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An Assignment on

Total Quality Management

Submitted By-

Sudarshan Kumar Patel

PGDMA-1320

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What is quality?A frequently used definition of quality is “Delighting the customer by fully

meeting their needs and expectations”. These may include performance,

appearance, availability, delivery, reliability, maintainability, cost effectiveness

and price. It is, therefore, imperative that the organization knows what these needs

and expectations are. In addition, having identified them, the organization must

understand them, and measure its own ability to meet them.

The Three Quality Gurus-

Deming: The best known of the “early” pioneers, is credited with popularizing quality control in Japan in early 1950s.Today, he is regarded as a national hero in that country and is the father of the world famous Deming prize for quality.

Juran: Juran, like Deming was invited to Japan in 1954 by the union of Japanese Scientists and engineers.

Juran defines quality as fitness for use in terms of design, conformance, availability, safety and field use. He focuses on top-down management and technical methods rather than worker pride and satisfaction.

Philip Crosby:

Quality is defined as conformance to requirements, not “goodness”

The system for achieving quality is prevention, not appraisal.

The performance standard is zero defects, not “that’s close enough”

The measurement of quality is the price of non-conformance, not indexes.

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Commonality of Themes of Quality Gurus

1Inspection is never the answer to quality improvement, nor is “policing”.

2Involvement of leadership and top management is essential to the necessary culture of commitment to quality.

3A program for quality requires organization-wide efforts and long term commitment, accompanied by the necessary investment in training.

4Quality is first and schedules are second.

Deming Juran Philip Crosby

Five Approaches of Defining Quality

Harvard professor David Garvin, in his book Managing Quality summarized five principal approaches to define quality-

Transcendent

Product based

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User based

Manufacturing based

Value based

Old Quality vs. New Quality

Difference between old quality (Rolls Royce, personal banker etc) and new quality is that old was the work of craftsmen and the new is the work of a system (Toyota, Big Mac, Boeing Aircraft, Disney World etc.). The old is expensive, made for the few, using skilled hands, and is beautiful and functionally based. The new reduces cost, made for the many by intelligent minds and should drive the economy and make business more competitive.

Total Quality Management (TQM)

TQM is the way of managing for the future, and is far wider in its application than just assuring product or service quality – it is a way of managing people and business processes to ensure complete customer satisfaction at every stage, internally and externally. TQM, combined with effective leadership, results in an organization doing the right things right, first time.

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The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface lie a number of processes. This core must be surrounded by commitment to quality, communication of the quality message, and recognition of the need to change the culture of the organization to create total quality. These are the foundations of TQM, and they are supported by the key management functions of people, processes and systems in the organization.

Dimensions of Product Quality

1. Performance - Fulfillment of primary requirement2. Features - Additional things that enhance performance3. Conformance - Meeting specific standards set by the industry4. Reliability - Consistence performance over a period of time5. Durability - Long life and less maintenance6. Service - Ease of repair, guarantee, and warranty7. Response - Dealer customer relationship, human interface8. Aesthetics - exteriors, packages

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9. Reputation - Past performance, ranking, branding

Historical Review of TQM

1924 - After WWI, W.A. Sherwat of Bell Telephone statistical chart for the control of various. Concepts of sample tests were followed. It was a failure in the initial stages.1946 - ASQC American Society for Quality Control, now ASQ. Frequent meetings, conferences and publications were made to public.1950 - W.Edwards Deeming’s his guidance and lecture to Japan engineers transformed quality concepts in the organization. His cycle ACT-PLAN-DO-CHECK.1954 - Joseph M.Juran Concept of efficient and productive. Juran TrilogyQuality planning - Quality Control - Quality Improvement.1960 - Quality control circles were formed. Zero defects concepts1970 - Reactive approach to proactive approach. Shift from Japan to USA1980 - SPC - Statistical Process Control. Concepts of parameter and tolerance. Experiments 1990 -Concepts of certification of ISO, CMM etc.2000 - Six sigma concept - Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Six Sigma methodologies provide the techniques and tools to improve the capability and reduce the defects in any process.

Evolution of TQM

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Benefits of TQM

Greater customer loyalty Market share improvement Higher stock prices Reduced service calls Higher prices Greater productivity

What is Six Sigma?1. A goal of near perfection in meeting customer requirements.

2. A sweeping culture change effort to position a company for greater customer satisfaction, profitability and competitiveness.

3. A comprehensive and flexible system for achieving, sustaining and maximizing business success; uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving and reinventing business processes.

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Six Sigma DMAIC Process

Conclusion-

“Remember the earth revolves around the CUSTOMER. Quality begets customers and customers beget quality. Let us all have action plans to support quality, this will make the world happy and earn us the blessing of God Almighty.”

“Actions are direct reflection of one’s intentions” (Al-Quran).

References-

Management Accounting- Ray Proctor

Management Accounting-Pauline Weetman

White Paper on TQM

Authorstream.com