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Anju Jain (PMBX1010)

TOTAL QUALITY MAN AGEMENT

(TQM)

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Flo w o f p r e se n t at io n

1 . W h at is T Q M : D efin it io n an d C o n ce pt s

2 . T h e Evo lu t io n o f T Q M : H o w it c am e t o b e .

3 . B en e fit s o f T Q M

4 . C o st Im p ac t an d M e asu r e m e n t s

5 . Real li fe ex am ple Tat a St ee l

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D efin i t i o n : To t al Q ualit y M anagem ent It i s an i n t egr ated o r gan i zat i o nal e ffo r t designed to im pr o ve

qu al it y at ever y leve l .

I t i s abo ut m eet ing qual it y exp ec ta t io ns as de f ined by t hec u s t o me r .

To t al : Invo lves ever y o ne and enco m passes ever y th ing t hec o m p an y d o e s

Qu alit y : C o n fo r m an c e t o t h e r e q u ir e m e n t s

Managem ent : In t egr at es al l o r ganizat io nal funct io ns. Q ual it y

can and m ust be m anagedT h e em p h asis o f t o t al q ualit y m an agem e nt is t o : "d esignan d b u ild q u alit y in , r at h er t h an t r y ing t o in sp ect an dr e p air i t " .

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C o n c e p t sTo ta l qua li t y m anagem en t i s based o n t he fo l low ing p r inc ip les:

Concen t ra t i on towards mee t ing va r ious and eve r - i nc reas ing more soph is t i ca ted

customers' requirements.

C o n c e n t r at i o n o n p r o c e sse s an d t h e i r continuous improvement .

T he co r r ec t w ay fo r ach iev ing qua li t y i s total activities management in va lue-cha in .

T he em phasis i s on prevention, n o t o n i n sp e c t i o n a t t h e e n d o f t h e p r o d u c t

m anu fac tu r ing p ro cess.

Every employee i s to be engaged in qua li t y im pro vemen t and r espo ns ib le fo r h i s

w o r k q u al it y .

I t i s on l y by team-work tha t p rocesses can be improved and h igh qua l i ty ach ieved. D ec ision m ak ing i s to be based o n accurate and relevant information.

En t e r p r i se is t o c o o p e r a t e w i t h t h o se suppliers w ho are ab le to asce r ta inqua l i ta t ive inputs .

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H o w it c am e t o b e ..

I n d ian C o m p an ie s w h ich w o n th e aw ar d

2 0 0 3 : M ah i n d r a & M ah i n d r a L t d ., t h e w o r l d 's fi r s t t r ac t o r c o m p an y t o w i n .

2008 : Tata stee l : the f i r s t i n t eg ra ted s tee l p lan t i n As ia to w in D em ing aw ard .

D e ve lo p e d b y Am e r i can m an age me n t co n su lt a n ts E. Edward s Dem ing , Josep h M . Jur an an d A r m a n d V Feigenbau m.

T ho ugh or iginated in 19 60s and gained pr o m inence in 198 0s. I t w as em br aced by the Japanesem anager s en th us iast i ca ll y so m uch th at th e Deming Prize w as in t r o duced by JU SE (U n ion o fJapanese Scient ists and Engineer s)

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Benef i ts

El im inat io n o f no n-va lue-add ing act iv it ies (such as set t ing upmach ines and order ing mater ia l s ) .

Reduct ion of inventor ies , lead- t imes, and defects .

St r eam l in i ng p r o duc t i on f lo w .

Supp l ie r s co o per at i o n .

Inc r easing th e fl ex i b il it y o f t he w o r k fo r ce .

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T Q M - C o st Im p act an d M easu r em en t T Q M i s ex p ec t ed t o b r i ng do w n c os t s re l at ed t o i nspec t i on , r ew o r k , sc rap

and w ar r an t y repa ir s and th us resu l t in f inanc ial benef it s alon g w i th be t t e re f fi c iency and pr o duc t i v it y.

To he lp im p lem ent T Q M , m anager ial accou nt an t s usual ly need t o

D o a cost benefit analysis o f TQ M i mp l e me n t at i o n o ve rh e a d ver su s it s co s t ad van ta ge s

D o benchmarking against t he bes t p r ac t i ces com pan ies Per iod ica ll y repo r t and analyze cost-of-quality sin ce T Q M in vo lve s C o n t inu o u s

I m p r o v e m e n t

Use cost ing techniques such as Activity Based Costing t h a t g ive mo re e m p h a si s t o t h epr ocesses invo lved in c r eat ing a p ro duc t o r de l i ve r ing a se r v i ce

Iden t i fy the value added fo r th e custo m er by each ac t i v i ty and thus control non-valueadding activities

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Tata Steel Tata St ee l has been pur su ing T Q M fo r bus iness ex ce llence fo r m al ly since th e

late 198 0s .

T h e k e y T Q M e le m e n t s as p r ac t ic ed b y t h e c o m p an y w e r e :

Pol icy management

D ai ly m anagem ent

Pro blem So lv ing and Task A chiev ing W o n t h e D e m i n g A p p l ic at i o n Pr i ze i n FY 2 0 0 8 - 0 9 .

Live C ase

The Task:To keep in check p r i ce r i ses , l im i t p r i ce vo lat i l i t y and even tu al ly con t r o l co sts .

Action: Inc luded innova t ion s and im pr ovem ent i n i t i at i ves us ing To ta l Q ua li ty M anagem entp re ce p ts .

Result:A s a resu l t o f t hese focused str a teg ies, th e D iv ision ach ieved a savings o f Rs. 725cro res in FY 10 , com pr i sing Rs. 275 c ro res th ro ugh st r a tegic in i t i a t i ves and Rs. 450 c ro res inp r i ce r e d u c t i o n s

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T H A N K YO U ! ! !