Transcript TQM - Total Quality Management

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Index
Contents
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Introduction
Environment
TQM Philosophy
Universal consensus on TQM
Customer focused organisation
Leadership, Vision , Mission
Quality people
Process orientation
Systems approach to management
Continuous improvement
Factual approach to decision making
Mutually beneficial supplier relationship.
Slide No.
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7-13
14-25
26-34
35-51
52-63
64-80
81-86
87-88
89-91
92-93
94-95
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Contents
ISO 9000
 Quality Policy Deployment
 Quality Costs & Profit
 Time
 Quality in Mfg. & Service Org.
 Problem Solving tools
 Benchmarking
 BPR
 Measures of excellence
 International Quality Models
 Self check, FICCI Model of TQM
and TQM action Plan

Slide No.
96-103
104-110
111-133
134-139
140-165
166-182
183-196
197-209
210-217
218-224
225-252
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Environment
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As the threat of war moves increasingly from
the battlefront to the market place - It is the
survival of the fittest .
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Quality without exception
We are in the new era of competition . TQM will be
the norm rather than the exception . We are in a
battle for survival and total quality is going to sort
out the winners from the losers ...... Alex Trotman .
CEO . Ford.
 A competitive world has two possibilities for you .
You can lose . Or , if you want to win , you can
change. Lester C. Thurow....Management writer.
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21 st . century winners
Total quality - focused.
Information technology based.
Vision directed.
Flatter and empowered.
Customer driven.
Flexible and adaptive.
Time based.
Innovative.
Global.
Networked.
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From small “q” to big “Q”
 Quality
management covers all facets of
business and aims to improve the overall
quality of work by every one in the
organization for achieving greater
customer satisfaction and higher returns (
the big “Q”). It is not just confined to
quality control or quality assurance ( the
small “q” ) .
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Sellers Beware
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Satisfaction with status -quo and absence of
continuous improvement
Obsession with short term results including
profits, market share, costs, budgets & schedules.
Indiscriminate cost cutting that lead to sacrificed
quality.
Unempowered , poorly motivated and paid
personnel and disregard for their ideas and
suggestions.
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Sellers Beware
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Hands-off
relationship with suppliers, with
contracts being awarded to the lowest bidder.
Crisis management, Rushing operations , firefighting oriented activities, impractical deadlines .
Emphasis on correction and inspection rather than
preventive and proactive approach .
Unreliable processes and systems .
Centralized and bureaucratic decision making.
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TQM -Philosophy
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TQM Origin
In the 1950’s American industry was enjoying a
boom. Whatever was made could be sold. Few
industrialists heeded the work of this man called
Deming and his ideas about Total Quality . In Japan
, however , things were different . The Japanese
economy was depressed . Goods stamped made in
Japan were known for poor quality and high price.
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Japanese industrialists were very receptive to the
ideas of Deming on TQM and set about
implementing them. By the mid - 1970’s Japan
was beginning to seriously undermine its American
and other western competitors. First in cars , then
in the whole range of goods including videos, Hi-fi
and computers. The rest is a history.
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Why TQM
Global competition , downtrend , bottomline
pressures - Rejoice. All problems come with
change . Change is necessary characteristic of
growth, and no company ever achieved peak
performance without continuous improvementthe philosophy of TQM.
.
Before we proceed further , it would be
interesting to know exactly where is your
organization placed on the corporate
lifecycle .
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Corporate Lifecycle.
Stability
Continuous
improvement
Aristocracy
Recrimination
Bureaucracy
Death
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Growing Organization
Growing Organization : A healthy organiz ational growth is characterized by the culture
of continuous improvement.The organization
during its process of continuous improvement
never loses flexibility or control.
The growing organization consistently meets
its customers’ changing needs and improves.
New organizations sprout up, and they are
decentralized to provide new lifecycle
opportunities. For a growing organization even
the latest quality manual is outdated .
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Declining Organization
Stability : Instead of getting what it wants ,
the organization wants what it gets .
Members welcome new ideas but without
the excitement in the growing stages . The
financial people begin to impose controls
for short - term results. The emphasis on
marketing and R & D wanes.
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Declining Organization
Aristocracy : Not making waves becomes a
way of life. Outward signs of respectability
i.e. office decoration , dress and titles take an
enormous importance . The organization
acquires companies instead of starting them .
Recrimination : The company witch - hunts to
find out who did something wrong rather than
trying to discover what went wrong and how to
correct it. Cost reduction takes precedence
over efforts to increase revenues .
Backstabbing and infighting rule.
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Declining Organization
Bureaucracy : There are systems for
everything . Employees play by book . Time
is forgotten . The numbers are more
important than the quality . The
organization is the world in itself . The
organization survives in an overly regulated
environment .
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TQM : Strongest management tool
Whichever stage of the corporate cycle you are on TQM clearly emerges as one of the strongest
management tools because of its inbuilt philosophy
of continuous improvement by every one. TQM is ...
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Continuously improving customer satisfaction levels
and
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Simultaneously improving profit margins.
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Universal Consensus
on
TQM.
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Quality Gurus
Deming , Juran and Crosby are some of the world
famous quality gurus . All of them have come out with
their own ideas and concepts on quality . Their ideas and
concepts are briefly given on the next slides.
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Deming
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Deming originated PDCA cycle . He came out
with the new “climate” ( organizational culture )
which primarily consists of joy in work,
Innovation and cooperation.
He referred to this new climate as Win - Win as
opposed to I win : You Lose .
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PDCA cycle
The PDCA cycle is
also known as the
Deming cycle
PLAN
D0
ACT
CHECK
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Juran
Planning
 Juran developed the idea of
Quality trilogy : Quality
planning , Quality improvement
and Quality control. He
concentrates not only on the
end customer , but identifies
other external and internal
customers. According to him ,
Quality is “Fitness of use”
Control
Improvement
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Crosby
 Crosby is known for his concepts of
“Do it right first time” and “zero
defects” . He defines quality as
conformance to requirements which
the company itself has established for
its products based directly on
customer
needs.He
emphasizes
prevention management in every area
.
Defects
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Quality Management Principles
 Since
various quality gurus have
propounded their own concepts and
ideas on Quality , there is an
element of confusion in the minds
of people as to which quality
methodology should be adopted in
their organizations.
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Universally acceptable Principles
To resolve this problem International
Organization for Standardization ( ISO ) had
established a working group to remove the
element of confusion and come out with 8
universally acceptable principles of TQM .This
should be kept in mind by the organizations
while formulating their quality objectives
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Quality Management Principles
1. Customer focused Organization
2. Leadership
3. Involvement of people
4. Process orientation
5. System approach to management
6. Continuous Improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationships.
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1. Customer focused Organization

Organizations depend on their customers and
therefore should understand current and future needs ,
meet customer requirements and strive to exceed
customer expectations .This requires :
1. Identification of customers ( Internal & external )
2. Understanding stated and implied needs /
expectations.
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1. Customer focused Organization
3. Establishing measures of satisfaction customer needs/
expectations.
4. Determining how far customer needs are being met at
present.
5. Efficient processing of customer complaints.
6. Establishing customer focus down the line including
distributors.
7. Seeking customer feedback and its analysis for taking
measures to improve customer satisfaction.
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.
Customers
The next generation customers will be
different than the previous generations.
More and more customers will be high
achieving people with technical knowledge
. The resistance to buy something may not
just be the price ,but the risk involved, time
involved and psychic costs .
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Customers - The Quality Chain
The customers and suppliers not only exist outside the
organization , but inside too ( internal customers ). There is a
series of supplier/ customer relationships which serve as
important interfaces in the quality chain. Failure to meet the
requirements in one part of a quality chain will affect the
other and the external customers.
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Transition from traditional to TQM organization.
Traditional
TQM
Customers
Top
Mgt.
Employees
Front-line supervisors
Middle Mgt.
Functional Mgt.
Functional Mgt.
Front-line supervisors
Employees
Middle Mgt.
Top
Mgt.
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Customers : Paradigm
A paradigm is a mindset
Customer
service
Customer
satisfaction
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Paradigm Shift
Exceeding the
expectations of
the customers.
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Customer Delight
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Customers :Best Practices
1. Understand the Markets and Customers
i . Understand the market
environment
ii .Understand customer’s wants and
needs
iii . Segment customers
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2 . Involve customers in the design of products and services
i . Develop new concepts & plans for
products & services
ii . Design , build and evaluate prototypes
iii . Refine and customize products
/services
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3. Market and sell products & services
i . Secure
channels of
distribution.
ii . Establish
pricing.
iv . Develop
& deploy a
sales force.
v. Process
orders.
iii . Develop
advertising
& promotion
strategies.
vi . Develop
Customers.
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4. Involve customers in the delivery of products & services
i. Offer
various
delivery
options.
ii. Use Delivery
customization
to attract .
iii. Develop
distribution
capability.
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5. Provide customer service
i . Establish points of contact
ii . Develop service delivery capability
iii . Train people to improve customer’s expectations
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6. Manage customer information
i . Build customer profiles.
ii . Establish service information.
iii . Measure customer performance & satisfaction.
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Your end product is the best quality statement .
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Customers : New directions
Traditional

PRODUCT

MASS
BROADCAST
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Interactive
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RELATIONSHIP
Media usage

PERSONAL &
ELECTRONIC
CUSTOMER
ACQUISITION
Resource Allocation

CUSTOMER
LOYALTY
UNITS SOLD
Profit Measurement

NUMBER OF
CUSTOMERS
Driving Force
Market place and market space
Today, interaction with customers happen
both in the market place and market
space*.Eventually, the market space
environment will dominate. In the era of
high costs of real estate , it is the market
space
which provides the economical
solution to reach the global customers .
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2. Leadership
Leaders establish unity of purpose and
direction of the organization. They should
create and maintain the internal
environment in which people can become
fully involved in achieving the
organization's objectives.This requires
following steps :
1.
Establish long term vision and
strategy .
2. Enlist others in a common vision by
appealing to their values, interests , hopes
and dreams.
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Leadership
3. Search for challenging opportunities
to change, grow, innovate and
improve.
4. Experiment , take risk and learn from
the mistakes.
5. Foster collaboration by promoting
cooperative goals and building trust
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Leadership
6. Strengthening others by sharing information
and power and increasing their discretion and
visibility.
7. Set an example by behaving in the ways that
is consistent with the stated values.
8. Plan small wins that promote consistent
progress and build commitment.
9. Recognize individual contributions to the
success of every project.
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Vision
The world over, just one
thing
has
fired
the
imagination of people : A
vision of a future
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Corporate Vision

A vision is a vividly descriptive image of
what an organization wants to become or
wants to be known for .

An organizational vision offers a
compelling method for forging employees
into an empowered ,
highly motivated
team.
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Customer driven vision statements...

HDFC : Develop close relationships with
individual households , maintain position as the
premier housing finance institution in the
country , transform ideas into viable and
creative solutions.
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Customer driven Vision statements...
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Colgate Palmolive : To be the company of
first choice in oral and personal hygiene by
continuously caring for consumers and
partners.

Anderson Consulting : To help our clients
change to be more successful.
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Shared Vision
The core function of an organizational vision is to
ignite people into thinking beyond company’s
existing capabilities and present environment .
Only a shared vision can achieve this.
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VISION : Impact .
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Product quality
Organizational Growth.
Market performance.
Sense of belonging.
Shareholders Value.
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Mission
A statement of intent of what
a company wants to achieve
and through which lines of
business over a period of time
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Mission
 Embrace
a single clear quality
philosophy. Without one your
company is like a ship without a
rudder. It will loose its way and self
destruct in the midst of global
opportunities
and problems.The
mission statement is a primary
expression of quality philosophy,
more powerful and enduring than any
body in the organization.
Quality Policies.

Review all systems , policies , and procedures
in the organization and check their harmony
with your quality mission. These include
organizational structures, manufacturing and
purchasing policies , quality control
procedures , HR policies, and incentive
systems. Immediately discard all existing
systems or structures that are not consistent
with the corporate quality philosophy/
mission.
Harmony
FICCI
3. Involvement of people
 People
at all levels are the essence of an
organization and their full involvement enables
their abilities to be used for the organization’s
benefit. This requires :
1. Employees must be treated with dignity and
respect
2. They must be trained to build competence where
required
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Involvement of people
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3. Each employee must know what exactly is required to be
done and where possible must be able to assess the quality
of his work.
4. Fear must be totally removed from the organization and
employees must be encouraged to bring out weakness in
the system.
5. Empower employees to take appropriate action in their
area of work for improvement.
6. In case of a mistake , examine the system rather than the
man to prevent its recurrence.
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Involvement of people
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7. Involve employees in quality plans and draw upon their
intimate knowledge of processes for improvement.
8. Assess employee satisfaction level and take appropriate
measures to improve their morale so that they take pride in
belonging to the company.
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Culture change
FROM
TO

Manage tasks

Manage people

Major breakthroughs

Small continuous improvements

Will this improve
profits

Will it improve customer
satisfaction

Some how do it

Right first time
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Culture change
FROM

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Spend company’s
money
TO
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Spend as if your own money

Expose problems

Just in time techniques

We

Walk quality
Suppress problems
Some how in time
I.
Talk about quality
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It is the attitude that
makes the difference
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The human side of quality
While considerable attention
has been given to the technical
side of quality, there is an
increasing
need of the
importance of the human side
to total quality.
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Employees - Foundation stone to TQM.
The greatest contributions to the process of
TQM are made by the people who make the
organization . People - who share the vision .
Intellectual capital and knowledge are more and
more the true assets of any organization.
Quality of human behavior
 In
its original Japanese context, Total Quality
refers not only to the quality of management
which ultimately produces quality goods and
services , but to the quality of human behavior ,
skills and commitment necessary to accomplish
our business objectives.
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This not only makes good
business sense, it also
reflects a deeper yearning of
the human spirit to be of
service , to build loving,
caring relationships , to
affirm our interdependence ,
and to bring value , beauty ,
and benefit into the world.
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Human side of quality
The human quality should always include the
following three components :

Creativity - The joy of thinking

Physical activity - The joy of working with
sweat on the forehead.

Sociality - The joy of working together
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A Positive
A+ + itude
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Quality begins with me.
There are three kinds of people 
People who make things happen

People who watch things happen and

People who wonder “what happened ?”
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Quality begins with me.

If we are to take Total Quality to heart , we too
must come to look at our own lives in a more
multidimensional , interrelated and holistic
manner. Taking the theme of Total Quality
personally has the potential to tap us into the flow
of life giving forces and ways of living and
working that are ultimately most rewarding and
productive.
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Quality : A winning attitude
Quality Control Circles
Quality control circles is a small group of
employees voluntarily performing quality
control activities within a single work unit.
The aim of QCC’s is to facilitate process
control , mutual and self development of
employees and improvement of their
workplace
and
productivity
by
full
participation of all members.
Quality Control Circles- Objectives

To contribute to the improvement
and
development
of
the
organization.

To respect humanity and to build
worthwhile lives and cheerful work
areas .

To give fullest recognition to human
capabilities and to draw out each
individual’s infinite potential.
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4. Process orientation
A desired result is achieved more efficiently when
related resources and activities are managed as a
process. This requires :
1. Planning of processes to meet customer
requirements.
2. Process capability study and qualification of
process.
3. Establishment of mechanism to keep
process under control.
4. Ownership of process with full responsibility of
quality
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Process orientation
5. Verification of product/ service for conformance
before instruments.
6. Maintenance/ calibration of process equipments and
measuring instruments.
7. Analysis of process data for improvement.
Quality process grid
Right things wrong
Wrong things right
Wrong things wrong
Right things right
How you do it
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Work
Management of processes
1
2
3
4
Customer
Processes are managed vertically , but work flows
horizontally.
We must get information from users of our output to manage
our processes
Have a system of tracking products or order completion
through various processes
Institute interprocess coordinating mechanism for smooth work
flow
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Process vs system optimization
1
2
3
4
5
Throughput
1
2
3
4
5
Improving some processes may not bring any benefits, in
fact it may result in more losses e.g producing components
at higher rate that can not be assembled by the next process
will increase cost.
 Prioritize processes depending on the constraint they offer
to the throughput
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Process vs system optimization
1
2
3
4
5
Throughput
1
2
3
4
5
Concentrate on those processes which offer maximum
constraint.
 Optimize the business system rather than individual
processes.

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5. System approach to management
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Identifying , understanding and managing a system
of interrelated processes for a given objective
improves the organization’s effectiveness and
efficiency.This requires :
1. Clear objectives
2.Organizational structure with well defined authority
and responsibility.
3. Planning for Quality .
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System approach to management
4. Control of functions affecting quality.
5. Coordinating of interrelated processes.
6. Audit mechanism for self regulated
organization.
6. Continuous Improvement
 Continuous
improvement should
be a permanent objective of the
organization. This requires :
1. Measurement of quality
2. Analysis of quality data and
investigations for non
conformities.
3. Seeking opportunities for
improvement rather than reacting
to quality problems.
4. Benchmarking
Continuous Improvement
5. Organization for quality
improvement like quality circles
, quality improvement teams for
taking up specific projects.
6. Review of Q.I.P’s ( Quality
Improvement Projects ) by top
management .
7. Recognition of significant
achievements.
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Improvement is an ever flowing stream
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7. Factual approach to decision making
Effective decisions are based on the analysis of data
and information . This requires :
1. Recording of data on :
 Quantitative production
 Equipment failures
 Process conditions
 Delivery performance
 Customer complaints
 Quality costs
 Supplier performance.
Performance

Period
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7. Factual approach to decision making
Performance
2. Ensuring the data is accurate , reliable and
accessible.
3. Analysis of data to understand the impact on
organizational performance and cost implications and
for deciding corrective actions.
4. Data on results of application of corrective action.
Period
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8. Mutually beneficial supplier relationships.

An organization and its suppliers are interdependent ,
and a mutually beneficial relationship enhances the
ability of both to create value.This requires :
1. Consideration of quality capability while selecting
vendors.
2. Specification of quality on purchase documents.
3. Clear understanding of supplier needs .
8. Mutually beneficial supplier relationships.
4. Mutual trust and share responsibility and
accountability.
5. Clear and open communication.
6. Mutual commitment for continuous
improvement.
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ISO 9000
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Definition - Quality System*

Quality system : Organizational structure,
procedures, processes and resources needed to
implement quality management.
*As provided in ISO 8402 : 1994, quality management and
quality assurance-vocabulary
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Standardization of business activities
4
1
5
2
3
6
Workstations

Have you ever wondered why the performance of
individuals or groups within the same organization
varies so widely.The reason is that the method
followed by them is some what different from each
other - the processes are not standardized.
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Methodology and application of ISO 9000

Identify high achievers

Study their methods of work and document it in
discreet steps

Discuss use of this method by other groups and
develop a consensus.

Define the standard method of processes and make it
mandatory.

Evolve audit mechanism to check compliance.

Continuously improve the processes by corrective and
preventive methods.
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ISO 9000 Quality systems - Benefits

ISO 9000 Quality systems brings various benefits to
their users. The primary purpose of an effective
quality system is to inspire confidence among
customers in contractual situation.It is of immense
value to the organization itself because it enables
them to achieve customer satisfaction cost effectively.

Implementing ISO 9000 can help transform the adhoc method of functioning ,which leads a company
from one crisis to another .By combining high quality
with low cost it can result in tremendous competitive
advantages
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Other benefits of ISO 9000 Quality systems.

Enables to identify and plan tasks and their method of
performance in order to yield right results.

Provides the means for identifying and resolving
problems and preventing their recurrence.

Enables staff to control their own operations.

Provides means for documenting the company’s
experience

Provides data that can be used to determine the
performance
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ISO 9000 and TQM

Many companies make attempt to launch TQM in
their organizations without formal systems like ISO
9000. Any such attempt may not give very positive
results because without the support of ISO 9000, the
TQM can not go very far in any organization .

The relationship between TQM and ISO 9000 is
shown on the next slide.
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ISO 9000 system supports the Quality movement
Quality
ISO
9000
P
D
A
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ISO
9000
Time
P
D
A
C
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Quality Policy Deployment
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Quality Policy Deployment
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Quality policy deployment is
mechanism used for deploying
corporate goals at all levels and
to manage quality strategically.
Quality policy deployment is
translation of Japanese words
“HOSHIN KANRI”. HOSHIN
means “direction” and KANRI
means
“deployment
or
administration
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Quality Policy Deployment

Rank Xerox defines Quality policy as
follows : A key process by which Rank
Xerox can articulate and communicate
the Vision , Mission , Goals and vital
few programmes to all employees. It
provides the answers to the two
questions:

What do we need to do ? and

How are we going to do it.?
CE
FICCI
Quality Policy Deployment

Quality Policy Deployment is the necessary
trigger for processes to perform well and for
goals to be achieved. It is the mechanism by
which the quality effort is cascaded down
throughout the organization.
CE
FICCI
Essential steps in Quality Policy Deployment

1. Issue of Corporate Quality Policy for
the year laying down quantified targets
and milestones for monitoring the
progress.

2. Formulation of sub-policies of
different departments and identification
of critical processes and activities for
achievement of departmental objectives.

3.Interfacing with other departments and
functional groups and agreement on
inputs required from them along with
time schedule
FICCI
CE
Essential steps in Quality Policy Deployment

4. Preparation of departmental plans
for identified activities, with well
defined targets, methods and
allocation of responsibilities down
to the lowest operating level.

5. Implementation of plan after
providing
necessary
resources
including training and requisite
information.
FICCI
CE
Essential steps in Quality Policy Deployment

6. Periodic monitoring of policy
deployment progress by departments
along with co-ordination meetings with
other related departments to sort out
operational problems in achieving
departmental targets

7. Top management reviews at regular
intervals to ascertain the progress of
policy deployment and taking mid
course corrective action for attainment
of organizational goals
CE
FICCI
Quality
Costs
&
Profit
FICCI
Many people think that quality costs
money and adversely effects profits. But
these costs are the costs of doing it wrong
first time .
Quality in the long run results in
increased profitability.
CE
FICCI
CE
Quality , Cost and Profit relationship.
For example if we design the
product right first time , build
it right first time - we save all
the costs of redesign , rework,
scrap,
resetting,
repair,
warranty work etc.
Quality and Profit : Paradigm
COST
QUALITY
PROFIT
* A Paradigm is a mind set .
CE
FICCI
QUALITY & PROFIT - PARADIGM SHIFT.
PROFIT
QUALITY
COST
QUALITY
Higher productivity
1.Higher production due
to improved cycletime and
reduced errors and defects
2.Increased use of
machine and resources.
Increased profitability
due to :
•Larger sales
3.Improved material use
from reduced scrap and
rejects
•Lower production costs
4.Increased use of
personnel resources
•Faster turnover
5.Lower level of asset
investments required to
support operations.
6.Lower service and support
costs for eliminated waste,
rework and non value added
activities.
FICCI

CE
Quality and Profit
If the organization does not offer high
quality product or service , it will soon
go out of business . But just having
high quality will not be enough ,
because your competitors will also
have the high quality. To win ,
companies will need to offer high
quality for a lower price than their
competitors.This requires organizations
to identify and reduce their quality
costs
High
Quality
Lower
price
FICCI
Quality Costs
Quality costs are all those
costs that arise from not
performing a task the right
way the first time.
CE
CE
FICCI
Categories of Quality Costs
1. Prevention Costs
2. Appraisal Costs
3. Internal Failure Costs
4. External Failure Costs.
CE
FICCI
Prevention Costs

Prevention costs are associated with design,
implementation , maintenance, and planning prior to
actual operation in order to avoid defects from
happening.

The emphasis is on the prevention of defects in order
to reduce the probability of producing defective
products. Prevention activities lead to reduction of
appraisal costs and both type of failures ( internal
and external ).The motto is “Prevention rather than
appraisal” .
CE
FICCI
Activities associated with Prevention costs











Market research
Quality training programmes.
Contract review
Design review
Field trials
Supplier evaluation
Process plan review
Process capability review
Design and manufacture of jigs and fixtures
Preventive maintenance
Engineering changes for easy producibility
FICCI
CE
Appraisal costs
Appraisal costs are spent to detect defects to
assure conformance to quality standards.
Appraisal cost activities sums up to the “cost of
checking if things are correct”.The appraisal costs
are focused on the discovery of defects rather
than prevention of defects
FICCI








CE
Activities associated with Appraisal costs
Proto type testing
Vendor surveillance
Incoming material inspection
Process inspection/control
Final inspection
Laboratory testing / measurement
Depreciation cost for measuring
Quality audits.
FICCI
Internal failure costs
 Internal
failure costs occurs when
results of work fail to reach designated
quality standards , and are detected
before transfer to the customer takes
place.
CE
FICCI








CE
Activities associated with Internal failure costs
Design changes/ corrective action
Scrap due to design changes
Excess inventory
Rectification / reject disposition of
purchased material
Rework/rejection in manufacturing
Downgrading of end product
Downtime of plant & machinery
Trouble-shooting & investigation of
defects
CE
FICCI
External failure costs
External failure costs occur when the
product or service from a process fails
to reach designated quality standards ,
and is not detected until after transfer
to the customer.
CE
FICCI
Activities associated with External failure costs






Processing / investigation of customer complaint
Repair/replacement of sold goods
Warranty claims
Product liability & litigation costs
Interest charges on delayed payment due to quality
problems
Loss of customer goodwill & sales.
FICCI
CE
Size of four categories of quality costs.
The organizations which do not follow TQM,there is
less emphasis on prevention and their main quality
efforts are on appraisal with very little control on
internal and external failure costs.
Various
studies have shown that quality cost in
manufacturing companies the world over range from
20 % to 30 % of turnover and in the case of service
companies it can go up to 40 % as illustrated in
graph on the next slide.
FICCI
CE
Size of various quality cost elements
Quality costs in % of sales
10-15%
The total quality
costs 25-35 %
of turnover.
10-12%
4-6%
1%
Preventive
Appraisal
Internal
Failure
External
Failure
CE
FICCI
Impact of TQM on costs.
TQM
is primarily aimed to improve the quality of
the product , higher customer satisfaction and better
working environment for the employees. The most
dramatic impact of TQM is on reduction of quality
costs which directly effect the profitability .
This is demonstrated by the results of TQM
programme in Xerox Corp . The change in various
elements of quality cost before and after launching
TQM by Xerox Corp is shown on the next slide.
FICCI
CE
Impact of TQM on costs.
An example from Xerox Corp.
35
Internal Failure
30
Appraisal
% of sales
Prevention
25
20
15
10
5
0
Before TQM
After TQM
CE
FICCI
1-10-100 Rule
Stages
Prevention
1
Rs
10
Correction
Failure
Rs
Rs
Rs
Rs
100
CE
FICCI
Visible costs
•Scrap
•Rework
•Warranty costs
• Excessive use of material
• High inventory
Hidden Costs
• Low plant utilization
• Cost of redesign and re inspection
• Cost of resolving customer problems
• Cost associated with poor quality
of purchased material
• Cost of non value adding activities
• Opportunity cost of lost customers
CE
FICCI
Time- The third
dimension of
quality
CE
FICCI
Time Based Competition
 Time
has emerged as a dominant dimension of
global competition , fundamentally changing the
way the organizations compete. The traditional
cost based competition is defenseless against
organizations that can provide products and
services with the most value for the lowest cost
and fastest response time. Time based
competitors are changing the rules by developing
reengineered processes that are simpler , faster
and have world class quality.
FICCI
CE
Reduce cycle time
Customers now penalize suppliers that infringe
on their time, whether through delays, mistakes
or inconveniences. Today’s customers demand
operations that are airborne, on-line and realtime. Soon is not the answer the customers
want to hear. They count the speed of response
time as a Key Value Dimension. Their directive
to the market place is loud and clear continuously shrink the interval between our
need and when you can fill it - qualitatively.
CE
FICCI
Time Based Competition : Added Value.

The key to time - based competition is not about driving
people and machines faster, but about the elimination of
waste.

Waste is often confused with materials ruined or discarded
or time which could obviously have been better spent .
However this view is only partial.

Waste is any operation which does not add value.*
* See next slide on operations that do not add value
FICCI
CE
Sources of unproductive Time.

Waiting time.

Set- up times.

Time spent on over production .

Avoidable Transportation.

Ineffective communication.

Inopportune timing of activity.
CE
FICCI
Time based competition - Gains.
The
implementation
of
a
real-time
organization, with real time systems , will have
the effect of changing the working relationship
within the organization as well as those with
the partners and customers . The application of
technology will change the corporate culture.
As these systems are adopted , new ideas for
services and products , new ways of gaining
customer loyalty and new methods of team
collaboration will take shape resulting in
tremendous gains.
CE
FICCI
Quality in
Manufacturing
&
Service
Organizations
FICCI
5 - S Technique5
CE
S Technique
The 5 - S practice is a technique
used to establish and maintain
quality environment in an
organization .The name stands
for 5 Japanese words
Seiri
Seiton
Seiso
Sieketsu
Shitsuke
FICCI
Seiri :Sort out items and discard the unnecessary
Check :
1.Do you find items scattered in your workplace
2.Are there boxes, papers and other items left
in a disorganised manner.
3.Are there equipments and tools placed on the floor.
4.Are all items sorted out and placed in designated spots.
5.Are the tools properly sorted and stored
CE
CE
FICCI
Seiton :Arrange a place for everything .Everything in its place.
Check :
1. Are passages and storage places clearly indicated.
2.Are commonly used tools separated from those seldom used.
3.Are containers and boxes stacked up properly.
4.Are fire extinguishers and hydrants readily accessible.
5.Are there grooves , cracks or bumps on the floor
which hinder work or safety.
FICCI
CE
Seiso :Clean your workplace thoroughly.
Check :
1. Are the floor surfaces dirty.
2. Are machines and equipment
dirty.
3. Are wires and pipes dirty or
stained.
4. Are machine nozzles dirty by
lubricants and inks.
5. Are shades , light bulbs and
light reflectors dirty.
FICCI
Seiketsu :Maintain a standard.
Check :
1.Is any one’s uniform dirty and untidy
2.Are there sufficient lights.
3. Is the noise or heat at your workplace causing discomfort.
4. Is the roof leaking
5.Do people eat at designated places only.
CE
FICCI
Shitsuke :Train people to be disciplined
CE
Check :
1. Are regular 5 - S checks
conducted.
2. Do people clean up without
reminders.
3. Do people follow rules and
instructions.
4. Do people wear their uniforms
and safety gears properly.
5. Do people assemble on time.
CE
FICCI
Designing Quality
Taguchi methods
The aim of a good design is to
minimize loss to the customer
and the society .
Sources of loss : Product life , wear
and tear, set up time etc.
CE
FICCI
Designing quality: Taguchi methods
A good design is the optimal trade off
between cost and performance and must
aim at simplicity . It is easier to make
complicated designs , but it takes a genius
to simplify the design. Costs are reduced
as a result of :
 Fast assembly & production
 Robustness
 fewer suppliers & less administration.
FICCI
CE
Designing quality
A good design should aim at reducing
Signal to noise ratio.
Televisions emit both signal and noise.
The signal consists of sound and picture.
It is the desired part of transmission . The
noise is the unwanted part of
transmission.
FICCI
CE
Conformance to design
Conformance to design is a systematic way of
guaranteeing that the designed quality is
achieved .Good things only happen when
planned , bad things happen on their own. In
production systems you only get what you put
in , but unless you are careful , you may not
even get that.
CE
FICCI
Conformance to Design.
Pokayoke : Poka yoke is a
Japanese word which means
Mistake Proofing.The aim is
to
engineer
production
systems to eliminate the
possibility of error rather
than relying on quality
inspections. Your ultimate
inspector is the customer.
CE
FICCI
TPM : Zero sum approach
•Zero defects
•Zero breakdowns
•Zero losses
FICCI
CE
Total Productive Maintenance is
productive maintenance involving
total participation for increased
productivity .
FICCI
CE
Why TPM
Downtime
(a) Breakdowns due to
equipment failure.
(b) Setup and adjustment
e.g . exchange of die
injection
moulding
machines etc.
CE
FICCI
Why TPM
(a)
Idling
and
minor
stoppages e.g. abnormal
operations of sensors
(b) Reduced speed e.g.
discrepancies between design
and
actual
speed
of
equipment
Speed
losses
CE
FICCI
Why TPM
Defects
(a) Defect in process and
rework ( scrap and quality
defects requiring repair )
(b)
Reduced
yield
between machine startup
and stable production.
FICCI
CE
Requirements for TPM






Maintain
basic
equipment
conditions
Maintain operating conditions
Restore deterioration
Correct design weaknesses
Improve technical skill
Expose hidden defects
CE
FICCI
Just in time
Leading Japanese companies attribute their
success in reducing waste and speeding production
to the implementation of so called Just In Time (
JIT ) methods of working. It is also known as
stockless production because the aim is to receive
supplies and manufacture components Just in time
for next operation.In JIT , the ideal inventory is
one.
FICCI
CE
Just in time
First sell it , then make it : JIT reverses the conventional
approach of first making and then selling . Ideally
nothing is produced unless a customer is identified . In
some Japanese factories the cars are shipped with the
customer’s name already attached.
This helps in reducing inventories , warehousing
and other holding costs.
FICCI
CE
Just in time
From finish to start : JIT reverses the
conventional approach of planning production
from start to finish .Employees responsible for
final operation receive the production plan first.
The organization is forced to get the production
process right before commencing production.
CE
FICCI
Service Delivery
.
.
CE
FICCI
Quality in service organizations
In a service organization the producer
and consumer meet face to face . In a
service organization both - quality of
the service and interface are importantunlike a manufacturing organization
where only the quality of product
matters.
CE
FICCI
Quality in service organizations
Managing service delivery :Service delivery is
like a theatrical performance . The stage must be
set and the people must act the part .Service
quality is affected not just by the fitness of the
product , but also by the manner of delivery .
A customer may desert a restaurant if the quality
of service deteriorates even though the quality of
food and ambiance is excellent.
CE
FICCI
Quality in service organizations
Managing Customers :Planning services require
careful matching of capacity to demand . Unlike
manufacturing goods , services can not be stored.
Every vacant seat at the flight represents an
irrevocable loss of revenue. Conversely,
insufficient capacity creates an even worse problem
- Customers will go somewhere else - a permanent
loss of revenues and profits.
CE
FICCI
Quality of service
Interaction with the customers :Interactions affects
perceptions of quality. Spending a little time with
each customer can bring wonders. Properly handled
, a disaster can be turned into a triumph .
When things go wrong the best thing is to
overcompensate .A hotel guest who complained of
no towel found within few minutes two towels,
with apologies from the manager -and his next
drink was on the house.
CE
FICCI
Problem Solving
FICCI
You can not change the direction of the wind ,
but you can always adjust your sails
CE
CE
FICCI
Kaizen
Kaizen is the Japanese philosophy
of continuous improvement
FICCI
Kaizen : Importance
The road to excellence is not the major breakthroughs , but small continuous improvements
that do not cost money, but result in real cost
savings, higher quality or better productivity.
The latest developments in Japan advocate the
idea of taking small incremental Risks along
with small continuous improvements to win .
CE
CE
FICCI
Kaizen : Foundations
 Employee
 Self
empowerment
discipline
 Recognition
FICCI
Kaizen : Tools

Waste Elimination .

Standardization.

Housekeeping.
CE
CE
FICCI
Rational model for problem solving
FICCI
CE
Agree the problem
1
2
Select the
Problem
Understand the
Problem
3
Discuss and clarify the problem
and come to a common
understanding about the same
CE
FICCI
Eliminate Causes
4
5
Identify possible
causes of the
problem
Gather data
and test
causes
6
Select applicable causes
FICCI
CE
Options for Improvement
7
8
Identify potential
options for
improvement
Gather data and
test options for
improvement
9
Select applicable options
for improvement
FICCI
CE
Implement solutions
11
10
Plan implementation
of solutions
Implement
solutions
12
Monitor success of implementation
FICCI
Complete the process
13
Standardise
solution
14
Can the idea
be used
somewhere else
CE
CE
FICCI
Other approaches : PDCA cycle.
PLAN
D0
ACT
CHECK
The PDCA cycle
has the advantage
of being cyclical implying that
improvement
never ceases.
CE
FICCI
Other approaches : Cause and effect
 This
approach involves breaking problems
down into “simple” components. This
normally assumes a simplistic , one- to- one
cause and effect relationship. For every
problem , there is a single identifiable
cause. The cause and effect diagram enables
the team to have all causes at a glance.
See the Cause and effect diagram on the next slide.
CE
FICCI
Cause and effect diagram.
Men
Environment
Machine
CAUSES
Method
EFFECT
Systems
Materials
CE
FICCI
The tools are no substitute for human brain
CE
FICCI
Other approaches : Brain Storming.

A brain storming
activity that is well
executed
should
result in some very
unusual ideas that is
the
underlying
purpose for resolving
the given problem.
CE
FICCI
Benchmarking
CE
FICCI
Benchmarking is quality by comparison
for achieving better standards.
FICCI
World Class
CE
Recognised as the best
Benchmarked by others
Benchmarking :
Stages of improvement
Best in Class
Exceeds customer expectations,outperforms
all direct competitors and has clear competitive
edge
Efficient
Meets all internal requirements for cost margins,
asset utilization,cycle-time and measures of excellence
Effective
Satisfies all customer requirements
Incapable
Is ineffective , inefficient and at the risk of failing.
Needs major redesign
FICCI
World class : Benchmarked by others
CE
CE
FICCI
Benchmarking : Relevance
In the global movement today , the competition is
improving at a faster rate , and the only way to
improve your relative quality and move upwards is to
find out and implement the best corporate practices.
CE
FICCI
Best practice benchmarking
Best practice benchmarking is a technique used by
companies around the world in all sectors of business to
help them become good or better than the best in the
world in the most important aspects of their operations.
There are 5 key steps to the process of best practice
benchmarking .
1. Select what to benchmark
This may include :
 Product quality
 End pricing
 Features
 Technology
2. List who to benchmark with
The following are some
important considerations in
choosing companies with
whom to compare yourself :
 Is their experience really
relevant
 Are they still at the activity
you want to measure
CE
FICCI
Benchmarking : Whom to learn from
A. Internal : Compares depts , sites , countries for the
same company. Very relevant . Easy to get information
but inward looking.
B. Competitors : Compares practices with direct
competitors .Very relevant .Can lead to healthy
rewards .
CE
FICCI
Benchmarking : Whom to learn from

C. Generic : Compares with the best from all industry
groupings .The key facet of benchmarking is practices
and not just processes .This method helps companies to
find and then innovatively implement the best corporate
practices from all over.
CE
FICCI
Generic benchmarking - Examples :



An ammunitions manufacturer improved the finish on its
shell cases from benchmarking a cosmetics lipstick
producer.
A hospital compared its scheduling with an Airline
company.
A financial services company learnt from a Hotel about
client relationships.
FICCI
3. Get the Information
CE
You can get a great deal of information from trade
associations, magazines, journals and special
databases. Customers , suppliers and libraries can
also be a good source of inputs.The reliability and
accuracy of the data is however very important in
this regard.
4. Analyze Gaps.
Too much information is as
bad as too little. Gather and
analyse only the information
you need to make a direct
comparison of performance.
Compare like with like .
Identify the performance
gaps and adopt practices to
close gaps .
CE
FICCI
5. Set new standards .
Set new standards for the performance and
communicate the plan to all concerned .
 Provide the resources for meeting the new
standards.
 Monitor the progress of the plan to be
implemented effectively.

CE
FICCI
Business
Process
Reengineering
CE
FICCI
Speed
Service
Quality
FICCI
CE
Business Process Reengineering
Continuous
improvement
can only take an organization
so far long the quality curve.
Then comes a time when a
sharp upward jump into a
new orbit is required . And
this
vertical
transition
demands a complete redesign
of processes known as BPR
CE
FICCI
BPR - Radical improvement
Reengineering is all about reinventing the
entire organization - including its people,
structures - rather than just processes.
Organizations
looking
for
radical
improvement need BPR.
CE
FICCI
Why Reengineer ?
People
are limited and simple. The
organizations had to design very simple
tasks and jobs for them to do . This in turn
led to complex organizational systems ,
because when the work that is being done is
simple and fragmented we need a lot of
overhead to tie it all together. Result - high
cost , poor quality and bad service.
CE
FICCI
5 steps in Reengineering

Develop business vision and process objectives

Identify processes to be redesigned

Understand and measure existing processes

Identify information technology levels

Design and build a prototype of the process
FICCI
CE
BPR : Where to start.
Forget what your competitor
is doing . Take , instead , a
clean sheet of paper and design
your process the way you
would have done it had you
started from scratch.
FICCI
CE
BPR - Key Business Processes
 Starting afresh enables an organization to identify
the Key Business Processes and ordinary business
processes. KBP’s offer maximum value
propositions to the customer .Ordinary business
processes offer little or no value propositions to
customers.
CE
FICCI
BPR - Key Business Processes

The companies must reengineer their Key Business
Processes.

Each KBP must be reengineered to deliver Speed ,
Service & Quality.

This in turn will generate both revenues and profits.
FICCI
CE
KAIZEN and BPR differences
KAIZEN
Strategy
Approach
Method

Process
Value added

Human
Resources
Finance





Continuous small steps
Start with what you have
Change what you have
and learn
Overall process
Eliminate non value
added activities
Every one is involved in
the system
Less funds required
BPR



Infrequent big leaps
Start with clean sheet
Forget and start afresh

Selective , one at a time
Minimise inputs , add
value to outputs.
BPR project team

More funds required


CE
FICCI
Competitive advantage
Today the
business operates like a
corporate Olympics - a series of games
played all over the world with
international as well as domestic players .
 To know how to compete in a way that
enhances rather than undercuts mutual
cooperation is the need of the hour. The
strategies of the organizations must be
oriented towards achieving the highest
standards of excellence rather than wiping
out competition.

CE
FICCI
Competitive Advantage
Nike and Reebok did just this. Both
companies market high - tech , fashionable
footwear for sports and fitness , yet neither
of them actually makes shoes . They
contract out the production of their shoes to
footwear companies in Taiwan and South
Korea , who can produce the shoes at a
lower cost than they are able to - Nike and
Reebok only design and market them - and
both are the world leaders.
CE
FICCI
Competitive advantage
Hewlett - Packard achieved its biggest
breakthrough with the launch of the HP Laser jet .
Before this , quality laser printers cost up to $
100,000 , and were only compatible with one
company’s products. HP bought complete
components from other companies such as Canon
and by combining their strengths were able to
produce a quality printer for under $ 2000 that was
compatible to any other computer. The rest is a
history.
CE
FICCI
Measures
of
Excellence
FICCI
Continuous improvement is only possible when the
quality objectives can be measured and quantified.
CE
CE
FICCI
Measures of Excellence
Marketing
1. Accuracy of forecast assumptions
2. Number of incorrect order entries
3. Overstocked field supplies
4. Contract errors
5. Late deliveries
6. Customer complaints.
CE
FICCI
Measures of Excellence
Purchase
1. Premium freight cost/ demurrage charges.
2. Down - time because of parts shortages
3. Number of Off specification parts used to keep
line going.
4. Cycle time from start of purchase request until
items in house.
5. Excess inventory.
6. Percentage of purchased material rejected on
receipt
FICCI
Measures of Excellence
Manufacturing
1. Yield per ton of raw materials.
2. Percentage of parts scrapped.
3. Percentage of parts reworked.
4. Percentage of parts accepted on concession.
5. Percentage of final product grades as seconds.
6. Production per man / machine
CE
FICCI
CE
Measures of Excellence
Product Engineering
1. Number of engineering changes per document.
2. Number of errors found during design review.
3. Number of errors found in design evaluation test.
4. Percentage of time over- run compared to
planned time for development.
5. Percentage of cost over - run over estimated cost
of development.
6. Number of tooling redesign after trial production
FICCI
CE
Measures of Excellence
Quality Assurance
1. Percentage of lots rejected due to errors.
2. Percentage of products having defects
detected by customers.
3. Number of engineering changes that should
have been detected in design review.
4. Errors in inspection / test reports
5. Cycle time to get corrective actions
6. Percentage of appraisal cost compared to
production cost.
FICCI
CE
Measures of Excellence
Accounting
1. Percentage of late payments.
2. Time to respond to customer request
for information.
3. Billing errors.
4. Incorrect accounting entries.
5. Payroll errors.
6. Errors in cost estimates.
CE
FICCI
International
Quality
Models
TQM Models
 Your
organizations are built on
the tailor made model - the
bosses doing the thinking and
the
workers
wield
the
screwdrivers. For many people ,
the essence of management is
getting ideas out of their boss’s
head and passing it on to the
hands of the workers.
TQM - Beyond models
 We
must go beyond the tailor made
models. Business is now so
complex and difficult , the
environment
is
increasingly
unpredictable and competitive . The
continued existence of the business
does not exist on models , but on
day to day mobilization of every
ounce of intelligence from all.
FICCI
Performance Measurement U.S.A Quality Award .
 Customer
satisfaction
 Quality Results
 Human Resource Utilization
 Quality assurance systems
 Leadership
 Information & analysis
 Strategic quality planning
30 %
18 %
15 %
14 %
10 %
7%
6%
CE
FICCI
CE
Performance Measurement -
Award by European foundation for Quality management
This European framework shows the linkages and comparative ratings
between the components . For your own self assessment different
ratings might be appropriate.
LEADERSHIP
10 %
People
Management 9%
Policy &
Strategy 8 %
Resources 9%
ENABLERS 50 %
PROCESSES
14 %
People
Satisfaction 9 %
Customer
Satisfaction 20 %
Impact on
Society : 6 %
BUSINESS
RESULTS
RESULTS 50 %
15 %
CE
FICCI
FICCI Simplified TQM Model
For Indian industries
 At
present various models are existing on TQM . These
models are highly complicated and far away from the
realities of Indian industries. Therefore FICCI has
evolved a simplified model of TQM which can be
easily understood and implemented.
 This
model lays emphasis on measurable results
which alone can justify tremendous investment of time
and resources.
CE
FICCI
Executive Leadership
FICCI TQM MODEL
Operational Management
Quality planning
Resource Management
Process measurement and control
Quality improvement
Training & motivation
Strategic quality planning
Policy deployment
Customer focus
Participative Mgt. Culture
TQM review & rewards
Customer
Satisfaction
Process
Quality
Business
Results
Organisational structure
Customer requirement
Standard methods/procedures
Quality data
Tools & techniques
Quality System
CE
FICCI
Self check forTQM Status
FICCI simplified TQM model
&
TQM Action plan.
FICCI
CE
Do you need organized Quality improvement?
It will be interesting to know whether you
need an organised quality improvement at
this stage. Please answer a set of 20
questions given on the next slides to
analyse your present positions.
 Give yourself 1 Point for each positive
answer and 0 point for a negative answer.

FICCI
CE
Do you need organized Quality improvement?
Business Results :
1. Are you getting a larger share of the
potential market each year.
2. Has your organization’s productivity
growth rate increased at more than the
inflation rate over the past 3 years.
3. Have your profit increased more than
the inflation rate over the past 3 years.
FICCI
CE
Do you need organized Quality improvement?
Competition :
4. Is your business results comparable with the best
organizations in your size and industry.
5. Are you able to compete in costs among the supplier
of the products of your class.
6. Do you have inventory level which compares well
with the best companies in your size and industry.
FICCI
CE
Do you need organized Quality improvement?
Customers :
7. Do you fully understand your customer expectations
concerning your products and services.
8. Does your customer feedback system show that you
are meeting your customer’s 90 % expectations.
FICCI
CE
Do you need organized Quality improvement?
Production :
9. Do you always meet production schedules.
10. Are your scrap and rework costs less than 1 % of
your sales .
11. Are you using only parts that meet specifications.
12. Is less than 5 % of your direct work force engaged in
inspecting the product.
13. Is the average availability of plant and machinery
more than 90 %
CE
FICCI
Do you need organized quality improvement?
Employees :
14. Are you able to attract and retain the best people.
15. Are you spending minimum 0.5 % to 1 % of your
turnover on educating your employees.
16. Do people in your organization meet their
commitments 90 % of the time.
17. Is the rate of absenteeism of staff less than 3 %.
18. Are the employees generally satisfied with the work
environment and have high morals.
FICCI
CE
Do you need organized Quality improvement?
Purchase :
19. Is your receiving inspection rejecting less than
1 % of the parts that come into your company.
20. Is the incident of late delivery of purchased
products less than 5 %
FICCI
CE
Do you need organized Quality improvement?
Score:
0-10
:Introduction of TQM is inescapable if you
want to avoid loosing your market share or ending
up making losses.
10-15
: You may have the product quality which
just meets customer requirements , but you need to
launch organised TQM activities to increase your
market share and have competitive edge.
FICCI
CE
Do you need organized Quality improvement?
Score:
15-20
:Keep it up . You are doing well, but
don’t be complacent. There is always a
room for improvement to meet the
challenges of new market environment.
FICCI
Self check for TQM status.
Vision
1. Do you have a written quality vision for the company.
2. Based on your quality vision ,have you formulated a strategic
plan laying down methodology and long term quality goals or
objectives.
3. Have you established any short term measurable goals with
respect to quality of your products and services with time
bound action plans.
CE
FICCI
Self check for TQM status.
Meeting objectives
1. Is there an organization, such as, quality council or quality
steering committee composed of senior management and does
it meet at least once a month to review the status of quality and
progress towards achievement of quality objectives
2. Do you have specific quality improvement projects identified,
based on analysis of data after prioritization on the basis of
expected business results and for achieving laid down quality
targets.
3. Have you established cross functional teams for taking up
quality improvement projects.
CE
FICCI
Self check for TQM status.
Meeting objectives
4. Have you allocated adequate resources in terms of manpower ,
finance and equipment support for effective functioning of
quality improvement project teams.
5. Is the process of quality improvement project team reviewed
by top management at least once a month.
CE
FICCI
Self check for TQM status.
Customers
1. Do you collect quality data from the customers and the
processes regarding non conformities, rework and late
deliveries .
2. Based customer feedback on shortcomings in quality , do you
have a institutionalized system for corrective and preventive
action.
3. Have you established a mechanism to measure the cost of poor
quality covering all departments which have a bearing on
quality of products or services .
4. Is the quality cost data analyzed to set targets for taking
concrete actions toward quality improvement.
CE
FICCI
Self check for TQM status.
Employees
1. Do you collect data about satisfaction of employees .
2. Have you got any effective system for redressal of personnel
grievance of employees without involving unions.
3. As a matter of policy does the senior management anticipate
that their subordinates will usually make sound decisions, and
has the management empowered the subordinates for taking
necessary action to solve quality problems and satisfy the
customers.
4. Are the employees encouraged to bring out the weaknesses or
shortcomings in their own area of operations which affect the
quality of product or service.
CE
FICCI
Self check for TQM status.
Employees
5. Does the top management spend at least 5 % of their time
on planning , review and facilitation of quality related
activities.
6. In the case of quality problems or complaints, is it taken as a
opportunity to uncover the root cause rather than fixing
responsibility on an individual
7. Have you got an organized training programme on quality,
covering all levels of employees.
CE
FICCI
Self check for TQM status.
CE
Employees
8. Do you have a system of motivation of employees towards
quality by recognition of a kind that is valued by the employees.
9. Is the performance of an employee towards achievement of
quality goals taken into consideration for merit rating ,
compensation , promotion and financial rewards.
FICCI
Self check for TQM status.
CE
Processes/ Systems
1. Do you benchmark your important business processes with the
best in class to assess the gap and scope for improvement.
2. Is your management alive to the social responsibilities and take
effective measures to protect the environment and support
community services.
3. Have you got any institutionalized system of quality audit of all
departments and functional groups to assess the effectiveness of
quality programmes for initiating corrective measures.
CE
FICCI
When the going gets tough,
the tough gets going.
CE
FICCI
The journey to hundred miles begins
with one single step.
CE
FICCI
TQM road map
1. Develop long term vision or mission of the
organization by top management after strategic
consideration of markets and core competencies of
the company.
2. Constitute Quality Council or steering Committee
under the CEO to demonstrate strong commitment
to quality mission.
3.Training of members of quality council on basic
concepts of TQM and their impact on business.
FICCI
TQM Road-map
4. Organise quality audit of the organisation including
customer perception survey, employee satisfaction
survey to determine the present status of quality in
the company.
5. Define measurable objectives which must be agreed
by the top management as indicators of success for
the mission.
6. Identify critical processes and activities for
attainment of objectives.
CE
CE
FICCI
TQM Road-map
7. Organise general quality awareness training at all
levels, and specialised training on quality tools and
techniques for persons who will be required to use
them.
8. Based on the critical process already identified ,
develop departmental TQM plans with well defined
sub-targets and responsibilities.
9. Establish a mechanism for inter-departmental coordination for determining agreed inputs and mutual
support for attainment of departmental objectives.
FICCI
TQM Road-map
CE
10. Develop monitoring system with milestones for periodic
review by the management team.
11. Formally launch the first phase of the TQM programme
for implementation.
12.After trial period of say 3 months , carry out organised
audit of the programme by trained auditors who are not
involved in the activities being audited.
13.Conduct review by the steering committee and apply
corrective measures.
FICCI
TQM Road-map
14. Continue implementation effort and corrective
measures for at least one year.
15. Evaluate impact of successful activities on business
and analyse failures.
16. Expand areas of success and try other approaches
for failed projects till major objectives of the first
phase are achieved.
17. Benchmark critical functions and processes with
best in class to determine gaps.
CE
FICCI
TQM Road-map
18. Conduct extensive review of the first phase of TQM
programme.
19. Learning from successes and failures draw up plan
for next phase of TQM programme with stretch goals.
20. Institutionalise continuous improvement through
PDCA cycle.
CE
FICCI
CE
Quality - A total ideology.
The hallmarks of quality organizations are high
return high performing processes , empowered , well
paid and highly motivated personnel , good corporate
citizenship , respect for the environment, happy and
delighted customers , free from shoddy and unsafe
products . Quality - a total ideology -creates the
ideal win-win-win-win situation for all.
CE
FICCI
Quality is an endless journey
CE
FICCI
Source of Information and advise
General H.LAL : General H.Lal is a mechanical Engineer . In 1971 he joined
Defence Quality Organization and held important appointments till in 1987 he
reached the highest position of Director General, Defence Quality Assurance
Organisation.After retirement he was appointed as Director General , Bureau of
Indian Standards. In addition to standards he pioneered the Quality movement in
India. By his sustained efforts through TV , media and seminars he brought
Quality into national focus.
He is internationally recognised quality expert and his new book “ISO 9000 :
Guidelines for developing countries has recently been published by ISO and
UNCTAD/GATT. He is the chairman of MSD Council of BIS which formulates
national standards of quality management . He is also the adviser to the
UNITED NATIONS DEVELOPMENT ORGANIZATION( UNIDO ).
He is at present the Director General , FICCI Quality Forum.
CE
FICCI
Research, Artwork, Design and development
Pravin Rajpal :Mr Pravin Rajpal is a Chartered
Accountant with more than 12 years of work experience
in some of the best professionally managed companies in
India. He worked for Eicher Consultancy services , a
premier management consultancy company in India for 4
years .
At present he is the CEO of Competitive Edge,
Management Consultants .