Group Members:

Swapna Krishnamurthy Sweety Pancholi Sneha Subramanian Sanket Sameer Kode

WHAT IS TQM?
TQM is an integrated organizational approach in delighting customers (both external and internal) by meeting their expectations on a continuous basis through everyone involved with the organizational working on continuous improvement in all products/processes along with proper problem solving methodology.

TO DELIVER HIGHEST VALUE AT LOWEST COST is the main objective of TQM

Significance of the term TQM

Total - The responsibility for achieving Quality rests with everyone a business no matter what their function. It recognizes the necessity to develop processes across the business, that together lead to the reliable delivery of exact, agreed customer requirements. This will achieve the most competitive cost position and a higher return on investment. Quality - The prime task of any business is to understand the needs of the customer, then deliver the product or service at the agreed time, place and price, on every occasion. This will retain current customers, assist in acquiring new ones and lead to a subsequent increase in market share.

Management - Top management lead the drive to achieve quality for customers, by communicating the business vision and values to all employees; ensuring the right business processes are in place; introducing and maintaining a continuous improvement culture.

Why Quality?
Reasons for quality becoming a cardinal priority for most organizations: Competition Todays market demand high quality products at low cost. Having `high quality reputation is not enough! Internal cost of maintaining the reputation should be less. Changing customer The new customer is not only commanding priority based on volume but is more demanding about the quality system. Changing product mix The shift from low volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality.

Quality perspectives
Judgmental perspective goodness of a product. Shewharts transcendental definition of quality absolute and universally recognizable, a mark of uncompromising standards and high achievement. Examples of products attributing to this image: Rolex watches, Lexus cars. Product-based perspective function of a specific, measurable variable and that differences in quality reflect differences in quantity of some product attributes. Example: Quality and price perceived relationship

Quality perspectives
User-based perspective fitness for intended use. Individuals have different needs and wants, and hence different quality standards. Example Nissan offering dud models in US markets under the brand name Datson which the US customer didnt prefer. Value-based perspective quality product is the one that is as useful as competing products and is sold at a lesser price. US auto market Incentives offered by the Big Three are perceived to be compensation for lower quality. Manufacturing-based perspective the desirable outcome of a engineering and manufacturing practice, or conformance to specification. Engineering specifications are the key! Example: Coca-cola quality is about manufacturing a product that people can depend on every time they reach for it.

Quality levels
At organizational level, we need to ask following questions: Which products and services meet your expectations? Which products and services you need that you are not currently receiving? At process level, we need to ask: What products and services are most important to the external customer? What processes produce those products and services? What are the key inputs to those processes? Which processes have most significant effects on the organizations performance standards? At the individual job level, we should ask: What is required by the customer? How can the requirements be measured? What is the specific standard for each measure?

Scope of TQM
TQM is the foundation for activities, which includes: Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time/ Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.

TQM focuses on:1) Customer satisfaction 2) Leadership 3) Quality policy 4) Organizational structure 5) Training for TQM 6) Quality cost 7) Supplier selection and development 8) Employee involvement 9) Quality Circles 10) Recognition and reward

Total Quality Management

Doing things right.. .FIRST time.

1) Customer Satisfaction Quality is what customer wants Effective customer feedback and employee feedback mechanism 2) Leadership Identify and encourage potential Accept the responsibility To play role model Remove roadblocks

3) Quality Policy and Mission Statement Should be definite, clear and easily understood by the whole organization Should be well written and documented Should provide rallying point, uniting people towards achievement of total quality Should be communicated properly to one and all in the organization

4) Organizational Structure

FACILITATOR
TQM PROMOTION

COMMITTEE

OR CORRECTIVE ACTION TEAMS

QUALITY STEERING COMITEE

QUALITY IMPROVEMENT TEAMS

5) Training For TQM Fundamentals of TQM taught from top to bottom 6) Cost Of Quality 7) Supplier Selection And Development Quality depends on quality of purchased product 8) Employee Involvement Participation and Teamwork 9) Quality Circles-Conceived by Dr. Kaoru Ishikawa in 1961 Optimum size of 7-8 members, membership strictly voluntary Problem identification, selection, analysis, solution formation, management presentation and approval 10) Recognition and reward

Five Principles of TQM

Produce quality work the first time. Focus on the customer.

Have a strategic approach to improvement.

Improve continuously. Encourage mutual respect and teamwork.

Advantages of TQM
Helps to focus clearly on the needs of the market Facilitate to aspire for top quality performer Channelizes the procedures necessary to achieve quality performance Helps examine critically and continuously all processes to remove non-productive activities and waste Gears organization to fully understand the competition and develop an effective combating strategy Helps develop good procedures for communication Helps revive the process needed to develop the strategy of never ending improvement

TANGIBLE GAINS
Better product quality Productivity improvement Reduced quality costs Increased market Increased profitability Reduced employee grievances

INTANGIBILE GAINS
Effective team work Enhancement of job interest Improvement in human relations and work area morale Participative culture Customer satisfaction Improved communication Enhanced problem-solving capacity Improved corporate health and character of company Better company image

Quality Management Awards and Framework

Deming Prize (Japan) ISO 9000: 2000 certification
Malcolm Baldrige National Quality Award (MBNQA) (United States) Six Sigma

The Deming philosophy

A System of Profound Knowledge 1. Appreciation for a system - A system is a set of functions or activities within an organization that work together to achieve organizational goals. Managements job is to optimize the system. (not parts of system, but the whole!). System requires co-operation. 2. Psychology The designers and implementers of decisions are people. Hence understanding their psychology is important. 3. Understanding process variation A production process contains many sources of variation. Reduction in variation improves quality. Two types of variations- common causes and special causes. Focus on the special causes. Common causes can be reduced only by change of technology. 4. Theory of knowledge Management decisions should be driven by facts, data and justifiable theories. Dont follow the managements fads!

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 collected and documented. Study Determine whether the trial plan is working correctly by evaluating the results. Act Improvements are standardized and final plan is implemented. Variation of PDSA cycle: FADE Focus, Analyze, Develop, Execute cycle!
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The Juran philosophy

Quality Trilogy 1. Quality planning: Process of preparing to meet quality goals. Involves understanding customer needs and developing product features. 2. Quality control: Process of meeting quality goals during operations. Control parameters. Measuring the deviation and taking action. 3. Quality improvement: Process for breaking through to unprecedented levels of performance. Identify areas of improvement and get the right people to bring about the change.

ISO 9000: 2000

Defines quality systems standards based on the premise that certain generic characteristics of management principles can be standardized. And that a well-designed, well-implemented and well managed quality system provides confidence that outputs will meet customer expectations and requirements. Standards are recognized by 100 countries including Japan and USA. Intended to apply to all types of businesses. (Recently, B2B firm bestroute.com became the first e-commerce company to get ISO certification.)

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ISO 9000: 2000

Created to meet five objectives: 1. Achieve, maintain, and seek to continuously improve product quality in relation to the requirements. 2. Improve the quality of operations to continually meet customers and stakeholders needs. 3. Provide confidence to internal management that quality requirements are being met. 4. Provide confidence to the customers that quality requirements are being met. 5. Provide confidence that quality system requirements are fulfilled.

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ISO 9000: 2000 Quality Management Principles

Principle 1: Customer Focus Principle 2: Leadership Principle 3: Involvement of people Principle 4: Process approach Principle 5: Systems approach for management Principle 6: Continual improvement Principle 7: Factual approach to decision making Principle 8: Mutually beneficial supplier relationships.
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The integrated framework of the Baldrige Award criteria

Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)

Six Sigma
Business improvement approach that seeks to find and eliminate causes of defects and errors in processes by focusing on outputs that are critical to customers. The term Six Sigma is based on a statistical measure that equates 3.4 or fewer errors or defects per million opportunities. Motorola pioneered the concept of Six Sigma. The late Bill Smith, a reliability engineer is credited with conceiving the idea of Six Sigma. GE (specifically CEO Jack Welch) extensively promoted it.
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Six Sigma
Core philosophy based on key concepts: Think in terms of key business processes and customer requirements with focus on strategic objectives. Focus on corporate sponsors responsible for championing projects. Emphasize quantifiable measures such as defects per million opportunities (dpmo). Ensure appropriate metrics is identified to maintain accountability. Provide extensive training. Create highly qualified process improvement experts belts. Set stretch objectives for improvement.
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Contrasts between traditional TQM and Six Sigma (SS) TQM is based largely on worker empowerment and teams; SS is owned by business leader champions. TQM is process based; SS projects are truly crossfunctional. TQM training is generally limited to simple improvements tools and concepts; SS is more rigorous with advanced statistical methods. TQM has little emphasis on financial accountability; SS requires verifiable return on investment and focus on bottom line.

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TQM & organizational Cultural Change

Traditional Approach Lack of communication TQM

Open communications
Empowerment Prevention

Control of staff
Inspection & fire fighting Internal focus on rule

External focus on customer

Continuous improvement Co-operative relations

Stability seeking
Adversarial relations Allocating blame

Solving problems at their roots

Conclusion
In a nutshell, TQM will increase productivity, will eliminate wastes, reduce non-conformances, optimize costs, increase the profitability , will enrich the employees life and will help the industry to meet its societal obligation. Total Quality Management is a marathon and not a sprint

Your TQM Questions Please???