Wednesday, September 8, 2010

Total Quality Management: A Discussion

This blog will discuss the implementation of Total Quality Management (TQM). To begin Adrienne has provided a summary of the following publication, Total Quality Management. To follow Jillian has summarised a journal article titled, Implementation of Quality Management Practices in Pakistan's Apparel Industry. Finally Cindy has collected two media files on the subject of Quality.


SUMMARY CHAPTER 8 Pages 220 -227

“Implementing Total Quality Management” By: Lesley Munro-faure, Maclcom Munro –Faure

IMPLEMENTATION

Once the problem has been identified it is vital to gain support for and implement at solution to eliminate it from happening again. The most cost effective solution and the best chance of succeeding is a way to help in deciding.

These steps provide approaches:
-          Frequently useful to hold a brainstorming sessions to identify all solutions with basic information
-          Select one solution and include:
Cost of implementation
Time to achieve results
Probability of achieving results
Training personnel and labour
Equipment
Writing procedures
Risk of solution not being effective
-          Experiment to verify that it does eliminate the problems and the new problems don’t arise
-          Gain support and convince management to implement which may require a formal presentation
It is important to plan thoroughly before proceeding
-     Define the sequence and length of key steps, direct involvement of each person, and change in work methods
-          How to measure steps and progress

It is useful to draw a gant chart to plan and monitor. An important aspect of implementation is communication and the changes effect on people. It is important to gain support and incorporate suggestions. Once the solution has proved success, it can possibly be applied elsewhere. The success should be publicised throughout the organisation to encourage involvement in identifying problems in their own area (department, sites etc.)




Munro-Faure, L & Munro- Faure, 1992, 'Implementing Total Quality Management,' Pitman Publishing, London, United Kingdom.

Summary of the Article; 'Implementation of Quality Management Practices in Pakistan’s Apparel Industry'
The following article published for the International Conference on Futuristic Trends in Textiles (ICFT) analyses the quality management practices of the textile industry of Pakistan.
The textile industry in Pakistan accounts for 60% of the export market and is the largest employment sector in the country. In today’s competitive world, to maintain this level of success requires business’s to continually improve the quality of products and services.
Rasheed, Muhammad and Amin surveyed a variety of companies to find out to what extent industry has implemented quality management practices and how it has affected their business. The findings demonstrate that most of the companies have the Quality Management Standards certification of ISO 9000/1. In addition some of the companies claim to have implemented Total Quality Management (TQM) processes. However the reality is that the majority of the Pakistani Textile Industry is unaware of the actual purpose of ISO 9000 and its practical implementation. Instead they are acquiring the certification in order to capture their customers.
The article further explains the success and failures of the textile industry in Pakistan as well as provides practical yet brief recommendations on how ISO 9000 can be implemented. 

IMPLEMENTATION OF QUALITY MANAGEMENT PRACTICES IN PAKISTAN’S APPAREL INDUSTRY

Abher Rasheed1, Syed Muhammad Adil2, Nabil Amin3

1ENSISA-Université de Haute Alsace (UHA), France
2Azgard9 (Pvt.) Ltd. Lahore, Pakistan
3Department of Textile Engineering, University of Management and Technology Lahore Pakistan

Abstract

In today’s competitive world where everyone is quality conscious, the industries also have to be at their best in quality and productivity in order to survive and be in the leading row in this global market. Textile and apparel industry is considered the back bone of Pakistan industry. It has almost 67 % share of total exports of Pakistan, with 38 % employment and 11 % of GDP.
So to be competitive in the world, Pakistan has to develop its textile and apparel industry. The purpose of this project was to see, at what extent, industry has adopted quality management practices. What level of excellence they have achieved and what are its impacts.
A questionnaire was formed and a survey of various industries was carried out.
Data was collected from 9 different industries but only three good industries were selected for further study. After analyzing the data, it was found that most of the organizations have certification of ISO 9001 and some of those claimed that they are practicing Total Quality Management (TQM) however; the actual situation in the industries was observed to be entirely different as most of the industries didn’t even know the intention of ISO 9000.
Almost every textile unit in Pakistan is ISO 9000 certified but unfortunately majority is ignorant from the actual purpose of certification and its implementation practically. It seemed that they are only attaining this certification in order to capture their customers. They have actually documented their quality management system but its implementation is far away from the actual which is required.
It was analyzed that there is dire need of creating awareness and understanding of the quality systems amongst the industry.
They don’t know that their efficiency, effectiveness, productivity and profits can be increased just by implementing the systems that they have made. They want to get results overnight. They are not ready to give these systems enough time to be operational and come into action.

Introduction
Textile industry has been the bulwark of Pakistan’s economy. Textile exports were 8.6 Billion in 2004-05, which are 60% of the total exports of Pakistan. It is the largest employment sector, accounting for 38% of total industrial employment. Garments are the major growing sub -sector of textiles and earn 25% in total textile exports. This is the only sector that consumes major work force of textile industry and contributes toward high growth rates in exports. The start of 2005 has brought the high degree of uncertainty for the players of textile business because of lifting of textile quotas. It has also created some threats and opportunities for the exporting countries. 9/11 bombing and duty free status given to some countries by USA has created some problems to garments exporters. This is more severe for Pakistan as USA is Pakistan’s major trading partner. Internationally the trade of Articles apparel, of textile fabrics is recorded the highest and makes about 38% of overall apparel trade. Women woven clothing is the next largest category having 27% share, men woven clothing comes after it by holding 20% share. Knitted apparel clothing is 15% of total apparel trade.
Pakistan’s scenario of trade is quite different from international trade. Our trade is totally occupied by knitted apparel by 41% and next to them are men woven clothing, articles of apparel of textile fabrics and women woven clothing by 28%, 21% and 10% respectively.
Major importers of garments are developed countries and major exporters are from all over the world but Asian countries grasp the lion’s share. Pakistan is the 4th largest cotton producing country but in garments it stands at 21st position as its share is 1% of total world apparel export. It governs the lowest share with respect to its competitors.
To maintain the effectiveness and efficiency of the business in today’s competitive world, focus of quality is increasing. Importance of Quality Management Systems is realized now.
Today is a competitive world. And there is tough competition in each and every business. Due to increased competition, customer has more choices. The key concept of business is customer satisfaction. The only way to survive in the market is continuous improvement in quality of product/service, quality of process and design. In other words, one will have to enhance the performance to be in the market. Quality Management Systems have been recognized as a competitive edge and for long term profitability. There are various ways to enhance organizational performance. To have Quality Management System in operation, organizations need some means. International quality standards provide such means. These standards act as a key to continuous improvement and customer satisfaction.
There are two common practices adopted throughout the word to enhance organizations performance.
  • Total Quality Management
  • ISO-9000 certification program

Total Quality Management
The widespread practice of quality management has preceded the development of TQM. There are different models of TQM by different people. But most of the time the principles that quality gurus has been using, are the basis of this philosophy. TQM is a very common approach now a day. It is very popular in Japan and USA. There are many definitions of Total Quality Management. Some of them are as follows 17 “TQM is a corporate business PHILOSOPHY which recognizes those customer need and business goals are inseparable “It is the mutual cooperation of everyone in an organization and associated business processes in order to produce products and services which meet and hopefully exceed the needs and expectations of customer”
ISO-9000 certification program
The ISO 9000 refers to a set of quality management standards. IT contains four standards. ISO 9000:2000, ISO 9001:2000, ISO 9004:2000, ISO 19011:2000 ISO 9000:2000 It describes the fundamentals of quality management systems and specifies the terminologies for quality management systems ISO 9001:2000 It specifies requirements for a quality management system where an organization needs to demonstrate its ability to provide the product that fulfills customer and applicable regulatory requirements and aims to enhance customer satisfaction. ISO 9004:2000 It provides guidelines that consider both the effectiveness and efficiency of the of quality management system. The aim of the standard is to improvement for the performance of the organization and satisfaction of customers and other 23 interested parties. ISO 19011:2000 It provides guidance for the auditing of quality and environmental management system All these standards are process standards not product standards ISO certification impacts the bottom line of a firm by improving product quality, efficiency, productivity and competitiveness.
 Research Methodology
In order to measure the performance of different companies who have implemented the ISO Quality Management Systems, 8 different Textile groups were selected. A comprehensive questionnaire was developed to measure their performances and further on flour audits were and observations were taken in order to ensure right measurement of the performances of the companies. Then from 8 best 3 were taken for the final analysis.
Common success areas

Quality management system

All three selected companies have their written quality management system. They have made their quality manual; they have properly written and documented system level procedures, procedure of document control and record control.
Rejection Rate
Rejection rate of all the selected companies is not very high, but there is a misconception, that we found. People in these companies think that rework is not a rejection. The information they gave us is the final rejection (cut to pack difference) There is no data available, how much rework they have done on the products.
Customer care
The concept of customer focus is truly y understood by all selected organization. They better know that the business is just coming from the customers. If customers will not be happy, there will be no business. Good relationship with customer will help to get more business from same customer and from the others as well.
Research and development
All have got their research and development departments. Design and development is not being carried out at a level where it should be but what appreciable is they are trying to improve themselves in this field.
Continual improvement
All are continually improving in efficiencies, productivity, human resource development and satisfaction, customer relationships and effectiveness.
Employee satisfaction
Employers are realized the importance of human resource now. They are paying their employees good salaries, job security is there and they are trying to provide good working environment.

Other success areas
Profits
The companies who have truly implemented their quality management systems are improving day by day and getting more profits as well. While others who have taken certifications just to get business are in miserable condition. They are dwindling gradually.
Supplier relationship
Some of the companies are taking good care of their suppliers. Their suppliers are happy and they are getting good products from them. Others who don’t have supplier’s evaluation, assessment and development system are getting bad quality product and always late.
Efficiency
Efficiency of all of them is increasing but the pace is very slow.
Common failures
Following are a few common failures
Customer feedback
No one of them has proper customer feedback process.
Planning control
Planning is very good but their control is bad. We can not control our plans. We always have to change our plans during production.
Employee turnover
Employee turnover is too high. Specially, when people are trained, other organizations grab them on better salaries. Employers must revise their salaries after training, so that they stick with or organization and the organization can get benefit from them.

Training and development
Though they have a small setup of training, but there is no proper setup of training. No training need assessment is carried out. They don’t evaluate which department and individual need training. And what kind of training they are required.
Quality assurance
We have very good quality control system, but don’t have a good quality assurance system. Acceptance sampling is mixed with quality assurance.
Other failures
Supplier relationship
Some of them don’t have good supplier relationship. And this is adversely affecting their business.

DISCUSSION AND CONCLUSION
Proposed solution for improvement
Sequence of problem solving steps
  • Training need assessment
  • Training and development
  • Evaluation of training
  • Set targets and goals
  • Human resource allocation
  • Technology selection
  • System (ISO) implementation
  • System performance evaluation
  • Continual improvement loop
  • Recommendations

Clear Business and operations strategy
Each and every company has their business and operation strategies. These strategies must be very clear, written, and understandable and communicated to everyone in the company. Even a person working at lowest level must know and understand their strategies. Secondly, operation strategy must always so as to support business strategy. If both these strategies are not synchronized, may cause problems.
Objectives
Organizations must have clear, measurable and understandable objectives. If these objectives are not measurable, we will not be able to evaluate our performance and further enhancement will not be seen.
Targets and goals
To achieve objectives, companies define strategies. To achieve those objectives, targets and goals must be defined for everyone in the company. Targets must be clear, measurable, and achievable and company wide, so that at the end of a specific period, we can be able to evaluate the performance of each and every department and individual. We will find out, at what extent we have achieved our goals. What is the gap between plans and actual. And how we can overcome these gaps? Finally it will help us to set targets for next year or period.
Performance Evaluation
Normally targets are defined and people are asked to fulfill their targets to get promotions. But at the end of the year, there is no performance evaluation. This is a very wrong practice. Performance evaluation is necessary. If people know that the promotions will be on the basis of performance and the evaluation will be fair, they will definitely work hard.


Performance Appraisal
Every individual must get rewards against performance. If one performs well, he should be given some extra benefits. This way, people will be motivated to work for the company. They will consider company targets their own targets.
Supplier development
This side of our industry is very week. Most of the suppliers are local. People don’t give importance to their suppliers. Purchases are always made on low prices. There is no concept of quality. Supplies have to work hard to get their payments. Payments are always late. Ideally, the first criteria for purchasing must be quality, then cost, because only a good raw material can make good quality products. We should try to develop long term relationships with our suppliers. And try to develop them in areas where they are week.
Customer relationship
A very significant problem of our market is, they can not retain their customers. There is no idea of customer relationship. There is no proper marketing department even. So we must identify customer’s stated and implied needs. We always try to entertain our customer by exchanging bad products with good products if there are any. But we never communicate with the customer properly.
Development of HR
Human resource management is a new concept for our industry. Owners normally are of the view that it is their money which is the most important for their business and profits. But the reality is something else. The power of any business or organization is its human resource. You can only be competitive if you have got a good human resource. So, human resource development is necessary.

Conclusion
The companies we selected have prepared their quality management systems. They are practicing it to some extent. But the over all situation of the industry is entirely different. There are a lot of people who have taken certification just to show it to the customers, but there is no real practice. System is documented. But there is no implementation. So first of all we should try to create awareness among the people that this system will be more beneficial if it will be implemented. After awareness, we should train them how to implement these practices. Industries are far behind than the level where they should be. But they are improving gradually. Now people are more conscious about quality management.
REFERENCES
§           Bendell Tony and Boulter Louise. 2000. ISO 9001:2000- A servey of attitudes of certificated firms. International Small Business Journal Vol. 22(3). pp 295-316
§           Jamshed H. Khan, TQM Implementation in Pakistan: Revolutionary Vs. Evolutionary Approach, presented at Pakistan's Sixth International Convention on Quality Improvement
§           Pakistan institute off quality control (PIQC), A case study: Implementing Quality Management in the Textile Industry in Pakistan
§           Kashfi H. A, “Quality and productivity in 21st century”
§           www.iso.org, ISO 9000:2000 Quality management systems- the fundamental and vocabulary
§           www.iho.shom.fr, Implémentation of quality management practices-2005
§           www.free-essays-free-essays.com, Use of total quality management

NOTE: This paper was presented in ICFT-International conference on futuristic trends in textiles. This conference was organized by NIT Jalandhar and was held in Dec, 2007


Rasheed, A Muhammad, S & Amin, N 2007, 'Implementation of Quality Management Practices in Pakistan's Apparel Industry', ICFT, NIT Jalandhar, Pakistan.

Please click on the following two links to view the media files.


Module : Quality management
Arizona State University presented.

Quality had been definite that not just product only, also includes customers service, terms service…etc.
They are going for what customer expect: excellence design, flawless manufacture, quick delivery and seamless transaction.  


Quality saves money. Quality makes product cheaper and better.
Motorola had using Six sigma to control their quality system, and still keep improving their process.

To conclude, the quality and continous improvement of products and services is integral in today's competetive environment. Thus it is important to be aware of Total Quality Management practices and standards such as the ISO 9000. Although the implementation of such processes is the most important element in gaining the full benefits such as improved efficiency, effectiveness, productivity and profits.

Please feel free to comment and discuss your views on Total Quality Managment and related Quality topics.

2 comments:

  1. Really good learning material, and it help us to get understand well about TQM, surely it will be work for our future as well. Really appreciate it. Thank you.

    ReplyDelete
  2. Very interesting information, worth recommending. However, I recommend this: Quality Management Services

    ReplyDelete