Total quality management :
TQM is an integrative philosophy of management for continuously improving the quality of products and processes. It is comprehensive approach to improving product quality and thereby customer satisfaction. It occurs when entire organization culture becomes focused on quality and customer satisfaction through an integrated system of management. The elements essential for TQM process to take are:
- Customer oriented approach: It is important to focus on the customer, both internal and external i.e., the employees and the users of the end product. In TQM parlance, the customer is the next process and not just a person who pays for the product or service. This concept helps to strengthen the co-operation within the organization, eliminate internal competition and drives away fear.
- Continuous process improvement: There is a beginning to the process of TQM, but there is no end. Checking, rechecking, valuation, revaluation, engineering and re-engineering are essential to ensure continuous improvement.
- The use of team: Teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place.
- Employee involvement: People at all levels make up an organization and their full involvement in quality related issues and decision enables their abilities to be used for an institution's benefit. Quality circle is viewed as a major step to increase worker involvement and a very powerful method of employee empowerment.
- Employee Training and Development: “Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company.
Tools/ Techniques of TQM:
- Bench marking: searching best practice among competitors that leads to their better performance.
- Outsourcing: subcontracting some/ entire job to other organization to bring quality and benefit of specialization.
- Speed: It involves not only doing job faster but also rethinking and redesigning the whole business cycle.
- ISO 9000: internationally agreed series of standards which sets out the criteria for world class quality management.
- Quality Circles: Quality circle is viewed as a major step to increase worker involvement and a very powerful method of employee empowerment.
- Kaizen: focus on determining waste and to suggest ways to eliminate waste by self managed work teams.
Deming Management:
Develop by W. Edward Deming, forwarded following idea for quality management. He emphasized the importance and scope of statistical quality control in the Japanese industry. Deming view for quality management:
- To increase quality, organization needs to develop strategic plans.
- Manger should realize that mistakes, defects, and poor-quality materials should not be acceptable.
- First line manager should be allowed to spend more time working with employees
- Management should create where employee report problem and recommendation.
- Output should be not only defined in numbers, but also in quality.
- Management should train employees to assure standard.
- Management need to develop values and norms centered on improving quality.
Principles of Deming Management: By Robert Kreitner
- Quality improvements drives the entire economy
- The customer always comes first
- Do not blame the person fix the system
- Plan-do- check- act.( Deming’s PDCA cycle)
The philosophy of W. Edwards Deming has been summarized as follows:
- "Dr. W. Edwards Deming taught that by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs by reducing waste, rework, staff attrition and litigation while increasing customer loyalty.
- The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces."
- In the 1970s, Dr. Deming's philosophy was summarized by some of his Japanese proponents with the following 'a'-versus-'b' comparison:
- When people and organizations focus primarily on quality, defined by the following ratio,
- Quality tends to increase and costs fall over time.
- However, when people and organizations focus primarily on costs, costs tend to rise and quality declines over time.
14 techniques suggested by Deming to maintain total quality management.
1."Create constancy of purpose towards improvement". Replace short-term reaction with long-term planning.
2."Adopt the new philosophy". The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so.
3."Cease dependence on inspection". If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any.
4."Move towards a single supplier for any one item." Multiple suppliers mean variation between feed stocks.
5."Improve constantly and forever". Constantly strive to reduce variation.
6."Institute training on the job". If people are inadequately trained, they will not all work the same way, and this will introduce variation.
7."Institute leadership". Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based.
8."Drive out fear". Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organization’s best interests.
9."Break down barriers between departments". Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs.
10."Eliminate slogans". Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive.
11."Eliminate management by objectives". Deming saw production targets as encouraging the delivery of poor-quality goods.
12."Remove barriers to pride of workmanship". Many of the other problems outlined reduce worker satisfaction.
13."Institute education and self-improvement".
14."The transformation is everyone's job".
Deming has been criticized for putting forward a set of goals without providing any tools for managers to use in order to reach those goals. His inevitable response to this question was: "You're the manager, you figure it out."
Emerging quality management issues and challenges:
- Redesign organizational structure:
- Workforce diversity
- Innovation and change
- Motivation of employees
- Knowledge management
- Technological development
- Improving quality of service
- Benchmarking
- Assurance of TQM
