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Student Publications
Author: Khaiser Ali Shah
Title:
Project & Total Quality Management
Area:
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Table of Contents:
INTRODUCTION TO PROJECT & PROJECT MANAGEMENT:
PROJECT MANAGEMENT
PROJECT LIFE CYCLE
PROJECT ORGANIZATION
PROJECT FORM AND PROCESS
PROJECT PLANNING & SCHEDULING
TOTAL QUALITY MANAGEMENT
PHOTOGRAPHY APPROACH
QUALITY CIRCLE
BUSINESS PROCESS REENGINEERING/ KEY BUSINESS PROCESSES
BRAINSTORMING
TQM PRINCIPLES
TQM ELEMENTS
QUALITY CIRCLE (QC):
TOTAL QUALITY MANAGEMENT (TQM)
PRINCIPLES OF TQM
CAUSE & EFFECT DIAGRAMS
ENVIRONMENTAL MANAGEMENT SYSTEM
ISO 14000 CERTIFICATION
BIBLIOGRAPHY
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ATLANTIC INTERNATIONAL UNIVERSITY
Summer 2007 Phase � II
INTRODUCTION TO PROJECT & PROJECT MANAGEMENT:
A project is a temporary endeavor undertaken to provide a unique
product or service." This is the
definition from the 2000 edition of The Guide to the Project
Management Body of Knowledge
(PMBOK�) published by the Project Management Institute (PMI�).
Project Management Institute's Guide to the Project Management
Body of Knowledge for a
definition of project management. It defines project management as
"the application of
knowledge, skills, tools, and techniques to project activities to
meet project requirements." In
the project management triangle we are concerned with the management
of the project's time,
cost, and scope. These concerns lead us to manage the project's
quality, risk,
communications, integration, schedule, performance, stakeholder
needs, desires,
requirements, and expectations.
It is interesting to note that when PMI changed the PMBOK to its
latest version, it changed
this definition from "... meet or exceed project requirements" to
"... meet requirements."
This is a bit of a departure from the approach of giving the
customer a little something extra.
In the past it was considered good practice to give the customer a
little more than was asked
for. The customer was thought to be pleased at getting something for
nothing. Today we
realize that these little extras frequently come with a price. The
little extra software routine
we added may have maintenance problems that the customer will have
to pay for later. This
is not to say that improvements and cost savings should not be
brought up to the customer
and discussed. It does mean, however, that we should not give
customers anything extra
without discussing it with them.
The Project Management Question and Answer Book by Michael W.
Newell and Marina N
PROJECT MANAGEMENT
A project is temporarily organized endeavor to accomplish a
specified non-routine or low
volume task. Although projects are not repetitive, they take
significant amount of time to
complete and are large-scale or complex enough to be recognized and
managed as separate
undertakings. Management of a project differs in several ways from
management of a typical
business.
The type of techniques required to manage the projects depends on
the complexity of the
projects. For small projects, Gantt charts are adequate whereas for
large and complex
projects, the critical path method (CPM) or the program evaluation
and review technique
(PERT) would be more effective.
Project Life Cycle
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Summer 2007 Phase � II
A project passes through a life cycle that may vary with the size
and complexity of the
project. Typically a project will pass through the following phases:
1. The Concept Phase:
During this phase, the organization realizes that a project may be
needed or the organization
is requested to propose a plan to perform a project for some
customer.
2. Initial Planning or Feasibility Phase:
During this phase, the project manager plans the project to a level
of detail, sufficient for
initial scheduling and budgeting.
3. Detailed Planning Phase:
If the project is approved, then detailed scheduling and budgeting
is done in this phase.
4. Organization Phase:
During this phase, a detailed project definition such as the work
breakdown structure (WBS)
is examined. A WBS is a document similar to the bill of material and
divides the total work
into major packages to be accomplished.
Personal and other resources necessary to accomplish the project the
project are then made
available for all or a portion of the projects duration through
temporary assignments from
other parts of the organization or by leasing resources or
subcontracting portions of the
project.
5. Execution Phase:
During this phase the various activities planned are completed as
per the schedule, utilizing
the allotted resources.
6. Termination Phase:
This is the phase, during which project is terminated or disbanded
after completion. The
personnel who were working in the project are assigned back to the
irregular jobs or to other
jobs in the organization or to other projects in this phase.
Project Organization
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ATLANTIC INTERNATIONAL UNIVERSITY
Summer 2007 Phase � II
Project organizations have been developed to ensure both continuity
of the production system
in its day to day activities and the successful completion of
projects. A variety of
organizational structures are used by enterprises to perform project
work. The various
considerations in forming a project organization are:
(a) Proportion of the companys work that is performed by projects.
(b) The scope and duration of the project.
(c) The capabilities of the available personnel.
(d) The preferences of the decision makers.
There are four options available in choosing an appropriate
organization for projects.
(a)Functional Organization:
In functional organizations, functional departments are formed that
specialize in a particular
type of work such as production and sales. These functional
departments often are broken
into smaller units that focus on special areas within the function.
Top management may
divide project into work tasks and assign them to the appropriate
functional units. The project
is then budgeted and managed through the normal management
hierarchy.
(b)Project Coordinator:
A project may be handled through the organization as described
above, except some one is
appointed to coordinate the project. The project is still funded
through the normal
organization and the functional managers retain responsibility and
authority to their portion
of the project work. The project coordinator meets with the
functional managers and provides
focus and impetus for the project and may report its status to the
top management.
(c)Project matrix:
In a matrix organization, a project manager is responsible for
completion of the project and
often assigned a budget. The project manager contracts with the
functional managers for
completion of specified parts of the project. The functional
managers assign work to
employees and coordinate work within their areas. The project
manager co-ordinates project
efforts across the functional units.
d)Project Team:
A particularly significant project that will have a long duration
and require the full time
efforts of a group may be run by a project team, specially
constituted for that purpose.
Personnel are assigned full-time to the project and are physically
located with other team
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ATLANTIC INTERNATIONAL UNIVERSITY
Summer 2007 Phase � II
members. The project has its own management structure and budget as
though it were a
separate division of the company.
Professionals in the industrial or business field would be very well
aware that a Project is
different from a regular production. Organizing and implementing for
a new production set
up or expansion or for new product in short is termed as ,,Project
which may require
expertise and a time frame ranging from a few months to few years
even. The professional in
charge of the entire activity at the employee level is designated
suitably as ,,Project Manager
or General Manager Projects or even Executive Director Projects..
Once the project is
executed and commissioned the production starts and the Project
Manager is made either to
look after the production unit set up or shifted to another project.
PROJECT FORM AND PROCESS
A project consists of unique time-consuming activities performed in
a sequence. Each project
has some definite completion time and the cost associated with all
the activities of the project
till its completion is called project cost. Here there are many
complex tasks, involving a
multi-disciplinary approach. The tasks have a deadline.
Some projects generate a product as an output like a ship or an
aircraft. Here, during the
transformation process, there is immobility of the product, it
remaining in the fixed position.
These are large-scale complex products or services which cannot be
physically moved.
The project is managed by a project team. Project team allocates
resources like men,
materials, machines etc. to different activities. Some materials do
get consumed in the
process, whereas some machines and manpower are capable of being
re-deployed in other
project activities.
The following is an illustrative list of projects.
1. Setting up a nuclear power plant.
2. Construction of civil works like bridges, buildings, roads etc.
3. Computerization of human resources inventory.
4. Building a modern hospital or stadium for sports meets.
5. Implementation of a change due to technological advance in
manufacturing, packaging,
materials handling etc.
6. Competition stimulated projects related to cost reduction,
productivity improvement etc.
7. Management consultancy assignments.
In other words, project form suits inter- disciplinary sets of
activities to be performed under
severe time and cost constraints, which may result in penalties if
there is time and cost
overruns with time wages of labor and jacked-up prices of equipment,
project approach is
finding favor all the more.
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Summer 2007 Phase � II
Characteristics of Project Processes
Projects have a short life-cycle with a definite beginning and a
definite end. During the
progress of the project resources requirements are not uniform. They
may not be more in the
beginning and may be much more during the build-up to leveling of
slowly to the extent of
cut-down towards the end. Resource allocation is one of the major
challenges of project
planning and controlling.
The above description makes it clear that manpower deployment is a
tricky business here.
The deployed manpower from other departments might lack commitments
and also affects
the family life of the persons. The manpower may not be cut out for
the specialized tasks to
be carried out for the project. Temporary manpower looks for
alternative jobs when the
project is nearing completion. Even during the projects life, the
manpower tries to be
prepared for the next activity. All this may result into time
over-run.
The matrix form of organization is suitable when multiple projects
are being handled. Here,
there are functional specialists who hold the resources and allow
the project manager to co-
ordinate these resources through his subordinates. A functional
specialist coordinates with
several project managers. There is therefore co-ordination across
functional departments.
However, the principle of unity of command is violated, and hence
there is a need for a better
rapport between the functional specialist and the project manager in
his line capacity.
Each project consists of a cost of activities having inter-
dependence. Some activities cannot
start till the predecessor activities are completed. The project
delayed results in cost over-run.
Scheduling and controlling of project activities by OR techniques
like PERT/CPM is
therefore vitally important.
PROJECT PLANNING & SCHEDULING
Professionals in the industrial or business field would be very well
aware that a Project is
different from a regular production. Organizing and implementing for
a new production set
up or expansion or for new product in short is termed as ,,Project
which may require
expertise and a time frame ranging from a few months to few years
even. The professional in
charge of the entire activity at the employee level is designated as
,,Project Manager. Once
the project is executed and commissioned the production starts and
the Project Manager is
made either to look after the production unit set up or shifted to
another project.
The Role of a Project Manager
The project managers job is important and challenging. He is
responsible for getting work
performed, but often has no direct, formal authority over most of
the people who perform the
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Summer 2007 Phase � II
work. He must often rely on broader knowledge of the project and
skills at negotiation and
persuasion to influence participants. He may have the assistance of
a staff if the project is
large.
Six basic functions that project management must address are:
1. Manage the projects scope to define the goals and work to be
done, in sufficient detail to
facilitate understanding and correct performance by the
participants.
2. Manage the human resources involved in the project.
3. Manage-communications to see that, the appropriate parties are
informed.
4. Manage-time by planning and meeting a schedule.
5. Manage-quality so that, the projects results are satisfactory.
6. Manage-cost so that, the project is performed at the minimum
practical cost and within
budget if possible.
Problems in Managing a Project
(i)
Managing a project can be a complex and challenging assignment.
(ii)
Since projects are one-of-a-kind endeavors, there may be little in
the way of experience,
normal working relationships or established procedures to guide
participants.
(iii)
A project manager may have to co-ordinate diverse efforts and
activities to achieve the
project goals.
(iv)
Persons from various disciplines and from various parts of the
organization who have
never worked together may be assigned to the project for different
spans of time.
(v)
Sub-contractors who are unfamiliar with the organization may be
brought in to carry out
major portions of the project.
(vi)
The project may involve a large number of inter-related activities
performed by persons
employed by any one of several different sub-contractors.
For the above reasons, it is important that the project leaders have
an effective means of
identifying and communicating the planned activities and the ways in
which they are to be
inter-related. An effective scheduling and monitoring method is
absolutely essential for the
management of a large project. Network scheduling methods such as,
PERT and CPM have
proven to be highly effective and valuable tools during both the
planning and execution
phases of projects.
Project Planning
Project planning includes all activities that result in a course of
action for a project. Planning
begins with setting well defined objectives such as implementing a
new management
information system. Also, planning involves decision making
regarding resources to be
committed, completion, priorities of activities etc.
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Areas of responsibility must be identified and assigned. Time and
resource requirements to
perform the work activities must be forecasted and budgeted.
Planning also involves
establishing project boundaries and identifying controllable and
uncontrollable variables that
must be managed. Also, the performance criteria should be stated
related to the project
objectives and in measures of time, cost and quality
characteristics.
Project Scheduling
Project scheduling establishes times and sequences of the various
phases of the project. In
project scheduling, the project manager considers the various
activities of an overall project
and the tasks that must be accomplished and relates them coherently
to one another over the
projects time horizon.
Techniques for scheduling projects include Gantt charts and network
techniques such as
PERT and CPM. Gantt charts do not reflect the inter-relationship
among resources or the
precedence relationships among project activities. Network
techniques overcome this
shortcoming of Gantt charts by including precedence relationships.
Project evaluation and selection
Four alternative methods of project evaluation and selection are
discussed in this article. The
first is a simple additive method for assessing the worth of a
project called the payback
period. The remaining three methods (internal rate of return, net
present value, and
profitability index) are all discounted cash flow techniques.
The payback period (PBP) of an investment tells us the number of
years required to recover
our initial cash investment. Although this measure provides a rough
guide to the liquidity of a
project, it is a poor gauge of profitability. It falls short as a
measure of profitability because it
(1) ignores cash flows occurring after the expiration of the payback
period, (2) ignores the
time value of money, and (3) makes use of a crude acceptance
criterion, namely, a
subjectively determined cut off point.
The internal rate of return (IRR) for an investment proposal is the
discount rate that equates
the present value of the expected net cash flows with the initial
cash outflow. If a projects
IRR is greater than or equal to a required rate of return, the
project should be accepted.
The net present value (NPV) of an investment proposal is the present
value of the proposals
net cash flows less the proposals initial cash outflow. If a
project,,s NPV is greater than or
equal to zero, the project should be accepted.
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The profitability index (PI), or benefit-cost ratio, of a project is
the ratio of the present value
of future net cash flows to the initial cash outflow. If a projects
PI is greater than or equal to
1.00, the project should be accepted.
When two or more investment proposals are mutually exclusive, so
that we can select only
one, ranking proposals on the basis of the IRR, NPV, and PI methods
may give contradictory
results. If a conflict in rankings occurs, it will be due to one or
a combination of the
following three project differences: (1) scale of investment, (2)
cash-flow pattern, and (3)
project life. In every case, the net present value rankings can be
shown to lead to the correct
project selection. In short, if net present value rankings are used,
projects that are expected to
add the greatest increment in dollars value to the firm will be
chosen.
A potential problem with the internal rate of return method is that
multiple internal rates of
return might occur for non-conventional projects whose cash-flow
streams show multiple
changes in sign. When there are multiple rates of return, an
alternative method of analysis
must be used.
Capital rationing occurs any time there is a budget ceiling, or
constraint, on the amount of
funds that can be invested during a specific period, such as a year.
When capital is rationed
over multiple periods, several alternative (and rather complicated)
methods can be applied to
the capital rationing problem. If capital is to be rationed for only
the current period, selecting
projects by descending order of profitability index generally leads
to a firm value.
It is important to monitor projects continually to help ensure
project success. Therefore,
companies should perform progress reviews followed by post
completion audits.
TOTAL QUALITY MANAGEMENT
Photography approach:
The use of photography technique is like holding up a mirror to your
own workplace to
highlight embarrassing bits you would prefer that others do not see.
Examples:
1. A kitchen of a restaurant is supposed to be kept very clean.
However it is not so in
many cases, therefore a photographic approach maybe very helpful to
keep the
kitchen very neat and clean. A series of photographs of different
sections of the
kitchen can be taken over time which will be helpful to point out in
which ways the
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conditions in the kitchen can be improved. The photographs also help
in idea
generation and planning for improvements. These photographs act as a
solid record of
the improvement that has taken place in the kitchen since the first
photograph was
taken. Thus, cleanliness of the kitchen provides good working
conditions and good
food to the customers.
2. Sportsmen are often made to see the videos of their previous
matches which help
them point of the flaws in their game. Once these flaws are pointed
out, they can be
corrected through proper planning. These videos help in the
improvement of players
performance, thus increasing his efficiency and importance as a team
member.
Quality Circle
Quality Circle is one of the employee participation methods. It
implies the development of
skills, capabilities, confidence and creativity of the people
through cumulative process of
education, training, work experience and participation. It also
implies the creation of
facilitative conditions and environment of work, which creates and
sustains their motivation
and commitment towards work excellence. Quality Circles have emerged
as a mechanism to
develop and utilize the tremendous potential of people for
improvement in product quality
and productivity.
Definition
Quality Circle is a small group of 6 to 12 employees doing similar
work who voluntarily
meet together on a regular basis to identify improvements in their
respective work areas
using proven techniques for analyzing and solving work related
problems coming in the way
of achieving and sustaining excellence leading to mutual upliftment
of employees as well as
the organisation. It is "a way of capturing the creative and
innovative power that lies within
the work force".
Concept
The concept of Quality Circle is primarily based upon recognition of
the value of the worker
as a human being, as someone who willingly activises on his job, his
wisdom, intelligence,
experience, attitude and feelings. It is based upon the human
resource management
considered as one of the key factors in the improvement of product
quality & productivity.
Quality Circle concept has three major attributes:
a. Quality Circle is a form of participation management.
b. Quality Circle is a human resource development technique.
c. Quality Circle is a problem solving technique.
Objective
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The objectives of Quality Circles are multi-faced.
a) Change in Attitude.
From "I dont care" to "I do care" Continuous improvement in quality
of work life through
humanisation of work.
b) Self Development
Bring out ,,Hidden Potential of people
People get to learn additional skills.
c) Development of Team Spirit
Individual Vs Team � "I could not do but we did it"
Eliminate inter departmental conflicts.
d) Improved Organisational Culture
Positive working environment.
Total involvement of people at all levels.
Higher motivational level.
Participate Management process.
Benefits and Limitations of Quality Circles
It took more than two decades for the quality control concept to get
acceptance in India, after its
introduction in Japan. This may be due to the differences in the
industrial context in the two
countries. Japan needed it for its survival in a competitive market.
India had a reasonably protected,
sellers market, with consequent lethargy towards efforts to improve
quality and productivity.
However, with the policy of liberalisation of economy and
privatisation of infrastructure
development, contexts changed. The concept now needs to be looked
upon as a necessity.
BPR/KBP
Business Process Re-engineering, if implemented properly can make
any business successful.
Business Process Re-engineering, like any other process and business
idea has its drawbacks but this
idea is constantly revised and constantly implemented through the
various industries. The only way
to improve Business Process Re-engineering is to learn from other
companies mistakes and to gain
competitive advantage over others. Business Process Re-engineering
can save a company from huge
financial drawbacks, like in the case of Ford where Ford
re-engineered their business and
manufacturing process from just manufacturing cars to manufacturing
quality cars, where the
number one goal is quality. This helped Ford save millions on
recalls and warranty repairs. Ford has
accomplished this goal by incorporating barcodes in every one of
their parts and scanners to scan for
any missing parts in a completed car coming off of the assembly
line. This helped them guarantee a
safe and quality car. They have also implemented Voice-over-IP or
VoIP to reduce the cost of
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having a meeting between the branches. Business Process
Re-engineering is a successful business
process. If implemented in the proper way, it can save businesses
millions and therefore giving the
business a competitive edge without sacrificing quality for price.
One of the main goals of introducing BPR is to get a competitive
edge and that can only be gained
by providing the customers more than what the others in the market
are asking for. If a customer is
looking for products tailored to their needs, for example: a car
customized to the customers taste,
then that car-maker would most probably gain more customers over the
competition due to the
customization option
If a manufacturing company can master the skill of being efficient
then they can automatically be
more customer friendly and effective. Efficiency is not just about
being efficient at the production
floor level but the management level also has to be efficient.
Brainstorming
Brainstorming is a process for developing creative solutions to
problems. It works by focusing on a
problem, and then deliberately coming up with as many solutions as
possible and by pushing the
ideas as far as possible. One of the reasons it is so effective is
that the brainstormers not only come
up with new ideas in a session, but also spark off from associations
with other people's ideas by
developing and refining them.
The steps for brainstorming are:
1. Gather the participants from as wide a range of disciplines with
as broad a range of
experience as possible. This brings many more creative ideas to the
session.
2. Write down a brief description of the problem - the leader should
take control of the session,
initially defining the problem to be solved with any criteria that
must be met, and then
keeping the session on course.
3. Use the description to get everyone's mind clear of what the
problem is and post it where it
can be seen. This helps in keeping the group focused
4. Encourage an enthusiastic, uncritical attitude among
brainstormers and encourage
participation by all members of the team. Encourage them to have
fun!
5. Write down all the solutions that come to mind (even ribald
ones). Do NOT interpret the
idea; however you may rework the wording for clarity's sake.
6. Do NOT evaluate ideas until the session moves to the evaluation
phase. Once the
brainstorming session has been completed, the results of the session
can be analyzed and the
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best solutions can be explored either using further brainstorming or
more conventional
solutions.
7. Do NOT censor any solution, no matter how silly it sounds. The
silly ones will often lead to
creative
ones
-
the
idea
is
to
open
up
as
many
possibilities as possible, and break down preconceptions about the
limits of the problem.
8. The leader should keep the brainstorming on subject, and should
try to steer it towards the
development of some practical solutions.
9. Once all the solutions have been written down, evaluate the list
to determine the best action
to correct the problem.
Brainstorming variations
One approach is to seed the session with a word pulled randomly from
a dictionary. This
word is a starting point in the process of generating ideas.
When the participants say they "can't think of any more ideas" then
give them about 15 more
minutes as the best ideas sometimes come towards the end of long
thought out thought
processes.
Brainstorming can either be carried out by individuals or groups.
When done individually,
brainstorming tends to produce a wider range of ideas than group
brainstorming as
individuals are free to explore ideas in their own time without any
fear of criticism. On the
other hand, groups tend to develop the ideas more effectively due to
the wider range of
diversity.
Keep all the generated ideas visible. As a flip chart page becomes
full, remove it from the
pad and tape it to a wall as that it is visible. This "combined
recollection" is helpful for
creating new ideals.
If the brainstormers have difficulty in coming up with solutions,
you may have to reinstate
the problem.
Selecting a Solution
When you are sure the brainstorming session is over, it is time to
select a solution.
By using a show of hands (or another voting method), allow each
person to vote for as many
ideas on the original list as they want. Note that they only have
one vote per generated ideal.
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Write the vote tallies next to the ideal. You can use a different
color than the ideal to help it
stand out.
Once the voting is completed, delete all items with no votes.
Next, look for logical breaks. For example, if you have several
items with 5 or 6 votes, and
no 3 or 4 and only a couple of 1 and 2, then retain only the 5 and 6
votes. The group can help
to decide the breaking point.
Now, it is time to vote again. Each person gets half number of votes
as there are ideals left.
For example is you narrowed the number of generated ideals down to
20, then each person
gets 10 votes (if it is a odd number, round down). Each person will
keep track of his or her
votes. The scribe should again tally the votes next to the ideal,
only this time use a different
color.
Continue this process of elimination until you get down to about 5
ideals.
Often, you will have a couple of ideas that tie, but having it
diagramed out makes it much
easier to make a decision.
Example:
Godrej Industries embarked on its total quality management (TQM)
journey in April 1995.
Every employee of the company was exposed to the principles of TQM
during a series of
awareness programmes held over a nine-month period. We have extended
the TQM's scope
in the last two years to cover our business partners, suppliers,
carrying and forwarding
agents, distributors, etc.
TQM principles
Customer satisfaction
Plan-do-check-act (PDCA) cycle
Management by 'fact' -- 5Ws (what, why, who, when, and where) + 1H
(how) approach
Respect for people
TQM elements
Total employee involvement (TEI)
Total waste elimination (TWE)
Total quality control (TQC)
Key business process (KBP):
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Cross-functional teams that work on improvement of processes that
have the maximum
impact on achieving the strategic objectives of the business.
Quality circle (QC):
Voluntary teams composed of shop-floor employees solve problems in a
structured manner
in their own work area.
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 improvement in everything we do.
Companies who have implemented TQM include Ford Motor Company,
Phillips
Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.
ISO 9000 is a Quality System Management Standard. TQM is a
philosophy of perpetual
improvement. The ISO Quality Standard sets in place a system to
deploy policy and
verifiable objectives. An ISO implementation is a basis for a Total
Quality Management
implementation. Where there is an ISO system, about 75 percent of
the steps are in place for
TQM. The requirements for TQM can be considered ISO plus. In short,
implementing TQM
is being proactive concerning quality rather than reactive.
TQM is the foundation for activities which include;
Meeting Customer Requirements
Reducing Development Cycle Times
Just In Time/Demand Flow Manufacturing
Improvement Teams
Reducing Product and Service Costs
Improving Administrative Systems Training
The Ten Steps to TQM are as follows:
1. Pursue New Strategic Thinking
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2. Know your Customers
3. Set True Customer Requirements
4. Concentrate on Prevention, Not Correction
5. Reduce Chronic Waste
6. Pursue a Continuous Improvement Strategy
7. Use Structured Methodology for Process Improvement
8. Reduce Variation
9. Use a Balanced Approach
10. Apply to All Functions
Processes must be managed and improved! This involves:
Defining the process
Measuring process performance (metrics)
Reviewing process performance
Identifying process shortcomings
Analyzing process problems
Making a process change
Measuring the effects of the process change
Communicating both ways between supervisor and user
The Principles of TQM are as follows:
1. Quality can and must be managed.
2. Everyone has a customer and is a supplier.
3. Processes, not people are the problem.
4. Every employee is responsible for quality.
5. Problems must be prevented, not just fixed.
6. Quality must be measured.
7. Quality improvements must be continuous.
8. The quality standard is defect free.
9. Goals are based on requirements, not negotiated.
10. Life cycle costs, not front end costs.
11. Management must be involved and lead.
12. Plan and organize for quality improvement.
Basic Principles of
Total Quality Management (TQM)
-by Ron Kurtus (28 May 2001)
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The basic principles for the Total Quality Management (TQM)
philosophy of doing business are to
satisfy the customer, satisfy the supplier, and continuously improve
the business processes.
Questions you may have are:
How do you satisfy the customer?
Why should you satisfy the supplier?
What is continuous improvement?
1) Satisfy the customer
The first and major TQM principle is to satisfy the customer--the
person who pays for the
product or service. Customers want to get their money's worth from a
product or service they
purchase.
Users
If the user of the product is different than the purchaser, then
both the user and customer
must be satisfied, although the person who pays gets priority.
Company philosophy
A company that seeks to satisfy the customer by providing them value
for what they buy and
the quality they expect will get more repeat business, referral
business, and reduced
complaints and service expenses.
Some top companies not only provide quality products, but they also
give extra service to
make their customers feel important and valued.
Internal customers
Within a company, a worker provides a product or service to his or
her supervisors. If the
person has any influence on the wages the worker receives, that
person can be thought of as
an internal customer. A worker should have the mind-set of
satisfying internal customers in
order to keep his or her job and to get a raise or promotion.
Chain of customers
Often in a company, there is a chain of customers, -each improving a
product and passing it
along until it is finally sold to the external customer. Each worker
must not only seek to
satisfy the immediate internal customer, but he or she must look up
the chain to try to satisfy
the ultimate customer.
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2) Satisfy the supplier
A second TQM principle is to satisfy the supplier, which is the
person or organization from
whom you are purchasing goods or services.
External suppliers
A company must look to satisfy their external suppliers by providing
them with clear
instructions and requirements and then paying them fairly and on
time.It is only in the
company's best interest that its suppliers provide it with quality
goods or services, if the
company hopes to provide quality goods or services to its external
customers.
Internal suppliers
A supervisor must try to keep his or her workers happy and
productive by providing good
task instructions, the tools they need to do their job and good
working conditions. The
supervisor must also reward the workers with praise and good pay.
Get better work
The reason to do this is to get more productivity out of the
workers, as well as to keep the
good workers. An effective supervisor with a good team of workers
will certainly satisfy his
or her internal customers.
Empower workers
One area of satisfying the internal suppler is by empowering the
workers. This means to
allow them to make decisions on things that they can control. This
not only takes the burden
off the supervisor, but it also motivates these internal suppliers
to do better work.
3) Continuous improvement
The third principle of TQM is continuous improvement. You can never
be satisfied with the
method used, because there always can be improvements. Certainly,
the competition is
improving, so it is very necessary to strive to keep ahead of the
game.
Working smarter, not harder
Some companies have tried to improve by making employees work
harder. This may be
counter-productive, especially if the process itself is flawed. For
example, trying to increase
worker output on a defective machine may result in more defective
parts. Examining the
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source of problems and delays and then improving them is what is
needed. Often the process
has bottlenecks that are the real cause of the problem. These must
be removed.
Worker suggestions
Workers are often a source of continuous improvements. They can
provide suggestions on
how to improve a process and eliminate waste or unnecessary work.
Quality methods
There are also many quality methods, such as just-in-time
production, variability reduction
etc. that can improve processes and reduce waste.
Cause & Effect Diagrams (Fishbone diagram, as explained by
Ishikawa)
The Cause and Effect diagram (Ishikawa) or the fishbone diagram as
it resembles the
skeleton of the fish, is a tool to detect the root cause of a
problem. It is widely used as it helps
identify the main and associated causes leading to an effect
(symptom) or a problem.
It is one of the seven tools used in quality control -
Cause-and-Effect diagram, check sheet,
control chart, flowchart, histogram, Pareto chart, and scatter
diagram.
The Cause and Effect diagram has been widely accepted because it
Facilitates the study and effect of different root cause of a
problem
Fosters creativity through brainstorming exercises.
Presents a visual image of the problem and potential reasons for it
Cause & Effect Diagrams are also known as Fish Bone Diagrams. The
box and line can be
thought of as the head and spine of the fish.
How to use tool:
Follow these steps to solve a problem with a Cause & Effect diagram:
1. Identify the problem:
Write down the exact problem you face in detail. Where appropriate
identify who is
involved, what the problem is, and when and where it occurs. Write
the problem in a box on
the left hand side of a large sheet of paper. Draw a line across the
paper horizontally from the
box. This gives you space to develop ideas.
2. Work out the major factors involved:
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Next identify the factors that may contribute to the problem. Draw
lines off the spine for each
factor, and label it. These may be people involved with the problem,
systems, equipment,
materials, external forces, etc. Try to draw out as many possible
factors as possible. If you
are trying to solve the problem as part of a group, then this may be
a good time for some
brainstorming! Using the 'Fish bone' analogy, the factors you
find can be though of as the
bones of the fish.
3. Identify possible causes:
For each of the factors you considered in stage ii, brainstorm
possible causes of the problem
that may be related to the factor. Show these as smaller lines
coming off the 'bones' of the
fish. Where a cause is large or complex, then it may be best to
break the it down into sub-
causes. Show these as lines coming off each cause line.
4. Analyze your diagram:
By this stage you should have a diagram showing all the possible
causes of your problem.
Depending on the complexity and importance of the problem, you can
now investigate the
most likely causes further. This may involve setting up
investigations, carrying out surveys,
etc. These will be designed to test whether your assessments are
correct.
Key points:
Cause & Effect diagrams provide a structured way to help you think
through all possible
causes of a problem. This helps you to carry out a thorough analysis
of a situation.
Examples:
[1]
The classical approach (also called the Ishikawa approach) is based
on the principle of 'cause
and effect'. In this technique, every problem is regarded as the
effect and must therefore have
its cause(s). So to solve a problem, the classicist would
exhaustively list down the possible
causes and set about modifying their states hoping that the 'effect'
would disappear.
For instance, if an automobile mechanic is faced with the problem of
a car not starting, he
uses the Ishikawa approach and draws this 'fish-bone' diagram.
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He then uses his own search algorithm and visits each of these
causes till his 'effect'
disappears.
All might seem fine with this approach, but it suffers from three
serious flaws:
�The problem solver must list down his causes exhaustively. If he is
unable to do
so, he may never come close to the solution.
�Searching 'causes' sequentially might involve an in ordinately
large amount of
time
�Modification of causes might at times involve massive expenditures
[2]
Focus on a problem based on priority or criticality. The next step
is to categorise the
problem. For instance, let us consider "High Employee Turnover".
Draw a diagram wherein
this problem is picturised (far right as illustrated in the
diagram).
Nevertheless, this might not be the actual problem. According to
Ishikawa it could only be a
symptom of the actual problem that will be detected in due course.
Alongside the symptom or the problem, draw an arrow. This arrow
serves as the main path
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that branch out to sub causes/problems. Later new categories and
problem will branch out
from the arrow as represented in figure � 2.
The four causes for high employee turnover i.e. management,
locations, market place and
benefits can be determined through brainstorming exercises. Include
as many people as
possible in these brainstorming exercises. This improves the
reliability of the Cause and
Effect Diagram. More the number of people more accurate are the
categorisation of the
causes for a problem.
Once the main causes (management, locations, market place and
benefits) are identified,
conduct brainstorming exercises for each of these causes. The
horizontal lines represent these
sub causes (Figure 3)
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Criticality of the sub causes
By identifying down the main problem and its causes one could simply
draw a Cause and
Effect diagram. However identifying the sub causes and mapping them
to the main causes it
equally critical.
Why sub causes
Sub causes help determine the effect of the problem to a higher
degree of accuracy. They
also help improve the visibility of the reasons for the problem.
Thus, by identifying the sub
causes the management can take clear steps to iron out the problems.
Comprehensive Brainstorming
Brainstorming for the causes or the sub cause must be comprehensive.
Simply put, the larger
the fishbone diagram, the easier it is to picture the root cause of
the problem. This however
demands the entire organisations participation. If coaxing the
entire organisation to
participate is tedious, involve at least those employees who
understand the problem, should
participate.
Keep it simple
The causes, the sub causes and the sub-sub causes must be
quantifiable. Causes beyond the
organisations control like weather conditions or legal hassles
should not be entertained. For a
fishbone diagram to be readable and reliable the causes must be
identifiable.
Dig deeper
Often vague causes might appear while constructing a fishbone
diagram. Then it is
recommended these causes be branched into identifiable causes.
Simply put they must be
broken down into simpler causes. Vague or unclear causes should be
avoided in the fishbone
diagram. They must be subjected to detailed analysis and their
effects studied.
Use majority if case of disagreement
A brainstorming exercise can help determine most causes. However if
there is concern over
narrowing down to causes/sub causes amongst employees, voting could
solve the dilemma.
Those with the highest majority are then put on the fishbone
diagram.
Do not overlook any cause/sub cause
Overlooking a cause/sub cause might create an unreliable fishbone
diagram. Thus conduct
repeated brainstorming sessions to pen all possible sub causes that
lead to a specific cause.
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Related causes
Often causes are relative. Hence create the fishbone diagram with
relative causes as
branching from one another. This improves the visibility of the
cause and its effect. It might
also facilitate a common solution to related causes.
Create actions plans
Once the fish bone diagram is complete, create clear action plans
for solving the cases. Since
few causes are of relative nature, actions plans must focus on
catering to them as well.
Lets have a look at ISO 1400 System:
ISO 14000
In the globalisation world, the environmental issues seem to be one
of the most important
topics. The pollution created in any manner such as air emission,
effluent, land
contamination, etc., have several impacts on people throughout the
world. Upon this
pressure, the International Organization for Standardization has
developed the environmental
management standards which is known as the "ISO 14000
Series". The International
Organisation for Standardisation was founded to promote the
development of international
manufacturing, trade, and communication standards. The Organisation
is composed of
member bodies from more than 110 countries. ISO standards exist for
all industries except
those related to electrical and electronic engineering. All ISO
standards are voluntary.
However, countries and industries often adopt ISO standards as
requirements for doing
business, thereby making them virtually mandatory in these cases.
ISO 14000 is a series of standards for environmental management. The
ISO 14000 standards
are divided into two categories: Organisation standards and Product
and process standards.
Organisation standards include the following:
Environmental Management Systems (EMS) Specification Standard- ISO
14001
EMS Guidelines - ISO 14004
Environmental Auditing - ISO 14010/11/12
Environmental Performance Evaluation - ISO 14031
Product standards include the following:
Environmental Labelling - ISO 14020/21/24/25
Life-Cycle Assessment - ISO 14040/41/42/43
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Environmental Aspects in Product Standards - ISO Guide 64
Terms and Definitions - ISO 14050
There is a great deal of interest on ISO 14001. Asia and Europe have
the greatest number of
companies certified (registered) to this standard. Companies in
North America are also
implementing ISO 14001.
ENVIRONMENTAL MANAGEMENT SYSTEM
The most important part of ISO 14000 is the environmental management
system (EMS). An
EMS allows a company to manage, measure and improve the
environmental aspects of its
operations. It does this by setting specific goals and checking
progress toward meeting those
goals. Continual improvement of the EMS is achieved through system
audits.
ISO 14001 is the EMS standard. ISO 14001 is the only standard
of the ISO 14000 series
through which a company can obtain independent certification. It
consists of the following
five main elements:
1. Environmental policy
Initially, the organizations top management should have commitment
and define the
policy on EMS which is used for the direction of implementing and
improving its
EMS.
2. Planning
In order to achieve environmental policy, at least, the organization
should:
identify the environmental aspects of its activities and specify
those which
have significant impacts on the environment.
identify legal and other requirements to which the organization
involved.
establish objectives and targets of its activities having impacts to
environment.
establish environmental programmes for achieving its objectives and
targets.
3. Implementation
In order to achieve environmental planning, at least, the
organization should:
Define roles, responsibilities and authorities for facilitating EMS
effectively.
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communicate to the staffs at each level for the importance of
conformance to
the environmental policy; provide appropriate training to personnel
performing the tasks to gain their knowledge and competence.
establish and control documentation relating to EMS.
control operations and activities to meet the specified objectives
and targets.
identify potential accidents and emergency situations for preventing
and
mitigating the environmental impacts that may be associated with
them and
periodically test such procedures where practicable.
4. Checking and corrective action
To ensure that the organization is performing in accordance with the
stated EMS
programmes, at least, the organization should:
monitor and measure its operations and activities against the
organizations
plans.
identify non-conformance and take action to mitigate any impact
caused.
record the on-going activities of the EMS.
conduct periodic EMS audits.
5. Management review
The organizations top management should review and continually
improve its EMS,
with the objective of improving its overall environmental
performance.
Implementing these five elements will enable any Organisation to
achieve
comprehensive environmental management.
Implementing an EMS can benefit the organisation in the following
ways:
Managing organizations environment systematically.
Obtaining better surroundings as well as providing protection to the
potential
emergency.
Maintaining good public/community relation.
Reducing environmental cost because of appropriate environmental
management such as resources management, waste management, etc.
Enhancing market share
CERTIFICATION
ISO 14001 (EMS) is the only standard through which a company can
achieve certification.
There are two options currently available:
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1. Self-Declaration. This is the process of declaring that
the company has an
environmental management system (EMS) that meets the standard.
2. Third Party Certification. The company may have an
independent third party audit
their EMS to the ISO 14001 standard. A recognised ISO body can act
as a third party
in this case.
It generally takes about 12 to 18 months for companies to get ISO
14000 certified. The time
depends on the organisations existing EMS, size and internal
resources. Costs vary widely
depending on the size of the facility/business unit being certified.
Approximately 90% of the
costs are for the implementation of the EMS.
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Bibliography:
1. Beckhard, R. & Harris, (1987). Organizational Transitions:
Managing Complex Change. (2nd
ed.) Reading, MA: AddisonWesley.
2. Beckhard, R. & Pritchard, W. (1992). Changing the Essence.
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3. Bennis, W. (1989) On Becoming a Leader. Reading, MA:
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ATLANTIC INTERNATIONAL UNIVERSITY
Summer 2007 Phase � II
15. Milakovich, M. (1991). "Total Quality Management in the Public
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