MANAGEMENT CONCEPTS

From:-

Nitesh Arora Tanmoy mandal Subhojit Section B

PRESENTATION ON

TOTAL QUALITY MANAGEMENT (TQM)

Total Quality Control:The total quality control is an effective system for integrating the quality development, quality maintenance and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economic levels which allow for full customer satisfaction. It involves every member of any business organization from top executive to the person on the lowest rung of the organization hierarchy, in solving quality, cost and production problems. It binds all the departments of the organization with a two way flow of information. Total Quality Management:Total Quality Control considers the role of the employees in improving the productivity; however it remains silent about the quality of the work life, employees satisfaction through participation and involvement and consequently the image of the organization. The holistic view which takes into its fold all these factors along with total quality control is termed as Total Quality Management. It is the system of establishing defect prevention actions and attitudes within a company or organization on a permanent basis for the purpose of assuring conforming products and services directed at full customer satisfaction.

Comparison between TQM Approach and Traditional Approach:TQM Approach -There are no workers, no managers, there are only facilitators and team members. Traditional Approach -All blue collar employees are normally workers, senior white collar employees are managers. -Employees join voluntarily to -Workers participation must look at problems. be legislated. -Involvement and not participation is the key word. -Participation because it is Involvement means:- convenient for bargaining. (participation+commitment+p ride)

BELIEFS

BEHAVIOURS

-Integrated, cooperative Style. -Workers are empowered to do what is right -Family oriented relationship where everyone gives his best.

-Conflict wins loose style. -Each fights on who is right. -Economic relationship where everyone gives only as he gets.

VALUES

-Openness -Trust -Discipline -Patience

-Secretive -Distrust -Lack of discipline -Short sightedness

Evolution of quality management:There have been five major stages in this evolution. Each stage has taken roughly twenty years period from its inception to realization. (i)Operator inspection:- It was inherently in the manufacturing sector up to the end of the nineteenth century. Under that system the worker or a very small number of workers were responsible for the manufacture of the entire product and inspected for their work to the finish. (ii)Foreman verification:- During this period large scale advent of the factory system brought many workers doing similar work under the supervision of a foremen, who assumed the responsibility for the quality of their work. It involved inspection by worker and foreman. (iii) 100% inspection:- The manufacturing system becomes more complex involving large number of workers reporting to each production foreman. As a result full time inspectors appeared on the scene, with a separate superintendent. This was termed as Inspector quality control. (iv) Statistical quality control:- This phase is an extension of inspection phase which boiled down to make a big inspection organization more efficient. The most significant contribution of SQC was that it provided sampling inspection rather than 100% inspection.

TQM(SPS) TQC(SPC) (SQC)STATISTICAL SAMPLING INSP. QC DEPTT. 100% INSP. FOREMAN VERIFICATION OPERATOR INSPECTION 1890 2000 1920 1940 1960 1980

QUALITY EVOLUTION PROCESS

(v)Total Quality control:- In this phase quality was assured. The theme of industrial inspection activity was bad parts shall not pass. The theme of new approach was make them right at the first time. The emphasis was on preventing defects so that routine inspection would not be needed in the context of sorting but for improved process.
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It was recognized that the entire manufacturing process must be committed to meet the quality needs of the design. (vi) Total Quality Management:- After TQC comes in the TQM. The problems have arisen in the adoption of TQC, as TQC is supposed to be a company wide movement but, actually, is largely limited to the manufacturing department. And also it remains silent about the quality of the work life, employees satisfaction through participation and involvement and consequently the image of the organization. So the concept of TQM comes in. The TQM provides a distinctly different way of looking at the management style. It develops a participative culture where each employee can directly participate in areas relating to his work and decisions concerning his work. It is an approach to improve the effectiveness and flexibility of an organization as a whole. It basically aims to involve every person in every department of an organization working together to eliminate errors and prevent waste. This improved performance is directed towards satisfying cross functional goals as quality, cost, manpower development, quality of work life, etc. These activities ultimately lead to increased customer and employee satisfaction.

TQM Philosophies
There are few lessons to be learnt from the Japanese experience. The effective use of human resources by having great respect for their contribution in business is one of them. In fact what Japanese have achieved is effective blend of two schools of thought, i.e. (i) the engineering approach to work propagated by Fredrick Taylor (ii) human relations movement. This approach includes appreciation of humans knowledge, respecting their pride and encouraging them to control their work environment and holding them responsible for their own quality standards. It has to be widely recognized that the prominence of TQM today is due to a small number of people without whose contribution business would have still perhaps carried on making the same mistakes, with the same levels of ineffectiveness and with similar percentage of waste. As a philosophy of modern business TQM will probably carry on evolving and introducing new concepts and principles. The various philosophies are given in brief:-

WE Deming
Deming was convinced that the purpose of using quality management technique is to help companies stay in business and strongly believed that quality improvement has to be management led. The management responsibilities lies in (i) (ii) creating positive climate for quality improvement emphasizing on knowledge workers.

He advocated the Deming Cycle i.e. plan, do, check, action (PDCA) for action by managers. Demings fourteen points are:(i)

Create consistency of purpose toward improvement of product and service, with the aim to become competitive and thus to stay in business, and to provide jobs.

(ii)

Adopt a new philosophy-we are in economic age. We no longer needs to live with commonly accepted delays, mistakes, defective materials and defective workmanship. Cease dependence on mass inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. End the practice of awarding business on the basis of price tag. Instead, minimize total cost, move toward a single supplier for any one item, on a long term relationship of loyality and trust.
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(iii)

(iv)

(v)

Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease cost.

(vi) (vii) (viii)

Institute modern method of training and education on the the job. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Drive out fear so that everyone may work effectively for the company. Break down barriers between departments.people of every department should work as a team, to see problems of production and in use that may be encountered with the product or the service.

(ix)

(x) (xi)

Eliminate slogans, exhortations and targets for the workforce asking for zero defects and new levels of productivity (a) Eliminate work standards (quotas) on the factory floor, substitute leadership. Remove barriers that rob the hourly worker of the right to pride of workmanship. The responsibility must be changed from sheer number to quality.

(xii)

(xiii)

Institute a vigorous progaramme of education and self development.

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(xiv)

Put everybody in the company to work to accomplish the transformation . The transformation is everybodys job (through company wide quality improvement).

Deming also warned about the obstacles which may inhibit the implementation of the fourteen principles. These have been referred to as the deadly sins or the deadly diseases and discussed below.
(1)

Lack of consistency Lack of consistency of purpose to stay in business by not planning to provide products and service in future with a specific marker in mind, in order to keep the company in business and providing for job creation. Short term profits growth . Short term thinking defeats

(2)

consistency of purpose to stay in business with long term Performance appraisal The defects of appraisal

(3)

(personal review system evaluation of performances, annual review, etc) are devastating.
(4)

Job-hopping Mobility of management causes instability, leads decisions being made by the people with little knowledge and understanding of business activities.

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(5)

Use of only visible figurers Management should not just refer to visible figurers. Although these are important, management should learn how to manage their business by taking a wider and more global approach (the figurers that are unknown are even more important).

J.M. Juran
Juran has contributed as much to total quality as Deming He raised pertinent question on the contribution of quality in reducing costs and improving standards. Juran,s approach to Quality Control and its management is twosided:
(i)

Companies mission in terms of fitness for use by providing products and services plus which of conform reliability, to customer availability, specifications, issues

maintainability, customer service, etc. (ii) The role of senior managers in providing leadership, in providing the required resources, in encouraging awareness and

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THE SPIRAL OF PROGRESS IN QUALITY

participation and

in developing systems of policy, goals, plans,

measures and controls for quality. Fitness for use is achieved by a process which reflects the interplay between the various stages or organisational activities before meeting customer demands.

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Philip B. Crospy
The essence of Crospy,s quality drive is prevention. He argues that quality is free. The costs are only related to the various obstacles which prevent workers from producing right first time. The major objective of organizations implementing total quality should be Zero Defect(ZD). There are two major problems which are the causes of poor quality in industry (i) those which are due to employees lack of awareness and knowledge and (ii) which are due carelessness and lack of attention. The former can be easily identified measured and solved but the latter need a long term management effort in changing culture and attitudes. Crosby proposes some guidelines for managers which he calls the four absolutes of quality of management viz. (i) (ii) (iii) (iv) Quality means conformance to requirements, Quality comes from prevention, Quality performances standard is zero defects, and Quality measurement is the price of non-conformance.

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Crosby thinks that companies performance is reflected by their managementss attitudes to quality. To achieve great improvement, management have to believe in the following points:

o o o

The conviction by senior managers that the quality is not a problem but an asset. The commitement that they will understand and implement the four absolutes of quality management. The conversion to quality culture from conventional thinking that had caused the problem in the first place. It takes a long time to transfer from conviction to conversion,

but that as soon as the transfer process begins it is a positive sign that improvement has started to take place. The Crosby approach to total quality is to change the culture and attitudes within organizations to implement continuous improvement. This approach is therefore more management oriented than tool oriented since it does not refer at all to the control of quality by the use of various statistical techniques. Crosby proposes a checklist with

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fourteen points which would facilitate the introduction of continuous improvement: Management commitment improvement programmed. Quality improvement team Bring together representatives of Help management recogniz that it

1.

must be personally committed to participating in a quality

2.

each department to form such a team. Quality measurement Determine the status of quality throughout the company. Cost of quality evaluation Establish the cost of quality to indicate where corrective action will be profitable for a company. Quality awareness material. Corrective action Bring problems to light for all to see and Share with employees the measurements of

3.

4.

5.

what non-quality is costing through training and communication

6.

resolve them on a regular basis.

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7. Establish an ad hoc committee for the Zero Defect programme. After a year has gone by a Zero defects Day will reaffirm managements commitment to the words Zero Defects and the thought that everyone should do things right the first time. 8. Supervisor training A formal orientation of the Zero defects programme with all levels of management should be conducted prior to its implementation. 9. Zero Defects Day Zero Defects as the performances standard of the company is established in one day to provide emphasis and long lasting impression. 10. Goal setting Regular meetings between supervisors and employees help people learns to think in terms of meeting goals and accomplishing specific tasks as a team. 11. Removal of error causes Individuals are asked to describe any problems that keep them from performing error free work. The appropriate functional group will develop an answer to those problems.

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12. Recognition Award programmmes are established to recognise those who meet their goals or perform outstanding acts. Awards should not be financial; recognition is what is important. 13. Quality councils Quality professionals and team chairpersons should meet regularly to communicate and determine actions to upgrade and improve the quality improvement programme. 14.Do it again Set up a new team of representatives and begin again to overcome the turnover and changing situations that can occur in the year to 18 months to implement the typical quality improvement programme.

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Here is the comparison using the concept of TQM.

JAPANESE MANAGEMENT

between Japanese management and

management of different countries as Japanese are the one who are

OTHER MANAGEMENT

COUNTRIES

Long term orientation. Collective decision making with consensus. Involvement of many

Short term orientation. Individual decision making. Involvement of few people in making and a decision. Decision making at top

people in preparing and making decision. Decision flow from botton to top and back. Slow decision making and fast implementation. Informal structure.

flowing down. Fast decision making and slow implementation. Formal bureaucratic organization structure. Loyality to the profession. Training and development undertaken with hesitation. Job security prevails.

organization

Loyality to the company. considered investment. a long term

Training an development

Life time employment.

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 Manager acts as a social facilitator member. Bottom up communication is there. Contol by peers. Control focus on group performance. Extensive use of QC circles. and group

Manager

acts

as

decision

maker and head of the group. Communication primarily top down. Control by superiors. Control focus on individual performance. Limited use of QC circles.

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Advantages of using TQM:1.By using TQM there is a improvement of product and services which helps in better satisfaction of customers. 2.Organisations aim to be more competitive and thus stay in business for a longer time and provide a job. 3.There will be a decrease in delays, mistakes, defective material and defective workmanship which in turn saves money and time of the organization and increases the moral of the workers. 4.Quality and productivity of the system increases which in turn increases the profit of the company and decreases the cost incurred. 5.Creates a homely environment in the organization which motivates the employees and workers of the company and force them to give there best to the company. 6. It reduces the system of quality inspection and sampling inspection as the funda of using TQM is produce things right at first time. 7.As it involves each and every worker of the organization and gives them a sense of responsibility too which makes them to work effectively.

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