tqm chapter 1

Introduction to TQM

Total Quality ManagementDr. Gunmala Suri & Dr. Puja Chhabra Sharma

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Authors

DR. GUNMALA SURI DR. PUJA CHHABRA SHARMA

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Section - I

Chapter

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Introduction to TQM

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About the Book

The purpose of this book is to provide a comprehensive guide & text book on Total Quality Management to meet the dual needs of the practitioners & management students alike. The authors with their rich experience of industry & academia have realized that, despite a plethora of books on Total Quality Management, students & practitioners still experience difficulty in finding out an easily understandable book covering, by and large, the fundamentals & the course structure prescribed by various universities. Keeping these needs in view, the authors have endeavoured to bring out this book encompassing the important concepts of Total Quality Management making it a must for practitioners as a reference guide and as a simple yet comprehensive text book for students.

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About the Author

Dr. Gunmala Suri is presently working at University Business School, Punjab University, Chandigarh.

Dr. Suri is Ph.D.in Business Economics and her research interest are Quality Management, IPR and Knowledge Management.

She has more than 50 research paper published in national and international journals of repute and has attended several conferences in India & Abroad and her work acquired best paper award also.

She was awarded Common Wealth Fellowship; Indo- Swiss Bilateral Programme Fellowship and has been Visiting Fellow to Corvinus University of Budapest , Department of information Systems, Hungary & University of Lausanne, Switzerland.

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About the Author

Prior to her current assignment, Dr. Sharma served the Indian Navy for 14 year’s as one of the pioneer batch of women officers, & holds distinguished rank of Commander. During her Naval Service, she was Deputy Director in the Directorate of logistics support at the Naval Headquarters; New Delhi and involved in a whole gamut of Naval Logistics activities. She has been an Adjunct Faculty at Valparasio University. Indiana State, USA and University of CAXIAS DO SUL, RS, Brazil.

Dr. Puja Chhabra Sharma is Presently working at the Ansal University, Gurgaon. She has earned Masters in Commerce & Human Resource Management from St. John’s College, Agra & Jamna Lal Bajaj Institute of Management, Mumbai, representively and was awarded Ph.D. in Quality Management from CSS University, Meerut.

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Contents

SECTION ICHAPTER 1 : INTRODUCTION TO TQM CHAPTER 2 : TQM-A RAOD MAP TO EXCELLENCE CHAPTER 3 : QUALITY GURUS CHAPTER 4 : COST OF QUALITY CHAPTER 5 : QUALITY LEADERSHIP

SECTION IICHAPTER 6 : TQM IMPLEMENTATION CHAPTER 7 : CREATING QUALITY CULTURE CHAPTER 8 : CUSTOMER FOCUS & CUSTOMER

SATISFACTION CHAPTER 9 : TQM & QUALITY IMPROVEMENT CHAPTER 10 : QUALITY CONTROL AND PROBLEM

SOLVING: TOOLS & TECHNIQUES

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Contents

CHAPTER 11 : BUSINESSS PROCESS RE-ENGINEERING (BPR) CHAPTER 12 : SIX SIGMA (6σ) CHAPTER 13 : Quality Function Deployment (QFD) CHAPTER 14 : VALUE ENGGINEERING AND VALUE ANALYSIS CHAPTER 15 : TOTAL PRODUCTIVE MAINTENANCE

SECTION IIICHAPTER 16 : QUALITY MAMAGEMENT SYSTEMS CHAPTER 17 : QUALITY SYSTEM AUDIT CHAPTER 18 : ENVIRONMENTAL MANAGEMENT

SYSTEM & TOTAL QUALITY CONTROL CHAPTER 19 : HUMAN RESOURCE DEVELOPMENT &

QUALITY CIRCLES CHAPTER 20 : QUALITY AWARDS

SECTION IVCHAPTER 21 : TQM Case Studies in Indian Industries

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INTRODUCTION

Total Quality Management (TQM) is an integrative philosophy of management for continuously improving quality of products and processes to achieve customer satisfaction. It is based on a premise that an organization must build quality into its products and processes, and that everyone in the organisation has a responsibility in this effort. Customer is the focus of all the efforts to improve the product and process quality. Basic philosophy of TQM is applicable to any type of organisation; manufacturing or service, small or large, public or private. TQM is applicable to a wide range of organisations, regardless of the type of industry: repetitive or customizedproduction, high volume or low volume.

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QUALITY

A frequently used definition of quality is “Delighting the customer by fully meeting their needs and expectations”. These may include performance, appearance, availability, delivery, reliability, maintainability, cost effectiveness and price. It is, therefore, imperative that the organization knows what these needs and expectations are. In addition, having identified them, the organization must understand them, and measure its own ability to meet them.

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TOTAL QUALITY MANAGEMENT (TQM)

Total Quality Management is a philosophy, a set of tools and a process whose output yields customer satisfaction and continuous improvement. This philosophy and process differs from traditional philosophies and processes in that everyone in the organisation can and must practice it. Total Quality Management is the latest, most comprehensive and most complete approach to organizational excellence. Total Quality is typically a company wide effort seeking to install and make permanent a climate where employees continuously improve their ability to provide on demand products and services that customers will find of particular value. (Ciampa 1998).

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TQM Involves Six Initiatives:

1. A committed and involved management will have to provide long-term top-to-bottom organizational support.

2. An unwavering focus on the customer, both internally and externally.

3. Effective involvement and utilization of the entire work Force.

4. Continuous improvement of the business and production process.

5. Treating suppliers as partners.

6. Establishing performance measures for the processes.

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COMPETITIVE ADVANTAGE

Competitive advantage denotes a firm’s ability to achieve market superiority over its competitors. In the long-run, a sustainable competitive advantage provides superior performance. A robust competitive advantage has six characteristics:

a) It is driven by customer wants and needs.

b) It makes a significant contribution to the success of the business.

c) It matches the organisation’s unique resources with the opportunities in the environment.

d) It is durable, lasting, and difficult for competitors to copy.

e) It provides a basis for further improvement.

f) It provides direction and motivation to the entire organization.

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COST LEADERSHIP

Many firms gain competitive advantage by establishing themselves as the low-cost leader in an industry. These firms produce high volumes of mature products and achieve their competitive advantage through low prices. Such firms often enter markets that were established by other firms. They emphasize achieving economies of scale and finding cost advantages from all sources. Low cost can result from high productivity and high capacity utilization.

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DIFFERENTIATION

To achieve differentiation, a firm must be unique in its industry along some dimensions that are widely valued by customers. It selects one or more attributes that customers perceive as important and positions itself uniquely to meet these needs. As a result, it can command premium prices and achieve higher profits.

However, a firm that uses differentiation as its source of competitive advantage cannot ignore cost.

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QUALITY AS COMPETITIVE ADVANTAGE

The role of quality in achieving competitive advantage was demonstrated by several research studies. PIMS Associates, Inc., a subsidiary of the Strategic Planning Institute, maintains a data base of 1,200 companies and studies the impact of product quality on corporate performance. PIMS researchers have found that –

Product quality is the most important determinant of business profitability. Businesses offering premium-quality products and services usually have large market share and were early entrants into their markets.

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QUALITY AND DIFFERENTIATION STRATEGIES

Competitive advantage is gained from meeting or exceeding customer expectations – the fundamental definition of quality. A business may concentrate on any of several quality-related dimensions in order to differentiate itself from its competitions. The key dimensions are:

1. Superior product design,2. Outstanding service,3. High flexibility and variety,4. Continuous innovation; and5. Rapid response time competitiveness

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QUALITY STRATEGIES AND BUSINESS RESULTS

Baldrige Award winners have demonstrated that total quality leads to competitive advantage and improved business performance. Baldrige finalists explored four measurable areas of a company’s operations that could demonstrate the impact of TQ practices on corporate performance (Dale H. Besterfield, 2008).

1. Employee relations;2. Operating procedures;3. Customer satisfaction; and4. Financial performance.

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ADVANTAGE OF TQMThe advantages of TQM correlate directly to bottom-line savings. In today’s information-driven economy, companies uncover the most opportunities – and ultimately derive the most value – from Total Quality Management. An effective TQM program should help a company to do one or more of the following:

1. Foster innovation by encouraging free flow of ideas.2. Improve customer service by streamlining response time.3. Boost revenues by getting products and services to market faster.4. Enhance employee retention rates by recognizing the value of

employees’ knowledge and rewarding them for it.5. Streamline operations and reduce costs by eliminating redundant

or unnecessary processes.6. A creative approach to TQM can result in improved efficiency,

higher productivity and increased revenues in practically any business.

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PEOPLE ORIENTATIONIf we study excellent organizations in America, UK Japan and India we find a common thread running through all of them – the people – orientation. These organisations express their special concern for the people. These organisations have undone the detrimental effects of “Taylorism” which was once universally accepted as a tool for effective management and high productivity. All excellent organisations have been able to break the barrier of mistrust between labor and management. Employees are accepted as partners to maintain a high level of performance and open management is sincerely practiced. Participation in the real sense is the way of life in the organizations performing excellent.

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FUNDAMENTALS OF TQMTQM principles can be explained by examining companies that have been successful. Some Indian companies, which have won the Golden Peacock National Quality Award from Quality Council of India (QCI) and Institute of Director (IOD), are Telco, Philips, Bharat Electronics, Kirloskar, SAIL and EIL. For this purpose, we may examine the Malcolm Baldrige Award winners in the USA like Motorola; the Deming prizewinners like Toyota and the European Quality Award winners like Corning. On examining these companies, the following fundamentals of TQM are found common:

Management by Fact PDCA Cycle Focus on Prevention Employees’ Involvement

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TQM PHILOSOPHY

TQM, however, is a complex issue. There are many examples of its successful introduction in the US, the UK, and Western Europe. Indeed Japanese investment in these countries has proved TQM’s adaptability, giving a lie to the view that it is inextricably coupled to an eastern work ethic and culture. Western workers can be as useful as their far eastern counterparts in achieving the possibilities to be realised from a focus on Total Quality. The western world claims that the TQM concept originated in West and exported to East after the Second World War when spurned by western industrialists as impracticable.

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22PPT’s By: Afaque Alam

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THANKS

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