TQM IMPLEMENTATION MODEL FOR SMEs

1
TQM IMPLEMENTATION MODELFOR SMEs

• Presented by
• Dr. Mohd Azman Idris
• General Manager, Standards and Quality Industry
  Services Dept.
• SIRIM Berhad, Malaysia

2
APPROCHES TO QUALITY MANAGEMENT BY MALAYSIAN
INDUSTRIES

• Japanese affiliates/joint ventures with Japanese
  companies or those companies supplying to
  Japanese buyers which apply Japanese systems of
  quality management
• Multi-national companies from Europe or USA which
  apply TQC in accordance with their own standards
• Companies that utilize ISO 9000 in meeting export
  market
• Companies that recognize the important of quality
  management but limit the application to in-line
  inspections

3
THE NEED FOR TQM MODEL FOR SMEs

• Different methods of implementation varying form
  Juran, Crosby, Deming etc.
• Models are based on the experience of large
  organizations.
• Models are based on either principles of TQM or
  Quality Award criteria. They do not provide step
  by step implementation.

4
INTEGRATING ISO 9000 WITH TQM - THROUGH TQP MODEL
TOTAL QUALITY PRACTICES (TQP) MODEL
TQM
TPM
QCC
ISO
PPC
5S
5

• TQP MODEL was launched in 1994 by SIRIM Berhad.
• Training programme that provides step by step
  improvement processes using proven quality
  activities. The steps are 5S (Housekeeping), PPC
  (Production Planning and Control), ISO 9000
  (Quality Management Systems), QCCs (Quality
  Control Circles), TPM (Total Productive
  Maintenance) and TQM (Total Quality Management).
• In 1997 further improved to include the
  supporting quality activities.
• More than 500 companies have benefited either
  through training and consultancy.

6
THE COMPONENTS of TQP MODEL

• 5S JAPANESE HOUSEKEEPING
• A technique used to establish and maintain
  quality environment
• 5S improves physical environment and thinking
  process
• SEIRI ORGANIZATION
• SEITON NEATNESS
• SEISO CLEANING
• SEIKETSU STANDARDIZATION
• SHITSUKE DISCIPLINE

7
THE COMPONENTS OF TQP

• PPC-PRODUCTION PLANNING CONTROL
• Part of Production system refers to all the
  preparation that precede actual mass production
  itself and storage and shipment of finished
  products
• It covers activities towards the improvement of
  production planning scheduling-work study, JIT,
  Kanban System and BPR.
• Efficient PPC will ensure the meeting of delivery
  datelines.

8
QUALITY MANAGEMENT SYSTEMS (ISO 9000)

• A QMS is the organizational structure,
  procedures, processes and resources which provide
  confidence to customers that their requirements
  will be met.
• Malaysia has adopted ISO 9000 series of standards
  in full and referenced them as the MS ISO 9000.
• Until February 2005, more than 2500 were
  certified by SIRIM QAS International alone.

9
CERTIFIED COMPANIES ACCORDING TO SECTORS AS AT 04
FEBRUARY 2005
10
QUALITY CONTROL CIRCLES (QCCs)

• A small voluntary group that performs quality
  control activities within a single workshop.
• QCCs useful for mutual-self-development and
  process control and improvement within their
  workshop.
• Utilising basic 7 QC Tools.
• Japanese experience indicated that 95 of the
  problems in the workshop can be solved through 7
  QC Tools

11
TOTAL PRODUCTIVE MAINTENANCE (TPM)

• A system of maintenance covering the entire life
  of the equipment in every division, including
  planning, manufacturing, maintenance and all
  other divisions.
• TPM targeting at maximizing equipment efficiency
  through promoting productive maintenance through
  morale building management and small group
  activities.
• Good TPM in place will ensure more than 75 OEE.

12
TOTAL QUALITY MANAGEMENT (TQM)

• TQM provides the overall concept that fosters
  continuous improvement in an organization.
• TQM philosophy stresses a systematic, integrated,
  consistent, organization-wide perspective on
  total satisfaction for both the internal and
  external customers. Basically it encompasses any
  improvement activities.
• Many countries recognize TQM achievement through
  National Quality Awards. In Malaysia, Prime
  Ministers Quality Awards marks the excellent
  achievement of quality culture for an
  organization.

13
TQP TARGETS

• By implementing TQP model, the organization
  should be able to improve Quality, reduce Costs,
  improve Delivery, improve Environment and Safety,
  and enhance Morale.
• Basically it is focusing on PRODUCTS, PROCESSES
  and PEOPLE improvements.

14
LONG TERM TARGETS OF TQP

• To assist organization towards world-class
  manufacturing status
• -subscribes to JIT/lean production
• -products are made to order /just- in-time in
  the same as orders are received
• -efforts are continuously made to reduce all
  types of waste
• -quality is assured in the process
• -equipment is running smoothly (OEE ratio 75-80
  )

15
LONG TERM TARGETS OF TQP (continued)

• Inventory turns 120 times/year
• Customers accept your products without inspection
• Quality reject rate 20 ppm
• Standard WIPS and finished products are
  established throughout the process
• Collaboration with suppliers/dealers for building
  better logistic systems

16
TQP MODEL COMPANY - INGRESS ENGINEERING

• Incorporated in 1991 as a small automotive part
  manufacturing company employing less than 50
  employees. Supplying to Proton and Perodua
  (Malaysian Car Manufacturers).
• In 2000, turned into Public Listed Company
  (Ingress Corporation Berhad) with more than 600
  employees. Involved in investment, automotive
  part manufacture, railway electrification
  services and electrical equipment manufacture. 8
  subsidiaries plus 1 overseas plant. Major
  customers include Proton, Perodua, Toyota,
  Ford/Mazda, Isuzu, Honda and Mitsubishi
• Product Growth 5 (in 1992) to 98 (2001)
• Customer Growth 1 (1992) to 4 (2001)

17
TQP MODEL COMPANY - INGRESS ENGINEERINGThe
Journey From ISO 9000 to TQM
Apr 96 Started Implementation of TQM, ASEAN
Japan TQM Project. Started
ISO 9002 Implementation August 97 Obtained ISO
9002 Certification 2000 Obtained
Quality Management Excellence Award
(TQM). Award for TQM achievement. Jan 2001
Obtained QS 9000 Certification 2004
Obtained TS 16949 Certification
18
ACTIVITIES TO ADDRESS QUALITY MANAGEMENT
PRINCIPLES (ISO 90012000) - INGRESS ENGINEERING
19
QUALITY MANAGEMENT SURVEY ON MALAYSIAN
MANUFACTURING COMPANIES

• Survey was conducted during Nov-Dec 1995
• It covered 650 ISO 9000 certified manufacturing
  companies
• Response rate of 38 (247 useable responses)

20
BREAKDOWN OF CERTIFIED COMPANIES ACCORDING TO
SIZE (NO. OF EMPLOYEES)
Total companies 247 1995 Survey
21
REASONS FOR CERTIFIED STANDARDS
1995 Survey
22
BENEFITS OF CERTIFICATION
1995 Survey
23
PROBLEMS ASSOCIATED WITH ISO 9000 IMPLEMENTATION
1995 Survey
24
QUALITY ACTIVITIES BEFORE QUALITY SYSTEM
REGISTRATION
1995 Survey
25
QUALITY ACTIVITIES TO BE ADOPTED IN THE NEXT
THREE YEARS
1995 Survey
26
THE BENEFITS OF TQP MODEL-conclusion

• It provides simple guideline to SMEs in
  introducing ISO 9000 and TQM. Achieve faster
  certification.
• The results of implementation are achievable and
  visible. Create momentum for continuous
  improvement and moral boost for the employees.
• 5S, PPC, ISO 9000, QCCs, TPM provide strong
  foundation for TQM implementation.
• Provides benchmarking process to SMEs to which
  level of quality development they belong.

27
ISO 9000 RELATIONSHIP WITH TQM
TQM
ISO 90012000
ISO 90011994
28
COMPARISON BETWEEN TQM PRINCIPLES AND 8
MANAGEMENT PRINCIPLES