“ASSIGNMENT 02”

MGT314.17 – SUMMER 2020

Submitted By:
Ragib Yeasar Akhour
ID: 1611477030

Submitted to:
Meshbaul Hassan Chowdhury
Lecturer, Department of Management
School of Business & Economics,
North South University

Date: 3rd June, 2020

Table of Contents
Fundamental concepts and aims with brief history:....................................................................................2
Concept of TQM......................................................................................................................................2
History of TQM........................................................................................................................................2
TQM tools:...............................................................................................................................................3
The seven QC tools are:...........................................................................................................................3
TQM Implementation:.................................................................................................................................6
Toyota Motors: The King of Total Quality Management.........................................................................6
Case Study of TQM:.....................................................................................................................................8
Case Study 1:...........................................................................................................................................8
Case Study 2:...........................................................................................................................................9
Concept of Six Sigma:................................................................................................................................10
History of Six Sigma:..................................................................................................................................10
Six Sigma Tools:.........................................................................................................................................11
Six Sigma Projects by Industry...................................................................................................................13
Case Study on Six Sigma:...........................................................................................................................14
Case 1....................................................................................................................................................14
Case Study 2:.........................................................................................................................................15
Difference between TQM and Six Sigma:..................................................................................................17
References.................................................................................................................................................19

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Fundamental concepts and aims with brief history:

Concept of TQM

Total Quality Management is an approach that guarantees all individuals from staff have an
influence in improving the procedure, items, administrations and culture of work. All out-Quality
Management standards are typically utilized at the bleeding edge level were administrative,
creation and low-level administrators are a lot of included.

Hence, the objective of Total Quality Management is to do the right things the first time
continuously, thereby saving the time the organization would have used in correcting errors.
Total Quality Management principles are beneficial to any organization because it reduces cost,
increases staff morale, reduces errors and increases customer satisfaction [ CITATION Mar98 \l
1033 ].

TQM Fundamental operational goals:

1. Careful design of the product or service.

2. Ensuring that the organization’s system can consistently produce the design.

History of TQM

Total Quality Management (TQM) originated in 1954 from the industrial sector of Japan.
However, its history dates back to the 1920’s. In the 1980s, this concept became more popular
and has been continually developed for use in Total Quality Management principles schools,
hospitals, hotels and other organizations. Nowadays, e-businesses are also employing the Total
Quality Management principles. The history of total quality management (TQM) began initially
as a term coined by the Naval Air Systems Command to describe its Japanese-style management
approach to quality improvement[ CITATION Rus01 \l 1033 ]. An umbrella methodology for
continually improving the quality of all processes, it draws on a knowledge of the principles and
practices of:

1. The behavioral sciences

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 2. The analysis of quantitative and nonquantitative data
3. Economics theories
4. Process analysis

[ CITATION Wal04 \l 1033 ].

TQM tools:

Classification of TQM tools

Qualitative tools: - consist mainly of subjective inputs, which often do not intend to measure
something of a numerical nature[ CITATION And06 \l 1033 ].

Quantitative tools: -involve either the extension of historical data or the analysis of objective
data, which usually avoid personal biases that sometimes contaminate qualitative tools.

The Seven Basic Tools of Quality (7 QC Tools) originated in Japan when the country was
undergoing major revolution in quality standards. It had become a required theme as a
component of Japanese's modern preparing program. These devices have basic graphical and
factual procedures which are useful in settling basic quality related issues[ CITATION Geo06 \l 1033
].

The seven QC tools are:

Stratification (Divide and Conquer)

It is a strategy for separating information into sub–classes. From that point forward, one needs to
arrange it dependent on different parameters into gatherings and sub-gatherings. It helps in
determining significant data and dissect the current issue. It helps in isolating the information
and determining significance out of it to take care of an issue[ CITATION Tor06 \l 1033 ].
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Histogram

Karl Pearson introduced Histogram. It is a bar graph representing the frequency distribution on
each bar. Histogram helps in prioritizing factors and identify which are the areas that needs
utmost attention immediately. It encourages us to contemplate the thickness of information in
some random circulation and comprehend the components or information that recurrent all the
more frequently[ CITATION Tor06 \l 1033 ].

Check Sheet (Tally Sheet)

It records down all the significant information focuses and occasions. At that point it presents
them in a plain organization. In this way, it continues refreshing or denoting the status on their
event which helps in understanding the advancement, imperfection designs and even reasons for
defects[ CITATION Geo06 \l 1033 ].

Pareto chart (80/20 Rule)

This is named after Vilfredo Pareto. It revolves around the concept of 80-20 rule which
underlines that in any process, 80% of problem or failure is just caused by 20% of few major

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factors which are frequently referred as Vital Few, while staying 20% of issue or disappointment
is brought about by 80% of numerous minor variables[ CITATION Rus01 \l 1033 ].

Pareto charts help experts in following ways:

 Distinguish between vital few and trivial many.

 Displays relative importance of causes of a problem.
 Helps to focus on causes that will have the greatest impact when solved.

Cause-and-effect diagram (“fishbone” or Ishikawa diagram)

Cause–and–effect diagram introduced by Kaoru Ishikawa helps in identifying the various causes
(or factors) leading to an effect (or problem) and also helps in deriving meaningful relationship
between them. First utilized by Ishikawa during the 1940s, they are utilized to distinguish the
fundamental side effects of an issue or "impact" as a method for finding the underlying
driver[ CITATION Tor06 \l 1033 ].

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Scatter diagram (Shewhart Chart)

Scatter diagram or scatter plot is basically a statistical tool that depicts dependent variables on Y
– Axis and Independent Variable on X – axis plotted as dots on their common intersection
points. Very purpose of scatter Diagram is to establish a relationship between problem (overall
effect) and causes that are affecting[ CITATION Mar98 \l 1033 ].

Control chart

Control chart is also called as Shewhart Chart named after Walter A. Shewhart is basically a
statistical chart which helps in determining if an industrial process is within control and capable
to meet the customer defined specification limits[ CITATION Wal04 \l 1033 ].

TQM Implementation:

Toyota Motors: The King of Total Quality Management

Total Quality Management (TQM) would not be what it is today without Toyota Motors.

Renowned for its lean production system, Toyota Motors is the tenth most important company in
the world according to Fortune Global 500 and one of the only companies on the list to directly
address TQM. Toyota Motors Co., Ltd. has received various prestigious awards for quality
management, including the Deming Application Prize in 1965 and the Japan Quality Control
Award in 1970. For Toyota, TQM is based on the concept of “customer first”, kaizen meaning
continuous improvement and “total participation” which means the involvement and input of all
employees. In 1951, Toyota launched the Creative Idea Suggestion System to support and
encourage employees in making effective contributions to the company’s development. Toyota
introduced Statistical Quality Control (SQC) in 1949. The company also makes great efforts to
give back with community-based projects and environmental initiatives[ CITATION Wil09 \l 1033 ].

History of TQM at Toyota

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Understanding the magnitude of the company’s contribution to overall total quality management
is a great feat. First of all, one must look back at history

The Industrial Revolution marked a turning-point in the manufacturing industry with the
introduction of assembly-lines and mass production. It marked a time of innovation and Japan
wanted to compete – so it «put the call out for inventors». Another turning-point in TQM was
during the Second World War. Weapon-manufacturing, especially in the U.S., required the
optimization of manufacturing machinery, goods and statistical methods to keep track of
production. Although the U.S. took part in the development of Quality Control methods,
industrial engineers and statisticians who wanted to implement new techniques were often
overlooked because Quality was associated with a greater effort and restrictive
regulations[ CITATION McC09 \l 1033 ].

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Case Study of TQM:
Case Study 1:

CARCOM: THE TQM INITIATIVE

'Carcom' is a supplier of automotive safety components employing around 700 staff which is
located on two sites in Northern Ireland. The company was originally American owned but after
a joint venture with Japanese partner in the late 1980s, it was eventually bought out by the latter.
The quality initiative began in 1988-89 with a five-year plan based on the Kaizen philosophy,
this concept having been picked up from the Japanese partner. This was driven by senior
management in response to what they saw as increasing customer demand and operating
considerations. The achievement of ISO 9001 registration in 1990 brought together processes
carried out by departments which had previously been undertaken in isolation. The company is
now focusing on Kaizen with the principles of improvement, customer delight, systems focus
and participation. A range of quality management tools and techniques are used. A TQM steering
committee is responsible for overall direction but there is also a further steering committee to
oversee implementation of the Quality Improvement Teams (QITs) as well as a full-time
coordinator. There are teams of shop floor operators based on natural workgroups, and these tend
to focus on product problems and environmental issues (such as working conditions). In contrast,
Kaizen teams focus on process improvements (for example, die change) and problem-solving
workgroups are established in response to specific customer concerns (for example, warranty
claims). The Impact of the TQM Initiative While it is still early days, the initiative is already felt
to have had a major impact. Addressing the problem-of absenteeism, and supporting line
management by helping to change employee attitudes/organizational culture. In addition, the
function has provided appropriate training programmers for quality, in which there has been
considerable investment in time and resources, it has counseled the mentors to the QIT, and
ensured that managers communicate with staff by providing advice on the best means of doing
this. Quality principles are also being developed in relation to the human resource function, with
specific targets being set (for example, for absenteeism) as well as more general aims (for
example, on training)[ CITATION Eva12 \l 1033 ].

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Case Study 2:

Automotive Springs Manufacturer,

UK TQM helps SME auto manufacturer reduce defectives.

A UK manufacturer of automotive springs began implementing a total quality program in the

early 1990s. The manufacturer established systems that included training, quality assurance, and
a comprehensive data collection and measurement system linked with business and departmental
objectives. The measurement system, under the Quality Operating System (QOS), monitored
three major performance indicators: parts per million (ppm), failure to meet customer demand,
and Due Date Performance (DDP). Operatives were empowered to carry out improvements
throughout the cell manufacturing set up; the use of quality tools helped mound a culture of
quality consciousness amongst employees. Self-assessment was carried out and advanced quality
planning tools, Statistical Process Control (SPC), and a Quality Assurance (QA) system were
implemented. The quality implementation framework had three main components [ CITATION
Eva12 \l 1033 ]:

Questions:

1) Organizational elements affected by TQM implementation.

2) Quality initiatives to improve the organizational elements.

3) The goal or aim of the whole process.

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Concept of Six Sigma:

Six Sigma is a method that provides organizations tools to improve the capability of their
business processes. This increase in performance and decrease in process variation helps lead to
defect reduction and improvement in profits, employee morale, and quality of products or
services.

In recent years, Six Sigma has evolved into a more general business-management philosophy,
focused on meeting customer requirements, improving customer retention, and improving and
sustaining business products and services. Six Sigma applies to all industries. Many vendors,
including Motorola itself, offer Six Sigma training with the special certifications carrying the
names of yellow belt, green belt, and black belt[ CITATION Rus01 \l 1033 ].

History of Six Sigma:

In 1986 Six Sigma approach was approached. It was developed by Bill Smith of Motorola Inc.
On January 15 of the following year Motorola launched a program named “Six Sigma Quality
Management Program” and achieved remarkable success in their quality management sector.
Following the success of Motorola, Allied Signal in 1992 and General Electric in 1995 used this
technique and gradually it became a useful management strategy in the corporate world.
Motorola’s Six Sigma quality concept was named so because it required the natural variation of
processes (± 3 standard deviations) should be half their specification range. In other words, the
specification range of any part of a product or service should be ± 6 the standard deviation of the
process. The Greek letter sigma (σ) is often used to indicate the standard deviation of a process,
hence the Six Sigma label[ CITATION Wil09 \l 1033 ].

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Six Sigma Tools:

In some region, 5S is modified to 6S. Where, the 6th ‘S’ stands for ‘Safety’

The 5S

For Six Sigma, 5S can be priceless for lessening waste. High-performing procedures and
working environments are constantly described by association and neatness. The general purpose
is to diminish or keep out waste, and the strategy that causes you with that is called 5S. Five S is
a reasonable procedure that is moderately simple for individuals to comprehend and get their
arms around. Five S is a reference to five Japanese words that have been converted into English.
The method is frequently described, mistakenly, as a "normalized cleanup." It is more than that.
Five S is a technique to sort out and deal with the workspace and work stream with the purpose
of improving effectiveness by wiping out waste, improving work process and decreasing
procedure wasteful aspects.

The 5S’s are:

 Sort (Seiri)
 Set In Order (Seiton)
 Shine (Seiso)
 Standardize (Seiketsu) and
 Sustain (Shitsuke)

1S: Sort (Sei-ri):

Evacuation of the superfluous parts/things/records and different items in the work environment.
This may incorporate filing and erasing out of date and unessential documents/envelopes in your
PC. In this way, 5S can be utilized in any event, for IT, back office and other Office based

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working environments, if the key ideas driving the technique is appropriately comprehended and
tweaked to the workspace.

2S: Set In Order (Sei-ton)

When the undesirable stuff is cleared, the subsequent stage is to sort out and orchestrate the
leaving things in a slick and effectively available way. This progression makes the processers life
simple by helping him to invest a greater amount of his energy in profitable assignments and not
sitting around in scanning for things/objects.

3S: Shine (Sei-so)

After the things are maintained in control, the whole working environment ought to be cleaned to
give a slick and new appearance. This brings a feeling of inspiration and eagerness to
representatives who utilize the working environment. It likewise assists with keeping up security
and cleanliness in the working environment.

4S: Standardize (Sei-ketsu)

The subsequent stage is to bring to routine practice the over three stages. Rule, possession and
recurrence of each progression for reiteration ought to be characterized dependent on the work
environment territory and the idea of work that is being done.

5S: Sustain (Shit-shuke)

The last and significant advance is to support the progressions and upgrades brought careful
usage of 5S. The administration ought to distinguish ways like having reports set up for 5S
stages, booking reviews in shock, perceiving and compensating groups for continued 5S work
place and so on.

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Six Sigma Projects by Industry

Finance

 Reducing Underwriting Resubmits by Over 20% (Project Storyboard)

Government

 A Call to Change: Pioneering Lean Six Sigma at Los Angeles County (Project Summary)
 Can Six Sigma Be Applied in County Government? (Project Summary)
 How the City of San Antonio Increased Payments for Street Maintenance Using Lean Six
Sigma (Project Storyboard)
 Reducing Bid Tab Creation Cycle Time by 22% (Project Storyboard)
 Reducing Cycle Time for Natural Disaster Response by 50% (Project Storyboard)

Manufacturing

 Increasing First Run Parts From 60% to 90% With Lean Six Sigma (Project Storyboard)
 Reducing Bent/Scratched/Damaged (BSD) Scrap for Building Envelopes (Project
Storyboard)
 Reducing Lead Time in Customer Replacement Part Orders by 41% (Project Storyboard)
 Reducing Learning Curve Ramp for Temp Employees by 2 Weeks (Project Storyboard)
 Reducing Purchase Order Lead Time by 33% Using Lean Six Sigma (Project Storyboard)
 Herding Cats Using Lean Six Sigma: How to Plan for and Manage the Chaos of Parallel
Processes (Project Storyboard)
 Six Sigma Increases Daily Meat Production by 25% (Project Storyboard)

Nonprofit

 Lean Six Sigma Helps Feed People In Need 45% Faster (Project Storyboard)

Technology

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  Accelerating Lean Productivity with Immersive Collaboration (Project Summary)
 Reducing Incorrect Router Installations by 60% for Call One (Project Storyboard)
 Reducing Software Bug Fix Lead Time From 25 to 15 Days (Project Storyboard)

Case Study on Six Sigma:

Case 1
A CASE STUDY FROM SWEDEN

Purpose: The aim is to examine if the joint-use strategy of Lean Six Sigma can improve
flexibility, robustness, cost-efficiency, and agility at the same time.A problem statement was
made, as well as an analysis of profitability. The lead-time was 80 hours for 98% of the products;
the median was 42 hours, or 66% within 72 hours and only 47% within 48 hrs. The
measurements were based on a production volume of 900 units a week during four shifts. Having
set waiting time at a perceived reasonable level, using the SMART (Specific, Measurable,
Accepted, Reasonable and Time Set) method of setting targets and then simulating values.
Figure 1 shows a simulation of a reasonable value for future lead times. The optimal value of the
lead-time is 48 hours or less for 98% of the products.

Another reason why it would have been difficult to achieve the same results is that the Six Sigma
strategy includes a better framework for project management, providing project members with
comprehensive training and a clear project management structure, as well as middle management
involvement and a result orientation from senior management. The result shows that the Six
Sigma strategy is suitable for making processes more flexible, robust, and cost-efficient.
However, when the Six Sigma project is finished, the last phase of the Lean strategy (perfection)
is appropriate to make the process flexible, robust, and efficient over time. This phase includes
waste removal, preventive maintenance, visual management system, continuous improvement,
and self-governing teams. Therefore, the Lean Six Sigma strategy ensures more flexible, robust,
and cost-efficient processes over time. However, to make the processes agile to sustain in
changing environment, requires something more. This could include training the staff,
strengthening the company culture, and collaborating with the key partners in the supply
chain[ CITATION Geo04 \l 1033 ].

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Case Study 2:

Boeing

Boeing’s Six Sigma team in Everett, WA discovered that root because analysis is often like
finding a needle-in-a-haystack, especially for the maker of the world’s largest commercial twin-
engine airplane with millions of components. (To read the entire story, click the following link:
Problem-solving approach helps team pinpoint solution). Boeing discovered that recirculating
air fans were being rejected during production, costing Boeing money in waste, removal, testing,
and cost of replacing the component.

Boeing assembled a cross-functional ‘detective squad’ that included employees from

Engineering, Quality, Manufacturing, Supply Management, Procurement, and their supplier
Hamilton Sundstrand who began the problem-solving techniques of the DMAIC process by
examining data from the fans and beginning root-cause analysis. This analysis determined that
Foreign Object Debris (FOD) damaged the fans and the test tools[ CITATION McC09 \l 1033 ].

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Similarities between TQM and Six Sigma:

 First, supervisors in the administration division must understand that not at all like in the
assembling area, there are various procedures in the banking and budgetary
administrations organizations (administration part) that are of changing multifaceted
nature and various degrees of customization. For example, a mechanical production
system in an assembling industry is a case of a profoundly standard procedure that can
embrace a quality structure.
 In any case, in the financial division, there are a few procedures that are exceptionally
unpredictable and don't loan themselves to normalization similarly that a procedure in the
assembling segment does. Thus, the test for the administration part is to consider which
procedure can be mass-altered implying that the procedure is the equivalent for all clients
and in all conditions and afterward apply the quality structures to accomplish process
greatness.
 A case of a mass modified procedure in the financial business or besides any assistance
division organization would be the finance and the Visa bookkeeping forms that loan
themselves to normalization. Likewise, in an inexpensive food chain, the procedures loan
themselves to a high level of normalization and subsequently these can chose for use of
the quality systems.
 The second factor to be considered is one of the cardinal principles of exceptional
control: To define what's a illness and the way is one going to measure it? In production
industries it's miles often easier to spot defects as visual inspection or maybe advanced
first-class control methods can often spot defects as they relate to the high-quality of the
product manufactured.
 However, in service companies, defining a illness is a task as the conflict between nice as
demanded by means of the customer and the satisfactory of the service as offered by
means of the carrier provider are two extraordinary things. Owing to the perceptual

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 nature of arriving at an understanding of what a disorder is, it's miles regularly useful to
outline the defects in terms of customers lost, purchaser pleasure ratings and service
turnaround times.

Difference between TQM and Six Sigma:

 Both Six Sigma and Total Quality Management are effective gear for first-rate
management however a thin line of difference does exist between them. Although the
methodologies and methods concerned in both the two appear quite similar however there
are certain important differences.
 Six-Sigma is a incredibly newer concept than Total Quality Management but not exactly
its replacement. The primary difference between Total Quality Management and Six
Sigma is that TQM promises superior satisfactory manufactured goods whereas six sigma
on the other hand outcomes in better results. Total Quality control refers to continuous
effort through personnel to make certain high excellent products. The procedure of Six
Sigma carries many small changes inside the systems to make certain effective
consequences and higher purchaser satisfaction.
 Total Quality Management entails designing and developing new systems and approaches
and guarantees effective coordination among numerous departments. New Processes are
developed based totally on various patron feedbacks and researches.
 The method of Total satisfactory control does attain to a saturation stage after a positive
period of time. After achieving the saturation stage, no further improvements in nice may
be made. Six Sigma alternatively seldom reaches the saturation stage by way of starting
up a next degree excellent system.
 The procedure of Total excellent control involves improvement in existing guidelines and
methods to ensure high pleasant. Six-Sigma specializes in improving pleasant through
minimizing and eventually getting rid of defects from the system. The system of total
Quality control guarantees that every single member associated with the enterprise is
working in the direction of the improvement of existing methods, systems, offerings and

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 work lifestyle for lengthy term satisfactory products/services. Six Sigma, alternatively
focuses on first figuring out and subsequently removing various defects and barriers
which would possibly come in the manner of employer’s success.
 Total Quality management is a less complicated manner than Six Sigma. Six-Sigma
entails specifically trained individuals whereas general pleasant control does not require
sizeable training. The system of Six Sigma creates unique levels for personnel who are
simplest eligible to put in force the same. Employees educated for Six Sigma are
regularly certified as “Green Belts” or “Black Belts” relying on their level of proficiency.
Six-Sigma requires participation of best certified professionals while general satisfactory
management can be stated a component time hobby which does no longer require any
unique training. Six-Sigma can be implemented by way of devoted and well-trained
specialists.

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References
Andersson, R. E. (2006). total-quality-management. Retrieved from TQM, Six Sigma and Lean, The TQM
Magazine: https://www.cgma.org/resources/tools/essential-tools/quality-management-
tools.html

Evans, J. (2012). Europeanceo. Retrieved from Total quality management: three case studies from
around the world: https://www.europeanceo.com/business-and-management/total-quality-
management-three-case-studies-from-around-the-world/

George, M. a. ((2004)). SIX SIGMA STRATEGY: A CASE STUDY FROM SWEDEN. Retrieved from
https://www.diva-portal.org/smash/get/diva2:736303/FULLTEXT01?
fbclid=IwAR1TYoo_GYbVZGVGjN9eJ3S5JspkVHuqm5vmo6jnsFDBjrEcJnwfe9fAriI

George, M. R. (2006). TQM History. Retrieved from Six Sigma - The Pragmatic:
https://www.ifm.eng.cam.ac.uk/research/dstools/tqm-tools/

Martínez, L., R, A., & Dewhurst. (1998). Total Quality Management: Origins and Evolution of the Term.
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McCurry L., a. M. (2009). HISTORY OF TOTAL QUALITY MANAGEMENT. Retrieved from HISTORY OF
TOTAL QUALITY MANAGEMENT: https://asq.org/quality-resources/total-quality-
management/tqm-history

Torstensson, H. ( (2006)). TQM tools. Retrieved from Quality tools and techniques:
https://www.researchgate.net/profile/Dr_Ramesh_Nagarajan/publication/264834875_TQM_to
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Walter , S., & Philip , B. (2004, May). tqm-quality-resources. Retrieved from HISTORY OF TOTAL QUALITY
MANAGEMENT: https://asq.org/quality-resources/total-quality-management/tqm-history

Westcott, R. (2001). The certified quality manager handbook. In ASQ Quality Press. Milwaukee, WI: ASQ
Quality Press.

Wilson, S. (2009, May). Business Initiative Directions Blog. Retrieved from http://blog.bid-
org.com/toyota-motors-the-king-of-total-quality-management/#:~:text=Total%20Quality
%20Management%20(TQM)%20would,is%20today%20without%20Toyota%20Motors.&text=For
%20Toyota%2C%20TQM%20is%20based,and%20input%20of%20all%20employees.

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