Total Quality Management

Deals in detail about total quality management (TQM) in all aspects of industries to be followed for optimum quality production and human resource management.

1. By: Kasturi Banerjee M. Pharm (Pharmaceutics) 1 st Year KLE College of Pharmacy, Bengaluru. TOTAL QUALITY MANAGEMENT 1

2. Contents TQM in Pharmaceuticals Definition History Categories Principles Elements Managing TQM Advantages 2

3. TOTAL QUALITY MANAGEMENT IN PHARMACEUTICALS The pharmaceutical industry is a vital segment of health care system which is regulated heavily because; any mistake in product design or production can be severe, even fatal. The poor qualities of drug are not only a health hazard but also a waste of money for both the government and the individual customers. So, the maintenance of the quality with continuous improvement is very important for pharmaceutical industries. From this concept, Total Quality Management (TQM) was established . 3

4. The aim of TQM is “prevention of defects rather than detection of defects” . So TQM is very important for pharmaceutical industries to produce the better product and ensure the maximum safety of health care system and also protect waste of money for both government and individual customers. The basis of this approach is that the organizational units should be working harmoniously to satisfy the customer. 4

5. Therefore, total quality management (TQM) means: Satisfying customers first time, every time; Enabling the employees to solve problems and eliminate wastage; A style of working, a culture more than a management technique; Philosophy of continuous improvement, never ending, only achievable by/or through people. 5

6. Definition: TQM has been defined as an integrated organizational effort designed to improve quality at every level. The process to produce a perfect product by a series of measures requiring an organised effort by the entire company to prevent or eliminate errors at every stage in production is called Total Quality Management . 6

7. According to International Organization for Standards (ISO) TQM is defined as, TQM is a management approach for an organization, centred on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction and benefits to all members of the organization and to the society.  It uses strategy, data and effective communications to integrate the quality discipline into the culture and activities of the organization. 7

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10. History of TQM: The need for improved product quality emerged in the 1980s, when it became apparent that the United States was logging behind some industrial countries, most notably Japan, in the area of product quality. Many of the tools and techniques that were used to identify quality problems and take corrective action. The exact origin of the term “total quality management” is uncertain. 10

11. It is almost certainly inspired by Armand V. Feigenbaum’s multi-edition book Total Quality Control and Kaoru Ishikawa’s “What is Total Quality Control? The Japanese Way” . It may have been first coined in the United Kingdom by the Department of Trade and Industry during its 1983 “National Quality Campaign” or, it may have been first coined in the United States by the Naval Air Systems Command to describe its quality-improvement efforts in 1985. 11

12. Categories of TQM Total quality management ensures that every single employee is working towards the improvement of work culture, processes, services, systems and so on to ensure long term success. Total Quality management can be divided into four categories: Plan Do Check Act Also referred to as PDCA cycle. 12

13. Planning Phase Planning is the most crucial phase of total quality management. In this phase employees have to come up with their problems and queries which need to be addressed. They need to come up with the various challenges they face in their day to day operations and also analyze the problem’s root cause. Employees are required to do necessary research and collect relevant data which would help them find solutions to all the problems. 13

14. Doing Phase In the doing phase, employees develop a solution for the problems defined in planning phase. Strategies are devised and implemented to overcome the challenges faced by employees. The effectiveness of solutions and strategies is also measured in this stage. 14

15. Checking Phase Checking phase is the stage where people actually do a comparison analysis of before and after data to confirm the effectiveness of the processes and measure the results. Acting Phase In this phase employees document their results and prepare themselves to address other problems. 15

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17. Principles of TQM:- The principles of the TQM approach are: 1. Focus on the Customer: It is important to identify the organization’s customers. External customers consume the organization’s product or service. Internal customers are employees who receive the output of other employees. 17

18. 2. Employee Involvement: Since quality is considered as the job of all employees, employees should be involved in quality initiatives. Front line employees are likely to have the closest contact with external customers and thus can make the most valuable contribution to quality. Therefore, employees must have the authority to innovate and improve quality . 18

19. 3. Process-centred: A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (either internal or external). 19

20. 4. Integrated System: Every organization has a unique work culture, and it is virtually impossible to achieve excellence in its products and services unless a good quality culture has been fostered. Thus, an integrated system connects business improvement elements in an attempt to continually improve and exceed the expectations of customers, employees and other stakeholders. 20

21. 5. Strategic and Systematic Approach A critical part of the management quality is the strategic and systematic approach to achieving an organization’s vision, mission and goals. This process, called strategic planning or strategic management, includes the formulation of a strategic plan that integrates quality as a core component. 21

22. 6. Continuous Improvement: The quest for quality is a never ending process in which people are continuously working to improve the performance, speed and number of features of the product or service. Continuous improvement means that small, incremental improvement that occurs on a regular basis will eventually add to a vast improvement in quality. 22

23. 7. Fact-based Decision Making: In order to know how well an organization is performing, data on performance measures are necessary. TQM requires that an organization continually collect and analyse data in order to improve decision making accuracy, achieving consensus, and allow prediction based on past history. 23

24. 8. Communications: During times of organizational change, as well as part of day to day operation, effective communications plays a large part in maintaining morale and in motivating employees at all levels. Communications involve strategies, method and timelines. 24

25. The 8 Elements of TQM To be successful implementing TQM, an organization must concentrate on the eight key elements: Ethics Integrity Trust Training Teamwork Leadership Recognition Communication 25

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27. 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: Foundation – It includes: Ethics, Integrity and Trust. Building Bricks – It includes: Training, Teamwork and Leadership . Binding Mortar – It includes: Communication. Roof – It includes: Recognition. 27

28. 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. 28

29. 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. 29

30. 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. 30

31. 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. 31

32. 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. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. 32

33. 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.  33

34. 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 recur. 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. 34

35. 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. 35

36. 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 instil 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. 36

37. 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. 37

38. 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. 38

39. 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. 39

40. 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. 40

41. 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. 41

42. 42 Managing Total Quality

43. Managing Total Quality: The major ingredients in TQM are discussed below:- 1. Strategic Commitment The start point for TQM is a strategic commitment by the management. Firstly , the organizational culture must change to recognise that quality is not just an ideal but is instead an objective goal that must be pursued. 43

44. Secondly, a decision to pursue the goal of quality carries with it some real costs- for expenditures such as new equipment and facilities. Thus, without a commitment from the top management, quality improvement will prove to be just a slogan or gimmick. 44

45. 2. Employee Involvement Employee involvement is another critical ingredient in TQM. Virtually all successful quality enhancement programs involve making the person responsible for doing the job responsible for making sure it is done right. By definition, then employee involvement is critical component in improving quality. 45

46. 3. Materials Another important part of TQM is improving the quality of the materials that organizations use. 4. Technology New forms of technology are also useful in TQM programs. Investing in higher grade machine capable of doing jobs more precisely and reliably often improves quality. 46

47. 5. Methods Improved methods can improve product and service quality. Methods are operating systems used by the organization during the actual transformation process. 47

48. 48 TQM Tools

49. Advantages of TQM: The advantages of implementing TQM are: 1. Improves reputation Faults and problems are spotted and sorted quicker. 2. Higher employee morale Workers are motivated by extra responsibility, team work and involvement in decisions of TQM. 3. Lower cost Decrease waste as fewer defective products and no need for separation. 49

50. To summarise: 50

51. References https://en.wikipedia.org/wiki/Total_quality_management https://managementhelp.org/quality/total-quality-management.htm https://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/ http://aboutthree.com/blog/five-important-factors-in-total-quality-management/ 51

52. Thank You 52