Total Quality Management. What does TQM mean?.
What does TQM mean? • Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.
In TQM, • Total - Involvement of all levels in the organization • Quality - Conformance to agreed upon requirements • Management -Best use of available resources to achieve Total Quality
What’s the goal of TQM? “Do the right things right the first time, every time.”
Another way to put it At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives: (1) Total Client Satisfaction through quality products and services; and (2) Continuous Improvements to processes, systems, people, suppliers, partners, products, and services
Advantages of TQM >Helps to focus clearly on the needs of the market >Facilitate to aspire for top quality performer >Channelises the procedures necessary to achieve quality performance >Helps examine critically and continuously all processes to remove non-productive activities and waste >Gears organization to fully understand the competition and develop an effective combating strategy >Helps develop good procedures for communication >Helps revive the process needed to develop the strategy of never ending improvement
CUSTOMER SATISFACTION • LEADERSHIP • QUALITY POLICY TQM focuses on:- • ORGANISATION • STRUCTURE • TRANING • QUALITY COST • EMPLOYEE INVOLVEMENT • QUALITY CIRCLES • REWARD
Evolution of Quality Management • Mass Inspection • Quality Control (Acceptance Sampling) • Quality Assured • Company wide Quality Control • Total Quality Control
The Three aspects of TQM • Counting Tools • Customers Quality • Culture
Characteristics of Successful TQM Companies • The characteristics that are common to companies that successfully implement TQM in their daily operations are as follows: • Strive for owner/customer satisfaction and employee satisfaction • Strive for accident-free jobsites • Recognize the need for measurement and fact-based decision making • Arrange for employees to become involved in helping the company improve • Train extensively • Work hard at improving communication inside and outside the company • Use teams of employees to improve processes • Place a strong emphasis on the right kind of leadership. • Involve subcontractors and suppliers in continuous improvement. • Strive for continuous improvement
Quality TQM principles • People will produce quality goods and services when the meaning of quality is expressed daily in their relations. • Inspection of the process is as important as inspection of the product. • Probability of variation, can be understood by scientific methods. • Workers work in the system to improve the system; managers work on the system to improve the system. • Total quality management must be consistently translated into guidelines provided to the whole organization. • Envision what you desire , but start working from where you actually are. • Cleaner site and safer place to work is also important. • Accept the responsibility for quality. • Use the principle of get it right, the first time, every time. • Understand that quality is a journey, not a destination.
How to begin Continuous improvement • Start setting goals, and start meeting the goals you have set. • Management indicate complete commitment to Continuous Improvement (CI). • Identify stages • Establish responsibility • Set the datum • Pre-Plan • Regard each project as part of a cycle • Each worker regard himself or herself as a quality inspector of his or her task
Reasons to Begin Now • The reasons to begin establishing quality improvement processes are several. • For Management: • Provides an invaluable problem-solving tool. • Dispels negative attitudes. • Management becomes more aware of individual’s work environment. • Employees gain a sense of participation. • Increases efficiency and productivity. • Reduces turnover rate, tardiness, costs, errors, and scrap & rework. • Improves communications within and among all departments. • Develops management skills that were never taught. • Develops overall company awareness and company unity. • Rearranges priorities which once seemed locked in place. • Builds loyalty to the company. • Reveals training requirements in all departments. • Lessens the number of defects.
Reasons to Begin Now • For employee: • Provides opportunity for personal growth and development. • Increases innovation. • Employees use their knowledge and skills for well-informed decision-making. • Encourages decision-making at the most appropriate level. • Increases motivation and acceptance of new ideas • Increases job satisfaction. • Recognizes employees for their talents. • Develops mutual respect among employees, management and customers. • Promotes teamwork.
Companies who implemented continuous improvement. Sample Company: As an example of quality management one company enacted a one daily foremen meeting, this meeting lasted for one hour daily. Although one hour seemed to be too long but the benefits were more dominant. Mechanical Contractor – A commercial and industrial mechanical contractor has started to implement TQM by forming “Process Teams” to study problem areas . Some of the areas they are attacking are, delays in the field, administrative problems etc. Although time was wasted on invoices due to errors from vendors, positive results were obtained in accounts payable and invoice.
Companies who implemented continuous improvement A General Contractor with a volume. This company implemented the TQM process by hiring a consultant to work with a key person in the company. The positive result obtained through TQM is that morale is much improved, helping the company to weather a declining market. A large General Contractor - volume. This contractor is using TQM to improve quality in daily work. The contractor has 80 teams trained and functioning, and a seven-step problem solving technique to solve problems.
Companies who implemented continuous improvement Bechtel TQM was started in 1987 and has recently been reorganized into CCI (an acronym for Commitment to Continuous Improvement). The initiatives for their TQM process were obtained from their customers by using a simple questionnaire. Motorola Motorola has a successfully working TQM process. Motorola’s fundamental objective is Total Customer Satisfaction. They have won the Baldrige award and are corporate leaders in TQM.
Steps in implementing TQM 1 Obtain CEO Commitment 2 Educate Upper-Level Management 3 Create Steering Committee 4 Outline the Vision Statement, Mission Statement, & Guiding Principles 5 Prepare a Flow Diagram of Company Processes 6 Focus on the Owner/Customer (External) & Surveys 7 Consider the Employee as an Internal Owner/customer 8 Provide a Quality Training Program 9 Establish Quality Improvement Teams 10 Implement Process Improvements 11 Use the Tools of TQM 12 Know the Benefits of TQM
Steps in implementing TQM • Obtain CEO Commitment. • Educate upper level management. To educate the upper level management we have to conduct the following: • Undergo quality training • Commit to TQM and provide the necessary resources. • Assist in the development. • Serve as a model of expected behavior. • Actively lead the way. • Drive fear out of the organization • Provide suitable recognition. • Drive decision making and problem resolution.
Steps in implementing TQM • Outline the Vision Statement, Mission Statement, & Guiding Principles Establishing guiding principles: Important principles to consider including in the company’s vision statement, mission statement, and guiding principles are as follows: • Owner/customer Satisfaction. • Improved Safety. • Elimination of errors and defects. • Doing things right, the first time. • Reputation as the best in the field. • Continuous Improvement. • Employee Empowerment.
Steps in implementing TQM Prepare a Flow Diagram of Company Processes: A mechanical engineering firm created the TQM flow diagram illustrated in the figure below:
Steps in implementing TQM 6. Provide a Quality Training Program Which employees are trained first? The successful TQM company provides training to employees in the order illustrated in the list below: • Upper Management • Remaining Management • In-House Trainers & Facilitators • Front-Line Supervisors • Non-Supervisory Employees • Team Training • Training of Subcontractors & Suppliers
Steps in implementing TQM 7. What are the benefits of TQM? The cost of quality: Why do we implement the information related to TQM into our companies? To make more money and/or to stay in business. If you don’t implement TQM/CI, it will cost your firm money. Cost of Quality = Cost of Nonconformance + Cost Prevention
Toyota Production System (HOW TOYOTA IMPLEMENT TQM) • Long – Term Philosophy • Base your Management Decisions on a Long-Term Philosophy, even at the Expense of Short-Term Financial Goals
14 Principles of TPS • The Right Process Will Produce the Right Results • Create Continuous Process Flow to Bring Problems to the Surface • Use “Pull” Systems to avoid Over Production • Level out the Work Load (Heijunka) • Build a Culture of Stopping to Fix Problems, to get Quality Right the First Time • Standardised Tasks are the foundation for Continuous Improvement and Employee Empowerment • Use Visual Control so no Problems are Hidden • Use Only Reliable, Thoroughly Tested Technology that Serves your People and Processes
14 Principles of TPS • Add Value to the Organisation by Developing Your People and Partners • Grow Leaders who thoroughly understand the Work, Live the Philosophy and Teach it to Others • Develop Exceptional People and Teams who follow your Company’s Philosophy • Respect your Extended Network of Partners and Suppliers by Challenging them and Helping them Improve
14 Principles of TPS • Continuously Solving Root Problems Drives Organisational Learning • Go and See for Yourself to thoroughly Understand the Situation • Make Decisions Slowly by Consensus, thoroughly Considering all Options, Implement Decisions Rapidly • Become a Learning Organisation through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen)
“It is the aim of to supply products and services whichcompletely satisfy our customers.” • TOYATA MOTORS Statement
Conclusion In a nutshell, TQM will increase productivity, will eliminate wastes, reduce non-conformances, optimize costs, increase the profitability , will enrich the employees life and will help the industry to meet it’s societal obligation. Total Quality Management is a marathon and not a sprint
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