INTRODUCTION TO TQM In real world, company actually compete in term of quality, price and delivery to capture its customers which finally leads to the establishment of Total Quality Management Philoshopy to fulfill one of the element stated. In Malaysia, government had carries various effort to enhance and assist the quality standard by establishment of SIRIM. SIRIM had been responsible to promote ISO 9000 and TQM among Malaysian business industries. DEFINITION OF TQM As defined by OXFORD Dictionary of Accounting, TQM is an approach to managing people and business processes that emphasizes the importance of customer satisfaction.
TQM programs usually entails improved workplace training, a degree of employment empowerment and a redesign of work processes. Meanwhile, in an organisation, TQM is an integrated organisational effort designed to improve quality at every level. TQM which based on customer-defined quality as it is all about meeting the quality expectations as defined by the customer. Since people as vary from one to another, their definition of quality and measurement aspect also vary. Therefore, definition of quality is important one in excercising TQM concept.
DEFINITION OF QUALITY Quality as one of qualitative factor that not easy to be defined. As mentioned above, people might defined quality based on their opinion. Some people stated quality is when their expectation for product or services has been fulfill. Others might said that quality is when the product has less defect as compared to the same range product by different manufacturer. For example, there is a lot of quality factors defined within two group of customers in choosing better future tech mobile phone either iPhine 5 or Samsung S4.
One group might choosing iPhone 5 based on the company’s reputation (Apple Inc. ) while other might go for Samsung S4 due to the globalwide most users and improvement in some technical aspect. Thus, definition of quality as accepted globally was taken from ANSI/ASQ Standard A-3 1987 was: “ quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy implied or stated needs” Despite the divergence of views on what quality is, it may be summed up as “doing things properly” (Dahlagaard et al. 1998) for enhancing competitiveness and profitability within the context of quality culture Some other common definition of quality are: * Conformance to spesifications It measures how well the product or service meets the targets and tolerances determined by its designers. For examples, the fast food restaurant services may be in range of 5 minutes, however if there is slighthly delay for another 5 minutes, it might be acceptable by the customers. * Fitness for use It focused on how well the product performs its intended function or use.
For example, both Acer Aspire Advance and Dell Alienware can be used for documentation, written and other function of computer uses. However, if the definition become more spesific with the assumption of the use of computer is for gaming purposes or playing high graphic motion games, therefore, Dell Alienware is the greater fitness for use. * Value for price paid Refers to the product of service usefulness. It combines the quantitive factor of economics with the quality demand criteria. The cuatomers tend to seek the same service or product offered however at lower price.
This is due to the greater value of price element in customer’s perception. For example, both Sony Xperia Z has sold in the market, however the one that the agent sold is more cheaper while the Sony’s centre is a little bit higher. Customer whom had choose to buy from agent will feel it gives the greater value for the price of money spent. * Support Services It refers to the how the quality of a product or services is judged. Quality itself is judged at holistic level comprising the process involved, organisational environment to the product associated with and the people whom dealing with it.
For example, the good hospital service is not only depends on how good the medicine is, but also on how the service is given, the friendly nurse, condition of the ward and other factors that related to . * Psychological criteria It focused on the judgmental evaluation of what constitutes product or service quality. Different factors contribute to the evaluation such as the atmosphere of the environment or the perceived prestige of the product. For example, the customer may receive average meals on the restaurant, but the friendly waiter may leave the impression of good quality service provided.
We tend to believe the superior cars like Lamborghini and Ferarri based on their reputation of the company has excellence speed features. The Differrences between Manufacturing and Service Organisation Manufacturing In manufacturing sector, the product quality usually will be define by the output or tangible product produce. Those products can be touched, seen and measured directly. this resulted in the quality measurement in manufacturing is based on the product features. For example, food, motor,book and tablet.
The quality in the manufacturing usually refers to its conformance which the degree of the product charachteristic meets preset standard. Others are performance, like the capability of processor in computer to run in short time, reliability, the aspect that the product will function as expected without failure, features, the extras that beyond the basic elements, durability, the expectation on a product life and service ability, how the readily product can be repaired. In conclusion the definitions is based on the preference of each customer. Services In service line, the outcome is intangible.
Therefore, it is hard to measure the quality aspects. However, the outcome can be experienced and this will define the quality by the customer based on their experienced judgment and perception. The quality in service usually refers to customer needs, courtesy and friendliness of staff, rapidity in handlling and solving the complaints, time to wait for service or to be served and consistency, the degree to which the service received is the same at all time. For example, the services received in the customer car centre can be measured by their staff friendliness and short time service provided.
Other example are the government sector had introduced KPI(Key Performance Indicator) to fulfill their quality service standard to be serve to the community as whole. The Six key features of TQM are: I. Organisation wide II. Customer driven III. Empowerment IV. Process perspective V. Supported by quality management system VI. Continuous improvement * In organisation wide feature, the total quality management needs to get into all aspect of business and involve its all employees which is not refer only to the manufacturing only.
A quality management program should includes the entire value chain from the beginning(Research and development), process output until the customer service provided. In application of TQM concept, the relationship with external supplier also into the consideration which the only quality and accredited supplier are engaged to the business. For example, the Proton management, our national cars manufacturer needs to maintain the quality by strictly monitor the product process and provides after sales services to the customer and ensure the spare part from the supplier are on top of quality aspect. Customer driven focused more on the meeting of needs and expectation of the customers and the employees also needs to understand the requirement of the internal customers whom is the next person or group in a process in an organisation. The management should identify and meet the customer needs however the needs is vary from one to another because of taste and preference changes. For example, the various needs and wants in customer towards mobile phone application drives the mobile phone company to compete and produce their product with upgrading features frequently.
Samung had launched 4 different phone with various function during 2012 which are Samsung Galaxy Tab 10. 1 with the wider screen, Samsung Galaxy Note II, with the stylus and creativity features, Samsung S III, the improve processor for the fastest application run and Samsung Hello Kitty Special Edition for feminine users. “If TQM is aimed at anything, it is aimed at winning and keeping customer, keeping them delighted” Berry * Empowerement in TQM always refers to the extension of knowledge for employees in purpose to ensure they can find and fixed the problems by their own.
The employees then will abandon the old concept of hiding the fault and pinpoint other person for the mistake arises. In TQM concept, employees will be the vital element to detect their problem under their own department or area and will be given chance to propose the possible solution and implement the method. In order to achieve the effective solution suggested by employees to fixed the problem, thus the continuous training are given by the management. This element is giving the opportunity to the employees to settle the problem at their own level and making decisions.
As employees is the asset of the company therefore the Employee’s empowerement will become one element of motivation to them to stay in the organisation. For example, the supervisor in chemical factory will make decision upon the leakage of the chemical tank however he needs to attend the safety conduct and procedure to ensure he can save the other factory workers and maintain the factory on the safe level. “At the heart of TQM is the concept of intrinsic motivation. Empowerment involvement in decision making is commonly viewed as essential for assuring sustained results. Healthcare Forum * Defining process perspective in TQM is focuses on the flow of the activity in an organisation rather than functional department only. Quality of sources is the belief that the error should be correct at early stage of production rather than discard it as defect products later on. The management in practising TQM in the company shall be able to detect the error during the production stage and solve it at that level. For example, the defect clothes might reject by the customer or might sell at lower price at bundle shop.
The effective way is the management should do is to ensure the thread use is on good quality, done by neat stitching tailor and the cutting process was done smoothly. * In TQM, the other vital feature is that the system is supported by a quality management system. Even though TQM is based on philosophy than a exact technique, however to ensure the success application, the organisation should provides documented quality procedures and practices to keep the process under control.
The management shall construct their own standard procedure with objective of the quality to be achieve or else follows the standard guidelines that established under ISO 9000 or SIRIM BHD. Nevertheless, the quality standard to be meet might differences regarding to the business and industry. For example, the food industry might set hygiene as a quality standard for the food product but the consumer product such as computers might set the acceleration of processor or the durability of product lifetime as a quality standard. Continuous improvement of all systems and processes in an organization is essential for TQM success. A continuous improvement system gears the organization toward attainment of the vision (Richardson, 1997). The improvement system must not only be continuously applied, but also consistently, throughout the organization. This requires a disciplined continuous improvement system based on trust, with everyone in the organization striving to improve the system (Crosby, 1979).
Kaizen as called in Japanese requires the company continually strive to be better through learning and problem solving. Perfection is impossible in real world thus we must always evaluate our performance and take measures to improve it. CONTINUOUS IMPROVEMENT AND THEIR CONSEQUENCES EXTERNAL IMPROVEMENTS: * Better product quality * Better service quality HIGHER PROFIT Lower costs Bigger market shares More satisfied customers Fewer mistakes/errors CONTINUOS IMPROVEMENT INTERNAL IMPROVEMENTS: Better use of resources * More efficient process In order to obtain quality, some cost need to be bear by the organisation. As dicussed in definition of quality, conformance in which meeting the customer’s needs and spesification, two quality costs had been determined that are: INTERNAL FAILURE COSTS EXTERNAL FAILURE COSTS Whereas, in order to meet the compliance, two compliance cost had been determine that are Prevention cost and Appraisal cost. PREVENTION COST| APPRAISAL COST|
Employee training * Cost of developing and putting on quality training programs for employees and management| Monitoring * Cost of gathering data and monitoring process for product quality| Quality reporting * Cost of acquiring data and maintaining that significant to quality and develop report on quality performance| Inspection and testing * Cost of testing and inspecting materials, parts, products at various stages toward the end| Quality improvement * Cost of designing products with quality characteristic| Testing equipment * Maintaining equipment used in testing quality characteristics of product| Quallity Engineering * Cost expended to make sure productive process conforms quality spesification| | Quality planning * Cost of developing and implementing quality management program| | In quality culture aspect the TQM seep into many business in new millenium. It provides framework for managing costs and all other sources of customer value. It is essential for effective supply chain management by using stategy data and encourage effective communication and it also important in service environment too. New millenium had introduced the Six Sigma concept to improve quality that are: * Improving business processes by identifying and eliminating efects * Tighten the structured approach to managing quality * Involved characteristic of business processes such as Measure, Analyse, Improve and Control * Placing business processes with aim to meet the expectation of what customer wants * Implement unique team based structure with various spesific roles * In some assumption, it might throttle creativity and innovation aspects Two methodologies in Six Sigma are: I. Existing process Identifying customer expectations and analyses process needed for measurement of critical aspect(data collection) and to identify underlying causes of defects by analyzing. II. New product or processes
Identify customer expectation and analyses process needed and to measure characteristic that are critical to quality capabilities and risks(data collection) and to select the best design (analyzing) Quality Accreditation It can be obtained by meeting a series of quality standards that will be set out in the international ISO 9000 series which covers the systems, documentation, process controls and delivery methods. The final result will be issued by approved quality auditors. The differences between Quality Accreditation as compared to the TQM is in term of Philosophy in TQM whereas it is more spesifis by documentation process in Quality Accreditation. Recommendation towards the TQM
Whether the TQM is just a philosophy then extend by the Quality accreditation concept to recognized quality in an organisation, both of them should be implement by an organisation to obtain maximum quality standard. While TQM provides the idea, the quality accreditation approach detailing on what area and standard should be fulfill then will be inspect or evaluate by Quality Accredititation auditor to see whether the achievement of quality standard is to be meet or not. ISO 9000 is the establisment of quality principle also can become the guideline for the organisation. On top of that, implying TQM in an organisation required the cooperative from whole range starting from employees to the top management. After all, TQM is about meeting what customer needs and expectation that will be transform into the meeting the quality as defined by them.