Total Quality Management PDF

CHAPTER 1: INTRODUCTION TO TOTAL QUALITY MANAGEMENT they define it? Those who embrace the transcendental outlook would say, "I can't define it, but I know it when I witness it." Objectives...

CHAPTER 1: INTRODUCTION TO TOTAL QUALITY MANAGEMENT they define it? Those who embrace the transcendental outlook would say, "I can't define it, but I know it when I witness it." Objectives Advertisers are inclined to promote products in these terms. "Where Define quality. shopping is a pleasure" (supermarket), "We love to fly, and it shows" Identify primary elements, core concepts and benefits of total (airlines), "The great American beauty...its elegant" (automobile), quality management. and "It means beautiful eyes" (cosmetics) are examples. Television Distinguish between traditional management and TQM. and print media are flooded with such indescribable claims and Compare and contrast reengineering and TQM. therein lies the problem that quality is not easy to define or Total Quality Management (TQM) is not a fresh idea. The operationalize. It, therefore, becomes obscure when using the approaches advocated by Deming, Juran, Crosby, and others have approach as a source of competitive advantage. Besides, the long been used by well effective managers. The most noteworthy functions of design, production, and service may discover it is feature is the level of mutual trust that is needed by both complicated to use the definition as a starting point for quality management and staff to create a culture in which an effective management. quality management program can be successful. Quality is currently everyone's task, not just the inspection department. People are 2. PRODUCT-BASED - Quality is observed as a quantifiable or anticipated to seriously weigh up their jobs and make the first move measurable characteristic or attribute. For instance, durability or to improve their part of the process. Open, objective measurements reliability can be measured, and the engineer can draw that are necessary. yardstick. Quality is concluded objectively. Although this approach has many benefits, it has limitations as well. The yardstick for TOPIC 1: DEFINING QUALITY treasurement may be deceptive, where quality is founded on individual taste or preference. Quality is a lot more than the nonexistence of defects which allows companies to meet customer expectations. Quality 3. USER-BASED - This definition is founded on the idea that quality is needs-controlled process improvement, allowing companies to an individual issue and products that best please their preferences exceed customers' expectations. Quality will let companies (perceived quality) are those with the highest quality. This is an re-establish pride and loyalty in their organizations. Quality can only approach based on reason but directed to two problems. First be attained by the nonstop improvement of all systems and consumer preferences differ extensively, and it is not easy to processes in the organization, not simply the production of products combine these preferences into products with broad demand. This and services but also the design, development, service, purchasing, leads to the selection between a niche strategy and a market administration, and, indeed, all aspects of the transaction with the aggregation approach which strives to identify those product customer. Each one must work in concert toward a similar end. attributes that support the needs of the biggest number of Quality can only be observed through the eyes of the customers. Another problem concerns whether the quality and customers. An understanding of the customer's expectations customer satisfaction are the same. Probably not. One may confess a (effectiveness) is the first step: Then exceeding those expectations Montero has many quality attributes, but contentment may be (efficiency) is required. Communication will key. Going beyond better realized with an Adventure. One has only to remember the customer expectations guarantees meeting all the definitions of box office success of recent motion pictures that endure poor quality. quality but are obviously favored by the largest number of Different people understand quality in a different manner. moviegoers. Hardly anyone can describe quality in quantifiable terms that can be operationalized. The banker may differentiate their products or 4. MANUFACTURING-BASED - The definition is focused mainly on service with "service"; for the health care worker, it is "quality health engineering and manufacturing practices and uses the universal care"; for the hotel or restaurant employee, it is "customer definition of "conformance requirements." Requirements or satisfaction"; and for the manufacturer, it is simply "quality specifications are launched by design, and any difference involves a product." decline in quality. The concept is relevant to services as well as A few individuals can provide a specific definition and products. Superiority in quality is not automatically in the eye of the measurement of quality when pressured. There is an old saying in beholder but rather in the standards set by the organization. Thus, management that says, "If you can't quantify it, you can't manage it,' both Fortuner and Isuzu Max possess quality, as do Adventure and and it is also true with quality. Every member of the organization Innova, if the product or service "conformance requirements" are should be clear about its concept, definition, and measurement as it met. This approach has a serious weak point. The consumer's applies to his/her job if the strategic management system and the perception of quality is compared with conformance and thus is competitive advantage are to be based on quality. Appropriate internally focused. Stress on reliability in design and manufacturing quality can be identified or perceived in a different way in the same is inclined to attend to cost reduction as the objective. Cost company. reduction is perceived in a limited way which is to invest in design and manufacturing improvement until these incremental costs equal TOPIC 2: APPROACHES TO QUALITY DEFINITION the costs of non-quality like rework and scrap. This approach goes against Crosby's concept of "quality is free." In his book Managing Quality, Harvard Professor David Garin summarized five principal approaches to defining quality, namely: 5. VALUE-BASED - It is defined using costs and prices as well as the number of attributes. Hence, the consumer's purchase decision is 1. TRANSCENDENT - Most people would agree that the Mona Lisa or founded on quality at an up-to-standard price. This approach is Michaelangelo's David are works of art that represent quality based on two criteria which are quality and value. The highest because people travel from around the world to view them. But can quality product is not typically the best value. That description is given to the "best-buy" product or service. TOPIC 4: QUALITY LEVELS TOPIC 3: QUALITY TYPES In general, quality is meeting and exceeding customer expectations A quality-focused organization must evaluate at three levels, at a price that he is willing to pay to possess the product or service. namely organization, process, and individual. Quality systems and There are three types of quality which are quality of design, quality standards must be defined at each level and then managed quality of conformance, and quality of performance. through improvement efforts. The organization, process, and individual are co-dependent and are linked together in a total 1. QUALITY OF DESIGN - Quality of design is all about set system that eventually decides the quality of products and services characteristics that the product or service must minimally have to of an organization. Having received faulty parts from a customer satisfy the requirements of the customer based on market research. would mean a problem at any or all levels. Perhaps an operator has Thus, the product or service must be designed in such a way as to assembled the faulty part incorrectly or allowed the faulty part to be meet at least minimally the needs of the consumer at a given cost. shipped. Or, probably there might be problems in the basic However, the design must be simple and also less expensive so as to processes such as design, production, order entry, or materials meet the customers' product or service expectations. Quality of acquisition processes. Organizations, represented by top design is influenced by many factors, such as product type, cost, management, could also be blamed because of not being able to profit policy, demand for the product, availability of parts and identify the quality necessary to be a competitive, inappropriate materials, and product reliability. strategy, unable to establish necessary policies, budgets, goals, and measures. This process of developing a product requires an effective exchange of ideas among marketing, sales, services, manufacturing, ORGANIZATION LEVEL research, and development departments. Market research and The organizational level quality requirements revolve around its service call analysis are at the center of this process. Market customers' quality requirements. A customer is anyone who receives research on consumers shall indicate the customer needs (current one or more of the organization's products or services, who could be and potential), and sales call analysis will provide an investigation internal or external. The following issues may help define quality at into problems customers face with product performance. this level: 2. QUALITY OF CONFORMANCE - Quality of conformance is basically 1. Products or services that meet customer expectations. meeting the standards or user-based characteristics defined in the 2. Products or services that do not meet customer expectations. design phase after the product is manufactured or while the service 3. Products or services that are needed by the customers but do not is delivered. It refers to the extent to which the firm and its suppliers receive. can manufacture products with an expected level of reliability and 4. Products or services that are not needed by the customers but uniformity at a specified cost with quality requirements based on they do not receive. the study made on quality design. This phase is also concerned with quality control, starting from raw material to the finished product. The resolution to these issues will include productivity and cost Three broad aspects are covered in this definition, namely defect requirements and those that are traditionally linked to quality. detection, defect root cause analysis, and defect prevention. Defect Timeliness, accessibility, and value for money are quality features for prevention deals with the means to deter the occurrence of defects a customer. During interviews, identified customer requirements are and is usually achieved using statistical process control techniques. converted into specific measures and then into performance Detecting defects may be done by inspection, testing, or statistical standards. data analysis collected from the process. Subsequently, the root causes behind the presence of defects are investigated, and finally, Most quality-focused organizations, aside from data gathering, use corrective actions are taken to prevent the recurrence of the defect. benchmarking to compare their functions with the same functions as other organizations. Benchmarking should be a continuing 3. QUALITY OF PERFORMANCE - Quality of performance is how concern to make certain that the organization employs ongoing sound the product functions or service performs when used. It improvement to compete and deliver demanded customer measures the degree to which the product or service pleases the requirements. Customer feedback is also essential to ensure that customer from the angle of quality of design together with the organizational quality management is a constant concern. Feedback quality of conformance. Meeting customer expectations is the focus on a regular basis must come from both internal and external of quality of performance. The automobile industry performs test customers. Standards coming from customer requirements must be drives of vehicles to gather information concerning mileage and oil the foundation for goal-setting. problem-solving, performance consumption. Bulbs are life tested to be aware of their reliability evaluation, incentive compensation, nonfinancial rewards, and throughout their useful life. A customer survey is carried out to resource allocation. discover customers' perceptions about the service rendered. If a product or service does not meet customer expectations, then modifications are considered necessary in the design or conformance phase. PROCEESS LEVEL the areas to be measured to qualify individual standards would At the process level, units of the organization are categorized into include accuracy, completeness, innovativeness, reliability, ease of functions or departments like marketing, operations, finance, use, timeliness, volume, rate, cost, and flexibility. human resource, and so on. Most processes are cross-functional, so managers can optimize the activities of their department and Three issues must be answered for each output of the individual sub-optimize the activities of the entire organization. The following tasks in order to develop individual qualities which are: issues may help define quality at this level: 1. The requirement of both internal and external customers 1. Products or services that are most important to external 2. The manner of measuring the requirements customers. 3. The specific standards for each measure 2. Processes that produce those products or services. 3. The key inputs to the process. Under the human performance system, the quality of each 4. Processes that have the most major effect on the organization's individual work or performance is shaped by these factors: customer- drive performance standards. 5. The internal customers and their needs. 1. The input an individual receives consists of how clear the performance expectations are, the reasoning of the work Defining quality at the process level starts with determining the procedures, the sufficiency of resources, the appropriateness of end-customer requirements for the process. End-customer skills and knowledge, and how clear the prompt cues performance. requirements should then be translated into specific measures that 2. The positive/negative results for performing as desired/not should drive one or more internal measures for the overall process. desired. These measures must be brought to the different sub- process and 3. The feedback an individual obtains, such as the nature of the sub-sub-process. The outcome is a set of meters, in addition to the information given, when and how frequently it is given, and the specific standards they produce, placed at key stages of the process manner in which it is provided. that will serve as the basis for monitoring each step's contribution to 4. An individual's physical, mental, and emotional capacity. process quality. The meters and standards will also be used for troubleshooting the system in case customer requirements are not met. Like managing organizational quality, it requires a search for improvement opportunities to handle process quality. As an example, a producer of electronic components faces a problem of excessive cycle time (the time from customer order to customer receipt of the product). The product was given to the customer late 83% of the time. Through developing a map and setting up performance measures, the company discovered that the largest fault was in other areas. A customer order to reach fabrication took 13 days. During most of the time, the order was hanging around for the next processing time. The initial process improvement attempt created a reduction in cycle time from 13 weeks to five weeks. Without suffering in product quality, the process continually improves, and cycle time has been reduced to 19 days only. TOPIC 5: QUALITY PARADIGMS PERFORMER/JOB/TASK DESIGN LEVEL Nearly all people desire to do high-quality work, but often they are 1. CUSTOM-CRAFT PARADIGM - In this paradigm, the focus is on the limited by systems that do not support it. It is vital to generate product or service, and performance should be exactly what the individual quality in the context of organization and process quality customer demands. Each product unit is designed and built exactly despite quality being broken at the individual level. The statistical the way the customer wants it. The requirements include skilled tools for instance are not appreciated by workers because the tools craftspeople, basic hand tools, and demand for a unique product. are used at the individual level without being connected to the Some examples of this pattern are bank loans, coffee shops, tailor overall needs of the system. shops, and furniture suppliers. Individuals are one of the vital components of the human 2. MASS PRODUCTION AND SORTING PARADIGM - Here, the focus performance system. At the micro level, they serve as a reflection of is on the production rate without the direct involvement of the the process and the system being used by the organization. customer. Products are designed and built based on how the Everyone under the human performance system accepts inputs, customer defines the products. Rework and scrap are obvious since generates outputs, and then adjusts his performance from the product performance is low. Sales are taken from the stock held, feedback obtained. which makes delivery time typically low. Service organizations under this paradigm are labor-intensive. The requirements consist of Developing standards to measure each individual key output is a interchangeable parts, factory power, an unskilled labor pool, a large necessity to define individual quality. The standards created from customer pool, and hard-selling. Some examples of this pattern are organization and process levels should be the basis for these automobile parts and readymade buildings for commercial standards to be developed. Productivity and cost are the enterprises. requirements for customer-driven quality. With these requirements, 3. STATISTICAL QUALITY CONTROL PARADIGM - This paradigm is comparable to the mass production and sorting paradigm except c. Quality assurance - planning and continuance of the quality that more emphasis is given to production processes. The system. application of this paradigm, together with mechanized production, d. Training - development, preparation, and continuance of results in low scrap and rework and low production costs. Products programs. are designed and built, statistical process control and statistical sampling are used, and then customers are generated. The 2. APPRAISAL COST - These costs are associated with measuring and requirements comprise interchangeable parts, factory power, monitoring activities related to quality standards and performance unskilled labor pool, large customer pool, hard-selling, and statistical requirements. These costs take place from spotting defects rather methods. Some examples of this pattern are automobile parts and than prevention. These costs are associated with the suppliers' and electronic components. customers' evaluation of purchased materials, processes, products, and services to ensure that they conform to specifications. They 4. TOTAL QUALITY MANAGEMENT PARADIGM - This paradigm could include: focuses on customers and suppliers in addition to mass production and statistical methods. Possible customers participate in product a. Verification - checking of inward-bound material, process setup, definition, creation, and performance evaluation stages to inform and products against contracted specifications. the producer what to design and build. Using employee involvement b. Quality audits - confirmation that the quality system is operating and empowerment, customer-focus continuous improvement, top properly. management commitment, training, and teamwork, the producer c. Supplier rating - appraisal and endorsement of suppliers of successfully delivers a product the customers want. This paradigm products and services. results in high-quality products, low cost, speedy delivery, and a substantial decrease in rework and scrap. The requirements contain 3. INTERNAL FAILURE COSTS - These costs are acquired to treat interchangeable parts, factory power, statistical methods, defects revealed earlier when the product or service is delivered to empowered employees, supplier partnerships, and customer the customer. These costs happen when the results of work fail to relationships. Some examples of this pattern are from the attain design quality standards and are noticed before they are products/services of TQM companies. transferred to the customer. They could include: 5. TECHNO-CRAFT PARADIGM - This paradigm is the socio-technical a. Waste - performance of needless work or holding of stock as an complement to the custom-craft paradigm with the intention of outcome of errors, poor organization, or communication. reducing delivery time. Each unit is designed and built exactly the b. Scrap - a faulty product or material that cannot be repaired, used way the customer wants it built using a high level of product process or sold flexibility. The requirements incorporate interchangeable parts, c. Rework or rectification - improvement of flawed material or factory power, statistical methods, empowered employees, supplier errors partnerships, customer relationships, customer-aided design, and d. Failure analysis - activity necessary to ascertain the reasons for an customer-aided manufacturing. Some examples of this pattern are internal product or service failure. from the software and apparel industries. 4. EXTERNAL FAILURE COSTS - These are costs obtained to treat TOPIC 6: COST OF QUALITY defects exposed by customers. These costs occur when products or services that fail to attain design quality standards are not Cost of quality is a method that permits an organization to decide on discovered until after transfer to the customer. They could include: the level to which its resources are used for activities that avoid poor quality, that assesses the quality of the organization's products or a. Repairs and servicing of both returned products and those in the services, and that results from internal and external failures. An field. organization is able to determine the potential savings to be gained b. Warranty claims - failed products that are replaced or services by implementing process improvements having such information. that are re-performed under guarantee. c. Complaints - all work and costs connected with handling and Quality-related activities that incur costs may be divided into servicing customers' complaints. prevention costs, appraisal costs, and internal and external failure d. Returns handling and investigation of discarded or recalled costs. products, including transport costs. 1. PREVENTION COSTS - These are incurred to prevent or avoid There are two main components of the cost of quality which are failure problems. Prevention activities lead to reduce in failure and the cost of conformance and the cost of non-conformance. Cost of appraisal costs. These costs are associated with the design, conformance is the cost of making available products or services implementation, and maintenance of the quality management based on required standards. Simply it is a good amount spent, such system. They are planned and incurred before the actual operation, as prevention and appraisal costs. Cost of non- conformance means and they could include: failure costs linked with a process not functioning based on required standards. Simply it is a pointless amount spent like internal and a. Product or service requirements - establishment of qualifications external costs. Essentially quality costs are defined as the total for inward-bound materials, processes, finished products, and costs acquired by investing in the prevention of non-conformance to services. requirements and appraisal of a product or service for conformance b. Quality planning - drawing of plans for quality, reliability, to requirements and failure to meet requirements. operations, production, and inspection. TOPIC 7: DEFINING TOTAL QUALITY MANAGEMENT TOPIC 8: THE PRIMARY ELEMENTS OF TQM Total Quality Management (TQM) is an all-inclusive and Quality is a necessary parameter that helps organizations outshine well-thought-out means of organizational management that their competitors and survive the fierce competition. searches to advance the quality of processes, products, services, and culture through continuing minor changes in reply to constant The achievement of TQM depends on the following eight elements, feedback. TQM consists of continuous process enhancement which are further classified into the following four groups. activities concerning managers and workers alike in an organization in a completely integrated effort toward improving performance at Foundation all levels. This enhanced performance is aimed at satisfying such The entire process of total quality management is built on a strong cross-functional goals as quality, cost, schedule, mission, need, and foundation of ethics, integrity, and trust. TQM involves every single suitability. TQM combines basic management techniques, current employee irrespective of his designation and level in the hierarchy. improvement efforts, and technical tools in a disciplined approach focused on continuous process improvement. The activities are 1. ETHICS - Ethics is a combination of written and unwritten codes of eventually focused on improved customer satisfaction. principles that govern decisions and actions within a company. It is an understanding of the difference between good and bad TQM begins with a focus on the customer and is boundless, with a decision-making and behavior in the business world. It boils down to lifetime dedication to continuous improvement. TQM merges a following the code of conduct of the organization and adhering to participative philosophy of management attributed to Dr. Edwards rules and regulations. It describes the actions of individuals within Deming with importance on quantitative techniques and employee an organization as well as those of the organization as a whole. involvement to get better the quality of goods and services. 2. INTEGRITY - Integrity is the consistency of actions, values, TQM is a process of controlled change that comprises the entire methods, measures principles, expectations, and outcomes at the employees in the improvement of the quality of products and workplace. There is a need to abouct the organization's policies. services to boost the productivity of the organization. TQM Avoid spreading unnecessary rumors about fellow workers. TOM optimizes innovative approaches to problem-solving and shifts the does not work in an environment where employees criticize and organization from defect detention to defect prevention. With TQM, backstab each other. all the organization's resources are used effectively to improve all of its processes. 3. TRUST - Trust is one of the most important factors necessary for the implementation of TQM because it builds a cooperative TQM engages everybody in the organization, from the top environment. It is a relationship based on reliance. Employees need management to the lowest position. The timing, progression, to trust each other to ensure participation of everybody and allow method of execution, and integration of these elements will differ empowerment that encourages pride of ownership and from one organization to another. commitment. Trust fosters individual risk-taking for continuous improvement and is essential to ensure customer satisfaction. Trust Essential to the TQM approach is the transformation in improves relationships among employees and eventually helps in management philosophy regarding the "responsibility for quality." better decision making which further helps in implementing TQM Previously it was given to a separate group of individuals in a successfully. department/directorate/division frequently designated as Quality Assurance. In TQM, the responsibility for quality is given to Building Bricks everyone, each employee, from top management to the lowest Bricks are placed on a strong foundation to reach the roof of position in the organization. recognition. The foundation needs to be strong enough to hold the bricks and support the roof. TQM is accomplished using a team organization with both management and the employees as members of "Quality Teams," Leadership, teamwork, and training are the building bricks of TQM. which focus on continuous process enhancement. Those who do a job know it best. Thus, suggestions to improve the quality of an 1. LEADERSHIP - Leadership provides a direction to the entire exacting process should come from the employees who work in the process of TQM. It is about raising the aspirations of followers and process and the managers who work on the process. enthusing people with a desire to reach their goals. Leadership in Communication must be encouraged to let employees and TQM requires the manager to provide an inspiring vision, make management work jointly to attain the shared goal of continuous strategic decisions, and instill values that guide subordinates. TQM process improvement. needs to have a supervisor who acts as a strong source of inspiration for other members and can assist them in decision-making. A leader TOM necessities may be defined independently for a specific himself needs to believe in the entire process of TQM for others to organization or maybe in loyalty to established standards, like the believe in the same. Proper downloads and briefs about TQM must International Organization for Standardization's ISO 9000 series. be given from time to employees to help them in its successful TQM can be applied to any type of organization; it originated in the implementation. TQM initiatives have to be introduced and led by manufacturing sector and has since been adapted for use in almost the top management. every type of organization imaginable, including schools, highway maintenance, hotel management, and churches. As a current focus 2. TEAMWORK - Teamwork is a crucial element of TQM. Rather than of e-business, TQM is based on quality management from the working individually, employees need to work in teams. When customer's point of view. individuals work in unison, they are in a position to brainstorm ideas and come up with various solutions which would improve existing information takes place from the management to the employees. processes and systems. Team members ought to help each other to The supervisors can make the employees clearly understand TQM find a solution and put it into place. Teamwork offers continuous using this type of communication. improvement in processes and operations. 2. UPWARD COMMUNICATION - The flow of information takes place The teams may be: from the-lower-level employees to the top-level management. The a. Problem-solving - These are temporary and formed to solve lower-level employees can offer suggestions on the effects of TQM certain problems and identify and overcome the causes of those to the upper-level management using this type of communication. problems. They generally last from one week to three months. Supervisors should listen effectively and incorporate the insights and constructive criticisms offered by the employees in correcting the b. Quality improvement - These are temporary teams with the situations that arise using TQM. This creates a level of trust between purpose of dealing with specific problems that often recur. These supervisors and employees. This is also like empowering teams are set up for a period of three to twelve months. communication, where supervisors listen to others. c. Natural work - These teams consist of small groups of skilled 3. SIDEWAYS/LATERAL COMMUNICATION - Communication also workers who share tasks and responsibilities. These teams use takes place between various departments. This type of concepts such as employee involvement teams, self-managing communication is important because it breaks down barriers teams, and quality circles. between departments. It also allows more professional dealing with customers and suppliers. 3. TRAINING - Employees need to be trained on TOM to become highly productive. Managers need to make their fellow workers It includes recognition which brings greater internal customer aware of the benefits of TOM and how it would make a difference in satisfaction, which in turn leads to external customer satisfaction in their product quality and eventually yield profits for their the organization. There can be a huge change in self-esteem, organization. Employees need to be trained in interpersonal skills, productivity, and quality when the contributors are recognized. the ability to work as a team member, technical know-how, decision-making skills, problem-solving skills, and so on. Training Recognition is the final element of TQM. Recognition is the most enables employees to implement TOM effectively within their important factor which acts as a catalyst and drives employees to departments and also makes them indispensable resources. work hard as a team and deliver their best level. Every individual is hungry for appreciation and recognition. Binding Mortar Binding mortar binds all the elements together. Communication Employees who come up with improvement ideas and perform binds everything together, starting from the foundation and going exceptionally well must be appreciated in front of all. They should be up to the root. suitably rewarded to expect a brilliant performance from them even the next time. The most important responsibility of a supervisor is to accordingly recognize the employees. TOPIC 9: CORE CONCEPTS OF TQM Each of the following core concepts of TQM can be used to drive the process of continuous improvement and to develop a framework for quality improvements over many years. 1. CUSTOMER SATISFACTION - TQM is centered on the requirements of the customer. In order to meet customer requirements, it is imperative to listen to them and do what is agreed upon. Companies must give identical importance to the internal as well as external Communication is the vital link between all the TOM elements and customers. A better technique for companies to use their customers must be prevalent in an organization for TQM to work the way it is to learn what is significant to them and then equal their should. The channels of communication need to be credible and performance to the customer's satisfaction. Many forward-looking easily interpreted by all members of the organization. companies around the world have started the process of carrying out a survey known as an "energy meter," which reflects the Communication binds employees and extracts the best out of satisfaction, morale, and motivation levels of employees and them. Information needs to be passed on from the sender to the develops the model of "employeeship" with core stress on the recipient in its desired form. Small misunderstandings in the principles of customer satisfaction. beginning lead to major problems later. Employees need to interact with each other to come up with problems existing in the system Further, on the external customer front, surveys are carried out and find their solutions as well. Three types of communication take among the customers to identify their satisfaction, expectations, and place between employees: the causes for low customer satisfaction. For that reason, the satisfaction index is compiled, and product qualities are monitored 1. DOWNWARD COMMUNICATION - This is the dominant form of to improve customer satisfaction. communication in an organization. Presentations and discussions ate two examples of this form of communication. The flow of 2. INTERNAL CUSTOMER SATISFACTION - Customers are not only 6. PEOPLE MAKE QUALITY - Most of the quality problems within an external customers but the people outside who are the end user of a organization are not usually within the control of an individual firm's products and services. There is also the internal customer, the employee. The system often comes in the way of employees who person within the company who receives the work of another and are trying to do a good job. In such a situation, motivation by itself adds his contribution to the product or service before passing it on cannot work. Therefore, managers are required to ensure that all to someone else. It is essential to attain a successful internal necessary is prepared to let people produce quality. This creates an working relationship in order to satisfy the needs of the external environment where people are eager to take responsibility for the customer. If the internal customers' requirements are agreed upon quality of their own work. Releasing the talents of everyone within and met, a chain of quality is built that reaches out to the external the organization in this way can generate a culture of quality customer. Whether an organization supplies products or services, improvement the people it supplies internally are as real as its external customers. Therefore, they also require speed, efficiency, and accuracy. That's 7. CONTINUOUS IMPROVEMENT CYCLE - The continuous cycle of why the idea of the internal customer can be used as a highlight for instituting customer requirements, meeting and measuring them, improvement. measuring success, and continuing the improvement can be used both externally and internally to stimulate quality improvements. 3. ALL WORK IS A PROCESS - Another possible focal point of The continuous improvement cycle used repeatedly will lead to a improvement is that of business processes. A process is a fresh "chemistry" within the organization so that the culture starts combination of methods, materials, manpower, and machines that to change to one of continuous improvement. work collectively to produce a product or service. All processes include natural variability, and one approach to quality improvement 8. PREVENTION At the heart of TQM is the conviction that it is is to progressively reduce variation. First, this can be done by possible to achieve defect-free work most of the time. This is termed removing variation due to special causes and, secondly, by driving "right first time, every time" or zero defects. The "right first time, down the common cause of variation, thus bringing the process every time" or zero defects policy is the result of an emphasis on under control and improving the capability. prevention, the diligent use of measurement, process controls, and the data-driven elimination of waste and error. It serves as a goal for 4. MEASUREMENT - In order to improve, one must first measure continuous improvement. Prevention is the goal of all quality one's present performance. This will help one focus both on assurance. Through planned and systematic action, such as satisfying internal customers and meeting the requirements of documentation of work processes or cost of quality audits, quality external customers. There are seven generic ways in which the assurance prevents quality problems. quality of outputs can be measured: a. Defects - work not up to specification TOPIC 10: BENEFITS OF TQM b. Rework - a work requiring correction. c. Scrap - work thrown away. There are many benefits of TQM. Essentially, TQM refers to d. Lost items - work done again. the total quality of fulfilling the needs of the customers, the quality e. Backlogs - work behind schedule of the products, and the quality of life. Having these focuses leads to f. Late deliveries - work after the agreed time better business results and benefits businesses in several different g. Surplus items - work not required. ways. Here are some benefits of TQM: 5. SYNERGY IN TEAMWORK - The idea of synergy in teamwork, 1. CREATES A GOOD CORPORATE CULTURE - TQM is an approach where the whole is greater than the sum of the parts, is a key where the customer is the center point of the business rather than concept in TQM. Here, it is used to promote collaboration, the department. Therefore, quality is transformed from an issue of consensus, "creative conflict," and the team winning. One of the the production department to a strategic business entity to meet strengths of using teams for TQM is that they can merge the global challenges. The TQM philosophy revolves around developing mutually restricted individual qualities needed for running a a culture that supports total commitment to customer satisfaction business today. Teamwork can provide opportunities for people to through continuous improvement. work together to reach quality improvement. People who work on their own or in a small group often have a compartmentalized 2. BETTER REVIEWS FROM CUSTOMERS - Another benefit of TQM is picture of their organization and the work that it does. They are that customers and clients are highly satisfied with the performance. quite strange with the work done even by people who are in their Given the quality assurance testing procedures, the products of the vicinity. Consequently, they are unacquainted with the results of the company will constantly meet the requirements and needs of clients poor quality of their work. Bringing people together within teams and customers. Therefore, the customers stay with the company with the common goal of quality improvement aids communication longer, deepen their relationship with the company and between people, departments, and functional activities. Teamwork demonstrate less price sensitivity while recommending the gradually breaks down communication barriers and acts as a company's products or services to others. Customer satisfaction and platform for change. high-performance results also possibly lead to high reviews in different publications and newspapers, which further enhances the Teamwork also enables a group of people to work as a task force, image of the company and, in turn, that of the business. as seen in cross-functional teams, committees, and others that look at cross-functional problems, solve problems and identify and adopt 3. BETTER PERFORMANCE FROM EMPLOYEES - Through TQM, new ways of doing things. In this connection, quality circles and there is often more attention placed on meeting the needs of the quality. improvement tools facilitate team-building processes in employees or internal customers. The training given to the organizations. employees as part of the program can boost employee morale at the workplace resulting in employees working harder to achieve the cross-functional teams, is a feature of TQM. These teams will goals of TQM. present the necessary thrust to the implementation process and will push the system forward with very less struggle. TOPIC 11: SHIFTING FROM TRADITIONAL MANAGEMENT TO TQM 4. TQM believes in quality assurance rather than checking. Quality is Traditional management styles are all essential management by inbuilt into the system so that products are assured to be of good results. Managers feel justified in letting quality standards slip, quality. Some decisions, like narrowing down the supplier base, are adjusting output to meet quotas, and generally forfeiting the right total quality management concepts used for this purpose, which is production standards and procedures to pander to results. This still revolutionary today. management style is predicated on the "ends justify the means" philosophy. This "charade of conformance" fosters dishonesty and 5. Unlike the traditional management style, total quality the juggling of the facts. management makes decisions based on facts and figures. Therefore, problems are identified properly. Thus, solutions are well-planned. Quality-focused management is predicated instead on the quality of the product and the satisfaction of the customer. In this style, the 6. TQM depends on cyclic thinking. Also, it is continuous. Therefore, goal is to produce an extremely high-quality product without cutting improvements are small, stable, and continuous in nature. This is corners on quality and without pandering to profits. This is a radical also known as Kaizen. These events are used in team building, departure from traditional styles, which applaud profits above brainstorming, and decision-making. quality and virtually every other consideration. In quality-focused management, profits improve the consideration. In quality-focused There are many other differences between the old and the management, profits improve because the product is better and the traditional way of managing total quality management. In the bigger customer is willing to pay for it. This type of management requires picture, TOM has basically changed the culture and the thinking detailed quality measurement and observance of consistent quality patterns of the organization. standards since any drop in quality will be detected by customers and will weaken the success of this style. TOPIC 12: TQM AND REENGINEERING Changing from a traditional style to a quality-focused style of Reengineering, sometimes called Business Process Reengineering management requires re-education of managers to become leaders (BPR), involves a complete rethinking and transformation of key instead of bosses, as well as clear communication of the company's business processes, leading to strong horizontal coordination and quality vision. The quality goal must be championed by everyone, greater flexibility in responding to changes in the environment. beginning from the top down to the lowest worker. The alteration to Because work originated around processes rather than functions, a quality-focused style forces sweeping changes in every aspect of a reengineering often involves a shift to a horizontal structure based company's management, from the selection of personnel to the on teams. function of teams within the company, but the result is a better-quality product, a pleased customer, and a company that Reengineering basically means starting over, throwing out all the operates with greater integrity. thinking of how work was done, and deciding how it can best be done now. It entails identifying customer needs and then crafting Total quality management has changed the traditional management how it can best be done now. It requires identifying customer needs, style forever. It was a very essential movement in those days. Some then designing processes and supporting people to meet those of these changes are essential even today. A few of these changes needs. are discussed below. Banks and insurance companies, manufacturing and mining 1. Traditional way of management focused on internal activities. companies, and service companies throughout the world have all Quality had a meaning which was totally internally defined. Products achieved breakthroughs in speed, flexibility, innovation, and quality or services provided by an organization were assumed to be good in through reengineering. quality if this organization has done its best in producing that product or service. But in total quality management, the focus is the It is very important to understand that reengineering is not a customer. So, the final decision of the quality is the customer. Fitting disconnected discipline. It is, in fact, a subset of TQM. The essential to the customer's requirement was the least requirement while difference between (Business Process) Reengineering and TQM is delighting them was the ultimate goal. that reengineering aims at quantum gains on the order of 30% to 50% or more, whereas TQM programs stress incremental progress, 2. Traditionally people thought bad quality products were due to striving for inch-by inch gains again and again. the workers who did not perform their job properly. One of the major differences between total quality management and traditional The two approaches to improving performance are not mutually management style is the assignment of responsibility for the quality exclusive; it makes sense to use them in tandem. Reengineering can to the management. Especially responsibility for quality goes into be used to first produce a good basic design that dramatically middle-level management at the operational level. improves a business process. Total quality programs can be used to work out bugs, perfect the processes, and gradually improve both 3. Total quality management is an organization-wide movement. efficiency and effectiveness. All the organization has to be in agreement to apply TQM principles. Total quality management, unlike traditional management, calls for a high amount of team working. Team building, especially TOPIC 13: SIMILARITY AND DIFFERENCE BETWEEN REENGINEERING Reengineering (BPRE) TQM (CPI) AND TQM Similarities: Some people have said that both TQM and Reengineering are the same, while others have argued that they are incompatible. Michael Basis of analysis Processes Processes Performance measurement Rigorous Rigorous Hammer argues that the two concepts are compatible and Organizational change Significant Significant complement each other. Both concepts have the same focus - Behavioral change Significant Significant customer satisfaction. Time investment Substantial Substantial TQM has contributed to the concept of teamwork, worker Differences: participation and empowerment, cross-functionality, process Level of change Radical Incremental analysis and measurement, supplier involvement, and Starting point Clean slate Existing process benchmarking. Also, TQM has emphasized the need for a "total" Participation Top-down Bottom-up view of the organizations in its approach to problem-solving. TQM Typical scope Broad, cross-functional Narrow, within has also influenced company culture and values by exposing Risk High functions Primary enabler Information technology Moderate organizations to the need for change. Type of change Cultural and structural Statistical control Cultural TQM has advocated continuous and incremental improvement of processes (Kaizen), whereas reengineering is about radical Table 1 Reengineering vs. TQM discontinuous change (breakthrough improvement) through process innovation. TQM and reengineering fit together over time in the life TQM is the way of achieving the objective of "total quality". The of a process (see Figure 3). techniques used for continuous improvement and process reengineering are the tools of TQM. First, the process is enhanced until its useful lifetime is over, at which point it is re-engineered. Then enhancement is resumed, and In Japan, continuous improvement is referred to as Kaizen. This is the entire cycle repeats again. incremental, gradual, and continuous improvement. According to Masaaki Imai, who coined the term, "Kaizen" means improvement. It means continuous improvement involving everyone, both managers and workers. Kaizen strategy maintains and improves the working standard through small gradual improvements. In general, improvement can be defined as Kaizen and innovation. Kaizen means gradual, incremental, continuous improvement. Innovation calls for radical improvements as a result of large investments in technology and or equipment. But the modern approach to total quality management includes both incremental and breakthrough improvements under the term "continuous improvement". Hammer points out that this is not a once-in-a-lifetime endeavor. As business circumstances change in major ways, so must process When reengineering is implemented, the objective of total quality design.The differences that have been identified may generate an must always be foremost to ensure success. Otherwise, idea that reengineering is outside the area of quality management. implementation can be costly and still not yield acceptable or Hammer, the reengineering guru, together with quality gurus such long-term results. Process reengineering emphasizes radically as Deming and Juran, all agree that innovation and breakthroughs in changing the existing processes under the assumption that those processes are indispensable parts of quality management. changes will definitely improve the firm's global performance or the performance of one of its specific processes. TQM assumes that the design of the process is sound and that all it needs is some improvement or enhancement. But if the However, to be effective, a firm's internal organization and world has changed dramatically since the process was first (or most processes should be directly and formally linked to enhancing recently) designed, the current design may be incompetent in profitability through the fulfillment of its customers' needs. If this delivering the necessary performance. Reengineering is then relationship is correctly and explicitly established right from the essential. beginning, then reengineering can be one of the best tools to achieve total quality, and it will significantly improve the performance of a firm. - julia