Beruflich Dokumente
Kultur Dokumente
QUALITY
MANAGEMENT
A PROJECT REPORT ON
TOTAL QUALITY MANAGEMENT
IN
CGI Information Systems & Management Consultants Pvt. Ltd.
SUBMITTED BY
SEMISTER V
SUBMITTED TO
UNIVERSITY OF MUMBAI
DATE OF SUBMISSION
27-SEP-2008
AND
DECLARATION
Signature
I would like to thank Mr. Vinay Thaly (Director Consulting Services) and
Shantanoo Joshi (Consultant).
This report is the combined support of all above mentioned and without whom
the project could not be completed.
EXECUTIVE SUMMARY
First chapter addresses Topic, Aims, Objectives, Scope and regarding strategy
followed
Chapter Two explains about Definition & Evolution of Quality and about
Contribution of Quality Guru's
Concept of TQM, Tools & Techniques of TQM and Quality Circles are
addressed in Chapter Three.
Chapter 2 -Preface
Quality Definition
3
Quality Evolution
4
Contribution of Quality Gurus
05 - 11
Management (QSM)
Webliography
Chapter 9 -Bibliography 49
&
CHAPTER 1
PROJECT INTRODUCTION
PROJECT INTRODUCTION
Topic
To see whatever we have learned till now, how that is really getting
implemented in IT industry
Page
1
Scope of Project
The scope is limited to implementation of TQM in CGI through ISO 9001 , CMMi
(which mainly covers majority of Six Sigma concepts ) and through their internal
quality systems.
CHAPTER 2
PREFACE
Quality Definition
Definition
QUALITY means Fitness for Use as per Dr. Juran. The components are said to
possess good quality, if they work well in the equipment for which they are meant.
It is a relative term, generally used with reference to the end use of a product.
A short and widely accepted definition of today for QUALITY is Customer Delight
which aim to meet the following:
Unstated needs (in simple words called Dis - Satisfiers) Expectations (in simple
words called Delighters)
Quality Evolution
Phase
Quality
Quality
Quality
Total Quality
Measurement
Control
Assurance
Management
Scope
Products
Raw
Raw Material
Raw Material
Material
& Products
& Products &
& Products
&
All Process
Process
Area of
End of Line
End of Line
Online
Before the beginning
Action
System
Appraisal
Appraisal
Appraisal
Prevention
Prevention
Appraisal
Function
Inspection
Inspection
Inspection
Plan, Control,
Control
Analysis
Improve and Audit
Status
Operators
Supervisor
Manager
General
Manager
or
Vice President
Reporting
Production
Works
General
Managing
Director
or
Supervisor
Manager
Manager
President
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4
Contribution of Quality Gurus
Late 1950s Japanese who developed new concepts in response to the Americans
Adopt the new philosophy. We can no longer live with commonly accepted levels
of delay, mistakes and defective workmanship
Cease dependence on mass inspection. Instead, require statistical evidence that
quality is built in
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5
Improve the quality of supplies. End the practice of awarding business on the basis
of price
Continuously improve production. Find problems. It is managements job to work
continually on the system
Train and educate all employees. Institute modern methods of training on the job
Supervision must help people. Institute modern methods of supervision of
production workers, The responsibility of foremen must be changed from numbers
to quality
Drive out fear, so that everyone may work effectively for the company
Eliminate numerical goals, posters and slogans for the workforce asking for new
levels of productivity without providing methods
Eliminate work standards that prescribe numerical quotas
Let people be proud of their work. Remove barriers that stand between the hourly
worker and their right to pride of workmanship
Encourage self-improvement. Institute a vigorous program of education and
retraining
Commit to ever improving quality. Create a structure in top management that will
push on the above points every day
The Original Quality Gurus
Provide training
Report progress
Give recognition
Communicate results
Maintain momentum
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He concentrated not just on the end customer, but on other external and internal
customers. Each person along the chain, from product designer to final users, is a
supplier and a customer. In addition, the person will be a process, carrying out
some transformation or activity.
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8
He believed these seven tools should be known widely, if not by everyone, in
an organization and used to analyze problems and develop improvements.
Used together they form a powerful kit.
He distinguished between errors, which are inevitable, and defects, which result
when an error reaches a customer, and the aim of Poka-Yoke (Japanese term, that
means mistake-proofing) is to stop errors becoming defects. Defects arise
because errors are made and there is a cause and effect relationship between the
two. Zero quality control is the ideal production system and this requires both
Poka-Yoke and source inspections. In the latter, errors are looked at before they
become defects, and the system is either stopped for correction or the error
condition automatically adjusted to prevent it from becoming a defect.
Philip B Crosby - The Western Guru, known for the concepts of Quality is
Free and Zero Defects, and his quality improvement process is based on his
four absolutes of quality:
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Form a management level quality improvement team (QIT) with responsibility for
quality improvement process planning and administration
Determine where current and potential quality problems lie
Evaluate the cost of quality and explain its use as a management tool to measure
waste
Raise quality awareness and personal concern for quality amongst all employees
Take corrective actions, using established formal systems to remove the root
causes of problems
Establish a zero defects committee and program
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Having researched successful American organizations, he concluded that any
intelligent approach to organizing had to encompass, and treat as
interdependent, seven variables, in what became known as the McKinsey 7-S
Framework, designed to force explicit thought about both the hardware and
software of an organization:
Conclusion
Apart from above gurus, there are many other management gurus whose
philosophies and ideas are also important but at end of the day, it is
organizational call to select what is best and most suitable set of processes for
their organization based on their current and future needs
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11
CHAPTER 3
INTRODUCTION
TO
TOTAL QUALITY MANAGEMENT
Concept of TQM
The simple objective of TQM is "Do the right things, right the first time, every
time". TQM is infinitely variable and adaptable. Although originally applied to
manufacturing operations, and for a number of years only used in that area,
evolutionary standards with different sectors creating their own version from the
foundation of TQM activities which include:
Check Lists
Check Sheets
Pareto Principle
The Pareto principle suggests that most effects come from relatively few
causes. In quantitative terms: 80% of the problems come from 20% of the
causes (machines, raw materials, operators etc.); 80% of the wealth is owned
by 20% of the people etc. Therefore effort aimed at the right 20% can solve
80% of the problems. Double (back to back) Pareto charts can be used to
compare 'before and after' situations. General use to decide where to apply
initial effort for maximum effect.
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Scatter Plots
A scatter plot is effectively a line graph with no line - i.e. the point intersections
between the two data sets are plotted but no attempt is made to physically draw
a line. The Y axis is conventionally used for the characteristic whose behavior
we would like to predict. Use to define the area of relationship between two
variables.
Warning: There may appear to be a relationship on the plot when in reality there
is none, or both variables actually relate independently to a third variable.
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Control Charts
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16
Flow Charts
Pictures, symbols or text coupled with lines, arrows on lines show direction of
flow. Enables modeling of processes; problems/opportunities and decision
points etc. Develops a common understanding of a process by those involved.
No particular standardization of symbology, so communication to a different
audience may require considerable time and explanation.
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17
The cause-and-effect diagram is a method for analyzing process dispersion.
The diagram's purpose is to relate causes and effects. Three basic types:
Dispersion analysis, Process classification and cause enumeration. Effect =
problem to be resolved, opportunity to be grasped, result to be achieved.
Excellent for capturing team brainstorming output and for filling in from the 'wide
picture'. Helps organize and relate factors, providing a sequential view. Deals
with time direction but not quantity. Can become very complex. Can be difficult
to identify or demonstrate interrelationships.
A Check Sheet is a data recording form that has been designed to readily
interpret results from the form itself. It needs to be designed for the specific data
it is to gather. Used for the collection of quantitative or qualitative repetitive data.
Adaptable to different data gathering situations. Minimal interpretation of results
required. Easy and quick to use. No control for various forms of bias - exclusion,
interaction, perception, operational, non-response, estimation.
Check Lists
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19
Quality Circles
Background
Two atom bombs dropped on Japan during 1945, converted the thriving,
industrial empire of Japan to dust and smoke, with millions killed or maimed.
Every one thought it would be centuries before Japan re-captures its pristine
glory, but Japan rose like a phoenix from ashes to become the leading nation of
the world within a short span of time. The power behind this miracle was fierce
will, determination and commitment of Japanese people and their quest for
quality. They adopted Quality Circles as ways of building attitudes to surmount
problems, improve quality and to be competitive.
It epitomizes the policy of people building, respect for human beings and
conceives a participative management culture. This concept enables the grass-
root level employees to play a meaningful and significant role in their
organization. The responsibility for the attainment of Quality depends on all the
departments of an Organization. The main purpose behind Quality Circles is to
build the people and produce quality people towards making quality products or
providing quality services. It is to make a 'Man' productive and knowledge
worthy.
The Origin
The concept of Quality Circle is primarily based upon recognition of the value of
the worker as a human being, as someone who willingly activates on his job, his
wisdom, intelligence, experience, attitude and feelings. It is based upon the
human resource management considered as one of the key factors in the
improvement of product quality & productivity.
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20
Attributes of Quality Circles
Their aim to achieve and so also to sustain excellence towards mutual upliftment
of employees as well as the organization.
Change in Attitude.
humanization of work.
Self Development
PROCESS OF OPERATION
The use of various techniques must be supported with accurate information and
data. Data and information collection or insufficient data could lead to a situation
where decisions or corrective action be implemented effectively. Data and
information should be collected for the following purposes
Interviews
Questionnaires Observation
In data collection, samples are used. This involves the collection of data from a
small population of the total population involved. The sampling techniques
generally used are:-
Random Sampling - This process involves the random selection of the sample
units. The selection can be made by the use of a random number through table or
lists of names to prevent any bias.
Brainstorming;
Pareto Analysis
Brainstorming
Brainstorming can be used to list down all the problem faced by an organization,
their causes and the potential effects if a certain suggestion is implemented.
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23
To ensure the success of the brainstorming process, it is important for the Circle to
flow the following rules:
The subject for brainstorming should be clear and accurate. For example,
members may brainstorm to identify the causes and reasons why a certain task
cannot be completed on schedule
Each member will give only opinion/idea at each turn regardless of the number of
ideas he/she may have
Every idea expressed should be written on the black/white board, flip chart or
noted down by a secretary..
At the end of the brainstorming session, all the ideas expressed should be
evaluated one by one and short listed.
Voting is used to list the ideas according to priority. The prioritization is based on
number of votes received for each idea..
The Cause and Effect Analysis is also known as the Fish-Bone Analysis. This
technique is used to analyze problems with the identification of causes of a
problem through brainstorming. This technique is easy to use as it summarizes,
arranges and explains all the causes of a problem which has been identified in the
form of a diagram. It also allows for the identification of many possible causes of a
problem. There are five steps in the construction of a Cause and Effect Diagram..
Step 1: Identify a Problem - The first step is to identify the problem and to state the
problem accurately.
Step 3: Determine the Sub-Causes under the Main Causes. Through a process
of brainstorming, the sub-causes of the problem are identified and entered
below the appropriate main causes. Where possible, the sub-causes are further
broken down into more detailed sub-sub-causes
Check Sheets:
"The Check Sheet is used to facilitate the collection and analysis of data.
'Garbage in, Garbage out' is an old clich, but it is true. Therefore, the purpose
for which data is being collected must be clear. Data reflects facts, but only if
they are properly collected. The number of defects and where they are found
can be recorded and analyzed for causes" .
Pareto Analysis:
Pareto analysis provides the mechanism to control and direct effort by fact, not
by emotion. It helps to clearly establish top priorities and to identify both
profitable and unprofitable targets. Pareto analysis is useful to:
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25
Prioritize problems, goals, and objectives Identify root causes
Select and define key quality improvement programs Select key customer relations
and service programs Select key employee relations improvement programs
Address the Vital Few and the Trivial Many causes of nonconformance Maximize
research and product development time
A Pareto chart is used for: Focusing on critical issues by ranking them in terms of
importance and frequency (example: Which course causes the most difficulty for
students? Which problem with Product X is most significant to the customers?)
Prioritizing problems or causes to efficiently initiate problem solving (example:
Which discipline problems should be tackled first? or, what is the most frequent
complaint by parents regarding the school? Solution of what production problem
will improve quality most?) Analyzing problems or causes by different groupings of
data (e.g., by program, by teacher, by school building; by machine, by team)
Analyzing the before and after impact of changes made in a process (example:
What is the most common complaint of parents before and after the new principal
was hired?; has the initiation of a quality improvement program reduced the
number of defectives?)
Quality management is not a one time effort but a continual long term endeavor
which has to be recognized, reinforced and rewarded by continuous monitoring the
ongoing data collection, evaluation, feedback and improvement programmes. The
top management should have to create an atmosphere where the management
and the workers cooperate with each other for smooth functioning of the
organization.
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Quality circle is a new concept and its introduction may cause some resistance on
the part of the employees. Therefore, before introducing quality circle, all
precautions must be taken as in case of any organizational change. The steps in
the introduction of quality circle are briefly discussed below:
Selling the Idea of Quality Circle: The workers must be educated the need
and significance of quality circle from the point of view of the organization and the
workers. The workers should be allowed to clear their doubts about quality circle.
Attempt should be made to seek their voluntary cooperation in implementing
quality circles in the organization.
Problem Solving: The members of a quality circle will discuss the problems
thoroughly and make a list of possible solutions. The merits and demerits of each
solution will be evaluated. The final decision will be taken by the consensus of all
members.
CHAPTER 4
CGIs TQM STRATEGY
Founded in 1976
8.8 out of 10 satisfaction ranking in 2007 from CGIs ISO 9001:2000certified client
management process
End-to-end services
Consulting
Systems integration
Management of IT and business functions
Financial services
Government and healthcare
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45 of 50 top banks in the Americas and Europe, and 11 of the 15 largest global
property and casualty insurers
Leading global manufacturers in aerospace, metals and mining, chemicals, and oil
and gas
Hundreds of retailers and multiple distribution segments and
Representative Clients
o Air Canada , Allstate Insurance ,American Express , AT&T ,Australian and New
Zealand Bank (ANZ) , AXA , Bank of America , Bell Canada , BellSouth , Blue
Cross Blue Shield ,Bombardier , Commonwealth of Virginia , Desjardins , Enbridge
Petroleum , Government of Canada , Government of Quebec , HSBC Holdings plc
, Hydro-Qubec , If Skadefrskring AB , JPMorgan Chase & Co, , Liberty Mutual ,
Lloyds TSB Group Plc , Los Angeles County , Manu life Financial , Merrill Lynch ,
Michelin North America , National Bank of Canada , New York City , Prudential
Financial , Rio Tinto Alcan , Sprint PCS , Telstra
In brief, CGI is Montreal (Canada) based 30 years old IT company, having 27,000
members across the globe. The entire business is divided more than 100 offices
globally, in multiple countries, in various regions and in various Business units.
CGI India is one of the business units amongst all having more than 1200
members with 3 offices in India. Two offices are located in Bangalore and one in
Mumbai in Seepz, Andheri.
CGI is in TQM since last 10 years. CGI is ISO 9001 (from last 10 years), ISO
27001 (from last 2 years) and SEI CMM Level 5 (from last 5 years)
certified/assessed company.
CGI is having Corporate Quality department to take care of TQM at global level
and having Quality department at each business unit. In India this department is
called Total Software Quality Management (TSQM), having 20 full time members
(12 for Bangalore and 8 for Mumbai).s
Assisting all members for defining, implementing and improving their process
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Member - CGI is big family having more than 27,000 members across the globe
and every member is trying their best for the betterment of their family and for their
prosperity hence they are not called as employee but referred as Member.
Each employee when join CGI has to undergo Induction training. This is
mandatory, irrespective of their experience or designation. CGI called this process
as Integration process. Each employee before joining CGI has some information
about CGI to ensure their job stability or prosperity but is not aware about the
culture of CGI. The Integration processes addresses Dreams, Mission, Vision,
Values, Policies, Procedures and other cultural as well as professional and
technical requirements and ensure to convert new employee into Member of CGI
family. CGI will ensure that every member is fully integrated with CGI before
starting delivering to their esteem clients.
Every member of CGI is well versed with following set of core values
Financial Strength
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Using these values CGI has spread message of TQM across all levels. Sharing
the same values allows CGI to enjoy considerable autonomy and swiftness of
action without compromising their cohesiveness. It also allows them to mobilize
teams more rapidly and bring together the most experienced individuals from
across the company, who are able to quickly work as one to address a given
challenge. And, of course, these values also guide CGIs decisions and actions.
For CGI, partnership and quality are both a philosophy and a way of life. They
develop and follow the best management practices and they entrench these
approaches into client relationships and service delivery frameworks in order to
foster long term and strong partnerships with their clients. They listen to their
clients and they are committed to their total satisfaction in everything they do.
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the highest values of quality, objectivity and integrity. Consequently, strict rules
of business and professional conduct are applied. They do not accept any
remuneration from their suppliers.
Respect
As a global company, CGI recognizes the richness that diversity brings to the
company and welcome this diversity while embracing the overall CGI culture. In
all they do what are respectful for their fellow members, clients, business
partners and for their competitors
Financial Strength
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CGI ensures to provide Quality not only in their end product or service but also
make it an integral part of their business rule/processes which they use to
create their goods and services. An effective TQM program will produce greater
quantity, faster and at lower costs, by reducing their rework rates and cycle
times. In next chapter we will focus on detail implementation.
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CHAPTER 5
TQM IMPLEMENTATION IN
CGI
TQM Implementation in CGI
First step that was followed towards TQM was identification of all required
processes such as Technical, Functional, Support, Management etc. Technical
& functional processes covers all process related to spare parts development,
maintenance, migration etc. along with various domains such as Retail,
Manufacturing, Finance, Insurance, service centers, Medical etc. Support
processes takes care of all departmental process in detail such as Human
Resources, Finance, Information Security and Information Technology,
Administration, Training departments etc. . Management processes takes care
of all policies, frameworks and corporate level requirements for all business
units. As CGI is also following other quality models along with TQM such as SEI
CMM and various internal quality frameworks they have considered respective
requirements from these models too.
Once all processes were listed, they have come out with detail flowchart for all
processes to know their sequencing, interfaces, dependency on each other and
also to avoid duplication or redundancy if any. They have also followed Real
Value Activity (RVA), Business Value Activity (BVA) and No Value Activity (NVA)
principle of Six Sigma to decide the priority list. After finalizing their processes
they have documented them all in Quality System Management (QSM) along
with their Quality policy and Quality Manual after review and approval from Top
Management.
This QSM whenever gets revised will get released only after review and
approval from top management. Top Management along with TSQM takes full
responsibility to publish QSM time to time and ensure to address the same
when ever and where ever they found opportunity. All required budgets in
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TSQM is providing detailed training to all members of CGI at all levels. The
process of training is not one time but it is journey. The annual calendar is
published well in advance so that all members can plan their team members
training requirements. Once members are trained on QSM then they start using
and implementing QSM accordingly.
Every department has defined their own process and their own process assets
such as forms, template, and guidelines, checklists etc., depending upon their
services, Service Level Agreement (SLA) are defined and monitored on monthly
basis.
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Effectiveness, Schedule Variance, Effort Variance and Cost of Quality etc. Apart
from Organizational level process assets such as guidelines, checklist, forms,
templates, standards, methodologies, engagement level assets are also getting
developed depending upon clients requirements. Depending upon engagement
uniqueness, applicable best process assets, practices and best methods are
getting shared with the help of TSQM
Based on Business plans, CGI finalize their Business goals (Voice of Business)
and based on clients requirement, Engagement Managers are planning their
engagement goals (Voice of Customer). Based on these two goals
organizational level processes are getting tailored and followed (Voice of
Process) for every engagement. Based on goals various measurements are
defined, managed and monitored. If the actual results are not matching than the
set goals then correction (fixing the problem) or corrective (preventing
recurrence) or preventive (preventing potential occurrence) action are taking
depending upon the situation till the goals are met. Based on learnings goals
are revised and plans are revisited at engagement as well as at CGI level.
For every engagement or for every department one member from TSQM is
nominated to provide quality assistance on TQM, called as Software Quality
Assurance Engineer (SQAE) for engagement or Quality Assurance Engineer
(QAE) for department. They visit every engagement/department on monthly
basis to ensure whether that team is following internal or external quality model
or not and reports their finding to management on monthly basis. Apart from
these checks, every engagement/department gets audited every six months
basis through Internal Audit and once in a year through External Audit. Apart
from conducting SQAE checks, coordinating internal and external audits,
SQAE/QAE also helps assigned team for their clarifications, query, if any Apart
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from TSQM checks and audits, on monthly basis management meeting taking
place (BMC meeting) wherein all engagement and departmental status are
getting discussed and appropriate corrective and preventive actions are taken
accordingly. During meeting Appreciation, suggestions, complaints and other
improvement or innovations activities if any are also getting discussed.
This is how CGI is adopted TQM along with ISO 9001 and Cmmi which is
getting audited or assessed by third party on periodic basis since long.
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CHAPTER 6
PROJECT ANALYSIS
Advantages of TQM
Faster, Better and Cheaper is the mantra of TQM. Every activity is planned and
implemented to ensure customer delight. Customer covers internal as well as
external customer. All employees are fully focused on satisfying or delighting their
clients without compromising on quality.
The supplier or vendor also part of this objective. Vendors are treated like
partner so that every one will take the same ownership and also earned the equal
reward.
Various processes, practices, methodologies, guidelines, standards are defined,
documented, communicated and enforced across the organization so that all stake
holders are in sync with organizational goals
Periodic communication is ensured at all levels to know the progress of
Employee Empowerment
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They will ensure to plan everything; everyone in organization is aware where they
are leading for. The drive and direction is focused and in align with the business
plan
and will ensure to provide all required resources such has Resources, Budget,
Environment Utilities etc time to time till the goals are achieved
Various control mechanisms are in place such functional, departmental meetings,
periodic checks, periodic reporting, review meeting, audits etc to ensure all
activities are in align with business plan
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Various tools such Brainstorming, Fish Bone, Pareto, Control Charts, Histogram,
Correlation, Regression are used to control variance and variation.
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Limitation of TQM
TQM is a philosophy
religion, there are as many versions as there are advocates. A study by Ernst &
Young turned up around 945 different approaches for implementing TQM.
In reality it is not total since it only addresses one aspect of quality management
that is improvement
TQM is remedial and not preventive. TQM is aimed at identifying the
causes of quality problems and eliminating them. The theory is that by involving
everyone in solving quality problems, eventually all problems will be eliminated
and the company's quality will continue to get better and better. Unfortunately,
TQM is based on studying past data which amounts to examining the barn door
after the horse has run away.
ISO-9000 requires documentation and record keeping. ISO-9000, which requires
regular audits by an outside party. There is no such requirement in TQM. TQM has
a history of fading away over time. As a result, improvements often get lost or
forgotten as new people, new products and new managers come and go. Also, the
typical TQM implementation relies heavily on the leadership of a "champion."
When the champion goes, so does the TQM program. TQM can disappear without
a whimper. According to various published reports, about three-quarters of
significantly sized American manufacturers have attempted some form of TQM. Of
those programs, about four-fifths have failed to produce any significant results and
most of them have simply disappeared.
Goals are mainly set at higher level and very limited to bottom line
Goals are not dead line.
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Does not target a specific scope and no dead line so improvement is not
consistent
consistent.
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CHAPTER 7
RECOMMENDATIONS
Recommendations
After going through the concept, advantage, limitation of TQM and where TQM
is implemented along with ISO 9001 and CMMi suggesting for following
recommendations based on my observations and learnings,.
Better to implement TQM with ISO 9001 or with CMMI or Six Sigma so that it
will not remain concept or Philosophy or theory but it should be integral part of
organization mechanism in place to address, resolve and prevent all quality
related issues.
The typical TQM program takes a year or so just to get started and as there is
no limit majority of them dont achieve the required results even after spending
years hence need to be carried out on time bound basis.
Your activity should lead to profit improvement and not limited to process
improvement or for certification.
Function Deployment (QFD) and other tools of six sigma to help to move the
company towards being a world-class operation.
CHAPTER 8
ANNEXURE
Questionnaires
Could you please share soft copy of your TQM with me for my
project?
If not could you provide me the hard copy for reference purpose?
For referring at home or within office only?
Can I take notes from hard copy and reproduce your activities in my project after
getting reviewed from your members?
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How to do you ensure that all employees are understood TQM and followed TQM?
How do you ensure that message of TQM passes to all employees,
How do you compare TQM with you internal as well as external quality models
(ISO 9001 and CMMi)?
Do you follow any reorganization or reward system to promote TQM?
What are the various tools you are using for implementing TQM?
happy?
or objectives?
CHAPTER 9
WEBLIOGR
APHY
BIBLIOGRAPHY &
Bibliography
TQM & ISO 9000 for Architects and Designers Charles Nelson
Six Sigma Black Belt training Material Asian Institute of Quality Management
Webliography
WWW.GOOGLE.COM
WWW.CGI.COM
WWW.ISIXSIGMA.COM
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