TQM - Total Quality Managemet

1. INTRODUCTION What is TQM? TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction.

2. DEFINITIONS “ TQM is a corporate business management philosophy which recognizes that customer needs and business goals are inseparable. It is applicable within both industry and commerce.” - British Quality Association “TQM is a management philosophy for continuously improving overall business performance based on leadership, supplier quality management, vision and plan statement, evaluation, process control and improvement, product design, quality system improvement, employee participation, recognition and reward, education and training and customer focus . - Management Philosophy

3. THE THREE QUALITY GURUS W Edwards Deming Philip Crosby Kauro Ishikawa

4. W. EDWARDS DEMING The best known of the “early” pioneers, is credited with popularizing quality control in Japan in early 1950s. Today , he is regarded as a national hero in that country and is the father of the world famous Deming Prize For Quality.

5. DEMING’S 14 POINTS ON QUALITY MANAGEMENT

6. Improve constantly and forever every process for planning, production and service Institute training on the job Create constancy of purpose for improving products and services. Adopt the new philosophy Cease dependence on inspection to achieve quality End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier Adopt and institute leadership Drive out fear Break down barriers between staff areas Eliminate slogans, exhortations and targets for the workforce Eliminate numerical quotas for the workforce and numerical goals for management Remove barriers that rob people of pride of workmanship, & eliminate the annual rating or merit system Institute a vigorous program of education and self-improvement for everyone Put everybody in the company to work accomplishing the transformation 1 2 3 4 5 6 7 8 9 10 11 12 13 14

7. PHILIP CROSBY Quality is defined as conformance to requirements, not “goodness” The system for achieving quality is prevention, not appraisal. The performance standard is zero defects, not “that’s close enough” The measurement of quality is the price of non-conformance, not indexes.

8. PHILIP CROSBY’S APPROACH TO TQM

9. 1. Management commitment 2. Quality improvement team 3. Quality measurement 4. Cost of quality 5. Quality awareness 6. Corrective action 7 . Zero defects planning 8. Supervisor training 9. Quality measurement 10. Cost of quality 11. Quality awareness 12. Corrective action 13. Zero defects planning 14. Supervisor training 15. Zero defects day 16. Goal Setting 17. Error casual removal 18. Recognition 19. Quality Councils 20. Do it over again! PHILIP CROSBY’S APPROACH TO TQM

10. ISHIKAWA’S APPROACH TO TQM Pareto Chart Cause and effect diagram Stratification chart Scatter diagram Check sheet Histogram Control Chart

11. COMMONALITY OF THEMES OF QUALITY GURUS Inspection is never the answer to quality improvement, nor is “policing”. Involvement of leadership and top management is essential to the necessary culture of commitment to quality. A program for quality requires organization-wide efforts and long term commitment, accompanied by the necessary investment in training. Quality is first and schedules are second.

12. ELEMENTS OF TQM

13. BENEFITS OF TQM Greater customer loyalty Market share improvement Higher stock prices Reduced service calls Higher prices Greater productivity

14. PRINCIPLES OF TQM

15. ISO is an international Organization for Standards that was formed by technical committees. They provide user-friendly guidelines for a wide range of organizations.

16. WHAT IS ISO? ISO (International Organization for Standardization) is the world’s largest developer of voluntary International Standards. International Standards give state of the art specifications for products, services and good practice, helping to make industry more efficient and effective. Developed through global consensus, they help to break down barriers to international trade.

17. ISO STANDARDS ISO 9000, 9001, 9002, 9003 & 9004 The ISO 9000 family of standards is related to quality management systems and designed to help organizations ensure that they meet the needs of customers and other stakeholders while meeting statutory and regulatory requirements related to the product. 

18. EVOLUTION OF ISO ISO was established in 1947, in Switzerland, with the purpose of developing intellectual, scientific, technological, and economic corporation between member countries (Bureau of Business Practice). Later in 1979 the ISO Technical Committee was formed to make a set of guidelines that would bring together and standardize world industries. ISO has affiliates in more than 90 countries.

19. How does ISO develop standards ?

20. BENEFITS OF ISO - BUSINESS Cost savings  - International Standards help optimize operations and therefore improve the bottom line Enhanced customer satisfaction  - International Standards help improve quality, enhance customer satisfaction and increase sales Access to new markets  - International Standards help prevent trade barriers and open up global markets Increased market share  - International Standards help increase productivity and competitive advantage Environmental benefits  - International Standards help reduce negative impacts on the environment

21. BENEFITS OF ISO - SOCIETY ISO has over 19 500 standards touching almost all aspects of daily life. When products and services conform to International Standards consumers can have confidence that they are safe, reliable and of good quality. To make sure that the benefits of ISO International Standards are as broad as possible, ISO supports the involvement of consumers in standard development work with its Committee on consumer policy. International Standards on air, water and soil quality, on emissions of gases and radiation and environmental aspects of products contribute to efforts to preserve the environment and the health of citizens.

22. BENEFITS OF ISO - GOVERNMENT ISO standards draw on international expertise and experience and are therefore a vital resource for governments when developing regulations. National governments can make ISO standards a regulatory requirement. This has a number of benefits: Expert opinion  - ISO standards are developed by experts. By integrating an ISO standard into national regulation, governments can benefit from the opinion of experts without having to call on their services directly. Opening up world trade  - ISO standards are international and adopted by many governments. By integrating ISO standards into national regulation, governments help to ensure that requirements for imports and exports are the same the world over, therefore facilitating the movement of goods, services and technologies from country to country.

23. ISO & TQM ISO 9000 standards are concerned with effectively documenting the way you run your business, in order to improve your profit margin . TQM concerns customer satisfaction and worker effectiveness, in order to increase business and cut costs . A business should first follow ISO 9000 standards and then implement TQM practices to improve their profits and customer retention.

24. TATA STEEL Case Study

25. First steel company in world to win the world’s highest award of quality - Deming Application Prize. Tata steel has been practicing TQM since 1980s– Q uality C ircle , ISO certification, Q uality improvements using JURAN methods, etc. TATA won the D eming A pplication P rize - 2008 D eming G rand P rize (DGP) - 2012 ,for achieving distinctive performance improvement through the application of TQM JRD QV Award- 2000, by going through the deming process, Tata Steel discovered the deeper meaning of TQM for achieve the next quantum jump in performance and improvement . 2005 , Tata Steel conducted a TQM diagnosis along with the JUSE team for getting the status of TQM implementation in the organization.

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