarking Corporate Standards

Determine areas for improvement (What & How
Goal alligned
Goal alligned
from Top floor
from Top floor Prioritize and Quantify Budgets
-Shopfloor
-Shopfloor
Set goals and measurements for Q, Cost & Service

Analyze and decide how and who to achieve goals DO

Implement Action Plans

Management Review Results

CHECK
No Results Yes
Satisfactory?

Document & Standardize
Analyze & define
Work Methods & SOP ACT
corrective actions


How FAST can RESULTS be seen?

DEPENDS ON:
1. Management Commitment
2. Resources Allocated
3. Support from employees
4. Coordination and implementation of activities

Typically, the 1st year (Planning Stage) will involve getting acquainted,
familiarising and generating awareness. Significant results could be
realised from as early as 1 year (SMCs) up to 2-3 years (LCs)


Implementation Milestone
Approximate Period Year
Phases/Key Focus
(Month) 1 2 3 4 5
i) Developing employees’ awareness
• Vision/Mission 3–6
• Planning/Pilot Areas **
• Education
ii) Review/redesign organisational practices 4 – 12
• Team Development ****
• Work Environment
• Training
• Quality Tools
iii) Empowering teams and people 8 – 16
• Resources *****
• Behaviour
• Recognition
• Application of Tools
iv) Creating/sustaining excitement and renewal 12 - 24
• Evaluation
*****
• Review and recycle
• Benchmarking


Typical TQM Introduction Process

Overall Planning Improvement Project Support Activities
& Management
Initial Review

Senior General
Management Awareness
Awareness Education

Plan Conduct Team
Introduction, First Stage Project Training
Select Projects
& Teams • Strategic
• Infrastructure Facilitator
• Process Improvement Training
Monitor
Progress Facilitation
Subsequent
Projects


Training - Skills & Tools
Basic/Start-up Team Dynamics
Basic TQM concepts Team Building Principles
Problem Solving Techniques Resolving Conflicts
Facilitator & Team Leaders Effective Communication
Effective Meetings/Brain-
Problem Solving Tools/ /7QCC
Storming
Tools
Advance TQM Tools
Check sheets
Pareto Charts Process Mapping
Cause & Effect Diagram Five Whys,
Histograms Total Preventive
Scatter Diagram Maintenance (TPM)
Control Chart Poka Yoke
3 Mu
Strategic Tools
5”S”
Relational/Matrix Diagram
Benchmarking
Strategic GA & D (Hoshin Kanri)

How To Measure TQM Success

Short Term indicators:
1. Happier employees/lower absenteeism
2. Open attitudes and greater participation
3. More communication and suggestions
4. More analytical and systematic in Problem solving
5. More teamwork

Long Term indicators:
1. CS indices (Returns, Complains, Recognitions)
2. Better Financial Performance
3. Market share
4. In-process quality (Zero defects)
5. TQ assessment (eg cycle time, cost of Q,
Productivity
6. Higher morale workers

4 Key Success Factors

TQM

Management Customer Employee Continuous
Leadership Focus Involvement Improvement


TQM vs Traditional
KS Factors Element Invol TQM Traditional Approach

Management Leadership Active participation, Absence of/or passive
leads the team leadership
Planning LT vision, mission Limited – ST results
Policy Flexible -foster CI Rigid, extensive rules
Style Calm, see problems as Finger pointing, fear
opportunities
Communication Frequent & open Limited & top down

Customer
Customer Goal driven from Goal primarily “profit”
Focus
customers’ needs oriented
Quality As defined by Standardised Specs
customers
Priority Financial gains
Quality & CS
Supplier Adversarial
Strategic Partnership Relationship

KS Factors Element Invol TQM Traditional Approach

Employee Training Planned & systematic Sporadic & minimal
Involvement Shared DM DM solely by
Decision-
Making Management
Team-based & wide-
Appraisal & spread Seniority based &
Compensation limited

Continuous Problem- Based on facts & data Based on experience
Improvement solving and intuition
Quality Prevent defects Detect defects
Focus Both process & result Result only


QUIZ Answers

TQM is a comprehensive & integrated way of
managing an organisation to:
1. CUSTOMER
Meet the needs of the …………….consistently
VARIANCE WASTE
2. Eliminate …………… and ………..
CONTINUOUS IMPROVEMENT
3. Achieve ……………………………… to process

“the customer is more important than the boss ..…..”
ideas
“people come up with………not excuses” .
trust.
“fear is replaced by ..…….”
accountability
‘power is replaced by..………………”
issues
“difficult………. are on the agenda”
Performance
“……………….. is more important than authority
objectives
“Training is an investment to meet ……..….”

10/7/2010 Yuvarajah 100

CONCLUSION
TQM is all about

- vision, believe, motivation,
energy and commitment

'Think you can or think you can't; either way you're right'
- Henry Ford

10/7/2010 Yuvarajah 102

References

1. Total Quality Management Continuous Improvement”
manual for Australian Army by APTECH, Australia Pty
Ltd, 1992

2. NIES TQM ‘How To’ Approach, Guide to concepts,
Principles and Imperatives, Rev 1@Depart Of Industry,
Technology and Commerce, 1990

10/7/2010 Yuvarajah 103

TQM

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