HRM_Total Quality Management(1)_2

8/7/2019 HRM_Total Quality Management(1)_2

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TOTAL QUALITYTOTAL QUALITY

MANAGEMENTMANAGEMENT

BY:

VINAY SHIRSATH (C-22)

MOHIT MISHRA(C-23)

PREETI GOEL (C-24)

V.SHRIVIDYA (C-25)



ProductivityProductivity

� Productivity ² relation between input and

output

� Focus on intensive utilization of capital

and resources rather than extensive

� Focus on all angles of the organisation,

not just the financial



Quality Quality -- Def initionsDef initions

y Quality is excellence that is better than aminimum standard.It is conformance to standards and

¶fitness of purpose· y ISO 9000:2000 definition of quality-

It is the degree to which a set of inherent characteristics fulfills

requirements.y Quality is ¶ fitness for use ¶ of the pr oduct ²

Joseph Juran



Def initions:Def initions:

y FEIGENBAUM (1983) DEFINED QUALITY AS FOLLOWS Quality is total composite product (goods and services)

characteristics, through which the product in use will meet theneeds and expectations of the customers.

Concept of quality must start with identification of customer

quality requirements and must end only when the finishedproduct is placed into the hands of the customer who remainssatisfied through various stages of relationship with the seller

y American Society of Quality Control (ASQC) and AmericanNational Standard Institute (ANSI) defined

Quality is totality of features and characteristics of product(goods and services) that bears on its ability to satisfy givenneedsµ



Quality and customer Quality and customer

expectationsexpectationsy Quality is also defined as excellence in the

product or service that f ulf ills or exceeds the expectations of the customer .

y There are 9 dimensions of quality thatmay be found in products that producecustomer-satisfaction.

y Though quality is an abstract perception,it

has a quantitative measure- Q= (P / E ) ,where Q=quality,P= per f ormance(as measur ed by the Mfgr .), and E =expectations( of the customer )



The 9 dimensions of QualityThe 9 dimensions of Quality

Service Features

Performance

Cost

Per f ormanceFeatur esConf ormance

-----------------------------

ReliabilityDurabilityService

-----------------------------

Response- of Dealer / Mfgr . to

Customer Aesthetics ² of productReputation- of Mfgr ./Dealer



Def inition: Def inition: TQMTQM

y Total ² Made of whole

y Quality ² Degree of excellence a product

or service provides

y Management ² Act, art or manner of

handling, controlling, directing etc.

y Therefore, TQM is the art of managing

the whole to achieve excellence.



y ´ TQM is the management approach of

an organization , centered on quality,

based on the participation of all its

members and aiming at long term successthrough customer satisfaction, and

benefits to all members of the

organization and to society ´



EVOLUTION OF QUALITYEVOLUTION OF QUALITY

CONTROLCONTROL.

MassInspection

QualityControl

Quality

Assurance

Total QualityControl

Company

wide Quality

Control

TOTAL

QUALITY

MANAGE

MENT



EVOLUTION OF QUALITYEVOLUTION OF QUALITY

MANAGEMENTMANAGEMENT



TQM 6 Basic ConceptsTQM 6 Basic Concepts

y Management commitment to TQM principles and methods & long term Quality plans f or

the Or ganizationy Focus on customers ² internal

& external

y Quality at all levels of thework f orce.

y Continuous improvement of the production/business process.

y Tr eating suppliers as partners

y Establish per f ormancemeasur es f or the processes.



GURUS OF TQMGURUS OF TQM

Dr. W E Deming Dr. J M Juran Dr. Philip Crosby



GURUS OF TQMGURUS OF TQM

Dr. Genichi Taguchi Dr. Kaoru Ishikawa



W E DemingW E Deming

y Reduction in process variability by extensiveuse of statistics will lead to improvement inquality and increase in productivity

y Talked about New Climate (organisationalculture)

Joy in work

Innovation

Co-operation

y Win-Win approach

y He proposed a 14 point TQM programme



W E Deming 14 Points W E Deming 14 Points



W E DemingW E Deming ² ² PDCAPDCA

Cycle

Cycle



J M JuranJ M Juran

y Developed the idea of trilogy Quality Planning

Quality Improvement

Quality Controly Conformance to specifications is

necessary but not sufficient requirementof a product.

y Fitness for use by the consumer of thetargeted market segment is an essentialrequirement in addition to conformance



Juran·s 10 PointsJuran·s 10 Points

y Build awareness of need and opportunities forimprovement

y Set goals for improvement

y Organise the overall improvement programmey Provide the trainingy solve problems through project methodology

y Report progress

y Give recognition

y Communicate resultsy Keep scorey Institutionalise the improvement process



Philip CrosbyPhilip Crosby

y Do it right the first timey Zero Defects

y Absolutes of QM Quality is defined as conformance to requirements,

not as 'goodness' or 'elegance' The system for causing quality is prevention, not

appraisal ² Quality is Free

The performance standard must be Zero Defects, not"that's close enough"

The measurement of quality is the Price of Non-conformance, not indices.

Cost of quality is only the measure of operationalperformance



Crosby 14 pointsCrosby 14 points

y Management commitment

y Quality improvement team

y Quality measurement

y Evaluation of cost of quality

y Quality awarenessy Corrective action

y Establish committee for zero defect planning

y Supervisor training

y

Zero Defect Dayy Goal Setting

y Error cause removal

y Recognition



7 QUALITY CONTROL7 QUALITY CONTROL

TOOLSTOOLS

1. Flow charts

2. Check sheets

3. Histograms

4. Pareto diagrams

5. Cause-and-effect diagrams

6. Scatter diagrams7. Control charts



QUALITY MANAGEMENTQUALITY MANAGEMENT

AWARDSAWARDS

y ISO 9000: 2000y Created by International Organization for

Standardization (IOS) which was created in 1946to standardize quality requirement within theEuropean market.

y IOS initially composed of representatives from 91countries: probably most wide base for qualitystandards.

y Adopted a series of written quality standards in1987 (first revised in 1994, and more recently

(and significantly) in 2000).y Prefix ³ISO´ in the name refers to the scientific

term ³iso´ for equal . Thus, certified organizationsare assured to have quality equal to their peers.



ISO 9000: 2000ISO 9000: 2000

y Defines quality systems standards based onthe premise that certain genericcharacteristics of management principlescan be standardized .

y And that a well-designed, well-implementedand well managed quality system provides

confidence that outputs will meet customer expectations and requirements.

y Standards are recognized by 100 countries

including Japan and USA

.y Intended to apply to all types of businesses.(Recently, B2B firm bestroute.com becamethe first e-commerce company to get ISOcertification.)



ISO 9000: 2000 structur eISO 9000: 2000 structur e

y Consists of three documents

1. ISO 9000 ± Fundamentals and vocabulary.

2. ISO 9001 ± Requirements.Organized in four sections: ManagementResponsibility; Resource Management;Product Realization; and Measurement,Analysis and Improvement.

3. ISO 9004 ± Guidelines for performanceimprovements.



RELATED CONCEPTSRELATED CONCEPTS

y Kaizen

y 5 S

y Six sigma



K AIZENK AIZEN

y Kaizen ² Change for Good

y K aizen- def ines the managements role in continuously encouraging

and implementing small improvements in the individual &or ganization.

y Br eak the complex process into sub-processes and then improvethe sub-processes.

y Continuous improvements in small incr ements mak e the process mor e eff icient ,controllable and adaptable.

y Does not r ely on mor e expense,or sophisticated equipment and techniques.



5 S5 S

y Seiri ² Sorting

y Seiton ² Straighten or Set

in ordery Seiso ² Sweeping, shining

or cleaniness

y Seikestu ² Standardisingy Shitsuke ² Sustaining the

discpline





Six SigmaSix Sigma

y Business improvement approach thatseeks to find and eliminate causes of defects and errors in processes byfocusing on outputs that are criticalto customers.

y The term Six Sigma is based on astatistical measure that equates 3.4or fewer errors or defects per millionopportunities.

y Motorola pioneered the concept of Six Sigma.

y The late Bill Smith, a reliabilityengineer is credited with conceivingthe idea of Six Sigma.

y GE (specifically CEO Jack Welch)extensively promoted it



CASE STUDY :CASE STUDY : TOYOTATOYOTA



..

.

Philosophy(Long-term Thinking)

People andPartners

(Respect, Challenge

and Grow Them)

Process(Eliminate Waste)

ProblemSolving

(Continuous

Improvement

& Learning)

�Continual organizational learning through Kaizen

�Go see for yourself to thoroughly understand thesituation (Genchi Genbutsu )

�Make decisions slowly by consensus, thoroughlyconsidering all options; implement rapidly

�Grow leaders who live the philosophy

�Respect, develop, and challenge your

people and teams

�Respect, challenge, and help your suppliers

�Create process ´flowµ to surface problems

�Use pull systems to avoid overproduction

�Level out the workload (Heijunka)

�Stop when there is a quality problem (Jidoka)�Standardize tasks for continuous improvement

�Use visual control so no problems are hidden

�Use only reliable, thoroughly tested technology

�Base management decisions on a

long-term philosophy, even at the

expense of short-term financial goals

Toyota·sTerms

´4 Pµ Model of the Toyota Way



..

.PEOPLE

Long ² term Asset ²> Learned Skills

Machinery Depreciates -> Loses Value

People Appreciates -> Continue to Grow

PHILOSOPHICAL

Technical

� Stability

� JIT

� Jidoke� Kaizen

� Heijunka

Management� True North� Tools to Focus

Management Attention� Go and See

� Problem ² Solving� Presentation Skills

� Project Management

� Supportive Culture

Philosophy / Basic Thinking� Customer First

� People are most Important Asset

� Kaizen� Go and See -> Focus on Floor

� Give feedback to Team Members and Earn Respect� Efficiency Thinking

� True (vs. apparent) Condition

� Total (vs. Individual) Team Involvement

Toyota·s Leader ViewToyota·s Leader View



OTHER USERS OF TQMOTHER USERS OF TQM



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HRM_Total Quality Management(1)_2