Tqm implementation

Tqm implementation

1. TQM IMPLEMENTATION Reference Book : Total Quality Management – Subburaj Ramasamy

2. CONTENTS

3. INTRODUCTION The top management always leads the implementation of TQM. TQM is based on self control, which should be embedded in each employee, team, division, etc. The framework for TQM implementation should facilitate this and involve every employee. Most organizations establish a quality council or a steering committee for systematic transfer of responsibility for improvement. This committee is assisted by a separate cell established for coordination of implementing TQM with TQM facilitator.

4. INTRODUCTION The most important requirement for TQM to function in any organization is 100 per cent commitment by the top management. There is no way to push TQM if the top management is not convinced, committed or determined to implement it.

5. TQM TOOLS AND TECHNIQUES TYPE Tools & Techniques Methodologies SPC, JIT, Taguchi methods – DOE, QFD, TPM System ISO 9000 Human Resources Total Employee Involvement (TPE), Proactive management and quality circles Motivation Quality improvement awards such as Malcolm Baldridge, Deming Award, European Quality Award, Rajiv Gandhi National Quality Award, etc. Table 4.1 TQM Tools and Techniques

6. TQM TOOLS AND TECHNIQUES AREAS OF TQM Gurus Statistical Gauss, Pareto, Shewhart, Fisher Management Juran, Crossby, Feigenbaum Execution Deming, Taguchi Table 4.2 Contributions of Gurus for TQM

7. PDSA TQM IMPLEMENTATION Shewhart developed a Plan, Do, Check, Act (PDCA) cycle for improvement process. Deming modified it as PDSA. There are four phases – Plan, Do, Study and Act shown in Fig. 4.1as follows: Fig. 4.1 PDSA CYCLE

8. PDSA TQM IMPLEMENTATION PLAN Establish objectives Establish a plan that will facilitate achieving goal Establish a measurement system DO Plan for implementation Implement the plan on pilot basis STUDY Compare the results with the objectives Identify gaps Analyze the causes for gaps and exeptional results, if any ACT Standardize the procedure that met or exceeded the goal If there were gaps, improve the plan and carry out PDSA again.

9. BEGINNING PHASE OF TQM The organization has decided to implement TQM after analyzing the pros and cons. The CEO is prepared to commit his time and resources, and therefore there should not be any reconsideration whether TQM or not at this stage.   The prerequisite for the planning phase is that the organization has set its goal to achieve TQM for long-term success.  

10. BEGINNING PHASE OF TQM   1. Announcement The CEO will be able to convince the workers and junior employees about practicing TQM quite easily, but he may have problems in convincing the first line managers and senior managers.   The CEO has to convey and convince all the employees about the importance of practicing TQM. He can announce the decision in a meeting where all employees are present.   The CEO should also: bring out the advantages of TQM highlight the hard work the organization put in to practice TQM be honest explain what the organization and staff stand to gain highlight that adopting TQM means “not working harder, but working smarter”   Employees will be more satisfied, customers will be equally as happy and the organization is bound to grow and prosper.  

11. BEGINNING PHASE OF TQM 2. Select Consultant Consultants have the advantage of being independent, putting forth new ideas to change organizational culture. His ideas could easily find acceptance amongst the employees. The CEO should select him personally because of the important role he is going to play.   The consultant will not do all the jobs himself, but will only put forth the ideas to the employees. He knows what will and what will not work, and he will advise the employees and management about what should and should not be done.   3. Corporate Strategic Planning Planning the strategy as to how the organization is going to get into TQM, with the help of the senior management and consultant.   The three important activities in strategic planning are formulating vision, mission and objectives for the organization by the CEO.  

12. BEGINNING PHASE OF TQM 3.1. Vision Statement It is the vision of the CEO about where the organization should be in the long run. It states what the organization should be capable of in the future. It is an achievable dream of the top management, and is the long-term goal of the organization.      

13. BEGINNING PHASE OF TQM The vision statement should also: Be concise Be inspiring Be challenging Appeal to all the stakeholders (the employees, customers, suppliers, shareholders, and the society) Examples of Vision Statements   Oxfam “A just world without poverty” Kenny Rogers’ Roasters “To be the preferred choice for delicious and healthy chicken meals.”   Palafox Associates “We envision a social and environmental renaissance through our innovative, sustainable, and exemplary practice of architecture, planning, engineering and design.”    

14. BEGINNING PHASE OF TQM 3.2. Mission Statement It describes the purpose for which the organization is in business and provides the strategies to achieve this purpose. It should communicate the guiding principles and values held common by the organization.   The mission statement should also: Be concise Clearly convey the expectation of the top management about the quality of product/service, and from employees Be a tool for decision making in the organization   Examples of Mission Statements   Starbucks “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”  

15. BEGINNING PHASE OF TQM   McDonald’s “McDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience.”   Google “Google’s mission is to organize the world’s information and make it universally accessible and useful.”  

16. BEGINNING PHASE OF TQM 3.3. Quality Policy It should clearly convey the views of the management on dealing with customers and achieving customer satisfaction. It is aimed at improving the customers’ perceptions about the organization and thereby improving the organization’s image.   The quality policy should also be: Like a guide for each section of the organization in developing their own quality objectives Ambitious Clear and unambiguous

17. BEGINNING PHASE OF TQM   There should be a link between the vision, mission and policy. They should not contradict each other, rather they should aid each other. The CEO should formulate these statements and circulate to the employees under his signature.   As soon as these are finalized, it is unlikely that all employees will understand the statements, even if it is signed by the CEO and they are advised to read it. The management should try to coach the employees on the need for understanding and achieving the vision of the CEO.

18. BEGINNING PHASE OF TQM Plan for establishing communications framework As part of the strategic planning, the organization should plan for a corporate-wide framework for communications.   The communications framework starts from the vision, mission and policy statements as finalized by the CEO.

19. BEGINNING PHASE OF TQM

20. BEGINNING PHASE OF TQM Quality Manual Important document for communications within the organization Says what is to be done   Quality Plan Says how it is to be done   Process Documents Based on the quality manual and quality plan May consist of general procedures , which cut across the entire organization, involving one or more processes, and the documents specific to particular process, such as detailed procedures and work instructions  

21. BEGINNING PHASE OF TQM In addition to this, the organization should: Plan for periodic newsletters Communicate through circulars, notes, minutes of meetings, etc. Effectively use information technology Use story programs like Story Teller or PowerPoint Training programs

22. BEGINNING PHASE OF TQM Plan for Quality Council The TQM project should be steered by a Quality Council. Depending on the size of the organization, there can be a one or two-tier quality council. The QC are the corporate structures for the implementation of TQM.   Steering Quality Council Apex quality council Consists of the CEO and the Directors TQM facilitator will act as secretary   Division Quality Council Headed by General Managers TQM facilitator will also be a member   In a smaller organization, there would only be one QC chaired by the CEO, with the managers and TQM facilitator as members. While the Chairman and members of the QC are ex-officio, the TQM facilitator is a full time employee working for the implementation of TQM in the organization.

23. BEGINNING PHASE OF TQM Division 1 QC Division 2 Division 2 QC

24. BEGINNING PHASE OF TQM Selection of TQM Facilitator Independent person Not be made responsible for normal production A coach, not a player His is not a one-time job, but a continuous one Provides continuity to the QC meetings Right at the planning stage of TQM implementation, the management should select the TQM facilitator and assign him clear responsibilities. Should understand the entire operation in the organization Nodal person for all improvement and related matters   The TQM facilitator and corporate quality council should be decided upon before the organization goes on to the next stage.  

25. BEGINNING PHASE OF TQM Role of Quality Council The following are the roles and responsibilities of the QC members: They should have personal commitment to quality and TQM They should constitute the right teams (Process Improvement Teams/Process Action Teams) They should attend QC meetings They should keep track of the steps taken toward improvement on a regular basis They may discuss with the customers and suppliers (adopt MBWA) They should facilitate training of the employees and improvement of team members They should be champions of quality in the organization, and should be willing to sponsor quality related initiatives They should always be on the lookout for related information and provide resources continuously for quality improvement They should walk the talk (i.e. lead by example)

26. BEGINNING PHASE OF TQM Strategic Quality Plan The Strategic business plan involves the proposed market share, goals, business value, profits, diversification to new areas of business, investment thereof, etc. The strategic quality planning is the formulation of strategies to achieve TQM in the organization. Some strategies for TQM implementation are: Training for top management – members of quality council, senior management - executives, employees. Forming improvement teams for specific problems. The consultants can train the quality council members.

27. BEGINNING PHASE OF TQM Employee Involvement Every improvement action has to be carefully considered and approved by the QC. Employees should be encouraged to give suggestions for improvement. Ideas will be discussed in the QC meeting and it will decide whether a suggestion has to be considered or not. The QC, no doubt should create a sense of urgency, but they have to give adequate time for the completion of each job. It is the responsibility of the TQM facilitator and members of the QC to guide & facilitate them, so that they can complete the job confidently. The QC members should give a patient hearing to this suggestions and advise the team members appropriately. The QC plays a nodal role in implementing continuous improvement program.

28. BEGINNING PHASE OF TQM Constitution of PAT The formal structure for TQM consists of the QC, the TQM facilitator and the support staff. Improvement teams are formed for each improvement tasks. Therefore, the management should plan for constituting PATs, empowering them and supporting them. Identify Process The QC should plan to identify process for improvement. Business process benchmarking helps in identification of the potential processes for improvement. The potential processes are those, which yield higher return on investment.

29. APPLY PDSA FOR IMPROVEMENT • We have two types of planning activities. 1. The higher level of planning involves formulating policies, selection of a consultant, selection of TQM facilitator, constitution of QC, formulating plans and procedures for various activities and training of personnel in the organization. This can be called overall planning or corporate-wide strategic planning before entering into TQM. 2. The lower level, planning is encountered when the organization has to decide where to improve, or what steps to improvement have to be taken.

30. APPLY PDSA FOR IMPROVEMENT PDSA cycle Do Phase of TQM – After successful planning, the Do Phase Starts. The first task in the Do phase is the meeting of the QC. Study Phase of TQM – In every meeting of the QC, the results achieved through the implementation of TQM should be studied. Act Phase of TQM – In the Act phase, the plans for implementing TQM should be confirmed

31. APPLY PDSA FOR IMPROVEMENT PDSA cycle Do Phase of TQM – After successful planning, the Do Phase Starts. The first task in the Do phase is the meeting of the QC. Study Phase of TQM – In every meeting of the QC, the results achieved through the implementation of TQM should be studied. Act Phase of TQM – In the Act phase, the plans for implementing TQM should be confirmed

32. SELECT PROCESS FOR IMPROVEMENT As a first step, TQM needs the establishment of a documented system for quality in the organization. This could be the system established for the purpose of meeting the ISO 9000 standards. The goals for improvement actions: • Improving quality • Reducing defects • Increasing productivity • Reducing quality cost • Reducing delivery time The triggers for improvement may come for many sources. Some of the known sources are internal quality auditing, management review, MBWA, employee feedback, customer feedback, supplier feedback, in-process data and field failure data.

33. PDSA for Continuous Improvement Plan – The improvement team has to make a plan addressing the following points, in particular: ~ What is the current situation/level of performance? ~ What are they expected results/level of performance? ~ How do they propose to go ahead to find out the best solution? Do – After the QC has given its seal of approval, the approved action plan has to be implemented in the Do phase on a pilot basis. Study Phase – Once an improvement action is implemented on a trial basis then the Do phase is completed and the study phase starts. In this phase, the improvement team members have to assess the effectiveness of the suggested solutions. Act phase – If the QC is convinced that the process has been improved and expected results are achieved, then the Act phase commences. In this phase procedures are modified and issued.

34. Schedules for Improvement Actions - Schedules are not only important for normal operations, but also for improvement activities. At the planning stage for each improvement action, a detailed report should be formulated by the improvement team indicating the time schedule for finding out solutions, putting into practice, assessment, and confirmation. Communicating Success Stories - Appreciation of the CEO or the QC will definitely motivate the employees to improve. Such motivation may only stay for a while; the permanent motivation can come only through employees coming to know of success stories due to the TQM program in their organization.

35. Implementation Tips for Winning Organizations – According to Tom Peters, the following are the requirements of winning organization: 1. Total Quality Management 2. Reengineering 3. Leveraging knowledge (sharing information rather than hoarding it) 4. Curious cannibalistic corporation (adventurous and bold) 5. Virtual organization 6. Empowerment

36. Table 4.3 Total Quality Management It indicates what TQM is and what is not.

37. Table 4.4 TQM Company versus others The differences between organization practicing TQM and others.