1. Unit-1 4.9.2012 Introduction to Quality management Presented by N.Vigneshwari

2. Today’s topic Introduction to TQM

3. DEFINITION FOR QUALITY TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach.

4. TQM Total – Made up of the whole Quality – Degree of excellence a product or service provides. Management – Act, art, or manner of handling, controlling, directing etc.

5. Basic concepts of TQM  Top management commitment  Focus on the customer  Effective involvement and utilization of the entire work force  Continuous improvement  Treating suppliers as partners  Establishing performance measures for the processes

6. Top management commitment Management must participate in the quality program. A quality council must be established to develop a clear vision, set long-term goals, and direct the program. Quality goals are included in then business plan. An annual quality program is involves input from the entire work force. Managers participate on quality improvement teams and also act as coaches to other teams. TQM must be communicated to all people.

7. Top management commitment Top Management sets the goal and the vision

8. Focus on the customer The key to an effective TQM program is its focus on the customer. An excellent place to start is by satisfying internal customers. We must listen to the “voice of the customer” and emphasize design quality and defect prevention. Do it right for the first time and every time, for customer satisfaction is the most important consideration.

9. Focus on the customer Focus on both Internal and External customers

10. Effective involvement and utilization of the entire work force TQM is an organization-wide challenge that is everyone’s responsibility. All personnel must be trained in TQM. People must come to work not only to do their jobs, but also to think about how to improve their jobs. People must be empowered at the lowest possible level to perform processes in an optimum manner.

11. Continuous 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’s total quality resources, a way to be more productive. For this purpose various quality tools and techniques may be used.

12. Treating suppliers as partners Since the suppliers influence the company’s quality, therefore a partnership relationship should be developed between the management and the suppliers.

13. Treating suppliers as partners

14. Establishing performance measures for the processes As we know, quantitative data are necessary to measure the continuous quality improvement activity. Therefore performance measures such as productivity, sales turnover, absenteeism, customer satisfaction, etc., should be determined for each functional area. These results can be used for further improvement activities.

15. History and Evolution of TQM Stage 1: Artisans Stage 2: Mass production system Stage 3: Inspection Stage 4: Quality Control Stage 5: Statistical Quality Control Stage 6: Statistical process control Stage 7: Total quality management

16. Artisans During the initial period quality control, as we understand it today, did not exist. Most manufacturing work was performed by artisans and skilled craftsmen or by journeymen and apprentices who were supervised by masters at the trade. They used to produce goods and inspect the quality of their goods as well as that of their apprentices for supplying them to the customer. The artisan directly dealt the customer’s complaint / dissatisfaction with the product.

17. Artisans

18. Mass production system The up surging of mass production amplified the need for the use of interchangeable parts. In 1798 Ell Whitney started designing and manufacturing muskets with interchangeable parts. Earlier to that, firearms were created individually. If part of the musket broke, a new product was scrupulously put in order for that particular firearm or else that piece was discarded. In a mass production setting, tasks essential to create a finished product were divided among many individuals and each individual was performing a specific task.

19. Mass production system

20. Inspection Inspection refers to those activities designed to uncover or find non-conformances existing in already completed products / services. The need for formal inspection arose only with the rise of mass production and the need for interchangeable parts. As volumes increased, parts could no longer be fitted to one another by hand. The process required a large pool of skilled labor and was both, costly and time- consuming. This pressure gave rise to what has been called the American system of manufacturing, which means “the use of special-purpose machinery to produce interchangeable parts by following a pre- established sequence of operations”

21. Inspection

22. Quality control Quality Control (QC) refers to the use of specifications and inspection of completed parts, subassemblies, and products to design, produce, review, sustain, and improve the quality of a product or service.

23. Statistical quality control Statistics were added to map the results of inspection of parts. In the 1920s, statistical charts to check and control product variables were developed by Walter A. Shewhart of Bell Telephone Laboratories.

24. Statistical process control Prevention of defects by applying statistical methods to control the process is known as statistical process control (SPC). Here prevention refers to those activities designed to prevent defects, defectives and non-conformance in products / services.

25. Total quality management Methods of quality management were developed and utilized to encourage the design, production, marketing, sales and service of quality products / services. This integrated approach involves all departments in a company in a management approach that places emphasis on system improvement as a means of achieving customer satisfaction to ensure long-term success of a company

26. Elements of TQM Ethics Integrity Trust Communication Teamwork Leadership Training

27. 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.

28. Ethics

29. 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.

30. 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.

31. Communication Communication is a core element of success. It is necessary to ensure that all levels of communication are kept open and that includes the customers

32. Teamwork Teamwork means implying to the employees that by working together as a single unit, and making good use of everyone’s talents in one pool can lead to many different benefits in the business

33. Leadership Leadership must be effective, positive and constructive

34. Training Training must be offered to employees in order to ensure that the individuals can provide the best customer service possible on products and services offered by the business.

35. Principles of TQM Satisfy the customer Users Company philosophy Internal customers Chain of customers Satisfy the supplier External suppliers Internal suppliers Get better work Empower workers

36. Satisfy the customer Users Company philosophy Internal customers Chain of customers

37. Users If the user of the product is different than the purchaser, then both the user and customer must be satisfied, although the person who pays gets priority

38. Company philosophy A company that seeks to satisfy the customer by providing them value for what they buy and the quality they expect will get more repeat business, referral business, and reduced complaints and service expenses

39. Internal customers Within a company, a worker provides a product or service to his or her supervisors. If the person has any influence on the wages the worker receives, that person can be thought of as an internal customer. A worker should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or promotion

40. Chain of customers Often in a company, there is a chain of customers, each improving a product and passing it along until it is finally sold to the external customer. Each worker must not only seek to satisfy the immediate internal customer, but he or she must look up the chain to try to satisfy the ultimate customer

41. Satisfy the supplier External suppliers Internal suppliers Get better work Empower workers

42. External suppliers A company must look to satisfy their external suppliers by providing them with clear instructions and requirements, and then paying them fairly and on time It is only in the company’s best interest that its suppliers provide it with quality goods or services, if the company hopes to provide quality goods or services to its external customers.

43. Internal suppliers A supervisor must try to keep his or her workers happy and productive, by providing good task instructions, the tools they need to do their job and good working conditions. The supervisor must also reward the workers with praise and good pay

44. Get better work The reason to do this is to get more productivity out of the workers, as well as to keep the good workers. An effective supervisor with a good team or workers will certainly satisfy his or her internal customers

45. Empower workers One area of satisfying the internal supplier is by empowering the workers. This means to allow them to make decisions on things that they can control. This not only takes the burden off the supervisor, but it also motivates these internal suppliers to do better work

46. References Total quality management – Dale H.Besterfield Carol Besterfield-Michna Glen H.Besterfield Mary Besterfield-Sacre

47. Thank you