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Total Quality Management

Submitted ToMd. Anwar HossainLecturerDepartment of PharmacyManarat International University

Submitted ByNAME : Arfia Chowdhury ID: 0709BPM00145 BATCH: 9th Batch

COURSE TITLE: Advanced Analysis COURSE CODE: BPM 421

Submission Date: 13/12/10

Content Page

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Introduction …………………………………………………………….. …………….. 3

What is management …………………………………………………………………. 3

TQM …………………………………………………………………………………... 4

Definition and Explanation of the concept of total quality management system...... 4

History of TQM ………………………………………………………………………. 4

What’s the goal of TQM ……………………………………………………………... 5

TQM and Six Sigma ………………………………………………………………….. 5

Productivity and TQM ………………………………………………........................ 5

Basic Tenets of TQM ………………………………………………………………… 6

The three aspects of TQM …………………………………………………………… 6

Advantages of Total Quality Management …………………………………………. 6

Disadvantages of Total Quality Management ……………………………………… 6

Principles Of  TQM …………………………………………………..……………… 7

Main Principles of TQM …………………………………………………………….. 8

Total Quality Management Leadership ……………………………………………... 9

The concept of continuous improvement …………………………………………… 9

Total Quality Management and Continuous Improvement …………………………….. 9

TQM Implementation Approaches ……………………………………………………... 10

Obstacles to Implementing TQM ………………………………………………………. 11

Strategies to develop TQM …………………………………………………………… 11

Where is the best place to start TQM ………………………………………………… 12

Some criticisms of TQM ……………………………………………………………… 12

Product development in a TQM environment ………………………….......................... 12

Quality Management in Pharmaceutical Industry ……………………………………… 13

The Cost of TQM ……………………………………………………........................ 13

Conclusion …………………………………………………………………………… 14

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Introduction

Total quality management is a popular "quality management" concept. However, it is about much more than just assuring product or service quality. TQM is a business philosophy - a way of doing business. It describes ways to managing people and business processes to ensure complete customer satisfaction at every stage. TQM is often associated with the phrase - "doing the right things right, first time". This revision note summarises the main features of TQM.

Like most quality management concepts, TQM views "quality" entirely from the point of view of "the customer".

All businesses have many types of customer. A customer can be someone "internal" to the business (e.g. a production employee working at the end of the production line is the "customer" of the employees involved earlier in the production process).

Total Quality Management is often associated with the development, deployment, and maintenance of organizational systems that are required for various business processes.

What is management

The American Management Association defines management as "the process of getting work done through people." It is management's responsibility to achieve and maintain a business organization's effectiveness. Traditionally, management includes the following activities: planning, organizing, leading, and controlling. More specifically, management is responsible for the primary activities of the firm; those being inbound logistics, operations, outbound logistics, marketing and sales, and service.

Management is also responsible for the support activities of infrastructure, human resource management, technology development, and procurement. Management comprises directing and controlling a group of one or more people or entities for the purpose of coordinating and harmonizing them towards accomplishing a goal.

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Total Quality Management

The verb manage comes from the Italian maneggiare (to handle — especially a horse), which in turn derives from the Latin manus (hand). The French word mesnagement (later ménagement) influenced the development in meaning of the English word management in the 17th and 18th centuries.

TQM

Total - made up of the whole

Quality - degree of excellence a product or service provides

Management - act, art or manner of planning, controlling, directing,….

Therefore, TQM is the art of managing the whole to achieve excellence.

Definition and Explanation of the concept of total quality management system

Total quality management (TQM) is an improvement program which provides tools and techniques for continuous improvement based on facts and analysis; and if properly implemented, it avoids counterproductive organizational infighting.

The most popular approach to continuous improvement is known as total quality management (TQM). There are two major characteristics of total quality management (TQM)

(1) a focus on serving customers and

(2) systemic problem solving teams made up of front line workers.

History of TQM

After the First World War, quality inspection became more commonplace in manufacturing environments and this led to the introduction of Statistical Quality Control (SQC), a theory developed by Dr. W. Edwards Deming. This quality method provided a statistical method of quality based on sampling. Where it was not possible to inspect every item, a sample was tested for quality. The theory of SQC was based on the notion that a variation in the production process leads to variation in the end product. If the

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variation in the process could be removed this would lead to a higher level of quality in the end product.

After World War Two, the industrial manufacturers in Japan produced poor quality items. In a response to this, the Japanese Union of Scientists and Engineers invited Dr. Deming to train engineers in quality processes. By the 1950’s quality control was an integral part of Japanese manufacturing and was adopted by all levels of workers within an organization. By the 1970’s the notion of total quality was being discussed. This was seen as company-wide quality control that involves all employees from top management to the workers, in quality control. In the next decade more non-Japanese companies were introducing quality management procedures that based on the results seen in Japan. The new wave of quality control became known as Total Quality Management, which was used to describe the many quality-focused strategies and techniques that became the center of focus for the quality movement.

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.

TQM and Six Sigma

The main difference between TQM and Six Sigma (a newer concept) is the approach. TQM tries to improve quality by ensuring conformance to internal requirements, while Six Sigma focuses on improving quality by reducing the number of defects and impurities.

Productivity and TQM

Traditional view:

Quality cannot be improved without significant losses in productivity.

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TQM view:

Improved quality leads to improved productivity.

Basic Tenets of TQM

The customer makes the ultimate determination of quality.

Top management must provide leadership and support for all quality initiatives.

Preventing variability is the key to producing high quality.

Quality goals are a moving target, thereby requiring a commitment toward continuous improvement.

Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.

The three aspects of TQM

Counting: Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems

Customers: Quality for the customer as a driving force and central concern

Culture: Shared values and beliefs, expressed by leaders, that define and support quality.

Advantages of Total Quality Management

Improves reputation- faults and problems are spotted and sorted quicker (zero defects)

Higher employee morale– workers motivated by extra responsibility, team work and involvement in decisions of TQM

Lower costs – Decrease waste as fewer defective products and no need for separate

Quality Control inspectors

Disadvantages of Total Quality Management

Initial introduction costs- training workers and disrupting current production whilst being implemented

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Benefits may not be seen for several years

Workers may be resistant to change – may feel less secure in jobs

Principles Of  TQM

 Definition of Quality Management Principle

"A quality management principle is a comprehensive and fundamental rule / belief, for leading and operating an organisation, aimed at continually improving performance over the long term by focusing on customers while addressing the needs of all other stake holders".

The eight principles of TQM are ...

1- Be Customer focused:

whatever you do for quality improvement, remember that ONLY customers determine the level of quality, whatever you do to foster quality  improvement, training employees, integrating quality into processes management, ONLY customers determine whether your efforts were  worthwhile.

 2-Insure Total Employee Involvement:

 This done after you remove fear from work place, then empower employee ... you provide the proper environment.

 

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3- Process Centered:

 Fundamental part of TQM is to focus on Process thinking.

4- Integrated system:

 All employee must know business mission and vision, must monitor the process. An integrated business system may be modeled by MBNQA or  ISO 9000.

5- Strategic and systematic approach:

Strategic plan must integrate quality as core component.

6-  Continual Improvement:

Using analytical and creative thinking in finding ways to become more effective.

7- Fact Based Decision Making:

Decision making must be ONLY on data, not personal thinking or situational.

8-  Communication :

Communication strategy, method and timeliness must be well defined.

Main Principles of TQM

The main principles that underlie TQM are summarised below:

Prevention Prevention is better than cure. In the long run, it is cheaper to stop products defects than trying to find them

Zero defects The ultimate aim is no (zero) defects - or exceptionally low defect levels if a product or service is complicated

Getting things right first time

Better not to produce at all than produce something defective

Quality involves everyone

Quality is not just the concern of the production or operations department - it involves everyone, including marketing, finance and human resources

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Continuous improvement

Businesses should always be looking for ways to improve processes to help quality

Employee involvement

Those involved in production and operations have a vital role to play in spotting improvement opportunities for quality and in identifying quality problems

Total Quality Management Leadership

Implementing Total Quality Management ( TQM ) alone cannot ensure its long term business success. The leader has to drive the TQM implementation in accordance to the TQM principles, follow the TQM model, provides regular TQM training to all levels of employees. He or she must take the lead to verify the Total Quality culture is indeed being practiced by the employee as a whole. One obvious behavior in a Total Quality Culture is the continuous improvement culture building. 

The concept of continuous improvement

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, and technology and machine capabilities.

Continuous improvement must deal not only with improving results, but more importantly with 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.

Total Quality Management and Continuous Improvement

TQM is the management process used to make continuous improvements to all functions.

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TQM represents an ongoing, continuous commitment to improvement.

The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.

 TQM Implementation Approaches

 No one solution is effective for planning and implementing TQM concepts in all situations.

Following are generic models for implementing total quality management theory:

1- Train top management on TQM principles.

2- Assess the current : Culture, customer satisfaction, quality management system.

3- Top management determine the core values and principles to be used and communicate them.

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4- Develop TQM master plan based on steps 1,2,3.

5- Identify and prioritize customer needs and determine products or service to meet those needs.

6- Determine the critical processes to produce those products or services.

7- Create process improvement teams.

8- Managers should support effort by planning, training, time .... to the team.

9- Integrate changes for improvement in daily process management and standardizations take place.

10- Evaluate progress against plan (step 8) and adjust as needed.

11- Constant employee awareness and feedback on status are provided and a reward/ recognition process is established.

 Obstacles to Implementing TQM

Lack of a company-wide definition of quality.

Lack of a formalized strategic plan for change.

Lack of a customer focus.

Poor inter-organizational communication.

Lack of real employee empowerment.

Lack of employee trust in senior management.

View of the quality program as a quick fix.

Drive for short-term financial results.

Politics and turf issues.

Strategies to develop TQM

 1-TQM elements approach:

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Take key business process and use TQM Tools to foster improvement.

e.g.: quality circles, statistical process control, taguchi method, quality function deployment.

2 - The guru approach:

Using the guides of one of the leading quality thinker.

3- Organization model approach:

The organization use Benchmarking or MBNQA as model for excellence.

4- Japanese total quality approach:

Companies want to get deming prize use deming principles.

Where is the best place to start TQM

Marketing

Determine market sector and demand

Determine grade, price, quality, timing etc

Determine suitability of product to customers

Some criticisms of TQM:

Blind pursuit of TQM programs

Programs may not be linked to strategies

Quality-related decisions may not be tied to market performance

Failure to carefully plan a program

Product development in a TQM environmentProduct development in a TQM environment is very different to product development in a non-TQM environment. Without a TQM approach, product development is usually

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carried on in a conflictual atmosphere where each department acts independently. Short-term results drive behavior so scrap, changes, work-arounds, waste, and rework are normal practice. Management focuses on supervising individuals, and fire-fighting is necessary and rewarded.

Quality Management in Pharmaceutical Industry

Quality management plays a key role in the pharmaceutical industry. To ensure that products are safe and effective, manufacturing processes are subject to strict legal conditions. National and international authorities constantly monitor the manufacturers' adherence to regulations. The directives and procedural instructions for validation require companies in the industry to document the entire logistics chain in full - from goods inwards to delivery, and from the development of new preparations to the maintenance of mixers and packaging lines. Because the pharmaceutical industry has traditionally focused upon the application of Good Manufacturing Practice (GMP), it has been slow to consider the potential benefits to be gained by implementing an EN ISO 9001 Quality Management System (QMS).

Over the last few years the global pharmaceutical market has undergone significant change, forcing pharmaceutical companies, more than ever before, to focus on customer needs and upon their own internal efficiency in order to continue to compete effectively.

The Cost of TQM

Many companies believe that the costs of the introduction of TQM are far greater than the benefits it will produce. However research across a number of industries has costs involved in doing nothing, i.e. the direct and indirect costs of quality problems, are far greater than the costs of implementing TQM. The costs are identified in the Prevention, Appraisal, and Failure (PAF) Model.

Prevention costs are associated with the design, implementation and maintenance of the TQM system. They are planned and incurred before actual operation, and can include:

Product Requirements – The setting specifications for incoming materials, processes, finished products/services.

Quality Planning – Creation of plans for quality, reliability, operational, production and inspections.

Quality Assurance – The creation and maintenance of the quality system.

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Training – The development, preparation and maintenance of processes.

Appraisal costs are associated with the vendors and customers evaluation of purchased materials and services to ensure they are within specification. They can include:

Verification – Inspection of incoming material against agreed upon specifications.

Quality Audits – Check that the quality system is functioning correctly.

Vendor Evaluation – Assessment and approval of vendors.

Failure costs can be split into those resulting from internal and external failure. Internal failure costs occur when results fail to reach quality standards and are detected before they are shipped to the customer. These can include:

Waste – Unnecessary work or holding stocks as a result of errors, poor organization or communication.

Scrap – Defective product or material that cannot be repaired, used or sold.

Rework – Correction of defective material or errors.

Failure Analysis – This is required to establish the causes of internal product failure.

External failure costs occur when the products or services fail to reach quality standards, but are not detected until after the customer receives the item. These can include:

Repairs – Servicing of returned products or at the customer site.

Warranty Claims – Items are replaced or services re-performed under warranty.

Complaints – All work and costs associated with dealing with customer’s complaints.

Returns – Transportation, investigation and handling of returned items

Conclusion

The benefits of total quality management, which involves teaching all employees exactly what is expected of them, include getting everyone on the same page and helping customers more efficiently in the end. Consider implementing a total quality management

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training program with information from a portfolio manager in this free video on business strategies.

Reference

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

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

http://www.johnstark.com/fwtqm.html

http://www.bexcellence.org/Total-quality-management.html

http://www.bexcellence.org/Cost-Of-Quality.html

http://american-business.org/809-total-quality-management.html

http://logistics.about.com/od/qualityinthesupplychain/a/TQM.htm

http://tqmcasestudies.com/

http://www.isixsigma.com/index.php?option=com_k2&view=itemlist&layout=category&task=category&id=45&Itemid=179

http://www.crossroad.to/Quotes/TQM.html

http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1070069/

http://www.thinkingmanagers.com/business-management/total-quality-management.php

http://american-business.org/809-total-quality-management.html

http://www.contactpakistan.com/Communitylibrary/general/news16.htm

http://www.accountingformanagement.com/total_quality_management.htm

http://www.iqmsglobal.com/total_quality_management.htm

http://www.pharmainfo.net/reviews/total-quality-management-promising-fixation-accomplish-zero-defects

http://www.thinkingmanagers.com/business-management/total-quality-management.php

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