TQM Vs Traditional Management



Reference Federal Express case”. Enumerate applications of Edward Deming’s, Phil Crocsby’s and Joseph Juran principles of TQM.OREnumerate your learnings?What would you recommend FedEx as the next phase initiative?Solution:Total Quality Management (TQM) is a comprehensive strategy that goes far beyond quality control and quality assurance.The process involves customer driven quality, employee involvement, continuous improvement and decisions based on facts, data and analysis.The success of TQM demands total commitment from the entire organization.TQM Vs Traditional Management Traditional ManagementTotal Quality ManagementThe organizational structure is hierarchical and has rigid lines of authority and responsibility.The organizational structure becomes more flat and more flexible and less hierarchical.The focus is on maintaining the status quo.The focus shifts to continuous improvement in system and process.Workers – superiors relations are characterized by dependence, fear and control.Workers perceive supervisors as coaches and facilitators.Focus of employee effort is on individual.The focus of employee effort shifts to team effort.Management perceives labor and training as cost.Management perceives labor as asset, training as an investment.The primary basis for decision is gut feeling or instinct.The primary basis for decision shifts to facts and systems.Approaches to Implementing TQMDebufferingScientific stylingOrganization transparencyWhole workforce employmentProcess engineeringCognitive competitivenessDeming’s principlesIt is impossible to inspect quality into finished goods, stressing the need to prevent mistakes by using quality control charts all along the production line.Deming advocates constancy of purpose and control of variance to achieve quality and believes in releasing worker power by creating joy, pride and happiness in workDeming says that once you improve quality, your costs go downContinuous reduction in mistakes and continuous improvement in quality means lower and lower costsInvest in training and educationNo numerical quotas and targetsNo slogans14 Principles of ManagementCreate Constancy Of Purpose For The Improvement Of Product And Service.Adopt The New PhilosophyCease Dependence On Mass InspectionEnd The Practice Of Awarding Business On Price Tag AloneImprove Constantly and Forever the System Of Production And ServiceInstitute Training And RetrainingInstitute LeadershipDrive Out FearBreakdown Barriers between Staff AreasEliminate Slogans, Exhortations and Targets for the WorkforceEliminate Numerical QuotasRemove Barriers to Pride of WorkmanshipInstitute a Vigorous Program of Education and RetrainingTake Action to Accomplish the TransformationPHILIP CROSBYThe absolutes of Quality Management: Crosby’s four absolutes are as follows:The definition of Quality is ‘conformance to requirements’ of customers, not merely goodness or luxury or customer satisfaction.The system of quality is through prevention and not inspection.The performance standard is ‘Zero Defects’, and not ‘That’s close enough’.The measurement of cost of quality is the ‘Price of Non Conformance’.Terms used in the four absolutesZero Defects - Absence of any non-conformance in any product of process with respect to requirements and time of checking (inspection / test) for conformance. {Requirements may change over time by way of revision of accepted standards / limits. In this case, zero defects should be interpreted according to revised standards / limits.}Non-conformance - Undesirable non-compliance with respect to a specific product / process, quality characteristics, requirement of committed deliver time, schedule of product, part, activity instruction or any other stipulated requirements.Crosby’s 14-step Quality Improvement ProgramManagement CommitmentQuality Improvement TeamQuality MeasurementCost of Quality EvaluationQuality AwarenessCorrective ActionEstablish an ad-hoc committee for Zero Defects Planning.Supervisors’ trainingZero Defects DayGoal SettingError Cause RemovalRecognitionQuality CouncilsDo it over againJOSEPH JURANJuran defines quality as fitness for use in terms of design, conformance, availability, safety and field use. His concept closely incorporates the point of view of the customer. The term “fitness of use” applies to a variety of users.THE JURAN TRILOGY The ‘Juran Trilogy’ approach explains that there are three managerial processes used in managing quality: namely Quality Planning, Quality Control and Quality Improvement. The interaction of the techniques of all three - not just Quality Control - yields success.Quality Planning:To achieve a process capable of meeting quality goalsIdentify customers (Internal and External)Identify customer needsDevelop features that satisfy customer needsEstablish quality goalsProve process capabilityQuality Control:To achieve conduct of operation according to quality plansChoose units of measurementEstablish how to measureEstablish standards of performanceMeasure actual performanceInterpret differences (Standards Vs. Actuals)Take action on the differenceQuality Improvement:To achieve conduct of operations at levels of quality distinctly superior to planned performance.Prove the need for improvementBuild awareness of opportunities to interfereOrganise for diagnosis - discovery of causesDiagnose Provide remediesProve that remedies are effective.KEY POINTS OF CASE STUDY ON FEDEX EXPRESSThe first time you tolerate anything other than a movement toward 100 percent customer satisfaction, you are on road to mediocrity-----by Fedrick W. Smith, FEDEX chairman n CEO.In 1990, FedEx faced stiff competition from Emery, Us postal service due to slowdown in overnight delivery growth ratesCompany believes that customer satisfaction begins with employee satisfactionIt puts people first in every action, every planning and business decision. Both management and employee are committed to this practice.FEC stands for “For ever changing “nature of company and not FedEx Corporation.Always strive for employment.Has put up P-S-P (People-service-profit) philosophy in place.Set up of stringent standards for self.Adopted Quality Improvement process (QIP) for establishing two important ideas;Correlation between Quality and productivity (Q=P0 by doing things right first timeSet up of uncompromising goal of 100% customer satisfactionIn face of rapid growth in overnight service, FEDEX decided to impart companywide education program on quality.Program focused more on thought processes in quality improvement than in statistical techniquesGoal was to get managers and employees to analyse problems in systematic and uniform waysQuality action teams (QAT were setup to implement framework of ides in modulesQAT’s used problem solving process known as FADE;F- Focus on particular problem or opportunityA – Analyse the dataD – Develop solutions and action plansE – Execute the plans for solutionExtensive training was given to QAT members with tools to augment FADE process e.g. Fish-bone diagrams, flowcharts, pareto analysis, etc.Employees were charged with challenge of conctantly changing their systems to increase their throughput.Culture of smaller improvements was encouraged as 80% problems are system based.Customer Satisfaction MeasurementCustomer complaints were taken seriously. Dubbed as “Hierarchy of Honours”All possibilities where service may go wrong was investigated and complaints were registered against them.Weightages for each mistakes were allotted and customer feedback was sought (SQI). The results were published across all employees .Put up above method to measure the quality in service delivered.In addition, Customey satisfaction surveys were carried out through phone every quarter.On a 5 point scale, only the highest rating was considered as countable thus setting up highest standards voluntarily. Their goal was 100% complete customer satisfaction.Conducted targeted Customer satisfaction studies (direct mail survey of customers who has used FEDEX service)Customer / Supplier alignment (CSA)Concept of Internal customer was a natural extension of FEDEX Q=P philosophyConcept based on that “Good relationships between customer and suppliers increase productivity”.CSA was a quality process for internal service.CSA is applied between inter-departments and also between employees and managers.Guaranteed Fair treatment practices (GFTP)Based on “people first policy”Under this policy, an employee can appeal any eligible issue througha system of systematic reviews by progressively higher levels of management.It’s a 3step process through which employee can reach upper management within 21 working days.It demonstrates that Management is open any change in policies suggested by employee.Survey/Feedback/Action (SFA)Supported both QIP and people first policy,It created system that charged workgroups to examine the effectiveness of Management.The group manager was required to have a feedback meeting to identify the specific concerns or problems.Outcome of meeting was a list of clear, concise actions to be taken to address concerns and lead to improved resultsLeadership evaluation Awareness process (LEAP)Managers can’t give orders. They need to give direction.Potential mangers are made to undergo this training informing them about the challenges associated with leading the people.Technology and InnovationProvides Job secure environment that stimulates risk taking and innovationRisk taking environment leads o learning and new solution s that will satisfy Customers.Powership to CustomersStrengthened ties with its customers by providing a computerized shipping management systemSystem enabled customer to print air bills, download transactions, track packages.Belief of management;Quality is the best way to reduce the costIt reduces cost by eliminating rework, repairs n importantly cost of replacing customers for the lack of quality. ................
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