CONCEPT AND PHILOSOPHY OF TQM

1. CONCEPT AND PHILOSOPHY OF TQM Approved by AICTE, PCI & Affiliated to ANU Recognized by Department of Technical Education, Govt of A.P. Certified ByISO 9001:2008 www.chalapathipharmacy.in

2. INTRODUCTION The “total quality” philosophy came to wide spread prominence in 1980’s Traditionally, in the pharmaceutical industry the word “quality” is usually referred to “ conformance to specification”. Thus, total quality philosophy has emerged as a new way in managing a business to gain maximum productivity, profitability customer quality

3. TQM is a process designed to focus on customer expectations , preventing problems, building commitment to quality in the workforce and promoting open decision making. This is an evolutionary concept. TQM represents an ongoing, continuous commitment to improvement. The TQM philosophy evolved from the continuous improvement philosophy with a focus on quality as the main dimension of business.

4. GOAL OF TQM “Doing right things right the first time, every time”

5. OBJECTIVES OF TQM 1) Zero defects 2)100% customer satisfaction

6. TQM is a comprehensive management system which: Focuses on meeting owners’/customers’ needs by providing quality services at a cost that provides value to the owners/customers. Views an organization as an internal system with a common aim rather than as individual departments acting to maximize their own performances

7. Focuses on the way tasks are accomplished rather than simply what tasks are accomplished Emphasizes teamwork and a high level of participation by all employees. Quality improvement must be continuous Analysing the processes used to create products and services is key to quality improvement

8. PRINCPLES OF TQM There are 8 quality management principles which can be used by senior management as a framework to guide their organizations towards improved performance. The principles are derived from the collective experience and knowledge of the international experts who participate in ISO Technical committee, quality management and quality assurance, which is responsible for developing and maintaining the ISO 9000 standards

9. ISO 9000:2000 :- quality management systems fundamentals and vocabulary ISO 9004 : 2000 :- quality management systems guidelines for performance improvements

10. 8 principles are :- Customer focus Leadership Involvement of employee Process approach System approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationship

11. Customer focus:- Should understand current and future customer needs Should meet customer requirements and strive to exceed customer expectations Leadership :- Leaders establish unity of purpose and directions of the organization They should create the internal environment in which the people can become fully involved in achieving the organization’s objectives

12. Involvement of employee:- Employees at all levels are the essence of an organization Their full involvement enables their abilities to be used for the organization’s benefit. Process approach :- A desired result is achieved more efficiently when activities and related resources are managed as a process

13. System approach to management :- Identifying, understanding and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives. Continual improvement :- Continual improvement of the organization’s overall performance should be a permanent objective of the organization

14. Factual approach to decision making :- Effective decisions are based on the analysis of data and information. Mutually beneficial supplier relationship :- An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value

15. ESSENTIALS OF TQM Quality planning Quality control Quality audit Quality surveillance Quality assurance Quality circles

16. Quality planning :- Quality planning starts with quality policy formulated and adopted by management explicitly. Based on policy, qly plans are established annually. Feedback on quality problems encountered in the past or envisaged in the future should the basis for setting up objectives. Monitored quarterly by the quality council.

17. Quality control :- Defined as the operational techniques and activities that are used to fulfill the requirements for the quality. Focuses on the product defect detection through post production inspection Adherence to standards Quality is continued to regarded as an “end – of – line” function where attention is given to end products than the process. Made use of techniques to achieve, maintain, improve quality standards of products and services

18. Quality Audit :- This is an independent review undertaken from time to time to check whether quality performance conforms to predetermined standards in respect to quality plans, systems, specifications, etc. Two types : Internal audit External audit

19. Quality surveillance:- Sub-contractors and other external agencies from which organization procures its inputs are also educated in quality management.

20. Quality assurance :- it is a wide ranging concept covering all matters that individually or collectively influence the quality of a product. Principal duties are :- to establish control procedure and revise them when necessary To prepare specifications for raw materials, packaging materials and finished products. To prepare SOPs for each test To carry out stability testing etc.

21. Quality circles :- It is a small group of employees in the small work area or doing a similar type of work who voluntarily meets regularly for about one hour every week to identify, analyze, resolve work related problems Basic aims of quality circles are : To contribute to the improvement and development of the enterprise To respect humanity and built a better workshop To satisfy the higher human needs of recognition and self development

22. STRATAGIES OF TQM :- A policy of zero defects Quality chains Quality circles Statistical monitoring Consumer feedback

23. TQM & organizational Cultural Change Traditional Approach • Lack of communication • Control of staff • Inspection & fire fighting • Internal focus on rule • Stability seeking • Adversarial relations • Allocating blame TQM • Open communications • Empowerment • Prevention • External focus on customer • Continuous improvement • Co-operative relations • Solving problems at their roots

24. Previous Experience Image of product or service Word of mouth communications Customer’s perceptions concerning the product or service Customer’s expectations concerning a product or service Gap 4 Customer’s own specification of quality The actual product or service Gap 1 organization’s specification of quality Management’s concept of the product or service Gap 3 Gap 2 A “Gap” model of Quality

25. BENCHMARKING :- Benchmarking is the process of continually searching for the best methods, practices and processes, and either adopting or adapting their good features and implementing them to become the “best of the best.” Measuring your performance against that of the best-in-class companies, determining how the best-in-class achieve those performance levels, and using the information as a basis for your own company’s targets, strategies, and implementation.

26. 1. Deciding what to benchmark BENCHMARKING PROCESS :- 2. Understanding current performance 4. Studying others 3. planning 5. Data analysis 6. Using the finding IMPROVEMENT (negative gap is closed)

27. Phase I Identify the Opportunity Phase 7 Plan for the future Phase 2 Analyze the process Plan Act Do Phase 6 Standardisethe solution Study Phase 3 Develop the optimal solution(s) Phase 4 Implementation Phase 5 Study the results Continuous Process Improvement cycle Phase I Identify the Opportunity Phase 7 Plan for the future Phase 2 Analyze the process Phase 6 Standardise the solution Phase 3 Develop the optimal solution(s) Phase 4 Implementation Phae 5 Study the results

28. Six sigma method :- • The smaller the standard deviation, the lesser the deviation of the product characteristic from its mean value.

29. Kaizen Technique :- • Kaizen- defines the managements role in continuously encouraging and implementing small improvements in the individual & organization. • Break the complex process into sub-processes and then improve the sub-processes. • Continuous improvements in small increments make the process more efficient ,controllable and adaptable. • Does not rely on more expense, or sophisticated equipment and techniques.

30. The Deming Philosophy :- • Drive out fear, create trust, and create a climate for innovation • Optimize the efforts of teams, groups, and staff areas • Eliminate numerical quotas for the work force • Eliminate management by objectives • Remove barriers to pride of workmanship • Encourage education and self-improvement for all • Take action to accomplish the transformation.

31. Many companies have started on the road to quality but failed to achieve success due to several factors: ♦ Lack of top management support. ♦ Over dependence on computerized quality ♦ Lack of middle management support and control ♦ Commitment in only one department. ♦ Short-term commitment. ♦ Haphazard approach - a little of this and that ♦ No market research. ♦ Adversarial management ♦ Failure to solicit worker input.

32. REFERENCE • Indian J. Pharm. Educ. Res. 39 (4) Oct – Dec. 2005 • www.bsieducation.org/.../Total-Quality-Management-TQM.ppt • www.scribd.com/doc/.../TOTAL-QUALITY-MANAGEMENT-PPT • www.authorstream.com/.../surn-80657-tqm-slides

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