UNIT 6 STUDY OF RECENT TRENDS

TQM TOTAL QUALITY MANAGEMENT FOR SMALL ENTREPRISES

MEANING OF QUALITY
Quality is a customers determination, not the manufacturers determination. Quality is viewed as continuous improvement in in performance to satisfy the customers needs and expectations. Definition of quality is Quality is a predictable degree of uniformity and dependability at low cost and suited to market by W Edwards Deming. Quality can also be defined as continually meeting agreed customer needs or fitness for purpose.

TQM
TQM is known by several names such as Total Quality Improvement TQI or Total Quality Control TQC or as Total Quality or Strategic Quality Management SQM. All these mean the same thus TQM means continuous improvement in all parts of an organisation with a view to satisfy customer needs. CII Defines TQM as Meeting the requirements of the internal and external customers consistently by continuous improvement in the quality of work of all employees.

TQM Contd.
TQM consists of three processes Quality Process- It is for understanding who the customer is what are his/her needs and taking steps to completely satisfy the needs of the customer. Management Process for continuous improvement- This refers to managing continuous improvement and does not address any specific organisation.

TQM Contd.
The management process addresses continuous improvement to keep pace with the changing requirements, competitive environment and technological advances. People ProcessIt is initiating and maintaining the TQM it is carried out through involvement of all employees on the basis of three values namely intellectual honesty, self control and respect for others. Now we can define TQM as an intensive, long term effort to transform all parts of the organisation in order to produce the best product and service possible to meet customer needs.

NEED FOR TQM IN SSI UNITS

It is easy to start ssi units but difficult to make them survive. It is mainly because of the ever increasing stiff competition in business brought by liberalisation, privatisation and globalisation of the indian economy. SSI units find it difficult to face competition due to various reasons, and question arises how to develop competitive strength among SSI units to face competition effectively. The answer to this question is QUALITY. Quality serves as a competitive advantage .

Need for TQM Contd

Therefore continuous improvement in quality is required to face the ever increasing competition. It is TQM which ushers continuous improvement in organisational performance. TQM strengthens the competitive strength of the ssi units to face the changing requirements of business.

NEED FOR TQM CONTD..

Thus the need for TQM is for the following reasons Increased efficiency in processes More time for innovation and creativity Higher morale of employees Improvement in the quality of products and services Increased customer satisfaction Larger market share Higher profits and productivity.

TQM PROCESS IN SSI UNITS

TQM involves the following processes Customer satisfaction Processes Continuous Improvement Team Work Personal Initiative Customer satisfactionCustomer is one who buys others goods or services.Today customer dictates production or market. Therefore long term success of a business depends on customer satisfaction.

TQM PROCESS CONTD..

First step is to understand what the customer expects from the product or service provided to them. For any business there are two types of customers, firstly Internal customers these are those individuals or departments within an organisation to whom another department provides their products and services. External customers are those who are the ultimate purchaser or the end user of the product or service. To understand the customer requirements we can follow the steps given below Document the results of the work performed Identify everyone who receives the outputs Pinpoint the output characteristics that customer wants or requires. Verify output requirements, understand the current level of customer satisfaction.

TQM PROCESS CONTD..

ProcessesThe second stage of TQM is this. Process can be defined as series of interdependent tasks that produce
results.This requires transformation of inputs into outputs. Administration, billing, sales, maintainence, recruitment and training are different parts of an organisation in which process exists. Various steps can help define processes in an organisation, these are List team outputs-to document the results of work performed Group similar outputs-to create an outline of the process Name the process-to allow it to be easily referenced Define process boundariesto establish beginning and ending points List process activitiesto provide examples of the tasks involved

Identify inputsto determine the resources required.

TQM PROCESS CONTD..

Continuous improvement in processes This is the third step involved in TQM and means making efforts for continuous improvement in performance.The first step in improving a process is to eliminate the waste associated with the process.Various techniques like value added assessment, minimize checks and inspections help reduce waste in a process. Process simplification is the next step involved in improving process.Experiance suggests that the simpler a process the easier it is to learn and perform consistently. Reducing cycle time is another technique to improve process, as long cycle time causes delays in deliveries to customers.

TQM PROCESS CONTD

Team workThis is the 4th process involved in TQM. A team is a group of people who work together on one or more common processes.These people may be from the same department or any different departments. Effective teamwork has its foundation on consensus. Consensus is a general agreement by everyone involved, consensus is arrived when all members of a team understand a decision.

TQM PROCESS CONTD

Encouraging personal InitiativeTQM process completes with encouraging personal initiative in an organisation.Empowerment breeds personal initiative.An empowered organisation is one in which indivisuals have the knowledge, skill, desire and opportunity to personally succeed in a way that leads to collective organisational success.To prepare employees to take appropriate personal initiative is to train them in the concepts and techniques of TQM.

DIFFERENCE BETWEEN TQM AND ISO

There is a misconception that ISO equals TQM.But in reality ISO is only a part of TQM. Control means avoiding adverse change and improvement is creating a beneficial change. Difference between ISO and TQM ISO 9000 TQM Not necessarily customer Definitely Focussed customer focussed

DIFFERENCES CONTD
ISO9000 TQM
Not integrated with corporate Integral to company Strategy strategy Technical systems and procedures Philosophy, Focussed concepts, tools, focussed

No focus on continuous continuous improvement Improvement is main aim Quality department is responsible Everyone is responsible For quality for quality Can be departmentally focussed Organisation-wide focus ISO9000 are technical and physical TQM is a philosophy where Systems and standards approach is behavioural and human.

ISO
As International Organization for Standardization would have different abbreviations in different languages its founders decided to give it a short all purpose name. So ISO was chosen derived from Greek work ISOS meaning equal. Since then whatever the country, whatever the language the short form of the organizations name always is ISO

What Standards do
They make the development, manufacturing and supply of products and services more efficient, safer and cleaner. Facilitate trade between countries and make it fairer. Provide governments with a technical base for health, safety and environmental legislation. Share technological advances and good management practises. Disseminate innovation. Safeguard consumers and users in general of products and services Make life simpler by providing solutions to common problems.

WHO STANDARDS BENEFIT

ISO standards provide technological, economic and societal benefits For businesses, the widespread adoption of International Standards means that suppliers can develop and offer products and services meeting specifications that have wide international acceptance in their sectors. For Innovators of new technologies, International Standards on aspects like terminology, compatibility and safety help the dissemination of innovation and their development into manufacturable and marketable products.

Who The Standards Benefit

For Customersthe worldwide compatibility of technology which is achieved when products and services are based on international standards gives them a broad choice of offers, they also benefit from the effects of competition among suppliers. For governmentsInternational Standards provide the technological and scientific bases, safety and environmental legislation. For trade officialsThe existence of divergent national or regional standards can create technical barriers to trade.International Standards are the technical means by which political trade agreements can be put into practise. For Developing countriesInternational Standards give developing countries a basis for making the right decisions when investing their scarce resources. For ConsumersConformity of products and services to International Standards provides assurance about their quality safety and reliability. For EveryoneInternational Standards contribute to the quality of life in general by ensuring that the transport , machinery and tools we use are safe. For the PlanetInternational Standards on air, water, and soil quality, on emmision of gases and environmental aspects of products can contribute to efforts to preserve the environment.

SCOPE OF ISOs WORK

ISO has more than 18000 International Standards and other types of normative documents in its current portfolio. ISOs work programme ranges from standards for traditional activities such as agriculture and construction to mechanical engineering, manufacturing and distribution to transport, medical devices etc to standards for good management practice and for services.

ISOs ORIGIN
In 1946 delegates from 25 countries met in London and decided to create a new international organization of which the object would be to facilitate the international coordination and unification of industrial standards. The new organization ISO officially began operations on 23 february 1947 in Geneva Switzerland.

HOW ISO DECIDES TO DEVELOP A STANDARD

ISO launches the development of new standards in response to the sectors that express a clearly established need for them. An Industry or business sector communicates its requirement for a standard to one of ISOs national members. The latter then proposes the new work item to ISO as a whole. If accepted the work item is assigned to an existing technical committee. The focus of the technical committees is specialized and specific, in addition the ISO also has three general policy development committee that provide strategic guidance for the standards development work.these committees are CASCO conformity assessment COPOLCO consumer policy DEVCO developing country matters.

MANAGEMENT AND LEADERSHIP STANDARDS

ISO standards that provide requirements or give guidance on good management practice are among the best known of ISOs offerings. In addition management standards are divided into those which can be used for certification, such as iso9001 and ISO 14001 and those which are not certifiable, requirement standards but provide guidance such as ISO26000 and ISO31000.

ISO 26000 social responsibility

ISOs management standards are now joined by ISO26000 which gives guidance on social responsibility.It does not follow the management system model and is not a certification. Therefore any claim by an organization to be certified to ISO26000 is false and organizations should beware of any offers to certify them to the standard.

ISO 31000:2009-Risk Management

Published in 2009, ISO 31000 is experiancing a rapid take up by the global market, while it adapts aspects of the management system approach, it is not a certification standard. Global Status Of ISOs management standards two have truly achieved global status and are now thoroughly integrated with the world economy. These are ISO:9001:2008- QUALITY MANAGEMENT Which gives the requirement for quality management systems is now firmly established as the globally implemented standard for providing assurance ability to satisfy quality requirements and to enhance customer satisfaction in supplier-customer relationships.

ISO14001:2004 ENVIRONMENTAL MANAGEMENT

This gives the requirements for environmental management systems confirms its global relevance for organisations wishing to operate in an environmentally sustainable manner. Specific ChallengesISO9001 AND ISO14001 have been joined in recent years by new standards based on the same model, developed to meet the need of specific sectors.