STUDY ABOUT TOTAL QUALITY MANAGEMENT

A Project Report Prepared By U.K.G.V.R. Keerthirathna CCHRM 2010/SA/11

Course: Certificate in Human Resource Management September 2010

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Acknowledgement
I would like to express my heartrending gratitude and sincere thanks to everybody who gave me their kind support to finish this study. I would not be able to complete this study in such a effective way, without their support though I have dedicated a lot.

I am highly appreciating the devoted service of all the lecturers in the Institute of Personnel Management, for their right guidance and for offering their knowledge to many students like me.

I would like to express my gratitude towards my parents and the sister to their kind cooperation and encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to the lecturers in University of Colombo for giving me their attention and time for clarify my doubts.

As well as I express my genuine thanks and appreciation to all my friends and colleagues who have helped me in proof readings and encourage me to terminate this in provably.

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Executive Summary
In this project report I have presented a detailed report about Total Quality Management according to the findings I have found in the research time period. Total quality Management is a philosophy which attempts to instill awareness and drive toward quality in all parts of a business's operations. Total quality management is a customer centric business strategy in that its focus on quality always relates to customer satisfaction with a product or service. The aim of this system is to create long term success through a base of highly satisfied customers with loyalty to the company due to the great quality and care taken to ensure all of their needs are met up to their expectations. This research report consists with five different sections discussed about the diverse components about the total quality management. I have kept back the first topic as What is Quality, which describes the term Quality according to various authors and management consultants. Second topic describes about the total quality management. Third topic has set aside to illustrate about the Evolution of total quality management. Next I have illustrate some data about the Toyota Production System (TPS) as a succeeded company through total quality management philosophy. At last but not least I have elaborated the role of human resource management in implementing and controlling total quality management systems.

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What is Quality?

Quality is total composite product (goods and services) characteristics, through which the product in use will meet the needs and expectations of the customers. Concept of quality must start with identification of customer quality requirements and must end only when the finished product is placed into the hands of the customer who remains satisfied through various stages of relationship with the seller. FeigenbaumQuality is totality of features and characteristics of product (goods and services) that bears on its ability to satisfy given need. -American Society of Quality Control (ASQC) and American National Standard Institute (ANSI)-

Quality is a customer determination based upon a customer's actual experience with a product or service, measured against his or her requirements -stated or unstated, conscious or merely sensed, technically operational or entirely subjective -and always representing a moving target in a competitive market. Armand Feigenbaum-

Quality is a transformation in the way we think and work together, in what we value and reward, and in the way we measure success. All of us collaborate to design and operate a seamless value-adding system that incorporates quality control, customer service, process improvement, supplier relationships, and good relations with the communities we serve and in which we operate - all optimizing for a common purpose. -Peter Senge et al-

specicationsss for use. -Joseph Juran & Frank Gryna-

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What is Total Quality Management?

Total Quality Management is an administrative approach centered around consistent customer satisfaction and continuous improvement of product quality.It focuses on the satisfaction of the customers and suppliers.

It is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements.TQM places strong focus on process measurement and controls as means of continuous improvement. In the Total Quality Management, it has an important aspect of quality and safety of both product and the production process in the work place. The origin of TQM comes from the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran in the 1950's and has steadily become more popular since the early 1980's. The core concept in implementing TQM is Demings 14 points, a set of management practices to help companies increase their quality and productivity. 1. Create constancy of purpose towards improvement - Replace short-term reaction with long-term planning. 2. Adopt the new philosophy - The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so. 3. Cease dependence on inspection - If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any. 4. Move towards a single supplier for any one item - Multiple suppliers mean variation between feed stocks. 5. Improve constantly and forever - Constantly strive to reduce variation. 6. Institute training on the job - If people are inadequately trained, they will not all work the same way, and this will introduce variation. 7. Institute leadership - distinction between leadership and mere supervision.

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8. Drive out fear - management by fear as counter- productive in the long term, because it prevents workers from acting in the organizations best interests. 9. Break down barriers between departments - Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs. 10. Eliminate slogans - Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive. 11. Eliminate management by objectives - production targets as encouraging the delivery of poor-quality goods. 12. Remove barriers to pride of workmanship - Many of the other problems outlined reduce worker satisfaction. 13. Institute education and self-improvement 14. The transformation is everyone's job

According to Deming's philosophy, productivity improves as variability decreases. So the organizations use statistical methods to control quality. He promoted the use of statistics to measure performance in all areas, not only in product specifications. Besides, he argued that it is not enough to meet specifications; organizations must keep working to reduce the variations also. By criticizing the U.S business management approach, Deming implement the Total Quality management approach as the leader of Total Quality Management philosophy.

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In todays world, companies that do not consider the quality as their key objective, are facing great challenge to survive in the global competitive market environment. Some world class successful organizations like Company, Motorola, Vodafone, Xerox,
HSBC Group, Samsung Group etc, have the best quality management programs. These companies were some of the rst to implement a quality program called, Six Sigma, which is the level of defects is reduced to approximately 3.4 parts per million.

Due to its high focus on quality and the key objective of total customer satisfaction, Motorola was one of the rst companies to win the Malcolm Baldrige National Quality Award in 1988.

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Evolution of Total Quality management

The concept of Total Quality Management has been developing through various steps instead of immerging instead. As I learned through many articles and books, I can suggest the following points as the main steps in the evolution of total quality management process.

Mass Inspection

Quality Control (Acceptance Sampling)

Quality Assurance

Total Quality Control

Company wide Quality Control

Total Quality Management

Mass Inspection In the mass inspection era organizations did the basic things as Inspecting, Salvaging, Sorting, Grading, Rectifying, and rejecting their products, in order to meet the quality requirements.

Quality Control In this era organizations implement a system for ensuring the maintenance of proper standards in manufactured goods, especially by periodic random inspection of the product. They focused on following steps to assure the control of quality of their goods, such as Quality manuals, Product testing, Basic quality planning.

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Quality Assurance Organizations introduced the processes of verifying or determining whether products or services meet or exceed customer expectations.Emphasis on prevention and proactive approaches as well as advance quality planning.

Total Quality Control Organizations implemented systems for integrating the quality development,

maintenance, and improvement efforts of the various groups in an organization. So as to produce marketing, engineering, production, and service at the most economical levels for full customer satisfaction. Organizations consider on all aspects of quality of inputs, Testing equipments, and control on processes.

Companywide Quality Control Measured in all functions connected with production such as Research and development, Design, Engineering, Purchasing, Operations etc...

Total Quality Management Finally organizations reached to the present total quality management philosophy. It measured in all aspects of business. Such as top management commitment, continuous improvement, involvement & participation of employees.

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Succceeded organization through Total Quality Management Approach Toyota Production System (TPS)
Toyota Production System is an integrated socio-technical system, developed by Toyota, which comprises from total quality management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. Originally called "Just in Time Production" .This approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. It is a Long term Philosophy based on management decisions on a long term Philosophy, even at the Expense of Short-Term Financial Goals. y Toyota Production System is based on 14 principles which are unique for them. y The Right Process Will Produce the Right Results y Create Continuous Process Flow to Bring Problems to the Surface y Use Pull Systems to avoid Over Production y Level out the Work Load (Heijunka) y Build a Culture of Stopping to Fix Problems, to get Quality Right the First Time y Standardised Tasks are the foundation for Continuous Improvement and Employee Empowerment y Use Visual Control so no Problems are Hidden y Use Only Reliable, Thoroughly Tested Technology that Serves your People and Processes y Add Value to the Organisation by Developing Your People and Partners

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y Grow Leaders who thoroughly understand the Work, Live the Philosophy and Teach it to Others y Develop Exceptional People and Teams who follow your Companys Philosophy y Respect your Extended Network of Partners and Suppliers by Challenging them and Helping them Improve y Continuously Solving Root Problems Drives Organisational Learning y Go and See for Yourself to thoroughly Understand the Situation y Make Decisions Slowly by Consensus, thoroughly Considering all Options, Implement Decisions Rapidly y Become a Learning Organisation through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen)

Toyota Production System House

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Role of Human Resource Management

Since the TQM is a companywide huge program, Implementation and control of Total quality management system is exceptionally stiff fixation without foremost contribution of the human resource management.HRM acting the main role of implementing TQM in two essential ways. y Modeling the TQM philosophy and principles within its departmental operations, the HR department can serve as a beachhead for the TQM process throughout the company. y Capture the TQM process company-wide by developing and delivering the longterm training and development necessary for the major organizational culture shift required by TQM.

Since the total quality management is a change in the whole corporate culture in organization, Human resource department has a major exertion in terms of making the new work climate. According to that human resource management should consider about the following key points. An open, problem-solving atmosphere Participatory design making Trust among all employees A sense of ownership and responsibility for goal achievement and problems solving Self-motivation and self-control Basically human resource management is accountable for select, recruit, retain, and motivate employees to entire organization as fulfill the total quality requirements.

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List of References

Stevenson J., Operations Management, 8th Edition, 2005. Petrick J, Furr D., Total Quality in Managing Human Resources, 1995 Macdonald J., Total Quality Management in a Week, 2003 http://managementhelp.org/quality/tqm/tqm.htm http://en.wikipedia.org/wiki/Total_quality_management

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