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SCM AND TOTAL QUALITY MANAGEMENT NEETHU P MAJEED ROLL NO: 12 SMS, CUSAT E-mail: neethumajeed@rediffmail.

com

ABSTRACT: The degree to which a set of inherent characteristic fulfill requirements is referred to as quality. Quality management is an approach to management which requires establishing quality policies and procedures and practices and then outstanding systems on regular basis. It includes ensuring proper quality for the companys output. Quality management is an important marketing strategy. The three aspects of assuring quality are assurance of incoming raw materials quality, assurance that proper processes are operating on the raw materials, assurance of the quality of the outgoing finished goods. Failure modes and effects analysis is a step by step approach for identifying all possible failures in a design, a manufacturing or assembling process of a product or service. KEY WORDS: SCM, TQM 1.0 INTRODUCTION By now, the supply chain management outcomes of better customer service, lower costs and higher quality should be starting to sound familiar. To sustain and improve competitiveness, firms must offer higher quality products and services than their competitors. TQM is an enterprise- wide philosophy encompassing suppliers and customers. It emphasizes a commitment by the organization to strive toward excellence in the production of services and products that customers want. Firms implementing a TQM program have made a proactive decision to understand, meet and then strive to exceed customer expectations and this is the overriding objective in all TQM programs. TQM is all about pleasing the customer. A very straightforward customer-oriented definition of quality is employed here: The ability to satisfy customer expectations. TQM programs aim to assure that the firm is capable of satisfying customers now and into the future. Good supply chain trading partners use TQM methods to assure that their customers needs are met. Ultimately, this translates into final customers now getting what they want. While, TQM programs tend to vary somewhat in the details from one organization to another, all tend to employ a mix of qualitative and quantitative elements aimed at achieving customer satisfaction and we will see that- on the qualitative side at least- there is some overlap in JIT and TQM programs.

2.0 QUALITY MANGEMENT Quality Management is an approach to management, which requires establishing quality policies, procedures and practices, and then auditing the systems on a regular basis. It encompasses all the processes in the organization and seeks to ensure the quality of products through systematic adherence to quality management procedures and practices. Quality management includes ensuring proper quality for the companys output. Quality management is an important long term marketing strategy. Quality management is important not only for its survival in the market, but also to expand its market or when it wants to enter the new market and various other marketing ventures.

There are three aspects of assuring quality. These include 1. Assurance of incoming raw materials quality. 2. Assurance that proper processes are operating on the raw materials 3. Assurance of the quality of the outgoing finished goods RAW MATERIALS PROCESSES FINISHED GOODS Are the raw materials ok ? Are the right processes operating on the raw materials? Are finished goods okay to be sent to the customers ?

The task of exercising control over the incoming raw materials and the outgoing finished goods is usually called Acceptance Sampling, and the control over the processes operating on the raw materials or the semi finished goods is called Process Control. 3.0 SCM AND TOTAL QUALITY MANGEMENT The phase from 1990s onward is recognized as the era of supply chain management, which has been defined by the Global Supply Chain Forum of 1994 as : The integration of key business processes from the end user through original suppliers that provides products, services and information that add value for customers. Supply chain management is the process of planning, organizing and controlling the flow of materials and services from suppliers to and users or customers. This integrated approach incorporates suppliers supply management, integrated logistics and operations. In other words, SCM is an integrated management of various functions in the areas of materials, operations, distributions, marketing and services after sales with a customer

focus in perspective so as to synergize various processes in the organization with a view of optimizing the total costs, that is it refers to managerial process of all supply chain participants to design, develop and operate a system which responds to customer expectations by making available the right quantity of quality products at the right time and place in the right physical form at a right cost. Hence, SCM facilitates to offer best customer service in a cost- efficient manner. 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 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. 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 Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company TQM is the foundation for activities, which include: o o o o o o o o o o o o o 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

4.0 THE ELEMENTS OF TQM The philosophy and tools of TQM are borrowed from a number of resources including the philosophies of a number of quality professionals such as W. Edwards Deming, Philip Crosby and Joseph Juran, the Malcolm Baldrige National Quality Awards, the International Organization for Standardizations ISO 9000 quality standards, and statistical process control techniques developed by Walter Shewart. From these resources, a number of commonly used elements emerge that are collectively known today as total quality management. The main two elements of TQM are:

Focus on the customer, and Work force involvement 4.1 FOCUS ON THE CUSTOMER Since the practice of TQM is all about meeting customer expectations, then all of the TQM elements must be focused ultimately on the customer; in the supply chain sense, this focus must extend to the end-product consumer. Additionally, all employees in an organization have internal customers. Thus, the concept of meeting customer expectations applies to internal suppliers and customers as well. Meeting the needs of internal customers allows firms to meet the needs of external customers and finally the end-product consumers. Today more than ever before, companies are asking their employees to take responsibilities for providing high levels of customer service, to identify customer service failures, and to work as a team to effectively remedy these problems. Customers and potential customers need to be identified, observed and surveyed to determine their buying habits and product or service requirements. The ability of the firm to meet customer requirements must also continually be measured. Firms should develop measure s of customer service and satisfaction for all of their products and services and make a point of reviewing and updating these measures as products and customer needs change. 4.2 WORKFORCE INVOLVEMENT First and foremost, the organizations top managers must be committed to quality improvement; this commitment manifests itself in a number of ways. When managers give their subordinates the resources, encouragement and responsibility to contribute to quality assessment and improvement, the firm will see the results of these efforts in terms of better processes, morale, products and competitiveness. Managers at all levels of organization must view their roles as facilitators: formulating procedures, matching people to job requirements, providing training where needed, designing teams for problem solving purposes, providing time and resources to solve problems, rewarding employee successes, and encouraging employee involvement. Employees should be encouraged to think out of the box to identify new and better ways of doing things, everywhere in the organization. Managers must also serve as role models. Empowering employees to make decisions to solve problems or satisfy customers is one way managers can build a company culture of support and trust. Teamwork is also an important aspect of workforce involvement. Managers create functional and crossfunctional teams to allow workers to solve complex problems, to break down barriers and competition between departments, and to foster cooperation, leading to concrete results. 5.0 THE TOOLS OF TQM 5.1 FLOW DIAGRAMS

Also called process diagrams or maps, this tool is the necessary first step to evaluating any manufacturing or service process. Flow diagrams use annotated boxes representing process action elements and ovals representing wait periods, connected by arrows to show the flow of products or customers through the process. Once a process or series of processes is mapped out, potential problem areas can be identified and further evaluated for excess inventories and wait times and capacity problems. A flowchart is a picture of the separate steps of a process in sequential order.Elements that may be included are: sequence of actions, materials 5or services entering or leaving the process (inputs and outputs), decisions that must be made, people who become involved, time involved at each step and/or process measurements. The process described can be anything: a manufacturing process, an administrative or service process, a project plan. This is a generic tool that can be adapted for a wide variety of purposes. When to Use To develop understanding of how a process is done. To study a process for improvement. To communicate to others how a process is done. When better communication is needed between people involved with the same process. To document a process. When planning a project. 5.2 FISHBONE DIAGRAM It is also called the Cause-and-Effect Diagram or Ishikawa Diagram. The variations include cause enumeration diagram, process fishbone, time-delay fishbone, CEDAC (cause-and-effect diagram with the addition of cards), desired-result fishbone, reverse fishbone diagram. The fishbone diagram identifies many possible causes for an effect or problem. It can be used to structure a brainstorming session. It immediately sorts the ideas into useful categories. When to Use When identifying possible causes for a problem. Especially when a teams thinking tends to fall into ruts

5.3 CHECK SHEETS

It is also called the defect concentration diagram. A check sheet is a structured, prepared form for collecting and analyzing data. This is a generic tool that can be adapted for a wide variety of purposes. Check sheets allow users to determine frequencies for specific problems. The managers could make a list of potential problem areas based on the experience and then direct employees to keep counts of each problem on check sheets for a given period of time. At the end of the data collection period, problem areas can be reviewed and compared. When to Use When data can be observed and collected repeatedly by the same person or at the same location. When collecting data on the frequency or patterns of events, problems, defects, defect location, defect causes, etc. When collecting data from a production process. 5.4 CONTROL CHARTS It is also called the statistical process control. The control chart is a graph used to study how a process changes over time. Data are plotted in time order. A control chart always has a central line for the average, an upper line for the upper control limit and a lower line for the lower control limit. These lines are determined from historical data. By comparing current data to these lines, you can draw conclusions about whether the process variation is consistent (in control) or is unpredictable (out of control, affected by special causes of variation). When to Use When controlling ongoing processes by finding and correcting problems as they occur. When predicting the expected range of outcomes from a process. When determining whether a process is stable (in statistical control). When analyzing patterns of process variation from special causes (non-routine events) or common causes When determining whether your quality improvement project should aim to prevent specific problems or to make fundamental changes to the process.

5.5 PARETO CHARTS

Pareto charts, useful for many applications, are based on the work of Vilfredo Pareto, a nineteenth century economist. It is also called the Pareto diagram, Pareto analysis. The variations include weighted Pareto chart, comparative Pareto charts. A Pareto chart is a bar graph. The lengths of the bars represent frequency or cost (time or money), and are arranged with longest bars on the left and the shortest to the right. In this way the chart visually depicts which situations are more significant. The charts are useful for presenting data in an organized fashion, indicating process problems from most to least severe. It only makes sense when utilizing a firms resources problems first. When to Use When analyzing data about the frequency of problems or causes in a process. When there are many problems or causes and you want to focus on the most significant. When analyzing broad causes by looking at their specific components. When communicating with others about your data 6.0 KEY ELEMENTS To be successful implementing TQM, an organization must concentrate on the following key elements Foundation It includes: Ethics, Integrity and Trust. Building Bricks It includes: Training, Teamwork and Leadership. Binding Mortar It includes: Communication.

7.0 CONCLUSION TQM views an organization as a collection of processes. The simple objective of TQM is "Do the right things, right the first time, every time. TQM is infinitely variable and adaptable. TQM is recognized as a generic management tool, applicable in service and public sector organizations. In supply chain management, quality is exemplified, for instance, by a machine tool manufacturer identifying its industrial customers, determining their tooling needs and requirements, and then setting out to meet those requirements and make the sale. With world wide competition expanding, the desire to practice TQM can be seen in all industries and all sizes of organizations. In a survey of small to medium sized firms, 82 percent of the respondents regarded product and service quality as a very important measure of firm success. 8.0 REFERENCES Text Book Of Logistics and Supply Chain Management Prof. D K Agarwal, Macmillan Ltd. Purchasing and Supply Chain Management Donald W Dobler, David N Burt