Total Quality Management & 6 Sigma

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Transcript of Total Quality Management & 6 Sigma

Meaning of TQM

Total Quality management is defined as a continuous effort by the management as well as employees of a particular organization to ensure long term customer

loyalty and customer satisfaction.

Total quality management ensures that every single employee is working towards the improvement of

work culture, processes, services, systems and so on to ensure long term success.

Total Quality management can be divided into four categories:

• Plan• Do• Check• Act

Also referred to as PDCA cycle.

Planning Phase• In this phase employees have to come up with their problems

and queries which need to be addressed. • Employees are required to do necessary research and collect

relevant data which would help them find solutions to all the problems.

Doing Phase• Employees develop a solution for the problems defined in

planning phase. • Strategies are devised and implemented to overcome the

challenges faced by employees. The effectiveness of solutions and strategies is also measured in this stage.

• Checking PhaseChecking phase is the stage where people actually do a comparison analysis of before and after data to confirm the effectiveness of the processes and measure the results.

• Acting PhaseIn this phase employees document their results and prepare themselves to address other problems.

Elements of TQM

The success of total quality management depends on following• Foundation• Building Bricks• Binding Mortar• Roof

FOUNDATION includes:Ethics - Ethics is an individual’s understanding of

what is good and bad at the workplace.

Integrity - Integrity refers to honesty, values and an individual’s sincerity at

workplace.

Trust - Trust improves relationship among employees and eventually helps in better decision making which further helps in implementing total quality management successfully.

Bricks include: Training-Managers need to make their fellow workers aware of the benefits of total quality management and how would it make a difference in their product quality and eventually yield profits for their organization.

Teamwork-Team work is a crucial element of total quality management. Rather than working individually, employees need to work in teams.

Leadership-Total Quality Management needs to have a supervisor who acts as a strong source of inspiration for other members and can assist them in decision making. 

Binding Motar includes:• Communication : upward, downward, sideways-

Communication binds employees and extracts the best out of them. Information needs to be passed on from the sender to the recipient in its desired form.

Roof: Recognition- Recognition is the most important factor which acts as a catalyst and drives employees to work hard as a team and deliver their lever best.

Every individual is hungry for appreciation and recognition.

BENEFITS OF TQM

Advantages unique to TQM1.It makes a company a leader and not follower.2.TQM creates goal direction connection between customer, management and workers. Everyone is motivated to contribute. 3.It makes the company more sensitive to customer needs

Benefits to customers1.Fewer problems with product or service.2.Better customer care.3.Greater satisfaction.

5 Principles

Produce quality work the first time

Quality is built into the processes for producing products or providing servicesContinual improvement measures are taken to ensure the processes work every time. Employees are empowered to make decisions to improve a process and are provided with continual training to develop their skills.

Involves designing products or services that meet or exceed the customer's expectations. This involves the product itself, its functionality, attributes, convenience and even the means by which the information about a product is received by a client.

Focus on the customer

Have a strategic approach to

improvementProcesses are developed and tested to ensure the product or service's quality. This also involves making sure suppliers offer quality supplies needed to produce products.

Continuously

Always analyzing the way work is being performed to determine if more effective or efficient ways are possible, making improvements and striving for excellence all the time.

Encourage mutual respect and teamwork

Important because it fosters a single-organizational culture of excellence by knowing that every employee from top to bottom of the hierarchy holds the same core principles at heart.

What Is • Six Sigma at

many organizations simply means a measure of quality that strives for near perfection.

Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects.

6 Sigma

• Improve Customer Satisfaction• Standardize Business Development• Ensure Industry and Government Compliance• Develop Career Growth Opportunities

6 Sigma MethodologySix Sigma has 3 key methodologies:• DMAIC: It refers to a data-driven strategy for

improving processes. This methodology is used to improve an existing business process.

• DMADV: Data-driven strategy for designing products & processes. This methodology is used to create new product designs or process designs

• DFSS: Design For Six Sigma. DFSS is a data-driven strategy for designing or redesigning a product or service from the ground up.

Benefits

• Up to 50% process cost reduction• Cycle-time improvement• Less waste of materials• A better understanding of customer

requirements, increased customer satisfaction and

• More reliable products and services companies that practice Six Sigma.

It is acknowledged that Six Sigma can be costly to implement and can take several years before a company begins to see bottom-line results. Texas Instruments, Scientific-Atlanta, General Electric, and Allied Signal are a few of the

Implementation Roles

• Executive leadership• Champions• Master Black Belt• Black Belts• Green Belt

Criticism

• Lack of originality• Role of consultants• Potential negative effects• Over-reliance on statistical tools• Lack of systematic documentation