THE CONCEPT OF CONTINUOUS IMPROVEMENT BY TQM

GROUP 5

THE CONCEPT OF CONTINUOUS IMPROVEMENT BY TQM

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

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

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

There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-Yoke).
2. Where mistakes can't be absolutely prevented, detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation).
3. Where mistakes recur, stopping production until the process can be corrected, to prevent the production of more defects. (Stop in time).

The basis for TQM implementation is the establishment of a quality management system which involves the organizational structure, responsibilities, procedures and processes. The most frequently used guidelines for quality management systems are the ISO 9000 international standards, which emphasize the establishment of a well- documented, standardized quality system. The role of the ISO 9000 standards within the TQM circle of continuous improvement is presented in the following figure.

Continuous improvement is a circular process that links the diagnostic, planning, implementation and evaluation phases. Within this circular process, the ISO 9000 standards are commonly applied in the implementation phase. An ISO 9000 quality system also requires the establishment of procedures that standardize the way an organization handles the diagnostic and evaluation phases. However, the ISO 9000 standards do not prescribe particular quality management techniques or quality-control methods. Because it is a generic organizational standard, ISO 9000 does not define quality or provide any specifications of products or processes. ISO 9000 certification only assures that the organization has in place a well-operated quality system that conforms to the ISO 9000 standards. Consequently, an organization may be certified but still manufacture poor-quality products.

IMPLEMENTATION PRINCIPLES AND PROCESSES

A preliminary step in TQM implementation is to assess the organization's current reality. Relevant preconditions have to do with the organization's history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed. If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate.

However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a change. Kanter (1983) addresses this phenomenon as describing building blocks which are present in effective organizational change. These forces include departures from tradition, a crisis or galvanizing event, strategic decisions, individual "prime movers," and action vehicles. Departures from tradition are activities, usually at lower levels of the organization, which occur when entrepreneurs move outside the normal ways of operating to solve a problem. A crisis, if it is not too disabling, can also help create a sense of urgency which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or demands from consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it.

A plan to implement TQM may be such a strategic decision. Such a leader may then become a prime mover, who takes charge in championing the new idea and showing others how it will help them get where they want to go. Finally, action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized.

EVALUATION AND FEEDBACK

The business/project manager must regularly collate and analyze the results of quality control activities and other relevant information about the business/project. This analysis will lead to the prompt identification of general trends or issues and allow the early implementation of corrective action.
Quality control activities will normally identify a number of incidents and it is important to assess whether an incident is:

• An isolated case; or
• Part of a pattern that will result in the problem recurring;

Realistic corrective actions need to be developed by the business/project team to address the issue or problem. If the cost of the corrective action exceeds its benefits, then the business/project manager must identify a more acceptable alternative, which may be to take no action.

If a problem is identified by an external quality assurance function, the external staff should work with the business/project team in a consultative manner to identify appropriate corrective action.

Examples of corrective action that may be considered include:

• Reworking of a deliverable;
• Changing of methods or standards;
• Refinement of the business/project structure, which may include assigning more experienced resources to the business/project team;
• Changes to the business/project plan or the quality assurance framework such as scheduling more regular peer reviews of deliverables.

Effective corrective action depends on good records of quality control activities. Comprehensive records assist the business/project manager to track and identify the source of defects. Records are also necessary to demonstrate that quality assurance mechanisms have been established and are working as planned through effective quality control.

The business/project’s regular reporting must include summaries of the action that has been taken to address quality control incidences. The reports should also demonstrate that the effectiveness of the corrective action has been reviewed to ensure that the problem or defect has been successfully rectified and will not recur.

The steps that need to be taken to implement corrective action include:

• Collecting, collating and integrating the quality control data and statistics;
• Identifying and categorizing the defects and non-conformities to determine if problems are unique (one-time) or recurring;
• Analyzing categorized data to identify trends early;
• Identifying realistic corrective actions and selecting the most cost effective solutions;
• Implementing the solution and measuring the results;
• Maintain good records of quality control activities;
• Follow-up and monitor the effectiveness of the corrective actions.

CONCLUSION

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

TQM prize schemes such as the Malcolm Baldridge Award focus on competitiveness through continuous improvement and customer satisfaction. This is barely addressed in ISO 9000. The intent of the ISO 9000 series is to establish and maintain a basic quality system to assure customers that organizations have the capability to produce and provide quality products and/or services. As such, the principal scope of ISO 9000 is to facilitate and enhance trade (Rheimann, 1993). Quality management is the responsibility of all participants and stakeholders in a business/project. The business/project team and the business must work closely together to ensure that there is an appropriate level of confidence in the quality of deliverables.

The key management roles and their major responsibilities are:

• Senior management, who must fully support the actions that are required to maintain the business/project’s quality and ensure that all stakeholders and participants in the business/project adhere to those actions.
• Business/project sponsor, who is responsible for:

·         ensuring that the required resources are available;

·         ensuring there is active participation in the quality management process by all stakeholders in the business/project;

·         monitoring the effectiveness of the quality assurance framework;

• Business/project manager, who is responsible for:

·         driving and managing all aspects of the business/project’s quality;

·         planning for quality and the development and implementation of the quality assurance framework;

·         continual monitoring of the effectiveness of the quality assurance framework;

·         regular reporting of progress to the business/project sponsor and steering committee;

• Business unit representatives, who must support the implementation of the actions and processes that are adopted for the quality assurance framework.
• Business/project team members, who are responsible for:

·         adhering to the guidelines set out in the quality assurance framework;

·         conducting quality control activities;

Some business/projects may also warrant specialist quality assurance and control resources. These resources may be assigned to the business/project team or may be required to act as an external quality audit function.

CASE STUDY

Diffusion in Kosovo

Quality standards are becoming more and more important for Kosovo.

In 2002 the 1st European Quality Days in Kosova“, took part from 27 to 28 September in Prishtine, Kosova. Although Kosovo stands on the beginning of implementing quality management in daily business it will soon become very crucial as the following press releases say:

Research project: Establishing a sustainable Quality Management System for potato processing in KOSOVO according to international standards

The LUKO SH. A. is a small factory with about 25 employees in northwest of Kosovo, which produces prommes chips out of domestic raw potatoes and is know under the name of «LUKO». The company was founded by the Swiss agency Agentur IDEAS (Independent Development Experts Association) in 2003. Within the scope of a diploma thesis a basic and praxis orientated QMS shall be installed.

Within the first step the laboratory was build up, the quality criteria were defined and the employees were taught. In the second step the quality problems were identifies and analyzed. Furthermore the production process was optimized and new work flow description was implemented. Finally a quality manager was recruited and trained on the job. With the implementation falling into international standards and norms the LUKO SH. A. will belong in future to the most modern companies in Kosova. The opportunity producing pommes chips with constant quality offers new markets and is a big step toward industrial development of Kosova.

 

REFERENCES

1.      http://www.ear.europa.eu/publications/main/pub-press_release_kos_20061207.htm.

2.      TQM Text with Cases 3^rd Edition, John S. Oakland.

3.      Total Quality Management; Theory, Concept and Series. KIM Management Training series.

KISII UNIVERSITY COLLEGE

COURSE CODE: BCOM 472

COURSE TITLE: TOTAL QUALITY MANAGEMENT

GROUP MEMBERS.

1.      SANCHA NEHEMIAH LESHAN                       C12/60326/08

2.      BENSON KANGANGI KAMAU                        C12/60249/08

3.      CAROLYNE TABITHA MUKAI                        C12/60302/08

4.      NAHASHON N. NTHENYA                               C11/60215/08

5.      KIBIA JOHNSON KOINE                                   C11/60197/08

6.      JOYCE NEKAPI KEREMBE                              C12/60330/08

7.      JOAN JEBIWOT KIPTUM                                  C12/60283/08

8.      MARY WANJIRU GICHUKI                              C11/60202/08

9.      HANNAH NJERI MAINA                                   C11/60229/08

10.  FANCY CHELANG’AT KIRUI                          C12/60303/08

SUBMISSION DATE: 22^ND FEBRUARY, 2012.