[seminar 37] Total Quality Management

ABSTRACT

To survive and thrive in today’s cutthroat business world, we are required to implement some quality management program that delivers an edge in productivity, profitability and efficiency. Quality is at everyone’s lips these days because it can make the difference between success and failure in this dynamic world.
This paper includes the general definition of TQM, characteristics of TQM, important techniques such as SPC, Bench Marking, FMEA, etc and case study for placement improvement in Thiagarajar college of Engineering, Madurai.                  
Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in world-class competition and to improve structural, infrastructural, attitudinal, behavioral, methodological, ways of delivering to the end customer. TQM is a planning and management system that focuses and aligns the organization to achieve breakthroughs for customers. This is widely practiced by successful organizations around the world. Analog Devices, Hewlett-Packard, Teradyne and Fortune 500 companies use TQM techniques to narrow business issues and goals down to the important few, gain consensus, and achieve breakthrough improvement in areas that have baffled efforts at incremental improvement.  

INTRODUCTION

Total Quality Management (TQM) is a structured system for satisfying internal and external customers and suppliers by integrating the business environment, continuous improvement, and breakthroughs with development, improvement, and maintenance cycles while changing organizational culture.
Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in world-class competition. Only by changing the actions of Management, the culture and actions of an entire organization be transformed. TQM is for the most part common sense. Analyzing the three words, we have
TOTAL - Made up by the whole- for the whole.
QUALITY- Degree of excellence a product or service provides
MANAGEMENT-  Act, art, or manner of handling, controlling, etc.
Therefore, TQM is a structural system for satisfying internal and customers and suppliers by integrating the business environment, continuous improvement and breaks through with development improvement and maintains cycle while changing organizational culture. The spectra of TQM are haunting each and every organization now. Situation has changed after liberalization. Companies are changing their stance and adopting total quality.
This method was developed and implemented by Sundaram Information system. It is division of Sundaram Fastermers Ltd, the first company in India to have ISO-9000 mark as the first step to establish TQMS.
A management philosophy, which seeks to integrate all organization functions. To focus on meeting customer needs and organizational objectives. If views organization as a collection of processes. It maintains that organization must suave to continuously improve these processes by incorporating the knowledge and experiences of workers.

TOTAL QUALITY MANAGEMENT

DEFINITION:
To survive and thrive in today’s cutthroat business world, we are required to implement some quality management program that delivers an edge in productivity, profitability and efficiency.
Liberalization of economy, opening up the trade barrier, the gradual integration of local market into a global environment, the internalization of engineering activities and global access to knowledge and information has all contributed to a growing appreciation of quality requirement and assurance in all industrial activities. To survive and remain competitive in global market, good / services offered should not only be of high quality but also be reliable, save energy efficient, environmental friendly and cost effective.
Quality scenario has undergone a major transformation in past few years, particularly after the introduction of concepts like TQM, Zero Defect, and Quality Circle. Regional and assurance like ISO 9000 series of quality system monitor and ensure quality at all stages of manufacturing and production cycle.
A management philosophy, which seeks to integrate all organization functions (marketing, finance, design engineering production, customer services). To focus on meeting customer needs and organizational objectives. If views organization as a collection of processes. It maintains that organization must suave to continuously improve these processes by incorporating the knowledge and experiences of workers.
Total quality management approach of an organization, centered a quality, based on the participation of all of its members and aiming at long term cause through customer satisfaction and benefits to all members, organization and to society.
Analyzing the three words, we have
TOTAL- All area, all activities, all employees, Always.
QUALITY- Customer satisfaction, Customer delight.
MANAGEMENT- Structure, System, Procedure, Processes, Continuous improvement.
TQM is a structural system for satisfying internal and customers and suppliers by integrating the business environment, continuous improvement and breaks through with development improvement and maintains cycle while changing organizational culture. The spectra of TQM are haunting each and every organization now. Situation has changed after liberalization. Companies are changing their stance and adopting total quality.
Total quality management is all embracing and takes care of every aspect of quality. It refers to the total involvement of staff in an organization together, which includes suppliers, distributors and even customers in bringing about quality satisfaction by promoting quality culture through quality circles, job enrichment and effective purchasing. 
This method was developed and implemented by Sundaram Information system. It is division of Sundaram Fastermers Ltd, the first company in India to have ISO-9000 mark as the first step to establish TQMS. This method consists of 3-modules.
1)     Quality System Audit Module.
2)     A Quality System Documentation Module.
3)     A Division Module.
Audit module conducts comprehensive Preliminary audit through a questionnaires given to employees of the company based on an ISO compatible system.
The documentation module helps in creating a quality system manual conformation to ISO specification and provides on-line help on the contents of each mandatory ISO clause. It also provides cross-references existing between various documents and clauses, ensuring consistency of reference relationship. The deviation module contains deviation from product and process norms laid out in the quality system manual. It provides an online information issue like customer complaints, market failure lack in service etc.
Actually TQM is the next step from Quality assurance. Quality assurance is a method that manages all activities affecting the quality of product or serving in order to prevent faults.
There are also six phases to achieve Total Quality Management control.
1)     Comprehension-     Quality should be definable and measurable.
2)     Commitment - Clarity of concepts and policies with organization for it.
3)     Competence - Develop method, tests, procedures to evaluate quality, understand the price of nonconformance to quality.
4)     Communication - Create awareness; resolve conflicts, co-ordinate activities, create an image of product quality and reliability.
5)     Correction - Solve problem of nonconformance problem is due to lack of knowledge /facilism.
6)     Continuance - Maintain its importance; ensure exposure to sustained programmes, innovation.
The customers today are becoming more quality conscious. To survive globally and domestically quality revolution has become very essential. These concepts outline an excellent way to run an organization.
According to BRITISH Standard for TQM, BS 7850, TQM is BRITISH Management Philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve of the organization. Quality, in all its activities, services and products has been recognized as a major motivator on capturing the shares.
Defining Quality
Quality is never an accident; it is the result of intelligent efforts. There must be a will to produce superior things or services. It is a growing realization that continual improvements in quality are often necessary to achieve and sustain economic performance. In recent times, the rapidly changing circumstances became more and more challenging and QUALITY   IS RISEN CONSIDERABLY IN IMPORTANCE.
To be successful in quality efforts there must be a firm and sustained commitment to total quality from the top of organization to downwards.
Quality Is Fitness For Use “ It emphasizes the relationship between the consumer and products / services and this relationship is constructive only if the items and services respond to the overall needs of the user, price, delivery date and fitness for use. Quality can be quantified as follows:
Q=P/E
Where, Q=quality
             P=performance
             E=expectations
If Q is greater than 1.0 then the customer has a good feeling about the product or service. Of course, the determination of P and E will most likely be based on perception with the organization performance and the customer determination exceptions.
Quality has nine different dimensions. They are Performance, Features, Conformance, Reliability, Durability, Service, Response, Aesthetic and Reputation.
These dimensions are somewhat independent; therefore a product can be excellent in one dimension and average or poor in another. Very few, if any, products excel in all nine dimensions. For example, the Japanese were cited for high-quality cars in the 1970’s based only on the dimensions of reliability, conformance, and aesthetics. Therefore, quality products can be determined by using a few of the dimensions of quality.
Dr. Deming is credited with providing the foundation of the Japanese quality miracle and resurgence as an economic power. He developed the following 14 points as a theory for management for improvement of quality, productivity, and competitive position: ----
1)             Create and publish the aims and purpose of the organization
2)             Learn the new philosophy
3)             Understand the purpose of inspection
4)             Stop awarding business based on price alone
5)             Improve constantly and forever the system
6)             Institute training
7)             Teach and institute leadership
8)             Drive out fear, create trust, and create a climate for innovation
9)             Optimize the efforts of teams, groups, and staff areas
10)          Eliminate exhortations for the work force
11a)      Eliminate numerical quotas for the work force
11b)      Eliminate Management by objective
12)        Remove barriers that rob people of pride of workmanship
13)        Encourage education and self employment for everyone
14)        Take action to accomplish the transformation
Benefits of installing quality system
1.       Provides a documented system & written procedures which controls the activity / service / product/ authority / responsibilities / interference.
2.       Promotes reputation in the market place through customer satisfaction.
3.       Proves a system, which ensures that all errors, deficiency, complaints and quality problem are immediately identified / controlled / dealt with through feedback loops.
4.       Promotes staff efficiency and cost effectiveness by motivation.
5.       Promotes improved industries relationship through interfaces and interdepartmental co-operation and input.
6.       Controls & provides all activity / service / product changes.
7.       Identifies and controls training needs & improves communication.
8.       Shows commitment to quality through maintaining consistent quality levels.
9.       Provides information for employee induction.
TQM-Basic approach
The history of quality control has started since 1924, from BELL Laboratories. A quality renaissance began to occur in US products & services and by the middle of 1980 the concept s of TQM were being publicized. The Malcolm Baldrige National Quality Award was established and become the means to measures TQM.
            Total Quality Management means improving the quality of work of all the people at all function in all functional areas of an organization. This is achieved with the cooperation and participation of all the employees by developing the capabilities of all individuals and harnessing their untapped potential through conscious effort, creative work and group activity (team work). It refers to total involvement of staff in an organization together, which includes suppliers, distributors, and even customers in bringing about quality satisfaction by promoters quality culture through quality circle, job enrichment and effective purchasing. Workers and supervisors have to be trained to solve the problems in products / process variations.
            Quality means satisfying the requirements of the customer and TQM seek to attain it by moving towards the ideal of doing the RIGHT THINGS RIGHT THE FIRST TIME EVERY TIME through continuous improvement in every sphere of activity.
TQM is based on the belief that:
1         Employees are not just resources, they are for a purpose.
2         Company hires the total man with body, mind and intellect and not just hands.
3         Problems are with system and not with people.
4         Variance analysis focuses on WHAT, HOW, WHY and not WHO.
5         People will be able to improve systems and solve problems.
6         Aim is to utilize the full potential of all employees.
7         Total employees involvement is essential for customer satisfaction.
IMPLEMENTATION
1         Start TQM at top and allow it to cascade down.
2         Move from detection based to prevention based quality.
3         Make continuous improvement a part of daily work.
4         Break organization barriers & Provide understandings of goals.
5         Emphasize the teamwork & Show respect for others.
6         Provide continuous education and training.
7         Recognize /reward achievement and right behaviour.
8         Establish a measure for quality and manage the facts.
9         Develop customer orientation throughout the organization.
10     Change relationship with suppliers, wholesaler/dealers and unions/work force from adversarial to team work/partnership.
In implementing TQM an integrated approach with total quality control, just-in-time, total productive maintenance and total employee involvement is most rewarding.
The high degree of efficiency demanded by the competitive market shifted the focus of control to the processes and led to the adoption of a different philosophy that is perhaps best summed up in Phil Crosby’s following four absolutes.
1         The definition of quality in conformance to requirements.
2         The system of quality is prevention.
3         The performance standard is zero defects.
4         The measurement of quality is the price of nonconformance.

Traditional approach                                        TQM approach
1.      Productive focus                                      Quality focus
2.      Emphasis on output/profit                         Emphasis on customers approach
3.      Dose not ensure quality                            Ensure quality and productivity
4.      Emphasizes employee performance          Emphasizes Managements role
5.      Post facto inspection                                Defect prevention
6.      Functional compartalisation Integration      Company-wide functional
7.      Maintains status quo / searchers                Promotes continuous improvement
         for precedents                                          / break-through
8.      Suppliers and subcontractors                    Suppliers and subcontractors
         a liability                                                   are partners in business.
9.      Workforce-an expenses                            Workforce-the key asset
10.    Short term benefits                                   Long range focus
People orientation
         Individual                                                  Team
        Managing                                                 Involving and Leading
         Ordering                                                   Participation, consensus
        Control                                                     Empowerment
         Problem Management                               Problem solving
         Traditional Pyramid structure                     Flattened structure   
SALIENT FEATURES OF TQM
1)             Total Employee Involvement - Every people working for a purpose. Every employee       has its role to play.
2)             Defect Prevention - Customer satisfaction
3)             Continuous Systematic Improvement - Change with time.
4)             Customer Orientation - Regular feedback, focus on customer.
5)             System Approach - Plan/standardize do check and act.
6)             Education and Training - Continuous development at all levels from CEO to workman.
Total employee involvement (Quality Mindedness)
An organization consists of a number of people working for a purpose. Each and every employee, each and every department has a role to play and everybody’s role is equally important. An organization becomes most effective only when all employee and all departments work together and harmoniously towards common company objectives.
Defect Prevention
Customer satisfaction is the key to the success of a business enterprise and satisfying a customer means meeting every aspect of his need. Two very important aspects of the customers needs are COST and DELIVERY and to meet these needs it becomes essential to move from detection based-quality to prevention-based quality. Also, in a competitive business environment, it is the market that determines the price. Though input costs may increase due to inflation, it may not be possible to pass on this additional cost to the customer. Therefore, with the selling price remaining constant and the input costs going up, the only for an organization to continue to meet profit is reducing wastes in every sphere of activity. This calls for quality at sources and effective control of processes to prevent defects and minimize time.
Continuous systematic improvement
Quality means catering fully to the requirements of the customers. but requirements change with time and quality, therefore, becomes a moving target. Continuous up gradation of products and services thus becomes essential to ensure quality. Also, to stay in the race, an organization must be competitive and to remain competitive, continuous improvement becomes essential. Improvements may be made by solving problems through small group activities and by individual Kaizens, always applying the PDCA cycle.
Customers orientation
This entails a shift from product-out to market-philosophy. Right through the organization the focus has to be on the needs of the internal and external customers. The needs have to be assessed correctly and integrated into the product design. A system has to be established for obtaining regular feedback customers since quality perceived by the customers.
System approach
PDCA (plan do check and act) and SDCA (standardize Do Check and Act) go hand in hand, holding on to gains is not possible unless the improved processes are standardized. And thus a systems approach to processes essential to quality assurance provides the much-needed foundation to build on. The basic system could one meeting the foundation to build on. The basics system could be one meeting the ISO 9000 series of international standards.
TQM awareness, education and trainings
People are the key to the success of a business organization. Improvements in very sphere of activity are only possible through continuous development of the people so that the untapped human potential may be harnessed. As Dr. Ishikawa said, TQM beings with training of all employees from the CEO to the junior most workmen become essential.
Awareness
1.       To obtain commitment of all employee for the quality programmes.
2.       To convince the management and the employees at all levels to accept quality as a way of life.
3.       To make quality as first policy & make the customer quality minded.
4.       To assist in developing an effective quality management of the company
5.       To help improving the quality of the products and services

TECHNIQUES
1)             Statistical Process Control (SPC)
2)             Quality Systems
3)             Bench Marking
4)             Quality function Deployment
5)             Quality By Design
6)             Taguchi’s Quality Engineering
7)             Product Liability
8)             Failure Mode And Effect Analysis
9)             Total Productive Maintenance
10)          ISO 14000
Statistical Process Control (SPC)
SPC is a powerful tool for improvement and optimization of a process, system, design, etc. The seven techniques (Pareto Diagram, Cause-&-Effect Diagram, Check Sheets, Histograms, Statistical Fundamentals, Control Charts, and Scatter Diagrams) of SPC are powerful ones to improve the quality and hold the gains afterwards. SPC is applicable for any type of organization----health care, education, manufacturing, government, banking, insurance, construction etc. This technique tool not only controls the process but has the capability to improve it as well.
Quality Systems
The International Organization for Standardization (ISO) was founded in 1946 in Geneva, Switzerland. Its mandate is to promote the development of international standards to facilitate the exchange of good service worldwide.
The ISO Technical Committee (TC) developed a series of five international standards for quality systems, which were in 1987 (they are, 9000,9001,9002,9003 & 9004).
ISO-9000 which is the starting point of TQM intends to provide integrated approach to the problem of quality, which includes integration of:
1.     Statistical approach
2.     Quality and reliability engineering
3.     Management Technique
4.     Motivational aspects
ISO 9001– Model for Quality Assurance in Design, Development, Production, Installation and Servicing.
            ISO 9002 – Model for Quality Assurance in Production, Installation and Servicing, detection, and correction of problems during production and installation.
ISO 9003 – Model for Quality Assurance in Final Inspection and Test.
 ISO 9004 - Quality Management and Quality Element.
Bench Marking
Benchmarking is a systematic method by which organization can measure themselves against best industry practices. Also provides organized framework through which organizations learn how the “best in class” do things. It is used both by the manufacturing and service organization, including Xerox, Motorola, Ford, AT&T and Toyota.
Organizations that benchmark adapt the process to best fit their own needs and culture. It is also time and cost efficient. The primary weakness is that best-in-class performance is a moving target.
Quality function Deployment
Quality Function Deployment (QFD) is planning tool used to fulfill customer expectations. It is disciplined approach to product design, engineering and production and in-depth evaluation of a product.
QFD is employed to translate customer expectation, in terms of specific requirements, into directions and actions, in terms of engineering characteristics, that can be deployed through - - - Product Planning, Part Development, Process Planning, Production Planning, Service.
Quality by Design
Quality by Design is the practice of using a multidisciplinary team to conduct conceptual thinking, product design, and product planning all at one time. A broad definition of Quality By Design is team of specialists who simultaneously design and develop a product to ensure ease of producibility and customer satisfaction. 
The primary benefit to implementing quality by design techniques is decrease in time to market.  Also benefits of quality by design techniques are faster product development, Better quality, less work in progress, fewer engineering change orders, and increased productivity.
Taguchi’s Quality Engineering
This concept of quality science was developed in United Kingdom. Dr. Taguchi has added the loss function concept. The concept of loss-to-society is societal losses including failure to meet customer’s requirement, failure to meet ideal performance and harmful side effects.
Product Liability
The Marvels of technologies and competition among manufactures is a significant factor for providing new and modified products. Un-proved technology creates hazards. The reasons for product injuries fall generally into three areas- the behaviour or knowledge of a product user, the environment where the product is used, and whether the factory has designed and constructed the product carefully using safety analysis and quality control.
Products liability law controls the private litigation of product accidents, which provides for compensation to the injured party. The department of commerce has published a Model Uniform Products Liability Acts.
Failure Mode And Effect Analysis (FMEA)
Failure Mode And Effect Analysis is an analytical technique (a paper test) that combines the technology and experience of people in identifying foreseeable failure modes of a product or process and planning for its elimination.
Intent of FMEA is done by continuously measuring the reliability of the machine, products, or process. There are four Stages of FMEA:
1.     Specifying possibility
2.     Quantifying risk
3.     Correcting high risk causes
4.     Re-evaluation of risk
Total Productive Maintenance (TPM)
Total Productive Maintenance is keeping the current plant and equipment at its highest productive level through cooperation of all areas of the organization. Analyzing TPM in three words we have:
1.     Total = All encompassing by maintenance and production individuals working together.
2.     Productive = Production of goods and services that meet or exceed customers expectations.
3.     Maintenance = Keeping equipment and plant in as good as or better than the original condition at all times.
ISO 14000
            Many aspects of ISO 14000 are basically the same as ISO 9000.This series is divided into two separate areas - the Organization Evaluation Standards and the Product Evaluation Standards. The Organizational Evaluation Standards consists of three categories:
1.     Environmental Management System (EMS)
2.     Environmental auditing (EA)
3.     Environmental Performance Evaluation (EPE)

The Product Evaluation Standards also consists of three categories:
1.     Environmental Aspects in Product Standards (EAPS)
2.     Environmental Labeling (EL)
3.     Life-Cycle Assessment (LCA)
The ISO 14000 will play a significant role in the environmental improvement of the planet. The common terminologies allow people in different countries to speak to each other, for improvement ideas, prevention ideas, and system problems.

A Case Study of Placement Improvement:

 OBSTACLES
Many organizations, especially small ones with a niche, are comfortable with their present state. They are satisfied with the amount of work being performed, the profit realized, and perceptions the customers are satisfied. Organizations with this culture will see little need for TQM until they begin to lose market share.
Once an organization embarks on TQM, there will be obstacles to its successful implementation. The eight most common obstacles determined by Robert J. Masters are:
1.     Lack of management commitment & improper planning.
2.     Inability to change organizational culture.
3.     Lack of continuous training and education.
4.     Incompatible organizational structure, isolated individuals, departments & inadequate use of empowerment and teamwork.
5.     Ineffective measurements techniques and lack of access to data and results.
6.     Paying inadequate attention to internal and external customers.

CONCLUSION

TQM is an management philosophy which seeks to integrate all organizational functions by attaining deserved specifications, increased market share, customer satisfaction, increased productivity, increased sales, cost reduction, zero defect etc. Also its main aim is customer satisfaction and benefits to all members of the organization and the society.
In early 1990s all multinational companies estimated the demand of global level and increased their manufacturing capacity accordingly. This resulted in market saturation and recession in economy. It has become tough time to promote in market. A necessity of ‘good quality’ has moved to ‘competing quality at lowest price’. In the present scenario companies are changing their stances and adopting total quality. The TQM helps in understanding these processes and managing them effectively to meet the needs of the customers. There is guarantee of customer satisfaction if quality process is attained.
Total Quality Management aims at improving the quality of work service, information, process, people, system, objectives and even management. The changing forces influencing the destiny of businesses and business houses have called for considerably sophistication in the management of quality and this sophistication has been achieved in TQM

REFERENCES

1)             Total Quality Management- Dale H. Besterfield, Carol Michna, Glen Besterfield.
2)             ISO9000 A Manual For TQM – Suresh Dalela
3)             TQM – Jagdeep Kalron
4)             Quality Control TQM – P.L.Jain
5)             TQM- Winchell, William
6)             www.iqd.com/tqm.htm
7)             www.skynetcom
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