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S A K
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TOTAL QUALITY
MANAGEMENT
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SESSION PLAN
Introduction to concepts of TQM
Standards and TQM
TQM Reasons for failure Measurement of Quality
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TQM
Total - made up of the whole
Quality - degree of excellence a product or service provides
Management - act, art or manner of planning, controlling,directing,.
ThereforeTherefore, TQM is the art of managing the whole to achieve, TQM is the art of managing the whole to achieve
excellenceexcellence.
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WHY TQM??
Ford Motor Company had operating losses of $3.3 billion between1980 and 1982.
Xerox market share dropped from 93% in 1971 to 40% in 1981.
Attention to quality was seen as a way to combat the competition.
GOAL OF TQM
Do the right things right the firsttime,every time.
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WHY QUALITY??
Reasons for quality becoming a cardinal priority for most
organizations:
Competition
Changing customer
Changing product mix
Product complexity
Higher levels of customer satisfaction
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QUALITY PERSPECTIVES
Everyone defines Quality based on their own perspective
of it.
Kind of perspectives :
Judgmental perspective
Product-based perspective
User-based perspective
Value-based perspective
Manufacturing-based perspective
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QUALITY LEVELS
Organizational level
Process level
Individual job level
History of quality management
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ELEMENTS OF TQM
Leadership
Employee involvement
Product/Process Excellence
Continuous Improvement
CustomerFocus on Fitness for Use
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EVOLUTION OF TQM
PHILOSOPHIES
The Deming Philosophy
Definition of quality, A product or a service possesses quality if it helps
somebody and enjoys a good and sustainable market.
Improve quality Decreasecost becauseof less rework, fewer
mistakes.
Productivity improves
Long-termcompetitive
strength
Stay inbusiness
Capturethe marketwith better quality
and reduced cost.
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THE DEMING PHILOSOPHY
1.1. Create constancy of purposeCreate constancy of purpose
2.2. Adopt philosophy of preventionAdopt philosophy of prevention
3.3. Cease mass inspectionCease mass inspection
4.4. Select a few suppliers based on qualitySelect a few suppliers based on quality
5.5. Constantly improve system and workersConstantly improve system and workers
6.6. Institute worker trainingInstitute worker training
7.7. Instill leadership among supervisorsInstill leadership among supervisors
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THE DEMING PHILOSOPHY
8.8. EliminateEliminate fear among employeesfear among employees
9.9. EliminateEliminate barriers between departmentsbarriers between departments
10.10. EliminateEliminate slogansslogans
1111. Remove. Remove numerical quotasnumerical quotas
12.12. EnhanceEnhance worker prideworker pride
1313. Institute. Institute vigorous training and education programsvigorous training and education programs
1414. Develop. Develop a commitment from top management toa commitment from top management to
implement above 13 pointsimplement above 13 points
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THE DEMING PHILOSOPHY
A System of Profound Knowledge
1. Appreciation for a system
2. Psychology
3. Understanding process variation
4. Theory of knowledge
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PROCESS MANAGEMENT
Planning and administrating the activities necessary to achievehigh quality in business processes; and also identifyingopportunities for improving quality and operational
performance ultimately, customer satisfaction.
Processsimplification reduces opportunities for errors andrework.
Processes are of two types value-added processes and supportprocesses.
Value-added processes those essential for running thebusiness and achieving and maintaining competitive advantage.(Design process, Production/Delivery process)
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PROCESS MANAGEMENT
Support processes Those that are important to anorganizations value-creation processes, employees and dailyoperations.
Value creation processes are driven by external customer needs
while support processes are driven by internal needs.
To apply the techniques of process management, a process mustbe repeatable and measurable.
Process owners are responsible for process performance andshould have authority to manage the process. Owners couldrange from high-level executive to workers who run a cell.
Assigning owners ensures accountability.
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PROCESS MANAGEMENT
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PROCESS CONTROL
Control is the activity of ensuring the conformance tothe requirements and taking corrective action whennecessary.
Two reasons for controlling the process
1. Process control methods are the basis ofeffective dailymanagement of processes.
2. Long-term improvements can not be made to a processunless the process is first brought under control.
Short-term corrective action should be taken by theprocess owners. Long-term remedial action should bethe responsibility of the management.
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PROCESS CONTROL
Effective quality control systems include
1. Documented procedures for all key processes
2. A clear understanding of the appropriate equipment andworking environment
3. Methods of monitoring and controlling critical qualitycharacteristics
4. Approval processes for equipment
5. Criteria for workmanship: written standards, samples
etc.
6. Maintenance activities
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PROCESS IMPROVEMENT: KAIZEN
Japanese for gradual and orderly continuousimprovement over a long period of time with minimum
financial investment, and with participation byeveryone in the organization.
Improvement in all areas of business serves toenhance quality of the firm.
Three things required for successful kaizen program:operating practices, total involvement, and training.
Operating practices expose opportunities for
improvement. JIT reveals waste and inefficiency aswell as poor quality.
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PROCESS IMPROVEMENT: KAIZEN
Every employee strives for improvement. Top managementviews improvement as part of strategy and supports it. Middlemanagement can implement top managements improvementgoals by establishing, maintaining, and upgrading operating
standards. Workers can engage through suggestions, smallgroup activity.
Middle management can help create conducive environment forimprovement by improving cooperation amongst departments,and by making employees conscious of their responsibilities forimprovement.
Supervisors can direct theirattention more on improvementthan supervision, which will facilitate communication.
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DEMING WHEEL: PDCA CYCLE
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KAIZEN: IMPLEMENTATION
Plan Study the current system; identifying problems;testing theories of causes; and developing solutions.
Do Plan is implemented on a trial basis. Data collectedand documented.
Study Determine whether the trial plan is workingcorrectly by evaluating the results.
Act Improvements are standardized and final plan isimplemented.
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TQM & ORGANIZATIONAL
CULTURAL CHANGE
Traditional Approach
Lack of communication
Control of staff
Inspection & fire fighting
Internal focus on rule
Stability seeking
Adversarial relations
Allocating blame
TQM
Open communications
Empowerment
Prevention
External focus on customer
Continuous improvement
Co-operative relations
Solving problems at their roots
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IMPLEMENTING TQM
Successful Implementation of TQM
Requires total integration of TQM into day-to-day operations.
Causes of TQM Implementation Failures
Lack of focus on strategic planning and core competencies.
Obsolete, outdated organizational cultures.
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OBSTACLES TO IMPLEMENTING
TQM
Lack of a company-wide definition of quality.
Lack of a formalized strategic plan for change.
Lack of a customer focus.
Poor inter-organizational communication. Lack of real employee empowerment.
Lack of employee trust in senior management.
View of the quality program as a quick fix.
Drive for short-term financial results. Politics and turf issues.
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SOME CRITICISMS OF TQM
1. Blind pursuit of TQM programs
2. Programs may not be linked to strategies
3. Quality-related decisions may not be tied to market
performance
4. Failure to carefully plan a program
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RECOGNIZING AND REWARDING
QUALITY
Promotion of high quality goods and services
Malcolm Baldrige National Quality Award (MBNQA) (UnitedStates)
Deming Prize (Japan)
European Quality Award (European Union)
ISO9000 certification
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THANK U