TQM In Global Scenario

By Deborah Miranda XMBA 15

Total Quality Management

Total quality management (TQM) consists of organization-wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high-quality products and services to customers. While there is no widely agreed-upon approach, TQM efforts typically draw heavily on the previously-developed tools and techniques of quality control. TQM enjoyed widespread attention during the late 1980s and early 1990s before being overshadowed by ISO 9000, Lean manufacturing, and Six Sigma. TQM History The history of Total Quality Management (TQM) began initially as a term coined by the Naval Air Systems Command to describe its Japanese-style management approach to quality improvement. An umbrella methodology for continually improving the quality of all processes, it draws on a knowledge of the principles and practices of:

The behavioral sciences The analysis of quantitative and non-quantitative data Economics theories Process analysis

TQM Timeline

Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. industry. Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose as workers were deprived of a voice in the conditions and functions of their work. The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by participation.

1920s

1930s

Walter Shewhart developed the methods for statistical analysis and control of quality.

W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and executives. Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough. Armand V. Feigenbaums book Total Quality Control, a forerunner for the present understanding of TQM, was published. Philip B. Crosbys promotion of zero defects paved the way for quality improvement in many companies.

1950s

1968

The Japanese named their approach to total quality companywide quality control. Kaoru Ishikawas synthesis of the philosophy contributed to Japans ascendancy as a quality leader.

TQM is the name for the philosophy of a broad and systemic approach to managing organizational quality. Quality standards such as the ISO 9000 series and quality award programs such as the Deming Prize and the Malcolm Baldrige National Quality Award specify principles and processes that comprise TQM.

Today

A core definition of total quality management (TQM) describes a management approach to longterm success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work. The Primary Elements of TQM Total quality management can be summarized as a management system for a customer-focused organization that involves all employees in continual improvement. It uses strategy, data, and effective communications to integrate the quality discipline into the culture and activities of the organization.

To be successful implementing TQM, an organization must concentrate on the eight key elements: 1. 2. 3. 4. 5. 6. 7. 8. Ethics Integrity Trust Training Teamwork Leadership Recognition Communication

Key Elements TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of these eight key elements. These elements can be divided into four groups according to their function. The groups are: I. Foundation It includes: Ethics, Integrity and Trust. II. Building Bricks It includes: Training, Teamwork and Leadership. III. Binding Mortar It includes: Communication. IV. Roof It includes: Recognition. I. Foundation TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept. 1. Ethics Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. 2. Integrity Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity.

3. Trust Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risktaking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. II. Bricks Based on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes: 4. Training 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. 5. Teamwork To become successful in business, 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. There are mainly three types of teams that TQM organizations adopt: A. Quality improvement teams or excellence teams (QITs) These are temporary teams with the purpose of dealing with specific problems that often recur. These teams are set up for period of three to twelve months. B. Problem solving teams (PSTs) These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months. C. Natural work teams (NWTs) These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week. 6. Leadership It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an

inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down throughout the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals. III. Binding Mortar 7. Communication It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended. There are different ways of communication such as: A. Downward communication This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM. B. Upward communication By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empowering communication, where supervisors keep open ears and listen to others. C. Sideways communication This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner. IV. Roof 8. Recognition Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams. Detecting and

recognizing contributors is the most important job of a supervisor. As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as,

Ways It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc. Places Good performers can be recognized in front of departments, on performance boards and also in front of top management. Time Recognition can be given at any time like in staff meeting, annual award banquets, etc.

We can conclude that these eight elements are key in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the work place. Without these elements, the business entities cannot be successful TQM implementers. It is very clear that TQM without involving integrity, ethics and trust would be a great remiss, in fact it would be incomplete. Training is the key by which the organization creates a TQM environment. Leadership and teamwork go hand in hand. Lack of communication between departments, supervisors and employees create a burden on the whole TQM process. Last but not the least, recognition should be given to people who contributed to the overall completed task. Hence, lead by example, train employees to provide a quality product, create an environment where there is no fear to share knowledge, and give credit where credit is due is the motto of a successful TQM organization. Benefits of TQM The following direct and indirect benefits that total quality management (TQM) can offer organizations:

Strengthened competitive position Adaptability to changing or emerging market conditions and to environmental and other government regulations Higher productivity Enhanced market image Elimination of defects and waste Reduced costs and better cost management Higher profitability

Improved customer focus and satisfaction Increased customer loyalty and retention Increased job security Improved employee morale Enhanced shareholder and stakeholder value Improved and innovative processes

The benefits of total quality management are endless, helping an organization get results. When planning and implementing a total quality management system there is no one solution to every situation. Each organization is unique in terms of the culture, management practices, and the processes used to create and deliver its products and services. The TQM strategy will then vary from organization to organization; however, the primary elements should be present in some format. Generic Model for Implementing TQM 1. Top management learns about and decides to commit to TQM. TQM is identified as one of the organizations strategies. 2. The organization assesses current culture, customer satisfaction, and quality management systems. 3. Top management identifies core values and principles to be used, and communicates them. 4. A TQM master plan is developed on the basis of steps 1, 2, and 3. 5. The organization identifies and prioritizes customer demands and aligns products and services to meet those demands. 6. Management maps the critical processes through which the organization meets its customers needs. 7. Management oversees the formation of teams for process improvement efforts. 8. The momentum of the TQM effort is managed by the steering committee. 9. Managers contribute individually to the effort through hoshin planning, training, coaching, or other methods. 10. Daily process management and standardization take place. 11. Progress is evaluated and the plan is revised as needed.

12. Constant employee awareness and feedback on status are provided and a reward/recognition process is established. Five Strategies to Develop the TQM Process Strategy 1: The TQM element approach The TQM element approach takes key business processes and/or organizational units and uses the tools of TQM to foster improvements. This method was widely used in the early 1980s as companies tried to implement parts of TQM as they learned them. Examples of this approach include quality circles, statistical process control, Taguchi methods, and quality function deployment. Strategy 2: The guru approach The guru approach uses the teachings and writings of one or more of the leading quality thinkers as a guide against which to determine where the organization has deficiencies. Then, the organization makes appropriate changes to remedy those deficiencies. For example, managers might study Demings 14 points or attend the Crosby College. They would then work on implementing the approach learned. Strategy 3: The organization model approach In this approach, individuals or teams visit organizations that have taken a leadership role in TQM and determine their processes and reasons for success. They then integrate these ideas with their own ideas to develop an organizational model adapted for their specific organization. This method was used widely in the late 1980s and is exemplified by the initial recipients of the Malcolm Baldrige National Quality Award. Strategy 4: The Japanese total quality approach Organizations using the Japanese total quality approach examine the detailed implementation techniques and strategies employed by Deming Prize winning companies and use this experience to develop a long-range master plan for in-house use. This approach was used by Florida Power and Lightamong othersto implement TQM and to compete for and win the Deming Prize. Strategy 5: The award criteria approach When using this model, an organization uses the criteria of a quality award, for example, the Deming Prize, the European Quality Award, or the Malcolm Baldrige

National Quality Award, to identify areas for improvement. Under this approach, TQM implementation focuses on meeting specific award criteria. Although some argue that this is not an appropriate use of award criteria, some organizations do use this approach and it can result in improvement. TQM implementation by Xerox Corporation Total Quality Management (TQM) is a term used to define quality programs corporations use to help increase the profit share and the customer relations of the corporation and can consist of different programs that different companies use to obtain the results of customer satisfaction, better quality products, and a decrease in the defects of the products. Total Quality Management in the Xerox Corporation includes programs such as benchmarking, reduced supplier base, and leadership teams. The Xerox Corporation started its thrive towards TQM in the 1970s with the invention of PARC, Palo Alto Research Center. This center was created to do research in computer science, electronics, and material science. There are same basic principles that PARC has identified as important to research, "1. Research on new work practices is as important as research on new products, 2. Innovation is everywhere; the problem is learning from it, 3. Research cant just produce innovation; it must coproduce it, and 4. The research departments ultimate innovation partner is the customer". Research is a key component when it comes to Total Quality Management. The only way to make yourself better is to learn new things and learn when you are doing things wrong so that the errors can be fixed. By opening up PARC Xerox has given itself a place to help with the innovation process of the corporation and thus allowing the corporation the means to do its job better. Alos, PARC is used as a way of finding out what the customer wants, if the customer can be satisfied then the corporation is one step closer to being a strong thriving company with Total Quality Management. Opening the research facility was one of Xeroxs ways of implementing TQM before TQM was even invented. Now that TQM has become known in the marketplace Xerox has established its own program to obtain it. The Xerox corporation focuses on benchmarking, a reduced supplier base, and leadership teams as a way of producing Total Quality Management. Benchmarking is a "standard or point of reference in measuring or judging quality, value, etc.". Xerox looks at what the competition is doing and sets a level of quality and value that all of its products are compared against. These levels of quality are also used by other companies because of Xeroxs excellent standards. Once the standard that has been set is met then a new and higher standard

is set so that the company is continually striving to do better and have a higher quality product. The second method Xerox is using in its strive for TQM is to reduce its supplier base. A supplier base is the amount of companies that the ordering company, in this case Xerox, gets its materials from. Xerox has gone from individual suppliers for each of the different manufacturing facilities to a consolidated group of suppliers for all of the manufacturing facilities. This has drastically cut the amount of suppliers needed which increases accountability of the suppliers to get the materials to Xerox on time and it decreases some overhead costs because of shipping reductions and economies of scale discounts. The smaller supplier base also gives Xerox more control in the corporations decision processes. If the company wants to make a change that affects the way it uses its suppliers there are less problems arising from having to many different suppliers. Furthermore, there are a reduced amount of people needed in overseeing the ordering process from the suppliers which allows for a decrease in positions and less of a chance for error. The third method Xerox uses to help in Total Quality Management is leadership teams. Leadership teams are a new concept that many companies are adapting. These teams consist of a group of people with different areas of specialty. The main functions of the teams are to produce a product for the lowest possible cost with the highest quality. These teams can have jobs that range from finding ways to cut costs all the way to how to handle difficult employees and anything in between. The teams generally decide on what special project they are going to work on. The teams also decide what the hours are they are going to work and the salaries they are going to get for doing the jobs. Leadership teams also are put together to train other people how to work in teams and how to take and active role in the workplace with your job. Xerox has established a program called Leadership Through Quality (LTQ) and a Quality Training Task Force for its companys leadership teams. "Today, more than 100,000 Xerox employees worldwide have been trained in this process, which stresses continuous improvement and defines quality precisely as meeting customer requirements". Through Xeroxs effort with TQM the corporation has won the Baldrige Award as well as a few other awards. The Baldrige Award "has come to signify a standard of excellence in total quality management, and the practices and achievements of each year s award winners have been examined with considerable interest". The award was created to identify companies that are going above and beyond the process of making products for cash. These companies are establishing guidelines for excellence. Part of the benefits or downfalls of winning the award, depending on the way you look at it, is that the

company who wins the award must share their company's policies with competitors. The winning company gives plant tours and gives lectures on its TQM to other companies and students who are interested in learning about TQM. It is a share the knowledge attitude of the founders of the award. If a company is not willing to give others the knowledge they have found then they will not win the award. The idea of share the knowledge is to help companies do better in the global market and to help these companies survive in the long run with increasing competition. The more businesses in the market place the more competition there is and the more jobs there are. The Baldrige Award is only one of the effects of Total Quality Management for the Xerox Corporation. Another example of the effects of TQM on the Xerox Corporation is the employee and customer support given to the company. Xerox hosts a teamwork day in which teams are able to come in and show off the projects that they are working on to other employees and to visitors. The first year the amount of teams that attended was thirty. The next year the amount of teams doubled and there were five hundred visitors attending as well. There are no incentives for the teams to take part. The only recognition the people get from the day are thank-you notes. This is an excellent example of how TQM is working within the company. The workers want to take part in this activity because of a sense of competition to come up with the best ideas and pride in the work the team has done. These are the kind of employees that help make a corporation become a success and stay a success. The third effect of Total Quality Management is the amount of knowledge the company has learned by implementing the new procedures. The new procedures include research as part of the TQM process. Xerox does surveys to customers, stockholders and employees as part of this research. These surveys are mailed out to the respective people and ask questions about the satisfaction of the products and ask about improvements that can be made to the products. The surveys also take into consideration suggestions made by the employees as to how to improve the products and to improve the production process. "Xerox and other leading TQM companies have similar processes of surveying employees, mass media, government, and investors on an ongoing basis and sharing the information in the company ". These surveys let the employees know the quality of the job they are doing and how they can improve their performance on that job. This allows empowerment of the employees and increases the improvement time and it increases the rate in which improvements are made. These surveys help to strengthen the corporation because of the fact that the company responds to then and the corporations image is improved because good customer relations are developed. The surveys work well in the Xerox corporation because they are taken seriously and are responded to. The company wants to be the best it can be and it is shown partly through these surveys.

In conclusion, Total Quality Management plays a major role in the Xerox Corporation. It is the major philosophy of the company and has played an important role in the success of the Corporation. The strategies Xerox uses include issuing surveys and developing events for the employees to take part in to further benefit the corporation. The effects of the TQM process include the winning of the Baldrige Award as well as various other Total Quality Management Awards and the amount of knowledge the company has gained from using this philosophy.