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TOTAL QUALITY MANAGEMENT

A presentation on TQM by SSQCE

TOTAL QUALITY MANAGEMENT

  1. 1. TOTAL QUALITY MANAGEMENT A presentation by THE SOCIETY OF STATISTICAL QUALITY CONTROL ENGINEERS BHOPAL
  2. 2. WHY TQM  TQM (Total Quality Management ) paves way towards achieving world class/excellent status.  TQM works for all round improvement. The result is excellence in every field i.e. excellence in financial performance, product quality, customer satisfaction, employee satisfaction, vendor relations, corporate citizenship etc.  TQM acts as enabler for securing global markets, gaining customer confidence and enhancing organisation’s public image  It takes care of various standards’ requirements related to Quality, Safety, Occupational Health and Environment in an integrated and broader way  TQM brings laurels to the organisation in the form of national/ international excellence awards/recognitions
  3. 3. TQM: Definitions
  4. 4. TQM DEFINITIONS  TQM is a holistic management approach that aims at long term success by focusing on customer satisfaction and continuous improvement. TQM is based on the participation of all members of the organisation is improving processes, products, services and the culture in which they work.  TQM is a management philosophy which focuses on quality in its broadest sense (big Q) i.e. quality of people, processes, facilities and systems rather than focusing merely on end product quality  TQM is an integration of all management concepts and principles that leads to excellence  TQM is a process of individual and organisational development, the purpose of which is to increase the satisfaction level of stakeholders viz. customers, suppliers, employees, society and owners/ shareholders.
  5. 5. ISO – 9001 Vs TQM ISO - 9001 TQM Concerned with management of quality Concerned with overall management of the organisation Focus on system and procedures Focus on continual improvement Satisfaction of stakeholders (except customer) not demanded Satisfaction of all stake holders (customer, vendor, employee, society, owner) is considered vital No concern for productivity, quality costs etc. Productivity, quality costs etc. are part of TQM as it stresses overall excellence No concern for human aspects like employees’ health, safety and well being. People are considered the most important resource of the organisation and hence people related aspects get high priority ISO-9001 implementation is steered by Quality department TQM implementation is steered by the CEO of the organisation.
  6. 6. TQM CONCEPTS
  7. 7. PERCEPTION OF QUALITY AS WE MOVE FROM SMALL “q” TO BIG “Q” SMALL “q” BIG “Q” Quality of product Quality of product Quality of service Quality of service Quality of people Quality of processes Quality of systems Quality of facilities (equipment/machines/environment etc.)
  8. 8. PERCEPTION OF QUALITY AS WE MOVE FROM SMALL “q” TO BIG “Q” (Contd.) TERM SMALL “q” BIG “Q” QUALITY Quality of product Quality product as well as quality of processes PROCESS Manufacturing process Manufacturing processes as well as business processes DESIGN Product design Product design as well as process design. CUSTOMER The external customer who pays for the product External customer as well as all internal customs who receive the output of any process.
  9. 9. What differentiates a TQM organisation from any other organisation IN A TQM ORGANISATION  Quality is customer driven and not “producer driven” (Quality is perceived as meeting customer’s needs and expectations)  “Customer” includes internal as well as external customers (Customer is anybody who receives the product/service internally or externally)  Continuous improvement is a way of life for all individuals (“All individuals” include people working at all levels in all functions and all departments of the organisation including contract staff. The tendency of “preserving the status quo” does not exist.)  Quality is all pervasive (Quality is visible in every process being performed in the organisation – manufacturing processes/ non-manufacturing processes/ business processes  All stake holders are satisfied (Programmes and policies are framed in such a way that satisfaction level of all the stake holders is high)  TQM is a never ending journey (TQM is not taken as a one time project or destination)
  10. 10. TQM REQUIRES CULTURAL CHANGE FROM TO Preserving the status quo Change for the better, improve continually Internal focus (Focus on internal systems and procedures) External focus (Focus on customers, competitors and environment) Emphasis on short term objectives Emphasis on short term objectives as well as long term objectives Emphasis on bottom line (Delivery, cost, profits) Emphasis on “quality first” Limited information sharing with stake holders Transparency and open communication with stake holders Fire fighting approach to problems Solving problems at the root Controlling the employees Empowering the employees Working in compartments Working as a team
  11. 11. TQM ELEMENTS
  12. 12. TQM Elements  Leadership/management commitment  Human resource management  Strategic planning  Customer focus  Continuous improvement  Process management  Data management and analysis  Corporate social responsibility  Satisfaction of stake holders  Results
  13. 13. LEADERSHIP Leadership is the ability to inspire people to make a total, willing and voluntary commitment to accomplishing or exceeding organizational goals Leaders should  Direct the organisation towards goals/ targets  Provide support and guidance to people  Provide resources when needed  Be accessible to stake holders  Be personally involved in key areas  Honour values, ethics and culture of the organisation  Project themselves as role models
  14. 14. Qualities of a good leader  Good leader is goal oriented  Good leader is always positive  Good leader trusts people  Good leader enjoys credibility  Good leader believes in persuasion rather than authority  Good leader demonstrates honesty, fairness and consistency in his/ her dealings  Good leader values humility
  15. 15. HUMAN RESOURCE MANAGEMENT HR EFFORTS  People motivation - Satisfying people’s needs - Caring for the people - Recognition and rewards - Job enrichment ( adding creativity/innovation/challenges to the job)  People development - Training - Qualification - Exposure to excellent organisations  People involvement - Quality circles - Suggestion scheme  People empowerment - Delegating planning and decision making powers HR RESULTS Outcome of employee satisfaction survey
  16. 16. STRATEGIC PLANNING  Organisation to have clear Vision, Mission and Values (Vision is what the organisation wants to become. Mission is what needs to be accomplished in key areas to realise vision. Values form the core of the organisation)  Strategic planning (long term & short term) is a must for any growing organisation.  The strategic plans should be guided by: i) Vision and mission statements ii) SWOT analysis results (strengths, weaknesses, opportunities, threats) as provided by independent assessments iii) Comparison with bench marks  Execution of strategic plans should be monitored by the leaders (top management)  Values/ethics of the organisation should be reflected in the strategic plans
  17. 17. CUSTOMER FOCUS EFFORTS  Identify your customers  Find out customers' needs and expectations  Incorporate customers’ needs and expectations in the product design and process design  Communicate customers’ needs and expectations to all functions and levels  Customers needs (specified as well implied) should be met essentially. Fulfillment of customers’ expectations, too, should be strived for. - Today’s expectations will be tomorrow’s needs - Meeting customer expectations will lead to customer delight RESULTS  Outcome of customer satisfaction surveys  Customer appreciation, customer commendation letters etc.
  18. 18. CONTINUOUS IMPROVEMENT (KAIZEN) LEVEL PREFERRED KAIZEN AREA Top Management Improvement in policies Middle Management - Improvement in systems and procedures - Business process re-engineering Junior Management/ Engineers Improvement in product design, Improvement in manufacturing processes Workers/Grass roots level Improvement in manufacturing processes, poka yoke (mistake proofing), 5-S (Improvement in upkeep, storage, self-discipline etc at the work place.) The best approach for continuous improvement is to follow PDCA cycle (also called Deming’s improvement wheel) PLAN DO CHECK ACT
  19. 19. PROCESS MANAGEMENT  Any product/service is the outcome of a single process or a set of processes  The best way to improve the product/service is too make improvement at the process level  All processes need improvement – manufacturing processes/non-manufacturing processes/business processes  Every process should have i) Process owner ii) Internal “supplier” iii) Internal “customer”  Feed back from customers (internal as well as external) should be taken as triggers for process improvement
  20. 20. DATA MANAGEMENT AND ANALYSIS PURPOSE  To know the present level of performance  To assess improvements over a period and set targets for future  To compare performance with “bench marks” DATA ANALYSIS TOOLS - Seven QC tools (Basic tools) - Advance SQC tools (control charts, DOE, regression analysis etc.) Capturing data related to products/processes should be a continuous activity and should not be limited to problem areas alone. As far as possible, data capturing should be on- line for ease of processing and reliability.
  21. 21. SATISFACTION OF STAKE HOLDERS  KNOW YOUR STAKE HOLDERS - Customers - Employees - Vendors/partners - Society - Owners/share holders  Find out existing satisfaction levels of stake holders by conducting independent perception surveys.  Raise satisfaction levels constantly by implementing suitable programmers and policies
  22. 22. CORPORATE SOCIAL RESPONSIBILITY Organisation should strive to become a good corporate citizen  SOCIETY EFFORTS: - Regular interaction with members of society - Policies/strategies relevant to the society to be made public - Environmental protection efforts - Public safety efforts - Health care, education, recreational facility for the community - Developmental work for the community  SOCIETY RESULTS: - Results from society satisfaction survey - Media feedback - Recognitions/rewards from public bodies
  23. 23. RESULTS  Customer results (Source – customer satisfaction survey)  People results (Source – employee satisfaction survey)  Vendor/partner results (Source – vendor satisfaction survey)  Society results (Source – Society satisfaction survey)  Quality results (Sigma level, trend of customer complaints, quantum of in-house rework etc.)  Business results (Profit, turnover, share value etc.) For unbiased assessment of results, satisfaction surveys should be conducted by independent agencies
  24. 24. TQM IMPLEMENTATION
  25. 25. HOW TO IMPLEMENT TQM (1) Choose a TQM model or develop your own TQM model to suit your organisation (2) Prepare comprehensive plan for implementing various elements of the model (normally it requires consultant’s help) (3) Implement the model (it may take 2-3 years before the TQM is implemented across the organisation, vertically and horizontally) (4) Carry out self assessment by “in-house” assessors. If the score is 70% or more, the organisation can be considered excellent (5) Apply for prestigious national/international excellence awards to get formal recognition as an excellent organisation. (There is no provision for certification for TQM)
  26. 26. WHY ADOPT A TQM MODEL  The model provides a framework for implementing TQM throughout the organisation cutting across all functions and levels.  The model provide a basis for self-assessment as well as external assessment with a view to identify area wise strengths and weaknesses (OFIs).
  27. 27. WHICH MODEL TO ADOPT  Organisation can develop it own TQM model to suit its size, nature of operations and culture etc. Care should be take to assign due weightage to all the TQM elements and maintain balance between “Efforts” and “Results”.  If the organation is aspiring for a particular TQM award/Quality award/Excellence award, it should adopt the relevant TQM model against which the organisation would be assessed by the award body.
  28. 28. WELL KNOWN AWARDS/MODELS  CII-EXIM Bank excellence awards in India (Based on EFQM Model)  European Quality Awards (Based on EFQM model)  Malcolm Baldrige National Quality Awards in the U.S.  Deming application prize (An international prize open to all countries)  Singapore national quality awards  Australian national quality awards NOTE: All TQM models are dynamic. The models are updated periodically in line with current management practices.
  29. 29. TQM AWARDS/MODELS
  30. 30. EUROPEAN QUALITY AWARDS (EFQM Excellence Awards)
  31. 31. WHAT IS EFQM EFQM (European Foundation for Quality Management) is a non-profit body of European business organisations. The mission of EFQM is to promote business excellence among member organisations. It encourages and provides forum for exchange of best practices among its member organisations. The motto of EFQM is “shares what works”
  32. 32. ABOUT EFQM EXCELLENCE AWARDS  Instituted in 1992, it is Europe’s most prestigious award for organisational excellence.  The award is based upon EFQM model for business excellence.  The award is given annually. Only EFQM members apply for the award.  EFQM Award is given to those organisations who are excellent in all spheres (role models). EFQM prize is given to those organisation who excel in one or more fields.  The awards/prizes are given on the basis of minimum marks criteria. As such, number of awards/prizes in a year is not fixed.  The assessment team consists of top executives of leading business organisations of Europe.
  33. 33. EFQM MODEL-2010 (EUROPEAN FOUNDATION FOR QUALITY MANAGEMENT) TQM Element Points Leadership 100 People Management 100 Policy & strategy 100 Partnership & resources 100 Processes, products & services 100 Customer results 150 People results 100 Society Results 100 Key Performance Results 150 Total Points 1000
  34. 34. MALCOLM BALDRIGE NATIONAL QUALITY AWARDS
  35. 35. ABOUT MALCOLM BALDRIGE QUALITY AWARDS  Instituted in 1987, it is the most prestigious quality award for U.S. organisations  Named in the honour of late U.S. secretary of commerce Malcolm Baldrige  The objective of the award is to promote excellence in the quality and performance of U.S. organisations  The number is awards in a year is fixed. Normally there are three awards in each of six categories viz. manufacturing sector, service sector, small business, education, health care and non- profit organisations  The award is given annually by the president of the United States in a special ceremony held at Washington DC
  36. 36. ABOUT MALCOLM BALDRIGE QUALITY AWARDS (Contd.)  Assessors are leading experts from U.S. business/ education/health care/non-profit organisations.  Awardees are required to share information on their successful performance and quality strategies with other U.S. organisations at the annual “Quest of Excellence” conference. (Except for proprietary information, even though it was part of award application)
  37. 37. MALCOLM BALDRIGE AWARD CRITARIA 2009 - 2010 Efforts TQM Element Points Leadership 120 Strategic Planning 85 Customer focus 85 Measurement, analysis and knowledge management 90 Workforce focus 85 Process management 85 Total points 550
  38. 38. MALCOLM BALDRIGE AWARD CRITARIA 2009 - 2010 Results TQM Element Points Product outcomes 100 Customer focused outcomes 70 Financial and market outcomes 70 Workforce focused outcomes 70 Process effectiveness outcomes 70 Leadership outcomes 70 Total points 450
  39. 39. DEMING PRIZE
  40. 40. WHAT IS DEMING PRIZE The Deming application prize is an annual award presented to a company (or a division of a company) that has achieved distinctive performance improvement through application of Total Quality Management (TQM). It is the most coveted award in the field of quality.
  41. 41. ABOUT DEMING PRIZE  The oldest and most prestigious award in the field of Quality  Instituted in 1951 in the honour of late quality guru Dr. W.Edwards Deming.  The award is managed by Japanese Union of Scientists and Engineers (JUSE)  Initially Deming prize was applicable to Japanese companies only. In the year 1984, the prize was opened for overseas organisations.  The prize is based on “pass marks” system. Any company that secures the minimum pass marks (70%) is entitled to the prize. Thus, there is no limit on the number of prizes awarded during a year.
  42. 42. ABOUT DEMING PRIZE (Contd.)  Applicant organisations for Deming Prize have to undergo rigorous examination process during on-site visits/ executive sessions conducted by highly experienced examiners.  Deming prize is innovation oriented. It expects the organisation to develop its own TQM model, implement it and demonstrate excellent results. No specific TQM model is prescribed for winning Deming Prize.  Outside Japan, majority of Deming Prizes have been won by Indian companies. So far, 16 Indian companies have won Deming Prize e.g. Tata Steel (2008), Lukas-TVS, Sundaram Clayton, Mahindra & Mahindra etc.
  43. 43. DEMING PRIZE CRITERIA  Whether the objectives and strategies of the company are challenging and customer focused.  How TQM has been applied to achieve these objectives i.e. thoroughness, consistency and depth of application across the organization.  Whether outstanding results have been achieved through application of TQM
  44. 44. DEMING PRIZE PROCESS Submission of “Description of TQM practices” On-site examination by JUSE team Prize giving to successful organizations TQM Diagnosis by JUSE team Document examination
  45. 45. DEMING PRIZE: AREAS OF EXAMINATION DURING ON-SITE VISITS (1) BASIC CATEGORIES (i) Management policies and deployment (ii) New product development/work process innovation (iii) Maintenance and improvement (Daily works management and continuous improvement) (iv) Establishing systems/procedures. (v) Data analysis and information technology (vi) Human resources development (2) UNIQUE ACTIVITIES The organization to demonstrate at least one unique activity (3) ROLE OF TOP MANAGEMENT Judged through “executive sessions” i.e. interaction of examiners with top management team
  46. 46. CII-EXIM BANK AWARD FOR BUSINESS EXCELLENCE
  47. 47. CII-EXIMBANK AWARD FOR BUSINESS EXCELLENCE  Instituted jointly by Confederation of Indian Industry (CII) and Export Import Bank of India (EXIM Bank) in 1994, it is the most prestigious award in India for business excellence.  The award is based upon EFQM model for business excellence.  The “award” is given to role models whereas “prizes” are given to those organisations that demonstrate excellence in management of quality.  Provision is also there for commendation certificates viz. (i) Certificate for strong commitment to excel on the journey towards excellence (ii) Certificate for significant achievement on the journey towards excellence  Award winners are required to share information on their successful performance and quality strategies at the annual Quality Summit organised by CII.
  48. 48. CII-EXIM BANK AWARD/PRIZE WINNERS 1. The tinplate company of India Ltd. (2008-prize) 2. Tata consultancy services Ltd. (2006-Award) 3. Heavy electrical equipment plant, BHEL, Haridwar (2006-prize) 4. Tata motors Ltd. (2005-Award) 5. Infosys technologies Ltd (2002-Award) 6. Tata steel Ltd. (2000-Award) 7. Maruti Udyog Ltd. (1998-Award) 8. Hewlett Packard India Ltd. (1997-Award) Note: If an award winner re-applies for the award during the next five years, the organisation will be assessed and get feedback report. However, such an organisation will not be eligible to receive the award, even if it qualifies.
  49. 49. THE TQM TOOLKIT
  50. 50. THE TQM TOOLKIT TOOL PURPOSE BENCH MARKING For setting improvement targets w.r.t. better performers e.g.“best-in-class” QUALITY FUNCTION DEPLOYMENT (QFD) Systematic approach for incorporating customer’s requirements at design stage. SEVEN QC TOOLS (Brainstorming, Ishikawa diagram, Check Sheet, Scatter diagram, Histogram, Pareto analysis, Control charts) For systematic analysis of problems related to quality, productivity, safety etc. LEAN Waste reduction SIX SIGMA Breakthrough improvements in products/processes 5 – S Improvement in house keeping OTHER TOOLS (Affinity diagrams, Relation diagrams, Tree diagrams, Matrix diagrams, Field force analysis etc.) For better understanding , communication and solution to problems
  51. 51. Guarding against pitfalls
  52. 52. GUARDING AGAINST PITFALLS ( why TQM initiatives are left halfway ! )  Focus on winning award rather than TQM implementation  Improvements driven largely by external pressures and not by pro-active approach  Not all employees involved in TQM initiatives  Customer satisfaction overweighs satisfaction of other stake holders  No mechanism for monitoring quality of processes  Ownership for processes not fixed  Short term goals overweigh long term goals
  53. 53. THANKS

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