INTRODUCTION
Total Quality Management (TQM) is a business management strategy aimed at embedding awareness of quality in all organizational processes. As defined by the International Organization for Standardization (ISO) "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." ISO 8402:1994
HISTORY OF TQM
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Developed in the mid 1940s by Dr. W. Edward Deming After World War II, General MacArthur took 200 scientists and specialists, including Dr. Deming, to Japan to help rebuild the country. Dr. Deming was invited by the Japanese Union of Scientists and Engineers to give lectures on his statistical quality techniques.
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Many Japanese manufacturing companies adopted Dr. Deming’s theories and were able to produce quality products at reduced costs. United States were more concerned with producing large quantities of products In the 1970s and 1980s, many American companies, including Ford, IBM, and Xerox, began adopting Dr Deming’s principles of Total Quality Management.
ADVANTAGES OF TQM
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Short-term and long-term advantages Eliminates errors and saves time It creates an organizational atmosphere of excitement and sense of accomplishment through the rewarding of creativity Profit generator
DISADVANTAGES OF TQM
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TQM may limit an organization’s flexibility and agility. TQM calls for the elimination of the goals and objectives required by Managementby-Objectives. Total Quality Management calls for the elimination of performance assessments that rate employees in relation to each other
Dr. Deming’s 14 Principles
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Create consistency of purpose:- Publish to all employees a statement of organization aims and purposes.
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Adopt the new philosophy:- Everyone must accept the quality challenge, learn their responsibilities, and take on the leadership required for change to the new philosophy. Poor quality should never reach the customer.
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Cease dependence on mass inspections:- The purpose of inspections is for improvement of processes and reduction of costs, not just to find defects.
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End the practice of choosing suppliers based solely upon price:- Rather than trying to find the lowest bidder and then having to deal with cost overruns and low quality products, organizations should move toward a single supplier for any one item. They may then build a long-term relationship of loyalty and trust with the supplier.
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Identify problems and work continuously to improve the system:- Organizations must improve constantly the system of quality service. TQM does not have an end; it is a continuous process.
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Institute training:- Organizations must adopt modern methods of formal training, especially for new hires. On-thejob-training is not acceptable. Teach and institute leadership:- The aim of leadership should not be just to tell people how to do a job, but to help people do a better job. Leadership is a learned skill, so organizations must train their managers to be good leaders. Drive fear out of the workplace:- Organizations must create trust and a climate for innovation. Much of workplace fear comes from by-the-numbers performance appraisals that have numerical quotas. Employees tend to do what is required to receive a good appraisal, not what is required for quality. Organization should tolerate failures when employees are experimenting with new ideas.
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?
Break down barriers between departments:Upper management should build teamwork between departments, not competition. Eliminate exhortations from the workplace. Management must stop using slogans and targets to request zero defects and improved productivity without providing workers the methods to achieve them. Eliminate work standards and numerical quotas for production. Upper management should stress achieving service quality rather than quantity. It should remove individual punishment/reward control systems, such as incentive pay. Eliminate Management-by-Objectives.
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Remove barriers to pride of workmanship:Organizations should abolish merit rating systems and not blame employees for system failures that are beyond their control. Institute and encourage vigorous programs of education, retraining, and self-improvement:Use master trainers to educate and nurture the workforce. Extensive follow-up training should then be used to maintain the organization’s vision. Act to accomplish the transformation:- Put everyone in the organization to work to accomplish the transformation. Transformation is the job of every employee, not just management. Establish some type of information center to keep the entire organization informed about transformation progress.
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Components of Total Quality Management
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Trust. Customer Focus. Process Management.
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The Case Study
Electron Electron is part of a large Japanese-owned multidivisional company. The factory is the sole producer of the company’s portable digital oscilloscopes. The company operates in a highly competitive market with business to business sales, and customers include major international companies. Most of its products are exported. Its main competitors include Hewlett Packard. The company operates a worldwide direct order entry system, which downloads orders overnight from Electron sales offices to the sites own order book. Ordered products are shipped directly to the customer from the factory ready for use. The company employs some 200 workers at the site, which is over 100 less than a year ago. About one-third of the workforce are graduates or graduate equivalents.
The quality initiative originated in 1989 when developments in “quality” in the manufacturing leads to conflict in different departments. Also market research found that the perception of Electron was still shaped by its early history, and it had a “cheap and cheerful” reputation. At the same time, a customer survey found that quality issues, such as reliability, support, warranty and maintenance costs were at least as important as performance and technical specification.
A visit by the MD to a number of suppliers convinced him that TQM was required as a vehicle for organizational change. The MD decided to appoint the HR Director to champion TQM. This was for three main reasons. First, given that the company was stressing communication, Second, it was necessary that TQM should be seen as a much broader issue than simply quality assurance, and it was felt that the wrong message would be given if the Quality Department was given the responsibility for introduction. Third, given some conflict and friction between different departments, it was important to have ‘Quality’ steered by what was perceived to be a neutral body — Human Resources.
TQM was introduced and overseen by a Central Steering Committee (the Quality Improvement Team) comprising senior management and chaired by the HR Director. Central to Electron’s approach to facilitating employee involvement is an Error Identification Form (ElF). This report sheet can be filled in by any employee and starts with, the statement, “the following is preventing me from performing error-free work”. Problems that are highlighted range from bad lighting to design problems. The report stays in existence until the problem has been dealt with, where upon the document is signed off by the employee who originated the enquiry. A list of outstanding EIFs is displayed on the notice boards. There have been over 220 EIFs in less than two years, the vast majority of which have been resolved, in relation to tools and techniques; the company has chosen to use simple measure and display techniques at task level (e.g. late delivery, past shortages). Electron has recently achieved 1S09001 registration and moved to a Just in Time system.
The main benefits of TQM are seen as improved team working, an increase in productivity, a significant percentage decrease in return of products during the warranty period, quicker payment of invoices, the maintenance of market share in a poor economic climate.
Communications have also been improved with a Total Quality newsletter and notice boards (updated every two weeks) to go alongside team briefing. Finally, performance appraisal now gives greater emphasis to quality and employees’ willingness to change.
doc_490904738.ppt
Total Quality Management (TQM) is a business management strategy aimed at embedding awareness of quality in all organizational processes. As defined by the International Organization for Standardization (ISO) "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." ISO 8402:1994
HISTORY OF TQM
?
?
?
Developed in the mid 1940s by Dr. W. Edward Deming After World War II, General MacArthur took 200 scientists and specialists, including Dr. Deming, to Japan to help rebuild the country. Dr. Deming was invited by the Japanese Union of Scientists and Engineers to give lectures on his statistical quality techniques.
?
?
?
Many Japanese manufacturing companies adopted Dr. Deming’s theories and were able to produce quality products at reduced costs. United States were more concerned with producing large quantities of products In the 1970s and 1980s, many American companies, including Ford, IBM, and Xerox, began adopting Dr Deming’s principles of Total Quality Management.
ADVANTAGES OF TQM
? ? ?
?
Short-term and long-term advantages Eliminates errors and saves time It creates an organizational atmosphere of excitement and sense of accomplishment through the rewarding of creativity Profit generator
DISADVANTAGES OF TQM
?
?
?
TQM may limit an organization’s flexibility and agility. TQM calls for the elimination of the goals and objectives required by Managementby-Objectives. Total Quality Management calls for the elimination of performance assessments that rate employees in relation to each other
Dr. Deming’s 14 Principles
?
Create consistency of purpose:- Publish to all employees a statement of organization aims and purposes.
?
Adopt the new philosophy:- Everyone must accept the quality challenge, learn their responsibilities, and take on the leadership required for change to the new philosophy. Poor quality should never reach the customer.
?
Cease dependence on mass inspections:- The purpose of inspections is for improvement of processes and reduction of costs, not just to find defects.
?
End the practice of choosing suppliers based solely upon price:- Rather than trying to find the lowest bidder and then having to deal with cost overruns and low quality products, organizations should move toward a single supplier for any one item. They may then build a long-term relationship of loyalty and trust with the supplier.
?
Identify problems and work continuously to improve the system:- Organizations must improve constantly the system of quality service. TQM does not have an end; it is a continuous process.
?
Institute training:- Organizations must adopt modern methods of formal training, especially for new hires. On-thejob-training is not acceptable. Teach and institute leadership:- The aim of leadership should not be just to tell people how to do a job, but to help people do a better job. Leadership is a learned skill, so organizations must train their managers to be good leaders. Drive fear out of the workplace:- Organizations must create trust and a climate for innovation. Much of workplace fear comes from by-the-numbers performance appraisals that have numerical quotas. Employees tend to do what is required to receive a good appraisal, not what is required for quality. Organization should tolerate failures when employees are experimenting with new ideas.
?
?
?
Break down barriers between departments:Upper management should build teamwork between departments, not competition. Eliminate exhortations from the workplace. Management must stop using slogans and targets to request zero defects and improved productivity without providing workers the methods to achieve them. Eliminate work standards and numerical quotas for production. Upper management should stress achieving service quality rather than quantity. It should remove individual punishment/reward control systems, such as incentive pay. Eliminate Management-by-Objectives.
?
?
?
Remove barriers to pride of workmanship:Organizations should abolish merit rating systems and not blame employees for system failures that are beyond their control. Institute and encourage vigorous programs of education, retraining, and self-improvement:Use master trainers to educate and nurture the workforce. Extensive follow-up training should then be used to maintain the organization’s vision. Act to accomplish the transformation:- Put everyone in the organization to work to accomplish the transformation. Transformation is the job of every employee, not just management. Establish some type of information center to keep the entire organization informed about transformation progress.
?
?
Components of Total Quality Management
?
Trust. Customer Focus. Process Management.
?
?
The Case Study
Electron Electron is part of a large Japanese-owned multidivisional company. The factory is the sole producer of the company’s portable digital oscilloscopes. The company operates in a highly competitive market with business to business sales, and customers include major international companies. Most of its products are exported. Its main competitors include Hewlett Packard. The company operates a worldwide direct order entry system, which downloads orders overnight from Electron sales offices to the sites own order book. Ordered products are shipped directly to the customer from the factory ready for use. The company employs some 200 workers at the site, which is over 100 less than a year ago. About one-third of the workforce are graduates or graduate equivalents.
The quality initiative originated in 1989 when developments in “quality” in the manufacturing leads to conflict in different departments. Also market research found that the perception of Electron was still shaped by its early history, and it had a “cheap and cheerful” reputation. At the same time, a customer survey found that quality issues, such as reliability, support, warranty and maintenance costs were at least as important as performance and technical specification.
A visit by the MD to a number of suppliers convinced him that TQM was required as a vehicle for organizational change. The MD decided to appoint the HR Director to champion TQM. This was for three main reasons. First, given that the company was stressing communication, Second, it was necessary that TQM should be seen as a much broader issue than simply quality assurance, and it was felt that the wrong message would be given if the Quality Department was given the responsibility for introduction. Third, given some conflict and friction between different departments, it was important to have ‘Quality’ steered by what was perceived to be a neutral body — Human Resources.
TQM was introduced and overseen by a Central Steering Committee (the Quality Improvement Team) comprising senior management and chaired by the HR Director. Central to Electron’s approach to facilitating employee involvement is an Error Identification Form (ElF). This report sheet can be filled in by any employee and starts with, the statement, “the following is preventing me from performing error-free work”. Problems that are highlighted range from bad lighting to design problems. The report stays in existence until the problem has been dealt with, where upon the document is signed off by the employee who originated the enquiry. A list of outstanding EIFs is displayed on the notice boards. There have been over 220 EIFs in less than two years, the vast majority of which have been resolved, in relation to tools and techniques; the company has chosen to use simple measure and display techniques at task level (e.g. late delivery, past shortages). Electron has recently achieved 1S09001 registration and moved to a Just in Time system.
The main benefits of TQM are seen as improved team working, an increase in productivity, a significant percentage decrease in return of products during the warranty period, quicker payment of invoices, the maintenance of market share in a poor economic climate.
Communications have also been improved with a Total Quality newsletter and notice boards (updated every two weeks) to go alongside team briefing. Finally, performance appraisal now gives greater emphasis to quality and employees’ willingness to change.
doc_490904738.ppt