ITEC Project, Nasir of Bangladesh

Adoption of TQM through Implementation of Quality Circles and Six Sigma in Context of Bangladesh

National Institute for Micro, Small & Medium Enterprises

International Training Programme 2012 - 2013

TOTAL QUALITY MANAGEMENT & ISO 9001:2008/14001:2004/BS 7799 & SIX SIGMA (TQM)

(12 November, 2012 – 04 January, 2013)

PROJECT REPORT

Programme Director:

DR.N.SRILAKSHMI Head, C-LAIMS &HEAD, LPC

AN UK CERTIFIED & APPROVED LEAD AUDITOR & TUTOR (IRCA & EARA)ISO 9001:2008 &14001:2004/OHSAS: 18001 & TQM/SIX SIGMA &

NAAC (UGC, India) ASSESSOR

At

National Institute for Micro, Small & Medium Enterprises (An Organisation of Ministry MSME, Government of India)

Yousufguda, Hyderabad, India


National Institute for Micro, Small & Medium Enterprises

TOTAL QUALITY MANAGEMENT & ISO 9001:2008/14001:2004/BS 7799 & SIX SIGMA (TQM)

The Project Report On

Adoption of TQM through implementation of Quality Circle and Six Sigma in Context of

Bangladesh

As a partial fulfillment of training programme

Presented by Mr. Md. Nasirul Islam

Country: Bangladesh

Submitted: December 12, 2012


CERTIFICATE

This is to certify that Mr. Md. Nasirul Islam, Deputy Director and Mr. Mohammed

Abbas Alam, Assistant Director of Bangladesh Accreditation Board, Ministry of

Industries, Bangladesh participated at 8 weeks International Training Programme

on “Total Quality Management & ISO 9001:2008/14001:2004/BS 7799 & Six

Sigma (TQM)” held from 12th November, 2012 to 04th January, 2013 at the

National Institute for Micro, Small & Medium Enterprises (NIMSME), Hyderabad

(India). This project report is hereby submitted in partial fulfillment of the

mandatory requirement for successful completion of the program.

…………………………………………………………..

Dr.N.Srilakshmi

Programme Director


ACKNOWLEDGEMENT

First of all we express our unfathomable admiration to almighty Allah, who is so kind

and keep us healthy and give us capability to complete the training program.

I,Md. Nasirul Islam, Deputy Director of Bangladesh Accreditation Board would like to

articulate our sincere gratitude to the Government of India for sponsoring our study Tour

program in “Total Quality Management & ISO 9001:2008/14001:2004/BS 7799 & Six

Sigma (TQM)” at NIMSME, Yousufguda, Andrapadesh, Hyderabad in India.

I am profoundly beholden to my cherished Teacher, Dr. N. Shrilakshmi, Programmed

Director, “Total Quality Management & ISO 9001:2008/14001:2004/BS 7799 & Six

Sigma (TQM)” for her kind instruction to keep forward my training program, and for

providing all the amenities throughout the training and also about writing this paper. Her

continuous assistance, positive criticism, back-up and motivation have made this project

paper successful. We also gratitude to all speakers who made our classes enjoyable and

easily deceivable. We thanks all faculty members of ni-msme for their heart and soul

helping.

I would like to covey my heartfelt thanks to Director General of the NIMSME family for

their assistance and co-operation.

We also thank the Director General of Bangladesh Accreditation Board, Ministry of

Industries the Government of Bangladesh which has appointed as for the training and its

valuable support in the course of processing this scholarship. We cannot express our

appreciations feelings in words, but to promise to implement the knowledge gained in our

place of work for the benefit of entire Bangladesh.

And finally my earnest thanks to all my friends, family members and well-wishers for

their encouragement and repercussion.

The Author

12 December, 2012


ABSTRACT

There is considerable and growing interest in quality. The reasons for this includes

customers increasingly demanding quality products, tougher competition in the market

places, demands for improved profitability, growing complexity of goods and services

and product liability legislation. This is evident not only in the manufacturing sector but

also in the services sector.

For an organization to produce quality products/services to meet customer satisfaction or

rather customer delights, among important things, every organization should practice

Total Quality Management.

In order an organization to establish a total quality management system, then salient

features of such a system are found in relevant standards which is a generic management

system and can be customized to any type and size of an entrepreneur.

This project report will help to create a broader perspective on how to implement Total

Quality Management System in our organizations for continual improvement and

effectiveness in accordance with the standard requirements.


ABBREVIATIONS

BAB Bangladesh Accreditation Board CFTs Cross Functional Teams CWQC Company Wide Quality Control FMEA Failure More Effects Analysis

ISO International Organization for Standardization

IEC International Electro technical Commission

JIT Just In Time

NIMSME National Institute for Micro, Small and Medium Enterprises

PDCA Plan , Do , Check , Act R & D Research and Development

SGAs Small Group Activities

SPC Statistical Process Control

TEI Total Employee Involvement

TOPS Team Oriented Problem Solving

TS Technical Specification

TQM Total Quality Management

WITs Work Improvement Teams

WTO World Trade Organization


TABLE OF CONTENTS

Contents Pages

Certificate………………………………………………………………….3

Acknowledgement…………………………………………………………4

Abstract…………………………………………………………………….5

Abbreviations………………………………………………………………6

Table of Contents…………………………………………………………..7

1.0 INTRODUCTION……………………………………………………..9

1.1 Total Quality Management – an overview…………………………….9

1.2 Background of the problem……………………………………………10

1.3 Project objectives……………………………………………………...11

2.0 LITERATURE REVIEW……………………………………………..13

2.1 3 Principles of TQM…………………………………………………..13

2.2 The concept of continuous improvement by TQM……………………14

2.2.1 Three major mechanism of prevention………………………15

2.3 Implementation principles and processes………………………………15

2.4 Steps in managing the transitions………………………………………17

2.5 Elements of a Total Quality Management Program……………………20

2.6 Total Quality Management and Leadership……………………………20

2.6.1 Four phases for TQM………………………………………….21

2.6.2 The right type of leader………………………………………..22


2.6.3 Strategic quality development…………………………………23

2.6.4 How quality benefits employees………………………………24

2.6.5 Keep customers satisfied……………………………………………………25

2.6.6 Process oriented approach……………………………………………..26

2.6.7 Persistence of Quality Process…………………………………………26

2.6.8 Rewarding verified quality improvements……………………………..27

2.6.9 Legal aspects and responsibility………………………………………..27

2.6.10 8 – TQM tools……………………………………………………….29

3.0 THE NEED FOR ADOPTION OF TQM IN BANGLADESH…………………...36

3.1 Introduction………………………………………………………………………36

3.2 TQM in ministries………………………………………………………………..37

3.3 TQM in governmental Agencies, Authorities and Institutions…………………..38

4.0 CONCLUSION…………………………………………………………………..39

5.0 REFERENCES…………………………………………………………………...41


1.0 INTRODUCTION

1.1Total quality management: an over view

TQM views an organization as a collection of processes. It maintains that organizations

must strive to continuously improve these processes by incorporating the knowledge and

experiences of workers. The simple objective of TQM is "Do the right things, right the

first time, every time". TQM is infinitely variable and adaptable. Although originally

applied to manufacturing operations, and for a number of years only used in that area.

TQM is now becoming recognized as a generic management tool, just as applicable in

service and public sector organizations. There are a number of evolutionary strands, with

different sectors creating their own versions from the common ancestor. TQM is the

foundation for activities, which includes:

• Commitment by senior management and all employees

• Meeting customer requirements

• Reducing development cycle times

• Just In Time/Demand Flow Manufacturing

• Improvement teams

• 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, Service, Engineering, R&D, Sales, Purchasing, etc.

1.2 Background of the problem

There are considerable reasons for practicing Total Quality Management; customers

increasingly demanding quality products and services, tough and delicate competition in

the market places, demands for improved profitability, growing complexity of products

and product liabilities on legislations. This is evident not only in the manufacturing but

also in the services sector. The importance of quality is growing constantly in both the

private and the public sector. At least the private sectors have started the implementation

and some few have already certified in the same. It is inevitable that the Government

sector should take the necessary step if they want to be efficient and spear head good


performance economically, socially and politically. Nothing can be achieved without a

guidance system in place.

Has this growing interest in quality resulted in the production of goods and services of

better quality? Do companies and organizations now work on the questions more

efficiently than they used to? Unfortunately, it is not possible to answer this question with

an unconditional yes because in many cases, only marginal results have been achieved

Many organizations concern themselves with production of goods and services without

integrating quality aspects because of lack of knowhow, lack of exposure and sometimes

thinking that implementing Total Quality Managements is very costly than the

organization can manage. Some organizations still think that Total Quality Management

are for developed countries and not yet applicable for them.

Very few analyses are ever made of what it is really needed. A methods-oriented

approach takes precedence over a results-oriented approach. In consequences many

companies and organizations have not made much progress along the path to excellence.

The underlying causes of this situation in Bangladesh are immaturity and irresponsible.

However, in western countries, India and Japan, the situation is rather different. Japan’s

export-oriented manufacturing enterprises demonstrate a remarkable degree of maturity

in this field. Working to improve quality is something integrated in their daily

undertakings. It is an integral part of their business activities.

1.3 Project objective


The main objective of this project report is to apply the knowledge obtained from Total

Quality Management Training in different organizations and operations in Bangladesh.

The project report will give the principles underlying this system, how to implement and

the cost benefit analysis.


2.0 LITERATURE REVIEWS

2.1 Five Principles of TQM

The key principles of TQM are as following:

• Management Commitment

(i) Plan (drive, direct)

(ii) Do (deploy, support, participate)

(iii) Check (review)

(iv) Act (recognize, communicate, revise)

• Employee Empowerment

(i) Training

(ii) Suggestion scheme

(iii) Measurement and recognition

(iv) Excellence teams

• Fact Based Decision Making

(i) SPC (statistical process control)

(ii) DOE, FMEA

(iii) The 7 statistical tools

(iv) TOPS (FORD 8D - Team Oriented Problem Solving)

• Continuous Improvement


(i) Systematic measurement and focus on CONQ

(ii) Excellence teams

(iii) Cross-functional process management

(iv) Attain, maintain, improve standards

• Customer Focus

(i) Supplier partnership

(ii) Service relationship with internal customers

(iii) Never compromise quality

(iv) Customer driven standards

2.2 The concept of continuous improvement by Total Quality Management

TQM is mainly concerned with continuous improvement in all work, from high level

strategic planning and decision-making, to detailed execution of work 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 the whole process of 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 processes.

2.2.1 Three major mechanisms of prevention

• Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-

Yoke).

• 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).

• Where mistakes reoccur, stopping production until the process can be

corrected, to prevent the production of more defects. (Stop in time).

2.3 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, 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 ideas 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.

2.4 Steps in managing the transitions

Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a

new system such as TQM; identifying tasks to be done, creating necessary management

structures, developing strategies for building commitment, designing mechanisms to

communicate the change, and assigning resources.

Task identification would include a study of present conditions (assessing current reality,

as described above); assessing readiness, such as through a force field analysis; creating a

model of the desired state, in this case, implementation of TQM; announcing the change

goals to the organization; and assigning responsibilities and resources. This final step

would include securing outside consultation and training and assigning someone within

the organization to oversee the effort. This should be a responsibility of top management.


In fact, the next step, designing transition management structures, is also a responsibility

of top management. In fact, Cohen and Brand (1993) assert that management must

be heavily involved as leaders rather than relying on a separate staff person or function to

shepherd the effort. An organization wide steering committee to oversee the effort may

be appropriate. Developing commitment strategies was discussed above in the sections on

resistance and on visionary leadership.

To communicate the change, mechanisms beyond existing processes will need to be

developed. Special all-staff meetings attended by executives, sometimes designed as

input or dialogue sessions, may be used to kick off the process, and TQM newsletters

may be an effective ongoing communication tool to keep employees aware of activities

and accomplishments.

Management of resources for the change effort is important with TQM because outside

consultants will almost always be required. Choose consultants based on their prior

relevant experience and their commitment to adapting the process to fit unique

organizational needs. While consultants will be invaluable with initial training of staff

and TQM system design, employees (management and others) should be actively

involved in TQM implementation, perhaps after receiving training in change

management which they can then pass on to other employees. A collaborative


relationship with consultants and clear role definitions and specification of activities must

be established.

In summary, first assess preconditions and the current state of the organization to make

sure the need for change is clear and that TQM is an appropriate

strategy. Leadership styles and organizational culture must be congruent with TQM. If

they are not, this should be worked on or TQM implementation should be avoided or

delayed until favorable conditions exist.

Remember that this will be a difficult, comprehensive, and long-term process. Leaders

will need to maintain their commitment, keep the process visible, provide necessary

support, and hold people accountable for results. Use input from stakeholder (clients,

referring agencies, funding sources, etc.) as possible; and, of course, maximize employee

involvement in design of the system.

Always keep in mind that TQM should be purpose driven. Be clear on the organization's

vision for the future and stay focused on it. TQM can be a powerful technique for

unleashing employee creativity and potential, reducing bureaucracy and costs, and

improving service to clients and the community.

TQM encourages participation amongst shop floor workers and managers. There is no

single theoretical formalization of total quality, but Deming, Juran and Ishikawa provide

the core assumptions, as a "...discipline and philosophy of management which


institutionalizes planned and continuous... improvement ... and assumes that quality is the

outcome of all activities that take place within an organization; that all functions and all

employees have to participate in the improvement process; that organizations need both

quality systems and a quality culture.".

2.5 Elements of a Total Quality Management Program

The following elements are essential in any successful quality management program:

(i) Management commitment to total quality management.

(ii) Training in simple statistical techniques, the nature of samples, collecting

data, variation and the program to be implemented.

(iii) Organization structure emphasizing work group authority and accountability

for results.

(iv) Statistical process Control (SPC) system to monitor and control process

variab$ le variation.

(v) Formal performance reports based on output from the SPC system.

(vi) Systemized team approach to problem solving.

(vii) Continuing emphasis on reducing variation in the product process.

2.6 Total Quality Management System and Leadership

The role of the leader is always discussed in a management training program. Leadership

is vitally important in relation to introducing and implementing Total Quality


Management (TQM), and effective goal-oriented leadership is in fact a prerequisite for

the long-term survival of the organisation.

2.6.1 Four phases for TQM

In general, launching a process for Total Quality Management can be seen as comprising

four phases.

The first phase involves insight into quality, as top management defines the company's

concept of quality.

The second phase involves strategic quality planning, which requires defining various

areas of operations that should be improved. (such as, leadership, information and

analysis, strategic planning, employee development, business processes, business results

and customer satisfaction). These areas are linked to the company's three major goals, i.e.

satisfied customers, satisfied owners and satisfied personnel.

The third and fourth phases of launching TQM involve education & training for everyone

in the company from top management to all employees and continuous improvement

both in the respect of business process improvement as well as daily work improvement.


DecisionInsight Preparation Training

Education

Improvement

change

Do we need to

start a quality

process?

Key persons appointed

Rough assesment of

present situation

Strategic work plan

Management

Middle management

Other employees

A DC

P

2.6.2 The right type of leader

It should be emphasised that the success of a TQM process is largely dependent on a total

commitment from management, as well as on management's perception that the right sort

of leadership must be provided. It is management and management alone who have the

ultimate responsibility for preparing and implementing TQM. The process of selecting

leaders for TQM should be carefully weighed with respect to the leadership qualities

described below.

Leadership in implementing quality process calls for someone who is totally quality-

conscious, and who understands that quality permeates every activity and task. In other

words, those who lead quality work must have a personal, active and highly visible

involvement in quality improvement. Without setting an example through persistence and

a determination to get things right from the start, a quality leader will not be able to

inspire the employees with the proper feeling for quality.

Leading a program for quality also requires many of the traits that are generally

associated with leadership, such as experience, competence, consistency and high

credibility.


In addition, a good leader has the skills to communicate with people, and the flexibility to

handle different types of personnel so that they achieve results that correspond to their

capacities. Leadership must also be based on an ability to handle conflicts and make

decisions at the right time.

2.6.3 Strategic quality development

In practical terms, leading a TQM program requires defining a vision that everyone in the

company can understand, as well as setting up sub-goals that the employees can

realistically be expected to achieve. Targets should be set up within the framework of a

timetable that is integrated in the strategic plan.

Tracking the progress of quality improvement work is facilitated by selecting a limited

number of key indicators. The quality leader should ensure that there is a clear and

consistent procedure for monitoring these indicators.

It is very important that the feedback from monitoring procedures is utilised properly.

The employees should be informed of the results, so that the process of quality

improvement becomes a reality for them.

Activities should be presented to the employees in pedagogical steps. The number of

activities presented should be limited, and they should be described and visualised

clearly. Each specific activity should be explained briefly and in practical terms.

A well-designed training program can be a highly effective tool in quality work. The

program's main objective should be to inform, involve and stimulate the


employees to ensure that the concept of Total Quality Management is understood and

accepted by everyone.

Improvement

areas

(Criterial)

Strategy Improvement Activities Goals Vision

Do

CheckPlan

Act

Satisfied

Customers

Satisfied

Employees

Satisfied

Customers

Business

Concept

2.6.4 How quality benefits employees

As indicated above, the three main goals of a company can be defined as customer

satisfaction, owner satisfaction and employee satisfaction. It may appear to some

employees that the introduction of Total Quality will mean less satisfaction for them, as it

may cut down on overtime and allowances.

In this context it is important to clarify right from the start that higher quality actually

benefits everyone in the company. Improved quality should be seen in the light of more

satisfied customers and owners, as well as the long-term survival of the organisation.

Employees must understand that their jobs depend on the company's survival, and that

this survival in turn depends on higher quality.


It can also be explained that while higher quality will mean less burdensome overtime, it

can also lead to greater job satisfaction as well as tangible benefits in the form of

bonuses.

2.6.5 Keeping customers satisfied

Focusing on the customer involves listening to the customer’s expectations, and the

employees of the organization concerned must maintain a dialogue about quality with the

customers they serve.

One prerequisite for maintaining this dialogue is that the company must satisfy its

internal customers, i.e. its employees. Satisfied employees find it easier to overcome fear

or hesitance in meeting customers. They are better prepared to show understanding of

customer needs, to represent their own company with pride and to act in accordance with

the company's quality policy.

It is important to approach customer complaints from a number of different angles. For

example, all employees may not be fully motivated to listen, understand and act on a

specific complaint.

In this case, the role of the quality leader will be to support the employees and find ways

of rewarding actions that improve quality. The leaders should be authorised to give

monetary rewards for action that enhances quality.


Here as well, the employees must have a clear grasp of how to improve quality and of the

results or quality activities. This means that they must learn to identify and associate

themselves with the company's primary goals as well as the entire concept of quality.

2.6.6 Process-oriented approach

Process orientation means seeing the company's activities as a continuous flow, not as a

set of separate departments with different working tasks. For example, the billing process

will involve several organisational units in everything from reading a customer's meter to

invoicing and recording of payment.

This is not always so easy, as many employees are accustomed to wait for orders, and

will only do what they are told or what they are used to.

The leader has to identify the employees who understand the process-oriented approach,

and persuade them to encourage their colleagues to participate. Properly designed

training programs and special projects can aid in spreading the understanding of the

process-oriented approach.

2.6.7 Persistence of quality process

Leadership requires persistence not only in implementation, but in rewarding progress in

the quality process. Persistence is expressed in consistently giving rewards and


acknowledgements to behaviour that enhances quality as well as in consistently pointing

out behaviour that has the opposite unwanted effects.

It can often be difficult to overcome pressure from informal groups or leaders who act

exclusively in their own interests. The leaders in the TQM process should take the

initiative in preparing ways and means to neutralise this pressure.

2.6.8 Rewarding verified quality improvements

The rewards provided for verified quality improvements vary between cultures, but in

most cases the entire spectrum of available rewards must be used. It should be

remembered that regular payments will come to be seen as a natural component of salary

and will lose their effects in the long run. At the other extreme, words of praise without

tangible rewards will have a similar negative effect in the long run.

Appropriate rewards can take the form of certificates of recognition, promotion, financial

bonuses, and publicity about the person or persons who have achieved results.

It is important to make these rewards as personal as possible, so that individual employee

will derive individual satisfaction. Teams should also naturally be given rewards. This

will in the long run foster the team concept and make quality efforts a part of the day to

day duties.

2.6.9 Legal aspects and responsibility


Throughout the telecommunications sector, there is a growing pressure for compliance

with standards such as the ISO 9000 series. Many customers are

already demanding that suppliers comply with one or more of these standards.

Companies without ISO certification are finding that they are sometimes not entitled to

submit tenders, and thus have obvious problems when it comes to survival.

Customers demand ISO certification because they believe that procuring products,

systems and services from ISO-certified companies helps guarantee a high standard of

quality in their own organisations. Job descriptions can include the obligation to meet the

standards for which the company is certified.

It is also highly probable that service agreements between customers and a supplying

company will be based on compliance with ISO standards. Personnel in ISO certified

organisation will have to follow standards, or else penalties will have to be paid to

customers who are experiencing faults.

In the long run, the legal aspect of quality and follow up may have more impact than

management programs

Quality is part of leadership - It can be seen from the above that leadership and quality

management are two concepts that are mutually inseparable. A Quality process is not


isolated activities in a company’s business operation - it comprises an absolutely essential

element of it.

On the one hand, quality cannot be improved without appropriate, effective leadership as

defined by top management.

On the other hand, the very fact that quality is an integral part of operations means that

quality is also a mean of managing the company. Above all, quality is a means of

achieving the company's primary goal of satisfying customers, owners and its own

personnel.

Total Quality Management (TQM) is a method by which management and employees can

become involved in the continuous improvement of the production of goods and services.

It is a combination of quality and management tools aimed at increasing business and

reducing losses due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor Company,

Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.

2.6.10 8-TQM Tools

Here follows a brief description of the basic set of Total Quality Management tools. They

are:

(i) Pareto Principle

(ii) Scatter Plots


(iii) Control Charts

(iv) Flow Charts

(v) Cause and Effect , Fishbone, Ishikawa Diagram

(vi) Histogram or Bar Graph

(vii) Check Lists

(viii) Check Sheets

(i) Pareto Principle

The Pareto principle suggests that most effects come from relatively few causes. In

quantitative terms: 80% of the problems come from 20% of the causes (machines, raw

materials, operators etc.); 80% of the wealth is owned by 20% of the people etc.

Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back to

back) Pareto charts can be used to compare 'before and after' situations. General use, to

decide where to apply initial effort for maximum effect.

(ii) Scatter Plots

A scatter plot is effectively a line graph with no line - i.e. the point intersections between

the two data sets are plotted but no attempt is made to physically draw a line. The Y axis

is conventionally used for the characteristic whose behavior we would like to predict. A

scatter plot is used to define the area of relationship between two variables.

Warning: There may appear to be a relationship on the plot when in reality there is none

or both variables actually relate independently to a third variable.


(iii) Control Charts

Control charts are a method of Statistical Process Control, SPC. (Control system for

production processes). They enable the control of distribution of variation rather than

attempting to control each individual variation. Upper and lower control and tolerance

limits are calculated for a process and sampled measures are regularly plotted about a

central line between the two sets of limits. The plotted line corresponds to the

stability/trend of the process. Action can be taken based on trend rather than on

individual variation. This prevents over-correction/compensation for random variation,

which would lead to many rejects.

See the example figures below.


(iv) Flow Charts

Pictures, symbols or text coupled with lines, arrows on lines showing direction of flow.

Enables modeling of processes, problems/opportunities and decision points identification.

Develop a common understanding of a process by those involved. No particular

standardization of symbology, so communication to a different audience may require

considerable time and explanation.


See the example figure below.

(v) Cause and Effect, Fishbone, Ishikawa Diagram

The cause-and-effect diagram is a method for analyzing process dispersion. The

diagram's purpose is to relate causes and effects. Three basic types: Dispersion analysis,

Process classification and cause enumeration. Effect = problem to be resolved,

opportunity to be grasped, result to be achieved. Excellent for capturing team

brainstorming output and for filling in from the 'wide picture'. Helps to organize and

relate factors, providing a sequential view. Deals with time direction but not quantity.

Can become very complex. Can be difficult to identify or demonstrate interrelationships.


See the example figure below.

(vi) Histogram or Bar Graph

A Histogram is a graphic summary of variation in a set of data. It enables us to see

patterns that are difficult to see in a simple table of numbers. Can be analyzed to draw

conclusions about the data set.

A histogram is a graph in which the continuous variable is clustered into categories and

the value of each cluster is plotted to give a series of bars.

(vii) Check Sheets

A Check Sheet is a data recording form that has been designed to readily interpret results

from the form itself. It needs to be designed for the specific data it is to gather. Used for

the collection of quantitative or qualitative repetitive data.


Adaptable to different data gathering situations, minimal interpretation of results

required, easy and quick to use. No control for various forms of bias - exclusion,

interaction, perception, operational, non-response and estimations.

(viii) Check Lists

A Checklist contains items that are important or relevant to a specific issue or situation.

Checklists are used under operational conditions to ensure that all important steps or

actions have been taken. Their primary purpose is for guiding operations, not for

collecting data. Generally used to check that all aspects of situation have been taken into

account before action or decision making.

Total quality management (TQM) tools help organizations to identify, analyze and assess

qualitative and quantitative data that is relevant to their business. These tools can identify

procedures, ideas, statistics, cause and effect concerns and other issues relevant to their

organizations. Each of which can be examined and used to enhance the effectiveness,

efficiency, standardization and overall quality of procedures, products or work

environment, in accordance with ISO 9001:2008 standards.

3.0 THE NEED FOR ADOPTING OF TOTAL QUALITY MANAGEMENT IN

BANGLADESH’S ORGANIZATIONS

3.1 Introduction


Due to globalization, stiff competition among organizations, customer’s driven

performance to excellence, over changing customer requirements and great awareness of

quality among our people necessitate the adoption of Total Quality Management in

Bangladesh without delay. This should not be restricted among private sector only but

should be implemented in our Ministries, government agencies, authorities, institutions,

etc.

Bangladesh is trying and has successes in creating favorable environment for investor in

different sectors like mining, hotels, beverage manufacturing, agriculture,

pharmaceuticals, fish processing, education, banking, etc. but has not streamlined and

established a strong Management system to ensure alignment and matching in terms of

work performance efficiencies. As a result you find complaints with regards to

procedural bureaucracy, irresponsibility, low morale among workers, incompetency and

selfishness. In totality this becomes a major source of complaints from investors, donors

and public at large and stumbling blocks for development.

Governmental entities should reach a level why by they will be required to market their

activities and act in an efficient way as private sectors do. They have all the capability of

sustaining themselves instead of depending solely to the government for day to day

operations budgets.

Total quality management (TQM) has been defined as a management philosophy

embracing all activities through which the needs of the customer and the community, and


the objectives of the organization are satisfied in the most efficient and cost effective way

by maximizing the potential of all employees in a continuing drive for improvement.

Total quality management has been the fundamental business strategy of the

world’s leading organizations. In some developed countries such as Japan, the United

Kingdom and the United States of America, a number of organizations have adopted

TQM as a way of life for the continuous improvement of the quality of their products and

services to their customers. Quality, to these organizations is the ‘totality of features and

characteristics of a product or service that bear on its ability to satisfy stated or implied

needs.

Today, we are witnesses to quality products and services from Japanese, British and

American organizations.

3.2 TQM in Ministries

Governmental Ministries in Bangladesh as pillars and implementers of governmental set

goals, should inevitably adopt Total Quality Management System. They should indentify

all the processes involved, establish current status in term facilities, human resources,

requirements, etc. depending on the status, but they may need re – engineering their

processes and the use of external consultants. Things like fraud, over staffing, false

procurements, paying unavailable staffs, overspending, inefficiency, unfair training

programs, poor

recruitments, promotion and performance appraisal just to mention a few can be

corrected through implementing Total Quality Management.


3.3 TQM in Governmental Agencies, Institutions and Authorities

Many Governmental Agencies, Institutions and Authorities still hold a rather myopic

view that their services and products are so essential that people will use them as they

have always done without any additional effort on their part. They erroneously assume

that users’ needs are also satisfied because they come to seek for their services.

Unfortunately however, although they may regard themselves as indispensable, it is by no

means certain that those outside the profession share this view. This aversion however

seems strange, since marketing and efficiency places the user at the centre of all

activities. It is thusvery essential that efficiency and accountability across their processes

is wholly and quickly adopted if they are to add value to the development of Bangladesh

instead of being burdens to tax payers.

A controversy over the expansion of TQM into service-oriented organizations has to do

with the question of profit making. Business as we all know, are designed to make profit.

Governmental Agencies Institutions and Authorities, unfortunately, are not profit making

ventures and are considered to offer “free” service. It should be noted, however, that they

are not ‘free’. Customers may not be paying in full directly for their services but are

entitled to the service because of their taxes government resources and sometime donor’s

funds. Therefore Bangladesh’s have well and enough reasons to see these entities are

managed efficiently more than ever before, demanding accountability and value for

money. Precise justification of all resources to improve the competitiveness, effectiveness

and flexibility of the whole organization. Accountability is thus crucial both in the


business sector in general and in the governmental agencies, authorities and institutions.

This is yet another justification for the applicability of TQM to them.

Another reason why Governmental Agencies Institutions and Authorities should adopt

TQM is that it (TQM) embodies certain values and approaches, which are common and

already established concepts in them. These include the elements of participative

management, staff training and development and responsive service to customers.

However, several of the defining and extraordinary elements of TQM such as continuous

improvement, quality tools and measurement and customer-focused planning are not

commonly applied in Governmental Agencies Institutions and Authorities. It is for these

reasons that they are in a position to expand and improve upon principles they already

value and employ.

4. CONCLUSION

Over the years now since independence, governmental ministries, agencies, authorities

and institutions have been performing in the traditional ways. From the point of

recruitments, employments, business forecasting, performance and performance

appraisals, objective settings, objective achievements, etc. people were going to work just

because they were employed. The majority didn’t know their organization’s goals/targets

and their respective contributions towards stipulated targets.


In recent years, things are gradually changing. In all organizations either private or

governmental, awareness among customers being serviced is increasing. They are

demanding good quality services, customer driven performances and accountability.

Multipartism and freedom of expression is another part putting pressures, demanding

transparence and performance trucking among governmental organs. There is therefore

the need for all stakeholders to re – examine their traditional role and adopt an entirely

new culture which will satisfy the ever increasing demand for improved performance and

quality services to the clientele.

Governmental ministries, authorities, agencies and institutions in Bangladesh are indeed

in a time of great challenges if they have to meet Bangladesh’s expectations and bring the

country to a better level of development, then Total Quality Management must be

adopted to prevent the nation from imminent steps backwards.

5. REFERENCES

1. Beckhard, K. and Pritchad, S. (1992) ‘Basic steps in Managing transitions to new

systems’. 2nd Edition TATA McGraw-Hill


2. Cohen, G. and Brand, K. (1993) ‘Management and Leaders’. 1st Edition KANISHKA

PUBLISHERS, DISTRIBUTOR’S India.

3. Kauter, S. (1983) ‘Effective organization change’. 1st Edition Asoke K. Ghosh, New

Delhi, India.

4. Raj, D. (2006) ‘Quality Management Systems – Concepts, Strategies and

Requirements’. 1st Edition KANISHKA PUBLISHERS, DISTRIBUTOR’S India.

5. Singhal, D. and Singhal, K. (2008) ‘Implementing ISO: 2000 Quality Management

System – A reference Guide’. 1st Edition Asoke K. Ghosh, New Delhi, India.

6. Srilakshmi, N. (2008) ‘Total Quality Management / ISO

9001:2008/14001:2004/BS7799 & Six Sigma (TQM-XVI) Reading Materials’. NI –

MSME Yousufguda, Hyderabad – 500 045, India.

Documents

ITEC Project, Nasir of Bangladesh