Total Quality Management

By Group 3
ALOK DUBEY
VIVEK CHAND
DEEPIKA
ASHWINI JAISWAL
SUMIT SHARMA
 Total Quality Management

Total Quality Management (TQM) is a

philosophy which involves company
practices that aim to harness the human
and material resources of an organization in
the most effective way to achieve the
objectives of the organization
 What is TQM?
Concern for
Constant drive Management employee
for continuous by Fact involvement and
improvement development
and learning.
Organisation
Passion to deliver responsibility
Result Focus customer value /
excellence
Partnership
Actions not just
perspective
words
Process (internal /
(implementation)
external)
Management
 Five Pillars Of TQM

 Product
 Processes
 Organization
 Leadership
 Commitment
 Evolution of Quality Management

Inspection Salvage, sorting, grading, blending, corrective

actions, identify sources of non-conformance
Develop quality manual, process performance
Quality data, self-inspection, product testing, basic
Control quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
Quality
planning, comprehensive quality manuals, use of
Assurance quality costs, involvement of non-production
operations,failure mode and effects analysis

TQM Policy deployment, involve supplier & customers,

involve all operations, process management,
performance measurement, teamwork, employee
involvement.
 Typical process of TQM
 Policy and strategy of  Improvement of the
the organization organization
 Mission  Working environment
 Leadership and
commitment
 Measurement of performance
 Divisional objectives  Improvement objectives
 Management of the  Improvement plans
organization  Monitor and review
 Organization structure
 Management system
 Information system
 Communication
Presentation Outline
 Fundamental Concepts
 Implementing Total Quality Management
 Quality improvement
 Managing for quality improvement
 Tools for quality improvement
 Quality Gurus
 Cost of Quality
 Barriers
 Employee Empowerment
 Six Sigma
 Relevance to SJVN Ltd.
Fundamental Concepts
Commitment to TQM
 Commitment to TQM by the highest level of management.
 Promotion of this concept to all levels and activities of the organization
 Individual involvement
 Devotion to continuous improvement

Customer satisfaction
 Internal customers
 External customers
 Customer needs
 Customer expectations
Fundamental Concepts
Quality Losses
 Ineffective and inefficient utilization of human, financial and material
resources in processes
 Loss of customer satisfaction
 Loss of opportunity to add more value
 Loss due to waste or misuse of resources

Participation by all
 Strengths and abilities of individuals
 Effective utilization of strengths and abilities
 Communication and teamwork
Fundamental Concepts

Process Measurements
Continuous improvement
Problem Identification
Alignment of corporate objectives
and individual attitudes
Personal Accountability
Personal Development
Implementing Total Quality
Management
 Appropriate systems, improvement
tools and techniques
 Application and coordination of the
above
 Overcome resistance to change
Implementing TQM
Organizational structure
 Incremental improvement of processes
 Review of the appropriateness of the organizational
structure
Process Management Concept
 Process owner and process customer
 Responsibilities of management and process owners
Implementing TQM
Measurement of Performance
 Monitoring the performance of all key functions
and processes
 Key attributes: cost, time, flexibility, and quality
 Indicators of process efficiency
 Measures of customer satisfaction
Improvement planning techniques
Training
Quality improvement
 Situations requiring improvement
 High quality costs
 Customer complaints
 Health and safety considerations
 Problem solving techniques
 Identify opportunities for improvement
 Apply to all areas of the business
 Review priorities of improvement before
action
Quality improvement
A methodology for quality improvement
 Involve the whole organization
 Initiate quality improvement projects or
activities
 Investigate possible areas for improvement
 Establish cause and effect relationship
 Take improvement action
 Confirm the improvement
 Sustain the gains
Quality improvement
Problem solving process
 Identify subjects for improvement
 Prioritize
 Analyze causes of problem
 Collect data for analysis
 Assess alternative solutions for actions
 Select the optimum solution for action
Managing for quality improvement

Organizing for quality improvement

 Responsibilities for Quality improvement
 Within the organizational hierarchy
 Within the processes that flow across organizational
boundaries

Planning for quality improvement

Measuring quality improvement

Measure of quality losses
 Associated with customer satisfaction
 Associated with process efficiency
 Sustained by society
Managing for quality improvement
Measuring quality improvement
 Statistical interpretation of trends
 Establish and meet numerical targets
 Measure and track trends
 Report and review measures
 Measure the cost of measurement
Tools for quality improvement
(Non numerical data)

 Data collection form

 Affinity diagram
 Benchmarking
 Brainstorming
 Cause and effect diagram
 Flowchart
 Tree diagram
 Control charts
Tools for quality improvement
(Numerical data)

 Histogram
 Pareto diagram
 Scatter diagram
The Continuous Improvement Process

Empowerment/
Shared Leadership

Measurement
Customer
Satisfaction
Measurement

Business
Results Process
Team Improvement/
Management
Problem
Solving

...
Measurement
Quality Gurus
 Philip Crosby
 William Deming
 Joseph Juran
 Kauro Ishikawa
Quality Gurus
Philip Crosby
The four absolutes of Quality Management

1. Quality equals conformance to requirement

2. Prevention causes quality
3. Zero defects
4. The measurement of Quality is the price of
non conformance
Quality Gurus
Crosby’s 14 steps for quality improvement
1. Management 7. Zero defects
Commitment Planning
2. Quality 8. Employee education
Improvement Team 9. Zero defects day
3. Measurement 10. Goal Setting
4. Cost of Quality 11. Error cause removal
12. Recognition
5. Quality Awareness
13. Quality Councils
6. Corrective Action
14. Do it all over again
Quality Gurus
William Deming
Quality Gurus
William Deming’s 14 points
1. Constancy of purpose 7. Institute leadership
2. The new philosophy 8. Drive out fear
3. Cease dependence 9. Breakdown barriers
upon inspection 10. Eliminate exhortation
4. End “Lower tender” 11. Eliminate targets
contracts 12. Permit pride of
5. Improve every workmanship
process 13. Encourage education
6. Institute training on 14. Top management
commitment
the job
 Categ. 1 Categ. 2

Quality Gurus Cause 1

Cause 2
Problem
Kauro Ishikawa
Categ. 3 Categ. 4

 Involvement of all employees in

decision making
 Quality Circles
 Extensive use of statistics and Quality
Control
Quality Gurus
Joseph Juran

 Quality Planning
 Quality Improvement
 Quality Control
Minimizing the Costs of Quality
Costs per Good Unit of Product

Internal and Total

External Failure Quality
Costs Costs

Minimum Costs of Quality

Cost of Appraisal
and Prevention

100% Defect Rate Optimum 100%

Defective Conformance Good
Level
Cost of Quality
The seven sources of waste
 Overproduction
 Defective products
 Waiting lines and delays
 Stocks of intermediaries/semi-finished products
 Transportation
 Ineffective procedures
 Ineffective movements or actions
 BARRIERS

 Lack of management commitment

 Inability to change organizational culture
 Improper planning
 Lack of continuous training and education
 Incompatible organizational structure
 Insufficient resources
 Use of prepackaged program
 Ineffective measurement techniques
 Inadequate attention to customers
 Inappropriate conditions for implementation
 Inadequate use of teamwork
 Employee Empowerment
 TQM stresses team work in solving quality problems , e.g.
quality circle, brainstorming, discussion, quality control tools
 What is a Quality circle – a team of volunteer production
employees and their supervisors (8-10) that volunteer and meet
regularly to solve quality problems.
 Team meets weekly; analyses and solve problems, decisions
made through group consensus.
 Open discussion promoted; criticism not allowed
 Employees viewed as most important organizational resource
and great care is taken in employee hiring and training.
 Employees extensively trained in customer service,
communication, and quality awareness
 Elements for Success

 Management Support
 Mission Statement
 Proper Planning
 Customer and Bottom Line Focus
 Measurement
 Empowerment
 Teamwork/Effective Meetings
 Continuous Process Improvement
 Dedicated Resources
 Six Sigma

 Business improvement approach that seeks to find and

eliminate causes of defects and errors in processes by
focusing on outputs that are critical to customers.
 The term Six Sigma is based on a statistical measure that
equates 3.4 or fewer errors or defects per million
opportunities.
 Motorola pioneered the concept of Six Sigma.
 The late Bill Smith, a reliability engineer is credited with
conceiving the idea of Six Sigma.
 GE (specifically CEO Jack Welch) extensively promoted it.
Contrasts between traditional TQM and Six Sigma
 TQM is based largely on worker empowerment and teams; SS is
owned by business leader champions.

 TQM is process based; SS projects are truly cross-functional.

 TQM training is generally limited to simple improvements tools

and concepts; SS is more rigorous with advanced statistical
methods.

 TQM has little emphasis on financial accountability; SS requires

verifiable return on investment and focus on bottom line.
Total Quality Management (TQM) Programs

 Motorola - Six Sigma

 Xerox - Leadership through Quality

 Intel - Perfect Design Quality

 Hewlett-Packard - Total Quality Control

 Relevance to SJVN Ltd.
• By providing training to all at regular intervals
• Training is an investment .
• Trainees should be make aware of all power gen. measures.
• There should be a provision of educational up gradation.
• At least ,there should be one long term training program for middle and
senior officers
 The training institution should have ISO-9001:2000 certification.
 Abroad training opportunities should be imparted to the meritorious
candidates.
 Formation of Quality Circles
 Encouraging Brainstorming Sessions at each level of the organization.
Summary
 Applied philosophy
 Mission Statement
 Proper Planning
 Management commitment
 Team work
 Achievement of excellence
 Management of change
 Continual improvement
 Opportunities for improvement
 Tools for improvement
 References
 Total Quality Management - Dale H. Besterfieldets al , Pearson
education LPE

 Total Quality Management - R.S.Naagarazan and A.A Arivalagar,

New Age International Publishers

 The Six Sigma Way by Pande, Neuman and Cavanagh

 www.wikipedia.com
Quality is a Journey, not a Destination.