Key to Success & Failure Presented by : Ankaj Mohindroo Vivek Saratkar 1

TQM - Three paradigms Total: Made up of the whole (Involving the entire organization, supply chain, and/or product life cycle) Quality : degree of excellence a product or service provides Management : Act, art or manner of system with steps like Plan, Organize, Control, Direct, etc. Therefore, TQM is the art of managing the whole to achieve excellence 2

Definition Definition The International Organization for Standards (ISO 8402:1994 ) defines TQM: A management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society 3

Definitions of Quality Quality is fitness for use (Juran, 1974) Quality is conformance to requirements (Crossby. 1984) Quality means best for certain customer conditions These conditions are: The actual use and the selling price of the product. (Feigenbaum, 1961) Quality is the capability of products or services to knowingly satisfy those preconceived composite wants of the user(s) that are intelligently related to the characteristics of performance, and do not cause major overt or covert reactions or actions by other people (Johnson, 1987) 4

Key to Success To achieve this level of performance requires more than a good philosophy - the organization must change its behaviour and adopt new ways of doing business This is what Dr. Deming preached to the Japanese in 1950, and in the 1980s and 90s until his death, in America Deming's approach was amply summed up in his famous 14 Points 5

Constancy of purpose Constancy of purpose Create constancy of purpose for continual improvement of products and service to society, allocating resources to provide for long range needs rather than only short term profitability, with a plan to become competitive, to stay in business, and to provide jobs. 6

The new philosophy The new philosophy Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective materials, and defective workmanship. Transformation of Western management style is necessary to halt the continued decline of business and industry. 7

Cease dependence on mass inspection Cease dependence on mass inspection Eliminate the need for mass inspection as the way of life to achieve quality by building quality into the product in the first place. Require statistical evidence of built in quality in both manufacturing and purchasing functions. 8

End lowest tender contracts End lowest tender contracts End the practice of awarding business solely on the basis of price tag. Instead require meaningful measures of quality along with price. Reduce the number of suppliers for the same item by eliminating those that do not qualify with statistical and other evidence of quality. The aim is to minimize total cost, not merely initial cost, by minimizing variation. This may be achieved by moving toward a single supplier for any one item, on a long term relationship of loyalty and trust. Purchasing managers have a new job, and must learn it. 9

Improve every process Improve every process Improve constantly and forever every process for planning, production, and service. Search continually for problems in order to improve every activity in the company, to improve quality and productivity, and thus to constantly decrease costs. Institute innovation and constant improvement of product, service, and process. It is management’s job to work continually on the system (design, incoming materials, maintenance, improvement of machines, supervision, training, retraining). 10

Institute training on the job Institute training on the job Institute modern methods of training on the job for all, including management, to make better use of every employee. New skills are required to keep up with changes in materials, methods, product and service design, machinery, techniques, and service. 11

Institute leadership Institute leadership Adopt and institute leadership aimed at helping people do a better job. The responsibility of managers and supervisors must be changed from sheer numbers to quality. Improvement of quality will automatically improve productivity. Management must ensure that immediate action is taken on reports of inherited defects, maintenance requirements, poor tools, fuzzy operational definitions, and all conditions detrimental to quality. 12

Drive out fear Drive out fear Encourage effective two way communication and other means to drive out fear throughout the organization so that everybody may work effectively and more productively for the company. 13

Break down barriers Break down barriers Break down barriers between departments and staff areas. People in different areas, such as Leasing, Maintenance, Administration, must work in teams to tackle problems that may be encountered with products or service. 14

Eliminate exhortations Eliminate exhortations Eliminate the use of slogans, posters and exhortations for the work force, demanding Zero Defects and new levels of productivity, without providing methods. Such exhortations only create adversarial relationships; the bulk of the causes of low quality and low productivity belong to the system, and thus lie beyond the power of the work force. 15

Eliminate arbitrary numerical targets Eliminate arbitrary numerical targets Eliminate work standards that prescribe quotas for the work force and numerical goals for people in management. Substitute aids and helpful leadership in order to achieve continual improvement of quality and productivity. 16

Permit pride of workmanship Permit pride of workmanship Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, among other things, abolition of the annual merit rating (appraisal of performance) and of Management by Objective. Again, the responsibility of managers, supervisors, foremen must be changed from sheer numbers to quality. 17

Encourage education Encourage education Institute a vigorous program of education, and encourage self improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education. Advances in competitive position will have their roots in knowledge. 18

Top management commitment & action Top management commitment & action Clearly define top management’s permanent commitment to ever improving quality and productivity, and their obligation to implement all of these principles. Indeed, it is not enough that top management commit themselves for life to quality and productivity. They must know what it is that they are committed to—that is, what they must do. Create a structure in top management that will push every day on the preceding 13 Points, and take action in order to accomplish the transformation. Support is not enough: action is required! 19

Reasons for Failure The top and senior executives should develop full understanding, conviction and faith in the concept and should be committed to extend whole hearted support. The training programs at the beginning and also periodically, as well as continuous stress on benefits to the organization and individual help developing loyal and committed work force to the cause of TQM. Lack of understanding of the TQM concept: 20

Absence of visible support from senior and top management The management should make sincere efforts to let know their commitment by way of frequent visits to quality improvement team’s meeting and story sessions. They should have informal talks with the members of QIT’s. Providing facilities, resources, finance for TQM activities and attending presentation and participating in steering committee meeting will make the commitment visible. 21

Fear of change Skepticism in the minds of management that TQM will reveal their deficiencies and dilute their authority & importance- These misconceptions need to the eradicated by being advised by the top management suitably In fact, successful implementation of TQM would result in better opportunities and harmonious relations. More exposures to the concept of TQM would help people to appreciate the gain of TQM. 22

Many layers of existing organization structure TQM requires a flat organizational structure with large span control. A change in organizational structure to meet this is required. 23

Poor internal communication Exchange of ideas, by participation of members of different departments in QIT’s. Periodic visit of one department employees to another. Seminars, group discussions, news letters expressing the view. Breaking the barriers to communications. 24

Heavy workloads TQM does not require any extra time and effort on the part of management. A conscious expression of interest in day to day work is sufficient. 25

Nature of organization TQM is a philosophy and suits any organization. Committed, continuous, conscious efforts towards customer’s satisfaction need to be the way of life. 26

Lack of adequate education and training Provide education about TQM. Organize regular training programs. Emphasize on “Learning to learn” 27

Limited resources Get experts from outside to train and educate senior and top management. Develop internal training mechanism Develop commitment, bring about a cultural change, resources will follow. 28

Irregularity of the meetings Holding of steering committee and QIT’s meeting on specified time and day should be ensured by the management. Use committed work leaders. 29

Delay in implementation of the recommendation of QIT’s Implement suggestion immediately If not possible, communicate 30

Measurement difficulties Set objectives and standards in verifiable mode. Use standard questionnaire. Carry out periodic survey. 31

THANK YOU 32