ORGANIZATION QUALITY

+
PROCESS QUALITY
+
PEOPLE QUALITY
=
TQM
TOTAL • Everyone associated with the
company to involve in continuos
improvement including
customers and suppliers.

QUALITY • Customer stated and

implied requirement are
fully met.
MANAGEMENT • Executives are fully
committed.
Wednesday, August 06, 2010 TQM
 TQM :- TQM is a management of
quality, totally and fully in all
respects, small areas and all
activities of organization, right from
top to bottom, TQM provides the
overall concept that fosters
continuos improvement in
organization. It focuses primarily on
total satisfaction of both internal
and external customers.
Wednesday, August 06, 2010 TQM
 GOAL
Total customer satisfaction

STRATEGY
Do the right thing, right the first time,
and every time

Wednesday, August 06, 2010 TQM

 Objective

To create a culture
of “continuous
improvement “for
zero defect, zero
loss, and zero
accident

Wednesday, August 06, 2010 TQM

 MANAGEMENT
COMMITMENT

TEAMWORK
PARTICIPATION QUALITY TOOLS
AND AND TECHNIQUES
INVOLVEMENT

TQM
ALL RESPONSIBLE
AND ACCOUNTABLE CONTINOUS
MEASUREMENTS, EDUCATION
RECOGNITION AND AND TRAINING
REWARD
CUSTOMER
SATISFACTION

Wednesday, August 06, 2010 TQM

 • TQM forces us to recognize and
give as much important to our
internal customers as our
external customers. We also
learn to know, who our
suppliers are, so that we can
clearly communicate to them
our exact requirements.
Wednesday, August 06, 2010 TQM
 Successful Implementation of TQM

I. Foundation - Ethics, Integrity and

Trust.

II. Building Bricks -Training, Teamwork

and Leadership.

III. Binding Mortar - Communication.

IV. Roof - Recognition.

Costs involved in implementing quality

• Quality Control Costs –

1. Prevention costs
2. Appraisal cost
• Quality Failure Costs –
1. Internal Failure costs
2. External Failure costs

Wednesday, August 06, 2010 TQM

 FOUR PILLERS OF TQM

Satisfying Improveme
Customers nt tools
Systems /
People
Process

Wednesday, August 06, 2010 TQM

Satisfying customers :
Aim of TQM is not only to meet the needs
of the customers, but also about
customer satisfaction. (Satisfying implied
needs). This also includes the internal
customers as without satisfying them,
achieving satisfaction of external
customers will be difficult.
Systems / Process :
Establishing a system is basic building
block of quality management. Within this
system having the right processes will
ensure production of error free or defect
free products. The more robust the
process, the less will be the possibility of
defect occurring.
People :
People are the most important asset of
the organization, No organization can
succeed without the whole hearted
involvement of the people in the various
aspects of the organization
Improvement Tools :
There exists always a potential for
improvement. Use of the right,
improvement tools and methodologies
will ensure that the organization remains
competitive.
 Quality movement in India
• In India quality was there from the beginning.
• India was known for handicrafts , gems and
jewelry- Heritage.
• But US. Japan- Known for quality
management.
• Quality management existence in US . and
Japan- 1950
• Quality control circle was born in India- 1980
Wednesday, August 06, 2010 TQM
Quality is an attribute of a product or service that fulfills or exceeds the human
expectations. These expectations are based on the intended use and selling / service
price. It is somewhat of an intangible based on perception
 
 
ISO – 9000:2000: “ The degree to which a set of inherent characteristics fulfills
requirements.
Here,
Degree – quality such as poor, good, and excellent
Inherent – Permanent attribute
Requirement – need based or expectation.
 
 J.M.Juran defined quality as: “Fitness for use / Purpose”
 
Philip Crosby defined quality as: “Conformance to specifications”

W.Edward Deming : continuous Improvement  

Peter Drucker: "Quality in a product or service is not what the supplier puts in. It is
what the customer gets out and is willing to pay for.“
Wednesday, August 06, 2010 TQM
Q- Quest for excellence. (Act)
U- Understanding customer’s needs
A- Action to achieve customer's appreciation
L- Determination to be leader
I- Involving people.
T- Team sprit to work for a common goal
Y- Yardstick to measure progress

Wednesday, August 06, 2010 TQM

 Benefits of quality
• It gives positive company image.
• It improves competitive ability both nationally
and internationally.
• It increases market share, which translates
into improved profits.
• Overall, it reduces cost, improve profits.
• It creates an atmosphere for high employee
morale, which improves productivity.
Wednesday, August 06, 2010 TQM
Wednesday, August 06, 2010 TQM
 AMERICAN GURUs

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 JANANESE GURUs

Wednesday, August 06, 2010 TQM

 Tools to use to improve Quality concerns
Flowchart
Portrays all the steps in a process. Helps understand the process.

Cause and Effect Diagram

Portrays possible causes of a process problem. Helps determine root cause.

Control Chart
Shows if a process has too much variation.

Histogram
Portrays the frequency of occurrence.

Check Sheet
Tabulates frequency of occurrence.

Pareto Diagram
Visually portrays problems and causes in order of severity or frequency. Helps determine which problem
or cause to tackle first.

Scatter Diagram
Helps determine if two variables are related.
.
Wednesday, August 06, 2010 TQM
Wednesday, August 06, 2010 TQM
 Example of Kaizen: poor man’s approach

Wednesday, August 06, 2010 TQM

British Airways’ new route to
customer service

A TQM case study in service sector

 BRITISH AIRWAYS
 Every 2min a BA flight takes off
 Working 24×7
 4th largest airliner in the business
 Fiercely competing Lufthansa, Singapore
Airlines, American Airlines
 25 million passengers

Wednesday, August 06, 2010 TQM

 CHANGE IS GOOD
• Shoddy airline , indifferent to passengers

• World class, financially well, a trendsetter

indeed!
• TQM – the route 2 transformation

Wednesday, August 06, 2010 TQM

 scenario in BA (1990s)

Under a crisis
Previously a nationalized corporation
Shedding jobs worldwide to stop making loss
Merging of BOAC & BEA
Restriction of operating routes

Wednesday, August 06, 2010 TQM

 public to private
Prepared itself for privatization
Regained its financial wealth
After £5 million worth advertisement, sold itself
Began to repair and restructure

Wednesday, August 06, 2010 TQM

 Start of the TQM
implementation
Leaner to fitter
‘PUTTING PEOPLE FIRST’ program by Collin
Marshall
Customer Employees
30,000 employees
Behavior breeds behavior
employees

Wednesday, August 06, 2010 TQM

 know your work place better
 ‘CUSTOMER FIRST’ team program
 In effective attitude of employees
 Employees treated as internal customers
 ‘We fly to serve’ motto
 ‘A Day in the Life’
 ‘gold in the hole’, ‘engineering excellence’,
‘money matters’

Wednesday, August 06, 2010 TQM

 organizational & cultural change
 Pattern Breaking
 Experimenting processes
 Visioning
 Bonding

Wednesday, August 06, 2010 TQM

 pattern breaking stage
 ‘Demanning’ from 59,000 to 29,000
 Dismissal letters to opposing managers
 New, new, everywhere new
_______________________________________
 Experimenting & visioning stage difficulties
 Pathetic business attitude, absence of good
managers, underachieving education system
 Effective motivation- hope of gain not threat of
being fired from job

Wednesday, August 06, 2010 TQM

 deep into cultural change
 Senior & middle level management
 ‘Leading the service business’
 Offsite meetings
 Recording feedback from the down level
management
 Participative management style
 Bureaucratic, militaristic service
oriented , market driven.
Wednesday, August 06, 2010 TQM
 act as you preach
 BA offered MBA degree! to its employees
 Established permanent training centre
 Created emotional support
 Organizational hierarchy was flattened
 profit sharing bonus schemes
 Performance appraisal system introduced
 Performance based compensation system
 data driven feedback system on management
practices
Wednesday, August 06, 2010 TQM
 treat employees as
potential customers
 Introduction of ‘world traveler’ to economy
class
 Advertising it to employees before to
customers
 ‘Internal commitment’
 ‘Internal marketing’

Wednesday, August 06, 2010 TQM

 advertise yourself
 Apart from usual ad campaign, brand product
theme was introduced
 Club world , first class , super shuttle , leisure,
world traveler(economy class)
 Modification of seats, accessories , catering
services
 A single ad costs £1 million containing
emotional dramatic exp

Wednesday, August 06, 2010 TQM

 Food served has a power full effect on the
memory of a flight
 Analyzing different aviation routes, adjusting
food recipes in accordance with different
geographical places
 Gained competitive edge

Wednesday, August 06, 2010 TQM

 show down – a moment to
celebrate
 13 % increase in profit
 Another 12% increase in each subsequent yrs
 Became fourth largest airliner
 160 destinations, 90 countries, 25 US cities
 41 % share in North Atlantic market
 235 aircrafts, advanced fleet strength than
competitors
 Enormous customer care programs

Wednesday, August 06, 2010 TQM