TOTAL QUALITY MANAGEMENT (TQM)

Dr. ANR

Total Quality Management (TQM)

• TQM is a set of management practices followedorganization-wide, geared to ensure the organizationconsistently meets or exceeds customer requirements.Process measurement and controls constitute major focusin TQM as means of continuous improvement. In a TQMeffort, all members of the organization participate inimproving processes, products, services and the culture inwhich they work.

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• If the company is committed to provide its customers withproducts and services that satisfy their needs, its culture,attitude and organization also should speak so. Not manycompanies that implemented TQM have been successful.

• Surveys reveal that only 20-36% of companies that haveundertaken TQM have achieved either significant or eventangible improvements in quality, productivity,competitiveness or financial return.

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Prerequisites for TQM

• There are some prerequisites for successful implementation of

TQM.

• These are customer-driven quality, top management

leadership and commitment, continuous improvement, fast

response, actions based on facts, employee participation,

and a TQM culture.

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• How products are developed In TQM environment It isinteresting to see the process of product development in a TQMenvironment.

• Without a TQM approach, product development is usuallycarried on in a an atmosphere where each department actsindependently.

• Short-term results drive behavior so scrap, changes, work-arounds, waste, and rework are part of routine.

• Most often, the attention of management is lost in supervisingindividuals, fire-fighting and rewarding individuals for theirperformance.

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• Product development in a TQM environment is alwayscustomer-driven and focused only on quality.

• Teams in TQM environment are process-oriented, andinteract with their internal customers to deliver therequired results.

• The focus of top management is on controlling the overallprocess, and rewarding teamwork, not individuals.

• A core concept in implementing TQM is Deming’s 14 pointswhich refer to the set of management practices to helpcompanies to increase their quality and productivity.

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• International Organisation for Standardisation (ISO) defines

TQM as ’a management approach for an organisation,

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’.

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TQM comprises the following four process steps:

1. Kaizen:—focuses on continuous process improvement by making processes visible, repeatable and measurable.

2. Atarimae Hinshitsu :—make things work as they are meant for (i.e., a pen is meant for writing).

3. Kansei :—examine the way the user applies the product leads to improvement in the product itself. :

4. Miryokuteki Hinshitsu: —things should have an aesthetic quality (for instance, a pen will write in a way that is pleasing to the writer).

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TQM at Tata Motors• Tata Motors had all along believed in developing strong in-house design,

engineering, and manufacturing capabilities.

• It performed a large part of its manufacturing activities in-house.

• It had installed facilities to manufacture engines, gearboxes andtransmission mechanisms, body panels, castings and forgings and importantcomponents and sub-assemblies.

• It even manufactured its own machine tools, dyes and fixtures, in itsmachine tools division.

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• Tata Motors started a comprehensive quality improvementinitiative in September 2000.

• The initiative played an important role in the company’sturnaround, from a loss of Rs. 500 crores in the year endedMarch 2001 to a profit of Rs. 28 crores in the first quarter of2002-03.

• Every year, about a quarter of Tata Motors’ workforce wentthrough training courses, which were rated highly in the Indianengineering industry.

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• Personnel were trained before building workshops.

• In case of imported machines, engineers and workers were sent

to the foreign manufacturer’s facilities to receive training well

before the arrival of the machine.

• The top management at Tata Motors, thus, strived hard to

develop TQM culture throughout the organisation.

• There were efforts visibly seen for continuous improvement,

fast response and employee participation.

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THANK YOU