Presented at : A Manufacturing Organization in Noida Date : 29/Nov/2012

1. Total Quality Management Presented at: A Manufacturing Organization in Noida Date: 29/Nov/2012 Location: Noida, U.P., India Duration: 8 Hours

2. Index Introduction to TQM (30 min) Need and Applicability of TQM (60 min) Key Elements of TQM (90 min) TQM and Six Sigma (60 min)Lunch Break (30 min) TQM and Manufacturing (60 min) TQM Practices Overview and a Case Study (90 min) Change Management and TQM DNA (60 min)

3. Index Introduction to TQM (30 min) Need and Applicability of TQM (60 min) Key Elements of TQM (90 min) TQM and Six Sigma (60 min)Lunch Break (30 min) TQM and Manufacturing (60 min) TQM Practices Overview and a Case Study (90 min) Change Management and TQM DNA (60 min)

4. Introduction to TQM What is Total Quality Management? Quality is defined differently and even named and termed differently. Let’s see some definitions ISO 8402: 1994 – All Activities of the overall management function that determine the quality policy, objectives and responsibilities, and implement them by means such as quality control, quality assurance and quality improvement within the quality system Japan Industrial Standard: - As a system of techniques for economically producing goods and services that meets the customer requirements. Fiegenbaum: - Total Quality Control is an effective system for integrating the Quality Development Quality Maintenance, and Quality Improvement efforts of the various groups in an organization so as to enable marketing and engineering production and service at the most economical levels which allows for full customer satisfaction. So, we can define Total Quality Management as follows: TQM is an integrated approach to management for continuous improvement in quality of products manufactured or services rendered. “Integrated” means it is a combination of more than one approach of quality combined in a cohesive manner so that the output or the result is as desired.

5. TQM vs. Other Quality Tools ISO for example has different standards for different purposes, for security management, for product quality etc. Implementing ISO involves going through certain guided principles to ensure that correct approach is taken while rendering services with lesser effort to focus on the final product. ITIL (Information Technology Infrastructure Library) is a set of standards for quality. However, they are applicable to IT related products and services only. Introduction to TQM COPC (Customer Operations Performance Center) CSP (Customer Service Provider) and VMO (Vendor Management Organization) are quality standards specifically designed for the processes that are outsourced to a call centre and for the call centre itself. Six Sigma is used when either there is a defect in existing process or we want process to perform at a higher performance level. So, the approach, is limited to the departments/persons/processes involved in the process and at end. It has a definite problem statement and a defined solution.

6. TQM vs. Other Quality Tools TQM is an effective System of Quality Development, Quality Maintenance and Quality improvement efforts involving all the departments and groups in an organization to allow economy in production of goods or rendering of services along with complete customer satisfaction. Introduction to TQM TQM is an older approach that paved way for Six Sigma later on. Six Sigma and TQM go hand in hand, however differ in their origin and approach. TQM was originally conceived by some American Management Gurus, like W. Edwards Deming, Joseph M. Juran and Armand VallinFeigenbaum. In fact, Armand was the inventor of TQM.

7. Ingredients of TQM TQM is an effective System of Quality Development, Quality Maintenance and Quality improvement efforts involving all the departments and groups in an organization to allow economy in production of goods or rendering of services along with complete customer satisfaction. Introduction to TQM So, the basic ingredients of TQM are: • Quality of Products or Processes is responsibility of all involved in the creation and consumption of the same. • Aimed at Economy in the cost level Aimed at Satisfaction at the consumption level

8. Index Introduction to TQM (30 min) Need and Applicability of TQM (60 min) Key Elements of TQM (90 min) TQM and Six Sigma (60 min)Lunch Break (30 min) TQM and Manufacturing (60 min) TQM Practices Overview and a Case Study (90 min) Change Management and TQM DNA (60 min)

9. Index Introduction to TQM (30 min)  Need and Applicability of TQM (60 min) Key Elements of TQM (90 min) TQM and Six Sigma (60 min)Lunch Break (30 min) TQM and Manufacturing (60 min) TQM Practices Overview and a Case Study (90 min) Change Management and TQM DNA (60 min)

10. Need and Applicability of TQM E.g., if a company is engaged in Networking, Storage, Power and Procurement Solutions Providing. It may face several challenges, in installation of a solution, the AMC part of it, Crisis handling etc. Generally, the responsibility does not get over where the user procures your product or installs of a solution and signs up for maintenance. To understand how TQM can help in all these activities, let’s look at a diagram now. The Manufacturing Org Suppliers Engineers Maintenance Finance Communications

11. Applicability of TQM Issue: Payment Delays Solution: Six Sigma Issue: Defect in Installation Solution: Six Sigma The Manufacturing Org Issue: Software Dev Solution: ITIL Need and Applicability of TQM Suppliers Engineers Issue: System Delivery Solution: ISO Maintenance Issue: Credit card Security Solution: PCI-DSS Issue: Contact Center Efficiency Solution: COPC Finance Communications

12. Applicability of TQM The Manufacturing Org Need and Applicability of TQM There is no need of Issue Resolution Total Quality Management covers all aspects from Top Down andHelps optimize cost, revenue and ensures Customer satisfaction Suppliers Engineers Maintenance Finance Communications/BPO

13. Need of TQM The need of TQM lies in the fact that it is the only Quality tool that can be: 1. Implemented over a larger area The Manufacturing Org 2. Always the end result aimed at Customer or End User satisfaction 3. All Process from Conceiving Idea to Earning Revenue is taken care of Need and Applicability of TQM 4. Aims are Long Term Success 5. Caters to Manufacturing Process that is more dynamic Suppliers Engineers 6. Creates Accountability in each entity Maintenance Finance Communications/BPO

14. Relationship between TQM, JIT & TPM Total Quality Management has a close relationship between the below two Quality Parameters JIT – Just in Time JIT is a manufacturing Program to identify and eliminate all kinds of waste through Just in Time production and involvement of workforce. Two major wastes are WIP inventory and unnecessary delay in flow time. Implementation methodology are Set up time reduction and Pull System production. JIT TPM TQM Need and Applicability of TQM TPM – Total Productive Maintenance TPM is a manufacturing Program designed to maximise equipment effectiveness, throughout its entire life through the participation and motivation of entire workforce. TQM – Total Quality Management includes the below in light ot JIT and TPM TQM basic techniques include cross-functional product design, process management, supplier quality management, and customer involvement. JITbasic techniques include set-up time reduction, pull systems production, JIT delivery by suppliers, equipment layout, and daily schedule adherence. TPMbasic practices are autonomous and planned maintenance, technology emphasis and proprietary equipment development.

15. Relationship between TQM, JIT & TPM The relationships between implementation of TQM, JIT, and TPM and their impact on manufacturing performance was derived by authors , McKonea, Schroeder and Cua. They derived 16 Principles which are essential elements of TQM, JIT and TPM. • Cross-Functional Product Design (TQM Principle) • Process Management (TQM Principle) • Supplier Quality Management (TQM Principle) • Customer Involvement (TQM Principle) • Information and Feedback (Common to all three) • Committed Leadership (Common to all three) • Strategic Planning (Common to all three) • Cross-Functional Training (Common to all three) • Employee Involvement (Common to all three) • Set-up time reduction (JIT Principle) • Pull System Production (JIT Principle) • Delivery by Supplies (JIT Principle) • Equipment Layout (JIT Principle) • Daily Schedule Adherence (JIT Principle) • Autonomous & Planned Maintenance (TPM Principle) • Technology Emphasis (TPM Principle) • Cross-Functional Product Design (TQM Principle) • Process Management (TQM Principle) • Supplier Quality Management (TQM Principle) • Customer Involvement (TQM Principle) • Information and Feedback (Common to all three) • Committed Leadership (Common to all three) • Strategic Planning (Common to all three) • Cross-Functional Training (Common to all three) • Employee Involvement (Common to all three) • Set-up time reduction (JIT Principle) • Pull System Production (JIT Principle) • Delivery by Supplies (JIT Principle) • Equipment Layout (JIT Principle) • Daily Schedule Adherence (JIT Principle) • Autonomous & Planned Maintenance (TPM Principle) • Technology Emphasis (TPM Principle) Need and Applicability of TQM The JIT and TPM Principles are applicable strictly to manufacturing industries. For us, with today’s scope, we would discuss the 4 TQM and 5 Common Principles in detail.

16. Index Introduction to TQM (30 min)  Need and Applicability of TQM (60 min) Key Elements of TQM (90 min) TQM and Six Sigma (60 min)Lunch Break (30 min) TQM and Manufacturing (60 min) TQM Practices Overview and a Case Study (90 min) Change Management and TQM DNA (60 min)

17. Index Introduction to TQM (30 min)  Need and Applicability of TQM (60 min) Key Elements of TQM (90 min) TQM and Six Sigma (60 min)Lunch Break (30 min) TQM and Manufacturing (60 min) TQM Practices Overview and a Case Study (90 min) Change Management and TQM DNA (60 min)

18. Key Elements of TQM – TQM Structure in the Org. Legislation Social Aspects Environment Health Market Technology Intl Quality Std. Others Management Commitment Quality Standards Key Elements of TQM Business Process Plan Act • Output • Quality • Cost • Delivery • Service • Input • Supplier • Resources TQM Tools Check Do Customer (Int./Ext.) Satisfaction

19. TQM Structure in the Org. Management plans the activitiesfor TQM facilitation Different applicable QualityStandards are integrated into the Process and Operation The Quality Standards ensureSupply Chain Management to be correct and smooth Key Elements of TQM The Quality Standards also ensurethe final product to be as percustomer requirement or better Correct inflow and outflow ofservices and products keep customers satisfied So, overall Operation runs on its Optimum Capacity always, so that Cost, Revenue and Customer Satisfactionare always on minimum defect level

20. 1 – Cross-Functional Product Design (TQM) Cross-functional product design is a widely used method for involving different functional areas in new product/process development. It is used when either an existing product has to under go change or a new product is planned orconceived to be launched. The advantages are: Previous Experience are used Buy in of all departments ensures minimum resistance and ease in change management All factors, including Finance, Engineering, Maintenance, Marketing, Operations etc. are taken care of Sustainability of the Product increases Any setback in future is handled with planned procedures Key Elements of TQM Cross Functional Interaction

21. 1 – Cross-Functional Product Design (TQM) The Cross-Functional Product Design should be measured to eliminate chances of a Product design or re-design to miss out on inputs of any Function and to ensure, it is adhered to, at first place. Measurement Parameters are: Direct labour employees are involved to a great extent (on teams or consulted) before introducing new products or making product changes. Manufacturing engineers are involved to a great extent before the introduction of new products. There is little involvement of manufacturing and quality people in the early design of products, before they reach the plant. Design is conceived in teams, with members from a variety of areas (marketing, manufacturing, etc.) to introduce new products. The time to introduce new products is reduced by designing product and process together. Key Elements of TQM Cross Functional Interaction

22. 2 – Process Management (TQM) Process management is the application of knowledge, skills, tools, techniques and systems. Its primary motive is to define, visualize, measure, control, report and improve processes. The goal of PM is to meet customer requirements profitably. It is also called BPM (Business Process Management) and it is different from Program Management or Project Management. The advantages are: Processes are defined as per Quality Parameters and has defined SOPs There can be step-vise approach to a mature Process Management (diagram) It is an ongoing Process, and helps to keep pace with the market change and demand Defects are minimized, Cost and Revenue Optimized and Customer Satisfaction Maximized. Key Elements of TQM

23. 2 – Process Management (TQM) Measuring Process Management is easy. Any PM methodology implemented will come with its own Fail-safe mechanism and check points for checking its proper running. However, to ensure that PM overall is followed in the organization, the following steps can be taken. Measurement Parameters are: A large per cent of the equipment or processes on the shop floor should be under statistical quality control always Extensive use of statistical techniques is done to reduce variance in processes. Variance creates defects in final products that increase waste and cost. Charts and Graphs are used to determine whether our manufacturing processes are in control, Trending’s are done and each repeatable process is gauged to detect Variance. All Processes are monitored using statistical process control Key Elements of TQM

24. 3 – Supplier Quality Management (TQM) Supplier Quality Management ensures that the supplier of raw materials is certified for Quality, example ISO certified. Or the Organization has its own Quality check mechanism that has certified the Supplier. Some Management Guru’s have created a separate chain called SCM (Supply Chain Management) that studies the efforts in improving the standards and maintaining the high standards of Supplier so that the basic input to the Process Management is flawless and optimized. The advantages are: Quality of raw materials are ensured Timely delivery is ensured Cost effective inventory management can be done Supplier back up ensure least disruption in production Competitive price can be negotiated Key Elements of TQM

25. 3 – Supplier Quality Management (TQM) To ensure that Supplier Quality Management is given priority, the following steps can be taken care of, along with creating responsibility centers for maintaining the same. Measurement Parameters are: Key Elements of TQM Quality is the number one criterion in selecting suppliers Mostly those suppliers are used which are certified by the organization Suppliers are certified, or qualified, for quality as per Market Standard

26. 4 – Customer Involvement (TQM) Customer Involvement signifies the inputs of end user being a criterion in deciding the future course of action to improve quality and productivity. This steps means simply having an effective mode of communication between the Organization and End User so that there is a periodic and frequent interaction between them. The communication extracts useful information from the Customers regarding their views on the product. The methodology should be such that elicits information without much of an effort to the end user and should briefly point out and take views that are most beneficial as inputs to the Manufacturing decision at a late stage. The advantages are: Expectations of customers are factored into the design. Re-work is minimized Customers feel involved that boosts market Pre-Assessment of market is determined Anticipation is created in market that also boosts future growth Key Elements of TQM Customers

27. 4 – Customer Involvement (TQM) Measurement of Customer Involvement is apparent if the feedback mechanism from Customers exist and are checked seriously and regularly.It also needs to be checked, how seriously customers take the mechanism and their responsiveness along with the center of responsibility behind the mechanism. Measurement Parameters are: Key Elements of TQM Frequent and close contact with customers Feedback on quality and delivery performance from customers Highly responsiveness to customers’ needs Regular survey of customers’ requirements Customers

28. 5 – Information and Feedback (Common) Information and Feedback is not a strictly TQM practice, however it must be clubbed with TQM practices as discussed until now. It is also important to JIT and TPM. This signifies that the information on Productivity, Quality of manufacturing for last chain/process is available to the employees, especially to the ones who are involved in the process of manufacturing. It also signifies that the frequency of machine breakdowns, defect rates etc. information is readily available. The advantages are: First hand information on fail safe is available Imperative Changes can be incorporated soon Identifications of workable and non-workable feedback can be differentiated and client expectation is set Cyclic Process of Feedback getting into further enhancement ensures the customer satisfaction to increase Key Elements of TQM

29. 5 – Information and Feedback (Common) Measuring Information and Feedback Principle is followed or not is very important. This paves way for the TQM, TPM to be implemented without fail and any defect taken care of at its inception. The different ways implementation of Information and Feedback Principle can be measured are as below. Measurement Parameters are: Key Elements of TQM Charts showing defect rates and schedule compliance are posted on the shop floor Charts plotting the frequency of hardware/software breakdowns are posted on the shop floor Information on quality performance is readily available to employees Information on productivity is readily available to employees

30. 6 – Committed Leadership (Common) As the name signifies, it states that the Leadership team is dedicated to the overall Vision of being a Quality Leader. It signifies that the Leadership Team should have planned their approach to accommodate Quality initiatives in the process of manufacturing. Leadership should be actively involved in the pointers discussed until now and the ones we are going to discuss henceforth. Leadership should be well informed before taking any decision regarding manufacturing deviations or innovations. The advantages are: Confident Teams and Individuals Dedication and Fear of low Quality ensured No assumption based decisions and only parameter of success is correct steps Customer Satisfaction becomes guaranteed Key Elements of TQM

31. 6 – Committed Leadership (Common) Committed Leadership is an aspect that is so easily seen in the Culture and DNA of an organization, that itmay not be measured. However, as per Quality Standards, since all characteristics should be measured, so as Committed Leadership. Measurement Parameters are: Key Elements of TQM All major department heads within plant accept their responsibility for quality Plant management provides personal leadership for quality products and quality improvement All major department heads within our plant work towards encouraging JIT production Our top management strongly encourages employee involvement in the production process Plant management creates and communicates a vision focused on quality improvements Plant management is personally involved in quality improvement projects

32. 7 – Strategic Planning (Common) Strategy or Policies are made at the uppermost levels of Leadership. TQM wants that there should be a Strategic Plan for the organization which is clear and motivated. Generally an organizations strategy revolves around its Vision and Mission. With a clear strategy, it is easy for the Management, Manufacturing Plant and other departments to develop their own pointers to drive towards the common goal. This requires a methodical approach, that is TQM or any other Quality initiative. The advantages are: Goal is defined Misinterpretation of Key deliverables are avoided Larger goal of the organization makes the smaller missions well defined and time bound Leadership’s ease of maneuvering the teams and management is increased towards the Vision Key Elements of TQM

33. 7 – Strategic Planning (Common) Measuring the Strategic Planning is significant, as its existence sometimes is not very clear that creates scope of ambiguities. Also, existence of a Vision not necessarily means the Goal is well defined. Measurement Parameters are: Key Elements of TQM The manufacturing plant has a formal strategic planning process which results in a written mission, long-range goals and strategies for implementation Plant management is not included in the formal strategic planning process. It is conducted at higher levels in the corporation (This is because, Plant Management needs to follow the Strategy formed at the higher level) Plant management routinely reviews and updates a long-range strategic plan

34. 8 – Cross-Functional Training (Common) Employees or Plant Workers needs to be cross trained in handling multiple kinds of tasks. This ensures two aspects. One, less tasks would be in pipeline due to unavailability of skilled employee, reducing waste of time and probable materials. Two, less employees would be without work due to not being able to do an available job when primary employee responsible for the job is not present, reducing waste of time and probably material again. The advantages are: Minimization of wait time for backlog work Minimization of idle time of skillset Reduction of cost for dedicated skills Multiple back ups and accountability Less of human resource and more of skill banks Key Elements of TQM

35. 8 – Cross-Functional Training (Common) Measurement of Implementation of Cross Functional Training is not just base lining that each of the employee has additional skills other than her/his own. It can be measured via the below guidelines. Measurement Parameters are: Key Elements of TQM Employees should receive training to perform multiple tasks (Training) Employees should learn how to perform a variety of tasks/jobs (OJT) Employees should be cross-trained so that they can fill in for others if necessary (Back ups) Employee should be made secondary back upsfor one Primary skill holder (Implementation)

36. 9 – Employee Involvement (Common) As per the name, it simply means that the employees are involved in problem solving and getting around issues that may or are cause of production to go down or stop. Employee Involvement ensures that the solution derived has the accent of employees and any issue faced by the employees in the production are addressed automatically. The advantages are: Less Negative turnover Skill bank enhancement Increase in accountability of employees due to being engaged in problem solving and product design Solutioning is fast due to prior knowledge of product engineering and quality enhancement Key Elements of TQM

37. 9 – Employee Involvement (Common) Assessing Employee Involvement and its degree is essential for the Management to forecast employee behaviour and plan in advance. Also, it ensures that employees are not working in Silos and each Productdesign and enhancement has maximum ideas involved and accountability created. Measurement Parameters are: Key Elements of TQM During problem solving sessions, all team members’ opinions and ideas are considered before making a decision Teams are formed to solve problems Many problems are solved through small group sessions (say, in past 3 years) Problem solving teams help improve manufacturing processes at this plant Employee teams are encouraged to try to solve their problems as much as possible

38. TQC – Total Quality Control TQC is nothing but TQM only. In definition and approach both are the same. Sometimes, TQM is called TQC because TQM is an approach to Quality Control that goes beyond Statistical Measurement and Regulation. It suggests that a complete overview and re-evaluation of the specification of a product is necessary, rather than just considering a set of alterable features within an existing product. Key Elements of TQM If the original specification does not reflect the correct quality requirements, quality cannot be inspected or manufactured into the product.

39. Index Introduction to TQM (30 min)  Need and Applicability of TQM (60 min) Key Elements of TQM (90 min) TQM and Six Sigma (60 min)Lunch Break (30 min) TQM and Manufacturing (60 min) TQM Practices Overview and a Case Study (90 min) Change Management and TQM DNA (60 min)

40. Index Introduction to TQM (30 min)  Need and Applicability of TQM (60 min) Key Elements of TQM (90 min) TQM and Six Sigma (60 min)Lunch Break (30 min) TQM and Manufacturing (60 min) TQM Practices Overview and a Case Study (90 min) Change Management and TQM DNA (60 min)

41. TQM and Six Sigma Six Sigma is a methodology and TQM is an overall practice that encompasses several Statistical Quality Methodology and Initiatives along with factoring human elements TQM is a Framework of Principles and Systems Approach. All nine Elements we discussed for TQM, there are few which can use Six Sigma as a method of usage. Generally, a Six Sigma approach covers one or more areas of TQM Elements As per Philip Crosby:Pre-determined requirements, design activities and manufacturing practices are the basis of quality product and quality definition with be ‘conformance to requirement’. This definition ensures zero defect product as 100% conformance to requirement is the only acceptable quality measure. So it is Management’s responsibility to create correct requirements. TQM and Six Sigma As per Joseph M. Juran:Quality is the final product being in ‘conformance to specifications’ or ‘conformance to standards’. However, in terms of manufacturing, this definition is not accurate to T because at a Managerial Level, conformance to specification is only one of the many means to reach at end product that is 100% defect free.

42. Other Definitions for Quality TQM and Six Sigma

43. Other Definitions for Quality TQM and Six Sigma

44. TQM and its Principles in relation to 6σ 1. Quality Integration Quality cannot be achieved by applying inspection at end of the process. Rather, Quality is achieved by integrating all interdependent components and measuring quality for each of them. 2. Quality First (Prevention, not Inspection) Quality is neither a holistic approach nor an audit mechanism. It has to be engineered into each micro level elementary step and has to be integrated from the very beginning. TQM and Six Sigma 3. Customer Orientation As per TQM, an Organization’s Objectives, Structural and Managerial process should be established to serve the Customer. 3. Continuous Improvement With increasing demands from Customer, Competitors with cutting edge technology and harsh politicalconditions, the only means to survive is CI. 3. Fact based decisions A Manufacturing business needs quicker decisions in the face of cost control and market penetration. With Facts and Figures, decision taken is risk-proof to a great extent.

45. PDCA PDCA Cycles are an approach to Operations and Manufacturing that constitutes Plan, Do, Check and Act TQM and Six Sigma Which helps in Problem Identification, Displaying Improvement Areas, Clearing Ambiguities and Acknowledging the Solution, finally, implementing it. The PDCA Steps are: Standardize an operation and activities. Measure the standardized operation (find cycle time and amount of in-process inventory) Gauge measurements against requirements Innovate to meet requirements and increase productivity Standardize the new, improved operations Continue cycle ad infinitum

46. TQM System Approach Quality Control is specific to the Center of Excellence of QC and forms major part ot Routine Quality Job Quality Planning starts from Leadership, enforced by Management and Implemented by Engineers TQM and Six Sigma Quality Improvement is a Cycle in which all Departments and Individuals play equally important role

47. TQM System Approach 1. Strategic Quality Management Systematic approach for Setting and Meeting Quality Goals throughout the Organization 2. Quality Planning Customer needs are to be determined and products needs to be developed to meet those needs TQM and Six Sigma 3. Quality Control Evaluation of current Quality Standards to determine if they meet the requirements. If they do not, to take necessary measures and if they do, for a longer span, to increase standards 3. Quality Improvement The steps taken towards Organizational Change that is either planned or forecasted. The change isfor biological growth or more market share

48. Index Introduction to TQM (30 min)  Need and Applicability of TQM (60 min) Key Elements of TQM (90 min) TQM and Six Sigma (60 min)Lunch Break (30 min) TQM and Manufacturing (60 min) TQM Practices Overview and a Case Study (90 min) Change Management and TQM DNA (60 min)

49. … and the journey continues Keeping in view the complexity of the approach and vastness of the subject, it would be unfair to pointout the next steps here, without being able to explain my point of view in person… ask@sevensolutions.in For the complete training and presentation, you just need to Or choose any other medium from below and sS would be happy to help! http://www.sevensolutions.in +91 9810 77 5457