Total Quality Management By: Zaipul Anwar Manager, R & D Dept. Business & Advanced Technology Centre UTM

Total Quality Management (TQM) - A buzzword phrase of the 1980's  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

Total Quality Management (TQM) –Definition a participative management style that stresses total staff commitment to "customer" satisfaction an integrated management system for creating and implementing a continuous process improvement

Why is there a need for TQM? "In order to compete in a global economy, our products, systems and services must be of a higher quality than our competition. Increasing Total Quality is our number one priority here at Hewlett-Packard." John Young, President of Hewlett-Packard

Principles of TQM  Quality can and must be managed and measured  Goals are based on requirements, not negotiated  Satisfaction of owners, customers, employees, suppliers and society  Involvement of people  people are the most valuable asset  great accomplishments are possible by helping people achieve their potential  this should be the main job of management  Continuous improvement based on objective data  statistical analysis is an essential tool  Management must be involved and lead  Plan and organise for quality improvement

Processes must be Managed and Improved This involves:  Defining the process  Measuring process performance (metrics)  Reviewing process performance  Identifying process shortcomings  Analysing process problems  Making a process change  Measuring the effects of the process change  Communicating both ways between supervisors and workers

Ten Steps to TQM 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

The tools and skills of TQM include; group problem solving, measuring, data gathering and analysis, root cause analysis, brainstorming, continuous process improvement, resolving conflict and building synergy into the company Total Quality Management Process

The Elements of TQM  Focus on quality and prevention of problems  the need to inspect other people's finished work, rather than relying on the worker's own motivation and skill. This inspection requires extra people and resources  if another employee (a supervisor or perhaps a quality officer) finds errors, someone must fix the error, causing extra time and workload, or scrap it with all the accompanying waste  if customers find the errors, this can cause dissatisfaction, loss of customer confidence, and perhaps loss of customers themselves  Cooperate with your suppliers and customers  focus on customer satisfaction  its suppliers must implement TQM as well

The Elements of TQM (cont.)  Continuously improve and eliminate wasteful steps  to meet dynamic customer needs, the organization itself must be dynamic  the organisation has to adjust this position  the elimination of positions or whole classes of work  employees may receive this and actively resist against such moves  Encourage the proper climate, empower employees  employees motivated to improve service to their customers with the climate allowing them to do so  they are willing to innovate and act in an atmosphere of trust and respect

The Elements of TQM (cont.)  Use the problem solving / problem prevention cycle  cross-functional teams, to clarify and refine processes that cross organizational boundaries  design teams, to create or change organization-wide systems  family work groups working to improve their day-to-day operations; and newly formed work groups to improve their interpersonal functioning  Use measurements to back decisions  to spot trends, and correct these trends before problems are caused  as part of problem solving, to find out why the problem occurred, and what can be done to prevent it from happening again  in product design. The use of experiments at this stage of product development can identify key characteristics that can affect and optimize product or service development. These products may be specific services useful to a customer, or manufactured equipment or materials

A Successful TQM Implementation  Education  Identify customers and final outputs  Define value adding activities  Identify opportunities for greatest improvement  Develop quality measures  Assess the quality measure  Implement and validate

The Benefits of Total Quality Management Process reducing your operating costs, increasing customer satisfaction. improving company morale, establishing a process of continuous improvement business process reengineering, gaining a competitive edge, establishing a base for ISO registration and the quality award (e.g. Malcolm Baldridge award).

TQM RELATIONSHIP WITH ISO 9000 QMS QA QC INSPECTION ISO 9001:2000 ISO 9001:1994 TQM