Total Quality Management Fourth Year Co-op 4102 (SEM Major)

Chapter I Quality Concept and Its Evolution Introduction • In this chapter you will learn that making quality a priority means putting customer needs first. • It means meeting and exceeding customer expectations by involving everyone in the organization through an integrated effort. • Total quality management (TQM) is an integrated organizational effort designed to improve quality at every level. • TQM is about meeting quality expectations as defined by the customer; this is called customer-defined quality. • Defining quality is not as easy as it may seem, because different people have different ideas of what constitutes high quality.

What is Quality? - Quality is the ability of the material to perform satisfactorily in an application for which it is intended by the user. • Quality is Relative • Abstract Class • Physical Class - Definition of quality depends on the role of the people defining it. - Today, there is no single universal definition of quality. - Some people view quality as “performance to standards.’’ - Others view it as “meeting the customer’s needs” or “satisfying the customer.”

Quality Requirements These abilities into six factors as given under: i. Suitability ii. Durability iii. Dependability, reliability iv. Safe workability v. Affordability vi. Applicability A product can be said to have a good quality if all the above abilities are balanced while designing and producing it.

Quality Assurance - The primary objective in creation of QA is to provide the necessary confidence to the customer as well as to the top management that all concerned are carrying out their activities effectively and that the product quality is achieved to the customer’s satisfaction at an economic cost. Total Quality Management - TQM means meeting the requirements of the internal/ external customer consistently by continuous improvement in the quality of work of all employees. - To the customer, it includes, price, delivery, service and responsiveness.

Quality Control and Its Evolution - The objective of QC function at operators level, foremen level, inspectors level or managers level is to involve with operational techniques and activities carried both at monitoring a process and at eliminating causes of unsatisfactory performance. - QC concept changes can be described as under: a) Operators Quality Control b) Foremen Quality Control c) Inspectors Quality Control d) Managers Quality Control - Statistical Quality Control consists of four activities: 1. Data Collection 2. Data Display 3. Problem Analysis 4. Corrective Action

Chapter II TQM Implementation Methodology - TQM is not just technique or a slogan or a jargon. It is an umbrella of varied quality initiatives. - TQM has moved up from product and organization to the strategic level. Ten Mantras for Total Quality Management 1. Quality is never an accident 2. Quality is life a prayer to GOD 3. Quality is everybody’s business 4. Quality begins with the cleanliness of the work place 5. Take care of quality, quality will take care of itself 6. Make it right for first time and all times

6. Make it right for first time and all times 7. Quality is achieved through team work 8. Document is dependable but not the memory 9. Quality begins and ends with education 10.Quality is the attribute Phases of Quality Management Quality management into four phases: - Quality Control Phase (QC) - Quality Assurance Phase (QA) - Total Quality Control Phase (TQC) - Total Quality Management Phase (TQM)

Principles of Total Quality Management - TQM focuses at two levels. Firstly an ‘’external’’ one aimed at identifying customer requirements and secondly an “internal’’ one focusing on organization, systems and procedures. - Guiding principles of TQM are: 1. Customer Orientation 2. Vision 3. Leadership Commitment 4. Quality Strategy 5. Values 6. Quality Culture 7. Employee Empowerment and Participation 8. Team work approach

9. Communication 10. Process Centered 11. Training 12. Problem Solving and TQM Tools 13. Continuous Improvement 14. Measurement and Audit Operational Model for TQM i. Team work ii. Use of quality tools and techniques for problem solving

TQM System - Quality system is defined as the organizational structure, responsibilities, producers, process and resources for implement quality management. - TQM can be considered as a collection of system that direct to the organization toward two major philosophies: 1. To view the customer as the most important criteria for success 2. To continuously improve the process - TQM system includes three basic components namely i. Team or group ii. Process improvement iii. Policy management

- Quality must be achieved by prevention than inspection. Need to insure following: 1. Create A Climate of Consideration 2. Be Relentless in Education 3. Eliminate Managerial Arrogance 4. Be Consistent. Quality is not a trick Tools And Techniques For TQM 1) 5 S Campaign 2) Total Quality Control (TQC) 3) Total Employee Involvement (TEI) 4) Plan Do Check Act Cycle of Demings (PDCA Cycle)

5) Quality Control Circles 6) Statistical and Process Tools in QC 7) Quality Function Deployment (QFD) 8) Taguchi Technique – Design of Experiments (Multi Variate Analysis) 9) Design review 10) Failure Mode & Effect Analysis (FMEA) & Fault Tree Analysis (FTA) 11) Poka-Yoke-Failure Proofing 12) Kaizen-Continuous Improvement 13) Seven New Quality Improvement Tools

Chapter III Quality Circles Definition of Quality Circles - A Quality Circle is a group of all workers led by a foreman at its nucleus and organized in each workshop or work unit. It is a spontaneously formed group and conducts quality control activities on its own. - Quality circles is a voluntary programme, there is no manipulation by management allowed. - Rely on the employee’s knowledge, his sense of pride and untapped creativity. - This reward and satisfaction come from simply being asked for some of his ideas and seeing those ideas implemented for the good of the entire company.

Quality Circle Why And How To Be Promoted? - Quality circle, a proven technique which made Japan super economic power, is helping considerably to improve not only quality but cost reduction too. - Quality circle has got many advantages, it opens the doors of creativity for an individual and enhances the overall quality of one’s professional life. - The glow of achievement and happiness which an individual acquires brings a qualitative change in his/her life. - A person discovers a new meaning in his work. - Quality circles generate this ‘global perspective by bringing together people from different department.

- From quality circles, a dramatic improvement in inter-personal relations also results. - A person working in one department develops professional and personal contacts with a person of different department. - Quality circles will contribute to the overall synergy of an organization. - Although people involved in quality circles are self-motivated, it is imperative that recognition should be given when required. - Recognition is not just a prize at a formal function, but also an attitude with which superiors regard the activities of persons involved quality circles. - If practiced in the manner described, above, quality circles will certainly contribute to synergy and ebullience.

Chapter IV Leadership For Quality Management • Ralph Stodgily defines leadership as ‘the process of influencing the activities of an organization grouped in its efforts towards goal setting and goal achievement’. • Characteristics of Leadership are as follows: i. Group of Followers ii. Influencing Behaviour iii. Reciprocal Relationship iv. Common Goals • Leadership is a part of management, but not all of it.

• Leadership plays a vital role in management. • Good leadership is a integral part of effective direction. • It provides the vital spark to moral of human beings. • Morals has its roots in good human relations, which, in turn, can be fostered and toned up by leadership. • The statement of Koontz and O’Donnell that: “Managers should be leaders, leaders need not be managers” explains the importance of leadership in management. • The importance of leadership function in a modern organization can be very well understood by reviewing the various functions which are generally performed by managers as a leader.

• Following are the important functions of a Leader: i. Coordinate individual efforts ii. To act as the friend, philosopher and guide iii. To keep the Morale of the group iv. To encourage team work v. Channelize the Group Functioning • “managers do things right. Leaders do the right things”. • Managers are too concerned with achieving short-term goals, i.e. maintaining productivity at any cost. • Leader should set a clear vision, ensure clarity, run effective meetings and invest in role model for employees so as to motivate them for total quality.

Chapter V Total Quality Management Practices in Agricultural Co-operative in Asia Total Quality Management in Co-operatives • Cooperative management clearly needs high ethical standards but it also needs an analysis of the needs and values of society. • It is not enough to recognize the human-centered basis of cooperatives and the need for ethical values to inform management practice. • The membership must not be viewed in the abstract simply as owners but rather as owners integrated into the wider society in the context of the marketplace. • Quality is primarily a customer issue.

• The management practices can be translated in the variety of ways such as, establishing a culture which treats problems as opportunities for improvement rather than blaming people. • Some of the related factors are: 1. Leadership 2. Encouraging Teamwork 3. Communication 4. Trust 5. Flexibility 6. Focus on Problem Solving 7. Recognition 8. Quality Awareness 9. Training

Chapter VI Total Quality Management • There is no single universal definition of quality. • Some people view quality as “performance to standards”. • Others view it as “meeting the customer’s needs” or “satisfying the customer.” • Let’s look at some of the more common definitions of quality. - Conformance to specifications - Fitness for use - Value for price paid - Support services - Psychological criteria

Concepts of the TQM Philosophy Concept

Main Idea

Customer focus

Goal is to identify and meet customer needs.

Continuous improvement

A philosophy of never-ending improvement.

Employee empowerment

Employees are expected to seek out, identify, and correct quality problems.

Use of quality tools

Ongoing employee training in the use of quality tools.

Product design

Products need to be designed to meet customer expectations.

Process management

Quality should be built into the process; sources of quality problems should be identified and corrected.

Managing supplier quality Quality concepts must extend to a company’s suppliers.

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