FICCI CE

Promoting business excellence

for global competitiveness

TQM
Competitive Edge
Management Consultants
FICCI CE

Designed for you to accomplish more

FICCI CE
Your On-line Quality training package

252 slides
LAN/WAN friendly
Invaluable training tool
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Wouldnt it be nice if all the training

your people needed to improve quality
came on one neat software package ?

That is why we created this.

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Index
Contents Slide No.
Introduction 1-6
TQM - Need 7-12
TQM Philosophy 13-54
Vision 55-65
Quality Policy Deployment 66-72
Customers 73-87
Quality People 88-103
Quality Costs & Profit 104-125
Quality in Mfg.. & Service Org. 126-154
Problem Solving tools 155-170
Benchmarking 171-185
BPR 186-196
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Contents Slide No.

Time Based Competition 197-205

Measures of excellence 206-214
International Quality Awards 215-216
Self check, FICCI Model of TQM
and TQM action Plan 218-252
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TQM -The need

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Quality without exception

We are in the new era of competition . TQM will be

the norm rather than the exception . We are in a
battle for survival and total quality is going to sort
out the winners from the losers ...... Alex Trotman .
CEO . Ford.
A competitive world has two possibilities for you .
You can lose . Or , if you want to win , you can
change. Lester C. Thurow....Management writer.
FICCI CE
21 st . century winners

Total quality - focused.

Information technology based.

Vision directed.

Flatter and empowered.

Customer driven.

Flexible and adaptive.

Time based.

Innovative.

Global.

Networked.
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From small q to big Q

Quality management covers all facets of

business and aims to improve the overall
quality of work by every one in the
organization for achieving greater customer
satisfaction and higher returns ( the big Q).
It is not just confined to quality control or
quality assurance ( the small q ) .
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Sellers Beware
Satisfaction with status -quo and absence of
continuous improvement
Obsession with short term results including
profits, market share, costs, budgets & schedules.
Indiscriminate cost cutting that lead to sacrificed
quality.
Unempowered , poorly motivated and paid
personnel and disregard for their ideas and
suggestions.
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Sellers Beware
Hands-off relationship with suppliers, with
contracts being awarded to the lowest bidder.
Crisis management, Rushing operations , fire-
fighting oriented activities, impractical deadlines .
Emphasis on correction and inspection rather than
preventive and proactive approach .
Unreliable processes and systems .
Centralized and bureaucratic decision making.
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TQM -Philosophy
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TQM Origin

In the 1950s American industry was enjoying a

boom. Whatever was made could be sold. Few
industrialists heeded the work of this man called
Deming and his ideas about Total Quality . In Japan
, however , things were different . The Japanese
economy was depressed . Goods stamped made in
Japan were known for poor quality and high price.
FICCI CE

Japanese industrialists were very receptive to the

ideas of Deming on TQM and set about
implementing them. By the mid - 1970s Japan
was beginning to seriously undermine its American
and other western competitors. First in cars , then
in the whole range of goods including videos, Hi-fi
and computers. The rest is a history.
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Continuous Improvement

TQM
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Why TQM

Global competition , downtrend , bottomline

pressures - So you have got problems .
Rejoice. All problems come with change .
Change is necessary characteristic of growth,
and no company ever achieved peak
performance without continuous improvement-
the philosophy of TQM.
FICCI CE

Before we proceed further , it would be

interesting to know exactly where is your
organization placed on the corporate
lifecycle .
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Corporate Lifecycle.
100

90
Stability
Continuous
80

improvement
70
Aristocracy
60

50

Recrimination
40

30
Bureaucracy

Death
20

10

0
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Growing Organization
Growing Organization : A healthy organiz
-ational growth is characterized by the culture
of continuous improvement.The organization
during its process of continuous improvement
never loses flexibility or control.
The growing organization consistently meets
its customers changing needs and improves.
New organizations sprout up, and they are
decentralized to provide new lifecycle
opportunities. For a growing organization even
the latest quality manual is outdated .
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Declining Organization

Stability : Instead of getting what it wants ,

the organization wants what it gets .
Members welcome new ideas but without
the excitement in the growing stages . The
financial people begin to impose controls
for short - term results. The emphasis on
marketing and R & D wanes.
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Declining Organization

Aristocracy : Not making waves becomes a

way of life. Outward signs of respectability
i.e. office decoration , dress and titles take an
enormous importance . The organization
acquires companies instead of starting them .
Recrimination : The company witch - hunts to
find out who did something wrong rather than
trying to discover what went wrong and how to
correct it. Cost reduction takes precedence
over efforts to increase revenues .
Backstabbing and infighting rule.
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Declining Organization

Bureaucracy : There are systems for

everything . Employees play by book . Time
is forgotten . The numbers are more
important than the quality . The
organization is the world in itself . The
organization survives in an overly regulated
environment .
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TQM : Strongest management tool

Whichever stage of the corporate cycle you are on -

TQM clearly emerges as one of the strongest
management tools because of its inbuilt philosophy
of continuous improvement by every one. TQM is ...

Continuously improving customer satisfaction levels

and

Simultaneously improving profit margins.

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Quality Gurus

Deming , Juran and Crosby are some of the world

famous quality gurus . All of them have come out with
their own ideas and concepts on quality . Their ideas and
concepts are briefly given on the next slides.
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Deming

Deming originated PDCA cycle . He came out with

the new climate ( organizational culture ) which
primarily consists of joy in work, Innovation and
cooperation.
He referred to this new climate as Win - Win as
opposed to I win : You Lose .
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PDCA cycle

The PDCA cycle is

PLAN also known as the
Deming cycle

ACT D0

CHECK
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Juran

Juran developed the idea of Planning

Quality trilogy : Quality
planning , Quality improvement
and Quality control. He
concentrates not only on the
end customer , but identifies
other external and internal
customers. According to him ,
Quality is Fitness of use
Control Improvement
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Crosby

0
Crosby is known for his concepts of
Do it right first time and zero
defects . He defines quality as
conformance to requirements which
the company itself has established for
its products based directly on
customer needs.He emphasizes
prevention management in every area
. Defects
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Quality Management Principles

Since various quality gurus have

propounded their own concepts
and ideas on Quality , there is
an element of confusion in the
minds of people as to which
quality methodology should be
adopted in their organizations.
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Universally acceptable Principles

To resolve this problem International Organization

for Standardization ( ISO ) had established a
working group to remove the element of confusion
and come out with 8 universally acceptable
principles of TQM .This should be kept in mind
by the organizations while formulating their
quality objectives
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Quality Management Principles

1. Customer focused Organization

2. Leadership
3. Involvement of people
4. Process orientation
5. System approach to management
6. Continuous Improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationships.
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1. Customer focused Organization

Organizations depend on their customers and

therefore should understand current and future needs ,
meet customer requirements and strive to exceed
customer expectations .This requires :

1. Identification of customers ( Internal & external )

2. Understanding stated and implied needs /
expectations.
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1. Customer focused Organization

3. Establishing measures of satisfaction customer needs/

expectations.
4. Determining how far customer needs are being met at
present.
5. Efficient processing of customer complaints.
6. Establishing customer focus down the line including
distributors.
7. Seeking customer feedback and its analysis for taking
measures to improve customer satisfaction.
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2. Leadership
Leaders establish unity of purpose and
direction of the organization. They should
create and maintain the internal
environment in which people can become
fully involved in achieving the
organization's objectives.This requires
following steps :
1. Establish long term vision and
strategy .
2. Enlist others in a common vision by
appealing to their values, interests , hopes
and dreams.
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Leadership

3. Search for challenging opportunities

to change, grow, innovate and
improve.
4. Experiment , take risk and learn from
the mistakes.
5. Foster collaboration by promoting
cooperative goals and building trust
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Leadership
6. Strengthening others by sharing information
and power and increasing their descretion and
visibility.
7. Set an example by behaving in the ways that
is consistent with the stated values.
8. Plan small wins that promote consistent
progress and build commitment.
9. Recognise individual contributions to the
success of every project.
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3. Involvement of people

People at all levels are the essence of an

organization and their full involvement enables
their abilities to be used for the organizations
benefit. This requires :
1. Employees must be treated with dignity and
respect
2. They must be trained to build competence where
required
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Involvement of people

3. Each employee must know what exactly is required to be

done and where possible must be able to assess the quality
of his work.
4. Fear must be totally removed from the organization and
employees must be encouraged to bring out weakness in
the system.
5. Empower employees to take appropriate action in their
area of work for improvement.
6. In case of a mistake , examine the system rather than the
man to prevent its recurrence.
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Involvement of people

7. Involve employees in quality plans and draw upon their

intimate knowledge of processes for improvement.
8. Assess employee satisfaction level and take appropriate
measures to improve their morale so that they take pride in
belonging to the company.
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4. Process orientation

A desired result is achieved more efficiently when

related resources and activities are managed as a
process. This requires :
1. Planning of processes to meet customer requirements.
2. Process capability study and qualification of process.
3. Establishment of mechanism to keep process under
control.
4. Ownership of process with full responsibility of
quality
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Process orientation

5. Verification of product/ service for conformance

before instruments.
6. Maintenance/ calibration of process equipments and
measuring instruments.
7. Analysis of process data for improvement.
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5. System approach to management

Identifying , understanding and managing a system

of interrelated processes for a given objective
improves the organizations effectiveness and
efficiency.This requires :
1. Clear objectives
2. Organizational structure with well defined authority
and responsibility.
3. Planning for Quality .
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System approach to management

4. Control of functions affecting quality.

5. Coordinating of interrelated processes.
6. Audit mechanism for self regulated organization.
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6. Continuous Improvement
Continuous improvement should
be a permanent objective of the
organization. This requires :
1. Measurement of quality
2. Analysis of quality data and
investigations for non
conformities.
3. Seeking opportunities for
improvement rather than reacting
to quality problems.
4. Benchmarking
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Continuous Improvement

5. Organization for quality

improvement like quality circles
, quality improvement teams for
taking up specific projects.
6. Review of Q.I.Ps ( Quality
Improvement Projects ) by top
management .
7. Recognition of significant
achievements.
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Improvement is an ever flowing stream

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7. Factual approach to decision making

Effective decisions are based on the analysis of data
and information . This requires :
1. Recording of data on :
Quantitative production

Equipment failures

Performance
Process conditions

Delivery performance

Customer complaints

Quality costs

Supplier performance.

Period
FICCI CE

7. Factual approach to decision making

2. Ensuring the data is accurate , reliable and

accessible.
3. Analysis of data to understand the impact on
organizational performance and cost implications and
for deciding corrective actions.
4. Data on results of application of corrective action.

Performance

Period
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8. Mutually beneficial supplier relationships.

An organization and its suppliers are interdependent ,

and a mutually beneficial relationship enhances the
ability of both to create value.This requires :
1. Consideration of quality capability while selecting
vendors.
2. Specification of quality on purchase documents.
3. Clear understanding of supplier needs .
FICCI CE

8. Mutually beneficial supplier relationships.

4. Mutual trust and share responsibility and

accountability.
5. Clear and open communication.
6. Mutual commitment for continuous improvement.
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Tenets of Quality

Doing things right the very first time.

Eliminate non value adding processes
from the system.
Cost of Quality is non conformance.
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Culture change

FROM TO
Manage tasks Manage people

Major breakthroughs Small continuous improvements

Will this improve Will it improve customer delight

profits
Right first time
Some how do it
FICCI CE
Culture change

FROM TO
Spend cos money Spend as if your own money

Supress problems Expose problems

Some how in time Just in time techniques

I. We

Talk about quality Walk about quality

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Quality always expands

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Vision
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Vision
One person with an idea
is better than thousands
who have only opinions
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Vision
The world over, just one
thing has fired the
imagination of people : A
vision of a future
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Corporate Vision

A vision is a vividly descriptive image of

what an organization wants to become or
wants to be known for .

An organizational vision offers a

compelling method for forging employees
into an empowered , highly motivated
team.
FICCI CE
Corporate vision statements...

HDFC : Develop close relationships with

individual households , maintain position as
the premier housing finance institution in
the country , transform ideas into viable and
creative solutions.

Arrow indicates customer driven approach .

FICCI CE
Corporate Vision statements...

Colgate Palmolive : To be the company of

first choice in oral and personal hygiene by
continuously caring for consumers and
partners.

Anderson Consulting : To help our clients

change to be more successful.
FICCI CE

Shared Vision

The core function of an organizational vision is to

ignite people into thinking beyond companys
existing capabilities and present environment .
Only a shared vision can achieve this.
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VISION : Impact .

Product quality
Organizational Growth.
Market performance.
Sense of belonging.
Shareholders Value.
FICCI CE

Mission
.

A statement of intent of what

a company wants to achieve
and through which lines of
business over a period of time
FICCI CE

Mission
Embrace a single clear quality
philosophy. Without one your
company is like a ship without a
rudder. It will loose its way and self
destruct in the midst of global
opportunities and problems.The
mission statement is a primary
expression of quality philosophy,
more powerful and enduring than any
body in the organization.
FICCI CE

Quality Policies.
Review all systems , policies , and
procedures in the organization and check
their consistency with your quality mission.
These include organizational structures,
manufacturing and purchasing policies ,
quality control procedures , HR policies,
and incentive systems. Immediately discard
all existing systems or structures that are
not consistent with the corporate quality
philosophy/ mission.
FICCI CE

Quality Policy
Deployment
FICCI CE
Quality Policy Deployment

Quality policy deployment is
mechanism used for deploying
corporate goals at all levels and
to manage quality strategically.
Quality policy deployment is
translation of Japanese words
HOSHIN KANRI. HOSHIN
means direction and KANRI
means deployment or
administration
FICCI CE
Quality Policy Deployment
Rank Xerox defines Quality policy as
follows : A key process by which Rank
Xerox can articulate and communicate
the Vision , Mission , Goals and vital
few programmes to all employees. It
provides the answers to the two
questions:
What do we need to do ? and

How are we going to do it.?

FICCI CE

Quality Policy Deployment

Quality Policy Deployment is the necessary

trigger for processes to perform well and for
goals to be achieved. It is the mechanism by
which the quality effort is cascaded down
throughout the organization.
FICCI CE

Essential steps in Quality Policy Deployment

1. Issue of Corporate Quality Policy for
the year laying down quantified targets
and milestones for monitoring the
progress.
2. Formulation of sub-policies of
different departments and identification
of critical processes and activities for
achievement of departmental objectives.
3.Interfacing with other departments and
functional groups and agreement on
inputs required from them along with
time schedule
FICCI CE
Essential steps in Quality Policy Deployment

4. Preparation of departmental plans

for identified activities, with well
defined targets, methods and
allocation of responsibilities down
to the lowest operating level.
5. Implementation of plan after
providing necessary resources
including training and requisite
information.
FICCI CE
Essential steps in Quality Policy Deployment

6. Periodic monitoring of policy

deployment progress by departments
along with co-ordination meetings with
other related departments to sort out
operational problems in achieving
departmental targets
7. Top management reviews at regular
intervals to ascertain the progress of
policy deployment and taking mid
course corrective action for attainment
of organizational goals
FICCI CE

Customers
FICCI CE
As the threat of war moves increasingly
from the battlefront to the market place -
It is the survival of the fittest .
FICCI CE
.
Customers

The next generation customers will be

different than the previous generations.
More and more customers will be high
achieving people with technical
knowledge . The resistance to buy
something may not just be the price ,but the
risk involved, time involved and psychic
costs .
FICCI CE
Customers - The Quality Chain

The customers and suppliers not only exist outside the

organization , but inside too ( internal customers ). There is a
series of supplier/ customer relationships which serve as
important interfaces in the quality chain. Failure to meet the
requirements in one part of a quality chain will affect the
other and the external customers.
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Customers : Paradigm

Customer service
Customer satisfaction

A paradigm is a mindset
FICCI CE
Paradigm Shift

Exceeding the
expectations of
the customers.
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Customer Delight
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Customers :Best Practices
1. Understand the Markets and Customers

i . Understand the market environment

ii .Understand customers wants and needs
iii . Segment customers
FICCI CE

2 . Involve customers in the design of products and services

i . Develop new concepts & plans for products &

services
ii . Design , build and evaluate prototypes
iii . Refine and customize products /services
FICCI CE
3. Market and sell products & services

i . Secure ii . Establish iii . Develop

channels of pricing. advertising
distribution. & promotion
strategies.

iv . Develop
v. Process vi . Develop
& deploy a
orders. Customers.
sales force.
FICCI CE
4. Involve customers in the delivery of products & services

i. Offer ii. Use Delivery iii. Develop

various customization distribution
delivery to attract . capability.
options.
FICCI CE
5. Provide customer service

i . Establish points of contact

ii . Build points of contact

iii . Train people to improve customers expectations

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6. Manage customer information

i . Build customer profiles.

ii . Establish service information.

iii . Measure customer performance & satisfaction.

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Your end product is the best quality statement .
FICCI CE

Customers : New directions

Traditional Interactive
PRODUCT Driving Force
RELATIONSHIP

MASS Media usage

PERSONAL &
BROADCAST ELECTRONIC

CUSTOMER Resource Allocation CUSTOMER

ACQUISITION LOYALTY

UNITS SOLD Profit Measurement NUMBER OF

CUSTOMERS
FICCI CE

Market place and market space

Today, interaction with customers happen

both in the market place and market
space*.Eventually, the market space
environment will dominate. In the era of
high costs of real estate , it is the market
space which provides the economical
solution to reach the global customers .
FICCI CE

Quality People
FICCI CE

It is the attitude that

makes the difference
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The human side of quality

While considerable attention

has been given to the technical
side of quality, there is an
increasing need of the
importance of the human side
to total quality.
FICCI CE
Employees - Foundation stone to TQM.

The greatest contributions to the process of

TQM are made by the people who make the
organization . People - who share the vision .
Intellectual capital and knowledge are more
and more the true assets of any organization.
FICCI CE

Quality of human behavior

In its original Japanese context, Total Quality

refers not only to the quality of management
which ultimately produces quality goods and
services , but to the quality of human behavior ,
skills and commitment necessary to accomplish
our business objectives.
FICCI CE

This not only makes good

business sense, it also
reflects a deeper yearning of
the human spirit to be of
service , to build loving,
caring relationships , to
affirm our interdependence ,
and to bring value , beauty ,
and benefit into the world.
FICCI CE

Human side of quality

The human quality should always include the

following three components :
Creativity - The joy of thinking
Physical activity - The joy of working with
sweat on the forehead.
Sociality - The joy of working together
FICCI CE
A Positive
A+ + itude
FICCI CE
Quality begins with me.

There are three kinds of people -

People who make things happen

People who watch things happen and

People who wonder what happened ?

FICCI CE
Quality begins with me.

Ifwe are to take Total Quality to heart , we too

must come to look at our own lives in a more
multidimensional , interrelated and holistic
manner. Taking the theme of Total Quality
personally has the potential to tap us into the flow
of life giving forces and ways of living and
working that are ultimately most rewarding and
productive.
FICCI CE
If you want and if you cant - you havent tried.
FICCI CE
Quality : A winning attitude
FICCI CE

Quality Control Circles

Quality control circles is a small group of

employees voluntarily performing quality
control activities within a single work unit.
The aim of QCCs is to facilitate process
control , mutual and self development of
employees and improvement of their
workplace and productivity by full
participation of all members.
FICCI CE

Quality Control Circles

Voluntary teams are not always called QCCs . Other

names commonly used are quality circles, support
teams , synergy teams , work improvement team ,
action for customer team or any other acronym which
the team can identify easily. However they all have a
common objective .
FICCI CE

Quality Control Circles- Objectives

To contribute to the improvement and

development of the organization.
To respect humanity and to build worthwhile lives
and cheerful work areas .
To give fullest recognition to human capabilities
and to draw out each individuals infinite
potential.
FICCI CE

Quality
Costs
&
Profit
FICCI CE

Many people think that quality costs

money and adversely effects profits. But
these costs are the costs of doing it wrong
first time .
Quality in the long run results in increased
profitability.
FICCI CE
Quality , Cost and Profit relationship.

For example if we design the

product right first time , build
it right first time - we save all
the costs of redesign , rework,
scrap, resetting, repair,
warranty work etc.
FICCI CE
Quality and Profit : Paradigm

COST

QUALITY
PROFIT

* A Paradigm is a mind set .

FICCI CE
QUALITY & PROFIT - PARADIGM SHIFT.

PROFIT

QUALITY

COST
FICCI
Increased productivity
1.Lower mfg. costs from
improved cycletime and
reduced errors and defects
2.Increased use of
machine and resources.
3.Improved material use
from reduced scrap and
QUALITY
rejects
4.Increased use of
personnel resources
5.Lower level of asset
investments required to
support operations
6.Lower service and support
costs for eliminated waste
, rework and non value
added activities
CE
Increased profitability
1.Increased sales due to
better on time delivery,
meeting schedules,
reduced cycletime, better
pricing , reliability and
conformance.
2.Imroved gross margins
from lower mfg. costs
due to reduced errors ,
rework, scrap and redundant
and non value added
activities and processes
3.Improved operating
margins from lower
operating costs due to
elimination of waste.
FICCI CE
Quality and Profit

If the organization does not offer high

quality product or service , it will soon
go out of business . But just having High
high quality will not be enough , Quality
because your competitors will also
have the high quality. To win ,
companies will need to offer high
Lower
quality for a lower price than their
price
competitors.This requires organizations
to identify and reduce their quality
costs
FICCI CE
Quality Costs

Quality costs are all those

costs that arise from not
performing a task the right
way the first time.
FICCI CE

Categories of Quality Costs

1. Prevention Costs
2. Appraisal Costs
3. Internal Failure Costs
4. External Failure Costs.
FICCI CE
Prevention Costs

Prevention costs are associated with design,
implementation , maintenance, and planning prior to
actual operation in order to avoid defects from
happening.
The emphasis is on the prevention of defects in order

to reduce the probability of producing defective

products. Prevention activities lead to reduction of
appraisal costs and both type of failures ( internal
and external ).The motto is Prevention rather than
appraisal .
FICCI CE
Activities associated with Prevention costs

Market research

Quality training programmes.

Contract review

Design review

Field trials

Supplier evaluation

Process plan review

Process capability review

Design and manufacture of jigs and fixtures

Preventive maintenance

Engineering changes for easy producibility
FICCI CE
Appraisal costs

Appraisal costs are spent to detect defects to

assure conformance to quality standards.
Appraisal cost activities sums up to the cost of
checking if things are correct.The appraisal
costs are focused on the discovery of defects
rather than prevention of defects
FICCI CE
Activities associated with Appraisal costs

Proto type testing

Vendor surveillance
Incoming material inspection
Process inspection/control
Final inspection
Laboratory testing / measurement
Depreciation cost for measuring
Quality audits.
FICCI CE
Internal failure costs

Internal failure costs occurs when

results of work fail to reach designated
quality standards , and are detected
before transfer to the customer takes
place.
FICCI CE
Activities associated with Internal failure costs

Design changes/ corrective action

Scrap due to design changes
Excess inventory
Rectification / reject disposition of
purchased material
Rework/rejection in manufacturing
Downgrading of end product
Downtime of plant & machinery

Trouble-shooting & investigation of

defects
FICCI CE

External failure costs

External failure costs occur when the

product or service from a process fails
to reach designated quality standards ,
and is not detected until after transfer
to the customer.
FICCI CE

Activities associated with External failure costs

Processing / investigation of customer complaint
Repair/replacement of sold goods

Warranty claims

Product liability & litigation costs

Interest charges on delayed payment due to quality

problems
Loss of customer goodwill & sales.

FICCI CE
Size of four categories of quality costs.

The organizations which do not follow TQM,there

is less emphasis on prevention and their main quality
efforts are on appraisal with very little control on
internal and external failure costs.
Various studies have shown that quality cost in
manufacturing companies the world over range from
20 % to 30 % of turnover and in the case of service
companies it can go up to 40 % as illustrated in
graph on the next slide.
FICCI CE
Size of various quality cost elements
10-15%
Quality costs in % of sales

The total quality

10-12% costs 25-35 %

4-6%

1%

Preventive Appraisal Internal External

Failure Failure
FICCI CE
Impact of TQM on costs.

TQM is primarily aimed to improve the quality of

the product , higher customer satisfaction and better
working environment for the employees. The most
dramatic impact of TQM is on reduction of quality
costs which directly effect the profitability .
This is demonstrated by the results of TQM
programme in Xerox Corp . The change in various
elements of quality cost before and after launching
TQM by Xerox Corp is shown on the next slide.
FICCI CE
Impact of TQM on costs.
An example from Xerox Corp.
35 Internal Failure
Appraisal
30
Prevention
25
% of sales

20
15

10

0
Before TQM After TQM
FICCI CE

Visible costs Scrap

Rework
Warranty costs

Excessive use of material

High inventory
Low plant utilisation
Cost of redesign and reinspection
Cost of resolving customer problems
Cost associated with poor quality
of purchased material
Cost of material handling due to poor
planning
Hidden Costs Cost of non value adding activities
Interest charges due to delayed payments
Opportunity cost due to lost customers
FICCI CE

Quality in
Manufacturing
&
Service
Organizations
FICCI CE
5 - S Technique5 S Technique
The 5 - S practice is a technique
used to establish and maintain
quality environment in an
organization .The name stands
for 5 Japanese words
Seiri
Seiton
Seiso
Sieketsu
Shitsuke
FICCI CE
Seiri :Sort out items and discard the unnecessary
Check :
1.Do you find items scattered in your workplace
2.Are there boxes, papers and other items left
in a disorganised manner.
3.Are there equipments and tools placed on the floor.
4.Are all items sorted out and placed in designated spots.
5.Are the tools properly sorted and stored
FICCI CE
Seiton :Arrange a place for everything .Everything in its place.
Check :
1. Are passages and storage places clearly indicated.
2.Are commonly used tools separated from those seldom used.
3.Are containers and boxes stacked up properly.
4.Are fire extinguishers and hydrants readily accessible.
5.Are there grooves , cracks or bumps on the floor
which hinder work or safety.
FICCI CE
Seiso :Clean your workplace thoroughly.
Check :
1. Are the floor surfaces dirty.
2. Are machines and equipment
dirty.
3. Are wires and pipes dirty or
stained.
4. Are machine nozzles dirty by
lubricants and inks.
5. Are shades , light bulbs and
light reflectors dirty.
FICCI CE
Seiketsu :Maintain a standard.
Check :
1.Is any ones uniform dirty and untidy
2.Are there sufficient lights.
3. Is the noise or heat at your workplace causing discomfort.
4. Is the roof leaking
5.Do people eat at designated places only.
FICCI CE
Shitsuke :Train people to be disciplined

Check :
1. Are regular 5 - S checks
conducted.
2. Do people clean up without
reminders.
3. Do people follow rules and
instructions.
4. Do people wear their uniforms
and safety gears properly.
5. Do people assemble on time.
FICCI CE

Designing Quality
Taguchi methods

The aim of a good design is to

minimize loss to the customer
and the society .
Sources of loss : Product life , wear
and tear, set up time etc.
FICCI CE

Designing quality: Taguchi methods

A good design is the optimal trade off

between cost and performance and must
aim at simplicity . It is easier to make
complicated designs , but it takes a genius
to simplify the design. Costs are reduced
as a result of :
Fast assembly & production
Robustness
fewer suppliers & less administration.
FICCI CE
Designing quality

A good design should aim at reducing

Signal to noise ratio.
Televisions emit both signal and noise.
The signal consists of sound and picture.
It is the desired part of transmission . The
noise is the unwanted part of
transmission.
FICCI CE
Conformance to design

Conformance to design is a systematic way of

guaranteeing that the designed quality is
achieved .Good things only happen when
planned , bad things happen on their own. In
production systems you only get what you put
in , but unless you are careful , you may not
even get that.
FICCI CE
Conformance to Design.
Pokayoke : Poka yoke is a
Japanese word which means
Mistake Proofing.The aim is
to engineer production
systems to eliminate the
possibility of error rather
than relying on quality
inspections. Your ultimate
inspector is the customer.
FICCI CE
TPM : Zero sum approach

Zero defects
Zero breakdowns
Zero losses
FICCI CE
Total Productive Maintenance is
productive maintenance involving
total participation for increased
productivity .
FICCI CE
Why TPM

Downtime
(a) Breakdowns due to
equipment failure.
(b) Setup and adjustment
e.g . exchange of die
injection moulding
machines etc.
FICCI CE
Why TPM

(a) Idling and minor Speed

stoppages e.g. abnormal losses
operations of sensors
(b) Reduced speed e.g.
discrepancies between design
and actual speed of
equipment
FICCI CE
Why TPM

Defects (a) Defect in process and

rework ( scrap and quality
defects requiring repair )
(b) Reduced yield
between machine startup
and stable production.
FICCI CE
Requirements for TPM
Maintain basic equipment
conditions
Maintain operating conditions
Restore deterioration
Correct design weaknesses
Improve technical skill
Expose hidden defects
FICCI CE

Just in time

Leading Japanese companies attribute their

success in reducing waste and speeding
production to the implementation of so called Just
In Time ( JIT ) methods of working. It is also
known as stockless production because the aim is
to receive supplies and manufacture components
Just in time for next operation.In JIT , the ideal
inventory is one.
FICCI CE
Just in time

First sell it , then make it : JIT reverses the conventional

approach of first making and then selling . Ideally
nothing is produced unless a customer is identified . In
some Japanese factories the cars are shipped with the
customers name already attached.

This helps in reducing inventories , warehousing

and other holding costs.
FICCI CE
Just in time

From finish to start : JIT reverses the

conventional approach of planning production
from start to finish .Employees responsible for
final operation receive the production plan first.
The organization is forced to get the production
process right before commencing production.
FICCI CE

Service Delivery
.

.
FICCI CE

Quality in service organizations

In a service organization the producer and

consumer meet face to face . In a service
organization both - quality of the service
and interface are important- unlike a
manufacturing organization where only the
quality of product matters.
FICCI CE

Quality in service organizations

Managing service delivery :Service delivery is

like a theatrical performance . The stage must be
set and the people must act the part .Service
quality is affected not just by the fitness of the
product , but also by the manner of delivery .
A customer may desert a restaurant if the quality
of service deteriorates even though the quality of
food and ambiance is excellent.
FICCI CE

Quality in service organizations

Managing Customers :Planning services require

careful matching of capacity to demand . Unlike
manufacturing goods , services can not be stored.
Every vacant seat at the flight represents an
irrevocable loss of revenue. Conversely,
insufficient capacity creates an even worse problem
- Customers will go somewhere else - a permanent
loss of revenues and profits.
FICCI CE

Quality of service

Interaction with the customers :Interactions affects

perceptions of quality. Spending a little time with
each customer can bring wonders. Properly handled
, a disaster can be turned into a triumph .
When things go wrong the best thing is to
overcompensate .A hotel guest who complained of
no towel found within few minutes two towels,
with apologies from the manager -and his next
drink was on the house.
FICCI CE

Problem Solving
 FICCI CE
ou can not change the direction of the wind
ut you can always adjust your sails
FICCI CE

Kaizen

Kaizen is the Japanese philosophy

of continuous improvement
FICCI CE
Kaizen : Importance

The road to excellence is not the major break-

throughs , but small continuous improvements
that do not cost money, but result in real cost
savings, higher quality or better productivity.
The latest developments in Japan advocate the
idea of taking small incremental Risks along
with small continuous improvements to win .
FICCI CE
Kaizen : Foundations

Employee empowerment

Self discipline

Recognition
FICCI CE
Kaizen : Tools

Waste Elimination .
Standardization.
Housekeeping.
FICCI CE

Rational model for problem solving

FICCI CE
Agree the problem
1 2
Select the Understand the
Problem Problem

Discuss and clarify the problem

and come to a common
understanding about the same
FICCI CE
Eliminate Causes

4 5
Identify possible Gather data
causes of the and test
problem causes

6
Select applicable causes
FICCI CE
Options for Improvement
8
7
Identify potential Gather data and
options for test options for
improvement improvement

9
Select applicable options
for improvement
FICCI CE
Implement solutions
10 11
Plan implementation Implement
of solutions solutions

12
Monitor success of implementation
FICCI CE
Complete the process
13

Standardise
solution

14

Can the idea

be used
somewhere else
FICCI CE
Other approaches : PDCA cycle.

The PDCA cycle

PLAN has the advantage
of being cyclical -
implying that
ACT D0 improvement
never ceases.

CHECK
FICCI CE

Other approaches : Cause and effect

This approach involves breaking problems

down into simple components. This
normally assumes a simplistic , one- to- one
cause and effect relationship. For every
problem , there is a single identifiable
cause. The cause and effect diagram enables
the team to have all causes at a glance.

See the Cause and effect diagram on the next slide.

FICCI CE

Cause and effect diagram.

C A U S E

EFFECT

C A U S E
FICCI CE

The tools are no substitute for human brain

FICCI CE

Other approaches : Brain Storming.

A brain storming
activity that is well
executed should
result in some very
unusual ideas that is
the underlying
purpose for resolving
the given problem.
FICCI CE

Benchmarking
FICCI CE

Benchmarking is quality by comparison

for achieving better standards.
FICCI CE
World Class
Recognised as the best
Benchmarking : Benchmarked by others
Stages of improvement Best in Class
Exceeds customer expectations,outperforms
all direct competitors and has clear competitive
edge

Efficient
Meets all internal requirements for cost margins,
asset utilisation,cycle-time and measures of excellence

Effective
Satisfies or exceeds all customer requirements

Incapable
Is ineffective , ineffecient and at the risk of failing.
Needs major redesign
FICCI CE
World class : Benchmarked by others
FICCI CE
Benchmarking : Relevance

In the global movement today , the competition is

improving at a faster rate , and the only way to
improve your relative quality and move upwards is to
find out and implement the best corporate practices.
FICCI CE

Best practice benchmarking

Best practice benchmarking is a technique used by

companies around the world in all sectors of business to
help them become good or better than the best in the
world in the most important aspects of their operations.
There are 5 key steps to the process of best practice
benchmarking .
FICCI CE

1. Select what to benchmark

This may include :

Product quality
End pricing
Features
Technology
FICCI CE

2. List who to benchmark with

The following are some important considerations

in choosing companies with whom to compare
yourself :
Is their experience really relevant
Are they still at the activity you want to measure

See examples on the next slides on whom to benchmark with

FICCI CE

Benchmarking : Whom to learn from

A. Internal : Compares depts , sites , countries for the

same company. Very relevant . Easy to get information
but inward looking.
B. Competitors : Compares practices with direct
competitors .Very relevant .Can lead to healthy
rewards .
FICCI CE

Benchmarking : Whom to learn from

C. Generic : Compares with the best from all industry

groupings .The key facet of benchmarking is practices
and not just processes .This method helps companies to
find and then innovatively implement the best corporate
practices from all over.
FICCI CE

Generic benchmarking - Examples :

An ammunitions manufacturer improved the finish on its

shell cases from benchmarking a cosmetics lipstick
producer.
A hospital compared its scheduling with an Airline
company.
A financial services company learnt from a Hotel about
client relationships.
FICCI CE
3. Get the Information

You can get a great deal of information from trade

associations, magazines, journals and special
databases. Customers , suppliers and libraries can
also be a good source of inputs.The reliability and
accuracy of the data is however very important in
this regard.
FICCI CE

4. Analyse Gaps.

Too much information is as bad as too little. Gather

and analyse only the information you need to make
a direct comparison of performance .Compare like
with like . Identify the performance gaps and adopt
practices to close gaps .
FICCI CE
5. Set new standards .

Set new standards for the performance and

communicate the plan to all concerned .
Provide the resources for meeting the new
standards.
Monitor the progress of the plan to be
implemented effectively.
FICCI CE

.
Q
.
FICCI CE

Business
Process
Reengineering
FICCI CE

Speed
Service
Quality
FICCI CE
Business Process Reengineering

Continuous improvement can

only take an organization so
far long the quality curve.
Then comes a time when a
sharp upward jump into a
new orbit is required . And
this vertical transition
demands a complete redesign
of processes known as BPR
FICCI CE
BPR - Radical improvement

Reengineering is all about reinventing the

entire organization - including its people,
structures - rather than just processes.
Organizations looking for radical
improvement need BPR.
FICCI CE
BPR - Complex processes

People are limited and simple. The

organizations had to design very simple
tasks and jobs for them to do . This in turn
led to complex organizational processes and
systems , because when the work that is
being done is simple and fragmented we
need a lot of overhead to tie it all together.
Result - high cost , poor quality and bad
service.
FICCI CE
BPR - Simple processes

The organizations therefore

have to start with the premise
that what we need is high -
performing processes . High -
performing processes have to be
simple and simple processes
require complex jobs .
FICCI CE
BPR - Result

This requires individuals to

do larger components of
work and share larger
responsibilities rather than
doing simple jobs to
facilitate high - performing
processes .
FICCI CE
BPR : Where to start.

Forget what your competitor is

doing . Take , instead , a clean
sheet of paper and design your
process the way you would
have done it had you started
from scratch.
FICCI CE
BPR - Key Business Processes

Starting afresh enables an organization to identify

the Key Business Processes and ordinary business
processes. KBPs offer maximum value
propositions to the customer .Ordinary business
processes offer little or no value propositions to
customers.
FICCI CE
BPR - Key Business Processes

The companies must reengineer their Key Business

Processes.
Each KBP must be reengineered to deliver Speed ,
Service & Quality.
This in turn will generate both revenues and profits.
FICCI CE
TQM and BPR differences
TQM BPR

Strategy Continuous small steps Infrequent big leaps

Approach Start with what you have Start with clean sheet
Method Change what you have Forget and start afresh
and learn
Process Overall process Selective , one at a time
Value added Eliminate non value Minimise inputs , add
added activities value to outputs.
Human
Every one is involved in BPR project team
Resources the system
Finance
Less funds required More funds required
FICCI CE

Time
based
Competition
FICCI CE

Time Based Competition

Time has emerged as a dominant dimension of
global competition , fundamentally changing the
way the organizations compete. The traditional
cost based competition is defenseless against
organizations that can provide products and
services with the most value for the lowest cost
and fastest response time. Time based
competitors are changing the rules by developing
reengineered processes that are simpler , faster
and have world class quality.
FICCI CE
Reduce cycle time
Customers now penalize suppliers that infringe
on their time, whether through delays, mistakes
or inconveniences. Todays customers demand
operations that are airborne, on-line and real-
time. Soon is not the answer the customers
want to hear. They count the speed of response
time as a Key Value Dimension. Their directive
to the market place is loud and clear -
continuously shrink the interval between our
need and when you can fill it - qualitatively.
FICCI CE

Time Based Competition : Added Value.

The key to time - based competition is not about driving

people and machines faster, but about the elimination of
waste.
Waste is often confused with materials ruined or discarded
or time which could obviously have been better spent .
However this view is only partial.
Waste is any operation which does not add value.*

* See next slide on operations that do not add value

FICCI CE
Sources of unproductive Time.
Waiting time.
Unnecessary movement.
Over - production.
Rejects.
Set- up times.
Transportation.
Process waste.
Material waste.
Ineffective communication.
Untidiness.
Bottlenecks.
Bad timing.
FICCI CE

Time based competition - Gains.

The implementation of a real-time
organization, with real time systems , will have
the effect of changing the working relationship
within the organization as well as those with
the partners and customers . The application of
technology will change the corporate culture.
As these systems are adopted , new ideas for
services and products , new ways of gaining
customer loyalty and new methods of team
collaboration will take shape resulting in
tremendous gains.
FICCI CE
Competitive advantage
Today the business operates like a
corporate Olympics - a series of games
played all over the world with
international as well as domestic players .
To know how to compete in a way that
enhances rather than undercuts mutual
cooperation is the need of the hour. The
strategies of the organizations must be
oriented towards achieving the highest
standards of excellence rather than wiping
out competition.
FICCI CE

Competitive Advantage

Nike and Reebok did just this. Both

companies market high - tech , fashionable
footwear for sports and fitness , yet neither
of them actually makes shoes . They
contract out the production of their shoes to
footwear companies in Taiwan and South
Korea , who can produce the shoes at a
lower cost than they are able to - Nike and
Reebok only design and market them - and
both are the world leaders.
FICCI CE
Competitive advantage

Hewlett - Packard achieved its biggest

breakthrough with the launch of the HP Laserjet .
Before this , quality laser printers cost up to $
100,000 , and were only compatible with one
companys products. HP bought complete
components from other companies such as Canon
and by combining their strengths were able to
produce a quality printer for under $ 2000 that was
compatible to any other computer. The rest is a
history.
FICCI CE

Measures
of
Excellence
FICCI CE
Continuous improvement is only possible when the
quality objectives can be measured and quantified.
FICCI CE

Measures of Excellence

Marketing
1. Accuracy of forecast assumptions
2. Number of incorrect order entries
3. Overstocked field supplies
4. Contract errors
5. Late deliveries
6. Customer complaints.
FICCI CE
Measures of Excellence

Purchase
1. Premium freight cost/ demurrage charges.
2. Down - time because of parts shortages
3. Number of Off specification parts used to keep
line going.
4. Cycle time from start of purchase request until
items in house.
5. Excess inventory.
6. Percentage of purchased material rejected on
receipt
FICCI CE
Measures of Excellence

Manufacturing
1. Yield per ton of raw materials.
2. Percentage of parts scrapped.
3. Percentage of parts reworked.
4. Percentage of parts accepted on concession.
5. Percentage of final product grades as seconds.
6. Production per man / machine
FICCI CE
Measures of Excellence

Product Engineering
1. Number of engineering changes per document.
2. Number of errors found during design review.
3. Number of errors found in design evaluation test.
4. Percentage of time over- run compared to
planned time for development.
5. Percentage of cost over - run over estimated cost
of development.
6. Number of tooling redesign after trial production
FICCI CE
Measures of Excellence
Quality Assurance
1. Percentage of lots rejected due to errors.
2. Percentage of products having defects
detected by customers.
3. Number of engineering changes that should
have been detected in design review.
4. Errors in inspection / test reports
5. Cycle time to get corrective actions
6. Percentage of appraisal cost compared to
production cost.
FICCI CE
Measures of Excellence

Accounting
1. Percentage of late payments.
2. Time to respond to customer request
for information.
3. Billing errors.
4. Incorrect accounting entries.
5. Payroll errors.
6. Errors in cost estimates.
FICCI CE

International
Quality
Awards
FICCI CE
Performance Measurement -
U.S.A Quality Award .

Customer satisfaction 30 %
Quality Results 18 %
Human Resource Utilization 15 %
Quality assurance systems 14 %
Leadership 10 %
Information & analysis 7%
Strategic quality planning 6%
FICCI CE
Performance Measurement -
Award by European foundation for Quality management

This European framework shows the linkages and comparative ratings

between the components . For your own self assessment different
ratings might be appropriate.

People People
Management 9% Satisfaction 9 % BUSINESS
LEADERSHIP Policy & PROCESSES Customer RESULTS
Strategy 8 % Satisfaction 20 %
10 % 14 % 15 %
Resources 9% Impact on
Society : 6 %

ENABLERS 50 % RESULTS 50 %
FICCI CE

Self check forTQM Status

FICCI simplified TQM

model
&
TQM Action plan.
FICCI CE

Performance Assessment

How to carry out your own company quality

health check is important.However it is not as
easy as measuring the financial health of your
business. Measurement of quality health of
business can be best done by using the
important quality questionnaires given on the
next slides.
FICCI CE
Do you need organized Quality improvement

It will be interesting to know whether you

need an organised quality improvement at this
stage. Please answer a set of 20 questions
given on the next slides to analyse your present
positions.
Give yourself 1 Point for each positive answer
and 0 point for a negative answer.
FICCI CE
Do you need organized Quality improvement

Business Results :

1. Are you getting a larger share of the

potential market each year.
2. Has your organizations productivity
growth rate increased at more than the
inflation rate over the past 3 years.
3. Have your profit increased more than
the inflation rate over the past 3 years.
FICCI CE
Do you need organized Quality improvement

Competition :

4. Is your business results comparable with the best

organizations in your size and industry.
5. Are you able to compete in costs among the supplier
of the products of your class.
6. Do you have inventory level which compares well
with the best companies in your size and industry.
FICCI CE
Do you need organized Quality improvement

Customers :

7. Do you fully understand your customer expectations

concerning your products and services.
8. Does your customer feedback system show that you
are meeting your customers 90 % expectations.
FICCI CE
Do you need organized Quality improvement
Production :

9. Do you always meet production schedules.

10. Are your scrap and rework costs less than 1 % of
your sales .
11. Are you using only parts that meet specifications.
12. Is less than 5 % of your direct work force engaged in
inspecting the product.
13. Is the average availability of plant and machinery
more than 90 %
FICCI CE

Do you need organized quality improvement

Employees :

14. Are you able to attract and retain the best people.
15. Are you spending minimum 0.5 % to 1 % of your
turnover on educating your employees.
16. Do people in your organization meet their
commitments 90 % of the time.
17. Is the rate of absenteeism of staff less than 3 %.
18. Are the employees generally satisfied with the work
environment and have high morals.
FICCI CE
Do you need organized Quality improvement

Purchase :

19. Is your receiving inspection rejecting less than

1 % of the parts that come into your company.
20. Is the incident of late delivery of purchased
products less than 5 %
FICCI CE
Do you need organized Quality improvement

Score:

0-10 :Introduction of TQM is inescapable if you

want to avoid loosing your market share or ending
up making losses.

10-15 : You may have the product quality which

just meets customer requirements , but you need to
launch organised TQM activities to increase your
market share and have competitive edge.
FICCI CE
Do you need organized Quality improvement

Score:

15-20 :Keep it up . You are doing well, but

dont be complacent. There is always a
room for improvement to meet the
challenges of new market environment.
FICCI CE
Self check for TQM status.
Vision
1. Do you have a written quality vision for the company.
2. Based on your quality vision ,have you formulated a strategic
plan laying down methodology and long term quality goals or
objectives.
3. Have you established any short term measurable goals with
respect to quality of your products and services with time
bound action plans.
FICCI CE
Self check for TQM status.
Meeting objectives

1. Is there an organization, such as, quality council or quality

steering committee composed of senior management and does
it meet at least once a month to review the status of quality and
progress towards achievement of quality objectives
2. Do you have specific quality improvement projects identified,
based on analysis of data after prioritization on the basis of
expected business results and for achieving laid down quality
targets.
3. Have you established cross functional teams for taking up
quality improvement projects.
FICCI CE
Self check for TQM status.
Meeting objectives
4. Have you allocated adequate resources in terms of manpower ,
finance and equipment support for effective functioning of
quality improvement project teams.
5. Is the process of quality improvement project team reviewed
by top management at least once a month.
FICCI CE
Self check for TQM
Customers
status.
1. Do you collect quality data from the customers and the
processes regarding non conformities, rework and late
deliveries .
2. Based customer feedback on shortcomings in quality , do you
have a institutionalized system for corrective and preventive
action.
3. Have you established a mechanism to measure the cost of poor
quality covering all departments which have a bearing on
quality of products or services .
4. Is the quality cost data analyzed to set targets for taking
concrete actions toward quality improvement.
FICCI CE
Self check for TQM status.
Employees
1. Do you collect data about satisfaction of employees .
2. Have you got any effective system for redressal of personnel
grievance of employees without involving unions.
3. As a matter of policy does the senior management anticipate
that their subordinates will usually make sound decisions, and
has the management empowered the subordinates for taking
necessary action to solve quality problems and satisfy the
customers.
4. Are the employees encouraged to bring out the weaknesses or
shortcomings in their own area of operations which affect the
quality of product or service.
FICCI CE
Self check for TQM status.
Employees
5. Does the top management spend at least 5 % of their time
on planning , review and facilitation of quality related
activities.
6. In the case of quality problems or complaints, is it taken as a
opportunity to uncover the root cause rather than fixing
responsibility on an individual
7. Have you got an organized training programme on quality,
covering all levels of employees.
FICCI CE
Self check for TQM status.
Employees

8. Do you have a system of motivation of employees towards

quality by recognition of a kind that is valued by the employees.
9. Is the performance of an employee towards achievement of
quality goals taken into consideration for merit rating ,
compensation , promotion and financial rewards.
FICCI CE
Self check for TQM status.
Processes/ Systems
1. Do you benchmark your important business processes with the
best in class to assess the gap and scope for improvement.
2. Is your management alive to the social responsibilities and take
effective measures to protect the environment and support
community services.
3. Have you got any institutionalized system of quality audit of all
departments and functional groups to assess the effectiveness of
quality programmes for initiating corrective measures.
FICCI CE
FICCI Simplified TQM Model
For Indian industries

At present various models are existing on TQM . These

models are highly complicated and far away from the
realities of Indian industries. Therefore FICCI has
evolved a simplified model of TQM which can be
easily understood and implemented.
This model lays emphasis on measurable results
which alone can justify tremendous investment of time
and resources.
FICCI CE

FICCI TQM MODEL

Operational Management
Quality planning
Resource Management
Process measurement and control
Quality improvement
Training & motivation
Executive Leadership

Customer
Strategic quality planning Satisfaction
Policy deployment
Customer focus Process
Participative Mgt. Culture Quality
TQM review & rewards
Business
Results
Organisational structure
Customer requirement
Standard methods/procedures
Quality data
Tools & techniques

Quality System
FICCI CE

ISO 9000 and TQM

Many companies make attempt to launch TQM in

their organizations without formal systems like ISO
9000. Any such attempt may not give very positive
results because without the support of ISO 9000, the
TQM can not go very far in any organization .
The relationship between TQM and ISO 9000 is
shown on the next slide.
FICCI CE
ISO 9000 system supports the Quality movement

P D
A C
ISO
9000
Quality

P D
A C

ISO
9000

Time
FICCI CE

When the going gets tough,

the tough gets going.
FICCI CE

The journey to hundred miles begins

with one single step.
FICCI CE
TQM road map

1. Develop long term vision or mission of the

organization by top management after strategic
consideration of markets and core competencies of
the company.
2. Constitute Quality Council or steering Committee
under the CEO to demonstrate strong commitment
to quality mission.
3.Training of members of quality council on basic
concepts of TQM and their impact on business.
FICCI CE
TQM Road-map

4. Organise quality audit of the organisation including

customer perception survey, employee satisfaction
survey to determine the present status of quality in
the company.
5. Define measurable objectives which must be agreed
by the top management as indicators of success for
the mission.
6. Identify critical processes and activities for
attainment of objectives.
FICCI CE
TQM Road-map

7. Organise general quality awareness training at all

levels, and specialised training on quality tools and
techniques for persons who will be required to use
them.
8. Based on the critical process already identified ,
develop departmental TQM plans with well defined
sub-targets and responsibilities.
9. Establish a mechanism for inter-departmental co-
ordination for determining agreed inputs and mutual
support for attainment of departmental objectives.
FICCI CE
TQM Road-map

10. Develop monitoring system with milestones for periodic

review by the management team.
11. Formally launch the first phase of the TQM programme
for implementation.
12.After trial period of say 3 months , carry out organised
audit of the programme by trained auditors who are not
involved in the activities being audited.
13.Conduct review by the steering committee and apply
corrective measures.
FICCI CE
TQM Road-map

14. Continue implementation effort and corrective

measures for at least one year.
15. Evaluate impact of successful activities on business
and analyse failures.
16. Expand areas of success and try other approaches
for failed projects till major objectives of the first
phase are achieved.
17. Benchmark critical functions and processes with best
in class to determine gaps.
FICCI CE
TQM Road-map

18. Conduct extensive review of the first phase of TQM

programme.
19. Learning from successes and failures draw up plan
for next phase of TQM programme with stretch goals.
20. Institutionalise continuous improvement through
PDCA cycle.
FICCI CE
Quality - A total ideology.

The hallmarks of quality organizations are high
return high performing processes , empowered , well
paid and highly motivated personnel , good corporate
citizenship , respect for the environment, happy and
delighted customers , free from shoddy and unsafe
products . Quality - a total ideology -creates the
ideal win-win-win-win situation for all.
FICCI CE

Quality is an endless journey

FICCI CE

Source of Information and advise

General
General H.LAL
H.LAL :: General H.Lal is a mechanical Engineer .. In In 1971
1971 he he joined
joined
Defence
Defence Quality Organization
Organization and and held
held important
important appointments
appointments till
till in
in 1987
1987 hehe
reached
reached thethe highest
highest position
position ofof Director
Director General, Defence Quality Assurance
Organisation.After
Organisation.After retirement he was appointed
appointed asas Director
Director General
General ,, Bureau of
Indian
Indian Standards.
Standards. InIn addition
addition toto standards
standards he
he pioneered
pioneered the
the Quality
Quality movement in
India.
India. ByBy his
his sustained efforts
efforts through
through TV , media
media and seminars he brought
Quality
Quality into
into national
national focus.
focus.
He
He is internationally recognised quality expert and his new book ISO 9000 9000 :
Guidelines
Guidelines for developing countries has recently been published by ISO and
UNCTAD/GATT.
UNCTAD/GATT. He He isis the
the chairman
chairman ofof MSD
MSD Council
Council of
of BIS
BIS which formulates
national
national standards
standards ofof quality
quality management
management .. He He isis also
also the
the adviser
adviser to to the
the
UNITED
UNITED NATIONS
NATIONS DEVELOPMENT
DEVELOPMENT ORGANIZATION(
ORGANIZATION( UNIDO UNIDO ).).
He
He is
is at
at present the Director
Director General
General , FICCI
FICCI Quality
Quality Forum.
Forum.
FICCI CE

Research, Artwork, Design and development

Pravin Rajpal :Mr Pravin Rajpal is a Chartered

Accountant with more than 12 years of work experience
in some of the best professionally managed companies in
India. He worked for Eicher Consultancy services , a
premier management consultancy company in India for 4
years .
At present he is the CEO of Competitive Edge,
Management Consultants .
FICCI CE

We welcome your suggestions

and valuable inputs.

Please call at : 011-3739947 or

write to FICCI Quality Forum
1, Tansen Marg, Federation House
New Delhi.
FICCI CE

.
References
The Deming route to quality and productivity - Scherkenbach, W W ( 1986 ). Mercury , London.
Competing against time .Stalk, G Jr , and Hout , TM ( 1990 ) .
Out of the Crisis - Deming . Cambridge university press, Cambridge.
In search of excellence- Peters, TJ and Waterman, Harper & Row, New York.
Quality is free - Crosby, McGraw-Hill , New York.
On-line quality control during production - Japanese Standards Association, Tokyo.
World class manufacturing: The lessons of simplicity applied - Free press , New York.
Taguchi Methods from the perspective of competitive advantage - Edwin B. Dean.
Zero quality control:Source inspection and the Poka-Yoke system - Productivity press, Cambridge.
Zen and the art of motorcycle management - Prisig R, Corgi , London.
Service Management - John Wiley , Chichester.
Just in Time for today and tomorrow , Productivity press , Cambridge , M A.
Reengineering the corporation : A manifesto for business Revolution - Michael Hammer
Principles of marketing - Philip Kotler.
The competitive Advantage of nations and their firms - Michael Porter.
Time based competition : The battleground in American manufacturing- Joseph D. Blackburn.
Designed and developed jointly by FICCI and Competitive Edge ,
Management Consultants . Copyright 1998. ALL RIGHTS RESERVED.