MANUFACTURING PHILOSOPHIES

CHAPTER 2
TOTAL QUALITY MANAGEMENT (TQM)

Table of Contents
1. QUALITY

2. COTRIBUTIONS OF DIFFERENT QUALITY GURUS

3. TOTAL QUALITY MANAGEMENT

4. PRINCIPLES OF TQM

5. REFERENCES

Authored By-
Isha Bhagat (112010009)
Anish Saraf (112010112)
Saket Choudhary (112010149)

Under the Guidance of:

Dr. Mohan P. Khond

Department of Mechanical Engineering,

COEP Technological University
1. QUALITY
In recent times, competition in almost all sectors has become cut-throat. No company truly
enjoys a pure monopoly, as it was the case in the early times. In this rapidly evolving market
with challenging competition, manufacturers had to make a paradigm shift from “manufacturer-
centric” to “consumer-centric” policy in order to survive. For example, in 1972, Bajaj launched
their infamous scooter “Chetak” and within a few years had complete monopoly over the
market. During the 1990s, with the entry of fuel-efficient powerful motorcycles by Yamaha and
Hero Honda in the Indian market, providing a better alternative to people, heavily affected
sales of Bajaj scooter. Because of the “manufacturer-centric” approach, Bajaj lost ground in
1996 and was forced to phase out its scooters in 2005-2006. Any company or organization
which is able to capture the “needs, wants, desires” of people, as described in the Maslov’s
hierarchy, is called a “consumer-centric” approach. Consumers will only buy a product if their
requirements are fulfilled. Now that we have adopted the consumer-centric policy, let’s think
about what the consumer really wants. Can we delegate the word “Quality” to refer to what
the consumer wants? What exactly is this “Quality”? How can we define it?
Quality is the perception of a person in a particular situation. For example: every
individual’s perception of buying clothes is different, some would be influenced by the
price, some by the fashion and some by the brand.

1.1 QUALITY DEFINITIONS

ISO-8402 1994 standard has provided a comprehensive definition of quality as follows
“The totality of features and characteristics of a product or service that can bear on its
ability to satisfy stated or implied needs” (ISO 9000)
Various other definitions given by quality gurus:
 Quality is fitness for use to the user. (Joseph Juran 1951)
 Quality is conformance to requirements. (Crosby 1979)
 Quality is a system of profound knowledge to improve products and
services. (Deming 1986)
 Quality is what the customer says. (A Feigenbaum)
 Quality is the minimization of loss to society. (Taguchi 1986)
 Quality is Just-in-Time production (Ohno 1988)
 Quality is the capability of product or services to ‘knowingly’ satisfy those
preconceived composite wants of the consumers that are related to the
characteristics of performance or appearance, and do not elicit a major reaction by
people. (Johnson 1987)
Forget defect-free, in world-class manufacturing, quality is a customer-obsessed journey.
It's about exceeding expectations, not just meeting them. Every step, from design to
delivery, is meticulously improved through data-driven decisions and empowered
employees. It's not just making things right, it's making them continuously better, one
satisfied customer at a time. That's the real quality hallmark of a world-class manufacturer.

1.2 CONTRIBUTIONS OF DIFFERENT QUALITY GURUS

Quality gurus have made significant contributions to the field of quality management, which
have revolutionized the way organizations approach quality assurance and improvement.
These gurus have provided frameworks, philosophies, and methodologies that have been
instrumental in shaping modern quality management practices. Here's a detailed
explanation of the contributions of some of the most prominent quality gurus:

2. W. Edwards Deming:
- Deming Cycle (PDCA): Deming introduced the Plan-Do-Check-Act (PDCA) cycle, also
known as the Deming Cycle or Deming Wheel. This iterative four-step management
method is used for continuous improvement of processes and products.
- System of Profound Knowledge (SoPK): Deming proposed a holistic approach to
management, emphasizing the importance of understanding variation, psychology,
systems thinking, and theory of knowledge. This system forms the basis of his
management philosophy.
- 14 Points for Management: Deming outlined 14 principles for transforming
management practices to improve quality and productivity, which include creating
constancy of purpose, adopting the new philosophy, and driving out fear.
- Statistical Process Control (SPC): Deming emphasized the use of statistical methods
for quality control and improvement, promoting the idea that most quality problems are
due to common causes of variation within processes.

3. Joseph M. Juran:
- Juran Trilogy: Juran proposed the concept of the Quality Trilogy, which consists of
Quality Planning, Quality Control, and Quality Improvement. This approach emphasizes
the importance of planning for quality, controlling processes to maintain quality standards,
and continuous improvement.
- Pareto Principle (80/20 Rule): Juran popularized the Pareto Principle, which states that
roughly 80% of effects come from 20% of causes. In quality management, this principle is
used to identify and prioritize the most significant quality issues for improvement.
- Fitness for Use: Juran emphasized the importance of meeting customer needs and
defined quality as "fitness for use." This concept shifted the focus from merely meeting
specifications to delivering products and services that satisfy customer requirements.

4. Philip B. Crosby:
- Zero Defects: Crosby advocated for the philosophy of "zero defects," which asserts that
defects are not acceptable and should be prevented rather than detected and corrected.
He emphasized the importance of building quality into processes from the outset.
- Quality Management Maturity Grid: Crosby introduced the Quality Management
Maturity Grid, a framework for assessing an organization's quality management practices
and identifying areas for improvement. It consists of five levels of maturity, ranging from
uncertainty to optimization.
- Cost of Quality (COQ): Crosby popularized the concept of the Cost of Quality, which
includes the costs of conformance (prevention and appraisal) and the costs of non-
conformance (internal and external failures). Understanding and reducing the cost of
quality is central to Crosby's philosophy.

5. Kaoru Ishikawa:
- Ishikawa Diagram (Cause and Effect Diagram): Ishikawa developed the Cause and
Effect Diagram, also known as the Ishikawa Diagram or Fishbone Diagram. This graphical
tool is used to identify and visualize the potential causes of a problem, facilitating root
cause analysis.
- Quality Circles: Ishikawa promoted the concept of Quality Circles, which are small
groups of employees who meet regularly to identify, analyze, and solve work-related
problems. Quality Circles empower employees and promote a culture of continuous
improvement.
- Total Quality Control (TQC): Ishikawa advocated for Total Quality Control, which
involves the participation of all employees in the quality improvement process. TQC
emphasizes the importance of prevention, teamwork, and continuous training.

6. Genichi Taguchi:
- Taguchi Methods: Taguchi developed statistical methods for quality improvement that
focus on reducing variation and improving robustness. His methods emphasize the
importance of designing products and processes that are insensitive to sources of
variation.
- Quality Loss Function: Taguchi introduced the concept of the Quality Loss Function,
which quantifies the economic loss to society caused by deviation from a target value. This
approach highlights the importance of minimizing variation to reduce quality-related costs.
- Robust Design: Taguchi promoted the idea of robust design, which aims to create
products and processes that perform consistently and effectively under varying conditions.
Robust design seeks to minimize the impact of sources of variation on product
performance.
These contributions have had a profound impact on quality management theory and
practice, helping organizations around the world improve their processes, products, and
services to meet customer expectations and achieve competitive advantage.
1.3 PHASES OF QUALITY REVOLUTION
Before the rise of modern factories, workers themselves used to inspect their products or
masters of the small shop. As factories grew and became more organized, the need for
allocation of a separate department of inspection arose. With the advent of “scientific
management”, the idea of inspection underwent many changes. A breakthrough came with
Taylor’s scientific management theory. It was developed by Frederick Winslow Taylor in
the late 19th and early 20th centuries. It is a management theory focused on optimizing
the efficiency of industrial processes. It aims to increase productivity by scientifically
analyzing and improving workflow. Taylor's principles include:

o Scientific Study of Tasks: Taylor advocated for breaking down tasks into smaller
components and scientifically analyzing each component to determine the most efficient
way to perform it.
o Scientific Selection and Training: He proposed selecting and training workers based
on their abilities to perform specific tasks efficiently, matching the right person to the right
job.
o Standardization of Tools and Procedures: Taylor emphasized the standardization
of tools, equipment, and procedures to streamline operations and reduce variations that
could lead to inefficiencies.
o Division of Labor: Taylor believed in dividing work between managers and workers,
with managers responsible for planning and supervision while workers focused on
executing tasks according to standardized procedures.
o Financial Incentives: Taylor suggested implementing financial incentives to motivate
workers to achieve higher levels of productivity, such as piece-rate pay systems where
workers are compensated based on their output.
o Functional Foremanship: Taylor proposed the concept of functional foremanship,
where specialized supervisors are responsible for different aspects of the production
process, such as planning, training, quality control, etc.
o Time and Motion Studies: Taylor conducted time and motion studies to analyze the
most efficient ways of performing tasks, aiming to eliminate unnecessary movements and
optimize workflow.

After half a century, it was observed that it had a significant impact on industrial
management practices, it also faced criticism for its overly mechanistic view of human
labor and its potential to dehumanize workers. The fissure between workers and
inspectors grew wider resulting in strained and hostile environments between the two
departments. Manufacturing focussed only on producing maximum products without
paying much heed to the quality. Quality inspection control (as it was later known) started
“policing” the workers for poor quality of products leading to continuous friction on the shop
floor. A remedy to this problem can be re-delegating the job of inspection back to the
workers, thereby eliminating the friction and hostility on the shop floor. However, this
solution turned out to be impractical as it required the company to break major cultural
barriers, traditions and the workers were of limited capability (skill and training wise) and
also not ready to accept the new responsibility. Hence, a separate department of Quality
Control became a necessity.

Quality management as a functionary evolved from inspection to Quality Control, to Quality

Assurance and then finally to Total Quality Management (TQM).
1. INSPECTION
All activities such as measuring, examining, testing, grouping one or more
characteristics of a product or service and comparing these with specified requirements to
affirm compliance, fall under the category of inspection.
2. QUALITY CONTROL
The quality control function within an organization is tasked with ensuring that
products or services adhere to established quality standards and specifications. The
objective of QC function at operators' level, foramen level, inspector level and managers
level are to monitor the process and eliminate sources of poor quality. By meticulously
monitoring and evaluating various aspects of the production process, quality control aims
to identify and rectify any deviations or defects promptly, ultimately contributing to
customer satisfaction, organizational reputation, and overall success.

Major changes and developments took place in Quality Control over the last century,
which are described as follows:

 Operators Quality Control

Operators were given responsibility to check the quality of their own
products.
 Foremen Quality Control
Supervisors were appointed to oversee a group of workers and were held
responsible for the quality of their work.
 Inspectors Quality Control
As manufacturing became more complex during WWI, with a large number
of workers reporting to one foreman. As a result, companies with a large number of
inspections per day hired a full time inspector to reduce the burden of supervisors.
 Managers Quality Control
This is an extension of the inspection phase and aims at making the big
inspection companies more efficient. Statistical Quality Control proved to be a game-
changer in the field of QC by providing sampling inspection rather than 100%
inspection. Various statistical techniques such as charts are employed to analyze the
process and improve quality and maintain statistical control.
3. QUALITY ASSURANCE
QA means a well-organized program for all planned, systematic and
sequential activities which are necessary to provide assurance to the management
and customer that the product will satisfy the given requirements to the utmost
possible degree.
4. TOTAL QUALITY MANAGEMENT (TQM)
TQM means meeting the requirements of the internal/external customer
consistently by making continuous improvement in the quality of work of all
employees.

Fig. 1 Evolution of Quality Management

2. Total Quality Management
Total Quality Management (TQM) is an organizational approach that aims to integrate all
functions within an organization to focus on meeting customer needs and achieving
organizational objectives. It sees an organization as a set of interconnected processes
that must be continually improved by leveraging the knowledge and experiences of
workers.

TQM is based on the following definition:

 Total: The concept of "total" implies that TQM encompasses every aspect of
the organization, including marketing, finance, design, engineering, production,
customer service, and more. It emphasizes the need for all functions to work
together towards a common goal.
 Quality: "Quality" refers to the degree of excellence of a product or service
provided by an organization. TQM emphasizes the importance of consistently
delivering high-quality products or services that meet or exceed customer
expectations.
 Management: "Management" involves the art of handling, controlling, and
directing organizational activities. In the context of TQM, management plays a
crucial role in setting the direction for continuous improvement and creating an
environment conducive to attitudinal change.

The overarching goal of TQM is to "do things right, the first time, always." It is a flexible
and adaptable management approach that can be applied to various sectors, including
manufacturing, services (e.g., health and safety), industrial enterprises, and the public
sector.

2.1 TQM follows the PDCA (Plan-Do-Check-Act) cycle, a systematic approach

to quality improvement:
 Planning Phase: In this phase, employees identify and analyze daily challenges and
problems. By conducting proper research and data analysis, lasting solutions can be
formulated.
 Doing Phase: Stakeholders develop plausible solutions and implement strategies to
address the identified challenges. The efficiency and effectiveness of the strategies
are evaluated.
 Checking Phase: A comparative analysis is conducted to evaluate the effectiveness
of the processes and measure the results. This phase provides valuable insights for
process improvement.
 Acting Phase: Employees document the obtained results and address any further
problems or challenges identified during the process.

In conclusion, Total Quality Management (TQM) is a comprehensive approach that aims to

integrate all functions within an organization to meet customer needs and organizational
objectives. By adopting key principles and practices such as evidence-based decision making,
employee empowerment, continuous improvement, and customer focus, organizations can
achieve improved quality, increased customer satisfaction, and overall success.

2.2 PHILOSOPHIES OF TQM

To successfully implement TQM, organizations need to adopt several key
philosophies:

 Evidence-Based Decision Making: TQM emphasizes the use of performance

measures and data-driven decision-making processes. This allows organizations to
track progress, identify areas for improvement, and make informed decisions to
enhance quality.
 Commitment from Management: Management is responsible for driving and
directing TQM initiatives. They should be committed to removing barriers to continuous
improvement and creating an environment that fosters a culture of quality.
 Employee Empowerment: TQM recognizes the value of involving employees in
decision-making processes and empowering them to contribute their knowledge and
experiences. This encourages ownership and accountability for quality improvement
initiatives.
 Continuous Improvement: Improvement is an ongoing process in TQM. It involves
systematically measuring performance, establishing excellence teams, implementing
cross-functional process management, and continuously striving to attain, maintain,
and improve standards.
 Customer Focus: TQM is a customer-driven approach that aims to deliver products
or services that consistently meet or exceed customer expectations. This entails
building strong partnerships with suppliers, fostering a service relationship with internal
customers, setting customer-driven standards, and never compromising on quality.
2.3 ELEMENTS OF TQM

Fig 3: Elements of TQM

TQM is a synergic application of a variety of activities. For the successful implementation of

TQM, an organisation must concentrate on the eight key elements. These eight elements
are based on four groups, according to their function:

• Foundation: Namely of ethics, integrity, and trust.

• Building bricks: It also includes three elements of TQM such as training,

teamwork, and leadership, etc.

• Binding motors: Communication is only one included in this group.

• Roof: It includes recognition only.

Here is an explanation of the eight elements of TQM:

a) Ethics
Ethics is basically the principle of discipline, the discipline of good and evil in any situation.
Multi-faceted issues represent the organisational level and the individual level of ethics.
Organisational ethics is a blanket code of professional ethics applicable to all the employees,
and they are expected to follow it closely in carrying out their work. Individual ethics includes
personal rights or errors.

b) Integrity
TQM has an element of integrity that implies honesty, morals, values, impartiality, respect for
facts, and sincerity. The integrity feature is what clients (internal or external) expect and
deserve to receive. Lack of integrity is perceived as duplicity and it is believed that TQM would
not survive in an environment of duplicity.

c) Trust
After studying ethics and integrity, the role of trust is very important. Trust is a by-product of
integrity and ethical conduct. Without trust, the total quality management framework cannot
be built. Trust ensures complete participation from different members. It allows for
accountability that
encourages the pleasure of ownership and encourages commitment.
d) Training
Training has a strong relationship with the productivity of employees. The better the training,
the more productive workers become. Training employees periodically instils thoroughness in
the implementation of total quality management. The departmental level of implementation of
TQM is undertaken by the supervisors. They also help in making sure their employees
gain better knowledge.

e) Teamwork
In order to use resources effectively, it is necessary to work as a team. Teamwork is a crucial
aspect of TQM, which is essential in making a business successful. Through the use of this
tool, the company will receive faster and more efficient solutions to problems. Teamwork helps
in getting better and more permanent solutions to improve various processes and operations.

f) Leadership
This is perhaps the most important element of total quality management. Without leaders, the
organisation cannot stand up. Leadership is omnipresent in the organisation. A manager is
expected to provide inspirational goals and vision, and at the same time define strategic steps
to move forward in the business, which are comprehensible for all the employees, which are
some of the requirements of leadership in TQM. For TQM to succeed in the business, the
supervisor must commit to directing its employees.

g) Recognition
Recognition should be provided for the suggestions made, as well as for the achievements of
teams and individuals. This gives employees the morale boost to work more efficiently.
Employees want to receive recognition for themselves and their teams. ‘Detecting and
recognising employees are the most important job of a supervisor.’ As people are recognised,
their self-esteem, productivity, quality, and the effort required can change significantly.
Recognition is the most effective when given to employees immediately after their actions.

h) Communication
Communication unites everything. It means connectivity for every person in the organisation.
From the foundation to the roof of the TQM house, everything is joined by the strong mortar
of communication. It acts as a dynamic link between all the elements of TQM. To reinforce
communication, it is important to maintain a strong relationship of ideas between the sender
and the recipient. The success of TQM requires communication among all the stakeholders of
the organisation, including suppliers which are external to the organisation.

2.4 PRINCIPLES OF TQM

I. SEVEN QUALITY TOOLS IN WORLD CLASS MANUFACTURING

In the realm of World Class Manufacturing (WCM), the pursuit of excellence is not just a
goal but a journey paved with tools and methodologies designed to optimize processes
and ensure impeccable quality standards. Among these tools are the "Seven Quality
Tools," a collection of techniques revered for their ability to uncover insights, identify
opportunities for improvement, and propel organizations towards operational greatness.
Let's delve into each of these tools, exploring their essence and significance within the
framework of WCM.

1) Checksheets:
Checksheets are simple yet powerful tools used to systematically collect and organize
data. Whether it's recording the frequency of defects on a production line or tracking
customer complaints, checksheets provide a structured approach to data collection,
enabling teams to identify patterns, trends, and areas of concern. By harnessing the
insights gleaned from checksheets, organizations can make informed decisions, prioritize
improvement efforts, and drive continuous enhancement in quality and efficiency.

Fig 6: Checksheet

2) Scatter Diagrams:
Scatter diagrams offer a visual representation of the relationship between two variables,
helping to discern patterns and correlations that may otherwise go unnoticed. Whether it's
plotting the relationship between machine speed and defect rates or exploring the link
between employee training and productivity, scatter diagrams empower organizations to
make evidence-based decisions and take targeted actions to optimize processes and
outcomes.

Fig 7: Scatter Diagram

3) Histograms:
Histograms are graphical representations of data distribution, providing a clear picture of the
frequency and distribution of values within a dataset. From analyzing the distribution of product
dimensions to assessing the variation in process cycle times, histograms enable organizations
to identify trends, outliers, and areas requiring attention. By leveraging histograms,
organizations can gain deeper insights into process performance, make data-driven decisions,
and drive improvements that enhance overall quality and efficiency.

Fig 8: Histogram

4) Pareto Charts:
Pareto Charts embody the principle of focusing efforts on the vital few rather than the trivial
many. By sorting issues or defects based on their frequency or impact, Pareto Charts highlight
the most significant contributors to quality issues or process inefficiencies. Armed with this
knowledge, organizations can prioritize improvement efforts, allocate resources effectively,
and address root causes to drive meaningful and sustainable change.

Fig 9: Pareto Charts

5)Flow Charts:
Flow charts offer a visual representation of processes, depicting the sequence of steps and
decision points involved in a workflow. Whether it's mapping out the production process or
outlining the steps in a quality control procedure, flow charts provide clarity and transparency,
enabling teams to identify bottlenecks, streamline processes, and eliminate waste. By
leveraging flow charts, organizations can enhance process efficiency, ensure consistency,
and drive continuous improvement across the entire value chain.

Fig 10: Flow Chart

6) Cause and Effect Diagrams:

Cause and Effect Diagrams, also known as fishbone diagrams or Ishikawa diagrams, are
invaluable tools for uncovering the root causes of problems or quality issues. By systematically
categorizing potential causes into key categories such as people, processes, equipment, and
environment, cause and effect diagrams help teams identify underlying factors contributing to
issues and explore interrelationships. Armed with this understanding, organizations can
implement targeted solutions, prevent recurrence, and drive sustainable improvements in
quality and performance.
 Fig 11: Cause and Effect Diagram

7) Control Charts:
Control charts serve as vigilant guardians of process stability and performance, monitoring
variations and deviations from desired standards over time. By plotting data points against
control limits and identifying trends, shifts, or anomalies, control charts empower organizations
to detect potential issues early, take corrective actions promptly, and maintain consistent
quality standards. Through the use of control charts, organizations can foster a culture of
proactive quality management, drive continuous improvement, and uphold their commitment
to excellence.

Fig 12: Control Charts

In the dynamic landscape of World Class Manufacturing, the Seven Quality Tools stand as
indispensable allies, guiding organizations on their quest for operational excellence and
enduring success. By harnessing the power of these tools, organizations can unlock insights,
drive innovation, and elevate quality standards to unprecedented heights, setting the stage for
a future defined by excellence and distinction.
 II. KAIZEN PHILOSOPHY
Let us understand Kaizen philosophy by answering 3 questions:
 What is Kaizen?
 What are the benefits of Kaizen?
 How to implement Kaizen principles?

 What is Kaizen?

Fig. 2 Meaning of “Kaizen”

Kaizen was created in Japan after World War II. It comes from the Japanese words
“Kai” which means “change” and “zen” which means “good”. This does not imply
making major changes. It is all about making little changes on a regular basis:
always improving productivity, safety and effectiveness while reducing waste. This
principle is not limited to specific areas of production and marketing. It involves
every employee – from upper management to the cleaning crew. Everyone’s
suggestions on how improvements can be made are taken into account. This is not
a once a month or year activity. It is continuous. Kaizen involves setting standards
and then continually improving those standards. To meet these high standards,
this philosophy also provides the necessary training, material and supervision that
is needed for employees to achieve the higher standards and maintain their ability
to meet those standards continuously. This philosophy is implemented in Japan
not only in the business arena but also at home, in social activities. Business areas
such as Quality circles, automation, suggestion systems, JIT delivery, Kanban and
5S are all included within the Kaizen system of running a business. It is a broad
umbrella philosophy encompassing all spheres of life where it can be used.

 What are the benefits of Kaizen?

As we know, Kaizen focuses on making small improvements on a continuous basis.
These continuous small improvements add up to make a major change. They yield
improved productivity, quality, better safety, faster delivery, lower costs and great
customer satisfaction. Additionally, employees working in Kaizen-based companies
find work enjoyable and easy, resulting in higher employee morale, job satisfaction
and low rates of turn-over.
Kaizen encourages all stakeholders to participate and make small incremental
changes continually. Through Kaizen, employees identify problems at the source and
fix them at the source.
Following are some concise benefits of Kaizen:
1. Continuous Improvement: Kaizen focuses on ongoing, incremental
improvements rather than major overhauls.
2. Employee Involvement: It encourages employees at all levels to participate
in identifying and implementing improvements, fostering a sense of ownership and
empowerment.
3. Waste Reduction: Kaizen helps identify and eliminate waste, leading to
increased efficiency and cost savings.
4. Quality Enhancement: By addressing root causes of problems, Kaizen
improves product and service quality, enhancing customer satisfaction.
5. Adaptability: It enables organizations to adapt quickly to changes in the
market or business environment through continuous refinement of processes.
6. Problem-Solving Culture: Kaizen fosters a culture of problem-solving and
innovation within the organization.
7. Competitive Advantage: Organizations that consistently apply Kaizen
principles gain a competitive edge by continually improving their operations and
offerings.
8. Sustainability: Kaizen ensures that improvement efforts are sustained over
time, leading to long-term organizational success.

 How to implement Kaizen principles?

Implementing Kaizen principles in a business involves several steps, including
fostering a culture of continuous improvement, empowering employees, and
systematically identifying and addressing inefficiencies. Here's how it can be done,
along with some examples:

1. Establish a Kaizen Culture: Leadership must communicate the importance of

continuous improvement and create an environment where employees feel encouraged to
suggest and implement changes.
o Example: A manufacturing company holds regular team meetings where
employees are encouraged to share ideas for improving production processes.
Managers actively listen to suggestions and provide support for implementing feasible
ideas.
2. Provide Training and Support: Offer training programs on Kaizen principles and
problem-solving techniques to equip employees with the skills needed to identify and
address inefficiencies.
o Example: A retail company conducts workshops on Kaizen methodologies,
teaching employees how to use tools like the "5 Whys" technique to get to the root
cause of problems.
3. Empower Employees: Give employees the authority to make decisions and
implement changes within their areas of responsibility, fostering a sense of ownership and
accountability.
o Example: An IT company empowers its software development teams to make
decisions about their workflow processes. Teams regularly review their processes and
make adjustments to improve efficiency and quality.
4. Encourage Collaboration: Facilitate cross-functional collaboration to tackle
complex problems and ensure that improvements align with overall business goals.
o Example: A healthcare organization forms interdisciplinary teams to address
patient care processes. Doctors, nurses, administrators, and support staff work
together to streamline workflows and enhance patient satisfaction.
5. Implement Continuous Feedback Loops: Establish mechanisms for gathering
feedback from employees and customers to identify areas for improvement and measure
the impact of changes.
o Example: A hospitality company regularly surveys guests to collect feedback
on their experiences. Based on the feedback received, the company implements small
changes such as adjusting service processes or amenities to enhance guest
satisfaction.
6. Visual Management and Standardization: Implement visual management
techniques such as kanban boards and standardized work procedures to improve
transparency and consistency in processes.
o Example: A logistics company uses visual management boards to track the
progress of shipments through different stages of the supply chain. Standardized
procedures ensure consistency and reduce errors in handling shipments.
7. Celebrate Success and Learn from Failures: Recognize and celebrate
achievements resulting from continuous improvement efforts, while also treating failures
as learning opportunities to refine future initiatives.
o Example: A software development company celebrates successful product
launches resulting from continuous improvement efforts. In cases where a new feature
didn't meet expectations, the team conducts a retrospective to identify lessons learned
and adjust their approach for future projects.
By implementing these steps and fostering a culture of continuous improvement,
businesses can effectively apply Kaizen principles to drive sustainable growth and
success.

III. EXPLORING QUALITY CIRCLES: A PATHWAY TO CONTINUOUS

IMPROVEMENT
 Introduction to Quality Circle:
Quality Circle is a dynamic concept born out of the Japanese philosophy of Kaizen,
meaning continuous improvement. It entails small groups of employees voluntarily coming
together to identify, analyze, and resolve work-related issues within an organization.
Originating in Japan in the 1960s, Quality Circles have gained widespread popularity
globally for their ability to harness the collective wisdom and problem-solving skills of
employees to drive organizational excellence.

Fig 5: Quality Circle

 Comparison of Quality Circles in Japan and India:
While Quality Circles share the same underlying principles in Japan and India, there are
notable differences in their implementation and cultural contexts. In Japan, Quality Circles
are deeply ingrained in the organizational culture, with strong support from management
and a focus on employee empowerment and teamwork. In contrast, Quality Circles in India
may face challenges related to hierarchical structures, communication barriers, and limited
management involvement. However, both countries recognize the importance of Quality
Circles in fostering employee engagement, improving quality, and driving continuous
improvement.

 Objectives of Quality Circle:

The primary objectives of Quality Circles are multi-faceted:

 Enhance Productivity: By identifying and addressing inefficiencies and

bottlenecks in processes, Quality Circles aim to boost productivity and efficiency
within the organization.
 Improve Quality: Quality Circles focus on identifying quality issues, root causes,
and implementing solutions to elevate product and service quality standards.
 Foster Employee Engagement: Quality Circles provide a platform for
employees to actively participate in problem-solving and decision-making, thereby
increasing their engagement, job satisfaction, and morale.
 Develop Skills: Through participation in Quality Circles, employees develop
valuable skills such as problem-solving, communication, teamwork, and
leadership, contributing to their personal and professional growth.
 Objections of Quality Circle:
Despite their many benefits, Quality Circles may encounter objections or challenges within
organizations, including:

 Resistance to Change: Some employees or managers may resist the idea of

participatory decision-making or feel threatened by changes to existing processes.
 Lack of Management Support: Without adequate support and commitment from
management, Quality Circles may struggle to gain traction or sustain momentum.
 Communication Barriers: In organizations with hierarchical structures or
cultural barriers, communication challenges may hinder effective collaboration and
problem-solving within Quality Circles.
 Limited Resources: Quality Circles may face constraints in terms of time,
resources, and training, impacting their ability to implement solutions effectively.

 Operation Circle of a Quality Circle:

The operation of a Quality Circle typically involves several key steps:

 Identification of Issues: Quality Circle members identify work-related issues,

quality concerns, or process inefficiencies that require attention.
 Analysis and Solution Development: Members analyze the root causes of
identified issues using problem-solving techniques such as brainstorming, cause
and effect analysis, or Pareto analysis. They then develop innovative solutions to
address these issues.
 Implementation and Evaluation: Solutions are implemented on a trial basis, and
their effectiveness is evaluated through performance metrics, feedback from
stakeholders, or customer satisfaction surveys.
 Continuous Improvement: Quality Circle members continually monitor and
refine implemented solutions, ensuring sustained improvement over time. They
also identify new opportunities for enhancement and initiate new improvement
projects as needed.

In essence, Quality Circles serve as catalysts for continuous improvement within

organizations, leveraging the collective knowledge, creativity, and commitment of
employees to drive positive change and foster a culture of excellence.
IV. BENCHMARKING

1. Understanding Benchmarking: Benchmarking is a strategic process that involves

identifying, understanding, and adopting best practices and processes from leading
organizations worldwide to improve performance. It is a systematic approach aimed
at achieving business and competitive objectives through imitation and adaptation
rather than pure invention. Unlike a panacea or program, benchmarking is a long-term
commitment and improvement tool that focuses on continuous enhancement rather
than quick fixes.

2. Key Principles of Benchmarking:

 Measurement against Industry Standards: Benchmarking allows
organizations to measure themselves against the best industry practices,
providing valuable insights into performance gaps and areas for
improvement.
 Continuous Improvement: By identifying and adopting best practices,
benchmarking facilitates a culture of continuous improvement within
organizations, driving efficiency, quality, and competitiveness.
 Time and Cost Efficiency: Benchmarking saves time and money by
leveraging existing knowledge and practices, rather than starting from
scratch. It emphasizes imitation and adaptation, minimizing the resources
required for innovation.
 External Reality Focus: Benchmarking encourages organizations to
set goals and objectives based on external benchmarks, aligning their
aspirations with industry standards and market realities.

3. The Benchmarking Process:

 Step 1: Decide What to Benchmark: Organizations should align
benchmarking initiatives with their mission, vision, and critical success
factors. They should identify key performance indicators and define the
matrix of measurement.
 Step 2: Understanding Current Performance: Assess current
performance against benchmarks to identify gaps and areas for
improvement.
 Step 3: Planning: Plan the benchmarking process by identifying
suitable partners, defining the types of benchmarking (internal, process,
competitive), and setting project timelines.
 Step 4: Studying Others: Conduct benchmarking studies through focus
group interviews, questionnaires, and site visits to understand best
practices and performance drivers.
 Step 5: Learning from Data: Analyze benchmarking data to identify
performance gaps, understand reasons for differences, and assess
potential improvements through the adoption of best practices.
 Step 6: Continuous Improvement: Benchmarking is an integral part of
Total Quality Management (TQM) philosophy, emphasizing the importance
of continuous assessment and improvement to drive organizational
success.
V. 5S PRINCIPLES

1. Objectives of 5S Theory: The objectives of 5S Theory are multifaceted,

encompassing:
 Enhancing Workplace Efficiency: By eliminating waste, reducing clutter,
and streamlining processes, 5S improves workflow efficiency and
productivity.
 Promoting Safety and Well-being: Through cleanliness, organization,
and standardization, 5S creates a safer work environment, reducing the risk
of accidents and injuries.
 Fostering a Culture of Continuous Improvement: By instilling discipline,
ownership, and a commitment to excellence, 5S cultivates a culture of
continuous improvement and innovation within the organization.
 Enhancing Product Quality: By minimizing defects, contamination, and
errors, 5S enhances product quality, customer satisfaction, and brand
reputation.
 Maximizing Resource Utilization: Through efficient use of space,
materials, and resources, 5S optimizes resource utilization and reduces
costs, contributing to organizational profitability and sustainability.

2. The Essence of 5S Theory: 5S Theory represents a systematic approach to

workplace organization and standardization, originating from Japan and renowned for
its transformative impact on organizational efficiency and effectiveness. The five pillars
of 5S—Sort, Set in Order, Shine, Standardize, and Sustain—work in harmony to
create an environment conducive to productivity, safety, and continuous
improvement.
 Sort (Seiri): Sort involves the systematic removal of unnecessary items
from the workplace, ensuring that only essential tools, materials, and
equipment are retained. This decluttering process not only creates space
but also reduces waste, minimizes distractions, and enhances safety by
eliminating potential hazards. Advantages:
o Streamlines workflow by reducing clutter and unnecessary items.
o Enhances efficiency by ensuring easy access to essential tools and
materials.
o Improves safety by eliminating potential hazards and obstructions in the
workplace.
 Set in Order (Seiton): Set in Order focuses on organizing the workplace
in a logical and efficient manner. It involves assigning designated locations
for tools, materials, and equipment, labeling items clearly, and implementing
visual management techniques such as color coding and signage. By
establishing orderliness, Set in Order enhances productivity, reduces
search time, and promotes a sense of discipline and ownership among
employees. Advantages:
o Reduces search time and minimizes wasted effort.
o Facilitates quick identification of tools and materials, improving
efficiency.
o Enhances workplace safety by ensuring proper storage and handling of
items.
 Shine (Seiso): Shine emphasizes the importance of cleanliness and
maintenance in the workplace. It involves regular cleaning and inspection of
work areas, equipment, and machinery to prevent dirt, debris, and defects
from accumulating. By maintaining cleanliness and orderliness, Shine
promotes a sense of pride, professionalism, and well-being among
employees, while also preventing equipment breakdowns and defects.
Advantages:
o Improves morale and employee satisfaction by creating a clean and
pleasant work environment.
o Reduces the risk of accidents and equipment malfunctions.
o Enhances product quality and customer satisfaction by minimizing
contamination and defects.
 Standardize (Seiketsu): Standardize aims to establish standardized
procedures and practices for maintaining the gains achieved through Sort,
Set in Order, and Shine. It involves documenting best practices, developing
visual standards, and implementing regular audits and inspections to ensure
compliance. By standardizing processes, Standardize fosters consistency,
reliability, and continuous improvement across the organization.
Advantages:
o Ensures consistency and reliability in work processes.
o Facilitates training and onboarding of new employees.
o Provides a basis for continuous improvement and benchmarking.
 Sustain (Shitsuke): Sustain is the cornerstone of 5S, emphasizing the
importance of sustaining the gains achieved through Sort, Set in Order,
Shine, and Standardize over the long term. It involves fostering a culture of
discipline, ownership, and continuous improvement among employees,
 encouraging them to uphold 5S principles proactively. By embedding 5S
into the organizational culture, Sustain ensures lasting improvements in
efficiency, quality, and safety. Advantages:
o Embeds 5S principles into the organizational culture for long-term
sustainability.
o Encourages employee engagement and ownership in maintaining
workplace standards.
o Facilitates ongoing improvement and adaptation to changing needs and
conditions.
3. Conclusion: In conclusion, 5S Theory stands as a cornerstone of organizational
excellence, providing a structured framework for workplace organization,
standardization, and continuous improvement. By embracing the principles of Sort,
Set in Order, Shine, Standardize, and Sustain, organizations can unlock the full
potential of their workforce, optimize processes, and achieve superior performance in
terms of efficiency, quality, and safety. As organizations embark on their journey
towards 5S implementation, they pave the way for a culture of excellence, innovation,
and sustainable growth that sets them apart in today's competitive landscape.
2.5 IMPLEMENTATION STEPS OF TQM
The relevant prerequisites relate to the history of the organisation, its current needs, the events
that led to the management of total quality, and the quality of working life of employees. If the
current reality does not include important preconditions, the implementation of TQM should
be delayed until the organisation is in a favourable state for its success. If an organisation has
a proven track record of environmental awareness and has been able to effectively change
the way it operates when necessary, TQM will be easier to implement. If an organisation has
always been unreceptive and lacks the capacity to improve its operating systems, employees
will be unhappy and qualified change agents will be lacking. If this condition prevails, a
comprehensive management and leadership development programme can be established. A
management audit is a good evaluation tool to identify the current levels of operation of the
organisation and the areas that require changes. An organisation must be funda- mentally
healthy before starting TQM.

Fig 4: Steps to implement TQM

Implementing TQM offers several benefits to organizations:

o Increased Knowledge and Culture of Quality: TQM enhances the organization's
understanding and practice of maintaining quality, leading to improved processes and
outcomes.
o Teamwork and Collaboration: TQM emphasizes the importance of teamwork and
collaboration, fostering a culture where employees work together to achieve continual
improvement.
o Commitment to Continuous Improvement: TQM instills a commitment to continuous
improvement at all levels of the organization, encouraging employees to seek
opportunities for growth and enhancement.
o Customer Satisfaction: By focusing on meeting customer needs and expectations,
TQM strives to provide comprehensive satisfaction to both internal and external
customers.
2.6 ADVANTAGES OF TQM
There are so many advantages to implementing TQM in an organisation. Here we explain
some of the advantages of total quality management (TQM) which include:

1. Cost reduction – If applied consistently over time, total quality manage- ment can
reduce costs throughout the company, especially in the areas of scrapping, recovery and on-
site processing, and reduced warranty costs. Since these cost reductions directly impact net
profits without incurring additional costs, this can result in a surprising increase in profitability.
2. Customer satisfaction – Because the company offers better products and services,
and customer relations are relatively effective, there should be fewer customer complaints.
Fewer complaints can also mean that resources dedicated to customer service can be
reduced. Increased customer satisfac- tion can also lead to a bigger market share, as current
customers will work on behalf of the company to attract more customers.
3. Defect reduction – TQM places great emphasis on improving quality within a
process, rather than integrating quality into a process. The reduction of defects leads to an
improvement in quality. This not only reduces the time required to repair errors, it also reduces
the need for a team of quality control personnel.
4. Morale – These are the fundamental benefits of total quality management. The
continued success of TQM, and, in particular, employee participation in this success, can
significantly improve employee morale, which reduces employee turnover and, consequently,
hiring and training costs for new employees.

2.7 OBSTACLES TO IMPLEMENTING TQM

Organisations have a number of difficulties in implementing TQM. A few common obstacles
are:

a) Lack of Management Commitment

When management talks about TQM, but its actions fail, it will eventually not be able to meet
expectations. The result is distrust and the difficulty of launching another attempt. For the
implementation to be successful, the administration must clearly communicate the reason for
adopting TQM.

b) Inability to Change Organisational Culture

Changing the culture of an organisation is very difficult and takes time. The fear of change
must be addressed, conflicts between the social partners and companies must be resolved,
and the focus of the organisations must no longer be maintained. Without this, no-one will
have confidence in the organisation.

c) Improper Planning
All parts of the organisation must participate in the development of the implementation plan
and the changes as the plan evolves.

d) Lack of Continuous Training and Education

TQM raises the problem of adequate education and training. Training and education are most
effective when senior management leads the training on the principles of TQM.

e) Ineffective Measurement Techniques and Lack of Access to Data and

Results
TQM depends on data-driven decision-making. Access to data and rapid recovery are
necessary for an efficient process. A process to create and maintain a TQM environment must
be accurate, fast, and reliable.
f) Paying Inadequate Attention to Internal and External Customers
TQM does not pay enough attention to internal and external customers. It must understand
the changing needs and expectations of customers. To avoid this obstacle, it is necessary to
find the right way to get directly to the client.

2.8 CASE STUDY: TQM – A CASE STUDY OF SUNDARAM CLAYTON

Sundaram Clayton, based in Chennai, India, has been hailed and internationally recognised
for setting global quality standards. Sundaram Clayton, the world- class flag bearer. A
pneumatic brake systems and foundries manufacturer, it became the first Asian company to
win the Deming Prize for foreign companies. The Deming Prize is the last word in the world of
quality. Japan created this award 40 years ago to pay tribute to W. Edwards Deming, the man
who gave quality to the world.
The Deming Prize defines quality as ‘a system of activities designed to ensure the quality of
products and services, in which the products and services required by customers are produced
and delivered economically.’
Policies, People, Processes, and Products: the four pillars of Sundaram Clayton’s TQM model
integrated Deming’s ten metrics to guarantee full employee participa- tion, policy deployment,
standardisation, kaizen, and training, as well as the promo- tion of employer–employee
relations. All members of the company are turned into quality guardians.
Sundaram Clayton, led by its CEO, Venu Srinivasan, 45, has surpassed the national level in
terms of total quality, to become part of a small group of global elites, who have integrated the
ten parameters of Deming in their flow of practices. This small elite group consists of Florida
Power and Light ($6.51 billion) (Deming Award winner of 1989); AT&T power systems division
($53.26 billion); and the Phillips Taiwan Unit ($8.05 billion).
On November 14, 1998, Venu Srinivasan became one of the 163 executive directors/leaders
to whom the coveted prize has been awarded since its inception. Sundaram Clayton
executives were successively exposed to the best quality prac- tices of world leaders, trained
in modern manufacturing techniques, and learned Total Quality Control (TQC), first from
Yoshio Kondo at a workshop held at the Institute.

The results of the Sundaram Clayton Total Quality Movement are reflected in the company’s
books and its financial indicators over the five years from 1992–1993 to 1997–1998 show
high-level performance of an average of 35% per year, between 1992–1998 and 1996–1997,
although it was reduced by 25% in 1997–1998 due to the slowdown in the auto industry. The
average growth of 83% per year in four years was a brilliant tribute to quality that led cost
management, although it declined by 35% in 1997–1998. Its performance steadily improved
despite the recession, with an increase of 18% in turnover per employee on average per year
and an increase in gross value added by 12% on average.

2.9 CONCUSION
TQM is a general concept that encompasses many good management techniques. TQM is
the management focus of a quality-driven organization that is built on the participation of all
employees and aims for long-term success. This will result in customer satisfaction and
benefits for all employees and the company.

2.10 TQM SUMMARY

• The focus of the management of an organization.
• Quality is the core.
• The participation of each employee is essential.
• It aims for long-term success.
• Its goal is customer satisfaction and benefits for both employees and society.
• A philosophy of management and organizational practices.
  Understood to take advantage of the human and material resources of the
organization.

3. REFERENCES
1. Total Quality Management (TQM) Principles, Methods, and Applications by
Sunil Luthra, Dixit Garg, Ashish Agarwal, and Sachin K. Mangla
2. https://totalqualitymanagement.wordpress.com/2008/09/12/benchmarking/
3. https://www.lean.org/
4. https://mag.toyota.co.uk/kaizen-toyota-production-system/