project - ipm

STUDY ABOUT

TOTAL QUALITY MANAGEMENT

A Project Report

Prepared By

U.K.G.V.R. Keerthirathna

CCHRM 2010/SA/11

Course: Certificate in Human Resource Management

September 2010

INSTITUTE OF PERSONNEL MANAGEMENT SRI LANKA (INC.)

Acknowledgement

I would like to express my heartrending gratitude and sincere thanks to everybody who

gave me their kind support to finish this study. I would not be able to complete this study

in such a effective way, without their support though I have dedicated a lot.

I am highly appreciating the devoted service of all the lecturers in the Institute of

Personnel Management, for their right guidance and for offering their knowledge to many

students like me.

I would like to express my gratitude towards my parents and the sister to their kind co-

operation and encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to the lecturers in University of

Colombo for giving me their attention and time for clarify my doubts.

As well as I express my genuine thanks and appreciation to all my friends and colleagues

who have helped me in proof readings and encourage me to terminate this in provably.


Executive Summary

In this project report I have presented a detailed report about Total Quality Management

according to the findings I have found in the research time period.

Total quality Management is a philosophy which attempts to instill awareness and drive

toward quality in all parts of a business's operations. Total quality management is a

customer centric business strategy in that its focus on quality always relates to customer

satisfaction with a product or service. The aim of this system is to create long term

success through a base of highly satisfied customers with loyalty to the company due to

the great quality and care taken to ensure all of their needs are met up to their

expectations.

This research report consists with five different sections discussed about the diverse

components about the total quality management.

I have kept back the first topic as “What is Quality”, which describes the term “Quality”

according to various authors and management consultants.

Second topic describes about the total quality management.

Third topic has set aside to illustrate about the Evolution of total quality management.

Next I have illustrate some data about the Toyota Production System (TPS) as a

succeeded company through total quality management philosophy.

At last but not least I have elaborated the role of human resource management in

implementing and controlling total quality management systems.


What is Quality?

Quality is total composite product (goods and services) characteristics, through

which the product in use will meet the needs and expectations of the customers.

Concept of quality must start with identification of customer quality requirements

and must end only when the finished product is placed into the hands of the

customer who remains satisfied through various stages of relationship with the

seller. –Feigenbaum-

Quality is totality of features and characteristics of product (goods and services)

that bears on its ability to satisfy given need. -American Society of Quality

Control (ASQC) and American National Standard Institute (ANSI)-

Quality is a customer determination based upon a customer's actual experience

with a product or service, measured against his or her requirements -stated or

unstated, conscious or merely sensed, technically operational or entirely

subjective -and always representing a moving target in a competitive market. -

Armand Feigenbaum-

Quality is a transformation in the way we think and work together, in what we

value and reward, and in the way we measure success. All of us collaborate to

design and operate a seamless value-adding system that incorporates quality

control, customer service, process improvement, supplier relationships, and good

relations with the communities we serve and in which we operate - all optimizing

for a common purpose. -Peter Senge et al-


specificationsss for use. -Joseph Juran & Frank Gryna-


What is Total Quality Management?

Total Quality Management is an administrative approach centered around consistent

customer satisfaction and continuous improvement of product quality.It focuses on the

satisfaction of the customers and suppliers.

It is a set of management practices throughout the organization, geared to ensure the

organization consistently meets or exceeds customer requirements.TQM places strong

focus on process measurement and controls as means of continuous improvement. In the

Total Quality Management, it has an important aspect of quality and safety of both

product and the production process in the work place.

The origin of TQM comes from the teachings of such quality

leaders as Philip B. Crosby, W. Edwards Deming, Armand

V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran in the

1950's and has steadily become more popular since the early

1980's. The core concept in implementing TQM is Deming’s

14 points, a set of management practices to help companies

increase their quality and productivity.

1. Create constancy of purpose towards improvement -

Replace short-term reaction with long-term planning.

2. Adopt the new philosophy - The implication is that management should actually

adopt his philosophy, rather than merely expect the workforce to do so.

3. Cease dependence on inspection - If variation is reduced, there is no need to

inspect manufactured items for defects, because there won't be any.

4. Move towards a single supplier for any one item - Multiple suppliers mean

variation between feed stocks.

5. Improve constantly and forever - Constantly strive to reduce variation.

6. Institute training on the job - If people are inadequately trained, they will not all

work the same way, and this will introduce variation.

7. Institute leadership - distinction between leadership and mere supervision.


8. Drive out fear - management by fear as counter- productive in the long term,

because it prevents workers from acting in the organization’s best interests.

9. Break down barriers between departments - Another idea central to TQM is the

concept of the 'internal customer', that each department serves not the

management, but the other departments that use its outputs.

10. Eliminate slogans - Another central TQM idea is that it's not people who make

most mistakes - it's the process they are working within. Harassing the workforce

without improving the processes they use is counter-productive.

11. Eliminate management by objectives - production targets as encouraging the

delivery of poor-quality goods.

12. Remove barriers to pride of workmanship - Many of the other problems outlined

reduce worker satisfaction.

13. Institute education and self-improvement

14. The transformation is everyone's job

According to Deming's philosophy, productivity improves as variability decreases. So the

organizations use statistical methods to control quality. He promoted the use of statistics

to measure performance in all areas, not only in product specifications. Besides, he

argued that it is not enough to meet specifications; organizations must keep working to

reduce the variations also.

By criticizing the U.S business management approach, Deming implement the Total

Quality management approach as the leader of Total Quality Management philosophy.


In today’s world, companies that do not consider the quality as their key objective, are

facing great challenge to survive in the global competitive market environment.

Some world class successful organizations like Company, Motorola, Vodafone, Xerox,

HSBC Group, Samsung Group… etc, have the best quality management programs. These

companies were some of the first to implement a quality program called, Six Sigma, which is the

level of defects is reduced to approximately 3.4 parts per million.

Due to it’s high focus on quality and the key objective of total customer satisfaction,

Motorola was one of the first companies to win the Malcolm Baldrige National Quality

Award in 1988.


Mass Inspection

Quality Control (Acceptance

Sampling)

Quality Assurance

Total Quality Control

Company wide Quality Control

Total Quality Management

Evolution of Total Quality management

The concept of Total Quality Management has been developing through various steps

instead of immerging instead. As I learned through many articles and books, I can

suggest the following points as the main steps in the evolution of total quality

management process.

Mass Inspection

In the mass inspection era organizations did the basic things as Inspecting, Salvaging,

Sorting, Grading, Rectifying, and rejecting their products, in order to meet the quality

requirements.


Quality Control

In this era organizations implement a system for ensuring the maintenance of proper

standards in manufactured goods, especially by periodic random inspection of the

product. They focused on following steps to assure the control of quality of their goods,

such as Quality manuals, Product testing, Basic quality planning.

Quality Assurance

Organizations introduced the processes of verifying or determining whether products or

services meet or exceed customer expectations.Emphasis on prevention and proactive

approaches as well as advance quality planning.

Total Quality Control

Organizations implemented systems for integrating the quality development,

maintenance, and improvement efforts of the various groups in an organization. So as to

produce marketing, engineering, production, and service at the most economical levels

for full customer satisfaction. Organizations consider on all aspects of quality of inputs,

Testing equipments, and control on processes.

Companywide Quality Control

Measured in all functions connected with production such as Research and development,

Design, Engineering, Purchasing, Operations etc...

Total Quality Management


http://www.wisegeek.com/how-do-i-manage-customer-expectations.htm

Finally organizations reached to the present total quality management philosophy. It

measured in all aspects of business. Such as top management commitment, continuous

improvement, involvement & participation of employees.

Succceeded organization through Total Quality Management

Approach

Toyota Production System (TPS)

Toyota Production System is an integrated socio-technical system,

developed by Toyota, which comprises from total quality

management philosophy and practices. The TPS organizes

manufacturing and logistics for the automobile manufacturer, including interaction with

suppliers and customers. Originally called "Just in Time Production" .This approach

created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the

engineer Taiichi Ohno.

It is a Long term Philosophy based on management decisions on a long term Philosophy,

even at the Expense of Short-Term Financial Goals.

Toyota Production System is based on 14 principles which are unique for them.

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

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

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)


Toyota Production System House

Role of Human Resource Management

Since the TQM is a companywide huge program, Implementation and control of Total

quality management system is exceptionally stiff fixation without foremost contribution

of the human resource management.HRM acting the main role of implementing TQM in

two essential ways.

Modeling the TQM philosophy and principles within its departmental operations,

the HR department can serve as a beachhead for the TQM process throughout the

company.

Capture the TQM process company-wide by developing and delivering the long-

term training and development necessary for the major organizational culture shift

required by TQM.


Leveled Production (Heijunka)

Stable and Standardized Processes

Visual Management

Toyota Way Philosophy

Just-in-TimeRight Part, Right

Amount, Right Time

Take Time Planning Continuous Flow Pull System Quick Changeover Integrated Logistics

Jidoka(In-station Quality)

Make ProblemsVisible

Automatic Stops Andon Person – Machine Separation

Error Proofing In-station Quality Control

Solve Root Cause of Problems (5 Why’s)

Best Quality – Lowest Cost – Shortest Lead Time – Best Safety – High Morale

Through shortening the production flow by eliminating wastePeople & Teamwork

Selection Common Goals Ringi Decision Making Cross – Trained

Waste Reduction Genchi Genbutsu 5 Why’s Eyes for Waste Problem Solving

Since the total quality management is a change in the whole corporate culture in

organization, Human resource department has a major exertion in terms of making the

new work climate. According to that human resource management should consider about

the following key points.

An open, problem-solving atmosphere

Participatory design making

Trust among all employees

A sense of ownership and responsibility for goal achievement and problems solving

Self-motivation and self-control

Basically human resource management is accountable for select, recruit, retain, and

motivate employees to entire organization as fulfill the total quality requirements.


List of References

Stevenson J., Operations Management, 8th Edition, 2005.

Petrick J, Furr D., Total Quality in Managing Human Resources, 1995

Macdonald J., Total Quality Management in a Week, 2003

http://managementhelp.org/quality/tqm/tqm.htm

http://en.wikipedia.org/wiki/Total_quality_management


http://en.wikipedia.org/wiki/Total_quality_management

http://managementhelp.org/quality/tqm/tqm.htm

http://www.amazon.com/Total-Quality-Management-Week-MacDonald/dp/0340849460/ref=sr_1_4?s=books&ie=UTF8&qid=1302177453&sr=1-4

http://www.amazon.com/John-Macdonald/e/B001K8I37S/ref=sr_ntt_srch_lnk_4?qid=1302177453&sr=1-4

project - ipm

Documents

human resource management

total quality management

toyota production system

management practices

quality control

mass inspection

key objective

continuous improvement