Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
BITS Pilani
Hyderabad Campus
BITS Pilani
Hyderabad Campus
Introduction
Contents
Introduction Define Quality and Quality perspectives Need and Awareness
Course Overview
Introduction
TQM is both a philosophy and a set of guiding principles for continuously improving the organization ...is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future.
Introduction contd.,
It is an enhancement to the traditional way of doing business It is a proven technique which guarantee a survival in the competitive world, if implemented properly TQM stands for Total - Made up of the whole Quality - degree of excellence a product or service provides Management - Act, art or manner of planning, controlling, directing,. Therefore, TQM is the art of managing the whole to achieve excellence. TQM relies on common sense.
7 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
What is quality?
Some definitions that have gained wide acceptance in various organizations: Quality is customer satisfaction, Quality is Fitness for Use. The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as: The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.
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: Sony Bravia and Sansui 21 inch color televisions.
9 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
11
Need contd.,
Product complexity As systems have become more complex, the reliability requirements for suppliers of components have become more stringent. Higher levels of customer satisfaction Higher customers expectations are getting spawned by increasing competition. Relatively simpler approaches to quality viz. product inspection for quality control and incorporation of internal cost of poor quality into the selling price, might not work for todays complex market environment.
17 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
Awareness
An organization will not begin TQM until it is aware that quality of product/service has to be improved Awareness comes When organization starts losing market share Managers begin to understand quality and productivity go hand in hand It is thrust upon by the customer Management understand that it is a better way to do business Automation alone cannot increase profit/growth, if the quality of product is poor
18 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
Awareness contd.,
Quality and productivity are not mutually exclusive, rather they are related Increase in quality level lead to increase in productivity TQM cannot happen overnight. It takes a long time and at least 4 to 5 years is required to establish it in an organization During those time, short term profits and results should not be focused rather a long term planning and constancy of purpose should be maintained.
19 MM ZG522 - Total Quality Management
Previous Approach
Product-oriented
2nd to service and cost
TQM Approach
Customer-oriented
Equals of service and cost
Short-term
Detection Operations Quality control Managers Price Plan, assign, control, and enforce
Long-term
Prevention System Everyone Teams Life-cycle costs,partnership Delegate, coach, facilitate and mentor
20
Gurus of Quality
Walter Shewhart Father of Statistical Process Control (SPC) Worked at Western Electric and Bell Laboratories Limited Developed the control chart theory based on the concept of special causes and common causes Deming Spread SPC and quality to the leading CEOs of Japan Provided the foundation for Japans quality miracle Developed the 14 points for quality improvement, which formed the basis of ISO 9000, QS 9000 and other quality systems
21 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
24
History contd.,
Statistical approaches to quality control started at Western Electric with the separation of inspection division. Pioneers like Walter Shewhart, George Edwards, W. Edwards Deming and Joseph M. Juran were all employees of Western Electric. After World War II, under General MacArthur's Japan rebuilding plan, Deming and Juran went to Japan. Japanese were badly defeated in World War II. Their industrial and financial bases were in chaos. Japan had no natural resource and limited source of food for their people.
26 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
History contd.,
The quality movement began in Japan in 1946 with the U.S. Occupation Force's mission to revive and restructure Japan's communications equipment industry. Deming was invited by the Union of Japanese Scientists and Engineers to Japan in 1947. In 1954, Joseph Juran of the USA raised the level of quality management from factory to the total organization in Japan. Deming and Juran introduced SPC to Japanese industry. The difference between approaches to quality in USA and Japan: Deming and Juran were able to convince the top managers the importance of quality.
27 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
History contd.,
Next 20 odd years, when top managers in USA focused on marketing, production quantity and financial performance, Japanese managers improved quality at an unprecedented rate. Market started preferring Japanese products and American companies suffered immensely. America woke up to the quality revolution in early 1980s. Ford Motor Company consulted Dr. Deming to help transform its operations. (By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese government had instituted The Deming Prize for Quality in 1950.)
28 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
History contd.,
Managers started to realize that quality of management is more important than management of quality. Birth of the term Total Quality Management (TQM). TQM Integration of quality principles into organizations management systems. Early 1990s: Quality management principles started finding their way in service industry. FedEx, The RitzCarton Hotel Company were the quality leaders. TQM recognized worldwide: Countries like Korea, India, Spain and Brazil are mounting efforts to increase quality awareness.
29 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
Obstacles contd.,
Inability to change organization culture
Changing the organization culture is very difficult Individual must change- but they are accustomed to one particular way of performing and prefers that way only Management must understand the following People change only when their own needs are met For change to be accepted, people should be moved from a state of fear to trust Individuals cannot change easily and naturally, the organization also change its culture easily Lack of effective communication and emphasis on short term results also prevent cultural change
31 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
Obstacles contd.,
Paying inadequate attention to internal and external customers Organization needs to understand the changing needs of customers Effective feedback mechanism is necessary Inadequate use of empowerment and teams Team needs to have proper training and a facilitator Teams recommendations should be followed Individuals should be empowered to make decisions Failure to continually improve Lack of continuous improvement of product/services will even make the leader to be behind the competition
32 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
Obstacles contd.,
Lack of continuous training and education Training and education is an ongoing process Needs must be identified and plan must be made for achieving that need Senior management must conduct the training to explain about the principles of TQM Lack of training on group discussions and communication, quality improvement skills, problems solving skills etc. affect implementation
33
Obstacles contd.,
Incompatible organization structure Differences between departments and individuals can create problems Use of multi-functional team is required to resolve this problem Individuals who do not embrace the new philosophy should be made to leave the organization
34
Benefits of TQM
Improved profitability and market share Customer satisfaction Product quality Less waste and rework Higher profits Improved communication Employee involvement Training Teamwork Employee satisfaction
35 MM ZG522 - Total Quality Management
BITS Pilani, Hyderabad Campus
36
Summing Up
Introduction Define Quality and Quality perspectives Need and Awareness