Assessment Report

TQM IMPLEMENTATION
SURVEY IN MTL
Mohsin Raza (IE-11-05)
Ashraf Hussain (IE-11-35)
Syed Muhammad Ali Jafry (IE-11-07)
Assessment Report
Total Quality Management (TQM)

Total Quality Management (TQM) is a comprehensive and
structured approach to organizational management that seeks to
improve the quality of products and services through ongoing
refinements in response to continuous feedback.
Total Quality Management (TQM) is a comprehensive and
structured approach to organizational management that seeks to
improve the quality of products and services through ongoing
refinements in response to continuous feedback. TQM
requirements may be defined separately for a particular
organization or may be in adherence to established standards,
such as the International Organization for Standardization's ISO
9000 series. TQM can be applied to any type of organization; it
originated in the manufacturing sector and has since been
adapted for use in almost every type of organization imaginable,
including schools, highway maintenance, hotel management, and
churches. As a current focus of e-business, TQM is based on
quality management from the customer's point of view.
TQM processes are divided into four sequential categories: plan,
do, check, and act (the PDCA cycle). In the planning phase,
people define the problem to be addressed, collect relevant data,
and ascertain the problem's root cause; in the doing phase,
people develop and implement a solution, and decide upon a
measurement to gauge its effectiveness; in the checking phase,
people confirm the results through before-and-after data
comparison; in the acting phase, people document their results,
inform others about process changes, and make
recommendations for the problem to be addressed in the next
PDCA cycle.
Principles of TQM
The key principles of TQM are as following:
Management Commitment
Plan (drive, direct)
Do (deploy, support, and participate)

Check (review)
Act (recognize, communicate, and revise)
Employee Empowerment
Training
Suggestion scheme
Measurement and recognition
Excellence teams
Fact Based Decision Making
SPC (statistical process control)
DOE, FMEA
The 7 statistical tools
TOPS (Ford 8D team-oriented problem solving)
Continuous Improvement
Systematic measurement and focus on CONQ
Excellence teams
Cross-functional process management
Attain, maintain, and improve standards
Customer Focus
Supplier partnership
Service relationship with internal customers
Never compromise quality
Customer driven standards
The Concept of Continuous Improvement by TQM

TQM is mainly concerned with continuous improvement in all
work, from high level strategic planning and decision-making, to
detailed execution of work elements on the shop floor. It stems

from the belief that mistakes can be avoided and defects can be
prevented. It leads to continuously improving results, in all
aspects of work, as a result of continuously improving capabilities,
people, processes, and technology and machine capabilities.
Continuous improvement must deal not only with improving
results, but more importantly with improving capabilities to
produce better results in the future. The five major areas of focus
for capability improvement are demand generation, supply
generation, technology, operations and people capability.
A central principle of TQM is that mistakes may be made by
people, but most of them are caused, or at least permitted, by
faulty systems and processes. This means that the root cause of
such mistakes can be identified and eliminated, and repetition
can be prevented by changing the process. 1
There are three major mechanisms of prevention:
Preventing mistakes (defects) from occurring (mistake-proofing or
poka-yoke).
Where mistakes cant be absolutely prevented, detecting them
early to prevent them being passed down the value-added chain
(inspection at source or by the next operation).
Where mistakes recur, stopping production until the process can
be corrected, to prevent the production of more defects. (Stop in
time).
Implementation Principles and Processes
A preliminary step in TQM implementation is to assess the
organizations current reality. Relevant preconditions have to do
with the organizations history, its current needs, precipitating
events leading to TQM, and the existing employee quality of
working life. If the current reality does not include important
preconditions, TQM implementation should be delayed until the
organization is in a state in which TQM is likely to succeed.
If an organization has a track record of effective responsiveness

to the environment, and if it has been able to successfully change
the way it operates when needed, TQM will be easier to
implement. If an organization has been historically reactive and
has no skill at improving its operating systems, there will be both
employee skepticism and a lack of skilled change agents. If this
condition prevails, a comprehensive program of management and
leadership development may be instituted. A management audit
is a good assessment tool to identify current levels of
organizational functioning and areas in need of change. An
organization should be basically healthy before beginning TQM. If
it has significant problems such as a very unstable funding base,
weak administrative systems, lack of managerial skill, or poor
employee morale, TQM would not be appropriate. 5
However, a certain level of stress is probably desirable to initiate
TQM. People need to feel a need for a change. Kanter (1983)
addresses this phenomenon be describing building blocks which
are present in effective organizational change. These forces
include departures from tradition, a crisis or galvanizing event,
strategic decisions, individual prime movers, and action
vehicles. Departures from tradition are activities, usually at lower
levels of the organization, which occur when entrepreneurs move
outside the normal ways of operating to solve a problem. A crisis,
if it is not too disabling, can also help create a sense of urgency
which can mobilize people to act. In the case of TQM, this may be
a funding cut or threat, or demands from consumers or other
stakeholders for improved quality of service. After a crisis, a
leader may intervene strategically by articulating a new vision of
the future to help the organization deal with it. A plan to
implement TQM may be such a strategic decision. Such a leader
may then become a prime mover, who takes charge in
championing the new idea and showing others how it will help
them get where they want to go. Finally, action vehicles are
needed and mechanisms or structures to enable the change to
occur and become institutionalized.
Mission Statement
Millat: to be a market leader in agricultural tractors and
machinery, building Companys image through innovation and
competitiveness, grow by expanding market and investing into
group companies, ensuring satisfaction to customers and
stakeholders and to fulfill social obligations.
Vision Statement
Millat: to be a global group of companies, recognized for a range
of quality products with innovative design capabilities.
ELEMENTS OF TQM IN MLT
Customer Satisfaction
Continuous Improvement
Leadership
Communication
Training & Education
Supplier
Involvement of People
Process approach
Customer Satisfaction:
MTLs primary goal is to ensure customer satisfaction by
improving its
Manufacturing processes
Eliminating waste
Delivering product on time at a competitive price through a
committed team, driven by innovation and adhering to Health &
Safety Standards
Continuous Improvement:
By continuously improving performance, aim to generate earnings
sufficient to ensure a secure future for the Company and to
protect and increase shareholders return. To enhance creativity
and job satisfaction, provide employees opportunity for personal
development. Be an integral part of national economy with a
strong sense for responsibility to society and the environment
Leadership style:
Top management supporting long term quality improvement.
Department heads are involved in quality improvements process
at all levels, giving their full attention and show sincerity in
quality works.
Clear cut communication of quality policy and objectives.
The degree to which top management is committed with quality,
it results is in increase profit.
Communication:
In Millat, work instructions are given to employees to work
effectively.
There is horizontal communication hierarchy in Millat, it enables
workers to directly communicate their matters to managers.
Customer and supplier feedback is communicated to everyone in
the organization so customer errors can be respond in an effective
way
Training and Education:

In Millat, management is committed to fully educate and train
people with new technology and processes.
Quality control techniques are advanced and understood for
employees.
Quality related training is give to all level of management.
Optimal Resource availability for training.
Supplier:
Selected on the basis of quality not cost
As well as being fully aware of customers needs and
expectations, each person respect the needs and expectations of
their suppliers. The ideal situation is an open partnership style
relationship, where both parties share and benefit.
Involvement of People:
Quality circle, or employee involvement type activities are
implemented.
Degree to which employees are recognized and awarded for their
quality performance, in return they will give their full attention
Top management push decision making to lowest possible level.
Different departments have friendly relationship. They meet
frequently to solve problems.
Work teams are directly involve in goal/objective setting
Process Approach:
Process is defined as per desired output.
Establish clear responsibility, authority and accountability for
managing process.
Evaluation of possible risk and impact of process on customer.
Interface identified of process and function of organization.
Inputs and output are defined.

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TQM IMPLEMENTATION

Total Quality Management (TQM)

Do (deploy, support, and participate)

The Concept of Continuous Improvement by TQM

detailed execution of work elements on the shop floor. It stems

If an organization has a track record of effective responsiveness

ELEMENTS OF TQM IN MLT

Training and Education:

Optimal Resource availability for training.

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