TOTAL QUALITY MANAGEMENT (TQM): V.Sangeetha

Introduction

Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations.

TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor.

Meaning of Total Quality Management (TQM)

Total = Quality involves everyone and all activities in the company.

Quality = Conformance to Requirements (Meeting Customer Requirements).

Management = Quality can and must be managed.

TQM = A process for managing quality; it must be a continuous way of life; a philosophy of perpetual

            Hashmi.K has defined Total Quality Management (TQM) as a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices.

TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc., to focus on meeting customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers.

"Do the right things, right the first time, every time".

It includes

• Commitment by senior management and all employees
• Meeting customer requirements
• Reducing development cycle times
• Just In Time/Demand Flow Manufacturing
• Improvement teams
• Reducing product and service costs
• Systems to facilitate improvement
• Line Management ownership
• Employee involvement and empowerment
• Recognition and celebration
• Challenging quantified goals and benchmarking
• Focus on processes / improvement plans
• Specific incorporation in strategic planning

This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.

Principles of TQM

The Principles of TQM are as follows:

ü      Quality can and must be managed.

ü      Everyone has a customer and is a supplier.

ü      Processes, not people are the problem.

ü      Every employee is responsible for quality.

ü      Problems must be prevented, not just fixed.

ü      Quality must be measured.

ü      Quality improvements must be continuous.

ü      The quality standard is defect free.

ü      Goals are based on requirements, not negotiated.

ü      Life cycle costs, not front end costs.

ü      Management must be involved and lead.

ü      Plan and organize for quality improvement

Ø      Plan (drive, direct)

Ø      Do (deploy, support, participate)

Ø      Check (review)

Ø      Act (recognize, communicate, revise)

Ø      Training

Ø      Suggestion scheme

Ø      Measurement and recognition

Ø      Excellence teams

Ø      SPC (statistical process control)

Ø      DOE, FMEA

Ø      The 7 statistical tools

Ø      TOPS (FORD 8D - Team Oriented Problem Solving)

Ø      Systematic measurement and focus on CONQ

Ø      Excellence teams

Ø      Cross-functional process management

Ø      Attain, maintain, improve standards

v     Customer Focus

Ø      Supplier partnership

Ø      Service relationship with internal customers

Ø      Never compromise quality

Ø      Customer driven standards

Ten Steps to TQM are as follows:

• Pursue New Strategic Thinking
• Know your Customers
• Set True Customer Requirements
• Concentrate on Prevention, Not Correction
• Reduce Chronic Waste
• Pursue a Continuous Improvement Strategy
• Use Structured Methodology for Process Improvement
• Reduce Variation
• Use a Balanced Approach
• Apply to All Functions

§         Customer-driven quality,

§         Top management leadership and commitment,

§         Continuous improvement,

§         Fast response,

§         Actions based on facts,

§         Employee participation

§         Product development, and

§         TQM culture.

            TQM has a customer-first orientation. The customer, not internal activities and constraints, comes first. Customer satisfaction is seen as the company's highest priority. The company believes it will only be successful if customers are satisfied. The TQM company is sensitive to customer requirements and responds rapidly to them. In the TQM context, `being sensitive to customer requirements' goes beyond defect and error reduction, and merely meeting specifications or reducing customer complaints. The concept of requirements is expanded to take in not only product and service attributes that meet basic requirements, but also those that enhance and differentiate them for
competitiveadvantage.
            Each part of the company is involved in Total Quality, operating as a customer to some functions and as a supplier to others. The Engineering Department is a supplier to downstream functions such as Manufacturing and Field Service, and has to treat these internal customers with the same sensitivity and responsiveness as it would external customers.

            TQM is a way of life for a company. It has to be introduced and led by top management. This is a key point. Attempts to implement TQM often fail because top management doesn't lead and get committed - instead it delegates and pays lip service. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company, and in creating and deploying well defined systems, methods and performance measures for achieving those goals. These systems and methods guide all quality activities and encourage participation by all employees. The development and use of performance indicators is linked, directly or indirectly, to customer requirements and satisfaction, and to management and employee remuneration

            TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making, to detailed execution of work elements on the shop floor. It stems from the belief that mistakes can be avoided and defects can be prevented. It leads to continuously improving results, in all aspects of work, as a result of continuously improving capabilities, people, processes, technology and machine capabilities.

            Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. The five major areas of focus for capability improvement are demand generation, supply generation, technology, operations and people capability.           

            Continuous improvement of all operations and activities is at the heart of TQM. Once it is recognized that customer satisfaction can only be obtained by providing a high-quality product, continuous improvement of the quality of the product is seen as the only way to maintain a high level of customer satisfaction. As well as recognizing the link between product quality and customer satisfaction, TQM also recognizes that product quality is the result of process quality. As a result, there is a focus on continuous improvement of the company's processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality, and to an increase in customer satisfaction. Improvement cycles are encouraged for all the company's activities such as product development, use of EDM/PDM, and the way customer relationships are managed. This implies that all activities include measurement and monitoring of cycle time and responsiveness as a basis for seeking opportunities for improvement.

            Elimination of waste is a major component of the continuous improvement approach. There is also a strong emphasis on prevention rather than detection, and an emphasis on quality at the design stage. The customer-driven approach helps to prevent errors and achieve defect-free production. When problems do occur within the product development process, they are generally discovered and resolved before they can get to the next internal customer.

Fast response

Statistical analysis of engineering and manufacturing facts is an important part of TQM. Facts and analysis provide the basis for planning, review and performance tracking, improvement of operations, and comparison of performance with competitors. The TQM approach is based on the use of objective data, and provides a rational rather than an emotional basis for decision making. The statistical approach to process management in both engineering and manufacturing recognizes that most problems are system-related, and are not caused by particular employees. In practice, data is collected and put in the hands of the people who are in the best position to analyze it and then take the appropriate action to reduce costs and prevent non-conformance. Usually these people are not managers but workers in the process. If the right information is not available, then the analysis, whether it be of shop floor data, or engineering test results, can't take place, errors can't be identified, and so errors can't be corrected.

Employee participation
           

A successful TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. Such participation is reinforced by reward and recognition systems which emphasize the achievement of quality objectives. On-going education and training of all employees supports the drive for quality. Employees are encouraged to take more responsibility, communicate more effectively, act creatively, and innovate. As people behave the way they are measured and remunerated, TQM links remuneration to customer satisfaction metrics.

Product development in a TQM environment
           

Product development in a TQM environment is very different to product development in a non-TQM environment. Without a TQM approach, product development is usually carried on in a conflictual atmosphere where each department acts independently. Short-term results drive behavior so scrap, changes, work-arounds, waste, and rework are normal practice. Management focuses on supervising individuals, and fire-fighting is necessary and rewarded.

Product development in a TQM environment is customer-driven and focused on quality. Teams are process-oriented, and interact with their internal customers to deliver the required results. Management's focus is on controlling the overall process, and rewarding teamwork.

A TQM culture
           

It's not easy to introduce TQM. An open, cooperative culture has to be created by management. Employees have to be made to feel that they are responsible for customer satisfaction. They are not going to feel this if they are excluded from the development of visions, strategies, and plans. It's important they participate in these activities. They are unlikely to behave in a responsible way if they see management behaving irresponsibly - saying one thing and doing the opposite.

A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least permitted, by faulty systems and processes. This means that the root cause of such mistakes can be identified and eliminated, and repetition can be prevented by changing the process.

Implementation Principles and Processes
           

A preliminary step in TQM implementation is to assess the organization's current reality. Relevant preconditions have to do with the organization's history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed.

If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate.

However, a certain level of forces is probably desirable to initiate TQM. People need to feel a need for a change. These forces include departures from tradition, a crisis or galvanizing event, strategic decisions, individual "prime movers," and action vehicles. Departures from tradition are activities, usually at lower levels of the organization, which occur when entrepreneurs move outside the normal ways of operating to solve a problem. A crisis, if it is not too disabling, can also help create a sense of urgency which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or demands from consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. A plan to implement TQM may be such a strategic decision. Such a leader may then become a prime mover, who takes charge in championing the new idea and showing others how it will help them get where they want to go. Finally, action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized.

Many companies have difficulties in implementing TQM. Surveys by consulting firms have found that only 20-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality, productivity, competitiveness or financial return. As a result many people are skeptical about TQM. However, when you look at successful companies you find a much higher percentage of successful TQM implementation.

Some useful messages from results of TQM implementations:

• If you want to be a first-rate company, don't focus on the second-rate companies who can't handle TQM, look at the world-class companies that have adopted it
• The most effective way to spend TQM introduction funds is by training top management, people involved in new product development, and people involved with customers
• It's much easier to introduce EDM/PDM in a company with a TQM culture than in one without TQM. People in companies that have implemented TQM are more likely to have the basic understanding necessary for implementing EDM/PDM. For example, they are more likely to view EDM/PDM as an information and workflow management system supporting the entire product life cycle then as a departmental solution for the management of CAD data

Steps in Managing the Transition
           

Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new system such as TQM:

Ø      Identifying tasks to be done

Ø      Creating necessary management structures

Ø      Developing strategies for building commitment

Ø      Designing mechanisms to communicate the change and

Ø      Assigning resources

            Task identification would include a study of present conditions (assessing current reality, as described above); assessing readiness, such as through a force field analysis; creating a model of the desired state, in this case, implementation of TQM; announcing the change goals to the organization; and assigning responsibilities and resources. This final step would include securing outside consultation and training and assigning someone within the organization to oversee the effort. This should be a responsibility of top management. In fact, the next step, designing transition management structures, is also a responsibility of top management. In fact, Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. An organization wide steering committee to oversee the effort may be appropriate. Developing commitment strategies was discussed above in the sections on resistance and on visionary leadership.

            To communicate the change, mechanisms beyond existing processes will need to be developed. Special all-staff meetings attended by executives, sometimes designed as input or dialog sessions, may be used to kick off the process, and TQM newsletters may be an effective ongoing communication tool to keep employees aware of activities and accomplishments.

            Management of resources for the change effort is important with TQM because outside consultants will almost always be required. Choose consultants based on their prior relevant experience and their commitment to adapting the process to fit unique organizational needs. While consultants will be invaluable with initial training of staff and TQM system design, employees (management and others) should be actively involved in TQM implementation, perhaps after receiving training in change management which they can then pass on to other employees. A collaborative relationship with consultants and clear role definitions and specification of activities must be established.

            In summary, first assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy. Leadership styles and organizational culture must be congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist.

            Remember that this will be a difficult, comprehensive, and long-term process. Leaders will need to maintain their commitment, keep the process visible, provide necessary support, and hold people accountable for results. Use input from stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of course, maximize employee involvement in design of the system.

            Always keep in mind that TQM should be purpose driven. Be clear on the organization's vision for the future and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and improving service to clients and the community.

.TQM and Organizational Change and Development
 

While Total Quality Management has proven to be an effective process for improving organizational functioning, its value can only be assured through a comprehensive and well ­thought ­out implementation process. The purpose of this chapter is to outline key aspects of implementation of large ­scale organizational change which may enable a practitioner to more thoughtfully and successfully implement TQM. First, the context will be set. TQM is, in fact, a large­ scale systems change, and guiding principles and considerations regarding this scale of change will be presented. Without attention to contextual factors, well ­intended changes may not be adequately designed. As another aspect of context, the expectations and perceptions of employees (workers and managers) will be assessed, so that the implementation plan can address them. Specifically, sources of resistance to change and ways of dealing with them will be discussed. This is important to allow a change agent to anticipate resistances and design for them, so that the process does not bog down or stall. Next, a model of implementation will be presented, including a discussion of key principles. Visionary leadership will be offered as an overriding perspective for someone instituting TQM. In recent years the literature on change management and leadership has grown steadily, and applications based on research findings will be more likely to succeed. Use of tested principles will also enable the change agent to avoid reinventing the proverbial wheel. Implementation principles will be followed by a review of steps in managing the transition to the new system and ways of helping institutionalize the process as part of the organization's culture. This section, too, will be informed by current writing in transition management and institutionalization of change. Finally, some miscellaneous do's and don't's will be offered.

Members of any organization have stories to tell of the introduction of new programs, techniques, systems, or even, in current terminology, paradigms. Usually the employee, who can be anywhere from the line worker to the executive level, describes such an incident with a combination of cynicism and disappointment: some manager went to a conference or in some other way got a "great idea" (or did it based on threat or desperation such as an urgent need to cut costs) and came back to work to enthusiastically present it, usually mandating its implementation. The "program" probably raised people's expectations that this time things would improve, that management would listen to their ideas. Such a program usually is introduced with fanfare, plans are made, and things slowly return to normal. The manager blames unresponsive employees, line workers blame executives interested only in looking good, and all complain about the resistant middle managers. Unfortunately, the program itself is usually seen as worthless: "we tried team building (or organization development or quality circles or what have you) and it didn't work; neither will TQM". Planned change processes often work, if conceptualized and implemented properly; but, unfortunately, every organization is different, and the processes are often adopted "off the shelf" ­ "the 'appliance model of organizational change': buy a complete program, like a 'quality circle package,' from a dealer, plug it in, and hope that it runs by itself" (Kantar, 1983, 249). Alternatively, especially in the under funded public and not­ for­ profit sectors, partial applications are tried, and in spite of management and employee commitment do not bear fruit. This chapter will focus on ways of preventing some of these disappointments.

In summary, the purpose here is to review principles of effective planned change implementation and suggest specific TQM applications. Several assumptions are proposed: 1. TQM is a viable and effective planned change method, when properly installed; 2. not all organizations are appropriate or ready for TQM; 3. preconditions (appropriateness, readiness) for successful TQM can sometimes be created; and 4. leadership commitment to a large-scale, long-term, cultural change is necessary. While problems in adapting TQM in government and social service organizations have been identified, TQM can be useful in such organizations if properly modified (Milakovich, 1991; Swiss, 1992).

Institutionalization of TQM

Ledford (cited in Packard & Reid, 1990) has proposed a model including four processes which are forces which determine whether a change will persist through the phases of institutionalization. These processes are concerned with congruence among these variables: the change (TQM) with the organization, the change with other changes initiated at the time, the change with environmental demands, and with the level of slack resources in the organization. TQM needs to be congruent with the organization's current culture, and with other changes occurring in the organization. In this period of diminishing resources, organizations are likely to be trying to cope, by downsizing or other methods. In some organizations there are increasing demands for quality or client service improvements. Many such changes are likely to be driven by environmental demands, and TQM may be more likely to be successful than at times of less environmental pressure. Unfortunately, the fourth element, slack resources, is less likely to be present: under current conditions, extra resources (money and staff time) are less likely to be easily available. The challenge is to find a way to make the initial investment outlay to start a process which will pay off in the long term.

Institutionalization may also be enhanced by overlaying another, but compatible, change model: the learning organization (Senge, 1990). This involves, at both the micro and systems levels, staff always learning how to do better and management learning how to be more responsive to staff and the community. Leaders help staff develop their own visions and align these with the organization's vision of quality.

Some Do's and Don'ts

Following are some miscellaneous do's and don'ts which are based on experiences with TQM in the public sector and the human services. Many are drawn from Cohen and Brand (1993), Hyde (1992), and Chaudron (1992).

First, don't "do TQM": a canned approach is likely to be met with skepticism and ultimately fail because it is not adapted to the uniqueness of a particular organization. TQM is particularly susceptible to this phenomenon, because some adherents adopt almost a religious fervor, (they have been described by one observer as "Deming lemmings" (Reid, 1992). "Deming as demigod" is another way this phenomenon has been described: a statement takes on an added aura when prefaced by "Dr. Deming said..."           (Chaudron, 1993) had said that Don't copy any particular model but use relevant basic principles such as an emphasis on quality, continuous analysis of tasks to improve performance, and work with suppliers to enable the organization to start with high quality supplies. TQM should be seen as a process, not a program. It should be integrated into ongoing agency operations, and the focus should be on how an organization can better accomplish its goals and objectives. At the tactical level, don't overemphasize techniques such as statistical process control and the use of charts. Focus instead on the systems ­ the analysis and improvement of processes ­ not on statistics or individual variations.

Whereas some large­-scale organizational change efforts are often driven by a centralized steering committee or group of executives, in TQM it may be best to not centralize the effort and establish a separate quality management bureaucracy ("qualiticrats", according to Hyde). Don't believe that top management support is necessary at first, as is axiomatic in organization development. While an organization needn't start TQM at the top, successes in particular units or programs should set the stage for diffusion in other directions. Change from below may be appropriate for those at lower levels who want to initiate TQM. It may work best to start TQM with a temporary task force and then hire trainers, expose staff, and hope that managers will be motivated to learn more. People responsible for leading shouldn't devote full time to TQM; they should maintain their regular work as well. Cohen and Brand believe that TQM is best taught by people doing it day to day in their work. Implement it gradually to ensure meaningful culture change, and use frequent feedback to ensure that change isn't just superficial. There is no need for a "grand plan" (a quality council, etc.); just start where the organization is.

Perhaps the most important "do" worth repeating is to involve employees in the decision making process, at whatever stages and levels possible. As a specific aspect of this, advance negotiations and discussions with any unions present should occur. Create "atmosphere of amnesty" (Cohen & Brand, 1993, 202) so workers and managers feel free to share improvement needs. Tell people what the quality standards are so that inspection and review isn't necessary. Emphasize client feedback and both quantitative and qualitative performance tracking. Make sure quality teams have the necessary tools and resources, such as training, facilitation, and time to meet. In large organizations, regional offices in particular will need lots of support in order to keep the process alive and thriving.

Several suggestions may be offered to managers. First, understand the direct service work of your organization. "Management by walking around" is a useful way to stay in touch with direct service workers and their needs. Practice what you preach: use TQM on your own processes. Meet frequently with middle managers regarding their personal efforts to use TQM. Focus on the nature of the work and try to establish in employees' minds excitement about a new way of working. TQM training will be needed for all involved work groups. Also, horizontal and vertical communication training may be useful to get groups communicating with each other. Team building is a core element of the process, to ensure employee involvement and effective problem solving. Build analysis into the culture: "stop and think about how we work," according to Cohen and Brand. Insist on objective measures of results. Look for visible improvement, but not optimization; and try to generate some quick results in terms of time or money saved. Constantly check with employees to assess their comfort with the process. If people are feeling threatened, slow down. Human resources aspects such as team functioning and analysis must be kept in balance. Prevent or watch for schisms between TQM and human resources functions or other parts of the organization.

In summary, first assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy. Leadership styles and organizational culture must be congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist.

Remember that this will be a difficult, comprehensive, and long-­term process. Leaders will need to maintain their commitment, keep the process visible, provide necessary support, and hold people accountable for results. Use input from stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of course, maximize employee involvement in design of the system.

Always keep in mind that TQM should be purpose­ driven. Be clear on the organization's vision for the future and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and improving service to clients and the community.

The TQM Model

THE NEED FOR A MODEL IN TQM

At the century close, the creation of the global market, international orientation of management that sweeps national boundaries, introduction of new technologies, and shift towards customer focused strategies, make the competition stronger than ever. The criteria for success in this global, internationally oriented market have been changing rapidly. In order to expand business, enter new markets, and set realistic, competitive long-term objectives, excellence became an imperative. Management's effort has been directed towards discovering what makes a company excellent.

To achieve excellence, companies must develop a corporate culture of treating people as their most important asset and provide a consistent level of high quality products and services in every market in which they operate. Such an environment has supported the wide acceptance of Total Quality Management (TQM) which emerged recently as a new, challenging, marketable philosophy. It involves three spheres of changes in an organisation -- people, technology and structure.

A Simplified TQM Diagnostic Model

• Identify necessary elements for a successful quality management approach.
• Know how they fit together to successfully accomplish quality goals.
• Display the most options, thus helping make the right quality management choices.

• Learn skills to balance competitive quality strategic planning with daily operational choices.
• Learn skills to maximize human and organizational resources for daily productivity demands.

• Learn how to avoid strategies that lead to the "program-of-the-month" mentality.
• Learn how to keep management commitment for TQM at its highest level.
• Learn how to avoid employee "end-runs" around management during TQM implementation.

BASIC ELEMENTS OF

A SIMPLIFIED TQM MODEL

TRADITIONAL MANAGEMENT APPROACH:

This is the most common. A TQM is overlayed (some say forced) upon the other two systems. This approach represents the 80% failure of TQM's. In this approach TQM never becomes an accepted reality by either organizational or human resource management. It is usually seen as competition, or "something to be tolerated." The TQM system consumes valuable resources needed by the other systems and rejection begins to occur.

INTEGRATED MANAGEMENT APPROACH:

 This is the least common. A TQM is blended and balanced with existing cultural initiatives in both organizational and human resource management systems. This represents the 20% success rate of TQM's. Whether both organizational management and human resource management systems take on a "quality management commitment" or "join a quality management team" is not important. The principles of quality management are attended to as an important third system that blends, integrates, aligns and maximizes the other two systems to beat competition in world class quality performance. This approach can often be divided into two sub-choices, depending upon managerial resources, readiness, acceptance, and competencies.

• Managers committed to successful implementation of total quality management (TQM) must have both an HRD Model and an OD Model that work together.
• In simplified terms, HRD + OD = TQM. Even though a TQM is an entity within itself, it must see its existance as the catalytic blending of the other two systems. It does not consume the other systems, it empowers them to do what they have wanted to do - attain world class customer quality.
• This can be tricky politically, and is the reason for this Simplified TQM Diagnostic Model. You may access simplified HRD and OD models by clicking on the HRD and OD acrostics.

 (Total Quality Management Excellence Model)

• INTRODUCTION: The Need for a Model in TQM
• The Structure of TQMEX
• The Logic of TQMEX

            There is also a need for a systematic approach so that each element of TQMEX can be bonded together smoothly. Oakland [1989] originated the idea of a 3-cornerstone model. The proposed 4-pillar model brings the customer's requirement into the system. This makes the approach to TQM more complete. The additional pillar -- satisfying customers -- is vital because it explicitly addresses customers requirements. Without it TQM would have no objective.

The role of top management in implementation of total quality is crucial and its input on people far-reaching. TQM, therefore, should be understood as management of the system through systems thinking, which means understanding all the elements in the company and putting them to work together towards the common goal. The TQMEX Model advocates an integrated approach in order to support the transition to systems management which is an ongoing process of continuous improvement that begins when the company commits itself to managing by quality. The Model illuminates the elements that form a base to the understanding of TQM philosophy and implementation of the process company-wide.

The Logic of TQMEX

In order to have a systematic approach to TQM, it is necessary to develop a conceptual model. Generally, a model is a sequence of steps arranged logically to serve as a guideline for implementation of a process in order to achieve the ultimate goal. The model should be simple, logical and yet comprehensive enough for TQM implementation. It also has to sustain the changes in business environment of the new era. The Model also reflects teachings of the contemporary quality gurus. The idea was to develop a universally applicable step-by-step guideline by including recognised practices in TQM:

• Japanese 5-S Practice (5-S)
• Business Process Re-engineering (BPR)
• Quality Control Circles (QCCs)
• ISO 9001/2 Quality Management System (ISO)
• Total Productive Maintenance (TPM)

As Osada pointed out, 5-S is the key to total quality environment. Therefore, it should be the first step. BPR is concerned with re-defining and designing your business process in order to meet the needs of your customers effectively. It is more concerned with the business objectives and systems, and should follow as Step 2. QCCs are concerned with encouraging the employees to participate in continuous improvement and guide them through. They improve human resources capability to achieve the business objectives. Therefore, this should be Step 3. ISO 9000 is to develop a quality management system based on the good practices in the previous three steps. TPM is a result of applying 5-S to equipment based on a sound quality management system. In fact ISO 9001 requires procedures for process control and inspection and testing equipment which are part of TPM. Therefore TPM should be implemented in Step 5.

If the above five steps have been implemented successfully, the organisation is already very close towards achieving TQM.

TQMEX is a sequential model which is easy to remember and simple to implement. This is in line with the quality principle of Keep It Short and Simple (KISS), although it is not simple to make a model simple!

Companies starting to implement TQM should follow TQMEX step-by-step. Companies which have already gone through some degree of improvement using some of the steps should review what have not been done and do it as their next step of improvement. In order to maximize your benefits from TQMEX, you have to start early too.

TQM implementation programme leads to a change in organisational culture where people are empowered and are encouraged to use their capabilities. TQM’s strategy requires systematic changes in management practice, including the redesign of work, the redefinition of managerial roles, the redesign of organisational structures, the learning of new skills by employees at all levels, and the reorientation of organisational goals.

By Niraj Goyal and Lalitha Bhatia

Thinking questions came up. "What type of policies do we address?" Medical policies or non-medical? The latter are take longer because of the medical examination of the client required. "Between what stages do we consider turnaround?" Perceptions varied, with each person thinking about the turnaround within their department. The key process stages were mapped:

The work described in this case study was undertaken in a young, rapidly expanding company in the financial services sector with no previous experience with Total Quality Management (TQM). The quality project began with a two-day introductory awareness program covering concepts, cases, implementation strategies and imperatives of TQM. The program was conducted for the senior management team of the company. This program used interactive exercises and real life case studies to explain the concepts of TQM and to interest them in committing resources for a demonstration project. The demonstration project, which used the Seven Steps of Problem Solving (similar to DMAIC), was to show them how TQM concepts worked in practice before they committed resources for a company-wide program.

For Six Sigma practitioners who may not be familiar with TQM, the program has three main components -- Just in Time (JIT), Total Quality Control (TQC) and Total Employee Involvement (TEI). The relationship between the three legs of TQM is: JIT exposes the cause of problems; TQC helps provide a solution to problems. Lastly, since the employees do all improvements; they need to be involved in the process of change. TEI helps elicits this involvement. JIT uses techniques similar to Lean, and TQC uses tools and techniques similar to Six Sigma tools.

Step 1. Define the Problem

 A meeting of the senior management of the company was held. Brainstorming produced a list of more than 20 problems. The list was prioritized using the weighted average table, followed by a structured discussion to arrive at a consensus on the two most important themes -- customer service and sales productivity.

Under the customer service theme, "Reducing the Turnaround Time from an Insurance Proposal to Policy" was selected as the most obvious and urgent problem. The company was young, and therefore had few claims to process so far. The proposal-to-policy process therefore impacted the greatest number of customers.

An appropriate cross functional group was set up to tackle this problem.

 What did the individual group members think the turnaround is currently? As each member began thinking questions came up. "What type of policies do we address?" Medical policies or non-medical? The latter are take longer because of the medical examination of the client required. "Between what stages do we consider turnaround?" Perceptions varied, with each person thinking about the turnaround within their department. The key process stages were mapped:

Several sales branches in different parts of the country sent proposals into the Central Processing Center. After considerable debate it was agreed at first to consider turnaround between entry into the computer system at the Company Sales Branch and dispatch to the customer from the Central Processing Center (CPC). Later the entire cycle could be included. The perception of the length of turnaround by different members of the team was recorded. It averaged:

Non-Medical Policies      17 days
Medical Policies             35 days

Invoking the slogan from the awareness program "In God we trust, the rest of us bring data" the group was asked to collect data and establish reality. Armed with a suitably designed check sheet they set about the task.

 What was the turnaround desired by the customer? Since a customer survey was not available, individual group members were asked to think as customers -- imagine they had just given a completed proposal form to a sales agent. When would they expect the policy in hand? From the customer's point of view they realized that they did not differentiate between medical and non-medical policies. Their perception averaged out six days for the required turnaround.

"Is this the average time or maximum time that you expect?" they were asked. "Maximum," they responded. It was clear therefore that the average must be less than six days. The importance of "variability" had struck home. The concept of sigma was explained and was rapidly internalized. For 99.7 percent delivery within the customer limit the metric was defined.

Customer desire:
Average+3 Sigma turnaround = less than 6 days

Current status:
Non-medical policies (Average 19/Sigma 15) Average+3 sigma= 64 days
Medical (Average 37/Sigma 27) Average+3 sigma= 118 days

Reduce Average+3 sigma of turnaround for:
Non-Medical Policies From 64 to 6 days
Medical Policies From 118 to 6 days

The performance requirement appeared daunting. Therefore the initial target taken in the Mission Sheet (project charter) was to reduce the turnaround by 50 percent -- to 32 and 59 days respectively.

Step 2. Analysis of the Problem

In a session the factors causing large turnaround times from the principles of JIT were explained. These were:Input arrival patterns

• Waiting times in process
  - Batching of work
  - Imbalanced processing line
  - Too many handovers
  - Non-value added activities, etc.
• Processing times
• Scheduling
• Transport times
• Deployment of manpower

Typically it was found that waiting times constitute the bulk of processing turnaround times. Process Mapping (Value Stream Mapping in Lean) was undertaken. The aggregate results are summarized below:

Number of operations 84
Number of handovers 13
In-house processing time (estimated) 126 man-mins.
Range of individual stage time 2 to 13 mins.

Could this be true? Could the turnaround be 126 minutes for internal processing without waiting? The group started to question of the status quo. The change process had begun. To check this estimate it was decided to collect data -- run two policies without waiting and record the time at each stage. The trial results amazed everyone: Policy No. 1 took 100 minutes and Policy No. 2 took 97 minutes. Almost instantly the mindset changed from doubt to desire: "Why can't we process every proposal in this way?"

Step 3. Generating Ideas

In the introductory program of TQM during the JIT session the advantages of flow versus batch processing had been dramatically demonstrated using a simple exercise. Using that background a balanced flow line was designed as follows:

1.      Determine the station with the maximum time cycle which cannot be split up by reallocation -- 8 minutes.

2.      Balance the line to make the time taken at each stage equal 8 minutes as far as possible.

3.      Reduce the stages and handovers -- 13 to 8.

4.      Eliminate non-value added activities -- transport -- make personnel sit next to each other.

5.      Agree processing to be done in batch of one proposal.

Changing the mindset of the employees so they will accept and welcome change is critical to building a self-sustaining culture of improvement. In this case, the line personnel were involved in a Quality Mindset Program so that they understood the reasons for change and the concepts behind them and are keen to experiment with new methods of working. The line was ready for a test run.

Step 4. Testing the Idea

Testing in stages is a critical stage. It allows modification of ideas based upon practical experience and equally importantly ensures acceptance of the new methods gradually by the operating personnel.

Stage 1: Run five proposals flowing through the system and confirm results. The test produced the following results:

Average turnaround time: < 1 day
In-house processing time: 76 mins.

There was jubilation in the team. The productivity had increased by 24 percent. The head of the CPC summarized: "I gave five files for processing, and went for a meeting. Emerging from the meeting about 30 minutes later I was greeted by the dispatch clerk jubilantly reporting, "'Madam, the TQM files are ready for dispatch.'" The mindset was dramatically changed and line personnel were now keen to push the implementation.

Stage 2: It was agreed to run the new system for five days -- and compute the average and sigma of the turnaround to measure the improvement. It was agreed that only in-house processing was covered at this stage and that the test would involve all policies at the CPC but only one branch as a model. This model, once proved, could be replicated at other branches.

The test results showed a significant reduction in turnaround:

1. For all non-medical policies From 64 to 42 days or 34%
2. For policies of the model branch From 64 to 27 days of 60%

The Mission Sheet goal of 50 percent reduction had been bettered for the combined model branch and CPC. Further analysis of the data revealed other measures which could reduce the turnaround further. Overall reduction reached an amazing 75 percent. Turnaround, which had been pegged at 64 days, was now happening at 99.7 percent on-time delivery in 15 days.

Step 5. Implementing the Ideas

Regular operations with the new system was planned to commence. However, two weeks later it was still not implemented. One of the personnel on the line in CPC had been released by his department for the five-day trial to sit on the line but was not released on a regular basis. The departmental head had not attended the TQM awareness program and therefore did not understand why this change was required.

There were two options -- mandate the change or change the mindset to accept the change. Since the latter option produces a robust implementation that will not break down under pressures it was agreed that the group would summarize TQM, the journey and the results obtained in the project so far and also simulate the process with a simple exercise in front of the department head. This session was highly successful and led to the release of the person concerned on a regular basis.

Step 6. Check the Result

The process was run for one month with regular checks. The results obtained were marginally better than the trials conducted in Step 5:

Average 11 days

Sigma 9 days
Average+3 sigma 38 days

Step 7. Standardize Control/Document the Improvement Story

• Essentially the in-house processes in two centers of processing -- the CPC and one sales branch -- had been impacted so far. To make sure that the gains were held, control charts were introduced in both locations. Sample x-bar and sigma-control charts for the CPC are shown below:

• A special "Grind It In" session was conducted for line personnel to ensure that the control chart was updated every day, and any deterioration was dealt with by finding and killing the root causes of the problems.
• Customer reaction: Sales management and sales agents (internal customers) clearly noticed the difference. For instance one sales manager reported that a customer had received a policy within a week of giving a proposal and was so amazed that he said, "If you give such service I will give you the next policy also!"
• Adoption of a similar process at the CPC and the model branch for medical policies has already reduced the average+3 sigma of turnaround time by 70 percent -- from 118 days to 37 days. The corresponding all-India reduction was from 118 days to 71 days -- a 60 percent reduction.
• The project objective of 50 percent in the first stage has been achieved.
• A quality improvement story was compiled by the project Leader for training and motivating all employees.

Future Actions

Non-medical policies: Goal to reduce turnaround from 42 days to about 15 days.

1. Roll out process to branches to achieve 24 days throughout the country.
2. Minimize rework by analyzing, prioritizing and training sales branches to avoid the causes of rework.
3. Working with the bank to improve the turnaround time of banking checks.
4. Considering processing proposals while check clearance is in progress.

Medical policies: Goal to reduce turnaround from 71 days to about 24 days.

1. Roll out process to branches to reduce turnaround from 71 to 37 days.
2. Streamline the process of medical exam of the client from 37 to 24 days.

Conclusion

            TQM encourages participation amongst shop floor workers and managers. There is no single theoretical formalization of total quality, but Deming, Juran and Ishikawa provide the core assumptions, as a "...discipline and philosophy of management which institutionalizes planned and continuous... improvement ... and assumes that quality is the outcome of all activities that take place within an organization; that all functions and all employees have to participate in the improvement process; that organizations need both quality systems and a quality culture."

In summary, first assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy. Leadership styles and organizational culture must be congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist.

Remember that this will be a difficult, comprehensive, and long-­term process. Leaders will need to maintain their commitment, keep the process visible, provide necessary support, and hold people accountable for results. Use input from stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of course, maximize employee involvement in design of the system.

References

Beckhard, R. & Harris, (1987). Organizational Transitions: Managing Complex Change. (2^nd ed.) Reading, MA: Addison­Wesley.

Beckhard, R. & Pritchard, W. (1992). Changing the Essence. San Francisco: Jossey­Bass.

Bennis, W. & Nanus, B. (1985). Leaders. New York: Harper & Row.

Bennis, W. (1989) On Becoming a Leader. Reading, MA: Addison Wesley.

Bennis, W., Benne, K, & Chin, R., Eds. (1985). The Planning of Change. 4^th Ed., New York: Holt, Rinehart, & Winston, 98­105.

Brager, G. & Holloway, S. (1992). "Assessing the Prospects for Organizational Change: The Uses of Force Field Analysis." Administration in Social Work. 16(3/4), 15­28.

Burton Gummer and Philip McCallion (1995). Total Quality Management in the Social Services: Theory and Practice, NewYork, Rockefeller College Press

Chaudron, D. (1992). "How OD can help TQM." OD Practitioner. 24(1), 14­18.

Chaudron, D. (1993, June). Organization Development Does not Equal Total Quality Management. Presentation to the San Diego Organization Development Network.

Cohen, S. & Brand, R. (1993). Total Quality Management in Government. San Francisco: Jossey­Bass, Inc.

Ezell, M., Menefee, D., & Patti, R. (1989). "Managerial Leadership and Service Quality:

Gilbert, G. (1992). Quality Improvement in a Defense Organization. Public Productivity and Management Review, 16(1), 65-75.

Hill Stephen, 1991. "Why Quality Circles failed but Total Quality management might succeed." British journal of industrial relations, 29(4), 541-568.

 Hyde, A. (1992). The Proverbs of Total Quality Management: Recharting the Path to Quality Improvement in the Public Sector. Public Productivity and Management Review, 16(1), 25-37.

Ishikawa, K, 1985.What is Total Quality Control? The Japanese way. Englewood Cliffs, New Jersey, Prentice- Hall.

Weihrich,H & Koontz,H. Management- A global perspective.650-651

Martin, L. (1993). "Total Quality Management in the Public Sector," National Productivity Review, 10, 195-213.

Martin, L. (1993). "Total Quality Management: The New Managerial Wave." Administration in Social Work. 17(2), 1­15.

Milakovich, M. (1991). "Total Quality Management in the Public Sector," National Productivity Review. 10, 195­213.

Nanus, B. (1992). Visionary Leadership. San Francisco: Jossey­Bass.

Osborne, D. & Gaebler, T. (1992). Reinventing Government. Reading, MA: Addison­Wesley.

Packard ,D.S.W.T TQM and Organizational Change and Development  toward a Model of Social Work Administration," Administration in Social Work. 13(3/4), 73­98.

Packard, T. (1989). Participation in decision making, Performance, and job satisfaction in a social work bureaucracy. Administration in Social Work. 13(1), 59­73.

Packard. T. & Reid, R. (1990). "OD in a Fire Department: Lessons in Using Parallel Structures and Institutionalization," Consultation. 9, 167­184.

Pruger, R. & Miller, L. (1991). "Efficiency," Administration in Social Work. 15(1/2), 42.

Rapp, C. & Poertner, J. (1992). Social Administration: A Client­Centered Approach. New York: Longman.

Reid, R. (1992). Personal communication.

Robey, D. (1991). Designing Organizations 3^rd ed., Homewood, IL: Irwin, p. 42.

Senge, P. (1990). The Fifth Discipline. New York: Doubleday Currency

Smith, AK, 1993. Total Quality Management in the Public sector. Quality Progress, June 1993, 45-48.

Sugarman, B. (1988). "The Well­Managed Human Service Organization: Criteria for a Management Audit," Administration in Social Work. 12(2), 17­27.

Swiss, J. (1992). Adapting TQM to Government. Public Administration Review, 52, 356-362.
 

Vroom, V. and Yetton, P. (1973). Leadership and Decision Making. Pittsburgh: University of Pittsburgh Press.

www.johnstark.com