NAME : Total Quality Management PURPOSE : This program focuses on teaching the attendants the importance of TQM and

making them understand and apply it fully. CONTENTS: The program contains subjects like quality, quality tests, history of TQM, globalization, VSM test, mistakes about TQM and success factors of TQM along with ISO concepts DETAILS OF THE SUBJECT: What is quality Quality concept in Turkey Quality test History of TQM Globalization and way to TQM Design quality- Fitness quality Nominal value and tolerance concepts VFM concept Internal and external customer Pool principle in TQM Factors that affect quality TQM processes What customers dislike SWOT analysis withinTQM Pareto law Success factors of TQM Main indicators of success Mistakes about TQM Classical vs. Total quality management Concept of change Kaizzen management Zero Defects(ZD) program ZD test Quality control and quality assurance concepts Reactive vs Proactive management Measurement tools of quality ISO 9001, 9002, 9003 ve 9004-2 and certificationSponsored Links
Supply Chain Mgmt DegreeImprove your career in Supply Chain Get CIPS Accredited Masters from UKwww.RGU.ac.uk/ABS Leading LatAm 3PLFree Zone Distribution Platform Lower Costs, Shorter Lead Timeswww.colimp.com ISPE Guidance DocumentsISPE Publications are necessary resources for the Pharma industry.www.ISPE.org/Publications Logistics Ads Supply Chain TQM Examples TQM Quality ISO 9001 TQM Logistics Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. This can be achieved by integrating all qualityrelated functions and processes throughout the company. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. TQM takes into account all quality measures taken at all levels and involving all company employees.

Origins Of TQM Total quality management has evolved from the quality assurance methods that were first developed around the time of the First World War. The war effort led to large scale manufacturing efforts that often produced poor quality. To help correct this, quality inspectors were introduced on the production line to ensure that the level of failures due to quality was minimized. 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 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 1950s quality control was an integral part of Japanese manufacturing and was adopted by all levels of workers within an organization. By the 1970s 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. Principles of TQM TQM can be defined as the management of initiatives and procedures that are aimed at achieving the delivery of quality products and services. A number of key principles can be identified in defining TQM, including:

Executive Management Top management should act as the main driver for TQM and create an environment that ensures its success. Training Employees should receive regular training on the methods and concepts of quality. Customer Focus Improvements in quality should improve customer satisfaction. Decision Making Quality decisions should be made based on measurements. Methodology and Tools Use of appropriate methodology and tools ensures that nonconformances are identified, measured and responded to consistently. Continuous Improvement Companies should continuously work towards improving manufacturing and quality procedures. Company Culture The culture of the company should aim at developing employees ability to work together to improve quality. Employee Involvement Employees should be encouraged to be pro-active in identifying and addressing quality related problems.

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 American quality expert, Phil Crosby, wrote that many companies chose to pay for the poor quality in what he referred to as the Price of Nonconformance. The costs are identified in the Prevention, Appraisal, 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. 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 customers complaints. Returns Transportation, investigation and handling of returned items.

METHODOLOGY This research attempts to answer three questions: 1) Is implementation, in practice, related to performance in small- to medium-sized firms, 2) Does Hackman and Wageman's definition hold up under empirical testing, and 3) Does industry sector have an impact on the outcome of quality management initiatives. The answers to these three questions will serve as a basis to discuss if TQM is best deployed as a contingent process. Data used to answer the research questions were collected from a random sample of 210 small- to medium-sized manufacturing firms (SMMs) located in the Southeastern United States. We elected to investigate these firms since they are key contributors to the economy, providing most of the opportunity for employment (Gunasekaran, Forker, & Kobu, 2000). In fact, data from the latest available U.S. Census report show that firms with = 999 employees hire fully 80% of all those working in the manufacturing sector. In addition, SMMs account for 73.8% of total manufacturing payroll (U.S. Bureau of the Census, 2001). There are many notions as to what constitutes a small business (Yusof & Aspinwall, 2000). For example, Gunasekaran, et al. (2000) studied firms in the U.K. with 500 or less employees. Tseng, Tansuhaj, and Rose

(2004) sampled firms with as many as 1,500 workers, noting that this approach was consistent with certain maximums of the US Small Business Administration. For the purposes of this study, we take the midpoint and define SMMs as those with less than 1,000 employees on site, consistent with Moini (1991). A total of eight quality management elements were evaluated in the study. The internal consistency of the elements was checked using reliability analysis, which shows how the items are related to each other. The Cronbach's Alphas for those elements range from .74 to .87, a result satisfactory for this type of analysis (Nunnally, 1978). The quality management elements are presented in Table 1. The elements and underlying survey variables center on fundamental concepts identified in the previous empirical work. For example, both Ellington et al. (1996) and Douglas & Judge (2001) included measures of customer focus, breadth of quality definition, continuous improvement, managerial role, and process capability/quantitative measurement systems. In addition, the training variables used in this research are linked to Ahire (1996), while the conformance measures are those used by Ellington et al. (1996). Finally, the eight elements map directly to quality management precepts embodied in both the Malcolm Baldrige Award (National Institute of Standards and Technology, 2004) and the five core features of TQM proposed by Hackman and Wageman (1995). DEMOGRAPHICS A key goal of the research is to test for interaction between industry type and the outcome of TQM programs. Thus, a heterogeneous sample is needed. Table 2 presents a summary of industries represented in the survey. The respondent percentages by industry feature a broad cross-section of manufacturing industries. In addition, the plastics, metals, food products, and wood industries discussed in the contingency literature are included in the sample. This broad mix of firms augurs well for generalizability of the results to the population of smallmedium sized manufacturers, and for our ability to test whether TQM is a process contingent on industry type, as suggested in the literature review. RESEARCH APPROACH The first step in the analysis was to factor analyze the survey variables that formed the eight quality elements in an effort to identify underlying quality management constructs. Firms were then clustered into groups on the basis of those factors. The resulting groups formed a hierarchy of quality management implementation or execution. Hierarchy membership (independent variable) and performance (dependent variable) were tested using ANOVA routines, and minimum significant difference tests were conducted to determine differences in group performance. Chi-Square analysis was then used to determine if the mean group performance varied by industry. Finally, cluster profiling was deployed to determine the practices of higher performing groups, and if these practices could be mapped to Hackman and Wageman's definition of TQM (1995). UNDERLYING QUALITY MANAGEMENT CONSTRUCTS To address research question 1, principal components analysis was conducted separately on each of the eight quality management elements using the latent root criterion (mineigen = 1) to determine significant factors (Hair, Anderson, Tatham, & Black, 1995). These analyses resulted in a total of 29 factors. Each item making up the respective orthogonal factor had a loading of 0.38 or greater, which supports construct validity (Terziovski & Samson, 1999). Table 3 summarizes the factor analysis and describes each of the quality management dimensions. The table shows that each of the factors features a logical theme and maps to one of the eight quality management elements. The total variance accounted for by the factor solutions ranged from a low of 53.63% to a high of 76.28%, a result Hair et al. suggest is satisfactory for this type of study (1995). QUALITY MANAGEMENT EXECUTION Factor scores were computed for each of the 29 factors, and these scores were standardized to remove scaling differences. Using these standardized factor scores, the 210 firms in the study were clustered into groups.

Consistent with Ellington, et al. (1996), a four-group solution was found. Table 4 details the results of the analysis. Group 4 scores are generally very high across all 29 quality management execution factors. Group 3 scores are somewhat lower than group 4, but higher than group 2. Finally, group 1 scores are generally very low on all factors. Thus, we describe group 4 firms as holistic quality management implementers. Group 3 firms show a relatively high level of quality management implementation, albeit at a lower level than...

Total Quality Management (TQM) Tools

Total quality management (TQM) tools help organizations to identify, analyze and assess qualitative and quantitative data that is relevant to their business. These tools can identify procedures, ideas, statistics, cause and effect concerns and other issues relevant to their organizations. Each of which can be examined and used to enhance the effectiveness, efficiency, standardization and overall quality of procedures, products or work environment, in accordance with ISO 9000 standards (SQ, 2004). According to Quality America, Inc. (ReVelle, 2003) the number of TQM tools is close to 100 and come in various forms, such as brainstorming, focus groups, check lists, charts and graphs, diagrams and other analysis tools. In a different vein, manuals and standards are TQM tools as well, as they give direction and best practice guidelines to you and/or your staff. TQM tools illustrate and aid in the assimilation of complicated information such as: identification of your target audience positive and negative forces affecting business assessment of customer needs competition analysis market analysis brainstorming ideas productivity changes various statistics staff duties and work flow analysis statement of purpose financial analysis model creation business structure logistics analysis The list goes on, though essentially TQM tools can be used in any situation, for any number of reasons, and can be extremely effective if used properly. TQM Tools The following are some of the most common TQM tools in use today. Each is used for, and identifies, specific information in a specific manner. It should be noted that tools should be used in conjunction with other tools to understand the full scope of the issue being analyzed or illustrated. Simply using one tool

may inhibit your understanding of the data provided, or may close you off to further possibilities. Pie Charts and Bar Graphs Used to identify and compare data units as they relate to one issue or the whole, such as budgets, vault space available, extent of fonds, etc. Histograms To illustrate and examine various data element in order to make decisions regarding them. Effective when comparing statistical, survey, or questionnaire results.

Run Chart Follows a process over a specific period of time, such as accrual rates, to track high and low points in its run, and ultimately identify trends, shifts and patterns. Fi

Pareto Charts / Analysis (designed by Vilfredo Pareto) Rates issues according to importance and frequency by prioritizing specific problems or causes in a manner that facilitates problem solving.

Identify groupings of qualitative data, such as most frequent complaint, most commonly purchased preservation aid, etc. in order to measure which have priority. Can be scheduled over select periods of time to track changes. They can also be created in retrospect, as a before and after analysis of a process change.

Force Field Analysis To identify driving and restraining forces occurring in a chosen process in order to understand why that particular process functions as it does. For example, identifying the driving and restraining forces of catering predominantly to genealogists. To identify restraining forces that need to be eradicated, or driving forces that need to be improved, in order to function at a higher level of efficiency. Cause and Effect, Ishikawa or Fishbone Diagrams (designed by Kauro Ishikawa) Illustrates multiple levels of potential causes (inputs), and ultimate effects (outputs), of problems or issues that may arise in the course of business. May be confusing if too many inputs and outputs are identified. An alternative would be a tree diagram, which is much easier to follow.

Total Quality Management (TQM) Tools

Total quality management (TQM) tools help organizations to identify, analyze and assess qualitative and quantitative data that is relevant to their business. These tools can identify procedures, ideas, statistics, cause and effect concerns and other issues relevant to their organizations. Each of which can be examined and used to enhance the effectiveness, efficiency, standardization and overall quality of procedures, products or work environment, in accordance with ISO 9000 standards (SQ, 2004). According to Quality America, Inc. (ReVelle, 2003) the number of TQM tools is close to 100 and come in

various forms, such as brainstorming, focus groups, check lists, charts and graphs, diagrams and other analysis tools. In a different vein, manuals and standards are TQM tools as well, as they give direction and best practice guidelines to you and/or your staff. TQM tools illustrate and aid in the assimilation of complicated information such as: identification of your target audience positive and negative forces affecting business assessment of customer needs competition analysis market analysis brainstorming ideas productivity changes various statistics staff duties and work flow analysis statement of purpose financial analysis model creation business structure logistics analysis The list goes on, though essentially TQM tools can be used in any situation, for any number of reasons, and can be extremely effective if used properly. TQM Tools The following are some of the most common TQM tools in use today. Each is used for, and identifies, specific information in a specific manner. It should be noted that tools should be used in conjunction with other tools to understand the full scope of the issue being analyzed or illustrated. Simply using one tool may inhibit your understanding of the data provided, or may close you off to further possibilities. Pie Charts and Bar Graphs Used to identify and compare data units as they relate to one issue or the whole, such as budgets, vault space available, extent of fonds, etc. Histograms To illustrate and examine various data element in order to make decisions regarding them. Effective when comparing statistical, survey, or questionnaire results. Fig.1 Run Chart Follows a process over a specific period of time, such as accrual rates, to track high and low points in its run, and ultimately identify trends, shifts and patterns. Fig. 2 Pareto Charts / Analysis (designed by Vilfredo Pareto) Rates issues according to importance and frequency by prioritizing specific problems or causes in a manner that facilitates problem solving.

Identify groupings of qualitative data, such as most frequent complaint, most commonly purchased preservation aid, etc. in order to measure which have priority. Can be scheduled over select periods of time to track changes. They can also be created in retrospect, as a before and after analysis of a process change. Fig. 3 Force Field Analysis To identify driving and restraining forces occurring in a chosen process in order to understand why that particular process functions as it does. For example, identifying the driving and restraining forces of catering predominantly to genealogists. To identify restraining forces that need to be eradicated, or driving forces that need to be improved, in order to function at a higher level of efficiency. Cause and Effect, Ishikawa or Fishbone Diagrams (designed by Kauro Ishikawa) Illustrates multiple levels of potential causes (inputs), and ultimate effects (outputs), of problems or issues that may arise in the course of business. May be confusing if too many inputs and outputs are identified. An alternative would be a tree diagram, which is much easier to follow. Fig. 4 Focus Groups Useful for marketing or advertising organizations to test products on the general public. Consist of various people from the general public who use and discuss your product, providing impartial feedback to help you determine whether your product needs improvement or if it should be introduced onto the market. Brainstorming and Affinity Diagrams Teams using creative thinking to identify various aspects surrounding an issue. An affinity diagram, which can be created using anything from enabling software to post-it notes organized on a wall, is a tool to organize brainstorming ideas. Tree Diagram To identify the various tasks involved in, and the full scope of, a project. To identify hierarchies, whether of personnel, business structure, or priorities. To identify inputs and outputs of a project, procedure, process, etc. Fig. 5 Flowcharts and Modelling Diagrams Assist in the definition and analysis of each step in a process by illustrating it in a clear and comprehensive manner. Identify areas where workflow may be blocked, or diverted, and where workflow is fluid. Identify where steps need to be added or removed to improve efficiency and create standardized workflow.

Fig. 6 Scatter Diagram To illustrate and validate hunches To discover cause and effect relationships, as well as bonds and correlations, between two variables To chart the positive and negative direction of relationships Fig. 7 Relations Diagram To understand the relationships between various factors, issues, events, etc. so as to understand their importance in the overall organizational view. PDCA The Plan-Do-Check-Act style of management where each project or procedure is planned according to needs and outcome, it is then tested, examined for efficiency and effectiveness, and then acted upon if anything in the process needs to be altered. This is a cyclical style to be iterated until the process is perfected. All of these TQM tools can be easily created and examined by using various types of computer software (Pollock, 2003) or by simply mapping them out on paper. They can also be easily integrated into team meetings, organizational newsletters, marketing reports, and for various other data analysis needs. Proper integration and use of these tools will ultimately assist in processing data such as identifying collecting policies, enhancing work flow such as mapping acquisition procedures, ensuring client satisfaction by surveying their needs and analyzing them accordingly, and creating an overall high level of quality in all areas of your organization. References Gunther, J., Hawkins, F. (1999). Making TQM work: Quality tools for human service organizations. New York: Springer Publishing Company. Narasimhan, T., Trotter, E. (1999). The application of TQM tools in a strategic business plan. Center for Quality of Management Journal, 8 (3). Retrieved September 16, 2004, from http://cqmextra.cqm.org/cqmjournal.nsf/reprints/rp10700 *Pollock, R. (October 23, 2003). Online Resources About: Quality Management & Performance Excellence. Retrieved September 16, 2004, from http://www.gslis.utexas.edu/~rpollock/tqm.html Bibliographic resource site for TQM, tools, ISO 9000 and related organizations available on the Internet. ReVelle, J. (2003). TQM tools & tool kits. Retrieved September 16, 2004, from http://www.qualityamerica.com/knowledgecente/articles/revelletqmtools.htm

*Simply Quality (2004). What are ISO 9000 and ISO 9001? Retrieve September 17, 2004, from http://www.isoeasy.org/ Easy navigation and understanding of the ISO 9000 and 9001 standards on Total Quality Management. *SkyMark. (2004). Classic Tools. Retrieved September 17, 2004 from http://www.skymark.com/resources/tools/management_tools.asp Encyclopaedic reference site for various quality control charts and TQM tools, with descriptions and examples of each. *Sytsma, S., Manley, K. (June 9, 1999). The Quality Tools Cookbook. Retrieved September 15, 2004 from http://www.sytsma.com/tqmtools/tqmtoolmenu.html Encyclopaedic reference site for commonly used TQM tools, describing use and creation of the specific tool. Figure References Fig. 1 SkyMark. (2004). Retrieved September 16, 2004, from http://www.skymark.com/resources/tools/histograms.asp Fig. 2 SkyMark (2004). Retrieved September 16, 2004, from http://www.skymark.com/resources/tools/run_charts.asp Fig. 3 Systma, S. (1999). Retrieved September 16, 2004, from http://www.sytsma.com/tqmtools/pareto2.gif Fig. 4 International Software Consulting Network. (2004). Retrieved September 16, 2004, from http://www.iscn.at/select_newspaper/measurement/telenor_fig4.gif Fig. 5 Yeadon Energy Systems. (2004). Retrieved September 16, 2004, from http://www.yeadoninc.com/diagram.gif Fig. 6 National Highway Traffic Safety Administration. (2004). Retrieved September 16, 2004, from http://www.nhtsa.dot.gov/people/perform/trafrecords/pages/codes/flowchart.jpg Fig. 7 Quality Assurance Project. (2004). Retrieved September 16, 2004, from http://www.qaproject.org/images/scatterdiagram.jpg Prepared by: Cara Payne September 2004

Ten Steps to TQM are as follows: 1. Pursue New Strategic Thinking 2. Know your Customers 3. Set True Customer Requirements 4. Concentrate on Prevention, Not Correction 5. Reduce Chronic Waste 6. Pursue a Continuous Improvement Strategy 7. Use Structured Methodology for Process Improvement 8. Reduce Variation 9. Use a Balanced Approach 10. Apply to All Functions

[Back to Index]

Principles of TQM The Principles of TQM are as follows: 1. Quality can and must be managed. 2. Everyone has a customer and is a supplier. 3. Processes, not people are the problem. 4. Every employee is responsible for quality. 5. Problems must be prevented, not just fixed. 6. Quality must be measured. 7. Quality improvements must be continuous. 8. The quality standard is defect free. 9. Goals are based on requirements, not negotiated. 10. Life cycle costs, not front end costs. 11. Management must be involved and lead. 12. Plan and organize for quality improvement. [Back to Index]

Processes must be Managed and Improved Processes must be managed and improved! This involves:

Defining the process Measuring process performance (metrics) Reviewing process performance Identifying process shortcomings Analyzing process problems Making a process change Measuring the effects of the process change Communicating both ways between supervisor and user

[Back to Index]

Key to Quality The key to improving quality is to improve processes that define, produce and support our products. All people work in processes.

People

Get processes "in control" Work with other employees and managers to identify process problems and eliminate them

Managers and/or Supervisors Work on Processes

Provide training and tool resources Measure and review process performance (metrics) Improve process performance with the help of those who use the process

[Back to Index] Introduction Total Quality Management (TQM), a buzzword phrase of the 1980's, has been killed and resurrected on a number of occasions. The concept and principles, though simple seem to be creeping back into existence by "bits and pieces" through the evolution of the ISO9001 Management Quality System standard. Companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company. The latest changes coming up for the ISO 9001:2000 standards "Process Model" seem to complete the embodiment. TQM is the concept that quality can be managed and that it is a process. The following information is provided to give an understanding of the key elements of this process.

[Back to Index]

Total Quality Management (TQM) Total = Quality involves everyone and all activities in the company. Quality = Conformance to Requirements (Meeting Customer Requirements). Management = Quality can and must be managed. TQM = A process for managing quality; it must be a continuous way of life; a philosophy of perpetual improvement in everything we do. [Back to Index]

TQM Compared to ISO 9001 ISO 9000 is a Quality System Management Standard. TQM is a philosophy of perpetual improvement. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives. An ISO implementation is a basis for a Total Quality Management implementation. Where there is an ISO system, about 75 percent of the steps are in place for TQM. The requirements for TQM can be considered ISO plus. Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction and measurement requirements. In short, implementing TQM is being proactive concerning quality rather than reactive. [Back to Index]

TQM as a Foundation TQM is the foundation for activities which include;

Meeting Customer Requirements Reducing Development Cycle Times Just In Time/Demand Flow Manufacturing Improvement Teams Reducing Product and Service Costs Improving Administrative Systems Training

[Back to Index]

TQM Tools
Here follows a brief description of the basic set of Total Quality Management tools. They are:

Pareto Principle Scatter Plots Control Charts Flow Charts Cause and Effect , Fishbone, Ishikawa Diagram Histogram or Bar Graph Check Lists Check Sheets

The Pareto principle suggests that most effects come from relatively few causes. In quantitative terms: 80% of the problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of the wealth is owned by 20% of the people etc. Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back to back) Pareto charts can be used to compare 'before and after' situations. General use, to decide where to apply initial effort for maximum effect. Return to TQM Tools index

Scatter Plots

A scatter plot is effectively a line graph with no line - i.e. the point intersections between the two data sets are plotted but no attempt is made to physically draw a line. The Y axis is conventionally used for the characteristic whose behaviour we would like to predict. Use, to define the area of relationship between two variables. Warning: There may appear to be a relationship on the plot
when in reality there is none, or both variables actually relate independently to a third variable.

Control Charts

Control charts are a method of Statistical Process Control, SPC. (Control system for production processes). They enable the control of distribution of variation rather than attempting to control each individual variation. Upper and lower control and tolerance limits are calculated for a process and sampled measures are regularly plotted about a central line between the two sets of limits. The plotted line corresponds to the stability/trend of the process. Action can be taken based on trend rather than on individual variation. This prevents over-correction/compensation for random variation, which would lead to many rejects.

Flow Charts

Pictures, symbols or text coupled with lines, arrows on lines show direction of flow. Enables modelling of processes; problems/opportunities and decision points etc. Develops a common understanding of a process by those involved. No particular standardisation of symbology, so communication to a different audience may require considerable time and explanation

Cause and Effect , Fishbone, Ishikawa Diagram

The cause-and-effect diagram is a method for analysing process dispersion. The diagram's purpose is to relate causes and effects. Three basic types: Dispersion analysis, Process classification and cause enumeration. Effect = problem to be resolved, opportunity to be grasped, result to be achieved. Excellent for capturing team brainstorming output and for filling in from the 'wide picture'. Helps organise and relate factors, providing a sequential view. Deals with time direction but not quantity. Can become very complex. Can be difficult to identify or demonstrate interrelationships

Histogram or Bar Graph

A Histogram is a graphic summary of variation in a set of data. It enables us to see patterns that are difficult to see in a simple table of numbers. Can be analysed to draw conclusions about the data set. A histogram is a graph in which the continuous variable is clustered into categories and the value of each cluster is plotted to give a series of bars as above. The above example reveals the skewed distribution of a set of product measurements that remain nevertheless within specified limits. Without using some form of graphic this kind of problem can be difficult to analyse, recognise or identify.

Check Sheets
A Check Sheet is a data recording form that has been designed to readily interpret results from the form itself. It needs to be designed for the specific data it is to gather. Used for the collection of quantitative or qualitative repetitive data. Adaptable to different data gathering situations. Minimal interpretation of results required. Easy and quick to use. No control for various forms of bias - exclusion, interaction, perception, operational, non-response, estimation. Return to TQM Tools index

Check Lists
A Checklist contains items that are important or relevant to a specific issue or situation. Checklists are used under operational conditions to ensure that all important steps or actions have been taken. Their primary purpose is for guiding operations, not for collecting data. Generally used to check that all aspects of a situation have been taken into account before action or decision making. Simple, effective. Return to TQM Tools index
10 Principals of TQM Methodology
1. 100% Commitment

2. Customer Driven 3. Detailed Process 4. Improvement Teams 5. Long Term Thinking 6. Management and Monitoring 7. Continual Improvement 8. Frequent Auditing 9. Employee Empowerment 10. Measuring and Controlling

100% Commitment
In order for TQM to work, all management must be 100% committed to the TQM methodology. This includes the most top level person to all line managers. Top management must understand and harness the principles of TQM. Top Management is responsible for removing fear from the organizations employees. Employees cannot be fearful of making mistakes. Employees cannot be fearful of making decisions. 100% commitment means that all management receives training in Total Quality Management tools, teams, continuous improvement, and customer satisfaction. After training, management then trains all other employees. Management needs to realize that TQM is an investment, a long term investment. Before making the decision to jump on the TQM bandwagon, get training first. Research TQM thoroughly. The road to TQM requires hard, hard work. However the benefits are outstanding and long lasting. Do not make an emotional call based on your organization current situation. Top management must be willing to change. This may include a reorganization. If top management cannot commit, perhaps they are used to their own way, then TQM is not going to work. Is your company willing to put the right people in the right roles to move ahead with TQM?

Customer Driven
Selling quality products to customers is just a small part of TQM methodology. Your company will need to outstandingly serve the customer. This means many things depending on your customers such as Providing information as needed Holding the customer hand through installation. Creating custom surveys to capture your customer needs Constantly improving lead times Quickly responding to customer questions. Providing detail information on your website

Not only do you satisfy external customer needs but you satisfy internal customer needs too. This means that your employees must be happy and motivated. Include all employees in improvement projects. Do all employees have the tools, recourses to complete their tasks? Do all employees partake in improvement projects? Have you surveyed the employees to find their needs?

Detailed Process
In a TQM environment, you sweat the details. You document the process details. You eliminate the waste or non value added steps. You assure that all employees follow the same process. The processes produces product that satisfies the customer. The internal customer is the person receiving the product. If employees receive unsatisfactory product they are empowered to reject the product. Empowered employees can improve processes to minimize rejects.

Improvement Teams
A TQM company will have a steering committee made from top management. The committee create projects, form project teams and monitor the teams improvement efforts. The projects will have significant and long term benefits to the company. Improvement doesnt happen by itself or from one person ideas. Every person contributes a unique and valuable point of view to the team. Train team members in the process improvement tools. There are two types of teams: 1) Functional teams are from one area or department. They focus on issues that are internal to that area only. 2) Cross functional teams are created from members from multiple departments or areas. Empower members of cross functional teams make changes. They focus on processes, systems and problem projects. I discuss more about teams here.

Long Term Thinking

TQM is a long term process. It can take up to 5 years to fully convert a company to TQM methodology. A company needs to have a 5 year vision to implement TQM. Every year the mission statement is reviewed and revised to strengthen the 5 year vision. Revision of the mission occurs because customer needs changes from year to year. However the overarching TQM vision remains the same.

Management and Monitoring

TQM requires monitoring and management is responsible. Management monitors the improvement activities, the status of TQM and the processes. When things go awry, management accepts the blame. Management does not blame individuals. They realize that their systems caused the issues. They understand that the systems can be fixed to correct the issues. Management evaluates the effectiveness and efficiency of the TQM efforts. They measure the momentum of the cultural change. All management ensures are employees are trained and involved in TQM activities.

Continual Improvement
See here for Continual Improvement discussion.

Frequent Auditing
Auditing ensures that all employees are following documented processes. Auditing is used to improve the processes. Auditing is not used to denounce employees. See here for more on auditing.

Employee Empowerment
In the TQM methodology, employee empowerment becomes one of the most difficult hurdles. The difficultly comes from not providing effective training. In order to empower employees, they need thorough knowledge to make quick and sound decisions. An empowered employee greatly benefits the company. You train and retrain your employees in product knowledge, TQM tools and your companys systems. An empowered employee always feels part of the team. They realize their contributions affects customer satisfaction.

Measuring and Controlling

Most of the TQM tools focus on measuring and controlling processes. Correct application of these tools greatly benefit your

company. Controlled processes assures your customers receive the same outstanding product or service every time! To improve you must be able to measure the improvement. Selecting the correct measurement tools is essential to TQM. A TQM company trains all employees in the TQM tools. With this knowledge empowered employees select the correct measuring tool. By applying the tools, you achieve customer satisfaction.

Read more: http://www.quality-assurance-solutions.com/TQMMethodology.html#ixzz0kzJKDd4B

HOW TQM CAN BENEFIT YOUR BUSINESS

There are many advantages of Total Quality Management
(TQM). Essentially, Total Quality Management refers to the total quality in fulfilling the needs of the customers, the quality of the products, and the quality of life (both in the workplace and also at home). Having these focuses can benefit your business in several different ways. Here are some of the benefits to Total Quality Management:

1) Higher Quality Products: By stressing the importance of quality products, your company will be able to focus more on creating the highest level of quality possible. Total Quality Management is a great benefit this way, because it helps you to constantly be aware of the quality level that is being produced by your products. In addition, the quality assurance product testing is one of the key parts of Total Quality Management, and it can help to determine if the product will fit the needs of the consumers. This quality assurance testing process usually begins by taking a random sample off of the production line. Any failures in the product are pinpointed and set apart, so that they can be corrected. In addition, the reasons for failures are also isolated and discussed, and you can also use statistical methods and distributions to help better understand different measurements and situations. By examining statistics and specific failures, you will be able to look at how to redesign the product and be able to include less-expensive fixes at a later time. This is a great benefit

to your business, because it not only continually improves the product you are making, but it also keeps you constantly aware of the quality level that your company is producing! Furthermore, it also allows for the evaluation of the materials and designs of your products, which continually lead to the most economical option for you, and the highest quality option for your customers!

2) Better Reviews from Customers: Another benefit to Total Quality Management is that customers and clients become better satisfied with the results of your work. Often the customers that you will be most interested in pinpointing are the term end customers, or the people who will finally end up with your product at the end of the customer line. Because of the quality assurance testing, the products that are produced by your company will constantly be meeting the requirements and needs of you clients and customers. This customer satisfaction and high performance results can also possibly lead you to get high reviews in different publications and newspapers, which will further increase your business! 3) Better production from your employees: Through Total Quality Management, there is often more attention placed on meeting the needs of the employees within the company. This can cause employees to work harder to help achieve the goals of Total Quality Management and can boost morale within the workplace. Total Quality Management is found to be closely linked to the workplace and company environment. Often, to help add a further incentive to employees to upgrade their production, higher salary or wages are sometimes given to boost production level further. You might want to consider giving your employees such a raise after training them about Total Quality Management and their responsibilities regarding this new style of management. This pay raise seems more than fair, because employees now will have an added understanding of Total Quality Management and can add this to their other skills. If your company can afford to give some kind of a raise, it is strongly recommended! Then your Total Quality Management will be able

to work as effectively as possible. Everyone will end up being happy, from your term end customers and clients, to the employees who are right in the middle of the actual production process!

HOW DOES TQM HELP MY BUSINESS?

With all the different process improvement strategies out there, it is easy to get confused about which ones you should use to reduce wastes. One of the process improvement strategies out there is Total Quality Management or TQM. TQM helps to eliminate waste and improve the production process through various standards. Here are some examples as to how TQM can help to improve your business: Example # 1 - Quality of products One of the main reasons to implement TQM is to improve your product quality. This means you need to find better suppliers for your raw materials and you need to work with your employees to improve the manufacturing process to identify and remove product defects. Your wholesalers have a large impact upon your company. When their prices go up, it eats into your profit margin. If you do not keep inventory, the wholesaler has an expanded role because they are now in charge of maintaining a set number of raw materials that your company needs. Take a look at your wholesalers and find some that can sell you products in bulk. Typically the more you buy, the lower your cost will be. However there is a downside to buying in bulk, if you don't have plans to use it immediately, it will become a waste to the company because it will be stored as inventory. Be careful about buying in bulk too because there are times when the vendors may try to sell you cheaper or damaged products. Example # 2 - Employee Involvement The second way TQM improves your business is to involve your

employees. When the employees are given increased roles and responsibilities it boosts their morale. TQM not only tries to find ways to fix the problems within the company, it tries to find ways to get everyone involved. As you are evaluating product designs, ask for your employees input. Since they deal with the products on a daily basis, they may have suggestions as to how you can re-work the system to become more costeffective for everyone within the company. This helps them to feel more involved in the company it and promotes loyalty. Employee loyalty is a great way to reduce waste because you do not need to spend additional money on training. You also don't need to worry about slow production times while you are trying to find the new employee. Employees that are loyal to their employers are also more willing to work harder and apt to be honest with the company. Example # 3 - Financial Gain Another reason for implementing TQM is for the financial gain your company will receive. TQM helps to improve the products, leading to higher customer satisfaction levels, which increases your revenue stream. TQM also helps you control your finances by organizing them. This will help you avoid double-paying vendors and it can help you properly manage your cash flow. Knowing your financial situation can help your company manage your raw material orders. If you do carry any inventory, you must know your financial situation because inventory ties up money that is used for your cash-flow. Inventory is considered a wasteful practice because you are paying for raw goods without a guarantee that they will sell. There are additional ways you can implement TQM into your manufacturing company to cut costs and save money. Use some additional process improvement strategies to help your company improve customer satisfaction and increase employee retention. Use your customers as one of your Key performance indicators (KPI) when you are

trying to calculate their satisfaction rate. Using a small section of your customer surveys can provide you with insight to your customers needs and help you find ways to meet their expectations.

Points for better tqm

Point 1: Create constancy of purpose toward improvement of the product and service so as to become competitive, stay in business and provide jobs.

Point 2: Adopt the new philosophy. We are in a new economic age. We no longer need live with commonly accepted levels of delay, mistake, defective material and defective workmanship. Point 3: Cease dependence on mass inspection; require, instead, statistical evidence that quality is built in. Point 4: Improve the quality of incoming materials. End the practice of awarding business on the basis of a price alone. Instead, depend on meaningful measures of quality, along with price. Point 5: Find the problems; constantly improve the system of production and service. There should be continual reduction of waste and continual improvement of quality in every activity so as to yield a continual rise in productivity and a decrease in costs.

Implementing Kaizen: 7 Conditions

Point 6: Institute modern methods of training and education for all. Modern methods of on-the-job training use control charts to determine whether a worker has been properly trained and is able to perform the job correctly. Statistical methods must be used to discover when training is complete. Point 7: Institute modern methods of supervision. The emphasis of production supervisors must be to help people to do a better job. Improvement of quality will automatically improve productivity. Management must prepare to take immediate action on response from supervisors concerning problems such as inherited defects, lack of maintenance of machines, poor tools or fuzzy operational definitions. Point 8: Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication and other mechanisms that will enable everybody to be part of change, and to belong to it. Fear can often be found at all levels in an organization: fear of change, fear of the fact that it may be necessary to learn a better way of working and fear that their positions might be usurped frequently affect middle and higher management, whilst on the shop-floor, workers can also fear the effects of change on their jobs. Point 9: Break down barriers between departments and staff areas. People in different areas such as research, design, sales, administration and production must work in teams to tackle problems that may be encountered with products or service. Point 10: Eliminate the use of slogans, posters and exhortations for the workforce, demanding zero defects and new levels of productivity without providing methods. Such exhortations only create adversarial relationships. Point 11: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management. Substitute aids and helpful leadership. Point 12: Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, abolition of the annual merit rating (appraisal of performance) and of management by objectives. Point 13: Institute a vigorous program of education, and encourage self-improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education.

Point 14: Top management's permanent commitment to ever-improving quality and productivity must be clearly defined and a management structure created that will continuously take action to follow the preceding 13 points

Eight elements are key in ensuring the success of TQM in an organization. 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. To be successful implementing TQM, an organization must concentrate on the eight key elements: 1. 2. 3. 4. 5. 6. 7. 8. Ethics Integrity Trust Training Teamwork Leadership Recognition Communication

This paper is meant to describe the eight elements comprising TQM. Key Elements TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are: I. Foundation - It includes: Ethics, Integrity and Trust. II. Building Bricks - It includes: Training, Teamwork and Leadership. III. Binding Mortar - It includes: Communication. IV. Roof - It includes: Recognition. I. Foundation TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept. 1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. 2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity. 3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual

risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. II. Bricks Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes: 4. Training - Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. 5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt:

A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for period of three to twelve months. B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months. C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week.
6. Leadership - It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down through out the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals. III. Binding Mortar 7. Communication - It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended. There are different ways of communication such as: A. Downward communication - This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM. B. Upward communication - By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empowering communication, where supervisors keep open ears and listen to others. C. Sideways communication - This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner. IV. Roof 8. Recognition - Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor. As

people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as,

Ways - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc. Places - Good performers can be recognized in front of departments, on performance boards and also in front of top management. Time - Recognition can given at any time like in staff meeting, annual award banquets, etc. Conclusion We can conclude that these eight elements are key in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the work place. Without these elements, the business entities cannot be successful TQM implementers. It is very clear from the above discussion that TQM without involving integrity, ethics and trust would be a great remiss, in fact it would be incomplete. Training is the key by which the organization creates a TQM environment. Leadership and teamwork go hand in hand. Lack of communication between departments, supervisors and employees create a burden on the whole TQM process. Last but not the least, recognition should be given to people who contributed to the overall completed task. Hence, lead by example, train employees to provide a quality product, create an environment where there is no fear to share knowledge, and give credit where credit is due is the motto of a successful TQM organization. About The Author Nayantara Padhi is an HR Executive in an Indian Steel Industry, and is pursuing a Ph.D. on "The Human Dimension Of TQM". Mr. Padhi has published numerous articles in different national and international journals, and has completed a P.G. in Industrial Relations And Personnel Management.

Basic concepts of TQM:

Top management commitment: top management should participate and completely involve in the total quality programmed. They should ensure their complete commitment to the approach through management meetings, company magazine or newsletter. Also top management should make that everybody within the organization from top to bottom is communication about the TQM programmed. Focus on the customer: Achieving customer satisfaction is the heart of TQM. Customer includes both internal and external customers. So focus on the customer is the key for any TQM programmed. Effective involvement and utilization of the entire work force: This concept is sometime referred as principle of employees involvement or respect for people. TQM is a team work. Total quality recognizes that each persons is responsible for the quality of his work and for the work of the group. All persons must be trained in TQM, Statistical Process Control and other appropriate quality improvement skills so that they can effectively participate on quality teams. Treating suppliers as influence the companys quality, therefore a partnering relationship should be developed between the management and the suppliers. TQM is based on the quest for progress and improvement. TQM is based on the quest for progress and improvement. TQM believes that there is always a better way of doing things, way to make better use of the company total quality resources, a way to be more productive.

ur parent firm was established in Bombay in 1865 as a trading company, dealing in agricultural commodities. This family business has in the last 135 years grown into a large group of companies headed by Allanasons Limited which was incorporated in 1973 to consolidate and centralise the export activities of the Allana Group. Today Allanasons Limited is the second largest net foreign exchange earner in the private sector of India. e have pioneered the export of many food items from India, such as onions, potatoes, fruits , vegetables, eggs, whole fish, and processed meat. It is with a sense of pride and achievement we claim that our efforts and value of exports have been consistently recognised by the Government of India, Ministry of Commerce, by granting us the highest status given for exporting organisations, which presently is Super Star Trading House. We are a Super Star Trading House with Golden Status - the highest achievable status. e are the largest producers and exporters of processed foods and agro-commodities from India. Our group companies own and operate Asia's most modern, integrated meat processing complexes, setup according to highest international standards and specifications, incorporating the latest technology and automation in all stages of production . We offer a wide range of quality products - from genuinely halal frozen meat, canned meat, lamb carcasses, mutton cubes, frozen marine products, coffee, tea, spices, frozen fruit and vegetable products, sterilised meat and bone meal, to leather. hile the accent is still on agro-based products, over the years we have diversified into other manufacturing activities, including vanaspati (hydrogenated vegetable oils), foundry chemicals, ceramics, and paints. n the following pages you will find details of our products and our achievements in the export sector of India. Top