Description
Intense global competition and diminishing trade barriers are making it more and more difficult for companies to maintain their market share. Competition from companies operating in different markets has increased as advancements in telecommunications and information technology have broken down traditional barriers to entry
A Project Report
On
PRODUCTIVITY IMPROVEMENT THROUGH
TOTAL QUALITY MANAGEMENT
Submitted in partial fulfilment of requirements
For the award of the Degree of
BACHELOR OF ENGINEERING
IN
PRODUCTION ENGINEERING
By
ABHINANDAN KUMAR
Under the guidance of
Prof. KAPIL DEV PRASAD
Department of Production Engineering
DEPARTMENT OF PRODUCTION ENGINEERING
BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RACHI
2014
DECLARATION CERTIFICATE
This is to certify that the project entitled “PRODUCTIVITY IMPROVEMENT
THROUGH TOTAL QUALITY MANAGEMENT” submitted by ABHINANDAN
KUMAR in partial fulfilment for the award of the degree of B.E in Production
Engineering of Birla Institute of Technology, Mesra, Rachi is the record of the student
own work carried out under my guidance and supervision.
No part of this project has been submitted to any other university/institute for the award of
this or any other degree.
DATE: Prof. KAPIL DEV PRASAD
(Department of Production Engineering)
CERTIFICATE OF APPROVAL
This project entitled “PRODUCTIVITY IMPROVEMENT THROUGH TOTAL
QUALITY MANAGEMENT” is here by approved as a creditable engineering study
carried out and presented in a satisfactory manner to narrate its acceptance as prerequisite
to the degree for which it is being submitted.
(Internal Examiner) (External Examiner)
Head of Department
Department of Production Engineering
ACKNOWLEDGMENT
Working on this project on “PRODUCTIVITY IMPROVEMENT THROUGH TOTAL
QUALITY MANAGEMENT” was a source of immense knowledge to me. We would like
to express my sincere gratitude to Prof. Kapil Dev Prasad for his guidance and valuable
support thought out the course of this project work. We acknowledge with a deep sense of
gratitude, the encouragement and inspiration received from our faculty members and
colleagues. We would also like to thank our parents for their love and support.
ABHINANDAN KUMA
ABSTRACT
My project argues that the Total Quality Management concept and its
implementation is the critical need for the survival of industries. In the meantime,
lean manufacturing and constraint management could work together to improve
productivity, efficiency and quality. The article discusses the environment in which
businesses are operating, the effect of the total quality management on
productivity and presents some of the benefits that were realized by implementing
total quality management. Direct benefits from combining the concepts of lean
manufacturing and constrained management during the productivity improvement
process by using automation reduce production cycle times by more effectively
designing and scheduling the movement of robots. The ultimate goal is to satisfy
customer’s demand. My project discusses how constrained management
substantially increases production.
PRODUCTIVITY IMPROVEMENT
THROUGH
TOTAL QUALITY MANAGEMENT
1. How to increases productivity of an Industry
2. General methods used in Industry to increases
productivity
3. What is TQM?
4. How to help TQM to improve productivity of an Industry
5. Total Quality Management model and productivity
6. Constraint management, Lean production and the
competitive advantage
Relationships
7. Conclusions
8. Bibliography:
INTRODUCTION
Intense global competition and diminishing trade barriers are making it more and
more difficult for companies to maintain their market share. Competition from
companies operating in different markets has increased as advancements in
telecommunications and information technology have broken down traditional
barriers to entry.
In a competitive environment, a business must persuade a customer to buy its
products rather than those of competitors at a price that is more than its cost of
production. A rational customer, however, would like to maximize value for his
money. Therefore, a successful producer must enhance the total value of his
products so that the price is acceptable to the customer while his own costs are
low enough to allow him to make a profit.
Total quality management (TQM) is all about fostering a culture that is
continuously oriented towards increasing customer satisfaction while minimizing
the real cost of production.
Increasing competition in the global market necessitates that productivity should
not be considered as an indicator of efficiency only; it must also measure
effectiveness. Yet the distinction between the two is often overlooked. For
example, a company that produces according to process specifications may be
using its resources efficiently, but unless it is producing what its customers want it
may not be using them effectively. To be profitable, a company must judge
productivity and value from the perspective of the customer, not from the
engineer.
Older manufacturing facilities are often faced with productivity challenges due to
their inflexible designs. The application of some of the principles of lean
manufacturing is more restricted in such a setting. Today, “lean” may no longer
be fashionable but its core principles flow, value, pull, minimizing waste etc.)
Have become the paradigm for many manufacturing (and service) operations. In
order to provide a platform for establishing the long-term competitive impact of
the lean production model, the paper then develops a theoretical construct
explaining the mechanisms that underpin sustainable competitive advantage.
• Productivity is usually taken in isolated scenario and cases.
• This usually lacks the holistic system approach of a productivity improvement
project starting from its vision till operational tasks.
• As such, the benefit gained at one part of a system in time is eaten by the
sluggishness performance at another part of the same system.
• The focus of discussion here is at the holistic approach of productivity; starting
from:
? Its basic concept,
? Associated factors affecting it,
? The TQM tools and techniques used in productivity improvement program
and
? Measurement in all types of industries, social and academic fields.
• Due to sever impact of productivity on national economy, it is at the top of
national agenda of industrialized countries to have good monitoring and
assessment system of performance of individuals and organizations.
• Underdeveloped and developing courtiers can take great advantage out of
productivity implementation as the huge gap for productivity improvement in
these economies.
• Higher productivity can be linked to national prosperity and socioeconomic
development and balancing system.
BASIC DEFINITION
STATISTICS
Statistics means a good amount of data to obtain reliable results. The science of
statistics handles this data in order to draw certain conclusions. Statistical
techniques find extensive applications in quality control, production planning and
control, business charts, linear programming, etc.
QUALITY
Quality is a relative term and is generally explained with reference to the end use
of the product.
A componentise said to be of good quality if it works well in the equipment for
which it is meant. Quality is thus defined as fitness for purpose.
Plant Manager
Superintendents
Accounting Design and Production Quality Plant Procurement Industrial
Development Engineering Relations
Engineering
Assistant superintendent
of Quality
Department Head, Parts Department Head, Product
Quality Control Quality Control
Quality General foreman Quality General Foremen or
Enguneers Foreman Engineers Foremen of
` of Inspection Inspection and
Testing Labs
Organization of an Inspection Department
In manufacturing, a measure of excellence or a state of
being free from defects, deficiencies and significant variations. It is brought about
by strict and consistent commitment to certain standards
that achieve uniformity of a product in order to satisfy
specific customer or user requirements. ISO 8402-1986 standard defines quality as
"the totality of features and characteristics of a product or service
that bears its ability to satisfy stated or implied needs. " If
an automobile company finds a defect in one of their cars and makes a
product recall, customer reliability and therefore production will decrease
because trust will be lost in the car's quality.
CONTROL
Control is a system for measuring and checking (inspecting) a phenomena.
It suggests
? When to inspect
? How often to inspect
? How much to inspect.
In addition, it incorporates a feedback mechanism which explores the cause of
poor quality and takes corrective action.
What is TQM? : Basic Concepts
Total Quality Management / TQM is an integrative philosophy of
management for continuously improving the quality of products and processes.
TQM is based on the premise that the quality of products and processes is the
responsibility of everyone involved with the creation or consumption of the
products or services which are offered by an organization, requiring the
involvement of management, workforce, suppliers, and customers, to meet or
exceed customer expectations.
Cua, McKone, and Schroeder (2001) identified nine common TQM practices:
1. cross-functional product design
2. process management
3. supplier quality management
4. customer involvement
5. information and feedback
6. committed leadership
7. strategic planning
8. cross-functional training
9. employee involvement
? TQM is an integrated organization apporoach in delighting customers (both
external and internal) by meeting their expectaions on a continuous basis
through everyone involved with the organisation working on continuous
improvement in all product/processes along with proper problem
methodologhy.
? TQM means activities involing everyone in a company- Management and
workers in a totally integrated effort toward improving performance at every
level.
? This improved performance is directly towards satisfying cross-functional goal
as Quality, Cost, Manpower development, Quality of worklife etc.
? There activities ultimately lead to increased customer and Employee
satisfaction,
? In short, the definition says continuous meeting agreed customer requirements
at the lowest cost by realising the potential of all employees.”
TQM Principle
(i) Agree customer requirements
(ii) Understand customers/suppliers
(iii) Do the right things
(iv) Do thinngs right first time
(v) Measure for success
(vi) Continuous improvement is the goal
(vii) Management must lead
(viii) Training is essential
(ix) Communicates as never before
? TQM is a process of change in terms of values, beliefs, style and activity.
? The concepts are essentially simple to understand and yet are diffuclt to
implement.
Basic Principles of Total Quality Management (TQM)
The basic principles for the Total Quality Management (TQM) philosophy of
doing business are to satisfy the customer, satisfy the supplier, and continuously
improve the business processes.
Questions you may have include:
? How do you satisfy the customer?
? Why should you satisfy the supplier?
? What is continuous improvement?
This lesson will answer those questions.
Satisfy the customer
The first and major TQM principle is to satisfy the customer--the person who pays
for the product or service. Customers want to get their money's worth from a
product or service they purchase.
Users
If the user of the product is different than the purchaser, then both the user and
customer must be satisfied, although the person who pays gets priority.
Company philosophy
A company that seeks to satisfy the customer by providing them value for what
they buy and the quality they expect will get more repeat business, referral
business, and reduced complaints and service expenses.
Some top companies not only provide quality products, but they also give extra
service to make their customers feel important and valued.
Internal customers
Within a company, a worker provides a product or service to his or her
supervisors. If the person has any influence on the wages the worker receives, that
person can be thought of as an internal customer. A worker should have the
mind-set of satisfying internal customers in order to keep his or her job and to get
a raise or promotion.
Chain of customers
Often in a company, there is a chain of customers, -each improving a product and
passing it along until it is finally sold to the external customer. Each worker must
not only seek to satisfy the immediate internal customer, but he or she must look
up the chain to try to satisfy the ultimate customer.
Satisfy the supplier
A second TQM principle is to satisfy the supplier, which is the person or
organization from whom you are purchasing goods or services.
External suppliers
A company must look to satisfy their external suppliers by providing them with
clear instructions and requirements and then paying them fairly and on time.
It is only in the company's best interest that its suppliers provide it with quality
goods or services, if the company hopes to provide quality goods or services to its
external customers.
Internal suppliers
A supervisor must try to keep his or her workers happy and productive by
providing good task instructions, the tools they need to do their job and good
working conditions. The supervisor must also reward the workers with praise and
good pay.
Get better work
The reason to do this is to get more productivity out of the workers, as well as to
keep the good workers. An effective supervisor with a good team of workers
will certainly satisfy his or her internal customers.
Empower workers
One area of satisfying the internal suppler is by empowering the workers. This
means to allow them to make decisions on things that they can control. This not
only takes the burden off the supervisor, but it also motivates these internal
suppliers to do better work.
Continuous improvement
The third principle of TQM is continuous improvement. You can never be
satisfied with the method used, because there always can be improvements.
Certainly, the competition is improving, so it is very necessary to strive to keep
ahead of the game.
Working smarter, not harder
Some companies have tried to improve by making employees work harder. This
may be counter-productive, especially if the process itself is flawed. For example,
trying to increase worker output on a defective machine may result in more
defective parts.
Examining the source of problems and delays and then improving them is what is
needed. Often the process has bottlenecks that are the real cause of the problem.
These must be removed.
Worker suggestions
Workers are often a source of continuous improvements. They can provide
suggestions on how to improve a process and eliminate waste or unnecessary
work.
Quality methods
There are also many quality methods, such as just-in-time production, variability
reduction, and poka-yoke that can improve processes and reduce waste.
The concept of TQM (Total Quality Management)
Total Quality Management is a management approach that originated in the 1950's and has steadily
become more popular since the early 1980's. Total Quality is a description of the culture, attitude and
organization of a company that strives to provide customers with products and services that satisfy their
needs. The culture requires quality in all aspects of the company's operations, with processes being done
right the first time and defects and waste eradicated from operations.
Total Quality Management, TQM, is a method by which management and employees can become
involved in the continuous improvement of the production of goods and services. It is a combination of
quality and management tools aimed at increasing business and reducing losses due to wasteful
practices.
Some of the companies who have implemented TQM include Ford Motor Company, Phillips
Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.
TQM Defined
TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance,
design, engineering, and production, customer service, etc.) to focus on meeting customer needs and
organizational objectives.
TQM views an organization as a collection of processes. It maintains that organizations must strive to
continuously improve these processes by incorporating the knowledge and experiences of workers. The
simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable
and adaptable. Although originally applied to manufacturing operations, and for a number of years only
used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in
service and public sector organizations. There are a number of evolutionary strands, with different sectors
creating their own versions from the common ancestor. TQM is the foundation for activities, hich include:
? Commitment by senior management and all employees
? Meeting customer requirements
? Reducing development cycle times
? Just In Time/Demand Flow Manufacturing
? Improvement teams
? Reducing product and service costs
? Systems to facilitate improvement
? Line Management ownership
? Employee involvement and empowerment
? Recognition and celebration
? Challenging quantified goals and benchmarking
? Focus on processes / improvement plans
? Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing,
Engineering, R&D, Sales, Purchasing, HR, etc.
The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface
lie a number of processes. This core must be surrounded by commitment to quality, communication of the
quality message, and recognition of the need to change the culture of the organization to create total
quality. These are the foundations of TQM, and they are supported by the key management functions of
people, processes and systems in the organization.
doc_637661660.docx
Intense global competition and diminishing trade barriers are making it more and more difficult for companies to maintain their market share. Competition from companies operating in different markets has increased as advancements in telecommunications and information technology have broken down traditional barriers to entry
A Project Report
On
PRODUCTIVITY IMPROVEMENT THROUGH
TOTAL QUALITY MANAGEMENT
Submitted in partial fulfilment of requirements
For the award of the Degree of
BACHELOR OF ENGINEERING
IN
PRODUCTION ENGINEERING
By
ABHINANDAN KUMAR
Under the guidance of
Prof. KAPIL DEV PRASAD
Department of Production Engineering
DEPARTMENT OF PRODUCTION ENGINEERING
BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RACHI
2014
DECLARATION CERTIFICATE
This is to certify that the project entitled “PRODUCTIVITY IMPROVEMENT
THROUGH TOTAL QUALITY MANAGEMENT” submitted by ABHINANDAN
KUMAR in partial fulfilment for the award of the degree of B.E in Production
Engineering of Birla Institute of Technology, Mesra, Rachi is the record of the student
own work carried out under my guidance and supervision.
No part of this project has been submitted to any other university/institute for the award of
this or any other degree.
DATE: Prof. KAPIL DEV PRASAD
(Department of Production Engineering)
CERTIFICATE OF APPROVAL
This project entitled “PRODUCTIVITY IMPROVEMENT THROUGH TOTAL
QUALITY MANAGEMENT” is here by approved as a creditable engineering study
carried out and presented in a satisfactory manner to narrate its acceptance as prerequisite
to the degree for which it is being submitted.
(Internal Examiner) (External Examiner)
Head of Department
Department of Production Engineering
ACKNOWLEDGMENT
Working on this project on “PRODUCTIVITY IMPROVEMENT THROUGH TOTAL
QUALITY MANAGEMENT” was a source of immense knowledge to me. We would like
to express my sincere gratitude to Prof. Kapil Dev Prasad for his guidance and valuable
support thought out the course of this project work. We acknowledge with a deep sense of
gratitude, the encouragement and inspiration received from our faculty members and
colleagues. We would also like to thank our parents for their love and support.
ABHINANDAN KUMA
ABSTRACT
My project argues that the Total Quality Management concept and its
implementation is the critical need for the survival of industries. In the meantime,
lean manufacturing and constraint management could work together to improve
productivity, efficiency and quality. The article discusses the environment in which
businesses are operating, the effect of the total quality management on
productivity and presents some of the benefits that were realized by implementing
total quality management. Direct benefits from combining the concepts of lean
manufacturing and constrained management during the productivity improvement
process by using automation reduce production cycle times by more effectively
designing and scheduling the movement of robots. The ultimate goal is to satisfy
customer’s demand. My project discusses how constrained management
substantially increases production.
PRODUCTIVITY IMPROVEMENT
THROUGH
TOTAL QUALITY MANAGEMENT
1. How to increases productivity of an Industry
2. General methods used in Industry to increases
productivity
3. What is TQM?
4. How to help TQM to improve productivity of an Industry
5. Total Quality Management model and productivity
6. Constraint management, Lean production and the
competitive advantage
Relationships
7. Conclusions
8. Bibliography:
INTRODUCTION
Intense global competition and diminishing trade barriers are making it more and
more difficult for companies to maintain their market share. Competition from
companies operating in different markets has increased as advancements in
telecommunications and information technology have broken down traditional
barriers to entry.
In a competitive environment, a business must persuade a customer to buy its
products rather than those of competitors at a price that is more than its cost of
production. A rational customer, however, would like to maximize value for his
money. Therefore, a successful producer must enhance the total value of his
products so that the price is acceptable to the customer while his own costs are
low enough to allow him to make a profit.
Total quality management (TQM) is all about fostering a culture that is
continuously oriented towards increasing customer satisfaction while minimizing
the real cost of production.
Increasing competition in the global market necessitates that productivity should
not be considered as an indicator of efficiency only; it must also measure
effectiveness. Yet the distinction between the two is often overlooked. For
example, a company that produces according to process specifications may be
using its resources efficiently, but unless it is producing what its customers want it
may not be using them effectively. To be profitable, a company must judge
productivity and value from the perspective of the customer, not from the
engineer.
Older manufacturing facilities are often faced with productivity challenges due to
their inflexible designs. The application of some of the principles of lean
manufacturing is more restricted in such a setting. Today, “lean” may no longer
be fashionable but its core principles flow, value, pull, minimizing waste etc.)
Have become the paradigm for many manufacturing (and service) operations. In
order to provide a platform for establishing the long-term competitive impact of
the lean production model, the paper then develops a theoretical construct
explaining the mechanisms that underpin sustainable competitive advantage.
• Productivity is usually taken in isolated scenario and cases.
• This usually lacks the holistic system approach of a productivity improvement
project starting from its vision till operational tasks.
• As such, the benefit gained at one part of a system in time is eaten by the
sluggishness performance at another part of the same system.
• The focus of discussion here is at the holistic approach of productivity; starting
from:
? Its basic concept,
? Associated factors affecting it,
? The TQM tools and techniques used in productivity improvement program
and
? Measurement in all types of industries, social and academic fields.
• Due to sever impact of productivity on national economy, it is at the top of
national agenda of industrialized countries to have good monitoring and
assessment system of performance of individuals and organizations.
• Underdeveloped and developing courtiers can take great advantage out of
productivity implementation as the huge gap for productivity improvement in
these economies.
• Higher productivity can be linked to national prosperity and socioeconomic
development and balancing system.
BASIC DEFINITION
STATISTICS
Statistics means a good amount of data to obtain reliable results. The science of
statistics handles this data in order to draw certain conclusions. Statistical
techniques find extensive applications in quality control, production planning and
control, business charts, linear programming, etc.
QUALITY
Quality is a relative term and is generally explained with reference to the end use
of the product.
A componentise said to be of good quality if it works well in the equipment for
which it is meant. Quality is thus defined as fitness for purpose.
Plant Manager
Superintendents
Accounting Design and Production Quality Plant Procurement Industrial
Development Engineering Relations
Engineering
Assistant superintendent
of Quality
Department Head, Parts Department Head, Product
Quality Control Quality Control
Quality General foreman Quality General Foremen or
Enguneers Foreman Engineers Foremen of
` of Inspection Inspection and
Testing Labs
Organization of an Inspection Department
In manufacturing, a measure of excellence or a state of
being free from defects, deficiencies and significant variations. It is brought about
by strict and consistent commitment to certain standards
that achieve uniformity of a product in order to satisfy
specific customer or user requirements. ISO 8402-1986 standard defines quality as
"the totality of features and characteristics of a product or service
that bears its ability to satisfy stated or implied needs. " If
an automobile company finds a defect in one of their cars and makes a
product recall, customer reliability and therefore production will decrease
because trust will be lost in the car's quality.
CONTROL
Control is a system for measuring and checking (inspecting) a phenomena.
It suggests
? When to inspect
? How often to inspect
? How much to inspect.
In addition, it incorporates a feedback mechanism which explores the cause of
poor quality and takes corrective action.
What is TQM? : Basic Concepts
Total Quality Management / TQM is an integrative philosophy of
management for continuously improving the quality of products and processes.
TQM is based on the premise that the quality of products and processes is the
responsibility of everyone involved with the creation or consumption of the
products or services which are offered by an organization, requiring the
involvement of management, workforce, suppliers, and customers, to meet or
exceed customer expectations.
Cua, McKone, and Schroeder (2001) identified nine common TQM practices:
1. cross-functional product design
2. process management
3. supplier quality management
4. customer involvement
5. information and feedback
6. committed leadership
7. strategic planning
8. cross-functional training
9. employee involvement
? TQM is an integrated organization apporoach in delighting customers (both
external and internal) by meeting their expectaions on a continuous basis
through everyone involved with the organisation working on continuous
improvement in all product/processes along with proper problem
methodologhy.
? TQM means activities involing everyone in a company- Management and
workers in a totally integrated effort toward improving performance at every
level.
? This improved performance is directly towards satisfying cross-functional goal
as Quality, Cost, Manpower development, Quality of worklife etc.
? There activities ultimately lead to increased customer and Employee
satisfaction,
? In short, the definition says continuous meeting agreed customer requirements
at the lowest cost by realising the potential of all employees.”
TQM Principle
(i) Agree customer requirements
(ii) Understand customers/suppliers
(iii) Do the right things
(iv) Do thinngs right first time
(v) Measure for success
(vi) Continuous improvement is the goal
(vii) Management must lead
(viii) Training is essential
(ix) Communicates as never before
? TQM is a process of change in terms of values, beliefs, style and activity.
? The concepts are essentially simple to understand and yet are diffuclt to
implement.
Basic Principles of Total Quality Management (TQM)
The basic principles for the Total Quality Management (TQM) philosophy of
doing business are to satisfy the customer, satisfy the supplier, and continuously
improve the business processes.
Questions you may have include:
? How do you satisfy the customer?
? Why should you satisfy the supplier?
? What is continuous improvement?
This lesson will answer those questions.
Satisfy the customer
The first and major TQM principle is to satisfy the customer--the person who pays
for the product or service. Customers want to get their money's worth from a
product or service they purchase.
Users
If the user of the product is different than the purchaser, then both the user and
customer must be satisfied, although the person who pays gets priority.
Company philosophy
A company that seeks to satisfy the customer by providing them value for what
they buy and the quality they expect will get more repeat business, referral
business, and reduced complaints and service expenses.
Some top companies not only provide quality products, but they also give extra
service to make their customers feel important and valued.
Internal customers
Within a company, a worker provides a product or service to his or her
supervisors. If the person has any influence on the wages the worker receives, that
person can be thought of as an internal customer. A worker should have the
mind-set of satisfying internal customers in order to keep his or her job and to get
a raise or promotion.
Chain of customers
Often in a company, there is a chain of customers, -each improving a product and
passing it along until it is finally sold to the external customer. Each worker must
not only seek to satisfy the immediate internal customer, but he or she must look
up the chain to try to satisfy the ultimate customer.
Satisfy the supplier
A second TQM principle is to satisfy the supplier, which is the person or
organization from whom you are purchasing goods or services.
External suppliers
A company must look to satisfy their external suppliers by providing them with
clear instructions and requirements and then paying them fairly and on time.
It is only in the company's best interest that its suppliers provide it with quality
goods or services, if the company hopes to provide quality goods or services to its
external customers.
Internal suppliers
A supervisor must try to keep his or her workers happy and productive by
providing good task instructions, the tools they need to do their job and good
working conditions. The supervisor must also reward the workers with praise and
good pay.
Get better work
The reason to do this is to get more productivity out of the workers, as well as to
keep the good workers. An effective supervisor with a good team of workers
will certainly satisfy his or her internal customers.
Empower workers
One area of satisfying the internal suppler is by empowering the workers. This
means to allow them to make decisions on things that they can control. This not
only takes the burden off the supervisor, but it also motivates these internal
suppliers to do better work.
Continuous improvement
The third principle of TQM is continuous improvement. You can never be
satisfied with the method used, because there always can be improvements.
Certainly, the competition is improving, so it is very necessary to strive to keep
ahead of the game.
Working smarter, not harder
Some companies have tried to improve by making employees work harder. This
may be counter-productive, especially if the process itself is flawed. For example,
trying to increase worker output on a defective machine may result in more
defective parts.
Examining the source of problems and delays and then improving them is what is
needed. Often the process has bottlenecks that are the real cause of the problem.
These must be removed.
Worker suggestions
Workers are often a source of continuous improvements. They can provide
suggestions on how to improve a process and eliminate waste or unnecessary
work.
Quality methods
There are also many quality methods, such as just-in-time production, variability
reduction, and poka-yoke that can improve processes and reduce waste.
The concept of TQM (Total Quality Management)
Total Quality Management is a management approach that originated in the 1950's and has steadily
become more popular since the early 1980's. Total Quality is a description of the culture, attitude and
organization of a company that strives to provide customers with products and services that satisfy their
needs. The culture requires quality in all aspects of the company's operations, with processes being done
right the first time and defects and waste eradicated from operations.
Total Quality Management, TQM, is a method by which management and employees can become
involved in the continuous improvement of the production of goods and services. It is a combination of
quality and management tools aimed at increasing business and reducing losses due to wasteful
practices.
Some of the companies who have implemented TQM include Ford Motor Company, Phillips
Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.
TQM Defined
TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance,
design, engineering, and production, customer service, etc.) to focus on meeting customer needs and
organizational objectives.
TQM views an organization as a collection of processes. It maintains that organizations must strive to
continuously improve these processes by incorporating the knowledge and experiences of workers. The
simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable
and adaptable. Although originally applied to manufacturing operations, and for a number of years only
used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in
service and public sector organizations. There are a number of evolutionary strands, with different sectors
creating their own versions from the common ancestor. TQM is the foundation for activities, hich include:
? Commitment by senior management and all employees
? Meeting customer requirements
? Reducing development cycle times
? Just In Time/Demand Flow Manufacturing
? Improvement teams
? Reducing product and service costs
? Systems to facilitate improvement
? Line Management ownership
? Employee involvement and empowerment
? Recognition and celebration
? Challenging quantified goals and benchmarking
? Focus on processes / improvement plans
? Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing,
Engineering, R&D, Sales, Purchasing, HR, etc.
The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface
lie a number of processes. This core must be surrounded by commitment to quality, communication of the
quality message, and recognition of the need to change the culture of the organization to create total
quality. These are the foundations of TQM, and they are supported by the key management functions of
people, processes and systems in the organization.
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