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“Total Quality Management”
“Total Quality Management”
A Project Report
Submitted by
Name : Devashree Thanekar
S.K.Somaiya college of Arts, Science and Commerce
Roll No : 22
Submitted to
Mumbai University
Under the guidance of
Prof. Ravikant Balkrishna
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AKNOWLEDGEMENT
We would like to take this as an opportunity to thank god
for his blessings and Prof. Ravikant Balkrishna of S.K.
Somaiya college of Arts, Science and Commerce, Mumbai for his
immense support, encouragement and giving valuable suggestion to my
project.. Prof. Ravikant Balkrishna was not only helping me out in
selecting this topic, but also providing his invaluable input through the
duration of this project.
Devashree
Thanekar
(Name of Student)
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INDEX
Serial No. Chapter Name Pg.no
1) CHAPTER ONE INTRODUCTION 6
2) CHAPTER TWO CONCEPTS AND PHILOSOPHIES 12
OF TQM
3) CHAPTER THREE THE ACCEPTABILITY OF TQM 24
4) CHAPTER FOUR THE ESSENTIALS OF TQM 28
5) CHAPTER FIVE THE EFFECTS OF TQM 32
6) CHAPTER SIX IMPLEMENTATION OF TQM 40
CASE STUDY ON IBM (TIVOLI SOFTWARE). ------------------ 49
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GLOSSARY
1. IBM - International Business Machine
Corporation
2. TQM - Total Quality Management
3. ISO - International Standard Organization
4. TPM - Total Productive Maintenance
5. QCCs - Quality Control Circles
6. BPR - Business Process Re-Engineering
7. TQC - Total Quality Circles
8. ATM - Automated Teller Machines
9. CPC - Control Processing Centre
10.CAD - Computer Aided Design
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11.INCL. - Including
12.PDCA - Plan-Do-Check-Act
SUMMARY
Every nation has its own independent historical and cultural background. The quality sce-
-nario , therefore, differs from one national setting to the other. The nations are
orienting their quality management strategies and systems to meet the requirements
of the opera-ing environment though the primary focus remains the same, that is,Total Customer Sat-
isfication .Many of the present techniques of quality management were developed in
Japan. However, U.S.A., European nations and developing nations have also
contributed
significantly to this development. The studies carried out by researchers in different
national settings reveal that the concept and philosophies of TQM are not
understood by the managers and others.An all out effort , therefore is required to
promote the understan-
-ding by launching massive educational and management development programs at
all
levels so as to create a cultural consciousness towards quality.
So, the summarization is being done in the following points.
1. TQM has been accepted by both service and manufacturing
organizations,globally as a
systematic management approach to meet the competitive challenges.
2. TQM redefines the quality with emphasis on top management commitment and
custo-
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-mer satisfaction.
3. The benefits of TQM are numerous and are increasingly realized by
organizations.
4. TQM provides a linkage between productivity and quality.
5. The application of TQM tools increases a company’s efficiency.
6. The focus of TQM is on:
(a) Involvement of everyone in organization in continuous improvement.
(b) Commitment to satisfy customers.
(c) Participation through teamwork.
(d) Commitment and Leadership of top management.
CHAPTER ONE
INTRODUCTION
“Anyone who thinks customers are not important
should try doing BUSINESS without them for a
week”
DEFINITION
As defined by ISO:
"TQM is a management approach of an organization, centered on quality,
based on the participation of all its members and aiming at long-term success
through customer satisfaction, and benefits to all members of the
organization and to society."
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In Japanese, TQM comprises four process steps, namely:
1. Kaizen – Focuses on Continuous Process Improvement, to make
processes visible, repeatable and measureable.
2. Atarimae Hinshitsu – Focuses on intangible effects on processes and
ways to optimize and reduce their effects.
3. Kansei – Examining the way the user applies the product leads to
improvement in the product itself.
4. Miryokuteki Hinshitsu – Broadens management concern beyond the
immediate product.
TQM requires that the company maintain this quality standard in all aspects
of its business. This requires ensuring that things are done right the first time
and that defects and waste are eliminated from operations.
Total Quality Management (TQM) is a management strategy aimed atembedding awareness of quality in all organizational processes. TQM has
been widely used in manufacturing, education, government, and service
industries, as well as NASA space and science programs.
ORIGINS
Although W. Edwards Deming is largely credited with igniting the quality
revolution in Japan starting in 1946 and trying to bring it to the United States in
the 1980s, Armand V. Feigenbaum was developing a similar set of principles at
General Electric in the United States at around the same time. "Total Quality
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Control" was the key concept of Feigenbaum's 1951 book, Quality Control:
Principles, Practice, and Administration, a book that was subsequently released
in 1961 under the title, Total Quality Control (ISBN 0070203539). Joseph Juran,
Philip B. Crosby, and Kaoru Ishikawa also contributed to the body of knowledge
now known as TQM.
The American Society for Quality says that the term Total Quality Management
was first used by the U.S. Naval Air Systems Command "to describe its
Japanese-style management approach to quality improvement."[1] This is
consistent with the story that the United States Department of the Navy
Personnel Research and Development Center began researching the use of
statistical process control (SPC); the work of Juran, Crosby, and Ishikawa; and
the philosophy of Deming to make performance improvements in 1984. This
approach was first tested at the North Island Naval Aviation Depot.
In his paper, "The Making of TQM: History and Margins of the Hi(gh)-Story"
from 1994, Xu claims that "Total Quality Control" is translated incorrectly from
Japanese since there is no difference between the words "control" and
"management" in Japanese. William Golimski refers to Koji Kobayashi, former CEO of NEC, being the first to use TQM, which he did during a speech when he
got the Deming prize in 1974.
TQM :- “A QUALITY ORIENTED APPROACH”
Total Quality Management (TQM) is one of quality-oriented approaches that
many organisations adopt. It is generally acknowledged that manufacturing
companies need to be quality oriented in conducting their business to survive the
business world. TQM is an integrated management philosophy and a set of
practices that emphasise top management commitment, customer focus, supplier
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relationship, benchmarking, quality-oriented training, employee focus, zero-
defects, process improvement, and quality measurement. This paper investigates
the structural linkages between TQM, product quality performance and business
performance in the electronics industry in Malaysia. Given the nature of this
study, the statistical analysis technique called Structural Equation Modelling was
used. This preliminary result suggests that there is insufficient statistical
evidence to conclude significant simple relationships between TQM, product
quality performance, and business performance. This implies that the electronics
industry cannot assume direct causal linkages between these three constructs,
which might also suggest that there is a more complex relationship between
TQM, product quality performance, and business performance. However, the
results reveal that top management commitment, supplier relations and training
in particular appear to be of primary importance for TQM practices in Malaysian
electronics companies
CHARACTERISTICS OF TQM:
The characteristics of TQM, as revealed from above definition are as follows:
1. TQM is customer oriented.
2. TQM requires a long term commitment for continuous improvement of all
processes.
3. The success of TQM demands the leadership of top management and
continuous involvement.
4. Responsibility for establishments and improvement of systems lies with
the management of an organisation.
5. TQM is a strategy for continuously improving performance at all levels
and in all areas of responsibility.
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POTENTIAL BENEFITS OF TQM:
The advantages of adopting TQM system compared to conventional quality
system are numerous and are outlined below.
1. TQM helps to focus clearly on the needs of the market.
The traditional approach of quality control focusses on the technical details of
a product so as to satisfy the customer. However, the customer longs for
different satisfaction perspectives which are generally overlooked in the
traditional approach.The needs change from person to person and also from
place to place. As TQM focuses on the concept of university, it tries to abstract
the satisfaction perceptions of the market and thus helps the organisation to
identify and meet the requirements of the market in a better way.
2. TQM facilitates to aspire for a top quality performer in every sphere of
activity.
It is a well accepted fact that the negative attitudes of employees and non- participative culture of the organization pose the greatest hurdle to
organisation’s success, growth and prosperity. TQM emphasis, on bringing
about attitudinal and cultural change through promotion of participative work
culture and effective team-work. This serves to satisfy the higher human needs
of recognition and self-development and enhances employee’s interest in the
job. The employee’s performance, thus, is not restricted to the product or service
areas but reflects in other spheres as well.
3. It channelises the procedures necessary to achieve quality performance.
Quality in its true sense can not be achieved instantly. It requires a systematic
and a long-term planning and strategic approach. By focusing on defining the
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quality policies, goals and objectives, and communicating these properly to one
and all in the organization, adopting SQC and SPC techniques and developing
and using a system of evaluation , the organization can channelize their efforts to
achieve the desired and objectivated quality performance.
4. It helps examine critically and continuously all processes to remove non-
productive activities and waste.
The organizations always aim at improving productivity as it leads to
reduction in cost resulting in increase in profitability. The efforts in this
direction are contributed because of the formation of quality improvement
teams which meet regularly and through a systematic approach which tries to
remove non-productive activity. A continuous effort to identify the problems
and resolve them helps to reduce the waste. The culture of well being thus
improves housekeeping, cost-effectiveness and safety.
5. It gears organizations to fully understand the competition and develop
an effective combating strategy.
The dynamic changes in the global market and the open market policies
adopted by a large number of organizations has resulted in increasedcompetition and for many organizations the survival has become a key issue.
For this cause it is essential for the organistions to understand the competition
and develop and adopt suitable strategies to meet the challenges. As TQM
helps to understand the pulse of customer and thus the market, it gives an edge
to the organizations of variable nature to meet the competition.
6. It helps to develop good procedures for communication and
acknowledging good work.
Improper procedures and inadequate communication are yet another
bane of many organizations, which result in misunderstanding, confusion,
low productivity, duplication of efforts, poor quality, low morale and so on.
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TQM brings together members of various related sections, departments and
different levels of management thereby providing an effective vehicle of
communication and interaction.
7. It helps to review the process needed to develop the strategy of never
ending improvement.
Quality improvement efforts cannot be restricted to any time period. They
need to be continuous to meet the dynamic challenges. TQM emphasizes on
a continuous and periodic review so as to make the required changes.
The benefits derived by the organizations, therefore, are many and multi-
faceted. Many of these can be measured in quantitative terms. However, the
intangible benefits, which includes enrichment of the quality of the worklife
and many more are not quantifiable. At the same time, it has to be
established whether they do occur or not in order to prove or disapprove the
efficacy of the concept. This can be assessed by a well-planned research
project or by carrying out an opinion survey periodically. The tangible and
intangible benefits of TQM are variable in nature.
CHAPTER TWO
CONCEPTS AND PHILOSOPHIES OF TQM
INTRODUCTION:
Total Quality Management (TQM), a buzzword phrase of the 1980's, has been killed
and resurrected on a number of occasions. The concept and principles, though
simple seem to be creeping back into existence by "bits and pieces" through the
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evolution of the ISO9001 Management Quality System standard. Companies who
have implemented TQM include Ford Motor Company, Phillips Semiconductor,
SGL Carbon, Motorola and Toyota Motor Company. The latest changes coming up
for the ISO 9001:2000 standard’s "Process Model" seem to complete the
embodiment. TQM is the concept that quality can be managed and that it is a
process. The following information is provided to give an understanding of the key
elements of this process.
How do you feel if you receive aHow do you feel if you receive a
defective product?defective product?
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How do people feel if they receive a defective
product?
TQM as a Foundation :
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5. Problems must be prevented, not just fixed.
6. Quality must be measured.
7. Quality improvements must be continuous.
8. The quality standard is defect free.
9. Goals are based on requirements, not negotiated.
10. Life cycle costs, not front end costs.
11. Management must be involved and lead.
12. Management Commitment
1. Plan (drive, direct)
2. Do (deploy, support, participate)
3. Check (review)
4. Act (recognize, communicate, revise)
13. Employee Empowerment
1. Training
2. Suggestion scheme
3. Measurement and recognition
4. Excellence teams
14. Fact Based Decision Making
1. SPC (statistical process control)2. DOE, FMEA
3. The 7 statistical tools
4. TOPS (FORD 8D - Team Oriented Problem Solving)
15. Continuous Improvement
1. Systematic measurement and focus on CONQ
2. Excellence teams
3. Cross-functional process management
4. Attain, maintain, improve standards
16. Customer Focus
1. Supplier partnership
2. Service relationship with internal customers
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3. Never compromise quality
4. Customer driven standards
Processes must be Managed and Improved:
Processes must be managed and improved! This involves:
• Defining the process
• Measuring process performance (metrics)
• Reviewing process performance
• Identifying process shortcomings
• Analyzing process problems
• Making a process change
• Measuring the effects of the process change
Communicating both ways between supervisor and user
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Key to Quality:
The key to improving quality is to improve processes that define, produce and
support our products.
All people work in processes.
People
• Get processes "in control"
• Work with other employees and managers to identify process problems and
eliminate them
Managers and/or Supervisors Work on Processes
• Provide training and tool resources
• Measure and review process performance (metrics)
• Improve process performance with the help of those who use the process
THE EIGHT ELEMENTS OF TQM:
Total Quality Management is a management approach that originated in the 1950's
and has steadily become more popular since the early 1980's. Total Quality is a
description of the culture, attitude and organization of a company that strives to
provide customers with products and services that satisfy their needs. The culture
requires quality in all aspects of the company's operations, with processes being
done right the first time and defects and waste eradicated from operations.
To be successful implementing TQM, an organization must concentrate on the eight
key elements:
1. Ethics
2. Integrity
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3. Trust
4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication
This paper is meant to describe the eight elements comprising TQM.
Key Elements
TQM has been coined to describe a philosophy that makes quality the driving force
behind leadership, design, planning, and improvement initiatives. For this, TQM
requires the help of those eight key elements. These elements can be divided into
four groups according to their function. The groups are:
I. Foundation - It includes: Ethics, Integrity and Trust.
II. Building Bricks - It includes: Training, Teamwork and Leadership.
III. Binding Mortar - It includes: Communication.
IV. Roof - It includes: Recognition.
I. Foundation
TQM is built on a foundation of ethics, integrity and trust. It fosters openness,
fairness and sincerity and allows involvement by everyone. This is the key to
unlocking the ultimate potential of TQM. These three elements move together,
however, each element offers something different to the TQM concept.
1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It
is a two-faceted subject represented by organizational and individual ethics.
Organizational ethics establish a business code of ethics that outlines guidelines that
all employees are to adhere to in the performance of their work. Individual ethics
include personal rights or wrongs.
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2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to
the facts and sincerity. The characteristic is what customers (internal or external)
expect and deserve to receive. People see the opposite of integrity as duplicity.
TQM will not work in an atmosphere of duplicity.
3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the
framework of TQM cannot be built. Trust fosters full participation of all members.
It allows empowerment that encourages pride ownership and it encourages
commitment. It allows decision making at appropriate levels in the organization,
fosters individual risk-taking for continuous improvement and helps to ensure that
measurements focus on improvement of process and are not used to contend people.
Trust is essential to ensure customer satisfaction. So, trust builds the cooperativeenvironment essential for TQM.
II.Bricks
Basing on the strong foundation of trust, ethics and integrity, bricks are placed to
reach the roof of recognition. It includes:
4. Training - Training is very important for employees to be highly productive.
Supervisors are solely responsible for implementing TQM within their departments,and teaching their employees the philosophies of TQM. Training that employees
require are interpersonal skills, the ability to function within teams, problem solving,
decision making, job management performance analysis and improvement, business
economics and technical skills. During the creation and formation of TQM,
employees are trained so that they can become effective employees for the company.
5. Teamwork - To become successful in business, teamwork is also a key element
of TQM. With the use of teams, the business will receive quicker and better
solutions to problems. Teams also provide more permanent improvements in
processes and operations. In teams, people feel more comfortable bringing up
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problems that may occur, and can get help from other workers to find a solution and
put into place. There are mainly three types of teams that TQM organizations adopt:
A. Quality Improvement Teams or Excellence Teams (QITS) - These are
temporary teams with the purpose of dealing with specific problems that often re-
occur. These teams are set up for period of three to twelve months.
B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain
problems and also to identify and overcome causes of problems. They generally last
from one week to three months.
C. Natural Work Teams (NWTs) - These teams consist of small groups of skilledworkers who share tasks and responsibilities. These teams use concepts such as
employee involvement teams, self-managing teams and quality circles. These teams
generally work for one to two hours a week.
6. Leadership - It is possibly the most important element in TQM. It appears
everywhere in organization. Leadership in TQM requires the manager to provide an
inspiring vision, make strategic directions that are understood by all and to instill
values that guide subordinates. For TQM to be successful in the business, the
supervisor must be committed in leading his employees. A supervisor must
understand TQM, believe in it and then demonstrate their belief and commitment
through their daily practices of TQM. The supervisor makes sure that strategies,
philosophies, values and goals are transmitted down through out the organization to
provide focus, clarity and direction. A key point is that TQM has to be introduced
and led by top management. Commitment and personal involvement is required
from top management in creating and deploying clear quality values and goalsconsistent with the objectives of the company and in creating and deploying well
defined systems, methods and performance measures for achieving those goals.
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people are recognized, there can be huge changes in self-esteem, productivity,
quality and the amount of effort exhorted to the task at hand. Recognition comes in
its best form when it is immediately following an action that an employee has
performed. Recognition comes in different ways, places and time such as,
Ways - It can be by way of personal letter from top management. Also by award
banquets, plaques, trophies etc.
• Places - Good performers can be recognized in front of departments, on
performance boards and also in front of top management.
• Time - Recognition can given at any time like in staff meeting, annual
award banquets, etc.
We can conclude that these eight elements are key in ensuring the success of TQM
in an organization and that the supervisor is a huge part in developing these
elements in the work place. Without these elements, the business entities cannot be
successful TQM implementers. It is very clear from the above discussion that TQM
without involving integrity, ethics and trust would be a great remiss, in fact it would
be incomplete. Training is the key by which the organization creates a TQM
environment. Leadership and teamwork go hand in hand. Lack of communication
between departments, supervisors and employees create a burden on the whole
TQM process. Last but not the least, recognition should be given to people who
contributed to the overall completed task. Hence, lead by example, train employees
to provide a quality product, create an environment where there is no fear to share
knowledge, and give credit where credit is due is the motto of a successful TQM
organization
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THE TQM MODEL:
At the century close, the creation of the global market, international orientation of
management that sweeps national boundaries, introduction of new technologies, and
shift towards customer focused strategies, make the competition stronger than ever.
The criteria for success in this global, internationally oriented market have been
changing rapidly. In order to expand business, enter new markets, and set realistic,
competitive long-term objectives, excellence became an imperative. Management's
effort has been directed towards discovering what makes a company excellent.
To achieve excellence, companies must develop a corporate culture of treating
people as their most important asset and provide a consistent level of high quality
products and services in every market in which they operate. Such an environment
has supported the wide acceptance of Total Quality Management (TQM) which
emerged recently as a new, challenging, marketable philosophy. It involves three
spheres of changes in an organization -- people, technology and structure.
There is also a need for a systematic approach so that each element of TQMEX can
be bonded together smoothly. Oakland [1989] originated the idea of a 3-cornerstone
model. The proposed 4-pillar model (Figure 3.1) brings the customer's requirement
into the system. This makes the approach to TQM more complete. The additional
pillar -- satisfying customers -- is vital because it explicitly addresses customers
requirements. Without it TQM would have no objective.
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The Four Pillars of TQM
The role of top management in implementation of total quality is crucial and itsinput on people far-reaching. TQM, therefore, should be understood as management
of the system through systems thinking, which means understanding all the elements
in the company and putting them to work together towards the common goal. The
TQMEX Model advocates an integrated approach in order to support the transition
to systems management which is an ongoing process of continuous improvement
that begins when the company commits itself to managing by quality. The Model
illuminates the elements that form a base to the understanding of TQM philosophy
and implementation of the process company-wide.
CHAPTER THREE
THE ACCEPTABILITY OF TQM
JAPANESE TQM MODEL:
At first, few but the Japanese took Deming seriously. Known for his legendary
attacks on executives and compassion for the worker, the Japanese sense of
responsibility to one's superiors and subordinates made it easier to accept Deming's
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message that management's role was to provide the optimal conditions for the
workers to do the best job.
The Japanese then extended Deming's teaching to many dimensions of management.
Here are TQM models from the Japanese Society of Quality and the Japan
Standards Association that show how extensive their definition of TQM is.
The Japanese identify three major dimensions of TQM: Daily Management,
Hoshin/Policy Management, and Cross Function Management. We will study these
in detail in the course. They can be visualized with the following picture.
TQM IN USA:
As regards quality, USA is at crossroads today.Inspite of the fact that USA
developed the techniques and concepts of SQC and TQC and the japenese imported
these techniques, the further orientation and development in philoshophy, concept
and techniques in terms of Q.C. circles and company wide quality control took place
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in Japan more rapidly and successfully. While the American companies remained
concerned about detecting and segregating defective parts from good ones, the
Japanese companies devised systems to reduce defects and produce good quality
products.This resulted in America losing its position of dominance not only in the
American market but also in the world.
Much of the quality movement in USA is based on tools and techniques
developed by the japenese. Adoption of these techniques requires complete re-
development in both methods and emphasis.The most critical challenge facing U.S
quality movement is the development and implementation of quality focused
corporate management systems that achieve the coherence, integration and
comprehensiveness of quality management in japan. The American companies are
characterized by:
1. A high concentration of industry on relatively few companies.
2. Stress on promoting share-holders, and
3. Running the company by professional managers.
These features of autonomous organisations and professional management have a
considerable impact on the conduct of quality function. Each organisation
determines independently what it will produce and what quality policies it will
adopt.
Marguardt divides the evolution of quality movement in USA in three periods:
1. Advocates for SQC- Emphasis on technical tools of control charts, lot inspection
and sampling schemes.
2. Administrators for system of quality control- Emphasis on the cost of quality and
managerial aspects of organizing the quality.
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3. Advertising and selling quality consciousness-Emphasis on changing
organizational culture and providing an environment that will enable people to
activate and sustain in their own work and in products and services produced by the
organistions with the focus on needs of customers. TQM in Service Industry
TQM in Service Industry
Introduction
Today’s customer has before him the possibility of a wider choice of products &
Services than ever before .He is going to be demanding & keen on having the best
services in the shortest possible time & at the minimum cost .He will look for
solutions that are more specific to his needs thus creating opportunity of many niche
market.
-Today customers avail ATM services 24 hrs
-Book airline tickets & check-in over phone
-Self-service at fast food restaurant.
-And many more
What is different ?
-Service is also a product of different kind .
-No time delay between the production & delivery of service
-A defective product can be replaced but a defective service may create a permanent
damage.
Growth of Service sector
Service sector is growing rapidly due to
-Change in environment , life style etc
-Demand for new kind of services
-Advent of new technologies
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-Fast development of information technology & computerisation
-Lean manufacturing . (contracting out most activities)
Challenge of Service sector
Delight customers
-In a dynamic environment which is changing fast
-In growing competitive market
-With relatively shorter product life cycle
-Requiring more customisation
Service Quality Dimensions
Quality of Services differs from manufactured products
-Special characteristics including intangibility.
-Simultaneity ( promptness )
-Heterogeneity
-Unique dimensions of some services (e.g. Banking)
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CHAPTER FOUR
THE ESSENTIALS OF TQM
Introduction
TQM is the way of managing for the future, and is far wider in its application than
just assuring product or service quality – it is a way of managing people and
business processes to ensure complete customer satisfaction at every stage,
internally and externally. TQM, combined with effective leadership, results in an
organization doing the right things right, first time.
The core of TQM is the customer-supplier interfaces, both externally and internally,
and at each interface lie a number of processes. This core must be surrounded by
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commitment to quality, communication of the quality message, and recognition of
the need to change the culture of the organisation to create total quality. These are
the foundations of TQM, and they are supported by the key management functions
of people, processes and systems in the organisation.
This section discusses each of these elements that, together, can make a total quality
organisation. Other sections explain people, processes and systems in greater detail,
all having the essential themes of commitment, culture and communication running
through them.
Customers and suppliers
There exists in each department, each office, each home, a series of customers,
suppliers and customer supplier interfaces. These are “the quality chains”, and they
can be broken at any point by one person or one piece of equipment not meeting the
requirements of the customer, internal or external. The failure usually finds its way
to the interface between the organization and its external customer, or in the worst
case, actually to the external customer.
Failure to meet the requirements in any part of a quality chain has a way of multiplying, and failure in one part of the system creates problems elsewhere,
leading to yet more failure and problems, and so the situation is exacerbated. The
ability to meet customers’ (external and internal) requirements is vital. To achieve
quality throughout an organization, every person in the quality chain must be trained
to ask the following questions about every customer-supplier interface:
The building blocks of TQM: processes, people, management systems
and performance measurement
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Everything we do is a Process, which is the transformation of a set of inputs, which
can include action, methods and operations, into the desired outputs, which satisfy
the customers’ needs and expectations.
In each area or function within an organisation there will be many processes taking
place, and each can be analysed by an examination of the inputs and outputs to
determine the action necessary to improve quality.
In every organisation there are some very large processes, which are groups of
smaller processes, called key or core business processes. These must be carried out
well if an organisation is to achieve its mission and objectives. The section on
Processes discusses processes and how to improve them, and Implementation covers
how to prioritise and select the right process for improvement.
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The only point at which true responsibility for performance and quality can lie is
with the People who actually do the job or carry out the process, each of which has
one or several suppliers and customers.
An efficient and effective way to tackle process or quality improvement is through
teamwork. However, people will not engage in improvement activities without
commitment and recognition from the organisation’s leaders, a climate for
improvement and a strategy that is implemented thoughtfully and effectively. The
section on People expands on these issues, covering roles within teams, team
selection and development and models for successful teamwork.
An appropriate documented Quality Management System will help an
organisation not only achieve the objectives set out in its policy and strategy, but
also, and equally importantly, sustain and build upon them. It is imperative that the
leaders take responsibility for the adoption and documentation of an appropriate
management system in their organisation if they are serious about the quality
journey. The Systems section discusses the benefits of having such a system, how to
set one up and successfully implement it.
Once the strategic direction for the organisation’s quality journey has been set, it
needs Performance Measures to monitor and control the journey, and to ensure the
desired level of performance is being achieved and sustained. They can, and should
be, established at all levels in the organisation, ideally being cascaded down and
most effectively undertaken as team activities and this is discussed in the section on
Performance.
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CHAPTER FIVE
THE EFFECTS OF TQM
Improving Financial Services through TQM
The work described in this case study was undertaken in a young, rapidly expanding
company in the financial services sector with no previous experience with Total
Quality Management (TQM). The quality project began with a two-day introductory
awareness program covering concepts, cases, implementation strategies and
imperatives of TQM. The program was conducted for the senior management team
of the company. This program used interactive exercises and real life case studies to
explain the concepts of TQM and to interest them in committing resources for a
demonstration project. The demonstration project, which used the Seven Steps of
Problem Solving (similar to DMAIC), was to show them how TQM concepts
worked in practice before they committed resources for a company-wide program.
Step 1. Define the Problem
1.1) Selecting the theme: A meeting of the senior management of the company was
held. Brainstorming produced a list of more than 20 problems. The list was
prioritized using the weighted average table, followed by a structured discussion to
arrive at a consensus on the two most important themes -- customer service and
sales productivity.
Under the customer service theme, "Reducing the Turnaround Time from an
Insurance Proposal to Policy" was selected as the most obvious and urgent problem.
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The company was young, and therefore had few claims to process so far. The
proposal-to-policy process therefore impacted the greatest number of customers.
An appropriate cross functional group was set up to tackle this problem.
1.2) Problem = customer desire – current status:
Current status: What did the individual group members think the turnaround is
currently? As each member began thinking questions came up. "What type of
policies do we address?" Medical policies or non-medical? The latter are take longer
because of the medical examination of the client required. "Between what stages do
we consider turnaround?" Perceptions varied, with each person thinking about the
turnaround within their department. The key process stages were mapped:
Several sales branches in different parts of the country sent proposals into the
Central Processing Center. After considerable debate it was agreed at first to
consider turnaround between entry into the computer system at the Company Sales
Branch and dispatch to the customer from the Central Processing Center (CPC).
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Later the entire cycle could be included. The perception of the length of turnaround
by different members of the team was recorded. It averaged:
Non-Medical Policies 17 days
Medical Policies 35 days
Invoking the slogan from the awareness program "In God we trust, the rest of us
bring data" the group was asked to collect data and establish reality. Armed with a
suitably designed check sheet they set about the task.
Customer desire: What was the turnaround desired by the customer? Since a
customer survey was not available, individual group members were asked to think
as customers -- imagine they had just given a completed proposal form to a sales
agent. When would they expect the policy in hand? From the customer's point of
view they realized that they did not differentiate between medical and non-medical
policies. Their perception averaged out six days for the required turnaround.
"Is this the average time or maximum time that you expect?" they were asked.
"Maximum," they responded. It was clear therefore that the average must be less
than six days. The importance of "variability" had struck home. The concept of
sigma was explained and was rapidly internalized. For 99.7 percent delivery within
the customer limit the metric was defined.
Customer desire:
Average+3 Sigma turnaround = less than 6 days
Current status:
Non-medical policies (Average 19/Sigma 15) Average+3 sigma= 64 days
Medical (Average 37/Sigma 27) Average+3 sigma= 118 days
The Problem was therefore defined:
Reduce Average+3 sigma of turnaround for:
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Non-Medical Policies From 64 to 6 days
Medical Policies From 118 to 6 days
The performance requirement appeared daunting. Therefore the initial target taken
in the Mission Sheet (project charter) was to reduce the turnaround by 50 percent --
to 32 and 59 days respectively.
Step 2. Analysis of the Problem
In a session the factors causing large turnaround times from the principles of JIT
were explained. These were:Input arrival patterns
• Waiting times in process- Batching of work
- Imbalanced processing line
- Too many handovers
- Non-value added activities, etc.
• Processing times
• Scheduling
• Transport times
• Deployment of manpower
Typically it was found that waiting times constitute the bulk of processing
turnaround times. Process Mapping (Value Stream Mapping in Lean) was
undertaken. The aggregate results are summarized below:
Number of operations 84
Number of handovers 13
In-house processing time (estimated) 126 man-mins.
Range of individual stage time 2 to 13 mins.
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Could this be true? Could the turnaround be 126 minutes for internal processing
without waiting? The group started to question of the status quo. The change process
had begun. To check this estimate it was decided to collect data -- run two policies
without waiting and record the time at each stage. The trial results amazed everyone:
Policy No. 1 took 100 minutes and Policy No. 2 took 97 minutes. Almost instantly
the mindset changed from doubt to desire: "Why can't we process every proposal in
this way?"
Step 3. Generating Ideas
In the introductory program of TQM during the JIT session the advantages of flow
versus batch processing had been dramatically demonstrated using a simple
exercise. Using that background a balanced flow line was designed as follows:
1. Determine the station with the maximum time cycle which cannot be split up by
reallocation -- 8 minutes.
2. Balance the line to make the time taken at each stage equal 8 minutes as far as
possible.
3. Reduce the stages and handovers -- 13 to 8.
4. Eliminate non-value added activities -- transport -- make personnel sit next toeach other.
5. Agree processing to be done in batch of one proposal.
Changing the mindset of the employees so they will accept and welcome change is
critical to building a self-sustaining culture of improvement. In this case, the line
personnel were involved in a Quality Mindset Program so that they understood the
reasons for change and the concepts behind them and are keen to experiment with
new methods of working. The line was ready for a test run.
Step 4. Testing the Idea
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Testing in stages is a critical stage. It allows modification of ideas based upon
practical experience and equally importantly ensures acceptance of the new methods
gradually by the operating personnel.
Stage 1: Run five proposals flowing through the system and confirm results. The
test produced the following results:
Average turnaround time: < 1 day
In-house processing time: 76 mins.
There was jubilation in the team. The productivity had increased by 24 percent. The
head of the CPC summarized: "I gave five files for processing, and went for a
meeting. Emerging from the meeting about 30 minutes later I was greeted by the
dispatch clerk jubilantly reporting, "'Madam, the TQM files are ready for dispatch.'"
The mindset was dramatically changed and line personnel were now keen to push
the implementation.
Stage 2: It was agreed to run the new system for five days -- and compute the
average and sigma of the turnaround to measure the improvement. It was agreed that
only in-house processing was covered at this stage and that the test would involve
all policies at the CPC but only one branch as a model. This model, once proved,
could be replicated at other branches.
The test results showed a significant reduction in turnaround:
1. For all non-medical policies From 64 to 42 days or 34%
2. For policies of the model branch From 64 to 27 days of 60%
The Mission Sheet goal of 50 percent reduction had been bettered for the combined
model branch and CPC. Further analysis of the data revealed other measures which
could reduce the turnaround further. Overall reduction reached an amazing 75
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percent. Turnaround, which had been pegged at 64 days, was now happening at 99.7
percent on-time delivery in 15 days.
Step 5. Implementing the Ideas
Regular operations with the new system was planned to commence. However, two
weeks later it was still not implemented. One of the personnel on the line in CPC
had been released by his department for the five-day trial to sit on the line but was
not released on a regular basis. The departmental head had not attended the TQM
awareness program and therefore did not understand why this change was required.
There were two options -- mandate the change or change the mindset to accept the
change. Since the latter option produces a robust implementation that will not break
down under pressures it was agreed that the group would summarize TQM, the
journey and the results obtained in the project so far and also simulate the process
with a simple exercise in front of the department head. This session was highly
successful and led to the release of the person concerned on a regular basis.
Step 6. Check the Result
The process was run for one month with regular checks. The results obtained were
marginally better than the trials conducted in Step 5:
Average 11 days
Sigma 9 days
Average+3 sigma 38 days
Step 7. Standardize Control/Document the Improvement Story
• Essentially the in-house processes in two centers of processing -- the CPC
and one sales branch -- had been impacted so far. To make sure that the
gains were held, control charts were introduced in both locations. Sample x-
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bar and sigma-control charts for the CPC are shown below:
• A special "Grind It In" session was conducted for line personnel to ensure
that the control chart was updated every day, and any deterioration was dealt
with by finding and killing the root causes of the problems.
•
Customer reaction: Sales management and sales agents (internal customers)clearly noticed the difference. For instance one sales manager reported that a
customer had received a policy within a week of giving a proposal and was
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so amazed that he said, "If you give such service I will give you the next
policy also!"
• Adoption of a similar process at the CPC and the model branch for medical
policies has already reduced the average+3 sigma of turnaround time by 70
percent -- from 118 days to 37 days. The corresponding all-India reduction
was from 118 days to 71 days -- a 60 percent reduction.
• The project objective of 50 percent in the first stage has been achieved.
• A quality improvement story was compiled by the project Leader for training
and motivating all employees.
Future Actions
Non-medical policies: Goal to reduce turnaround from 42 days to about 15 days.
1. Roll out process to branches to achieve 24 days throughout the country.
2. Minimize rework by analyzing, prioritizing and training sales branches to avoid
the causes of rework.
3. Working with the bank to improve the turnaround time of banking checks.
4. Considering processing proposals while check clearance is in progress.
Medical policies: Goal to reduce turnaround from 71 days to about 24 days.
1. Roll out process to branches to reduce turnaround from 71 to 37 days.
2. Streamline the process of medical exam of the client from 37 to 24 days.
CHAPTER SIX
IMPLEMENTATION OF TQM
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Implementation Principles and Processes
A preliminary step in TQM implementation is to assess the organization's current
reality. Relevant preconditions have to do with the organization's history, its current
needs, precipitating events leading to TQM, and the existing employee quality of
working life. If the current reality does not include important preconditions, TQM
implementation should be delayed until the organization is in a state in which TQM
is likely to succeed.
If an organization has a track record of effective responsiveness to the environment,
and if it has been able to successfully change the way it operates when needed,
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TQM will be easier to implement. If an organization has been historically reactive
and has no skill at improving its operating systems, there will be both employee
skepticism and a lack of skilled change agents. If this condition prevails, a
comprehensive program of management and leadership development may be
instituted. A management audit is a good assessment tool to identify current levels
of organizational functioning and areas in need of change. An organization should
be basically healthy before beginning TQM. If it has significant problems such as a
very unstable funding base, weak administrative systems, lack of managerial skill,
or poor employee morale, TQM would not be appropriate.
However, a certain level of stress is probably desirable to initiate TQM. People need
to feel a need for a change. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. These forces
include departures from tradition, a crisis or galvanizing event, strategic decisions,
individual "prime movers," and action vehicles. Departures from tradition are
activities, usually at lower levels of the organization, which occur when
entrepreneurs move outside the normal ways of operating to solve a problem. A
crisis, if it is not too disabling, can also help create a sense of urgency which can
mobilize people to act. In the case of TQM, this may be a funding cut or threat, or
demands from consumers or other stakeholders for improved quality of service.
After a crisis, a leader may intervene strategically by articulating a new vision of the
future to help the organization deal with it. A plan to implement TQM may be such
a strategic decision. Such a leader may then become a prime mover, who takes
charge in championing the new idea and showing others how it will help them get
where they want to go. Finally, action vehicles are needed and mechanisms or
structures to enable the change to occur and become institutionalized.
The Concept of Continuous Improvement by TQM
TQM is mainly concerned with continuous improvement in all work, from high
level strategic planning and decision-making, to detailed execution of work
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elements on the shop floor. It stems from the belief that mistakes can be avoided and
defects can be prevented. It leads to continuously improving results, in all aspects of
work, as a result of continuously improving capabilities, people, processes,
technology and machine capabilities.
Continuous improvement must deal not only with improving results, but more
importantly with improving capabilities to produce better results in the future. The
five major areas of focus for capability improvement are demand generation, supply
generation, technology, operations and people capability.
A central principle of TQM is that mistakes may be made by people, but most of
them are caused, or at least permitted, by faulty systems and processes. This means
that the root cause of such mistakes can be identified and eliminated, and repetition
can be prevented by changing the process.
There are three major mechanisms of prevention:
1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-
Yoke).
2. Where mistakes can't be absolutely prevented, detecting them early to
prevent them being passed down the value added chain (Inspection at source
or by the next operation).
3. Where mistakes recur, stopping production until the process can be
corrected, to prevent the production of more defects. (Stop in time).
. TQM is the foundation for activities, which include:
• Commitment by senior management and all employees
• Meeting customer requirements
• Reducing development cycle times
• Just In Time/Demand Flow Manufacturing
• Improvement teams
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• Reducing product and service costs
• Systems to facilitate improvement
• Line Management ownership
• Employee involvement and empowerment
• Recognition and celebration
• Challenging quantified goals and benchmarking
• Focus on processes / improvement plans
• Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in
Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.
TQM in manufacturing
Quality assurance through statistical methods is a key component in a
manufacturing organization, where TQM generally starts by sampling a random
selection of the product. The sample can then be tested for things that matter most to
the end users. The causes of any failures are isolated, secondary measures of the
production process are designed, and then the causes of the failure are corrected.
The statistical distributions of important measurements are tracked. When parts'measures drift into a defined "error band", the process is fixed. The error band is
usually a tighter distribution than the "failure band", so that the production process
is fixed before failing parts can be produced.
It is important to record not just the measurement ranges, but what failures caused
them to be chosen. In that way, cheaper fixes can be substituted later (say, when the
product is redesigned) with no loss of quality. After TQM has been in use, it's very
common for parts to be redesigned so that critical measurements either cease to
exist, or become much wider.
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It took people a while to develop tests to find emergent problems. One popular test
is a "life test" in which the sample product is operated until a part fails. Another
popular test is called "shake and bake", in which the product is mounted on a
vibrator in an environmental oven, and operated at progressively more extreme
vibration and temperatures until something fails. The failure is then isolated and
engineers design an improvement.
A commonly-discovered failure is for the product to disintegrate. If fasteners fail,
the improvements might be to use measured-tension nutdrivers to ensure that screws
don't come off, or improved adhesives to ensure that parts remain glued.
If a gearbox wears out first, a typical engineering design improvement might be to
substitute a brushless stepper motor for a DC motor with a gearbox. The
improvement is that a stepper motor has no brushes or gears to wear out, so it lasts
ten or more times as long. The stepper motor is more expensive than a DC motor,
but cheaper than a DC motor combined with a gearbox. The electronics are radically
different, but equally expensive. One disadvantage might be that a stepper motor can
hum or whine, and usually needs noise-isolating mounts.
Often, a "TQMed" product is cheaper to produce because of efficiency/performanceimprovements and because there's no need to repair dead-on-arrival products, which
represents an immensely more desirable product.
TQM and contingency-based research
TQM has not been independent of its environment. In the context of management
accounting systems (MCSs), Sim and Killough (1998) show that incentive pay
enhanced the positive effects of TQM on customer and quality performance. Ittner
and Larcker (1995) demonstrated that product focused TQM was linked to timely
problem solving information and flexible revisions to reward systems. Chendall
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(2003) summarizes the findings from contingency-based research concerning
management control systems and TQM by noting that “TQM is associated with
broadly based MCSs including timely, flexible, externally focused information;
close interactions between advanced technologies and strategy; and non-financial
performance measurement.”
Customer-driven quality
TQM has a customer-first orientation. The customer, not internal activities and
constraints, comes first. Customer satisfaction is seen as the company's highest
priority. The company believes it will only be successful if customers are satisfied.The TQM company is sensitive to customer requirements and responds rapidly to
them. In the TQM context, `being sensitive to customer requirements' goes beyond
defect and error reduction, and merely meeting specifications or reducing customer
complaints. The concept of requirements is expanded to take in not only product and
service attributes that meet basic requirements, but also those that enhance and
differentiate them for competitive advantage.
Each part of the company is involved in Total Quality, operating as a customer to
some functions and as a supplier to others. The Engineering Department is a
supplier to downstream functions such as Manufacturing and Field Service, and has
to treat these internal customers with the same sensitivity and responsiveness as it
would external customers.
TQM leadership from top management
TQM is a way of life for a company. It has to be introduced and led by top
management. This is a key point. Attempts to implement TQM often fail because
top management doesn't lead and get committed - instead it delegates and pays lip
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service. Commitment and personal involvement is required from top management in
creating and deploying clear quality values and goals consistent with the objectives
of the company, and in creating and deploying well defined systems, methods and
performance measures for achieving those goals. These systems and methods guide
all quality activities and encourage participation by all employees. The development
and use of performance indicators is linked, directly or indirectly, to customer
requirements and satisfaction, and to management and employee remuneration.
Continuous improvement
Continuous improvement of all operations and activities is at the heart of TQM.
Once it is recognized that customer satisfaction can only be obtained by providing a
high-quality product, continuous improvement of the quality of the product is seen
as the only way to maintain a high level of customer satisfaction. As well as
recognizing the link between product quality and customer satisfaction, TQM also
recognizes that product quality is the result of process quality. As a result, there is a
focus on continuous improvement of the company's processes. This will lead to an
improvement in process quality. In turn this will lead to an improvement in product
quality, and to an increase in customer satisfaction. Improvement cycles areencouraged for all the company's activities such as product development, use of
EDM/PDM, and the way customer relationships are managed. This implies that all
activities include measurement and monitoring of cycle time and responsiveness as
a basis for seeking opportunities for improvement.
Elimination of waste is a major component of the continuous improvement
approach. There is also a strong emphasis on prevention rather than detection, and
an emphasis on quality at the design stage. The customer-driven approach helps to
prevent errors and achieve defect-free production. When problems do occur within
the product development process, they are generally discovered and resolved before
they can get to the next internalcustomer.
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Fastresponse
To achieve customer satisfaction, the company has to respond rapidly to customer
needs. This implies short product and service introduction cycles. These can be
achieved with customer-driven and process-oriented product development because
the resulting simplicity and efficiency greatly reduce the time involved. Simplicity is
gained through concurrent product and process development. Efficiencies are
realized from the elimination of non-value-adding effort such as re-design. The
result is a dramatic improvement in the elapsed time from product concept to first
shipment.
Actions based on facts
The statistical analysis of engineering and manufacturing facts is an important part
of TQM. Facts and analysis provide the basis for planning, review and performance
tracking, improvement of operations, and comparison of performance with
competitors. The TQM approach is based on the use of objective data, and provides
a rational rather than an emotional basis for decision making. The statisticalapproach to process management in both engineering and manufacturing recognizes
that most problems are system-related, and are not caused by particular employees.
In practice, data is collected and put in the hands of the people who are in the best
position to analyze it and then take the appropriate action to reduce costs and
prevent non-conformance. Usually these people are not managers but workers in the
process. If the right information is not available, then the analysis, whether it be of
shop floor data, or engineering test results, can't take place, errors can't be identified,
and so errors can't be corrected.
Employee participation
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A successful TQM environment requires a committed and well-trained work force
that participates fully in quality improvement activities. Such participation is
reinforced by reward and recognition systems which emphasize the achievement of
quality objectives. On-going education and training of all employees supports the
drive for quality. Employees are encouraged to take more responsibility,
communicate more effectively, act creatively, and innovate. As people behave the
way they are measured and remunerated, TQM links remuneration to customer
satisfaction metrics.
A TQM culture
It's not easy to introduce TQM. An open, cooperative culture has to be created by
management. Employees have to be made to feel that they are responsible for
customer satisfaction. They are not going to feel this if they are excluded from the
development of visions, strategies, and plans. It's important they participate in these
activities. They are unlikely to behave in a responsible way if they see management
behaving irresponsibly - saying one thing and doing the opposite.
Product development in a TQM environment
Product development in a TQM environment is very different to product
development in a non-TQM environment. Without a TQM approach, product
development is usually carried on in a conflictual atmosphere where each
department acts independently. Short-term results drive behavior so scrap, changes,
work-arounds, waste, and rework are normal practice. Management focuses on
supervising individuals, and fire-fighting is necessary and rewarded.
Product development in a TQM environment is customer-driven and focused on
quality. Teams are process-oriented, and interact with their internal customers to
deliver the required results. Management's focus is on controlling the overall
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process, and rewarding teamwork.
Awards for Quality achievement
The Deming Prize has been awarded annually since 1951 by the Japanese Union of
Scientists and Engineers in recognition of outstanding achievement in quality
strategy, management and execution. Since 1988 a similar award (the Malcolm
Baldrige National Quality Award) has been awarded in the US. Early winners of the
Baldrige Award include AT&T (1992), IBM (1990), Milliken (1989), Motorola
(1988), Texas Instruments (1992) and Xerox (1989)
CASE STUDY
IBM Tivoli Development Labs to reap more than $2 million savings with
release management initiative.
Company : IBM Corporation
Deployment Country : New York – USA
Industry : Computer Services, Professional Services
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Solution : IT Optimization, On Demand Business, On Demand Workplace,
Workload Management
Business need : Improve the quality and efficiency of software testing processes
Solution : An automated provisioning process that standardizes release
management, reduces manual operations and optimizes resource utilization
Benefits : 94 percent reduction in attended time to provision software; $2 million
per year expected savings following roll out to more labs; improved test quality;
increased platform coverage; better utilization of valuable skills
"By employing IBM IT Service Management software, we’ve been able to align our
testing processes with business goals and significantly improve operational
efficiency." - Phil Buckellew, Program Director, IBM Tivoli Development Labs.
Overview :Automating information technology and business processes is helping
organizations worldwide realize enormous savings. Consider, for example, Tivoli®
Development Labs, the IBM team responsible for testing Tivoli software prior to its
release. Tivoli Development Labs develops enterprise-class software that supports
numerous heterogeneous operating system platforms. Each product undergoes
extensive, mandatory
Consistent, cost-effective software deployment
Using Tivoli Provisioning Manager software, Tivoli Development Labs has
automated more than 800 tasks that were once performed manually across 415
systems. This includes tasks for allocating and removing servers from the test
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environment; configuring servers; installing and uninstalling software and patches;
and performing bare-metal builds. Doing so has helped the team minimize human
errors, such as incorrectly setting a registry value or forgetting to remove an old file
that may cause a software conflict, and increase the accuracy of the testing
environment. As a result, lab staff can rapidly identify the source of code defects
and retest with confidence. And because the solution enables the organization to
automate the set up of new test environments during non business hours, lab staff
spend their time testing each software product more quickly and more often for
greater test coverage.
“By employing IBM IT Service Management software, we’ve been able to easily
implement best practices for software provisioning,” says Buckellew. “This, in turn,
is helping
us better align our testing processes with business goals and significantly improve
operational efficiency.”
Savings to reach several million dollars
The benefits realized through automation of provisioning testing processes and use
of Tivoli Provisioning Manager software have been enormous. The Tivoli
Development Labs team reports that Phase 1 of the project resulted in a 94 percentreduction in attended time to provision software, with more than 1,200 person-hours
saved over the first seven months of the project.
Tasks that once required several hours to perform under constant supervision can
now be completed in just five minutes. And by freeing up resources from mundane
tasks, testers have more time to focus on product innovation and code quality.
Ultimately, the organization estimates that the savings associated with maintaining
the test infrastructure will reach more than $2 million a year as it expands use of the
solution to more labs.
“Faster, unattended installs allow our existing test teams to complete more tests in
less time,” says Buckellew. “We can better utilize our resources and cost-effectively
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deliver high-quality solutions to our customers as a result”
Key Components
Software -IBM Tivoli Provisioning Manager
Server -IBM System x™ running Red Hat Linux®
On Demand Business Benefits
• Automating manual processes improves operational efficiency, driving
expected savings of more than $2 million a year
• Leveraging best practices drives greater consistency to help minimize human
errors and speed the execution and accuracy of the testing process
• Improving the reliability of the testing environment helps testers identify the
source of code defects more quickly and retest with confidence
• Enabling testers to focus on testing, rather than preparing environments,
enables better utilization of staff skills
Why is quality important?
The most successful organizations are those that give customers what they want.
Satisfied customers are loyal to those suppliers they feel best understand their
requirements. As a result they will make repeat purchases and will recommend a
business to their friends.
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There are two main types of customers for a business:
• end customers - people like you and me, looking to buy an iPod or plasma
screen television
• organizational customers - for example, a company recording audio CDs
would buy in blank CDs, record music to them and sell them on as a finished
product.
When you buy a piece of electrical equipment, you will want to know a lot of
information about its specification. Obvious information that you will be looking for
include:
• Is it safe?
• Does it do what I want?
• Does it meet the required standards?
As a customer you will have a lot more confidence in products you know have been
tested and meet British, European and International Standards. In the same way,
your school will want to purchase gym and science lab equipment that meets the
specifications of the safety standards.
Businesses therefore benefit from working with IBM to meet standards, because:
• Standards protect consumers' fundamental right to safety, the right to be
informed and the right to choose. These rights relate to products, services,
processes and materials.
• Standardization promotes effective research and development, and makes
products easier to use.
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ii. aims to improve customer satisfaction as a result of applying the system. This
includes continually improving the system.
ISO 9001 sets out eight quality management principles. These include:
• customer focus
• leadership - a commitment to quality by the leaders of the organization
• involvement of people - everyone in the organization having a part to play
• making sure that those processes which create quality are identified
• continual improvement of the system.
In practical terms, organizations wishing to apply QMS take the following steps:
1. Read and understand the standard. They read through the literature and discuss
any issues with IBM.
2. Use supporting literature and software tools to help understand, develop and
implement QMS.
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3. Involve top management (heavily) in developing a quality management plan.
Typically a Quality Manager will be responsible for the initiative.
4. The Quality Manager can be trained in ways of implementing the standard.
5. The QMS is then created and put into practice.
6. When the organization feels confident it is meeting the standard, it informs an
assessor, who will assess the effectiveness of the QMS. If it meets the standard a
certificate will be awarded. This is subject to regular reviews.
Implementing a quality system – external
Internal systems are ones that are built inside an organization. However, in addition,
modern businesses need to build external systems. External systems are those that
involve people outside the organization - e.g. suppliers.
Today, many businesses have long supply chains in which they source materials,
parts and finished goods from across the globe.
Take, for example, a modern plasma screen television. Some of the componentsmay come from India, others from China, or Eastern European countries. These
separate components will then be assembled into a sub-assembly i.e. part of the
finished television. This sub-assembly may take place in India, whilst a number of
parts may then be transported and delivered to a final assembly plant in Wales.
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This has led to a change in attitude. Instead of a company having a 'them' and 'us'
attitude - where 'them' are the suppliers, it now makes sense to see the process as a
shared one in which everyone relies on each other. This is known as
interdependence
Conclusion of Case Study
In world trade, for buyers and sellers to work together there must be trust. Standards
can provide the necessary bridge of confidence and understanding that builds mutual
trust, helping trade to thrive.
Sales are the lifeblood of any business, so the implementation of standards helps
sales. This is the case whatever the size of the business or the sector they are
operating in.
Establishing clear standards creates order in an increasingly complex world.
Standards meet changing market needs and are customer driven. Businesses benefit
from standards because they establish ground rules that help to guarantee quality.
Achieving certification to a standard might add reassurance for its customers and
enables a business to boost its sales performance. Consumers benefit because their
safety and their satisfaction are both greatly enhanced. Governments benefit because
such measures contribute to greater productivity and economic growth, and safer
work, leisure and home environments.
IBM was the world's first national standards making body. Today it is the most
prestigious international standards institution. It works with the British government,
manufacturers and other stakeholders to create quality standards. These guarantee
fitness for purpose, and help British manufacturers to gain a competitive edge both
in the UK and internationally. IBM assists British businesses in all markets to grow
and to concentrate on meeting customers' requirements.
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TEXT REFERENCES
1. “HANDBOOK OF TOTAL QUALITY MANAGEMENT”, R.P.MOHANTY
2. WWW.ISIXSIGMA.COM
3. WWW.WIKEPEDIA.COM
4. “TQM TOOLS AND TOOL KITS”, J.ReVelle
5. WWW.360-IBM.COM
DIAGRAMATIC REFERENCES
1. WWW.YEADONINC.COM/DIAGRAM.GIF
2. WWW.QAPROJECT.ORG/IMAGES/SCATTERDIAGRAM.GIF