TQM is a way of managing an organization with the objective of carrying out right jobs right- the first time

and every time. Thumb rule called 85/15 Rule in Quality Management 85 per cent root causes of problems are due to faulty systems 15 per cent are a result of the behavior of employee.

TM is the most important agent for correcting a faulty system and enabling TQM. TQM-based style of management have been well awarded. The TQM based leadership put companies far ahead of their competitors in terms of: sales, profits, and employee morale Effective leadership for TQM involves everyone in value adding tasks.

Senior Management should firmly believe that TQM is the only way to do business and manage the organization and that TQM would lead the organization to prosperity in the long run. Unless the TM believes in TQM, there is no way to implement the TQM in an organization.

TM should also have faith in the following to build quality values: Customers are the only reason for being in the business, hence they must be delighted Zero defect is possible Teamwork results in a win-win situation CEO has to lead the quality movement Proper communication is essential Continuous improvement is needed in the process

TQM is the right model to manage organizations since it assures the highest return on investment. After thorough analysis of the pros and cons It calls for hard work on the part of management Should be prepared to invest time and money in training employees. If TQM is to be practiced they should be prepared to run a transparent organization.

Before presenting the idea to the employees, the TM should be: understanding, discussing, consulting, analyzing, and exploring all the actions needed before deciding whether to practice TQM or not. If the TM has the slightest inclination not to get into TQM, then it is not the right time to get into it. Only if TM is ready for change and personal change.

TQM is the modern management concept and is the only road to consistent growth of organization as well as survival in a competitive environment, since all options have failed.

DEFINITION OF TQM ISO 9000

It is a management approach of an
organization, centered on a quality, based on the participation of all its members and aiming at long term success through customer satisfaction and benefits to the members of the organization and to the society.

DEFINITION OF TQM A detailed analysis of the definition of TQM is essential to avoid misunderstanding. Led by CEO Involvement of employees in the continuous process is one of its goals. Every member of the org should understand and practice TQM

DEFINITION OF TQM Other concepts are centered on profit making, TQM is centered in Quality It means long term Customer satisfaction Strong persistent leadership Training of all members Should be the basis of all activities

DEFINITION OF TQM Aims at continuous improvement It is also called Total Quality Control or CWQC Other Definition: Management philosophy and organization practices that aim to harness the human and material resources of an org in the most effective way to achieve its goals

OTHER NAMES OF TQM

Continuous quality improvement Total quality Total business management Organization wide quality control Cost effective quality management

Elements of TQM
Constancy of Purpose/ Long-term Commitment

Training
Total Employee Involvement/ Teamwork

Focus on Process
Quantitative Methods

TQM

Leadership

Continuous Process Improvement

Customer Focus

Supplier Partnership

LEADERSHIP FOR TQM When we pursue the teachings of quality gurus, we gather that the higher echelons of management has an important role to play for TQM to be implemented. The management is solely responsible for selecting people, forming teams, providing resources and establishing the system.

LEADERSHIP FOR TQM Crosby senior management is 100 per cent responsible for the problem of quality and its continuance. Harrington- between 70 and 85 per cent of all errors can only be corrected by management. Thus, it is important that TM understands TQM and leads the organization through the TQM journey.

DEMINGS 14 POINTS FOR MANAGEMENT

1. Create Constancy of Purpose for Improvement of Products & Services Believe that the business will continue Long term success Invest in research for innovations Train employees Reiterate their intention to practice TQM and improve products and services

DEMINGS 14 POINTS FOR MANAGEMENT 2. Adapt the New Philosophy Practice the Japanese CWQC, which was renamed as TQM. The new philosophy means, Just-in-Time (JIT) manufacturing is possible with zero defects. Adopt all 14 points to result in long term success through the implementation of TQM in the Organization.

DEMINGS 14 POINTS FOR MANAGEMENT

3. Cease Dependence on Mass Inspection Doing things right and doing it right the first time would reduce dependence on inspection, in fact it would be eliminated. TQM is aimed at eliminating inspection in the long run through prevention.

DEMINGS 14 POINTS FOR MANAGEMENT 4. End the Practice of Awarding Business on the Basis of Price Tag Alone This point addresses supplier relationship. 4 Parameters In Selecting Suppliers Quality Price Delivery Service

DEMINGS 14 POINTS FOR MANAGEMENT 5. Constantly Improve the System of Production and Services The processes need continuous improvement, KAIZEN. Products and services improve continuously. The very purpose of TQM is the constant improvement of the system for product and services

DEMINGS 14 POINTS FOR MANAGEMENT 6. Institute Training The abilities of employees should be improved and harnessed only through training. Deming- Management needs training to learn about the organization, all the way from incoming material to the customer. Today every Japanese employee: 6 weeks of training every year

DEMINGS 14 POINTS FOR MANAGEMENT

7. Adopt And Institute Leadership

Leader
.

Manager

Proactive Coaches Understand process

Reactive Finds fault Doesnt care to understand Moves around Sits in his chair Improves process Maintains process Communicates frequently Communicates rarely Seeks Suggestions Questions

DEMINGS 14 POINTS FOR MANAGEMENT 8. Drive Out Fear Employees should be encouraged to suggest improvements and new ideas, ask questions about the existing process, etc. If freedom to express new ideas is curtailed, then the employees will continue to do what they are doing. Fear is detriment to improvement process.

DEMINGS 14 POINTS FOR MANAGEMENT

9. Break Down Barriers Staff Area Quite often, the various teams in the organization stop communicating with each other. The teams over the years become watertight compartments. Every team may prove that is the best. But the organization as a whole may be doing poorly due to lack of communications between teams.

DEMINGS 14 POINTS FOR MANAGEMENT 10. Eliminate Slogans, Exhortations and Targets for the Work Force
The posters are directed to workers and they only generate frustrations and resentment. The best strategy for improvement is to correct defects in the systems not slogans or fosters.

DEMINGS 14 POINTS FOR MANAGEMENT 11. (a) Eliminate Numerical Quota for the Work Force Workers should not focus on the quantity. It should be on standards for quality of workmanship. (b) Eliminate Numerical Goals for People in Management Setting goals without necessary wherewithal does not work.

DEMINGS 14 POINTS FOR MANAGEMENT 12. Remove Barriers that Rob People of Pride of Workmanship Establish the right processes and a proper system for quality management. If the work is carried out correctly, it gives pride to those who did. Remove barriers that rob managers and workers their pride of workmanship.
(responsibility of management)

DEMINGS 14 POINTS FOR MANAGEMENT 13. Encourage Education and Selfimprovement for Every One Encourage employees to pursue higher education and training while in service. It will improve skills and updates knowledge. It will improve ability which be beneficial to the organization.

DEMINGS 14 POINTS FOR MANAGEMENT 14. Take Action to Accomplish the Transformation The TM should understand the 13 points and then enable their employees to understand them. They should interpret the 13 points and educate their employees appropriately.

TEN STRATEGIES FOR TOP MANAGEMENT

1. PROACTIVE

MANAGEMENT

The leaders have to be proactive. To foresee what will happen in the future and take advance action to prevent the occurrence of the problems as prevention is better than cure.

1. PROACTIVE

MANAGEMENT

Proactive management needs proper system so that the problem can be identified before occurring. -system in order -roles and responsibilities are clear -organization structure is in place -procedures set -system of recording

1. PROACTIVE

MANAGEMENT

TQM calls for Proactive Management Inspite of best efforts, if an error has occurred, then corrective action has to be taken after an analysis so that such errors are not repeated. Take preventive action so that mistakes do not occur. Quality can be improved only through prevention

1. PROACTIVE

MANAGEMENT

The corrective action resulting out of failure is only post-mortem. This will affect someone. Preventive action enables achieving the organizations goals without hurting anybody. Take preventive action to save the organization from disaster.

2. Adventurous and Bold Change Management Nobody likes change. Human beings by their nature resist change, even if a change is going to make them much more comfortable, they may not agree to it straightaway. Changing anything is a difficult task and requires tactful handling.

2. Adventurous and Bold Change Management Change is essential. An organization cannot progress without change. It has to continuously change for better. There should be an on-going rethinking and restructuring of the organization so that the organization is receptive to the needs of the customers.

2. Adventurous and Bold Change Management Be adventurous Take the challenges and grown beyond expectations. This calls for adventurous decisionmaking and high self-esteem. They should visualize the improvements needed and make every effort to achieve it. Only ambition can lead to success.

2. Adventurous and Bold Change Management Be Bold Self-confidence and self-esteem It is very essential for making bold decisions for improvement, based upon the study or analysis of the current practices and system in the organization. It is the basic requirement for making an efficient organization.

2. Adventurous and Bold Change Management Role of CEO It depends on the personal qualities of the CEO. Should support innovative change management initiated by his employees. Should motivate and encourage people to change the unproductive ways of the organization.

2. Adventurous and Bold Change Management Should give confidence and support till the successful completion of the initiative. Tom Peter- knowing when to retreat is as important as knowing when to advance. Monitor what is happening and ensure that it is right direction.

3. DIRFT-Do it Right First Time

Take Right Decisions Before making every business decision, the leaders should carry out the following sequence of activities: Plan the decision-weigh the pros & cons Foresee the impact to the organization Take opinion of the right people Involve the concerned Implement persist

3. DIRFT-Do it Right First Time

Why people dont do it right the first time? The employees does not know what to do clearly, leave alone how to do If he knows how to do, he is not motivated enough to do it right the first time He may not have the tools to do a good job

3. DIRFT-Do it Right First Time

He does not have necessary education or training to know DIRFT Probably his seniors have trained him to do wrong way He is not proud of the job he is doing He does not get appreciated when he does it right Not doing it right first time is going to cause hassles to every stakeholders.

3. DIRFT-Do it Right First Time

Problems of not doing it right In some cases, not doing it right the first time may result in not doing it right ever, thereafter Leads to unnecessary expenditure Increases the failure costs Demotivates employees Causes hassles to employees and customers Brings down reputation of the org

3. DIRFT-Do it Right First Time

Leads to schedule slippages Increases scraps leading to more cost on account of storage, accounting, disposal, etc. Forces the organizations to buy additional components to take care of defects in the process. The productivity gets affected

Basic Requirements for DIRFT Philip Crosby has suggested three simple requirements for DIRFT: 1.Define the requirement for each employees 2.Provide the wherewithal to achieve the requirement 3.Keep on motivating and encouraging the employees

Basic Requirements for DIRFT Right the First time and Every Time- They have to consistently look for improvements and should preventing errors, defects etc. Set the Right Goals- The goals should be appropriate so that the whole company prospers. Select the Right Personnel- It aims at selecting the right personnel for the right job

Basic Requirements for DIRFT Establish Right Processes- The Company should invest time, energy, money etc. for commissioning the right process. Choose Durable Raw Materials- It should be ensured that the vendors supply good raw materials which doesnt call for an inspection. Choose Right Machinery- It should be selected properly so that the production can start from day one.

4. Continuous

Preventive Action

Corrective Action is a Pos Mortem (To prevent recurrence) - are implemented in response to a customer complaint, abnormal levels of internal nonconformity.

Prevention is Better than Cure (To prevent occurrence) - The focus for preventive actions is to avoid creating nonconformance, but also commonly includes improvements in efficiency.

4. Continuous Preventive Action

One Shot Prevention is not Good Enough preventive actions have to be continuous and should cut across all sections in the organizations. It should be taken at periodic intervals.

5. Care for Little Things & Accumulate Gains

TQM is a continuous process improvement program and aims at one step at a time. Caring for Small Things
Communicate with Junior Employees Keep on Accumulating

6. Ensure Economic Performance

Importance of Economic Performance

Quality should Increase Productivity Talk about Performance success in Economic

Stakeholders will Understand Economics Better

7. Management Around (MBWA)

by

Walking

It is a concept that is established by Tom Peters. It is identified as one of the effective tools of management and leadership for the growth of the organization. It is defined as the unannounced visit of CEO to the various work spots

7. Management

by Walking Around

(MBWA)
Three Major Things / Activities done by a CEO in an (Management by walking Around) MBWA: Listening Teaching Facilitating

7. Management

by Walking Around

(MBWA)
Other Things that CEO do in MBWA: The CEO should not give an impression that he is taking over the project from the employees or the supervisors. The CEO should be a stimulator, motivator, and a logical thinker and should help the employees to overcome their bottlenecks.

7.

Management Around (MBWA)

by

Walking

Barriers to Practicing MBWA MBWA (Management by Walking Around) violates the Chain of Command.

Advantages of MBWA
Helps the organization to consolidate the talents, wisdom of all the employees, customers and suppliers.

8. Measure for Success

Involves, looking for measuring and analyzing the feedback from customers either INTERNAL or EXTERNAL. with the help of TQM, it has to make efforts to measure how well the organization is performing in terms of fulfilling the customers needs and expectations. Management should help their employees to know how well they are doing.

The measurement should cut only for the Process Personnel Product

Product

Process

Personnel

PDSA for Measurement

Popularized by Deming It is an important tool for any activity. It is use for measuring success, since it is tricky affair and if not carried out systematically can lead to wrong conclusions and costly mistakes.

4 Phases of PDSA
1. Plan for Measuring Success (Planning Stage) The organization should identify the various measures for success. In Service Organization, it is very difficult to identify the measures. It has to first identify what measures could be adopted to determine the quality of service delivered. All measures need not be totally objective, but could be also subjective in service organization. In Manufacturing Organization, the quality of the final product is the most measured.

 Experienced personnel in the field would be able to suggest appropriate measures. The employees themselves could identify measures so that it would find easy acceptance by the employees later at the time of measurements as well as analyzing and concluding. Such measures identified should be placed before the quality council for a thorough discussion.

Quality Council
could nominate a set of employees to carry out brainstorming of ideas and prioritize the same. can finalize the measures for success in the organization. too many measures will complicate the measurement process and may lead to unnecessary expenditure.

PARETO ANALYSIS May be helpful identifying a few vital

measures.

2. The Do Phrase of Measuring (Do Stage) The identified measurements should be carried out on trial basis with direction from the quality council. The SENIOR executives should educate the JUNIOR employees about the intent of the measures. The involvement of employees in the identification and describing the measures is thus helpful to overcome resistance from employees.

3. Study Phase of Measurement (Study Stage) The organization should experiment with the proposed measures for about 2-3 months. After 3 months, the quality council should meet again to take stock of the situation, they should discuss and see whether they need to carry out any changes in the measures. The quality council could check the effectiveness of the measures, the methods of measurement and the relationships of the measures with actual customers satisfaction achieved.

4. The Act Phase of Measurement (Act Stage) The measures and methods of measurements are confirmed. The organization starts making measurements. Results of the measurements of various parameters could be studied at regular intervals, analyzed and communicated to the employees. Measure for Success is a continuing activity.

9. Never Rest on Past Laurels,

Continue to Improve
The tale of tortoise and Rabbit

Teaches us that one should never rest on past laurels, but continue to improve. It is important to learn from the story that since rabbit was resting on its laurels and past glory, it relaxed and lost the race.

The Need to Improve Continuously An organization should aim at doubling the turnover every 2 years, without additional manpower or machinery. Many organization have achieved such growth rates. 2 FACTORS that can achieve growth rate: 1. Cutting down the costs by DOING RIGHT THINGS, RIGHT THE FIRST TIME. 2. A higher output of the motivated employees through extensive training.

The productivity of the employees can further grow due to improvement in the following: 1. Improved system in the organization due to management based on TQM. 2. Gaining more confidence due to achieving success 3. Accumulation of the right experience and hence cutting down lead time for jobs 4. Enhance productivity due to improvement in teamwork 5. Empowered employees expanding output due to enthusiasm and motivation

10. Build a Virtual Organization

Is more on manufacturing industry Creates a virtual corporation which is a smarter way of doing business. This has been found to be highly effective and profitable. VERTICAL INTEGRATION - means sub-units, components/materials, fixtures etc. needed for manufacturing a product are all manufactured by the same organization

2 extremes of Manufacturing

1st

Everything from the raw materials to the final product is manufactured under one roof.

2nd Buying

everything from others and putting them together and selling the assembled product.

Requirements for Virtual Enterprise a. Identify the most critical part/s- the first tasks is to identify the most critical parts of a system to be manufactures. The critical parts should be vital few from the many trivial parts, which are core or the nucleus for the product or service. b. Identify the other parts- identify the other materials which will enable delivering a product or service. It should do a market survey and identify all those suppliers who can deliver them with quality and at competitive prices.

c. Develop/ identify vendors from other parts- It is

very important to concentrate on developing good vendors, rather than trying to carry out vertical integration. Developing vendors and buying from vendors is definitely cheaper than making them all under one roof, due to specialization and bulk manufacture and thereby reduced costs. d. Continuously increase sub-contracting- The organization should try to sub-contract more and more items, retaining the core of the time, energy, money and infrastructure to do better in business day by day.