Total Quality Management (TQM)

1. Chapter 2 Total Quality Management (TQM)

2. Objectives • After going through this chapter, you will be able to understand about: • Understand environment in Evolution of TQM, • Understand meaning of TQM (Total Quality Management), • Identify the components of the TQM • Identify requirements of TQM in Hospital Service Process.

3. Introduction • In the past two-three decades, many companies throughout world have been under tremendous pressure some of them battered by international competitors, some others by new entrepreneurial companies and others were seriously by new technologies which created alternative to their products and services. • Some leading companies have changed rapidly. While some of the new companies become major players, other companies are still engaged in daily battles for survival and many companies arc disappeared.

4. Introduction • These companies found that all their radical restructuring, re-engineering, downsizing many quality programs may have helped survive, but they do not have destructive quality advantages. Future of these companies will be determined by three key areas Alignment, Linkage and Replication. • In terms of quality management these points may be continuous improvements customer focus. anti value for every member organization. These are three key areas transforming the way to manage entire organization.

5. Introduction • In this period a few companies have tremendous (radically) changed (transformed) their business performance. To improve performance many new concepts and methods they have used. Now these concepts and methods are collectively called Total Quality” or Total Quality Management” (TQM). • TQM means the vast collection of philosophies, concepts, methods and tools being used throughout the world to manage quality. Initially in few countries TQM is also called as Total Quality control (TQC) Now TQM is universally accepted.

6. Introduction T Q M

7. Focus on TQM • TQM is mainly concerned with continuous improvement in all work, from high level strategic planning, decision making, to detailed execution of work elements on the production floor. • It stems from the belief that mistakes can be avoided and the defects can be prevented. It leads to continuously improving results. in all aspects of work, as a result of continuously improving capabilities, peoples, processes, and technology and machine capabilities.

8. Focus on TQM • Continuous improvements must deal with improving results, along with more focus on the improving capability to produce better results in the future. • The five major areas of focus for capability improvement are • demand generation, • supply generation, • technology, • operations and • people capability.

9. Elements of TQM • Total Quality Management (TQM) is a description of the culture, attitude, and organization of a company that strives to provide customers with product and services that satisfy their needs. • The culture requires quality in all aspects of the company’s operations. with processes being done right the first time and defects and waste eliminated from operations.

10. Elements of TQM • For successful implementation of TQM, an organization must concentrate on the eight elements Ethics, Integrity, Trust, Training, Teamwork, Leadership, Recognition, and Communication. • TQM has been coined to describe a philosophy that makes quality the drive force behind leadership, design, planning, and improvement initiatives. • The eight elements can be divided in to four major groups according to their function

11. Elements of TQM

12. Elements of TQM • 1. Foundation: (Ethics, Integrity and Trust.) • TQM is built on the foundation of ethic integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. • Ethic is discipline concerned with good or bad in any situation. It is a two-faceted subject represented by organizational and individual ethics. Organizational ethic establishes a business code of ethics that outlines guidelines that all employees are adhere to in the performance of their work. Individual ethics includes personal rights or wrongs.

13. Elements of TQM • 1. Foundation: (Ethics, Integrity and Trust.) • Integrity implies honesty, morals, values, fairness and adherence to the facts and sincerity. The characteristic is what customers expect and deserve to receive. People see the opposite of integrity as duplicity. • TQM never work in an atmosphere of duplicity. Trust is a by-product of integrity and ethic conduct. Without trust frame work of TQM cannot be built. Trust encourages full participation of all the members. It builds the cooperative environment essential for TQM.

14. Elements of TQM • 2. Building Bricks: (Training, Team Work and Leadership.) • Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their department, and teaching their employee the philosophies of TQM. • To become successful in business, team work is a important element of TQM. With the help of team, the business will receive quicker and better solution to problems.

15. Elements of TQM • 2. Building Bricks: (Training, Team Work and Leadership.) • Leadership is one of the important elements of TQM. It appears everywhere in organization. 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 focus clarity and direction. A key point is that TQM has to introduced and led by top Management.

16. Elements of TQM • 3. Binding Mortar: (Communication) • Communication binds everything together. Starting from foundation to roof of TOM house everything is bound by the communication. It acts as an essential link between all the elements of TOM. Communication means a common understanding of ideas between sender and receiver. • The success of TQM demands communication with and among all the organization members, supplies and customers. Supervisors must keep open forum where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital.

17. Elements of TQM • 3. Binding Mortar: (Communication) • There are different ways of communication like downward, upward, and parallel. Downward communication is the dominant form of communication in any organization. By this type of communication supervisors are able to communicate with employees about TQM. • In upward communication, the lower levels of employees arc able to provide suggestions to upper management of the influence of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes through the use of TQM.

18. Elements of TQM • 4. Roof: (Recognition) • Recognition is the last element in the entire TQM 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. • Detection and recognition is the most import 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.

19. Aspect of TQM • What characterizes TQM is the focus on identifying root cause of quality problems and correcting them at the source. as opposed to inspecting the product after it has been made. • Not only those TQM encompasses the entire organization, but it stresses the quality is customer driven. TQM attempts to embed quality in every aspect of the organization. It is concerned with technical aspects of quality as well as the involvement of people in quality, such as customer company employees and suppliers.

20. Aspect of TQM • Customer Focus: • The first and overriding feature of TQM is the company’s focus on its customers. Quality is defined as meeting or exceeding customer satisfactions. • The goal is to first identify and then meet customer needs. TQM recognized that a perfectly produced product has little value if it is not what the customer wants. Therefore, we can say that quality is customer driven.

21. Aspect of TQM • Continuous Improvement: • Another concept of the TQM philosophy is the focus on continuous improvement. Traditional systems operated on the assumption that once the company achieved a certain level of quality, it was successful and needed no further improvements. • Traditionally, change for American managers involves large magnitudes, such as major organizational restructuring. The Japanese, on other hand, believe that the best and most lasting changes come from gradual improvement this is called as kaizen by the Japanese.

22. Aspect of TQM • Employee Empowerment: • Part of the TQM philosophy is to empower all employees to seek out quality problems and correct them. With the old concept of quality, employees were afraid to identify problems for fear that they would be reprimanded. • Often poor quality was passed on to someone else, in order to make it someone else’s problem. The new concept of quality, TQM, provided incentives for employees to identify quality problems. Employees are rewarded for uncovering quality problems, not punished.

23. Aspect of TQM • Use of Quality tools: • TQM places great deal of responsibility on all workers. If employees are to identify and correct quality problems they need proper training. • They need to understand how to as quality by using a variety of quality control toots, how to interpret findings, and how to correct problems. • There are seven different quality tools like Flow Charts, Cause and effect Diagram, Scatter diagram etc.

24. Components of TQM • Mistake-Proofing: • Preventing mistakes (defects) from occurring (Poka-yoke) • Inspection: • Where mistakes can’t be absolutely prevented detecting team early to prevent them being passed down the value added chain • Stop in Time: • Wherever mistakes recur, stopping production until the process can be corrected, to prevent the production from more defects

25. TQM Culture • TQM encourage participation amongst production floor workers and managers. There is no single theoretical formalization of total quality. • Quality gurus like Deming, Ishikawa, and Juran provide the core assumptions, as a “Discipline and philosophy of management which institutionalize planned and continuous improvement and assumes that quality is the outcome of all activities that takes place within an organization; that all functions and all employees have to participate in the improvement process

26. Total Quality Management • TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, production and customer services etc.) to focus on meeting customer needs and organizational objectives. • TQM views an organization as a collection of processes. It maintains that organizations must endeavor to continuously improve these processes by incorporating the knowledge and experiences of workers

27. TQM in Hospital service Process • We all accepted the goals of total quality are low cost, higher revenue, delighted customs and empowered employees. • Now we believe that the managing total quality means conformance to specification and requirements.

28. TQM in Hospital service Process • Total quality also means meeting and even exceeding the need of expectation of customers. Total quality includes the right features, correct documentation, and error free invoices. • It also includes the proper functioning of critical business processes, on time delivery, friendly and accurate support and no failures.

29. TQM in Hospital service Process • Total quality involves reducing all the cost of poor quality. • Hospital services are import in concern with the individual, society or country. It is the basic infrastructure of country. • Any organizational infrastructure consists of Man, Machine, method/processes Information etc.

30. TQM in Hospital service Process • Every customer required high quality, in time, error free, low cost and value added services. As far as health services are concern, all five factors are essential. • TQM provides all this under single umbrella. Implementation of TQM in health service industry, shall provide a delighted industry.

31. Chapter 2 END