Total Quality Management PDF

One has only to remember the box office success of recent motion pictures that PRINCESS MAE CALOSA endure from poor quality but are obviously favored by the largest number of...

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