total quality management

Total Quality Management (TQM) is a management style that implies nonstop process of quality improvement of products, processes and personnel work. This is a bunch of methodologies that drive company to strategic goals achi achiev evem emen entt thr through ough unce unceas asin ing g qual qualit ity y deve develo lopm pmen ent. t. It is focu focuse sed d on production of goods and services that possess high-quality from viewpoint of customers. TQM was elaborated on basis of Edward Deming's theory. This philosophy has successfully started many years ago in Japan and USA. TQM has has sh show own n phen phenom omen enal al resul esults ts and and now now it is us used ed in many many su succ cces essf sful ul enterpris enterprises es all across across the world. world. It allows allows obtaining obtaining faster, faster, fundamental fundamental and more more efficient efficient business developme development, nt, because because it stimulate stimulates s producti production on of much better products for better prices. W. Edwards Demings defines Total Quality Management as “a philosophy which advocates four basic principles: (1) intense focus on customer satisfaction, (2) accurate measurement measurement of activities, (3) continuous improvement of products and processes, and (4) empowerment of people” “Total Quality Management (TQM) is an effective system for integrating the qualitydevelopment, quality-maintenance, quality-maintenance, and quality-improvement efforts of the various groups in an organization so as to enable marketing, engineering, production, and service at the most economical levels which allow for full customer satisfaction”. satisfaction”. [(Feigenbaum (1983) (in an earlier edition)] Total quality management is a popular "quality management" concept. However, it is about much more than just assuring product or service quality. TQM is a business philosophy - a way of doing business. It describes ways to managing people and business processes to ensure complete customer satisfaction at every stage. TQM is often associated with the phrase - "doing the right things right, f irst time". However in assessing TQM, concepts as quality and quality management must not be left out

Gyasies Ibrahim ali

Production and Operations Management

Quality is first and foremost about meeting the needs and expectations of customers. It is important to understand that quality is about more than a product simply working properly. Think about your needs and expectations as a customer when you buy a product product or service. These may include performance, performance, appearance, availability, delivery, reliability, maintainability, maintainability, cost effectiveness and price. Think of quality as representing all the features of a product or service that affect its ability to meet customer needs. If the product or service meets all those needs then it passes the quality test. If it doesn't, then it is sub-standard. Producing Producing products of the required required quality does not happen by accident. There has to be a production process which is properly managed. Ensuring satisfactory quality is a vital part of the production process. Quality management is concerned with controlling activities with the aim of ensuring that products and services are fit for their purpose and meets the specifications. specifications. There are two main parts to quality management Quality assurance and Quality control. c ontrol. However, it is obvious that in the assessment of TQM, it views the quality entirely from the point of view of the “customer”. All businesses have many types of customer. A customer can be someone "internal" to the business (e.g. a production production employee working at the end of the production line is the "customer" of the employees involved earlier in the production process). A customer can also be "external " external to the business. This is the kind of customer you will be familiar with. When you fly with an airline you are their customer. When Tesco's buys products from food manufacturers, it is a customer. TQM recognizes that all businesses require "processes" that enable customer requirements to be met. TQM focuses on the ways in which these processes can be managed - with two key objectives: 1

100% customer satisfaction

2

Zero defects

TQM focuses strongly on the importance of the relationship between customers (internal and external) and supplier. These are known as the "quality chains” and they can be broken at any point by one person or one piece of equipment not meeting the requirements of the customer. Failure to meet the requirements in any part of a quality chain has a way of multiplying, and failure in one part of the system creates problems elsewhere, leading to yet more failure and problems, and so the situation is exacerbated. The ability to meet customers’ (external and internal) requirements is vital. To achieve quality throughout throughout a business, every person in the quality chain must be trained to ask the following questions about every customer-supplier customer-supplier chain: Customers: • Who are my customers? • What are their real needs and expectations? • How can I measure my ability to meet their needs and expectations? • Do I have the capability c apability to meet their needs and expectations? expectations? (If not, what must I do to improve this capability?) capability?) Gyasies Ibrahim ali


• Do I continually meet their needs and expectations? (If not, what prevents this from happening when the capability exists?) • How do I monitor changes in their needs and expectations? Suppliers: • Who are my internal suppliers? • What are my true needs and expectations? • How do I communicate my needs and expectations to my suppliers? • Do my suppliers have the capability to measure and meet these needs and expectations? • How do I inform them of changes in my needs and expectations? When these questions are strategically answered given the right amount of resources, then the aim of the organization towards achieving success is achievable. TQM like any subject is operational based on certain principles of which some include: Prevention

Prevention is better than cure. In the long run, it is cheaper to stop products defects than trying to find them

Zero defects

The ultimate aim is no (zero) defects - or exceptionally lo low defect levels if a product or service is complicated Better not to produce at all than produce something something defective

Getting things right first time Quality involves everyone Continuous improvement Employee involvement

Quality is not just the concern of the production or operations department - it involves everyone, including marketing, finance and human resources Businesses Businesses should always be looking for ways to improve processes to help quality Those involved in production and operations have a vital role to play in spotting improvement opportunities opportunities for quality and in identifying quality problems

Organizations that do well in Total Quality Management are achieving long-run profitability profitability by competing along six dimensions of competition. The four structural prerequisites of continuous improvement, research and development, the adoption of advanced technology, and the integration of people and systems enable a firm to compete simultaneously along all these dimensions. When an organization through proper mechanism is able to achieve the above four structural prerequisites, then it ability to satisfy and maintain quality management is assured. In the quest of many firms trying to implement the concepts of TQM are faced with a lot of problems. Some of these problems are: One of the reasons for the challenge of introducing introducing TQM is that it has significant Gyasies Ibrahim ali


implications for the whole business. For example, it requires that management give employees a say in the production processes processes that they are involved in. In a culture of continuous improvement, workforce views are invaluable. The problem is - many businesses have barriers to involvement. For example, middle managers may feel that their authority is being challenged. So "empowerment" is a crucial part of TQM. The key to success is to identify the management culture culture before attempting to install TQM and to take steps to change towards the management style required for it. Since culture is not the first thing that managers think about, this step has often been missed or ignored with resultant failure of a TQM strategy. TQM also focuses the business on the activities a ctivities of the business that are closest to the customer - e.g. the production department, the employees facing the customer. This can cause resentment amongst departments that previously considered themselves "above" the shop floor. Also, the lack of top management support is a major contribution to the failure of many TQM efforts. Managers create a firm’s corporate mission by choosing the markets in which the firm will compete and the emphasis that will be placed on each competitive dimension. Responsibility for general resource allocation, performance-measuring and compensation systems and organizational structure is in their hands. More-so, impatience is often a problem and a cause. Truly embedding quality into the organizational culture has taken Toyota, Nippondenso, and Japan’s other success stories decades. Many TQM in the North America fizzle after just a few years because they fail to produce impressive results. But perhaps the most significant cause of TQM failure is losing sight of the customer. Even in Florida Power and Light the first non-Japanese winner of the Deming Prize, found itself going through the motions of TQM. Today customers count for everything at Florida Power and Light. Management of only basic line. Organization that takes care only about basic line of development and manages only numeric results is doomed to failure. Management is a hard work and manager that works only with numbers lightens his/her task. Actually manager should know all process workflow and being involved into the process, understand what can be the source of problems and be an example for subordinates. Evaluating of activity with a help of quantitative rates system. Evaluating of activity with a help of quantitative rates system. Evaluating that uses system of quantitative rates, reports, annual reviews of attainments, etc. can cause forced quotes, classification and ratings that entail unhealthy competition, break of team collaboration within company. Instead of such systems managers should personally comment employees' work, advice and help to improve it. Stress on receiving of short-term benefits. If employees have experience of getting fast profits they will try to work in the same way. Management should convince workers that it is better to prefer long-term and stable growth and improvement than quick, short-term profits. Lack of strategy. If there is no any sequence of realizing goals in a company, employees will feel uncertainty about possibility possibility of constant professional professional and Gyasies Ibrahim ali


carrier growth. Organization should have continuously realizing strategic plan where considerable considerable part should be devoted to questions of quality improvement. Staff turnover. If high staff turnover within organization is apparent, this indicates serious problems. problems. Eliminating of previous four sicknesses will help to solve this one. Management should assume the proper arrangement to make employee feel as an important part of one consolidated team. Despite all these problems firms faces for implementing TQM, they are likely to derive these as advantages: TQM gives some short-term short-term advantages, however majority of advantages is long-termed, long-termed, and tangible benefits from them appear only after successful realization. In big organizations this process can take few years. Long-term benefits expected from implementation of TQM - higher productivity, higher moral tonus of personnel, decreasing of costs and increasing of consumers' trust. This will make company popular and increase its status within society. Avoidance of mistakes allows company to save money and time. Extra resources can be used for range of products and services expansion or for other improvements. TQM creates atmosphere of enthusiasm and satisfaction with performed job and welcomes awarding bonuses for creative approach to professional duties. TQM intensively uses team style of work that allows employees share their experience, use their skills effectively and apply joint efforts for solving issues. As far as team members gain experience experience of team problem solving they can be a part of cross-department "mega teams" that work at tasks that are beyond of local group possibilities. TQM gives to organization more flexibility in work and problem solving and improve work environment for each employee. Conclusively, by following the Garvin’s eight dimensions of quality, that is: performance, performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality, organizations can triumph their short comings. Also methods for eliciting the voice of the customer must such as conjoint analysis and quality function development (QFD) can be mentored. In order for TQM to succeed, the quality activity must transcend functional and departmental boundaries. boundaries. One of such approaches is the Quality Circles. However, through practical activities as Benchmarking which provides means for a firm to compare its performance with its competitors and learn the industry’s “best practices”. Firms can however strategize to go for the top marked awards of the industries as the Deming Prize in Japan and the Baldrige Award in the United States. These awards recognize exceptional exceptional industry efforts in implementing quality. Last but not least, firms involving in TQM can adopt the Off-line Method that is directed at the problem of designing quality into the product. Which is a major problem? Taguchi methods, largely based on the theory of design of experiment, are an important development in this area. It helps identify important process and design parameters and attempt to find overall optimum values of these parameters, relative to some measure of performance of the system. REFERENCES: Gyasies Ibrahim ali


Steven Nahmias – Productions and Operations Management third edition Hamid Noori and Russell Radford – Productions and Operations Management (total quality and responsiveness responsiveness www.osu.edu Schroeder R.G R.G (2000). Operations Management. McGraw - Hill

CENTRAL UNVERSITY COLLEGE PRODUCTION AND OPERATIONS OPERATIONS MANAGEMENT

ASSIGNMENT I TOPIC:

NAME

: gyasie Ibrahim ali

INDEX NUMBER

:

SESSION:

: evening

LEVEL

: 300

LECTURER

: JOJO WUDU BENIN

Gyasies Ibrahim ali

mgt 06 – 01 – 0886


Gyasies Ibrahim ali


total quality management

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