UNIT-1Introduction to quality management

PRESENTED BYN.VIGNESHWARI

Today’s topic

Benefits, awareness and obstacles of TQM

Benefits of TQM

Better employee retentionsImproved operational performanceGreater customer satisfactionIncreased financial performance

Better employee retentions

One of the most important features in implementing a successful TQM system is attaining a highly involved and motivated workforce. Leading companies are using several key indicators to measure the extent to which their focus on quality leads to improvement in employee job satisfaction, attitudes, and behavior. These key indicators include employee satisfaction, employee attendance, employee turnover, safety and health, and number of suggestions made to improve quality and / or lower costs.

Improved operational performanceOrganizations operational performance

indicators measure the quality and cost of their products and services. Leading companies are using their measures to access the impact of quality management on their operations. These measure include reliability, timeliness of delivery, order processing time, production errors, inventory turnover, quality costs and cost savings

Greater customer satisfaction Many leading companies have changed their

traditional view that quality involves merely meeting technical specifications. They now recognize that the customer defines quality and that companies must focus on meeting customer needs and expectations. Customer satisfaction is defined in terms of new customer referrals, fewer customer complaints, and high customer retention.

Increased financial performance

The impact on a company’s “bottom line” or operating results was measured by several ratios. One important measure used is market share. Companies that build market share on the basis of improved product / service quality and value, believe it is the route to increased profitability. Other measures include productivity and profitability expressed as sales per employee, and sales per a comparable retail store; return on assets; and return on sales

Awareness

Status surveyOpinion survey

Status survey

This would be desirable before conducting the awareness program. The results would form the basis for formulating specific issues and chalking out a road map for follow-up exercises. This could provide the material for a technical session in the awareness program

Opinion survey

Frequently a rapid and less taxing opinion survey of all persons of the rank of managers and above in the company would bring – out gut issues and improvement projects of a short-term nature. The results would provide the basis for short-term action plan

Obstacles (or) barriers to TQM implementationLack of top management commitment and visionCompany cultureFlavor of the month attitudeDepartment based thinking and actionsPoor appreciation of the conceptsLack of structure of TQM activitiesDeciding how to startGaining the involvement of non-manufacturing

departmentsIneffective leadershipIgnore external processFail to understand relationshipDifficulty in implementation

Lack of top management commission and vision

When the senior officers of the firm / company are not committed TQM cannot be implemented.

Company culture

When TQM is to be introduced, it needs adjustments in work practices and culture of the organization. Changing the company culture takes a long time. This can be achieved easily by taking the departments and people into confidence

Flavor of the month attitude

TQM is a continuous process. It is making quality improvement a ‘habit’. There is no end-point to it, so TQM should not be considered as the flavor of the month or year, this attitude should change.

Department based thinking and actions

TQM implementation plan should cover all the departments. There should be enough communication between departments. Companies should shed their department based thinking style in order to implement TQM effectively.

Poor appreciation of the concepts

TQM has been effective in bringing about a good change in many companies. The experiences of the senior managers from these companies can be shared, so that TQM concepts and principles can be appreciated by all. Poor appreciation of the concepts and principles of TQM stands as an impediment in the implementation of TQM

Lack of structure of TQM activities

Quality improvement techniques are not generally taught as part of the curriculum-people learn it out of experience. Lack of an organized training program, and not assessing the needs of various individuals and departments are the main obstacles in implementing TQM

Deciding how to start

TQM is a continuous process which has no starting point and no end point the only objective is quality improvement, therefore, companies usually waste a lot of time in, “deciding how to start”. This its one of the barriers to TQM implementation

Gaining the involvement of non manufacturing departments

TQM is a group activity. It involves changes in work practices and culture of the organization. It is difficult and takes a long time. The best way to overcome this is to anticipate this and take the concerned departments and people into confidence

Ineffective leadership

TQM is a group activity. It needs an effective leadership. The team members and leaders have to be adequately trained and given the responsibility to do improvements in their work area. This is also known as empowerment. Ineffective leadership, inadequate empowerment, and lack of trust are barriers to TQM implementation.

Ignore external process

The advantages with TQM are that it will require its managers to concentrate immensely on internal processes of the company. But a major drawback is that, if managers concentrate too much on internal processes, the external processes like keeping in touch with shifting perceptions and preferences of customers will be ignored and the company is bound to take beating.

Fail to understand relationship

In a lot of cases, managers fail to understand the angles of relationship with suppliers and customers. Mutual trust and support are the keys to success

Difficulty in implementation

Quality should be understood in the same spirit and language both by the management and employees, otherwise implementation becomes difficult

Thank you