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2007年8月30日

http://www.isixsigma.com/me/tqm/

CMM

http://www.sawin.cn/doc/SE/CMM/deepcmm.htm

JavaScript高级程序设计

http://book.csdn.net/bookfiles/110/

Improving Financial Services Through TQM: A Case Study

The work described in this case study was undertaken in a young, rapidly expanding company in the financial services sector with no previous experience with Total Quality Management (TQM). The quality project began with a two-day introductory awareness program covering concepts, cases, implementation strategies and imperatives of TQM. The program was conducted for the senior management team of the company. This program used interactive exercises and real life case studies to explain the concepts of TQM and to interest them in committing resources for a demonstration project. The demonstration project, which used the Seven Steps of Problem Solving (similar to DMAIC), was to show them how TQM concepts worked in practice before they committed resources for a company-wide program.

Main Components of TQM

For Six Sigma practitioners who may not be familiar with TQM, the program has three main components -- Just in Time (JIT), Total Quality Control (TQC) and Total Employee Involvement (TEI). The relationship between the three legs of TQM is: JIT exposes the cause of problems; TQC helps provide a solution to problems. Lastly, since the employees do all improvements; they need to be involved in the process of change. TEI helps elicits this involvement.

JIT uses techniques similar to Lean, and TQC uses tools and techniques similar to Six Sigma tools.

Step 1. Define the Problem

1.1) Selecting the theme: A meeting of the senior management of the company was held. Brainstorming produced a list of more than 20 problems. The list was prioritized using the weighted average table, followed by a structured discussion to arrive at a consensus on the two most important themes -- customer service and sales productivity.

Under the customer service theme, "Reducing the Turnaround Time from an Insurance Proposal to Policy" was selected as the most obvious and urgent problem. The company was young, and therefore had few claims to process so far. The proposal-to-policy process therefore impacted the greatest number of customers.

An appropriate cross functional group was set up to tackle this problem.

1.2) Problem = customer desire – current status:Current status: What did the individual group members think the turnaround is currently? As each member began thinking questions came up. "What type of policies do we address?" Medical policies or non-medical? The latter are take longer because of the medical examination of the client required. "Between what stages do we consider turnaround?" Perceptions varied, with each person thinking about the turnaround within their department. The key process stages were mapped:

Several sales branches in different parts of the country sent proposals into the Central Processing Center. After considerable debate it was agreed at first to consider turnaround between entry into the computer system at the Company Sales Branch and dispatch to the customer from the Central Processing Center (CPC). Later the entire cycle could be included. The perception of the length of turnaround by different members of the team was recorded. It averaged:

Non-Medical Policies      17 days

Medical Policies             35 days

Invoking the slogan from the awareness program "In God we trust, the rest of us bring data" the group was asked to collect data and establish reality. Armed with a suitably designed check sheet they set about the task.

Customer desire: What was the turnaround desired by the customer? Since a customer survey was not available, individual group members were asked to think as customers -- imagine they had just given a completed proposal form to a sales agent. When would they expect the policy in hand? From the customer's point of view they realized that they did not differentiate between medical and non-medical policies. Their perception averaged out six days for the required turnaround.

"Is this the average time or maximum time that you expect?" they were asked. "Maximum," they responded. It was clear therefore that the average must be less than six days. The importance of "variability" had struck home. The concept of sigma was explained and was rapidly internalized. For 99.7 percent delivery within the customer limit the metric was defined.

Customer desire:Average+3 Sigma turnaround = less than 6 days

Current status:Non-medical policies (Average 19/Sigma 15) Average+3 sigma= 64 days

Medical (Average 37/Sigma 27) Average+3 sigma= 118 days

The Problem was therefore defined:

Reduce Average+3 sigma of turnaround for:Non-Medical Policies From 64 to 6 days

Medical Policies From 118 to 6 days

The performance requirement appeared daunting. Therefore the initial target taken in the Mission Sheet (project charter) was to reduce the turnaround by 50 percent -- to 32 and 59 days respectively.

Step 2. Analysis of the Problem

In a session the factors causing large turnaround times from the principles of JIT were explained. These were:Input arrival patterns

Waiting times in process

- Batching of work

- Imbalanced processing line

- Too many handovers

- Non-value added activities, etc.

Processing times

Scheduling

Transport times

Deployment of manpower

Typically it was found that waiting times constitute the bulk of processing turnaround times. Process Mapping (Value Stream Mapping in Lean) was undertaken. The aggregate results are summarized below:

Number of operations 84

Number of handovers 13

In-house processing time (estimated) 126 man-mins.

Range of individual stage time 2 to 13 mins.

Could this be true? Could the turnaround be 126 minutes for internal processing without waiting? The group started to question of the status quo. The change process had begun. To check this estimate it was decided to collect data -- run two policies without waiting and record the time at each stage. The trial results amazed everyone: Policy No. 1 took 100 minutes and Policy No. 2 took 97 minutes. Almost instantly the mindset changed from doubt to desire: "Why can't we process every proposal in this way?"

Step 3. Generating Ideas

In the introductory program of TQM during the JIT session the advantages of flow versus batch processing had been dramatically demonstrated using a simple exercise. Using that background a balanced flow line was designed as follows:

1. Determine the station with the maximum time cycle which cannot be split up by reallocation -- 8 minutes.

2. Balance the line to make the time taken at each stage equal 8 minutes as far as possible.

3. Reduce the stages and handovers -- 13 to 8.

4. Eliminate non-value added activities -- transport -- make personnel sit next to each other.

5. Agree processing to be done in batch of one proposal.

Changing the mindset of the employees so they will accept and welcome change is critical to building a self-sustaining culture of improvement. In this case, the line personnel were involved in a Quality Mindset Program so that they understood the reasons for change and the concepts behind them and are keen to experiment with new methods of working. The line was ready for a test run.

Step 4. Testing the Idea

Testing in stages is a critical stage. It allows modification of ideas based upon practical experience and equally importantly ensures acceptance of the new methods gradually by the operating personnel.

Stage 1: Run five proposals flowing through the system and confirm results. The test produced the following results:

Average turnaround time: < 1 day

In-house processing time: 76 mins.

There was jubilation in the team. The productivity had increased by 24 percent. The head of the CPC summarized: "I gave five files for processing, and went for a meeting. Emerging from the meeting about 30 minutes later I was greeted by the dispatch clerk jubilantly reporting, "'Madam, the TQM files are ready for dispatch.'" The mindset was dramatically changed and line personnel were now keen to push the implementation.

Stage 2: It was agreed to run the new system for five days -- and compute the average and sigma of the turnaround to measure the improvement. It was agreed that only in-house processing was covered at this stage and that the test would involve all policies at the CPC but only one branch as a model. This model, once proved, could be replicated at other branches.

The test results showed a significant reduction in turnaround:

1. For all non-medical policies From 64 to 42 days or 34%

2. For policies of the model branch From 64 to 27 days of 60%

The Mission Sheet goal of 50 percent reduction had been bettered for the combined model branch and CPC. Further analysis of the data revealed other measures which could reduce the turnaround further. Overall reduction reached an amazing 75 percent. Turnaround, which had been pegged at 64 days, was now happening at 99.7 percent on-time delivery in 15 days.

Step 5. Implementing the Ideas

Regular operations with the new system was planned to commence. However, two weeks later it was still not implemented. One of the personnel on the line in CPC had been released by his department for the five-day trial to sit on the line but was not released on a regular basis. The departmental head had not attended the TQM awareness program and therefore did not understand why this change was required.

There were two options -- mandate the change or change the mindset to accept the change. Since the latter option produces a robust implementation that will not break down under pressures it was agreed that the group would summarize TQM, the journey and the results obtained in the project so far and also simulate the process with a simple exercise in front of the department head. This session was highly successful and led to the release of the person concerned on a regular basis.

Step 6. Check the Result

The process was run for one month with regular checks. The results obtained were marginally better than the trials conducted in Step 5:

Average 11 days

Sigma 9 days

Average+3 sigma 38 days

Step 7. Standardize Control/Document the Improvement Story

Essentially the in-house processes in two centers of processing -- the CPC and one sales branch -- had been impacted so far. To make sure that the gains were held, control charts were introduced in both locations. Sample x-bar and sigma-control charts for the CPC are shown below:

A special "Grind It In" session was conducted for line personnel to ensure that the control chart was updated every day, and any deterioration was dealt with by finding and killing the root causes of the problems.

Customer reaction: Sales management and sales agents (internal customers) clearly noticed the difference. For instance one sales manager reported that a customer had received a policy within a week of giving a proposal and was so amazed that he said, "If you give such service I will give you the next policy also!"

Adoption of a similar process at the CPC and the model branch for medical policies has already reduced the average+3 sigma of turnaround time by 70 percent -- from 118 days to 37 days. The corresponding all-India reduction was from 118 days to 71 days -- a 60 percent reduction.

The project objective of 50 percent in the first stage has been achieved.

A quality improvement story was compiled by the project Leader for training and motivating all employees.

Future Actions

Non-medical policies: Goal to reduce turnaround from 42 days to about 15 days.

1. Roll out process to branches to achieve 24 days throughout the country.

2. Minimize rework by analyzing, prioritizing and training sales branches to avoid the causes of rework.

3. Working with the bank to improve the turnaround time of banking checks.

4. Considering processing proposals while check clearance is in progress.

Medical policies: Goal to reduce turnaround from 71 days to about 24 days.

1. Roll out process to branches to reduce turnaround from 71 to 37 days.

2. Streamline the process of medical exam of the client from 37 to 24 days.

About the Authors

Niraj Goyal has 25 years of experience in multinationals in various operating roles, among them operations director of Cadbury India Ltd., where he was among the leading implementers of the quality movement. He is the founder of Cynergy Creators Private Ltd. Mr. Goyal consults in India and the United States with manufacturing, IT, media and financial services industries. He specializes in training and facilitating the implementation of the techniques of Six Sigma/TQM. Mr. Goyal can be reached [email protected].

Lalitha Bhatia is a chartered accountant with 12 years of operations experience in financial services companies. Mrs Bhatia runs the Central Processing Center of the company in which this change was carried out. She was the leader of the Cross Functional Group that created this improvement, is now an advocate of TQM, and is actively involved in spreading it to the other parts of her department.

Reducing IT User Downtime Using TQM ?a Case StudyThis Information Technology (IT) case study was done during the implementation of Total Quality Management (TQM) in a financial services company with several hundred computers and computer users in multiple locations throughout India. The results have widespread applicability and in particular are aimed at organizations with large computer networks, IT facilities management companies and customer service providers. Success in any improvement effort is a function of techniques accompanied by a mindset change in the organization. This project was undertaken as part of the second wave of projects aimed at spreading the quality mindset in the organization.

The narrative unfolds in the chronological sequence of TQM's Seven Steps of Problem Solving (similar to DMAIC in Six Sigma), describing the critical process stages where results were achieved and mindsets changed.

Step 1 – Define the Problem

Selecting the theme: After an initial two-day TQM awareness program, the company's senior management selected a theme by consensus: "Dramatic Improvements in Customer Service." As part of the theme, one of the improvement areas selected was "Reducing the response time to resolve IT (hardware and software) problems faced by internal customers." The company had outsourced its network and facility management. A small technical services management team and "help desk" oversaw the vendors' work.

Problem = Customer desire – actual status: Detailed data was available regarding the time of receipt of each call from the customer (in this case, the network users) and the time of call closure. Monthly management reports aggregated the performance by enumerating the number of calls that were resolved in the following categories:Call

Closure Time

< 30Mins.

< 60

Mins.

< 2

Hours

> 2Hours

< 24

Hours

< 48Hours

> 48

Hour

While the information about what happened was well recorded, there was no information about what users had desired to have happen. The deviation from user desires or even the service standard promised to users was not measured.

Defining the problem therefore resulted in a changed mindset from data being used just as an internal record to measuring and "assuring a service standard to the user." The calls were categorized into groups that would be expected to have a service standard time of closure as defined in the table above.

A month of data was analyzed by subtracting the service standard time expected to be delivered and the actual time taken to resolve each call. The gaps between the actual closure time and the standard time were a measure of the problem. It was clear that the data needed to be prioritized in order to proceed. A Pareto diagram was drawn (Figure 1). It indicated that two categories < 30 minutes (67%) and > 120 minutes (27%) constituted 87% of the incoming load. It was decided to attack the < 30 minutes category first.

Figure 1: Incoming Call Categories

Definition of metrics: In order to define clear metrics, the concept of sigma was introduced to represent variability in timeliness of service. It was quickly grasped by the group that a 3-sigma standard translates into a 99.7 percent on-time performance. (Average + 3 sigma) of the actual closure times should be less than the service standard.

This meant that for the < 30-minute call category:

If T30 = average + 3 sigma of 30-minute calls' closure times

T30 < 30 minutes    for a 99.7 percent on time performance

The past month's data revealed:

T30 = 239 minutes

The objective was now clearly defined:

Reduce T30 from 239 to <30, i.e. by 85 percent

Dividing the Task into Phase A and Phase B

Since making such a big reduction was too daunting a task for a team embarking on its first project, using the concept that "improvement occurs step by step," the initial objective, or Phase A, was to reduce T30 by 50 percent. A project charter was drawn up accordingly.

Step 2 (Phase A) – Analyze the Problem: The T30 calls were arranged in descending order according to actual time of closure. Those calls that had taken more than 30 minutes were segregated for analysis. It was recognized that the problem of quality was one of variability, and that the most effective solution to the problem would be ending the causes of calls with a very high time of closure. Thus, T30 calls that had taken more than 130 minutes (T30:130) were analyzed first (Figure 2).

Figure 2: Calls Longer Than 130 Minutes

The top three categories contributed approximately 75 percent of the problem. To sequence the order of attack, the group chose "big and easy" to precede "big and difficult" problems. Using that criteria, "Not Aware of Change Rule" was chosen.

Step 3 (Phase A) – Find the Root Cause: In these cases the engineer attending to the call had not closed the call after attending to it. The "Five Whys" technique was used to determine the root cause – Why had he not closed the call? Why was he not aware that he was supposed to close the call? Why was the procedure of call closure changed and he was not informed? Why is there no standard operating procedure to inform employees before closing the call?

Step 4 (Phase A) – Generate and Test Countermeasure Ideas: Countermeasures were easily identified – first, inform all the engineers; second, develop a standard procedure for informing all users before making a change in procedure which affects them. The engineers were informed of the new procedure.

Step 5 (Phase A) – Check the Results: The next three weeks showed a dramatic drop in the T30 value from 239 to 121 minutes. The objective of 50 percent reduction had been achieved.

Step 6 (Phase A) – Standardize the Results: A standard operating procedure was drawn up for future reference. An X Bar control chart (Figure 3) was introduced for routine day-to-day control.

Step 7 (Phase A) – Present a Quality Improvement Report: Drawing up the quality improvement report was deferred due to the project being continued to attempt to make further improvements.

Figure 3: Control Chart for 30-Minute Calls (September)

Phase B to Further Reduce Downtime

Step 2 (Phase B) – Analyze the Problem: The second phase of the project, or Phase B, was to reduce the T30 value by 50 percent again, from less than 120 minutes to less than 60. The T30 calls which took more than 30 minutes to close were collated and arranged by category in descending order of time to close. There were two categories with the following data:

Categories      Calls      Minutes      Minutes/CallLog-in              39           2720                 70

Printing              16           1672               104

Based upon the "big and easy" principle, the group chose to attempt the printing problem first. The printing calls were sub-categorized by "location" and then by "solution" since they had already been resolved.

Seven of the 16 calls were from Location 1,and seven of the 16 calls had been solved using the same remedy – reinstalling the printer driver.

Step 3 (Phase B) – Finding the Root Cause: Why did the printer driver need frequent re-installation? The group brainstormed and generated 10 possible causes. A check sheet to collect data was designed. For the next two weeks, the engineers were asked to record the reason of why the printer driver needed to be reinstalled each time they were attending to such a call.

Step 3 (Phase B) – Finding the Root Cause: Why did the printer driver need frequent re-installation? The group brainstormed and generated 10 possible causes. A check sheet to collect data was designed. For the next two weeks, the engineers were asked to record the reason of why the printer driver needed to be reinstalled each time they were attending to such a call.

Figure 4: Control Chart for 30-Minute Calls (October)

When reviewed, the data surprised the group members. It clearly illustrated the superiority of data-based problem-solving over intuitive problem-solving. And it acted as a major mindset changer. The problem, the data showed, was that the printer was going off-line rather than its driver needing reinstallation.

Why was the printer going off-line? Brainstorming quickly produced the cause: The machines being used had three versions of the Windows operating system – 98, 2000 and XP. In the Windows 98 version there was a problem – if a user tried to print without logging-in, the printer would go off-line and the next user would experience the problem. The cause was quickly confirmed as the root cause by one of the members trying to print without logging-in.

Step 4 (Phase B) – Generate and Implement Countermeasure Ideas: The group discussion produced the idea of adopting a software change to not allow a user to try printing without logging-in. All the machines using Windows 98 were identified, and the change was implemented. Applying the standard operating procedure used in Phase A, the group was careful to inform all users of the change before implementing it.

Step 5 (Phase B) – Check the Results: The calls were monitored for another two weeks and the results amazed the group. The data showed a dramatic drop of the T30 value from 121 to 47 minutes (Figure 4). A total reduction of 80 percent had been obtained in the T30 value. The question arose why had the reduction been much more dramatic than the data as per the Pareto chart would indicate. There are two reasons:

While the problem-solving method identified the vital problems using the calls that took a long time to resolve, there were undoubtedly many calls with the same problem and cause that were attended to within the standard time and therefore did not show in the analysis.

The system of daily control chart plotting and review with the engineers and the group raised the awareness of timeliness and thereby increased the urgency for a solution.

Step 6 (Phase B) – Standardize the Results: A standard procedure was developed and circulated to all regions to implement the change at all locations.

Step 7 (Phase B) – Present a Quality Improvement Report: A quality improvement report was written and presented to the Steering Committee.

Future Work and Conclusions

The work of the group is continuing in the following directions:

The T30 calls are now being analyzed to further reduce the time. Two interesting solutions are emerging that promise to cut the downtime further.

T60 calls are now under study. The average + 3 sigma of closure time of this category has been measured at 369 minutes. Work is being done to reduce it to < 60 minutes.

This case study demonstrates several principles of TQM and Six Sigma:

What cannot be measured, cannot be improved. (Establishing service standards and the use of sigma and control charts for on-time delivery of services were essential in making improvements.)

It is important to develop customer-oriented metrics.

Mindset change is crucial to the success of any improvement effort.

Standardizing the improvement can take longer than the improvement itself. (It is still continuing in this application.)

There is value in step-by-step improvement and continuous improvement.

About the Author

Niraj Goyal has 25 years of experience in multinationals in various operating roles, among them operations director of Cadbury India Ltd., where he was among the leading implementers of the quality movement. He is the founder of Cynergy Creators Private Ltd. Mr. Goyal consults in India and the United States with manufacturing, IT, media and financial services industries. He specializes in training and facilitating the implementation of the techniques of Six Sigma/TQM. Mr. Goyal can be reached [email protected].

The Eight Elements Of TQM

Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products 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 eradicated from operations.

To be successful implementing TQM, an organization must concentrate on the eight key elements:Ethics

Integrity

Trust

Training

Teamwork

Leadership

Recognition

Communication

This paper is meant to describe the eight elements comprising TQM.

Key Elements

TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are:

I. Foundation - It includes: Ethics, Integrity and Trust.

II. Building Bricks - It includes: Training, Teamwork and Leadership.

III. Binding Mortar - It includes: Communication.

IV. Roof - It includes: Recognition.

I. Foundation

TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept.

1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs.

2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity.

3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM.

II. Bricks

Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes:

4. Training - Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company.

5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt:A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for period of three to twelve months.

B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months.

C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week.

6. Leadership - It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. 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 through out the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals.

III. Binding Mortar

7. Communication - It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended.

There are different ways of communication such as:

A. Downward communication - This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM.

B. Upward communication - By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empowering communication, where supervisors keep open ears and listen to others.

C. Sideways communication - This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner.

IV. Roof

8. Recognition - Recognition is the last and final element in the entire 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. Detecting and recognizing contributors is the most important 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. Recognition comes in different ways, places and time such as,

Ways - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc.

Places - Good performers can be recognized in front of departments, on performance boards and also in front of top management.

Time - Recognition can given at any time like in staff meeting, annual award banquets, etc.

Conclusion

We can conclude that these eight elements are key in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the work place. Without these elements, the business entities cannot be successful TQM implementers. It is very clear from the above discussion that TQM without involving integrity, ethics and trust would be a great remiss, in fact it would be incomplete. Training is the key by which the organization creates a TQM environment. Leadership and teamwork go hand in hand. Lack of communication between departments, supervisors and employees create a burden on the whole TQM process. Last but not the least, recognition should be given to people who contributed to the overall completed task. Hence, lead by example, train employees to provide a quality product, create an environment where there is no fear to share knowledge, and give credit where credit is due is the motto of a successful TQM organization.

About The Author

Nayantara Padhi is an HR Executive in an Indian Steel Industry, and is pursuing a Ph.D. on "The Human Dimension Of TQM". Mr. Padhi has published numerous articles in different national and international journals, and has completed a P.G. in Industrial Relations And Personnel Management.

Introduction and Implementation of Total Quality Management (TQM)Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products 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 eradicated from operations.

Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.

TQM Defined

TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which include:Commitment by senior management and all employees

Meeting customer requirements

Reducing development cycle times

Just In Time/Demand Flow Manufacturing

Improvement teams

Reducing product and service costs

Systems to facilitate improvement

Line Management ownership

Employee involvement and empowerment

Recognition and celebration

Challenging quantified goals and benchmarking

Focus on processes / improvement plans

Specific incorporation in strategic planning

This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.

Principles of TQM

The key principles of TQM are as following:Management Commitment

Plan (drive, direct)

Do (deploy, support, participate)

Check (review)

Act (recognize, communicate, revise)

Employee Empowerment

Training

Suggestion scheme

Measurement and recognition

Excellence teams

Fact Based Decision Making

SPC (statistical process control)

DOE, FMEA

The 7 statistical tools

TOPS (FORD 8D - Team Oriented Problem Solving)

Continuous Improvement

Systematic measurement and focus on CONQ

Excellence teams

Cross-functional process management

Attain, maintain, improve standards

Customer Focus

Supplier partnership

Service relationship with internal customers

Never compromise quality

Customer driven standards

The Concept of Continuous Improvement by TQM

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

Continuous improvement must deal not only with improving results, but more importantly with improving capabilities 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.

A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least permitted, by faulty systems and processes. This means that the root cause of such mistakes can be identified and eliminated, and repetition can be prevented by changing the process.

There are three major mechanisms of prevention:Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-Yoke).

Where mistakes can't be absolutely prevented, detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation).

Where mistakes recur, stopping production until the process can be corrected, to prevent the production of more defects. (Stop in time).

Implementation Principles and Processes

A preliminary step in TQM implementation is to assess the organization's current reality. Relevant preconditions have to do with the organization's history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed.

If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate.

However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a change. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. These forces include departures from tradition, a crisis or galvanizing event, strategic decisions, individual "prime movers," and action vehicles. Departures from tradition are activities, usually at lower levels of the organization, which occur when entrepreneurs move outside the normal ways of operating to solve a problem. A crisis, if it is not too disabling, can also help create a sense of urgency which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or demands from consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. A plan to implement TQM may be such a strategic decision. Such a leader may then become a prime mover, who takes charge in championing the new idea and showing others how it will help them get where they want to go. Finally, action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized.

Steps in Managing the Transition

Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new system such as TQM: identifying tasks to be done, creating necessary management structures, developing strategies for building commitment, designing mechanisms to communicate the change, and assigning resources.

Task identification would include a study of present conditions (assessing current reality, as described above); assessing readiness, such as through a force field analysis; creating a model of the desired state, in this case, implementation of TQM; announcing the change goals to the organization; and assigning responsibilities and resources. This final step would include securing outside consultation and training and assigning someone within the organization to oversee the effort. This should be a responsibility of top management. In fact, the next step, designing transition management structures, is also a responsibility of top management. In fact, Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. An organization wide steering committee to oversee the effort may be appropriate. Developing commitment strategies was discussed above in the sections on resistance and on visionary leadership.

To communicate the change, mechanisms beyond existing processes will need to be developed. Special all-staff meetings attended by executives, sometimes designed as input or dialog sessions, may be used to kick off the process, and TQM newsletters may be an effective ongoing communication tool to keep employees aware of activities and accomplishments.

Management of resources for the change effort is important with TQM because outside consultants will almost always be required. Choose consultants based on their prior relevant experience and their commitment to adapting the process to fit unique organizational needs. While consultants will be invaluable with initial training of staff and TQM system design, employees (management and others) should be actively involved in TQM implementation, perhaps after receiving training in change management which they can then pass on to other employees. A collaborative relationship with consultants and clear role definitions and specification of activities must be established.

In summary, first assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy. Leadership styles and organizational culture must be congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist.

Remember that this will be a difficult, comprehensive, and long-term process. Leaders will need to maintain their commitment, keep the process visible, provide necessary support, and hold people accountable for results. Use input from stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of course, maximize employee involvement in design of the system.

Always keep in mind that TQM should be purpose driven. Be clear on the organization's vision for the future and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and improving service to clients and the community.

Conclusion

TQM encoureges participation amongst shop floor workers and managers. There is no single theoretical formalization of total quality, but Deming, Juran and Ishikawa provide the core assumptions, as a "...discipline and philosophy of management which institutionalizes planned and continuous... improvement ... and assumes that quality is the outcome of all activities that take place within an organization; that all functions and all employees have to participate in the improvement process; that organizations need both quality systems and a quality culture.".

About The Author

Khurram Hashmi is an avionics engineer currently working in the Pakistan Air Force Academy. Mr. Hashmi has a inclination in electronics and Quality Management.

Footnotes And References

1. Gilbert, G. (1992). Quality Improvement in a Defense Organization. Public Productivity and Management Review, 16(1), 65-75.

2. Hyde, A. (1992). The Proverbs of Total Quality Management: Recharting the Path to Quality Improvement in the Public Sector. Public Productivity and Management Review, 16(1), 25-37.

3. Martin, L. (1993). "Total Quality Management in the Public Sector," National Productivity Review, 10, 195-213.

4. Swiss, J. (1992). Adapting TQM to Government. Public Administration Review, 52, 356-362.

5. Tichey, N. (1983). Managing Strategic Change. New York: John Wiley & Sons.

6. Hill Stephen, 1991. "Why Quality Circles failed but Total Quality management might succeed." British journal of industrial relations, 29(4), 541-568.

7. Ishikawa, K, 1985.What is Total Quality Control? The Japanese way. Englewood Cliffs, New Jersey, Prentice- Hall.

8. Smith, AK, 1993. Total Quality Management in the Public sector. Quality Progress, June 1993, 45-48.