TQM Insights for Steel Industry
TQM Insights for Steel Industry
SUBMITTED BY
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SCDL
Project Title 1
No Objection Certificate 2
Plagiarism Report 4
Certificate by Guide 5
Introduction 7-9
Theoretical Perspective 12
Findings 48
Limitations 48-49
in the organisation
1. TQM - INTRODUCTION
TQM is a management philosophy, a paradigm, a continuous improvement approach to
business through a new management model which focuses on quality as the main
dimension of business. TQM embraces a wider scope of management activities for
managing people and organizations by focusing on the entire process, not just simple
measurements TQM is a comprehensive management system which:
2. Is driven by the quest for continuous improvement in all operations with adequate
sustainability.
3. Recognizes that everyone in the organization has owners/customers who are either
internal or external,
5. Focuses on the way tasks are accomplished rather than simply what tasks are
accomplished,
• Big Q and little q is a term coined by Dr Juran in 1980 and is key in fully
understanding quality.
• Little q relates to a much more limited capacity like products. Emphasis on small q
never gives the desired result.
Manufacturer Customer
Benefits of Total Quality Management:
Direct Benefit
The major benefits of TQM in terms of cost savings include
❖ Elimination of non-confirmation and repetitive work,
❖ Elimination of waste costs and reject products,
❖ Elimination of repairs and reworks,
❖ Reduced warranty and customer support costs
❖ Process efficiency leading to improved profit per product or service,
❖ Fiscal discipline through elimination of unnecessary steps and wasteful
expenditure.
Other Benefits
TQM frees up management time from redressing problems and directs management time
and effort to
❖ Increase production.
❖ Extend the range of products,
❖ Improve existing products.
3. Theoretical Perspective:
How To
Start
Plan
In the planning stage, a detailed plan of implementation is drafted (including budget and
schedule), the infrastructure that will support the program is established, and the resources
necessary to begin the plan are earmarked and secured.
Assessment (Do)
This stage emphasizes a thorough self-assessment-with input from customers/clients-of the
qualities and characteristics of individuals in the company as well as the company as a
whole.
Implementation (Check)
At this point, the organization can already begin to determine its return on its investment in
TQM. It is during this phase that support personnel are chosen and trained, and managers
and the workforce are trained. Training entails raising workers" awareness of exactly what
TQM involves and how it can help them and the company. It also explains each worker's
role in the program and explains what is expected of all the workers.
Diversification (Act)
In this stage, managers utilize their TQM experiences and successes to bring groups
outside the organization (suppliers, distributors, and other companies that have an impact
on the business's overall health) into the quality process. Diversification activities include
training, rewarding, supporting, and partnering with groups that are embraced by the
organization's TQM initiatives.
4. Methodology and Procedure of Work:
Various tools are used to check the quality of the product to define weather the product is a
quality one or not and to take the further necessary actions to bring the process under
control: Some Common Tools are:
• Check sheet
• Pareto chart
• Why Why ( 5 Why Analysis)
• Cause and effect diagram (Fish Bone)
• Histogram
5. Analysis of Data:
1. Select the problem and Collect relatable data from all reliable sources.
2. Identify the metrics of consequences ( Y Axis) and the cause categories ( X
Axis) .
3. Sort the cause categories by frequency in descending order
4. Sum the counts and calculate the percentage for each category.
5. List the categories on the horizontal axis and frequencies of consequences on the
vertical axis
6. Collect the data of cumulative percentage .
7. Draw the cumulative percentage line showing the portion of the total that each
category represents .
8. Interpret the results . Typically , involves focusing on those categories ( Vital Few)
that have the most frequent occurrence and causing the failure.
Case Study: Failure of Hydraulic Pumps
In a process unit there had been continuous hindrance to process due to breakdowns of set
of hydraulic pumps in last 3 months. To identify the major causes behind the breakdown
maintenance team collects data and plots a Pareto chart.
Findings:
• Failure of emergency buttons, shaft failure and cable failure are the “Vital Few”
causes of the breakdown.
• BY attacking it we can resolve 78.65% of the reasons behind the
breakdown/failure.
5(B). TQM- Analysis Tool – Fish Bone Diagram
What is Fish Bone Diagram
• It is a graphical technique which can be used by a team to identify and arrange all
possible causes of an event/problems . It was invented by Professor Kaoru Ishikawa
in 1953 and also known as Ishikawa Diagram or Cause & Effect Diagram
• Common Primary cause for all kind of event/problem are categorized under Four
categories as mentioned below:
❖ 4Ms - Man, Machine, Method & Material.
❖ 4Ps - People, Plant, Procedure & Policy.
❖ 4Ss - Surrounding, Supplier , System & Skills.
❖ 2Es – Equipment & Environment
• Help facilitate joint brainstorming discussions, the brainstorming process
encourages broad thinking, keeping teams away from limited thinking patterns.
• The process of asking why something happened repeatedly at each stage helps drill
down to one or more root causes. Other than the primary causes ( Horizontal
Arrows ) , secondary causes are indicated by side arrows as shown in figure below.
Outcome:
❖ During the session all possible causes were listed down and a Fish Bone Diagram
was made which shows the findings
Primary
Cause
Secondary
Cause
Final
Outcome/Problem
5(C) TQM- Analysis Tool – WHY WHY Analysis
TPM structure
Key Benefits
• Improves Profitability by Maximizing OEE – Overall Equipment Efficiency and
working on to achieve the target of “Zero BAD”
❖ Zero Breakdown.
❖ Zero Accident.
❖ Zero Defects.
• Every Shop Floor employee must be involved, and focus should be to keep the
equipment in an optimal condition, and establish visual control in and around the
Shop Floor
1st S sorting - 1
The first step of 5S, Sort, involves going through all the tools, furniture, materials,
equipment, etc. in a work area to determine what needs to be present and what can be
removed. Some questions to ask during this phase include:
• What is the purpose of this item?
• When was this item last used?
• How frequently is it used?
• Who uses it?
• Does it really need to be here?
1st S sorting – 2
1st S sorting – 6 Types Of Dustbins for Wastes
• Primarily all waste generated is Categorized into 7 types.
• All 7 types of waste are to be stored in color coded dustbins for easy management
of waste before final disposal as per SOP.
• An organized workplace should have proper waste disposal system to avoid
littering of Workplace.
• Timely Disposal of wastes as per SOP is the responsibility of Area In charge.
2nd s Set in order - 1
After sorting only required items left in workplace which to be organised in proper way..
Things to consider:
• Which people (or workstations) use which items?
• When are items used?
• Which items are used most frequently?
• Should items be grouped by type?
• Where would it be most logical to place items?
• Would some placements be more ergonomic for workers than others
• Would some placements cut down on unnecessary motion?
• Are more storage containers necessary to keep things organized?
During this phase, everyone should determine what arrangements are most logical to save
time and problems.
2nd s Set in order - 2
3rd s Shine - 1
The Shine stage of 5S focuses on cleaning up the work area, which means sweeping,
mopping, dusting, wiping down surfaces, putting tools and materials away, etc.
In addition to basic cleaning, Shine also involves performing regular maintenance on
equipment and machinery. Planning for maintenance ahead of time means businesses can
catch problems and prevent breakdowns. That means less wasted time and no loss of
profits related to work stoppages.
Depending on the workspace, a daily 5S checklist or a chart might be useful. A posted
schedule indicating how frequently certain cleaning tasks must occur and who is
responsible for them is another helpful tool.
Efforts also have to be made to find out sources of dirt which are making work place dirty
and requires more cleaning. Sources of dirt to be eliminated.
3rd s Shine - 2
Method of Cleaning
Items in dept need Supervisor Cleaning Cleaning tools
No. Frequency cleaning to material to
cleanining /Responsibility team to be used
be used be used
1 Drains
2 Roads
3 Office Area
5 Toilet
6 Ladders/staircase
7 Personal Computers
9 Waste bins
10 Utility Pipes
11 Stores/racks/materials
12 AC & Ventilation
13 Scrap
Buildings/ Shed/
14
Roofs
4th s Standardization - 1
Once the first three steps of 5S are completed, things should look pretty good. All the extra
stuff is gone, everything is organized, spaces are cleaned, and equipment is in good
working order.
The problem is, when 5S is new at a company, it's easy to clean and get organized…and
then slowly let things slide back to the way they were. Standardize makes 5S different
from the typical spring-cleaning project. Standardize systematizes everything that just
happened and turns one-time efforts into habits. Standardize assigns regular tasks, creates
schedules, and posts instructions so these activities become routines. It makes standard
operating procedures for 5S so that orderliness doesn't fall by the wayside.
Depending on the workspace, a daily 5S checklist or a chart might be useful. A posted
schedule indicating how frequently certain cleaning tasks must occur and who is
responsible for them is another helpful tool.
4s Standardization - 2
4th s Standardization - 3
• Once the first three steps of 5S are completed, things should look pretty good. All
the extra stuff is gone, everything is organized, spaces are cleaned, and equipment
is in good working order.
• All specified Standardized guidelines to be followed for 1S, 2S n 3S.
• Color coding of all areas and equipment is to be followed.
• Depending on the workspace, a daily 5S checklist or a chart might be useful.
• Attached columns and pictures indicate examples of standardization of workplace.
• A detailed PPT in this regard was shared with departments Head & 5S team
leaders.
The purpose of the research is to know the perception of an employee towards quality
maintenance, to measure the present quality management process, to study the customer
and employee satisfaction towards the TQM practices in the organization, to analyze the
total quality management improvement program, to reveal the challenges faced by
company to maintain the TQM and to provide suggestion to improve TQM process in
switching info technology.
RESEARCH METHODOLOGY
Descriptive research design has been applied in this study. Lottery method is used under
probability sampling technique to collect the samples. The total population size is 153.
Sample size is 110. Both primary and secondary data are collected through questionnaire,
company websites, journal and article reviews. Structured questionnaire had been used to
conduct survey. The tools used for data analysis are, Percentage Analysis, Chi-Square
Analysis, Correlation, One Way ANOVA and Weighted Average.
HYPOTHESIS
• (H0): There is no significant association between experience and employess are allowed
to give feedback to the organization.
• (H0): There is no significant association between gender and rewards,recognation and
promotion for TQM reinforcement effectively.
• (H0): There is no significant association between education and consideration of
customers complaints for improvement.
• (H0): There is no significant relationship between Organizations’s TQM infrastructure
and Need to reduce scrap and rework.
• (H0): There is no significant relationship between customer satisfactions has shown
improvement and pressure from competitors and demand from the customer.
• (H0): There is no significant difference between experience and improvements towards
TQM.
QUESTIONNAIRE DESIGN
• The questionnaire consists of five parts.
• The first parts deals with demographic variables like Gender, Age, Educational
qualification, marital status, Experience, and Monthly income.
• The second part is about perception of an employee towards quality maintenance and it
consists of four questions.
• The third part aims to measure the present quality management and process which has
five questions.
• The forth part comprises employees and customers satisfaction towards the TQM
practices in an organization.
• The fifth part is on improvement program in TQM.
DATA ANALYSIS
DISCUSSION OF RESULTS
From the above table it is clear that 70% of the respondents are male and 30% of the
respondents are female, 4% of the respondents are in the age group between 18-25yrs, 47%
in the category 26-35yrs, 49% are between 36-45 yrs. It is also clear that 1% of the
respondents are qualified upto 10th std, 50% of the respondents are UG graduates, 6% are
post graduates and 43% of the respondents have studied others diploma courses. 27% of
the respondents are unmarried and 73% are married, 3% of the respondents have 1-2 yrs
experience, 8% have 3-5 yrs experience and 29% have above 5-8 yrs of experience. 60%
of the respondents have above 8 yrs experience, 1% of the respondents earn income
between 5001-10000, 9% of respondents earn between 10001-15000 and 25% respondents
are getting salary between 15001-20000 and 65% of the respondents earn above 20000.
The calculated value is less than the P value (0.000<0.05).which suggests that the null
hypothesis is rejected at the level of significance is 0.01 and the alternative hypothesis is
accepted. So the test is significant (There is a significant relationship between Organization
developing a TQM infrastructure effectively and Need to reduce scrap and rework) and the
correlation lies between +1 to -1.
RESULT:
There is a significant negative relationship between Organization developing a TQM
infrastructure effectively and need to reduce scrap and rework, r (108) =-.327,
P=.000.
CORRELATION ANALYSIS FOR CUSTOMER SATISFACTIONS HAS SHOWN
IMPROVEMENT AND PRESSURE FROM COMPETITORS AND DEMAND FROM
THE CUSTOMER
Null Hypothesis (H0): There is no significant relationship between improvement in
customer satisfactions and pressure from competitors and demand from the customer.
Alternative Hypothesis (H1): There is significant relationship between improvement in
customer satisfactions and pressure from competitors and demand from the customer.
INFERENCE:
It is found that majority of the respondents agree with the statement that Customers
satisfaction has shown improvement.
WEIGHTED AVERAGE METHOD FOR ORGANIZATION DEVELOP A PLAN TO
ACHIEVE QUALITY MANAGEMENT.
WEIGHTED AVERAGE = ∑FW / ∑F
= 410/ 110
= 3.72
=4
INFERENCE
It is inferred that majority of the respondents agree with organization developing a plan to
achieve quality management.
8. LIMITATIONS::
There are many benefits of TQM initiatives in terms of quality improvement, increased
productivity, greater financial yield, and more customer loyalty. However, there are many
challenges and disadvantages of a total quality management system.
The principles of TQM requires a change of attitude to focus on customer needs and a
reprioritization of daily operations. It also requires a long-term management commitment
and constant employee involvement.
Changing an organization’s culture is a difficult challenge, because culture amalgamates an
interlocking set of values, processes, effective communication practices, roles,
management processes, goals and assumptions, and is often met with resistance by
employees, who view it as a threat to their jobs.
A good start to implementing a TQM would be emphasizing customer expectations to
employees and striving to meet them in the most efficient manner possible.
If you’re looking for a short-term fix for your business’ quality of products, a TQM system
isn’t the answer for you.
TQM implementation takes a few years at minimum, and that occurs only after significant
strategic planning, time, long-term resource allocation and unwavering management
commitment.
Top management employees have to invest time into teaching a variety of management
tools and problem solving strategies to their staff. Without this proper planning, a TQM
system will ultimately fail.
One of the disadvantages of TQM is its expense, so those looking to lower costs might
want to try other methodologies. Implementation often comes with additional training
costs, team-development and human resources costs, quality control costs, consultant fees
and the like.
The system also requires continuous improvement in the form of refresher trainings,
business process or machine inspections and quality measurement.
TQM is not suitable for very small companies because its implementation, training and
execution costs far supersede its financial gains. It’s mainly used as a competitive
advantage for big businesses.
DISCOURAGES CREATIVITY
Another disadvantage of total quality management is its focus on task standardization to
ensure consistency. While this makes the production process cohesive across supply
chains, it discourages creativity and innovative decision making. It also discourages new
ideas that can possibly improve productivity.
9. SUGGESTIONS:
Awareness programmes, sensitization on the new concepts of TQM, effective and periodic
training are some aspects which the company should focus on to emerge as a quality
champion. The company must publicize the top management support and encourage their
employees to strive for better quality.
TQM creates impact on organization performance and profitability, so the employees shall
be made to realize this and work coherently. The rewards, recognition and promotion
programme should be in place to retain the motivation factor of the employees. Pressure
from competitors, increasing demand from the customer, reduction of scrap and rework are
additional challenges which the company is currently facing. The internal audit process
needs to be strengthened.
CONCLUSION:
As one of the leading manufacturers of steel, JSW Steel limited is working towards its
quality policy for a sustainable business, long term profit and corporate image. The initial
quality journey is challenging as per this study.
The constraints of effective top management support, employee involvement, training,
recognition have to be overcome very quickly to achieve its milestones. The review
process and the feedback mechanism is in place which would help in overcoming the
obstacles.
Though the current situation is a good start, a kick start is needed on these aspects to
achieve success in the quality front.