Today, everybody is talking of Total Quality Management (TQM). But just having TQM is not enough. How you go about implementing it is what matters. The success of TQM is more visible in new born companies or companies that face a survival crisis. Unfortunately, companies in the middle, have a variety of reasons not to implement TQM as priority number one. Consequently, TQM can fail.
TQM essentially involves attention to the process, commitment to the customer, involvement of employees, and benchmarking of the best practices. It is difficult to believe that one cannot benefit from these factors. Yet, success is not automatic. Changing a routine process cannot be done overnight. TQM is a laborious technique and companies have to work towards implementing it the right way.
But like most buzzwords, TQM in most companies is falling prey to lip service. Organizations may say they are using TQM, but when the processes are not right, how can they make full use of the benefits that accrue? While its benefits and advantages are widely discussed, there is little thought given to why TQM may fail. In fact, like in almost any enterprise, there are usually more ways to fail than to succeed.
Delegate too much
Typically, someone decrees, “Let’s start a TQM programme. And let us put the QA manager, Ramakrishnan, in charge of TQM for the whole company”. Thus anointed, chief quality guru Ramakrishnan goes shopping with the limited authority and funds available to him. And what does Ramakrishnan buy and implement? Some SPC training for all plant people as a starter. Nine months later, the CEO sees no change in the steady erosion of business and the downward spiral of profit.
It is a gloomy story, but it’s happening over and over again. TQM is not completely delegable. The CEO has to be involved. Take the case of the Vice-Chairman and Managing Director of Punjab Tractors. He invests a third of his time attending quality council meetings, auditing the progress of project teams, developing strategic quality plans, conducting quality management training and vendor upgradation programmes. With this, several other responsibilities are easily delegated.
Train without action
Whom do you send for training? Someone who has time. So, who do you send for more training? The same someone who has time. The one who can action his training has no time for training. In the words of Dr Joseph M Juran: “Training without action is easily forgotten. Training with action is remembered." Training is the most expensive input in a TQM programme. Training programmes that are driven by "just-in-case" tend to lose out. Ideally, this precious input should be imparted just-in-time for action.
A successful example is Mukand. Here, training is a responsibility of the quality secretariat. Core courses are even conducted all through the year. Employees are permitted to attend sessions of these core courses on an anticipated need basis at their own pace. The quality literacy at Mukand is thus commendable.
Confuse activity with results
How often have you heard of companies setting goals in terms of number of project teams and number of managers to be trained? This is a clear example of activity. Unless activity is linked to easily understandable strategic goals, quality efforts flounder. Ask constantly, “What am I attempting to achieve?” TQM activity should be linked to few clear strategic goals.
Johnson and Johnson redesigned its quality effort targets to dovetail with three quantifiable goals: boosting customer satisfaction, reducing product introduction time, and cutting costs. The 168 units of Johnson and Johnson can train how they like and call it what they like, as long as they focus on these three goals. The Indian entity, while networking with other group units, has customized its own approach to attain the three strategic goals.
Belief in driving out fear
Very often, when companies say they are using TQM, it is only what they perceive as TQM. This occurs mainly because the implementers’ knowledge and understanding of the technique is superficial. For instance, most people believe that they are supposed to drive out fear and eliminate numerical goals. Yet, research indicates that fear and goals can be highly beneficial if carefully managed. And TQM efforts suffer from their omission.
One way of achieving the best results is by putting proper structures and systems in place. These include a company’s recruitment policy, job designs, performance appraisal system, and promotion policy. According to Dr B K Modi, Chairman, Modi Xerox, one of the first converts to TQM, it is the dynamic appraisal systems which are responsible for the success of the technique. “No one can recall the entire year’s performance for each employee. For this reason, performance appraisal must be a dynamic process, with quarterly reviews recorded and agreed upon,” he says.
Initial preoccupation with creating a quality culture
Baldrige Award winners have turned the tide for the US. We need to learn from their experience. More specifically, from the outset, to consistently emphasize improving customer-valued outcomes. Yet, in companies in India and abroad, a large proportion of implementation efforts initially focuses on creating a TQM culture. Often, this takes the guise of widespread training - TQM overviews and tools; creating empowered teams; creating lofty statements of vision, mission and values; and publicizing the plans. Confusion, long implementation time frames, frustrations and resistance usually follow.
Upfront, one must understand the needs of customers. One must have a sharp customer-focus. The entire technique must be customer-led and not cost-led. When a customer is happy with your product, it often means that there is little or zero defect in your product. And a company should constantly strive to reduce the defects. For, by reducing defects or wastage, you save costs.
Baldrige Award options exist in India. These range from the CII Exim Award and IMC Ramkrishna Bajaj National Quality Award to customized in-house awards such as the JRD Quality Values Award. Experience shows that the process of applying for the Award has more value than winning the Award.
Remedy of the symptom instead of the cause
Every organization is a hatchery for problems. This is equally applicable to manufacturing and service, whether profit-driven or otherwise. Over the years, we have perfected the skills to use band-aids and aspirins for problem-solving. This amounts to fire fighting. In effect, we are adept at treating the symptoms of the problems.
Beneficial business results are achieved by treating the causes of chronic problems. Getting down to identifying and then treating the root causes can stem the rot. This is fire prevention. This preventive measure cannot be done overnight. It takes time. And for companies, this could mean scrutinizing various departments. There may be a problem in a particular department. By going deeper into the matter, the source of the problem can be traced to an entirely different department. Hence the need for cross-functional or interdepartmental teams.
Several organizations in India have successfully tested the root cause approach to problem solving. Collectively, the nation may have 10,000 chronic problems solved. This is the tip of the iceberg. Japan solves four million problems per annum. Only a few companies have successfully scaled-up. Noteworthy are Tata Steel, Crompton Greaves, Mahindra and Mahindra.
Equate ISO 9000 with TQM
ISO 9000 systems are required for quality management. ISO 9000 systems are not the end in quality management. These systems focus on quality control for manufacturing only.
TQM requires application of three quality management processes: quality planning, quality control, quality improvement. To support these processes, companies require an infrastructural system that extends beyond manufacturing to processes for all outputs generated by an organization. One such option is the International Quality Maturity Model. This state-of-the-art system has the ingredients for attaining world-class quality.
Some companies in India have either conducted an International Quality Maturity Model baseline audit or are planning to do so. The audit is a means to leap-frog on the journey to world-class quality. The pioneers are Larsen and Toubro, ITC, Vikram Cement and Rajashree Cement.
Simple prescription
Ultimately, TQM is anchored to customer delight. The best way to make quality happen is to answer three simple questions: Who defines quality? Who is the final inspector? Who pays your salary? If the answer is other than “customer”, you are guaranteed to fail on your TQM strategy.
CREDITS: Suresh Lulla, Founder & Mentor, Qimpro Consultants Pvt. Ltd.