TQM ABSTRACT

In the current industrial market companies are trying to achieve the competitive edge.
Current market is well known as buyers market because they are having wide range of
options to select their product. To hook them with the company, companies need to
treat '' customers as the kings''. By focusing their preferences like product quality, cost,
after sales support etc. To achieve the competitive edge companies are trying to cop up
with advanced concepts and targeting continuous improvement on its process. In the
current scenario customer expects more and they are focusing more so the company
not only requires achieving the customer requirement also want to achieve beyond that.

Globalization and increased competition in the market result in pushing the companies
to produce the products with high quality. To achieve this it is important to follow first in
class methods to manage all the activities. TQM is a management approach initially
started on Japanese and United States manufacturing sector. The successful
implementation of this results wide spreading of TQM to other domains and nations. In
the current market the companies are trying to implement and improve the key
components of TQM. Many companies are experienced in rebuilding their
competitiveness by applying TQM.

PART A.

Total Quality Management (TQM)

Introduction

As per the name total quality management (TQM) , T stands for the total activities
related to the organization, Q stands for quality in all the activities and M stands for
managerial approach towards these activities. The concept of TQM are the means to
manage an organization to satisfy, exceeds and conform to customers needs and
requirements. The chapter details about the debating statement

'' TQM implementation and enhanced business performance invariantly have a strong
positive correlation in industries''

Also the chapter describes the discussion and interpretation on the same, selection of
TQM implementation case studies, data collection related to the TQM and conclusion on
the statement.

TQM in Rane Brakes.

Rane Brake Linings is automobile parts supplier to major OEMs located in India, having Group
turnover of 375 million USD for the year 2009 – 10.They launched TQM under guidance of "Union of
Japanese Scientists and   Engineers" on 2000 and wins Deming Application Prize on 2003.and still striving
towards continuous improvement.
http://www.krannert.purdue.edu/centers/ciber/publications/pdf/Iyer-
Indian_Manufacturing_The_Rane_Case.pdf

Zerox

Xerox Corporation  is a Fortune 500 global document management company founded in 1906 which
manufactures and sells a range of color and black-and-white printers, multifunction systems, photo
copiers, digital production printing presses etc. The Xerox Corporation started its journey towards
TQM in the 1970’s with the invention of Palo Alto Research Center. The total quality management
(TQM) process undertaken by Xerox Corp played a vital role in making the company a leader in the
manufacture of copying machines.

http://totalqualitymanagement.wordpress.com/2008/09/12/benchmarking/

http://www.springer.com/engineering/mechanical+eng/book/978-0-412-71530-3?cm_mmc=Google-_-
Book%20Search-_-Springer-_-0

http://www.odsummitindia.org/content/html/Best%20Practises/Mostafa%20Moballeghi.pdf

http://www.cluteinstitute-onlinejournals.com/PDFs/114.pdf

http://www.school-for-champions.com/competition/tqm.htm

http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/tqmxerox.htm
TQM-Enhanced business performance

Applying TQM helps in reducing cost by reducing the waste in the organization, supplying quality
products and satisfying the customer. Company which produces quality goods with lower cost have an
advantage compared to the competitors for getting more business in the market by selecting the
customers.

Continuous improvement process because of TQM reduces the losses due to the waste by wrong
practices and returned goods because of low quality. Continuous improvement allows in reducing the
wastes and lowering the cost. Product with good quality and lower price attracts the customer and
increase the business. Cost and quality of the product also depends the suppliers and workers of the
company. Company is getting the opportunity to empower the customers and supplier by applying TQM
in an organization. One of the important aspect of TQM is to help the suppliers in providing quality to
the company. It helps in manufacturing the product with higher quality. TQM implementation keeps the
workers as a part of the team it results them to provide quality output. It results competitive advantage
to compete in the market.

Getting customer satisfaction is an important advantage of the company over their competitors.
Applying TQM gives a value-added service to the customers. It results the customer to hook up with the
company and referring the company by the customers to others. It makes sure that the things are done
at the right way at first time. It reduces the waste hence helps in reducing the product cost.

Conclusion

The upper mentioned case studies of TQM implementation shows improved productivity, customer
satisfaction, reduced product cost, producing market winning processes an end result etc. It helps
the companies to be at the competitive edge in today’s market. Developing strong and sustainable
competitiveness is challenging and time consuming.tqm supports to develop a total quality culture
in the organization. It requires involvement and commitment from top management. Once the
TQM culture introduced in the organization results continuous improvement and it results the
competitive advantage to compete in the market and increase the business by delivering product
with higher quality, less cost with in short period of time.

So I agree the statement “TQM implementation and enhanced business performance invariably
have a strong positive correlation in Industries”
PART B

1. Six sigma implementation in TATA consultancy services(TCS).

Introduction

The case study details about six sigma implementation in TCS, Chennai, India. The
chapter details about the application of six sigma methods by taking example of a
project, details of the benefits achieved after implementation, listing out the
organizational and managerial issues addressed.

Six sigma is a disciplined, data driven approach and methodology for eliminating
defects of any process from manufacturing to transactional and from product to service,
defects are considered as anything which leads to customer dissatisfaction. Each six
sigma project carried out in an organization results quantified financial improvements.

In TCS Six sigma approach mainly focusing on ,

 Customer needs

 Data driven approach

 Inputs of the process.

 On time, accurate and complete deliveries.

 Fast response for the customer,

 Market place competitiveness

Methodology applied

Restructuring the organization by considering,

 the manager as champion, one who creates the vision and define the path to six
sigma quality.

 Master Black belt: it is a mentor who develops six sigma networks, supervises six
sigma projects, provides training etc.

 Black belt & green belts: who leads the team, demonstrate the application of six
sigma tools, train the team members. Black belts work full time on six sigma
projects.

Phases implemented are as follows,

Define Phase: It consists the identification of the process to be improved. Identification of the customer
needs and translation of this into Critical to Quality characteristics, defining teams & project scopes etc.

In this identified problems are mainly in field errors. It necessitates implementing the project with a long
term process improvement capability and measurement standards by client.

Measuring Phase: The key internal processes that influence the CTQs are identified and the defects
generated relative to the identified CTQs are measured. Implemented the measuring related to the
phase and classified the field errors reported by clients. These defects are in studying of the project,
defect in execution and defect in delivery.

Analyze phase: it consists the understanding of defects those are occurred. Understanding and
explaining of the variables those are most likely to effect the process variation. Process performance
way assess by six sigma tools to isolate the key problem areas, to study the cause of deviation from ideal
performance. As a result of analysis probable causes which leads to quality non-conformance are listed
out, identified the potential failure modes in which a process or product may fail to meet specification
and rating the severity of the effect on the customer.

Process improvement phase: Here occurs the confirming of variables , quantifying the effect of variables
on ctq’s. Identifying maximum acceptable range of the variables. Validating the measuring systems etc.
In the project sit results introduction of the checklists, guidelines and procedures, methodologies,
training, error proofing tools, standards etc.

Control phase: here occurs the ensuring of modified process now enables the key variables to stay with
in the maximum acceptable range. The process improvement methodologies result in improvement of
process capabilities from 3.48 sigma to 3.98 sigma in the long term and 4.98 to 5.4 sigma in short term,
reduction of field errors occurred , capability of quality deliverables increased to more than five sigma.
Control charts are introduced to track the process level.
http://www.tcs.com/SiteCollectionDocuments/White
%20Papers/QualityImprovementTheSixSigmaWay.pdf

Results.

 Reducing and eliminating errors.

 Reducing process variation
 Increasing process capability.
 A measure of quality that strives for near perfection introduced

 Transform itself in a world class organization.

Six sigma in Bharti Broadband Networks(BBNL)

Bharti Broadband Networks (BBNL) is a leading integrated broadband service provider operating in the
broadband, Internet and VSAT markets. It provides customized and integrated solutions to corporate
customers. The company had a goal of delivering error-free services to customers by doing the job right
the first time, every time.

Methodology and objectives towards six sigma

Objectives

Customer satisfaction

Employee satisfaction

Improve revenue

Methodologies

A cross functional team was formed to tackle the project with a leader called as champion, black
belts and green belts. Each project includes defining and quantifying the problem. During measuring of
critical business and process. It was found that the baseline was not as per the customer expectations.
Observed a gap of 30-40% in some processes. Analysis on the measured data has been done. Which
identified where and how the defects occur. After analyzing the defects. Process improvement
implemented towards simplifying the process instead of changing the entire process. It results optimum
utilization of resources. It increases the entire productivity of the organization. In implementation step
the solutions are identified and applied on the issues. In controlling phase methods are introduced to
sustained the improvements. Monitoring of the project has been done by a quality dash board. During
each month the performance has been evaluated and reported.

Results

BBNL had achieved 66 % timely complaint resolution from baseline

Order implementation of 70 % from base line.

51 % timely invoice submission from baseline.

‘improved customer satisfaction and process effectiveness

Improved productivity.

http://www.expresscomputeronline.com/20041011/casestudies16.shtml

Conclusion

Six sigma is a power full tool in business improvement methodology. Which helps in achieving global
competitiveness for the industries. This part of the assignment has detailed and explained the structure,
cultures, skills and management style before and after the six sigma implementation.

2. Comparison between TQM and ISO based on approach and end results.

  APPROACH
SI No. TQM ISO
Towards standardization of
1 Continuous improvement
activities
 Focusing on goals based on Focusing on quality goals based
2
external benchmarks on internal capabilities
Statistical tools to understand
3 Statistical tools as technique
variation in processes

  RESULT
SI No TQM ISO
Target towards the methods to Targets the minimum standards
1
achieve best to achieve the quality
consists documentation,
it doesn’t based up on solid
2 auditing etc which gives easy
documentation
monitoring
It gives great standard of
3 work force improvement is less.
improvement in workforce

3. 1. Principle

Its a management process based on a co-ordinated set of disciplines which is ultimately

targeting to achieve and excess the customer demands. In the current competitive
industrial market where buyers are kings. For example, companies A & B are vendors of
the industry 'X'. Company X wants a product with dimension diameter 20 +1/-1mm.
Company a is producing a batch of 1000 components with diameter 20.7 mm. Company
b is producing a batch of 1000 components with diameter 20.0 mm. based on company
x, company x always give more preference in selecting the company b for their orders
because the products from company b produces the products with increased quality.

In TQM top management organizes all of its strategies on meeting customer needs by
developing culture with high employ participation. Here the customers divided into two,
they are internal customers i.e. Departments inside organization acts in between
customer and supplier and external customers.

Based on TQM the companies are trying to achieve the elimination of waste and
continuous improvement in all of its operational procedures rather than what they are
achieved through out a long term commitment.

TQM follows the methods like “Do-it-right first time”. The idea here is that with a
philosophy of zero defects, you can increase profits both by eliminating the cost of
failure and increasing revenues through increased customer satisfaction.

2. Need of TQM
Clear focus on the needs of market

Instead of considering the technical details of the product to satisfy the customer, TQM
focuses over other customer satisfaction measures.

TQM not only targeting the product quality also it targets the entire process to achieve
the product with high quality.

Achieving the quality requires a strategic and systematic long term planning by focusing
on the methods to achieve goals, objectives, introducing quality policies and
communicating this from top-level to bottom level of the organizational structure.

It focuses on the organizational activities and removes 'MUDA' on these activities,

through continuous improvement process.

It is not only targeting the product quality & service also brings attitudinal and cultural
change through a participative work culture and effective team work. It increases the
employee interest in job, employee performance.

It results developing an organization with highly competitiveness which is must to

survive the highly competitive market.TQM results in proper understanding of customer
and market. It gives proper target to be at the competitive edge.

By developing cross functional management, cross functional teams brings proper

communication. It results a highly competitive product with in a small span of time and
small product cost.

3. Integration of three important process of TQM

A process is a series of activities used to transform input to output in the form of raw
material , purchased parts, products or services etc.TQM consists mainly three
important process they are customer satisfaction involvement of every one and
continuous quality improvement

Based on TQM organization consists internal and external customers. Internal

customers consists each department of the organization or it’s the personal working in
this departments. External customers are as the buyers, suppliers’ etc.TQM needs
involvement of everyone towards the target as zero defects. To achieve zero defects
each employee must understand the processes, product and TQM methods to achieve
defect free environment. The improvement of process of an organization causes
reduced product cost, increased product quality etc. It keeps the customer happy and
attraction of more customers. Customer satisfaction is a term which is measure of how
products and services supplied by the company meets or surpasses the customer
expectation. Continuous improvement towards improving the process and product
quality results a higher level of customer satisfaction and attraction of more customers.
It results in improvement of company business and higher productivity.
http://totalqualitymanagement.wordpress.com/2008/09/12/customer-focus-and-satisfaction/

5. TQM action plan are as follows

1. Obtain CEO Commitment

2. Educate Upper-Level Management
3. Create Steering Committee
4. Outline the Vision Statement, Mission Statement, & Guiding Principles
5. Prepare a Flow Diagram of Company Processes
6. Focus on the Owner/Customer (External) & Surveys
7. Consider the Employee as an Internal Owner/customer
8. Provide a Quality Training Program
9. Establish Quality Improvement Teams
10. Implement Process Improvements
11. Use the Tools of TQM
12. Know the Benefits of TQM

7. Sustaining TQM
Implementing Total quality management is a long-term process. An organization will take a long
time to put the principles, procedures and systems into place, creating an organizational culture with
continuous improvement and change the working attitude of people, it requires active, visible,
consistent, and enabling leadership by managers at all levels, Sustainability of TQM mainly depends
the below mentioned points.

1. A series of transformational change through an evolutionary path reflecting a product,

service, customer and market orientations.
2. The existence of a number of critical factors which impinge greatly on TQM successful
implementation and which enable increased performance.
3. The creation of a culture of continuous improvement, learning and innovation so as to have in
place a sustainable growth.