A Presentation On

RETROSPECTIVE REVIEW ON TQM

SRI VENKATESWARA COLLEGE OF ENGINEERING AND TECHNOLOGY CHITTOOR, ANDHRA PRADESH, INDIA.

Department of Mechanical Engineering

Presented by: O.BHARATH KUMAR REDDY Ht.no:08785A0325

V.KAMAL Ht.no:08785A0323

ABSTRACT
From the past quarter of a century we had seen an upsurge in work related to quality. As business getting globalised and competition increased rapidly, companies started paying increased attention to product and service quality. Several quality-related programmes were initiated. Even the statistical process and quality control methods were good and necessary but not sufficient to give a company any competitive advantage. Industries realised that quality does not merely come through meeting the product/service specifications. Quality of a product was seen to shine through the quality of the organisation. Hence Total Quality Management (TQM) became a popular initiative in several organisations. Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. TQM requirements may be defined separately for a particular organisation. In this paper we are going to give an over view about TQM by considering the basic principles, techniques to get more business and good work supplies and also about the tools. In this we considered few case studies on TQM to give a clear view about the implementation of TQM techniques in production as well as in other aspects.

INTRODUCTION

TQM is a set of management practices followed organisation-wide, geared to ensure the organisation consistently meets or exceeds customer requirements. Process measurements and controls constitute major focus in TQM as means of continuous improvement. In a TQM effort, all members of the organisation participate in improving processes, products, services, and the culture in which they work. ISO (International Organisation for Standardisation) defines TQM as a management approach for an organisation, centred on quality, based on the participation of all its members and aiming at longterm success through customer satisfaction, and benefits to all members of the organisation and to society. TQM which involves a huge transformation in an organization is an initiative about the entire organisations quality, which refers to organisational excellence in whatever the organisation chooses to have as its mission. Product or service quality may only be one of the results. TQM is largely about leadership. The business results have to be planned, which means there should be a strategic plan drawn up prior to the start of the TQM initiative. TQM is an ongoing activity. As the market changes, as the customer preferences change, the organisation has to steer itself in accordance.

2. FUNCTIONS OF TQM
The following functions must be carryout to implement the total quality management To get support of top management and ensure quality to customers To develop awareness amongst all employees To formulate quality policy, objectives, goals as per corporate policy To develop quality plans To develop efficient and effective organisation To develop quality improvement group Training and education to all concerned people and continuous evaluation To introduce rewards and incentives

Satisfy all customers (internal and external) Addressing the total organisational issue of retaining customers and improving profits, as well as generating new business for the future

DEVELOPING OF PRODUCTS IN TQM ENVIRONMENT

Without a TQM approach, product development is usually carried on in an atmosphere where each department acts independently. Short-term results drive behaviour so scrap, changes, work-around, waste, and rework are part of routine. Most often, the attention of management is lost in supervising individuals, fire-fighting and rewarding individuals for their performance. Product development in a TQM environment is always customer-driven and focused only on quality. Teams in TQM environment are process-oriented, and interact with their internal customers to deliver the required results. The focus of top management is on controlling the overall process, and rewarding teamwork, not individuals

Improving Business with Total Quality Management (TQM)

Total Quality Management (TQM) is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. An important part of TQM is its philosophy toward continually improving your business and products. For improving business with TQM the following is to be considered Basic principles Techniques to get good work and supplies Tools to reduce waste and failures Techniques to get more business

3. TQM Tools
The following are the tools used in Total Quality Management. Pareto Principle Scatter Plots Control Charts Flow Charts Histogram or Bar Graph Check Lists Check Sheets

3.1: Pareto Principle

The Pareto principle suggests that most effects come from relatively few causes. In quantitative terms: 80% of the problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of the wealth is owned by 20% of the people etc. Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back to back) Pareto charts can be used to compare 'before and after' situations. Where to apply initial effort for maximum effect is to be decided by using this principle.

3.2: Scatter Plots

A scatter plot is effectively a line graph with no line - i.e. the point intersections between the two data sets are plotted but no attempt is made to physically draw a line. The Y axis is conventionally used for the characteristic whose behaviour we would like to predict. Used, for defining the area of relationship between two variables.

3.3: Check Sheets

A Check Sheet is a data recording form that has been designed to readily interpret results from the form itself. It needs to be designed for the specific data it is to gather. Used for the collection of quantitative or qualitative repetitive data. It is adaptable for different data gathering situations. Minimal interpretation of results required. It is quick and easy to use check sheets. No control for various forms of bias - exclusion, interaction, perception, operational, non-response, estimation.

3.4: Control Charts

Control charts are a method of Statistical Process Control, SPC. (Control system for production processes). They enable the control of distribution of variation rather than attempting to control each individual variation. Upper and lower control and tolerance limits are calculated for a process and sampled measures are regularly plotted about a central line between the two sets of limits. The plotted line corresponds to the stability/trend of the process. Action can be taken based on trend rather than on individual variation. This prevents over-correction/compensation for random variation, which would lead to many rejects.

3.5: Flow Charts

Pictures, symbols or text coupled with lines, arrows on lines show direction of flow. It will enable the modeling of processes, problems/opportunities and decision points etc. It develops a common understanding of a process by those involved. No particular standardization of symbology, so communication to a different audience may require considerable time and explanation.

3.6: Histogram or Bar Graph

A Histogram is a graphic summary of variation in a set of data table of numbers. It can be analyzed to draw conclusions about the data set. A histogram is a graph in which the continuous variable is clustered into categories and the value of each cluster is plotted to give a series of bars as above.

4. Basic Principles of (TQM)

The basic principles for the Total Quality Management (TQM) philosophy of doing business are to satisfy the customer, satisfy the supplier, and continuously improve the business processes. Satisfy the customer Satisfy the supplier Continuous improvement

4.1 Satisfy the customer

The first and major TQM principle is to satisfy the customer--the person who pays for the product or service. Customers want to get their money's worth from a product or service they purchase. . In any business, there are customers, suppliers and users. Some may be internal to your company and some external. Everyone is not your customer. Internal customers If you are working in a job, your internal customer is the person responsible for your paycheck. That is usually your boss. He or she is the person you need to satisfy with the work you produce. If you are jobbed out to another department, you still need to make sure your boss is happy before anyone else. Everyone has an internal customer until you get to the owner of the company. Even the CEO has someone responsible to pay him or her. External customers These are those that purchase goods or services from the company. They are the company's customers. If the company is properly run, assignments you get will have the goal of satisfying those customers. Company philosophy

A company that seeks to satisfy the customer by providing them value for what they buy and the quality they expect will get more repeat business, referral business, and reduced complaints and service expenses. Some top companies not only provide quality products, but they also give extra service to make their customers feel important and valued.

4.2 Satisfy the supplier

A second TQM principle is to satisfy the supplier, which is the person or organization from whom the goods are purchased. The suppliers are those that provide goods and services needed to do a job. If there is a hand in paying them, then we are their customer. There are internal and external suppliers. The misconception that everyone is not a customer states that suppliers are customers. But that is incorrect, since we pay them and they don't pay us. In order to produce quality goods, there is a need to get quality parts and services from suppliers. It is wise to encourage and help them provide us with the quality we desire. Internal suppliers Within a company, there will be the boss or supervisor for some people, such that they have a hand in their performance appraisal and in them getting paid. These are internal suppliers. But also, there may be people that assist someone but report to someone else. These are indirect suppliers. External suppliers A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time. It is only in the company's best interest that its suppliers provide it with quality goods or services, if the company hopes to provide quality goods or services to its external customers.

The company purchases goods and services from external companies. These are the company's external suppliers. If we have direct dealing and handle paying them, they can be considered our external suppliers.

4.3 Continuous improvement

The third principle of TQM is continuous improvement. Company can never be satisfied with the method used, because there always can be improvements. Certainly, the competition is improving, so it is very necessary to strive to keep ahead of the game. Working smarter, not harder Some companies have tried to improve by making employees work harder. This may be counterproductive, especially if the process itself is flawed. For example, trying to increase worker output on a defective machine may result in more defective parts. Examining the source of problems and delays and then improving them is what is needed. Often the process has bottlenecks that are the real cause of the problem. These must be removed. Worker suggestions

Workers are often a source of continuous improvements. They can provide suggestions on how to improve a process and eliminate waste or unnecessary work.

5. Getting Quality Goods from Suppliers

Need for Quality Goods . This need is for quality supplies are obvious. If the company get shoddy goods, items out of spec, unreliable parts, and/or late delivery, it is very difficult to deliver quality products. Likewise, if the workers are inefficient, if the repair service is unreliable, or if the company gets low quality performance from those who provides service, company is hindered from successfully satisfying its customers. Method uses TQM With the advent of the Total Quality Management (TQM) philosophy of doing business, there are much better ways to assure quality performance from your suppliers. The new way of thinking is to establish an atmosphere of trust, teamwork, and cooperation. In other words, company must establish a partnership with the suppliers, such that it is in the best interest of both of them that the other succeeds. Working together as partners is the way to assure company will get the quality products and extra service and need in your business

6. Inspection Methods to Fulfil Quality Requirements

Whenever work is done or a product or part is madewhether it is a piece of hardware manufactured on the assembly line, a memo typed by a secretary, or code developed by software programmersit should be inspected to see that it fulfills the requirements and specifications. This is certainly a wise business practice. Some companies accept a certain failure rate, while others try to correct the problems they see from their inspection. Inspecting and then correcting will save company money. Sorting out failures

The most common type of inspection that has been done for years on the assembly lines involves sorting the defective items from the acceptable product. This method is sometimes referred to as "creating quality by inspection" and is not considered an effective quality management approach. Production line inspection For example, at the end of a production line the inspector gives final approval whether or not parts are good. The rejects are put into scrap or are re-worked. This assures only quality material reaches the next stage, but it does not address the cause of the failed parts nor does it correct that problem. Office work inspection In another situation, office workers may complete reports only to have their manager reject many of them as unacceptable. Those reports must be re-done until acceptable. Again, the reason for the failures is not addressed, and the rejection rate remains constant. Not a good approach In both cases, sorting out failures can be a wasteful and expensive method to get quality goods. Another thing it does is to accept a certain level of failure. That acceptance subtly creates an atmosphere of accepting failure in all work that is done by the company. Gathering failure information A more effective method to inspect consists of gathering information and using data gained from inspection to control the process and prevent future defects. Statistical Process Control (SPC) is a type of this type of inspection. Inspections at intermediate stages Since work-in-process undergoes many operating steps as it is moved through a manufacturing facility, inspections are often conducted at intermediate stages in the process. The inspections give statistical information necessary to determine the cause of the quality problem, so that it can be prevented in the future. SPC does not aggressively seek to eliminate defects and in some cases changes may be implemented too slowly to be fully effective. White collar examples One example in the office is that the boss may inspect a report at various stages, making corrections. He may then see that perhaps there was a communication problem in stating the requirements that may be rectified. In the office, the engineering manager may monitor the designs of his engineers, making corrections along the way. The engineers learn from his changes and the final design is relatively free of errors. This method of making inspections at intermediate stages is certainly better than waiting until the product in completed to inspect for acceptance or rejection. Inspection by workers

One other inspection method is to have workers inspect the item from the prior operation before proceeding. In this way quality feedback can be given on a much timelier basis. Each operation performs both production and quality inspection. By monitoring where most problems occur in a production line, a quality manager can pinpoint causes whether it is a drunken worker or a defective piece of equipment. In an office environment, there is no individual monitoring the quality of the work, as there often is in a factory. Perhaps there should be. Typically, when a piece of work gets passed from one person to another, informal corrections was told to the pervious worker. Prevent Mistakes with Poka-Yoke

It is cost effective for a company to employ means to prevent errors or mistakes that may cause defective parts to be produced. This also includes preventing the product to be incorrectly used. One assembly-line method is to use a poka-yoke device in the process. Another approach is to make parts and equipment "idiot-proof" so that they may not be used incorrectly. Poka-yoke device Poka-yoke is a simple device or method to prevent mistakes at their source. (Poka-yoke is Japanese for "mistake proofing.") These devices are used either to prevent the special causes that result in defects or to inexpensively inspect each item that is produced to determine whether it is acceptable or defective. Eliminate errors The cause of many defects lies in worker errors. The defects are the results of neglecting those errors. Thus, if you eliminate worker errors, many defects will be eliminated Devices Some examples of using poka-yoke devices are: To make sure an assembler uses three screws by packaging the screws in groups of three. That package is a poka-yoke device. At General Motors, a simple electrical check is made to verify that nuts are properly welded to a sheet metal panel. An airplane pilot may use a simple check list to make sure everything is ready before flying his airplane.

Such simple methods or devices anticipate potential sources of worker error. In such cases, they are often an effective alternative to demands for greater worker diligence and exhortations to "be more careful." Helps before-the-fact inspection Effective poka-yoke devices make before-the-fact inspection more effective by reducing the time and cost of inspection to near zero. Because inspections entail minimal cost, every item may be inspected. Provided that work-in-process inventories are low, quality feedback used to improve the process can be provided very rapidly. Idiot-proof design

Another method to avoid mistakes is to design items so that they can only be assembled in a certain way. They call this an "idiot-proof" design because it does not take much intelligence to put the parts together.

7. Role of TQM in customer satisfaction

Customer is the person or even company that pays for goods or services. The goal in business should be that these customers are satisfied and even delighted with what company had provided them. Satisfying the customers, will results in repeated business and referrals for new business. Dissatisfied customers can result in complaints, returns and negative publicity. This can cause to lose money and have fewer customers in the future. Satisfy or delight When a customer purchases a product or service from the company, that customer expects it to perform as advertised or according to specification. There are also unstated expectations and of performance and reliability. Customer satisfaction or delight is when the product or service exceeds expectations. Benefits of customer satisfaction A satisfied customer will often be a repeat customer. Also, the customer may tell other people and referred them to the business. This means that company is not only having a source of continuous business, but you also will get new business. This can save company money that might be spent on advertising. Repeat business and word-of-mouth advertising are the best ways of maintaining a healthy business. Companies that do business with other companies can also see the benefits of customer satisfaction in establishing long-term business relationships Dissatisfied customers When customers are dissatisfied with the quality of the product or its reliability, they may voice some complaints. In such a case, solve a problem and rectify the situation such that the customer goes away happy. But that type of customer service will cut into the company's profits. The greater problem is that only a small percentage of the dissatisfied customers will complain. But they will tell their friends about their dissatisfaction. It is estimated that an unhappy customer will tell up to 15 other people of their dissatisfaction. This is a considerable amount of negative publicity for the company. This is a major reason some businesses fail. Although a customer may be satisfied with the product received, if the service that comes along with the product is poor, they may hesitate in recommending the business. Timeliness is part of the service is provided to customers. Dealing with Customer Complaints When a customer contacts the company to complain about a product or service received, it can be a blessing in disguise. For every person who complains, there can be hundreds who do not bother to complain but who also spread negative comments about your company. In situations where customer complaints occur, the complaint must be dealt with immediately and the cause of the complaint rectified. Some companies are not concerned with quality and often ignore complaints or deal with them dishonestly. Seeking customer satisfaction benefits a company in the long run.

Dealing with complaints When the customer pays for a product or service, it is assumed that the product will work correctly or that the service received is as promised. Ideally, the customer will be satisfied, and there will be no complaints. If there is a problem and the customer complains about it, your company should quickly answer the complaint and solve the customer's problem. This is often done through the company's customer service activity. But also, it is need to follow up and improve the business processes to rectify the problem. Solve the problem Company need to immediately answer the complaint and solve the problem. It may be to give money back, exchange a product or do some repair. Special bonus To make sure the customer is completely satisfied; some companies will provide some special service or a reduced price on another product. This is done to assure the customer will come back for more business. Many retail stores have a generous return policy to satisfy dissatisfied customers. Dishonest customers Unfortunately, there are dishonest customers who will make false claims to get some bonus. Some people will use a product or piece of clothing and then return it, saying they weren't satisfied. High-end women's clothing stores often will have expensive gowns returned after some important event. The clothes have obviously been worn, but the customer says she is not satisfied or has changed her mind. Usually, the store will refund the money. Since it is often difficult to tell if the complaint is valid or not, the company will follow the adage, "The customer is always right." But since some dishonest people repeat their crimes, a better adage is, "The customer is always right... once." Price in customer service When a company sells a product or provides a service, part of the pricing should include the cost of servicing a certain percentage of defective products or complaints. Rectify problem The second thing a company should do upon receiving a complaint is to seek to rectify the problem. Although a company hopes not to get complaints, they often can be blessing in disguise. Sometimes problems can be caught and fixed before they cause serious negative feedback or even legal problems. It is in the company's best interest to solve any problems and try to make sure that they don't happen again. It is foolish for a company not to use customer complaints to initiate a corrective action. Not dealing with complaints

Businesses that don't bother about satisfying their customers usually get more customer complaints. Answering them can, of course, cost the company money. Some companies will try to mollify angry customers but many don't even bother. The company goal should be to get no complaints at all.

8. Case study.
Getting products - case study A book keeper has formed alliances with his suppliers, such that he is able to purchase goods at a discount that his competitors cannot achieve. The result is that book keeper is able to offer products at such low prices that have actually driven many competitors out of business. Quality control case study

A casting company producing of titanium investment casting uses TQM environment for their production and the companys performance is analyzed by using one of the TQM tool i.e., Pareto Principle as shown below

The left vertical axis is the frequency of occurrence, but it can alternatively represent cost or other important unit of measure. The right vertical axis is the cumulative percentage of the total number of occurrences, total cost, or total of the particular unit of measure. Because the reasons are in decreasing order, the cumulative function is a concave function.

Daily activities case study

Simple example of a Pareto chart using hypothetical data showing the relative frequency of reasons for arriving late at work.

9. CONCLUSION

TQM is a quality related program supposed to reach only up to the expected quality curve. The major portion of satisfaction of the customer would come from surprise improvements in the products/services. However, despite some of these plausible limitations, TQM should be hugely credited for bringing the customer sharply in focus, for cleaning up the organisation and for instilling positive culture and values from which the organisation can draw sustenance for a long time to come. By this paper we are recommending for implementing a TQM technique in production as well as in other departments too, for getting good results and reducing the rejection and there by developing the company to a top most position in market.

10. References

The Tools of Quality; Quality Progress, Nov 1990; J T Burr. Industrial Management and Entrepreneurship R M VAITLA & M .M. SHARIEF The Tools of Quality; Quality Progress, Aug 1990; P D Shainin. Sarazen, JS. The Tools of Quality; Quality Progress, July 1990. Production Systems; J L Riggs, Wiley, 1987. Production/Operations management; Terry Hill, PHI, 1983. The Tools of Quality; Quality Progress, Sept 1990; The Juran Institute Production and Operations Management S N CHARY Management Science by A R ARYASRI