Brac Business School

Term-paper
On
Case Study: TQM

Submitted to: Submitted by:

Dr. Mamun Habib Ishtiaque Ahmed
Associate Professor Std. ID: 16164035
Faculty of Business Studies OPN605:1
Brac Business School

Date of Submission:
09 August, 2017
Table of Contents
Introduction .................................................................................................................................................. 2
TQM and Continuous Improvement (Kaizen) ........................................................................................... 2
Traditional Approach versus Continuous Improvement .................................................... 2
Quality infused Personnel and Processes ................................................................................................. 3
Integrated TQM Model ............................................................................................................................. 3
TQM implementation ............................................................................................................................... 4
Quality Council .......................................................................................................................................... 4
Quality Circle (QC) - Objectives of Quality Circle ..................................................................................... 4
Literature Review .......................................................................................................................................... 5
CARCOM: THE TQM INITIATIVE ................................................................................................................ 5
The Impact of the TQM Initiative .............................................................................................................. 5
The Strategic Nature of the Human Resource Function ........................................................................... 6
Discussion...................................................................................................................................................... 7
Conclusion ..................................................................................................................................................... 9
References .................................................................................................................................................. 10

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 Introduction
Total Quality Management means that the organization's culture is defined by and supports the
constant attainment of stakeholders satisfaction through an integrated system of tools,
techniques, and training. This involves the continuous improvement of organizational processes,
resulting in high quality products and services.

At its simplest, TQM is all managers leading and facilitating all contributors in everyones two
main objectives:

(1) Stakeholders satisfaction through quality products and services; and

(2) Continuous improvements (Kaizen) to processes, systems, people, suppliers, partners,

products, and services.

TQM and Continuous Improvement (Kaizen)

TQM is the management process used to make continuous improvements to all functions.

TQM represents an ongoing, continuous commitment to improvement.

The foundation of total quality is a management philosophy that supports meeting customer
requirements through continuous improvement.

Traditional Approach versus Continuous Improvement

Market-share focus Customer focus

Individuals Cross-functional teams

Focus on who and why Focus on what and how

Short-term focus Long-term focus

Status quo focus Continuous improvement

Product focus Process improvement focus

Innovation Incremental improvements

Fire fighting Problem solving

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Quality infused Personnel and Processes

Integrated TQM Model

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TQM implementation
Begins with Sr. Managers and CEOs
Timing of the implementation process
Formation of Quality council
Union leaders must be involved with TQM plans implementation
Everyone in the organization needs to be trained in quality awareness and problem solving
Quality council decides QIP (Quality Improvement Program) projects.

Quality Council
The quality council includes CEO and senior managers of the functional areas - research, manufacturing,
finance, sales, marketing etc. and one coordinator and a union representative.

Duties

To develop the Quality statements e.g. - Vision, Mission, Quality policy statements, Core values
etc.
To develop strategic long-term plans and annual quality improvement programme, make a
quality training programme
Monitor the costs of poor quality
Determine the performance measures for the organization
Always find projects that improve the processes and produce customer satisfaction.
Establish work-group teams and measure their progress.
Establish and review the recognition and reward system for the TQM system

Quality Circle (QC) - Objectives of Quality Circle

To develop individual skills
To maintain harmony (synchronization) at workplace
To create problem solving
To improve self-esteem (confidence) of members
To reduce errors on job
To increase productivity
To improve communication flow
To enjoy synergic effect (The interaction of two or more agents or forces so that their
combined effect is greater than the sum of their individual effects).

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 Literature Review

CARCOM: THE TQM INITIATIVE

'Carcom' is a supplier of automotive safety components employing around 700 staff which is
located on two sites in Northern Ireland. The company was originally American owned but after
a joint venture with Japanese partner in the late 1980s, it was eventually bought out by the latter.
The quality initiative began in 1988-89 with a five-year plan based on the Kaizen philosophy,
this concept having been picked up from the Japanese partner. This was driven by senior
management in response to what they saw as increasing customer demand and operating
considerations. The achievement of ISO 9001 registration in 1990 brought together processes
carried out by departments which had previously been undertaken in isolation. The company is
now focusing on Kaizen with the principles of improvement, customer delight, systems focus
and participation. A range of quality management tools and techniques are used. A TQM steering
committee is responsible for overall direction but there is also a further steering committee to
oversee implementation of the Quality Improvement Teams (QITs) as well as a full time
coordinator. There are teams of shop floor operators based on natural workgroups, and these tend
to focus on product problems and environmental issues (such as working conditions). In contrast,
Kaizen teams focus on process improvements (for example, die change) and problem-solving
workgroups are established in response to specific customer concerns (for example, warranty
claims).Senior managers stress that a long-term approach is now being taken which is in contrast
to some of the programmers in the early 1980s. These former piecemeal initiatives included
quality circles which had been characterized by considerable changes in personnel , with a
number of champions having moved on leaving behind a flagging initiative in contrast, the
company is now taking time to get the processes right and providing a central focus through
quality for change. Cultural change is the aim but it is recognized that only incremental progress
can be achieved and that a supportive attitude is required from management Thus, QIT members
are given extensive training and are encouraged to tackle problems which give early success and
build teamwork, rather than put pressure on teams to deliver immediately on big issues.

The Impact of the TQM Initiative

While it is still early days, the initiative is already felt to have had a major impact. The
management structure has been reduced by one layer, shop floor layout has been improved, and
scrap rates, stock, work-in-progress and inspection times have been reduced, so too have the
numbers of inspectors, whose role is now seen as one of analysts. Employee response to these
changes has generally been positive, and the company as spent considerable effort in relating

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'quality' directly to employees' work, particularly through the use of measures which are
displayed adjacent to the workstation and maintained by staff themselves. The unions were
assured that there would not be job losses as a result of Kaizen, although they continue to have
concerns about this and also raise the issue of payment for changes in job roles - particulate in
relation to SpC. The company has adopted an open information policy to foster greater trust at
the workplace, and business-related issues are given greater prominence at the joint works
committee meetings. Management also believes that the quality initiative has led to a reduction
in union influences although this was not an original objective.

The Strategic Nature of the Human Resource Function

The human resource function has emerged from welfare to a more strategic role in recent years.
This has been assisted by an MD who is regarded as a peoples person claiming that 'you can't
divorce people from quality,' and by the appointment of a personnel director to the boated
together with a new industrial relations manager. This has broadened the role of human resources
and enhanced its status the appointment of a training manager was significant, since under the
previous regime little off-the-job training was conducted. Training budgets have actually
increased in volume and monetary terms despite the company's recently recorded trading losses.
Recruitment and selection are becoming more sophisticated as the company wish to identify
team workers. The links between human resources and quality were made explicitly by the MD:
"We cannot separate HR from TQM, and without HR the QIP will not work effectively." In
addition to the issues mentioned above, the function was also seen as being important in building
the people aspect into the strategic quality planning process, addressing the problem of
absenteeism, and supporting line management by helping to change employee
attitudes/organizational culture. In addition, the function has provided appropriate training
programmers for quality, in which there has been considerable investment in time and resources,
it has counseled the mentors to the QIT, and ensured that managers communicate with staff by
providing advice on the best means of doing this. Quality principles are also being developed in
relation to the human resource function, with specific targets being set (for example, for
absenteeism) as well as more general aims (for example, on training)

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 Discussion
TQM seems to require wholesale organizational changes and a re-examination of
production/operations methods and working practices and this has implications for industrial
relations. The literature suggests that persuading workers to take responsibility for quality
assurance and improvement and adjusting traditional job roles requires little more than a dose of
motivation and training. However, these are issues which (certainly in the manufacturing sector)
involve questions of job control and working practices and possibly compensation as well.
Industrial relations considerations may also be important where TQM is associated with a
programmed of job losses and work intensification. Furthermore, trade unions may be concerned
that TQM would marginalize the union as a communications channel, Carcom, at the same time
strengthening the sense of commitment to what might be seen as managerial objectives. All this
raises the question of the role of the Personnel Department. Recognition of the significance of
HR issues in principle is by itself inadequate. Hence, a personnel contribution is crucial to all full
consideration of HR issues. Thus, TQM could either be a heaven sent opportunity for the
Personnel Functions (because of the human resource implications of TQM) or alternatively
actually lead to a diminishment of the function since such issues are deemed to be too important
to be left to Personnel! Yet Personnel people have much to offer quality management. They are
guardians of key processes such as selection, appraisal, training and reward systems, which get
right to the heart of achieving strategic change. Also has the advantage of being seen as a
neutral function and has a better chance of driving change forward in a less divisive way with
fewer political wrangling. The Personnel Function played a central role at Carcom as a
facilitating role.

The principles of TQM be applied to a personnel function can take a wide variety of forms,
ranging from direct downward communication from managers to other employees or the seeking
of employee opinions via problem-solving groups through to high-level meetings between
directors and trade union representatives on Works Councils or Company Boards. The subject
matter equally can vary from the mundane to the strategic, focusing on social and sports items
through to high-level financial and commercial information. The differentiation between
employee involvements defined as: Education, communications, customer care, Amended job
responsibilities, hierarchically and at the same skill level, Problem solving and the tapping of
employee opinion. Even though these are not radical in orientation, their successful operation
depends to a large extent on the climate within which they are introduced, the motives and
abilities of managers to make them work, and their primacy in relation to other organizational
goals and objectives. These former piecemeal initiatives included quality circles which had been
characterized by considerable changes in personnel , with a number of champions having moved
on leaving behind a flagging initiative in contrast, the company is now taking time to get the
processes right and providing a central focus through quality for change. Cultural change is the

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aim but it is recognized that only incremental progress can be achieved and that a supportive
attitude is required from management Thus, QIT members are given extensive training and are
encouraged to tackle problems which give early success and build teamwork, rather than put
pressure on teams to deliver immediately on big issues.

In this case we generalized it as, the achievement of ISO 9001 registration in 1990 brought
together processes carried out by departments which had previously been undertaken in isolation.
The company is now focusing on Kaizen with the principles of improvement, customer delight,
systems focus and participation. A range of quality management tools and techniques are used. A
TQM steering committee is responsible for overall direction but there is also a further steering
committee to oversee implementation of the Quality Improvement Teams (QITs) as well as a full
time coordinator. There are teams of shop floor operators based on natural workgroups, and these
tend to focus on product problems and environmental issues (such as working conditions). In
contrast, Kaizen teams focus on process improvements and problem-solving workgroups are
established in response to specific customer concerns. The links between human resources and
quality were made explicitly by the MD. Training budgets have actually increased in volume and
monetary terms despite the company's recently recorded trading losses. Recruitment and
selection are becoming more sophisticated as the company wish to identify team workers.

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 Conclusion
From the above discussion, we can conclude that Implementation of TQM in an organization
plays a vital role in the development of that organization. Now-a-days, Kaizen is the best method
to implement TQM. In this regard, HR management is interconnected with TQM implicitly.
Treating employees as internal customer and managing the personnel functions effectively can
be the key element of a successful quality improvement program (QIP). So, any organization in
any industry should go for the Kaizen through the continuous improvement of its employees.

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 References
1. Class Lectures, Dr. Mamun Habib, Associate Professor
2. https://www.scribd.com

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