Total quality management Project

Topic Of Project: Past, Present & Future Of TQM

By: Shivam khandelwal
TY E 3283
PRN:09020621252

















About Total Quality Management

The denition of quality depends on the role of the people dening it.
Most Consumers have a difficult time dening quality, but they know it
when they see it. For example, although you probably have an opinion as
to which manufacturer of athletic shoes provides the highest quality, it
would probably be difficult for you to dene your quality standard in
precise terms. Also, your friends may have different opinions regarding
which athletic shoes are of highest quality. The difficulty in dening
quality exists regardless of product, and this is true for both
manufacturing and service organizations. Think about how difficult it
may be to dene quality for products such as airline services, child day-
care facilities, college classes, or even textbooks. Further complicating
the issue is that the meaning of quality has changed over time. Today,
there is no single universal denition of quality. Some people view
quality as performance to standards. Others view it as meeting the
customers needs or satisfying the customer. Lets look at some of the
more common dentitions of quality.

TQM is a management philosophy that supports the process of
continuous improvement within an organization and where total emphasis
is placed on the customer. In the socioeconomic viewpoint, TQM defines
the customer as all members of society and facets of environment that
interact with the activities of the company.
A company that integrates sustainable development within its TQM
management processes could set itself apart from the competition, and
perhaps force its competition to include sustainable development within
their own operational considerations as well, thereby benefiting society as
a whole. This trend should also reduce the demand from society to
governments for mandates controlling business practices.
The very nature of TQM, and how it is implemented, requires sustainable
development policy consideration. If it is not considered, then quality
management for that firm will likely fail, and it will probably lose its
competitive advantage.




The Evolution Of TQM
The concept of quality has existed for many years, though its meaning
has changed and evolved over time. In the early twentieth century, quality
management meant in- specting products to ensure that they met
specifications. In the 1940s, during World War II, quality became more
statistical in nature. Statistical sampling techniques were used to evaluate
quality, and quality control charts were used to monitor the production
process. In the 1960s, with the help of so-called quality gurus, the
concept took on a broader meaning. Quality began to be viewed as
something that encompassed the entire organization, not only the
production process. Since all functions were responsible for product
quality and all shared the costs of poor quality, quality was seen as a
concept that affected the entire organization.
The meaning of quality for businesses changed dramatically in the late
1970s. Be- fore then quality was still viewed as something that needed to
be inspected and corrected. However, in the 1970s and 1980s many U.S.
industries lost market share to foreign competition. In the auto industry,
manufacturers such as Toyota and Honda became major players. In the
consumer goods market, companies such as Toshiba and Sony led the
way. These foreign competitors were producing lower-priced products
with considerably higher quality.
To survive, companies had to make major changes in their quality
programs. Many hired consultants and instituted quality-training
programs for their employees. A new concept of quality was emerging.
One result is that quality began to have a strategic meaning. Today,
successful companies understand that quality provides a competitive
advantage. They put the customer first and define quality as meeting or
exceeding customer expectations.
Since the 1970s, competition based on quality has grown in importance
and has generated tremendous interest, concern, and enthusiasm.
Companies in every line of business are focusing on improving quality in
order to be more competitive. In many industries quality excellence has
become a standard for doing business. Companies that do not meet this
standard simply will not survive. As you will see later in the chapter,
national quality awards and quality certifications that are coveted by
businesses demonstrate the importance of quality.
The term used for todays new concept of quality is total quality
management or TQM. Figure 5-3 presents a timeline of the old and new
concepts of quality. You can see that the old concept is reactive, designed
to correct quality problems after they occur. The new concept is
proactive, designed to build quality into the product and process design.


Total Quality Management: Past
Along with many other modern management practices TQM originated
and was developed within Japanese industry after the Second World War.
Japan was a defeated nation with few natural resources and an inability to
feed a population of 90 million, by it's self. The future lay in successfully
exporting consumer products across the world market, yet it had a
reputation for shoddy goods and management systems that were
described as "feudal" and "despotic".
General Douglas McArthur realised the need for radical change and was
responsible for the regeneration of the Japanese economy. Key to this
was the dismissal of the old management and their systems, replacing
them with younger men capable of making the changes needed to
develop their economy.
As a result the Union of Japanese Scientists and Engineers (JUSE) was
formed, one of their first
actions was to invite a well-known American statistician Dr. W. Edwards
Deming, to present his ideas to them. Deming addressed the top business
leaders in Japan, including managers from Companies which are now
household names, Sony, Nissan, Mitsubishi and Toyota.
They introduced new management methods, TQM being a key one. This
led to Japan being the world
leader in quality and productivity.
Deming had made a highly significant contribution during the war in
increasing America's industrial efficiency.
After the war was won, although well received by engineers and
scientists, top management did not respond to his ideas. Industry went
back to the old established ways of trying to meet consumer market
opportunities.
In Japan however Deming found a much more receptive audience, his
ideas once implemented led during the 80s, to American business being
battered by Japan's superior industrial practices.
In order to compete and survive, the rest of the world was forced to take
his ideas seriously, adopting "Japanese methods" such as TQM and Lean
Manufacturing.
TQM started with Elton Mayos Hawthorne experiments from 1927
through 1932. These experiments showed that workers participation in
decision-making improves productivity. In the 1940s US was in World
War II. WWII pushed standardization, statistical control, and best
manufacturing practices.
In the 1950s Edward Deming taught statistical methods an
Dr.Juran taught quality management techniques to the Japanese.


Armand Feigenbaun wrote Total Quality Control. This became the
first work that started many Total Quality Management theories. In
1954 Abraham Maslow created a pyramid of self actualization
needs. In terms of work productivity, the lower levels of needs
must be met prior to employees performing at higher levels. The
needs in order are
1. Physiological which is to eat, sleep, and have shelter
2. Safety which is to have economic and physical security
3. Belonging which is to be accepted by family and friends
4. Esteem which is to be held in high regard
5. Self actualization which is to achieves ones best
In the 1960s Douglas McGregor formed the Theory X and Theory Y
leadership models. A Theory X leader applies a negative approach to
management. They assume most workers really do not like to work and
try to avoid work. A Theory Y leader believes workers want to do a good
job. They believe workers will offer solutions to problems and participate
in problem solving events. An involved employee is a productive
employee. In 1968 the Japanese shaped the phrase Total Quality Control.
TQC is a companywide quality control philosophy. This philosophy
drove Japan to the world quality leader in the 1970s. For the most part,
Japan remains the quality leader. However the world has significantly
closed the gap. In the 1980 the U.S. Navel Air Systems coined the TQM
phrase. The Navy based most of the principles on the Japanese Total
Quality Control philosophy. Many companies adopted TQM during the
80s. TQM spread like wild fire. Many companies saw significant gains in
productivity. However many companies started the program and failed
miserably because they weren't willing to change. In the 1990s' TQM
evolved. Experts introduce new methods that supported TQM. These
include Lean Manufacturing and Six Sigma. Organizations could now
become certified to ISO 2009.The Malcom Baldridge National Quality
Award (MBNQA) was created for the US. MBNQA auditors give this
award to companies who show the most outstanding quality management
practices. In the 2000s, ISO revised ISO 9001 to focus more on business
planning, quality management and continuous improvement. Other
certification standards were created including AS9100 for aerospace,
TS16949 for automotive, ISO 14001 for environmental, TL9000 for
electronics, and ISO 17025 for laboratories. These standards all include
the ISO 9001 elements.




Total Quality Management: Present
The techniques of total quality management (TQM) with the concepts of
sustainable development have been applied to socioeconomic policy. It is
applied primarily to the typical business concern.
Business, through local and international trade, has a profound impact on
the ability of a culture to provide basic human needs, and other goods and
services. Therefore, commerce and how it conducts itself internally and
interacts with its operating environment is axial to the success of
sustainable development. Long-term business management requires the
successful management of losses and gains; and, so it is with sustainable
development.
Sustainable development can be defined as the management of losses and
gains resulting from the degradation of environmental factors that affect
the ability of life, any life, to survive, now or in the future. The "winners
and losers" of environmental impact are often defined by the decisions
made directly from those entities conducting commerce.
The very nature of TQM, and how it is implemented, requires sustainable
development policy consideration. If it is not considered, then quality
management for that firm will likely fail, and it will probably lose its
competitive advantage.
GATHERING INFORMATION
The major steps in the implementation of TQM yield a marked similarity
to those processes for implementing sustainable development in Our
Common Future. One of the first concerns suggested by Our Common
Future is the development of long term strategies for achieving the
company objectives for sustainable development. Before tactics can be
applied, a definition of the goals, and time line, need to be established. In
process of information gathering following question must be asked-
What is your company's definition of sustainable development?
If your company could make only one change towards sustainable
development, what would it be?
What would be the major focus of sustainable development that our
customers would like us to incorporate the most?
What do our customers think is best about our current socioeconomic
policies? What do they think are the worst aspects?


What will our customers be expecting from us, in terms of sustainable
development in two years? Five years?
What are the sustainable development policies and trends of our
competitors?
What development policies would our associates or employees favor
most? The least?
What is our companys image and how will it be affected by development
programs?
What is the main reason your company is considering to be sustainable?
This process of information gathering should be feasible for almost any
firm to accomplish. The resource demands posed by each question can be
kept as simple as necessary.
COOPERATION
This leads to a second recommendation for implementation. It encourages
the development of processes that will lead to greater cooperation
between economic, public and other multinational entities. The creation
of a government controlled data base as suggested above might serve as a
corner stone of this goal.
Facilitating sustainable development as a feature of TQM requires that all
decisions be made in reference to the customer. Cooperation in this
process can deteriorate between the public and private sector when
variations of the definition for the term customer occur.
ORGANIZATIONAL STRUCTURE
It is suggested that the policies of sustainable development should be
integrated into an existing TQM program. TQM organizations should
have at least one quality circle management team established. A quality
circle management team is made up of different stakeholders at all levels
within the organization that share some common area of responsibility.
The members of the team can change depending upon the objectives,
function, size and organizational structure of the company.
TRAINING
The relationship between education and sustainable development is
paramount education and the dissemination of knowledge as related to
socioeconomic policies should occur on multiple levels:


Government sustainable development educational efforts directed
specifically to business and society.
Professional sustainable development research efforts directed to all
members of society.
Sustainable development educational programs directed to all members
of the TQM quality circle.
TQM quality circle derived sustainable development educational
programs directed to all stakeholders of the business entity.
TQM quality circle derived sustainable development educational
programs directed to customers.
Stakeholder feedback to government agencies or other relevant non-
government agencies (NGOs).
The processes of educational training might be one of the more costly
areas of implementing sustainable development. Fortunately, training is a
continuous function of TQM. Sustainable development should become
another extension of that training. Along with the principles of
sustainable development, TQM quality circles will also need to be trained
on the decision making processes best applied to the management of
sustainable development
EVALUATION
The process of evaluation is critical to successful management. Our
Common Future encourages the evaluation of three phases for managing
towards sustainable development:
First, evaluate your companys activities in terms of ecological impact;
then implement a plan towards sustainable development policy.
Then, evaluate the success and failures of your policy.
Finally, evaluate potential reorganization strategies for increased
ecological considerations within activities associated with trade, energy
usage and other operating factors.
"A systematic, documented, periodic, and objective evaluation is needed
of how well the organization is performing in the area of sustainable
development, not only to facilitate management control practices but also
to asses compliance with company policies, including meeting regulatory


requirements. Sustainable development reporting is a demanding concept
that and goes beyond environmental reporting. It requires that companies
asses their performance in both the environment and the economy in
terms of quality of life today and for future generations.".
MANAGING SUSTAINABLE DEVELOPMENT
As we have seen, the processes of gathering information, cooperation,
organizational structure, training and evaluation are major areas of
concern within the framework of managing a sustainable development
program. The brainstorming of even the simplest socioeconomic program
can usually produce a process of unlimited freedom in design as
compared to other typical operations within the business entity. Such
freedom can create policies, which if not carefully designed, will expose
the business entity to consequences of higher risk.
The TQM quality circle must consider the theme of risk management not
only in its traditional management functions but also in the design
evaluation of its sustainable development programming. Our Common
Future suggests that a sustainable development program is a complex
system, which should be designed in consideration of risks. These
considerations should include human factors safety design, accident
prevention, and liabilities for unintended damages, sabotage, and
ecological or economic damages as a result of improper integration.
CONCLUSION
TQM is offered as a management tool that can be used for organizational
and sustainable development implementation. The characteristics of
TQM closely parallel the objectives for managing towards sustainable
development as outlined in Our Common Future.
Business is recognizing the adoption of sustainable development policy
as a competitive advantage. TQM quality circles must consider
sustainable policy management as a necessary feature of each product or
service life cycle. Sustainable development policy should become a key
aspect of the marketing mix and will be allocated and financed as a
promotional expenditure.
TQM is offered as a systems approach for implementing sustainable
development. The methodology of TQM should reduce the risks
associated with the administration of socioeconomic policy and provide a
way to achieving the goals of sustainable development.
THE FUTURE OF QUALTIY MANAGEMENT


The future of total quality management (TQM) is determined by
determining the scope and depth of the influencing or driving factors that
will shape the body of knowledge, known as TQM, into the future. The
rapid rate of change in global and niche markets has increased pressure
on organizations to become more competitive. TQM is not immune from
such changes. Rather, TQM theory and practice must continually adapt to
be in the vanguard of such change and potential future changes. Overall,
the report indicate that both the mechanistic and organismic aspects of
TQM will continue into the future, along with the continual
representative development of initiatives to meet current and future
organizational change. Furthermore, the TQM discourse will remain a
challenging research area for both academics and practitioners.
developments to the quality management system should meet the
following objectives:
provide authoritative, publicly accessible information on academic
quality and standards in higher education
command public, employer and other stakeholder confidence
meet the needs of the funding bodies and of institutions
meet the relevant needs of all students
rely on robust evidence-based independent judgement
support a culture of quality enhancement within institutions
work effectively and efficiently.
The quality movement provided a solid foundation on which many
U.S. companies managed their return to strong growth following
the difficult 1980s and early 1990s. These quality systems and
processes have subsequently become major influences in
businesses throughout Asia, Europe, Latin America, the Middle
East and Micronesia.
At the same time, however, powerful new global economic forces
were radically changing the concepts of quality and how it was
managed. These forces now make it essential that quality managers
face the future with quality-based management programs that fit
the new business era, rather than continuing with systems that may
have worked in the recent past.
Several trends will impact quality managements future. This
article examines them and the strategies that organizations should
implement as a result.
Demanding customers
By the end of this decade, well over 1 billion men and women, and
the companies that provide products and services to them, will
make up an increasingly demanding customer base in common


markets or regional trade alliances throughout the Americas, Asia
and Europe. Moreover, this figure probably will increase as we
proceed into the 21st century, now within the practical time
horizon for realistic corporate business planning.
At the heart of accelerating sales and market shares that pacesetter
international companies enjoy today is an unflagging
responsiveness to the demanding global customer. Surveys
conducted by General Systems Co. indicate that when a global
market consumer is satisfied with quality, he or she tells six others
about the product or service; if that person is dissatisfied, 22 others
hear about it. When it comes to transactions within industries, data
show that a satisfied industrial customer is seven to eight times
more likely to buy again from the same supplier than from its
competitors. Thats the power of complete quality satisfaction in
todays markets.
As this global economy reaches out to world businesses, it
becomes clear that quality is becoming not only the international
business language for worldwide trade networks but also that
worldwide economic and social forces are fundamentally changing
quality concepts and management. Improved quality now means an
increase in value as well as right performance, service, design and
economy for global customers. This differs from quality controls
former focus on defect reduction alone. Understanding and
speaking this new quality language -- and transforming quality
processes accordingly -- is a principal goal of successful
companies that are becoming sales growth and earnings
profitability leaders in the new global economy.
A closer look at the global economic, social and trade forces upon
which these companies have been built can offer some insight into
their success.
Shifting customer value expectations
Perhaps most important is the fundamental shift in customer value
expectations in the global marketplace.
Ongoing surveys of customer buying patterns throughout major
international markets indicate that nine out of 10 buyers make
quality their primary purchasing standard, as compared with three
or four out of 10 a decade ago. As customers, they increasingly
approach quality as a buying discipline, which they measure by
their total-value perception of the product as well as the
organization that produces it. This means that the quality of the
steel or the merchandising service customers receive is an
important part -- but just a part -- of the complete support, billing
accuracy and delivery reliability package they expect to buy.


For example, routinely and properly washing automobiles as part
of a dealer service call is a simple but nonetheless expected service
that many customers identify as a value differentiator. The service
shows that the dealer cares, and customers appreciate saving the
time and effort. They assume, correctly or incorrectly, that a
responsible dealer can accomplish any technical action. Similarly,
the voluntary elimination by a mobile communications company of
a few dead spots on a main trucking route is one of the primary
buyer-value reasons customers cite for their return sales with that
company rather than with its competitors.
For consumers, this attitude is driven by a need to improve their
standard of living. For business buyers, its driven by economic
pressures that demand reliable, predictable equipment and services
without time-consuming failures or other hidden costs. These
buyers expect a level of quality that is essentially perfect for their
needs, affordable and user-determined.
This demand for complete customer satisfaction indicates a
profound social shift for both global consumers and business
buyers. Organizations that continue to concentrate solely on defect
reduction overlook their customers new buyer-value expectations.
This is most evident in the disparity between many companies
quality satisfaction measurements. Some companies point proudly
to their quality improvement data -- i.e., defect reduction -- even as
customer surveys indicate that buyers believe quality hasnt
improved -- i.e., increased in quality value -- and they are therefore
curtailing their business with these companies.


Economic pressures
Another force is the overwhelming economic pressure on
organizations. Like a giant pair of scissors, the pressure closes in
on many of them from opposing directions. One is the strong
upward pressure due to increasing costs despite concerted
containment efforts; the other is a severe downward pressure on the
price of goods due to market changes. To compound matters, even
after years of cost accounting, many organizations still dont know
what things really cost as a foundation for true cost reduction.
For example, some companies have adopted a slash-and-burn cost-
reduction approach. However, unless its synchronized with
specific improvements in process, cost reduction produces the
same results as weight reduction without a change in lifestyle: It
doesnt stick. Instead, it leads to more cost reduction, more
restructuring and corporate-navel contemplating. As a result, these


companies become out of touch with rapid changes in new
markets, new employee attitudes and new management
approaches.
The key is to directly link customer value enhancement with cost.
Improving quality also improves an organization overall -- from
marketing and design to operations and distribution. Therefore,
cost must include not only operations and sales but also delivering
customer satisfaction.
General Systems survey data show that, at many companies, this
accounts for as much as 25 percent of sales, much of it for quality
failures. For companies in which total quality has been correctly
managed, the figure is 10 percent or less. Total quality initiatives
have established teamwork processes that, by improving quality for
customers, have greatly reduced the costs accrued from failing to
deliver customer satisfaction. These reductions help support quality
value-enhancement programs as well as bottom-line net operating
income. Shareholders and investors can understand such
reductions.
New management approaches
These two forces -- the shift in customer value expectations and
new economic pressures -- lead to a third force: innovative
management approaches to human leadership.
These approaches reject the notion that good management and
successful improvement means getting the ideas out of the bosss
head and into the workers hands. Organizations that embrace this
approach to business improvement become increasingly estranged
from their customers, employees and suppliers. Top-down
planning only serves to isolate organizations from their customers
buying habits. It encourages an atmosphere of intimidation with
suppliers rather than a partnership.
Under the old-school management regime, human resource
improvement programs hardly fare better. They are keyed to flashy
motivational seminars, combined with regular doses of
management speech making. But when employees return to their
jobs to apply what theyve heard, they face the same old
ambiguous management practices and continue to thread their way
through autonomous departmental islands without any bridges
between them.
A very different foundation for business success will characterize
competitive organizations in the future. These quality leadership
companies will:
Make quality the epicenter of increasing revenue growth and
competitive leadership.


Achieve complete customer satisfaction by offering essentially
perfect goods and services whose quality the customer determines.
Accelerate sales and earnings growth through quality failure
reduction.
Innovate in product and service leadership and cycle-time
management.
Restore the fizz to jobs by using tools and resources to encourage
employee participation in quality improvement.
Develop effective supplier partnerships.
Create a seamless quality value network among customer, producer
and supplier relationships.
Provide environmental and safety leadership.
Ensure that quality remains the companys international business
language.

Companies that can implement these processes wont travel under
any single national passport, nor any particular cultural or social
identity. But they will share certain quality management
characteristics. In particular, they will:
Consider their basic objective as continuously accelerating value
for customers, investors and employees.
Emphasize that market-driven means quality according to what
their customers, not the company, say it is.
Lead by a combination of passion, discipline and populism, with
a bias for improvement and an emphasis on communication.
Recognize that sustained growth demands increasing customer
satisfaction, cost leadership, human resource effectiveness and
integration with their supplier base -- all four, all the time.
Foster a deep commitment to fundamental business improvement
through knowledge, skills, democratic problem solving and
teamwork.