INTRODUCTION

Competition is getting harder and becoming

global. Companies now have to be more responsive,
offer a better product and keep improving. Total
quality management (TQM) increases customer
satisfaction by boosting quality. It does this by
motivating the workforce and improving the way the
company operates. In an increasingly competitive
market, firms with a continuous improvement culture
and external focus are more likely to survive and
prosper. TQM is considered an important
catalyst in this context.
WHAT IS TOTAL QUALITY
MANAGEMENT ?
TQM is an approach to improving the effectiveness and flexibilities of
business as a whole. It is essentially a way of organizing and involving the
whole organization, every department, every activity and every single person at
every level. TQM ensures that the management adopts a strategic overview of
the quality and focuses on prevention rather than inspection.
OBJECTIVES OF TQM

• Meeting the customer's requirements is the primary objective

and the key to organizational survival and growth.

• The second objective of TQM is continuous improvement of

quality. The management should stimulate the employees in
becoming increasingly competent and creative.

• Third, TQM aims at developing the relationship of openness and

trust among the employees at all levels in the organisation.
SIGNIFICANCE OF TQM

The importance of TQM lies in the fact that it encourages innovation,

makes the organization adaptable to change, motivates people for better
quality, and integrates the business arising out of a common purpose and all
these provide the organization with a valuable and distinctive competitive
edge.
ELEMENTS OF
TQM
• Be customer focused
It requires the company to check customers' attitudes regularly and includes
the idea of internal customers as well as external ones.

• Do it right the first time

This means avoiding rework, i.e., cutting the amount of defective work.
• Constantly improve
Continuous improvement allows the company gradually
to get better.

• Quality is an attitude
Every one has to be committed to quality. That means
changing the attitude of the entire workforce, and
altering the way the company operates.

• Telling staff what is going on

This involves improved communication. Typically, it
includes team briefing.
• Educate and train people
An unskilled workforce makes mistakes. Giving more skills
to workers means they can do a wider range of jobs, and do
them better. It also means educating staff in the principles
of TQM, which is a whole new style of working.

• Measure the work.

Measurement allows the company to make decisions based
on facts, not opinion. It helps to maintain standards and
keep processes within the agreed tolerances.

• Top management must be involved

If senior management is not involved, the programme will
fail.
• Make it a good place to work
Many companies are full of fear. Staffs are afraid of the
sack, their boss and making mistakes. There is no point in
running a TQM program unless the company drives out
fear.

• Introduce team work

Team work boosts employees' morale. It reduces conflict
and solves problem by hitting them with a wider range of
skills. It pushes authority and responsibility downwards and
provides better, more balanced solutions.

• Organize by process, not by function

This element of TQM seeks to reduce the barriers that
exist between different departments, and concentrates on
getting the product to the customer.
 Reasons for FAILURE

TQM fails because:

• Top management sees no reason for change.

• Top management is not concerned for its staff.

• Top management is not committed to the TQM

programme.

• The company loses interest in the programme after six

months.
• The workforce and the management do not agree on
what needs to happen.

• Urgent problems intervene.

• TQM is imposed on the workforce, which does not

inwardly accept it.

• No performance measure or targets are set, so progress

cannot be measured.

• Processes are not analyzed, systems are weak and

procedures are not written down.
Six Sigma
 Introduction
❑Six Sigma is a set of techniques, and tools for process
improvement. It was developed by Motorola in 1986.

❑ Sir Bill Smith, “ the Father of six sigma” introduce this quality
improvement Methodology to Motorola.

❑ Six Sigma is now an enormous 'brand' in the world of corporate

development.
 History

❑Since the 1920's the word “sigma”(s) has been used by

mathematicians and engineers as a symbol for a unit of
Measurement in product quality variation.

❑In the mid-1980's engineers in Motorola in the USA used

“Six Sigma”(S) an informal name for an in-house initiative for reducing
defects in production processes, because it represented a suitably high
level of quality.
❑In 1995, Six Sigma became well known after Mr. Jack Welch made
it a central focus of his business strategy at General Electric, and
today it is used in different sectors of industry.
(General Electric, or GE, is an American multinational conglomerate
corporation incorporated in New York )

❑By the year 2000, Six Sigma was effectively established as

an industry in its own right, involving the training, consultancy and
implementation of Six Sigma methodology.
 Definition
▪ Six Sigma seeks to improve the quality of process outputs by
identifying and removing the causes of defects.
▪Six Sigma approach is a collection of managerial and statistical
concept and techniques that focuses on reducing variation in
processes and preventing deficiencies in product.
▪ The concept of Variation states “NO two items will be perfectly
identical.”
▪In a process that has achieved six sigma capability, the variation is
small compared to the range of specification limit.
▪A six sigma process is one in which 99.9999966% of the products
manufactured are statistically expected to be free of defects
(3.4 defects per million).
▪Six Sigma is a very clever way of branding and packaging many
aspects of Total Quality Management (TQM).
( TQM is a management approach to long–term success through
customer satisfaction.)
▪Manufacturing methods of six sigma are used in Batch production,
Job production & Mass production.
Father of Six Sigma

Sir Bill Smith

“ the Father of six sigma”
 Six Sigma Objectives

✓Overall Business Improvement

Six Sigma methodology focuses on business

improvement. Beyond reducing the number of defects
present in any given number of products.

✓Remedy Defects/Variability

Any business seeking improved numbers must reduce

the number of defective products or services it
produces. Defective products can harm customer
satisfaction levels.
✓Reduce Costs

Reduced costs equal increased profits. A company

implementing Six Sigma principles has to look to reduce
costs wherever it possibly can--without reducing quality.

✓Improve Cycle Time

Any reduction in the amount of time it takes to
produce a product or perform a service means
money saved, both in maintenance costs and
personnel wages. Additionally, customer satisfaction
improves when both retailers and end users receive
products sooner than expected. The company that
can get a product to its customer faster may win her
business.
✓Increase Customer Satisfaction

Customer satisfaction depends upon successful

resolution of all Six Sigma’s other objectives. But
customer satisfaction is an objective all its own.
Levels of Six Sigma
Learning Curve
 Methodologies

Six Sigma projects follow two project methodologies :

1. DMAIC

2. DMADV

These methodologies, composed of five phases.

 1. DMAIC

DMAIC is used for projects aimed at improving an existing business process.

2. DMADV

DMADV is used for projects aimed at creating new product or

process designs.
1. DMAIC
The DMAIC project methodology has Five phases:

1. Define

2. Measure

3. Analyze

4. Improve

5. Control
1.Define

Define the system, the voice of the customer and

their requirements, and the project goals, specifically.

2.Measure

Measure key aspects of the current process and

collect relevant data.
3.Analyze
Analyze the data to investigate and verify cause-and
effect relationships. Determine what the
relationships are, and attempt to ensure that all
factors have been considered. Seek out root cause
of the defect under investigation.

4.Improve

Improve or optimize the current process based upon

data analysis using techniques such as design of
experiments, poka yoke or mistake proofing,
and standard work to create a new, future state
process. Set up pilot runs to establish process
capability.
5.Control
Control the future state process to ensure that any
deviations from target are corrected before they
result in defects. Implement control systems such
as statistical process control, production boards,
visual workplaces, and continuously monitor the
process.
2. DMADV
DMADV project methodology has Five phase:

1. Define

2. Measure

3. Analyze

4. Design

5. Verify
1.Define :

Define design goals that are consistent with

customer demands and the enterprise strategy.

2.Measure

Measure and identify CTQs (characteristics that

are Critical To Quality), product capabilities,
production process capability, and risks.
3.Analyze

Analyze to develop and design alternatives.

4. Design

Design an improved alternative, best suited per

analysis in the previous step
5. Verify

Verify the design, set up pilot runs,

implement the production process and
hand it over to the process owner(s).