A PRESENTATION ON

FOR THE SUBJECT:-

COST AND MANAGEMENT ACCOUNTING

GROUP MEMBERS
MMS1 SEM II PARASHAR
NAME

ROLL NO

SNEHA SHARMA

P- 41

KAVITA SINGH

P- 44

ABOUT
WHAT IS TQM?
TQM is an integrated organizational approach in delighting customers
(both external and internal) by meeting their expectations on a
continuous basis through everyone involved with the organizational
working on continuous improvement in all products/processes along
with proper problem solving methodology.
TO DELIVER HIGHEST VALUE AT LOWEST COST is the
main objective of TQM

Significance of the term TQM

Total - The responsibility for achieving Quality rests with everyone a
business no matter what their function. It recognises the necessity to
develop processes across the business, that together lead to the
reliable delivery of exact, agreed customer requirements. This will
achieve the most competitive cost position and a higher return on
investment.
Quality - The prime task of any business is to understand the needs
of the customer, then deliver the product or service at the agreed time,
place and price, on every occasion. This will retain current customers,
assist in acquiring new ones and lead to a subsequent increase in
market share.
Management - Top management lead the drive to achieve quality for
customers, by communicating the business vision and values to all
employees; ensuring the right business processes are in place;
introducing and maintaining a continuous improvement culture.

Scope of TQM
TQM is the foundation for activities, which includes:
Commitment by senior management and all employees
Meeting customer requirements
Reducing development cycle times
Just In Time/ Flow Manufacturing
Improvement teams
Reducing product and service costs
Systems to facilitate improvement
Employee involvement and empowerment
Recognition and celebration
Challenging quantified goals and benchmarking
Focus on processes / improvement plans
This shows that TQM must be practiced in all activities, by all
personnel, in Manufacturing, Marketing, Engineering, R&D, Sales,
Purchasing, HR, etc.

5 Principles of TQM
Produce quality work the first time.
Focus on the customer.
Have a strategic approach to improvement.
Improve continuously.
Encourage mutual respect and teamwork.

THE COMPANY
IMPLEMENTATION OF TQM AT:

Rashtriya Ispat Nigam Limited

(Vizag Steel Plant)
One of the leading public
sector enterprises under the
Ministry
of
Steel,
Government of India
Located in the state of
Andhra Pradesh.

Why TQM at RINL?

TQM was implemented in the company to achieve the
objectives of:
Preparing the company's products and internal
processes to global standards
Enhancing quality, productivity,
performance of the organization

and

total

Enriching the quality of work life of its employees

How TQM was Implemented?

The journey of TQM in the company began on September
15, 1995 with the setting up of the TQM Cell.
To meet the quality planning requirements as well as to
facilitate continuous improvement, the company has
established, documented, implemented and maintained the
Quality Management System (QMS) in accordance with
the requirements of the International Standards.
In order to verify and determine the effective
implementation and maintenance of the QMS, quality
audits were carried out at regular intervals by the Internal
Quality Auditors.

The company also implemented a number of TQM tools such as

Formation of Quality Improvement Projects (QIPs ),

Signing of MOUs
ISO certification
Benchmarking
Employee involvement schemes
House keeping

The company embarked upon both external and internal benchmarking

for improving its production, commercial, and financial performance.

It benchmarked with British Steel Co., South Korea Steel Plant

(POSCO)1 SAIL, and Tata Steel for reduction in the rejection rate,
affrorestation, and improving manpower productivity respectively.

Annual improvement action plans were implemented involving

techniques like Kaizen cycle time reduction for further improvement in
delivery and technological process upgradation, leading to improvement
in quality of products and enhanced customer focus.

Tangible benefits of implementing TQM

Increase in sales per year from Rs. 3263.66 cr to
Rs. 7867.6 cr
Reduced manufacturing expenses from.
Rs. 3,94,706.6 cr to Rs. 3,46,158.86 cr
Reduced net loss incurred by the company from
Rs. 6,97,525.90 cr to Rs. 4,00, 94.58 cr
Reduced the defective products from 5.76% to
1.2%

 Accident rates reduced from 113 to 107 (both

fatal and non-fatal)
Customer complaint rates from 0.27 to 0.13 (of
total sales)
Increased productivity rate (tonnes per man
year) from 176 to 194 from the pre-TQM to
post-TQM period.

Intangible Benefits of Implementing TQM

Image of the organization has improved.
Reduction in inventory.
Shorter lead time in design, manufacturing, procurement
service etc.,
Reduction in rejections and complaints.
Customer satisfaction.
Quality cost % to turnover reduction.
Lower manufacturing cost.
Reduction in deviation.
Continuous improvement.
Drastic reduction in defectives and number of defects.

 The company has earned the distinction of the

first fully certified ISO-9001 integrated Steel
Plant in the country, rated as the 68th largest
steel producing company globally, and 38th
among India's top 500 companies by Dun and
Bradstreet (D&B) for the year 2004 keeping in
view its excellent performance, commitment
and vision.

CONCLUSION
The findings of the study indicate that the company adopts a
multiple-stakeholder philosophy for successful execution of TQM
that squarely values the customers, employees, and community.
TQM is based on the strategic plans of the company and
expectations of its stakeholders.
The organization implements a number of TQM tools, and the
entire production and service departments strive to implement
these tools.
The mission, vision and policies of the organization are consistent
with those of TQM.
All the employees have accessibility to TQM training and the
company has initiated a number of reward schemes to press
forward the TQM implementation.

 TQM Implementation has conferred both

tangible and intangible returns to the company.
Visionary leadership of the top management,
unreserved involvement of the middle
management and absolute support of employees
have made TQM a successful endeavor in the
company.
The above findings thus corroborate that TQM
can thrive in a manufacturing organization but it
is contingent upon the unconditional support and
commitment of all concerned.

FINALLY..

PROF R.S.VERMA