UNIVERSITY OF JAMMU

Indian Insight in Total Q alit! Manag"#"nt

SANT ROCHA SINGH DEGREE COLLEGE

UNIVERSITY OF JAMMU

SANT ROCHA SINGH DEGREE COLLEGE

UNIVERSITY OF JAMMU

CHA$TER %
DEFINATION OF TQM

SANT ROCHA SINGH DEGREE COLLEGE

UNIVERSITY OF JAMMU

TQM & Total Q alit! Manag"#"nt D"'inition o' TQM(

Total Quality Management is an approach to the business which looks critically at the products and services of a company in order to obtain complete customer satisfaction. The approach is called Total because it involves everything the company does: all its processes and all of its employees at every lend in the company all the time. TOTAL : - ny decision or ction takes place in a particular department not only confined to that department but influence the whole system of organi!ation. "ence every matter should be studied as a whole QUALITY: - Quality is the integration of #uality in production$ #uality in services$ and #uality in management process. MANAGEMENT: Management is an art of getting things done by others.

TQM is a continuous improvement approach and is based on a concept That #uality can be managed and that it is a process. Quality is a way of Managing$ not a technical activity. Quality means something more than %ust The basics out lined in &'( )*** or &'&.

SANT ROCHA SINGH DEGREE COLLEGE

UNIVERSITY OF JAMMU

CHA$TER )
HISTORICAL REVIEW OF TQM

SANT ROCHA SINGH DEGREE COLLEGE

UNIVERSITY OF JAMMU

HISTORICAL REVIE* OF TQM

The total #uality movement had its roots in the time and motion studies conducted by +rederick Taylor in the ,)-*s. Taylor is now known as .the father of scientific management./ The most fundamental aspect of scientific management was the separation of planning and e0ecution. lthough the division of labour spawned tremendous leaps forward in productivity$ it virtually eliminated the old concept of craftsmanship in which one highly skilled individual performed all the tasks re#uired to produce a #uality product. &n a sense$ a craftsman was 12($ production worker$ and #uality controller all rolled into one person. Taylors scientific management did away with this by making planning the %ob of management and production the %ob of labour. To keep #uality from falling through the cracks$ it was necessary to create a separate #uality department. 'uch departments had shaky beginnings$ and %ust who was responsible for #uality became a clouded issue. s the volume and comple0ity of manufacturing grew$ #uality became an increasingly difficult issue. 3olume and comple0ity together gave birth to #uality engineering in the ,)-*s and reliability engineering in the ,)4*s. Quality engineering$ in turn$ resulted in the use of statistical methods in the control of #uality$ which eventually led to the concepts of control charts and statistical process control$ which are now fundamental aspects of the total #uality approach. &ndustriali!ation led to mass production in which it led to the concept of one product at a time to the assembly line of production. Though workmanship was affected but mass production led to more %ob and reduction in cost of the product and increase in #uality$ reduction of defects etc.

SANT ROCHA SINGH DEGREE COLLEGE

UNIVERSITY OF JAMMU

CHA$TER +
CONCEPT OF TQM

SANT ROCHA SINGH DEGREE COLLEGE

UNIVERSITY OF JAMMU

CONCE$T

The concept of Total Quality Management 5TQM6 was introduced in the ,)-*s when the statistical approach was first used in #uality control in the factories in merica. This concept was later introduced to the corporate managers in 7apan in the ,)4*s$ at a time when the country was gearing itself towards$ industrial development. This concept received a further impetus in the ,)8*s with the increasing awareness worldwide on the importance of #uality. These changes have directly affected the views and attitudes of managers in the public and private sectors on #uality management. They have reali!ed that the traditional philosophies and approaches in #uality management could no longer guarantee the production of outputs that conform to the re#uirements of their customers. s a result of this$ attention was shifted towards TQM which could assist them in achieving e0cellence. The application of TQM not only benefits the customers in that they receive #uality products but also benefits the organi!ation in terms of cost savings and enhanced operational efficiency. This is the key to the success of an organi!ation. TQM is a continuous process that involves the whole organi!ation and is customer-driven. This process is aimed at creating a culture of e0cellence in any organi!ation. "ence$ TQM can be seen as a process of culture transformation through which the e0isting elements of the culture are modified$ replaced or strengthened with better elements. These elements encompass values and attitudes$ systems and procedures$ operational practices organi!ation structure and so forth.
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TQM aims$ ultimately$ to enable organi!ations to achieve total #uality in all its operational aspects. "ence #uality does not only mean the production of #uality products and services but also encompasses all operations and activities pertaining to an organi!ation. t this stage$ #uality will be reflected in many

9ays in an organi!ation such as effectiveness of management$ ability of the employees$ efficiency of the operational systems and so forth.

TQM focuses on the development of #uality systems and work processes. This is because only #uality work systems and processes can ensure the production of #uality outputs. &n this respect$ TQM emphasi!es on customers and suppliers. +eedback and views of the customers are used for the purpose of designing systems and work processes to ensure that the final output conforms to re#uirements. 'uppliers are treated as business partners who are collectively responsible for producing #uality outputs. 'uppliers play a vital role in supplying #uality inputs to the organi!ation.

The concept of TQM focu e on the fo!!o"#n$ f#%e p&#nc#p!e '

: ;erform #uality work at the initial stage itself. : 1ustomer focus is of prime importance. : There should always be a strategic approach to improvement. : ttempts for improvement should be continuous process. : Team work and mutual respect should be encouraged.

SANT ROCHA SINGH DEGREE COLLEGE

UNIVERSITY OF JAMMU

CHA$TER ,
INTRODUCTION OF TQM

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UNIVERSITY OF JAMMU

INTRODUCTION
Total Quality Management is a management approach that tries to achieve and sustain long term organi!ational success by encouraging employee feedback and participation$ satisfying customer needs and e0pectations$ respecting societal values and beliefs$ and obeying governmental statutes and regulations. Total Quality Management 5TQM6 is an enhancement to the traditional way of doing business. &t is a proven techni#ue to guarantee survival in world-class competition. (nly by changing the actions of management will the culture and actions of an entire organi!ation be transformed. TQM is for the most part common sense. Total Quality Management 5TQM6 can be defined as a total commitment to the continuous improvement of a company<s processes in order to ma0imi!e assets$ reduce waste and rework$ and satisfy and retain customers. TQM is an endless process of continual improvement. This management system was co-developed by 9. 2dwards =eming and 7oseph 7uran. t the heart of TQM are the ideas that true #uality can be achieved only through constant measurement and monitoring and that total #uality re#uires a continuous$ cohesive effort by every person in a company. &ts strategy re#uires systematic changes in management practice$ including the redesign of work$ the redefinition of managerial roles$ the redesign of organi!ational structures$ the learning of new skills by employees at all levels$ and the reorientation of organi!ational goals. &n adopting =eming<s ,> basic principles 5points6 in their company$ managers will need to stop depending on inspections to achieve #uality? create a
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constancy of purpose to improve service? make #uality the ultimate measure of success? stop awarding business solely on price? constantly improve service systems? adopt training programs? provide leadership? drive out fear? break down barriers among staff areas? eliminate slogans and targets? eliminate numerical goals? remove barriers to employees< pride in their work? institute a program for retraining and education? and take action. The successful implementation of TQM can result in a #uality perception as well as customer service leadership$ helping to ensure both customer retention and new customer growth. This concept can directly improve the productivity of a company of any si!e$ whether it is a start-up$ a struggling young

The term Total Quality Management 5TQM6 has been coined to succinctly e0press a philosophy that makes #uality the driving force behind leadership$ design$ planning and improvement initiatives. +or this$ TQM re#uires the help of eight key elements. These elements can be divided into four groups according to their function. The groups are:

%- Fo ndation:

2thics$ integrity$ trust

)- . ilding ./i01s: Training$ teamwork$ leadership +- .inding Mo/ta/: ,- Roo'( 1ommunication @ecognition

() Foun*+t#on: TQM is built on the foundation of ethics$ integrity and trust. &t fosters openness$ fairness and sincerity and allows involvement of every member. This is the key to unlocking the ultimate potential of TQM. These three elements function in unison? however$ each element<s contribution to the TQM concept is uni#ue. +) Eth#c ' 2thics is the discipline concerned with the element of good and bad involved in any situation. &t is a two-faceted sub%ect in that it entails both
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organisational and individual ethics. (rganisational ethics establish a business code of conduct that specifies guidelines that all employees must adhere to in the performance of their work. &ndividual ethics include personal definitions and decisions of right and wrong action. ,) Inte$&#t-: &ntegrity implies honesty$ morals$ values$ fairness$ adherence to the facts and sincerity. 1ustomers 5internal or e0ternal6 e0pect and deserve to receive an integral response. ;eople see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity. c) T&u t' Trust is a by-product of integrity and ethical conduct. 9ithout trust$ the framework of TQM cannot be established. Trust fosters full participation of all members. &t allows decision-making at appropriate levels in the organisation fosters individual risk-taking for continuous improvement and helps to ensure that systems and methods focus on improvement of process and are not used to challenge people. Trust is essential to ensure customer satisfaction. ll in all$ trust fosters cooperative environment essential for TQM. .) /&#c0 : (nce the strong foundation of trust$ ethics and integrity is laid$ bricks are placed to reach the roof of recognition. This factor includes:

+) T&+#n#n$: Training is very important for employees to be highly productive. 'upervisors are solely responsible for implementing TQM within their departments and teaching their employees the intricacies of TQM. 2mployees re#uire training in the fields of interpersonal skills$ the ability to function within teams$ problem solving$ decision-making$ task management$ time management$ performance analysis and improvement$ business economics and technical skills. =uring the creation and formation of TQM$ employees are trained so that they can become productive employees of the company.

,) Te+1"o&0: Teamwork is also a key element of TQM and can lead to success in business. 9ith the use of teams$ the business will receive #uicker and better solutions to problems. Teams also provide permanent improvements in processes and operations. 9hen working in a team$
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employees are more at ease bringing up problems that hamper their work and can e0pect help from other employees so as to find a solution and put it into place. TQM organisations usually adopt three types of teams: 2 Qu+!#t- I1p&o%e1ent Te+1 o& E3ce!!ence Te+1 4QIT 5' These are temporary teams designed for the purpose of dealing with specific problems that often re-occur. These teams are set up for a period of three to twelve months.

2 P&o,!e1 So!%#n$ Te+1 4PST 5' These are temporary teams with the aim of solving certain problems as well as identifying and overcoming causes of problems. Their tenure is generally from one week to three months. 2 N+tu&+! Wo&0 Te+1 4NWT 5' These teams consist of small groups of skilled workers who partake of tasks and responsibilities. These teams use concepts such as employee involvement teams$ self-managing teams and #uality circles. These teams generally work for one to two hours a week.

c) Le+*e& h#p: &t is understandably the most important element in TQM. &t is$ actually$ omnipresent in an organisation. Aeadership in TQM re#uires the manager to provide an inspiring vision$ make strategic decisions that are understood by all and instil values that guide subordinates. +or TQM to be successful in the business$ the supervisor must be committed in leading his employees. supervisor must understand TQM$ believe in it and then demonstrate his belief and commitment through his daily practices of TQM. The supervisor makes sure that strategies$ philosophies$ values and goals are percolated down throughout the organisation to provide focus$ clarity and direction. key point is that TQM has to be introduced and initiated by the top management.

6) /#n*#n$ Mo&t+&' The one factor at this stage is communication$ which binds everything together. 'tarting from foundation to roof of the TQM house$ everything is bound by the strong mortar of communication. &t serves as a vital link
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between all elements of TQM. 1ommunication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organisational members$ suppliers and customers. 'upervisors must maintain open channels$ through which employees can send and receive information about the TQM process. 1ommunication coupled with sharing of correct information is vital. +or communication to be credible the message must be clear and the receiver must interpret it the way the sender intended. There are different ways of communication such as: 2 Do"n"+&* co11un#c+t#on: This is the dominant form of communication in an organisation. This mode of communication is achieved through presentations and discussions. Bsing this mode$ the supervisors find it easier to clarify the premises of TQM to the employees. 2 Up"+&* co11un#c+t#on: Bsing this type$ the lower level of employees is able to provide suggestions to the upper management relating to the affects of TQM. s employees provide insightful and constructive criticism$ supervisors must listen effectively to rectify the situation that comes about through the use of TQM. This generates a bond of trust between supervisors and employees. This is also similar to empowering communication$ where supervisors keep open minds and listen to others. 2 S#*e"+- co11un#c+t#on' This type of communication is important because it breaks down barriers between departments. &t also allows dealing with customers and suppliers in a more professional manner.

7) Roof' This level consists of one aspect$ i.e. recognition. @ecognition is the last and final element in the entire system. &t should be provided for both suggestions and achievements for teams as well as individuals. 2mployees strive to receive recognition for themselves and their teams. =etecting and recognising contributors is the most important %ob of a supervisor. s people are recognised$ there can be huge changes in self-esteem$ productivity$ #uality and the amount of effort dedicated to the task at hand. @ecognition comes in its best form when it is immediately following an action that an employee has performed. @ecognition comes in different ways$ places and time.
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2 W+- : @ecognition may reach you by way of a personal letter from top management or award ban#uets$ pla#ues$ trophies etc. 2 P!+ce : Cood performers can be recogni!ed in full view of departments$ on performance boards and also in front of top management. 2 T#1e' @ecognition can be bestowed at any time$ e.g. in staff meeting$ annual award ban#uets etc.

$UR$OSE OF TQM
The purpose of TQM is to set up a system and management discipline that prevents unnecessary losses in companys performance cycle. The basic ob%ective of a company is to integrate all the functions and processes within an organisation in order to achieve continuous improvement of #uality of goods and services and business processes. Quality is the single greatest factor in achieving market success for any company. TQM primarily focus on total satisfaction. : Total Quality involves everyone and all processes. : Quality involves meeting customer re#uirement. : Management involves Quality as a way of Managing.

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UNIVERSITY OF JAMMU

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UNIVERSITY OF JAMMU

FACTS RELATED TO TQM

TQM is the foundation of activities to attain the goal of error-free work most of the time. The assertion is e0pressed in various ways: right first time$ !ero defects. Dero defect production is the result of emphasis on prevention and careful use of measurement$ process controls and elimination of waste and error. &t serves as a goal for continuous improvement. 'ome points related to TQM are as follows: : ;revention as the aim of all #uality assurance. : Quality as the single greatest factor in achieving market success for the company. : @educing products and services cost : +ollowing 7ust in Time techni#ues : 1ustomer 'atisfaction : ;rocesses$ not people$ being the problem : Quality improvement as a continuous activity

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TQM
Eothing is perfect? there is always a better way of doing things. "ence$ TQM is an ongoing process. The &ndian insight into TQM indicates that .mind/ is the master of total e0cellence of performance in any field of activity. Mind is an energy source of all the people in the organisation to reali!e the targeted mission. Manpower governs the #uality of collective minds. Total #uality of mind determines the #uality of thought$ perception$ ideology$ attitudes and actions that control total #uality of product and services provided by any organisation.

O.JECTIVES OF TQM

&t will enrich the total #uality of work$ product and services and person.

The employee will grow to be self-dependent and self-managed. The employee as a person will turn out to be #uality conscious. The employees will develop self-discipline. nother hidden ob%ective is that if we work with love and devotion$ the glow of blissfulness will be be#ueathed by Cod.

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F"at /"s o' TQM

'atisfaction (f 1ustomers

(F721T&32

Dero =efect G 2rror +ree ;roducing the output right the first time

+(1B'

5a6 ;rocesses and systems 5b6 (rganisation culture 5c6 1ustomers 5d6 'uppliers

TQM

5a6 1ontinuous improvement 5b6 Total involvement of the 5c6 (rgani!ation 5d6 'trategic actions

'T@ T2CH

5e6 (rientation towards long term ob%ective 5f6 1ontrol of #uality costs 5g6 ;reventive action 5h6 2mphasis on #uality assurance 5&6 'ystematic problem solving

5a6 Top management 5leaders6

&M;A2M2ET(@

5b6 Total participation of workers 5c6 9ork teams

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$RINCI$LES OF TQM
The principles of Total Quality Management seek to satisfy the e0ternal customer as well as the companys internal customers with #uality goods and services? to satisfy the e0ternal and internal suppliers? and to continuously improve processes by working smarter and using special #uality methods. TQM re#uires that the principles of #uality management should be applied in every branch and at every level in the organi!ation with an emphasis on integration into business practices and a balance between technical$ managerial and people issues. &t is a company-wide approach to #uality$ with improvements undertaken on a continuous basis by everyone in the organi!ation. (rgani!ations can successfully practice TQM if they have a conducive work environment. 1onducive work environments enable successful implementation of TQM and ensure that it becomes a way of life for the organi!ation. To create such an environment organi!ation must emphasi!e on following management principles as depicted

Customer focus &

Top management commitment

Customer focus & satisfaction

Training and recognitio

$RINCIL$E S OF TQM
Team%or# and emp&o ee commitment

Long-term strategic & s stematic !act "ased decision ma#ing $erformance measuremen t

s seen above$ the principles are universal in nature and therefore are applicable in any organi!ation.
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(8 I Cu to1e& focu e*: 9hatever you do for #uality improvement$ remember that (EAH customers determine the level of #ualityI 9hatever you do to foster #uality improvement$ training employees$ integrating #uality into processes management$ (EAH customers determine whether your efforts were worthwhile. .8 In u&e Tot+! E1p!o-ee In%o!%e1ent' Hou must remove fear from work place$ then empower employee... you provide the proper environment.

Fe 1ustomer +ocus 1ontinual &nvolvement

ORGANISATION

2mployee &nvolvement

1ommunication

;rocess 1entered

+act Fased =ecision Making

&ntegrated 'ystem

'trategic and 'ystematic pproach

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68 P&oce Cente&e*' +undamental part of TQM is to focus on process thinking. 78 Inte$&+te* - te1: ll employees must know the business mission and vision. n integrated business system may be modelled by MFEQ or &'( )*** 98 St&+te$#c +n* - te1+t#c +pp&o+ch: 'trategic plan must integrate #uality as core component. :8 Cont#nu+! I1p&o%e1ent: Bsing analytical$ #uality tools$ and creative thinking to become more efficient and effective. ;8 F+ct /+ e* Dec# #on M+0#n$' =ecision making must is only on data$ not personal or situational thinking. <8 Co11un#c+t#on: 1ommunication strategy$ method and timeliness must be well defined. 3isionary leadership 1ustomer-driven e0cellence (rgani!ational and personal learning 3aluing employees and partners gility

+ocus on the future Managing for innovation Management by fact ;ublic responsibility +ocus of results and creating values 'ystems perspective.

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Goal2 o34"0ti5"2 st/at"g! and #"thods o' TQM

Go+!' Total 1ustomer 'atisfaction O,=ect#%e : To create a 1ulture of .1ontinuous &mprovement/ for !ero defects$ !ero loss and !ero accident. St&+te$- : .=o the @ight Things$ right the first time$ and every time./ Metho*o!o$- : @eview$ ;lan$ Train$ 2mpower$ Team$ Aearn from =ocument$ 'tandardi!e the ;rocess$ @educe 3ariation$ uditing the performance$ @eward J @ecognition

Th" Nat /" o' TQM6th" Co/" Val "s and Con0"7ts
(> co&e %+!ue +n* concept fo&1 the ,+ # of TQM8*&#%en f#&1 ? ,. 1ustomer driven #uality -. Aeadership K. 1ontinuous improvement >. +ull participation 4. @apid response L. ;revention$ not detection M. Aong-range outlook 8. Management by fact ). ;artnership by development ,*. ;ublic responsibility

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Cu to1e& *&#%en @u+!#t- N +eedback from customers is very important in creating customer delight. Le+*e& h#p N 2ncourage all managers about TQM knowledge so that other subordinates will follow. Cont#nuou #1p&o%e1ent N &mprove all matters involved in the products and services is a no end tasks? procedure$ process$ production$ and service areas. Fu!! p+&t#c#p+t#on N the company management must develop a reward and recognition full employee participation in the TQM effort? training and problem solving course. R+p#* &e pon e N ;roducts and services deliver to the customers improved short-cut time than customers normal e0pectation. P&e%ent#onA not *etect#on N =etection task always take time and cost$ proactive step must be taken instead of reactive manner. Lon$8&+n$e out!oo0 N +uture sales good sake ideas$ the company management must has the future ahead planning i.e. the range of products and services to be served to future customer e.g. "onda Motor 57apan6 set up the future ,* years ahead through @J= process.. M+n+$e1ent ,- f+ct N TQM companies document all of their efforts through data collection$ analysis$ and comparison. P+&tne& h#p ,- *e%e!op1ent NTQM firms get the suppliers$ vendors$ unions$ and all other related outside groups to help improve the delivery of goods and services.

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Pu,!#c &e pon #,#!#t- NTQM firms also are interested in good corporate citi!enship. They accept the responsibility of providing their customers with safe$ detect-free goods and services? work to produce product waste? and are prepared to share their e0periences to help other firms gain better corporate citi!enship.

V# #on Fo&1u!+t#on 9hile working on ,* TQM values and concepts$ the management of the company also must formulate a vision regarding its view of total #uality e.g? %. "ow does TQM fit with the companys valueI )- 9hat is the companys #uality policyI +. &f wastes still e0ist in term of inevitable$ can it be developed to make moneyI Top M+n+$e1ent Suppo&t Top rank groups in TQM-driven 1ompany must encourage their following ranks to implement TQM tools provided by educating them how make use all of it. &t can be done while tasking through monitoring and control system. P!+nn#n$ +n* O&$+n#B#n$ 'etting up a total #uality management program is to plan and organi!e the efforts. +or e0ample in planning? how to reduce the rate of defects in goodsGservices produced? with very clear ob%ective and the laid out pragmatic steps to implement. (rgani!e means appoint or designating someone to head the monitoring and control task. I1p!e1ent#n$ +n* Cont&o!!#n$ The implementation and controlling steps are often determined when the firm formulates it total #uality plan. &n most cases the focus is on key results that can be measured and charted. 9hat are the tools and techni#ue usedI

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Th" TQM is a77li"d to #an! stag"s o' Ind st/ial C!0l" 8hi0h a/" list"d 3"lo8(
,. Marketing -. 2ngineering K. ;urchasing >. Manufacturing 4. Mechanical L. 'hipping M. &nstallation and product service.

Fi5" $illa/s o' TQM a/"2

;roduct ;rocess 'ystem ;eople Aeadership Total Quality Management is an effective system for integrating the #uality development$ #uality maintenance and #uality improvement efforts of various groups in an organi!ation continuously$ so as to enable marketing$

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engineering$ production and service at the most economic levels which allow for full customer satisfaction.

TQM has , Ta/g"ts:

,. Fetter$ less variable #uality of the product and service -. Quicker$ less variable response in processes to customer needs K. Creater fle0ibility in ad%usting to customers shifting re#uirements >. Aower cost through #uality improvement and eliminating of non value adding work.

.a//i"/s in TQM I#7l"#"ntation

%. Aack of commitment from top management O avoiding training for self and employees$ meetings )- Aack of employee involvement O particularly at managerial level$ supportive attitude$ trust +. Aack of team work O 1o-operation and co-ordination within workers. ,. Aack of customer oriented approach O Pnow the customer need$ demand$ taste$ shortcomings 9. Aack of attention to feedback and complaints O :- 'upplier control O in terms of materials$ cost$ #uality$ delivery etc

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;. @eview #uality procedures O up gradation$ correct past errors. Aearn from e0perience.

."n"'its o' TQM

Total Quality Management 5TQM6 is a philosophy aimed at improving business as a whole. 'ome of the benefits lie in the continuous improvement of processes and products$ and enhanced efficiency of people and machines leading to improved #uality. The application of Total Quality Management helps in streamlining processes$ and ensures a proactive work system ready to counter deviations from the ideal state. 9hat are some of the ma%or benefits of Total Quality ManagementI The ma%or thrust of Total Quality Management 5TQM6 is to achieve productivity and process efficiency by identifying and eliminating problems in work processes and systems. TQM addresses key problem areas such as mistakes in work processes$ redundant processes$ unnecessary tasks$ and duplicate efforts. TQM interventions also help with predicting and preempting such mistakes and unproductive activities. &mproving process efficiency brings about many benefits to the organi!ations in terms of costs and time.

The 1+=o& ,enef#t of TQM #n te&1 of co t +%#n$ #nc!u*e' o elimination of non-confirmation and repetitive work o elimination of waste costs and re%ect products o elimination of repairs and reworks
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o reduced warranty and customer support costs o process efficiency leading to improved profit per product or service o fiscal discipline through elimination of unnecessary steps and wasteful e0penditure

Cu to1e& +t# f+ct#on o&#ente* ,enef#t : ,. &mprovement in product #uality -. &mprovement in product design K. &mprovement in production flow >. &mprovement in employee morale and #uality consciousness 4. &mprovement in product service

Econo1#c #1p&o%e1ent o&#ente* ,enef#t ' ,. @eduction in operating costs -. @eduction in operating losses K. @eduction in field service costs >. @eduction in liability e0posure

Fo& M+n+$e1ent -;rovides an invaluable problem-solving tool for managers and supervisors to use - =ispels negative attitudes
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- Management becomes more aware of problems that affect the individuals work environment - 2mployees gain a sense of participation - &ncreases efficiency and productivity - @educes turnover rate$ tardiness$ costs$ errors$ and scrap J rework - &mproves communications within and among all departments - =evelops management skills that were never taught$ or are long forgotten due to lack of application - =evelops overall company awareness and company unity - @earranges priorities which once seemed locked in place - Fuilds loyalty to the company - @eveals training re#uirements in all departments - Aessens the number of defects received from suppliers when they are encouraged to train in #uality management

Fo& E1p!o-ee -;rovides opportunity for personal growth and development 5as a result of team training activities6 and the opportunity to develop and present recommendations - &ncreases innovation 5through a greater variety of approaches and perspectives6 for solving problems$ removing fear of failure - 2mployees use their knowledge and skills to generate data-driven recommendations that will lead to well-informed decision-making - 2ncourages decision-making at the most appropriate level - &ncreases motivation and acceptance of new ideas - &ncreases %ob satisfaction 5as a result of the opportunity to participate in and have influence over work6 - @ecogni!es employees for their knowledge$ skills$ and contribution toward improvement

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- =evelops mutual respect among employees$ management and customers - ;romotes teamwork.

CHA$TER 9
Indian Insight Into TQM
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Indian Insight into TQM

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&n the &ndian conte0t$ TQM indicates that mind is the most significant dynamic of total e0cellent performance in any organisation. &t gives the direction to the management to establish vision$ mission and business definitions. &t is the intellectual strength of human beings that controls the #uality of human resources and processes. &ndian ethos entails thought process$ perception$ attitude and implementation actions$ which maintain the #uality of products and services. perfect human being is the one who accepts everyone as a part of himself as an individual. 'uch a #uality person in any organisation can best establish TQM. There are some factors discussed here for #uality in a person: : ttitude towards work : 1ooperation that peers$ seniors and sub ordinates impart to him : Aeadership skills : Top Management : +amily$ mentor and ideals : Teachers and Curus The &ndian insight indicates that human mind is the master for improvising the #uality of performance in any domain. Quality of mind essentially improves the #uality of products and services.

*" ha5" th" <;M= '/a#"8o/12 8hi0h in0l d"s( : Mind : Motivations : Mission : Money : Machines : Material : Manpower

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$/in0i7l"s o' TQM in Indian Cont">t(

: +ollow the divine principle <9ork is 9orship<. : 9ork is supreme in that merely work can lead to total #uality. : 1ommitment is essential for action. : 'ense of belongingness to the organisation is crucial. : +ocus towards each and every activity leads to betterment. : 'elfless actions towards work accomplish a lot. : Total perfection and #uality must be the ob%ective of every single employee.

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CHA$TER : Conc!u #on

Con0l sion
&n TQM$ everyone participates in the process$ right from the managing director to the office peon. 2veryone in the company is responsible for producing #uality goods and services. &n TQM$ performance feedback is vital to enable managers at all levels to improve their contribution to business. n
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appropriate system of recognition and reward is critical to any companys TQM programme$ particularly as #uality improvement process. Aeadership and teamwork go hand in hand. Aack of communication between departments$ supervisors and employees create a burden on the whole TQM process. Last 3 t not th" l"ast? /"0ognition sho ld 3" gi5"n to 7"o7l" 8ho 0ont/i3 t"d to th" o5"/all 0o#7l"t"d tas1-

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CHA$TER ; /#,!#o$&+ph-

.I.LIOGRA$HY
www.wikipidea.com
Total Quality Management $ 3olume - $ &CE(B

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&ndian 2thos nd 3alues $ MF - ,st 'emester $ M=B $ @ohatak

&ndian &nsight into TQM$ Ms. Eeelam =evi$ Mahabir 1ollege of Management J Technology$ Purukshetra 5"aryana6.

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CHA$TER @ C+ e Stu*-

Th" Q "st 'o/ E>0"ll"n0"( A Cas" St d! o' TQM $/a0ti0" in Tata St""l

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A.STRACT:
The case e0amines the #uality initiatives taken by Tata 'teel is the first integrated steel company in the world to win the worlds highest award of #uality$ the =eming pplication ;ri!e. The company TQM e0perience and its preparation for winning the award e0plored and the case also provides information about =eming pri!e. This paper aims to address the issue of e0cellence of #uality strategy in a =eming pplication ;ri!e winner company.

AEY*ORDS: Fusiness 20cellence$ =eming pri!e$ Total Quality

Management

% (INTRODUCTION : Civen the historical background to #uality which started as a assurance functions through inspection prior to dispatch or sale$ the concept of a #uality appears to have its roots more in manufacturing than trading or service organi!ations$ especially large manufacturing organi!ations. fter the logical follow-up to this$ TQM as a company-wide management philosophy started getting attention by a large number of manufacturing organi!ations. Civen an environment of competition and concern for productivity and effectiveness$ as also global opportunities$ many organi!ations including private and public sectors appear to have appreciated the need for implementing a #uality conscious culture across their companies different functions. &ndian industry is facing stiff competition from rivals like$ china$ Porea$ and many other nations. &t is high time that is focused more upon attaining world-class standards in terms of the #uality of its products and services. (f late$ &ndian companies have demonstrated many successes on this front$ such as winning =eming pri!es. ;rior to globali!ation of &ndian economy in ,)),$ the competition in steel industry was limited. Fy adopting measures leading to marginal improvements$ Tata 'teel was ahead of its &ndian competitors. "owever$ the environment changed dramatically and the company had to think out of the bo0. &t became necessary to redefine the
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business elements 5processes$ products$ market-segment$ human resource$ input materials$ plant location$ etc.6$ business priorities$ vision$ strategies$ management tool and techni#ues etc. &n effect$ the company redefined and reoriented itself in a turbulent environment. &t started with &'( )**, certification of various manufacturing and later service units. ;rocess &mprovements through Quality &mprovement ;ro%ects 5Q&;s6$ 3alue 2ngineering ;ro%ects and 'tatistical ;rocess 1ontrol pro%ects and (perations @esearch ;ro%ects by managerial teams was making great contributions in various departments and divisions of the company.

II- QUALITY JOURNEY IN INDIA : &t is known fact that that

concept of #uality has been around for a long time$ but the stress on the word #uality in every aspect of life i.e. in business$ service or social life has increased in the last few decades. Quality has awakened all the nations$ industries and organi!ations around the world. The word .#uality/ means different things to different people. The ranges of meanings include that #uality is e0cellence$ value$ conformance to specifications$ conformance to re#uirements$ fitness for use$ customer satisfaction$ meeting ta% Mahal$ located in gra$ is one of the seven wonders of the world$ the konark sun Temple in (rissa$ are the testimony to the rich cultural heritage are all. rchitectural marvels which boost of high degree of e0cellence and e0cellent #uality. &ndian companies are also participating in the #uality race$ although slowly. They are facing a challenge from the multinational companies since the Covernment of &ndia implemented the policies of liberali!ation$ privati!ation and globali!ation. &n the light of this$ the &ndian companies are in dire need of new ideas$ approaches and techni#ues for attaining a competitive edge. &ndustry associations like the 1onfederation of &ndia 51&&6$ +ederation of &ndian 1hambers of 1ommerce and &ndustry 5+&11&6$ &ndian 'tatistical &nstitute 5&'&6$ Easscom$ and speciali!ed institutions like Eational ;roductivity 1ouncil 5E;16 have a part of their organi!ations devoted to helping the industry in the formulation and implementation of #uality management programmes$ education and training programmes and provide consultancy services. The bureau of &ndian standards$ has also established #uality standards in accordance with international system standards$ with main task of product standardi!ations. Today we witness a world that has changed a world that has changed dramatically since the nineties. Clobali!ation is here to stay.

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III- TQM IN INDIAN COM$ANIES THROUGH DEMING $RIBE (

&ndias interest about TQM came about by years of selfless contribution of one 7apanese ;rofessor yoshika!u tsuda$ invited by confederation of &ndian industry 51&&6 to introduce TQM to &ndian manufacturing industry. "e was the guide assigned by 7apanese union of scientist and engineers that is responsible of the promotion of TQM in 7apan J the world over. The resounding success of several &ndian manufacturing and service firms in recent times has invariably been linked to e0cellent practices to #uality management. &f you consider the auto-component manufactures in &ndia$ many of them won the =eming ward for #uality$ the largest number outside 7apan. 'imilarly$ &ndia has the largest number of 1MM Aevel 4-certified 'oftware 1ompany in the world. 9ith such international recognition in #uality$ these two sectors of our industry were able to compete globally. &ndian companies seem to be in the favorites list of the =eming wards 5termed as the Eobel ;ri!e in the world of manufacturing6 of 7apan. The 7apanese Bnion of 'cientists and 2ngineers 57B'26 'tarted the =eming pri!e in ,)4,. &nitially$ this pri!e was open only to the 7apanese industry$ but in ,)84 it was open thrown open to the rest of the world. +rom ,))8 onwards$ &ndian companies started figuring in the =eming pri!e list$ with 'undaram 1laytons brakes division claiming the honor first. =eming Crand ;ri!e is the highest honor in #uality awarded to a company for e0cellence in Total Quality Management. This pri!e given to companies for demonstrating practicing TQM in areas of production$ customer service$ safety$ human resource$ corporate social responsibility$ environment

,))8 'undram-1layton Aimited$ Frakes =ivision

-**, 'undaram Frake Aining Aimited -**- T3' Motor 1ompany Aimited -**K Frakes &ndia Aimited$ +oundry =ivision Mahindra and Mahindra Aimited$ +arm 2#uipment 'ector@ane Frake Ainings Aimited 'ona Poyo 'teering 'ystem Aimited -**> '@+ Aimited$ &ndustrial 'ynthetics Fusiness Fusiness Aucas- T3' &ndo-Culf +ertili!ers Aimited

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-**4 Prishna Maruti Aimited$ 'eat =ivision @ane 2ngine 3alves Aimited @ane T@9 'teering 'ystem Aimited$ 'teering Cear =ivision -**M ashi &ndia Class Aimited$ Aimited -**8 Tata 'teel Aimited -*,* Eational 2ngineering &ndustries Aimited 5&ndia6 -*,, 'anden 3ikas 5 &ndia 6 Aimited The =eming Crand ;ri!e -*,- Tata 'teel Aimited 5&ndia6 @ane 5Madras6 Aimited 5&ndia6 AucasT3' Aimited 5&ndia6 uto Class =ivision @ane 5Madras6

IV- CASE( TQM JOURNEY OF TATA STEEL :

Tata 'teel is among the top ten global steel companies with a crude steel production capacity of -L.4 million tones per annum 5mtpa6. Tata steel has been practicing TQM since the late ,)8*s which was when the Tata steel initiated several #uality activities O #uality circle$ &'( certification$ #uality improvements using %uran methods$ etc. The steel giant won the deming application pri!e -**8 J deming grand pri!e 5=C;6 -*,- for achieving distinctive performance improvement through the application of total #uality management. &n -***$ after winning the 7@= Q3 ward$ by going through the deming process$ Tata 'teel discovered the deeper meaning of TQM for achieve the ne0t #uantum %ump in performance and improvement. &n -**4$ Tata 'teel conducted a TQM diagnosis along with the 7B'2 team for getting the status of TQM implementation in the organi!ation.

: St/at"gi0 C $oli0! Manag"#"nt- Tata 'teel is committed towards sustainable development and growth as an integral part of its business philosophy. +irst adopting the Total Quality Management 5TQM6 philosophy as a part of 1ompetitive 'trategy was formally launched in the company in late ,)8*. &t started with massive effort on education and training on TQM. D Dail! Manag"#"nt - =aily Management is the fundamental of TQM in Tata 'teel. &ts needs to institutionali!e processes leading to long O term substances to its performance. =aily management provides the solid foundation for substance to Tata 'teel. The company established a

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standardi!ed approach for integrating daily management activities in various functions such as operations$ maintenance$ customer services etc. : $"o7l" Manag"#"nt - the most fundamental challenge was to create a mindset that looks at improvement activities as essential for achieving targets and goals. T T 'teel create guidelines and reference manuals to have uniformity and alignment across the organi!ation$ dealing with K4$*** employees$ in e0plicitly stating and documenting improvement targets and how to go about achieving these in a systematic manner$ in standardi!ed approaches and creating alignment to profits and goals and so on.

V- AFTER *INNING THE $RIBE :

The defect rate in the manufacturing process at Tata 'teel decreased substantially and customer returns came down as a result of these #uality control initiatives. Tata 'teel noticed many tangible and intangible benefits in their %ourney of TQM. There were all-round improvement in customer satisfaction$ new product development$ supplier satisfaction$ employees and their family satisfaction$ breakthrough achievement in business results. Tata 'teel believes that =eming ;ri!e is not only a ticket for TQM %ourney towards organi!ational e0cellence. Quality goals are moving targets. &t knows that its future lies in further improving the product #uality and productivity along reducing costs and implementing lean manufacturing systems and T;M.

VI- LEARNING:
1ompulsion of competitive business environment is not merely to do well$ but to do well than the competitiveness. This challenging situation is compelling industries to opt for new strategies leading to superior performance: the goal of TQM system. This calls for rethinking and reworking of an organi!ations e0isting processes$ position$ posture and attitude with a view to transforming the organi!ation to enable it to cope with the changing conte0t of business$ where customer is king. TQM provides the vehicle for change and transformation by making the organi!ation more customers focused people driven$ fle0ible and committed to continuous improvement.

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The present study has resulted in the following valuable lessons: ,. Clobali!ation has thrown new challenges as well the opportunities. -. &mplementation of TQM leads to improvement in performance. K. 1ulture is an important issue for the success of TQM. >. wards models provide a roadmap$ a framework for e0cellent.

F#$) ( /enef#t of TQM S- te1

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VII- CONCLUSION:
1ontinuous improvement is an integral part of culture in Tata 'teel. Tata 'teel addresses all aspects of social$ environmental and economic performance like safety and health of the people$ resource conservation$ development of innovative products and processes$ value creation for all stakeholders and contributing to the prosperity of the communities and nations. Tata 'teel Quality policies guide in its approach such that #uality principles and practices are applied throughout the business using &'()**,$ the global #uality and customer relationship standard. 9ith the Tata 'teel better understanding of TQM on the =eming pplication ;ri!e %ourney$ its customer focus and market orientation have undergone a sea-change. 9e must understand that although our companies have won the crucial battle of saving their home turf$ the war is still not over as long as we do not make our stronghold in the international arena. 'o far$ our companies have been attaching the highest priority to attaining &'( certifications$ but they keep in mind that if &'( clauses are not implemented seriously$ the companies may be deceiving themselves. The cru0 of the issue is that whatever #uality philosophy we follow$ be it TQM$ 'i0 'igma$ &'( )***$ or something else$ we must have a continuous !eal and serious intentions of improving the #uality of our products and services. Tata 'teel has inculcated the philosophy of Total Quality Management and Fusiness 20cellence as part of the companys 1orporate Fusiness 'trategy. ny company can gain competitive advantage and move towards Fusiness 20cellence as described in this paper. Tata 'teel has done this because of its foresight and the vision it had among the Top Management Aeadership and support from all its employees in the company. These companies have as prepared themselves to compete and be successful in a competitive globali!e world.

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VIII- REFERENCES:
%. P ($ H. and CA2EE"$ M.$ -**K$ the leading edge in Q+=: past$ present and future$ &nternational 7ournal of Quality J@eliability Management$ 3ol.-*$ Eo.,$ pp.-*-K4. )- PP2@M E'$ ". .$ F(C2@=$ ;. and 3('$ F.$ ,)))$3irtuous and vicious cycles on the road towards international supply chain management$ &nternational 7ournal of (perations and ;roduction Management$ 3ol.,)$ Eos.4-L$ pp.4L4-48,. +- F2M(9'P&$ P.$ ,)),$ @estoring the ;illars of "igher 2ducation$ Quality ;rogress$ 3ol.->$ Eo.,*$ pp.KM->-. ,. Fowen$ =.2. 5,)8L6$ Managing customers and human resources in service organi!ations. "uman @esources Management: -4K-K8> 9- Fuckley$ . 5,))L6. The essence of Total Quality Management. 7ohn Fank. ;rentice "all of &ndia. :. 1arothers 7r.$ C.". 5,)8L6. +uture (rgani!ations of 1hange. 'urvey of business: ,L-,M. ;. 1asey$ @G5,))-6. Eon-traditional view of customer satisfaction- study of the merican ;roductivity and &nventory 1ontrol 'ociety. B.'. : ,K*-,K-.

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