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    By: Subade, J.J.G.

    Sucaldito, A.B.

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    Objectives:

    1. Specifically, this report aims:

    2. to define total quality management;

    3. to determine the steps of the implementation oftotal quality management;

    4. to discuss the techniques of implementation of

    total quality management;

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    Introduction

    Customer satisfaction is one basis of the quality of service

    and management an institution delivers. Poor feedback on clientservice and service-evaluation may lead to low productivity,

    demand, bad reputation, poor mass utilization and economic

    deflation. Also, non-strategic and poor management may lead to

    considerable profit loss and increased costs expense for the

    organization that are not reflected to as signs of progress and may

    deprive the company of its opportunities for expansion

    In order to prevent these dilemma and compete with the

    racing industrial advancement, TQM was founded, with the sole goal

    of continually uplifting and innovating the institution or

    organizations traditional approach on services and practices, as well

    as its standards and general management, to meet customers

    satisfaction and reach societal demands and expectations.

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    In order to meet this objective, steps on

    effective and efficient implementation of TQMwere derived. These techniques are utilized by

    every entrepreneur, aiming to achieve distinct

    goals on profitability with a foresight ofgreater advancement with its further

    integration to be coupled with striking

    strategic plans all directed to precisely achieve

    perfection and success.

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    Definition

    Total Quality Management (TQM) is an approach

    that seeks to improve quality and performance which will

    meet or exceed customer expectations. This can be achieved

    by integrating all quality-related functions and processes

    throughout the company.

    TQM looks at the overall quality measures used by a

    company including managing quality design and

    development, quality control and maintenance, quality

    improvement, and quality assurance.

    TQM takes into account all quality measures taken

    at all levels and involving all company employees.

    How to Achieve Total Quality Management

    TQM philosophy focuses on team work, increasing costumer

    satisfaction, and lowering costs. Organizations implement TQM by

    encouraging managers and employees to collaborate across functions and

    departments, as well as costumers and suppliers, to identify areas for

    improvement, no matter how small. Each quality improvement is a step

    toward perfection, and meeting a goal of zero defects. Quality control

    becomes part of the day to day business of every employee, rather than

    being assigned to specialized departments.

    The implementation of TQM is similar to other decentralized control

    methods. Feed forward controls include training employees to think in terms

    of prevention, not detection, of problems and giving them the responsibility

    and power to correct errors, expose problems and contribute to solutions.

    Concurrent controls include an organizational culture and employee

    commitment that favor total quality and employee participation. Feedback

    controls include targets for employee involvement and for zero defects

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    TQM Techniques

    The implementation of TQM involves the use many

    techniques, including quality circles, benchmarking, six sigma,reduced cycle time, and continuous improvement.

    Quality of Circles. One way of implementing decentralized

    approach of TQM is the use of quality circles. A quality circle is a

    group of 6-12 volunteer employees who meet regularly to discuss

    and solve problems affecting the quality if their work. At a asset

    time during the work week, the members meet, identify

    problems, and try to find solutions. Circle members are free to

    collect data and take surveys. Many companies train members inteam building, problem solving, and statistical quality control. The

    reason to use quality circles is to push decision-making to an

    organizational level at which recommendations can be made by

    the people who do the job and know t better than anyone else.

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    Benchmarking. Introduced by Xerox in 1979, benchmarking is now a major TQM

    component. Benchmarking is defined the continuous process of measuring products,

    services, and practices against the toughest competitors or companies recognized as

    industry leaders. The key to successful benchmarking lies to analysis. Starting with its

    own mission statement, a company should honestly analyze its current proceduresand determine areas for improvement. As a second step a company carefully selects

    competitors worthy of copying. For example, Xerox studied the order fulfillment

    techniques of L., I. Bean and learned ways to reduce warehouse costs by 10 percent.

    Companies can emulate internal processes and procedures of competitors but must

    take care to select companies whose methods are compatible. Once a strong,

    compatible program is found and analyzed, the benchmarking company can then

    device a strategy for implementing a new program.

    Six Sigma. Six sigma quality principles were first introduced to the business world for

    quality and efficiency gains that saved companies billions of dollars. Based on the

    Greek letter sigma, which statisticians use to measure how fast something deviates

    from perfection, six sigma is a highly ambitious quality standard that specifies gal of

    two or more than 3.4 defects per million parts. That essentially means being defect-

    free 99.9997 percent of the time. However, six sigma as deviated from its precise

    definition to become a generic term for quality-control approach that takes nothing

    for granted and emphasizes a disciplined and relentless pursuit of higher quality and

    lower costs.

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    Six Sigma. Six sigma quality principles were first

    introduced to the business world for quality and

    efficiency gains that saved companies billions of dollars.Based on the Greek letter sigma, which statisticians use

    to measure how fast something deviates from

    perfection, six sigma is a highly ambitious quality

    standard that specifies gal of two or more than 3.4defects per million parts. That essentially means being

    defect-free 99.9997 percent of the time. However, six

    sigma as deviated from its precise definition to become

    a generic term for quality-control approach that takesnothing for granted and emphasizes a disciplined and

    relentless pursuit of higher quality and lower costs.

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    Reduced Cycle Time. According the book Alone is not

    enough; the authors refer to the cycle time as drivers ofimprovement. Cycle time refers to the steps taken to

    complete a company process such as publishing a textbook

    or designing a new car. The simplification of work cycles,

    including the dropping of the barriers between work steps

    and among departments and the removal of worthless steps

    in the process, enables a TQM program to succeed. Even if

    an organization decides not to use quality circles or other

    techniques, by focusing on improved responsiveness and

    acceleration of activities into a shorter time. Reduction incycle time improves overall company performance as well as

    quality.

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    Continuous Improvement. Continuous improvement is an ongoing

    effort to improve products, services or processes. These efforts can seek

    incremental improvement over time or breakthrough improvement

    all at once.Among the most widely used tools for continuous improvement is

    a four-step quality modelthe plan-do-check-act (PDCA) cycle, also

    known as Deming Cycle or Shewhart Cycle:

    Plan: Identify an opportunity and plan for change.

    Do: Implement the change on a small scale.

    Check: Use data to analyze the results of the change and determine

    whether it made a difference.

    Act: If the change was successful, implement it on a wider scale and

    continuously assess your results. If the change did not work, begin the

    cycle again.

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    Implementing a Quality ManagementSystem

    Successful organizations have figured out

    that customer satisfaction has a direct impact

    on the bottom line. Creating an environmentwhich supports a quality culture requires a

    structured, systematic process.

    Following are steps to create that process and

    system to bring the process full circle.

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    Quality Defined:

    According to the American Society for Quality (ASQ),

    quality is a subjective term for which each person has his orher own definition. In technical usage, quality can have two

    meanings: (1) the characteristics of a product or service that

    bear on its ability to satisfy stated or implied needs and (2) a

    product or service free of deficiencies.

    A Quality Management System is the organizational

    structure, processes, procedures and resources needed to

    implement, maintain and continually improve the

    management of quality.

    Steps to Creating a Total Quality Management System:

    1. Clarify Vision, Mission and ValuesDevelop training and communication process to ensure all staff are aware

    of Vision, Mission and Values.

    2. Identify Critical Success Factors (CSF)Some possible CSF:

    Financial Performance

    Customer Satisfaction

    Process Improvement

    Market Share

    3. Develop Measures and Metrics to Track CSF Data

    4. Identify Key Customer GroupsCustomers

    Employees

    Suppliers

    Vendors

    Volunteers

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    5. Solicit FeedbackSolicit feedback from each customer group in an effort to identify what is

    important to them. Organizations often make the mistake of thinking they

    know what is important to customers and ask the wrong survey questions.This feedback is obtained through customer focus groups.

    6. Develop Survey ToolDevelop survey tool based on feedback of what is important to customers.

    7. Survey Each Customer GroupSurvey each customer group to get baseline data on customers

    perception of current practice.

    8. Develop Improvement PlanDevelop improvement plan based on customer feedback for each group.Improvement plan includes SMART goals with assignments to specific

    staff for follow through.

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    9. Goals May Include Some of the Following:

    Process improvement initiatives, such as: Hold times when calling

    Leadership Development: Walk-the-Talk

    Management Training/Development: How to manage employees in a qualityenvironment

    Staff Training/Development: Customer Service

    Performance Management: Setting expectations, creating job

    descriptions that support the vision and holding staff accountable.

    10. ResurveyAfter a period of time (12-18 months), resurvey key customers to see if scores

    have improved. Customer needs and expectations change over time so being

    in-tune to changing needs and expectations is critical to long-term success.

    11. Monitor CSFMonitor CSF monthly to ensure progress toward goals.

    12. Incorporate Satisfaction Data into Marketing PlansOnce youve achieved some positive results with your satisfaction data, use it

    as a marketing tool!

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    Learning Insights:

    In order to attain success and meet the organizations goals, TQM is

    considered to be compulsory method or technique to be integrated and

    utilized effectively. It doesnt only base its efficacy on the savings a company

    may accumulate, but its impact on the society, meeting the needs and

    expectations of the general public, identifying and solving errors, and setting

    preventive measures to promote 100 percent satisfactory rate and

    profitability. This leads to the institutions, great chances of expansion, not

    only giving them larger chances for economic growth but also may benefit

    the community and the nation as a whole, contributing to economic

    advancement and industrial innovation.

    One mustnt have suspicious claims on its effectivity because on-the-

    top industrial leaders have proven TQM as a vital process, method and

    solution to upgrade, innovate and stabilize a certain business concept. But

    you must not depend on its basic integrity. The organization must be capable

    of imposing consistent surveillance to detect areas of defects, because even

    how small an error may be its impact on the management and the company

    as whole, may be to a large extent, and so requires a huge amount of effort

    and cost to compensate with.

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    Thus, the company or organization must be fixed to its goal

    of profitability or advancement and must not go backwards to

    ensure that they are leading to economic growth and not bankruptcy

    or disengagement on economic development and far fromopportunities of expansion and stability.

    Also the organization must be capable of composing and

    deriving a competent and adequate strategic plan to couple with the

    TQM technique to give precise confidence on the efficiency of theimplementation plan.

    Finally, we have realized that business is not all about the

    capital, the employees and the budget. There is a lot bigger range of

    responsibilities and operational duties to fulfill to ensure the stability

    of your company or organization, and that it takes a lot of effort to

    build a name and a reputation in the industry and to take part in

    the hot-raging competition in the market and the society in general.

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