TQM CASES

Submitted By: PRITAM PRIYADARSHAN (215110104)

Case Study 1 :
The major aim of the case study was to provide a practical example of how to use the TQM implementation model in practice. To achieve this goal, it is necessary to present the model to a firm and investigate how the firm uses it in practice. Thus, according to the processes of implementing the TQM implementation model presented in Chapter 7, the firm should follow seven steps in implementing the model in practice. If this were done, it would take a long time to conduct the case study. Due to the time limitation, the study was conducted in such a manner that the firm was not asked to implement this TQM implementation model in practice, but only to support the author in evaluating the firms TQM implementation and overall business performance based on the TQM implementation model. If the author could formulate an improvement plan that would be accepted by the firms top management, it could be concluded that the TQM implementation model developed in this study is applicable in practice. The process of conducting the case study can provide a good example of using this TQM implementation model in practice.

According to the TQM implementation processes presented in the TQM implementation model, the first step is top management commitment. Through introduction by the authors friends, the top managers of the firm were committed to providing sufficient support for the author to conduct the case study in the firm. This step can be regarded as the first step in implementing the TQM implementation model. With the commitment from top management, the author easily obtained enough information for the case study purposes, as well as access to many people who were valuable in conducting the study. In other words, the author would not have been able to conduct the case study in the firm without top management commitment.

The second step of implementing the TQM implementation model is to formulate a TQM implementation team. In fact, during the whole process of conducting the

case study, the authors role was like the leader of the TQM implementation team. The team 165 consisted of three people: The author, one of the deputy general managers, and the coordinator. The coordinator was arranged by the firm in order to assist the author in conducting the study. The author generally asked the coordinator to arrange interviews with relevant interviewees. The coordinator also helped the author collect information needed for the study purposes.

The third step of implementing the TQM implementation model is to evaluate the firms TQM implementation and overall business performance. To do so, the author interviewed relevant people in the firm using the assessment tools of TQM implementation practices and overall business performance. In order to have a better understanding of the firms TQM implementation, the author also obtained many documents about the implementation, as well as overall business performance, over the past few years. Thus, the evaluation of the firms TQM implementation and overall business performance was completed, the strengths and weaknesses of these areas were identified.

The fourth step is to formulate an improvement plan that can be implemented by the firm to improve its TQM implementation and overall business performance. This plan was formulated on the basis of the weaknesses of the firms TQM implementation and overall business performance. The guidance for formulating an improvement plan, presented in the TQM implementation model, was used in this study. Through the evaluation, many weaknesses were identified and further categorized in terms of the four improvement possibilities: Structurally impossible, temporary barrier, ineffective, and feasible. Only feasible improvement possibilities were used in formulating the improvement plan. In fact, the firm could not implement these feasible improvement possibilities at one time; they had to be further analyzed and prioritized in terms of their potential contributions to the firms targeted improvement areas of overall business performance. A firms available resources should also be taken into account when formulating the improvement plan. In fact, in this study, the improvement plan

consisted of a number of feasible improvement possibilities that could be implemented by the firm. In order to make the plan practical, a time schedule and major responsible departments involved in implementing the plan had to be determined. Naturally, the deputy manager was asked to be involved in formulating the improvement plan so it would better fit the firm. Finally, this improvement plan had to be accepted by the top management team. Otherwise, it would be nothing.

According to the TQM implementation processes presented in the TQM implementation model, there are another three steps to implementing the model. Due to the time limitation, this case study did not cover the practical implementation of the improvement plan formulated in the fourth step as it was beyond the scope of the study. Thus, after the four steps of implementing the TQM implementation model were complete, the case study was terminated.

Case 2:The GSM Group: The TQM Implementation

Background The GSM Group supplies metal and plastic components mainly to the automotive and electronics industries worldwide, and has ca.200 employees on 3 sites in the UK: GSM Graphic Arts in Thirsk GSM Valtech Industries in Wetherby GSM Primographic in Brecon Thirsk produces labels and front panels for the electronics and other industries, Brecon produces large volume metal labels and Wetherby produces sheet metal

kits for the electronics industry. The owner manager, saying, We are engineers who print.

Barry Dodd, is quoted as

The company started in 1976 at the Thirsk site and has grown from its roots by a series of well-planned acquisitions and a strategy of continuous improvement in all aspects of its business. Strategic Thinking Barry, the three site general managers and two project managers form the strategy team. Barry says, There is a time in a companys development when vital decisions have to be made, and if you dont make these decisions, things start to drift away, and thereafter it doesnt matter what decisions you make, youve lost. He believes having clear goals and objectives is paramount. The GSM Groups mission statement is: GSM Group is committed to supplying metal & plastic components to all industries, realistically priced, with zero defects, delivered when required and produced profitability. Our customers come first. GSM will always be helpful, friendly, responsive and pleasant to deal with. Using the latest manufacturing techniques and quality systems, GSM will maintain its leading position in UK industry. Our team is dedicated to becoming the number one manufacturer in Europe by being more innovative, more cost effective and consistently more reliable than any of our competitors. By caring for all its team members, protecting the environment and being active in the community, GSM will be regarded as a good neighbor and a fine place to work. GSM holds regular strategy reviews, recently spending a whole day discussing how they saw the automotive industry in two years time. Strategic initiatives are

then taken forward by setting up a project team containing three to five people, usually including Barry. Progress on these initiatives is fed into the general managers meeting, held every two months. Target Markets and Customers The strategy at GSM has focused on 2 growth industries that it wishes to be in electronics and automotive. It has plotted where it wants to be in both of these, and how it intends to get there: In automotive, GSM targeted Ford, already having contacts with General Motors and Nissan. - In electronics, GSM intended to be a one-stop shop in badging, labelling, fascias, chassis, etc. offering a bespoke service to the industry, with customers such as Zero 88, Advance International Group and Wayne-Kerr Electronics. The strategy is customer-driven, concentrating on what the customer wants now, and what they are going to want in five years time. To find out their future requirements, GSM is close to its customer, with its designers talking to the customers designers. In the automotive industry, the key is for a supplier to be involved at the design stage of the car platform. Barry went to Detroit to ask Ford what their needs were from suppliers for the next ten years, listened carefully to their response, then got all management team together to devise their strategic objectives. One of these was that GSM needed an international liaison with a reputable raw material supplier, and 3M was chosen. The strategic plan involved raising GSMs profile in the eyes of 3M, and this was achieved by becoming involved in several outside organisations including local business support bodies, trade and professional institutions and central government. When GSM finally did approach 3M, the two companys business plans were very similar!

The whole process, from visiting Ford in Detroit to becoming a 3M supported converter took three years, and GSM was only one of six UK firms to achieve this. It means GSM undertakes vital product testing and is involved in delivering 3Ms products to the automotive market. An additional benefit from this strategy is that GSM now has access to the automotive industry and to 3Ms technology at least 6 months before GSMs competition, and is supported by 3M in dealings with customers. The result is a win-win partnership relationship, with benefits for GSM, 3M and the customers in the automotive industry. For the electronics market, customers were saying they wanted one supplier for all non-electronic parts of their products. GSM is now making everything that had originally been made by different suppliers, and has achieved its strategic objective of being the one-stop shop for this target sector. Continuing on down the supply chain, GSM has made great efforts to keep the number of its suppliers to a minimum, searching for single source arrangements where possible. Within these relationships, GSM expects prices to come down as raw material prices ease, but also accepts the reverse situation. Suppliers supply within 48 hours or they cease to be suppliers, and GSM guarantees to pay on the same day each month. Teams and Communication The 3 sites are each run by a general manager, each having a large degree of freedom. The sites can, and do, sell to each other, but can buy outside the group if it is more effective. Every employee, including Barry, has a contract saying they are employed as a team member. There is much emphasis on teamwork, with each site split into ca.6 teams, the overriding consideration when choosing the team leaders being that they must be good communicators GSM provides all team leaders with training in communication. GSM spends 1.4% of its revenue on training, and all training is linked to the business plan, with everyone having a personal development plan that is reviewed every three months.

Each team operates as a mini-business and is in charge of its own day-to-day activities. This self-containment requires a good company communication system. It comprises the site managers and team leaders having a ten minute meeting each morning, with a fixed agenda prepared beforehand, including what the site produced the previous day, what it must produce that day, customers pulling jobs forward, scheduled visitors, equipment problems, etc. The team leaders then brief their team for five to six minutes, so by six minutes past eight every morning, everyone on the site knows what is happening. Kaizen Continuous Improvement Kaizen is very, very active throughout GSM 4000 suggestions for improvements have been made over the last 4 years at the Thirsk site alone, and these are the ones that have been carried out! It concentrates on time, rather than money, with the emphasis on people identifying frustrating and time wasting aspects of their job, and suggesting ways to eliminate or improve those practices. Almost everyone is involved, with Kaizen forms on all notice boards, and all suggestions receiving a response within a week if its decided not to proceed, the reasons why are explained, and if it is to be progressed, a timescale and cost estimate on its implementation is determined. One example of a Kaizen resulted in the elimination of the wrapping process at GSM, the time consuming unwrapping process at the customer and the cost of wrapping. The Kaizen committee deals with incremental process improvements, and in 1999 a continuous improvement team leader was appointed at the Thirsk site, with training provided. This role deals with site-wide issues and has responsibility to collate ideas, get agreement on the initiatives to pursue and research their feasibility. Planning, Policy and the Future A written targeted business plan is produced annually for the next twelve months, plus a set of two year targets exists, and a wish list of where GSM wants to be in

five years time. The business plan is continually audited GSM looks at what it has achieved, why something hasnt been achieved and what changes are needed. At a recent meeting, Barry gave an overview of the products/markets the company wants to be in, then current customers and competitors were considered, plus a way for GSM to benchmark itself. Internal issues, such as GSMs selling proposition, service levels, equipment needs, media presence and marketing and sales status were also covered. Team leaders conferences are held every six months to go through their objectives and ideas. Decision-making is not democratic, but the process ensures everyone is listened to, and that the decision taken is in the best interests of the customer.

CASE 3: TQM in Vista Optics Limited

The Company Vista Optics Ltd was formed in 1979 by David Walker, the Managing Director. Based in Stockport, Cheshire, with 17 employees, Vista manufactures medical device polymers for applications such as contact lenses and implantable intraocular lenses. The company has been committed to the Excellence Model since 1995 and has submitted successful applications for the North West Business Excellence Award (winner of two categories in 1997) and the UK Business Excellence Award (finalist in 1998 and 1999 and winner in 2000). David tells of Vistas journey to excellence: Business Excellence As a business, we realised we had to improve performance, and adopted the principles of Total Quality Management (TQM). Using the TQM techniques we knew we were improving but could not measure our success nor would we know when we had achieved our final destination! We were looking for something more concrete. We then discovered the Excellence Model through the North West Business Excellence

Awards, and in our initial stages of applying the Excellence Model we used the matrix self-assessment method. However, the real benefits came when external submissions were made, and independent assessments produced by trained assessors. The outcome was the assessors feedback report, which highlighted missing vital information and introduced areas for improvement for the business. One key lesson is the approach that must be taken if the feedback report is to be of value - do not react defensively when reviewing the feedback it is given on the basis of the assessors collective experience, and should be viewed positively. If applied correctly to your business, it will help that business perform more effectively, as Vista can demonstrate.

The suggested areas for improvement are exactly that areas where the business can improve and the feedback is generic, not specific - it is up to the company involved to identify and conduct the specific improvement activities.

Early external feedback highlights key areas for improvement, often indicating the shortfalls of measurement systems, a key element in the Model. It is surprising how much anecdotal evidence companies, both large and small, use in their dayto-day workings. For instance, Vista had highlighted On Time Delivery as a critical requirement, but had no measures to indicate performance! The Excellence Model requirement for three to five years of evidence of trends in an application clearly concentrates the mind, and ensures that proper management information reinforces any claims. The outcome is a document that clearly states your position today, and the feedback report a useful tool in becoming a better company tomorrow! The Benefits The Model requires excellence in all aspects of a business, and views the business in a holistic way. The benefits to Vista have been many, and the key ones include: Statistical Process Control (SPC)

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Reports indicated that there was a lack of evidence that processes were effective and properly measured. This led to the introduction of a comprehensive series of flowcharts including process flows at both product and company level. This was followed by the introduction of SPC control charts, which has given, in turn, a significant improvement in process performance, e.g, a reduction of edge rejects from an average of 12.4% to 0.2% for one product. The need for these controls was driven by the feedback reports. Benchmarking The need to benchmark against other companies was viewed with suspicion at Vista. After all, what lessons could be learned? The company submitted data to the Department of Trade & Industrys UK Benchmarking Index and received over 50 comparative measures, using the business sectors of our choice. The early results showed that Vista was clearly a good performer in many areas, but in others, the company was seriously lagging behind its peers. After the initial desire to justify this position, it was soon realised that performance could be improved in important areas by adopting best practice techniques. Changes were made, including reviewing the Credit Control system, and these were reflected in the improvements in performance data, e.g, moving from 13th to 26th percentile in Year 1, and from 26th to 35th percentile in Year 2, significantly improving the companys cash flow. Again, the feedback reports had indicated that use of benchmarking would prove beneficial, and it was.

Investing in our People People and People Results are key issues of any business and these are clearly represented in the Model. The need for results drove Vistas directors to measure the peoples satisfaction more accurately, and the responses were more than interesting. As a result, there have been major changes in the way we work following the properly reviewed feedback, e.g, the incorporation of 360 appraisals highlighted that the staff perceived that I did not thank them enough

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for special efforts, and a later 360 appraisal showed a significant improvement in staff perception!

Listening to our Customers To be honest we thought we did! It is only after a concerted effort in this area, driven again by the desire for excellence that we really began to listen to the real voice of the customer. As a result, we have brought out new products, discovered new customers, forged partnerships with some customers and know a lot more about their real needs - 99.2% of all orders received by 4.00pm are now shipped the same day, an improvement from ca.90% in 1997, whilst substantially reducing stock levels during the same period.

Conclusion David firmly believes, The Model has helped Vista focus on the key issues of successful business management, and turnover and profits have both increased as a direct result. The Future Vista is now firmly and permanently committed to excellence, planning to submit an award submission every year and is continually striving for higher levels of excellence. Current objectives and initiatives include a more rigorous strategy development process, better customer relationship management techniques and the incorporation of novel production techniques.

CASE 4: Study on TQM implementation in a small business Introduction In an attempt to understand the reality of small business quality initiatives, a case study in one small manufacturing company was conducted through a structured interview approach. A questionnaire was developed (see Figure 1) and formatted in such a way as to elicit information and answer questions with regard to

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management perceptions and practices on TQM, the implementation of various quality initiatives, how the implementation was conducted, the benefits and outcomes, the problems encountered as well as the factors that contribute to the success of TQM. Besides interviews, observations were made from the documents supplied, and a short plant visit made to the company. To gain maximum benefit from this study, it was decided that the company selected must have experience in implementing TQM. By choosing a ``TQM company'', much of the lessons learned can be transferred to other companies, a comparison can be made with other companies on certain aspects which may be lacking and it can serve as a model to emulate for implementation purposes.

Background of the case study The company studied was PT Ltd, located in Birmingham, UK (the name of the company is shortened to provide anonymity). It is one of the leading manufacturers of springs, including compression, tension, torsion, pressed, and wire shaped springs. Of the 112 employees working in the company, 15 are at staff/management level. Only six people are employed in the quality department which is about 5 per cent of the total workforce and is considered very lean (much of the quality inspection work has been empowered to the production operatives). The company's organisational structure is still very much triangular in shape where the chairman/chief executive heads the company, assisted by a technical sales director and a financial director. The second level of the structure comprises departmental managers including quality, production (which is divided into cells), maintenance, materials, and also an improvement department.

A series of awards, recognitions and certifications are testimonies of this company's effort towards becoming a TQ company and being world class in their trade. They received the Ford's Preferred Supplier Award in 1991, gained ISO 9002 certification in 1994, the Investors in People (IIP) certification in 1997 and QS 9000 in February 1998. They had previously submitted application to the Midlands Excellence Award for the SME sector.

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Perceptions and practices of TQM Top management believe in customer satisfaction through a continuous improvement culture. This perception has been translated into good management practices such as participating in improvement activities, improving communication, solving problems on the systems, taking care of the welfare and wellbeing of employees, teamworking at management level, having a clear mission regarding the business, and management as the key driver in continuous improvement. Various systems and procedures including quality assurance, training, human resource development and management information are already in place and key business processes such as production, delivery, and purchasing have been identified. Clearly, the quality practices in this company correspond to one that understands and values TQM.

Continuous improvement has been made possible through an improvement coordinating body at company level. In terms of the quality improvement structure, both cross-function and within-function teams exist. A training programme is in place to support quality improvement as evidenced by being an IIP certified company. One of the main programmes conducted in the compression spring cell is the Masters Improvement programme in collaboration with the Society of Motor Manufacturers and Traders (SMMT) working on cycle time reduction, layout improvement, waste reduction, and ``tact'' (cycle) time determination and improvement. An improvement manager co-ordinates these activities and heads the SMMT project with members from the quality department and the compression spring cell leader. Several measures have been taken to ensure that their customers are satisfied. The company has a customer liaison manager who gathers information from customers and acts as the central contact person. They have in place customer surveys, and a formal customer complaints process to take immediate action when necessary. They have set up a quick response concern monitoring (QRCM) room whereby all the problems and concerns raised from customers are immediately reported, analysed, and dealt with. Actions taken to temporarily or permanently resolve a problem will be recorded and the records maintained in

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this room. Having a QRCM room helps ensure faster response to any queries from customers.

Different types of measures are collected for quality performance monitoring and improvement. Examples include scrap percentage, number of reject parts per million and quality costs. Numerous quality tools and techniques are utilised for different processes. For example, FMEA and design of experiments are mainly used in the design and development process, while control charting and process capability studies are used in controlling production processes. However, the main emphasis seems to be related to the manufacturing processes since there was no evidence to indicate whether or not nonproduction related functions use some of the quality tools for improvement activities. It is believed that improvement has not permeated to these nonproduction areas. The reasons for this were not made known to the authors. The involvement of suppliers is important in a company's TQ process. PT has developed a Material Supplier development programme which started in 1997 involving 90 per cent of their suppliers. They are trying to build supplier partnerships similar to those that have been built with their customers by cascading quality improvement to their suppliers. A comprehensive supplier quality assurance programme is in place ranging from quality audits, supplier assistance, supplier evaluation, grading, and joint problem solving teams. Having good management practices that promote human resource development differentiates between a TQ and a non-TQ company. Numerous healthy practices to promote job satisfaction and continuous improvement exist in this company. They include a system for job advancement, suggestion schemes, a reward system, education and training for employees (both skills and quality related) and job rotation through multi-skilling. Some of the communication methods established since implementing TQM include open door policy, newsletter, and monthly meetings. Off site meetings are held for the managers to discuss strategic issues. They also celebrate their achievements; one such example is their certification to QS 9000, but only involving managers and staff. They should consider including operatives in the future, which currently is not a practice.

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Quality initiatives implementation With regard to specific quality initiatives implemented to date by PT, the QC manager indicated almost all the items listed in the questionnaire. Some of these were developing a mission statement, setting up of a quality steering committee and the adoption of ISO 9000 and QS 9000. QS 9000 requirements are more stringent than their ISO counterpart and have specific clauses for continuous improvement activities (Lovitt, 1996; Hoyle, 1996). Other initiatives include SPC at critical processes, advanced quality planning tools, supplier development and partnership, a quality costs system, benchmarking and selfassessment.

It was quite surprising that one of the items not answered in the affirmative was that of employees' education on TQ concepts. However, having spoken with the cell manager, it was apparent that he had a good understanding of TQ. There are probably still some employees who have not been trained in TQ concepts but are actually involved in the improvement activities.

Process of implementation The main reason for adopting a TQM strategy in this company was the realisation by top management that it was necessary for business survival; also their customers were demanding it. The QC manager also indicated that another motivating factor was the positive results that have emerged from carrying out continuous improvement such as reduction in scrap levels. Customer demand, as a motivational factor, is understandable, since they work with large businesses which want their suppliers to continuously improve quality. PT fully understand that continuous improvement will result in a higher quality of products and services, and in improved employee satisfaction ultimately satisfying their customers. In general, the steps taken to implement TQM and continuous improvement were training and education, team development and support, improvement projects, quality coordinating body formation and developing business management systems. In addition, they have an annual operating plan which sets out the

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agenda for improvement to be achieved in the ensuing year. One example given, was the QS 9000 certification. They had set their target for certification by March 1998 but actually gained it one month earlier. By April 1998, they completed their first year of the Masters Improvement Programme in the compression spring cell. Some of the achievements to date have been in the area of waste reduction, ``5S'' activities, ``3M'' (muri, muda, mura), set-up time reduction and workplace layout improvement. The cell manager was satisfied with the team based improvement activities which have contributed towards high quality and productivity in his production cell.

Besides the certification route, the approach developed for implementing TQM in this company was basically a ``do-it-yourself'', making reference to books and journals, and by attending seminars. Both the ISO 9000 and QS 9000 systems were developed internally without the help of consultants. The advantages in doing this were that a good learning and experience opportunity (learning by doing) was provided and also the chances of the system becoming permanent was higher. This is because there is a champion in the company with the authority and responsibility to make it a success. With respect to a particular guru's methodology,

Deming's philosophy influenced their approach. An important issue appertaining to TQM implementation in small businesses, is the practical considerations when implementing these quality initiatives. Since resources were modest and limited, both financial and human, a scaled down approach was necessary. This was supported by the need to have staggered training rather than having a full-blown training programme as large companies would. They also indicated the selection of only important quality initiatives that met their purpose such as QS 9000 certification. It was apparent that their initiatives were focused in the manufacturing area and were very tangible in nature. Improvements such as a reduction in the number of defects, the amount of waste, set-up time, and downtime all demonstrate this.

The advantage of concentrating on tangible aspects is that short-term gains can be achieved quickly and management and employees are convinced of the

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viability of the process. If an intangible concept, such as culture, were chosen as the improvement issue, a much slower progress would ensue.

Results and outcomes An important aspect also investigated in this study was the results and outcomes from implementing TQM. The types of positive intangible outcomes ranged from employees realising the importance of quality improvement, to pride in work, quality improvement becoming a part of the culture and improved communication. In addition they mentioned improved teamwork, the feeling that everyone was important, and everyone was recognised for their contribution. During the plant visit, a quality inspector was asked how he liked working with the company, and he immediately replied that he was proud. In response to whether a quality culture should be developed prior to TQM implementation or whether it should be allowed to develop as TQM progresses, the QC manager agreed with the authors that it was an outcome of the whole process and not something to be changed upfront. Through the development of proper systems and measures that promote quality, as seen in this company, one would expect to see a change in the culture. With regard to the tangible outcomes, this company has achieved numerous improvements ranging from improved product quality, increased sales, an increase in the number of employees involved in improvement activities, and improved customer and employee satisfaction. They have also experienced reductions in delivery times, costs of poor quality, employee turnover, absenteeism rate and inventory levels. It was not intended for this study to enquire about the actual magnitude of the improvements made. It was observed, however, from a number of graphical results displayed in the quality area, that drastic reductions in defect parts per million of most production cells in the manufacturing area had been achieved.

The company was able to secure and maintain improvements gained through committing themselves on a long-term basis to all those initiatives already implemented. The authors believed that through having an improvement manager, the company is able to focus on quality improvement on a continuous

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and consistent basis. The company has an annual plan for new improvement projects that could further spearhead their business performance and ensure that they do not rest on their laurels. One relevant example is embarking on a quality award project. A recent visit to the company indicated their commitment since they are now certified to the third edition of the QS 9000 standard.

Problems and obstacles PT faced very few problems but those indicated by them are crucial in the context of small businesses. Their main ones were lack of human resources, lack of involvement from non-production functions and trying to achieve too much in a short time frame. This company's quality department, with six employees, has the overall responsibility for quality assurance, product testing, ISO and QS 9000 compliance, dealing with customer feedback, etc. With the limited number of available personnel, it is vital that their human resources are properly planned and utilised especially when embarking on new quality initiatives.

Since this company's core business is spring manufacture, it follows that the majority of the improvements would come from the manufacturing area. Nonproduction departments such as sales and marketing, purchasing and maintenance, probably comprise a small percentage of total employees, and do not justify being involved in improvement activities. Nevertheless, a company must understand that everyone does contribute directly or indirectly to the quality of its products and services. Therefore, it is important that improvement projects extend to these non-production departments so that TQM will encompass the whole organisation to ensure that it will be sustainable. The last problem indicated by the company was in trying to achieve too much in a short time. A company like PT which is not always entirely satisfied with their current situation will continually try to find and adopt new ways to enhance their business. This can be perceived to be trying to do too much, but in actual fact, it may be a gradual continuous improvement process. During this journey, there are so many things to learn and do especially when little has actually been done in the past. One important reason for planning a few large projects is that it serves the

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purpose of ensuring momentum for improvement and helps sustain the motivation for TQM. It is worth stressing that PT has been able to sustain its performance and has not slid back to bad performance through this commitment of ongoing projects, and is always asking ``what next?'' This was evident from the numerous projects, including SMMT, which proved to be a worthwhile effort for them.

Success factors The success factors particularly related to this company were a systematic approach, selective training, establishing a good communication system, having a continuous improvement system, a suitable measurement criteria, human resources development, an effective and simple implementation framework, and teamwork development. The QC manager laid emphasis during the interviews on the process of TQM adoption being all about continuous improvement and teamwork. The tools and techniques are just the means whereby problems can be solved to achieve the goal of continuous improvement. Developing employees is vital so that they are continuously upgraded in terms of knowledge and skills to contribute towards improvement through training and education. It is believed that these success factors are relevant within the context of a small business and further studies would be needed to verify this and to investigate their suitability to other small businesses.

CASE 5: Spembly Medical Limited a TQM Case study

The Company Spembly Medical Ltd, based in Andover, Hampshire was established in the 1940s and has 60 employees. Turnover for the site is 5m, and for the Group, 30m. Spembly designs, manufactures and markets a range of medical instruments principally for the surgical destruction of unwanted, often malignant, tissue. The established product range centres upon instruments for cryosurgery (the application of extreme cold) and ultrasonic surgery, in which Spembly is a worldwide leader.

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Pain management, which involves the technologies of cryo-analgesia, is also an important area of company business. Spembly is part of Integra Life Sciences Corporation, based in New Jersey, a world-wide manufacturer and supplier of products in the field of neurosurgery. Background Spembly has been a Department of Trade and Industry (DTI) Inside UK Enterprise (IUKE) scheme host company since 1998. The decision to join was based on a desire to share with other companies Spemblys working practices, and how these have improved from the traditional 1980s culture, when skills were not shared, ISO 9000 was just a badge on the wall and departments felt isolated. Customer focus has been the main culture change over the last three years, where the management style has changed from functional to project orientation. The end result is an understanding that the object is to ship a quality product on time to the customer and not just to complete your part of the process.

Cell Manufacture and Project Orientation The introduction of a design for manufacture culture, including a change from batch to real time manufacture, a move from monthly to weekly to daily output, and more detailed specifications, has been the driving force behind innovation and product quality. The changes that have been implemented and the benefits obtained include: 1) Project teams dedicated to instruments shortened lines of communication and support 2) Responsibility for project owned by team team building and employee problem solving encouraged goal to ship an instrument to a customer not to the next department 3) Build centred around a single unit not batch shortened lead times greater flow of product 4) Work cells designed to support manufacture stock around cell tool and documentation where it is needed Project management techniques, including the creation of Project Champions, together with real management ownership of ISO 9000 procedures, have also driven the quality initiatives.

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A system of cellular manufacturing is now operated, where cells are designed to fully support a product, with the emphasis on flow and ease of manufacture. Critical path analysis is applied to flow, bottlenecks are analysed and all processes are challenged to ensure that they add value. The advantages of cell manufacturing that have been experienced by Spembly include: Reduced Working Time Reduce Response Time Increased Ownership Reduced Costs

Concurrent Engineering Spembly was determined to reinvent, from top to bottom, the way they did things. The introduction of concurrent engineering techniques was typical of the new capabilities acquired in the course of developing and bringing the microsurgical hand piece to market. It involves: Structured stage-gated process Implement tasks simultaneously Identify & fully specify all tasks Assign responsibilities Hold regular reviews Identify problems & attack them Share information Work as a team & live the project And the benefits to be obtained are: Increased communication Greater understanding Ownership & involvement Shared success.. shared problems Improved quality Compressed development cycle Innovative ideas & solutions

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As Managing Director, Patrick Sparkes, commented, It is important to regard key customers as part of the development team, to scan widely for the best new technical solutions, to nurture a dynamic culture of innovation, so that people dont just follow the process but actually live it, and to listen to users, including older, existing users to gain actionable feedback. A culture of Try it and see if it works with problem solving techniques, empowering employees, removing the fear element of getting it wrong and encouraging ownership at all levels is at the heart of a desire to see continuous improvement.

The Results As a result of introducing concurrent engineering, Spembly has the following results: Unique gas socket design Patented gas engine Novel probe design Modern manufacturing processes Documentation complete at product launch Ownership

Ownership In addition, Spembly was a finalist in the Management Today Innovation Awards for innovation in product design for its ultrasonic microsurgical handpiece for neurosurgeons. The objective of the awards was not to recognise excellence in the design of specific products, nor to laud their financial impact on market introduction, but to take a holistic look at how companies innovate, using individual projects to provide a window on the management of the development process.

The judges were particularly impressed by the linkages between development and the senior management team, how the culture and environment of the firm

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supported innovation and the way in which the project had allowed Spembly to develop new capabilities, such as software tools. Success in the Management Today awards and the knock-on benefit to staff morale encouraged the company to apply for Millennium Product status for two of its products. Launched by the government in 1998, and run in conjunction with the Design Council, Millennium Products was the nationwide search for the countrys most innovative products and services.

The Future Spembly is very conscious that fast change can often create hidden problems. Therefore, there is an active policy to keep reviewing what has been achieved and to revisit the goal. In 1995 the goal was very easy to communicate, the need for improvement was obvious, but now that backorders are virtually zero and rework/customer returns are extremely low, it is vital to not let complacency creep in. Spembly continues to use the DTIs IUKE scheme to visit or re-visit other host companies, and from this there is always some new angle on an old way of working. As Patrick Sparkes said, Having a tangible goal is vital, something that people can strive for, that they will be proud to achieve. Spemblys tangible goal was to achieve recognition by the IUKE scheme and be invited to join. Having been acquired by Integra LifeSciences, its first acquisition outside the USA, Spemblys new goal is to be the best within the new company. Specific targets to achieve this will be to: Have better customer service Have better sales response Have the best turn around times for repairs and servicing. If it can achieve this, and all of those can be objective, with realistic targets set, then Spembly will be the natural choice for spearheading further growth into the European market and thus further investment for new products and services. Like a new product, this goal is treated as a project, and many of the concurrent engineering techniques can be applied. Spembly will also continue to look for public recognition of its achievements, such as the Management Today sponsored award, or the Queen's Award for Enterprise. These naturally allow processes to be benchmarked, and lead to improvement activities.

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CASE 6: Hydrapower Dynamics Limited

Summary Formed in 1983, Hydrapower Dynamics Ltd, an assembler of hydraulic hose, has grown to a profitable company with annual sales in excess of 4.5m. That success reflects a sustained commitment to quality management, exemplified by recognition, in 1992, by the National Society for Quality through Teamwork as one of the winners of the prestigious Perkins Award.

With good systems (ISO 9001 & 9002) in place the company is now seeking to improve quality performance through greater emphasis on training and development, and the board is aiming to achieve Investors in People by 2001. In a very competitive market place the company is endeavouring to reduce its dependence on original equipment manufacturers (OEMs) by product/sector diversification and becoming a solution provider rather than just a supplier.

Patrick Browne, the Managing Director, believes the company is capable of substantial, profitable expansion, with a 10m per annum turnover as the 5 year objective, and a 15% increase in turnover as the year 2000 target. Exports account for approximately 10% of turnover. To achieve these, a broad-ranging Action Programme has been drawn-up and a set of key performance indicators agreed to ensure that close performance monitoring, already a hallmark of senior management, is maintained and strengthened. The Action Programme will entail further recruitment, and investment to improve facilities, in particular the Design office with the purchase of the latest computer aided design, at a cost of ca.60,000.

The Company Hydrapower, in its present form, is the outcome of a management buy-out in 1989 by Patrick Browne and his two fellow directors, Alan Woodfield and Martin Morran. The core business is the assembly and sale of hydraulic hose to a broad

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spectrum of industrial customers including agriculture, aerospace and transport, all with a common need to transfer fluid from one piece or point of machinery to another.

The company has grown steadily over the past 5 years, and in 1999, combined sales of Hydrapower Dynamics Limited (4.5m) and an 80% owned subsidiary, Hydrapower Dynamics (Staffs) Limited (0.73m) showed a 19% increase over the previous year. Results for 2000 point to even stronger performance, with sales growth coming from both established and new customers. The company is also achieving a level of profitability that reflects its quality management approach.

Business Policy In a very competitive market place this performance has been underpinned by a business policy founded on 3 key principles: An emphasis on high standards of product and service quality made possible by good systems (ISO 9001 & 9002, AQAP 4) and a company wide acceptance that quality is everyones responsibility. The Perkins Award was a well-merited recognition of the determination to make TQM a reality. The importance of developing relationships with customers, suppliers, the workforce and the community at large, based on mutual respect and understanding. An approach to business development that strikes a sensible balance between opportunism and financial caution.

Customer Development In implementing that business policy, the company has developed a customer base of some 200 live accounts, many of them blue chip companies such as Dowty and Marconi, with no single customer accounting for more than 10% of total sales. Customers are categorised into 3 separate groups: OEMs, including refuse trucks and special purpose vehicles Aerospace/defence

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 Miscellaneous end-users, including overseas customers (Africa, Middle East, Sri Lanka). The setting up of the Hydrapower Dynamics (Warwick) Limited subsidiary in 1991 was prompted by a local market opportunity following the withdrawal of a previous competitor. Similar responsiveness to perceived customer needs and competitive activity lay behind the decision taken to set up a Hose Replacement Mobile Service, a fleet of 3 vans on 24 hour call, to provide a hose repair/replacement service operating within a 40 mile radius of Birmingham.

A further development has been the setting-up of a Tube Manipulation Division, to manufacture specific tube related products that can ether be fitted to hose end-fittings or supplied individually. This will provide a facility for the company to diversify into other engineering work. These new business ventures should lead to an enlargement of the customer base and thereby provide a stronger platform for future growth. The recent supplier quality award from a major OEM account for 100% delivery on time and no rejects in a 12 month period adds to the evidence from the sales figures that Hydrapower is meeting its customers needs. In doing so it is using 2 main resources - equipment and people - to add value to the components purchased from suppliers.

People
With a total workforce of 60, the company is achieving sales per employee of ca.75,000. This reflects both a well-defined organisation structure, and the judicious use of incentive schemes, but most of all, the high level of involvement, motivation, and loyalty engendered by good management practice, and the use of quality and problem solving teams to put total quality management (TQM) into practice.

The proposed introduction of an appraisal scheme will add further support to the task of improving productivity through enlightened personnel management. Using

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these resources to best effect demands good systems. In this regard the company benefits from its long-standing ISO registration (the scope of which will be extended as soon as possible to include the new Tube Division) and by an equally efficient financial control and information system.

Quality Bubbles, Action Teams and Common Sense Quality Throughout its Quality Learning Experience, Hydrapower has maintained its Quality Bubbles concept describing any number of people in a Quality Circle activity, becoming larger or smaller, sometimes overlapping, remaining or dissolving according to any given situation. Although there are no rules about who may join Quality Bubbles, an attempt is made to involve at least one Director, also an advantage when requesting financial assistance formally at board level.

A culture has evolved at Hydrapower that has led to a common sense approach to quality matters, which in turn has benefited the company by becoming more competitive, whilst still expanding and developing new manufacturing and service divisions. As a basic premise, the Common Sense Quality (CSQ) technique: Identifies a problem Obtains the opinions of all those affected Utilises resources Provides a solution

Among the areas where CSQ has assisted the business to flourish are the formation of a precision Engineering Facility, the creation of a Tube Manipulation Division, the acquisition of an Aircraft Test Stand Company, development of a Mobile Workshop Unit (Hosemobiles) and the growth of a section dedicated to servicing and supplying Hose Assembly Equipment. The new Pipework Division is already being subject to lashings of CSQ!

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Training
An example of using CSQ for an improvement activity was a task undertaken by a team regarding the training of personnel. The team realised, that, because of a desire to improve themselves by performing varied jobs, employees might find themselves performing tasks for which they had not been fully trained. A Quality Bubble formed to address this and, after brainstorming, decided upon a Company Philosophy for training that could be documented and described in an easily understandable format. After discussion the team agreed that: Only suitably qualified personnel can teach trainees By definition, the trainees then become the best people to perform jobs This enables them to decide how to react to situations confidently and with appropriate work skills This, in turn, encourages everybody to treat their tasks positively, demanding the highest standards from themselves and their work The end result is the highest quality product or service available

This was abbreviated into key words linked by arrows, and a depiction that has become the Hydrapower Company Philosophy for training, with the driving force fuelling the train being Quality Bubbles!

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